/ 2 March 2020

Dube Tradeport is a world-class industrial and commercial precinct

Dube Tradeport
An aerial view of Dube TradePort

SPONSORED

Created to be a world-class development, Dube TradePort Special Economic Zone offers globally integrated logistics and manufacturing infrastructure, together with support for a range of airport-related activities including cargo operations, warehousing, agriculture, commercial real-estate for office, retail and hospitality.

Dube TradePort, Southern Africa’s global manufacturing and air logistics platform, is specifically geared to afford enterprises involved in manufacturing and export a highly competitive business operating environment.

Aerial view of Dube TradePort

Dube TradePort Corporation, a public entity of the KwaZulu-Natal provincial government, is tasked with the development of the precinct. 

There are several benefits associated with operating within this Special Economic Zone (SEZ), which is designed to promote business growth, revenue generation, employment creation, the export of value-added commodities and the attraction of both foreign and local investment — all enhancing South Africa’s manufacturing and export capabilities. 

Crucially, Dube TradePort SEZ has hugely efficient infrastructure, seamless support services provision and available incentives that afford businesses located here a significant competitive edge. Strategically positioned at the intersection of local and global intermodal transport routes, this SEZ is seamlessly integrated with intermodal road, rail and port infrastructure, providing manufacturers and exporters exceptional supply chain efficiencies and market access.

The precinct, a greenfield development covering more than 3 800 hectares (38 million square metres) 30km north of Durban, comprises a 50-year, master-planned airfreight and passenger hub and consists of four business zones and a telecommunications platform, Dube iConnect:

  • Dube TradeZone is an industrial area for electronics, pharmaceutical and aerospace manufacturing (designated Special Economic Zone);
  • Dube Cargo Terminal is a state-of-the-art air cargo handling facility;
  • Dube AgriZone is an advanced agricultural precinct (designated Special Economic Zone);
  • Dube City is a business and hospitality precinct; and
  • Dube iConnect is a cutting-edge telecommunications platform and premier cloud service provider.

Special Economic Zone status was conferred in December 2016, adding impetus to investor interest in the fast-growing industrial node. Presently, two zones are designated Special Economic Zones, namely Dube TradeZone and Dube AgriZone, with plans to extend this to further zones and phases going forward.

Promoting strong local production capabilities

Becoming an SEZ has given effect to a greatly enhanced industrial development agenda, radically augmenting Dube TradePort Corporation’s ability to attract both domestic and foreign direct investment capable of promoting strong local production capabilities within targeted focus sectors. These include aerospace and aviation-linked manufacturing and related services, agriculture and agro-processing — including horticulture, aquaculture and floriculture, electronics manufacturing and assembly, medical and pharmaceutical production and distribution, clothing and textiles and automotive component manufacturing.

Dube Tradeport is designed for maximum ease of doing business

Further enhancing the ease of doing business in the SEZ is an on-site One-Stop-Shop facility, which provides a single point of contact for businesses and acts as an interface with various government agencies and departments. Offerings at Dube TradePort One-Stop-Shop include assistance with registrations, licensing and visa services, as well as investor after-care services. Incentive benefits available to investors include:

  • Reduced Corporate Income Tax – section 12R: 15% corporate income tax for qualifying companies;
  • Building Allowance (12S): Accelerated depreciation allowance on capital structures (buildings, 10% per annum over 10 years). The special rate of capital (depreciation) allowances in lieu of normal allowances will be available for erecting or improving buildings and other fixed structures;
  • Employment Tax Incentives (ETI): Available to any business located within a SEZ, with employees earning less than R60 000 per annum;
  • Customs Controlled Area: VAT and Customs relief. Import duty rebate and VAT exemption on imports with the aim of exporting the finished products;
  • 12I Tax Allowance: For greenfield and brownfield industrial projects. This incentive supports capital investment and training;
  • High-end infrastructure: Funded through the provincial government and SEZ fund; and
  • The Black Industrialist Programme: Offered by the KwaZulu-Natal department of economic development, tourism and environmental affairs and the department of trade and industry.

For more information about Dube TradePort Special Economic Zone, please email: [email protected]