SDI and IDZ

SDI – West Coast IDZ – Saldanha Bay

Definition SDI’s are transport and communication links IDZs are purpose-built industrial estates to support
between major industrial areas, metropolitan area exports. They provide transport, logistics and
and harbours. business services tailored for export-oriented
industries.
They are generally located around transport routes
that have international links e.g. harbour, in order
to promote exports
Aims  Develop existing transport infrastructure  to promote growth in areas that are
 Create environment for private sector underdeveloped but have economic
investment potential e.g. creation of new jobs and
 Initiate economic activities along the improved infrastructure to attract foreign
transport corridor
investors.
 Improve trade
 to encourage increased levels of foreign
  To improve internal trade for export
 Movement of raw materials by road and rail
 Movement of finished goods by road and
rail
 Accessibility to markets- virtual and actual
 Will attract more tourists
direct investment in the economy.
 to encourage and promote international
competitiveness in the country’s
manufacturing sector.
 to encourage manufacturing in areas and
use of resources in those areas to produce
goods instead of importing them
(Benefication).

Location Stretches from Cape Town to Northern Cape Located at the southern most tip of Africa, in the
border largest and deepest (23m draught) natural port in
the southern hemisphere. Saldanha is situated in
the West Coast region of the Western Cape,
approximately 2 hours north of Cape Town
Factors influencing On The Coast – access to overseas markets Saldanha Bay ideally geographically positioned –
Location through the Ports its location creates a linkage point for both Sub-
Saharan Africa and International Markets.

Main Activities Steel processing/manufacturing Oil and Gas,

Fish processing and fishmeal industries ship building and repairs,
Gas power plant renewable energy,
Ship repair steel production
Factors favouring  Rich in Resources:  The deep port of Saldanha Bay is ideally
development  Rich in avian resources- Lambert’s Bay geographically positioned as a linkage
Waterfront point for both Sub-Saharan Africa and
  Cultural heritage International Markets.
 Fish  Existing relationships with neighbouring
 Rich in biodiversity African countries and membership to
 Fruit developmental associations seats South
 Good labour supply African based companies favourably,
 Large market area granting key access to opportunities for
 Sufficient flat land available further collaboration.
 Sufficient energy supply - through renewable  home to boundless opportunities as an oil,
energy gas and marine repair services hub.
 Good transport links to the South Western  Good labour supply
Cape Industrial region  Sufficient land available
 Access to the Ports and harbours in the  Sufficient energy supply - through
Western Cape renewable energy
 Good transport links to the South Western
Cape Industrial region

Factors Hindering  lack of technical skills  lack of technical skills

development  inadequate marketing
 growing informal settlements
 xenophobia
 sand mining decreases tourism
Economic impacts  Transportation networks improve  create in economic development
accessibility for trade to the SDI  Industries are located more close to
 Communication networks enable growth of resources and raw materials
the SDI through technology
 allow people to move around; create more
 Generates economic growth where local
communities are able to sell their wares access to jobs, labour mobility is freed, up
 Generates employment opportunities in etc.
local communities  Focus on skilling and re-skilling people,
 Enables the growth of SMME (Small through education and training programmes
Medium Micro Enterprises)
  Upgrades local infrastructure
 Different ethnic groups working together in
the SDIs to support tourism have been
united promoting more cooperation
amongst them

Social impacts  Greater income for local communities
 Money generated is used to develop
community projects
 Develop ethnic/cultural pride
 Greater income for local communities
 Money generated is used to develop
community projects
 Better standards of living for local
community
Key facts to concentrate on with regard to the Saldanha Bay IDZ's and West Coast
SDI's
 Definition and difference between an IDZ and SDIs
 Map showing the location of prescribed IDZs and SDIs
 Factors influencing the location of the prescribed IDZs and SDIs
 Main industrial activities
 Factors that favour and hinder the development of the prescribed IDZs and SDIs
 Economic and social impacts
Activity 1
March 2015
FIGURE 3.5: INDUSTRIAL DEVELOPMENT ZONES (IDZs)

SALDANHA BAY IDZ DRAWING STRONG INTERNATIONAL SUPPORT

Due to good consultation between government and the Saldanha Bay community, this
town in the Western Cape has the potential for economic growth and job creation.
There are signs that direct foreign investment will increase in the future.

