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Free State Business 2020 edition

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The 2020 edition of Free State Business is the 10th issue of this highly successful publication that, since its launch in 2008, has established itself as the premier business and investment guide for the Free State. The Free State Development Corporation describes its work, including property management and investment support in several articles in this journal. The official launch of the Maluti-A-Phofung Special Economic Zone (MAP-SEZ) was a significant event for the economy of South Africa’s most centrally located province. Business and industrial parks form part of the economic strategy of the province’s planners and details of these facilities are outlined in this journal. In addition, overviews on each of the key economic sectors provide up-to-date information on trends in the manufacturing and tourism sectors, for example. Regular information about the size and nature of each sector is also included. Updated information on the Free State is also available through our monthly e-newsletter, which you can subscribe to online at www.globalafricanetwork.com, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title. The printed journal is distributed internationally on outgoing and incoming trade missions, through trade and investment agencies; to foreign offices in South Africa’s main trading partners around the world; at top national and international events; through the offices of foreign representatives in South Africa; as well as nationally and regionally via chambers of commerce, tourism offices, airport lounges, provincial government departments, municipalities and companies.

OVERVIEW PROFILE

OVERVIEW PROFILE Maluti-A-Phofung SEZ investment opportunities Maluti-A-Phofung Special Economic Zone (MAP SEZ) has been established in terms of the Special Economic Zones Act No. 16 of 2014. The programme is intended to deepen industrial development and improve manufacturing competitiveness in the Maluti-A- Phofung region. Situated in Harrismith and Tshiame in the Eastern Free State, MAP SEZ is strategically located on the N3 national road, halfway between Johannesburg and Durban. MAP SEZ offers 1 038 hectares of land for industrial development. Since the Durban port is the busiest in the southern hemisphere, it therefore means that the N3 carries the majority of the traffic to different locations in South Africa and neighbouring countries such as Lesotho and Swaziland. Through its cross-docking precinct and its logistics and warehousing sectors the MAP SEZ presents itself as a solution to lighten the traffic pressure on the N3. This Special Economic Zone (SEZ) is part of the Free State leg of the massive Durban-Free State-Gauteng logistics and industrial corridor that is intended to strengthen the logistics and transport corridor between South Africa’s main industrial hubs to: • Improve access to export and import markets. • Integrate Free State industrial strategy activities into the corridor. • Create job opportunities and grow the economy within the region. Investor benefits Benefits that will be derived from locating within MAP SEZ include: • 15% corporate tax instead of 28% corporate tax. • Building allowance. • Employment incentive. • Customs controlled area (CCA). • 12i Tax allowance. SEZ project pipeline There are various companies that have signed letters of intent to locate in the MAP SEZ. Some of the sectors targeted for establishment within the MAP SEZ are as follows: • Logistics and distribution. • Agro-processing. • Food processing. • Rail-based container terminal (Transnet Freight Rail). • Starch chemicals. • Biogas. MAP SEZ milestones • MAP SEZ was launched by President Zuma on 25 April 2017 to operate as a Special Economic Zone. • Maluti-A-Phofung SEZ was granted an operator permit in 2017 by the Minister of Trade and Industry after cabinet approval. • Perimeter fencing and lighting have been completed. • Bulk infrastructure roll-out is in progress and is 90% complete. • The SEZ has developed a marketing and promotion pipeline which has attracted 30 potential investors with an estimated investment value of R 2.6-billion and will create approximately 22 130 permanent and temporary job opportunities in the next 5 to 10 years. • Construction of top structures commenced in June 2019. What the MAP SEZ offers • Lots of space – more than 1000ha available to prospective investors. • Long-term lease periods which provide investors an opportunity to recoup investment on infrastructure. • Affordability in the form of concessions offered on rentals. FREE STATE BUSINESS 2018 2020 20

OVERVIEW PROFILE Economic development As part of its mandate, the MAP SEZ is intended to create decent work, transfer of skills and other social economic benefits. In line with this requirement, the MAP SEZ’s robust investment-promotion pipeline will allow the entity to create an estimated 22 130 permanent and temporary job opportunities in the Maluti-A-Phofung region over the next 5 to 10 years. Key MAP SEZ investment pipeline Pork abattoir A Danish investor with more than 30 years’ experience in the pork processing business will establish a pork abattoir in the MAP SEZ. Through the establishment of this abattoir, the investor aims to create jobs, and transfer skills and expertise to the South African job market, and to develop the growing market for pork in South Africa. MAP SEZ priority sectors There are six priority sectors: • Automotive • Agro-processing • Logistics • General processing • ICT • Pharmaceuticals. Agri-park This agri-park project involves the building of a world-class, integrated food processing park which will include food processing, warehousing, cold storage and manufacturing facilities. The agriparks project scheme has been created to promote the upskilling of local farmers and to expose local farmers to the commercial market space. Human hair manufacturer A Chinese hair company has partnered with South African companies to establish a human hair manufacturing plant. The final product will be sold to retail facilities in the local and international market. Inland agri-hub facility This investor intends to develop an inland agro-logistics facility and also to create silos for local farmers. Another leg of this business includes the shipment of grain in and around the Free State Province and the SADC region. TO DISCUSS THESE OPPORTUNITIES, CONTACT: Ms M Setai Manager in the Office of the Chief Executive Officer Maluti-a-Phofung Special Economic Zone Tel: +27 51 4000 800 | Cell: +27 73 210 0935 | Email: maphoka@mapsez.co.za Website: www.mapsez.co.za 21 FREE STATE BUSINESS 2020 2018

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