On 13 April 2021, the Deputy Minister of Trade, Industry and Competition said the Special Economic Zones (SEZ) Programme continued to successfully drive industrialisation of the country despite the devastating impact of the pandemic on the economy.
According to the Minister, the SEZ Programme has managed to attract a significant number of investors. This has seen the value of operational investments increasing from R17.7 billion by the end of the third quarter (Q3) of the 2019-2020 financial year to R19.5 billion by the end of Q3 of the 2020-2021 financial year. This is a positive increase of R1.8 billion. During the same period, the number of investments has increased from 129 to 143.
South Africa is using the SEZs to reignite manufacturing-led industrialisation in an accelerated manner
The Minister highlighted the following achievements of the SEZ Programme during the 2020-2021 financial year:
- Tshwane Automotive SEZ is completing the construction of 12 factories with the private investment value of R4.33 billion. The investments are expected to create more than 2 000 jobs.
- Dube Tradeport secured new investments worth approximately R600 million, the investments are expected to create 841 jobs.
- Coega has signed four new investors that are estimated to be valued approximately R49 million and are expected to create an estimated 101 new jobs.
- Saldanha Bay is completing the construction of two manufacturing facilities with an investment value of R380 million; they are expected to create approximately 90 direct jobs.
- Richards Bay is completing the construction of an edible oil factory and Titanium Dioxide factory with a combined private investment value of R5.8 billion. About 600 direct jobs are expected to be created.
East London Industrial Development Zone (IDZ) completed the construction of nine investor facilities and the expansion of three existing facilities. These facilities will create an additional 1 534 manufacturing and services jobs and these will be operationalised within the next two (2) years.
The Minister added that the number and value of operational investments were expected to increase by almost R10 billion during the current financial year due to investments that are currently under construction.
Story by: Riaan de Lange