New Delhi, April 18 (IANS) India Inc is exploring investment opportunities in South Africa’s Dube TradePort Special Economic Zone (SEZ), as New Delhi looks to strengthen its economic engagement with a key logistics and manufacturing hub in Africa, according to a new report.

According to a report in South Africa-based IOL, the Dube TradePort SEZ stands out as South Africa’s only SEZ integrated with an international airport, King Shaka International Airport, offering a strong advantage for export-oriented industries.

For India, the development holds strategic importance as companies look to scale up their Africa footprint, the report said.

Sectors such as pharmaceuticals, automotive components, agro-processing and electronics are key areas of Indian export strength, stand to benefit from the SEZ’s integrated infrastructure and proximity to global markets.

Moreover, Indian companies already have a notable presence in the zone.

For instance, Mahindra Group operates a vehicle assembly unit within the SEZ through its South African arm.

Similarly, Cipla Limited has established manufacturing operations via its subsidiary Cipla Medpro.

These investments have not only boosted bilateral trade ties but also contributed to local job creation and skills development, aligning with India’s broader economic diplomacy in Africa, according to the report.

However, the Indian industry is closely monitoring the implications of the China-Africa Economic Partnership Agreement (CAEPA), signed earlier this year.

The pact, which provides duty-free access for South African exports to China, could alter trade dynamics in sectors such as minerals and agro-products, potentially impacting India’s competitive positioning.

For India, Dube TradePort offers a platform to deepen commercial ties with South Africa amid an increasingly competitive global trade environment, the report said.

Combined with incentives such as a reduced corporate tax rate of 15 per cent, the zone’s logistics-led ecosystem, customs-controlled areas and ready-to-use industrial land are increasingly attracting global investors, including Indian firms, it added.

Since its designation in 2017, the Dube TradePort SEZ has emerged as one of the country’s most successful industrial zones, leveraging its airport-linked infrastructure to drive exports.

The approved expansion will add around 752 hectares to the SEZ, significantly enhancing capacity for export-driven manufacturing.

–IANS

ag/na