33 minute read
Special Economic Zones
Several SEZs are focussing on green energy and green technology.
Akey component of the strategy to boost the value of South African mineral and agricultural products is to develop infrastructure where manufacturing can take place, namely Special Economic Zones (SEZs) and industrial parks.
South Africa has 12 registered SEZs and several more are in the planning or registration phase.
National and provincial incentives are in place to attract investors to the SEZs, with the added benefits of existing infrastructure and access to companies relevant to an investor’s value chain. A 2021 report by the Centre for Development and Enterprise has suggested that the zones are not sufficiently special, and that experimentation with greater flexibility in terms of labour regulations would reap dividends. The CDE notes that if companies were exporting, the issue of competing with local concerns would not arise. The CDE has suggested the Coega SEZ as the site for such an experiment.
Each province has been allocated SEZs that play to regional strengths. Limpopo has two SEZs, both of which aim to use the province’s rich mineral resource as a base for other economic activities. One is already attracting investors and the other is in the process of being registered. The Musina-Makhado SEZ (MMSEZ) in the far north and the Fetakgomo-Tubatse SEZ (FTSEZ) in the east are central to the strategy of expanding Limpopo’s manufacturing capacity. Building new industrial parks and reviving existing areas support the same goal.
As of February 2020, Shaanxi CEI Investment Holdings had committed to a $5-billion investment in a vanadium and titanium smelter project at the MMSEZ and a further $1.1-billion had been pledged from other sources. The first-phase focus is on energy and metallurgical processes but agroprocessing, logistics and general manufacturing are expected to follow.
The FTSEZ is located in the heart of the one of the most mineral-rich localities on earth, the
GRI Towers South Africa is making wind turbine towers in the Atlantis SEZ, a green technology hub. Credit: Gestamp Renewable Industries
eastern limb of the Bushveld Igneous Complex which includes the Merensky reef. Dozens of mining operations are in the Sekhukhune District, all of which need mining supplies. A Mining Input Suppliers Park has been developed and a budget of R20-million has been allocated for the integration of that facility into the SEZ.
The existence of the mines and the supplier park will be leveraged to create opportunities to industrialise the manufacturing of these supplies and also to beneficiate the mined product. The broader aim is to build the regional economy with strong upstream and downstream links in the mining value chain, particularly with regard to platinum group metals (PGMs).
Within the Fetakgomo-Tubatse SEZ there are opportunities for investors in the manufacture of: • Vehicle components designed for green hydrogen fuel cells and electrolytes energy from PGMs. • Vehicle batteries and related components. • Auto-catalysts from PGMs. • Components for vehicle and trucking industry (and assembly of the same).
Investors in education and skills are invited to collaborate with MERSETA, the Limpopo Economic Development Agency (LEDA) and companies in the mining sector.
Green focus One of the unique selling propositions of the FTSEZ is in its potential as a hub for green technology, both in terms of energy generation and in terms of manufacturing. It is being billed as a “Centre of Excellence on advanced energy technology”.
Several minerals and metals mined in the area are vital components for the manufacture of items that the world needs to transition away from a fossilfuel economy to a greener, renewable future. This includes hydrogen fuel cells and battery technology. A pre-feasibility study related to battery minerals is underway at the Burgersfort Nickel Project.
Another SEZ that is tackling the challenges of the green economy is the Atlantis SEZ, about 40km north of Cape Town.
The focus at Atlantis is green manufacturing such as solar panels, wind turbines and battery storage. With the South African automotive manufacturing sector heavily dependent on exports, it will have to comply with tougher environmental requirements being implemented in Europe, the US and the UK. The year 2030 has been designated as the last for the petrol car in Europe. Atlantis intends to be the site for the manufacture of the components that will cater to the new market for cleaner vehicles.
Two of the earliest investors at Atlantis SEZ are Kaytech, manufacturers of construction sheeting made out of recycled plastic, and GRI Towers South Africa, a subsidiary of the giant international renewable energy company, Gestamp Renewable Industries.
Making industrial parks themselves greener is the focus of a programme of the National Cleaner Production Centre (NCPC) in partnership with the National Department of Trade, Industry and Competition (the dtic) and the United National Industrial Development Organisation (UNIDO).
The Glencore Magareng Chrome Mine opened in 2011 and is one of the many mines in the vicinity of the Fetakgomo-Tubatse SEZ. Credit: Glencore
The Global Eco-Industrial Parks Programme (GEIPP) aims to create eco-industrial parks out of older, dirtier facilities. The first three parks to be targeted are the state-owned parks in East London (ELIDZ) and in the Free State (Phuthaditjhaba Industrial Park) and Gauteng (Ekandustria).
