EnergySouthernInvest News · Maputo
Mozambique Takes Back Control of Fuel Imports with New State Procurement Company
Mozambique has announced one of the biggest changes to its fuel supply system in more than three decades by creating a new state-owned company that will take exclusive responsibility for importing petroleum products into the country.
SouthernInvest News · Maputo · 2026
The decision marks a significant shift away from the private-sector-led model that has governed fuel imports for around 30 years and reflects the government's determination to strengthen national energy security. The newly established National Petroleum Products Procurement Company (ENAPP) will become the sole entity responsible for purchasing and managing fuel imports for Mozambique. According to the government, centralising procurement will improve coordination, reduce supply disruptions and give the state greater oversight of one of the country's most strategic industries.
Response to a growing fuel crisis
The move follows months of fuel shortages that affected businesses, transport operators and consumers across Mozambique. Long queues at filling stations, intermittent supply interruptions and difficulties securing foreign currency for imports exposed weaknesses in the existing procurement system.
Earlier this year, the government expanded the role of state-owned fuel company Petromoc to stabilise supplies, allowing it to supply fuel to distributors nationwide. Authorities later approved a US$50 million financing mechanism to help guarantee payments to international fuel suppliers and prevent further disruptions. Officials say these emergency measures demonstrated the need for a more permanent solution, leading to the creation of ENAPP.
Why the government is changing course
Government spokesperson Inocêncio Impissa said recent supply challenges highlighted vulnerabilities in the existing import model. By consolidating fuel procurement under one state-owned enterprise, Mozambique hopes to negotiate better purchasing terms, improve strategic fuel reserves and ensure more reliable nationwide distribution.
The government also believes centralised procurement will strengthen its ability to manage international price volatility and protect the economy from future supply shocks. Fuel is considered critical to transport, agriculture, mining and industrial production, making uninterrupted supply a national priority.
A shift in economic policy
The decision represents a notable change for Mozambique, which has largely embraced market-oriented reforms and private sector participation since the 1990s. Rather than reversing broader economic liberalisation, the government argues that fuel imports require stronger state oversight because of their strategic importance. Industry analysts note that similar state-led procurement systems operate in several African countries where governments seek greater control over essential energy supplies while maintaining private participation in fuel distribution and retail operations.
Regional implications
Mozambique plays an increasingly important role in Southern Africa's energy logistics. The Port of Maputo serves neighbouring countries including Eswatini, while the country is investing in new fuel infrastructure and expanding its role as a regional energy hub. The government's recent efforts to strengthen fuel security are expected to support these ambitions. Reliable fuel supplies will also be important as Mozambique continues developing major natural gas projects, expanding industrial activity and attracting investment into manufacturing and logistics.
What happens next?
The government has not yet announced the full operational timetable for ENAPP, but the company is expected to gradually assume responsibility for all petroleum procurement. Existing fuel marketers are likely to continue distributing and retailing fuel, while ENAPP will focus on purchasing, import coordination and supply management.
The effectiveness of the new model will ultimately depend on its ability to improve efficiency, maintain transparency and ensure that fuel reaches consumers without the shortages experienced over the past year. For investors and businesses operating in Mozambique, the reform signals a stronger state role in safeguarding strategic energy infrastructure while seeking greater stability in the country's fuel supply chain. If successful, it could become one of the most significant energy policy reforms in Mozambique in recent decades.
Sources
SouthernInvest News, Maputo. Government of Mozambique announcement on the establishment of the National Petroleum Products Procurement Company (ENAPP); remarks by government spokesperson Inocêncio Impissa. Figures and measures as stated by the authorities.
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AutomotiveSouthernInvest News · Durban
Toyota's R10.4 Billion Hilux Investment Reinforces South Africa's Manufacturing Strength
Toyota South Africa Motors has launched pilot production of its ninth-generation Hilux at its Prospecton plant in Durban, marking a major milestone in a R10.4 billion investment programme that strengthens South Africa's position as one of Africa's leading automotive manufacturing hubs.
SouthernInvest News · Prospecton, Durban · 16 July 2026
The line-off ceremony, attended by President Cyril Ramaphosa, Minister of Trade, Industry and Competition Parks Tau, Toyota executives, industry stakeholders and labour representatives, celebrated what is the largest single product investment in Toyota South Africa's history. The investment represents far more than the launch of a new vehicle — it reflects growing confidence in South Africa's industrial capabilities at a time when global manufacturers are rethinking supply chains, embracing new technologies and adapting to stricter environmental standards.
Toyota President and CEO Andrew Kirby said the investment demonstrates Toyota Motor Corporation's confidence in South Africa despite a rapidly changing global automotive landscape, reshaped by tighter emissions regulations, technological innovation and increasing competition from new manufacturers entering international markets.
Where the R10.4 billion goes
The investment programme is already more than 77% complete and is scheduled for final completion by June 2027. It includes approximately R3.2 billion dedicated to upgrading manufacturing facilities — a new logistics centre for imported components and a modern chassis treatment and coating facility — while a further R7.2 billion is being invested in advanced manufacturing equipment, robotics, supplier tooling and production readiness for the new model. A new chassis frame welding facility featuring advanced welding technologies is also under construction.
Once full production is reached, Toyota expects the Durban plant to manufacture around 140,000 units of the new Hilux annually for both the domestic market and export destinations across Africa and Europe, reinforcing South Africa's importance within Toyota's global production network. The new-generation Hilux has been developed with enhanced safety systems and improved driver-assistance technologies to compete more effectively in an increasingly competitive pickup market.
A vote of confidence
Addressing the ceremony, President Cyril Ramaphosa described the investment as a powerful vote of confidence in South Africa's economy and manufacturing sector, saying projects of this scale demonstrate the country's ability to convert investment commitments into industrial expansion, employment opportunities and export growth. He highlighted the importance of continued collaboration between government, industry and labour in maintaining South Africa's competitiveness as an automotive production destination.
