Skip to main content

Contributing To Industrial Development In The Eastern Corridor Of Gauteng: The OR Tambo International Airport SEZ

Published 15 days ago
By BrandVoice Partner | Paid Program

THE GAUTENG INDUSTRIAL DEVELOPMENT ZONE (GIDZ)

The Gauteng IDZ Development SOC Ltd (GIDZ) was established to develop and operate the Special Economic Zone (SEZ) program at OR Tambo International Airport.

In support of its mandate, the GIDZ must facilitate the establishment of manufacturing investment operations at the SEZ. It is required to oversee the development of strategic economic infrastructure necessary for the operations of secured investment.

There are presently three SEZ-designated land parcels that the GIDZ is responsible for developing. All the land parcels are located at or in proximity to OR Tambo International. They are the ORTIA Precinct 1, ORTIA Precinct 2, and the Springs Precinct.

INDUSTRIES OF FOCUS

Each of the presently designated SEZ land parcels have particular industries of focus identified with the support of detailed studies that defined products that are suitable for localisation at each precinct.
In lieu of their competitive location next to OR Tambo International, ORTIA Precincts 1 and 2 promote the production of high-value, low-mass industries whose products typically utilise airfreight as a mode of transport. These include, inter alia, fresh food agro-products, medical and pharmaceutical products, electronics, jewellery and diamonds.

The Springs Precinct, due to its competitive location next to a Platinum Group Metals (PGM) refinery, is positioned for the production of PGM products such as fuel cells. It has also been identified for capital, component, and mining equipment production.

THE VALUE PROPOSITION

Located on the doorstep of Africa’s largest airport, the value proposition of the OR Tambo SEZ is centred around the service offering of OR Tambo International Airport. Serving as a gateway to southern Africa, the airport has the capacity to handle more than 21 million passengers per annum.

The airport also has the largest air cargo hub in Africa, an advantage in the post-Covid era where air cargo has increased. The OR Tambo SEZ remains a competitive location for investors looking to manufacture and export.

Confirmed as one of South Africa’s designated SEZs, the OR Tambo SEZ locations are able to provide investors access to SEZ incentives packaged at national government level. These include duty free
importation of production related material or assets, VAT exemption, and employment tax incentives.
Lastly, the OR Tambo SEZ forms part of the OR Tambo International Airport Aerotropolis Development
Master Plan. Managed through the City of Ekurhuleni, the Aerotropolis is a 1 975km² urban development
plan with the airport at its heart. The goal of the plan is to facilitate the creation of economic hubs – catering for manufacturing industries.

DESIRED IMPACT

As part of its SEZ programme, the growth of Small Medium Enterprises is encouraged. Developed with consideration of the national Integrated Small Enterprise Development Strategy, it provides a framework
through which SMME access to economic opportunities will be undertaken by the GIDZ, ensuring that the SEZ program plays a meaningful role in the growth of SMMEs.

STATUS

Part of ORTIA Precinct 1 has been operational since April 2019, when a food factory was successfully commissioned, creating over 2 000 operational jobs and 265 construction jobs Development of the remaining part of this Precinct will be home to a jewellery and diamond manufacturing cluster that is underway and targeted for completion by January 2023. Construction of the Super Block, the administrative building housing the Department of Mineral Resources and Energy (DMRE) agencies has been completed, with a 7 200 sq.m building home to the DMRE agencies since September 2021.
A gold refinery building that supports a viable mineral beneficiation cluster at the Precinct was also successfully completed in 2021. Plans are already underway to develop ORTIA Precinct 2 and the Springs Precinct. Construction on the Precincts is likely to begin in the latter part of the 2022/2023 fiscal year.

Sign Up for Our Newsletter Daily Update

Get the best of Forbes Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.

DISCLAIMER: Brand Voice is a paid program. Articles appearing in this section have been commercially supported.