JOHANNESBURG, July 6 — South Africa has welcomed the recent findings of a World Bank study that shows the country has the infrastructure, legal framework, and institutional capacity to develop a world-class special economic zone (SEZ) program.
In a statement released on Monday, Minister of Trade, Industry, and Competition Parks Tau said the findings affirmed the progress South Africa has made in rolling out its SEZ program and highlighted its contribution to both national and provincial economic development.
The study was based on surveys conducted across all 12 SEZs in the country, interviews with provincial government representatives and businesses operating in the zones, administrative data from government departments, as well as international case studies from China, India, Poland, the United Arab Emirates, and Jordan.
Tau said the government was encouraged by the study. “It has confirmed the impressive progress that we have achieved in the roll-out of the program, 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,” he said.
The minister said the government would carefully consider the recommendations outlined by the study to further expand the SEZ program and enhance its economic impact. Among the recommendations are establishing a five-year intervention framework for underperforming zones, extending the preferential 15-percent corporate income tax rate to all SEZs, and setting up a dedicated fund to support the development of the zones.
According to Tau, South Africa’s operational SEZs have generated 14.8 billion rand (about 913 million U.S. dollars) in revenue and created more than 30,000 jobs, demonstrating the program’s significant contribution to economic growth, industrialization, and economic transformation.
South Africa has 12 designated SEZs across the country, which have attracted investment from countries including China, Germany, Japan, India, and the United States. (Namibia Daily News / Xinhua)