The key components of the GEIPP are: • Park management services and governance. • Resource-efficient and cleaner production. • Industrial and infrastructure synergies. • Healthy and integrated workforce and industryurban synergies. • Special planning and zoning.
Areas of focus Fairly near to Atlantis is the Saldanha Bay SEZ, where the focus is oil and gas and marine engineering and related activities. As of October 2021, the SEZ had 35% occupancy and has launched a facility to support small, medium and micro-enterprises (SMMEs) in terms of workspace and Internet connectivity.
In the Pretoria area, already home to several Original Equipment Manufacturers (OEMs), the Tshwane Automotive Special Economic Zone (TASEZ) has been launched. It is a joint project of the Gauteng Province, the Department of Trade, Industry and Competition, and the City of Tshwane. The implementing agent is the Coega Development Corporation (CDC), the developer and operator of the Coega Special Economic Zone.
Coega SEZ is at the Port of Ngqura near Gqeberha (formerly Port Elizabeth) in the Eastern Cape and it too has an automotive component, recently strengthened by the large investment of the Beijing International Automobile Corporation (BIAC). East London’s Industrial Zone has many companies that sell to and service the nearby Mercedes-Benz plant while both coastal SEZs have a strong suite in logistics and are planning expanded aquaculture parks.
Energy is a key infrastructural requirement for the growth of any economy, and SEZs are playing a role. The Coega SEZ has been named as the site for one of two liquefied natural gas (LNG) plants to be built (if partners can be found) in terms of the national gas-to-power plan.
The Richards Bay Industrial Development Zone (RBIDZ) in KwaZulu-Natal is the other site designated for a LNG plant, with the capacity planned for 2 000MW. RBIDZ is also the location of a new biomass plant.
The OR Tambo SEZ in Gauteng underscores Ekurhuleni’s strengths in manufacturing and logistics. The OR Tambo SEZ has launched the biggest food processing operation in the southern hemisphere (and the world’s second-largest refrigeration plant). With a special focus on exportoriented value-added industry, the OR Tambo SEZ leverages its connection to the country’s busiest airport. The focus of this SEZ is on agro-processing, jewellery manufacturing and mineral beneficiation as well as the development of hydrogen fuel cell technology. The SEZ is a subsidiary of the Gauteng Growth and Development Agency (GGDA). ■
10 REASONS
WHY YOU SHOULD INVEST IN SOUTH AFRICA
01.
HOT EMERGING MARKET
Growing middle class, affluent consumer base, excellent returns on investment.
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MOST DIVERSIFIED ECONOMY IN AFRICA
South Africa (SA) has the most industrialised economy in Africa. It is the region’s principal manufacturing hub and a leading services destination.
LARGEST PRESENCE OF MULTINATIONALS ON THE AFRICAN CONTINENT
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05.
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06.
ABUNDANT NATURAL RESOURCES
SA is endowed with an abundance of natural resources. It is the leading producer of platinum-group metals (PGMs) globally. Numerous listed mining companies operate in SA, which also has world-renowned underground mining expertise.
ADVANCED FINANCIAL SERVICES & BANKING SECTOR
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07. 08.
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A massive governmental investment programme in infrastructure development has been under way for several years. SA has the largest air, ports and logistics networks in Africa, and is ranked number one in Africa in the World Bank’s Logistics Performance Index.
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09. 10.
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SA offers a favourable cost of living, with a diversified cultural, cuisine and sports offering all year round and a world-renowned hospitality sector.
MESSAGE Limpopo’s Special Economic Zones to drive industrialisation
MEC for Economic Development, Environment and Tourism Thabo Mokone invites investors to be part of an exciting journey to creating a green energy supply to bolster localised manufacturing.
MEC Thabo Mokone
The Provincial Government of Limpopo invites investors to partner with us in developing a low-carbon green economy while at the same time enhancing energy security and developing local industries.
Special Economic Zones (SEZs) are the key tools within our Economic Reconstruction plans to ensure that we create sustainable job opportunities for all. This applies to both the Fetakgomo-Tubatse SEZ as well as the Musina Makhado SEZ.
True development is about people When South Africa achieved democracy nearly three decades ago, who would have dreamed of a Special Economic Zone in the Steelpoort area. But today, a Special Economic Zone is our new reality.
