KZN Investment Protocol

8/8/2019 KZN Investment Protocol

1/13

10/16/2010

1

An Investment Protocol for the Province of KwaZulu-Natal

13 October 2010

In this presentation

Background

Objectives

Key Investment Policies

Regulatory Environment

Main Processes Followed in starting a business1. Company Registrations

2. EIA

3. Land Acquisition

4. Land Development

5. Infrastructure and Services

6. Investment Incentives

Other important regulatory requirements


2/13

10/16/2010

2

Definition

Investment Protocol entails:

Compilation of investor-related information Aimed at providing prospective and investors with

relevant, guiding information wrt: Regulatory Environment Policy and procedures Provision of relevant services

Background

Paradigm shift in factors driving investment decisions world wide

Investors concerns about delays in commissioning of projects

FDI not expected to increase spectacularly in 2011

Need for real time information to assist investor decision

Perpetual complaints about too involved government processes


3/13

10/16/2010

3

KZN Investment Protocol

Objectives

To provide clear guiding principles and information for investors

To provide open and honest communication to investors

Eliminate ambiguity when communicating with investors

Promote ease of doing business in KZN

Fast track decision making by investors

Increase investment flows into KZN

Policy priorities governing business inSA & KwaZulu-Natal

RDP address socio-economic division

GEAR increase trade openness & improve investment climate

ASGI-SA - accelerate job creation alongside econ growth (abolish jobless

growth)

B-BBEE empower black majority & increase participation in economy

NIPF & IPAP - set out governments approach to South Africas

industrialisation path; help align both private and public sector efforts

PGDS

PSEDS

IDPs

Other important priorities:

Rural development

Promotion of Green and energy-efficient goods and services

Downstream mineral beneficiation

etc


4/13

10/16/2010

4

Regulatory environment

Regulatory bodies

FSB- supervises activities of financial institutions

ICASA television and radio broadcasting, telecommunications and the

assignment of radio frequencies

SANAS gives formal recognition of competence to Laboratories,

Certification Bodies, Inspection Bodies, Proficiency Testing Scheme

Providers and Good Laboratory Practice (GLP) test facilities

SRP investigate insider trading and regulate acquisitions and takeovers

SABS promotion and maintenance of standardization and quality

NERSA regulate the electricity, piped-gas and petroleum pipeline

industries

NRCS - protects public rights to SHE (safety, health & environment

Competition Commission

Etc,

Regulatory environment

Main Regulations

Company Registrations

Environmental Impact

Land Acquisition Property Development

Provision of Infrastructure and services

Incentives application


5/13

10/16/2010

5

Registering a business

Procedure Estimated

timeframe

Responsibility

Reserve a company name with the Registrar

of Companies and pay fees

3 days (electronic

lodgments

CIPRO

Lodge formation documentation 5-7 days CIPRO

Open a bank account 1-2 days A commercial bank

Register with SARS for income tax, VAT,

and employee withholding tax (PAYE and

SITE).

12 days SARS

Register with the Department of Labor for

Unemployment Insurance and any other

obligations

4 days, simultaneous

with Procedure 4

DoL

Environmental Impact Assessment

Basic Assessment

Applicant will be informed as to whether project needs a

basic assessment or not

Scoping and Full EIA

Applicant will be informed as to whether project needs

scoping and Full EIA.


6/13

10/16/2010

6

EIA process (Basic Assessment)

EIA procedures Estimates timeframe Responsibility

1. Submission of an Application Applicant

2. Acknowledgement 14 days. KZNDAE

3. Accept/ reject/ request further

information.

Within 30 days KZNDAE

4. Issue decision / Environmental

authorisation

Within 30 days. KZNDAE

5. If KZNDAE cannot meet the

timeframe, then an automaticextension

60 days KZNDAE


authorisation


Note: PAJA (Promotion of Administrative Justice Act) becomes applicable when decision isnot made within last 30 days. Applicant has grounds for legal recourse through this act.

EIA process (Scoping Report)





information.



authorisation



timeframe, then an automatic

extension

60 days KZNDAE

6. Issue decision / Environmentalauthorisation




7/13

10/16/2010

7

EIA process (Environmental Impact Report)





information.



authorisation



timeframe, then an automaticextension

60 days KZNDAE


authorisation



EIA process: Conclusion

KZNDAE will solicit comments from other government departments

Comments to be made and submitted within 40 days of receiving

documents from KZNDAE

Decisions must be issued within two days of signature

Public holidays and 15 Dec to 02 Jan are not counted as working

days

Accredited EIA consultants are available on KZNDAE Database if

required by applicant


8/13

10/16/2010

8

Land Acquisition

Privately-owned land State-owned land Ingonyama trust land

Land can be transferred between different

buyers/sellers at any time

Purchases or leases of State land are subject

to tender. Two scenarios apply for the

acquisition of State land.

Applicant goes to local tribal authority

(Chief) with proposal

The process is handled by a registeredbroker or estate agent

Application by an investor or developer forthe use of a particular plot of State land; or

If Chief approves, approval letter isissued to applicant

All transactions must be recorded in Deeds

Office

A response by an investor to an invitation by

the government for bids to develop land.

