BITC advances SEZs formation
Isaac Pinielo | Wednesday May 18, 2016 15:40
At an open session of the Botswana Exporters and Manufacturers Association (BEMA) annual general meeting last week in Gaborone, BITC chief executive, Letsebe Sejoe stated that the SEZ programme is highly complicated.
“We are in the process of signing a contract with an international expert who will provide technical support to ensure the successful implementation of the highly complex SEZ programme,” he said.
Sejoe noted that BITC seeks to institutionalise the Special Economic Zones Authority (SEZA) by establishing a corporate entity, as well as the development of a strategy, governance structures, policies and procedures. There will also be board appointments along with associated administration functions, and the appointment of a yet to be identified chief executive officer. He said the other steps include development of SEZ regulatory framework that will be harmonised with the existing laws, both national and international that govern trade and Foreign Direct Investment (FDI) attraction.
According to Sejoe, for SEZs to work global competitiveness would be paramount, adding that Botswana’s bureaucratic business environment is a major challenge for business.
“Political and government commitment to SEZs should be resolute and SEZA should be granted powers over immigration,” he said.
He said SEZ incentives must be a combination of balance streamlined, efficient processes and fiscal or financial incentives.
BITC also seeks to establish a functional one-stop shop empowered to deliver service standards to reduce numerous delays.
Sejoe pointed out that statutory approvals processes must be predictable, adding that SEZA must implement a robust public-private partnership (PPP) model. BITC will also create a special SEZ dispensation for tourism and create efficient customs procedures including a single window for SEZ sites. However, the chief executive stated that there are challenges that include the long process of the Environmental Impact Assessment (EIA), which takes up to 12 months.
He called for the fast-tracking of the EIA Act review, adding that the timeframe for SEZ projects under non-prescribed statutory provisions should also be reduced. Sejoe also said there should be a dedicated officer appointed to handle SEZ EIA applications as an interim measure before the establishment of the SEZ one-stop business centre.
“Another challenge is the approval of SEZ incentives, which can be addressed by fast-tracking. Approval of SEZ rules and regulations also need to be fast-tracked,” he said.
The absence of a PPP office to facilitate a SEZ PPP framework for infrastructure provision was also identified as a challenge.
In implementation of the programme, BITC intends to avoid risks associated with SEZs failures such as poor site locations and uninformed identification of SEZ sites.
The location of SEZs would target areas that provide comparative advantages for attracting investment. At least eight regions have already been identified as potentially viable for SEZs. These include Sir Seretse Khama International Airport and Fairgrounds in Gaborone, as well as Lobatse, Selebi- Phikwe, Pandamatenga, Palapye, Francistown and Tuli Block.
Sejoe noted that the primary aim of SEZs incentives will be to overcome barriers to trade, investment and the attraction of FDI.
He said the zones will address issues of restrictive policies, excessive bureaucracy and limited access to serviced land, as well as creating a more competitive or conducive business environment for the attraction of investors.
“The more business-friendly the surrounding environment, the more such zones can stimulate broad economic activity,” Sejoe said.
He added that the economic zones would also increase and diversify exports, and increase foreign earnings, and create substantial employment.