Many lease agreements have already been signed by oil and gas companies. The
harbour is being expanded to cater for the growth taking place. Two major wind energy
projects are being financed by the global energy company called GDF Suez. This area
also has a number of unique natural features that attract tourists.
[Source: West Coast Business News and Directory]

3.5 Read the extract in FIGURE 3.5 about the Saldanha Bay IDZ and answer
the questions that follow.

3.5.1 In which South African province is Saldanha Bay situated? (1 x 1) (1)

3.5.2 Why are IDZs located away from major metropolitan areas? (1 x 2) (2)

3.5.3 Give TWO reasons why the Saldanha Bay IDZ has the potential for
economic growth. (2 x 2) (4)

3.5.4 As an industrialist, identify any TWO incentives which would attract

you to locate your industry within an IDZ. (2 x 2) (4)

3.5.5 State TWO advantages that this area will enjoy with the
development of the wind energy projects. (2 x 2) (4)
Marking Guideline

3.5 3.5.1 Western Cape (1) (1 x 1) (1)

3.5.2 To attract investment outside the major metropolitan areas where there is
potential for economic growth and job creation (2) (1 x 2) (2)

3.5.3 It has a rich reserve of oil and gas (2)

It is located along the West Coast and enables trade relations with North and
South America (2)
Harbour that has expanded due to availability of iron ore. (2)
Saldanha Bay has potential for development in agriculture, tourism and
manufacturing industries (2)
[ANY TWO] (2 x 2) (4)

3.5.4 Direct links to international ports and airports (2)

World class infrastructure especially designed to attract tenants (2)
Government incentive schemes (2)
Reduced taxes and exemptions for some activities or products (2)
Duty free benefits on raw materials that are imported (2)
[ANY TWO] (2 x 2) (4)

3.5.5 Reduced electricity costs (2)

Reduced pollution rates (2)
Healthy environments (2)
[ANY TWO] (2 x 2) (4)
Activity 2
November 2020
STRATEGIES FOR INDUSTRIAL DEVELOPMENT: THE SALDANHA BAY
INDUSTRIAL DEVELOPMENT ZONE (SBIDZ)

NEW INVESTMENT IN THE SALDANHA BAY

INDUSTRIAL DEVELOPMENT ZONE(SBIDZ)

The West Coast Corrosion Protection (WCCP) will nearly double their workforce as they
position themselves to grow their already established business with the support of the
SBIDZ fund.
As a small, local company in the corrosion protection and support services industry, the
WCCP services a range of marine vessels in a number of ports across South Africa. Their
new facility will provide a necessary base to expand their value and service offering to the
maritime industry. It will open doors to new markets and customers.
The SBIDZ has, to date, signed 11 lease agreements with an investment value of over R3
billion. The development of the SBIDZ is key to unlocking the industrial potential of the
West Coast, and Saldanha in particular.
Skills programmes initiated in the SBIDZ that focus on enterprise and contractor
development have created a total of 2 199 individual training opportunities with 88% of
participants having already graduated. Together with this, the local community benefits
from social responsibility initiatives
[Source: www.sbidz.co.za, https://www.sa-venues.com/maps/westerncape/saldanha.php]

FIGURE 4.5 is based on strategies for industrial development: the Saldanha Bay
Industrial Development Zone (SBIDZ).
4.5.1 Name the new local investor in Saldanha Bay. (1 x 1) (1)

4.5.2 What will be the core function of the new investor in the Saldanha
Bay IDZ? (1 x 1) (1)

4.5.3 State the physical (natural) factor that could have attracted the new
 investor to the Saldanha Bay IDZ. (1 x 1) (1)

4.5.4 Discuss how the new investment project in the Saldanha Bay IDZ
would have a positive impact on transport infrastructure in the zone.
(2 x 2) (4)

4.5.5 How will investments in the Saldanha Bay IDZ have an impact on
the people seeking employment in this zone? (2 x 2) (4)

4.5.6 Suggest what social responsibility initiatives a new investment

company should have towards the local community. (2 x 2) (4)
Marking Guideline

4.5 4.5.1 West Coast Corrosion Protection/WCCP (1) (1 x 1) (1)

4.5.2 Corrosion protection (1)

It will service a range of marine vessels (1)
[ANY ONE] (1 x 1) (1)

4.5.3 Natural bay (natural port) (1)

Flat land (1)
Large amount of space available (1)
[ANY ONE] (1 x 1) (1)
4.5.4 Road network in Saldanha Bay will be extended/upgraded (2)
Road network linking Saldanha Bay to other areas will be
extended/upgraded ( Harbour facilities will be improved and extended (2)

Railway network in the vicinity will be upgraded for the transport of bulky
goods (2) Bridges will be constructed to facilitate easier movement of
goods/people (2) Links between the different modes of transport (accept
examples) improves accessibility/facilitate economic growth in the region
(2)
[ANY TWO] (2 x 2) (4)

4.5.5 Positive:
Create employment opportunities (2)
Increased earning potential (2)
Greater skills development based on greater demand (2)
Possible potential for promotions (2)
Improved working conditions and employee benefits associated with working
with large companies (2)
Upliftment of standard of living/multiplier effect (2)
 Alleviate poverty (2)
Negative:
Skilled workers from other areas are preferred above the locals of the area (2)
Smaller local businesses in direct competition with the investors might close
with possible job losses (2)
Locals in the area might not have the necessary qualifications for the
employment opportunities (2)
Susceptible to corruption, nepotism, bribery in order to secure jobs (2)
[ANY TWO] (2 x 2) (4)

