The recent designation of the Nkomazi Special Economic Zone (SEZ), in Mpumalanga, is expected to contribute considerably to the economic and industrial development of the Nkomazi region and the province at large.

This is according to Trade and Industry Minister Dr Rob Davies, who designated the Nkomazi SEZ as the tenth SEZ in South Africa last month. 

The Nkomazi SEZ will be developed as an agroprocessing hub, supported by logistics and other related services.

The Minister’s decision follows Cabinet’s ratification of the Minister’s decision to designate and grant an SEZ licence to the Mpumalanga Department of Economic Development and Tourism.

To date, the national SEZ programme has attracted 115 private companies with R11.6-billion in investments and R4.6-billion in public investments, according to the Department of Trade and Industry (DTI).

The SEZ programme has created more than 14 020 direct jobs as well as many multipliers, the DTI notes.

According to Davies, the introduction of SEZ tax incentives, which include the reduced 15% corporate tax incentive, employment tax incentives, customs and excise incentive, and accelerated depreciation of building allowance, have brought much-needed investment confidence into the programme and the country.

Davies says this is attested by the increase in investment attracted and the projects that are currently under construction.

“Taking advantage of the tax incentive package and the SEZ investment pipeline, the DTI’s target is to increase the number of investments into the zones, and double the rand value of operational investments from R11.6-billion to R23-billion by the end of 2019,” says Davies.

Last month, President Cyril Ramaphosa launched the 124.5 ha Atlantis SEZ in Atlantis, in the Western Cape.

The Atlantis SEZ is designated for the manufacture of green, alternative waste management and energy efficiency technologies, as well as other clean technologies and alternative building materials.

“[The] SEZ programme continues to be government’s priority industrial infrastructure programme aimed at developing new industrial hubs, attracting new foreign direct and domestic investments, contributing to the development of industrial capabilities and skills development, as well as [the] creation of decent jobs,” says Davies.