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spmk700 was formulated and adopted in view of Africa’s inefficacy to industrialize. This policy intends to ‘build resilient infrastructure, promote sustainable industrialization and foster innovation’. Industrial improvement is recognised as one of many nation’s high priorities, therefore various emerging opportunities abound for Africa to industrialize. To seize such opportunities, African governments are required to implement innovative approaches to industrial policy, considered one of which is an elevated focus on the function of Special Economic Zones (SEZs) and industrial parks as devices of industrial improvement.
Industrial Parks and SEZ’s are two of the spatial interventions identified by the South African authorities and are subsequently aligned with world approaches. Industrial spaces could be leveraged as catalysts for socio-economic improvement. All things thought-about, such spaces are recognised as enablers and are subsequently typically managed as such, and not for rent-seeking purposes. Moreover, industrial parks and SEZs effectively lend themselves as spaces for piloting and experimentation of latest technologies and totally different approaches to industrial growth, in addition to for neighborhood and environmental programmes owing to the nexus between these three aspects.
Industrial parks and SEZs, in addition to related industrial spaces, have the potential to develop the financial system because owing to the alternatives for employment and establishing new companies and worth chains. This consequently develops the tax base and local financial activity which is critical in facilitating social improvement. The myriad of interventions established by way of industrial spaces support industrial and economic growth, the transition to good cities and transformation to a green financial system as properly as facilitate adoption of 4th Industrial Revolution solutions. What’s extra, such interventions provide a platform for widespread engagement of a number of stakeholders that helps win-win outcomes serving financial, social and environmental interests. Accordingly, industrial parks and SEZ’s have the propensity to offer elevated value, assuming the necessary planning and implementation is pursued proactively.
READ: Germany pledges US $116M for renewable energy in Africa
There are at present an estimated 4000 industrial zones globally (SEZ’s, EPZ, FTZ’s etcetera), evidently demonstrating the validity of such mechanisms. There is, nonetheless, debate as to the success of those zones and research has subsequently identified multiple success components, corresponding to governance, enabling regulatory frameworks, location and forms of services offered. Suffice it to say, it remains worthwhile to discover the training gained in executing such areas and the influence on supporting economic activities in a sustainable manner that help optimistic industrial, social and environmental outcomes.
The Special Economic Zones and Industrial Parks Programmes of the Department of Trade, Industry and Competition (the dtic) will play a critical role within the effectuation of South Africa’s economic reconstruction and restoration plan. This in the end stems from the SEZ Programme representing the core of the reimagined industrial technique, which is purposefully structured to stimulate native and foreign direct investments.
Notwithstanding the catastrophic impact of the COVID-19 pandemic on global economies, the worth of personal investments within the South African SEZs noticed a R1.8 billion improve from March 2019 to March 2020, whereas the variety of operational investments rose from 129 to 143 in the same time frame. It is projected that the number and worth of operational investments will increase by almost R10 billion when the following monetary yr ends.
Industrial Parks and Special Economic Zones represent a key feature within the convention of the upcoming and eagerly awaited Manufacturing Indaba. The digital conference and exhibition, to be hosted between 22 – 25 November 2021, is ready to assemble international trade consultants to handle technological improvements and evolving trends, whereas in search of actionable solutions to urgent challenges. The platform will empower thought leaders to exchange concepts, insights and experiences and serves to raise consciousness of emerging opportunities within the realm that is manufacturing.