World Economy

South Africa Wooing Chinese Investment in SEZs

South Africa has eight designated SEZs located in six of the country’s provinces.South Africa has eight designated SEZs located in six of the country’s provinces.

South Africa’s Ministry of Trade and Industry will this week hold investment shows in China to woo investors for the country’s special economic zones.

The delegation led by the country’s Deputy Minister of Trade and Industry Bulelani Magwanishe will hold a road show in Shanghai on May 26-31. They will hold workshops where the South Africans will present opportunities in the SEZs and incentives, Xinhua reported.

“The road show seeks to attract potential investors in different sectors to invest in our SEZs. The targeted audience will include investors, Chinese finance institutions and government representatives,” said Magwanishe.

The South African delegation will also conduct a benchmarking exercise for the country’s SEZ by visiting thriving SEZs in Shanghai for knowledge sharing.

Magwanishe said the road show is meant to bring together high-level local and international investors to entice their appetite to invest in the country. He said: “In order to have vibrant SEZs and competitive regional economies, it is necessary to continuously implement a systematic marketing and investment approach for various SEZs in South Africa,” said Magwanishe.

Magwanishe said the South African government wants to use the SEZs to industrialize the country. He added, “SEZs are used to stimulate foreign and domestic investment, increase production output leading to increased exports of value-added manufacturing goods and employment creation, amongst others.”

South Africa has eight designated SEZs located in six of the country’s provinces.

Meanwhile, Moody’s Investors Service kept its assessment of South Africa’s debt at investment grade in March and changed its outlook to stable from negative. It’s the first time in more than six years that the nation doesn’t have a negative outlook with any of the three major ratings companies, suggesting that the credit assessments could stay unchanged for a while, Bloomberg reported.

S&P Global Ratings will be announcing its latest assessment of South Africa’s debt this week.

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