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The Role of SEZs and Industrial Parks within the Manufacturing Industry

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’. Industrial growth is recognised as one of many nation’s top priorities, therefore numerous rising alternatives abound for Africa to industrialize. To seize such opportunities, African governments are required to implement progressive approaches to industrial policy, one of which is an elevated concentrate on the function of Special Economic Zones (SEZs) and industrial parks as instruments of commercial development.
Industrial Parks and SEZ’s are two of the spatial interventions identified by the South African authorities and are subsequently aligned with global approaches. Industrial spaces may be leveraged as catalysts for socio-economic development. All things thought of, such areas are recognised as enablers and are due to this fact typically managed as such, and not for rent-seeking functions. Moreover, industrial parks and SEZs effectively lend themselves as areas for piloting and experimentation of recent technologies and different approaches to industrial growth, in addition to for group and environmental programmes owing to the nexus between these three features.
Industrial parks and SEZs, as properly as related industrial spaces, have the potential to grow the economic system because owing to the opportunities for employment and establishing new businesses and worth chains. This consequently develops the tax base and local economic activity which is crucial in facilitating social growth. The myriad of interventions established by way of industrial areas support industrial and financial improvement, the transition to smart cities and transformation to a green economy in addition to 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 economic, social and environmental interests. Accordingly, เพรสเชอร์เกจคือ and SEZ’s have the propensity to provide elevated value, assuming the necessary planning and implementation is pursued proactively.
READ: Germany pledges US $116M for renewable energy in Africa
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 those zones and analysis has subsequently recognized multiple success elements, such as governance, enabling regulatory frameworks, location and kinds of providers offered. Suffice it to say, it stays worthwhile to discover the learning gained in executing such areas and the influence on supporting financial activities in a sustainable method that assist positive 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 important function within the effectuation of South Africa’s economic reconstruction and restoration plan. This finally 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 influence of the COVID-19 pandemic on world economies, the worth of personal investments in the South African SEZs noticed a R1.eight billion enhance from March 2019 to March 2020, while the number of operational investments rose from 129 to 143 in the identical time frame. It is projected that the quantity and worth of operational investments will increase by almost R10 billion when the subsequent financial 12 months ends.
Industrial Parks and Special Economic Zones characterize a key function throughout the convention of the upcoming and eagerly awaited Manufacturing Indaba. The digital convention and exhibition, to be hosted between 22 – 25 November 2021, is set to assemble international business consultants to address technological innovations and evolving developments, whereas looking for actionable options to urgent challenges. The platform will empower thought leaders to trade ideas, insights and experiences and serves to lift awareness of rising alternatives throughout the realm that is manufacturing.
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