Cabinet give green light for Special Economic Zones

01 Feb 2016 | Admin Author

Cabinet has given approval for the Special Economic Zones Bill to be introduced in Parliament by Trade and Industry Minister Rob Davies.

The Bill provides for the designation of Special Economic Zones, which will include the four existing industrial development zones, for a special fund and special incentives for both SEZ operators and businesses operating within Special Economic Zones.

The Eastern Cape has already signalled its intention to establish a zone on the Wild Coast.

Trade and Industry Director-General Lionel October notes that a key requirement for the establishment of an industrial development zone was that it was near a port or airport.

The four that have been established to date are at Coega, East London, Richards Bay and OR Tambo.

He said it was felt that more could have been achieved by the IDZs and this had resulted in a review of the programme and the decision to introduce SEZs “in order to improve the performance of the IDZ programme.

October said the challenges that needed to be met included:
*The design structure favoured a few regions
*Support focused narrowly on the pro-vision of infrastructure
*Planning was done on an ad hoc basis

October said he believed the SEZs could be one of the most critical instruments that can be used to advance government’s strategic objectives of industrialisation, regional development and job creation.

Further, he said, the programme could be used in “improving the attractiveness of South Africa as a destination for foreign investment”.

The Bill should be passed this year.

(Source: Metro Minute - to subscribe mail metminutes@iafrica.com)