INVESTMENT PROSPECTS in the Buffalo City area have been given a boost through the award of a provisional operator’s licence for the East London Industrial Development Zone to The East London Development Zone Corporation (ELDZC). The ELDZC was established in 1999 to develop the IDZ initiative and attract investment. The licence means that the ELDZC is the official operator of the zone and can now move from the planning stages to the full development of what is being described as South Africa’s first fully operational IDZ. The East London IDZ is already served by both a port and an airport, and has bulk infrastructure in place for the first phase. Two investors – a condom factory and a brewery – have begun construction in the zone. According to ELDZC ceo Peter Miles, the zone will be ready for operation in the custom secure area and associated industrial park by July 2004. Miles expects that by the IDZ's tenth year more than 38 000 jobs will have been created, both directly and indirectly, and income in excess of R1 834-billion generated. Miles says the municipality will also gain through service charges, together with rates and taxes. Finance, Economic Affairs, Environment and Tourism MEC Enoch Godongwana welcomed the licensing, saying people would benefit from the jobs created during the construction phases. Godongwana said the IDZ and Coega both had very good implications for the province's economic infrastructure generally. The national and provincial government funding for the East London zone to date is R67,6 million with a total infrastructure investment of R270-million for the first planning phase. The second phase has already started with the Ninham Shand Engineering Consortium being granted a tender to oversee bulk infrastructure design worth R150-million. Executive director of the Border Kei Chamber of Business Les Holbrook told the Daily Dispatch newspaper that the licensing was "very very positive news for business in the city. This comes as confirmation that we have the potential to succeed as a province and that we can now move to intensify marketing.” Holbrook said the big advantage of the IDZ was that it was located close to the harbour and airport. “Logistics and time are key to where people will place their investment and the IDZ is perfectly suited for this,” he said. Holbrook did, however, stress that there are still many other challenges that needed to be overcome to make sure the zone is a success. South African Ports Operation acting general manager Nosipho Damasane said the port welcomed the licensing and that it was ready to deal with any increased cargo resulting from the operations.