A licence would allow the IDZ to offer export incentives and services to companies located in the zone.

Richards Bay is looking to become the third IDZ to receive a permit after Coega and East London, which acquired their licences in 2002.

A fourth zone at Johannesburg International has yet to apply for an IDZ licence.

"The question of the licence is being attended to and I trust that we will get the provisional operator permit in the April quarter," said Thapelo Makhetha, the operations and projects manager at Richards Bay.

"Right now, we are moving forward with establishing an industrial park."

However, a source close to the department of trade and industry said the process to grant a permit to Richards Bay was being held up due to issues related to ownership of the IDZ.

The zone is owned by Umhlathuze city council and Ithala Development Finance Corporation.

Makhetha would not comment on the issue of ownership, saying it was an internal matter.

IDZs are essentially export processing areas designed to boost local exports, investment and employment.

The zones are situated close to a port or airport to facilitate transportation of finished goods to parts of the world where the demand is greatest.

The IDZs will have purpose-built industrial parks and companies operating from the zone can import raw materials duty-free.

Inputs purchased in South Africa will be exempted from the value-added tax provided they are used to manufacture exports.

Cliff Bell, the marketing director of the Richards Bay IDZ, said there were about 16 companies willing to settle in the zone with potential investment of as much as R3.5 billion.