Ministers break ground for techno hub

TWO multi-million-rand projects in Richards Bay are off to a good start with the strong support of some of KZN’s most influential leaders.

KZN MEC for Finance Belinda Scott and MEC for Economic Development, Tourism and Environmental Affairs (EDTEA) Sihle Zikalala, joined the Richards Bay Industrial Development Zone (RBIDZ) board and team, City of uMhlathuze Mayor Mduduzi Mhlongo and Deputy Mayor of uThungulu District Nonhle Mkhulisi to introduce the major developments that will boost the local economy.

Scott turned the sod of a R35-million Techno Hub project and Zikalala unveiled the R16-million Gate Complex in RBIDZ’s Phase 1A industrial park to signal the readiness of the zone to attract more investors to the city.

The Techno Hub is the second of four science and technology innovation centres to be rolled out in KZN, after the Provincial Treasury launched the first hub in Port Shepstone last month.

Two more will be launched in Newcastle and Pietermaritzburg, respectively.

These techno hubs are expected to draw high-tech entrepreneurs, private businesses, academic institutions, researchers and investors interested in providing concepts through innovation to create platforms for commercialisation of technology and innovation-based businesses.

Scott said the Mangosuthu University of Technology (MUT) and the Richards Bay IDZ have entered into a Memorandum of Understanding regarding involvement within the techno hub and to support Technical Vocational Education and Training (TVET).

‘According to the Cost Benefit Analysis report which the Provincial Treasury conducted in 2013, the total cost of developing four comprehensive and fully occupied techno hubs in KZN is estimated at R5.4-billion over a 15-year period.

‘The associated operational costs are estimated at R6-billion.’

‘The current funding will only support the development of phases 1 at each of the four locations.

‘Phase 1 refers to the provision of bulk infrastructure, some top structures to initiate the projects, and development facilitation and planning.

MEC Zikalala said the opening of the R16-million RBIDZ Phase 1A customs control Gate Complex signals the readiness of the RBIDZ to attract more investors to the zone, which will be a customs controlled area (CCA) manned by RBIDZ staff and South African Revenue Services (SARS) officials to provide support for access control, customs control and VAT requirements.

Locators within the IDZ can also qualify for additional incentives such as reduced Income Tax rate (reduced from 28% to 15%); accelerated depreciation on structures built and Youth Wage subsidies being applicable to all employees within a certain threshold.

‘The RBIDZ is tailored for the manufacturing of goods and production of services to boost beneficiation, investment, economic growth and the development of skills and employment.

‘It aims to encourage international competitiveness through tax and duty free incentives, as well as world class infrastructure.’

However, he urged all public officials and leaders to treat plans for both developments with ‘a sense of urgency’.
‘We must see things happen more aggressively.’

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