Gauteng
South Africa
Sector
Manufacturing
The Gauteng Department of Economic Development has been working on a number of crucial projects over the last year including the development of an IDZ (Industrial Development Zone) near OR Tambo International Airport.
An IDZ near OR Tambo airport has been under discussion for some time, but it was recently passed to the Special Projects Unit, a new division that was established in 2008, as a means of facilitating certain crucial projects for the province.
The Gauteng Department of Economic Development is also in negotiations regarding the purchase of an additional portion of land for the broader IDZ, which is closer to OR Tambo International Airport.
It is expected that the creation of an industrial development zone adjacent to the airport will contribute to the competitiveness and growth of the manufacturing sector in Gauteng by lowering the input costs and improving the supply chain efficiencies for firms in the IDZ.
The purpose of the IDZ is to provide an efficient import and export duty free zone for high value-added, light manufactured goods which are exported via air freight.
The IDZ aims to provide a marketing platform for South African goods and the location for light export-oriented manufacture industries, together with the avionics and aerospace cluster
A subsidiary company, Gauteng IDZ Development Company, has been established to hold the development rights and operator permit, and will seek funding for capital developments, as well as sourcing key anchor and line tenants.
The first two identified sectors are: Jewellery Manufacturing and Agro-processing.
The Gauteng DED hopes to attract an international party to develop and operate the Jewellery Manufacturing Precinct at the IDZ for a period of between 5 and 15 years.
The developer and operator might be secured jointly as the current thinking is asking for a turnkey solution.
Funding of the Jewellery Manufacturing Precinct shall entirely depend on the size of the development, which in turn shall be determined by market appetite, to be determined by the request for pre-qualification process.
It is currently envisaged that the Jewellery Manufacturing Precinct shall be funded using limited-recourse project financing for the portion of the development whose repayment can be sustained by the cash flows generated from rentals from IDZ Enterprises.
For more information about the opportunities on offer at the Gauteng IDZ near OR Tambo please contact the Gauteng DED directly:
Name: Fezile Ngqobe
Email: Fezile.Ngqobe@gauteng.gov.za
Tel: +27 11 355 8000
