Vaal SEZ attracts R1.4 billion in investments - 18 September 2023

Office of the Premier 2023/09/20 - 22:00



​Thabo Bodibe 

Gauteng MEC for Economic Development, Tasneem Motara, and United States Consul-General Vincent Spera have unveiled significant developments following their recent trade mission. 

From 25 August to 3 September, the mission, spearheaded by Motara and Spera, featured key participants, including Economic Planning Deputy Director General Bulumko Nelana and Vaal Special Economic Zone CEO Xola Sithole, delivered a substantial financial boost to the Vaal Special Economic Zone (SEZ).

Citi-Bank has pledged a substantial investment of R1.4 billion into the SEZ. This investment will catalyse the development of an airport in the Vaal area, which, in turn, is poised to foster the growth of manufacturing and agriculture hubs in the region. 

SEZs are geographically designated areas for specifically targeted economic activities, which are then supported through special arrangements and support systems to promote industrial development. 

Early industrialisation of the Vaal destroyed and polluted the environment.

Government's aim now is to spark the beginning of the second industrialisation, which is green and more inclusive and which leaves no one behind through the establishment of the new thriving smart city. 

The Vaal River SEZ business case is based on making the region a premier hub for low-carbon manufacturing, renewable energy production, and the Hydrogen Economy. It aims to establish itself as the leading centre for cannabis cultivation and processing in Africa, offering opportunities to emerging farmers and industrialists.

Additionally, the SEZ aspires to be a focal point for the food industry, agriculture, logistics, tourism, and urban development, driving growth and innovation across these sectors.

MEC Motara emphasised the vital role of US investment in South Africa's economy and the tremendous opportunity for the Gauteng economy.

"The agreements and partnerships forged during this visit are projected to result in billions of dollars in investment and economic growth. These developments are expected to have a positive ripple effect, creating employment opportunities, driving innovation, and improving the overall quality of life for residents of Gauteng," Motara said. 

American companies have played a significant role in South Africa's economy, contributing 10% to the nation's GDP. In particular, Gauteng has been home to key players, such as the Ford Motor Company in the Tshwane SEZ, which contributes 1% to the country's gross domestic product.

Consul-General Spera added that US companies had pledged investments totaling approximately R4 billion in South Africa in the last six months, collectively employing 220,000 South Africans.

He expressed enthusiasm about the potential for economic growth, innovation, and collaboration between the United States and Gauteng.

"We are excited about the tremendous potential for economic growth, innovation, and collaboration from this visit. Together, we are poised to achieve great things," he said.

The post-mission showcased the enduring partnership between the United States and South Africa and achieved several key objectives, including strengthening investment promotion, deepening collaboration in innovation, expanding Gauteng air access, fostering a sustainable energy transition, and engaging in the African Growth and Opportunity Act (AGOA) Forum.

The Gauteng Provincial Government and US believe that the working group framework established during the mission will structure their continued engagement, leading to greater growth and prosperity for both countries and encouraging policies that increase openness and competition within the region.
 


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