Dube Tradeport Mini Factories a boon for SMMEs
ENGINEERING NEWS / 14 APRIL 2020 - 11.33 / CREAMER MEDIA REPORTER
Dube TradePort Special Economic Zone is poised to introduce to the Durban property market a R90 million mini-factory complex development, providing the ideal platform for Small, Medium and Micro Enterprises (SMMEs) requiring small-scale manufacturing and office space.
The development of the new mini-factory complex, comprising a total of 18 units, has sparked keen investor interest due, in no small measure, to its prime location just 500 metres from the Dube Cargo Terminal at Durban's King Shaka International Airport, which lies at the heart of Dube TradePort Special Economic Zone and the rapidly emerging Durban Aerotropolis. These mini-factories afford easy access to two of the African continent's busiest seaports, Durban Harbour and Richards Bay, the Provincial road network, inclusive of the busy N2 north and south, with links to both Durban Harbour and the vital N3 corridor to the country's hinterland and Gauteng’s economic hub, as well as two further arterial roads, the M4 and R102.
Commenting on the mini-factory concept ahead of its launch, Dube TradePort Special Economic Zone, Chief Executive Officer, Mr Hamish Erskine, said: "Whilst Dube TradePort Special Economic Zone predominantly attracts investment from big business, we have identified an opportunity to enable small and medium-sized enterprises to access the world-class infrastructure and support servives available within our manufacturing precinct. Our mini-factory units complex project, therefore, presents an extremely exciting prospect for the burgeoning local SMME sector." he said.
"Most encouragingly, Dube TradePort Special Economic Zone has shown rapid development since inception, attracting private sector investment that is in excess of R3.2 billion, and emerging as an increasingly important global manufacturing and air logistics platform within Southern Africa. All of this augurs extremely well for SMME operators who aim to establish their business enterprises here," Mr Erskine explained.
He added: "The priority sectors for which Dube TradePort Special Economic Zone caters in Dube TradeZone 1 - which is located immediately adjacent to the mini-factory complex - include businesses in the diverse fields of medical and pharmaceuticals, electronics, clothing and textiles, aerospace and aviation, automotive and logistics and distribution. In addition, once operational, Dube TradeZone 2 will be focused on a range of industry-types, inclusive of the further development of a pharmaceuticals cluster - revolving around production and distribution - as well as the supply of common utilities and services for a number of key industries, together with various enterprises active in the high-value manufacturing environment."
The diversity of business here stands SMMEs establishing in the organisation's mini-factory units in good stead, whilst simultaneously enabling them to take full advantage of the available globally integrated logistics and manufacturing infrastructure offered in the precinct, thus facilitating the development of keen enterprise efficiencies.
"Both Dube TradeZone 1, which includes the mini-factory complex development, and Dube TradeZone 2 are perfectly positioned to enable locating business enterprises the ability to grow their global competitiveness. Of additional and significant importance to SMMEs, location within Dube TradePort Special Economic Zone brings to the fore access to a wide range of available incentives, which combine to afford small to medium-sized companies here an appreciable competitive edge. Indeed, many of our existing tenants cite the attractive suite of incentives available in both a Special Economic Zone and Customs Controlled Area as clinching their location decision-making process," Mr Erskine emphasised.
Incentive benefits available to qualifying SMME investors include the following:
Reduced Corporate Income Tax - Section 12R: 15% corporate income tax for qualifying companies;
Building Allowance (12S): An 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 the erection of or improvement to buildings and other fixed structures;
Employment Tax Incentives (ETI): This is available to any business located within a Special Economic Zone, with employees earning less than R60 000 per annum;
Customs Controlled Area: This provides for both VAT and Customs relief. Import duty rebate and VAT exemption on imports, with the aim of exporting the finished products;
12I Tax Allowance: This applies to both 'Greenfield' and 'Brownfield' industrial projects and is an incentive which supports capital investment and training; and
High-end Infrastructure: This is funded through the Provincial Government and Special Economic Zone Fund.
The organisation's 18 mini factory units are all 249.63 square metres in size and include manufacturing and assembly warehouse, reception area, storeroom, kitchen and toilets, as well as a mezzanine office and open plan areas. In addition, five dedicated parking bays, as well as one shared paraplegic bay (per two units) are provided and included in the rental cost. The complex also provides for easy truck access, enhanced by dedicated loading/delivery bays, together with a large shared loading/delivery bay, which is also included in prevailing rental costs.
Dube TradePort applies services levies for the cleaning of roads and verges, road and infrastructure maintenance, landscaping, security and generator maintenance.
Exacting attention is paid to matters of security, as legislative requirements governing Special Economic Zones necessitate the implementation and maintenance of especially high standards in this regard. This makes
Dube TradeZone 1 an highly secure business environment in which to conduct business.
Security measures include the use of access cards to control movement in and out of the area, a full-time security presence and armed patrols, guard-houses, a state-of-the-art CCTV installation, inclusive of licence plate recognition technology, and the presence of security officers.
All of this means that small-scale operators enjoy the advantage of being able to keep their business operations open 24 hours a day in a safe and secure environment. "We believe the advent of the imminent release of our mini-factory complex to the market will give effect to the attraction of new tenants who will be active in our various targeted sectors, aligned to our strategic Broad-Based Black Economic Empowerment goals, and who are export or import replacement-orientated, committed to localisation and the introduction of new technology, as well as being dedicated to the development of effective value chains," Mr Erskine said.
Dube TradePort Special Economic Zone, the recent award winner of both the highly coveted United Nations
Award for 'Excellence in Promoting Sustainable Investment in Special Economic Zones' as well as the 2019 FEMOZA (World Free & Special Economic Zones Federation) award for 'Best Practice in Free & Special Economic Zones,' signals its rapidly growing reputation as a truly world-class industrial and commercial precinct, strategically positioned at the intersection of both local and global intermodal transport routes.
This provides its investors and newcomer small-scale manufacturers aiming to locate here with great supply chain efficiencies and fantastic access to markets, together with the distinct competitive advantages associated with both business agility and speed to market.
Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER