South African Business 2023

Partnerships show the way for
Special Economic Zones
Collaboration between the private sector and government and its
agencies is paying off in eight provinces.
The goal of industrialising the South
African economy is a major objective of
the Special Economic Zone programme.
These zones (which include Industrial
Parks) are intended as catalysts for economic
growth in established sectors and in stimulating
new industries.
Collaboration between national government
(through the Department of Trade, Industry
and Competition, the dtic, which oversees
the programme), provincial departments and
municipalities, economic development agencies and
private companies in key sectors is a vital component
in making Special Economic Zones work.
Policy goals
As defined by the dtic, Special Economic Zones
(SEZs) are geographically designated areas set
aside for specifically-targeted economic activities,
supported through special arrangements (laws, tax
rebates) and systems that are often different from
those that apply in the rest of the country.
South Africa’s Industrial Policy Action
Plan (IPAP) identifies SEZs as growth engines
towards government’s strategic objectives of
industrialisation, regional development and
employment creation.
The purpose of the SEZ programme is to:
expand the industrialisation focus to cover diverse
regional development needs; provide a clear,
predictable and systemic planning framework
for the development of a wider array of SEZs to
support industrial policy objectives; clarify and
strengthen governance arrangements, expand
the range and quality of support measure
beyond provision of infrastructure; and provide a
framework for a predictable financing framework
to enable long-term planning.
Partnerships
In some parts of the country, an anchor tenant
is central to the concept of the approved or
proposed SEZ.
In East London, the presence of Mercedes-
Benz South Africa makes the clustering of
automotive suppliers in the East London IDZ both
logical and cost-effective. The Northern Cape’s
proposed Namakwa SEZ is predicated on the huge
operations of the existing Gamsberg Zinc Mine
(pictured) and the proposed smelter to be built by
international investor Vedanta Zinc International.
In eastern Limpopo, the Mining Supplier Park
run by mining company Glencore is forming the
core around which the Fetakgomo-Tubatse SEZ
is being created. Local and district municipalities
are investing in basic infrastructure, while the
provincial government has allocated staff from
its Department for Economic Development,
Environment and Tourism to drive the process. The
same provincial department has created a stateowned-company
to run the Musina-Makhado SEZ
in the northern part of the province.
SOUTH AFRICAN BUSINESS 2023
18