This morning, the OR Tambo SEZ hosted a breakfast session titled “Closing the Value-for-Money Gap through Spatial Transformation” for South African special economic zones.
This session sought to uncover concrete solutions that SEZs could use to bridge the feedback loop gap, which have hampered and threatened their successful implementation.
Some high-level impediments faced by the SEZs included:
- The promotion of incentives that were not within their jurisdiction.
- Bearing the costs of basic services such as electricity, backup power solutions and water to service investors, while still paying municipal rates.
- Conflicting interests and competition for the same investors among SEZs.
- Investment unattractiveness in securing multinational investors and losing investors to countries such as Egypt, Morocco, and Rwanda.
- The current status quo of SEZs being over-reliant on the fiscus.
The SEZ report revealed that only a minority of the SEZs in the country have actually successfully claimed corporate tax benefits. This discrepancy highlights the need for a more streamlined approach to accessing incentives, ensuring that all SEZs can effectively leverage these financial benefits.
By addressing the complexities and barriers in the regulatory framework, the government can enhance the attractiveness of SEZs to both domestic and international investors. Simplifying the process for claiming tax benefits will not only bolster investor confidence but also accelerate industrial growth within these zones.
The discussions centred on the draft Spatial Industrial Development Strategy, providing a blueprint for how enhanced governance, spatial integration, and targeted infrastructure investments could bridge the value-for-money gap. The consensus was that the goal is to transform SEZs into vibrant, investor-ready platforms that not only attract global investment but also drive inclusive industrialisation and sustainable regional development.
By aligning with the Gauteng Investment Conference‘s broader agenda, this session on SEZs underscored the conference’s commitment to fostering economic growth through strategic partnerships and innovative solutions. As industry leaders, policymakers, and investors converge at GIC 2026, the insights gleaned from this session will be instrumental in shaping the future of Gauteng’s economic landscape.
