Financial boost for Dube Tradezone
Dube Tradezone 2, a 45-hectare greenfield business park that is part of the special economic zone (SEZ) adjacent to the King Shaka International Airport was launched on Friday.
With R1.8 billion in private sector funding secured and seven deals signed, the total private investment in the Dube Tradeport now stands at R4.6 billion. The SEZ has created more than 5 000 permanent jobs, 600 more to come over the next five years.
Four investors have already begun construction in Tradezone 2.
MEC for the Department of Economic Development, Tourism and Environmental Affairs (EDTEA), Siboniso Duma visited two factories – a second R166 million plant for Chinese investor Yangtze Optical Africa Cable, which supplies cables for the local, Zambian, Namibian and Botswanan telecommunications markets, and a R17.5m development by HRMP, a 100% black, South African owned logistics company that specialises in the warehousing and distribution of graphite electrodes for steel mills processing scrap metal.
Dube Tradezone 2 brings to market fully serviced sites which range in size from 3 000m² to 57 000m². It will also include three Dube Tradeport-owned warehouses which will accommodate additional medium-sized businesses. This pushes total investment in the precinct over the R2bn mark.
Speaking at the launch, Dube Tradeport Corporation (DPTC) board chair, Mpumelelo Zikalala, said despite a constrained economic environment over the past two years, DTPC had secured seven private sector investors for Dube Tradezone 2 – with at least two more in the pipeline and seven more sites still available.
Dube Tradezone 2 will target investors in the manufacturing and assembly, logistics and automotive sectors while facilitating the planned expansion of phase one-based enterprises.
Duma praised politicians of yesteryear who had pushed through the construction of the new King Shaka International Airport despite pressure from naysayers who declared it not economically viable. Today, it is one of nine operational SEZS in South Africa and is the fastest-growing SEZ in terms of tenants in southern Africa.
Kwazulu-natal is home to two SEZS at Dube and Richards Bay, with the provincial government looking to add a third that will focus on the clothing and textile sector and will link Newcastle with Durban.
“As the government, we are focusing on SEZS for a good reason. They are designed to develop export-orientated industries, attract foreign direct investment and technology transfer and achieve the generation of employment opportunities. SEZS are an effective instrument to resolve the disturbing levels of inequality, poverty and unemployment which are marked by spatial, racial, class and gender factors.
“In addition to job creation, SEZS are broadening the municipal revenue collection base to improve the quality of life in the municipal areas, as well as the quality of municipal services,” he said.
The launch of the second phase of the Tradezone follows the successful implementation of Dube Tradezone 1, which is fully tenanted by 50 investors, including international companies such as Samsung, Mahindra, DHL, Chem Energy and Pepsico-futurelife. Exports from Tradezone 1 amounted to R610m last year.
Over the past 10 years, the 26hectare Tradezone 1 has attracted more than R2.8bn in private sector investment from enterprises focused on air-related logistics, distribution and light manufacturing. It has been strongly supported by property developers prepared to take the risks associated with a new enterprise. In contrast, Tradezone 2 is expected to be home to businesses who own rather than lease their properties.
As further new investors sign up for Tradezone 2, which is almost double the size of its predecessor, Durban will edge closer to realising the R1 trillion Durban Aerotropolis Master Plan that was officially launched in September 2019.