The deputy president of Build One South Africa (Bosa) and MP, Nobuntu Hlazo-Webster, is calling for the mass establishment of Special Economic Zones (SEZs) across South African townships.
This is after the Department of Trade, Industry and Competition revealed there are just nine SEZs currently operating across the country.
Expanding SEZs will boost the country’s township economy nationwide by stifling the staggering unemployment rate by mass job creation.
“The current nine SEZs have had little impact on unemployment over the past decade. There are now 11.57 million jobless South Africans, at least 3m more than 10 years ago,” said Hlazo-Webster.
Hlazo-Webster noted that SEZs will make economic strides for local establishments, enabling townships to be among the leading economic hubs in the country.
In addition, SEZs will provide a unique opportunity to undo one of apartheid’s legacies of spatial economic exclusion of the majority population through the policy of separate and unequal development.
“This legacy is still visible in townships across the country, where economic opportunities remain limited, and poverty and unemployment are rife. We believe that these very communities have the potential to become vibrant economic hubs, but this requires a fresh, bold approach to drive growth and development.
“Therefore, we call on the government to declare all townships as Special Economic Zones under the SEZ Act. We will approach the SEZ advisory board, requesting a feasibility study into this, with clear timelines,” said Hlazo-Webster.
Citing the UN Conference on Trade and Development’s (UNCTAD) handbook on Special Economic Zones in Africa, Hlazo-Webster highlighted that the country is lagging behind its continental competitors with SEZs.
“There are currently 237 SEZs in 38 African countries. Kenya leads with 61 SEZs, followed by Nigeria with 38, Ethiopia has 18, South Africa (11), and Egypt (10). South Africa is lagging behind our continental competitors–we must act urgently to correct this,” she said.
With SEZs being operative nationwide, locals will cut costs, as they will spend less money on transport, while enabling workers to spend more time with their families.
“By following this route, essential incentives like tax breaks, employment incentives, and streamlined regulatory processes will be offered. This will attract both public and private investment, directly supporting entrepreneurs and small businesses within townships.
“The time for a radical expansion of SEZs, particularly into our townships, is now. The government must take decisive steps to address the economic exclusion of millions and unlock the untapped potential of our communities. By doing so, we can create jobs, empower citizens, and uplift communities,” said Hlazo-Webster.
The Star
hope.mafu@inl.co.za