The South African Special Economic Zone (SEZ) program has attracted R14.8 billion in revenue and created over 30,000 jobs, according to Deputy President Paul Mashatile.
The Deputy President shared this information during the Second Annual International Conference on Special Economic Zones (SEZs), which took place in Durban on Friday. Minister of Trade, Industry and Competition (DTIC), Parks Tau, also spoke as a presenter.
Mashatile noted that Durban is a leading maritime gateway in Sub-Saharan Africa, with Port Durban serving as its hub. He emphasized that the city acts as a critical node between the industrialized interior region, particularly Gauteng, and global markets, handling a significant portion of South Africa's sea cargo.
Mashatile added that the legacy of strategic infrastructure and industrial development is demonstrated by facilities such as Dube TradePort and the Durban SEZ. These initiatives promote innovation, attract investment, and drive economic transformation, notably by linking Dube TradePort with King Shaka International Airport and Port Durban, which handles over 60% of South Africa's container traffic.
According to a World Bank study, the South African SEZ program has been successful, creating more than 30,000 jobs in sectors such as automotive manufacturing, agro-processing, and renewable energy. Mashatile pointed out that key projects, such as the Tshwane Automotive SEZ (TASEZ) and the Koega Industrial Development Zone in the Eastern Cape, are primary drivers of skills and supply chain development.
He also shared lessons learned since the establishment of Koega in 2001. By 2010, the government had invested over R3 billion solely in Koega, attracting 21 investments worth R9.2 billion and providing 2,837 jobs. However, some of these investments were not new but relocated from other areas due to weakened municipal services and settlement integration, putting the zones at risk of becoming isolated enclaves.
In response to these challenges, a shift in focus towards Special Economic Zones was adopted in 2012 in line with the SEZ Act. Mashatile stated that under President Cyril Ramaphosa's leadership, the country is entering the third phase—the Spatial Industrial Development Strategy. To stimulate production-based industrialization, the South African government has identified key economic sectors.
The new Spatial Industrial Development Strategy requires that every new zone be assessed against six criteria: infrastructure corridors (ports, railways, and energy), resource base (from Bushveld platinum group metals to agricultural belts), existing industrial parks (such as Isithebe, Ezakeni, Babelegi), district development model, socio-economic data (zones should be located where job needs are greatest), and community integration (a zone will not succeed if the neighboring settlement does not benefit).
Mashatile noted that there are 5,400 SEZs globally competing for the same capital. He stressed that competition should be based not on the lowest price, but on strategic importance, reliability, and inclusivity. He addressed SEZ leaders, stating that their effectiveness will be measured every five years not by glossy brochures, but by the actual number of jobs and exports.
Parks Tau reported that DTIC has adjusted its focus within the Cabinet-approved Industrial Development Strategy. This strategy represents a calculated response to the country's current economic difficulties. It aims to address three issues: decarbonization, transitioning industrial production to low-carbon technologies and cleaner energy systems; diversification, expanding the production base and export markets; and digitalization, implementing technologies that enhance productivity across all sectors.
Tau confirmed that SEZs have proven themselves as drivers of industrialization. He cited global data indicating that over 7,000 SEZs operate worldwide, and in China, national SEZs account for 22% of GDP, 45% of foreign direct investment, and 60% of exports.
The Minister also noted that South Africa's own experience, though smaller, is real and holds untapped potential. Currently, thirteen SEZs are established across eight provinces, hosting two hundred twenty-four companies with cumulative investments totaling R31.7 billion, representing a net increase of R17.2 billion over eight years. Tau concluded that the conference takes place at a complex yet opportune moment, as South African products face a more competitive global market due to rising trade barriers such as tariffs and trade measures disguised as environmental policy. Instead of abandoning export-oriented growth, this should serve as an impetus for diversifying export destinations.
The township and rural economies of South Africa continue to face challenges stemming from apartheid-era spatial planning, inadequate infrastructure, limited investment, poor coordination, and persistent inequality.
South Africa's economic geography remains heavily shaped by apartheid-era spatial planning, and economic opportunities decades after democracy remain concentrated in urban centers. The National Youth Development Agency (NYDA) notes that many communities in townships and rural areas struggle due to inadequate infrastructure, poor transport links, fragmented land-use planning, and limited productive investment.