For KwaZulu-Natal, where Toyota has operated for decades, the project further strengthens the province's role as one of Southern Africa's most significant automotive manufacturing centres, supporting thousands of direct and indirect jobs while generating increased demand for locally produced components and logistics services. As global manufacturers continue to diversify production bases and build more resilient supply chains, Toyota's R10.4 billion commitment demonstrates that South Africa remains an attractive destination for large-scale industrial investment.
Sources
SouthernInvest News, Durban. Toyota South Africa Motors ninth-generation Hilux line-off ceremony, Prospecton plant, 16 July 2026. Investment figures and production targets as stated by Toyota at the ceremony.
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Trade & financePress release · Cairo, 26 June 2026
South Africa and Afreximbank Sign US$14 Billion Country Programme to Accelerate Industrial Development and Trade
The African Export-Import Bank and the Government of South Africa, through the Department of Trade, Industry and Competition, have signed a memorandum of understanding establishing a US$14 billion country programme to advance industrial development, trade expansion and regional integration.
Afreximbank press release · Cairo, Egypt · 26 June 2026
Signed in Alamein, Egypt, on 20 June 2026, the MoU establishes a US$14 billion country programme under which Afreximbank will deploy a combination of financing and non-financial interventions in support of South Africa's development priorities. It was signed by Dr George Elombi, President and Chairman of the Board of Directors of Afreximbank, and Hon. Mpho Parks Tau, South Africa's Minister of Trade, Industry and Competition — marking a significant step in deepening cooperation following South Africa's accession to the Establishment Agreement of Afreximbank in February 2026.
The MoU seeks to support investments in industrial infrastructure, energy generation and transmission, and other infrastructure that advances South Africa's industrial competitiveness and its trade and investment connections with the rest of the continent. Within it, the Afreximbank Inclusive Development Support Programme for South Africa — with US$3 billion earmarked — is designed to address structural gaps in the economy and expand access to finance for previously disadvantaged groups.
"The country programme will unlock investment flows into strategic sectors of the South African economy … and advance Africa's economic integration."
Unlocking strategic sectors
Dr George Elombi said the memorandum marks a significant step to strengthen the partnership and support South Africa's development priorities — unlocking investment flows into strategic sectors including the processing of mineral and agricultural commodities, expanding trade under the African Continental Free Trade Area (AfCFTA), promoting South African investment across Africa, and advancing financial and economic inclusion, while extending Afreximbank's development footprint across the continent.
Minister Parks Tau said the MoU also seeks to advance the implementation of the AfCFTA by promoting stronger regional value chains and addressing cross-border constraints that continue to inhibit the free flow of goods, services and capital across the continent. Other key areas of collaboration include re-launching and funding the South Africa-Africa Trade and Investment Promotion Programme (SATIPP) 2.0, establishing a South Africa Exim Bank, joint project origination, and financing for the expansion of industrial parks and Special Economic Zones.
About Afreximbank
The African Export-Import Bank is a Pan-African multilateral financial institution mandated to finance and promote intra- and extra-African trade. A strong supporter of the AfCFTA, it launched the Pan-African Payment and Settlement System (PAPSS), adopted by the African Union as the payment platform underpinning the AfCFTA. At the end of December 2025, Afreximbank's total assets and contingencies stood at over US$48.5 billion, with shareholder funds of US$8.4 billion. The Bank is headquartered in Cairo, Egypt.
Sources
Afreximbank press release, Cairo, 26 June 2026 — "Republic of South Africa and Afreximbank sign US$14 billion Country Programme." MoU signed in Alamein, Egypt, 20 June 2026. Figures as stated by the parties.
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PolicySouthernInvest Research Desk · Durban
2nd International SEZ Infrastructure and Investment Conference: the full conference report
More than 1,000 delegates, three heads of government and an independent World Bank review turned Durban into the stage for South Africa's biggest reset of its Special Economic Zones programme — producing fresh investment commitments, two new designations in progress and accountability mechanisms that have never applied to the programme before.
SouthernInvest Research Desk · 2nd International SEZ Conference, Durban · 16–17 July 2026
The conference brought together more than 1,000 delegates from national and provincial government, organised labour, development finance institutions, academia and international SEZ experts. It was the second event of its kind, following the inaugural conference in 2019, and included a two-day exhibition in which operating SEZs presented their tenant companies and investment pipelines alongside the main programme.
Senior government attendance included President Cyril Ramaphosa, who delivered the keynote at the SEZ Achievement Awards Gala Dinner; Deputy President Paul Mashatile, who delivered the closing keynote; and Minister of Trade, Industry and Competition Parks Tau, who opened the conference and chaired much of the proceedings. Private-sector participants included Ford South Africa, DP World, Aspen Pharmacare, AIH Group, Nyanza Light Metals, Afreximbank and Transnet.
"We celebrate the possibility of a South Africa that manufactures more, exports more, innovates more and creates far greater opportunities for its people." — President Cyril Ramaphosa
The dtic set three explicit objectives for the conference: progress the designation of two additional SEZs, Fetakgomo Tubatse and Vaal; secure new investment commitments and partnership agreements; and table an independent World Bank review of the SEZ programme to inform a revised implementation model.
The state of the programme, in numbers
South Africa has 13 designated SEZs across eight of its nine provinces. Key figures presented by Minister Tau:
| Metric | Figure |
| Companies operating within SEZs | 224 |
| Total private investment | R31.7 billion |
| Net investment growth over past 8 years | R17.2 billion |
| Direct jobs created | 28,821 |
| Government infrastructure spend since inception | R12 billion |
A separate World Bank assessment, drawing on surveys of all operational zones, found that SEZs have generated R14.8 billion in revenue and created more than 30,000 jobs. Automotive manufacturing (Tshwane Automotive SEZ) and minerals beneficiation (Richards Bay) are the most advanced sectors, with agro-processing, logistics, green hydrogen and battery mineral processing identified as priorities for future designation.
