The Saldanha IDZ feasibility study report, officially launched in October 2011, outlined the effects the project would have on the Saldanha Bay Municipality, as well as the region and the country as a whole. The Saldanha IDZ would be a major economic boost for the municipality with the projected employment and foreign direct investment (FDI) figures being very positive over the 25-year period forecast for the IDZ to become fully operational and entrenched. There was also acknowledgement that there would have to be complete buy-in from the local community and a well-thought-out environmental impact management system, if the project was to succeed.

Saldanha Bay is a small town on the West Coast of South Africa, about 140km north of Cape Town. The economy is based on the manufacturing, agricultural, fishing, tourism and harbour industries. In addition to the strong manufacturing industry, Saldanha is also home to a strong commercial and institutional core (including the Military Academy, Special Forces and Navy). The town has since the 1970s developed into a fully fl edged harbour town. The Port of Saldanha is South Africa’s largest natural anchorage and the port with the deepest water. It has primarily been used for ships exporting iron ore mined in the Northern Cape.

The feasibility study highlighted five key industries that would be promoted, namely: marine repair and the use of the IDZ as an off shore supply base; renewable energy; titanium and zircon beneficiation; wind-blade manufacturing and hot briquetted iron. Advocates of an IDZ at Saldanha have noted that one of the lessons learnt from other IDZs in South Africa was that it was unwise to rely on one industry and one anchor tenant to sustain the IDZ and therefore a broader spectrum of industries would be targeted.

The feasibility study noted that the IDZ would require a significant amount of investment from local and foreign businesses as well as the different levels of government. This investment would be made more attractive by various incentives that the IDZ would provide, through particular national investment-incentive schemes. This would be facilitated by the regional investment promotion agency Wesgro as well as the National Department of Trade and Industry (the dti).

The significance of the feasibility study was highlighted by the attendance at the launch of Lionel October, the director general of the dti. He pointed out that it was crucial for all tiers of government to be involved in order for the IDZ to succeed. The event was also attended by the MEC for Finance, Economic Development and Tourism in the Western Cape, Alan Winde, the MEC for Local Government, Environmental Affairs and Development Planning, Anton Bredell, the mayor of Saldanha Bay Municipality, as well as councillors from the local and district municipality.

Anton Bredell addressed the audience about the need for a sustainable approach to the creation of an IDZ, one where the local communities would be intricately involved in the planning and implementation of the industrial zone and the environmental impact carefully considered.

Based on these crucial aspects of the project being taken into account, the positive effects of the Saldanha IDZ would be significant. The feasibility study identified three scenarios for the effects over a 25-year period. The ‘low scenario’ was envisaged as one in which things didn’t all go according to plan and projections were at the low end. The ‘base-level scenario’ was envisaged in the case of things going according to plan and the IDZ plan being implemented successfully. The ‘high scenario’ was envisaged as a case in which the IDZ exceeded expectations, based on favourable economic conditions and successful planning and implementation.

It is envisaged in the ‘low scenario’ that around 4 240 direct jobs would be created, while 11 975 total jobs (including indirect jobs related to the expansion of related industries and the commercial activities in the municipality in general) would be created. The ‘low scenario’ sees a total of R9.3-billion in FDI over the 25-year period. It is also envisaged that the increase in Gross Geographical Product (GGP) relative to current Saldanha Bay Municipality GGP – average per year over 25 years – would be 86%. These figures are positive considering that the desired outcome of the project would at least be the ‘base scenario’ and therefore would result in further job creation and economic growth.

A feasibility study is generally a measure of the viability of a project but Alan Winde said that the IDZ would definitely be going ahead. This positive attitude from government will stand the IDZ in good stead as it goes through the various systems of feedback and approval in 2012. If all goes to plan, the Saldanha IDZ aims to get its licence by September 2012.