Economic Growth
South Africa’s industrial future depends not only on the strength of individual companies, but also on how effectively businesses, government, investors, research institutions and infrastructure providers work together. Industrial clusters create a practical setting for this collaboration by connecting companies and supporting organisations within a particular industry or value chain, often in the same region.
Strong clusters can attract investment, develop local value chains, support innovation and create jobs. The Department of Trade, Industry and Competition (the dtic) identifies Special Economic Zones (SEZs) as contributors to industrialisation, regional development and employment creation, while World Bank research highlights the role clusters can play in helping businesses and institutions share knowledge, reach markets and use resources more effectively.
To explore how South Africa’s industrial clusters can realise more of this potential, Thapelo Tladi and Diana Cochrane-Van Eeden of the South Africa Centre for Industry and Technology (SACIT), together with Olivia Zeydler from the World Economic Forum, undertook a five-day engagement across four provinces. They met with national stakeholders and cluster leaders to understand their priorities, learn from their experience and explore where closer collaboration could support industrial growth.
What the engagements revealed
A discussion with the dtic and the Industrial Development Corporation (IDC) provided a national perspective on the evolution of South Africa’s industrial zones and the structures supporting them. Engagements at the Richards Bay Industrial Development Zone, Coega Development Corporation, Freeport Saldanha and Atlantis SEZ showed how national priorities intersect with different regional strengths and ambitions.
The visits highlighted the range of industrial opportunities already being developed. At Richards Bay, discussions included Nyanza Light Metals’ titanium dioxide pigment plant, which aims to beneficiate ilmenite into a higher-value industrial product. At Coega, an interactive visioning session explored sustainability, industrial symbiosis and climate resilience.
The West Coast engagements highlighted the importance of infrastructure, international knowledge and environmental considerations. Representatives from government, industry and investors were joined online by the Port of Rotterdam at Freeport Saldanha, while Atlantis SEZ, Africa’s only dedicated Greentech SEZ, showed how green manufacturing and environmental considerations can be incorporated into industrial development.
Although each cluster has its own context, several shared priorities emerged, including attracting investment, developing appropriate infrastructure, building skills, supporting innovation and strengthening partnerships. These common priorities create a strong case for a platform where cluster leaders can share practical experience and explore opportunities to work together.
Connecting South African clusters
The World Economic Forum’s Transitioning Industrial Clusters (TIC) initiative provides an international foundation for this approach. Launched at COP26 in 2021 in collaboration with Accenture and EPRI, the initiative brings businesses, governments and other stakeholders together to support industrial transformation through technology, infrastructure, policy and finance. Its global community now includes 43 industrial clusters across 24 countries.
Through the Clusters as Catalysts for Industrial Transformation project, SACIT will establish a South African industrial cluster learning community and support more local clusters in exploring participation in the TIC initiative. The community will give cluster leaders a place to exchange knowledge, examine shared challenges and build connections with national and international partners.
SACIT and the World Economic Forum will convene partners in Gauteng on 3 November to launch the project and the community, moving the conversation from individual cluster ambitions towards a more connected approach to South Africa’s industrial transformation.
Strong clusters can attract investment, develop local value chains, support innovation and create jobs. The Department of Trade, Industry and Competition (the dtic) identifies Special Economic Zones (SEZs) as contributors to industrialisation, regional development and employment creation, while World Bank research highlights the role clusters can play in helping businesses and institutions share knowledge, reach markets and use resources more effectively.
To explore how South Africa’s industrial clusters can realise more of this potential, Thapelo Tladi and Diana Cochrane-Van Eeden of the South Africa Centre for Industry and Technology (SACIT), together with Olivia Zeydler from the World Economic Forum, undertook a five-day engagement across four provinces. They met with national stakeholders and cluster leaders to understand their priorities, learn from their experience and explore where closer collaboration could support industrial growth.
What the engagements revealed
A discussion with the dtic and the Industrial Development Corporation (IDC) provided a national perspective on the evolution of South Africa’s industrial zones and the structures supporting them. Engagements at the Richards Bay Industrial Development Zone, Coega Development Corporation, Freeport Saldanha and Atlantis SEZ showed how national priorities intersect with different regional strengths and ambitions.
The visits highlighted the range of industrial opportunities already being developed. At Richards Bay, discussions included Nyanza Light Metals’ titanium dioxide pigment plant, which aims to beneficiate ilmenite into a higher-value industrial product. At Coega, an interactive visioning session explored sustainability, industrial symbiosis and climate resilience.
The West Coast engagements highlighted the importance of infrastructure, international knowledge and environmental considerations. Representatives from government, industry and investors were joined online by the Port of Rotterdam at Freeport Saldanha, while Atlantis SEZ, Africa’s only dedicated Greentech SEZ, showed how green manufacturing and environmental considerations can be incorporated into industrial development.
Although each cluster has its own context, several shared priorities emerged, including attracting investment, developing appropriate infrastructure, building skills, supporting innovation and strengthening partnerships. These common priorities create a strong case for a platform where cluster leaders can share practical experience and explore opportunities to work together.
Connecting South African clusters
The World Economic Forum’s Transitioning Industrial Clusters (TIC) initiative provides an international foundation for this approach. Launched at COP26 in 2021 in collaboration with Accenture and EPRI, the initiative brings businesses, governments and other stakeholders together to support industrial transformation through technology, infrastructure, policy and finance. Its global community now includes 43 industrial clusters across 24 countries.
Through the Clusters as Catalysts for Industrial Transformation project, SACIT will establish a South African industrial cluster learning community and support more local clusters in exploring participation in the TIC initiative. The community will give cluster leaders a place to exchange knowledge, examine shared challenges and build connections with national and international partners.
SACIT and the World Economic Forum will convene partners in Gauteng on 3 November to launch the project and the community, moving the conversation from individual cluster ambitions towards a more connected approach to South Africa’s industrial transformation.