Investment announced at the conference
At the Tshwane Automotive SEZ (TASEZ), Ford's expansion has unlocked R16 billion in private investment, with a further R5.9 billion from other TASEZ-based suppliers and 3,333 direct jobs created to date. Nyanza Light Metals in Richards Bay reached financial close on phase two of its titanium dioxide project — an R14.5 billion investment expected to create more than 800 direct jobs once operational. The Richards Bay Industrial Development Zone (RBIDZ) presented a pipeline of 24 potential projects with an estimated value of R247 billion.
Other projects referenced included green hydrogen development at Coega, automotive component manufacturing at Dube TradePort, continued expansion at East London, OR Tambo and Nkomazi, and Toyota's R10.4 billion investment at its Prospecton plant, announced separately in the same week.
The World Bank review
The dtic formally tabled an independent World Bank review of the SEZ programme. The review concluded that South Africa has the infrastructure, legal framework and institutional capacity to build a world-class SEZ programme. It drew on surveys across all operational zones, interviews with provincial governments and SEZ businesses, administrative data from the dtic, SARS and National Treasury, and comparative case studies from India, China, Poland, the UAE and Jordan.
Government indicated it will substantially adopt the recommendations through a Revised SEZ Implementation Model, including: a formal five-year intervention framework for underperforming zones; extension of the preferential 15% corporate income tax rate to all SEZs; designation of private-sector industrial parks within all SEZs, modelled on Dube TradePort; formalised service-level agreements across the network; and accelerated build-to-let mixed-use developments to attract SMMEs.
Deputy President Mashatile, in his closing keynote, said South Africa has entered a "third phase" of industrial development and confirmed that underperforming zones could lose their designation if they fail to deliver on jobs, investment and exports. He outlined six criteria to guide future development: infrastructure corridors, natural-resource advantages, industrial parks, district economic planning, socio-economic needs, and community integration.
AfCFTA and regional positioning
A recurring theme was the use of South African SEZs as an export platform into the African Continental Free Trade Area. Minister Tau said the conference was being used specifically to strengthen export pathways available to South African zones through AfCFTA. Delegations from across the Southern African Development Community — Botswana, Namibia, Mozambique, Zambia, Zimbabwe, Angola, Eswatini, Lesotho, Malawi and Tanzania — attended to examine South Africa's governance reforms and incentive structures, ahead of South Africa hosting SADC Industrialisation Week later in July 2026. Automotive components, minerals beneficiation and agro-processing were identified as best positioned for regional value-chain integration.
Formal outcomes versus broader themes
Confirmed outcomes included the tabling of the World Bank review as the basis for a Revised SEZ Implementation Model, progress toward designating the Fetakgomo Tubatse and Vaal SEZs, financial close on Nyanza Light Metals phase two, and new investment and partnership commitments at exhibiting zones. Broader themes that recurred but were not yet formal policy included deeper public-private partnerships, faster investor approvals, better coordination across the three spheres of government, and a shift in emphasis from designating zones to demonstrating export competitiveness and job creation.
Assessment
The conference produced a credible set of investment figures and a formally adopted policy review rather than announcements alone. The Revised SEZ Implementation Model, once finalised, introduces accountability mechanisms — a five-year intervention framework and the potential loss of designation — that have not previously applied to the programme, marking a shift from a designation-focused model to a performance-based one.
Risks to monitor remain: implementation depends on budget allocation and interdepartmental coordination, which have historically been slow; energy and logistics constraints were repeatedly flagged by private-sector panellists as the binding constraint on further investment, not incentive design; and the two new SEZ designations were described as "in progress," not finalised. The R247 billion Richards Bay pipeline and the TASEZ automotive cluster represent the most immediately trackable indicators of whether the conference's commitments are converted into delivery.
Sources
SouthernInvest Research Desk. 2nd International Special Economic Zones Infrastructure and Investment Conference, Durban, 16–17 July 2026. Compiled from: the Department of Trade, Industry and Competition (the dtic); SAnews; The Presidency; TASEZ; Engineering News; Business Report; IOL; allAfrica; Zululand Observer; and Global Africa Network. All figures as presented at the conference; confirm rates and pipeline values with the relevant authority before relying on them.
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PolicySouthernInvest News · Durban
Minister Tau Says South Africa's SEZs Have Attracted R317 Billion as New Strategy Targets Faster Industrial Growth
Trade, Industry and Competition Minister Parks Tau says South Africa's Special Economic Zones programme has attracted R317 billion in investment and created nearly 29,000 direct jobs, underscoring the growing role of SEZs in driving industrialisation across the country.
SouthernInvest News · 2nd International SEZ Conference, Durban · 2026
Speaking during the 2nd International Special Economic Zones Infrastructure and Investment Conference in Durban, Tau outlined government's renewed approach to strengthening the SEZ programme through a revised implementation strategy aimed at improving performance, attracting more investment and accelerating industrial growth. The latest figures show that South Africa's 12 operational SEZs have become a significant pillar of the country's industrial policy, with investment growing across automotive manufacturing, agro-processing, pharmaceuticals, logistics, renewable energy and advanced manufacturing.
"We see SEZs as a critical part of the industrialisation pathway of South Africa."
Reforms already under way
Tau said government has already begun implementing several reforms designed to make SEZs more competitive and investor-friendly, aligned with recommendations from an independent review and forming part of the country's broader Spatial Industrial Development Strategy. Among the proposed measures are extending the 15% corporate income tax incentive across all qualifying SEZs, creating a structured intervention framework for underperforming zones, strengthening municipal service agreements, formalising the SEZ Fund, and encouraging greater private-sector participation through industrial park development.