The proposed FTSEZ is gearing up to become a centre of excellence for green energy manufacturing, agro-processing and mineral beneficiation. The SEZ is positioned to be a game-changer in shaping and adding momentum to the industrialisation growth path as espoused in the socio-economic recovery plan of Limpopo Province.
It is strategically located in the industrial hub of Steelpoort between two huge mining establishments, the Samancor smelter and the Lion ferrechrome smelter, which are strategic landmarks for the establishment of the SEZ.
The Fetakgomo-Tubatse SEZ will not only play the role of a consumer of hydrogen in the Special Economic Zone but will strive to become a producer of hydrogen and other clean energy technologies.
In Limpopo we see the Hydrogen Economy as a potential game-changer to reindustrialise the provincial economy.
For the Fetakgomo-Tubatse SEZ, the Hydrogen Valley platform has the potential to drive the demand for mining inputs supplies, thereby creating an opportunity for large-scale industrialisation for both the manufacturing of mining inputs and the beneficiation of mining outputs.
The efforts which we have put into FetakgomoTubatse SEZ have so far led to us acquiring: • 1 220ha of land. • An EIA process is currently underway. • The application for a Record of Decision (RoD) process has commenced. • The SEZ Master Plan (Development Framework) and layout is complete with full infrastructure designs and costs in readiness for infrastructure roll-out. • 16 companies have shown a keen interest in the
SEZ by signing letters of intent (combined investment value of approximately R38-billion). • Four companies have shown a readiness to locate inside the SEZ by 2022. A due diligence process is underway.
We envisage creating 8 000 jobs in the short term and 20 000 jobs in 10 years. The main objective of this SEZ is to develop a low-carbon green economy which will offer promising opportunities not only to fight climate change, but to enhance energy security and develop local industries.
The strategic aim of the SEZ is to develop a green primary energy supply for localised manufacturing of both upstream and downstream activities of the platinum group metals and chrome value chains.
Our passion in ensuring operational Special Economic Zones within local municipalities as well as working with various private partners is a clear indication that we are committed to “Building better communities together”. ■
Deputy Minister oversight visit highlights SEZ potential
The Fetakgomo-Tubatse Special Economic Zone will establish a centre of excellence for green energy technology and mineral beneficiation as well as manufacturing of mining equipment.
The Deputy Minister of Trade, Industry and Competition, Mr Fikile Majola, conducted an oversight visit to the proposed Fetakgomo-Tubatse Special Economic Zone in Steelpoort, Limpopo, in October 2021.
Deputy Minister Majola was joined by the MEC for Economic Development, Environment and Tourism in Limpopo, Mr Thabo Mokone, MEC for Finance in Limpopo, Mr Seaparo Sekwati, the Executive Mayor of Sekhukhune District Municipality, Councillor Stanley Ramaila, and the Acting Mayor of FetakgomoTubatse Local Municipality, Councillor Hlatsoayo.
The purpose of the oversight visit was to assess progress registered in the implementation of the proposed Special Economic Zone (SEZ) project and to meet with potential private sector partners. According to Mr Majola, the visit was part of a consultative process on the SEZ Programme. Information on the new approach in the implementation of the Programme was also shared.
“This new approach encourages collaborative engagements through which the implementation of the SEZ Programme is aligned with national, provincial and local objectives, as well as planning strategies to maximise synergies and promote cooperation. This will result in provinces and municipalities benefiting from strong National Government support in areas of limited capacity,” said Mr Majola.
He added that the South African Government was seeking to transform the economy into a globally competitive economy, built on the full potential of all citizens and regions.
“To achieve this, the government is driving a robust industrialisation agenda supported by Spatial Industrial Development Programmes such as the SEZ Programme. Our department is driving the SEZ Programme as one of the strategic interventions to catalyse economic and industrial development in the country,” he added. ■
Solly Kgopong, Executive Manager Solly Kgopong is the Executive Manager of the FetakgomoTubatse SEZ. Before joining the Department for Economic Development, Environment and Tourism, he was General Manager of Absa Bank. His work experience started as Business Analyst at Trade and Investment Limpopo until he became Executive Manager Strategic and Economic Planning. During this period, Solly was a part-time lecturer at the University of Limpopo. A USA-Mandela Scholar Alumni, Solly holds a MSc in Economics degree from the Ohio State University. He was recently seconded to Head the Fetakgomo-Tubatse SEZ Project Management Unit by the Provincial Government. Bunjiwe Gwebu, Project Executive Bunjiwe Gwebu is the Project Executive for the Fetakgomo-Tubatse Special Economic Zone, having joined the Limpopo Economic Development Agency in 2014 when the Special Economic Zones programme was being rolled out nationally. She is an Economic Development Specialist who holds a Master’s in Development Studies from the University of KwaZulu-Natal. She has held positions at executive and senior management levels in government and nongovernmental institutions such as eThekwini Municipality, Slum Dwellers International, uTshani Fund and the Housing Development Agency where she was responsible for strategy, programme planning and management, implementation and monitoring and evaluation.
