Industrial development zones, or IDZs, are a growing phenomenon in many countries of the world. With plenty of vacant land newly zoned for industrial use, for those looking at investing in industrial property they are attractive prospects. Let’s look at them in more detail.
What exactly are Industrial development zones?
In South Africa, IDZs are an initiative by the Department of Trade and Industry to encourage economic growth by attracting foreign investment. They are located in specially chosen geographical areas that have good access to a major port or airport and aim to boost exports and jobs in these areas by attracting new industries. South Africa has several operational IDZ’s and a few more proposed ones with approval imminent.
Why are industrial development zones worth investing in?
Because they are aimed at attracting major foreign investors, IDZs are designed with world-class infrastructure, good transport and services and plenty of support industries all designed to feed off each other.
There are sizeable areas of vacant land available in new industrial development zones with opportunities to develop it to your exact requirements.
There are excellent facilities for any export-driven business, including customs facilities, and because the government is promoting internationally competitive manufacture and exports, there may well be incentives that make the location even more attractive.
Looking at the proposed IDZ at Saldanha Bay in South Africa as an example, we find that major investment in new public transport systems linking it with Cape Town are part of the overall plan. Energy requirements are planned in detail, the new infrastructure backing up conventional energy supplies with a significant investment in renewable energies, so that the IDZ will be self-sufficient once it is fully operational. The port facilities which are already of a high standard will be extended, so that all the industries located there will have good access to shipping for exports and imports, and the sectors of industry proposed for this industrial development zone are complementary to each other, providing a sustainable model of development for the future.