By Charmaine Ndlela
The chairperson of the Special Economic Zones (SEZs) Advisory Board, Fish Mahlalela, has called on chief executive officers of the country’s SEZs to ensure that the zones translate investment and infrastructure into jobs, particularly for young people.
Mahlalela was speaking during the two-day SEZs CEOs Forum hosted by the Department of Trade, Industry and Competition (the dtic) at the Coega SEZ in Gqeberha.
The forum focused on aligning the implementation plans of the country’s SEZs with the five-year implementation plan of the new Spatial Industrial Development (SID) strategy.
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“I am convinced that what was discussed here over the two days will manifest itself in the work on the ground that all of you will be able to implement as part of your plans to use the SEZs to change the economy of your provinces,” he said.
“These plans must enable you to contribute in creating jobs in your areas, using the SEZs as centres of industrialisation, hubs of manufacturing and academies of skills development.”
He said SEZs should also provide infrastructure and unlock opportunities for micro, small and medium enterprises (MSMEs), which he identified as critical drivers of job creation.
Mahlalela warned that the focus on employment comes at a critical time as South Africa continues to grapple with high unemployment, particularly among young people.
“If the crisis of youth unemployment is not attended to it may result in unpleasant consequences. Unemployment in the country is extremely high, and if no intervention is done, we might find ourselves in a very difficult situation,” he said.
South Africa’s official unemployment rate rose to 33.6% in the second quarter of 2026 from 32.7% in the previous three months, according to Statistics South Africa. Among people aged 15 to 34, the unemployment rate climbed to 47.4%, with about five million young people unemployed.
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He said SEZs had an important role to play in the broader government response to high unemployment and weak economic growth.
“Therefore, SEZs become one of the key elements in the broader scheme of things to change this situation. SEZs should assist in intervening and addressing this crisis,” Mahlalela said.
“There is a huge expectation for the SEZs to make sure that they contribute and assist the country in addressing this problem of unemployment, especially youth unemployment.”
Mahlalela also called on SEZ chief executives to establish skills academies as part of the new SEZ model proposed under the SID strategy.
He said developing a skilled workforce should be central to the role of SEZs, particularly as industries face shortages of skills needed by the economy.
“One of the problems that the country is facing is the shortage of skills that the economy requires. The SEZs should play a role in developing the skills that they require,” he said.
He further urged SEZs to strengthen relationships with communities surrounding them, saying that local participation would be critical to the success of industrial development initiatives.
“SEZs should also prioritise community involvement and participation in the SEZs. No one should be left behind in the implementation of these plans,” Mahlalela said.
“It is fundamental that we move along with the local people so that they appreciate the work that the SEZs are doing. This will enable them to provide the necessary support that the SEZs require to make an impact in their environment.”
The Acting Deputy Director-General of Investment and Spatial Industrial Development at the dtic, Maoto Molefane, said the forum was aimed at creating a coordinated approach to implementing the SID strategy over the next five years.
He said the discussions would help the department and SEZs chart a common path towards addressing some of the country’s structural economic challenges.
“The session enabled us to chart the way forward towards addressing the challenges that are facing the country, such as the re-industrialisation phenomenon, low Gross Domestic Product growth, and high unemployment, through the implementation of the SID strategy. But also, to try and attract investments into the country,” Molefane said.
Molefane acknowledged that SEZs could not resolve all of South Africa’s economic challenges on their own, but said they could play a significant role in driving industrialisation and spatial development.
“We have a high level of unemployment rate in the country, with companies closing down, leading to low growth in the economy. The discussions centred on how we can effectively use the SEZs to address some of these challenges,” he said.
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“We accept that SEZs will never be a panacea for all these challenges, but we are convinced that they can make a huge impact in terms of driving industrialisation and spatial development in the country.”
He said the forum had also given the dtic an opportunity to understand what individual SEZs intend to implement during the next five years.
The five-year implementation plan includes converting more than R380 billion in combined SEZ investment pipelines into operational investments, alongside infrastructure development, the operationalisation of new SEZs and efforts to strengthen the capacity of SEZs.
South Africa has 12 designated SEZs, nine of which were operational as of May, according to Cabinet. The operational zones hosted 224 investors, representing about R31.7 billion in cumulative investment and 28,821 jobs. The R380 billion cited in the new five-year plan represents the substantially larger investment pipeline that government hopes to convert into operating projects.
“We managed to provide inputs on the direction that we as the dtic think they should focus on. The CEOs also learnt from each other on how the SEZs can contribute in driving industrialisation,” Molefane said.
The forum also highlighted challenges that continue to constrain the growth of SEZs, including policy uncertainty.
Molefane said the department had left the forum with a clearer understanding of the areas requiring intervention to support the smooth rollout of the SEZ programme.
“We left with clear areas of concern that we as the dtic need to address going forward to ensure the smooth rollout of the SEZs Programme,” he said.
