Market Intelligence
Energy South Africa

South Africa Special Economic Zones

The Gauteng Provincial Government (GPG) through the Department of Economic Development is looking to secure 1,000MW of new energy for Special Economic Zones (SEZs) and Industrial Parks. Special Economic Zones (SEZs), are geographically designated areas of a country set aside for specifically targeted economic activities, supported through special arrangements (that may include laws) and systems that are often different from those that apply in the rest of the country. They are growth engines towards government’s strategic objectives of industrialization, regional development and employment creation.

Special Economic Zones (SEZs), are geographically designated areas of a country set aside for specifically targeted economic activities, supported through special arrangements (that may include laws) and systems that are often different from those that apply in the rest of the country. They are growth engines towards government’s strategic objectives of industrialization, regional development and employment creation.


The following SEZs are in the Gauteng Province and fall under the Department of Economic Development:

  • O.R. Tambo SEZ seeks to use the SEZ mechanism to develop land near the O.R. Tambo International Airport in order to promote economic development. With an emphasis on light, high-margin, export-oriented manufacture of South African precious and semi-precious metals, the O.R. Tambo SEZ promotes the expansion of the sector for the beneficiation of precious metals and minerals.
     
  • Tshwane Automotive SEZ (TASEZ): is Africa’s first automotive city and is situated in the Gauteng province’s capital city of Tshwane. It is a desirable global automotive city and the ideal investment location for the continent of Africa’s automotive sector. A well-established automotive industry nearby the SEZ enables greater economies of scale and scope, which lowers the cost of doing business.
     
  • Vaal SEZ: Long known as a center of heavy industry, manufacturing, and engineering in Gauteng, the Vaal area has chosen land parcels that will be developed into a multi-site, multi-sector-focused Special Economic Zone (SEZ). Growing the unrealized potential in the agricultural, manufacturing, logistics, and renewable energy sectors is the goal of the Vaal SEZ.


The Gauteng government has chosen to embark on an ambitious journey using Special Economic Zones with the aim of developing a flawlessly linked, socially cohesive, sustainable, and economically inclusive Gauteng City-Region (GCR) (SEZs). The provincial administration wants to increase manufacturing, exports, and employment by using SEZs as its main tool, eventually turning the GCR into a single, multi-tier SEZ. These SEZs have the potential to significantly contribute to the Provincial goals by boosting the region’s economy and enhancing the quality of life for its 17 million residents. For this to become a reality, the Gauteng provincial government has to resolve the energy crisis that is currently plaguing the country. To this end, the Gauteng provincial government has decided to procure a 1,000MW off-grid solution by 2023 to be distributed amongst the SEZs and Industrial Parks.

For more information, contact Mlamli Mjambana, Commercial Specialist, U.S. Commercial Service; U.S. Embassy-South Africa; Email: Mlamli.Mjambana@trade.gov or Office.Johannesburg@trade.gov;  Phone: +27 11 290 3192

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