South Africa’s Special Economic Zones (SEZs) have attracted over US$1.2 billion in investment, Trade and Industry Minister Rob Davies said on Thursday.
According to the minister, the total number of operational investors in 10 designated SEZs has now reached 115, with a private investment value of over US$1.2 billion.
“Since the introduction of the new SEZ legislation in 2014, the number of designated zones has increased, the investor confidence has improved, the number of operational investments has increased and continue to increase,” Davies said at a two-day first National Special Economic Zones Investment Conference which ends Thursday in Durban.
The minister said the companies have created 15,716 direct jobs in the zones.
He cited the example of the Dube TradePort Special Economic Zone, located 30 kilometres north of Durban, which has managed to attract 35 operational investors with an investment value of US$107 million, creating a total of 3,246 direct jobs, the minister said.
In the 2017/18 financial year, some 429 new direct jobs and 974 construction jobs were created, and as of 18 March 2019, some184 new direct jobs and a total of 2,020 construction jobs have been created, he added.
According to Davies, Coega SEZ has become a best practice model for all SEZs in South Africa and across the continent, and it remains the biggest SEZ in terms of number and value of investment on the African continent.
“In 2012 the Coega Special Economic Zone (in the Nelson Mandela Bay Municipality) had 19 investors with a total private sector investment value of US$80 million, creating 3,778 jobs.
As at April 2019, the Coega SEZ has grown to 43 operational investors worth over US$700 million worth of private investment.
“As a result, it has doubled its direct employment creation to 8,210 jobs and 19,402 jobs that included construction jobs since its inception,” Davies said.
NM/jn/APA