24 Mar 2022

The rationale used to identify Special Economic Zones (SEZs) is provided under both the SEZ Policy of 2011 and SEZ Act No. 13 of 2015.

Answering a question in Parliament recently, investment, trade and industry minister, Mr Mmusi Kgafela said the rationale required that the location of Special Economic Zonestargeted areas that provided comparative advantages for attracting investment.

Mr Kgafela said it also required that priority be given to economic activities with the potential to promote productivity, competitiveness, economic growth, export promotion and employment creation.

Again, he said the rationale required that a portfolio of public private partnership and private sector led Special Economic Zones could be developed as dictated by the market.

Further, he said it was required that Special Economic Zones created business development opportunities for small, medium, and micro enterprise suppliers that would meet the expanding needs of Special Economic Zones enterprises.

Also, it required cluster business enterprises according to their trade, to achieve mutually beneficial inter-sectoral linkages and economies of agglomeration within Special Economic Zones and that the zones should be integrated into the domestic, regional and international markets.

Minister Kgafela also told Members of Parliament that the rationale was still relevant and not overtaken by events as it  met the demands and needs of potential investors.

“Therefore, the establishment of any future Special Economic Zones, inclusive of a potential one in Ghanzi, which may be public or public private partnership, or private sector led, would be guided by the same rationale.

Besides this, it is important to note that the Ghanzi area is already regarded as one of the Meat Sector Clusters under the Lobatse Special Economic Zone,” he said.

That, he explained, had been done with a view to achieving mutually beneficial inter-sectoral linkages in the meat sector and economies of agglomeration and integrating both the Ghanzi area and the Lobatse Special Economic Zone into the domestic, regional, and international markets.

MP for Ghanzi North, Mr John Thiite, had asked the minister to state the rationale used to identify Special Economic Zones.

Mr Thiite also wanted to establish if the rationale used to identify economically viable Special Economic Zones across the country had not been overtaken by events.

He further wanted to know if the ministry would consider gazetting Ghanzi a fully-fledged agro-industry Special Economic Zone. ENDS