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Free State Business 2021

The 2021 edition of Free State Business is the 11th issue of this successful publication that, since its launch, has established itself as the premier business and investment guide for the Free State. The Free State has varied investment and business opportunities and the Free State Development Corporation describes some of these in detail in these pages. Drilling for natural gas is a new phenomenon which may spark activity in other sectors and this journal notes significant new investments and projects in the chemicals and mining sectors. The official launch of the Maluti-A-Phofung Special Economic Zone (MAP SEZ) was a significant event for the economy of South Africa’s most centrally located province. Located on the strategically significant N3 highway that links the economic heartland of South Africa to the coast, the MAP SEZ has the potential to attract new investors and spark a revival in the manufacturing sector. In addition, overviews on each of the key economic sectors provide up-to-date information on trends in the mining and tourism sectors, for example. Regular information about the size and nature of each sector is also included.

The 2021 edition of Free State Business is the 11th issue of this successful publication that, since its launch, has established itself as the premier business and investment guide for the Free State. The Free State has varied investment and business opportunities and the Free State Development Corporation describes some of these in detail in these pages. Drilling for natural gas is a new phenomenon which may spark activity in other sectors and this journal notes significant new investments and projects in the chemicals and mining sectors. The official launch of the Maluti-A-Phofung Special Economic Zone (MAP SEZ) was a significant event for the economy of South Africa’s most centrally located province. Located on the strategically significant N3 highway that links the economic heartland of South Africa to the coast, the MAP SEZ has the potential to attract new investors and spark a revival in the manufacturing sector. In addition, overviews on each of the key economic sectors provide up-to-date information on trends in the mining and tourism sectors, for example. Regular information about the size and nature of each sector is also included.

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OVERVIEW PROFILE<br />

PROFILE<br />

Maluti-A-Phofung<br />

Maluti-A-Phofung<br />

SEZ<br />

SEZ<br />

investment investment opportunities<br />

opportunities<br />

The SEZ is booming with investment to the tune of R1.1-billon for 2020.<br />

Maluti-A-Phofung Special Economic Zone SEZ project pipeline<br />

(MAP SEZ) has been established in terms There are various companies that have signed<br />

of the Special Economic Zones of Act the No. traffic letters to different of intent locations to locate in South in the Africa MAP and SEZ. neighbouring<br />

Some of<br />

16 of 2014. The programme is intended countries such the as sectors Lesotho targeted and Swaziland. for establishment Through its within cross-docking the<br />

to deepen industrial development and precinct improve and MAP its logistics SEZ are as and follows: warehousing sectors the MAP SEZ<br />

manufacturing competitiveness in the Maluti-A- presents itself • as Logistics a solution and to lighten distribution. the traffic pressure on the N3.<br />

Phofung region.<br />

This Special • Agro-processing.<br />

Economic Zone (SEZ) is part of the <strong>Free</strong> <strong>State</strong> leg<br />

Situated in Harrismith and Tshiame in the of Eastern the massive • Durban-<strong>Free</strong> Food processing. <strong>State</strong>-Gauteng logistics and industrial<br />

<strong>Free</strong> <strong>State</strong>, MAP SEZ is strategically located on corridor the N3 that • is Rail-based intended to container strengthen terminal the logistics (Transnet and Freight transport<br />

national road, halfway between Johannesburg<br />

corridor<br />

and<br />

between<br />

Rail).<br />

South Africa’s main industrial hubs to:<br />

Durban. MAP SEZ offers 1 038 hectares of<br />

•<br />

land<br />

Ignite<br />

for<br />

the economy<br />

• Starch<br />

of<br />

chemicals.<br />

the region through industrialisation.<br />

• Attract foreign and direct investment.<br />

industrial development.<br />

• Biogas.<br />

• Create access to export and import markets.<br />

Since the Durban port is the busiest in the<br />

• Integrate <strong>Free</strong> <strong>State</strong> industrial strategy activities into the corridor.<br />

southern hemisphere, it therefore means that the N3 MAP SEZ milestones<br />

• Create job opportunities and grow the economy within the region.<br />

carries the majority of the traffic to different locations<br />

in South MAP Africa SEZ and CEO neighbouring Mpho Mgemane countries such as<br />

Lesotho and Swaziland. Through its cross-docking<br />

precinct and its logistics and warehousing sectors<br />

• MAP SEZ was launched by President Zuma on 25<br />

April 2017 to operate as a Special Economic Zone.<br />

• Maluti-A-Phofung SEZ was granted an operator<br />

permit in 2017 by the Minister of Trade and<br />

Industry after cabinet approval.<br />

• Perimeter fencing and lighting have been<br />

completed.<br />

• Bulk infrastructure roll-out is in progress and is<br />

90% complete.<br />

• The SEZ has developed a marketing and<br />

promotion pipeline which has attracted<br />

30 potential investors with an estimated<br />

investment value of R 2.6-billion and will create<br />

Maluti-A-Phofung<br />

the MAP SEZ presents Special itself Economic as a solution to lighten<br />

the traffic pressure Zone the (MAP N3. SEZ) has<br />

This Special Economic been established Zone (SEZ) is in part of the <strong>Free</strong><br />

<strong>State</strong> leg terms of the of massive the Special Durban-<strong>Free</strong> Economic <strong>State</strong>-Gauteng<br />

logistics Zones and Act industrial No 16 corridor of 2014. that The is intended<br />

to strengthen programme the logistics intended and transport to corridor<br />

between deepen South industrial Africa’s main development industrial hubs to:<br />

• Improve and access improve to export manufacturing and import markets.<br />

• Integrate competitiveness <strong>Free</strong> <strong>State</strong> industrial the Maluti- strategy activities<br />

into A-Phofung the corridor. region.<br />

Objectives approximately 22 130 permanent and temporary<br />

• Create job Since opportunities the Durban and port grow is the economy As part of its mandate, job opportunities the MAP in the SEZ next is intended 5 to 10 years. to establish<br />

within the the busiest region. in the southern<br />

hemisphere, it therefore means<br />

Investor that benefits the N3 carries the majority<br />

manufacturing • opportunities Construction and of top create structures a regional commenced and international<br />

trade environment June with 2019. added value-chain benefits. It has also been<br />

established to simulate social and economic benefits and regional<br />

Benefits that will be derived from locating within What the MAP SEZ offers development and to create<br />

MAP SEZ include:<br />

• Lots of space – more a than prosperous 1000ha available trade city to and<br />

• 15% corporate tax instead of 28% corporate tax. prospective investors. functional trade ecosystem.<br />

• Building allowance.<br />

• Long-term lease periods Finally, which provide to investors encourage<br />

• Employment incentive.<br />

an opportunity to beneficiation recoup investment activities on that<br />

• Customs controlled area (CCA).<br />

infrastructure. promote value-added benefits<br />

• 12i Tax allowance.<br />

• Affordability in the form<br />

and<br />

of<br />

help<br />

concessions<br />

to create a<br />

offered<br />

prosperous<br />

on rentals.<br />

trade city and functional trade<br />

ecosystem.<br />

FREE STATE BUSINESS 2018 2020<br />

FREE STATE BUSINESS <strong>2021</strong><br />

20<br />

20

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