South African cabinet approves Special Economic Zone Bill to attract domestic and foreign investment

South African cabinet approves Special Economic Zone Bill to attract domestic and foreign investment

Xinhua

CAPE TOWN– The South African cabinet has approved the Special Economic Zones (SEZ) Bill which is expected to attract domestic and foreign investment, it was announced on Friday.

The bill, which was approved at a fortnight cabinet meeting, will be submitted to Parliament for approval, the cabinet said.

The bill provides for the designation, development, promotion, operation and management of SEZs; the establishment of a SEZ Board and regulating the application and issuing of SEZ operator permits to persons wishing to develop and operate a SEZ, according to the SA Government Communication and Information System.

SEZs are designated geographical areas aimed at attracting focused domestic and foreign investments.

Earlier this year, public hearings were conducted countrywide on the bill, gazetted by Minister of Trade and Industry Rob Davies in January.

Davies said at that time that special economic zones would expand on the work already done by the country’s Industrial Development Zones (IDZs) and attract more foreign investment.

In particular, SEZs would help stimulate industrialization outside of the country’s main urban areas of Cape Town, Gauteng, Durban-Pietermaritzburg, East London and Port Elizabeth.

The SEZs would expand on the IDZs, and include a focus on innovation and regional development in areas such as science parks, industrial parks and sector development zones, according to a government plan.

The IDZ program was initiated in 2000, and four zones had been designated, with three currently operational namely Coega near Port Elizabeth, the East London IDZ, and Richards Bay near Cape Town.

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Statement on the Cabinet meeting of 8 August 2012
10 Aug 2012

Cabinet held its ordinary meeting in Cape Town on the 8th of August 2012

Special Economic Zones Bill, 2012

Cabinet approved Special Economic Zones (SEZ) Bill, 2012 for submission to Parliament.

Special Economic Zones are designated geographic areas aimed at attracting focused domestic and foreign investments.

The Bill provides for:

• The designation, development, promotion, operation and management of SEZs;
• The establishment of a SEZ Board;
• The establishment a dedicated SEZ Fund;
• Determination and implementation of incentives for SEZ operators and businesses operating within SEZs
• Regulating the application and issuing of SEZ operator permits to persons wishing to develop and operate a SEZ.
• The suspension or withdrawal of a SEZ operator permits in certain circumstances.

Issued by: South Africa Government Communication and Information System (GCIS)
10 Aug 2012

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Video: SABC 2 New concept of Special Economic Zones -Feb 2012

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Video: More on South Africa’s Special Economic Zones

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