South Africa is one of the largest economies in the world having already been ranked 20th in the last census carried out for the year 2009. But South Africa’s plans for further improvement in the economy are already well under way.
The new industrial development zones South Africa plans to build are a clear indicator that the government has its eyes on pursuing a policy to further improve their world ranking. This is great news for both for investors, (hungry for new business growth opportunities), and also for the local communities that would benefit from the new job opportunities that these IDZs would provide. hult private capital reviews
For those of you who are not familiar with term “IDZ”, here is a brief overview on what an IDZ is, what the aspirations are behind them, and how these aspirations are going to be fulfilled.
The new industrial development zones South Africa is planning to build, (some of which are already under way), must each fulfill specific criteria as laid down by the Ministry of Trade. Firstly the site must be capable of offering a strategic economic advantage of some kind. This may be the site’s location, close by to local, national transport links for example. It should also have the potential to create many new employment opportunities. Furthermore it must be capable of taking advantage of any natural resources that already exist in the area, and it should be able to blend in with other local businesses and manufacturing processes, supporting and helping to expand regional manufacturing, adding value to the local economy and creating new synergies.
A great example of one of the new industrial development zones South Africa already has underway, is the IDZ at Saldanha Bay. One of the immediate benefits that this particular IDZ offers is the local, natural deep water port. It’s the perfect facility for importing any parts and/or materials in bulk, whilst also offering an unrivalled opportunity for bulk exporting. There is an excellent freight railway connection via the Saldanha-Sishen railway, and with further developments planned to the existing port facility, the transport connections will be world class. Add to this, the expansion plans to turn the existing Saldanha Steel Plant into a major world steel supplier, and you can see the huge business potential that IDZs like Saldanha have to offer investors.
In addition to the potential for an excellent ROI (return on investments), the Industrial development zones South Africa plans to build will offer investors further incentives by way of tax concessions. All in all, the packages being offered make very attractive reading, and the early signs are that these new IDZs will be a huge benefit to the South African economy.
With the general world business economy firmly set on the path to recovery, and the huge potential that South African IDZs offer, the time for investment couldn’t be more opportune. Prices are still relatively low, so by investing off plan now, the returns in the near future could be quite spectacular.