Page 11 - issue 26

In The News 11

Investment, promote exports declaration on recommendation of •Description of proposed activities;
& industrialization; (2) serve as the Authority.Development of SEZ can •Proof that project constitutes
“pressure valves” to alleviate large be done in 3 ways. It can be SEZA own an investment compatible with
scale unemployment, (3) support initiative, a Public-Private Partnership approved detailed master plan of SEZ
wider pilot reforms, (4) act as arrangement or an Independent •A business plan covering class or
experimental laboratories. They Developer. kind of goods; raw materials to be
also create jobs and facilitate for used; target markets with percentage
technology transfer. The developer has responsibility once breakdown
they have been approved by the •A financial plan showing sufficient
Special Economic Zones Regulations local Authority. This Includes but capitalization and access to adequate
Act was signed by the Minister and are not limited to Iimplementing SEZ debt financing
published on 21st June 2019 for development plans in accordance •Where the applicant wishes to
immediate implementation. These with approved master plans and apply for Incentives, a statement
regulations cover establishment, Development Agreement; Develop in establishing that 100% of the
development and management of commercial manner; in accordance applicant's annual production or sales
SEZs in line with the SEZ Act and with Act and consistent with long-term except in the case of derogation, will
make provision for licensing and rules sustainable economic development be exported
governing the zones. goals of the Authority; Adhere to •Time schedule for design,
performance requirements of phased construction and activation of
SEZs can be Established on public development schedule of the SEZ ;Pay applicant facilities
or private land. A proposal can be fees and taxes due to the Authority or •Number of employees and skill
initiated by authority or outside other authority; Maintain company levels to be employed
party. These proposals also undergo books, records, accounts and financial •Environmental impact assessment
different phases/offices before being statements ;Obtain prior approval where applicable
authorized. of the Authority when transferring •Any other information as required
occupancy rights with respect to land by the Authority
Authority- Submits proposal to the and other assets and also comply with
Local Authority for review to be all other obligations. There are investment rules that
decided upon within 60 days and investors in SEZ should adhere
receives and assesses proposal from Investors in SEZs to and uphold. These includes
outside party before recommending Notification to Authority in the
to Local Authority. The following business activities and event of changes to information,
services may be located in an SEZ discrepancies noticed, maintenance
Outside Party -Submits proposal (eligible for Incentives): Agro business of records and accounts.Rules also
to Authority for preliminary review activities, Manufacturing activities, address national treatment accorded
to be decided upon within 14 days. Warehousing, distribution or logistics to foreign entities in the SEZ equal
In addition to proposal submits services and Internationally traded to that accorded to nationals (no
application for developer license services. domestic ownership requirements or
and/or zone management licence as minimum capital requirements when
required. Any person wishing to carry on reinvesting profits).Prohibition of sale
business in an SEZ shall apply to the of land without Authority’s consent.
Local Authority -Reviews proposals Authority for an investor license. Interestingly Acquisition of Land and
submitted by the Authority within Commencement of construction of
60 days of submission. It undertakes There are main investors and those real estate in SEZ within 60 days after
consultation with affected persons providing support services to main issue of licence and start construction
where necessary. The local Authority investors.Those providing support in and business activities no later than
then Approves or rejects proposals the form of restaurants, grocery stores 24 months after licence is issued.
and informs the Authority of decision etc. will not qualify for incentives,
or recommends modifications but will apply for license to operate SEZA is also a one stop shop for all
businesses in the zone. these SEZ requirements and have
Minister - Declares SEZ in accordance made it easy for foereign investors
with Section 29 of the Act following to apply for everything under one
approval of proposal by Local Application to be an investor includes: roof including permits and company
Authority.He/She may revoke registration.

www.engineermagazine.co.bw Issue 26 Feb-Mar 2020