Fund Name

Special Economic Zone (SEZ) Programme

Agency

the dtic

Type

Grants & Incentives

Sector

Infrastructure

Summary

The Special Economic Zone (SEZ) Programme, administered by the Department of Trade, Industry and Competition (the dtic), designates specific geographic areas for targeted economic activities. These zones are supported through special legislative arrangements, incentives, and world-class infrastructure that differ from regulations applicable in the rest of South Africa. The programme evolved from the earlier Industrial Development Zone (IDZ) framework, with the SEZ Act No. 16 of 2014 providing the legal foundation.

Businesses located within an SEZ may access a range of incentives including a preferential 15% Corporate Income Tax rate (compared to the standard 27%), a building allowance, the Employment Tax Incentive, and Customs Controlled Area benefits including VAT and customs duty relief. The 12I Tax Allowance is also available for qualifying greenfield and brownfield manufacturing investments within SEZs.

South Africa currently operates multiple SEZs and IDZs, including the Atlantis SEZ (green technology), Coega IDZ (Eastern Cape — multi-sector), Richards Bay IDZ (KwaZulu-Natal — minerals and beneficiation), East London IDZ (automotive and agro-processing), Saldanha Bay IDZ (oil, gas, and marine), Dube TradePort (KwaZulu-Natal — logistics and air cargo), Maluti-A-Phofung SEZ (Free State — logistics and agro-processing), OR Tambo SEZ (Gauteng — precious metals), Musina/Makhado SEZ (Limpopo — mineral beneficiation and agro-processing), Nkomazi SEZ (Mpumalanga), and the Tshwane Automotive SEZ (Gauteng — automotive).

The SEZ Fund provides multi-year capital grants specifically for bulk and related infrastructure within designated SEZs. It is designed to leverage private investment and achieve increased exports, greater localisation, mineral and agricultural beneficiation, and job creation. The fund is available to current IDZ operators, applicants in the process of setting up an SEZ, SEZ licensees, and other registered South African entities meeting the qualifying criteria.

Applicants to the SEZ Fund must demonstrate that infrastructure investment will leverage third-party investment and meet the strategic objectives of the SEZ programme. Applications and enquiries for the SEZ Fund are directed to SEZfund@thedti.gov.za, while general SEZ enquiries are directed to SEZEnquiries@thedti.gov.za.

 

Who this is for?

The SEZ Programme supports two categories of stakeholders:

  • Investors / Businesses operating within SEZs: Any qualifying business or operator located within a designated SEZ that can access tax incentives, customs benefits, and employment incentives
  • SEZ operators and developers (SEZ Fund applicants):
    • Current IDZ operators with a valid operator permit
    • Entities in the process of establishing an SEZ
    • SEZ licensees under the SEZ Act
    • Registered South African entities (Companies Act)
    • National, provincial, or municipal authorities applying for designation of a zone
    • Public Private Partnerships (PPPs)

 

What support/funding you can get

Tax incentives for businesses in SEZs:

  • Preferential 15% Corporate Income Tax rate
  • Building Allowance on qualifying buildings and improvements
  • Employment Tax Incentive for qualifying employees
  • Customs Controlled Area benefits (VAT and customs duty relief)
  • 12I Tax Allowance for qualifying greenfield and brownfield manufacturing investments

SEZ Fund (infrastructure grants for SEZ operators/developers):

  • Multi-year capital grants for bulk and related infrastructure within designated SEZs
  • Grants are assessed on a project-by-project basis through the Adjudication Committee
  • The fund supports infrastructure that leverages Foreign Direct Investment and private sector investment

 

What you can use it for?

SEZ Fund — eligible costs (for SEZ operators/developers):

  • Bulk infrastructure within the zone (water, electrical, roads, etc.)
  • Infrastructure linked to the zone’s development objectives
  • Operator performance improvement initiatives
  • Investor project feasibility and advisory support

SEZ Fund — costs NOT eligible:

  • Selected top structures
  • Customised factory buildings for investors
  • General infrastructure outside the zone
  • Social and recreational infrastructure
  • Residential buildings and office parks
  • Operational expenditure post-designation

 

Key requirements and conditions

For businesses operating in SEZs:

  • Must be a qualifying business or operator located within a designated SEZ
  • Must meet requirements of the SEZ Act and the relevant tax acts (Income Tax Act, Employment Tax Incentive Act, VAT Act, Customs Acts) for each incentive type

