S economy NKOMAZI SEZ
S economy NKOMAZI SEZ (MPUMULANGA) Nkomazi SEZ is in the eastern part of Ehlanzeni District Municipality of Mpumalanga. It has been formalised to provide a competitive and highly efficient industrial cluster that positions itself as the leading location for agro-processing, and logistics service activities within South Africa, in response to investor demand. The abundance of citrus and many other subtropical fruits as well as nuts and a variety of vegetables are produced in Mpumalanga. The region is also home to the largest stock of beef cattle in South Africa and is responsible for 22% of South Africa’s beef production. SAPPI’s Ngodwana plant, close to Nelspruit, is a fully integrated Kraft mill producing pulp for its own consumption as well as newsprint and container board. In 2013, the mill started producing dissolving wood pulp (specialised cellulose) for global markets that can be exported through Maputo Port. The geographical position of Nkomazi in relation to the Sub-Saharan countries of East Africa, the proximity to some of the major mining and agricultural production areas of the country’s northern provinces and access to good transport infrastructure provides Nkomazi with an advantage as a logistics and distribution hub. The Maputo Corridor integrates the regions of Swaziland, southern Mozambique and the industrialised regions of Mpumalanga, Gauteng and Limpopo. South Africa has developed specialised hubs at Durban, Richards Bay, Port Elizabeth and Coega that take much of its bulk exports, cars, container traffic and others. The proximity of Maputo Port to the above regions presents a very cost-effective alternative to South African ports, while assisting with the overall development and integration of SADC countries. MUSINA-MAKHADO SEZ (LIMPOPO) Over the last few years, the Limpopo Provincial Government has worked hard to get the Musina- Makhado Special Economic Zone (MMSEZ) off the ground. MMSEZ is a two-in-one project, with the South site zone in Makhado and the North site zone in Musina. The Musina and Makhado municipalities are strategically located along the North-South Corridor and in the vicinity of the second-busiest port of entry, the Beitbridge border post. Guided by recent history in development in Limpopo, particularly the development of the Medupi Power Plant in Lephalale, MMSEZ will be used as a catalytic initiative to unlock various developmental opportunities in Musina and Makhado. The MMSEZ SOC has commissioned a feasibility study for the development of a new Musina Dam through harvesting annual runoff flood water in the Limpopo River. The success of Musina Dam will unlock new opportunities for economic development in the Vhembe District, and relieve many communities from ongoing water shortages. The zone is allotted for light-tomedium industrial activities, focusing on agroprocessing, manufacturing and logistics. MALUTI-A-PHOFUNG SEZ (FREE STATE) The R4.8-billion, 1 000ha Maluti-a-Phofung SEZ near Harrismith will provide road and rail logistics and handling facilities for the Gauteng-Durban port corridor and link it to the Bloemfontein-Cape Town corridor. The main industries the SEZ will serve are agriculture, agro-processing, automotive and logistics, and will include container and car terminal facilities. The SEZ will function as a back-of-port operation to ease congestion at the Durban port and will provide South African customs functions and facilities for imported and export goods, including goods moving into southern African. The primary focus of the SEZ is to act as a logistics hub to take advantage of its strategic location on the Durban-Reef corridor and as a link to the Bloemfontein-Cape Town corridor It will also provide aggregated bulk rail logistics for agricultural produce between Bloemfontein and Harrismith, in the Free State, while bulk freight rail services will extend to Newcastle in KwaZulu-Natal. The SEZ will incorporate an intermodal rail and road facility, with specialist transfer infrastructure and associated storage facilities, including cold chain. Its existing road and rail links position the site ideally to service goods flowing to and from the Durban port and to bolster the existing logistics networks. Rail logistics is central to the Maluti-a-Phofung hub’s capabilities. Improving and using the railway network through the hub will also provide long-term funding for the maintenance and expansion of the network in KwaZulu-Natal, Free State and Gauteng. State-owned railway operator Transnet is consequently a key partner in the Maluti-a-Phofung SEZ project. The SEZ aims to reduce logistics costs and enable companies to gain efficiencies, grow and expand and, in so doing, help develop the economies of the provinces. 16 | Service magazine
economy S TSHWANE AUTOMOTIVE SEZ (GAUTENG) Tshwane Automotive SEZ (TASEZ) was initiated by the Ford Motor Company to help expand its automotive footprint in South Africa through the attraction of its global suppliers into the country. This ambition was further enhanced by the Gauteng government’s plan of developing a new Automotive City in Tshwane, and aligns with the SA Automotive Masterplan 2035, which sets targets for us to increase localisation. TASEZ is the outcome of partnerships between the Department of Trade, Industry and Competition, the Gauteng Provincial Government, the City of Tshwane and the Ford Motor Company of Southern Africa. The Automotive Industry Development Centre, a subsidiary company of the Gauteng Growth and Development Agency, has been tasked to deliver TASEZ on behalf of the Gauteng Provincial Government. Artist impression of Tshwane Automotive SEZ “The progress being made at TASEZ is inspiring. The three spheres of government are investing R3.3-billion in infrastructure, which has unlocked R4.3-billion investment by suppliers and a further R15.8- billion investment announced by Ford Motor Company on 8 February. This is the biggest foreign direct investment since the 2010 World Cup. TASEZ will produce over 200 000 vehicles by 2022. “The success of TASEZ has also created a new momentum for the development of the Gauteng-Eastern Cape Freight Rail Corridor, which will be fully operational by 2025. This will facilitate a swift movement of goods out of the Gauteng City Region SEZs, industrial parks and agri-parks, including the much higher volumes of vehicles from Silverton and Rosslyn to the seaports for export.” Premier David Makhura: Gauteng State of the Province Address, 2021 International trade avenue “The development of the Tshwane Automotive SEZ will support the expansion of the incubation centre and contribute more broadly to the development of black industrialists. This initiative is proof that partnership between government and the private sector is vital in driving the development agenda of our country. “This SEZ further aligns with our new district development model, which we call Khawuleza, meaning to hurry up. It seeks to address service delivery and economic development challenges through the synchronisation of planning across all spheres of government, working alongside social partners such as business and the community. A management company owned by the three spheres of government, with board members also drawn from business, will be established to develop and manage this automotive zone. “We are introducing a new approach in the implementation of SEZs to enhance their impact. It includes resolving regulatory hurdles that have been obstacles to investors. Processes such as securing environmental impact authorisations, water-use licences and the like will be fast-tracked. “All three spheres of government will be involved with the private sector in the planning and development of infrastructure. “Project management units at the Development Ban k of Southern Africa will assist in accelerating the roll-out of infrastructure, including bulk infrastructure, factories and warehouses. “The Industrial Development Corporation will assist with the development of business cases for SEZs, securing private investors and conducting due diligence processes on prospective investors. “The Tshwane Automotive SEZ will be developed under this new approach. It will be rolled out in a phased manner on the 162 hectares of land provided by the City of Tshwane. “The existing material benefits of doing so will be multiplied once the African Continental Free Trade Area comes into operation – opening new markets for their goods, products and services.” President Cyril Ramaphosa: Tshwane Automotive SEZ launch, 5 November 2019 S Service magazine | 17
