The industrial development and special economic zones created by the Department of Trade and Industry were gathering momentum‚ with an estimated R9.5-billion invested by private investors in the four zones, including East London.
Officials from the department said a further secured‚ but not yet operational investment of R19.7-billion would be made in the zones at Coega‚ East London‚ Richards Bay and the Dube TradePort. These zones have created 9976 direct jobs as well as 65384 temporary and indirect jobs.
The department’s director-general‚ Lionel October‚ and chief director Alfred Tau told parliament’s trade and industry portfolio committee that there was a multibillion-rand investment pipeline in the proposed special economic zones in Musina and Richards Bay.
Musina in Limpopo was expected to become the biggest zone‚ as it would be a springboard for exports into the rest of Africa.
Challenges faced by these zones included the shortage of capacity and resources to develop infrastructure necessary to unlock investments.
Tau noted that the lack of land was becoming a major constraint in all regions.
October stressed the importance of close collaboration between the three spheres of government if the zones were to succeed.
National government provided the overall policy framework and paid for the infrastructure‚ provincial governments carried operational costs and municipalities often owned the land.
The zones were not selected by the Department of Trade and Industry‚ but by provincial governments.
“The new special economic zone policy and incentives package have significantly improved the attractiveness of special economic zones‚” October said.
Zones offer investors a corporate tax rate of 15%‚ incentives‚ infrastructure and freedom from customs duty and VAT.
The Department of Trade and Industry’s InvestSA agency – a one-stop shop providing a range of services including work permits‚ tax certificates and incentives – would be established in each of the zones.
October emphasised‚ however‚ that the zones were long-term projects‚ with the first few years spent on building infrastructure. Training was a crucial element of the offering within the zones.
Other zones that had been designated‚ but were not yet operational, were those at OR Tambo International Airport‚ Maluti-a-Phofung and Saldanha Bay.
Applications had been made for Atlantis‚ Bojanala and Musina/Makhado. The feasibility study for the Atlantis zone had been completed and was under evaluation by the department.
The special economic zones policy emerged from a review of industrial zones that were confined to ports.
Trade and Industry Minister Rob Davies believed a new programme was needed to achieve diversification and decentralisation of industry away from the country’s heavily concentrated economic zones.
Tau said the policy had not yet been implemented fully and would be improved as it unfolded.
Economic Freedom Fighters MP Floyd Shivambu questioned the high cost of the jobs created. Insufficient jobs were being created‚ he said. — BDLive
IDZs receive a R29.2bn boost
Officials from the department said a further secured‚ but not yet operational investment of R19.7-billion would be made in the zones at Coega‚ East London‚ Richards Bay and the Dube TradePort. These zones have created 9976 direct jobs as well as 65384 temporary and indirect jobs.
The department’s director-general‚ Lionel October‚ and chief director Alfred Tau told parliament’s trade and industry portfolio committee that there was a multibillion-rand investment pipeline in the proposed special economic zones in Musina and Richards Bay.
Musina in Limpopo was expected to become the biggest zone‚ as it would be a springboard for exports into the rest of Africa.
Challenges faced by these zones included the shortage of capacity and resources to develop infrastructure necessary to unlock investments.
Tau noted that the lack of land was becoming a major constraint in all regions.
October stressed the importance of close collaboration between the three spheres of government if the zones were to succeed.
National government provided the overall policy framework and paid for the infrastructure‚ provincial governments carried operational costs and municipalities often owned the land.
The zones were not selected by the Department of Trade and Industry‚ but by provincial governments.
“The new special economic zone policy and incentives package have significantly improved the attractiveness of special economic zones‚” October said.
Zones offer investors a corporate tax rate of 15%‚ incentives‚ infrastructure and freedom from customs duty and VAT.
The Department of Trade and Industry’s InvestSA agency – a one-stop shop providing a range of services including work permits‚ tax certificates and incentives – would be established in each of the zones.
October emphasised‚ however‚ that the zones were long-term projects‚ with the first few years spent on building infrastructure. Training was a crucial element of the offering within the zones.
Other zones that had been designated‚ but were not yet operational, were those at OR Tambo International Airport‚ Maluti-a-Phofung and Saldanha Bay.
Applications had been made for Atlantis‚ Bojanala and Musina/Makhado. The feasibility study for the Atlantis zone had been completed and was under evaluation by the department.
The special economic zones policy emerged from a review of industrial zones that were confined to ports.
Trade and Industry Minister Rob Davies believed a new programme was needed to achieve diversification and decentralisation of industry away from the country’s heavily concentrated economic zones.
Tau said the policy had not yet been implemented fully and would be improved as it unfolded.
Economic Freedom Fighters MP Floyd Shivambu questioned the high cost of the jobs created. Insufficient jobs were being created‚ he said. — BDLive
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