The Riversands Incubation Hub, near Diepsloot, is expected to create 1 372 new permanent jobs between 2013 and 2018, at a cost of R295 000 per job.

The hub served as a social responsibility project, initiated by Century Property Developments and matched rand for rand by National Treasury’s Jobs Fund, and sought to nurture small, medium-sized and microenterprises (SMMEs) by mentoring and supporting them to become fully fledged, formal businesses.

In response to a Parliamentary question posed by opposition party, the Democratic Alliance’s Hendrika Krüger, Finance Minister Nhlanhla Nene said the figures above excluded temporary employment opportunities during construction and indirect job creation impacts.

The average Jobs Fund grant cost per permanent job commitment to date was R52 000; however, the cost per job in infrastructure projects such as the Riverside Incubation Hub was “considerably” higher, partly because these projects had extended impacts on employment creation beyond the contracted employment commitments during the timeframe of the fund.

“The location of the facility in a commercial park is intended to provide market linkage for SMMEs through partnerships with established enterprises and benefits associated with the growth in trade and business activity.

“The incubation hub will remain a centre of support for existing and newly created SMMEs and informal enterprises beyond the timeframe of the Jobs Fund and so its longer-term employment impact is larger than this estimate,” Nene said in a written reply.

Meanwhile, the Minister pointed out that the Jobs Fund had, to date, invested R383-million in the Riversands Incubation Hub, which was started in 2014.

The total amount approved by Treasury for allocation to the project by the Jobs Fund was R405.97-million, while the matching contribution from Century Property Development amounted to R520.32-million.

“The total cost of the Riversands Hub project amounts to R926.29-million, comprising a hub facility investment of R855-million, or 92.3% of the total project budget, and R71.29-million in training, operations and management expenditure,” Nene said.

The balance of funding still available from the Jobs Fund for the Riversands Incubation Hub project was R22.5-million.