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Catalytic Infrastructure: ASEZ & SEDIC Update

This update highlights the progress made in the Atlantis Special Economic Zone (ASEZ) and the Special Economic Development Infrastructure Company (SEDIC) for the 2019/20 period. It includes background information, achievements, targeted impacts, and future plans.

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Catalytic Infrastructure: ASEZ & SEDIC Update

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  1. Catalytic Infrastructure 2 October 2019 Update by DEDAT on the Atlantis Special Economic Zone and Western Cape Special Economic Development Infrastructure Company since the finalization of the Act

  2. Contents Atlantis Special Economic Zone (ASEZ) update: Background Delivery for 2019/20 2. Special Economic Development Infrastructure Company (SEDIC) update Background Delivery for 2019/20 1

  3. 1. a. ASEZ Background 2

  4. Background: History of Atlantis as an industrial site Atlantis SEZ Approval for designation received from Minister Davies 12 788 jobs created in Atlantis (1984) Mid 1980s – termination of incentives programme and defence manufacturing contracts Tellumat acquires Telledex assets (2010) Atlantis SEZ application for designation Hisense opens factory Mini-boom in Atlantis – Eskom established OCGT plant (2007) Atlantis declared a National Growth Point (1976) 50 industrialists in Atlantis (1987) Manufacturing accounted for 50% of economic activity (1975-1985) Atlantis Revitalization Framework, CoCT • SEZ Bill • Gestamp Renewable Industries • MyCiti Bus Route 3

  5. Background: What is the ASEZ purpose? 4

  6. Background: What is GreenTech? • The type of products that are manufactured (for example, solar PV panels, water saving devices); • The way in which production takes place (for example, energy efficient production processes with minimal waste), • The resources with which these products are made/services are delivered (for example, recycled materials as input). • The development of opportunities for low- and no-skilled workers in what is often a high-tech field Lower Carbon More resource efficient More socially inclusive 5

  7. Background: ASEZProperty overview 6

  8. Background: ASEZStakeholders DEDAT WESGRO MOA City of Cape Town MANDATING COMMITTEE Strategic Economic Development Infrastructure Company (SEDIC): ASEZ (License) CHTP (Asset manager/ Project Implementation) The dti PT, DTPW, DoCS and DEA&DP ASEZ Entity 7

  9. Background: ASEZtargeted impact 8

  10. Background: What has been achieved thus far? • Broad ecosystem support in Atlantis: Skills and Small Business Development: • SEDA incubators established(SAREBI and SMTDC): 10 Companies supported • Joint skills programme with West Coast FET College • MerSETA funding for skills in 2018/9 (75 learners across NQF 2-4, 10 apprentice and 20 RPL) • Number of learners from Atlantis provided with skills opportunities for 2017/18 - 2018/19: 600 5 new investments to the value of R680 million R240 million in upgrades by the City of Cape Town 300 direct jobs created, majority taken up by Atlantis residents (excluding construction of new facilities) R200 Million invested by DTPW into roads infrastructure Atlantis Community Stakeholder Network (CSN) established Western Cape Government & City of Cape Town funding of green economy eco-system development supports the growth of the green tech market Designation as an SEZ: 2018 9

  11. Background: Conditions of designation SEZ Entity “must be established as a national government business enterprise or a provincial government business enterprise contemplated in section 1 of the Public Finance Management Act” – Schedule 3D The ASEZ must comply with the requirements when it receives designation, and must therefore provide the Minister of Trade & Industry with the name of the Company that will hold the license. The ASEZ managing Entity must have an Atlantis community representative and labour representative on its Board 10

  12. 1.b. ASEZ delivery for 2019/20 11

  13. Delivery for 2019/20: Establish ASEZ Managing Entity SEDIC Legislation passed: April 2019 Company establishment documents completed: September 2019 Company registered: October 2019 Appointment of Board members: October 2019 Application to National Treasury for listing as S3D due: November 2019 Finalisation of ASEZ strategy for The dti review: February 2019 Service provider appointed to implement certain aspects of project: October 2019 12

  14. Project delivery for 2019/20: 13

  15. 2.a. SEDIC Background 14

  16. What Determines Regional International Competitiveness? Competitiveness Strong tendency for competitiveness advantages to endure Historical Legacy Keeping to an agreed Strategy and Plan Political Sustainability Macro/ National Environment Private Investment & Infrastructure Quality & Stability of Local Governance Local Competition Human Capital Innovative Environment Clustering Knowledge Spill-over Agglomeration Economies (urbanisation and Utilisation Economies 15 Capacity to Reinvent

  17. Background: the need for a Strategic Economic Development Infrastructure Company? ‘PEs are established in the Public Sector, but outside the Public Service, typically for reasons of - (a) strategic, social or economic intervention by the State or to deal with strategic risks and dangers that the State or society faces to its security, health, prosperity or wellbeing; and/or (b) adopting commercial and business principles in service delivery when it is required; and/or (c) signaling that there is need for objectivity and more operational autonomy, yet retaining accountability in the delivery of services.” Department of Public Service and Administration National Treasury March 2002 To meet the institutional requirements of the Special Economic Zone Act 16 of 2014 To improve asset management of Economic Development Infrastructure projects. Support business by creating a conducive environment To achieve growth and job creation. 16

  18. Background: Process of establishment 17

  19. Background: SEDIC’s role • The core function of the SEDIC is to develop and hold critical, large-scale economic infrastructure for economic development. Holding Company for ASEZ and other infrastructure projects As such the entity acts on behalf of the province to ensure that such projects are packaged, developed and managed as well as to ensure ongoing oversight and management of government’s investment. The primary purpose is to: Drive economic returns in line with the broader Provincial economic strategy and sectoral objectives Ensure that key economic infrastructure platforms are developed that can enhance competiveness, support private sector investment, expansion and job creation. The entity needs to operate as a sustainable entity. 18

  20. Background: SEDIC’s role • ASEZ • Operator/ Entity Establishment • Specialist/ technical support • Stakeholder Engagement • ASEZ Community Advisory Forum • Establishment of Subsidiary • Land Transfer • Skills & Enterprise Dev • SEDIC Core: • Office capacitated • Training • IT • Legal • Establishment • Governance structures • Finance Mngt • Post 2021 • Pipeline • Project Planning • Research and feasibility studies • Planning • Stakeholder communication • Establishment of structures • CHTP • Planning • SEZ extension to CHTP • Site Preparation • Stakeholder communication • Est. of structures • Est. of KBBE industry development programme • Skills & enterprise dev 19

  21. Background: SEDIC’s vision mission and objectives SEDIC’s operating style and role: A DOER of specific projects and programmes conceptualized, completed and managed by SEDIC A SUPPORTERof projects and programmes planned, funded, and implemented by other government entities (such as a marketing function of Wesgro) or the private sector An ENABLING PLATFORM for the planning and execution of catalytic infrastructure projects 20

  22. 2.b. SEDIC deliverables 2019/20 21

  23. Project delivery for 2019/20: 22

  24. Questions? 23

  25. Thank you For more information please contact Bianca Mpahlaza-Schiff at: (021) 483 9001 Bianca.Mpahlaza@westerncape.gov.za 24

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