SEZ project pipeline
A globally recognised Centre of Excellence for Green Energy Technology and Mineral Beneficiation
Tubatse SEZ – Getting Platinum Moving- A world centre of excellence for PGMs.”
Fetakgomo-Tubatse SEZ, as depicted in the SEZ Master Plan.
DSI | Turner & Townsend | LEDA
The Fetakgomo-Tubatse Special Economic Zone received from the Limpopo Department of Economic Development, Environment and Tourism an allocation of R35-million (FY 2021/22) which was earmarked for the following activities and projects: District Skills Audit, environmental impact assessments (EIAs), township establishment (land rezoning), engineering designs and costing for the perimeter fence, site clearance, Eskom cost estimation and acceptance of quote, engineering designs for an Eskom switching station, water allocations (assessment of demand per industry), an Implementation Readiness Study and engineering designs.
The whole R35-million is committed to the enlisted projects.
Existing and current projects in the District
Project
Steelpoort Wastewater Treatment Works Value
R70-million
Steelpoort Water Treatment Works R65-million
Ga-Malekana Water Treatment Works upgrade
R37 and R555 main roads R121-million
R2-billion
Steelpoort railway siding Not given
Regional External Master Plan R1.6-million
Steel Bridge upgrade R70-million
SEZ human settlement scoping report Not given Responsible institution Status
DBSA/Sekhukhune District Municipality Existing WTW on private land. Construction at Steelpoort.
DBSA Complete.
Sekhukhune District Municipality Technical report approved; planning stage.
SANRAL
Transnet Underway.
Initiation phase.
Sekhukhune District Municipality Initiation phase.
Roads Agency Limpopo and mining companies Initiation phase.
CoGHSTA/HDA Underway.
Why businesses locate astructure suin the FT-SEZpporting the SEZ
Outstanding incentives and world-class facilities.
The 348-million cubic metre capacity De Hoop Dam ensures reliable water supply for investors in the Special Economic Zone.
The Fetakgomo-Tubatse SEZ provides a secure business environment and is designing a world-class manufacturing and logistics platform that will be positioned to support transportation efficiencies through road, rail and heliport connectivity to ports and border posts.
As part of the SEZ Master Plan, the environmental impact assessment (EIA) is expected to be ready for 2022.
A number of infrastructure new builds and upgrades are underway, including: • Security and site clearance • Extension of rail link to the SEZ industries and to the Musina-Makhado SEZ (Beit Bridge) • Electricity substation designs underway for substation • Upgrading of R37 and R555 roads • Building of new steel bridge • Engineering works for piping water from the
De Hoop Dam to the SEZ site
17
Why businesses locate to the FTSEZ • Enabling infrastructure and warehouses • Close proximity to mining operations • Carbon credits • Reduced carbon tax • Reliable and low-carbon green energy • Global leadership in production of chrome and huge resources of platinum group metals • Land and security • State-of-the-art top infrastructure • Water provision • Reliable road and rail network
Generic SEZ incentives • Vat and customer relief • Employment tax incentives • Building allowance • Reduced corporate income tax (15% corporate tax) • 12i tax allowance and incentives • One Stop Shop Facility
Distances to key points• Infrastructure (water, roads and electricity) is in place • Port of Maputo (Mozambique) 380km • 11419 m2 of industrial space is available • Port of Richards Bay 600km • 130 000 m2 of developable land is available and ready for top structure • Musina Beit Bridge Border Post 400km
The Mining Inputs Supplier Park has more than 11 000m² of industrial space available now with a further 130 000m² of land available for development and ready for top structures to be installed. Water, roads and electricity are in place.
