Below are ten reasons why the ELIDZ presents a compelling environment for industrial investment.

1. Plug-and-play industrial land

Investors at the ELIDZ gain access to fully serviced, development-ready industrial land, with bulk infrastructure already in place. This means no delays, no hidden capital expenditure, and no servicing risks when establishing operations, providing a ready platform for industrial development.

2. Strategic automotive port access

The ELIDZ is located close to a dedicated automotive port. With automotive berth access, lower congestion, and faster turnaround times, manufacturers benefit from more efficient logistics and export movement. Location continues to play a critical role in industrial competitiveness.

3. A deep automotive skills base

East London is home to one of South Africa’s most mature automotive labour pools. Decades of OEM manufacturing expertise, combined with an MBSA-trained workforce and a strong pipeline from WSU and TVET institutions, contribute to a skilled and experienced workforce, supporting the continued growth of automotive manufacturing.

4. An established supplier network

The ELIDZ operates within a ready-made ecosystem of component manufacturers, logistics providers, and service companies. This established network helps reduce operational risk, retraining costs, and supply chain realignment for manufacturers, strengthening the industrial value chain.

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5. Strong government coalition

Investment within the ELIDZ is supported by collaboration between ELIDZ, DEDEAT, Buffalo City Metro, the Provincial Treasury, Transnet Port, and the DTI. This coalition works to unlock incentives, accelerate approvals, and de-risk investment, creating a coordinated approach to industrial development.

6. Green energy and smart manufacturing

The ELIDZ supports reduced energy costs and carbon footprint reduction, while enabling smart factory readiness, EV innovation, and green logistics solutions. This positions manufacturers for a more sustainable future.

7. A proven automotive zone

The ELIDZ has built a 20-year track record hosting Mercedes-Benz Tier 1 and Tier 2 suppliers, supporting export-focused manufacturing. This experience contributes to the Zone’s global credibility in automotive production.

8. Supporting localisation

Through the ELIDZ Manufacturing Incubator, enterprise development programmes support opportunities linked to the Geely value chain. Structured incubation programmes help strengthen local participation within the manufacturing sector.

9. Improving project economics

The ELIDZ provides access to a structured package of automotive and SEZ incentives designed to support investment, localisation, and export competitiveness. These incentives help strengthen the business case for industrial investment.

10. A de-risked investment environment

The ELIDZ provides investors with a proven industrial platform and a mature operating environment. This helps reduce ramp-up complexity and lowers transition risk when establishing operations, offering a practical pathway for industrial investment.

Connect with the ELIDZ team to explore available opportunities and join a growing manufacturing ecosystem. Visit www.elidz.co.za or contact 043 702 8200 to learn more about investment opportunities.

Here are 10 more compelling reasons to establish your business in the East London IDZ!

The East London Industrial Development Zone (ELIDZ) is advancing the digital economy in the Eastern Cape through secure, scalable and locally hosted ICT infrastructure designed to support enterprise operations, government digitisation and technology-driven investment. 

At the core of this offering is the ELIDZ Data Centre, a state-of-the-art facility designed on Tier III principles, providing highly available, resilient infrastructure for organisations requiring secure digital environments and reliable data hosting. 

The facility enables organisations to host data locally, strengthen cybersecurity, and ensure operational continuity while complying with national information governance and data management standards. 

A strategic digital infrastructure platform 

The ELIDZ Data Centre forms part of a broader digital infrastructure ecosystem designed to support enterprise operations, government digital transformation, and technology-enabled industries. 

Key infrastructure features include: 

• Tier III-aligned data centre design: Designed for 99.982% uptime, ensuring continuity of operations for mission-critical systems.  
• Secure local data hosting: Supports data sovereignty and compliance with regulatory frameworks, providing organisations with secure and locally hosted infrastructure. 
• Carrier-neutral connectivity: High-speed fibre connectivity from multiple providers enabling resilient, high-performance digital operations.  
• Scalable infrastructure capacity: The facility is designed to expand as demand grows, supporting long-term digital infrastructure requirements. 

International security standards 

ELIDZ operates under internationally recognised information security frameworks including ISO 27001, ISO 27017 and ISO 27018, ensuring strong governance and cloud security standards. 

ELIDZ ICT Service Portfolio 

ELIDZ provides integrated ICT solutions designed to support operational resilience, data protection and digital transformation. 

• Data centre co-location: Secure rack hosting within a high-availability facility designed for enterprise and government workloads. 
• Private cloud services: Scalable and secure cloud environments that support modern digital operations. 
• High-speed fibre connectivity: Reliable network connectivity enabling seamless data transmission and digital communication. 
• Telephony and internet services: Robust communications infrastructure for enterprise and institutional clients. 
• Backup and disaster recovery (BaaS & DRaaS): Business continuity solutions designed to protect critical systems and data. 
• Managed ICT services: 24/7 infrastructure monitoring, technical support and proactive ICT management. 

Enabling the Eastern Cape’s digital economy 

ELIDZ’s investment in digital infrastructure supports broader economic objectives including government digitisation, enterprise innovation, investment attraction and technology sector growth. 

By providing secure, locally hosted digital infrastructure, ELIDZ is helping position the Eastern Cape as an emerging digital services and technology hub. 

