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’. Index is recognised as one of many nation’s top priorities, subsequently numerous emerging opportunities abound for Africa to industrialize. To seize such alternatives, African governments are required to implement innovative approaches to industrial coverage, certainly one of which is an elevated give consideration to the position of Special Economic Zones (SEZs) and industrial parks as devices of industrial growth.
Industrial Parks and SEZ’s are two of the spatial interventions recognized by the South African government and are subsequently aligned with global approaches. Industrial areas could be leveraged as catalysts for socio-economic improvement. All issues considered, such spaces are recognised as enablers and are subsequently typically managed as such, and not for rent-seeking functions. Moreover, industrial parks and SEZs successfully lend themselves as areas for piloting and experimentation of recent applied sciences and totally different approaches to industrial improvement, as properly as for neighborhood and environmental programmes owing to the nexus between these three features.
Industrial parks and SEZs, in addition to related industrial areas, have the potential to develop the economic system because owing to the alternatives for employment and establishing new businesses and worth chains. This consequently develops the tax base and local financial activity which is important in facilitating social growth. The myriad of interventions established through industrial spaces support industrial and financial development, the transition to smart cities and transformation to a green financial system as well as facilitate adoption of 4th Industrial Revolution solutions. What’s more, such interventions present a platform for widespread engagement of multiple stakeholders that supports win-win outcomes serving financial, social and environmental pursuits. Accordingly, industrial parks and SEZ’s have the propensity to offer elevated worth, assuming the necessary planning and implementation is pursued proactively.
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There are at present 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 identified multiple success elements, similar to governance, enabling regulatory frameworks, location and kinds of companies supplied. Suffice it to say, it stays worthwhile to discover the training gained in executing such areas and the influence on supporting financial activities in a sustainable method that assist constructive 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 economic reconstruction and recovery plan. This ultimately stems from the SEZ Programme representing the core of the reimagined industrial technique, which is purposefully structured to stimulate native and international direct investments.
Notwithstanding the catastrophic impact of the COVID-19 pandemic on world economies, the worth of personal investments within the South African SEZs saw a R1.8 billion improve from March 2019 to March 2020, whereas the variety of operational investments rose from 129 to 143 in the identical timeframe. It is projected that the number and worth of operational investments will improve by nearly R10 billion when the subsequent monetary 12 months ends.
Industrial Parks and Special Economic Zones symbolize a key feature inside the convention of the upcoming and eagerly awaited Manufacturing Indaba. The virtual conference and exhibition, to be hosted between 22 – 25 November 2021, is about to assemble worldwide business experts to address technological improvements and evolving trends, while in search of actionable options to urgent challenges. The platform will empower thought leaders to trade ideas, insights and experiences and serves to raise awareness of rising alternatives throughout the realm that’s manufacturing.
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