Also shifting towards a policy of financial non-involvement for the state in the zones in the long term, a trade and industry department official said yesterday. 

Enterprise Organisation CEO Mahlape Mohale told Parliament's trade and industry portfolio committee that feasibility studies were under way to determine whether SA should have so many zones 

The initial idea on ownership was to have the zones falling under section 21 companies wholly owned by government as has been the case in most countries where the zones have been successful. Once operational the private sector would move in. 

But Mohale said government was moving away from the idea of owning the zones in the long term. 

'With the number we have in mind and changes of environment that line of thought is shifting,' he said. 'Provincial and local government will play a significant role in terms of financial support until such time that private partners come on board.' 

Coega was the first to be designated as a zone, with formal expressions of interest received from East London, Richards Bay, City Deep in Johannesburg, Johannesburg International Airport and Mafikeng. The Northern Province and Free State have expressed informal interest. Cabinet decisions on East London and Richards Bay are imminent. 

Government intended that each zone would concentrate on particular industries to prevent duplication. In Gauteng the emphasis would be on light hightech industries as well as floraculture, in Richards Bay aluminum, coal and wood. 

East London zone CEO Peter Miles said an area of about 1500ha on the west bank of East London had been identified for industrial development.

In the first phase, 375ha would be developed. The envisaged industry clusters included the automotive and engineering operations, textile and clothing manufacture, industrial textiles, agricultural and food processing and packaging, high technology equipment and composites.

Miles expected East London's proclamation as a zone to come through this month. 

So far the trade and industry department has approved funding of R8m to support the East London Development Zone Corporation's attempts to firm up on investments, business development. and other projects. 

'The value of the public sector investment in the project totals R162m and this is to be incurred over the first five years. 

'The investment by government is expected to leverage an additional R3,5bn in investment by the private sector, according to current potential investment projects. 

In terms of the East London business plan, turnover of the enterprises by year 2010 is expected to total R8,5bn, fiscal revenue R1,26bn and about 33 821.