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Free State Business 2021

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The 2021 edition of Free State Business is the 11th issue of this successful publication that, since its launch, has established itself as the premier business and investment guide for the Free State. The Free State has varied investment and business opportunities and the Free State Development Corporation describes some of these in detail in these pages. Drilling for natural gas is a new phenomenon which may spark activity in other sectors and this journal notes significant new investments and projects in the chemicals and mining sectors. 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. Located on the strategically significant N3 highway that links the economic heartland of South Africa to the coast, the MAP SEZ has the potential to attract new investors and spark a revival in the manufacturing sector. In addition, overviews on each of the key economic sectors provide up-to-date information on trends in the mining and tourism sectors, for example. Regular information about the size and nature of each sector is also included.


OVERVIEW PROFILE PROFILE Maluti-A-Phofung Maluti-A-Phofung SEZ SEZ investment investment opportunities opportunities The SEZ is booming with investment to the tune of R1.1-billon for 2020. Maluti-A-Phofung Special Economic Zone SEZ project pipeline (MAP SEZ) has been established in terms There are various companies that have signed of the Special Economic Zones of Act the No. traffic letters to different of intent locations to locate in South in the Africa MAP and SEZ. neighbouring Some of 16 of 2014. The programme is intended countries such the as sectors Lesotho targeted and Swaziland. for establishment Through its within cross-docking the to deepen industrial development and precinct improve and MAP its logistics SEZ are as and follows: warehousing sectors the MAP SEZ manufacturing competitiveness in the Maluti-A- presents itself • as Logistics a solution and to lighten distribution. the traffic pressure on the N3. Phofung region. This Special • Agro-processing. Economic Zone (SEZ) is part of the Free State leg Situated in Harrismith and Tshiame in the of Eastern the massive • Durban-Free Food processing. State-Gauteng logistics and industrial Free State, MAP SEZ is strategically located on corridor the N3 that • is Rail-based intended to container strengthen terminal the logistics (Transnet and Freight transport national road, halfway between Johannesburg corridor and between Rail). South Africa’s main industrial hubs to: Durban. MAP SEZ offers 1 038 hectares of • land Ignite for the economy • Starch of chemicals. the region through industrialisation. • Attract foreign and direct investment. industrial development. • Biogas. • Create access to export and import markets. Since the Durban port is the busiest in the • Integrate Free State industrial strategy activities into the corridor. southern hemisphere, it therefore means that the N3 MAP SEZ milestones • Create job opportunities and grow the economy within the region. carries the majority of the traffic to different locations in South MAP Africa SEZ and CEO neighbouring Mpho Mgemane countries such as Lesotho and Swaziland. Through its cross-docking precinct and its logistics and warehousing sectors • 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 Maluti-A-Phofung the MAP SEZ presents Special itself Economic as a solution to lighten the traffic pressure Zone the (MAP N3. SEZ) has This Special Economic been established Zone (SEZ) is in part of the Free State leg terms of the of massive the Special Durban-Free Economic State-Gauteng logistics Zones and Act industrial No 16 corridor of 2014. that The is intended to strengthen programme the logistics intended and transport to corridor between deepen South industrial Africa’s main development industrial hubs to: • Improve and access improve to export manufacturing and import markets. • Integrate competitiveness Free State industrial the Maluti- strategy activities into A-Phofung the corridor. region. Objectives approximately 22 130 permanent and temporary • Create job Since opportunities the Durban and port grow is the economy As part of its mandate, job opportunities the MAP in the SEZ next is intended 5 to 10 years. to establish within the the busiest region. in the southern hemisphere, it therefore means Investor that benefits the N3 carries the majority manufacturing • opportunities Construction and of top create structures a regional commenced and international trade environment June with 2019. added value-chain benefits. It has also been established to simulate social and economic benefits and regional Benefits that will be derived from locating within What the MAP SEZ offers development and to create MAP SEZ include: • Lots of space – more a than prosperous 1000ha available trade city to and • 15% corporate tax instead of 28% corporate tax. prospective investors. functional trade ecosystem. • Building allowance. • Long-term lease periods Finally, which provide to investors encourage • Employment incentive. an opportunity to beneficiation recoup investment activities on that • Customs controlled area (CCA). infrastructure. promote value-added benefits • 12i Tax allowance. • Affordability in the form and of help concessions to create a offered prosperous on rentals. trade city and functional trade ecosystem. FREE STATE BUSINESS 2018 2020 FREE STATE BUSINESS 2021 20 20

PROFILE Priority sectors Some of the many MAP SEZ priority sectors are: • Automotive • Agro-processing • Logistics • General processing • ICT • Pharmaceuticals. From this pipeline MAP SEZ is proud to pronounce that it has secured investments from five investors to the value of R1.1-billion in various sectors. The operations of these investors were established in June, September and November 2020. These investors are a source of great pride for the MAP SEZ as they have created 103 jobs since the start of their operations and are projected to create 466 jobs collectively, once they are fully operational. The MAP SEZ is now gaining momentum in terms of attracting local and foreign investors and is supported by its healthy investment pipeline of approximately R3.2-billion, which is project-ed to create 12 000 work opportunities. ■ Investor benefits Some of the many investor benefits that can be derived from locating within MAP SEZ include but are not limited to the following: • 15% corporate tax instead of 28% corporate tax. • Building allowance tax. • Employment incentive tax. • 12i tax allowance. MAP SEZ milestones Maluti-A-Phofung SEZ was granted an operator permit in 2017 by the Minister of Trade, Industry and Competition after cabinet approval. MAP SEZ was gazetted as a Special Economic Zone on 2 June 2017 and its tax incentives were gazetted on 6 July 2018. SEZ project pipeline Since inception the MAP SEZ has engaged numerous investors and through these engagements has built a pipeline of lucrative local and international investments to the tune of R2.3-billion. Contact details Any investor interested in establishing their business within the SEZ can 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: | Website: 21 FREE STATE BUSINESS 2021

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