For more information contact:
Fetakgomo –Tubatse SEZ PMU Address: Southern Gateway Extension 4, N1 Main Road, Polokwane, Limpopo Tel: +27 82 455 4220 and +27 76 521 5077
Limpopo Economic Development Agency (LEDA) Address: PO Box 760, Enterprise House, Lebowakgomgo 0737 Tel: +27 15 633 4700 | Email: info@lieda.co.za Website: www.lieda.co.za
Prime location in Limpopo’s mining hubLOCATION OF THE SEZ
TUBATSE
DSI | Turner & Townsend | LEDA
The proposed Fetakgomo-Tubatse SEZ (FTSEZ) is located in the south-east of the Limpopo Province of South Africa. It is hosted by the Fetakgomo-Tubatse Municipality in Sekhukhune District and is located within the Bushveld Igneous Complex (Eastern Limb), which hosts the well-known Merensky Reef in the Limpopo Province.
The area boasts one of the highest concentrations of rich mineral resources in the world and is a global leader of platinum group metals and chrome resources, hosting over 40 mining operations which also includes vanadium, iron ore and selected battery minerals. The FTSEZ is projected to be a catalyst for economic growth, industrialisation and mineral beneficiation by localising the various links of the value chain, both upstream and downstream.
The proposed FTSEZ forms part of the South African Government’s SEZ Programme which is aiming to enhance the country’s manufacturing
and export capabilities and attract foreign direct investment. Anchored in the Limpopo Development Plan (LDP), the FTSEZ is positioned and designed to be a top investment destination for companies seeking to be at the forefront of pushing the green energy “Just Transition” frontier outward, towards communities, towards local and international firms and markets seeking to build lowcarbon economies. The priority industries in the FTSEZ will enhance local manufacturing capacity and contribute to a low-carbon THE FETAKGOMO-TUBATSE SPECIAL ECONOMIC ZONE/INDUSTRIAL HUB green economy which will offer socio-economic opportunities (for jobs and small businesses), not only to fight climate change, but to enhance energy security and develop local industries over the next five Tubatse Special Economic Zone is hosted by the FetakgomoTubatse Municipality in the Sekhukhune District and is located within the Bushveld Igneous Complex (Eastern Limb), which hosts the well-known Marensky reef in the Limpopo Province. to 10 years. The FTSEZ is being developed in a quadripartite partnership between the Department of Trade Industry and Competition (dtic), the Limpopo Provincial Government, Sekhukhune District The demand for mining input supplies created an opportunity Municipality and Fetakgomo-Tubatse Municipality. ■ for large-scale industrialization for both the manufacturing of mining inputs and the beneficiation of mining outputs. The aim is to support a broader-based industrialization growth path, balanced regional industrial growth and development of more competitive and productive regional economies with strong upand downstream links in strategic value chains, especially in PGMS. 1220 ha of land has been identified for the development of this state-of-the-art Centre of Excellence on advanced energy technology
FETAKGOMO TUBATSE SEZ/INDUSTRIAL HUB
Targeted commodity clusters at Fetakgomo-Tubatse SEZ
Varied investment opportunities.
Identified Cluster Opportunities Agro-processing Development of ICT infrastructure
Mineral Beneficiation • Chrome, platinum group metals, iron ore and magnetite • Development of platinum refinery
Green Energy • Production of solar and biomass energy • Hydrogen energy from fuel cells as part of the South African Hydrogen Valley led by the
Department of Science and Innovation
Manufacturing • Production and refurbishment of batteries • Auto-catalysts • Green energy automotive components and electric vehicles (manufacture and assembly) • Trucking components • Mining machinery, equipment and components
FTSEZ Implementation Approach The Tubatse Hydrogen Valley and Mineral Beneficiation Journey Phase 1: West of R555: Integrate the 36ha Mining Integrated Supply Park (MISP), set up top infrastructure, fence and clear 280ha site. Anchor Investments: Input manufacturing suppliers and green vehicle components cluster. Phase 2: East of R555: Clear site and fence the 980ha site and provide bulk services and begin housing development. Anchor investments: Renewable energy companies, smelter and refinery and chrome products. Phase 3: Design and build a logistics hub for export markets. Just-on-time delivery and efficiencies. Anchor investments: Logistics Hub Station with a strong 4IR platform. Green automotive technology is a key focus of the FTSEZ.
