A unique guide to business and investment in South Africa. Welcome to the 11th edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by a website at www. southafricanbusiness.co.za.
A special feature in this journal focusses on the importance of partnerships as the way forward for the country’s growing number of Special Economic Zones. There are now SEZs in eight provinces and collaboration between the private sector and government and its agencies is proving a crucial element in pursuing the goal of industrializing the South African economy. These zones intended as catalysts for economic growth in established sectors and in stimulating new industries.
Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provinces. The fact that South Africa’s law-enforcement agencies are arresting people alleged to have been involved in state capture and the Reserve Bank has started freezing assets in other matters leads the national overview because business can’t function properly without the rule of law.
South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed online at www.globalafricanetwork.com. These unique titles are supported by a monthly business e-newsletter with a circulation of over 35 000. Journal of African Business joined the Global African Network stable of publications as an annual in 2020 and is now published quarterly.
INVESTMENT The
INVESTMENT The Musina-Makhado Special Economic Zone is attracting investment Both private and public institutions have committed funds and a mining company is engaged in a partnership. The Musina-Makhado SEZ (MMSEZ) is intended as a catalyst for massive future investment in the region and support of industrialisation and economic growth. The MMSEZ has already attracted significant investment from public and private investors and a strong pipeline of further investment is envisaged. Government Major investments in infrastructure are being provided by the Provincial Government of Limpopo through the Limpopo Department of Economic Development, Environment and Tourism (LEDET). Of R600-billion pledged to develop infrastructure for the North Site of the MMSEZ over the mediumterm expenditure framework (MTEF), some R39- million has been spent to date on engineering work and the 2022/23 financial year will see a further allocation of R200-million for items such as security, water and electricity infrastructure. The entity which has been created to run the SEZ, the MMSEZ state-owned-company (MMSEZ SOC), is responsible for coordinating investments and guiding the process towards the realisation and functioning of the Special Economic Zone. Partnerships The local Technical Vocational and Educational and Training college, Vhembe TVET College, is investing in establishing a campus in Musina to complement the development of the SEZ. A satellite campus was originally established but through a partnership between the MMSEZ SOC and Vhembe TVET the engineering campus will relocate to a site within the SEZ site. De Beers will support the graduates with on-thejob training. The SEZ will thus be supporting the skills profile of the district and combining skills development and industrial development. Additional investments in student accommodation and retail outlets to support the student population will further enhance the diverse offering within the SEZ. Having a tertiary college located within the SEZ will form an important first building block towards creating a Smart City in Musina. Private sector The investment value of the 1 000MW Solar Power Plan to be constructed in the SEZ is valued by the provincial government at US.5-billion. The project is being undertaken by Huadian Hong Kong Ltd, the company that has signed a Memorandum of Understanding (MoU) with LEDET. Eskom has started with the inception and scoping report for bulk electricity infrastructure of the MMSEZ, which will connect the power plant to the grid. ■ FURTHER INVESTMENT OPPORTUNITIES OUTSIDE THE ZONE Real estate Retail | Hotels Private hospital General manufacturing Agro-processing | Warehousing | Industrial property Petroleum depot INSIDE THE ZONE Renewable energy Office park | Hotel | Student accommodation Real estate ICT Musina dam Cross-border trade Airport development | Education and training Entertainment
