Durban - KwaZulu-Natal, which is strategically positioned to attract foreign investment, has not yet risen to its full potential.
The province's location and infrastructure puts itself in a prominent position to build trading relations for African countries, said Premier Zweli Mkhize at the International Entrepreneurship and Investment Conference.
According to MEC for Economic Development and Tourism Mike Mabuyakhulu KZN "put its money where its mouth was" as far as investing in infrastructure goes.
However, KZN like the rest of the African continent faced issues with attracting investment.
Zamo Gwala, CEO of Trade and Investment KZN (TIKZN), said a recent study (KZN Investment Climate Survey) showed that unfair business practices and corruption, access to finances and shortage of skilled labour continue to hinder investment and entrepreneurship in the province.
Other issues raised by study were lengthy business registration processes, high numbers of unhealthy staff and support structures. Investment protocols and zoning issues also discouraged new investors.
While local SMMEs needed support with more practical aspects of business, foreign investors needed help with the regulation environment in the South Africa. Gwala said larger international companies have the capacity to source the relevant information but that was not the case for smaller businesses wanting to operate in South Africa.
To address some of the issues emanating from the study, TIKZN launched an Investment Protocol handbook.
The Investment Protocol Handbook serves as a guide to various business policies and processes within the province, with particular focus on the ease and cost of doing business with regard to local and foreign investments.
The handbook provides information on the regulatory environment, the processes involved to comply with the regulations, the cost of doing business, and the length of time it takes to conclude the compliance processes.
Mabuyakhulu said the provincial government approved the KwaZulu-Natal Investment Strategy. This initiative will provide strategic guidance to the actions and activities of the DEDT, TIKZN, and all other relevant role players in attracting, promoting and facilitating investment of R33 billion by 2016.
The strategy has five pillars: achieving institutional coordination, dynamic Investment promotion focus, packaging Information and research, addressing the fundamentals and skills and resource requirements.
