Durban’s cluster approach is paying off.
Akey component of the economic policies of KwaZulu-Natal and South Africa is the support of Special Economic Zones (SEZs). In addition to its two existing zones, the province wants to establish two new ones.
Leather and textiles will be the focus of the planned SEZs in the Newcastle-Ladysmith corridor, an area where those industries already flourish. The province’s two established zones, Dube TradePort (at King Shaka International Airport, pictured) and Richards Bay Industrial Development Zone (RBIDZ) are attracting investments in a range of targeted sectors, agricultural exports and logistics, manufacturing and energy, among others.
TradeZone2 at Dube TradePort has been completed and has started attracting investors. These include:
- Futurelife, food-processors, R57-million
- LM Diapers, expansion of plant, R75-million
- Synergy Blenders, chemical manufacturing, R93-million
KwaZulu-Natal is the second-largest manufacturing centre in South Africa, contributing 21% to national manufacturing GDP. The strongest export sectors are base metals (32% including aluminium), mineral products such as ores, vehicles and chemical products.
The sector is also a major contributor to the eThekwini Municipality GDP. The city’s economy grew 4.9% in 2021, 73% of which came from manufacturing, finance, business and trade.
“Manufacturing is responsible for 20% of the employment opportunities in eThekwini which translates to 176 000 jobs of which 83% are semi-skilled,” says Takalani Rathiyaya, Head of the Economic Development Programmes Department at the eThekwini Municipality. Over the last five years the municipality established four manufacturing clusters that collectively have over 200 member firms.
Further read: @globalafricanetwork.com
Two new Special Economic Zones are planned in KwaZulu-Natal
