Latest news with #TEDA
Zawya
22-05-2025
- Business
- Zawya
China's Xinxing invests $150mln in ductile iron pipe plant in Egypt
Egypt - Deputy Minister of Housing, Utilities, and Urban Communities, Sayed Ismail, toured the Suez Canal Economic Zone (SCZONE) this week, visiting the newly established Chinese Xinxing factory for ductile iron pipe production. During his visit, Ismail inspected all stages of the manufacturing process—from the assembly of local components and smelting, to centrifugal casting, protective coating application, and final product testing. He was briefed by Xinxing officials on the company's global experience in large-scale infrastructure projects and its interest in partnering with Egyptian firms and entities affiliated with the Ministry of Housing. The Deputy Minister emphasized the strategic significance of the Xinxing plant, which aims to localize the production of ductile iron pipes—critical components in major national infrastructure and utility projects. By producing locally, the plant will help reduce reliance on imports, lower procurement costs, and support exports to African and Gulf markets. Xinxing representatives noted that the facility, located within the 'TEDA–Egypt' industrial zone in the Suez Canal Economic Zone, spans an area of 270,500 square meters. The total investment in the project stands at approximately $150m. The plant is expected to create 700 direct jobs and an additional 220 indirect employment opportunities. It boasts an annual production capacity of 250,000 tonnes of ductile iron pipes, with diameters of up to 2,600 mm, tailored to the specifications of various national projects. Ismail reaffirmed the Ministry's full support for the initiative, in line with Egypt's broader national strategy to expand domestic manufacturing capabilities and open new export markets across Africa and the Arabian Gulf. He also underscored the importance of competitive pricing and the prioritization of local content in procurement by government-affiliated bodies. 'These serious investments reflect the confidence of international companies in Egypt's industrial potential,' he said, expressing optimism about further opportunities for industrial cooperation across Egypt's 27 governorates and 44 new cities.
Egypt Today
22-04-2025
- Business
- Egypt Today
Chinese amb. in Cairo: TEDA cooperation zone with Egypt achieves breakthrough
Chinese Ambassador to Egypt Liao Liqiang - file CAIRO - 22 April 2025: Chinese Ambassador to Egypt Liao Liqiang announced that China-Egypt TEDA Suez Economic and Trade Cooperation Zone (TEDA) has recently achieved significant momentum on the financial level as first loan in renminbi worth 220 million yuan has been successfully disbursed to bank roll expansion work of second phase of the zone. The Japanese ambassador said in a tweet on X Tuesday: China-Egypt TEDA Suez Economic and Trade Cooperation Zone has succeeded in attracting 185 companies, with total investments exceeding dlrs 3 billion and sales value exceeding dlrs 5.3 billion, while tax payments amounted to about dlrs 300 million and provided nearly 10,000 direct job opportunities. Liao added the area is currently an exemplary leading model of successful industrial cooperation between Egypt and China.
Zawya
04-03-2025
- Business
- Zawya
The legalisation of spaza shops in South Africa: an analysis of government efforts
The informal economy remains a significant component of South Africa's socio-economic landscape, particularly within townships where spaza shops serve as vital commercial nodes, providing essential goods and services to low-income communities. In recent years, the South African government has initiated regulatory frameworks aimed at legalising spaza shops, ostensibly to promote economic inclusivity, enhance consumer protection, and improve tax compliance. However, these efforts have been met with substantial criticism, raising concerns about their effectiveness, potential unintended consequences, and the broader implications for township economies. The policy framework and its intentions The legalisation of spaza shops has been framed within the broader objectives of the Township Economic Development Act (TEDA) and the National Informal Business Upliftment Strategy (NIBUS). The TEDA seeks to formalise township businesses through licensing, regulatory compliance, and integration into the mainstream economy, while NIBUS provides developmental support such as funding, infrastructure improvements, and skills development. Furthermore, the government has attempted to streamline business registration through the Companies and Intellectual Property Commission (CIPC) and introduced township-specific incentives aimed at fostering entrepreneurship. The Department of Small Business Development (DSBD) has also led interventions, including the Township and Rural Entrepreneurship Programme (TREP), which aims to provide financial and non-financial support to spaza shop owners. Additionally, municipalities have implemented bylaws governing trading permits and zoning regulations to control business operations. Despite these efforts, the implementation of such policies remains fraught with challenges, particularly concerning enforcement, red tape, and the exclusion of non-South African spaza