Need to ‘open debate’ on free trade zones

Research conducted for Transnet that identified Ngqura as being the best place for South Africa’s hub port (FTW July 10, 2009) also highlighted the importance of free trade zones. The country’s Industrial Development Zones are not regarded as free trade zones because they are “customs secure” rather than duty free areas, offering tax holidays to investors. “The debate must start about the need for free trade zones,” says Solly Letsoalo, chief operating officer of Transnet Port Terminals (TPT). Up to now there has been little public debate as it has been stifled by interest groups such as the trade unions, which are concerned that labour laws and the protection of workers also stops at the gate in free trade zones. But, said Letsoalo, a “friendly business environment” is needed in order to attract investment. Both national and local government were responsible for creating this environment, he said. Support for opening the debate on free trade zones came from Nelson Mandela Bay deputy mayor Biks Ndoni, who told the Port Elizabeth Regional Chamber of Commerce and Industry breakfast that “we need to open up and discuss issues. We need to think creatively in order to create employment. “We have no choice but to grow the economy. Our shortcoming is that we rely on the auto sector. We have to find ways to diversify the economy,” he said.