​
IDZ are intended to promote the competitiveness of the manufacturing sector and to encourage beneficiation of locally available resources. The support could either be a turn-about strategy to attract investment or be a national programme for economic development to increase exports and competitiveness of South African products.
 
Strategic Objective

The strategic intent of the Richards Bay Industrial Development Zone Company (RBIDZ) is to realize the fundamental objectives as set out by the Cabinet upon creating the IDZ Programme in September 2000, namely:
  • Develop and establish a purpose built world-class industrial park incorporating a delimited Customs Controlled Area and linked to the Richards Bay International Port;
  • Provide quality infrastructure including ITC and transport infrastructure, business and utility services;
  • Attract foreign and local investment projects which:-
    a. create jobs
    b. export led
    c. sustainable
  • Make arrangements for and mobilise financial, human and other resources for the development of the RBIDZ;
  • Promote, foster and mentor BEE and SMME business opportunities in and around the zone.
Key objectives of the programme
  • Attract foreign direct investment (FDI);
  • Attract advanced foreign production and technology methods in order to gain experience in global manufacturing and production networks;
  • Develop linkages between domestic and zone-based industries;
  • Provide world-class industrial infrastructure.
It is expected that this will trigger a large flow of foreign and domestic investment in IDZ infrastructure and productive capacity, leading to generation of additional economic activity and creation of employment opportunities.
 
Benefits of the incentive scheme
  • A Customs Controlled Area (CCA) with dedicated South African Revenue Services (SARS) officials to provide support for customs and VAT requirements;
  • World-class industrial support infrastructure;
  • Links to an international port of entry;
  • Duty suspension on imports for production-related raw materials, including machinery and assets used in production with the aim of exporting the finished products;
  • VAT exemptions under specific conditions for supplies procured in South Africa.
Restrictions on the incentive scheme
  • All activities and the manufacture of all goods in contravention of any South African Act shall be prohibited within an IDZ. Contraventions shall attract the penalties prescribed by law;
  • No person or company shall bring into, or cause to be brought into, an IDZ a substance or good, the possession of which is considered illegal or illicit or items prohibited by the laws of South Africa or binding international conventions to which South Africa is a signatory;
  • Enterprises who wish to manufacture goods, the manufacture of which requires special permits, license or legislative consent, shall acquire such special permit, license or legislative consent prior to the commencement of production and shall disclose their intention to manufacture such goods in their IDZ enterprise agreement.