South Africa expands special economic zones to drive industrial growth and investment

South Africa is accelerating the expansion of its Special Economic Zones (SEZs) as part of a broader strategy to revitalise industrial production, increase exports and attract long-term investment. The renewed focus comes as policymakers seek to strengthen manufacturing, improve competitiveness and generate sustainable employment through strategically located industrial hubs, as reported by The Diplomatic Society, a TV BRICS partner.

South Africa reaffirmed the role of SEZs in its industrial strategy at the Second International Special Economic Zones Infrastructure and Investment Conference in Durban, held under the theme "Reigniting Industrialisation through World-Class SEZs." The country's programme currently comprises 13 designated zones across eight provinces, serving as key platforms for industrial investment, export-orientated manufacturing and integration into regional and global value chains.

Authorities also announced plans to establish two additional Special Economic Zones in Fetakgomo Tubatse and Vaal, while introducing reforms aimed at improving governance, expanding private-sector participation and strengthening support mechanisms for underperforming zones.

Since the programme's launch, South Africa's SEZs have attracted 224 enterprises, generating approximately US$1.93 billion in investment – an increase of around US$1.05 billion over the past eight years. The programme has created 28,821 direct jobs.

The SEZ strategy is also closely aligned with the opportunities created by the African Continental Free Trade Area (AfCFTA), which is expected to expand export opportunities and strengthen South Africa's position within regional manufacturing supply chains.

Alongside expanding industrial capacity, the government plans to deepen links between SEZs, technical education institutions and local small businesses, helping to develop skilled labour, strengthen supplier networks and maximise the economic benefits for surrounding communities.