The approval of incentives policy by the Bay Council is a welcomed move as it is set to inject much-needed investment inflows into Nelson Mandela Bay.
This positive outcome reaffirms the importance of investment promotion and how incentivising potential investors can help in attracting new sustainable investments and further position Nelson Mandela Bay as an investment destination of choice.
We commend the Nelson Mandela Municipality for approving these incentives and urge them to continue to undertake initiatives which will support the ease of doing business in the Metro. Our city has so much potential and through the collaboration and support of all the stakeholders, we can unlock this and begin to build our economy.
With the city’s latest unemployment rate at 39,2% (as per the Quarterly Labour Force Survey from Statistics SA), the three companies, with a combined investment of R675 million Rand, will benefit from discounted municipal rates, services and rental, enabling them to create new jobs and help grow the local economy.
One of the companies, Formex Industries, is a Chamber member company and will in the next five years be investing R70 million rand in its local operations and create 95 jobs. The two other companies, Clover SA and Dastile Wealth Insure, will be investing R486 million and R11,25 million rand, respectively. This is a show of confidence in the Bay which has been grappling with high unemployment and low economic growth.
More importantly, the approval solidifies the significance of creating an enabling environment for businesses to operate profitably with minimal risks. As the Chamber, we have been advocating for a more relaxed business environment through the easing of unnecessary bureaucratic red tape to protect existing investments while unlocking potential inflows. The ease of doing business is an important component of investment promotion and goes beyond the availability of proper infrastructure such as water, electricity and roads. The cost of doing business forms an integral part of supporting the sustainability of businesses, thus helping the city enhance its competitiveness.
In a competitive global environment, investors are always looking for destinations that can provide stable and sustained returns, while minimising potential risks and costs.
Denise Van Huyssteen
CEO
Nelson Mandela Bay Business Chamber