Revitalising the economy, improving the investment climate, strengthening the manufacturing sector and job-creation. These according to minister of trade and industry Dr Rob Davies will result following president Jacob Zuma signing the Special Economic Zones (SEZ) Act, 2014.

Davies says, “The SEZ Act aims to support balance industrial development for our country, improve manufacturing capabilities, and the development of more competitive and productive regional economies – with strong up and downstream linkages in strategic value chains.  Its signing into Law by President Zuma is a significant milestone in pursuit of the aspirations expressed in the National Development Plan (NDP), New Growth Path (NGP) and Industrial Policy Action Plan (IPAP).”

Preceding the SEZ Act, the dti initiated the Industrial Development Zone (IDZ) programme under the Manufacturing Development Act (MDA) in 2000. The focus of the IDZ programme was largely to attract foreign direct investment, increase exportation of value added manufactured products and creates linkages between domestic and zone based industries.

According to Minister Davies, the criteria for IDZ designation were biased towards the development of coastal regions and ignored economic potentials existing in the inland regions; as IDZs by nature are export oriented and vicinity to the sea or airport becomes strategic for logistics purposes.

“To date five IDZs have been designated (i.e Coega; East London, Richards Bay, OR Tambo and Saldanha Bay), with the newly designated Saldanha Bay in October 2013. Three of the five IDZs in Coega, East London and Richards Bay are fully operational, and have achieved some major successes, 42 operational investments worth R4bn and created over 5,000 direct jobs and 43,000 construction jobs”, stated Davies.

He indicated that unlike the former IDZ regulatory framework, the Special Economic Zones (SEZ) Act will further cater for the coordinated and integrated government planning that will involve all spheres of government. This will result in a more holistic industrial development approach

The Minister specified that the Act provides for the designation of the following types of SEZs:

• Free Ports:  Duty free areas adjacent to a port of entry where imported goods may be unloaded for value-adding activities, repackaging, storage and subsequent re-export, subject to special customs  procedures

• Free Trade Zones: a duty free area offering storage and distribution facilities for value-adding activities within the Special Economic Zone

• Industrial Development Zone: A purpose built industrial estate that leverages domestic and foreign fixed direct investment in value-added and export-oriented manufacturing industries and services

• Sector Development/Specialised Zones: A zone focused on the development of a specific sector or industry through the facilitation of general or specific industrial infrastructure, incentives, technical and business services primarily for the export market