Local Business

Zululand loses investors to prolonged evaluations

Keen investors are losing interest due to long delays in environmental assesments.

SOUTH Africa’s lengthy Environmental Impact Assessment (EIA) processes have long been bashed by developers for beating off solid investors keen to put down roots in the country.

To end this controversial issue in Gauteng, a new, automated EIA system is being implemented in the province to cut the process from an average 18 months to 90 days.

Executive members of the Zululand Chamber of Commerce and Industry (ZCCI) believe this needs to be enforced in Richards Bay as well – the industrial hub have reportedly seen several significant job creators turn their backs on the city owing to the unpredictable processes.

‘The EIA delays have certainly been a reason for many of the failed investments in this region and there will be cases on record to prove this,’ said ZCCI Exco Member Mike Patterson.

‘Richards Bay would have developed substantially since the Port of Richards Bay was opened in 1976, if the process was fast-tracked and even now it is slowing down the RBIDZ (Richards Bay Industrial Development Zone) developments owing to land areas being subjected to prolonged EIA processes.

‘Our water situation is critical in this area and solutions have been found but shelved because of the anticipated delays that the piping or dams would be subjected to – five to seven years for approval have been some of the possible delays suggested!’

Plan of action

Fellow Exco Member Danny Naidoo said there is hope after recent discussions that EIAs could be transferred to fall under the KZN Department of Economic Development.

‘At the District SMME Summit, it was mentioned this change could bring on a turnaround time of 90 days.

‘This is great news indeed. With keeping in mind the importance of protecting the environment, investors would no longer be burdened with escalating costs of projects due to the delays, and for them the need for speed is crucial.’

However, prominent local business leader Frans van der Walt emphasised talk is, and has so far been, cheap.

‘The matter of delays to development caused by lengthy EIA processes has been promised to be addressed for as far back as I can remember -it remains being promises or talk.

‘A new system needs to be implemented on those projects already in the process, which have been delayed beyond reason and with massive economic losses as a result.’

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