Limpopo Business 2022-23

FOCUS The Musina-Makhado

FOCUS The Musina-Makhado Special Economic Zone – a catalyst for growth Multiple investments in northern Limpopo are set to make a huge impact on the regional economy. The Musina-Makhado Special Economic Zone (MMSEZ) is an initiative of the Limpopo Provincial Government. The MMSEZ state-owned company (MMSEZ SOC) has been established as the implementing agent of the project and is a subsidiary of the Limpopo Economic Development Agency (LEDA), which reports to the Limpopo Department of Economic Development, Environment and Tourism (LEDET). Approval and support for the concept and location of the SEZ has been obtained from national government through the Department of Trade, Industry and Competition (dtic) and forms part of broad national plans to diversify and grow the national economy. Private sector participation will be key to the success of the SEZ in driving growth in the region. Sectors represented in the SEZ will include energy and metallurgy, agro-processing, logistics and general manufacturing. The MMSEZ has appointed a private operator for the Energy and Metallurgical Complex (EMSEZ). Development model The development model of the MMSEZ complies with local, national and regional blueprints and plans. These include: • Limpopo Development Plan • District-based development model • Regional Spatial Development Framework (RSDF) • New Smart City Model • External master plan approach Investment in developmental infrastructure is ongoing: water, electricity, ICT, roads, transport, human settlement, airport, education and training. Regional implications The Musina-Makhado SEZ is located in the vicinity of the Beitbridge Border Post which is one of the busiest ports of entry to South Africa and a gateway to countries in the Southern African Development Community (SADC). The SADC Industrialisation Strategy and the Africa Continental Free Trade Area (AfCFTA) will boost regional and inter-regional trade volumes, giving the MMSEZ’s prime location further importance. The MMSEZ has the potential to become an inland intermodal terminal, facilitated by its anchoring position along the northsouth corridor, and directly connecting to the country’s major ports through both the N1 highway and the Johannesburg-Musina railway line, for the trans-shipment of sea cargo and manufactured goods. With many companies and countries wanting to decentralise and diversify their distribution hubs (either because of Covid-19 or potential unrest in some areas), there is an opportunity for the MMSEZ North Site as a potential regional inland port. Key projects completed Feasibility studies for agro-processing, timber beneficiation, logistics and manufacturing, an SMME incubation centre and the Musina Dam: • North Site internal master plan • Investment promotion strategy • Minerals identification and beneficiation • Strategic information system plan • New Smart City Model • Regional Spatial Development Framework LIMPOPO BUSINESS 2022/23 16

North Site Layout FOCUS • Finalising the short- and medium-term water solution • Bulk infrastructure engineering design • Site clearance and fencing • Installation of bulk infrastructure • Ramping up skills development NORTH SITE The Environmental Impact Assessment (EIA) for the site has been approved, as has the engineering planning phase for bulk infrastructure. Infrastructure installation is envisaged to begin in the course of 2022. Phase 1 projects: • Fresh produce market: partnership • Regional fuel terminal: partnership • Trucks and buses manufacturing: investor • Chemicals manufacturing: investor • Vhembe TVET College • Rail connectivity • Solar energy South plantSite Status SOUTH SITE The South Site’s EIA application was approved on 23 February 2022. The action plan in the post-EIA approval phase encompasses: • Rezoning of the South Site Energy The plan to build a coal-powered power station has been phased out. A memorandum of understanding was signed in December 2021 with a Chinese investor to build a 1 000MW solar power plant. A pre-feasibility study for the project has been done. A project-based EIA application will begin after a site has been chosen and confirmed. ■ Driving industrialisation Extract from Budget Speech, 2022, MEC for Economic Development, Environment and Tourism (LEDET), Thabo Mokone: During the State of the Province Address, the Premier emphasised that industrialisation of the provincial economy, through implementation of megaprojects in manufacturing and the agriculture and tourism sectors, continues unabated. LEDET is implementing high-impact catalytic projects focusing on the Broadband Network Infrastructure Initiative, the Science and Technology Park, digital hubs and our two Special Economic Zones, namely, Musina-Makhado SEZ and Fetakgomo-Tubatse SEZ. LEDET will drive implementation of the industrialisation programme in partnership with other sector departments in the economic cluster. The province has set aside R600-million to develop infrastructure for the North Site of the MMSEZ over the medium-term expenditure framework. Of this allocation, R38.7-million has been spent to date on engineering work. The current year’s budget allocation of R200-million will be utilised to roll out security, water and electricity infrastructure. The implementation of the SEZ is progressing very well. 17 LIMPOPO BUSINESS 2022/23