Page 11 - KZN Business Sense Vol.2 No.5
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UN WORLD INVESTMENT FORUM - SUSTAINABLE DEVELOPMENT
Russell Curtis from Durban
Investment Promotion For private finance to be a proposal screening matrix is sectors, including: development agencies or local
was an invited panel solution, investment products, often helpful. ■■ Develop expertise, network, and branches of national IPAs
speaker in a discussion about public policies, and civic support ■■ A focus on significant “economic” share best practices ■■ Partner with national IPAs
“Promoting Investment in Urban need to be created around efforts infrastructure upgrades as ■■ Improve efficiency of local as well as regional and other
Development” at the United that combine an interest in platforms for private investment. revenue generation and find subnational IPAs and outward
Nations Conference on Trade and sustainability, the importance of ■■ National Government “City innovative ways of generating investment agencies
Development (UNCTAD) World cities, and the multiple potential Support Programmes” to focus additional local revenue such as: ■■ Benchmark against other
Investment Forum, Nairobi, 17 – sources of capital. There are at least on direct metro level engagement locations
22 July 2016. three conditions of private finance with prioritised investment »» Land-based finance ■■ Engage in investor aftercare
would have to be met: a market for promotion and infrastructure »» Establishing municipal ■■ Evaluate and improve
The event highlighted, amongst urban SDG investment projects, support . corporations and investment facilitation
other topics, the importance of good return on investment, and municipal development ■■ Set up relevant special economic
the still relatively new global limited risk. Curtis emphasised that in funds zones, parks, or clusters
Sustainable Development Curtis proposed the following order to implement the SDGs it »» Borrowing from capital
Goals (SDGs), and the key role during the discussions: is important to start with the market via municipal It is pleasing to note that
of investment promotion and ■■ A metro investment promotion likes of Goal #17: ‘Partnerships bonds eThekwini has often played a
facilitation in working towards agency or investment promotion for the goals’ in order to enable »» Obtaining funds from key role in many areas noted
achieving these goals (see team structure is required to a direct project focus to jointly institutional investors above, and now, with the recent
pictogram below). operate at the highest levels in a deliver on other key SDGs such as (e.g. pension funds) and help of the National Treasury
City. #7 ‘Renewable energy’, #8 ‘Good equity markets and the World Bank, will be
A target of the conference was ■■ Top leadership support for jobs and economic growth’, #9 ■■ Cities with long-term plans do looking to further improve
to gather knowledge, market investment promotion ‘Innovation and infrastructure’, better, even if they do not follow Durban Investment Promotion’s
intelligence, and alternative prioritisation is required on a #10 ‘Reduced inequalities’ and them operations, teams, structures
means to achieve foreign long-term, sustained basis, if #11 ‘Sustainable cities and ■■ Measure and report on SDG and tools.
direct investment (FDI) within they are to be more effective. communities’. There are also indicators at the city level
the realms of the SDGs. This ■■ The establishment of such a other SDGs which are already well ■■ Develop a city strategy for Further background papers on
being contextualised within structure should be confirmed aligned with current eThekwini promoting investment in SDG some of this topic from the UN’s
a background that traditional in law, via a legislative process Metro priorities, leading to sectors perspective are available at:
investment promotion strategies to ride through political and partnership projects (in SDGs #6 ■■ Enlist chambers of commerce, UNCTAD’s Global Action Menu
are not always enough for the administrative transitions. ‘Clean water and sanitation’, #13 industry associations, and other for Investment Facilitation (at
ever changing investment world ■■ More technology enablers are ‘Climate action’, and #15 ‘Life on stakeholders http://investmentpolicyhub.
environment, and new alternative required such web portals, land’). ■■ Develop “Green” municipal unctad.org/Blog/Index/53)
strategies must be developed. online investment dashboards, financial instruments Investment Policy Framework
The panel considered two key online incentive apps, data The UN organisers in turn ■■ Establish subnational or city for Sustainable Development
questions: sourcing and data analytics, advised the following for Metro investment promotion agencies (at: http://investmentpolicyhub.
social media marketing, etc. leadership to take note of: “Cities (IPAs) and economic unctad.org/ipfsd). n
What challenges do cities ■■ A holistic, SDG-aligned project have a range of options to attract
face in achieving sustainable and mobilise investment in SDG
development, and what role is
there for private investment,
including FDI, in addressing
these challenges?
Private financing could fill the
funding gap for many urban SDG-
related projects, including green
infrastructure. At the same time,
investors differ in their needs and
capacity and vary between sectors,
so multiple forms of private capital
will be necessary to support
sustainable urban development.
Sustainable cities are forged
through successful partnerships
between public, private, and civil
society stakeholders, specifically
municipalities, environmentally
active communities, and the
private sector. This demands
adapted city management.
How can cities effectively attract
investment for sustainable
development, including in SDG
sectors?
Taxation Laws Amendments
Gayle Adlam, Bafundise Skills 32 000 employers claimed the qualification level of the learner equivalent to NQF level 7 or end of the learnership contract).
incentive for 686 402 employees when entering into a learnership higher. In the case of learnerships that
The proposal by National in the 2014/15 tax year. The total agreement to improve the exceed 24 months, an allowance
Treasury and the South value of claims between 1 January targeting of the incentive Once a learnership contract is claimed for every completed
African Revenue Service 2014 and 31 March 2016 was R6.06 towards more technical skills. has been entered into, the year. The incentive also caters
(SARS) that the learnership billion, substantially exceeding It is proposed that the value of employer may claim an for learnerships of less than 12
tax incentive is to be extended previous projections. the deduction is increased to additional deduction comprising full months where the benefit is
from 1 October 2016 for another R40 000 (R60 000 for disabled a commencement allowance calculated pro-rata.
five years to 31 March 2022 has Adjustments to the value learners) for qualifications up (deductible upon entering into
been welcomed. A recent media of the deduction have been to NQF level 6 and decreased to a learnership contract with an More information can be found on the
statement reported that over proposed. The proposed rebate R20 000 (R50 000 for disabled employee) and a completion National Treasury (www.treasury.gov.za)
will be based on the highest level learners)for qualifications allowance (deductible at the and SARS (www.sars.gov.za) websites.
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