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.
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FOCUS Limpopo’s Special Economic Zones Two Special Economic Zones have been proposed for Limpopo Province. The Limpopo Department of Economic Development, Environment & Tourism (LEDET) and its agency LEDA are facilitating the establishment of the two Special Economic Zones (SEZs), one in Steelpoort (the Tubatse Platinum SEZ) and the other in Musina (the Musina SEZ), following the acceptance of proposals from Limpopo by the national Department of Trade and Industry (the dti). A Special Economic Zone (SEZ) is a geographic area of a country or region designated for targeted (strategic) economic activities, which are supported through special measures. It is one of the key instruments for industrialisation as articulated in the Industrial Policy Action Plan (IPAP), National Growth Path (NGP) and National Development Plan (NDP). Overview and purpose of the SEZs The SEZs have been established to: • Increase foreign and domestic investment in the two districts (Greater Sekhukhune and Vhembe districts) • Increase exports of value-added manufactured goods from the region • Build the required industrial infrastructure in both Greater Tubatse Municipality and Musina Municipality • Ensure employment creation, technology transfer and skills development • Ensure the spread of industrial development regionally and the promotion of industrial agglomeration in the region • Ensure the creation of economic linkages through supplier development • Promote coordinated planning among key government agencies SEZ incentives • Section 12R qualifying companies will be subjected to a reduced CIT tax rate of 15% • Taxpayers achieving SEZ status will retain the status for 10 years • Section 12S qualifying companies within the SEZs will get extra accelerated allowances on buildings and improvements to buildings • Companies employing salaried employees earning (below R6 000 per month) will be given a wage incentives • Special customs and VAT incentives LIMPOPO BUSINESS 2016/17 28
FOCUS Other allowances • Industrial policy investment projects • Depreciation allowance • Capital allowance on machinery and plant (manufacturing allowance) • Learnership allowance • Research and development allowances: 150% • Small business turnover tax – for businesses with turnover less than R1-million • Small business corporation less than R20-million turnover • Accelerated depreciation allowance – all year one • Improved tax rates – on graduated basis • Energy-saving incentives • Municipal rates rebates Legislative framework for SEZs The SEZs are established in terms of the SEZ Act of 2014. The Act provides for: • The Minister to determine policy for the designation, promotion, development, operation and management of Special Economic Zones • The SEZ Act provides for the establishment of an Advisory Board to advise the Minister of Trade and Industry on the following: • Designation of SEZs • Financing and support measures • SEZ Fund – applications and approvals • Support measures • Implementation protocols Roles and responsibilities of the SEZs The implementation of SEZs requires cordial relations between national departments, provincial and local government based on mutual respect between spheres of government and state agencies. The national departments that have a role in the SEZs are: • the dti: responsible for policy on the establishment and operation of SEZs • National Treasury: approval of funding and special waivers for foreign investors (capital movement and investments) • Mineral Resources: custodian of Mineral Beneficiation policy • Energy: implementation of different energy mix and technologies • Home Affairs: approval of work permits for foreign workers in SA • Science and Technology: support for technology transfer • Higher Education: custodian of skills development policy In the province, the key departments are: Treasury and Enterprise Development, Cooperative Governance, Roads and Transport National agencies include: SARS, Transnet, Eskom and the Industrial Development Corporation (IDC) Municipalities include: Greater Sekhukhune District Municipality and Greater Tubatse Municipality 29 LIMPOPO BUSINESS 2016/17