Partner with ELIDZ digital infrastructure 

Organisations seeking secure, resilient and scalable ICT infrastructure are invited to engage with ELIDZ to explore tailored digital solutions. 

Tel: +27 (0) 43 702 8200 | E: ictsales@elidz.co.za 
Visit: www.elidz.co.za  

Also see:

ELIDZ: A cost-effective base for scaling digitally-oriented business operations
Invest in the ELIDZ ecosystem: Innovation, Impact and Inclusion

A global leader in AI-powered Decision Intelligence, Provenir, highlights the growing strain on organisations to strengthen fraud defenses while still delivering seamless, low-friction digital experiences that customers expect .

Executives acknowledge difficulty responding to new fraud trends 

One of the study’s most striking findings is that 50% of credit risk and fraud executives worldwide say their biggest challenge is the inability to detect and react quickly to new fraud trends. This acknowledgement points to a fundamental vulnerability in many existing fraud prevention strategies, where static rules and fragmented data often fail to keep pace with modern fraud techniques. 

As fraud schemes grow more dynamic and adaptive, companies are increasingly exposed to risks that can materialise and escalate in real time — often before traditional controls are able to respond. 

Rising anxiety around AI-enabled fraud 

Concerns are intensifying as fraudsters adopt artificial intelligence to automate attacks, mimic legitimate behaviour, and exploit digital onboarding and application processes at scale. The survey found that 77% of executives are concerned about AI-enabled fraud threats, reflecting widespread recognition that fraud has entered a new era of sophistication. 

These concerns span industries, from financial services and insurance to retail and telecommunications, as organisations contend with fraud attempts that are faster, more personalised, and harder to detect than ever before. 

Companies accelerate adoption of AI-driven defenses 

In response to these challenges, many organisations are accelerating investments in advanced fraud prevention technologies. The survey shows that 75% of respondents are deploying AI-driven, adaptive fraud prevention solutions, while 74% are leveraging real-time anomaly detection to identify suspicious activity as it occurs. 

These approaches signal a shift away from reactive, rules-based models toward more dynamic systems capable of learning, adapting, and responding to emerging fraud patterns in real time. For many leaders, AI is no longer optional—it is becoming foundational to effective fraud management. 

Defining the building blocks of a strong fraud strategy 

When asked to identify the most important elements of a comprehensive fraud strategy, executives emphasised the need for better data visibility, integration, and customer-centricity. 

• 33% said gaining a comprehensive fraud risk view of customer data was most important 
• 23% cited reducing friction in the customer experience as critical 
• 22% emphasized aligning data at the customer level rather than by channel 
• 19% pointed to breaking down data silos between fraud and credit teams 

These findings highlight a growing understanding that fraud prevention cannot operate in isolation. Instead, it must be integrated across teams and systems to provide a unified, real-time view of risk at the customer level. 

Future priorities: Automation, accuracy and fraud loss reduction 

Looking ahead, organisations are focused on strengthening both efficiency and effectiveness within their fraud and risk operations. Survey respondents identified several key areas of investment over the next phase of their fraud prevention journeys: 

• 54% aim to enhance operational efficiency and automation 
• 54% plan to improve the accuracy of artificial intelligence and machine learning models 
• 52% are focused on reducing overall fraud losses 

These priorities reflect the dual mandate facing risk leaders: manage growing volumes of transactions and data while maintaining precision and minimising false positives that can frustrate customers and strain operations. 

Fraud prevention’s expanding role in business strategy 

The study also reveals that fraud prevention is no longer viewed solely as a defensive function. Organisations increasingly see it as a driver of broader business outcomes and competitive advantage. 

Beyond reducing fraud losses, respondents said their fraud strategies are expected to help:

• 57% increase in customer retention and loyalty 
• 55% enhance customer experience and reduce friction 
• 51% improve overall profitability or risk-adjusted returns 
• 50% enable event-driven, real-time decisioning 

These results demonstrate a growing alignment between fraud prevention, customer experience, and revenue growth—areas that were once managed separately but are now deeply interconnected. 

Executive insight on the speed of fraud evolution 

“The biggest risk today isn’t just fraud itself, rather it’s the speed and sophistication at which fraud vectors are evolving, with half of institutions indicating keeping pace with this race remains their greatest challenge,” said Carol Hamilton, Chief Commercial Officer, Provenir. “AI-driven, real-time, and adaptive fraud prevention is essential to improving model accuracy and protecting customers without adding friction to the experience.” 

Her perspective reflects a broader industry shift toward viewing speed and adaptability as the defining factors of successful fraud prevention in the modern digital economy. 

About the study methodology 

The survey was conducted in early December 2025 by The Harris Poll and included 203 respondents across North America, EMEA, Latin America, and Asia Pacific.

Participants held the title of director or higher and were responsible for deploying AI-based solutions within their organisations. All respondents were involved in risk evaluation, credit approvals, fraud detection, or personalised offers across industries, including banking, credit unions, financial services, FinTech, insurance, wholesale, retail and telecommunications. 

The Free State Province lies in the heart of South Africa, with the Kingdom of Lesotho nestling in the hollow of its bean-like shape. Situated between the Vaal River in the north and the Orange River in the south, the region is one of flat, rolling grassland and fields of crops, rising to lovely mountains in the north-east.