4.5.6 Development of more facilities (accept explained examples) (2)

Improvement in services (accept explained examples) (2)
Learnerships/Bursaries for the youth in the community (2)
Sports/Recreational/Cultural sponsorships (2)
Partnerships with the community to reduce crime and youth empowerment (2)
Feeding schemes for disadvantaged members of the community (2)
Provision of PPE's/ medicines in cases of disease outbreaks (2)
Skills development programs (2)
Improvement of infrastructure (accept explained examples) (2)
Funding/Create community employment projects (2)
Local people should be given preference to employment opportunities (2)
Funding and upgrading of local schools (2)
Funding environmental cleaning projects (2)
Activity 3
June 2019
West Coast SDI

Refer to FIGURE 3.5 showing the West Coast Spatial Development Initiative
(SDI).
3.5.1 What is a spatial development initiative? (1 x 1) (1)
3.5.2 Name the port associated with the West Coast SDI. (1 x 1) (1)
3.5.3 Name ONE manufacturing industry in the West Coast SDI. (1 x 1) (1)
3.5.4 Discuss TWO physical factors that favoured the development of the
SDI on the West coast. (2 x 2) (4)
3.5.5 Write a paragraph of approximately EIGHT lines to explain how the
West Coast SDI uplifts the local community. (4 x 2) (8)

Marking Guideline
3.5.1 A government programme to encourage investment in infrastructure in
undeveloped areas (1)
[CONCEPT] (1 x 1) (1)

3.5.2 Saldanha Bay (Accept Port of Saldanha) (1) (1 x 1) (1)

3.5.3 Steel processing/manufacturing (1)

Fish processing and fishmeal industries (1)
Gas power plant (1)
Ship repair (1)
[ANY ONE] (1 x 1) (1)

3.5.4 Bay allows for the development of a natural harbour (2)

Available vacant land for the expansion of industries (2)
 Flat land makes construction cheaper and easier (2)
Flat land makes the construction of infrastructure easier, therefore increases
accessibility (2)
Climate is conducive for productivity (2)
[ANY TWO] (2 x 2) (4)
3.5.5 Employment opportunities are created in industries, farming, infrastructural
Development and tourism (2)
These employment opportunities also uplifts the skills of people (2)
Industries become involved in social responsibility programmes (2)
Earning potential increases as people now have fixed jobs (2)
Poverty is reduced as people have money to afford basic needs (2)
Accessibility to more and better services for the local community (2)
Standard of living increases as people can now afford private homes/medical
care/education (2)
Tourism provides opportunities for local communities in the informal sector to
sell their wares/arts and craft (2)
Upgrading and development of new infrastructure benefits the community (2)
[ANY FOUR] (4 x 2) (8)
Activity 4 - Eastern Cape 2019 Prelim
FIGURE 3.6: SALDANHA BAY IDZ

IDZ brings economic boom to Saldanha Bay

Trade and industry minister Rob Davies said a study had shown that that Saldanha Bay
was strategically located to serve the oill and gas sector on the African continent due to an
increasing number of oil rigs requiring maintenance and passing by the West coast to the
East coast of Africa. The focus on oil and gas facilities will include maintenance and
repair, fabrication, supply and other services. The study, Minister Davies added, found that
the IDZ had the potential to create 11 975 new jobs.
The IDZ is an industrial area linked to an international sea port which has areas that are
suited for the manufacturing and storage of goods to boost beneficiation investment,
economic growth and the development of skills and employment.
[Source:sassda.erg.co.za]

3.6 Study the map and article in FIGURE 3.6 that refers to the Saldanha Bay IDZ.
3.6.1 Name the core industrial region that is close to the Saldanha Bay
IDZ. (1 x 1) (1)

3.6.2 List ONE of the main aims of the Saldanha Bay IDZ.
(1 x 1)(1)
3.6.3 According to the extract, which sector does the Saldanha Bay
IDZ serve? (1 x 1)(1)
3.6.4 How is the location of the Saldanha Bay harbour seen as an
advantage to the region? (2 x 2)(4)
In a paragraph of approximately EIGHT lines, outline the challenges
3.6.5 that the Saldanha Bay IDZ has had to face since its declaration as an
IDZ.
Marking Guideline
3.6.1 South Western Cape (1) (1 x 1) (1)
3.6.2 Creating jobs (1)
Promoting exports (1)
[ANY ONE] (1 x 1) (1)
3.6.3 Oil and gas sector (1) (1 x 1) (1)
3.6.4 The harbour can be used for the export and import of raw
materials and goods (2)
The harbour serves as a stopping place for oil rigs which require
maintenance (2)
Harbour strategically located to serve gas and oil sector (2)
[ANY TWO] (2 x 2) (4)
3.6.5 Low levels of skilled labour (2)
Skilled labourers tend to move to Cape Town (2)
Harbour needs more advanced container loading facilities (2)
Land is mostly privately owned hence very expensive for future
expansion of the IDZ (2)
There is limited bulk electricity supply (2)
Water in the bay is polluted with heavy metal particles that affects
the mariculture industry (2)
[ANY FOUR] (4 x 2) (8)
Marking Guideline