Construction Phases of FTSEZ The Fetakgomo-Tubatse SEZ will cover a total area of 1 220ha of land. Phase 1 consists of 316ha which is reserved mainly for a mix of light and heavy industrial use and other hydrogen energy related uses, while Phases 2 and 3 will be developed in line with market demands and will include: • Renewable energy • Heavy industry • Additional light industry space • Mixed use and residential
More than six tenants have already committed to setting up operations for Phase 1 implementation in chrome-related beneficiation, hydrogen energy components assembly, electric vehicles, solar energy and pharmaceuticals. ■
Smelting operations will serve to beneficiate the many minerals found in the area. Credit: Amplats
Green technology manufacturers welcome at Atlantis SEZ
Business Development Executive Jarrod Lyons explains how the ASEZ offers a great location to trade with Africa and to benefit from South Africa’s renewable energy procurement programme.
The Atlantis Special Economic Zone (ASEZ) for green technologies is located on the West Coast of South Africa, in the Cape Town Metro. The zone is dedicated to manufacturing and provision of services in the green technology space. Wind turbines, solar panels, insulation, biofuels, electric vehicles, materials recycling and green building materials are examples of green technology that are welcomed.
The Atlantis Special Economic Zone SOC (ASEZCo) has undertaken over the past few years to establish itself as a globally-competitive company operating state-of-the-art infrastructure in Cape Town. The ASEZCo is equipped to assist both local and foreign investors in landing their green technology manufacturing investment in a seamless, well-managed process which eliminates unnecessary red tape and promotes a fast-tracking to market.
As a value proposition, the ASEZ offers Greentech manufacturers benefits from colocation and clustering. Our partners’ competitive advantage rests on making more productive use of inputs, which requires continual innovation. We achieve this through the Living Lab by providing our partners with a platform to share knowledge, resources and outputs in a manner which promotes profitability through resource efficiency.
Our established partnerships with tertiary institutions contribute to our ability to provide our partners with well-curated skills driven by their needs, as well as the needs of a transitioning, traditional, coal-based economy to a green economy.
The ASEZCo has enterprise development initiatives in place, which provide our partners with a suitable list of entities from which they can procure goods and services. Integration into our Living Lab bodes well for new partners, as we assist them in identifying collaborative opportunities with existing partners and facilitating engagements, which will lead to an
improvement in the overall triple-bottom-line of all partners located in the ASEZ.
New partners sought The Business Development Unit of the ASEZCo has placed a tremendous amount of its marketing energy in the community-focused communications and events for the direct benefit of the community. There comes a time, however, when community expectations need to be met. This can only be done through the landing of new and expansion of existing partners in the ASEZ with the view to create jobs and employment opportunities for the broader SMME network in the Atlantis and surrounding areas.
The Business Development Unit has taken the stance of a more commercially-focused entity by reaching out to specifically targeted investors who want to benefit from integrating into the Living Lab of the ASEZ.
The unit benefits from expertise in the green economy and leverages relationships with organisations like Wesgro and GreenCape to remain relevant in green economy investment promotion. With ASEZCo’s comprehensive understanding of Greentech value chains, the unit has the ability to identify partners with capabilities of servicing the needs of the South African and African Greentech markets.
Servicing the growing African market with green technologies which contribute to sustainable infrastructure development is a superb way in which SEZs can make a difference. The ASEZ for green technology manufacturing is perfectly suited to enhance trade opportunities with Africa and the rest of the globe as it is well located on the southern tip of Africa close to two ports with capabilities of landing and exporting bulk goods, as well as containers filled with sub-components.
With the awarding of 25 projects in Round 5 of the REIPPPP, and the stringent localisation requirements associated with the REIPPPP, the ASEZ is well positioned to capitalise on component manufacturing opportunities to service the IPP projects recently awarded. The ASEZCo is utilising this market opportunity to coordinate a collaborative sales pitch to partners which can establish their manufacturing facilities in the ASEZ.
This collaborative approach encompasses InvestSA (the dtic), Wesgro, InvestCT and GreenCape and has demonstrated significant success in the past. We continue to engage with potential partners with our ASEZ and are adamant that we will achieve significant success in this regard over the next 12 to 18 months. ■
CONTACT For additional information on investing in Atlantis Special Economic Zone and understanding the Greentech landscape in South Africa, please contact Jarrod Lyons at jarrod@atlantissez.co.za
The Atlantis SEZ has dedicated Infrastructure and Integrated Ecosystem (IES) teams. Integrated Ecosystem Executive Ellen Fischat explains how they help to create shared value.
The IES team, left to right: Christelle Brown, Ellen Fischat (Integrated Ecosystem Executive), Michael Webster, Ursula Wellmann, Charlotte Perang and Florenchia Solomons.