The Free State shares borders with six other provinces and provides easy access to the main ports of Durban, East London and Gqeberha (Port Elizabeth). The country’s major national highway, N1, runs through the centre of the province on a north-south axis.

Mangaung, comprising Bloemfontein, Botshabelo and Thaba Nchu, is South Africa’s newest metropolitan authority. The Bram Fischer International Airport in the provincial capital is the site of a multi-phase industrial and commercial development.

The N8 Corridor covers Bloemfontein, Botshabelo and Thaba Nchu and contains projects including the ICC Precinct (hotel and convention centre in Bloemfontein), Bio-Medical Park, Airport Node (logistics and supply chain, warehouses, residential apartments, hospitals, schools, hotels and new shopping malls), and tourism infrastructure for the Naval Hill development.

The province has an established institutional, educational and administrational infrastructure and is home to the Supreme Court of Appeal, the University of the Free State and the Central University of Technology.

Multiple sector opportunities

The Free State is home to immense investment opportunities in sectors such as agriculture, agro-processing, manufacturing, ICT, infrastructure development, green energy, construction, tourism and trade.

Some of the biggest current sectors in the province are agriculture, mining, manufacturing and tertiary sectors, making it an ideal location for transport logistics and agro-processing operations. The province is the granary of South Africa, with agriculture central to its economy, while the mining industry is still a large employer.

The province supplies significant proportions of the nation’s sorghum (53%), sunflowers (45%), potatoes (33%), groundnuts (32%), dry beans (26%), wool (24%) and almost all of its cherries (90%). Red meat and dairy are other important products, while game hunting is a growing sector. Crop production represents about two-thirds of the province’s gross agricultural income. The main crops are maize and wheat. Sunflowers, sunflower seeds, sorghum and soybeans are other major crops. The Mangaung Fresh Produce Market plays a vital role in the sector, catering to householders, bulk buyers, informal traders, agents and farmers.

Opportunities are opening up in the province’s gas and energy sector, with exploration licences being granted, and a R200-million plant started producing liquified natural gas (LNG) and helium in 2022.

Opportunities in renewable energy are boundless. Rezoning for solar farms has already taken place in Theunissen, Bloemfontein, Fauresmith and Hoopstad. Solar projects include the 60MW Boshoff Solar PhotoVoltaic (PV) park (Sun Edison) and the 64MW Letsatsi Solar PV (Solar Reserve, Kensani Group and Intikon Energy).

Sasolburg, on the province’s northern border, is one of the country’s most important industrial complexes. It is home to the global giant Sasol and several other chemical facilities. Other towns that are the centre of economic activity include Kroonstad, an important agricultural, administrative and educational centre; Parys, on the banks of the Vaal River; QwaQwa, a vast settlement known for its handcrafted items; Ficksburg, famous for its cherry festival; and Bethlehem, gateway to the Eastern Highlands.

Companies locating to the Free State not only enjoy the opportunity to source inputs at competitive prices, but also benefit from domestic, regional and international markets for their products and services. Because South Africa has been engaging with our economically large trading partners, access to international markets is facilitated through various trade preferences and free-trade agreements.

Adding to the province’s attractiveness as an investment destination, there are several industrial parks and a Special Economic Zone (SEZ) that are supported by the National Department of Trade, Industry and Competition (dtic). Industrial parks are situated in Maluti-A-Phofung, Botshabelo and Thaba Nchu. The Maluti-A-Phofung SEZ (MAPSEZ) is situated in Tshiame in the northern part of the province, on the busy N3 highway.

The N3 transports vast amounts of cargo between Johannesburg and Durban, and the infrastructure at the MAPSEZ has been set up in such a way as to suit logistics operators. Manufacturing opportunities are also encouraged within the MAPSEZ and attractive concessions and allowances are available to investors. The key sectors that are being targeted are automotive, agro-processing, logistics, general processing, ICT and pharmaceuticals.

Contact

To find out about a specific opportunity or discuss your potential investment in the Free State, please contact the Free State Department of Small Business Development, Tourism and Environmental Affairs here:

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The East London Industrial Development Zone (ELIDZ) is positioning itself as a leading hub for South Africa’s Digital Economy, driving the transition toward an innovation-enabled, information-driven industrial ecosystem.

The sector integrates ICT hardware manufacturing, software development, business process outsourcing (BPO), and digital services, creating opportunities across both production and service-based technology industries.

Through the ELIDZ Science and Technology Park (STP), the zone provides an enabling environment for digital R&D, innovation incubation, and Industry 4.0 technology development connecting academia, industry, and government to accelerate applied research, software prototyping, and smart technology adoption.

Aligned with sustainability and ESG principles, the ELIDZ incorporates energy-efficient ICT infrastructure and responsible digital practices, offering investors a secure, future-ready platform to build scalable, globally competitive digital enterprises.

Targeted investors include BPO operators, ICT manufacturers, software developers, data service providers, and smart technology innovators seeking a cost-effective SEZ base serving both domestic and export markets.

Sector composition

The ELIDZ’s Digital Economy cluster encompasses:

• ICT hardware and component manufacturing
• Software development and digital service solutions
• Business Process Outsourcing (BPO) and shared services
• Smart city systems and IoT applications
• Artificial Intelligence (AI), automation, and data analytics

This sector attracts technology-driven enterprises of varying scales from global ICT manufacturers and digital service providers to startups and innovators developing next-generation smart solutions.

