New incentive policy boosts investment in Durban

As the second largest economy
in South Africa, and with
several new logistics infrastructure
projects in the pipeline, the City of
Durban offers a range of investment
opportunities for transport and
maritime companies.
This according to the deputy head
of the City of Durban’s Economic
Development and Investment
Promotion Unit, Ajiv Maharaj, who
said that the City’s attractiveness as
an investment destination had been
boosted by the recent launch of its
Economic Development Incentive
Policy (EDIP).
The EDIP offered financial
or tax rebates as well as nonfinancial
support for investors, said
Maharaj, pointing out that since
implementation late last year, the
City had made progress in reducing
obstacles to investment, fostering
an investor-friendly environment,
and facilitating local and foreign
investment.
“Measures around this include
financial incentives that may lower
costs and risks for investors, and nonfinancial
incentives that can be used
to diminish obstacles and encourage
investor commitment,” he said.
Maharaj added that, amongst
others, the EDIP provided property
rates tax rebates to developers during
the construction period. “This assists
in getting developers’ projects off the
ground, thereby encouraging urban
regeneration and investment in the
City.”
He believes this will further
deepen investors’ links with local
businesses, thus allowing investors
to create opportunities for local
skills training and education. “It
will certainly enhance exports,’’ said
Maharaj.
He added that while the EDIP was
initially planned for three years, it
would be reviewed annually to ensure
that the City’s response to market
requirements was appropriate and
beneficial.
CAPTION
The City of Durban hopes to lure additional investment through its investment
incentive policy.