The Atlantis Special Economic Zone Company (ASEZCo) for green technologies aims to harness the green economy for growth and increased job opportunities.
It does this by driving sustainable, socioeconomic development and job creation, while positioning itself as a world-class eco-industrial park through its Living Lab. A Living Lab (LL), in contrast to a traditional laboratory, operates in a real-life context with a user-centric approach. The physical or organisational boundaries of a Living Lab are defined by purpose, scope and context. The scope, objectives, activities, resources and degree of participation and boundaries of a living laboratory are open for definition by its participants. These participants consist of multi-disciplinary stakeholders, from public to private sector, tertiary to research institutions and most importantly the local community and civic society. Industries adopting Living Labs share an approach to finding innovative solutions to open and real-world contexts, as opposed to closed laboratory settings.
The task of convening and connecting the multi-disciplinary stakeholders falls mostly on the Infrastructure and Integrated Ecosystem (IES) teams, both supporting the ASEZCo’s establishment as a resource-efficient, carbonneutral and socially-inclusive industrial hub. Through its positioning as this eco-industrial park the ASEZ aims to attract Greentech investors who embody the elements and ethos of green technology manufacturing. It also means bringing the principles of the green economy into how the Atlantis SEZ is run and how the utility service needs of the investors are ultimately met and delivered.
In recent years, purpose has gained momentum in business. With societal issues on the rise, government and community resources are under pressure. And increasingly, consumers expect organisations to step in and play a greater role in advancing social or environmental issues.
But, while companies understand the moral imperative in delivering value for all stakeholders, a huge opportunity exists in seeing the business imperative. This can be explained through a simple but powerful idea: a company’s success and social progress are interdependent. This is the key principle of shared value.
Tourism companies can’t thrive if a pandemic prevents us from travelling. Food suppliers can’t thrive if extreme weather events spoil farmers’ crops. Farmers can’t thrive if supply chains are fragmented. And communities go hungry when there is limited access to food supplies. And financial services can’t thrive amid financial hardship.
In this context, purpose has an important place within business strategy. When used to its full potential, it can reach beyond risk mitigation – or doing no harm – to actually create new value for business (and society). Shared value is a framework designed to create business solutions to social and environmental problems. Put differently, it’s a means to deliver on your purpose, profitably.
Shared value The creation of both societal and business value is integral to shared value.
Societal value comes from vastly improving the conditions in which we live; advancing health outcomes, education, employment, financial or digital inclusion, service access and participation and/or helping to reduce our impact on the environment.
Meanwhile, business value can range from increased revenue or market share to improved productivity, greater efficiency, reduced costs, improved quality, a more secure supply chain or a more skilled or productive workforce.
The principle of striving towards shared value in our work with the local community, existing industrialists and new investors is underpinned by commitment to positive contribution towards the United Nation’s Sustainable Development Goals (SDG). The SDGs form a blueprint of addressing global inequities and achieving a more sustainable future for all.
Working in close collaboration with the Infrastructure team, the IES team supports the Atlantis community through skills and enterprise development, coupled with community integration. This is done to enable the Atlantis community, notably its youth, to tap into increased job opportunities, locally as well as in the buoyant green economy. Green skills development and growing technical capabilities within the community form part of the ASEZCo’s strategic objectives, aligned to the legislative requirement of the SEZ Act to grow the regional economy and drive socio-economic impact. This includes a range of interventions to support the skills development pipeline, some starting at foundational level, going through to school, college and ultimately at the workplace.
The IES programmes are anchored by intentional, continuous and wider stakeholder community engagement, through our Community Stakeholder Network (CSN). This elected group of community leaders hail from a variety of sectors, such as small business and informal traders, education, youth, women and people with disabilities, Early Childhood Development, faithbased and traditional council and cultural groups. The CSN serves as a conduit for meaningful communication between the ASEZCo and the Greater Atlantis Community, therefore ensuring dialogue between the public and private sector and the community at large. The principles of multi-stakeholder engagement and collaboration provide a feeding ground for fostering local innovation, the co-creation of solutions and a conducive business environment.
