Special Economic Zones Act, 2014 (Act No. 16 of 2014)RegulationsRegulations made in terms of section 41 of the Special Economic Zones Act, 2014 (Act No. 16 of 2014)Schedule ASchedule 1 : Feasibility in terms of section 23(3)(b) of the Act16. Feasibility study |
| (1) | A feasibility study contemplated in section 23(3)(b) of the Act must provide amongst other things: |
| (a) | A statement of intent and executive summary; |
| (b) | A general overview of the area where the Special Economic Zone is intended to be located, including information on and analysis of: |
| (i) | demographic profile of the population of the area; |
| (ii) | socio-economic profile of the area including the rate of unemployment, education, health and human development profile; |
| (iii) | economic profile of the area including an analysis of existing enterprises by size and sector within the municipal boundaries of the proposed Special Economic Zone; and |
| (iv) | availability of utilities at municipal and provincial level. |
| (c) | Economic rationale for the application for designation of a Special Economic Zone including information on and analysis of, amongst other things: |
| (i) | projected outputs and expected key outcomes of the Special Economic Zone; |
| (ii) | projected economic impact of the Special Economic Zone on the local, district, provincial and national economies; |
| (iii) | projected employment to be created during the various phases of the establishment of the Special Economic Zone, the sectors within which employment will be created and the nature of the employment which may be: |
| (aa) | permanent or temporary employment; or |
| (bb) | direct or indirect employment. |
| (iv) | industrial activity targeted by the Special Economic Zone and the sectors targeted; |
| (v) | additionality that the targeted industrial activities will create in the economy by demonstrating amongst other things: |
| (aa) | extent of export of value -added products; |
| (bb) | extent of import substitution; |
| (cc) | beneficiation of raw materials and mineral resources; |
| (dd) | skills training and transfer; |
| (ee) | innovation and intellectual property development including the scope for new markets and manufacturing or distribution innovations; |
| (ff) | alignment with existing initiatives on training, business development, retention and expansion and infrastructure upgrades; |
| (gg) | use of and impact on processing and manufacturing technologies. |
| (vi) | nature and maturity of manufacturing technology to be used by businesses intending to locate in the Special Economic Zone; |
| (vii) | localisation plan including: |
| (aa) | impact on supplier development and potential to develop a cluster of enterprises to achieve commercial viability; |
| (bb) | projected procurement including the use of local materials, technologies and labour. |
| (d) | Social impact of the proposed Special Economic Zone including information on and analysis of, amongst other things: |
| (i) | housing; |
| (ii) | education; |
| (iii) | health care; |
| (iv) | access to public transportation; |
| (v) | safety and security; |
| (vi) | availability of basic services. |
| (e) | Business plan for the Special Economic Zone, including information on and analysis of, amongst other things: |
| (i) | Special Economic Zone strategy; |
| (ii) | ownership structure of the Special Economic Zone including a shareholders' agreement indicating nature and extent of shareholding, requirements for transfer of shares and requirements for the distribution of assets upon liquidation or deregistration; |
| (iii) | comprehensive market analysis identifying the following in relation to the proposed Special Economic Zone: |
| (aa) | strengths, weaknesses, opportunities, threats; |
| (bb) | local and external clients; |
| (cc) | potential markets and competitors; |
| (dd) | future prospects; |
| (ee) | attractiveness to potential investors to locate in the Special Economic Zone; |
| (iv) | Special Economic Zone Operating Plan including information on and 5 analysis of, amongst other things: |
| (aa) | how the applicant will develop, operate and maintain the Special Economic Zone; and |
| (bb) | identifying suppliers that will provide services necessary to operate the Special Economic Zone and the contractual arrangements that will be entered into with these service providers; |
| (cc) | facility management arrangements; |
| (dd) | identifying engineering and development alignment gaps and priorities in infrastructure located outside the Special Economic Zone in relation to infrastructure to be located within the Special Economic Zone; |
| (ee) | providing plans for energy balancing, greenhouse gas abatement and clean energy generation including the use of wind and solar power; |
| (ff) | providing for green building design certification as required by the Green Building Council of South Africa; |
| (v) | Special Economic Zone Business Attraction and Retention Plan identifying the businesses that the applicant has attracted to locate within the Special Economic Zone including signed letters of intent from businesses to locate within the Special Economic Zone; |
| (vi) | Special Economic Zone Marketing Plan identifying, amongst other things, how the applicant will market the Special Economic Zone in order to attract businesses to locate in the Special Economic Zone and source Foreign Direct Investment to the Special Economic Zone; |
| (vii) | Special Economic Zone Financial Plan including information on and analysis of, amongst other things: |
| (aa) | projected total cost of the establishing the Special Economic Zone; |
| (bb) | sources of funding to establish the Special Economic Zone; |
| (cc) | projected 10-year income statement, balance sheet and cash flow statement for the Special Economic Zone; |
| (dd) | projected return indicators on capital; |
| (ee) | projected revenue and operational costs with breakeven projections for various with scenarios; |
| (ff) | access by the applicant to financial resources equal to at least 20% of the development cost of the proposed Special Economic Zone and supporting documents demonstrating access; |
| (gg) | access by the applicant to financial resources to fund operational expenditure of the Special Economic Zone for 5 years and supporting documents demonstrating access; |
| (hh) | indicate the extent to which the applicant owns or controls the area to be considered for designation as a Special Economic Zone. |
| (viii) | Special Economic Zone Physical Infrastructure Plan including information on and analysis of, amongst other things: |
| (aa) | physical master plan of the proposed Special Economic Zone, including its physical location, location and boundary of industries and services area, location and boundary of customs controlled area; |
| (bb) | geotechnical study; |
| (cc) | environmental impact assessment; |
| (dd) | availability of natural resources and services; |
| (ee) | availability and analysis of existing infrastructure to support Special Economic Zone development including access to land, and availability of municipal services, telecommunications services and utilities; |
| (ff) | infrastructure development and construction plan within the Special Economic Zone; |
| (gg) | project management methodology to monitor and control development of physical infrastructure within the Special Economic Zone; |
| (f) | Risk profile of the Special Economic Zone including the level of the risk and remedial action available to mitigate the risk, on amongst other things: |
| (i) | operational risks; |
| (ii) | financial risks; |
| (iii) | market, environmental and regulatory risks; |
| (iv) | utilities, quality, costs and continuity management risks; |
| (v) | governance and institutional risks. |