In November 2011, the South African Cabinet approved Special Missing Zones in South Africa’s Policy on Special Economic Zones to be published for public participation, and in January 2012, the Minister of Trade and Industry issued the Special Economic Zones Policy and Bill inviting interested parties to submit public comment within 60 days of its publication.

The new bill sets out the objectives and key provisions of the modified SEZ policy. As far as the objectives are concerned, these will be elaborated on later. The key provisions of the bill provide, inter alia, for the establishment of an SEZ Board composed of representatives of key government departments, state agencies and independent experts to advise the minister on policy, strategy and other matters. Additionally, there is provision for the establishment of a SEZ Fund to provide for sustainable long-term financing (with an ongoing adaptation of incentives in line with development needs) and a clause providing for increased diversity of SEZs to cater for different regional development needs and contexts.

Since the publication of the draft bill, there has been much comment on the advantages and disadvantages of the new SEZ policy and process in the country, of which the CDE Roundtable added an important dimension. Given the renewed emphasis in economic policy debates on industrial policy and regional integration in the wider Southern Africa context, this paper serves to add to the debate by introducing some hitherto neglected aspects pertinent to the debate on the SEZ policy in South Africa.

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