On 23 January the Minister of Trade Industry, Dr Rob Davies, published a Government Gazette notice for public comment in respect of the “Policy on the Development of Special Economic Zones in South Africa - 2012” and the “Special Economic Zones Bill, 2011”. The Policy document comprises four Sections, namely (i) Introduction, (ii) Key Elements of the Special Economic Zones Policy, (iii) Implementation of the Special Economic Zones Programme; and (iv) Conclusion. According to the “Executive Summary” of the document a Special Economic Zone (SEZ) is defined as “a geographically designated area of a country set aside for specifically targeted economic activities, which are then supported through special arrangements (which may include laws) and support systems to promote industrial development”. The SEZ programme is a tool that is used by many economies to promote trade, economic growth and industrialisation. It further states “In an effort to reposition itself in the world economy, the South African government established the Industrial Development Zone programme (IDZ) in 2000. The programme’s main focus was to attract foreign direct investment (FDI) and export of value-added commodities. The main limitation of the programme was that the IDZs could only be designated adjacent to a sea port or international airport, and that excluded other regions in the country which had industrial potential but did not meet the IDZ criteria”. The Bill comprises seven chapters, namely (i) Interpretation, Objectives and Application, (ii) Special Economic Zones Board, (iii) Special Economic Zones Policy and Strategy, (iv) Financing and Incentives, (v) Designation of Special Economic Zones, (vi) Special Economic Zone Operator Permit, and (vii) General Provisions. Comment is due by 22 March 2012.
