SEZs board will advise on strategy and policy

Trade and Industry Minister Rob Davies has defined the Special Economic Zones programme as “one of the most critical instruments that can be used to advance government’s strategic objectives of industrialisation, regional development and job creation” – while also assisting in improving the attractiveness of SA as a destination for foreign direct investment (FDI). Davies added that the SEZ Bill would enable government to move towards a broader SEZs programme – “designating a variety of SEZs to address the economic development challenges of each region, and spatial development inequalities”. The key provisions include the establishment of an SEZs board to advise the minister of trade and industry on the policy, strategy and other related matters; establishment of the SEZs fund to provide for a more coherent and predictable funding framework that enables long-term planning; and strengthening of governance arrangements – including clarification of roles and responsibilities of key stakeholders. “In addition,” Davies said, “we will have a more coherent approach to planning and supporting special economic zones operators, especially in areas such as investment promotion and marketing; capacity building; environmental protection; infrastructure development and logistics; improved co-ordination among government agencies; and the reduction of red tape.” Following the official launch of the scheme, the dti has embarked on a public consultation process on the SEZ policy and Bill. “We will immediately start engaging provinces on identifying possible SEZs and undertaking the required feasibility studies for each proposed SEZ.” Although FTW approached a number of high-level business executives for comment on the fledgling SEZ Bill, the response was Spartan in nature. Raymond Parsons, deputy CEO of Business Unity South Africa, told FTW: “Busa cannot comment in-depth at this stage, pending further detail, but welcomes the opportunity to examine how the mechanism of special economic zones can be effectively used to promote industrial development and job creation in South Africa. “The upgrading of industrial development zones is welcomed but the overall success of the latest initiative will ultimately depend on the extent to which its design boosts competitiveness.”