‘Potential R120bn boost’ for KZN economy

New KZN MEC for Economic Development, Tourism and Environment, Sihle Zikalala. Photo: Rogan Ward

New KZN MEC for Economic Development, Tourism and Environment, Sihle Zikalala. Photo: Rogan Ward

Published Jun 11, 2016

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Durban -

A potential boost of R120 billion into the KwaZulu-Natal economy and creation of over 800 000 jobs. That’s what is waiting to be unlocked for the province if Environmental Impact Assessment (EIA) applications could be processed more quickly.

That was the word from the new KZN MEC for Economic Development, Tourism and Environment, Sihle Zikalala, at Friday’s Environmental Summit held in Durban.

Zikalala revealed that a total of 220 EIA applications were pending “which have the potential of creating about 808 000 jobs and pump R120bn into the provincial economy,” he said.

“These are huge figures that would, if the investments came through, alter the landscape of our province.

“It is because of this that we have developed a mechanism to streamline all EIA processes in KwaZulu-Natal. As a result, in the 2014/2015 financial year, 90 percent of the EIAs were finalised on time.”

He warned against consultants who “look at creative ways to drag the process so they can squeeze as much commission as possible for the project promoters, who in turn will blame the department for delays. It is not in our interests to deliberately drag our feet in processing EIAs”, he said, calling on applicants “to play their role and part” in order that environmental practitioners are able to deliver “speedily” on EIA applications.

Some of the key projects in the province awaiting EIAs are :

- Tinley Manor beach development by Tongaat Hulett with a projected value of R1.3bn

- Nonoti beach resort, owned by the Inqaba Community Trust, needs approval for land conversion from agriculture to commercial and valued at R1.5bn

- A number of projects for Alton North in Richards Bay headed by the establishment of a metals beneficiation plant at R4.5bn, establishment of a gas power plant and associated infrastructure at R2bn, establishment of a caustic soda plant at R500 million, establishment of a Nano Precipitated Calcium Carbonate plant at R200 million and installation of bulk engineering services in Alton North at R300m

- An agri-processing and aquaculture development at La Mercy, estimated at R285m, and a light industrial office park development at La Mercy for R153m

The MEC also announced that the department would embark on a road show to meet communities who had raised concerns that they were not benefiting from the exploitation of natural resources in their area.

President of the Durban Chamber of Commerce and Industries, Zeph Ndlovu, said the announcement had its full support, saying it was a “bold move”.

“We welcome any initiative that seeks to bring relief to the province to shake off the shackles on our path to economic growth. Such a bold macroeconomic reform is what we need to spur the economy to greater heights. Of necessity, we need to create jobs for the youth and reignite a vibrant economy for our region.”

He added local companies had to go through long, onerous application procedures to expand.

“Sadly, by the time the wait is over, the EIA may come through when the business viability has lost its economic lustre.

“We need to prioritise companies that are by any comparative standards, mass employers, to go through an accelerated programme of EIA approval. In time, we look forward to a normalisation of a short turnaround time as an expected practice.”

But Durban Community Environmental Alliance’s Des D’Sa has slammed the move: “My concern is that EIAs are recklessly done and will destroy our future, with government pushing them through or turning a blind eye.

“We have already seen green areas such as Reunion being concreted over, and Clairwood Racecourse where buildings were demolished and trees cut before a decision had been made.”

He added that in towns such as Richards Bay “these plants’ products are sent overseas. Who benefits? The communities pay the price and are left with health issues. The government needs to be transparent with communities and allow for comment.”

Independent on Saturday

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