JEWEL IN THE CROWN - JSE MAGAZINE

JEWEL IN THE CROWN

The Gauteng Industrial Development Zone aims to not only make the province a competitive business hub but create employment opportunities for locals too

The Gauteng Industrial Development Zone (GIDZ) is a subsidiary of the Gauteng Growth and Development Agency (GGDA), and was established to develop and operationalise the industrial development zone at OR Tambo International Airport (ORITA-IDZ) – which is located at Africa’s largest and busiest international airport.

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Vision
In line with its mandate, the objective of the GIDZ is to help spur on inclusive and competitive economic growth and development in the province. It also aims to position Gauteng as a globally competitive region by enabling focused manufacturing and beneficiation programmes at the IDZ. These will enable inclusive, export-driven economic growth and also ensure job creation, economic inclusion and equity.

Mission
The GIDZ aims to promote manufacturing and beneficiation by identifying, scoping, designing and implementing focused programmes that are able to increase industrialisation and manufacturing capabilities in targeted, export-driven sectors linked to the air-freight value chain.

Simultaneously, the GIDZ also wants to help create jobs by establishing sector-specific platforms for skills development and facilitating enterprise links between established small, medium and micro enterprises (SMMEs).

Values
GIDZ operations are based on people and performance values. With regard to people, the GIDZ operates with integrity and each person’s opinion is valued, regardless of rank. Respect is given across cultures, religion, gender and race.

The GIDZ is transparent, shares information and knowledge, and encourages a culture of learning while providing an environment that is open, safe and responsive. It empowers its employees by encouraging and facilitating personal and professional development to promote an efficient and successful organisation.

With regard to performance, the GIDZ creates excellence by striving for creative and continuous improvement through our innovative attitude so that we achieve top-quality work.

The GIDZ is goal-driven and delivers on clearly defined objectives through well co-ordinated efforts, in an effective and efficient manner. Our professionalism means that we constantly perform with integrity and this makes us accountable. The GIDZ, in partnership with the Department of Trade and Industry (dti) and other key stakeholders, has undertaken a commercial case study, market analysis and business case for the ORTIA-IDZ. A strategic approach has been adopted to develop the IDZ programme phases noncontiguously.

The IDZ programme is strategically linked to the broader Ekurhuleni Aerotropolis Programme, with the first phase being the creation of a Jewellery Manufacturing Precinct (JMP).

Further investigations are under way to develop parts of the programme so that expansion concepts linked – but not limited – to the airfreight logistics industry can be identified.

Goals
The goal of the GIDZ is in line with the Special Economic Zone (SEZ) Act 16 of 2014 and aims

to help:

  • Accelerate industrialisation and promote the development of targeted industrial capacities to promote economic growth and create sustainable, quality jobs. These will support the Industrial Policy Action Plan, New Growth Path, National Development Plan, transformation, modernisation, re-industrialisation as well as regional development strategies.
  • Create a regionally diversified industrial economy through new industrial hubs.
  • Attract domestic and foreign direct investments and technologies in its designated IDZ as well as other categories of SEZs defined in the act.

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Objectives
The objectives of the GIDZ are to:

  • Create an industrial complex that will provide a strategic and national economic benefit to targeted investors and industries in the tradable services and manufacturing sector.
  • Enhance the development of infrastructure that is needed to support the development of targeted industrial activities.
  • Provide a basis to attract foreign and domestic direct investment.
  • Provide a dedicated location for the establishment of targeted investments.
  • Enable the beneficiation of mineral as well as other natural resources.
  • Take advantage of the existing industrial and technological capacity, promote integration with the local industry and increase value-added production.
  • Promote regional development.
  • Create decent work and other economic and social benefits in the region. These would include broadening economic participation, which could be achieved by promoting SMMEs in addition to co-operatives.
  • Promote skills and technology transfer.
  • Provide a basis for the generation of new and innovative economic activities.

To maximise the goals and objectives of the GIDZ, the GIDZ will promote the development of new, expansion of existing, and the retention of marginal industries. To realise this, an attractive proposition will be created that shows tangible benefits to the decision-makers in these industries.

This will be done by enhancing an understanding of the associated strengths, weaknesses, opportunities as well as threats of each sector, and by developing a GIDZ proposition that responds accordingly.