Approval letter is taken to Ingonyama

Trust Board (ITB)

In cases of registered mortgage bonds,

cancelation fees charged on seller ontermination of bond agreement

The land is evaluated to determine whether

a freehold sale or long-term lease would bemore appropriate.

Applicant fills the form providing d etails

of proposed project

The property is advertised for six weeks for

competing developers to respond.

If ITB approves, a minimum of 2 years

lease will be granted

A valuation by an independent valuer iscarried out.

Applicant must apply for renewalbefore 2 years expires

The proposal is evaluated by the evaluation

committee.

ITB can renew the lease up-to 40 - 45

years depending on the project type

The Minister of Public Works signs the sale.The process usually take 3 6 months to

complete

Rezoning (Planning Development Act)

Process Requirements Resp

1. The application is

handed in to the

municipality.

Application must include:

1. The application form

2. Written motivation

3. Proof of ownership in the form of a registered deed

of the land.

4. The written consent of the registered owner of that

land

5. Copies of the layout plan or general plan for sub-

division or consolidation of land or development

outside a scheme, and

6. Any other plans, diagrams, documents, information

or fees.

Developer


9/13

10/16/2010

9


2/5

Process Requirements Resp.

2. Receipts of

application

and the

request for

further

documents.

Once the application is lodged, the munic ipality must:

1. Record the receipt in a register.

2. Notify the applicant in writing within 28 days of any

document that may be outstanding.

3. Notify the applicant that the application is complete within

14 days after the receipt of the additional documents.

4. If no request is made by municipality within 28 days, the

application is considered to be complete.

5. Additional information must be provided within 90 days

from applicant, or decline in writi ng to provide the

documents.

6. Application process must be complete before the next

step, which is giving of public notice of a complete

application.

Municipality


3/5

Process Requirements Responsib

ilit

3. Giving

public

notice

Within 14 days of notifying the applicant that the application is

complete, the municipality must give notice.

Municipality

4. Manner of

public

notice

The public notice must be given in the following format:

1. Display a notice on the land

2. Serve notice to interested parties.

3. Publish a notice in a newspaper distributed within the area

concerned.

4. Hold public meetings if notice displays are not possible.

5. The municipality should obtain the opinion of a registered

planner before taking the decision not to publish a notice.

Municipality


10/13

10/16/2010

10


4/5


5. Petitions

and delivery

of groups

The municipality must reply to the designated person or the first

person on the list. This action will constitute as a notice to each

person on the petition.

Municipality

6. Amendments

to

application

prior to

approval

1. A municipality may amend the application any time after the

notice has been published but before approval.

2. Any person, who has commented must be notified of the

amendments and given a further 14 days to comment.

3. If the amendments are material, the municipality must re-

issue the notice allowing 30 days for comment.

Municipality

7. Applicants

right to

reply

1 Copies of all comments made to the municipality must be given

to the applicant within 7 days of the c losing date for

comment.

2 The applicant may reply in writing to the people who made

comment, within 21 days.

Applicant


5/5


8. Site

inspection

The municipality must:

1. Notify the applicant and agree on a time and date for the

inspection.

2. Secure the property after the site inspection if the owner or

occupier is not present.

Municipality

9. Public

hearing

1. A municipality may decide whether or not to conduct a

hearing within 14 days of the waiver or comment.

2. If they decide to hold a hearing, this must take place within

60 days.

3. All parties then have a right to attend the hearing, to state

their case, call witnesses, cross-examine any person and

have access to all documents.

Municipality


11/13

10/16/2010

11

Infrastructure & services

Process Requirements Estimated duration

Elect ricit y connect ion 1. An appli cat ion t o be submit ted t o

the nearest Municipal offices at

least seven days prior to the

requested connection date.

2. Proof of property holding: title

deed or lease agreement

3. A cash deposit or bank guarantee

may also be required to cover

costs in the event of non-payment.

1. estimated quote of

installation costs within

14 days of the initial

application

2. Installation up to 24

months for large

projects

Water connection Same as above 1. one day to two weeks

for serviced sites

2. between one 1 and 12

months for sites that

are not serviced

Infrastructure & services

Process Requirements Estimated duration

Telkom line connection An application to be submitted to

the nearest Telkom sales.

1. one week for

telephone line

connection if lines

are in place

2. up to four 4 months

if equipment

upgrade is required


12/13

10/16/2010

12

Most incentives are administered by thedti and application thereof take different

timeframes to conclude. E.g.

Incentives application

Incentive Application duration Responsibility

APDP 2 months thedti

EIP 14 weeks thedti

FIG 3.5 months thedtiBPOII 8 weeks thedti

Other important regulations

Labour Laws

1. LRA

2. BCEA

3. SDA & SDLA

Intellectual Property Laws Tax

Exchange Controls

Importing and Exporting

Sector specific regulations

Municipal By-laws


13/13

10/16/2010

13

Conclusion

KZNDAE has reported a significant reduction in number of

applicants complaining about EIA turnaround time

Change of the EIA regulations is cited as one of the reasons. E.g.

Small projects like installation of pipes within certain ranges, no

longer require EIA.

Some Municipalities attribute complaints by applicants to poor

advise given by officials during initial consultation by applicant.

Improvement of efficiencies is required particularly in wrt

regulations such as rezoning and connection of uti lities.

Thank You

KZN Investment Protocol

Documents