shop operators, who dominate the market. Barriers to implementation: bureaucratic red tape and regulatory burdens One of the most significant obstacles to the legalisation of spaza shops is the bureaucratic inefficiency and excessive red tape associated with business registration and compliance. The process of obtaining trading permits and business licences remains cumbersome, particularly for informal traders who may lack the requisite documentation, financial resources, or digital literacy to navigate the registration system. Furthermore, township businesses often face unrealistic regulatory burdens, such as stringent health and safety standards, adherence to municipal zoning laws, and compliance with the South African Revenue Service (SARS) tax obligations. While these regulations are intended to enhance consumer protection and economic formalisation, they inadvertently create barriers to entry for micro-entrepreneurs, leading many to operate outside the legal framework. The foreign-owned spaza shop debate: exclusionary policies? A highly contentious aspect of the government's legalisation efforts is the treatment of foreign-owned spaza shops. The 2023 Gauteng Township Economic Development Act, for instance, prioritises South African citizens in township business licensing, effectively marginalising foreign-owned enterprises. This approach has been criticised as protectionist and xenophobic, raising concerns about social cohesion, economic discrimination, and the potential for violence against foreign business owners. The dominance of foreign nationals, particularly Somali, Bangladeshi, Ethiopian, and Pakistani traders, in the spaza shop industry has been a longstanding source of tension. Many township residents argue that these traders operate efficiently due to group purchasing strategies, extended business hours, and lower pricing structures, giving them a competitive edge over locally owned businesses. However, government intervention through restrictive licensing policies risks exacerbating economic fragmentation, black market activity, and illicit trading, rather than fostering genuine inclusion and development. Economic implications: formalisation vs. economic livelihoods The formalisation of spaza shops carries significant economic trade-offs. On one hand, legalisation enhances business legitimacy, facilitates access to funding and financial services, and ensures compliance with labour laws and taxation. On the other hand, excessive formalisation risks pushing many spaza shops out of business, thereby undermining township economies and exacerbating unemployment levels, which remain a critical challenge in South Africa, with an official rate of 32.1% (StatsSA, Q4 2023). A study by Bénit-Gbaffou (2018) suggests that informal businesses thrive precisely because of their low overhead costs and flexibility, which enable them to adapt to economic shocks. Overregulation may erode this advantage, resulting in fewer businesses, reduced market competition, and increased dependency on state support mechanisms. Moreover, the Value of a Statistical Life (VSL) concept, often used in economic planning, suggests that policy interventions should be evaluated based on their potential impact on livelihood sustainability and poverty alleviation. If legalisation efforts disproportionately burden low-income traders, the resultant economic harm may outweigh the intended regulatory benefits. Towards a more inclusive and sustainable policy approach Given the complexities surrounding spaza shop legalisation, a more nuanced policy approach is necessary. The government should consider the following recommendations: 1. Streamlined Registration Processes – Simplifying business registration through digital platforms, mobile outreach initiatives, and reducing bureaucratic inefficiencies. 2. Flexible Compliance Models – Implementing tiered regulatory frameworks that allow for graduated compliance, enabling micro-enterprises to transition towards formalisation without immediate excessive financial burdens. 3. Inclusive Market Strategies – Recognising the contributions of foreign-owned businesses and fostering collaborative township economic models, rather than adopting exclusionary licensing policies. 4. Public-Private Partnerships – Encouraging partnerships between spaza shop owners, wholesalers, and municipal authorities to enhance supply chain efficiencies and bulk purchasing power for local traders. 5. Community-Led Economic Development – Supporting local cooperatives and community-driven spaza shop initiatives that reinvest profits into township development. Conclusion The South African government's efforts to legalise spaza shops reflect a broader ambition to formalise the informal economy, but the approach remains fraught with challenges. Excessive regulation, exclusionary policies, and bureaucratic inefficiencies threaten to undermine the very businesses the government seeks to support. A more inclusive and pragmatic approach—one that balances formalisation with economic realities—is essential to ensuring that township economies continue to thrive. Without such reforms, legalisation efforts risk entrenching economic inequalities rather than alleviating them. 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