BOSA calls for a Special Economic Zone (SEZ) in every township to create new jobs and uplift communities
15 October 2024
Today, the Department of Trade, Industry and Competition appeared before Parliament to provide an update on the developments and performance of Special Economic Zones (SEZs) across the country. The Department revealed that there are just 9 SEZs currently operational across the country.
BOSA has long held that there are nowhere near enough SEZs in South Africa. And our unemployment rate, poverty levels and investment figures illustrate this. The current 9 SEZs have had little impact on unemployment over the past decade. There are now 11.57 million jobless South Africans, at least 3 million more than 10 years ago.
Not only will more SEZs assist in the job market, they will provide a unique opportunity to undo one of the major legacies of apartheid that persists today: the spatial economic exclusion of the majority of South Africa’s population through the policy of separate and unequal development. This legacy is still visible in townships across the country, where economic opportunities remain limited, and poverty and unemployment are rife.
We believe that these very communities have the potential to become vibrant economic hubs, but this requires a fresh, bold approach to drive growth and development. Therefore, we call on the government to declare all townships as Special Economic Zones (SEZs) under the SEZ Act. We will approach the SEZ Advisory Board, requesting a feasibility study into this, with clear timelines.
By following this route, essential incentives like tax breaks, employment incentives, and streamlined regulatory processes will be offered. This will attract both public and private investment, directly supporting entrepreneurs and small businesses within townships.
In turn, new jobs will be created locally, enabling residents to work where they live, saving on transport costs, and allowing parents to spend more time with their families.
Special Economic Zones are proven tools globally for increasing exports, attracting investment, and driving economic growth. SEZs are defined as demarcated geographic areas within a country where the rules of business are different from those that prevail elsewhere. They offer a regulatory environment that encourages industrial development and economic activity.
According to the UNCTAD’s Handbook on Special Economic Zones in Africa, there are currently 237 SEZs in 38 African countries. Kenya leads with 61 SEZs, followed by Nigeria (38), Ethiopia (18), South Africa (11), and Egypt (10). South Africa is lagging behind our continental competitors, and we must act urgently to correct this.
The time for a radical expansion of SEZs, particularly into our townships, is now. The government must take decisive steps to address the economic exclusion of millions and unlock the untapped potential of our communities. By doing so, we can create jobs, empower citizens, and uplift communities.
Issued by Nobuntu Hlazo-Webster, BOSA Deputy Leader, 15 October 2024
