The Role of SEZs and Industrial Parks in the Manufacturing Industry

Sustainable Development Goal 9 was formulated and adopted in view of Africa’s inefficacy to industrialize. This coverage intends to ‘build resilient infrastructure, promote sustainable industrialization and foster innovation’. Industrial development is recognised as one of the nation’s high priorities, due to this fact varied emerging opportunities abound for Africa to industrialize. To seize such opportunities, African governments are required to implement progressive approaches to industrial policy, certainly one of which is an elevated concentrate on the role of Special Economic Zones (SEZs) and industrial parks as devices of commercial development.
Industrial Parks and SEZ’s are two of the spatial interventions identified by the South African authorities and are subsequently aligned with world approaches. While they last can be leveraged as catalysts for socio-economic growth. All issues thought of, such areas are recognised as enablers and are subsequently usually managed as such, and never for rent-seeking purposes. Moreover, industrial parks and SEZs effectively lend themselves as spaces for piloting and experimentation of new applied sciences and totally different approaches to industrial improvement, in addition to for group and environmental programmes owing to the nexus between these three aspects.
Industrial parks and SEZs, as properly as associated industrial spaces, have the potential to grow the economic system as a outcome of owing to the alternatives for employment and establishing new businesses and value chains. This consequently develops the tax base and native economic exercise which is important in facilitating social improvement. The myriad of interventions established by way of industrial areas help industrial and economic development, the transition to smart cities and transformation to a green economy in addition to facilitate adoption of 4th Industrial Revolution options. What’s extra, such interventions present a platform for widespread engagement of a number of stakeholders that supports win-win outcomes serving financial, social and environmental interests. Accordingly, industrial parks and SEZ’s have the propensity to offer elevated value, assuming the required planning and implementation is pursued proactively.
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There are currently an estimated 4000 industrial zones globally (SEZ’s, EPZ, FTZ’s etcetera), evidently demonstrating the validity of such mechanisms. There is, nevertheless, debate as to the success of these zones and research has subsequently recognized multiple success components, similar to governance, enabling regulatory frameworks, location and types of providers offered. Suffice it to say, it remains worthwhile to discover the educational gained in executing such spaces and the influence on supporting financial actions in a sustainable method that assist positive 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 crucial function within the effectuation of South Africa’s financial reconstruction and recovery plan. This in the end stems from the SEZ Programme representing the core of the reimagined industrial strategy, which is purposefully structured to stimulate native and overseas direct investments.
Notwithstanding the catastrophic impact of the COVID-19 pandemic on global economies, the value of personal investments within the South African SEZs saw a R1.eight billion enhance from March 2019 to March 2020, whereas the number of operational investments rose from 129 to 143 in the identical time frame. It is projected that the quantity and value of operational investments will improve by almost R10 billion when the next monetary yr ends.
Industrial Parks and Special Economic Zones characterize a key feature inside the convention of the upcoming and eagerly awaited Manufacturing Indaba. The virtual convention and exhibition, to be hosted between 22 – 25 November 2021, is about to assemble worldwide industry experts to handle technological improvements and evolving trends, whereas looking for actionable options to pressing challenges. The platform will empower thought leaders to trade ideas, insights and experiences and serves to boost awareness of emerging opportunities throughout the realm that is manufacturing.

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