President Cyril Ramaphosa has reaffirmed government's commitment to strengthening South Africa's Special Economic Zones (SEZs), describing them as key drivers of industrialisation, investment and job creation as the country works to grow a more competitive and inclusive economy.
Delivering the keynote address virtually at the 2nd International Special Economic Zones Conference Presidential Gala Dinner and Awards Ceremony on Thursday evening, the President said the gathering celebrated South Africa's industrial potential and the role of SEZs in transforming the economy.
“Tonight, we gather not only to celebrate excellence, but to celebrate possibility. We celebrate the possibility of a South Africa that manufactures more, exports more, innovates more and creates far greater opportunities for its people.
“We celebrate the men and women who are transforming ideas into industries, investments into factories, and factories into jobs,” the President said.
President Ramaphosa said the awards recognised more than outstanding performance, but reaffirmed the country's belief that industrialisation remained one of the most effective tools to tackle poverty, unemployment and inequality.
“Special Economic Zones are not simply designated industrial sites. They are engines of economic transformation.
“They are places where policy is translated into production, where investment becomes enterprise, where innovation becomes competitiveness, and where hope becomes opportunity,” he said.
The President said investment remained central to South Africa's economic programme, noting that the country secured a record R890 billion in investment commitments at the Sixth South Africa Investment Conference held just over three months ago.
He said the commitments spanned strategic sectors including mining and mineral beneficiation, automotive manufacturing, agro-processing, tourism, renewable energy, digital technologies and the green economy.
“Much of this investment will find its home within our Special Economic Zones. In the automotive sector alone, approximately R12 billion of planned investment is destined for our SEZ programme,” the President said.
President Ramaphosa cited the Tshwane Automotive Special Economic Zone as an example of successful collaboration between government and business.
“The investment by Ford and its component manufacturers has already created more than 3,000 permanent jobs while strengthening South Africa's position as a globally competitive automotive manufacturing hub,” the President said.
He said South Africa's SEZ programme had become one of the cornerstones of the country's national investment strategy by providing modern infrastructure, efficient logistics and one-stop investor support that reduce the cost of doing business and improve investor confidence.
The President also highlighted government's recently adopted Industrial Development Strategy, which he said responds directly to the country's structural challenges of low growth, de-industrialisation and unemployment.
“It is built upon three strategic pillars: Decarbonising our industries, diversifying our export markets, and accelerating digital industrialisation,” he said.
He added that the new Spatial Industrial Development Strategy introduced a strengthened SEZ model aimed at ensuring industrial development generated greater benefits for surrounding communities, supported local enterprise development and advanced inclusive regional growth.
The President said independent assessments showed the programme was already delivering results.
“A recent World Bank assessment found that South Africa's Special Economic Zones have attracted more than R34 billion in investment, created over 30,000 direct jobs, and generated more than R14 billion in revenue for the fiscus,” he said.
He said government would carefully consider the World Bank's recommendations, including enhanced investment incentives and the introduction of privately owned Special Economic Zones, as it continued strengthening the programme.
Looking ahead, the President said SEZs would play an increasingly important role in advanced manufacturing, electric mobility, renewable energy technologies, green hydrogen, battery manufacturing, digital industries, pharmaceuticals, agro-processing and mineral beneficiation.
“They will enable us not merely to export raw materials, but increasingly to export higher-value manufactured products.
“They will help position South Africa as a leading industrial economy on the African continent,” the President said.
President Ramaphosa said government was also working to improve the country's investment climate by reducing regulatory burdens, accelerating approvals for permits and licences, strengthening customs systems, restoring energy security and improving freight logistics, ports and rail infrastructure.
“These reforms are making South Africa an increasingly attractive destination for productive investment,” he said.
The President stressed that the success of Special Economic Zones should benefit the broader economy by creating opportunities for small businesses, supporting localisation, developing skilled workers and empowering women and young entrepreneurs.
“Our Special Economic Zones should not be islands of prosperity. Their success must benefit the broader economy,” the President said.
He also welcomed delegates from across Africa, saying the African Continental Free Trade Area presented a once-in-a-generation opportunity to strengthen regional value chains and intra-African trade.
Concluding his address, President Ramaphosa congratulated the award recipients and called on all stakeholders to continue building globally competitive industrial zones.
“Let us therefore continue building Special Economic Zones that compete with the very best in the world. Let us continue attracting investment that changes lives.
“Let us continue building industries that create lasting prosperity. And let us continue working together to build a South Africa that is more industrialised, more competitive, more inclusive and more prosperous for generations to come,” the President said. – SAnews.gov.za
