The Role of SEZs and Industrial Parks within the Manufacturing Industry

Sustainable Development Goal 9 was formulated and adopted in view of Africa’s inefficacy to industrialize. This policy intends to ‘build resilient infrastructure, promote sustainable industrialization and foster innovation’. Industrial growth is recognised as one of many nation’s high priorities, therefore varied rising opportunities abound for Africa to industrialize. To seize such alternatives, African governments are required to implement progressive approaches to industrial policy, considered one of which is an increased focus on the position of Special Economic Zones (SEZs) and industrial parks as instruments of commercial improvement.
Industrial Parks and SEZ’s are two of the spatial interventions recognized by the South African government and are subsequently aligned with international approaches. Industrial areas can be leveraged as catalysts for socio-economic improvement. All things thought-about, such spaces are recognised as enablers and are subsequently usually managed as such, and never for rent-seeking purposes. Moreover, industrial parks and SEZs successfully lend themselves as areas for piloting and experimentation of latest applied sciences and totally different approaches to industrial growth, as well as for neighborhood and environmental programmes owing to the nexus between these three features.
Industrial parks and SEZs, as nicely as associated industrial areas, have the potential to develop the economy as a end result of owing to the opportunities for employment and establishing new companies and worth chains. This consequently develops the tax base and native economic activity which is critical in facilitating social improvement. Dark of interventions established through industrial areas support industrial and financial growth, the transition to sensible cities and transformation to a green economy as properly as facilitate adoption of 4th Industrial Revolution solutions. What’s more, such interventions provide a platform for widespread engagement of multiple stakeholders that helps win-win outcomes serving economic, social and environmental pursuits. Accordingly, industrial parks and SEZ’s have the propensity to provide increased worth, assuming the mandatory 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, nonetheless, debate as to the success of these zones and analysis has subsequently recognized a number of success elements, corresponding to governance, enabling regulatory frameworks, location and types of companies provided. Suffice it to say, it stays worthwhile to explore the training gained in executing such spaces and the impression on supporting economic activities in a sustainable method that help 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 critical role in the effectuation of South Africa’s financial reconstruction and restoration plan. This in the end stems from the SEZ Programme representing the core of the reimagined industrial technique, which is purposefully structured to stimulate local and international direct investments.
Notwithstanding the catastrophic impression of the COVID-19 pandemic on international economies, the value of private investments in the South African SEZs saw a R1.eight billion improve from March 2019 to March 2020, while the variety of operational investments rose from 129 to 143 in the identical time-frame. It is projected that the number and value of operational investments will increase by almost R10 billion when the following financial year ends.
Industrial Parks and Special Economic Zones symbolize a key characteristic within the convention of the upcoming and eagerly awaited Manufacturing Indaba. The digital convention and exhibition, to be hosted between 22 – 25 November 2021, is about to assemble worldwide trade experts to deal with technological improvements and evolving developments, whereas seeking actionable solutions to pressing challenges. The platform will empower thought leaders to trade ideas, insights and experiences and serves to lift awareness of rising opportunities within the realm that is manufacturing.
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