The deindustrialisation happening in large parts of Nelson Mandela Bay is cause for concern and needs to be urgently addressed by our city’s leadership.
You only need to drive through the once booming industrial areas such as Deal Party and parts of North End, Korsten and Struandale to see abandoned buildings, empty car parks and distressing “To Let” or “For Sale/Auction” signs in what can only be described as scenes from a ghost town.
The real concern is that these deindustrialised areas may increase, and may begin to include large sections of the metro such as Kariega, which was recently dealt a blow with the closure of Goodyear.
Besides the loss of 900 jobs, you also fear for the onset of deindustrialisation in this part of Nelson Mandela Bay and what this could mean for ordinary ratepayers, the community and residents in general.
What are they doing in council?
The question arises what the city’s leadership is doing about the economy of Nelson Mandela Bay.
Are these trends being considered and addressed in our IDP and by the affected directorates?
Should a strategy to counter deindustrialisation not be a priority?
When last were issues of economic concerns raised in council agendas?
What are political parties doing in council to address deindustrialisation and to attract investment and growth?
The drivers of deindustrialisation should be investigated — whether these are as a result of globalisation and uncertain trade relations or automation and technological changes.
Adapting to these changes and providing a conducive business environment should be a priority.
While we may not be able to change the bigger global factors, we can address policy gaps, red tape, improved logistics, investment incentives and overall stronger governance to attract business confidence in the Bay.
Coega is proof that we’ve still got it
With tentative interest by investors to take up the gap left by Goodyear in the tyre manufacturing sector, it is encouraging that the need to build tyres, as just one example of the manufacturing capacity and potential of the region, still exists in the metro.
Local manufacturing is still viable and inexpensive compared to our overseas counterparts.
The Coega Special Economic Zone (SEZ) has 67 tenants, who have created 11,000 jobs.
Entities such as the Coega Development Corporate (CDC) operate as islands within the economic climate in SA.
In an article titled “Leveraging special economic zones for growth”, Prof William Gumede suggests that SEZs should align with the country’s National Development Plan to play a critical role in growing the economy, in partnership with business.
However, SEZs in general “operate largely as enclaves”, according to Gumede, and while they do achieve investment and industrialisation, they find themselves in a vacuum that is disconnected from the local and national economy.
Similarly in the local government bulletin for the Dullah Omar Institute, in an article titled “The role of special economic zones in the promotion of local economic development”, the writer argues that local governments are failing to maximise the potential of SEZs due to a lack of adequate information on how to incorporate them into economic strategies.
The recommendation is that “there must be municipal representation on SEZ boards to incorporate municipal planning with SEZ activities for community benefit”.
As a country, and more specifically as a metro, can we afford further youth disenfranchisement, unemployment, brain drain and urban decay?
Nelson Mandela Bay stands at the crossroads.
The signs of deindustrialisation are visible, red flags that we have perhaps become used to seeing.
Deindustrialisation is not just about empty buildings, it is about lost livelihoods, lost hope and a metro at risk.
A committed, collaborative leadership with a shared vision for renewal is needed to come up with a turnaround plan to rebuild a resilient, inclusive local economy.
- Dr Luvuyo Bono qualified with a doctorate in labour law (LLD) at Nelson Mandela University in 2023, where he also holds the title of adjunct professor of law. He was admitted as an advocate of the High Court in 2000 and has contributed to key labour law legislation in SA. He is the current chair of the Coega Development Corporation and writes in his personal capacity
The Herald
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.