The Minister of Trade, Industry and Competition, Mr Parks Tau has been encouraged by the findings of a comprehensive study conducted by the World Bank on the country’s Special Economic Zones Programme.
The study has established that South Africa has the infrastructure, legal framework, and institutional capacity to build a world-class SEZs programme.
The study draws on surveys from all 12 SEZs nationwide, interviews with provincial government representatives and SEZs businesses, administrative data from the Department of Trade, Industry and Competition (the dtic), South African Revenue Service, National Treasury, and international case studies from India, China, Poland, the United Arab Emirates and Jordan.
“As government we are encouraged by the outcomes of this study. It has confirmed the impressive progress that we have achieved in the roll-out of the programme, as well as the hugely positive impact that it has made on the economy of the country in general, and the provinces where they are located in particular,” says Tau.
“The fact that a revenue of R14.8 billion has been generated by the SEZs that are operational, and more than 30 000 jobs have been created, speaks volumes of the capacity and potential of the programme to contribute immensely in the country’s economic growth, transformation and industrialisation,” adds Tau.
He further stresses that the importance of the study lies in its findings and recommendations that the department will critically look into with the aim of implementing to expand the programme and increase its impact.
“The study has identified various areas of improvement and recommendations, which we need to thoroughly analyse and consider implementing in line with the Revised Special Economic Zones Implementation Model, which is part of our Spatial Industrial Development Strategy,” says Tau.
Other recommendations include:
- Establishing a formal five-year intervention framework for underperforming zones
- Extending the 15% Corporate Income Tax rate to all SEZs
- Designateing private-sector industrial parks within all SEZs using the Dube TradePort
model
- Formalising municipal service-level agreements across the network
- Accelerating build-to-let mixed-use complexes to attract SME tenants
- Formalising the Special Economic Zones Fund with distinct infrastructure and top-structure pathways
“We have already designed various interventions that we have prioritised for this financial year, some of which are in line with the recommendations of the study. These are going to result in more SEZs being designated, more investments flowing into the SEZs, more jobs being created, and more small businesses being created in and around the SEZs,” concludes Tau.
Media Enquiries:
Kaamil Alli – Ministerial Spokesperson
Mobile: +27 82 520 6813
WhatsApp: +27 82 520 6813
E-mail: KAlli@thedtic.gov.za
Or
Bongani Lukhele – Director: Media Relations
Tel: (012) 394 1643
Mobile: 079 5083 457
WhatsApp: 074 2998 512
E-mail: BLukhele@thedtic.gov.za
Issued by: The Department of Trade, Industry and Competition (the dtic)
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