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Revitalisation of Industrial Parks

Programme to support the construction of infrastructure that enables both public and private investors to establish industrial parks or special economic development zones or upgrade old infrastructure in an existing industrial park. The dti appointed the DBSA as its Implementing Agent in a Memorandum of Agreement signed on 18 September 2015.

The scope of our engagement includes:

  •  condition assessments of identified industrial parks and facilities;
  •  refurbishment of identified industrial parks;
  •  preventative and ongoing maintenance of infrastructure and equipment; and
  •  other additional projects as agreed to in writing by the DBSA and the dti.

During Phase 1:
The IDD completed condition assessments of ten industrial parks, which provided the dti with a report that would assist with the planning and budgeting for future repairs and refurbishment. Eleven industrial parks have been refurbished since 2016. Phase 1 focused on repairing fencing, roofs, replacing asbestos roofs, high mast lighting, CCTV security cameras and, in some parks, repairing water leakages, culverts, walkways, and water treatment works. The dti has invested approximately R415 million in the refurbishment of the parks implemented by the DBSA. Through the construction activities, 1 607 local labourers were employed.

Phase 1 was completed between 2016 and 2019 in the
following industrial parks:

  1. Isithebe in KwaZulu-Natal
  2. Babalegi in Gauteng
  3. Ga-Rankuwa in Gauteng
  4. Queenindustria in the Eastern Cape
  5. Vulindlela in the Eastern Cape
  6. Seshego in Limpopo
  7. Nkowankowa in Limpopo
  8. Ekandustria in Mpumalanga
  9. Phuthaditjhaba in the Free State
  10. Botshabelo in the Free State
  11. Mogwase in North West
     

Phuthaditjhaba Industrial Park refurbishment project

The DBSA managed the R42 million refurbishment of the Phuthaditjhaba Industrial Park in cooperation with the Free  State Development Corporation and Maluti-a-Phofung Local Municipality. The project entailed the:

  • erection of 10 800 m high security anti-climb invisible fence;
  • installation of 7 boom gates and 6 pedestrian gates;
  • repair of 16 roller shutter doors;
  • replacement of 6 roller shutter doors;
  • refurbishment of 8 existing high mast lights;
  • installation of one set of new high mast lights; and
  • installation of CCTV around the perimeter fence.

All works are complete and the project has been handed over to the client.
 

Economic opportunities

The revitalisation of the Phuthaditjhaba Industrial Park has brought about economic benefits during construction and  during its full operation after handover. It has provided employment opportunities during the refurbishment and after completion, through the tenants that it holds. During construction, the project utilised local labour comprising 28 men, eight women, 45 male and 4 female youths. The contractors sourced and procured building material from local SMMEs.

The project funds not only improved the physical condition of the infrastructure, but also contributed to the local economy.
The Phuthaditjhaba Industrial Park currently provides tenancy to both large and small factories. The large factories are renting 85 units creating 15 437 employment opportunities in a number of economic activities such as textile, retail, construction, petroleum and gas, warehousing and construction. The rest of the units are rented by small entrepreneurs who do business in motor vehicle repairs, textile and carpentry.

These smaller factories are creating about 1 292 employment opportunities.

The refurbishment has also created an investor friendly environment by reducing security risk on site. This improves the park’s attractiveness to retain business tenants. In addition to improved security, the refurbishment also contributes to loss  control.
The replacement of dilapidated roller shutter doors by new lockable ones has reduced the risk of investors’ stock loss through theft and/or damage by bad weather. All these factors improve the appetite of investors to do business in the park.
 

Key lessons learned

The success of the project was realised through collaboration and continuous engagement among key stakeholders. This was achieved through sound project governance structures such as a functional Project Steering Committee that engaged with all interested, affected and influential stakeholders.
 

Programme to support the construction of infrastructure that enables both public and private investors to establish industrial parks or special economic development zones or upgrade old infrastructure in an existing industrial park.