The approach of the IDZ will be to focus on identifying the most feasible industries that will present the best opportunity to maximise the goals of its programmes. This will also align to the 10 Pillar development programme of the Gauteng provincial government that is aimed at radically transforming, modernising and reindustrialising the Gauteng province over the next five to 15 years.

In reply to this call of the province, the GIDZ is already facilitating the creation of the JMP as Phase I of its development programme. The JMP will be a one stop hub for design, creativity, craftsmanship trade and other support services related to the jewellery industry.

The Precinct will provide a secured location for the beneficiation of precious and semi-precious minerals and stones. It will also create a platform for the existing industry manufacturers who can gain access to global markets by increased value-added production within an IDZ, thereby creating decent work, promoting skills and technology transfer.

The Jewellery Manufacturing Precinct
The development of the JMP provides for two specific work streams and packages, namely the design and development of bulk infrastructure, enablement works and top infrastructure, as well as tenant and investor attraction.

Regarding infrastructure development, a mixed-use master plan has already been finalised for the development of some 30 295 m² of infrastructure space, which includes:

  • Industry-specific facilities for precious metal and gold beneficiation, which will be located in a gated and highly secure customs-controlled area (CCA) where jewellery manufacturing and beneficiation can take place. The CCA will be effectively managed in line with SARS procedures and guidelines, and will provide benefits to businesses within the CCA. These include import duty rebates on the import of production-related raw materials (including machinery and assets), and VAT-exemption on goods that are produced for export.
  • Space for the beneficiation process as well as business services.
  • An investor support services platform located in the multi-commodities centre of the JMP. This platform, known as the one-stop-shop (OSS), is a dti initiative that aims to facilitate easy permit and licence application and approval processes for investors. It will help to provide efficient and effective investor after-care service. Key features of the OSS include:
  • Helping investors plan their developments in terms of their land assessment and office space allocations. 
  • Assisting with licence and permit applications.
  • Helping investors access applicable incentives.
  • Acting as a single point of reference for government processes.

The construction of the first part of the infrastructure work steam (the bulk infrastructure), and tenant and investor engagements, is scheduled to start during the second half of 2015. As part of the Gauteng IDZ’s objective to market and release serviced land in a way that enables potential tenants and investors to make maximum use of space, the GIDZ’s tenant and investment process will be facilitated by external parties.

These parties will have the experience and capabilities to engage with local, regional and global market players in the jewellery manufacturing, luxury goods and light manufacturing sectors, thereby ensuring that high-value tenants with a regional and international footprint are attracted to the zone.

Among others, the following credentials will be considered when selecting tenants for the JMP:

  • The proposed tenant’s experience in the manufacturing of jewellery and/or high-value,
    low-mass products that use air freight as a mode of transportation.
  • Their local and global footprint.
  • Their access to global markets.

The GIDZ envisages that this world-class, globally competitive manufacturing space within the designated IDZ will be operational by 2017. Potential investors are encouraged to contact the Gauteng IDZ to be part of this exciting opportunity.

Among others, investment opportunities are available for property investment and development financing institutions that want to partner with the Gauteng IDZ in the development of a light manufac-turing precinct with locational competitive linkages to ORTIA, thereby ensuring return on investment in a precinct within proximity to Africa’s largest air cargo and logistics hub.

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Skills development
In 2012, the GGDA initiated a jewellery design training initiative, the Design @50 programme, which forms part of the JMP which, in turn, is an anchor project of the GIDZ.

The programme provides for the enrolment of 15 students with a background in jewellery design, and is undertaken in co-operation with the Jewellery Council of South Africa. It was launched at a new training facility at Rand Refinery, Germiston, in April 2013.

The objective of the project is to train attendees in commercial jewellery design. Only those with a background in jewellery design and manufacturing and who want to start a business in commercial jewellery design are considered.

The project’s specific aim is to increase the technical proficiency of learners enrolled in the course to produce skilled jewellery designers who, in conjunction with manufacturers, contribute to developing the SA jewellery market by producing high-quality products.

These should follow and set fashion trends, be well marketed and be able to compete locally and in the global market.

IDZ-logo

Office NL 46, North Wing, 3rd Floor
OR Tambo International Airport
Tel: +27 (0)10 001 9120
[email protected]
www.gidz.co.za