SEZ Regulations and Incentives to be Published this Month

NOVEMBER 5, 2014

The Department of Trade and Industry (DTI) intends to finalise and publish regulations and incentives for Special Economic Zones (SEZ) by November 17.

The SEZ Performance Analysis Bulletin published by DTI says that “extensive reviews” on the regulations and incentives with the SA Revenue Service and National Treasury have been concluded.

It says the legal review is “now in process,” while external stakeholder consultations are being planned.

Both the existing industrial development zones in the Eastern Cape in East London and at Coega will fall under the new SEZ regime and so be eligible for a suite of incentives that have not been available to date.

The Eastern Cape Government has also applied for the designation of an SEZ around Mthatha that will focus on agro-processing.

DTI says that along with another six applications, the Mthatha SEZ is currently at the “technical feasibility and business plans” stage.

DTI has set February 13 next year as the target date for a draft SEZ skills framework and plan to be drafted for finalisation with all departmental stake-holders.

By June 30 next year DTI is aiming to have agreement reached on the initial focus for a pilot intervention “to speed up the standardisation of the one-stop shop model” across all SEZs and IDZs.

DTI says that sessions are being planned with external stakeholders to “socialise” the contents and implications of the SEZ Act, the aim being to finalise this process next week.

February next year has also been set as the target date for the completion of the development and implementation of the SEZ marketing and communications strategy.

Currently, inputs from external consultants are being sought.

DTI has set February 2016 as the target date for the development and capitalisation of the SEZ fund.

It says an “urgent intervention” is being sought with National Treasury “to confirm views on the principles and strategic intent of the fund”. - MetroMinutes.

 

Photo Caption: Coega will fall under the new Special Economic Zones in the Eastern Cape.