SA group to learn from Chinese model

MEMBERS of the Special Economic Zones Advisory Board have arrived in Beijing, Peoples Republic of China, for a week-long study tour. The main aim of the study tour is to learn from the Chinese experience in the planning, development and management of Special Economic Zones (SEZs).

The group will gain insight into the implementation and impact of the SEZ model in China. This will include lessons on infrastructure, funding, policy, sustainability, strategy investment promotion strategies and SEZ management structures in all three spheres of government.

According to the Deputy Minister of Trade and Industry, Bulelani Magwanishe, the study tour is one of the capacity-building programmes designed for the board, with the aim of equipping the members with diverse and complex approaches to SEZ planning and development. The tour is expected to assist in building capacity to develop proper strategies and policies for SEZs in South Africa.

“One of the strategic initiatives that the government has earmarked for accelerating the country’s industrial development agenda is the SEZ Programme. The premise is that SEZs can provide the country with the necessary impetus for promoting industrial development, building the required industrial infrastructure, promoting co-ordinated planning among key government agencies and the private sector, and using the zones to guide the deployment of other necessary development tools,” says Magwanishe.

China’s SEZ model is the most appropriate for South Africa to learn from as the country has gone through radical economic development, and has had to deal with similar development challenges,” says Magwanishe.

“China is the second-biggest economy in the world, and South Africa’s biggest trading partner. China’s market remains a key strategic priority for South Africa’s raw material and value-added products. Moreover, China has about 141 zones, with an annual industrial output of over 1.2 trillion yuan. China is the most successful country in terms of planning, development and management of SEZs,” stresses Magwanishe.

The 15-member SEZ Advisory Board is an independent body established by the Minister of Trade and Industry, Dr Rob Davies, through the Special Economic Zones Act to advise him on the policy and strategy for SEZs, as well as on applications for designation.