Industrial Development Zones Overview

An Industrial Development Zone (IDZ) is a purpose-built industrial estate linked to an international seaport or airport and which is capable of leveraging fixed direct investments in value-added and export-orientated manufacturing industries.

The aim of the IDZ programme

Industrial Development Zones (IDZs) are intended to promote the competitiveness of the manufacturing sector and to encourage beneficiation of locally available resources. Support could either include a turn-about strategy to attract investment or include a national programme for economic development to increase exports and the competitiveness of South African products.

Key objectives of the programme

Attract foreign direct investment (FDI);

Attract advanced foreign production and technology methods in order to gain experience in global manufacturing and production networks;

Develop linkages between domestic and zone-based industries;

Provide world-class industrial infrastructure.

Benefits of the incentive scheme

• A Customs-Controlled Area (CCA) with dedicated South African Revenue Service (SARS) officials to provide support for customs and VAT requirements;
• World-class industrial support infrastructure;
• Links to an international port of entry;
• Duty suspension on imports for production-related raw materials, including machinery and assets used in production, with the intention of exporting the finished products; and
• VAT exemptions under specific conditions for supplies procured in South Africa.

Application for the IDZ designation

Interested parties may approach the Minister the Department of Trade and Industry to apply for a specified area, linked to a sea or airport with customs facilities, to be considered as an area suitable for the development of an Industrial Development Zone (IDZ).

Such an application should contain information as set out in the guidelines and must be accompanied by an application for an IDZ operator permit by the intended company for the area proposed for development. The Minister may request additional information from the applicant when giving consideration to the application.

Applying for an IDZ permit

• Any party interested in obtaining an IDZ operator permit is required to submit, in the prescribed manner, a fully completed IDZ operator permit application to the Minister.
• With regard to a new IDZ, the application for an IDZ operator permit must accompany the application for a specified area to be deemed to be an IDZ. In case of an existing IDZ, the provisions regarding the transfer of an IDZ operator permit must be complied with.
An applicant for an IDZ operator permit must:


• Demonstrate control of the land within an existing IDZ, or within the area under application designated for development as an IDZ, or within a new IDZ pertinent to its application in the detail and manner as indicated in the guidelines;
• Submit a comprehensive feasibility study in the detail and manner indicated in the guidelines;
• Indicate its ownership structure through the submission of a shareholders' agreement of the intended IDZ operator, indicating shareholders, percentages of shareholding, requirements for the transfer of shares and requirements for the distribution of assets upon liquidation or deregistration; and
• Comply with such other criteria and prerequisite procedures, as set out in the guidelines.
• Each applicant is required to submit four copies of the application to the Minister, one of which must be an original.
• The Minister is entitled to return any incomplete applications to applicants for subsequent completion or may request the provision of additional information with regard an application prior to it being considered by the Minister.

For more information please visit: www.dti.gov.za

An applicant for an IDZ operator permit must:

Demonstrate control of the land within an existing IDZ or within the area under application designated for development as an IDZ or within a new IDZ pertinent to its application in the detail and manner as indicated in the guidelines ;

Submit a comprehensive feasibility study in the detail and manner as indicated in the guidelines ;

Indicate its ownership structure through the submission of a shareholders' agreement of the intended IDZ Operator indicating shareholders, percentages of shareholding, requirements for transfer of shares, requirements for distribution of assets upon liquidation or deregistration;

Comply with such other criteria and prerequisite procedures as set out in the guidelines to this programme;

Each applicant shall submit four (4) copies of the application to the Minister, one (1) copy of which must be an original;

The Minister shall be entitled to return incomplete applications to applicants for subsequent completion or request further information regarding an applicant's application prior to its consideration by the Minister. For more information contact:

Contact Details

Richards Bay Industrial Development Zone Company (PTY) LTD
11 Haiti Mall, Lira Link Road (Opp. Bay Hospital)
Richards Bay

PO Box 712,
Richards Bay, 3900
Tel: +27 (0) 35 789 3400
Fax: +27 (0) 35 789 3414

E-mail: info@richardsbayidz.co.za
Website: www.richardsbay.co.za