Mid- to large-scale firms benefit from reliable infrastructure, SEZ incentives, and advanced connectivity, while SMEs and startups gain access to innovation, incubation, research support and prototyping facilities through the STP.

Export-oriented companies leverage AfCFTA, BRICS, and EU trade frameworks to reach global markets, while market-seeking investors can serve South Africa’s growing demand for digital services and technology integration.

Why Invest in the ELIDZ Digital Economy sector?

• Smart, connected infrastructure: High-speed fibre connectivity, 5G readiness, and IoT-enabled utilities provide a robust digital foundation for technology operations.
• Science & Technology Park (STP) R&D access: Co-located innovation labs and research partnerships support prototyping, testing, and development in software, electronics, and automation.
• Smart City development platform: The ELIDZ serves as a living laboratory for Smart City and Industry 4.0 applications, integrating data systems for efficient, sustainable operations.
• Proven BPO and ICT ecosystem: Operational BPO facilities demonstrate the zone’s capacity to host globally competitive service operations and digital enterprises.
• Sustainability and ESG alignment: Energy-efficient infrastructure and ethical digital practices support responsible investment and green technology growth.
• Digitally skilled workforce: Partnerships with universities, TVET colleges, and digital academies ensure a steady pipeline of ICT, AI, and coding professionals.
• SEZ incentives and market access: Tax benefits, customs relief, and preferential access to African and international digital markets through AfCFTA, EU, and BRICS frameworks.

Value Proposition

The ELIDZ offers an innovation-led digital ecosystem that connects technology, research, and infrastructure to enable smart industry transformation and scalable growth.

Investors benefit from advanced connectivity, digital R&D access, and cost-effective operations within a secure, sustainability-aligned SEZ environment.

By merging automation, data intelligence, and digital skills development, the ELIDZ empowers technology enterprises to innovate, expand, and compete globally shaping the foundation for a smart, sustainable, and inclusive digital economy.

Competitive Advantages

• Integrated digital innovation ecosystem: Access to STP labs, incubation hubs, and research networks accelerating product development and applied innovation.
• Smart infrastructure readiness: High-capacity fibre backbone, 5G readiness, and digital utilities designed for data-intensive and connected operations.
• Proven BPO and ICT operations: Demonstrated success in attracting and sustaining globally competitive ICT investments.
• Skilled, adaptive workforce: Continuous digital skills pipeline developed through university and TVET partnerships.
• Cost-effective operating environment: Competitive costs simplified regulatory processes, and strong SEZ investor facilitation.
• Market connectivity: Seamless access to regional and global digital markets via AfCFTA, EU, and BRICS frameworks.
• Sustainability integration: ESG-conscious practices and energy-efficient infrastructure aligned with global sustainability standards.
• Smart City synergy: The ELIDZ functions as a digital living lab for integrated, technology-enabled industrial development.

With its advanced connectivity, innovation infrastructure, and proven BPO foundation, the ELIDZ is shaping South Africa’s next-generation digital innovation hub where technology drives opportunity, and innovation powers growth.

Interested in Digital Economy investment opportunities with the ELIDZ?

Contact Chris Ettmayr at 082 888 3297 or chris@elidz.co.za.

Or send Chris a message here:

[contact-form-7]

The Free State’s economy grew at an average annual rate of 0.38% over 10 years from R191-billion in 2013 to R342-billion in 2023. The province contributed 4.87% to the South Africa GDP of R7.02-trillion in 2023 and achieved an annual growth rate of 0.15% in the same year, which is lower than the country’s growth rate of 0.70%. It is our considered view that the province must aim to grow the Gross Domestic Product (GDP) at an average annual rate of 1.58%, or higher, from 2025 to 2028.

Strategic location is ideal for trade and investment

The Free State Province lies in the heart of South Africa between the Vaal River in the north and the Orange River in the south. The province is a gateway to the Kingdom of Lesotho which is surrounded by the South African provinces of Free State, KwaZulu-Natal and Eastern Cape.

The Free State is an ideal investment destination as it is blessed with abundant natural resources. The province is ideally located at the confluence of major logistics arterials and corridors such as the R30, N1, N6, N5, N8 and N3. This makes the movement of goods very economically viable.

Various infrastructure renovations and upgrading projects are underway and this will contribute to an improved investment climate.

The province is also an ideal destination for renewable energy projects, including solar PV, hydro and wind projects. In addition, the grid availability in the province presents an opportunity for investments in independent power producer (IPP) projects in the province. The Free State is also referred to as the breadbasket of the country as agriculture is a significant contributor to its GDP.

Investment opportunities

Renewable energy

The province is an ideal destination for renewable energy projects of all kinds. Good grid availability and enthusiastic investment facilitation present particularly attractive opportunities for investments in the province.

Mining and gas extraction

Although the mining sector is no longer dominant, coal, diamond and gold mining still make up an important part of the Free State economy. Natural gas was first discovered in a Virginia gold mine in 1947, and the mine has been producing combustible gas ever since. A massive amount of helium is produced as a byproduct of natural gas production.

