Special Economic Zone in Musina gets go-ahead

Cabinet recently ratified and gave the go-ahead for Trade and Industry (DTI) Minister Rob Davies’ decision to designate the Musina-Makhado Special Economic Zone (SEZ) in Limpopo as well as grant a Special Economic Zone Licence to the Limpopo Economic Development Agency (Leda).
Ben Mphahlele, Leda Managing Director is pleased with the developments thus far and told Polokwane Observer that the development is expected to be gazetted within the next few days where after the environmental impact study commence immediately. He said a water study was underway and a Master Plan to be drawn up for the development, which he foresees would mature into a big city in the next ten years.
He said should there be a shortfall of water, it might be sourced from Zimbabwe, as the development will not only benefit Limpopo but also neighbouring countries such as Zimbab­we, Botswana and Mozambique.
Steel producer Hoi Mor Consortium was appointed to plan, develop, manage and market the South African energy and metallurgical industrial park within the zone. Investors led by the Hong Kong Mining Exchange will invest R40 billion to build a power plant for which plans have been completed. The SEZ will include an agro-processing, energy cluster as well as a logistics hub.
Mphahlele believes other investors will follow. The spin-offs would not only include work for 21 000 people in the SEZ, but new hospitals, schools and malls would be built, creating jobs. “The demand for food will also increase and this will benefit agriculture in the area, which is an excellent production area for agricultural produce,” Mphahlele informed.
DTI Director-General Lionel October last Thursday said this was the first group of investors to enter one of SA’s special economic zones (SEZ) at the same time. “They are going to operate the beneficiation component of the zone, which will be serviced by the plant,” he said. The minerals to be beneficiated in the zone include chrome, manganese and lime. The designated zone would promote industrial development in the region with a specific focus on the mineral beneficiation, agro-processing, petro-chemicals, and other light industries.”
The designation of the zone was preceded by an extensive public consultation process that was undertaken by the DTI in April this year. The DTI said during the public hearings and meetings held in Musina, Makhado and Nzhelele, members of the local communities expressed their support for the creation of the SEZ in the area. Local communities also want issues of financial support and development of local small, medium and micro (SMMEs) and cooperatives as well as empowerment deals for facilitating equitable ownership to top the agenda. Discussions are ongoing.
Davies in an earlier statement said the proposed designation was in line with the Industrial Policy Action Plan (IPAP), which had identified SEZs as strategic interventions designed to accelerate economic development through greater investment, export volumes and job creation.
“In alignment with the National Development Plan (NDP), this development is intended to accelerate economic growth, attract foreign and domestic direct investment, expand the manufacturing sector and mineral beneficiation, as well as create employment in the region,” Davies stated.
Davies further said the Musina-Makhado region was also part of the Trans-Limpopo Spatial Development Initiative and was well-positioned for regional integration and linkages with Mozambique, Zimbabwe and Botswana. Musina is also the main land-based trade region between South Africa and the broader African continent. This development will also improve rail and road transport links between South Africa and the rest of the continent.
The SEZ comes with a suite of incentives designed to attract investment, such as a lower corporate tax rate and the waiver of duties on imports.

Story: NELIE ERASMUS
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