HANDING OVER THE DUBE TRADEPORT INDUSTRIAL DEVELOPMENT ZONE TO KWAZULU-NATAL PROVINCE

HANDING OVER THE DUBE TRADEPORT INDUSTRIAL DEVELOPMENT ZONE TO KWAZULU-NATAL PROVINCE

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 five per cent growth rate by 2019.

Given the relentless unemployment, the pursuit of economic growth and job creation remains high on our agenda as government.

Our presence here today, is another step forward in our work towards creating more jobs that would alleviate poverty amongst 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.  

We are happy to join you at this official launch of the Dube Tradeport IDZ, which takes forward our industrialisation and development goals.

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 would amount to 5,6 billion rand by 2060.

This estimated at 0.5 per cent of South Africa’s GDP.

The main sectors that would benefit from the Dube Tradeport operations are the following;

·                Electronics manufacturing and assembly;

·                Aerospace and aviation-linked manufacturing and related services;

·                Agriculture and agro-processing, inclusive of horticulture, aquaculture and floriculture;

·                Medical and pharmaceutical production and distribution; and

·                Clothing and textiles.

Compatriots and special guests,

This 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.

This 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 Industrial Development Zones will automatically receive Special Economic Zone 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 Special Economic Zones:

§  Value Added Tax exemption and Customs Duty Free,

§  Section 12i Tax Allowance,

§  Fifteen per cent corporate tax rate,

§  Building Tax Allowance, and

§  The Employment Tax Incentive.

Ladies and gentlemen,

We have reason to be happy and optimistic about our industrial development zones.

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 Industrial Development Zone in Port Elizabeth has attracted over 1, 8 billion rand in investments.

The East London Industrial Development Zone has attracted over 500 million rand in investments. The Saldanha Industrial Development Zone, though new and not fully developed, has already attracted interest of 19 potential investors who would like to be located there. 

The Dube Tradeport Industrial Development Zone has already attracted over 900 million rand 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 one hundred and fifty thousand two hundred and twenty five (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.

Ladies and gentlemen

The Dube TradePort Industrial Development Zone is indeed yet another good story to tell.

It reflects our willingness to create partnerships between 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, 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 special economic zones 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.

Ladies and gentlemen

I would like to congratulate the Provincial Government of KZN, Dube TradePort Management, Minister Rob Davies and the Department of Trade and Industry on this important milestone and roll 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.