The province has potential mining and beneficiation opportunities in commodities such as gold, diamonds, coal and rare earth elements. Sand and aggregate mining in the Free State province have become very attractive as part of supporting the construction ecosystem.

Special Economic Zones and Industrial Parks

The Maluti-A-Phofung Special Economic Zone (MAPSEZ) is strategically located on the key N5 and N3 logistics corridors which makes it an ideal investment destination. The MAPSEZ aims to attract R2-billion in new investments. Sectors prioritised in the zone are logistics, agro-processing, ICT, automotive, pharmaceuticals and manufacturing.

The 1 000ha estate is divided into four zones: agro-processing, light industrial, heavy industrial and a container terminal.

The Free State, working with the National Department of Trade, Industry and Competition (the dtic), is upgrading the industrial parks in Botshabelo, Thaba ‘Nchu and Phuthaditjhaba to provide infrastructure to encourage manufacturing in these areas.

The manufacturing and retail sectors provide attractive opportunities for investors in these industrial parks.

Agriculture

The Free State is blessed with abundant production of crops such as maize and sunflower, soya, wheat and potatoes. Livestock farming is also a dominant feature of our agricultural activities.

This region is one of the biggest producers of these crops and there are agri-processing investment opportunities linked to these primary products.

The annual National Maize Producers Organisation (NAMPO) festival is held just outside the border of the province in Bothaville, which is the headquarters of GrainSA.

It is thus imperative for investments into the agriculture sector to increase in this area as there is sufficient land for this. This will ensure a healthy growth over time so that Free State can reclaim its title of being the breadbasket of the country.

Tourism

The Free State Province is home to several strategic and unique natural and cultural assets that offer significant opportunities for tourism investment through strategic partnerships. This approach, which has shown success in the Kruger National Park, can be replicated in the Free State.

Collaboration between the public sector and private investors has the potential to develop high-end tourism facilities:

Sterkfontein Dam and Gariep Dam: These large dams are not only engineering marvels but also scenic spots perfect for developing luxury resorts, water sports and fishing activities. Private investors can build exclusive lodges and organise guided tours, capitalising on the breathtaking views and serene environment.

Clarens and Vredefort Dome: Known for its artistic community, Clarens in the eastern Free State is situated in the foothills of the Maluti Mountains. The Vredefort Dome near Parys is a UNESCO World Heritage Site and a unique geological wonder.

Both sites present opportunities for unique lodging experiences that blend luxury with natural and historical exploration. Boutique hotels and eco-lodges can offer guests a blend of comfort, art and heritage tours.

Mangaung: As the provincial capital, Bloemfontein offers potential for urban tourism. Investing in upscale hotels, conference centres and cultural experiences like museum tours and city heritage walks can attract both leisure and business travelers.

State resorts: Existing state resorts in prime locations present opportunities for upgrades and modernisation. Private-sector players can revitalise these resorts, introducing luxury accommodation, spa services and bespoke adventure activities tailored to discerning travellers.

Message to investors

Investments do not happen in a vacuum: a conducive environment has to be created to ensure that investors find a home in our province.

As part of encouraging inward investments, the province commits to reducing red tape and improving the ease of doing business. Our message to investors across the world is this:

Invest in the Free State, the province at the centre of it all!

Contact

Interested parties who wish to look deeper into any of the above mentioned opportunities are encouraged to send a brief message of introduction to the investment facilitation team:

Dube TradeZone 1 is fully operational and has become a hub for nearly 50 investors, including renowned international companies such as Samsung, Mahindra, DHL, Chem Energy, and PepsiCo-Futurelife.

These manufacturers are some that have leveraged the precinct’s prime location and multi-modal connectivity to service the sub-Saharan African market, as well as markets in Asia, Europe, and the United States.

In May 2024, Dube TradePort launched the second phase of its industrial precinct by securing seven private sector investors; four of these investors have already commenced construction of their facilities, bringing the total private sector investment secured by the zone to R4.6-billion.

Dube TradePort SEZ provides long-term notarial leasehold contracts to help commercial property developers lower upfront land costs and establish a lasting public-private partnership. This ensures that Dube TradePort SEZ remains invested in each development as the organisation grows over time.

Dube TradePort Special Economic Zone operates several businesses, namely:

• Dube Cargo Terminal: The most secure cargo terminal in Africa, which is directly linked to both King Shaka International Airport and Dube TradeZone. The terminal, through Dube AiRoad, also operates a fleet of dry and refrigerated trucks as well as commercial vehicles to bridge the last mile between road and airfreight.
• Dube TradeZone is a light industrial manufacturing, assembly, and logistics precinct. Providing an enabling environment for aerospace and aviation-linked manufacturing and related services; electronic manufacturing and assembly; medical and pharmaceutical production and distribution; clothing and textiles; and automotive component manufacturing.
• Dube City is a modern business and commercial centre within the King Shaka International Airport precinct.
• Dube AgriZone is Africa’s first integrated perishables supply chain, with world-class glass greenhouses, packhouses, and distribution centres. The precinct caters to: agriculture and agro-processing operators, including horticulture, aquaculture, and floriculture. It also houses a specialised tissue culture laboratory (Dube AgriLab).
• Dube iConnect provides voice and data services to developments within the precinct, as well as cloud computing solutions to businesses throughout South Africa.

