Limpopo Business 2017-18 edition

Special Economic Zones
Investor-friendly measures are attracting investors to designated growth
zones in Limpopo.
Special Economic Zones are created in
terms of the Special Economic Zones Act
of 2014 (Act 16 of 2014). The act defines an
SEZ as “geographically designated areas of
the country that are set aside for specifically targeted
economic activities, and supported through special
arrangements and systems that are often different
from those that apply to the rest of the country”.
Lower corporate tax rates and duty-free imports
are among the advantages that accrue to investors.
Infrastructure at a Special Economic Zone (SEZ)
supports the specific industry and attracts foreign
investors with a strong focus on beneficiation of
local produce or materials. SEZs are designed to
attract investment, create jobs and boost exports.
Skills transfer is another stated aim behind the
SEZ programme.
The National Department of Trade and Industry
(dti) is the lead agent in the creation of Special
Economic Zones, which are part of the national
Industrial Policy Action Plan (IPAP).
Several incentives are available to investors in
SEZs. These include tax breaks from the South
African Revenue Service (SARS), subsidised interest
rates from the Industrial Development
Corporation (IDC), subsidies for employees
earning below a certain level and subsidies for
the training of the workforce, incentives and
grants from the dti, and incentives from national
electricity utility Eskom.
Other benefits might include a building allowance,
employment incentives and the fact that an
SEZ is a customs-controlled area. Within the dti’s
Manufacturing Competitiveness Enhancement
Programme, there is a Green Energy Efficiency
Fund, all of which are designed to make investment
in the zones more attractive, and to bolster
the country’s manufacturing sector.
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