PROFILE Maluti-A-Phofung
PROFILE Maluti-A-Phofung SEZ Special investment Economic Zone opportunities A The diamond SEZ is booming waiting to with be investment unearthed in to the Free tune State. of R1.1-billon for 2020. MAP SEZ CEO Mpho Mgemane Maluti-A-Phofung The Maluti-a-Phofung Special Special Economic Economic Zone, known Zone (MAP colloquially SEZ) has as the been MAPSEZ, established an in terms initiative of the of the Special South Economic African Zones government Act No supported 16 of 2014. by The the programme Department of is Trade, intended Industry to deepen and Competition industrial (dtic) development to establish manufacturing improve manufacturing opportuni- and competitiveness ties and to create in a regional the Maluti- and A-Phofung international region. trade environment with Since an added the value Durban chain port within the busiest Free State in Province. the southern hemisphere, MAPSEZ it is therefore a subsidiary means of is the that the the Free N3 State carries Development the majority Corporation, an economic development agency operating in the province. In April 2017, the MAPSEZ was officially launched on 1 038 hectares of land and was granted an operator permit by the Department of Trade, Industry and Competition. This Special Economic Zone (SEZ) is of growing the traffic at a to steady different rate locations notwithstanding in South the Africa challenges and neighbouring presented countries by the advent such of as the Lesotho Covid-19 and Swaziland. pandemic. Through In this article its cross-docking you will be precinct presented and with its five logistics reasons and why warehousing you should sectors invest in the the MAPSEZ presents and help itself us grow as a solution the economy to lighten and create the traffic a better pressure life for on all. the N3. This Special Economic Zone (SEZ) is part of the Free State leg of FIVE the REASONS massive Durban-Free WHY YOU SHOULD State-Gauteng INVEST IN logistics THE MAPSEZ and industrial corridor STRATEGIC that LOCATION is intended to strengthen the logistics and transport corridor MAPSEZ between is strategically South located Africa’s main on the industrial N3 commercial hubs to: road corridor • between Ignite the Johannesburg, economy of the region economic through heartbeat industrialisation. of South Africa and • Durban, Attract foreign which houses and direct the busiest investment. port in Sub-Saharan Africa. • Create The access Special to Economic export and Zone’s import location markets. in relation to the major • metropolitan Integrate Free economies State industrial of the strategy country activities and into its easy the corridor. access to • transport Create job infrastructure opportunities make and grow it a haven the economy for businesses within the operating region. in the logistics and warehousing sectors looking for a rest-stop to store their goods between deliveries. MAPSEZ’s location also provides investors easy access to the national transport infrastructure for the conveying of their goods within South Africa. TAX INCENTIVES Several incentives are available to ensure MAPSEZ’s growth, revenue generation and international competitiveness. These incentives include a reduction of the corporate business tax from 28% to 15% for all businesses operating within the SEZ. This is among the many incentives developed by the national government for the benefit of Special Economic Zones and enterprises operating within them. Objectives As VACANT part of LAND its mandate, AND FACTORIES the MAP AVAILABLE SEZ is intended FOR RENTAL to establish manufacturing The SEZ is nestled opportunities on a 1 038ha and of create land a divided regional into and four international precincts trade which environment includes cross with docking added and value-chain a container benefits. terminal. It has also been established Within these to simulate precincts social the and entity economic has numerous benefits vacant and factories regional and large parcels of land available for development lease at preferable and to rates create as a “first mover advantage” for investors a establishing prosperous or trade relocating city their and businesses to the SEZ during its formative functional years. trade ecosystem. Finally, to encourage beneficiation activities that promote value-added benefits and help to create a prosperous trade city and functional trade ecosystem. FREE STATE BUSINESS 2021 2023 20 18
TAILOR-MADE LEASE TERMS The MAPSEZ offers prospective investors various types of lease terms tailor-made to suit their business needs. The investors can either enter lease-only contracts, where they lease the land and construct their own factories on the land or where they choose to renovate existing factories at preferential lease rates. PROXIMITY TO MAJOR AGRICULTURAL PRODUCTION AREAS MAPSEZ is geographically located within one of the country’s biggest farming regions. Potatoes, soybean, sorghum, sunflower and wheat are some of the natural resources cultivated in the eastern Free State. This makes MAPSEZ an ideal investment destination for food processors and other agroprocessing businesses. INVESTMENT PROMOTION The SEZ is also well suited for general manufacturing, offering a convenient production base for light and medium manufacturing operations. With excellent logistics links to the country’s industrial heartland, the Port of Durban and the southern Bloemfontein/Cape Town route, MAPSEZ is an obvious choice for investors seeking cost-effective location to service domestic and export markets. Since inception MAPSEZ has engaged numerous investors and through these engagements has built a pipeline of lucrative local and international investments to the tune of R4.8-billion. From this pipeline MAPSEZ is proud to announce that it has secured investments from five investors to the value of R1.4-billion in various sectors such as agroprocessing, chemical blending and synthetic-hair manufacturing. With the addition of these investors, there are now 23 operating businesses within the SEZ with a total investment value of approximately R5.1-billion. Furthermore, the additional investments have created a total of 162 new jobs, bringing the total number of jobs created within the SEZ to approximately 1 288. MAPSEZ is now gaining momentum in terms of attracting local and foreign investors and is supported by its healthy investment pipeline which will create an estimated 1 431 new jobs. Get in touch with our team and let’s see how we can grow the economy while creating meaningful job opportunities for communities. ■ CONTACT: Maphoka Setai: Investment Promotion Manager Cell: +27 78 800 2162 | Email: maphoka@mapsez.co.za Website: www.mapsez.co.za 19 FREE STATE BUSINESS 2023
