Expansion of special economic zone in South Africa to create new opportunities for trade with India

The area of the Dube TradePort Special Economic Zone (SEZ) on the northern coast of KwaZulu-Natal Province in South Africa will increase by 752 hectares. This was reported by IOL.

The allocation of new land provides for 746.7 hectares to be designated for the development of trade and industrial facilities in sectors 3–5 of the zone, and 5.4 hectares for urban infrastructure (office, retail and hotel premises) in Dube City.

The logistics model of this SEZ, which integrates the airport with specialised cargo terminals, enables the rapid delivery of raw materials and the shipment of finished products. Businesses also benefit from incentives, including a reduced corporate tax rate of 15 per cent, construction incentives, a special customs regime, and fully serviced industrial sites with connected utilities.

The report notes that the expansion of the SEZ is of particular importance to Indian investors seeking to deepen their presence in Africa and aligns with India’s long-term strategy to diversify exports towards the African market.

Priority sectors for Indian businesses include pharmaceuticals (export of medicines), the automotive industry (supply of components), electronics, and agriculture (including perishable goods).

The SEZ has already established itself as a hub for advanced manufacturing, agro-processing, pharmaceuticals, information and communications technology (ICT), logistics and business services. Indian companies have played a significant role in this growth. For instance, an Indian car manufacturer operates a vehicle assembly plant within the zone, while a pharmaceutical company has set up production facilities for pharmaceutical products.

In addition, the zone supports manufacturing and assembly, storage and value-added processing and provides fully serviced commercial premises for retail, business process outsourcing, and research and development. Since its establishment in June 2017, Dube TradePort has become one of the most successful special economic zone models in South Africa, leveraging its proximity to the airport to attract both domestic and international investors.