Abstract
Special Economic Zones (SEZs) are crucial in promoting targeted economic activities within a country. Governments establish SEZs in partnership with the private sector and offer a range of exclusive incentives and support measures that are not available elsewhere in an economy. The South African Government has attempted various action plans intending to transform the economy into a competitive industrial powerhouse in Africa that unlocks opportunities for industrialists. To achieve this goal, the government uses the SEZ policy as a vital tool for driving the country’s industrial development agenda. This dissertation looked at how the SEZ policy has been implemented and assessed the success of the established zones in the country, through employment creation, poverty alleviation and economic development since the early adoption of this policy instrument in 2000.
The research adopted a purely qualitative approach. The study was conducted using non-empirical research methods such as literature review, content analysis, and document analysis. It was found that the South African government has identified the SEZ program as a solution to the failed Industrial Development Zone (IDZ) program. A proper blueprint design for the SEZs does not exist which has made it difficult for this programme to be implemented successfully. Moreover, the same challenges that were experienced with the IDZ programme are also evident in the SEZ programme.
It is recommended that the government revisit the goals that were initially set for the SEZs and the supporting policies to ensure that corrective measures are taken to prevent the SEZ programme from becoming yet another failed government project. Moreover, the government should aim at promoting sustainable growth within SEZs as it encourages investment in productive capacity and coordination amongst all stakeholders. A comprehensive monitoring and evaluation system is also recommended, along with learning from international SEZs on what mistakes to avoid and how to enhance SEZ regulations. This study provides detailed information on all the SEZs in operation in SA.
KEYWORDS
Economic development; foreign direct investment; public policy; qualitative research; South Africa; Special Economic Zones