SeconomySA’s Special
SeconomySA’s Special Economic ZonesSpecial Economic Zones are geographically designated areas of a country set aside for specifically targeted economicactivities, supported through unique arrangements, including laws and systems, that are different from those that apply inthe rest of the country.Atlantis.Coega.Special Economic Zones (SEZs) are growth engines towardsgovernment’s strategic objectives of industrialisation, regionaldevelopment and employment creation. SEZs may be sector-specificor multi-product.ATLANTISSituated on the West Coast, 40km from Cape Town, the Atlantis SEZ(ASEZ) capitalises on the province’s already booming renewableenergy and green technology sector. Wind turbines, solar panels,insulation, biofuels, electric vehicles, materials recycling and greenbuilding materials are all examples of green technology. The hub hasattracted wind tower manufacturer, Gestamp Renewable Industries,which has invested over R300-million and is in full-scale production.www.atlantissez.comNKOMAZISituated in the Nkomazi Local Municipality in the eastern part ofEhlanzeni District Municipality and approximately 65km of thecentral business district of Nelspruit in Mpumalanga, its geographiclocation is Nkomazi’s competitive advantage. The Nkomazi area isstrategically linked to Swaziland by two national roads (R570 andR571) and with Mozambique by railway line and the national road(N4) which together form the Maputo Corridor.www.nkomazisez.co.zaCOEGAThis IDZ was designated in 2001 and became South Africa’s firstIDZ. It strategically located on the east-west trade route in the NelsonMandela Bay Metropolitan Municipality, Eastern Cape, to serviceboth regional and global markets. The Coega IDZ leverages publicsector investment to attract foreign and domestic direct investmentin the manufacturing sector with an export orientation and hasattracted investment in the agro-processing, automotive, aquaculture,energy, metals logistics and business process services sectors. This hasadvanced socio-economic development in the region through skillsdevelopment, technology transfer and job creation.www.coega.co.zaCOEGA ANNOUNCES INVESTMENT DECLARATIONCoega announced a major boost for South Africa’s automotivesector with a R200-million investment declaration by FAW TrucksSA. This new investment comes a decade after FAW SA firstestablished its R600-million assembly plant in Zone 2 of theCoega SEZ. Notably, FAW SA recently celebrated 30 successfulyears in the South African market, having established itself as aleader in the automotive sector and one of the largest investorsfrom China in South Africa.SEZ INCOME SURGES TO R18.9-BILLION IN 2023Investors made R18.9-billion last year, according to Stats SA’sCoega SEZ Survey 2023. The survey was handed over to CoegaDevelopment Corporation, which manages the SEZ, by Stats SAdeputy director-general for statistical operations and provincialcoordination, Ashwell Jenneker.According to the survey data, the Coega SEZ, recognised asthe largest industrial zone in Southern Africa, exhibited a notablesurge in its capital expenditure on new assets in 2023. The totalcapital expenditure on new assets in 2023 was R558-millioncompared to R34-million the previous year. This surge translatesto an impressive, annualised growth rate of 27%, underscoringthe zone’s commitment to infrastructure development.The IDZ demonstrated tangible impact on transformativesocio-economic indicators. In 2023, female representation in theworkforce stood at 38.4%, indicating significant strides towardsgender inclusivity. Notably, the “non-manufacturing” sectorboasted the highest proportion of female employees (51.6%).The youth played a substantial role in the SEZ’s employmentlandscape, constituting 42.7% of the workforce in 2023. The“non-manufacturing” sector emerged as the primary employer ofyoung individuals, showcasing its appeal for career entry. Thesestatistics underscore the IDZ’s commitment to fostering inclusiveemployment practices.Issued by Statistics South Africa38 | Service magazine
