Weeks after launching the seventh iteration of government’s Industrial Policy Action Plan, Trade and Industry Minister Dr Rob Davies told the National Council of Provinces (NCOP) on Wednesday that his department would continue to progressively scale-up interventions to support reindustrialisation and industrial development, chiefly through the “stepping-up” of the special economic zone (SEZ) programme.

Updating the NCOP on the progress of the country’s various industrial development zones (IDZs) – a form of SEZ – during his Budget Vote speech, Davies noted that the key Coega, East London and Richards Bay IDZs had, between 2002 and 2014, attracted 54 investors with an estimated investment value of R4.8-billion.

These investments were estimated to have created around 73 000 jobs.

The recently proclaimed Saldanha Bay IDZ, in the Western Cape and the Dube TradePort, in KwaZulu-Natal, had, meanwhile, received “positive responses” from investors.

Davies noted that the Saldana Bay IDZ was currently engaged in discussions with over 26 potential investors interested in locating to the IDZ, with the majority of these involved in the logistics support services, oil and gas contracting, oil drilling services, marine and rig fabrication and rig repair industries.

Eight of these companies were in the process of developing and finalising agreements with the IDZ, he said.

“The Dube TradePort has, in just a few months, attracted investment commitments of over R900-million.

“In addition, I am pleased to be able to announce that we have now cleared all issues necessary for me to take a proposal to Cabinet to establish an agroprocessing and logistics-based IDZ at Maluti-a-Phofeng, in the Free State,” he told the NCOP.

He further announced that the SEZ advisory board had been appointed and would shortly begin work on finalising the SEZ regulations before considering proposals for the designation of new SEZs.

“Members will recall that the main aim of the SEZ Act was to allow for the proclamation of a broader range of SEZs, while still allowing for the recognition of existing and future potential IDZs.

“New SEZs could include IDZs, free ports, free trade zones or sector development zones and will be supported by an incentive package that will include a 15% corporate tax, building allowance, employment incentive and customs-controlled territory. We will also offer a stepped-up support service to investors,” he commented.

As the SEZ legislation was being drafted, Davies said the Department of Trade and Industry had provided seed funding to each of the nine provinces to undertake feasibility studies and planning work for potential SEZs.

He committed the department to finalising the necessary SEZ regulations during the first quarter of the financial year, designating new zones with a strong focus on mineral beneficiation, investing in the promotion of SEZs and providing continuous support to the provinces for the development and management of SEZs.