South Africa's SEZs attract R14.8bn and create 30,000 jobs

Mashatile stressed that South Africa must compete globally by offering reliable infrastructure, strategic locations and an inclusive investment environment rather than relying on low costs alone.

South Africa's Special Economic Zones (SEZ) programme has attracted R14.8 billion in revenue and created more than 30,000 jobs, strengthening the country's industrial base and supporting sectors such as automotive manufacturing, agro-processing and renewable energy. Speaking at the Second International Special Economic Zones Conference in Durban, Deputy President Paul Mashatile said the programme has become a key driver of industrialisation and investment, citing findings from a World Bank study.

SEZ programme enters new phase of industrial growth

Mashatile said South Africa's industrial zone strategy has evolved significantly since the Industrial Development Zone programme was introduced in 1997 to attract investment, boost exports and develop world-class industrial hubs. He noted that the programme was expanded in 2012 through the Special Economic Zones Act, giving it a broader focus on industrialisation, job creation and inclusive economic development. The government is now preparing for a third phase under the Spatial Industrial Development Strategy, which aims to strengthen manufacturing and increase its contribution to the country's economy.

The Deputy President said manufacturing remains central to South Africa's economic recovery because it has strong multiplier effects that can create employment, particularly for young people and women.

Government targets manufacturing and innovation

To accelerate industrial growth, the government has identified three strategic priorities for future investment. These include decarbonisation, which promotes low-carbon technologies and climate resilience; diversification, aimed at expanding value-added manufacturing and export opportunities; and digitalisation, which focuses on integrating advanced digital technologies to improve productivity across industries.

Mashatile said successful projects such as the Tshwane Automotive Special Economic Zone (TASEZ) and the Coega Industrial Development Zone have demonstrated how SEZs can strengthen supply chains, develop skills and attract major investments.

He noted that by 2010, government had invested more than R3 billion in Coega, attracting 21 investments worth R9.2 billion and creating 2,837 operational jobs. At the same time, he acknowledged lessons learned, including concerns that some businesses had simply relocated from other parts of the country rather than creating entirely new economic activity.

SEZs seen as gateways to African markets

Mashatile stressed that South Africa must compete globally by offering reliable infrastructure, strategic locations and an inclusive investment environment rather than relying on low costs alone. He pointed out that more than 5,400 Special Economic Zones worldwide compete for investment, making it essential for South Africa to differentiate itself through quality infrastructure, policy certainty and regional connectivity.

The Deputy President said SEZs are helping unlock economic potential across every province by attracting investment, expanding industrial capacity and linking local businesses with regional and international markets. He added that the programme also strengthens South Africa's position as a gateway to the African continent while supporting the broader vision of a more integrated, industrialised and prosperous Africa.