FOCUS Maluti-A-Phofung
FOCUS Maluti-A-Phofung SEZ investment opportunities Maluti-A-Phofung Special Economic Zone (MAP SEZ) has been established in terms of the Special Economic Zones Act No. 16 of 2014. The programme is intended to deepen industrial development and improve manufacturing competitiveness in the Maluti-A-Phofung region. Situated in Harrismith and Tshiame in the Eastern Free State, MAP SEZ is strategically located on the N3 national road, halfway between Johannesburg and Durban. MAP SEZ offers 1 038 hectares of land for industrial development. Since the Durban port is the busiest in the southern hemisphere, it therefore means that the N3 carries the majority of the traffic to different locations in South Africa and neighbouring countries such as Lesotho and Swaziland. Through its cross-docking precinct and its logistics and warehousing sectors the MAP SEZ presents itself as a solution to lighten the traffic pressure on the N3. This Special Economic Zone (SEZ) is part of the Free State leg of the massive Durban-Free State-Gauteng logistics and industrial corridor that is intended to strengthen the logistics and transport corridor between South Africa’s main industrial hubs to: • Improve access to export and import markets. • Integrate Free State industrial strategy activities into the corridor. • Create job opportunities and grow the economy within the region. Investor benefits Benefits that will be derived from locating within MAP SEZ include: • 15% corporate tax instead of 28% corporate tax. • Building allowance. • Employment incentive. • Customs controlled area (CCA). • 12i Tax allowance. SEZ project pipeline There are various companies that have signed letters of intent to locate in the MAP SEZ. Some of the sectors targeted for establishment within the MAP SEZ are as follows: • Logistics and distribution. • Agro-processing. • Food processing. • Rail-based container terminal (Transnet Freight Rail). • Starch chemicals. • Biogas. MAP SEZ milestones • MAP SEZ was launched by President Zuma on 25 April 2017 to operate as a Special Economic Zone. • Maluti-A-Phofung SEZ was granted an operator permit in 2017 by the Minister of Trade and Industry after cabinet approval. • Perimeter fencing and lighting have been completed. • Bulk infrastructure roll-out is in progress and is 80% complete. • The SEZ has developed a marketing and promotion pipeline which has attracted 24 potential investors with an estimated investment value of R 2.6-billion and will create approximately 22 130 permanent and temporary job opportunities in the next 5 to 10 years. • Construction of top structures to commence in June 2019. What the MAP SEZ offers • Lots of space – more than 1000ha available to prospective investors. • Long-term lease periods which provide investors an opportunity to recoup investment on infrastructure. • Affordability in the form of concessions offered on rentals. FREE STATE BUSINESS 2019 24
FOCUS Economic development As part of its mandate, the MAP SEZ is intended to create decent work, transfer of skills and other social economic benefits. In line with this requirement, the MAP SEZ’s robust investment-promotion pipeline will allow the entity to create an estimated 22 130 permanent and temporary job opportunities in the Maluti-A-Phofung region over the next 5 to 10 years. Key MAPSEZ Key MAP SEZ investment pipeline Beverage processing plant Investments One of the MAP SEZ’s flagship investors is a 100% black, independentlyowned business, which manufactures, imports, distributes and MAPSEZ BEVERAGE PROCESSING PLANT markets some of the world’s premuim beverage brands. One of the MAPSEZ’s flagship investors is a 100% This investor will be establishing black, a beverage independently owned processing business, which and imports, bottling plant at the MAP SEZ. The finished distributes and markets some of the world’s most premium products brands. will be sold at retail facilities domestically and internationally. This investor will be establishing a beverage processing and bottling plant at the MAPSEZ, the finished products will be sold at the retail facilities domestically and internationally. Agri-park This agri-park project involves MAP the SEZ building AGRI-PARK of PROJECT a world-class, integrated food processing park which This Agri-Park will include project involves food the processing, building of a warehousing, cold storage and manufacturing world-class, integrated food facilities. processing The park which agriparks project scheme has been created storage and manufacturing to promote facilities. the upskilling will include food processing, warehousing, cold of local farmers and to expose local The Agri-parks farmers project to scheme the has commercial been created to promote the upskilling of local farmers and to expose market space. local farmers to the commercial market space. HUMAN HAIR MANUFACTURER Human hair manufacturer A Chinese hair company has partnered with in South A Chinese hair company has partnered Africa with companies South to African establish a companies human hair manufacturing plant. to establish a human hair The final product The final product will be sold to retail facilities in the will be sold to retail facilities in the local local and international and international market. market. INLAND AGRI-HUB FACILITY Inland agri-hub facility This investor intends to develop an inland Agro This investor intends to develop an logistics inland facility agro-logistics and also to create facility silos for local and farmers. also to create silos for local farmers. Another leg of this business Another leg of this business includes the shipment of includes the shipment of grain in and grain around in and around the the Free State Provinceandthe SADC region. and the SADC region. MAPSEZ CHANGING THE COMMUNITY MAP SEZ priority sectors There are six priority sectors: • Automotive • Agro-processing • Logistics • General processing • ICT • Pharmaceuticals. As part of its mandate, the MAPSEZ is intended to create decent work and other economic social benefits in the region in which it is located. In line with this requirement, the MAPSEZ’s robust investment promotion pipeline will allow the entity to create an estimated 22 130 permanent and TO DISCUSS THESE OPPORTUNITIES, CONTACT: temporary job opportunities in the Maluti-A-Phofung Region over the next five years. Ms M Setai Manager in the Office of the Chief Executive Officer Maluti-a-Phofung Special Economic Zone Tel: +27 51 4000 800 | Cell: +27 73 210 0935 | Email: maphoka@mapsez.co.za Website: www.mapsez.co.za 25 FREE STATE BUSINESS 2019
