The Special Economic Zones (SEZ) will go a long in assisting South Africa, to address some of the country’s socio-economic challenges such poverty, and social and economic inequalities that are still rife in the country. This was said by the Department of Trade and Industry’s (the dti) Head of Regional and Spatial Economic Development Mr Alfred Tau.
Tau was speaking at a public hearing session on the Special Economic Zones Bill and Policy that was hosted by the dti in Bloemfontein today.
“South Africa still experiences a high unemployment rate, particularly amongst the country’s youth, regionally concentrated economy as well as high levels of poverty and inequalities. The Special Economic Zones, as proposed in the Draft Bill and Policy, will be used as one of the tools that government will apply in order to address some of these challenges. The government moves from the premise that industrial development is key to growing the country’s economy and creating employment opportunities, as well as generally bettering the lives of our people,” said Tau.
He added that no successful economy in the world had achieved that feat without industrialisation.
“The fastest growing economies in the world, such as India, China and Brazil have used Special Economic Zones as instruments to accelerate their industrial development,” he said.
The Chief Director of infrastructure Development Support at the dti, Kaya Ngqaka said the direction proposed by the Bill and Policy for the special economic zones have the full support of government. This was illustrated by Minister of Finance, Mr Pravin Gordhan in his Budget Speech yesterday when he announced that tax relief was under consideration for businesses that invest in the Special Economic Zones, including a reduction in the corporate income tax rate and support for employment and training expenses. Minister Gordhan also pronounced that R2.3 billion would be allocated to the dti for Industrial Development and Special Economic Zones.
Issues raised by participants included special benefits and incentives that a Special Economic Zone in the Free State will provide in order to attract investors, the black economic empowerment component of the SEZs, participation and benefits for small enterprises, and the future of other economic development initiatives currently being implemented by the Free State provincial government.
The purpose of the Bill, which was gazetted by the Minister of Trade and Industry, Dr Rob Davies last month, is to provide for an effective mechanism for the development, operation and management of special economic zones in order to promote accelerated industrial development and industrial decentralisation.
The purpose of the public hearings is to give members of the public, organised labour and business an opportunity to express their views on the Special Economic Zones (SEZ) Bill and Policy.
Today’s public hearing was attended by representatives from the Provincial Government, Municipalities, Free State University, Enterprise Development Agencies, Corporation, Financial Services Sector, Private Institutions, and Small Enterprises.
Enquiries:Sidwell Medupe (Departmental Spokesperson)
Tel: 012 394 1650
Cell: 079 492 1774
E-mail: MSMedupe@thedti.gov.za
