The Dube TradePort Special Economic Zone (SEZ) has opened a R90-million mini-factory complex development aimed at supporting small, medium-sized and microenterprises (SMMEs) requiring light manufacturing, assembly and warehousing.

The SEZ's development team had identified an opportunity to enable small and medium-sized enterprises to access the world-class infrastructure and support services available within the SEZ, which had largely been reserved for established businesses.

“Our mini-factory development presents a good opportunity for local entrepreneurs. We believe it will attract a range of tenants, especially those that are aligned to our strategic broad-based black economic empowerment goals,” says Dube TradePort SEZ CEO Hamish Erskine.

The mini-factory development comprises 18 units, which range in size from 250 m² to 527 m² and includes manufacturing and assembly warehousing space, a reception area, storeroom, kitchen and toilets, as well as a mezzanine office and open plan areas.

The mini-factory development is adjacent to the Dube Cargo Terminal at King Shaka International Airport, which is strategically positioned to support export-oriented manufacturers, as well as those looking for an efficient and secure location to supply local and regional markets, the SEZ says.

There is also easy access to national roads, including the N2 linking the industrial hub to South Africa’s major ports, Durban Harbour and Richards Bay Harbour, and the N3 corridor linking to Gauteng. All these provide manufacturers with seamless access to the African continent by air, road or sea transport.

“The location of the mini-factories within the Dube TradeZone precinct enables there to be cooperation and upward linkages between the SMMEs and the established operators within the SEZ - which is located immediately adjacent to the mini-factory complex, and includes businesses in the diverse fields of medical and electronics, automotive and logistics,” says Erskine.

Meanwhile, tenants of the SEZ enjoy reduced corporate income tax at 15% corporate income tax for qualifying companies. Tenants also have access to a South African Revenue Service Customs controlled area, which provides for value-added tax (VAT) and customs relief and import duty rebates and VAT exemption on imports.

The SEZ also says tenants have access to high-end infrastructure that is funded through the KwaZulu-Natal provincial government and the SEZ Fund.

“Newcomer small-scale manufacturers enjoy supply chain efficiencies and access to markets, together with the distinct competitive advantages associated with both business agility and speed to market,” says Erskine.

Further, security measures for the mini-factories include access cards to control movement in and out of the area, a full-time security presence and armed patrols, guardhouses, a closed-circuit television installation, licence plate recognition technology and security officers.

This provides small-scale operators with the advantage of being able to run a 24/7 operation in a safe and secure environment, the Dube TradePort says.

Additionally, SMMEs can access Dube TradePort’s trucks and commercial vehicles fleet Dube AiRoad should they require a first and last mile cargo solution. The company provides air-to-road and road-to-air cargo solutions by seamlessly connecting cargo, on behalf of time-critical customers, between Dube Cargo Terminal at King Shaka International Airport and major centres in South and Southern Africa.

Meanwhile, Dube TradeZone will open 38 ha of light industrial land in its second phase expansion in 2022, which will focus on a range of high-value manufacturing, electronics, logistics as well as a medical and pharmaceutical cluster, the SEZ says.