Ramaphosa backs SEZs to drive jobs and industrial growth

The President highlighted the Tshwane Automotive Special Economic Zone as a successful example of government and private sector collaboration.

President Cyril Ramaphosa has reaffirmed South Africa's commitment to expanding Special Economic Zones (SEZs), describing them as powerful engines of industrial growth that can attract investment, create jobs and strengthen the country's position in global manufacturing.

Speaking virtually at the 2nd International Special Economic Zones Conference Presidential Gala Dinner and Awards Ceremony, the President said the country's industrial future depends on turning investment into productive industries that generate lasting economic opportunities. He said the event celebrated not only the achievements of businesses and investors but also South Africa's potential to manufacture more products, increase exports and build a stronger economy.

SEZs remain central to investment strategy

Ramaphosa said Special Economic Zones have become a cornerstone of South Africa's national investment strategy by offering modern infrastructure, efficient logistics and streamlined support services that make it easier for businesses to establish and expand operations.

He noted that South Africa secured a record R890 billion in investment commitments during the Sixth South Africa Investment Conference held just over three months ago. The investments span industries including mining and mineral beneficiation, automotive manufacturing, agro-processing, tourism, renewable energy, digital technologies and the green economy. A significant share of these projects is expected to be developed within Special Economic Zones.

The President highlighted the Tshwane Automotive Special Economic Zone as a successful example of government and private sector collaboration. Investment by Ford and its component manufacturers has already created more than 3,000 permanent jobs while strengthening South Africa's role as a competitive automotive manufacturing hub.

Industrial strategy focuses on future industries

According to Ramaphosa, the recently adopted Industrial Development Strategy has been designed to address slow economic growth, de-industrialisation and unemployment through three priorities: decarbonising industry, expanding export markets and accelerating digital industrialisation. He said the new Spatial Industrial Development Strategy also introduces a stronger SEZ model that places greater emphasis on supporting surrounding communities, encouraging local enterprise development and promoting inclusive regional growth.

Independent assessments show the programme is already producing results. The President cited a World Bank assessment which found that South Africa's Special Economic Zones have attracted more than R34 billion in investment, created over 30,000 direct jobs and generated more than R14 billion in revenue for the national fiscus. Government will also consider recommendations to strengthen the programme further, including enhanced investment incentives and the possible introduction of privately owned Special Economic Zones.

Broader economic benefits remain the goal

Looking ahead, Ramaphosa said SEZs are expected to play an increasingly important role in advanced manufacturing, electric mobility, renewable energy technologies, green hydrogen, battery manufacturing, pharmaceuticals, digital industries, agro-processing and mineral beneficiation. Expanding these sectors would allow South Africa to export more high-value manufactured products instead of relying mainly on raw material exports.

The President added that government is working to improve the country's investment climate by reducing regulatory hurdles, speeding up permit approvals, strengthening customs systems, restoring energy security and improving freight logistics, ports and rail infrastructure.

He stressed that the success of Special Economic Zones should extend beyond industrial parks by creating opportunities for small businesses, supporting localisation, developing skilled workers and empowering women and young entrepreneurs. Welcoming delegates from across Africa, Ramaphosa said the African Continental Free Trade Area offers a major opportunity to strengthen regional value chains and expand trade across the continent. He called on government, investors and industry partners to continue building globally competitive industrial zones that contribute to a more inclusive and prosperous South African economy.