Pretoria: President Cyril Ramaphosa has reaffirmed government's commitment to strengthening South Africa's Special Economic Zones (SEZs), describing them as key drivers of industrialisation, investment, and job creation as the country works to grow a more competitive and inclusive economy. Delivering the keynote address virtually at the 2nd International Special Economic Zones Conference Presidential Gala Dinner and Awards Ceremony on Thursday evening, the President said the gathering celebrated South Africa's industrial potential and the role of SEZs in transforming the economy.
According to South African Government News Agency, President Ramaphosa highlighted the significance of SEZs, stating that they are not merely designated industrial sites but engines of economic transformation. He emphasized that these zones are essential for translating policy into production, turning investment into enterprises, and converting innovation into competitiveness, ultimately transforming hope into opportunity.
The President noted that investment remains central to South Africa's economic program, citing the record R890 billion in investment commitments secured at the Sixth South Africa Investment Conference. These commitments cover strategic sectors, including mining and mineral beneficiation, automotive manufacturing, agro-processing, tourism, renewable energy, digital technologies, and the green economy. A significant portion of this investment is expected to be channeled into the SEZ program.
President Ramaphosa cited the Tshwane Automotive Special Economic Zone as a successful model of collaboration between government and business, where investment by Ford and its component manufacturers has already created over 3,000 permanent jobs. He underscored the importance of the SEZ program as a cornerstone of South Africa's national investment strategy, offering modern infrastructure, efficient logistics, and investor support to enhance business competitiveness.
The President also introduced the government's Industrial Development Strategy, which aims to address structural challenges such as low growth, de-industrialisation, and unemployment. The strategy focuses on decarbonising industries, diversifying export markets, and accelerating digital industrialisation. Additionally, the new Spatial Industrial Development Strategy aims to ensure that industrial development generates benefits for surrounding communities, supports local enterprise development, and advances inclusive regional growth.
President Ramaphosa highlighted a World Bank assessment showing that South Africa's SEZs have attracted over R34 billion in investment, created more than 30,000 direct jobs, and generated over R14 billion in revenue for the fiscus. The government is considering the World Bank's recommendations to enhance investment incentives and introduce privately owned Special Economic Zones to strengthen the program further.
Looking ahead, the President expressed confidence that SEZs would play an increasingly vital role in advanced manufacturing, electric mobility, renewable energy technologies, and other emerging sectors. He emphasized that SEZs should contribute to exporting higher-value manufactured products rather than raw materials, positioning South Africa as a leading industrial economy on the African continent.
President Ramaphosa concluded his address by highlighting ongoing efforts to improve South Africa's investment climate, including reducing regulatory burdens, accelerating permit approvals, and improving infrastructure. He stressed the importance of ensuring that the success of SEZs benefits the broader economy by creating opportunities for small businesses, supporting localisation, and empowering skilled workers, women, and young entrepreneurs.