BY SAMIE WAIKORI
The Special Economic Zone (SEZ) Act 2024, recently passed by parliament will play a crucial role in ensuring the country achieves the objectives of the National Development Strategy (NDS) 2016-2035.
Minister for National Planning and Development Coordination, Rex Ramofafia made the statement when he spoke during the debate of the SEZ Bill in parliament last week.
He emphasized the need for strategic intervention to accomplish the NDS and to enhance the country’s economy.
Ramofafia stated that the “country’s mid-term review of NDS 2016 – 2035, revealed that we are off track of our key economic targets. For example, we should grow our economy by 5% by 2025 or 7% by 2030.
The MP said objectives of the NDS calls for sustained and inclusive growth through diversification.
Ramofafia mentioned that to ignite economic growth, we also need bold intervention and the SEZ act is one of such interventions.
He voiced that the act will boost exports by focussing on areas that can help grow the economy like; agriculture, fisheries, tourism and other areas that hold potential.
Meanwhile Ramofafia stressed that it is also vital for the country to put in place key enabling infrastructures to accommodate SEZ activities.
He said the country can achieve success by learning from countries that have been operating SEZs or initiatives similar to SEZs.
“We see our neighbouring countries like Fiji that used tax-free zones on areas of manufacturing, ICT services and other sectors in their countries,” he said.
Moreover, the MP highlighted the country’s pursuit to graduate from it’s Least Developed Country (LDC) status, set for 2027.
“This transition brings challenge particularly in areas of trade competition and the transition strategy identified SEZ as key to that.
“This will help by strengthening our productive capacity, streamlined processing, especially on potential areas like agriculture and fishery,” he said.
Ramofafia noted that the SEZ act will support the country to diversify especially by growing its exports. Currently, the country’s balance of trade shows more import than export.
The minister said the SEZ act is a milestone for the country and one to help realise development potentials to grow our economy.
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