Spatial development initiatives
One of South Africa's key industrial policies remains its commitment to fostering sustainable industrial development in areas where poverty and unemployment are at their highest. This objective is carried out through the Spatial Development Initiatives (SDI), which focuses high-level support in areas where socio-economic conditions require concentrated government assistance and where inherent economic potential exists.
The SDI programmes focus government attention across the various national, provincial and local government spheres with the goal of ensuring that investments are fast-tracked and that synergies between the various types of investments are maximised.
SDIs are increasingly focused on the southern African region, with the Maputo Development Corridor leading to substantial investments in both South Africa and Mozambique. The rationale for economic integration in southern Africa is based on the premise that economic integration can yield greater developmental
benefits by the collective use of economic policies.
The SDI concept may have a variety of focuses, such as:
- Industrial – KwaZulu-Natal and Fish River SDIs. By November 1998, the Fish River SDI had inspired nine new commercial operations, which created 500 new jobs. New firms invested R156 million in the Eastern Cape.
- Agro-tourism – Lubombo SDI and Wild Coast SDI.
- Sectoral mix – Maputo Development Corridor.
- Industrial development zones (IDZs) – Coega, Saldanha and East London.
- Second Generation SDI: The Gauteng Special Economic Zone (SEZ) focuses on high technology manufacturing, information technology, telecommunications, food processing, cultural activities, etc.
The SDI programme consists of 11 local SDIs and four IDZs at varying stages of delivery. They are the folllowing:
- SDIs: Maputo Development Corridor; Lubombo SDI; Richards Bay SDI, including the Durban and Pietermaritzburg nodes; Wild Coast SDI; Fish River SDI;
West Coast Investment Initiative; Platinum SDI; Phalaborwa SDI; and Coast 2 Coast Corridor
- SEZs: Gauteng SEZ
- IDZs: Coega IDZ, East London IDZ, Saldanha IDZ and Richards Bay IDZ.
Click here for more information on the Gauteng SEZ
Industrial Development Zones (IDZ)
The government’s IDZ policy is designed to boost exports and jobs. The Department of Trade and Industry has developed a draft concept model which was approved by Cabinet in March 1999.
A National Development Zone Authority (NDZA) will be responsible for the regulation, facilitation and administration of IDZs. It is also envisaged that each IDZ will have a local NDZA to carry out the regulatory and approval process. The development and the management of zones will be done by the private sector.
Spatial Development Initiative (SDI)
Primarily all the major projects in the SDI are based
on a partnership between the public and private sectors, and are set to provide opportunities for participation in sectors such as agriculture, mining, tourism, environment, forestry, infrastructure and ports.
These projects are expected to create more than 68 000 new jobs. A key component of this initiative is the move away towards international competitiveness, regional co-operation, and a more diversified ownership base.
The SDI programme is an interdepartmental investment strategy led by the national Departments of Trade and Industry (DTI) and Transport (DoT) and involves strategic initiatives by government aimed at:
- crowding in of investment: This investment (including financial, technical and institutional resources) cannot only be made by the public sector and its parastatal agencies, but must also make sense for the private sector. The crowding-in effect has been strengthened by the fact that some of the infrastructure development projects that were
previously funded by the public sector are increasingly being funded by way of private sector investment and lending
- public-private partnerships (PPPs)
- inherent economic potential
- rapid planning and delivery
- restructuring the 'apartheid' space economy
- generating sustainable employment
- maximising private sector investment
- exploiting SA's under-utilised locational and economic advantages.
Certain SDI's are beyond the confines of South Africa's borders where the economic imperatives of the strategy dictated that the SDI includes part of a neighbouring country. Examples are the Maputo Development Corridor between South Africa and Mozambique (but it also affects Swaziland, Zimbabwe and Botswana), and the Lubombo Initiative between South Africa,
Mozambique and Swaziland. Under consideration is the extension of the Rustenburg SDI to include the Trans-Kalahari transport corridor between Namibia and Botswana.
