Answer to Question #228432 in Macroeconomics for Unathii

Question

Briefly explain the weaknesses of the RSA's industrial development zones

Answer 1

The following are the weakness of RSAs industrial development zones.

1. There is loss of revenue due to various tax exemptions and incentives.

2. Many business people are interested in SEZ, so that they can acquire at cheap rates and create a land bank for themselves.

3. There is a belief that this project may not match up to expectations since the number of units applying for setting up EOU is not corresponding to the number of applications for setting up SEZs