Lüderitz mayor calls for special economic zone status

The mayor of Lüderitz, Phil Balhao, says the government should consider making the town a special economic zone (SEZ) to boost development.

He says the current Procurement Act, however, acts as a stumbling block.

“So, if there was any possibility for our central government to consider making Lüderitz a special economic zone, that comes with a lot of incentives for investors,” Balhao told Desert Radio on Monday.

SEZs are designated areas within a country that offer incentives and benefits to attract foreign investment.

These benefits can often help businesses circumvent certain domestic regulations, including procurement acts.

Balhao said incentives could be a tax rebate or subsidised land sale.

Within an SEZ, authorities can tailor procurement policies to attract specific types of investments.

The mayor said the procurement process has to be made easier for the council to address certain issues and not have to work by the book.

“I think it’s important to look at ways that cannot be circumvented, but to rather streamline the processes that will enable us to prepare the town a lot faster and more effectively,” said Balhao.

He said although the town is not ready for the influx of people that will be visiting yet, they are working to ensure this.

“We’re working to ensure there are enough schools, hospitals, and other essential facilities to accommodate the new arrivals. But it’s a complex task, and there’s still a lot of work to be done,” Balhao said.

He said although the town council has been advertising tenders for infrastructure projects, including water storage, electrical supply, and road improvements, the scale of the development is significant and will require substantial investment.

“We’re committed to making Lüderitz a thriving and welcoming community. But we need to be realistic about the challenges ahead and ensure our development plans are sustainable and beneficial for all,” he said.

Additionally, the mayor said apart from infrastructure the town council is also focusing on skills development for local residents.

“We want to ensure our citizens have the skills and knowledge they need to participate fully in the economic opportunities coming to Lüderitz.”