Ten development initiatives have been designated and have already generated around 400 investment projects valued at R83-billion. They are:
The Maputo Development Corridor
The Corridor runs from Witbank in the Eastern South African province of Mpumalanga, through Nelspruit, to Maputo the capital of Mozambique. One hundred and thirty investment opportunities have been identified in the provision of infrastructure, agriculture, mining, energy, chemicals, tourism and manufacturing sectors. Lead-time on anchor investments is about three years.
The key infrastructure projects are the N4 Maputo Corridor toll road, the upgrading of the railway line from Ressano Garcia to Maputo, the upgrading
of the Maputo Port, the dredging of the harbour and finally, telecommunications. The first phase of the corridor, the R1.5 billion N4 toll road construction was launched on June 6, 1998. The transport axis between Gauteng, the industrial heart of South Africa, and Maputo offers the shortest link to an export harbour.
Contacts:
David Arkwright, CEO The Maputo Corridor Company (MCC), Private Bag X11251
Nelspruit, 1200
Tel: (27)(13) 755-4004 | Fax: (27)(13) 755-4006
The Lubombo Initiative
This initiative runs through an area of South-East Africa that includes eastern Swaziland, southern Mozambique and the northern part of the South African province of KwaZulu-Natal. A key infrastructure project is a tar road through the SDI to link the major South African coastal road, the N2, to the Mozambique capital of Maputo and the upgrading of secondary roads.
Tourism anchor projects being proposed are the Ponta do Puro-Kosi Bay and Futi/Tembe/Usuthu
transnational tourism nodes, the Greater St. Lucia Wetland Park, a tourism cluster at Lake Sibayi, an integrated Mlawula-Hlane wildlife project, the Lavumisa-Pongola Trans-Frontier Complex and the Lubombo tourism train route. In all 694 projects have been identified to the estimated value of R1148 billion/$182 billion in the tourism, education, craft, commercial and agriculture sectors, including substantial opportunities for communities and small businesses.
Contacts:
MOZAMBIQUE: Albino C. Mahumane, Ministry of Industry, Commerce & Tourism
Ave 25 de September, 1502-3 Andar C, Postal 614, Maputo
Tel: (27)(2581) 425012/3, 420596, 42014 | Fax: (27)(2581) 425275
SWAZILAND: Sindi Mabuza, Ministry of Economic Planning & Development
Box 602, Mbabane
Tel: (27)(268) 41719, 46244 | Fax: (27)(268) 44330
SOUTH AFRICA: Andrew Zaloumis (SDI Project Manager) Box 30886, Mayville, 4058
Tel: (27)(31) 261818 | Fax: (27)(31) 2618185
Phalaborwa
SDI
The main road link will run from Phalaborwa to Nelspruit in the Mpumalanga province, where the SDI will join the Maputo Development Corridor. The corridor aims to create better access between the port of Maputo and the mining potential around Phalaborwa in Limpopo Province and the agricultural projects near Xenon also in Limpopo Province.
Contacts:
Jurgen van Zyl (Project Manager)
Development Bank of South Africa, P.O. Box 1234, Halfway House, 1685
Tel: (27)(11) 313-3518 | Fax: (27)(11) 313-3000
KwaZulu-Natal SDI
The KwaZulu-Natal SDI is a provincial SDI located in the south-eastern part of South Africa. Unlike many of the other SDIs, there are limited Greenfield opportunities in this area. Pre-feasibility studies are presently being conducted to assess the potential for other projects. This SDI will focus primarily on projects on the ports of Durban and Richard's Bay.
Contacts:
Dr Claudia Manning (Project Manager),
Development Bank of South Africa, PO Box 1234, Halfway House, 1685
Tel: (27)(11) 313-6000 | Fax: (27)(11) 313-3000
Richards Bay Initiative
This SDI is centred on the Richards Bay-Empangeni area in the northern part of KwaZulu-Natal province. Projects identified include 25 potential industrial projects -in aluminium, heavy minerals, chemicals, wood and sugar clusters - and three anchor projects in the tourism sector. These projects are currently being packaged and the SDI committee is working towards a meeting with selected tourism investors later this year.
