SPECIAL FEATURE
Special Economic Zones Promoting industrial development via incentives.
S
outh Africa is investing in Special Economic Zones (SEZs) as a major plank of its industrial development policy. A range of incentives are available to attract new skills and develop new industries.
Key goals behind the establishment of SEZs •
• • •
To encourage industries to develop in clusters, leading to economies of scale, skills-sharing and easier access by suppliers To create industrial infrastructure to promote investment To promote cooperation between the public and private sectors To use the zones as a launching pad for other plans to further development.
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Apart from attracting foreign direct investment (FDI) and boosting employment, SEZs can also play a role in helping to add new sectors or subsectors to an economy. South Africa is targeting a variety of sectors in SEZs around the country, but there is a emphasis on beneficiation, mainly of minerals but also agricultural processing. There is a strong feeling that South Africa can do much more with the product of its soils – whether that be using manganese to convert iron into steel or creating fruit juices out of apples and pears. Special Economic Zones are created in terms of the Special Economic Zones
