The Role of SEZs and Industrial Parks in 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 improvement is recognised as one of the nation’s high priorities, subsequently numerous rising opportunities abound for Africa to industrialize. To seize such opportunities, African governments are required to implement revolutionary approaches to industrial policy, one of which is an elevated give consideration to the position of Special Economic Zones (SEZs) and industrial parks as devices of business growth.
Industrial Parks and SEZ’s are two of the spatial interventions identified by the South African authorities and are subsequently aligned with world approaches. Industrial spaces could be leveraged as catalysts for socio-economic improvement. All issues considered, such spaces are recognised as enablers and are due to this fact usually managed as such, and not for rent-seeking functions. Moreover, industrial parks and SEZs effectively lend themselves as areas for piloting and experimentation of new applied sciences and completely different approaches to industrial growth, in addition to for group and environmental programmes owing to the nexus between these three elements.
Industrial parks and SEZs, in addition to related industrial areas, have the potential to develop the economy because owing to the opportunities for employment and establishing new businesses and worth chains. This consequently develops the tax base and native economic 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 in addition to facilitate adoption of 4th Industrial Revolution options. What’s more, such interventions provide a platform for widespread engagement of a quantity of stakeholders that helps win-win outcomes serving financial, social and environmental interests. 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 those zones and analysis has subsequently identified multiple success components, such as governance, enabling regulatory frameworks, location and forms of services supplied. Suffice it to say, it stays worthwhile to discover the learning gained in executing such areas and the impression on supporting economic actions in a sustainable manner that support 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 crucial role in the effectuation of South Africa’s financial reconstruction and recovery plan. This finally stems from the SEZ Programme representing the core of the reimagined industrial technique, which is purposefully structured to stimulate local and foreign direct investments.
Notwithstanding spmk700 of the COVID-19 pandemic on world economies, the worth of personal investments within the South African SEZs noticed a R1.eight billion improve from March 2019 to March 2020, whereas 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 enhance by almost R10 billion when the following monetary yr 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 set to assemble international business specialists to address technological innovations and evolving trends, while seeking actionable solutions to pressing challenges. The platform will empower thought leaders to trade ideas, insights and experiences and serves to raise consciousness of rising alternatives throughout the realm that’s manufacturing.
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