King Shaka International Airport, owned and operated by Airports Company South Africa, has the longest sea-level runway (3.7 km) in South Africa and is capable of accommodating the latest-generation wide-bodied aircraft.

Contact Dube TradePort

Find out more: https://www.dubetradeport.co.za/

MAP SEZ offers 1 038 hectares of land for industrial development. Since the Durban port is the busiest in the southern hemisphere, it therefore means that the N3 carries the majority of the traffic to different locations in South Africa and neighbouring countries such as Lesotho and Swaziland. Through its cross-docking precinct and its logistics and warehousing sectors, the MAP SEZ presents itself as a solution to lighten the traffic pressure on the N3.

This Special Economic Zone (SEZ) is part of the Free State leg of the massive Durban-Free State-Gauteng logistics and industrial corridor that is intended to strengthen the logistics and transport corridor between South Africa’s main industrial hubs to:

• Improve access to export and import markets.
• Integrate Free State industrial strategy activities into the corridor.
• Create job opportunities and grow the economy within the region.

Investor benefits

Benefits that will be derived from locating within MAP SEZ include:

• 15% corporate tax instead of 28% corporate tax
• Building allowance
• Employment incentive
• Customs controlled area (CCA)
• 12i Tax allowance

What the MAP SEZ offers

• Lots of space – 1038 ha available to prospective investors
• Long-term lease periods which provide investors an opportunity to recoup investment on infrastructure
• Affordability in the form of concessions offered on rentals

Priority sectors

There are six priority sectors:

• Automotive
• Agri-processing
• Logistics
• General processing
• ICT
• Pharmaceuticals

SEZ project pipeline

There are various companies that have signed letters of intent to locate in the MAP SEZ. Some of the sectors targeted for establishment within the MAP SEZ are as follows:

• Logistics and distribution
• Agro-processing
• Food processing
• Rail-based container terminal (Transnet Freight Rail)
• Starch chemicals
• Biogas

MAP SEZ milestones

• MAP SEZ was launched on 25 April 2017 to operate as a Special Economic Zone.
• Maluti-A-Phofung SEZ was granted an operator permit in 2017 by the Minister of Trade and Industry after cabinet approval.
• Perimeter fencing and lighting have been completed.
• Bulk infrastructure roll-out is in progress and is 80% complete.
• The SEZ has developed a marketing and promotion pipeline which has attracted 24 potential investors with an estimated investment value of R2.6-billion and will create approximately 22 130 permanent and temporary job opportunities in the next 5 to 10 years.

Economic development

As part of its mandate, the MAP SEZ is intended to create decent work, transfer of skills and other social economic benefits. In line with this requirement, the MAP SEZ’s robust investment-promotion pipeline will allow the entity to create an estimated 22 130 permanent and temporary job opportunities in the Maluti-A-Phofung region over the next 5 to 10 years.

Contact

For more information or to discuss available opportunities, please contact the MAP SEZ:

Kindly use as reference in subject line the words MAP SEZ

Not only will the Namakwa SEZ (NAMSEZ) help to unlock the province’s economic potential, said Dr Saul, but it would be “the cornerstone of the Northern Cape Industrial Corridor”. The Industrial Corridor is an ambitious plan to link the province’s huge mineral resources near Kathu (iron ore) and Hotazel (manganese) with new port facilities and a green-hydrogen plant at Boegoebaai in the west.

The corridor follows the path of the N14 highway and include smelters and other beneficiation facilities within SEZs and industrial parks along an east-west axis. Plans to establish industrial parks at Kathu and Upington are well advanced to support the spatial thinking which underpins the Industrial Corridor strategy.

The NAMSEZ, with significant first investments being made by “anchor investments” from Vedanta Zinc International and Frontier Rare Earths, would, according to the Premier, “enable us to harness our mining throughput, facilitating both upstream and downstream integration and creating a robust, diversified economic ecosystem”.

The designation of the NAMSEZ marks the 12th such approval by the Department of Trade, Industry and Competition (the dtic), the implementing agent of South Africa’s SEZ programme. Of the 12, nine of the SEZs are operational, with one SEZ each in Limpopo and Mpumalanga sharing with NAMSEZ the status of being officially designated but not yet functioning.

The Coega SEZ in the Eastern Cape, regarded as one of the country’s more successful SEZs, has applied to expand its footprint in order to build a vaccine and pharmaceutical zone.

A further four proposals are being considered from four provinces, including from the North West which is currently the only province that does not have a designated SEZ. The Bojanala SEZ would have a focus on the platinum-mining industry and associated beneficiation, manufacturing and services.

Programme goals

The Special Economic Zone (SEZ) Programme aims to bolster export-led growth, increase investment into the country and create new jobs. There are five ways through which these goals are achieved:

• Investment attraction: Custom-control areas, incentives and secure operating environments are elements designed to attract investors.
• Job creation: By facilitating new investments and supporting expansion, new jobs, particularly in manufacturing, are created.
• Infrastructure: SEZs develop new and improved infrastructure.
• Skills: SEZs can support education and vocational training, particularly in technology.
• Export promotion: Favourable terms and conditions for manufacturers aiming at international markets make for a good investment proposition. This supports the goal of diversifying the national economy.