These reforms, the minister said, are expected to result in more SEZs being designated, increased domestic and foreign investment, stronger export performance and greater opportunities for small businesses operating within industrial value chains.
Reigniting industrialisation
The conference, held under the theme "Reigniting Industrialisation through World-class Special Economic Zones," brought together government leaders, investors, development finance institutions, industry experts and business representatives from across Southern Africa and beyond. Discussions focused on how SEZs can support regional industrialisation, strengthen supply chains and leverage opportunities created by the African Continental Free Trade Area, alongside improving governance, expanding industrial infrastructure and improving energy security.
More than 1,000 delegates attended the two-day event, reflecting growing international interest in the country's industrial development programme. With R317 billion already committed and further reforms being implemented, government believes the next phase will deepen industrialisation, attract new investors and strengthen South Africa's position as a leading manufacturing gateway to African and global markets.
Sources
SouthernInvest News. Remarks by Minister of Trade, Industry and Competition Parks Tau at the 2nd International Special Economic Zones Infrastructure and Investment Conference, Durban. Quote card sourced to SABC News, 14 July 2026. Investment and jobs figures as stated by the minister.
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IndustrialisationSouthernInvest News · Durban
SADC Industrialisation Week 2026 to Showcase Southern Africa's Manufacturing Future
Southern Africa's premier industrial development event, the 9th SADC Industrialisation Week, will take place from 27 to 31 July 2026 at the Durban International Convention Centre, bringing together governments, investors, manufacturers and business leaders to accelerate regional industrialisation and investment.
SouthernInvest News · Durban International Convention Centre · 27–31 July 2026
The event is being organised by the SADC Business Council in collaboration with the SADC Secretariat and Business Unity South Africa (BUSA), alongside South Africa's Department of Trade, Industry and Competition. Held on the margins of the 46th SADC Heads of State and Government Summit, the week-long programme is expected to attract hundreds of delegates from across the region and beyond, reinforcing Southern Africa's commitment to building competitive industries, strengthening regional value chains and increasing intra-African trade.
A platform for investment
Under the banner of regional industrial transformation, the week will feature high-level policy dialogues, investment forums, business-to-business meetings, exhibitions, technical workshops and networking sessions designed to connect investors with opportunities across the 16 SADC member states. A major focus will be unlocking investment in strategic sectors including mineral beneficiation, advanced manufacturing, agro-processing, pharmaceuticals, automotive production, logistics, infrastructure and the green economy.
The programme will also highlight the critical role of Special Economic Zones, industrial parks and regional transport corridors in attracting investment and improving industrial competitiveness, providing a platform for the public and private sectors to identify new opportunities and strengthen regional supply chains. Exhibitions and business matchmaking sessions will allow companies to showcase products, technologies and services while exploring cross-border partnerships.
Part of a longer roadmap
SADC Industrialisation Week forms part of the broader implementation of the SADC Industrialisation Strategy and Roadmap 2015–2063, which seeks to transform the region from an exporter of raw materials into a globally competitive manufacturing hub, with strong emphasis on value addition, industrial diversification, technology adoption, infrastructure development and private-sector-led growth. As Southern Africa positions itself as an increasingly attractive destination for manufacturing and industrial investment, the 2026 edition is expected to reinforce regional cooperation while creating new opportunities for trade, investment and sustainable economic growth.
Sources
SouthernInvest News. 9th SADC Industrialisation Week (SIW 2026), Durban International Convention Centre, 27–31 July 2026. Organised by the SADC Business Council with the SADC Secretariat, BUSA and the dtic. Programme details as announced.
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Zonessoutherninvest.africa · Editorial feature
SEZ Achievement Awards 2026: Recognising Excellence Across South Africa's Special Economic Zones
The SEZ Achievement Awards, presented during the 2nd International Special Economic Zones Infrastructure & Investment Conference, celebrated the organisations driving South Africa's industrialisation agenda — recognising measurable impact, not aspiration.
SouthernInvest.africa · Editorial feature · 2nd International SEZ Conference, Durban
The SEZ Achievement Awards recognised measurable excellence in investment attraction, governance, infrastructure delivery, job creation and investor facilitation, highlighting the pivotal role Special Economic Zones play in attracting capital, expanding manufacturing and creating sustainable employment.
Rather than rewarding ambition alone, the awards focused on evidence-based performance against clearly defined metrics. Winners demonstrated excellence across operational delivery, governance, investor confidence and strategic alignment with national industrial priorities.
"The awards recognise measurable impact — not aspiration — and highlight the SEZs setting the benchmark for industrial growth."
The evening's highest honours
Among the evening's highest honours, Coega SEZ was named SEZ of the Year for its outstanding overall performance across investor attraction, industrial impact, governance, sustainability and job creation. Tshwane SEZ received the Best Special Economic Zone Newcomer award in recognition of its rapid foundational progress, infrastructure rollout and future growth potential. O.R. Tambo SEZ was recognised as the Most Improved SEZ after demonstrating measurable progress in investment attraction, operational performance and infrastructure delivery.
Richards Bay Industrial Development Zone was honoured as SEZ Investor of the Year, recognising significant investment impact, localisation and employment creation. Atlantis SEZ received the Demonstration of Good Governance Award for institutional integrity, transparency and compliance with statutory requirements. Dube TradePort SEZ earned the Investment Facilitation Award for outstanding investor support, pipeline conversion and tenant aftercare.
Collectively, the winners illustrate the growing maturity of South Africa's SEZ programme and reinforce the importance of accountable governance, competitive infrastructure and investor-focused service delivery. As the country seeks to accelerate industrialisation, the achievements recognised by these awards provide practical examples of excellence that other zones can emulate.
SouthernInvest.africa congratulates all winners and believes these awards will help strengthen confidence in South Africa's SEZ ecosystem among global investors and development partners.
