SPECIAL ECONOMIC ZONES
SPECIAL ECONOMIC ZONES industry-specific precincts and will be developed in phases over a 10- to 15-year period. COEGA SEZ (EASTERN CAPE) TARGET SECTORS • Automotive • Renewable energy • Agro-processing • Aquaculture • Chemical engineering • Pharmaceutical • Copper and steel • Business Process Outsourcing The BAIC automotive plant at Coega SEZ is one of the biggest investments into South Africa in recent years. The Coega SEZ is located in the Nelson Mandela Bay Metropolitan Municipality. Developed and managed by the Coega Development Corporation (CDC), this multi-billion-rand project aims to drive local and foreign investments in export-oriented industries, positioning South Africa as the hub of Southern African trade. The SEZ was deliberately established near the Port of Ngqura, a deepwater port that provides a conduit for value-added products to the world and African continent. One of the most consequential investments for this SEZ is that of Chinese automotive manufacturer Beijing International Automotive Corporation (BAIC). The total investment by BAIC was R11-billion and significantly added to the province’s already strong reputation for excellence in the automotive sector. The Eastern Cape Provincial Government has identified agriculture as an economic growth sector with large-scale investment potential which could contribute significantly to economic diversification and job creation. The CDC has also planned for the development of a R2-billion aqua-farming facility, which will focus on the commercial cultivation of marine animals and plants. Over a century of expertise in mining has made South Africa the world’s leading producer of a range of minerals and metals. Coega SEZ with its strategic logistics linkages provides an ideal platform to beneficiate these metal resources. The CDC and various organs have conducted extensive preliminary work to advance the readiness of Coega to locate a gas-to-power project. The project entails the generation of over 2 500MW of electricity and the value to the regional economy of the project is approximately R25-billion. Coega is home to the Dedisa substation, which is vital infrastructure for injecting large amounts of power into the grid. RICHARDS BAY IDZ (KWAZULU-NATAL) Richards Bay Industrial Development Zone (RBIDZ) is owned solely by the KwaZulu-Natal government, reporting to the Department of Economic Development, Tourism and Environmental Affairs through an accounting authority that is appointed by the MEC. The international seaport of Richards Bay is tailored for manufacturing and storage of minerals and products to boost beneficiation, investment, economic growth and the development of skills and employment. First-world infrastructure allows for the full exploitation of the area’s natural and strategic advantages. Through the excellent industrial infrastructure, the well-established network of shipments, tax and duty-free incentives, RBIDZ aims to encourage international competitiveness and the attraction of export-orientated manufacturing investment. The government’s strategic support programme called Operation Phakisa has set a target to grow the Ocean Economy’s GDP contribution to R177-billion by 2033. South Africa has eight major ports including two of the world’s top container ports and two of the world’s biggest dry bulk ports. The Port of Richards Bay is one of the most strategic anchorages for the country’s economic growth. South Africa is perfectly located to serve all major oil fields in West and East Africa. Five of the country’s major ports provide world-class oil rig and drillship repair, refurbishment and maintenance services at highly competitive rates. Aquaculture presents an attractive opportunity to reduce import dependency and to ensure a sustainable supply of fish and seafood products to South African consumers. The farming of freshwater species is concentrated in Limpopo, the Mpumalanga Lowveld and Northern KwaZulu-Natal. RBIDZ has been earmarked as one of the aquaculture development zones. Agricultural production is most dominant in KwaZulu-Natal and includes sugar cane, fresh produce, field crop and livestock production as well as forest plantations. RBIDZ is seeking investors to set up techno parks so that South Africans can benefit from new ideas and technologies. The deepwater Port of Richards Bay is a vital part of South Africa's logistics and mining sectors. Credit: TNPA 28 | www.opportunityonline.co.za
SPECIAL ECONOMIC ZONES Techno parks provide valuable insights and intellectual resources from which the other sectors situated in RBIDZ can benefit immensely. There are exciting investment opportunities that lie within the RBIDZ renewable energy sector. SALDANHA BAY IDZ (WESTERN CAPE) The Saldanha Bay Industrial Development Zone SOC Ltd (SBIDZ) is the first SEZ to be located within a port and is the only sector-specific SEZ in South Africa catering to the energy and maritime industries. Its location at the southernmost tip of Africa, in the largest and deepest (23m draught) natural port in the southern hemisphere, means that it is the perfect place to accommodate and service a wide range of vessels. It is ideally situated to service East and West African sea traffic, providing a linkage point for both African and international markets. It is envisioned that this IDZ will serve as the primary oil, gas and marine repair engineering and logistics services complex in Africa, servicing the needs of the upstream oil exploration industry and production service companies operating in the oil and gas fields off Sub-Saharan Africa. EAST LONDON IDZ (EASTERN CAPE) The ELIDZ is a state-owned corporation which aims to develop, operate and maintain modern infrastructure and to attract strategic investments for the region. The ELIDZ is owned by the provincial government, the Department of Economic Development Environmental Affairs and Tourism, and the Buffalo City Metropolitan Municipality. It is funded by the dtic and the Department of Economic Development Environmental Affairs and Tourism. The zone has become a prime industrial park in South Africa, renowned for its customised solutions for various industries including automotive, agro-processing and aquaculture. The ELIDZ is one of the first IDZs in South Africa to be operational and represents an ideal choice for the location of exported manufacturing and processing. Its location provides investors with connections to major markets, locally and across the globe. DUBE TRADEPORT SEZ (KWAZULU-NATAL) Designed to enhance the country’s manufacturing and export capabilities and attract foreign direct investment, Dube TradePort SEZ (DTP SEZ) has grown to become one of the top 10 investment opportunities in South Africa. As a long-term freight and passenger logistics hub, DTP SEZ, located 30km north of Durban, is rapidly emerging as a key global supply link and trade centre for KwaZulu-Natal. Strategically located in a precinct surrounding King Shaka International Airport, the district includes: • Dube TradeZone: fully-serviced industrial precinct. • Dube Cargo Terminal: cargo-handling depot. • Dube AgriZone: advanced agricultural area with facilities for propagating, growing, packing and distributing high-value perishables and horticultural products. • Dube City: 12ha business and hospitality division. • Dube iConnect: telecommunications platform and cloud service provider. ATLANTIS SEZ (WESTERN CAPE) The Atlantis SEZ (ASEZ) is part of the City of Cape Town’s initiative taken in 2011 to establish a GreenTech manufacturing hub in Atlantis, in response to the Department of Energy’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). Localisation of manufacturing and the resultant job creation is one of the key priorities of government through the REIPPPP. Situated on the West Coast, 40km from Cape Town, ASEZ capitalises on the province’s already booming renewable energy and green technology sector (wind turbines, solar panels, insulation, biofuels, electric vehicles, recycling and green building materials). NKOMAZI SEZ (MPUMULANGA) Nkomazi SEZ is in the eastern part of Ehlanzeni District Municipality of Mpumalanga. It has been formalised to provide a competitive and efficient industrial cluster that positions itself as the leading location for agro-processing and logistics service activities within South Africa, in response to investor demand. An abundance of citrus and many other subtropical fruits as well as nuts and a variety of vegetables are produced in Mpumalanga. The region is also home to the largest stock of beef cattle in South Africa and is responsible for 22% of South Africa’s beef production. Sappi's Ngodwana plant, close to Nelspruit, is a fully integrated Kraft mill producing pulp for its own consumption as well as newsprint and container www.opportunityonline.co.za | 29
