Theses (MBA)--Stellenbosch University, 2005. / ENGLISH ABSTRACT: In order to survive in a global economy, developing nations can no longer rely on their own resources if they wish to prosper, they require outside assistance. Various economic policies and strategies have been adopted over the years in order to encourage foreign capital to contribute to the growth of developing nations. One of the most common of these is the concept of an export promotion zone. This is a dedicated area inside the host country where the host tries to lure foreign investors - usually by providing a range of financial and labour concessions. Namibia instituted an export promotion zone in the mid nineties in Walvis Bay but has met with limited success, as indeed have many of the other countries which have tried this approach. Namibia's immediate neighbour - South Africa - reviewed this and other economic zones with the intent of adopting a policy better suited to the needs of foreign capital. The result was the development of an industrial development zone in Coega outside Port Elizabeth. This study contrasts these two concepts in order to ascertain similarities and differences both in terms of their respective legislation and in terms of the World Association of Investment Promotion Agencies ten criteria for a successful investment environment. The conclusion was that these two policy frameworks are different more in name than in substance, with one crucial exception: South Africa has effectively waived most of the tax concessions generally found in this type of area. It is argued that if the South Africa concept does succeed it will probably be more a function of the country's relative economic size in Africa rather than because of policy differences. Beyond that there is little reason to believe that South Africa will meet with any more success than Namibia barring the acquisition of a major anchor tenant to draw other affiliate industries. / AFRIKAANSE OPSOMMING: Ontwikkelende lande het buitelandse bystand nodig om in 'n wêreld ekonomie te bestaan omdat hulle nie meer op hulle eie reserwe bronne kan staat maak nie. Verskeie strategieë en ekonomiese beleidstoepassings is in die verlede aangewend om buitelandse beleggings te lok ten einde by te dra tot die groei van ontwikkelende nasies. 'n Algemene strategie is die daarstelling van 'n uitvoersone waardeur die land probeer om buitelandse beleggers te lok deur die daarstelling van 'n reeks finansiële- en arbeidstoegewings. Namibië het so 'n uitvoersone in die middel negentigs in Walvis Baai tot stand gebring, met min sukses. Verskeie ander lande het ook nie bevredigende resultate met hierdie metode gehad nie. Suid-Afrika, 'n direkte buurland van Namibië, het hierdie ekonomiese sone en soortgelyke implementerings ondersoek met die doel om die beleid aan te pas en te verbeter om sodoende meer buitelandse kapitaal te lok. Die resultaat was die ontwikkeling en totstandkoming van die industriële ontwikkelingsarea in Coega buite Port Elizabeth. In hierdie studie word die twee konsepte met mekaar vergelyk ten einde die ooreenkomste en verskille uit te lig, beide in terme van wetgewing asook in terme van die Wereld Assosiasie van Bellegingsbevorderings Agentskappe se tien kriterieë vir 'n suksesvolle beleggingsomgewing. Die gevolgtrekking was dat die twee beleidsraamwerke baie min verskil, met die uitsondering dat daar min of geen belasting toegewings gemaak word ten opsigte van implementering van hierdie sones in Suid-Afrika nie. Daar word aangevoer dat indien die Suid-Afrikaanse konsep suksesvol is, dit meer waarskyknlik die gevolg sal wees van die land se relatiewe ekonomiese stand in Afrika, as die gevolg van beleidstoepassing. Behalwe hierdie faktor is daar min rede om te glo dat Suid-Afrika meer suksesvol sal wees as Namibië, tensy 'n industrie gevestig kan word wat as hoeksteen van die ontwikkeling kan dien, wat om die beurt ander verwante industrieë kan lok en ontwikkel.

South Africa became a democracy after its election in April 1994. Thereafter, the country faced the daunting task of trying to fast-track economic growth and addressing social challenges. The Department of Trade and Industry was mandated by the newly elected government to spearhead economic development in order to address these challenges. Trade policy instruments such as industrial development zones formed part of government’s strategic economic instruments to achieve economic reform. The Coega Industrial Development Zone (CIDZ) near Port Elizabeth was one of many economic development zones created principally to promote export orientated manufacturing. The Coega Development Corporation (CDC) was registered as a company to develop, operate and manage the CIDZ. The literature suggests that strategic leadership is important for organizational success. Strategic leadership is described as the ability to influence others to make day-to-day voluntary decisions that enhance long-term viability while maintaining short term financial stability. Literature further suggests that strategic leaders deal with the evolution of organizations and their changing aims and transform them through their capabilities and strategic leadership roles such as being a figurehead, spokesperson, team builder, design school planner and so on. The aim of this research is to analyse the role of strategic leadership with the objectives to ascertain whether strategic leadership contributed to the success of the development of CDC, and identify possible challenges they are confronted with in the execution of their leadership duties. This research was conducted from an interpretivist perspective as the researcher attempted to develop insight into how the strategic leadership of CDC viewed and understood their role. The strategic leadership of CDC, who were the focus of this study, consisted of the executive management team of the organization, including the Chief Executive Officer (CEO). The research design was in the form of a case study of the CDC leadership, with data collected through semi-structured interviews and documents. The most prominent roles exercised by the leadership of CDC included creating a vision and strategy development and inculcating a teamwork corporate culture. Other roles identified include that of team builder, fostering innovation and developing human capital etc. A lack of stakeholder management as well as managing the culture of the organization as it expands and grows, remain critical challenges. Finally recommendations are made together with suggestions for future research.

From Integrative Summary: This research paper comprises of three sections that include: an evaluation report, a literature review and the research methodology. The first section assesses the management of resistance to change as encountered during the ELIDZ structural re-alignment initiative. The assessment was done after the change initiative had been implemented to see what could be learnt from the exercise, in order to be better prepared for future change programmes. The implemented change was initiated by the CEO of the ELIDZ but its criticality in terms of purpose, or the need for the change was unclear to many employees at the time of initiation. An examination of the literature on change management highlighted the importance of managing resistance to change as part of a change initiative, so as to ensure a successful transition. The review of the literature on management of resistance to change in section 2 of this paper examines the definition of management of resistance to change and in particular, covers key factors like change readiness, participation in change and change communication. These key concepts underpin effective management of resistance during change. The literature on management of resistance to change with respect to the role of change readiness, participation in change and change communication was used to develop a questionnaire that was used to assess the ELIDZ change initiative. The questionnaire was developed in a Likert Scale format with questions across the spectrum of change readiness, change participation and change communication. Section 3 of this paper describes how the quantitative research was provided to the population sample of employees from the ELIDZ where the questions on change readiness, change participation and change communication was used to assess the effectiveness of management of resistance to change during the ELIDZ change initiative. In addition section 3 provides an explanation of how the results of the research were derived. The results on change readiness suggest that the ELIDZ change initiative did not address change readiness adequately. There is therefore a risk of resistance to change that could manifest. This also indicates that change readiness must be planned more thoroughly in future change endeavours. Most of the population sampled did not feel that they participated in the change initiative, suggesting that the ELIDZ did not address participation in the change initiative adequately. Not enabling employees to actively participate in the change is tantamount to decreasing the potential for acceptance of change and increasing the risk of resistance to change. In order to ensure that future change initiatives are not met with employee resistance to change, the ELIDZ should plan for employee participation throughout the change process. The extent to which change communication was addressed in the ELIDZ change initiative was demonstrated by very poor results. The results from the population sampled suggest that the change was not well communicated to employees. As change communication is known to reduce the potential for resistance to change, it is imperative for the ELIDZ to plan for comprehensive communication strategies to cover the change process for future change action.