The East London Industrial Development Zone (ELIDZ) has unveiled a suite of digital infrastructure projects worth more than R330 million, positioning the Eastern Cape as a growing hub for South Africa s digital economy and Industry 4.0 transformation. The announcement was made during the Eastern Cape Digital Economy Summit, where provincial leaders, investors, business executives and technology stakeholders gathered to assess the province s digital transformation agenda.
The investment package includes a R76 million Tier III-aligned Data Centre funded by the Eastern Cape Provincial Government, a R65 million Business Process Outsourcing (BPO) and Shared Services facility supported by the Department of Trade, Industry and Competition, and R181 million in broadband and undersea cable infrastructure enabled through private sector investment. Additional projects include a R2.8 million Digital Hub and a R5 million Cisco EDGE Centre focused on digital skills development.
Speaking at the summit, ELIDZ Chief Executive Officer Tembela Zweni said the province s digital economy had moved beyond planning stages and was now entering an execution-driven phase. The digital economy in the Eastern Cape is no longer conceptual. It is operational, investable, and focused on execution,” he said. Zweni described the developments as part of the Zone s transition into a Zone 4.0” operating model, integrating industrial capability with digital infrastructure to improve competitiveness, attract investment and expand economic participation.
Eastern Cape Premier Lubabalo Oscar Mabuyane linked the projects to lessons learned during the COVID-19 pandemic, saying the crisis highlighted the importance of digital infrastructure in maintaining government services and economic continuity. Digital economy is not a luxury; it is the backbone of business continuity for government, improved accessibility for citizens, and a new avenue for industrial development,” Premier Mabuyane said.
A major focus of the initiative is job creation and youth development. The new 800-seat BPO and Shared Services facility is expected to create approximately 2,400 direct jobs through multi-shift operations, targeting graduates and young professionals entering the digital economy. The ELIDZ Digital Hub will support innovation, incubation and small business development by offering prototyping and commercialisation opportunities for emerging enterprises. Provincial leaders said the initiative would help expand access to the digital economy, particularly for township and rural entrepreneurs.
Premier Mabuyane further stated that the province was positioning itself to become globally competitive in sectors such as cloud computing, cybersecurity, fintech and data-driven services. The future of this sector will not be defined by traditional manufacturing alone. It is being defined by Industry 4.0, automation, robotics, predictive analytics, and smart logistics,” he said. The Premier added that the province was already engaging private sector partners including Vodacom and Microsoft South Africa to accelerate digital skills development and ensure broader participation in the province s digital transformation journey. The next phase of the programme will focus on partnerships, utilisation and scaling operations across the new infrastructure platform to drive long-term economic growth and competitiveness.
