Transcript Special Economic Zones_Instrument for Regional Economic

SPECIAL ECONOMIC ZONE: AN INSTRUMENT
FOR REGIONAL INDUSTRIAL DEVELOPMENT
Background:
•
The majority of economically successful countries have used
industrialisation as a preferred route to prosperity;
•
S.A.’s industrial development agenda is informed by a realisation
that industrial development offers the most sustainable route
towards economic prosperity and success;
•
S.A.’s industrial development agenda is getting much more clearer
as articulated mainly in the IPAP, NGP and NDP;
•
Implementation of the country’s industrial development agenda
requires adaptable, effective and efficient instruments;
•
SEZ is one of the key instruments for implementing industrial policy.
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Key Policy Statement:
•
Support and promotion of industrial decentralisation:
– Risk for further marginalisation of under-developed regions in
our current industrial development efforts
•
Greater focus on functional regions rather than administrative
regions
– Planning and management complexities
•
Promote smart specialisation strategies: on-going adaptation
•
Strategic partnerships
•
Long-term planning
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SEZ Definition:
Special Economic Zones are Geographic
areas of a country or region designated for
targeted (strategic) economic activities,
which are supported through special
measures.
WHY SEZ :
Rationale
• Develop key industries and
value
chains
through
creation of new Industrial
hubs and clusters
• Accelerate the pace of
industrial
and
cluster
development
• Create an industrial ecosystem
Desired Outcomes
•
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
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Increased:
Investments: FDI & DDI
Value-added exports
Job creation
Technology development &
Transfer
Quality of life
S.A. Approach
• Like economic policy, there is no dogmatic method or
approach to SEZ development;
• New approach:
 Greater focus on desired industrial capabilities through
value chains and cluster development;
 Long-term financing
incentive package;
mechanism
and
competitive
 Greater focus on host regions and not just the fenced
area;
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S.A. Approach Continued…
 Long-term planning that is also comprehensive and coordinated
across and within the various spheres of government and key
agencies;
 Broad design to cater for diverse regional needs and contexts (a
shift away from focusing on coastal regions);
 A comprehensive support system that goes beyond the provision
of world-class infrastructure and investment/industrial promotion.
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S.A. Approach Continued…
• What informs this approach?
 Experience with the IDZ Programme
o Provision of world-class infrastructure and investment
promotion;
o Focus on coastal regions in order to promote valueadded exports;
o Short-term planning
o No long-term financing mechanism and incentive
 Experiences of other countries
o Successful ones
o Unsuccessful ones
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Required Support Systems
Finance & Incentives
Productivity
Improvement
Investment
Facilitation: One Stop
Shop
Marketing: Export
Promotion and
Development
Industrial Infrastructure
Cluster/Industrial
Eco-System
Human Settlements
Human Capital/Skills
Development
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Logistics
Incubation & SMME
Support
R&D and Innovation
Progress with Development of the
Support System
Finance & Incentives
Productivity
Improvement
Investment
Facilitation: One Stop
Shop
Marketing: Export
Promotion and
Development
Industrial Infrastructure
Cluster/Industrial
Eco-System
Human Settlements
Human Capital/Skills
Development
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Logistics
Incubation & SMME
Support
R&D and Innovation
Challenges in SA :
a) Complex nature of SEZ makes governments and agencies to lose
early focus due to the following factors:
• Administrative requirements
• Easy to do rather than what is strategic to do
b) Poor coordination across and within the spheres of government
• Frequent change in Political leadership
• Duplication of efforts
c) Identification of opportunity
• long-term opportunities
d) SEZ is still primarily viewed as a infrastructure development
programme
Proposed SEZs:
Province
Region
Focus
Eastern Cape
Mthata
Agro-processing
Free State
Harrismith
Agro-processing,
logistics hub
Gauteng
JHB
ICT Hub
KZN
KSIA
Agro-processing,
Aviation, Electronics
Limpopo
Tubatse/Steelpoort
Valley
PGMs
Musina
Agro-processing,
mineral processing,
Chemicals, trade hub
Mpumalanga
Nkomati
Agro-processing,
trade and logistic hub
Northern Cape
Upington
Solar Corridor
North West
Rustenburg
PGMs
Geographic Spread
Way-forward:
• Key regions
 Identification
• Proposed Zones
 Identification and verification of opportunity
 Development of strategies and tactics to exploit
identified opportunity
• Policy
 Continuous improvements and adaptation of policy and
instruments;
 Coordination, joint planning and implementation
Way-forward:
• Support measures
 Continuous improvements and adaptation
• Capacity development
- Institutions
- Skills
Thank You!
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