Thesis (MBA)--University of Stellenbosch, 2010. / ENGLISH ABSTRACT: The Export Processing Zone (EPZ) regime is not new across the world. The first known form was established in the 13th century in modern day Spain. However, the growth of EPZs only became prominent after the First World War, as first world countries were trying to rebuild their economies through export-oriented manufacturing. By the turn of the century, more than two thirds of the countries in the world had embraced the EPZ regime with more than 3,000 zones established, employing more than 43 million people. China contributed a big number to this as it pushed through its Special Economic Zone (SEZ) regime to experiment with market-driven reforms. EPZs have made a significant contribution towards the growth of countries that have fully embraced the EPZ regime. The majority of these countries are in Asia, the Caribbean and South America. In Africa, Mauritius and Madagascar have benefited from the establishment of zones. On the other hand, other countries have failed to realize benefits from their zones such as Senegal. Zambia was slow to develop policy related to establishment of EPZ. The first attempt to establish EPZ legislature was only made in 2001. However, nothing happened on the ground until 2007, due mostly to concerns around revenue benefits from zones. Since then, two zones have been set up, construction of another is about to start and three more are planned. Despite this ambitious drive, there are still concerns around the realization of benefits from zones compared to the foregone tax, as well as costs associated with establishing infrastructure to support the zones. Other concerns related to the working conditions and wages of people employed by zone enterprises This study explores further such concerns. It is noted in this study that the policy framework for attracting investment in zones is adequate and addresses all concerns. However, the level of infrastructure development is not adequate to support the EPZ regime. The domestic business environment is not well developed to support and benefit from the EPZ regime. Considering its past economic performance, the country has no choice but to embrace the EPZ regime, as a means to develop growth in exports. / AFRIKAANSE OPSOMMING: Die vryhandelsgebiedkonsep is by verre nie nuut in die ekonomiese wêreld nie. Die eerste van hierdie tipe markstelsels dateer terug van sover as 13de eeuse Spanje. Dit is egter interessant dat die vryhandelsgebiedmodel eers na die beëindiging van die eerste wêreldoorlog pertinent posgevat het. Die konsep was in hierdie tyd veral vir eerste wêreld lande van groot waarde. Hulle kon toesien dat hul ekonomieë deur uitvoergedrewe vervaardiging in ere herstel word. Dit is ook verder werd om te weet dat teen die draai van die eeu, meer as twee derdes van die wêreld in meer as 3000 vryhandelsooreenkomste belang gehad het. Dit het direk of indirek daartoe bygedra dat meer as 43 miljoen mense op een of ander wyse by die arbeidsmark betrek is. China het 'n groot rol gespeel deur sy “Spesiale” vryhandelsgebiede waarmee hy markgedrewe hervorming kon toets. Vryhandelsgebiede het daadwerklik 'n groot invloed gehad op die groei van ekonomieë van lande wat volwaardig by die konsep ingekoop het. Die oorgrootte meerderheid van die lande is afkomstig uit Asië, die Karibiese Eilande en Suid Amerika. Uit Afrika was dit onder andere Mauritius en Madagaskar wat die meeste voordeel hieruit geput het. Andersyds het lande soos Senegal klaarblyklik geen voordeel uit sy vryhandelsgebiede gekry nie. Zambië was veral stadig om beleid neer te lê rondom die vestiging van 'n eie vryhandelsgebied(e). Sy eerste poging om amptelike wetgewing in die verband neer te lê was in 2001. Daar het egter niks konkreet hieruit voortgevloei voor 2007 nie. Die land was veral besorg oor inkomstevoordele tussen die voorgestelde gebiede. Sedertdien is twee gebiede reeds gevestig, 'n derde in wording en 'n verdere drie in die beplanningsfase. Ten spyte van die nuutgevonde dryfkrag is daar steeds twyfel oor die voordeel tussen die handelsgebiede, opgeweeg teen die uitgemaakte belasting en kostes wat met die daarstelling van die nodige infrastruktuur gepaard gaan. Daar is ook kommer oor die werksomstandighede en besoldiging van mense wat deur Vryhandelsondernemings in diens geneem word. Die doel van hierdie studie is om verdere kwelpunte te identifiseer en dan te analiseer. Daar word in die studie bevestig dat die beleidsraamwerk, wat daarop gemik is om belegging aantreklik te maak, voldoende is. Die infrastruktuur is egter nie huidiglik voldoende om die Vryhandelsgebiede te ondersteun nie. Die plaaslike besigheidsspeelveld is ook nie goed ontwikkel nie en kan derhalwe nie dié besigheidsmodel ondersteun en voordeel daaruit put nie. Gegewe sy ekonomiese prestasies van die verlede kan Zambië nie anders as om die Vryhandelsgebiedkonsep aan te hang, om sodoende daadwerklike groei in sy uitvoermark te bewerkstellig nie.

Thesis (MDF)--Stellenbosch University, 2012. / Export processing zones (EPZs) are policy instruments that are aimed at achieving the goal of economic development through boosting the manufacturing industry in a bid to increase and promote export. This is achieved by setting up or designating various areas or warehouses as free zones in which an environment that is friendly to manufacturing for exports, is established. Incentives such as tax exemptions for the import of required raw materials are given in these zones. EPZs are also known by other names but the most commonly used are free trade zones, industrial free zones, maquiladoras, export free zones, duty-free export processing zones, free zones and privileged zones, to mention a few. Similar to many other developing countries in sub-Saharan Africa (SSA), Zambia has a bias towards export orientation as a tool of economic development. This culminated in the formulation of EPZ legislation in 2001. The EPZ act was similar to EPZ legislation in various other countries and provided for the development of an industrial park in which manufacturing for export purposes would take place for both the public and the private sector. After awarding a few companies EPZ status, the government abandoned the act and embarked on more research, resulting in the development of the multi-facility economic zone (MFEZ) in 2007. Recognition of the role of non-traditional exports (NTEs) in increasing export earnings has been important in the justification for EPZ’s development in the country. There has been a drive to attract investment into this sector by means of export-promoting policies. However, and notwithstanding the fact that numerous cost benefit studies have been undertaken to determine actual benefits of zone erection, Zambia has not yet undertaken a comprehensive synopsis of the country’s specific policies which would need to be established in order for the zone to be successful.