Designated zones built for
targeted investment
South Africa's Special Economic Zones offer investors sector-specific infrastructure, preferential tax rates and a coordinated government facilitation environment - designed to accelerate industrialisation, attract foreign and domestic investment, and create employment at scale.
What operating in an SEZ means for your business
Businesses locating within a designated Special Economic Zone access a nationally packaged set of incentives designed to reduce the cost of doing business, support capital investment and improve competitiveness in global markets. The same incentive framework applies across all designated zones.
15% Preferential Corporate Tax Rate
Qualifying businesses operating within an SEZ are eligible for a reduced corporate income tax rate of 15% - compared to the standard rate of 27%. This applies to businesses prescribed under the SEZ Act and subject to qualifying criteria under the Income Tax Act.
Building and Infrastructure Allowance
Businesses and operators within an SEZ may claim an accelerated building allowance on owned structures used for qualifying trade activities. This reduces the net cost of constructing or improving facilities within the zone, supporting faster payback on capital investment.
Employment Tax Incentive
Businesses operating within an SEZ may qualify for the Employment Tax Incentive - a cost-sharing arrangement with government that reduces the cost of hiring young and first-time workers. This incentive directly supports job creation and workforce development in the zone.
Customs Controlled Area Benefits
Businesses located within a Customs Controlled Area (CCA) of an SEZ benefit from duty-free importation of production-related raw materials, machinery and assets, as well as VAT exemptions on qualifying supplies - significantly reducing input costs for export-oriented manufacturers.
Each incentive carries specific qualifying criteria set by the SEZ Act and related legislation including the Income Tax Act, the Employment Tax Incentive Act and the Customs Duty Act. Contact the dtic and sepcific SEZ for advise on your specific investment.
Special Economic Zones













Start your SEZ investment journey with InvestSA
Whether you have identified your preferred zone, are still evaluating options or need help understanding which incentives apply to your business, InvestSA is ready to assist.