South Africa’s Special Economic Zones (SEZ) programme is attracting billions in foreign direct investment, says Trade and Industry Minister Rob Davies.
There are eight designated zones in the country: Saldanha Bay in the Western Cape, Dube Trade Port and Richards Bay in KwaZulu-Natal, East London and Coega in the Eastern Cape, the soon-to-be launched Maluti-a-Phofung in the Free State, as well as recently added Musina in Limpopo.
“The Musina-Makhado SEZ is the first zone under the new SEZ Act. It will be established in the Vhembe region in Limpopo and will focus on energy and metallurgical, agro-processing, petro-chemical, and trade and logistics,” said the Minister.The new zone has so far attracted investment interest from Chinese consortia totalling an estimated R56.9 billion.
“There has been a substantial increase in the number and value of secured but not yet operational investments. The total number increased from 47 to 72, while total value increased to R41.2 billion. At least 13 of these investments are expected to be operational within the next 12 months, as soon as infrastructure development is completed,” said Minister Davies.
The Special Economic Zones Act has been operational as of 9 February 2016, and the work of the SEZ Advisory Board has since started. The board is responsible for advising the Minister on policy and strategy issues as well as evaluation of the new applications for the designation.
The SEZ programme is one of the critical instruments that the Department of Trade and Industry is using to accelerate industrialisation in the country. The programme, which has entered a full implementation phase, is important for attracting foreign direct investments (FDIs), creating jobs, establishing new industrial centres, as well as developing and improving the existing infrastructure.
