Name and Location
East London industrial development zone (Elidz), Eastern Cape, South Africa.

Client
The Elidz and the Department of Trade and Industry.

Project Description
The Elidz aims to bring economic growth to the Eastern Cape and beyond by offering investors a globally competitive combination of geographical position, infrastructure, services and labour. This is being achieved in the region by attracting foreign and local investment in the field of industrial development.

As tenants, they will be constructing their factories on fully developed sites offering various property services, including access to high-technology telecommunications infrastructure and various municipal utilities.

The IDZ has 30 investors to date, with 22 of these already operational in the zone. Five other investors are either constructing or commissioning their plants in the zone.

Value
The Elidz has attracted R 3.7-billion of investment since it secured its first investor in 2005.

Duration
Ongoing.

Latest Developments
The Elidz recently celebrated ten years since it was designated as one of the first IDZs in South Africa.

The impact of the IDZ extends beyond than just the zone, says Elidz CEO Simphiwe Kondlo. To date, it has awarded contracts worth R928-million to broad-based black economic-empowered enterprises and contracts worth R281-million to qualifying small, medium-sized and microenterprises. The IDZ has also transacted with more than 200 local companies since its inception.

The Elidz has also created various learnership opportunities and its eMonti Science and Technology Park initiative is incubating more than 75 small businesses in various sectors.

The journey, however, has also had its challenges. Amongst these has been the inadequate design and delivery of effective and legitimate enabling policy instruments to deliver real incentives for the IDZ programme.

There are currently no IDZ-specific incentives and the only incentive linked to the IDZs – the Customs Controlled Area (CCA) benefit – had still not been  operationalised by 2012, owing to several policy and operational issues between the various government stakeholders involved.
Kondlo says these challenges have made the mandate of South African front-runner IDZs almost impossible.

“We are hopeful that current discussions led by the Department of Trade and Industry, aimed at improving the legislative framework of Special Economic Zones (SEZs) within which the IDZs are categorised, will assist in increasing our competitiveness and, as such, accelerate our pace of attracting and bedding down investment for the zone,” he says.

He adds that the proposed SEZ Bill is the first attempt at establishing a legislative framework that goes beyond the tenuous association with the Manufacturing Development Act. The proposed legislation recognises the need for export-oriented zones that, like the Elidz, are linked to a port, and for inland zones, which are focused on niched outputs.

Key Contracts and Suppliers
Foxtech Ikhwezi (a joint venture between Otto Fuchs (70%) and Ikhwezi Investment Holding); Johnson Controls; Feltex Trim; Fehrer & Futuris; Eurofit & TI Tanks; Carcoustics; Uti; Milltrans; Seatek; Molan Pino; TI Automotive; Caravelle Automotive Carpets; Big Foot Express; Mercedes-Benz South Africa (MBSA); Matla Solar Energy; Espadon Marine; Murray & Roberts; Sunningdale Dairy; Cast Arena Trade & Investment Holdings; and Aquarius Tyre.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Big Foot Express, tel +27 11 878 9850, fax +27 11 826 1214 or email collections@bigfootexpress.co.za.
Caravelle Automotive Carpets, tel +27 11 805 6126.
Carcoustics, tel +27 43 701 91 00 or email info@carcoustics.com.
Elidz, tel +27 43 702 8200 or fax +27 43 736 6405; or communications and public relations specialist Ayanda Ramncwana, tel +27 43 702 8208 or email ayanda@elidz.co.za; or Automotive sector manager Cyndi Lee Perils, email cyndi-lee@elidz.co.za.
Foxtec Ikhwezi, tel +27 43 703 3500, fax +27 43 703 3515 or email info@foxtecikhwezi.co.za.
Milltrans manager Johan Stapelberg, tel +27 43 704 1610, cell +27 82 773 6204 or email johan.millel@mweb.co.za.
Molan Pino, tel +27 43 702 8270, fax +27 43 702 8253 or email charl.human@molan-pino-sa.com.
Murray & Roberts investor relations, Ed Jardim, tel +27 11 456 6200, fax +27 11 455 1322 or email eduard.jardim@murrob.com.
Sunningdale Dairy, tel +27 74 696 4158.