Opinion Piece – Andile April
South Africa finds itself at a critical economic crossroads. While investment attraction remains a national priority, the latest economic indicators remind us that growth alone is not enough. Growth must be inclusive, innovative and sustainable.
Speaking in a panel discussion on the topic: Critical Considerations for Policymakers and Project Developers on Investing in Special Economic Zones and Industrial Parks at the 2nd International Special Economic Zones – Infrastructure and Investment Conference held at the Durban International Convention Centre, Mr. Themba Koza, Chief Executive Officer of the Coega Development Corporation said: According to Statistics South Africa’s Quarterly Labour Force Survey for the first quarter of 2026, South Africa’s official unemployment rate increased to 32.7%, while youth unemployment among those aged 15 – 24 reached an alarming 60.9%. Nearly half of all young South Africans between the ages of 15 and 34 remain unemployed, and more than four in ten are not in employment, education or training.
These statistics are not merely numbers on a spreadsheet. They represent millions of ambitions delayed, opportunities missed and potential left untapped.
Against this backdrop, the role of Special Economic Zones (SEZs) has never been more important.
For many years, SEZs were primarily viewed as locations where businesses could access tax incentives, quality infrastructure and streamlined regulatory support. Those advantages remain important. However, the future demands more.
SEZs must become strategic economic ecosystems that connect investors, governments, communities, educational institutions and entrepreneurs around a shared vision of growth. Their success should not be measured solely by the number of factories established or investment announcements made, but also by their ability to create jobs, stimulate local enterprise development and retain economic value within communities.
At Coega, we believe an SEZ should function as an engine room for broader regional development, not simply a destination for investment. Or put differently, an SEZ should not be a gated community for industry. It should be an open invitation to economic participation.
The latest employment figures reinforce the reality that policymakers and business leaders cannot ignore job creation remains South Africa’s most pressing economic challenge.
This is where Micro, Small and Medium Enterprises (MSMEs) become indispensable. Across the world, MSMEs are responsible for driving entrepreneurship, creating employment and stimulating innovation. Yet, many continue to struggle with access to finance, technology, markets and critical skills.
The question therefore is not whether MSMEs should participate in SEZs. The question is whether SEZs can achieve their objectives without them. The answer is simple: they cannot.
Large investors require suppliers. They need logistics companies, maintenance contractors, engineering services, digital solution providers and professional support businesses. These requirements create enormous opportunities for local enterprises to enter and grow within industrial value chains.
When MSMEs become integrated into those value chains, economic development extends far beyond the gates of the SEZ.
The recently released World Development Report 2025: Standards for Development offers an important lesson for countries seeking sustainable industrial growth.
The World Bank argues that standards are the “hidden infrastructure” of modern economies and have become essential for competitiveness, trade participation, innovation and economic resilience. The report notes that nearly 90% of global trade is influenced by non-tariff measures, most of which are linked to standards.
This has profound implications for SEZs and MSMEs. If South African businesses aspire to participate in global supply chains, export products into international markets and attract multinational partnerships, they must be able to meet increasingly sophisticated technical, environmental, quality and digital standards.
The World Development Report highlights three critical pathways for developing economies: adapting standards where necessary, aligning with international standards wherever possible and actively helping to shape future global standards.
For SEZs, this means becoming centres of excellence where local businesses gain access to training, certification, technology and compliance support.
The future belongs not simply to those who manufacture products, but to those who manufacture products that meet global standards.
The industrial economy is changing rapidly. Artificial intelligence, advanced manufacturing, automation, digital platforms and green technologies are reshaping how businesses compete.
Innovation can no longer be viewed as an optional extra. It is becoming a prerequisite for survival.
SEZs occupy a unique position in this transformation. They can provide environments where entrepreneurs gain exposure to emerging technologies, where research institutions collaborate with industry and where young innovators develop solutions for real-world challenges.
I often remind colleagues that technology should not replace people; it should empower them. The most successful economies will be those that use innovation to amplify human potential rather than diminish it.
Africa is entering a new era of economic integration through initiatives such as the African Continental Free Trade Area. This presents a significant opportunity for South African industry.
SEZs can serve as gateways into regional and international markets by strengthening logistics corridors, facilitating exports and connecting local enterprises with multinational corporations.
At Coega, we have seen first-hand how strategic partnerships can help small businesses secure opportunities that previously seemed unattainable. Today’s local supplier can become tomorrow’s continental exporter. That journey begins with access, capability and trust.
Across the world, successful SEZs share one common characteristic: collaboration. Governments provide enabling policy frameworks. Investors bring capital and expertise.
Educational institutions develop skills and innovation. Communities provide the social foundation for sustainable growth. MSMEs contribute to entrepreneurship, agility and job creation. When these stakeholders work together, development accelerates. When they work in silos, opportunities disappear.
Building an SEZ is much like building a championship rugby team. Star players may attract headlines, but championships are won through teamwork, discipline and a shared purpose. No team wins because of one player. No economy grows because of one stakeholder.
The future of Special Economic Zones is not simply about infrastructure, industrial buildings or tax incentives. Those are important, but they are only visible components.
The real foundations of successful SEZs are partnerships, trust, innovation and shared growth.
Our responsibility is therefore clear.
We must build SEZs that empower local businesses, prepare enterprises to meet global standards, create opportunities for young people, strengthen communities and position South Africa and Africa as a globally competitive investment destination.
If we get this right, we will create more than industrial parks. We will create thriving economic ecosystems capable of delivering the jobs, innovation and prosperity that our continent urgently needs.
