Construction & Materials

• The Eastern Cape Government will spend more than R16-billion on infrastructure development by 2013

Figures released in September 2009 showed that the Eastern Cape was leading South Africa’s property market out of the recessionary spell. According to Realestateweb.co.za, affordable housing was the leader, with returns for the Eastern Cape moving above 4%.

National and provincial government spending on infrastructure is also having a positive impact on the construction industry. The Eastern Cape Government is committed to spending more than R16-billion in the five years to 2013. Contractors in roads, health and education facilities are expected to expand their businesses to meet this demand. A further R5.2-billion will be spent on housing.

A number of agencies are promoting investment in the province, and property concessions are among the most attractive incentives being offered. The Buffalo City Development Agency (BCDA) offers a 20% depreciation write-off every year for five years on improved buildings. New buildings receive a 17-year write-off period, and these costs are tax deductible against the investor’s entire taxable income.

The industrial development zones at Coega and East London are aggressively seeking tenants. East London’s marketers announced at the South African Property Owners’ Association conference in 2009 that brokers and agents would receive commission for any new businesses they attracted to the zone. The Eastern Cape Development Corporation also has a portfolio of properties (manufacturing, residential and warehouse spaces) that it is offering at good rates.

In late 2009, the Uitenhage Despatch Development Initiative brought to market a 7.3-hectare site in the centre of Uitenhage, inviting innovative bids for the development of the historic steam-railway sheds. About five hectares are zoned for general business and allow for a variety of office, retail or entertainment concerns to set up shop in the Victorian-era buildings. The smaller part of the site is to be developed by the UDDI as the Uitenhage Science and Technology Centre for Nelson Mandela Bay Metropolitan Municipality.

The focus of the Mandela Bay Development Agency has been on upgrading areas of Port Elizabeth. Govan Mbeki Avenue, in the central business district, has been transformed into a pleasant area and the Parliament Street precinct is now safe.

Online resources
Buffalo City Development Agency: www.bcda.co.za
Coega Industrial Development Zone: www.coega.co.za
Eastern Cape Development Corporation: www.ecdc.co.za
East London Industrial Development Zone: www.elidz.co.za
Mandela Bay Development Agency: www.mbda.co.za
Uitenhage Despatch Development Initiative: www.uddi.co.za













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