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
8/8/2019 KZN Investment Protocol
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
8/8/2019 KZN Investment Protocol
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
8/8/2019 KZN Investment Protocol
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
8/8/2019 KZN Investment Protocol
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.
8/8/2019 KZN Investment Protocol
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
6. Issue decision / Environmental
authorisation
Within 30 days. KZNDAE
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)
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 automatic
extension
60 days KZNDAE
6. Issue decision / Environmentalauthorisation
Within 30 days. KZNDAE
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.
8/8/2019 KZN Investment Protocol
7/13
10/16/2010
7
EIA process (Environmental Impact Report)
EIA procedures Estimates timeframe Responsibility
1. Submission of an Application Applicant
2. Acknowledgement 14 days. KZNDAE
3. Accept/ reject/ request further
information.
Within 60 days KZNDAE
4. Issue decision / Environmental
authorisation
Within 45 days. KZNDAE
5. If KZNDAE cannot meet the
timeframe, then an automaticextension
60 days KZNDAE
6. Issue decision / Environmental
authorisation
Within 30 days. KZNDAE
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: 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
8/8/2019 KZN Investment Protocol
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
8/8/2019 KZN Investment Protocol
9/13
10/16/2010
9
Rezoning (Planning Development Act)
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
Rezoning (Planning Development Act)
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
8/8/2019 KZN Investment Protocol
10/13
10/16/2010
10
Rezoning (Planning Development Act)
4/5
Process Requirements Resp.
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
Rezoning (Planning Development Act)
5/5
Process Requirements Resp.
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
8/8/2019 KZN Investment Protocol
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
8/8/2019 KZN Investment Protocol
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
8/8/2019 KZN Investment Protocol
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
Top Related