“It is important that we continue to believe in and promote and support, economic integration and co-operation, with a strong conviction that open economies, connected economies, inter-dependent economies, ultimately provide better jobs and better income for our people”, the Singapore Minister for Trade and Industry, Chan Chun Sing highlighted during his keynote address at the biennial Africa Singapore business forum.
When drawing relevance from this statement, it is essential to consider the rapid economic climate changes as well as countries realising the implications of globalisation, which include; the world gradually turning into a smaller village with an increase in competitiveness. It is then expected of customers to seek products and services, which speak to their specific needs, compelling companies to make an effort to create competitive advantages to keep their profit and market share. Such trends drive firms and countries to focus on supply chain and integrated logistics.
What the Coega SEZ quickly translated this to, was understanding that, the Special Economic Zones (SEZs) have become the policy instrument of choice for developing countries seeking the land of higher economic growth through industrialization led by foreign direct investments. After the South African government adopted SEZs as policy instrument forming part of the Industrial Policy Action Plan (IPAP), it was only then that we witnessed some successes in the first three SEZ`s, with 42 operational investments worth R 4 billion and approximately over 5,000 direct jobs and 43,000 construction jobs created. Currently, the Coega SEZ has 43 operational investors, 25 are local and the remaining 18 are international investors. Together, they have invested a total of R7 billion.
(b) Encouraging domestic firms to move up the industrial value chain and to explore growing opportunities in logistics, information and communications technology, and other areas of high technology, knowledge and innovation.
“These are more than SEZ success criteria; they are structural reforms needed in the broader economy,” she concludes.