Examination of special economic zones’ contribution to sustainable development in South Africa: using coega idz and musina-makhado sez as examples

Abstract

This study investigates the extent to which Special Economic Zones (SEZs) in South Africa— specifically the Coega Industrial Development Zone (IDZ) and the Musina-Makhado Special Economic Zone (MMSEZ)—enable or disable sustainable development. SEZs are often promoted as tools for industrialisation, job creation, and regional growth, yet their socio- economic and environmental impacts remain contested. The study adopts a qualitative multisite case study approach, focusing primarily on communities adjacent to the SEZs. Due to the COVID-19 pandemic, which restricted mobility and altered community engagement, data collection relied heavily on virtual and socially distanced interviews, complemented by document analysis, observation, and policy review. The methodology was adapted to merge social and economic dimensions, as community perceptions of employment, skills development, and local enterprises’ growth were deeply intertwined. Environmental sustainability was also examined through the lens of livelihoods, recognising that local communities’ well-being depends on access to and management of natural resources. Data was analysed thematically, using Miles and Huberman’s approach, with findings interpreted through the Triple Bottom Line, Institutional Theory, and the Capability Approach. The findings reveal that while SEZs contribute to job creation, skills development, and improvements in infrastructure, they also present challenges related to environmental degradation, inequitable benefit distribution, and exclusion of local voices from decision- making. Livelihoods were particularly affected by tensions between industrial expansion and access to natural resources. The study highlights gaps between policy intentions and implementation, emphasising the need for inclusive, context-sensitive governance frameworks that integrate socio-economic and environmental considerations. The research contributes to the understanding of SEZs as instruments of sustainable development, offering insights for policymakers, practitioners, and scholars seeking to balance industrial growth with social equity and ecological sustainability, particularly in the context of emerging crises such as COVID-19.