Vaal SEZ gets R1.4 Billion boost from USA
Gauteng Trade Mission Spurs Major Investment and Green Industry Growth
Gauteng MEC for Economic Development, Tasneem Motara, and United States Consul-General Vincent Spera have announced significant developments following their recent trade mission.
From August 25 to September 3, this joint effort led by Motara and Spera brought together key participants like Economic Planning Deputy Director General Bulumko Nelana and Vaal Special Economic Zone (SEZ) CEO Xola Sithole, resulting in a substantial boost for the Sedibeng District.
Citi-Bank has committed to a substantial investment of R1.4 billion in the SEZ, setting the stage for the development of an airport in the Vaal area.
This move is expected to stimulate the growth of manufacturing and agriculture hubs in the region.
SEZs are designated areas tailored for specific economic activities, supported by unique arrangements and systems to drive industrial development. In the past, early industrialization in the Vaal had negative environmental consequences. However, the government’s focus is now shifting towards a greener and more inclusive second industrialization, aiming to create a thriving smart city that leaves no one behind.
The Vaal River SEZ envisions becoming a premier hub for low-carbon manufacturing, renewable energy production, and the Hydrogen Economy. It also seeks to lead in cannabis cultivation and processing in Africa, offering opportunities to emerging farmers and industrialists. Moreover, the SEZ aims to be a central point for the food industry, agriculture, logistics, tourism, and urban development, driving growth and innovation across these sectors.
MEC Motara emphasized the crucial role of U.S. investment in South Africa’s economy and its potential for the Gauteng economy. She stated, “The agreements and partnerships forged during this visit are projected to result in billions of dollars in investment and economic growth. These developments are expected to have a positive ripple effect, creating employment opportunities, driving innovation, and improving the overall quality of life for residents of Gauteng.”
U.S. companies have played a significant role in South Africa’s economy, contributing 10% to the nation’s GDP. Gauteng, in particular, hosts key players like the Ford Motor Company in the Tshwane SEZ, contributing 1% to the country’s GDP.
Consul-General Spera noted that U.S. companies had pledged investments totaling approximately R4 billion in South Africa in the last six months, employing 220,000 South Africans. He expressed enthusiasm about the potential for economic growth, innovation, and collaboration between the United States and Gauteng, saying, “We are excited about the tremendous potential for economic growth, innovation, and collaboration from this visit. Together, we are poised to achieve great things.”
This post-mission event highlighted the enduring partnership between the United States and South Africa, achieving key objectives such as strengthening investment promotion, deepening collaboration in innovation, expanding Gauteng air access, fostering a sustainable energy transition, and engaging in the African Growth and Opportunity Act (AGOA) Forum.
The Gauteng Provincial Government and the U.S. anticipate that the working group framework established during the mission will structure their continued engagement, leading to greater growth and prosperity for both countries and encouraging policies that increase openness and competition within the region.