economySRICHARDS BAYThe Richards Bay IDZ (RBIDZ) is a purpose-built industrial estateon the north-eastern coast. The N2 business corridor links theprovince’s two major ports, Durban and Richards Bay, and connectswith Maputo, Mozambique and areas in East Africa. It is linked toRichard Bay’s international seaport tailored for manufacturing andstorage of minerals and products to boost beneficiation, investment,economic growth and employment development. Through firstworldindustrial infrastructure, a well-established network ofshipments as well as tax- and duty-free incentives, the IDZ attractsexport-orientated manufacturing investment.www.rbidz.co.zaMEC APPLAUDS MULTI-BILLION-RAND PROJECTAccording to Siboniso Duma, KZN MEC for Economic Development,Tourism and Environmental Affairs, the opening of the Wilmar PalmOil Refinery located in the RBIDZ marked an important milestonein government’s continued quest to ensure economic recovery. TheWilmar project has created more than 1 373 construction jobs, with202 to be created upon completion. R1.27-billion has been spentso far.MEC Duma added that the government had been equallyencouraged by how Wilmar had actively engaged local SMMEsand ensured that the local communities also benefitted from theproject through the RBIDZ Nal’ithemba Enterprise DevelopmentProgramme. In addition, eight local enterprises in sectors such asagro-processing, chemicals and logistics have been integratedinto Wilmar’s supply chain. This engagement encourages localenterprise development and industrial diversification.The Wilmar management’s commitment to source at least20% of its raw materials locally means that local emergingfarmers will be expected to produce 30 000 tons of sunflowerseeds per year. “We are creating opportunities for women, youthand people with disabilities here in King Cetshwayo District. Thisgoes to the heart of pushing for economic transformation andensuring that all the province’s citizens are active players in theKZN economy,” concluded MEC Duma.ENERGY HUBS SET TO TAKE OFFWith a clear-cut focus on positioning KwaZulu-Natal (KZN) as theleading hydrogen ecosystem hub, the RBIDZ is earmarked as thehub that will supply natural gas via the Secunda-Durban natural gaspipeline up inland and down to eThekwini, to increase the capacityof the pipeline.According to RBIDZ COO, “In Richards Bay, we have asite earmarked for 3 000MW of gas-to-power that has anenvironmental authorisation. We are currently waiting for a Section34 Determination to allow a R73-billion project to get off the ground,for us to produce at least 3 000MW of power to stabilise KZN’senergy system.” KZN won’t produce green hydrogen energy dueto its lack of renewable energy projects. However, it is identifiedas an exporter as the IDZ has ports to export hydrogen tointernational markets. “The strategic location of KZN allows us tohave inter-linkages with SADC and have leverage on the existinginfrastructure, as we already have gas pipes connecting fromSecunda to Richards Bay and eThekwini.”eThekwini Mayor, Mxolisi Kaunda, added that the city aims tobe the hydrogen economic capital of South Africa, supported bythe successful implementation of the city’s Hydrogen Strategyand Natural Gas Strategy.EAST LONDONThe East London IDZ (ELIDZ) is a leading specialised industrialpark in Buffalo City, the municipal area that incorporates Bisho,the province’s capital and King William’s Town. It is one of thefirst operational IDZs and is an ideal location for exportedmanufacturing and processing. Established in 2003, it isrenowned for its customised solutions in the automotive, agroprocessingand aquaculture sector. The ELIDZ offers access tonew markets and strategic industry networks.ELIDZ NAMED LEADING ECO-PARK IN THE WORLDThe ELIDZ has been named the leading eco-park in the world.The esteemed recognition, awarded by the United NationsIndustrial Development Organization’s (UNIDO) Global Eco-Industrial Park Programme (GEIPP), highlights the ELIDZ’sunparalleled commitment to protecting the environment. TheELIDZ, which is considered a model for eco-industrial parksworldwide, is the epitome of green innovation. The ELIDZ is agreenfield development transforming over 400 hectares of primeland into a world-class industrial location that attracts globallycompetitive manufacturers.FREEPORT SALDANHAFreeport Saldanha is the first SEZ located within a port and isthe only sector-specific SEZ in South Africa catering specificallyto the oil and gas, maritime fabrication and repair industriesand related support services.Positioned at the southernmost tip of Africa, in the largestand deepest (23m draught) natural port in the southernhemisphere means that Freeport Saldanha is the perfect placeto accommodate and service a wide range of vessels. It is ideallysituated to service East and West African sea traffic, providing alinkage point for both African and international markets.www.freeportsaldanha.comDUBE TRADEPORTLocated 30km north of Durban between the two biggestseaports in Southern Africa, Dube TradePort is made up of theTradeZone and AgriZone and is linked to the rest of Africa byroad and rail.Dube TradeZone focuses on manufacturing and value-additionfor automotives, electronics and fashion garments.Dube AgriZone, a high-tech, future-farming facility and host tothe continent’s largest climate-controlled growing area, focuseson niche agricultural and horticultural products.www.dubetradeport.co.zaDube TradePort.
