Study Finds South Africa SEZs Generated R14.8bn Revenue And Created Over 30,000 Jobs

Source: East London IDZ Facebook account

The study examined all 12 Special Economic Zones across South Africa, drawing on surveys, interviews with provincial government representatives and businesses operating within the zones, administrative data from the Department of Trade, Industry and Competition (the dtic), the South African Revenue Service and National Treasury, as well as international case studies from India, China, Poland, the United Arab Emirates and Jordan.

According to the study, South Africa's operational SEZs have generated R14.8bn in revenue and created more than 30,000 jobs.

"As government we are encouraged by the outcomes of this study. It has confirmed the impressive progress that we have achieved in the roll-out of the programme, as well as the hugely positive impact that it has made on the economy of the country in general, and the provinces where they are located in particular," says Minister of Trade, Industry and Competition Parks Tau.

"The fact that a revenue of R14.8bn has been generated by the SEZs that are operational, and more than 30,000 jobs have been created, speaks volumes of the capacity and potential of the programme to contribute immensely in the country’s economic growth, transformation and industrialisation," adds Tau.

Recommendations focus on improving performance

Tau says the department will assess the study's recommendations as it seeks to expand the programme and increase its economic impact.

"The study has identified various areas of improvement and recommendations, which we need to thoroughly analyse and consider implementing in line with the Revised Special Economic Zones Implementation Model, which is part of our Spatial Industrial Development Strategy," says Tau.

Among the recommendations are:

• Establishing a formal five-year intervention framework for underperforming zones.• Extending the 15% Corporate Income Tax rate to all SEZs.• Designating private-sector industrial parks within all SEZs using the Dube TradePort model.• Formalising municipal service-level agreements across the network.• Accelerating build-to-let mixed-use complexes to attract SME tenants.• Formalising the Special Economic Zones Fund with distinct infrastructure and top-structure pathways.

Government plans further expansion

Tau says government has already prioritised several interventions for the current financial year, some of which align with the study's recommendations.

"We have already designed various interventions that we have prioritised for this financial year, some of which are in line with the recommendations of the study. These are going to result in more SEZs being designated, more investments flowing into the SEZs, more jobs being created, and more small businesses being created in and around the SEZs," concludes Tau.