The Richards Bay Industrial Development Zone is seeking investors to invest in an agri-processing facility within the zone.
The Richards Bay Industrial Development Zone (RBIDZ) is seeking investors to set up plant for the agri-processing of perishable and non-perishable goods in the KwaZulu-Natal Province. The focus is specifically directed at investors that are export-oriented and have the potential to create significant numbers of new and permanent decent employment opportunities. Moreover, the agri-processing sector is viewed as one that promotes increased participation of historically disadvantaged groups and marginalized regions in the mainstream industrial economy.
There are numerous opportunities that can be explored in both food and non-food sectors. KwaZulu-Natal (KZN) possesses competitive advantages in a number of fruit, vegetables and beverage sub-sectors, which, if fully exploited, would place it among the world’s top export producers in high-value agricultural products. The agro-processing sector consists of a diverse group of subsectors. The major identified sectors include: food processing, beverages, aquaculture, horticulture, medicinal, aromatics and flavourants. Farmed fish is recognised as a growth market, with international demand for aquaculture products growing, making the farming of a number of fish species viable.
RBIDZ is strategic gateway to global markets
KZN enjoys comparative advantages in the agri-processing sector with RBIDZ as the province’s strategic gateway to the eastern seaboard and springboard to SADC and other African markets.
The overall strategic objective of RBIDZ is to promote competitiveness of South African enterprises through the export-led value-added manufactured products and services with linkages to South Africa’s economy and natural resources. This will be achieved through the development of linkages between domestic and zone-based industries, attraction of foreign and local investment projects to create sustainable jobs. This is simply a one-stop-shop for business developments that will potentially cater for agri-processing businesses within IDZ.
Investment advantages
RBIDZ is in close proximity to the largest and busiest deep sea National Port of Richards Bay (container terminal) and concomitant rail infrastructure including exemption from custom duties on import of capital goods, raw material through in-house Control Customs Area (CCA). The reduction in corporate tax from 28% to 15% is one of the least incentives that would benefit all locators within IDZ/SEZ precinct. RBIDZ prides itself with good infrastructure priority, well-developed serviced land in Phase 1A which is two kilometres away from the Port of Richards Bay. Site acquisition method is on lease basis and this serviced land is readily available. Most importantly for the agri-processing sector, the land use plan in Phase 1A is for light, clean industries.
Reasons to invest in agri-processing sector in KZN
The main reasons to invest in the agri-processing sector are:
– High growth in demand of agri-processed products both locally and for export;
– Supportive regulatory frameworks in place;
– Government prioritisation of the sector as a key economic driver;
– High export growth potential in sub sectors such as fragrances and flavours, meat and animal products, tea and tea products, and groundnuts.
– KZN province having favourable climatic conditions and variety of bio-climates for primary production of raw materials. Its diverse bio-climatic regions and topography allow for virtually any crop to be grown somewhere, which makes the province a world-in-one.
– The province enjoys the advantages of having relatively high rainfall, moderate to subtropical temperatures, access to markets, export facilities and a growing economy.
Relevant national and provincial incentives
Government supports investment in the sector in the form of grants and incentives that are offered through the Department of Trade and Industry.