Award categories, definitions & assessment metrics
| Category | Definition | Key assessment metrics |
| SEZ of the Year | Overall top-performing SEZ | Industrial impact; investor attraction; jobs; governance; energy/security planning |
| Best SEZ Newcomer | Outstanding emerging zone | Infrastructure delivery; compliance; investors; jobs; anchor investment |
| Most Improved SEZ | Greatest measurable improvement | FDI/DDI; tenant growth; land utilisation; jobs; infrastructure completion |
| SEZ Investor of the Year | Outstanding investor contribution | Investment value; employment; localisation; SMME integration |
| Demonstration of Good Governance | Institutional excellence | Compliance; risk management; transparency; financial accountability |
| Investment Facilitation | Outstanding investor services | Pipeline conversion; tenant retention; reinvestment; aftercare |
Award winners
- SEZ of the Year: Coega
- Best SEZ Newcomer: Tshwane
- Most Improved SEZ: O.R. Tambo
- SEZ Investor of the Year: Richards Bay IDZ
- Demonstration of Good Governance: Atlantis
- Investment Facilitation: Dube TradePort
Sources
SouthernInvest.africa editorial feature. SEZ Achievement Awards presented at the 2nd International Special Economic Zones Infrastructure & Investment Conference, Durban. Award categories, metrics and winners as announced at the ceremony.
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PolicyThe Presidency · Durban, 16 July 2026
President Ramaphosa tells SEZ conference: R890bn in commitments, R12bn bound for the zones
In his keynote at the 2nd International Special Economic Zones Conference gala dinner and awards ceremony in Durban, President Cyril Ramaphosa framed Special Economic Zones as "engines of economic transformation" and set out the investment, reforms and continental ambitions behind the programme.
The Presidency of the Republic of South Africa · Nkosi Albert Luthuli ICC, eThekwini · 16 July 2026
Speaking at the Presidential Gala Dinner and Awards Ceremony, President Ramaphosa said the evening was about celebrating possibility — "the possibility of a South Africa that manufactures more, exports more, innovates more and creates far greater opportunities for its people." He described Special Economic Zones not as designated industrial sites but as places "where policy is translated into production, where investment becomes enterprise, where innovation becomes competitiveness, and where hope becomes opportunity."
A record investment pipeline
The President pointed to the Sixth South Africa Investment Conference three months earlier, which secured a record R890 billion in investment commitments spanning mining and mineral beneficiation, automotive manufacturing, agro-processing, tourism, renewable energy, digital technologies and the green economy. Much of that investment, he said, will find its home within the country's Special Economic Zones.
In the automotive sector alone, approximately R12 billion of planned investment is destined for the SEZ programme. He singled out the Tshwane Automotive Special Economic Zone, where investment by Ford and its component manufacturers has already created more than 3,000 permanent jobs.
A recalibrated industrial policy
Ramaphosa said South Africa had recently completed a comprehensive recalibration of its industrial policy through a new Industrial Development Strategy built on three pillars: decarbonising industry, diversifying export markets and accelerating digital industrialisation. A complementary Spatial Industrial Development Strategy introduces a strengthened SEZ model designed to spread benefits to surrounding communities and support local enterprise.
He cited an independent World Bank assessment finding that the country's SEZs have attracted more than R34 billion in investment, created over 30,000 direct jobs and generated more than R14 billion in revenue for the fiscus. The World Bank has proposed reforms including enhanced investment incentives and the introduction of privately owned Special Economic Zones — recommendations government "will carefully consider."
The next generation of zones
Industrial development, the President argued, is no longer defined only by the production of goods but by technological capability, innovation, sustainability and resilience. He said the zones would play a growing role in advanced manufacturing, electric mobility, renewable energy technologies, green hydrogen, battery manufacturing, digital industries, pharmaceuticals, agro-processing and mineral beneficiation — enabling the country "not merely to export raw materials, but increasingly to export higher-value manufactured products."
He set out reforms already under way to improve the investment climate: reducing regulatory burdens, accelerating permits, licences and environmental authorisations, strengthening customs systems, expanding one-stop investor services, restoring energy security and modernising ports, rail and transport corridors.
Not islands of prosperity
Special Economic Zones "should not be islands of prosperity," Ramaphosa said. Their success must create opportunities for small businesses, support localisation, develop skilled workers, empower women and young entrepreneurs, and stimulate surrounding towns and communities. Welcoming delegates from across the continent, he tied the programme to the African Continental Free Trade Area as "a once-in-a-generation opportunity" to build regional value chains and position Africa as a globally competitive manufacturing destination.
Closing the awards ceremony, he congratulated recipients and reminded the audience that "excellence is never a destination. It is a continuous pursuit" — calling on every zone to keep attracting investment that changes lives and building industries that create lasting prosperity.
Sources
Keynote address by President Cyril Ramaphosa, 2nd International Special Economic Zones Conference Presidential Gala Dinner and Awards Ceremony, Nkosi Albert Luthuli International Convention Centre, eThekwini, 16 July 2026. Issued by The Presidency of the Republic of South Africa (www.thepresidency.gov.za). Figures as stated in the address.
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Tradesoutherninvest.africa · Briefing
Ground Broken on New Botswana City as Country Bets on Diversification and Trade
Botswana has officially launched construction of an ambitious mixed-use development that could redefine the country's economic future, with leaders positioning the project as a catalyst for investment, trade, innovation and job creation.
Intelligence desk · Government briefing, 2026
The groundbreaking ceremony for the proposed New Botswana City, anchored by the Botswana World Trade Centre (BWTC), marks one of the country's most significant urban and economic development initiatives in recent years. The project forms part of Botswana's broader strategy to reduce its long-standing dependence on diamond revenues and build a more diversified, knowledge-driven economy.
A new vision for economic transformation
Speaking at the launch, Botswana President Duma Boko described the development as more than a real estate project, calling it a strategic investment in the nation's future competitiveness.
