RESEARCH ARTICLE Evaluating South Africa’s Special Economic Zones Mmiselo Freedom Qumba * University of Pretoria, Pretoria, South Africa E-mail: mmiselo.qumba@up.ac.za (Accepted 26 August 2022) Abstract Special economic zones (SEZs) can be described as “carved out jurisdictions within the overall jurisdiction of a state in order to introduce different laws and regulationsthat are usually more trade and investment friendly”. South Africa’s SEZs are created under the Special Economic Zones Act 16 of 2014. This article analyses the country’s legal framework for SEZs, which legal scholars have thus far only examined from a purely economic perspective. It provides a brief historical overview of industrial development zones, examines the 2014 act and suggests some reforms within the SEZ legislative framework. A comparative analysis is provided by drawing some lessons from BRICS member countries that have a successful record in operationalizing SEZs. Keywords: special economic zones; industrial development zones; South Africa; one-stop shops; free trade zones; foreign direct investment Introduction South Africa’s unemployment crisis began long before COVID-19. 1 The country has millions of unskilled, inexperienced workers looking for work in a labour market that drives firms to minimize low-skilled employment and emphasize skill- and capital-intensive activities. These challenges have underscored the imperative for reconceptualizing the current programme for Special Economic Zones (SEZs). While the SEZ programme should not be considered a panacea for South Africa’s employment crisis, international evidence suggests that a well-designed legal and policy framework for SEZs has proven to be a remarkable tool for growth and job creation. 2 In the South African con- text, appropriately conceptualized SEZs could play a key role in creating the conditions needed for the emergence and growth of low-skilled and labour-intensive industries. Globally, the development of new SEZs has increased dramatically in the last two decades, from 900 zones in 1998 to 5,400 in 2018. 3 In Africa, the first SEZ was unveiled in Mauritius in 1970, followed by Ghana and Senegal towards the end of the decade. In 2020, it was reported that that almost 237 zones had been estab- lished in 38 of Africa’s 54 countries. 4 In 2012, the South African government adopted an SEZ policy * Lecturer, Mercantile Law Department, Faculty of Law, University of Pretoria; Attorney of the High Court of South Africa; PhD candidate, University of Pretoria. LLM (international trade and investment law in Africa) (University of Pretoria), LLB (Walter Sisulu University). 1 Even before COVID-19, South Africa’s unemployment rate in 2019 was 29.1%: “Unemployment rises slightly in third quarter of 2019” Stats SA (29 October 2019), available at <https://www.statssa.gov.za/?p=12689> (last accessed 27 April 2023). 2 Countries such as China and India (discussed further below) are prime examples of how an appropriate SEZ legal framework can provide a conducive legal environment for foreign direct investment. 3 World Investment Report (2019, UN Publications), chap IV “Special economic zones”, available at: <https://unctad.org/ system/files/official-document/WIR2019_CH4.pdf> (last accessed 5 March 2023). 4 Ibid. © The Author(s), 2023. Published by Cambridge University Press on behalf of SOAS University of London Journal of African Law (2023), 1–21 doi:10.1017/S0021855323000128 https://doi.org/10.1017/S0021855323000128 Published online by Cambridge University Press