Trade Zones: Recommendations for South Africa

This research paper examines the role of Industrial Development Zones (IDZs) and special trade zones in attracting investment and stimulating exports, comparing South Africa's approach with that of major global trading partners and providing recommendations for further incentives to attract foreign direct investment.

• Industrial Development Zones (IDZs) are used to create industrial complexes with strategic economic advantages, enabling the exploitation of existing industrial capacity and resource-intensive industries while generating employment. The South African government provides investors in these zones with incentives including value added tax (VAT) and customs duty benefits.
• Major trading partners of South Africa utilize special trade zones to attract investment, create jobs, and stimulate exports. Specific examples include the US with 277 foreign trade zones, India which established its first export processing zone in 1965 followed by 129 more, and Mercosur countries which harmonised free trade zone legislation in 1987. China employs various categories including enterprise zones, special economic zones, and industrial or commercial free zones.
• Beyond VAT and customs duties, most trade zones provide additional benefits such as no exchange control, appropriately skilled labour, national and local tax relief, and inverted tariffs, where duties are assessed on the manufactured product rather than imported inputs.

APA

South African Institute of International Affairs (2011). Trade Zones: Recommendations for South Africa. https://saiia.org.za/research/trade-zones-recommendations-for-south-africa/

Chicago

South African Institute of International Affairs. Trade Zones: Recommendations for South Africa. 2011. https://saiia.org.za/research/trade-zones-recommendations-for-south-africa/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Trade Zones: Recommendations for South Africa |date=1 September 2011 |url=https://saiia.org.za/research/trade-zones-recommendations-for-south-africa/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2011trade, author = {{South African Institute of International Affairs}}, title = {{Trade Zones: Recommendations for South Africa}}, institution = {South African Institute of International Affairs}, year = {2011}, month = sep, url = {https://saiia.org.za/research/trade-zones-recommendations-for-south-africa/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }