SPECIAL ECONOMIC ZONES - NCPCncpc.co.za/.../07_MaotaMolefane_ISP.pdf2013 356 8 R3,8 billion OR Tambo (GP) 2002 7.5 4 R361 million Maluti-a-Phofung SEZ (FS) 2014 1039 3 R440 million

1

SPECIAL ECONOMIC ZONES

PRESENTATION INDUSTRIAL EFFICIENCY CONFERENCE

WEDNESDAY, 11 SEPTEMBER 2019

INTRODUCTION

• South Africa, like many other developed and emerging

economies recognizes SEZ programme as a strategic tool to

drive Industrialization (e.g China, Malaysia, Singapore, etc).

• In particular, Manufacturing led industrialisation has shown to

be the most critical job generator, as it generates the highest

number of direct jobs

• South Africa’s key development blue prints emphasise the need

to industrialize: NDP & PAP

• The Special Economic Zones Programme is one of many

critical instruments used to drive industrial development.

• Although the SEZ programme is relatively new in SA, it has

changed, and continue to change the economic landscapes of

many host regions.

Secret

SPECIAL ECONOMIC ZONES AROUND THE WORLD: DUBAI

Secret

SPECIAL ECONOMIC ZONES AROUND THE WORLD

Shenzhen 1980

Shenzhen Now

SPECIAL ECONOMIC ZONES AROUND THE WORLD: SHENZHEN

Secret

SPECIAL ECONOMIC ZONES AROUND THE WORLD

WHAT ARE SEZs ?

The components of the term “SEZ” can be broken

down as follows:

• Special: Refers to the regulatory regime that

differentiates the specific zone from the rest of

the country’s economy.

• Economic: Refers to the type of activities

allowed within the specific zones.

• Zone: Refers to the physical or legally

restricted economic space contained within the

specific area

Airport City

Dube TradePort

• Industrial Development Zones Programme, 1999 - an incentive

programme to establish IDZs

• Industrial Development Zone: a type of special economic zone

providing special provisions to develop industrial growth in

particular geographical areas

• IDZ Programme has performed below expectation

• Policy review process 2006 - to review the challenges experienced

by the IDZ Programme

• Greater focus on desired industrial capabilities through value chains and

cluster development;

• Long-term financing mechanism and competitive incentive package;

• Greater focus on host regions and not just the fenced area (expansion or

creation of new cities);

• Long-term planning that is also comprehensive and coordinated across and

within the various spheres of government and key agencies (comprehensive

master plans;

• Broad design to cater for diverse regional needs and contexts (a shift away

from focusing on coastal regions);

• A comprehensive support system that goes beyond the provision of world-

class infrastructure and investment

SA’S NEW APPROACH TO SEZs

Bagamoyo SEZ in Tanzania started construction work on a $10 billion investment in

2015, a project backed by China and Oman

SIMPLIFIED MASTER PLANNING FOR SEZ: EXAMPLE

SPECIAL ECONOMIC ZONE TAX INCENTIVE SUPPORT

Secret









Corporate Tax Rate: 15% Accelerated Depreciation allowance for buildings

Employment Tax Incentive Duty Free (Customs) and

VAT Free

SEZ Incentives Package

10

ADDITIONAL (NATIONAL AND SEZ LEVEL) SUPPORT

PACKAGE

Secret









Integrated and Simplified Investment procedures

(OSS)

Infrastructure Support (Incl. Secure and Safe Neighbourhoods)

Preferential land rental and utility rates

Municipal Incentives

SEZ Incentives Package

11

Secret 12

INDUSTRIAL DEVELOPMENT ZONES IN

RSA SEZ IN SOUTH AFRICA

Secret 13


RSA OPERATIONAL SEZ IN SOUTH AFRICA

Secret 14


RSA PROPOSED SEZ UNDER CONSIDERATION

Tubatse

Wild coast

Science and Hi-Tech

Upington

Bojanala Platinum valley

122 61 R33.64 Billion

122

R33 64 Billion 61

SEZ INVESTMENT PERFORMANCE OVERVIEW

R16.23 Billion

R16.23 Billion

Operational Investors

on Site

Estimated Value:

Secured but Non-

Operational Investors

Estimated Value:

SEZ Name

(Province)

No. of

Operational

Investors

Value of Operational

Investment (R)

Value of Secured, but not

Operational Investments

(R)

Total Direct

Employment Created

Coega IDZ

(EC) 45 9,53 Billion 17, 820 Billion 7 815

East

London IDZ

(EC)

32 4,4 Billion 739 Million 3 993

Richards

Bay IDZ

(KZN)

2 320 Million 11, 945 Billion 97

Dube

TradePort

(KZN)

39 1,3 Billion 3,111 Billion 2 821

Atlantis (WC) 4 680 Million 20 Million 324

TOTAL 122 16,23 Billion 33, 64 Billion 15 050

INVESTMENT PERFOMANCE PER EACH OPERATIONAL SEZ

SEZ INVESTMENT PERFORMANCE OVERVIEW:

NON OPERATIONAL

Name of the

SEZ

Year of

designation

Total Size (Ha) Signed

investors

Estimated

Investment

value

Saldanha Bay

(WC)

2013 356 8 R3,8 billion

OR Tambo (GP) 2002 7.5 4 R361 million

Maluti-a-

Phofung SEZ

(FS)

2014 1039 3 R440 million

Musina-

Makhado (LP)

2018 7262 9 $14,1 billion

Nkomazi SEZ

(MP)

2019 155 N/A N/A

TOTAL 8664 19

18

Thanks you

the dti Campus

77 Meintjies Street

Sunnyside Customer Contact Centre: 0861 843 384

Pretoria, 0002 Website: www.thedti.gov.za
http://www.thedti.gov.za/

Documents

SPECIAL ECONOMIC ZONES - NCPCncpc.co.za/.../07_MaotaMolefane_ISP.pdf2013 356 8 R3,8 billion OR Tambo (GP) 2002 7.5 4 R361 million Maluti-a-Phofung SEZ (FS) 2014 1039 3 R440 million