These disparities affect all aspects of youth economic activity. Young people living in townships and rural areas often have to spend more on transport to reach workplaces, have weaker digital connectivity, face greater hurdles in securing funding, and operate in smaller consumer markets. Such difficulties reduce business competitiveness and hinder enterprise growth.
According to NYDA, the Township and Rural Economy Development and Revitalization Policy Project represents a significant step toward creating inclusive local economies that promote entrepreneurship, industrial development, investment, and job creation in historically disadvantaged communities. The agency emphasizes that structural problems inherited from apartheid continue to undermine the sustainability and competitiveness of township and rural enterprises, especially small, medium, and micro-enterprises.
NYDA has submitted its comments and recommendations on the policy draft, insisting on increased focus on youth development. The agency calls for practical measures aimed at expanding youth entrepreneurship, improving access to finance, increasing procurement opportunities, strengthening digital innovation, and positioning youth as drivers of local economic transformation.
NYDA agrees that infrastructure is a key factor in local economic development, but argues it should be viewed more broadly than just roads, water supply, and electricity. The modern township and rural economy, in the agency's view, must include integrated economic infrastructure consisting of reliable power supply, quality transport networks, broadband connectivity, digital infrastructure, serviced industrial and commercial land, business incubation facilities, logistics and warehousing infrastructure, innovation hubs, and shared production capacities for small businesses.
The agency asserts that investments in economic infrastructure should be seen as an economic development strategy that boosts productivity, lowers business costs, and attracts private investment. Furthermore, it insists that spatial transformation must go beyond physical infrastructure, encompassing the coherence of housing, transport, business support, skills development, industrial growth, and municipal services. NYDA concludes that only coordinated planning across all government spheres can allow township and rural economies to realize their full productive potential.
NYDA generally supports the Township and Rural Economy Development and Revitalization Policy Project and highly commends the Small Business Development Department for developing the foundation for strengthening local economic development and supporting small businesses. The agency welcomes the policy's recognition of barriers such as inadequate infrastructure, weak institutional coordination, limited access to finance, poor market linkages, and low investment. It also supports the policy's emphasis on strengthening township and rural business ecosystems, promoting localization and domestic value chains, improving access to finance, revitalizing production infrastructure, stimulating innovation and entrepreneurship, and enhancing intergovernmental coordination to create a favorable environment for sustainable business development.
In NYDA's view, if effectively implemented, this policy could be a transformative tool for expanding the economic opportunities of millions of young South Africans. The agency notes significant untapped potential in township and rural economies, which are home to millions of people and support extensive informal economic activity, offering opportunities in manufacturing, agriculture, tourism, creative industries, digital services, and innovation. NYDA believes that coordinated government policy, better infrastructure, improved access to finance, stronger market opportunities, and skills development can turn these local economies into primary drivers of inclusive growth and employment.
In June, Vukile Property Fund stated that its R19.5 billion portfolio in South Africa, which includes shopping centers in townships, rural areas, cities, and transport nodes, serves some of the country's strongest consumer markets. In its report 'Commercial Property Trends for South Africa 2026', published last December, John Jack noted that shopping centers in townships and rural areas owned by Vukile and Exemplar continue to show strong trade density growth and low vacancy rates, supported by sustained consumer demand.
Meanwhile, Isaac Odendaal expresses concerns about the cost and affordability of housing in Cape Town. In a LinkedIn post, he compared this discussion to similar processes in major global cities where issues of affordability, gentrification, tourism, and development frequently arise. He believes the solution is simple but not easy: build more housing. Odendaal points out that demand remains high because Cape Town is a city many want to move to. Referencing the Deutsche Bank report 'Mapping the World's Prices', he observes that rent in Cape Town is now comparable to cities like Bangkok, Mumbai, and Istanbul, and higher than in Johannesburg. However, he feels the city remains relatively affordable compared to places like Dubai, Melbourne, and Vancouver, leaving room for what he termed 'lifestyle arbitrage.'
Early in the morning, around 05:00, as motorcycles begin circulating through Beira's main avenues, women take up spots at stops in areas such as Matakuane, Makurungo, and Nangau. They combine transporting passengers and goods with the responsibility of supporting their families.
Augusta Munjela, 48, is one example, having become a notable figure in the Matakuane corridor. A former widow and mother of five, she has been driving a moto-taxi for seven years. This activity began after she lost her business at the Goto market.