Contacts:
Claudia Manning
Project Manager, Development Bank of South Africa
PO Box 1234, Halfway House, 1685
Tel: (27)(11) 313-3600 | Fax: (27)(11) 313-3000
Platinum Initiative
Most of the SDI falls inside South Africa's North West province. The road around which the SDI is based runs from the north of South Africa's capital, Pretoria, in Gauteng, through the North West
province to join the Trans-Kalahari Highway in Lobatse, Botswana. The SDI will also make the ports more accessible for goods and ore destined for export.
According to the Department of Trade and Industry, a reappraisal of the economic potential of this area earlier this year indicated possible investment opportunities in the tourism, manufacturing, agricultural and mining sectors and projects are currently under investigation.
Contacts:
Andrew Modise
Project Manager, Development Bank of SA, PO Box 1234, Halfway House, 1685
Tel: (27)(11) 313-3540 | Fax: (27)(11) 313-3000
The Fish River Initiative
The SDI consists of a number of centres with high potential for economic growth between the coastal cities of Port Elizabeth and East London in the Eastern Cape Province. Projects in this SDI have not been clearly defined. Those being considered are an auto-industry cluster, supplier development, timber processing and forestry.
Contacts:
Don
Maclean (Acting CEO)
Centre for Investment and Marketing In the Eastern Cape (CIMEC)
Tel: (27)(431) 436-013 | Fax: (27)(431) 436-023
or
Monde Tom (Permanent Secretary)
Department of Economic Affairs, Environment and Tourism Eastern Cape
Tel: (27)(401) 992470 | Fax: (27)(401) 91883
Website
West Coast Initiative
The West Coast Initiative lies just north of Cape Town on the Cape West Coast. It stretches from the industrial centre of Atlantis in the south past the farming town of Vredendal in the north. The coast has several major fishing and industrial ports, including Saldanha Bay, South Africa's largest natural harbour and biggest port.
Contacts:
Dr L.F. Platzky (Project Manager)
Tel: (27)(12) 483-4141
Mr A.C. Ruiters (Deputy Director General)
Department of Trade & Industry, PO Box 979, Cape Town, 8001
Tel: (27)(21) 483-3840/1 | Fax: (27)(21)
483-3409
E-mail: westcoast@sdi.org.za
Wild Coast Initiative
The Wild Coast SDI is a 280-kilometre stretch of Indian Ocean coastline in the Eastern Cape province. It runs from outside the city of East London in the south, through to Port Edward on the border with the province of KwaZulu-Natal, in the north. This SDI is mainly an agri-tourism initiative based in the largely undeveloped Wild Coast of the Eastern Cape. About 11 investment tourism infrastructure, seven forestry and fourteen agricultural projects have been announced.
Contacts:
Ms. Vuyo Mahlati (Project Manager) | Tel: (27)(12) 483-4141
A.C. Ruiters (Deputy Director General) | Tel: (27)(21) 483-3840/1
Department of Trade & Industry, PO Box 979, Cape Town, 8001
Fax: (27)(21) 483-3409 |
E-mail: westcoast@sdi.org.za
East London/Coega Initiative
Located on the eastern seaboard of
Southern Africa, Coega is South Africa's first purpose-built Industrial Development Zone (IDZ) and is expected to focus mainly on
industrial expansion in the East London to Port Elizabeth areas in the Eastern Cape province. The initiative is attracting investments including among others a zinc refinery, steel mill, fertiliser, cement and petrochemical plants.
The initiative was founded through a utility company by: Gencor, Kynoch, Pretoria Portland Cement, Portnet, all tiers of government, the Congress of South African Trade Unions and the Port Elizabeth Regional Chamber of Commerce and Industry.
Contacts:
Doug Reed (Project Manager)
PO Box 2221, Port Elizabeth, 6056, South Africa
Tel: (27)(41) 54-7731/2 | Fax: (27)(41) 572613
E-mail: coegaidz@iafrica.com
or
Peter Miles
PO Box 11179, Southernwood, 5213
Tel: (27)(431) 438438 | Fax: (27)(431) 432249
Website
E-mail: westcoast@sdi.org.za
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