By Nangamso Mabindla
11 August 2004

THE Buffalo City Development Agency (BCDA) has initiated a two-fold plan to enhance the local economy – by attracting both tourists and investors to the city.

The first plan in the pipeline – aimed at attracting local and foreign tourists – is the redevelopment of the East London beachfront.

As far as investment in Buffalo City is concerned, the recent news that DaimlerChrysler’s West Bank plant will be manufacturing the next generation Mercedes Benz C-Class for export will be a boost for both the city and the BCDA.

BCDA acting CEO Peter King said: “It will impact indirectly on the agency since thriving anchor industries in the city contribute to the creation of a vigorous circle of economic growth, development and business confidence. This will in turn will increase the city’s exposure and improve the city’s chances of attracting other investors.”

Still in its set-up phase, the BCDA has been given R18.3-million by the Industrial Development Corporation to cover the running costs of the agency over the next four years.

According to King, if the BCDA achieves its goals and makes East London a more attractive city to tourists and investors, that would mean better job opportunities, which would in turn enrich the city and its citizens.

“We have to try to imagine how a prospective investor would assess a city,” King said.

Besides recreation facilities, investors would look at other social assets like schools and entertainment, he added. “If these are in good order then investors would likely see that city as an attractive investment destination.”

The development agency will start by looking to improve the city’s extended beachfront and Quigney areas to make the city more attractive to potential investors and already established corporations like DaimlerChrysler.

“It’s the circle of economic development. You attract investors or industrialists, they in turn bring wealth to the city and wealth creates jobs; it’s as simple as that. But we need to think like industrialists and give them what they want,” he said.

To achieve this objective, Buffalo City needed to have creative partnerships between private and public capital to grow the value of the city’s assets along the beachfront, in Quigney and in the CBD.

“If you look at possible developments around the city, the tourism boom which has been given new impetus by the fact that SA is seen as an attractive safe haven for travellers, as well as the expansive vision of the University of Fort Hare management for its local satellite in the Quigney and CBD, the city is in a very good position to compete for investment.”

King also said indications were that there would be an increase in public investment over the next 10 years, above and beyond the critical infrastructure that the city stood to gain from the development of the IDZ.