Strategies for Improving the Implementation of Special Economic Zoning Programmes in South Africa

Abstract

The misconception has always been that the successful implementation of special economic zones (SEZs) is only predicted by the promulgation of relevant laws and policies prescribing a package of benefits which the willing and capable investment firms in the zones are to enjoy. However, when an analysis of the successes of SEZs in countries such as Korea, China, India, Mauritius, Brazil and Poland is compared and contrasted with an overview of the trends leading to the failure of the four industrial development zones established by the South African government at Coega, East London, Richards Bay and OR Tambo International Airport, it can be concluded that the successful SEZs’ implementation exceeds the mere promulgation of relevant laws and policies. Instead, the practices in the countries of SEZs’ success stories indicate that in addition to the relevant regulatory and policy framework, SEZs’ successful implementation is also influenced by national competitiveness, linkages with the wider local economy through partnership with the local business enterprises and community, the establishment of the relevant governance and management body, constant marketing and promotion, constant investment in infrastructure and resources’ availability. While drawing from these practices, this study posits in its underpinning assumption that considering the conceptual limitations marring the successful SEZs’ implementation in South Africa, the use of the strategic framework in Figure 1 that prescribe for the key strategies that include the outline of the SEZs’ strategic objectives and goals, considering the SEZs’ core strategic determinants, the use of SEZs’ measuring techniques and the application of the appropriate improvement measures would provide the appropriate alternative conceptual framework which can be used for improving the implementation of SEZs in South Africa. In a bid to determine the veracity, validity and reliability of this strategic framework, this paper evaluated different concepts and documents on SEZs’ implementation in countries of SEZs’ success stories and interviewed 50 participants comprising of the managers in the South African Department of Trade and Industry, and the managers of the investment firms in the four industrial zones that encompass Coega, East London, Richards Bay and OR Tambo International Airport. In conjunction to the use of the measures for credibility, dependability and transferability, content and thematic analysis of the different government documents and interview findings produced a framework which is similar and compatible to the strategic framework presented in the underpinning assumption of this research in Figure 1. Based on these findings, it was recommended that the South African Department of Trade and Industry must adopt the strategic framework in Figure 1 as the measure for improving the implementation of the economic zoning programmes in South Africa.

Keywords: Special Economic Zones; SADTI; Investments; Framework; Implementation