IN THE State of the Nation address of June 2014, I announced that the economy would take centre stage in our country in the next five years as we pursue a 5 percent growth rate by 2019.
Given the relentless level of unemployment, the pursuit of economic growth and job creation remains high on our agenda as government.
Our presence at the official launch of the Dube Tradeport industrial development zone (IDZ) today (yesterday) is another step forward in our work towards creating more jobs that will alleviate poverty among our people. We are happy that we have so many partners on that journey as we move the country and our people forward.
We have identified industrialisation as a key economic growth strategy nationwide, and are happy to join you at the Dube Tradeport IDZ, which takes forward our industrialisation and development goals.
In particular, we have identified two parts of the Tradeport for the IDZ, the Dube TradeZone and the Dube AgriZone. This project has enormous potential for economic growth in this region.
With everything going well as planned, it is expected that the contribution of the Dube Trade Port to the gross domestic product (GDP) would amount to R5.6 billion by 2060. This is estimated at 0.5 percent of South Africa’s GDP.
The main sectors that will benefit from the Dube Tradeport operations are the following:
n Electronics manufacturing and assembly.
n Aerospace and aviation-linked manufacturing and related services.
n Agriculture and agro-processing, inclusive of horticulture, aquaculture and floriculture.
n Medical and pharmaceutical production and distribution.
n Clothing and textiles.
The IDZ can only succeed given its strategic location. It is within a strong economic region and logistics hub, and is in close proximity to vital road, air, rail and ports linkages.
The Tradeport is located within proximity of King Shaka International Airport, as well as two busy ports – Durban and Richards Bay.
The IDZ is also backed by the 60-year master plan and a focused development strategy to turn it into a premier world class investment and industrial hub.
Most importantly, the IDZ will benefit from the changing legislation that will enhance development zones.
All IDZs will automatically receive special economic zone (SEZ) status when the new Special Economic Zones Act comes into operation.
The special economic zones that meet the criteria will be eligible to offer a range of new support measures.
The following support will be provided to the SEZs:
n VAT exemption and Customs Duty Free.
n Section 12i tax allowance.
n 15 percent corporate tax rate.
n Building tax allowance.
n The employment tax incentive.
Since the announcement of the new support package for IDZs, there has been a significant interest by foreign and domestic investors. This year alone the Coega IDZ in Port Elizabeth has attracted over R1.8bn in investments.
The East London IDZ has attracted over R500 million in investments. The Saldanha IDZ, though new and not fully developed, has attracted the interest of 19 potential investors who would like to be located there.
The Dube Tradeport IDZ has already attracted over R900m in private sector investments. This is a clear indication that the province is on its way to achieve the 60-year master plan.
It is also envisaged that total potential jobs to be unlocked by Dube Tradeport is about 150 225 by 2060.
By that same year, 2060, we also expect to see developmental growth around the Dube Tradeport Precinct. This includes upgraded roads, the extension of the cargo terminal, an increase in passenger volumes and the development of small and medium businesses around the region.
The Dube TradePort IDZ is indeed yet another good story to tell. It reflects our willingness to create partnerships between the government, private sector and other social partners, to work together towards a prosperous economy that benefits all citizens and residents.
We are pleased that present here today (yesterday), are a number of investors looking at new investments and expansions in South Africa.
We extend a warm welcome to all investors and potential investors, from both South Africa and abroad.
Let me assure you that South Africa is open for business. We are determined to create an environment that is investor-friendly. We will continue to improve support measures both through the SEZs and other development tools.
We will continue to engage the business community, labour and other sectors, so that we move along together towards the much desired growth.
And indeed, we will continue to search for solutions that will take us closer each day to inclusive growth and jobs for our people.
I would like to congratulate the provincial government of KwaZulu-Natal, Dube TradePort management, Minister Rob Davies and the Department of Trade and Industry (dti) on this important milestone and the rolling out of Dube TradePort IDZ.
We have made a good start. We should all work together to make this project a huge success.
Our people will judge success by the manner in which the IDZ changes their lives through jobs and a better life.
They will judge success through seeing the fruition of the dream of the founding president of the ANC, Dr John Langalibalele Dube, after whom the Tradeport is named. He painted a picture of a successful and prosperous South Africa.
He said this state would occur: “When the sunshine of a new civilisation shall rise upon a land teeming with commerce; where upon every hill top shall be seen the school house and the church; when indeed Africa will be a nation among nations.”
It is my honour and pleasure to declare the Dube TradePort Industrial Development Zone open!
This is an edited version of a speech by President Jacob Zuma at the opening of the Dube TradePort in Durban yesterday.