Address by Deputy President Shipokosa Paulus Mashatile on the occasion of the 2nd International Special Economic Zones (SEZ) Conference, Durban ICC, KwaZulu-Natal
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Source domain: thepresidency.gov.za
Collected on 22 July 2026
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Special Economic Zones (SEZ) programme incentives and development framework (Cabinet-endorsed)
The speech announces a Cabinet-endorsed 20-year SEZ development framework with formal evaluations every five years, and describes incentive measures (including a reduced corporate tax rate and manufacturing allowance) and district-level commitments intended to improve SEZ performance and inclusive economic growth.
- Who it is for
- Investors, enterprises, and partners involved in South Africa’s Special Economic Zones and industrial parks
- How to act on it
- Use the SEZ/industrial park investment and participation channels referenced in the speech (SEZ CEOs and the SEZ Advisory Board are present), and align projects to the SEZ scorecard/performance expectations and district commitments described in the address.
Show the line this came from
It is therefore fitting that we have gathered here today to advance a national project of spatial and industrial transformation.
Facts
Places
KwaZulu-Natal, Buffalo City, Eastern Cape, City of Tshwane, Gauteng
Reference
GOVNEWS-10267 at https://www.thepresidency.gov.za
Amounts
R 14 800 000 000, R 3 000 000 000, R 9 200 000 000
Key Takeaways
- Speaker: Deputy President Shipokosa Paulus Mashatile
- Event: 2nd International Special Economic Zones (SEZ) Conference
- Location: Durban ICC, KwaZulu-Natal
- Programme history: Industrial Development Zone programme introduced in 1997; evolved into SEZ programme under the SEZ Act (shift in 2012)
- World Bank claim: SEZ programme attracted R14.8 billion revenue and created 30,000+ jobs
- Coega example: Government invested R3 billion by 2010; 21 investments valued at R9.2 billion; 2,837 operational jobs; some investments relocated leading to enclave risk
- Spatial Industrial Development Strategy: SEZs referenced against six layers (infrastructure corridors, resource endowments, existing industrial parks, district development model, socio-economic data, community integration)
- Cabinet-endorsed 20-year SEZ development framework with evaluations every 5 years (Years 0-5 baseline/KPIs; Year 5 first evaluation; Years 5-15 consolidation/expansion; Years 15-20 maturity by 2046)
- Performance threshold: zones scoring below 60% on the scorecard trigger a five-year intervention framework (restructure/repurpose/de-designate)
- Incentives: 15% corporate tax rate; Section 12i Manufacturing Allowance up to R900 million; VAT and customs relief in Customs Controlled Areas; Employment Tax Incentive for youth
- District commitments: 30% procurement from local SMMEs within a 5km radius; fast-track zoning; bulk services via Service Level Agreements
- Named SEZs/industrial parks: Coega, Dube TradePort/Durban SEZ, Dube TradePort linkage to King Shaka International Airport and Port of Durban; Saldanha Bay (freeport); Musina-Makhado; East London IDZ; Isithebe, Ezakheni, Babelegi; Tshwane Automotive SEZ (TASEZ)
- Deputy President Shipokosa Paulus Mashatile
- President Cyril Ramaphosa
- Programme Director Thamsanqa Ntuli (Premier of KwaZulu-Natal)
- Mayor of eThekwini Councillor Cyril Xaba
- Minister of Trade, Industry and Competition Parks Tau
- Deputy Minister Zuko Godlimpi
- Deputy Minister of Public Service and Administration Pinky Kekana
- Reverend Musa Zondi
- Chairperson of the Portfolio Committee on Trade, Industry and Competition Mzwandile Masina
- Select Committee Chairperson Hildergard Sonja-Boshoff
- SEZ Advisory Board Chairperson Fish Mahlalela
- World Bank
- Nelson Mandela
- Minister Majola (former Deputy Minister referenced)
- Coega Development Corporation
- SBIDZ
- SEZ CEOs (group referenced)
- Cabinet (endorsed framework referenced)
Dates
Opening Date
17 July 2026