References https://sharedvalue.org.au/about/shared-value/ https://www.un.org/sustainabledevelopment/ sustainable-development-goals/
Sectoral strengths of South African provinces
SECTORAL STRENGTHS OF A wide variety of investments are available. SOUTH AFRICA’S PROVINCES
Gauteng:
• Financial and business services • Information and communications technology • Transport and logistics • Basic iron and steel, steel products • Fabricated metal products • Motor vehicles, parts and accessories • Appliances • Machinery and equipment • Chemical products, pharmaceuticals North West: • Agro-processing • Mining • Agriculture and agro-processing • Tourism • Metal products • Machinery and equipment • Renewable energy (solar)
Limpopo:
• Mining • Fertilisers • Tourism • Agriculture • Agro-processing • Energy, including renewables (solar)
Northern Cape:
• Mining • Agriculture and agro-processing • Fisheries and aquaculture • Renewable energy (solar, wind) • Jewellery manufacturing
Mpumalanga:
• Mining • Tourism • Forestry, paper and paper products, wood and wood products • Agriculture and agroprocessing • Metal products
KwaZulu-Natal:
• Transport and logistics • Tourism • Motor vehicles, parts and accessories • Petrochemicals • Aluminium • Clothing and textiles • Machinery and equipment • Agriculture and agroprocessing • Forestry, pulp and paper, wood and wood products
Western Cape:
• Tourism • Financial and business services • Transport and logistics • ICT • Agriculture and agro-processing • Fisheries and aquaculture • Petrochemicals • Basic iron and steel • Clothing and textiles • Renewable energy (solar, wind)
Free State:
• Agriculture and agro-processing • Mining • Petrochemicals • Machinery and equipment • Tourism
Eastern Cape:
• Motor vehicles, parts and accessories • Forestry, wood and wood products • Clothing and textiles • Pharmaceuticals • Leather and leather products • Tourism • Renewable energy (wind)
Source: Industrial Development Corporation (IDC); The Case for Investing in South Africa, Executive Summary Source: Industrial Development Corporation (IDC) (South African Investment Conference, 2018).
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At Atlantis SEZ tenants can expect energy and waste security and efficient management of waste
Matt Cullinan, Infrastructure Executive of the Atlantis Special Economic Zone, outlines the importance of combining a high standard of service with green principles.
The Atlantis Greentech SEZ is there to support green technology industrialisation and job creation in South Africa. The ASEZ represents South Africa’s leading foray into green industrialisation and is a tool to unlock green industrial development.
Good-quality and reliable utility infrastructure underpins any good industrial zone. We are building the zone around worldclass utility services that offer energy and water security and resource-efficient management of waste – all done in a manner that contributes to sustainable development. A well-maintained and security-conscious operating environment is also important.
Our aim as the Atlantis SEZ is to work together with our tenants to create mutually-supportive systems that ensure production efficiency and continuity.
The ASEZ long-term infrastructure plan envisages four green utility infrastructure goals. These are:
Net Zero Carbon: This involves using renewable energy embedded into the zone and servicing the industrial manufacturing plants. We aim to offer a high degree of energy security while reducing carbon emissions. This plan is complemented by an existing City of Cape Town load-mitigation programme, provided that load-reduction targets are met. This is resource efficiency in action.
Net Zero Water: This aims to ensure long-term water security and efficient water use in what is a water-stressed region. This includes steps to enhance on-site water capture and re-use. Our programmes will also focus on helping to improve production efficiency and, through that, reduced use of water and/or water recycling.
Net zero waste to landfill: There is growing recognition of the importance of the circular economy to sustainable development. Exploring how the waste of one production process can act as an input resource for another is another way of reducing waste to landfill. The City of Cape Town and the Western Cape already have high standards and targets for waste that cannot be sent to landfill. This creates opportunities to find ways to reduce costs of our tenants’ waste management and possibly even create new revenue opportunities.
Working with nature: The Atlantis industrial area is located within an important fynbos biodiversity corridor, one of the largest green lungs remaining in Cape Town. It contains both endangered and critically endangered lowlands vegetation fynbos types. There is an ongoing process of removing invasive aliens, searching for and rescuing endangered and critically endangered species and relocating these to a land bank. The aim is to use some of these same species for landscaping the zone once factories have been built, doing as much as possible to work with the natural features and flora in the area. The ASEZ has an indigenous landscaping plan to support this objective.
These goals aim to create low-carbon, resource-efficient operations for the zone and the tenants. We subscribe to UNIDO’s Eco-Industrial Park (EIP) principles and are constantly exploring ways to be more resource efficient and reduce carbon. These are also crucial contributors to the Sustainable Development Goals and meeting the objectives of significant global protocols, such as that COP26.
In future, all industrial development should be done this way, especially if we are to achieve a semblance of sustainability, grow the circular economy and tackle the drivers exacerbating the climate crisis. ■