For SEZ Fund applicants:

  • Must be a current IDZ operator, entity setting up an SEZ, SEZ licensee, or registered South African entity
  • IDZ operators must have a valid operator permit and confirm a signed investor requiring infrastructure support
  • New SEZ applicants must provide a comprehensive business/concept proposal with clear socio-economic benefits
  • Applications assessed for alignment with the SEZ programme’s strategic intent and qualification criteria
  • Funding approved by the Adjudication Committee; Deputy Director General enters into a Funding Agreement

 

How the application works

For businesses seeking tax incentives within an SEZ:

  1. Establish or relocate your business within a designated SEZ
  2. Apply for the relevant tax incentives through SARS and National Treasury as per the applicable acts

For SEZ designation applications:

  1. National, provincial, or municipal authorities (or PPPs) submit applications for zone designation to the dtic
  2. Applications are processed against defined criteria and recommended by the SEZ Advisory Board to the Minister of the dtic

For SEZ Fund applications:

  1. Submit enquiry and application to SEZfund@thedti.gov.za
  2. Application is appraised by the dtic’s SEZ technical team
  3. Recommended to the Adjudication Committee for approval
  4. If approved, the Deputy Director General: IDAD enters into a Funding Agreement with the applicant
  5. Ongoing monitoring and impact analysis follows approval

 

What to prepare before you start

For SEZ Fund applications, prepare:

  • Comprehensive business or concept proposal outlining the SEZ project and clear socio-economic benefits
  • Evidence of valid IDZ operator permit or SEZ licence (as applicable)
  • Details of signed investor(s) requiring infrastructure support
  • Project-level investment appraisal demonstrating financial and non-financial returns
  • Details of leverage of third-party (FDI and private) investment
  • For new SEZ applications: submissions from national, provincial, or municipal authority or PPP

 

Am I a fit for this particular fund?

You are likely a fit if:

  • You operate or plan to establish a business within a designated South African SEZ or IDZ
  • You are an SEZ operator or IDZ operator seeking infrastructure funding from the SEZ Fund
  • You are a national, provincial, or municipal authority seeking designation of a new SEZ
  • Your project involves manufacturing, beneficiation, agro-processing, logistics, or export-oriented industries

You are likely not a fit if:

  • Your business is not located within a designated SEZ or IDZ
  • You are seeking operational funding (the SEZ Fund covers capital/infrastructure, not operations)
  • You are seeking funding for top structures, customised factory buildings, or general infrastructure outside the zone

 

Quick facts

Overview

  • Agency: dtic
  • Category: Tax Incentive; Infrastructure Grant (SEZ Fund)
  • Scheme Name: Special Economic Zone (SEZ) Programme
  • What this is: A programme that designates special geographic zones across South Africa where businesses access preferential tax rates and incentives, supported by a dedicated infrastructure fund for SEZ operators and developers.
  • Geographic Scope: National — SEZs located in multiple provinces (Eastern Cape, KwaZulu-Natal, Western Cape, Gauteng, Free State, Mpumalanga, Limpopo, North West)

Who this is for

  • Eligible Applicant Type: Businesses operating within designated SEZs (for tax incentives); SEZ operators, IDZ operators, and entities developing SEZs (for SEZ Fund)
  • Sector Focus: Manufacturing, Agro-processing, Infrastructure / Energy, Export / Trade, Science Engineering and Technology — sector-specific or multi-product zones
  • Ownership Requirements: Open to all ownership; transformation encouraged through B-BBEE compliance
  • Business Stage: Established; Start-up (within an SEZ)

Type of support

  • Is financial support provided: Yes
  • Support form: Tax incentives (reduced corporate tax, building allowance, employment tax incentive, customs relief); Capital infrastructure grants (SEZ Fund)

Funding parameters

  • Funding basis: Tax relief (ongoing for businesses in SEZs); Capital grant (project-by-project for SEZ Fund)
  • Funding percentage/amount: 15% corporate tax rate (vs standard 27%); SEZ Fund grants assessed on project merits
  • Funding cap: Not specified for tax incentives; SEZ Fund grants assessed individually
  • Cost-sharing required: Not applicable at programme level. Cost-sharing rules apply at individual incentive level.

What the support can be used for

Tax incentives: business operations within SEZs; SEZ Fund: bulk and related infrastructure within designated zones

Information you will need to provide

SEZ Fund applicants must provide a comprehensive business/concept proposal detailing the infrastructure project, clear socio-economic benefits, evidence of investor demand, and a holistic investment appraisal demonstrating financial and non-financial returns.

 

Key requirements and conditions

The SEZ Act encourages public-private partnerships in the development and operation of SEZs. SEZ Fund applicants should demonstrate leverage of third-party (private and foreign direct) investment. Build-operate-transfer approaches and contracted private management of government-owned zones are envisaged.

 

How it works

  • Application route: SEZ Fund: email applications to SEZfund@thedti.gov.za; Zone designation: applications from national/provincial/municipal authorities to the dtic; Tax incentives: through SARS and National Treasury
  • Assessment focus: Strategic alignment with SEZ programme objectives; socio-economic benefits; infrastructure leverage of FDI and private investment; compliance with SEZ Act criteria
  • Turnaround time: Not specified; project-by-project assessment by the dtic and Adjudication Committee

Application support

The dtic SEZ team provides technical advisory services including feasibility management, project due diligence, and support on project finance and PPP options

Contact and routing

SEZEnquiries@thedti.gov.za (general); SEZfund@thedti.gov.za (SEZ Fund)

Additional information

SEZ guidelines for specific incentives are available on the SARS (www.sars.gov.za) and National Treasury (www.treasury.gov.za) websites. The SEZ Fund is effective from 1 July 2013.

Contact and routing

SEZ Fund applications and enquiries:

SEZ Applications Process (designation) and general enquiries:

Individual SEZ websites:

 

Application Considerations:

What You Need to Prepare Before Applying

Most applications are delayed or declined due to incomplete submissions. Preparing the items below upfront will significantly improve your chances.

Core documents (required for almost all funds)

  • Company registration documents
  • Ownership and shareholder information
  • Business plan or project description
  • Recent financial statements or management accounts
  • Project budget and cost breakdown

Project‑specific documents (depending on the fund)

  • Quotes for equipment, infrastructure, or services
  • Feasibility study or technical proposal (where required)
  • Energy solution proposal (for energy‑related funds)
  • Export contracts or buyer information (for export and insurance products)
  • Job creation plan (where applicable)
  • Turnaround or recovery plan (for distress funding)

Additional requirements

  • Proof of sector compliance or permits (where relevant)
  • Evidence of co‑funding or financing approvals (for grants and blended funding)
  • Any templates or declarations specified by the administering agency

What Happens After You Apply

  1. Completeness check – your submission is reviewed to ensure all required documents are included.
  2. Eligibility assessment – the agency confirms that you meet the fund’s basic criteria.
  3. Technical and financial review – your project and financials are evaluated.
  4. Decision and contracting – approved applications proceed to contracting and implementation.

Timelines vary by fund and depend heavily on the quality and completeness of your application.

Important Notes for Applicants

  • Approval is not guaranteed, even if all requirements are met.
  • Funding terms may be subject to final agency approval and conditions.
  • Submitting accurate and complete information is critical.
  • Misrepresentation or incomplete information can result in delays or rejection.

Interested in this fund or have some questions?

Northern Cape, Free State & Mpumalanga Provinces (NFM)

Email Address: NFMcustomercare@thedtic.gov.za

Mr. Mahlatse Mothapo: 012 394 3554 / 082 903 5845
Ms. Jane Mtshali: 012 394 1385

Email Address: NGLcustomercare@thedtic.gov.za

Mr. David Molefe: 012 394 1262
Ms. Selinah Swaratlhe: 012 394 1140

Email Address: WCcustomercare@thedtic.gov.za

Mr. Elias Rafapa: 021 480 8064 / 063 688 6466 
Mr. Vuyo Zitha: 021 480 8055 / 066 306 8424
Ms. Monica Masangwana: 021 480 8063 / 082 647 3611

Email Address: ECcustomercare@thedtic.gov.za

Mr. Andre Le Grange: 041 502 9000 / 060 753 0751
Mr. Simphiwe Ngonyama: 060 753 0663
Ms. Princess Konza: 072 295 4806

Email Address: KZNcustomercare@thedtic.gov.za

Mr. Wiseman Myeni: 076 129 9697 
Ms. Rajeshri Sardha: 072 295 1480
Ms. Neela Govender: 072 296 0369
Ms. Constance Gumede: 072 296 1837

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