Trade, Industry and Competition Minister Parks Tau says South Africa's Special Economic Zones (SEZs) have attracted a combined R31.7 billion in investment and created 28 821 direct jobs, underscoring their growing role in driving industrialisation, investment and employment.
Addressing the 2nd International Special Economic Zones Conference at the Durban Exhibition Centre in KwaZulu-Natal on Thursday, Tau said 13 SEZs have been designated across eight of the country's nine provinces.
"Within these zones, 224 companies are operating. They have invested a combined R31.7 billion, a net increase of R17.2 billion over the past eight years.
"They have created 28 821 direct jobs. The dtic has supported this performance with R12 billion in top structure and bulk infrastructure since inception," the Minister said.
Tau said the exhibition floor reflected the tangible impact of the country's investment drive.
"Ford's expansion at the Tshwane Automotive Special Economic Zone has unlocked R16 billion in private investment, alongside R5.9 billion from other TASEZ-based investors, delivering 3 333 direct jobs to date."
Tau also highlighted the progress made at the Richards Bay Industrial Development Zone, which has grown from a slow start to a pipeline of 24 potential investors, with projects valued at an estimated R247 billion.
"The second phase of the Nyanza Light Metals titanium dioxide project has reached financial close on a R14.5 billion investment. It will create more than 800 direct jobs once fully operational. These are the results produced by companies represented in this hall today," he said.
Tau encouraged delegates to take advantage of export-focused sessions, including masterclasses and fireside discussions hosted by DHL Express, SAFLEC and Trade and Investment KwaZulu-Natal (TIKZN), aimed at supporting manufacturers and small businesses that are exporting or preparing to enter international markets.
Looking ahead, Tau outlined several key outcomes government hopes to achieve during the two-day conference.
"We expect to progress the designation of two further zones -- Fetakgomo Tubatse and Vaal. We expect new investment commitments and partnership agreements.
"We are tabling an independent World Bank review of our SEZ Programme, and we will use it to finalise a revised SEZ Implementation Model, one that brings in more private-sector-developed industrial parks, stronger non-financial incentives, and a formal process for turning around zones that are underperforming.
"We are using this conference to strengthen the export pathways that our zones can access through the African Continental Free Trade Area," Tau said.
KwaZulu-Natal MEC for Economic Development, Tourism and Environmental Affairs, Musa Zondi, said the conference comes at a pivotal time as South Africa works to stimulate inclusive economic growth, expand industrialisation, attract investment and create sustainable jobs.
"Special Economic Zones remain one of government's most important instruments to realise these objectives by creating globally competitive industrial hubs that attract investment, support manufacturing and increase exports," he said.
Zondi said KwaZulu-Natal's strategic infrastructure, including the Ports of Durban and Richards Bay, King Shaka International Airport, the Dube Tradeport Special Economic Zone and the Richards Bay Industrial Development Zone, positions the province as a gateway for trade and investment into South Africa, the African continent and global markets.
"KwaZulu-Natal remains committed to working with national government, our Special Economic Zones, the private sector and international partners to build an economy that is competitive, resilient and inclusive.
"We are confident that the outcomes of this conference will contribute meaningfully to South Africa's industrialisation agenda and create new opportunities for investment, enterprise development and employment," he said.
Held under the theme, 'Reigniting Industrialisation through World-class Special Economic Zones', the conference places South Africa's SEZ Programme in the global spotlight as government intensifies efforts to accelerate industrialisation, attract investment and create jobs.
More than 1 000 delegates are expected to attend the two-day gathering, which showcases the country's SEZ Programme as a key industrial policy instrument for stimulating economic growth, attracting foreign and domestic investment, and expanding the manufacturing sector.
Special Economic Zones are geographically designated areas that offer world-class infrastructure, streamlined administrative processes, and a range of fiscal and non-fiscal incentives to attract investment and support industrial development.
Discussions are expected to focus on improving the governance and performance of SEZs, mobilising investment in industrial infrastructure, and unlocking opportunities presented by the African Continental Free Trade Area (AfCFTA). – SAnews.gov.za
