Export Processing Options

Abstract

WITH WALVIS BAY NOW DEVELOPING into a growing and successful Export Processing Zone (EPZ), South Africa would do well to seriously consider enabling legislation to permit various planned regional EPZ projects. Failure to do so at national level will tempt South African industries to invest across their borders in neighbouring EPZ (and free trade zone) projects. Namibia’s EPZ, in just its first two years of operation, has already attracted more than 50 companies from around the world (representing R600 m of new projects), and is at present targeting South African exporters. Advantages for South African exporters wishing to relocate include wages that average only half and in some cases a third of those paid in South Africa for identical work; the absence of corporate income taxes, import and customs duties; as well as free trade access to both the European Union and South Africa. The main criterion for being granted EPZ status is that at least 70% of the company’s production should be export oriented.