At the end of Q2 2024, the dtic reported that the nine operational SEZs had garnered a cumulative investment value of R30.9-billion and created a total of 27 021 permanent employment opportunities.

Beyond designations

Policy related to SEZs continues to evolve. In the decade to 2010, four Industrial Development Zones (IDZs) were proclaimed at Coega (Gqeberha), East London, Richards Bay and OR Tambo International Airport (Gauteng). The passing of the SEZ Act No 16 of 2014 shifted the policy focus and by 2019 a total of nine SEZs had been proclaimed.

In the same year, national government tasked the dtic with playing a more active role in the “planning, development and management of SEZs” and all three spheres of government were to be involved in planning. Municipalities and provincial authorities would be asked to make budget commitments for bulk infrastructure and initial operational funding while support for the development of top structure would be forthcoming from the dtic.

This approach was implemented for the first time in the rolling out of the Tshwane Automotive (TASEZ), which has become of the country’s most successful SEZs.

In addition, a National SEZ Programme Management Unit was established, located at the Industrial Development Corporation (IDC). This means that new applicants have a ready resource to call on for advice and support.

In the course of 2025, a series of meetings and consultations were held as the dtic sought input on a draft Spatial Industrial Development Strategy (SIDS). The SIDS, according to the dtic, “proposes a reimagined model for SEZs, industrial parks and township economic development”.

In explaining why a group of influential CEOs had been invited to attend a meeting in Johannesburg in June, the Deputy Minister of Trade, Industry and Competition, Zuko Godlimpi, said, “This CEOs Forum is not just a meeting of minds; it is a strategic platform to ensure our Spatial Industrial Development Strategy is responsive, inclusive and grounded in the lived realities of business and communities across the country. We want a framework that reflects the voice of industry and responds to regional economic disparities through practical and impactful interventions.”

Godlimpi stressed that, “Special Economic Zones remain one of the dtic’s flagship programmes to catalyse investment, create decent jobs and strengthen export competitiveness.” He noted that the refined strategy aimed to position SEZs “not just as isolated economic pockets”, but rather as integrated drivers of regional and national transformation.

Speaking at the event, SEZ Special Advisor at the dtic, Maoto Molefane, emphasised that a shift in emphasis had taken place when he said, “We are no longer in the business of issuing SEZ licences. Our job is not to designate for the sake of designating. Our job is to industrialise this country.” He added, “The designation of an SEZ should find us already on the ground doing the work to support investments.”

Molefane proposed that a strategic rethink of the SEZ framework was needed, based on lessons from the programme’s trajectory and on the material conditions faced by investors and communities.

The SEZ PMU was cited as an example of a new way of doing things in the new dispensation around SEZs. Apart from providing the technical support referred to above, it would also ensure greater national oversight, assist in the building of essential infrastructure for the creation of a new SEZ and make sure that firm investment commitments were made before any new designations were proclaimed.

Molefane referenced a key element of the proposed SIDS, “The draft strategy also responds to spatial and economic disparities by prioritising geographic areas with industrial potential, even those without designated SEZs. This ensures that township economies, underutilised industrial parks and marginalised municipalities are not left behind in the national effort to reindustrialise. There is a need for coherence and collaboration across all levels of government to deliver impactful, place-based interventions.”

According to a record of the meeting issued by the dtic, the forum noted the good progress made by zones such Coega, East London, Dube TradePort and the Tshwane Automotive SEZ, while “acknowledging the ongoing work required to integrate black industrialists, link small businesses and align SEZs with broader regional development”.

Special Economic Zones in South Africa

Special Economic Zones are located in areas with particular resources and historical sectoral strengths. The relevant SEZs are geared to serve, support and encourage development of those resources and sectors across South Africa.

There are currently 12 designated Special Economic Zones in eight provinces. Nine are approved and functioning and three have been approved and are in various states of preparation. A further four (in the North West, Northern Cape, Limpopo and Gauteng) are in the process of applying to be recognised as SEZs.

In addition, Coega SEZ in the Eastern Cape is in the process of applying to expand to accommodate a dedicated vaccine and pharmaceutical facility.

There are ongoing developments throughout the country related to projects that may become SEZs. These include a plan to establish a clothing and textiles hub near Ladysmith in KwaZulu-Natal (to become the uThukela Special Economic Zone). Work on infrastructure for the Kathu Industrial Park is ongoing in the Northern Cape.

Such is the value attached to SEZs that a continental body, the African Economic Zones Organization (AEZO), represents and lobbies on behalf of the public and private institutions which run and promote SEZs in Africa.

Founded in 2015, the AEZO is an important forum for information exchange. The body holds regional workshops and an annual meeting. The 2024 meeting was hosted by Kenya’s Special Economic Zones Authority (SEZA) and that country’s Ministry of Trade, Investments and Industry under the theme “Building resilient, inclusive and sustainable economies: the role of African SEZs in attracting impactful investments and redefining competitiveness.” More than 400 delegates gathered at the Kenyatta International Convention Centre (KICC) in Nairobi to share ideas.

The AEZO reported in 2021 that Africa had about 203 active SEZs with another 73 in development.

SEZA is an example of a national coordinating body for SEZs. Others on the continent include the Nigeria Economic Zones Association (NEZA), the Special Economic Zones Authority of Rwanda (SEZAR) and SEZA Botswana.

Kenya has no fewer than eight types of SEZ, ranging from ICT Parks and Science and Technology Parks to Free Trade Zones and a Free Port Zone. Some countries house their SEZ policy and promotion under national departments such as South Africa’s Department of Trade, Industry and Competition (the dtic), or as is the case in Ethiopia, with bodies such as the Ethiopian Investment Commission (EIC).

Botswana has or is planning nine SEZs. Each caters for the strengths of its specific location and aims to add value to raw products for export, another typical feature of the SEZ model. The Sir Seretse Khama International Airport Special Economic Zone obviously has an aviation focus, but also presents itself as a hub for diamond beneficiation. The others are Fairgrounds (finance and technology), Francistown (mixed use, mining and logistics), Greater Palapye (energy and beneficiation of coal), Lobatse (meat and leather), Pandamatenga and Tuli Block (agro-processing), Selebi Phikwe (mixed use) and Sowa Town (beneficiation of salt and soda, chemicals).

The AEZO reported in 2021 that Africa had about 203 active SEZs with another 73 in development. Zones are present in 47 of the continent’s 54 countries, with the largest number of zones in Morocco, Nigeria, Egypt, Ethiopia and Kenya.

Nearly 150 000 hectares is devoted to Special Economic Zones on the continent while over $2.6-billion in investments has been made into a wide variety of sectors such as agro-processing, manufacturing and services. With many SEZs being linked to ports, logistics is naturally a big sector for SEZs and a recent trend has seen the growth in investment in energy.

Some zones are specifically targeting energy production, and more specifically renewable energy. In Egypt, the Suez Canal Economic Zone (SCZONE) in 2022 signed a preliminary agreement with Indian company ReNEW Power for 220 000 tons of green hydrogen production, with an investment value of approximately $8-billion. This was the eighth such agreement that SCZONE has signed with the aim of localising and manufacturing green fuels. Some of the other partners include Maersk, Scatec and EDF Renewables.

African SEZs

The first African SEZ was launched in 1970 by Mauritius, and Ghana and Senegal followed with zones of their own by the end of the decade.

The merger in 2013 of the Kigali Free Trade Zone and Kigali Industrial Park in Rwanda led to the establishment of the Kigali Special Economic Zone (KSEZ). Since then, at least eight other zones or industrial parks have been successfully launched, including the Bugesera SEZ and facilities in the towns of Rwamagana, Muhanga, Nyagatare, Musanze, Huye, Nyabihu, Rusizi and Rubavu.

Both Rwanda and Mauritius were singularly successful in achieving the goals they set for their SEZs. Rwanda wanted to boost employment by producing goods for export. Within three years, 3% of its workforce was employed in the newly established SEZ while Mauritius succeeded spectacularly in processing and selling sugar to the EU, boosting both export income and employment (Inclusive Society Institute).

A feature of the Mauritian story was the fact that European processing companies led the process. The government leaned heavily on the private sector to achieve its national development goals and research supports the idea that the best model for ownership or management of SEZs is a combination of public and private.

Many ownership options are available, all the way from wholly government controlled to a licensing arrangement with a private entity. One option is for a private investor responsible for the establishment of the SEZ to be given a lease of a set number of years, after which the facility reverts to the government.

Nigeria celebrated three decades of the Special Economic Zones programme in 2022. The website of the Nigeria Export Processing Zones Authority (NEPZA) states that it has more than 40 “free zones” but under “active” free zones, eight are listed, including some with the name of a private corporation (Dangote Industries FZ) and others representing a major city such as Calabar Free Trade Zone (CFTZ). The Lagos Free Zone, connected to the Lekki Deep Sea Port and administered by Singapore-based Tolaram, and the Eko Atlantic Free Zone are among the best known of the West African country’s SEZs.

Government role

Government’s main roles are to provide legislative certainty and good infrastructure. Where both are present, SEZs are far more likely to succeed. A failure to provide adequate transport or power infrastructure will deter private investors, as will a legislative framework that changes every few years.

The other key government role is to determine the level of incentives available to investors in an SEZ.

Objectives of industrialisation, regional development and employment creation are typically cited as the goals of SEZ programmes. They can also contribute to businesses being created.

In Mozambique a mining company, Kenmare Moma Mining, has helped establish the MozParks Topuito Agro-Industrial Park in Nampula Province as an innovation centre to support startups in getting access to the value chain. MozParks, the other partner in the venture, is the developer and operator of agro-industrial parks.

As an AEZO newsletter noted with respect to SMEs: “In emerging markets, where they account for 90% of all firms and 50% of all jobs created, SMEs constitute the backbone of the global economy. The impact is greater in Africa, where SMEs employ almost 80% of the labour force on the continent. Although SMEs are a substantial economic force, there is still a lot of room for expansion.”

An Occasional Paper published by the Inclusive Society Institute in 2023, “Leveraging special economic zones for growth”, notes the fiercely competitive environment in which SEZs operate globally. Morocco’s successful policy is highlighted in this regard. Investors in any one of the country’s seven SEZs paid no corporate taxes for five years and pay reduced rates after that. Various other low rates of tax and generous exemptions are applied. Morocco’s exports are now valued at over $2-billion, with international aeronautics companies now manufacturing in the country for export.

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