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Policies

Special Economic Zones (SEZ)

Last updated: 12 June 2024

South Africa established Special Economic Zones (SEZ) to develop new industrial hubs in the country, attract foreign direct investment (FDI), and diversify exports. SEZ are geographically designated area where industrial development incentives are provided in specific targeted economic sectors, including clean energy. 

SEZ companies benefit from import duty rebates and VAT exemption on imports of raw materials used for export-bound production. Customs administration processes are also streamlined. Tax incentives, such as a reduced corporate income tax rate, as well as employment tax incentives are also provided in SEZs.

Some SEZ focus on clean energy industries, notably:
-Atlantis Greentech, which seeks to support local renewable manufacturing industrial capacities
-Coega SEZ, East London SEZ (ELSEZ), and Musina-Makhado which seek to promote and attract investment and boost exports in the automotive and renewable energy sectors.

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