Overview

From its concept to development and because of its size and scale Riverhorse Valley Business Estate has become a precinct or suburb in its own right, created through the Effingham Development Joint Venture partnership between eThekwini Municipality and Tongaat Hulett. The site is made up of parcels of land from the surrounding suburbs of Effingham, Greenwood Park, Avoca, and Newlands East, and cannot actually lay claim to belonging to any one of these established suburbs, and as such exists as the suburb of Riverhorse Valley.

Riverhorse Valley Business Estate (RHVBE) is an open light industrial and commercial business estate approximately 150 hectares in size, housing approximately 166 businesses and was borne out of the above mentioned partnership or joint venture between eThekwini Municipality and Tongaat Hulett; at the time known as Moreland Developments. The vision was to create a blue chip facility which differed from the traditional enclosed and gated facility normally associated with this type of development, and instead integrate it with its surrounding areas and communities as well as its natural resources and open spaces. This vision married with strict development guidelines and environmental management procedures has resulted in a first class, managed, business precinct which embraces community and environment in equal measure. The purpose of Riverhorse Valley Business Estate Management Association (RHVBEMA) is to ensure that these values continue to be upheld by its members, role players, and most importantly, itself.

The ratio's and socio-economic impact of the development of the Estate are as follows:

70% manufacturing and warehouse
10% commercial and services
15% office
5% Residential

"It is estimated that there were some 12 000 construction and construction-related jobs sustained in the city and province as a result of the development of Riverhorse Valley over time, with about one third of these (4 000) directly on site, and two thirds generated especially in the local and KZN building supplies sector, but also the more general local retail economy (due to construction and related workers spending their wages etc). In the relatively early stages of its development some 4 000 permanent jobs were established here, but based on precedents in similar areas in Durban and given projected full GLA, it is projected that there will be some 10 000 permanent jobs in the future. Also based upon projections from other precedents nearby, most of these jobs will be new to eThekwini".

"Rates income to the Council (eThekwini Municipality) should be significant, and would likely ultimately be in the region of R 20 – 45 million p.a., depending upon final mix of use and level of development by purchasers/lessees. Other public benefits include VAT raised during the construction phase, which alone would be R2 billion @ 14% = R280 million and this amount (indirectly, in private-to-public transfers) almost defraying the costs of the intersection (Queen Nandi Drive Interchange). In addition, if the balance of development cost was made up by wages and company profits, even assuming a modest 10% tax incidence would yield a further R200 million in public receipts. Thus, when viewed from the perspective of metropolitan citizens and ratepayers as a whole, good social (e.g. jobs, enhanced metropolitan accessibility) and financial (e.g. rates and taxes) returns have been received in relation to the public outlays.” – Dr. Jeff McCarthy, from his 2009 report ‘Socio-economic Impacts of Riverhorse Valley Development’.