Coega leads the way
The Coega SEZ in the Eastern Cape, which is the largest in the sub-continent, is located in the Nelson Mandela Bay Metro, and was designated in 2001 to become the country’s first Industrial Development Zone (IDZ). It is located on the east-west trade route, to service both world and African markets.
The Coega IDZ leverages public-sector investment to attract foreign and domestic direct investment in the manufacturing sector, with an export orientation. The IDZ has attracted investment in the agro-processing, automotive, aquaculture, energy, metals logistics and business process services sectors. This has advanced socioeconomic development in the Eastern Cape through skills development, technology transfer and job creation.
In October 2020, the Coega Development Corporation (CDC) announced grand plans to create 900 employment opportunities through the Coega Aquaculture Development Zone (ADZ).
This was billed as a “catalyst project funded by the Department of Economic Development, Environmental Affairs & Tourism (DEDEAT) to the tune of R206-million through the Provincial Stimulus Fund”, according to the CDC.
Earlier this month the Richard’s Bay Special Economic Zone announced that the Mara Group had pledged a R1-billion investment in a smartphone factory at the Dube Tradeport.
The RBSEZ said this was the latest in a string of inward investments which include expenditure of more than R1.2-billion by Arçelik, the
Turkish owner of Defy, at the company’s three South African plants. Two of the plants, the RBSEZ said, are in Kwazulu-natal.
“The Special Economic Zones at Richards Bay and King Shaka International Airport (Dube Tradeport) are key components of the strategy of attracting investors to the province. Dube Tradeport attracted R7-billion between 2012 and 2019 and the same amount is expected to accompany the development of Phase 1A and Phase 1F of the Richards Bay Industrial Development Zone (RBIDZ).”
The RBIDZ said a further two investors in 2019 were edible oils manufacturer Wilmar Processing SA, which is investing more than R1-billion in a plant, and Elegant Afro Line, which will spend about R900-million on its chemicals plant.
“There are plans to establish a clothing and textiles SEZ in the province to build on the province’s established strength in the sector and an automotive supplier park will be in operation by 2021. Toyota and Bell Equipment play a big role in the automotive sector, while the Engen Oil Refinery is a strategic asset.”
In December the Musina Makhado SEZ in Limpopo announced that as a result of the development of the Medupi Power station in Lephalale, the MMSEZ will be used as a catalytic initiative to unlock various developmental opportunities in Musina and Makhado.
It said that given the magnitude of the MMSEZ, which is similar in size to the Medupi Power Plant, various socioeconomic infrastructure initiatives will be unlocked such as water, electricity, ICT, roads, rail, an airport, human settlement, health facilities, tourism facilities, and education and training. These will be of immense value to the province.
“Already the entity has completed an External Master Plan, outlining the required socio-economic infrastructure to support the MMSEZ. In the light of these multiple opportunities, the entity has commissioned a study for a ‘New Smart City Model’ to guide the envisaged spatial development path over a medium/longterm horizon.
“The development of the New Smart City will be guided by a coordinated investment in broadband infrastructure and the deployment of ICT capabilities as an enabler.”