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Definition

Special Economic Zones (SEZ) grew out of the Industrial Development Zones (IDZ) which existed previously. There are five SEZ's in South Africa. They are Coega, Richards Bay, East London, Saldanha Bay and Dube Tradeport. On 25th October 2021 Aspen requested that the government consider making its Gqeberha site an SEZ for the production of vaccines and other sterile processes. Businesses which establish in these SEZ's are given a special tax rate of 15% (as opposed to the normal 27%) and other tax incentives such as capital allowances on buildings and machinery. The idea is to attract both local and overseas investment so as to stimulate growth and employment in the areas surrounding the SEZ. In general, SEZ's have been a successful intervention with strong support from both local and foreign investors.

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