In order to become globally competitive, South Africa has embarked on an industrial development zone (IDZ) programme to boost investment, increase the socio-economic climate, attract world-class manufacturers and generate local and foreign direct investment (FDI) while creating employment, encouraging skills and technology transfer, and increasing foreign exchange earnings. Twelve strategic areas within South Africa have been identified and are in the process of, or have been, declared IDZs. East London and Coega are the first two IDZs to come online in South Africa and have generated much publicity in the past number of years. One of the aims of the IDZs, as world-class production areas, is to generate FDI. Drivers of international FDI include globalisation, political, economic and legal environments and competitive advantage. According to the United Nations Conference on Trade and Development (2002: 25), FDI accounts for 16 percent of worldwide gross fixed capital formation – and a growing proportion of this is going to developing nations. According to the World Economic Processing Zones Association (WEPZA), IDZs have been the star performer in attracting investment and technology to developing countries during the past 50 years (2002: www.wepza.org). If the Eastern Cape IDZ programme is to be a success, the development corporations that have been established as the management arms of the IDZs will need to facilitate strategic economic advantage, look towards strategic investments that are sustainable, take advantage of and grow existing industrial capacity and create economic and social benefits for the region. There are a number of dynamics and reasons behind global FDI decisions. In order to be successful at attracting FDI the development corporations need to understand these dynamics and reasons in order to achieve a strategic fit between potential investor and the IDZ. This can be done by adopting a strategic management model for greenfield FDI from international investors.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:10937 |
| Date | January 2003 |
| Creators | Rich, Guy Martin |
| Publisher | Port Elizabeth Technikon, Faculty of Management |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MBA |
| Format | xvii, 130 pages, pdf |
| Rights | Nelson Mandela Metropolitan University |
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