No effort spared to grow economy

AS THE PROVINCE battles the effects of the Covid-19 pandemic, Premier Sihle Zikalala has vowed to spare no effort in the struggle to grow the economy and ensure job creation.

Delivering the latest State of the Province address recently, Zikalala said the key pillar of KwaZulu-Natal’s Economic Reconstruction and Recovery Plan was centred on enhancing its industrial base. In the year, the province plans to focus on fast-tracking the implementation of the Special Economic Zone’s (SEZs) project pipeline; incubate Clothing and Textile SEZs and other industrial hubs including the Leather Industry Hub, support localisation of value chains, revive Industrial Estates and create linkages with private estates to increase investment propensity; and advocate for Trade Policy change to support localisation. Government also committed to buying locally manufactured products. Zikalala said the province would also avail land for Industrial Development in all municipalities and look to fast-track regulatory approvals by reducing turnaround times.

The two special economic zones – Dube Trade Port and Richards Bay IDZ - have become levers for industrialisation within the province. Dube Trade Port will be implementing an expansive Strategic Plan over the next five years focused on its core SEZ mandate to drive localization of manufacturing within its own zones, as well as fast track the development of the Durban Aerotropolis and the Automotive Supplier Park in the South of Durban.

The Durban Aerotropolis Master Plan has also begun to stimulate private sector investment into the broader Aerotropolis Region. Cedarpoint Trading has begun construction of the Whetstone

Business Park on the R102 adjacent to Dube TradePort. Phase 1 which has an investment value of R2 billion and is 33 hectares of industrial land. The park will be built in three phases over a total of 70 hectares.

In the south of Durban, Dube TradePort has been working hard on unlocking an Automotive Supplier Park to support the localisation of automotive suppliers to create 3 000 direct jobs. Recently, an initiative was undertaken with Transnet to fast-track the first phase of the project in order to meet the requirements of Toyota within their planned production programme. A portion of the old Durban International Airport site is currently being technically evaluated to be utilised as a Phase 1 A location for the first wave of approximately R1,5 billion of investment.

“This initiative will ensure that KZN maintains its competitive position within the automotive industry. The first phase will then be followed by the larger development of the Illovo site for a wide range of industries,” Zikalala said. The construction of the R 1,3 billion edible oils plant by Wilmar has started at the Richards Bay IDZ. The project is expected to inject much needed jobs in the King Cetshwayo District. The plant is expected to be completed in 2022. Zikalala reported that the RBIDZ has also appointed the contractor for Phase 1 of the R 4,5 billion Titanium Dioxide plan and construction will commence in January 2022.

“This year alone RBIDZ will also launch two investor projects expected to commence construction in the 2nd and 3rd quarter of the year 2021. These will be a plant manufacturing architectural and industrial paints and an establishment of caustic soda/ chlorine chemical production plant. These have a collective value of over R 1,1 billion,” Zikalala announced. According to Zikalala, the province has also achieved two major milestones in its plan to establish a fully-fledged Clothing and Textile Special Economic Zone. The development of a business case for the SEZ has been completed and the province has secured a suitable industrial land at Ezakheni to host it. The province has also nominated Dube Trade Port to be its operator and successfully attracted investment worth R780 million from companies interested to locate within the SEZ.

To avoid one district benefitting from the SEZ, Zikalala announced the Clothing and Textile Corridor Approach “The Textile Belt”. This belt will start from Newcastle and link Ladysmith, Mooi River, Pietermaritzburg, Hammarsdale, Durban, Isithebe, Dube Trade Port to Richards Bay Industrial Development Zone (RBIDZ).

“These investment projects will produce a total of 3 435 permanent jobs. Beside these, through the SEZ we are working on the investments pipeline of R22 billion,” Zikalala said.