SA Urged to Rethink SEZ Strategy to Tackle Jobs, Inequality, and Growth

At a pivotal gathering of South Africa’s industrialisation stakeholders, Maoto Molefane, Special Economic Zones (SEZ) Special Advisor at the Department of Trade, Industry and Competition (the dtic), issued a clarion call for transformational change in how the country conceptualises and implements Special Economic Zones. Speaking during the SSEZ CEOs Forum, held at the Industrial Development Corporation (IDC) in Johannesburg on Thursday, Molefane emphasized the urgent need to move from policy formulation to practical, impactful delivery.

The forum brought together a wide array of actors, including government officials, SEZ executives, business leaders, development finance institutions, and township economy representatives to reflect on the current state of South Africa’s SEZs and deliberate on the draft Spatial Industrial Development Strategy (SIDS).

"Business-As-Usual Won’t Work Anymore": A Bold Shift in Approach

Molefane underscored that while South Africa has made commendable progress in developing SEZ infrastructure and attracting foreign and domestic investment, the impact remains shallow and geographically uneven.

“We continue to face stubborn challenges of poverty, inequality, and unemployment. Our view is that these can only be addressed if we create decent, sustainable jobs,” said Molefane.

The dtic is now pivoting away from mere designation of SEZs to a more action-oriented model where industrial zones are established only after concrete groundwork—infrastructure, partnerships, and investor readiness—is in place.

Reimagining Industrialisation: The Role of the Draft SIDS

The Spatial Industrial Development Strategy (SIDS), now in draft form, is envisioned as a blueprint for reindustrialisation and spatial transformation in South Africa. It proposes a holistic model that integrates SEZs, industrial parks, and township economies to reduce economic and spatial inequality.

Key elements of the strategy include:

• Prioritising regions with latent industrial potential, even if they lack SEZ status.

• Ensuring alignment across all three spheres of government—national, provincial, and local.

• Developing place-based interventions that respond to the unique needs of underdeveloped areas.

“The goal is not just growth but inclusive growth. Township economies, underutilised industrial parks, and marginalised municipalities must be included in the national industrialisation drive,” said Molefane.

Strengthening the SEZ Ecosystem: A New Programme Management Unit

A major institutional reform is the formation of the SEZ Programme Management Unit (PMU) by the dtic. This body will be tasked with:

• Providing technical support to existing and emerging SEZs

• Ensuring national-level oversight and strategic alignment

• Requiring firm investment commitments prior to new SEZ designations

• Facilitating the development of industrial infrastructure, including logistics and utilities

This marks a critical departure from earlier phases where SEZs were designated without adequate planning or resource support, resulting in delayed economic impact.

Performance Highlights and Key Challenges

While acknowledging the gaps, the forum also recognised the success of leading SEZs such as:

• Coega SEZ (Eastern Cape) – a flagship in automotive and renewable energy investments

• East London IDZ – known for manufacturing and logistics strength

• Dube TradePort (KwaZulu-Natal) – a model for airport-linked economic zones

• Tshwane Automotive SEZ (TASEZ) – driving localisation and supplier development in Gauteng

However, stakeholders noted the need for further integration of Black industrialists, linkages with small and medium-sized enterprises (SMEs), and alignment with regional economic strategies.

“We’re building zones, but we must build value chains within them, and ensure that emerging businesses and historically disadvantaged communities are included,” was one of the key sentiments echoed during the forum.

Collaboration and Coherence: The Path Forward

Molefane and other speakers stressed that cross-sector collaboration is essential. The strategy’s success will depend on policy coherence, joint infrastructure investment, and removing bureaucratic obstacles that hinder business growth.

The SSEZ CEOs Forum also explored themes such as:

• Land use planning and environmental clearances

• Skills development and industrial workforce readiness

• Global competitiveness through innovation and digitalisation

• Monitoring and evaluation metrics for SEZ impact

A National Call to Action

In his closing remarks, Molefane challenged all stakeholders to shed inertia and complacency, stating:

“We are no longer in the business of issuing SEZ licences for their own sake. We are in the business of industrialising this country. Designation without groundwork is not an achievement—it is a missed opportunity.”

The message was received with broad consensus, as participants reaffirmed their commitment to transform SEZs into engines of productivity, inclusivity, and global competitiveness.