Page 8 - Issue 22

8 Cover Story

existed almost as long as government zones (SEZs) as a critical lever to diamond beneficiation, aerospace,
itself. For example, the antecedents of support industrialization and economic aviation and cargo among, inter alia.
modern SEZ date from 166 BCE when transformation. Mr. Ramaphoi also The Fairgrounds area, still in the capital
Roman authorities granted the port agreed with the national vision that Gaborone has been earmarked for
of Delos, an island near Greece, free there is a need to transform the country Financial Services with Lobatse – which
port (Bell, 2017) – exempting traders from being a resource-based to a houses the head office as well as one
from the usual taxes to stimulate knowledge-based economy in order to of the abattoirs of the Botswana Meat
local commerce. Early types of SEZs create sustainability beyond the mining Commission, will target the beef,
next appeared among many various phase for future generations. leather and biogas industries. The
European colonial outposts, formed greater Palapye will focus on integrated
as quasi-sovereign sub-governments- He spoke sternly on mineral coal value addition while ghostly
granted unique trading privileges e.g. beneficiation which has been identified Selebi-Phikwe will specialize in mineral
Macau - 1557) and Hong Kong - 1842. as a key component of the potential role beneficiation. On the other end, Tuli
for SEZs to drive this transformation. In Block will target horticulture and other
United states launched Free Trade light of the current challenges of the agribusinesses while Francistown is
Zones (FTZ) in 1934 with special local investment climate, the Special earmarked for mining supplies, services
privileges being exemptions on federal Economic Zones (SEZs) bring a new and logistics hub. Pandamatenga area
exercise taxes & duties, and boosted competitive offering for investors in will specialize in integrated farming,
them again in 1948, when Operation terms of mineral beneficiation. He agro-business and food processing.
Bootstrap made Puerto Rico a FTZ elaborated that Botswana is the source
for U.S. companies. China has proved of the world’s most high quality and SEZA will focus its immediate efforts
especially prolific, going from zero highly valuable diamond gemstones but on the development of 4 priority zones
special jurisdictions in 1980 to at least diamonds are mostly beneficiated and namely: SSKIA – Sir Seretse Khama
295 today. He said success of Shenzhen processed in foreign countries especially International Airport, Fairgrounds,
city was demonstration that set stage Belgium, UK, Russia, Israel, Dubai and Lobatse and Pandamatenga. Each of
for radical reforms across China. India The country is best placed to build these zones is currently moving from
an international trading center and to high level feasibility to extensive master
SEZA has adopted a contemporary cut & polish diamonds so that a viable planning and detailed design. On this
vision with lessons drawn from proven amount of diamonds stay in the country note, Mr. Ramaphoi explained that
international experiences in developing and producers can have ROI in order to the different economic zones are not
a successful SEZ programme. One support beneficiation. fragmented development initiatives but
might wonder however what makes they complement each other.
these zones ‘special’. The ‘Special’ draw SEZA has targeted eight zones, Sir
of SEZs is found in the 2011 SEZ policy- Seretse Khama International Airport, He concluded his presentation by
based elements. These zones overcome Fairgrounds, Pandamatenga, Palapye, saying, “SEZs are a gentle revolution
serviced land infrastructure constraints Lobatse, Tuli Block, Francistown and that will bring comparative wealth and
that hinder investment in the national Selebi Phikwe which are expected to better living to citizens of Botswana
economy for example by providing boost economic diversification and and investors operating within the
investors with long-term leases, prebuilt bolster Botswana’s exports. Special Economic Zones deserve special
factory shells, and reliable utilities The SSKI area will mainly focus on treatment.”
(electricity, water, telecoms, etc.). specialized & light manufacturing,
They also offer investors and users a
comprehensive and simple environment
to do business thereby minimizing red
tape in procedures required to register
a business, acquire licenses, visa, work SEZs are a gentle revolution
permits, and access to other key services
which will be provided through a single that will bring comparative
window or one stop services. SEZA
therefore is that single point of contact
to arrange for delivery of investment wealth and better living to
solutions to potential investors.

Botswana has prioritized the citizens of Botswana
development of special economic

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