The Contribution of the Cultural and Creative Sector towards advancing Special Economic Zones (SEZ’s) in South Africa

Overview

The growth and development of the cultural and creative industries in South Africa has been concentrated, uneven and nodal. Existing spatial and industrial planning literature details the value and opportunities presented by enterprise cluster theory. The report finds that Special Economic Zones (SEZs) as industrial clusters offer opportunities for CCI enterprises predominately in animation exports, film studios, cultural good exports, small enterprise development and incubation. The report finds that agglomeration, as characterized in the form of SEZs offered economic development opportunities and offers natural synergistic opportunities that can be leveraged by various CCI subsectors. The report also finds that SEZs offer critical opportunities for small and medium enterprise incubation and skills development for the CCI industries. Lastly, the report finds that technology and ICT infrastructure in SEZs offers opportunities for CCI export intensity as well as opportunities for backward linkages into the local economy. This report proposes various SEZ and CCI programmes and interventions which it expects to act as critical enablers of leveraging SEZs opportunities for the growth and development of CCI enterprises.

The purpose of this report is to define and operationalize the potential role that the Cultural and Creative Industries (CCI) can play within the Special Economic Zone (SEZ) initiative being implemented by the South African Government.

Accordingly, the report will aim to achieve the following objectives:

• • Define the scope of SEZ operations and requirements
  • Define the needs of SEZ operations which can be address through the CCI
  • Define possible areas and means of increasing integration between SEZ operations and the CCI
  • Define the possible benefits to integrating SEZ and CCI operations
  • Define possible barriers to entry and integration between SEZ operations and the CCI
  • Define a possible way forward

The approach taken in compiling the report includes:

• • A desktop review of global, regional and national trends in creative economy development as well as in the special economic zones
  • A review of existing stakeholder led documents (CCI master plan, DTIC reports etc) to ensure alignment with critical programmes, projects and initiatives.
  • Engage with and interview critical stakeholders in CCI, SEZs, Industry and Public Sector
  • Profile key challenges and interventions available for the CCI and SEZs nexus

COEGA and ELIDZ: We interviewed key personnel at the COEGA and ELIDZ special economic zones to ensure that we attain an enriched and on-the -ground understanding of the practical design, needs, programmes and opportunities for special economic zones and the available levers (or lack thereof) to drive growth in the cultural and creative industries. We achieved three in-depth interviews from these two SEZs covering both operations and investments. The questions asked covered SEZ operational design, operational needs, cluster and agglomeration value, incubation and skills and development and opportunities for CCI growth through partnership, incentives, infrastructure leverage and investment promotion.

• • Industry Practitioners: We achieved one in-depth interview with an industry researcher and cultural and creative industry policy maker. The interview focused on his role and contribution to the development of the sector masterplan for the cultural and creative industries, policies for development of the sector, incentives previously lessons from development programmes and initiatives.
  • Government Departments: We were unable to secure interviews with the department of Sports, Arts and Culture, Department of Trade, Industry and Competition and National Treasury. The challenges faced in securing the interviews were 1) low response rate 2) no time availability and 3) dishonoured meetings that had been secured.