Department of Trade and Industry
The trade and industry department is contemplating introducing new legislation that would enable government to set up new special economic zones (SEZ).
According to engineering news, the department’s director general, Lionel October, recently indicated that a new dedicated Special Economic Zones Act would empower government to establish SEZs in areas not linked to an airport or sea port.
The director-general was speaking at a seminar on ways to boost the contribution made by local ports to economic growth and job creation.
He also pointed out that a feasibility study into the development of an industrial development zone (IDZ) at Saldanha would be completed by the end of October.
It is anticipated that the IDZ at Saldanha would be officially declared by the trade and industry minister, Rob Davies, early next year.
The department has recently undertaken a review of the idea behind IDZs and how they have been set up in the various locations such as Coega, East London and Richards Bay.
The IDZ policy review was announced in April 2010.
The proposed legislation would aim to rectify the shortcomings of the IDZs in attracting local and foreign investment into zones surrounding harbours and airports.
Mr October declared that a draft bill would be published soon.
The SEZs would be designed to attract investors by means of incentives, customs exemptions and the existence of world class infrastructure.
The department also emphasised that a quicker decision making process would be put in place to assist potential investors in gaining access to a zone.
The proposed legislation would empower the minister to declare a particular area as a SEZ.
Government is determined to expand industrial capacity in the country.
Sabinet Cape Town Office
Post new comment