How far advanced is the ELIDZ in converting to a Special Economic Zone?
*We are currently going through the last phase of the process, which involves gazetting by National Treasury. When this is finalised, existing investors will be eligible to apply for new, SEZ specific incentives which include:
- VAT and customs relief within a Customs-Controlled Area
- Employment tax incentive
- Reduced corporate income tax rate.
Do you welcome interest from any sector?
Our successful value proposition is based on a cluster approach with customised sector-specific solutions. The ELIDZ is currently active in the Automotive, Renewable Energy, Aquaculture and Agro-processing sectors. The Special Economic Zones Programme offers incentives for value-adding manufacturing sectors as well as tradable services.
The ELIDZ also has a research and development platform to help industries through innovation and technology. The ELIDZ Science and Technology Park (STP) tests and prototypes different technologies and new inventions. Start-ups in the ELIDZ have access to various innovation funders as well as the incubation process and facilities.
What are some of the most recent investments?
Since inception the ELIDZ has attracted more than R7.3-billion worth of private sector investment from 45 investors. This is against a total investment of R2-billion into the ELIDZ infrastructure by government. Foreign Direct Investors account for 75% of the total investment attracted (by value): 32% of the total investment (by value) is by companies in the automotive sector.
In 2016/17, the ELIDZ achieved the following investment highlights:
- Six investors valued at R2.4-billion approved by the ELIDZ board during 2016/17.
- Four investors valued at R1.059-billion, with a job potential of 1 567 signed agreements during 2016/17. (Pharmaceuticals, ICT & Electronics, Energy, Waste-processing).
Mr Simphiwe Nicholas Kondlo, the Chief Executive Officer of the ELIDZ, holds a Masters in Engineering Management and has more than 23 years’ experience spanning various fields including civil and agricultural engineering. With him at the forefront, the ELIDZ is a front-runner in the field and continues to flourish as a multi-sector Industrial Development Zone.
*This interview was done in May 2017 and appeared in the 2017 edition of the annual Eastern Cape Business.
For updated information about opportunities in the East London IDZ, please contact East London IDZ or visit http://www.elidz.co.za/