Durban: Deputy President Paul Mashatile announced that South Africa's Special Economic Zones (SEZ) programme has successfully attracted R14.8 billion in revenue and created over 30,000 jobs across various sectors, including automotive manufacturing, agro-processing, and renewable energy.
According to South African Government News Agency, the SEZ programme has evolved from the Industrial Development Zone initiative, which was introduced by the government in 1997 to establish world-class industrial hubs. These hubs aim to attract investment, boost exports, and drive industrial growth, forming a foundation for a more competitive and diverse economy. Over time, the initiative has transformed into the SEZ programme with a broader focus on accelerating industrialisation, creating jobs, and promoting inclusive economic development in South Africa and across the African continent.
Speaking at the Second International Special Economic Zones Conference in Durban, Mashatile highlighted notable projects such as the Tshwane Automotive Special Economic Zone (TASEZ) and the Coega Industrial Development Zone in the Eastern Cape. These projects support skills development and enhance downstream supply chains. He noted that since Coega's designation in 2001, the government invested over R3 billion by 2010, attracting 21 investments valued at R9.2 billion and generating 2,837 operational jobs. However, some investments were not new but relocated due to challenges like weakened municipal service delivery, risking the zones becoming enclaves.
In response to these challenges, the government transitioned to Special Economic Zones in 2012 under the SEZ Act. The programme is now entering its third phase through the Spatial Industrial Development Strategy, aiming to increase the manufacturing sector's contribution to the GDP from its current 12%. Manufacturing is seen as having significant multiplier effects, potentially reducing socio-economic challenges such as unemployment, particularly among youth and women.
To drive manufacturing-led industrialisation, the government has identified key economic sectors: decarbonisation for low-carbon technologies and climate resilience; diversification to expand the manufacturing base for value-added goods and export markets; and digitalisation, which integrates productivity-enhancing digital technologies across industries.
Mashatile emphasized that the Special Economic Zones Programme is crucial for the re-industrialisation agenda. He mentioned the global competition of 5,400 SEZs for the same capital, stating that South Africa must be strategic, reliable, and inclusive to attract investment. He urged commitment to ensuring SEZs become engines of investment, innovation, and opportunity, serving as catalysts for inclusive growth that benefits every province and community.
He concluded by stating that SEZs are designed to foster conditions for investment, industrialisation, employment, and shared prosperity, supporting economic growth that improves people's lives. Across the nation, SEZs are unlocking regional potential, strengthening industrial capacity, and connecting local enterprises to regional and global markets. They strategically position South Africa as a gateway to the African continent, supporting the vision of an integrated, industrialised, and prosperous Africa.