A turning point was Cyclone Idai in 2019, which destroyed twelve of her stalls. Even earlier, in 2008, she lost her husband. Augusta recalls: 'Everything connected for me. I lost my husband, then I lost my business. I was left with nothing.'
In the absence of other income sources, she decided to take up motorcycle driving. Initially, she only accepted female passengers, believing it would be safer and help her avoid conflicts. However, she realized she was losing money, forcing her to overcome her own prejudices when two men needing a ride appeared.
According to Augusta, the COVID-19 pandemic strengthened her decision, as small business incomes declined, and her children enrolled in higher education. She recounted: 'I didn't have money for education. I took the moto-taxi job very seriously because it was necessary. I valued this activity when I desperately needed funds.'
Currently, she uses the income from the motorcycle to fund her children's studies at Likungo University and Zambezi University, including her daughter who is studying medicine. She states: 'What seemed impossible for a mother without an education, the motorcycle gave me.'
Despite her successes, Augusta admits that the work involves difficulties and risks. She shares: 'Firstly, it requires determination and effort. Moreover, faith is everything. When I leave home, no one knows what will happen.'
Besides the daily challenges of driving, she faces discriminatory remarks, such as, 'A woman doesn't know how to drive.' Nevertheless, she notes that when she arrives first, no one says anything.
She calls on other women wishing to start this venture: 'Let them be very strong and take me as an example. Today I feel like a powerful woman. We are not weak women. We fall, but we get up, without complaining or going from door to door. Have morale, courage, and do not be ashamed, because shame will not get us anywhere. Do your job.'
In Beira, there is also Balbina Silvio, 47, who has combined teaching with a small business supported by motorcycle use for over ten years. She explains: 'You cannot live only on a salary. The cost of living is high, and I have five children to raise, as well as other family members. I thought about doing other things to help at home.'
The motorcycle, acquired by the family, became a working tool for transporting goods and supplying her own business. Balbina states: 'Life is expensive. We didn't have transport at home, only the motorcycle. I started doing this job and I still enjoy it.'
This activity allowed her to gradually expand her business, moving from selling drinks to other commercial initiatives. She shares: 'I am gradually prospering. I don't think I started that way, but I am already reaching a high level.'
The teacher also advocates for women's economic independence: 'I wish all women would think like this. Instead of us searching for losses or looking for other men, we should embrace business to survive.'
Despite the progress made, she hopes to expand her business and asks for help from those willing to support her venture honestly so she can acquire more goods and move forward.
For Jasinta dos Remedios, President of the Beira Municipal Assembly, the increase in women in the moto-transport sector reflects a growing demand for economic opportunities. She states: 'It is an honor for me to see women fighting to overcome the country's socio-economic problems. Taking up this space is a concrete step towards achieving parity.'
The author believes that this activity is both a form of entrepreneurship and a response to unemployment. 'Women do this because there are no jobs in Mozambique. There are women with acceptable academic levels, but since there is no work, this activity functions as entrepreneurship,' she asserts.
However, Jasinta dos Remedios warned about the need to strengthen training and road safety for sector workers. 'It is important that these women are qualified and licensed. They must know the traffic rules, because without that, it is a risk,' she insists.
She also calls for more training events: 'It is necessary for the Municipal Council or legal institutions to train women, as well as men, to avoid many accidents and damage that may occur.'
The President of the Beira Moto-Taxi Association, Jacob Pereira, views the influx of more women into this sector as a positive sign for the sector. 'It is a sign of growth. It encourages other girls, other owners, to do the same and provide for themselves. It helps stimulate economic activity.'
According to the leader, the association collaborates with the National Institute of Road Transport (INATRO) and a driving school to conduct educational and retraining activities. 'The goal is to ensure that everyone knows the traffic rules and defensive driving techniques. An accident is not related to positions. Even I, as president, did not refuse training. I learned things that never occurred to me.'
Jacob Pereira adds that only specialists who complete the training will receive a fitness certificate. 'Anyone without a certificate will be punished for engaging in this activity without the appropriate qualification,' he warns.
Moto-taxi drivers surveyed by Lusa, some of whom fear speaking openly, report shifts that can exceed 12 hours a day, exposure to traffic accidents, robberies, and instances of harassment by some passengers, especially at night.
In a sector that has been associated with men for decades, the growing presence of women at Beira moto-taxi stops demonstrates gradual changes in the labor market, marked by informality, where many find a source of income to support their families and ensure the continuation of their children's education.