According to government officials, the New Botswana City is expected to become a regional hub for international trade, investment, exhibitions, business services and innovation. The development is intended to strengthen Botswana's position as a gateway for commerce across Southern Africa while attracting multinational companies seeking a stable investment destination.
The project aligns with Botswana's Economic Transformation Programme, which aims to accelerate industrialisation, expand the services sector and create sustainable employment opportunities.
Beyond diamonds
For decades, Botswana's economy has been underpinned by diamond mining, making it one of Africa's most successful resource-driven economies. However, fluctuating global demand and changing market dynamics have reinforced the need to diversify economic activity.
The New Botswana City represents a deliberate shift towards sectors such as international trade and logistics, business tourism, financial and professional services, digital innovation, technology, commercial real estate and knowledge industries.
Creating a regional business hub
Central to the development is the Botswana World Trade Centre, envisioned as a platform connecting local businesses with regional and global markets. The complex is expected to host international conferences and exhibitions, corporate headquarters, investment promotion activities, trade missions and business support services.
Strategic location strengthens opportunity
Botswana's geographic position places it at the centre of Southern Africa, offering access to several regional markets through the Southern African Development Community (SADC). Ongoing investments in transport infrastructure, including rail upgrades, road improvements and regional logistics corridors, are designed to improve connectivity between Botswana and key ports in Namibia, South Africa and Mozambique.
Challenges ahead
While the vision is ambitious, successful implementation will depend on sustained investment, efficient project delivery and the continued development of supporting infrastructure. Analysts note that long-term success will require attracting anchor investors, maintaining policy certainty and ensuring the city develops as an integrated economic ecosystem rather than a standalone property development.
Sources
Government briefing, 2026; New Botswana City / Botswana World Trade Centre launch remarks. Figures and timelines as stated at launch; confirm before relying on them.
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InfrastructurePress release · Lagos, 3 July 2026
AFC Achieves Financial Close on Landmark US$753MM Lobito Corridor Railway Project
Africa Finance Corporation has announced the successful financial close of the US$753MM Lobito Corridor Railway Project in Angola, one of Africa's most significant cross-border transport infrastructure transactions.
AFC & Eaglestone press release · Lagos, 3 July 2026
The transaction, which follows key financing agreements signed late last year, marks a major milestone for regional integration and economic transformation in Africa. AFC acted as Co-Financial Adviser alongside Eaglestone, leading on the structuring and mobilisation of financing for the Borrower and Concessionaire, Lobito Atlantic Railway S.A. (LAR), a joint venture between Mota-Engil and Trafigura.
The financing includes US$553 million from the U.S. International Development Finance Corporation (DFC) and US$200 million from the Development Bank of Southern Africa (DBSA). The funding supports the rehabilitation, upgrade and long-term operation of the 1,300-kilometre brownfield rail corridor linking the Port of Lobito in Angola to the Democratic Republic of Congo border.
Samaila Zubairu, President & CEO of Africa Finance Corporation, said the close underscores AFC's leadership in delivering complex transformational infrastructure that advances Africa's industrialisation and regional integration, noting the project will strengthen regional connectivity, facilitate trade, and open new opportunities for economic growth across Angola and the wider region.
Nuno Gil, Founding Partner of Eaglestone, described reaching financial close as the culmination of years of work and a defining moment for infrastructure finance in Sub-Saharan Africa, saying the transaction demonstrates that complex, multi-lender, cross-border project financings can be structured and closed on the continent.
About AFC
AFC was established in 2007 to be the catalyst for pragmatic infrastructure and industrial investments across Africa. Nineteen years on, AFC has 48 member countries and has invested US$18.5 billion across Africa since inception, across power, natural resources, heavy industry, transport and telecommunications.
Sources
AFC & Eaglestone press release, Lagos, 3 July 2026. Transaction figures as stated by the parties.
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TradeBriefing · Dar es Salaam, 14 July 2026
Tanzania Unveils Plan to Transform TAZARA into Southern Africa's Leading Trade Corridor
Tanzania has set out a modernisation agenda for the Tanzania–Zambia Railway (TAZARA), aiming to restore the line's competitiveness and position it as a strategic link between the Port of Dar es Salaam and the wider Southern African region.
Intelligence desk · sourced to The Citizen (Mwananchi Communications), 16 July 2026
Speaking at TAZARA's golden jubilee — the railway's 50th anniversary, marked on 14 July in Dar es Salaam — Tanzania's Minister for Transport, Prof. Makame Mbarawa, announced a vision built on modernising infrastructure, adopting new technology and strengthening management systems. He framed the effort as more than infrastructure work, describing it as an investment in regional integration and industrial development, and said the intent was to help TAZARA "reclaim its rightful place as one of Africa's premier railway systems."
A corridor to the Port of Dar es Salaam
The plan positions TAZARA as a strategic transport link connecting the Port of Dar es Salaam with Zambia and the broader Southern African region. The transformation agenda covers upgrading infrastructure, introducing modern rolling stock, adopting new technologies, strengthening institutional systems and improving operational efficiency.
Zambia sees a competitive route
Zambia's Deputy High Commissioner to Tanzania, Anthony Bwalya, pointed to rising demand for reliable transport corridors as mining, agriculture, manufacturing and trade expand. A modern TAZARA, he said, would give Zambia a competitive route to the Port of Dar es Salaam and reduce transport costs, renewing the railway's purpose for the 21st century.
Special economic zones along the line
The Chinese Ambassador to Tanzania, Chen Mingjian, pledged China's support for industrialisation along the corridor through industrial parks and new special economic and free trade zones, describing the railway as "a symbol of cooperation, self-reliance and friendship among African countries."
Reliability, safety and customer care
TAZARA Director General Eng. Bruno Ching'andu said the revitalisation programme offers renewed hope for restoring operational capacity, supporting infrastructure rehabilitation, modern technology, better management and skills development. The next chapter, he said, must focus on reliability, safety, efficiency and customer care for the traders, farmers, miners, manufacturers and tourists the line serves.
