The role of special economic zones in spatial planning in South Africa

Abstract

After 1994, South Africa struggled to increase the levels of local and international direct investments necessary to fuel economic development (DTI, 2012:9). Furthermore, the economy had a limited variety of exports and was highly dependent on primary production. These constraints limited growth both nationally and across the globe. African nations are employing growth pole strategies to increase their competitiveness and accessibility to local and international markets while also strengthening economic links around the development of their natural resources (World Bank, 2013:1). A growth pole development strategy such as the development of a Special Economic Zone (SEZ) seeks to establish deep economic linkages around these resources to promote economic diversification, employment creation, and local procurement of manufacturing inputs (World Bank, 2013:3). SEZs are widely regarded as among the most effective tools for overcoming regional development barriers in regional policy (Godlewska, 2016:190). The South African Special Economic Zone Act, Act 16 of 2014, describes SEZs as a tool for economic development that provides incentives to attract specific domestic and international investments and technology in order to increase export and national economic growth. The role of South African SEZs in spatial planning is examined in this study. This study is underpinned by the assumption that poor execution and implementation of SEZs in South Africa, is the motive why SEZs have not been highly rewarding. Although South Africa adopted SEZs quickly, it's argued that the government didn't pay close attention to all the fundamental spatial planning aspects required to guarantee the success of SEZs. To validate this hypothesis, the study uses South Africa as a case study and also postulates international case studies of developing and developed countries, combining literature with the various institutional and regulatory frameworks that govern SEZs. The study concludes that South Africa is too ambitious when implementing and identifying SEZs. In terms of spatial planning, the SEZs of South Africa does not fail completely and there are quite a few that excel. Recommendations include changing the policy approach, development of appropriate infrastructure and focusing on locational advantages in regions.