The Saldanha Bay Industrial Development Zone has signed new investment agreements, bringing the total number of signed investors to eight and investment value to over R3 billion ($211 million).
“The investments signal a significant start of establishing new industrial value chains in and around the Port of Saldanha,” said Rob Davies, the minister in charge of the Department of Trade and Industry.
“The Saldanha Bay Industrial Development Zone is part of the dti Special Economic Zones Programme and is developing into a world-class offshore and maritime hub,” the Minister added.
The investors in Saidanha Bay include international stakeholders from the United Kingdom, Europe, the Middle East and Africa. Local companies were also not left out, investing in a variety of fabrication workshops for steel and other metals, equipment and marine repair facilities, oil lubricant and fuel plants, as well as specialised engineering services.
According to Davies, investors plan to start construction between March 2019 and March 2020. He added that the investments signal a significant start of establishing new industrial value chains in and around the Port of Saldanha, located in the south-western coast of South Africa.
He explained that the Saldanha Bay Industrial Development Zone is part of the dti Special Economic Zones (SEZ) Programme and is developing into a world-class offshore and maritime hub.
The SEZ comes with impressive value proposition (pdf) for investors, having established most of the major land-based infrastructure and some of the marine infrastructure. The zone’s partnership with Transnet National Ports Authority has already started some of the design and commercial work for expanding the infrastructure offering, with additional port facilities. The SEZ also offers a free port model for optimal operational ease.
“The Saldanha Bay IDZ’s investment pipeline includes at least five more investments that are close to conclusion,” Davies said.
“If these are realised, they will add another R2.4 billion of investment to the short and medium term outlook of the zone. The total investor pipeline includes around 40 additional interested companies in various stages of engagement,” the Minister added.
The Western Cape government and the dti have partnered with the Saldanha Bay Municipality and larger companies in the West Coast to start building the ecosystem for localised procurement and small, medium and micro-sized enterprises support as a result of the opportunities posed by the new value chains.
South Africa identifies SEZs as key contributors to economic development. The country sees them as growth engines towards government’s strategic objectives of industrialisation, regional development and employment creation.
Speaking last year at the launch of the Atlantis Special Economic Zone, which is designated for the establishment of a green technologies hub in the Western Cape, President Cyril Ramaphosa stated that SEZs are key to unlocking South Africa’s competitive and comparative advantages. He noted at the time that the programme had generated R11.6 billion ($824 million) worth of private investments into the SEZs.
Source : thenerveafrica.com
Keywords : South Africa, News, Economy, Companies, Investment