Sources
The Citizen (Mwananchi Communications Limited), "Tanzania unveils plan to transform TAZARA into Southern Africa's leading trade corridor," 16 July 2026. Remarks as reported from the TAZARA golden jubilee, Dar es Salaam, 14 July 2026.
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PolicyBriefing · World Bank study & the dtic, 2026
South Africa's SEZ Programme Receives Strong Backing from World Bank
A comprehensive World Bank study recognises the country's progress while identifying opportunities to strengthen its industrial development strategy.
Intelligence desk · World Bank study & the dtic, 2026
The report, welcomed by Minister of Trade, Industry and Competition Parks Tau, concludes that South Africa has the infrastructure, legal framework and institutional capacity to build a globally competitive SEZ programme. The study assessed all designated zones and compared South Africa's performance with leading international SEZ programmes in China, India, Poland, the United Arab Emirates and Jordan.
The findings show the country's nine operational SEZs have attracted 224 investors and secured more than R31.7 billion in investment. The zones have generated R14.8 billion in revenue and created 28,821 permanent jobs.
Room to improve
Among its recommendations is extending the preferential 15% corporate income tax rate to all qualifying Special Economic Zones. At present only some zones benefit from this incentive. The study also recommends a structured five-year support programme for underperforming zones and more private-sector participation through privately developed industrial parks, using the Dube TradePort model as an example.
TASEZ singled out as a model
The report highlights the Tshwane Automotive SEZ, which during construction contributed about one percent to South Africa's GDP and created more than 6,000 construction jobs. Since becoming operational it has created over 3,400 permanent jobs and generated more than R1.7 billion in procurement opportunities for small businesses.
The release comes just days before the 2nd International Special Economic Zones Infrastructure and Investment Conference, which takes place in Durban on 16 and 17 July 2026.
Sources
World Bank SEZ study; the dtic media release, 2026. Investment and jobs figures as reported by the dtic.
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IncentivesIntelligence desk · the dtic, 2026
The SEZ incentive package, explained in 4 lines
Reduced 15% corporate tax, customs relief, a building allowance and the employment tax incentive — what qualifies and what doesn't.
Intelligence desk · sourced to the dtic, 2026
Four incentives sit at the centre of South Africa's SEZ offer. None is automatic. Each carries its own test, and a company can qualify for one without qualifying for the others.
1. Reduced corporate income tax
Certain companies pay 15% instead of the 28% headline rate. To get there, the business has to sit inside an SEZ that the Minister of Finance has approved, be incorporated or effectively managed in South Africa, and earn at least 90% of its income from work carried on inside that zone. Firms doing activities listed in Government Gazette 39930 are excluded.
2. VAT and customs relief
This one is tied to the Customs-Controlled Area (CCA). Import duty is rebated and VAT is dropped on production-related imports — raw materials, machinery, assets — as long as the finished goods are headed for export. Some locally procured supplies get VAT suspension too, and customs handling is meant to move faster inside the CCA.
3. The building allowance
Put up or improve a building inside an approved SEZ and you can write it off at 10% a year over ten years, ahead of the normal schedule. A short exclusion list applies: spirits and wine, beer and malt, tobacco, arms and ammunition, and biofuels that harm local food security don't qualify.
4. The employment tax incentive (ETI)
Any employer in any SEZ can claim it for lower-salaried staff (under R60,000 a year). The usual age cap doesn't apply inside a zone, so hiring an older worker still counts. The employer claims it back against PAYE, and the worker's wage is untouched.
The short version: the 15% rate and the building allowance need Ministerial approval of the zone; customs relief needs you inside the CCA; ETI is the one every SEZ employer can use.
Sources
the dtic, South Africa's Special Economic Zones brochure (June 2026), p.37–39; SEZ Act 16 of 2014; SARS guidance (www.sars.gov.za). Confirm each rate before relying on it.
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Grid & powerIntelligence desk · PMG, Oct 2025
Inside TASEZ's grid outage — and the fix
A parliamentary oversight report shows Tshwane Automotive SEZ lost its VIP electricity grid to pylon theft, and is running on solar, gas and diesel backup.
Intelligence desk · sourced to PMG, Oct 2025
TASEZ is Africa's first automotive city — more than 200 hectares in the City of Tshwane, built as a joint project between the dtic, the Gauteng government and the city, and wired for the three big vehicle makers next door.
Then the pylons got stolen. According to an October 2025 oversight report from Parliament's Portfolio Committee on Trade, Industry and Competition, the zone's priority ("VIP") electricity grid was discontinued after theft, and TASEZ moved onto a mix of solar-plus-battery, gas and diesel to keep production lines running while the connection is reinstated.
For a site whose whole pitch is uninterrupted, freight-oriented manufacturing with rail links to the ports, losing grid power is not a footnote. The backup keeps the OEMs supplied, but diesel and gas cost more per unit than the grid, and that difference lands on tenants.
The rail side has moved faster. National Treasury funded a Tshwane–Gqeberha rail upgrade in November 2024 to take pressure off the congested Durban port corridor. The brochure doesn't publish an exact port-kilometre figure for the zone.
Sources
Parliamentary Monitoring Group, Portfolio Committee on Trade, Industry and Competition oversight report, Oct 2025; the dtic SEZ brochure (June 2026), p.32–33.
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EnergyIntelligence desk · sourced reporting, 2021–2022
Freeport Saldanha's R21bn energy pipeline, unpacked
South Africa's first port-based SEZ is positioning itself as a green hydrogen hub — here's what's confirmed and what isn't yet public.
Intelligence desk · sourced reporting, 2021–2022
Freeport Saldanha was designated back in 2013, and it did something no other South African zone had done — it built the SEZ around a working port. It sits inside the deep-water port of Saldanha Bay, with links by sea, land, rail and air, and it started life as an oil, gas and marine services hub.
