Deputy President Paul Mashatile says South Africa's Special Economic Zones (SEZ) programme has attracted R14.8 billion in revenue and created more than 30 000 jobs across sectors, including automotive manufacturing, agro-processing and renewable energy.
This is according to a World Bank study. Government introduced the Industrial Development Zone programme in 1997 to create world-class industrial hubs that would attract investment, boost exports and drive industrial growth.
"Recognising the power of strategic infrastructure and supportive policy, the programme laid the foundation for a more competitive and diversified economy.
"Over time, it has evolved into the Special Economic Zones programme, with a broader focus on accelerating industrialisation, creating jobs, and driving inclusive economic development in South Africa and across the African continent," the Deputy President said.
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Speaking at the Second International Special Economic Zones Conference in Durban on Friday, Mashatile said the programme has produced notable projects, including the Tshwane Automotive Special Economic Zone (TASEZ) and the Coega Industrial Development Zone in the Eastern Cape, which support skills development and downstream supply chains.
"We have learned valuable lessons since Coega was designated in 2001. By 2010, Government had invested more than R3 billion in Coega alone, attracting 21 investments valued at R9.2 billion and generating 2 837 operational jobs.
"However, some of these investments were not new, but had relocated from elsewhere due to weakened municipal service delivery and township integration, leading to zones risking becoming enclaves," Mashatile said.
In response, government shifted to Special Economic Zones in 2012 under the SEZ Act. The programme is now entering a third phase through the Spatial Industrial Development Strategy.
The strategy aims to increase the manufacturing sector's contribution to Gross Domestic Product (GDP) from 12%, with manufacturing seen as having significant multiplier effects that can help reduce socio-economic challenges such as unemployment, especially among youth and women.
To drive manufacturing-led industrialisation, the government has identified key economic sectors categorised into three areas:
- Decarbonisation, aimed at low-carbon technologies and climate resilience;
- Diversification, focused on expanding the manufacturing base for value-added goods and export markets; and
- Digitalisation, emphasising the integration of productivity-enhancing digital technologies across industries.
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Mashatile said the Special Economic Zones Programme is a key mechanism for the re-industrialisation agenda.
"We are building on an existing network of SEZs and Industrial Parks that have already established industrial foundations across every province of our country.
"We have 5 400 SEZs globally competing for the same capital. We cannot compete simply by being the cheapest. We compete by being the most strategic, the most reliable, and the most inclusive.
"As we leave Durban, let us renew our collective commitment to ensure that our Special Economic Zones become engines of investment, innovation and opportunity, not islands of prosperity, but catalysts for inclusive growth that will uplift every province and every community across our country," Mashatile said.
Mashatile said SEZs are intended to create conditions for investment, industrialisation, employment and shared prosperity, while supporting economic growth that improves people's lives.
"This task extends beyond any single province. Across our nation, from KwaZulu-Natal to Limpopo, from the Eastern Cape to the Northern Cape, SEZs are unlocking regional potential, strengthening industrial capacity, and connecting local enterprises to regional and global markets.
"They are also strategically positioning South Africa as a gateway to the African continent and supporting the broader vision of an integrated, industrialised and prosperous Africa," the Deputy President said. -SAnews.gov.za
