The Richards Bay Industrial Development Zone (IDZ) initiative is gaining momentum with the installation of bulk services and confirmation of a number of projects set to establish in this strategically located IDZ.

The IDZ’s main advantages include, inter alia, that:

• The IDZ is located immediately adjacent to the Richards Bay deepwater harbour, on the northeastern coast of South Africa;
• Production costs are among the lowest in the world;
• The established businesses in the area provide numerous down-streaming opportunities and vital support services to incoming companies;
• The city of uMhlathuze boasts an enviable environment and varied lifestyle options.

Already, projects valued at some R3bn are at the negotiation stage, with additional projects worth a further R7bn currently being assessed.

Richards Bay IDZ will initially comprise 370 hectares, with future potential of more than 1000 hectares. The first four sites have been designed to allow for the positioning of various tenant-types within areas specifically suited to their particular requirements.

Tenants are expected to begin establishing within six months, in order to take up export opportunities which will be afforded to them through their extremely close proximity to the port, a dedicated customs facility and the incentive of non-liability for import duties or VAT. Tenants will also be able to utilise incentive programmes, in respect of establishing new companies, increasing competitiveness and innovation, the importation of new machinery and the establishment of export markets.

A further advantage for industries locating in the IDZ is the immediate supply of feedstock, including: aluminium, heavy metals, various chemicals, wood, pulp, paper, agricultural products, gas, coal and electricity (second lowest in the world).

The industrial prospects offered by the Richards Bay IDZ are further enhanced by an enviable lifestyle. Zululand’s sub-tropical climate, pristine coastline and the close proximity of Africa’s ‘big five’ in the many nearby game reserves and parks makes the Richards Bay region one of the most sought after investment destinations in South Africa.