If government declares the Vaal Triangle a special economic zone, it will not only attract investment back to the area, but also reignite the manufacturing industry, creating jobs and more prosperity.
Manufacturing Circle chairperson Andre de Ruyter said on Friday that this could be carried out “practically”, without special policies and “huge investment” by government.
He noted that the area was plagued by “massive unemployment”, reaching more than 40% in certain townships – “a dire number”.
However, he noted that the Vaal Triangle was an attractive area for investment, as it already had good infrastructure, including roads, rail, pipelines and water. It also has established social infrastructure, including hospitals, housing and education institutions up to tertiary level.
Also, most people living in the Vaal Triangle’s serving area already had training or worked in a manufacturing or constructionenvironment.
The Manufacturing Circle is engaging with a task team set up at the request of the National Treasury. The team is approaching a number of banks to find ways to stimulate economic growth in the region.
The Vaal Triangle is home to major existing manufacturers of raw materials, including ArcelorMittal South Africa, Safripol, Sasol and Omnia.
De Ruyter believed the local manufacturing industry could create one-million new jobs if manufacturing had an appropriate share of GDP considering the developmental stage at which South Africa is. This, he noted, would have to be between 28% and 32%.