MMSEZ SPECIAL FEATURE A world of game-changing opportunities What is the Musina-Makhado Special Economic Zone? What is Musina-Makhado Special Economic Zone (MMSEZ)? MUSINA-MAKHADO SEZ CLUSTERS The What MMSEZ is the is Musina-Makhado a flagship initiative Special Economic of the Limpopo Economic Zone? Provincial Zone? MUSINA-MAKHADO SEZ CLUSTERS The Musina-Makhado SEZ is a flagship initiative of the Limpopo • Metallurgy (Minerals Beneficiation) Government. The Musina-Makhado MMSEZ The is a North flagship SEZ Site is initiative wholly a flagship owned of initiative the and Limpopo operated of the • Metallurgy (mineral beneficiation) Provincial Government implemented through the Musina-Makhado • Energy Generation by Limpopo Provincial the MMSEZ Provincial Government SOC. The Government South implemented Site is implemented operated through by through the through MMSEZ the • Energy generation SEZ SOC in partnership with a Chinese Operator, Shenzhen Hoi the SOC, Musina-Makhado partnership with SEZ with a SOC SEZ Chinese a Chinese MMSEZ partnership operator, Operator, SOC Shenzhen in with partnership Shenzhen a Chinese Hoi Mor • Manufacturing • Manufacturing Resources Operator, with Hoi Mor Mor Resources a Chinese Resources Holding Shenzhen Holding Operator, Company Holding Hoi Company Mor Ltd. Shenzhen Company Resources Ltd. The Hoi Ltd. Holding MMSEZ Mor Resources Company as an economic • Agro-processing • Agro-Processing Ltd. Holding development The MMSEZ Company tool is as aims an Ltd. economic to The promote MMSEZ tool development national that as aims an economic tool economic promote aims growth to • Logistics • Logistics promote development national and exports economic national by tool using economic growth aims support to and promote growth measures exports and national in by exports order using economic to by support attract using targeted support growth measures foreign and measures in domestic order exports to in attract by order investments, using to targeted attract support research foreign targeted measures and foreign development domestic in order and MMSEZ INVESTMENT WHAT ARE THE INCENTIVES FOR domestic to investments, (R&D) attract and investments, targeted technology research foreign and transfer. research development. and and domestic development. investments, research and development. Where is the MMSEZ located? • • • Preferential INVESTING corporate IN THE tax MMSEZ? Building • Preferential allowance corporate and tax tax relief Employment • Building tax allowance incentive and tax relief Investment The Musina-Makhado opportunities SEZ is located Investment in the vicinity of the Beit • inside Bridge the Border zones: zone: Post which is one opportunities of the busiest ports outside of entry in • SA • and Industrial an undisputable infrastructure gateway to the zones: zone: SouthAfrican Development • • Community Corporate offices (SADC) countries. The • MMSEZ Real estate has the potential to • • become Logistics an services inland intermodal terminal, • Retail facilitated and hotels by its anchor • • along Petroleum the North-South supply Corridor, • and Schools directly and connecting airport to the • Customs-controlled • Employment tax area incentive tax relief Rental • Customs-controlled space discounts area tax relief Readily • Rental available space infrastructure discounts Sufficient • Readily land available for greenfield infrastructure projects Access • Sufficient to agricultural land for and greenfield mineral projects resources Easy access • Access to to the agricultural up-north & mineral (SADC) resources market • country’s Industrial major chemicals ports through both • Health N1 road and the Johannesburg- • Accessible • Easy logistics access to support the up-north for the movement (SADC) market of goods Musina railway line, for the trans-shipment • Entertainment of sea cargo and • Accessible logistics support for the • Musina Dam manufactured goods to inland destinations and the SADC markets. movement of goods POTENTIAL INVESTMENT OPPORTUNITIES IN AND OUTSIDE THE MMSEZ ENERGY & METALLURGY Power Plant Iron and Steel Plant Stainless Steel Plant Ferromanganese Plant Ferrochrome Plant Chrome Plant Lime Plant AGRO-PROCESSING Food Processing Facility Fresh Produce Market Canning Facility Cotton Beneficiation Timber Processing LOGISTICS Logistics Services Warehousing Distribution Container Yard Vehicle Distribution Cold Storage Bonded Warehouses INFRASTRUCTURE Construction Services Engineering Services Re al Estate Development Retail Property Hospitality Facilities Bu ilding Materials Manufacturing and Supply MANUFACTURING Light Industries Basic Assembly Automotive Assembly Electromechanical Operations Component Manufacturing Fertilisers Agro-chemicals Petro-chemicals ICT Solutions Furniture Manufacturing Packaging Services CONTACTS MS TSHAMAANO MAKUYA MR RICHARD ZITHA Contact MUSINA-MAKHADO details SEZ SOC Ms Tshamaano Stakeholder Makuya, Mr Richard Zitha, Project Executive Executive Relations Manager Project Executive Musina-Makhado Makhado SEZ SOC Stakeholder Relations Manager Cell: Investment +27 071 391 Promotion 391 8188 Address: 29 93 Market Biccard Street, Street, Cell: +27 067 Tel: 411 +27(0) 411 9192 15 295 5120 Email: Cell: +27 R.Zitha@mmsez.co.za Tel: 71 +27(0) 391 8188 15 295 5120 Polokwane, Limpopo Polokwane, Email: T.Makuya@mmsez.co.za Cell: +27 (0)67 411 9192 Email: R.Zitha@mmsez.co.za Cell: +27 (0)71 391 8188 Province, Limpopo RSA Province (RSA) Tshamaano.Makuya@lieda.co.za 19 LIMPOPO Richard.Zitha@lieda.co.za BUSINESS 2020/21
