The 2016/17 edition of Limpopo Business is the eighth issue of this highly successful publication that, since its launch in 2007, has established itself as the premier business and investment guide to the Limpopo province.
Limpopo is unique in terms of its abundant natural and human resources, and is also one of the key drivers behind the South African economy.
This edition of Limpopo Business is officially endorsed by the Office of the Premier of Limpopo.
SPECIAL FEATURE Priority
SPECIAL FEATURE Priority projects in Limpopo A range of high-impact projects in the province have the potential to substantially improve the Limpopo economy. A number of important projects are under way in Limpopo or have recently been approved. Together, they have the potential to significantly increase the economic output of the province and to create a large number of jobs. Projects range from a huge power-generation plant in the west to a mega-dam in the east. In the north, a Special Economic Zone (SEZ) aims to kick-start a range of economic investments and throughout the province there are programmes aimed at improving services to communities and making co-operatives economically sustainable. LIMPOPO BUSINESS 2016/17 24
SPECIAL FEATURE Special Economic Zones In July 2016 the national cabinet approved the Musina-Makhado Special Economic Zone (SEZ). Located in the far north of Limpopo in the Vhembe region, Musina is strategically located near the border of Zimbabwe and on the Great North Road, which links South Africa to the broader southern African region. Special Economic Zones are created in terms of the Special Economic Zones Act of 2014 (Act 16 of 2014). The act defines an SEZ as “geographically designated areas of the country that are set aside for specifically targeted economic activities and supported through special arrangements and systems that are often different from those that apply to the rest of the country”. Lower corporate tax rates and duty-free imports are among the advantages that accrue to investors. Infrastructure at an SEZ supports the specific industry and attracts foreign investors with a strong focus on beneficiation of local produce or materials. Skills transfer is another stated aim behind the SEZ programme. The location of the Musina SEZ, with links to Zimbabwe, Botswana and Mozambique, promotes the Trans-Limpopo Spatial Development Initiative. Logistics will be one of the key focus areas of the SEZ. Other sectors that will be concentrated on include agri-processing, energy and mineral beneficiation. De Beers’ giant Venetia diamond mine is nearby. The company’s most recent life-of-mine expansion project, worth about R30-billion, will result in the mine producing until 2046. The national Department of Trade and Industry (dti) is the lead agent in SEZ creation, which in turn feeds into the national Industrial Policy Action Plan (IPAP). SEZs are designed to attract investment, create jobs and boost exports. Soon after the announcement of the designation of the SEZ, the dti said that a consortium of Chinese investors, Sino, has agreed to put R40-billion into the Musina SEZ where they will operate the mineral beneficiation operations. The first phase of this is to build a power plant. The dti estimates that the completed SEZ could create more than 20 000 jobs. A second application for an SEZ at Tubatse is pending. Tubatse is in the Sekhukhune District Municipality and hosts a number of mining operations. The SEZ in Tubatse will focus on the beneficiation of platinum group metals and mining-related manufacturing. The province of Bashkortostan in Russia has also expressed an interest in the SEZs of Limpopo. More details on the SEZs follows on pages 26-31. Infrastructure In August 2016, Unit 6 of the Medupi power station came on stream. The Medupi power station project is one of the biggest engineering projects under- 25 LIMPOPO BUSINESS 2016/17