That brief has shifted. The zone now markets itself as a green hydrogen hub, and its published offer covers upstream oil and gas support, marine fabrication and vessel repair, renewable energy and green hydrogen, plus specialised logistics and engineering. Plots come pre-serviced with industrial zoning, EIA approvals already in place, and secured development rights — the "pre-approved" model it uses to cut time-to-market.
What's confirmed: the port location, the green-hydrogen designation, the pre-approved plots. What isn't yet fully public: firm figures on the widely reported multi-billion-rand energy pipeline. Treat the R21bn tag as reported, not gazetted, until the operator publishes it.
Sources
the dtic SEZ brochure (June 2026), Freeport Saldanha IDZ profile, p.18–19; reported energy-pipeline figures, 2021–2022.
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TradeIntelligence desk · the dtic background
What the AfCFTA means for SADC manufacturers
A cross-border framework expanding market access across 54 countries — and why zone-based manufacturers are positioned to benefit first.
Intelligence desk · the dtic background
The African Continental Free Trade Area connects 54 countries into one market. For a manufacturer, the pitch is simple: make it once, sell it across borders that used to each carry their own tariff wall.
Zone-based producers start ahead. A company inside a Customs-Controlled Area already imports raw materials with duty rebated and VAT dropped, provided the finished product is exported. Layer AfCFTA's tariff access on top of that, and the maths on a factory in Coega or Richards Bay changes — cheaper inputs in, lower barriers out.
South Africa's SEZ programme is built with this in mind. The dtic ties the zones to the country's industrial policy, the National Development Plan 2030 and the AfCFTA directly. The zones that win here are the ones with real port and rail access: Coega and its two seaports, Dube TradePort's air-and-sea position north of Durban, Richards Bay on the N2 corridor to Maputo.
Sources
the dtic SEZ brochure (June 2026), background section; AfCFTA framework.
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ZonesIntelligence desk · the dtic profile
Coega at 25: why South Africa's oldest zone is still its largest
Established in 1999, designated an SEZ in 2017 — 9,003 hectares, 14 zones and the only South African SEZ with two seaports.
Intelligence desk · the dtic profile, p.10–11
Coega started in 1999, opened as an Industrial Development Zone in 2001, and became an SEZ in 2017. It is the oldest spatial development zone in the country and still the biggest.
The numbers do the talking. 9,003 hectares of serviced industrial land, split into 14 zones tuned for heavy, medium and light industry. It sits next to the deep-water port of Ngqura, a transshipment hub, and it's the only South African SEZ with two seaports — Gqeberha and Ngqura — carrying container, bulk and break-bulk terminals.
The zone's line is that it's already finished: roads, bulk water and sewer, telecoms sleeves, HV and MV substations and overhead lines all in place, ready for immediate use. For an investor, "ready now" is worth as much as any tax rate — it removes the wait between signing a lease and switching on a line.
What 342MW actually means for tenants
Coega also hosts the Dedisa gas-peaking power station, a 342MW facility built and reported on between 2016 and 2023. It's worth being precise about what that capacity is for: Dedisa is an Eskom-linked independent power producer sited within the zone, not a block of reserved capacity handed out to tenants on request. The dtic brochure itself doesn't publish a dedicated tenant supply-capacity figure, so a prospective investor should treat "342MW on-site" as evidence the zone sits on strong grid infrastructure — not as a number to plug into a factory's own power budget without confirming an allocation with Coega Development Corporation directly.
Sources
the dtic, South Africa's Special Economic Zones brochure (June 2026), Coega SEZ profile, p.10–11; Coega Development Corporation reporting & Engineering News, 2016–2023 (Dedisa gas-peaking plant, 342MW).
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ZonesIntelligence desk · the dtic profile
Namakwa, designated 2024: the zinc-anchored newcomer
South Africa's newest SEZ — 1,270 hectares in Aggeneys, Northern Cape, built around Vedanta's Gamsberg mine and a planned smelter.
Intelligence desk · the dtic profile, p.24–25
The Namakwa SEZ is the newest of the thirteen. It was designated in May 2024, covers 1,270 hectares of serviced industrial land in Aggeneys, and its whole logic is mineral beneficiation — turning what comes out of the ground into finished product before it leaves the region.
The anchor is Vedanta Zinc International's Gamsberg mine and its planned smelter, with further plans around rare earth elements, agro-processing and manufacturing. Location is the pitch: the zone sits on the N14 and the SIP 5 corridor, with connections to Saldanha Bay and Cape Town ports, the planned Boegoebaai port, regional rail, and the South Africa–Namibia border.
Infrastructure is already in — bulk services, power, secured water — which for a zone this new is the difference between a designation on paper and a site an investor can actually build on.
Sources
the dtic, South Africa's Special Economic Zones brochure (June 2026), Namakwa SEZ profile, p.24–25.
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TenureIntelligence desk · SEZ lease terms
Why a 50-year lease changes the arithmetic
Half a century of tenure turns a factory from a cost you rent into an asset you plan around.
Intelligence desk · SEZ lease terms
A short lease makes you cautious. You don't sink capital into a building you might have to walk away from in ten years. A 50-year lease removes that hesitation.
Over that horizon the SEZ building allowance actually pays out in full — 10% a year for ten years against a structure you'll still be using four decades later. The 15% corporate tax rate compounds across the life of the investment instead of a short window. And the phased structure — 15 years, then 20, then 15 — gives both sides review points without forcing a cliff-edge renegotiation.
The point isn't the length for its own sake. It's that long tenure lets an investor treat the zone as a base, not a stopover.
Sources
SEZ lease terms; the dtic SEZ brochure (June 2026); SEZ Act 16 of 2014. Confirm terms before relying on them.
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