1. SPECIAL ECONOMIC ZONES: Their Design on Enhancing Localisation of Fuel Cells Manufacturing Capability Alfred Tau

2. Background 2 Industrial development is an important focus of the government Requires effective, efficient and adaptable instruments Industrial Development Agenda One of many instruments of our industrial development policy Not the goal but a means to an end Special Economic Zones 2 platinum hubs among 10 proposed SEZs One of many possible value chains arising out of platinum Fuel Cells

3. SEZs: What and Why? Geographic area designated for targeted economic activities which are supported through special measures not available elsewhere Definition Develop key industries and value chains, and build industrial hubs and clusters Key regions/Host regions become magnets for targeted investments Accelerate the pace of industrial and cluster development Policy intention

4. New Policy Approach Value chains: Greater focus on desired industrial capabilities Regions: Greater focus on host regions and not just fenced area Planning: Long-term, coordinated and comprehensive Design: Broad to cater for diverse regional needs and contexts Support system: More than just world-class infrastructure Finance: Long-term and supported by a competitive incentive package New Policy Approach

5. SEZ Incentive: Selected Corporate Tax Rate: 15% Building Allowance Employment incentive Custom Controlled Area 12i Tax Allowance Tax Incentives Reduce information search and transaction costs Facilitate permits and licences for investors Eliminate some steps in approval process After care One Stop Shop Facility

7. Fuel CellsJewellery Chemical Processing Dental and Medical Devices GlassMining Inputs Investment Coins Auto Catalysts Petroleum Refining Platinum Selected Potential Clusters

8. Fuel Cells and SEZ Planning  Opportunity: What is the nature of the opportunity for SA?  Which value chains  Strategy and tactics: What is the most effective way to enter chosen value chains?  Policy  Critical support measures  Regions: Can SA afford 2 Platinum Hubs now?  Which value chain in what region

9. Challenges for SEZ Programme  Very easy to forget the core focus and drift into administrative requirements  Incentives: what is our exit strategy  Capacity constraints  Coordination: Joint planning and implementation across and within spheres of government and agencies

10. Thank You! 10