Plans for a third Industrial Development Zone at Saldanha Bay on the west coast are in the pipeline. Government seems to have learned from the failure to date to attract major tenants to the Coega, Richards Bay, OR Tambo or East London IDZs. It is understood that the proposed IDZ could be the first to emerge following a broad-ranging review of the IDZ concept and how it has been implemented. The DTI review highlighted a number of shortcomings of the IDZs in promoting domestic and foreign investment, and led to the drafting of new legislation that will also be published soon. In its interaction with the IDZs and potential investors, FTW has been told that the major constraints are a lack of reliable power, concerns over water supplies, and an absence of competitive incentives in the form of tax breaks and cheap land.
