10 INVESTMENT ZONE
10 INVESTMENT ZONE MALUTI-A-PHOFUNG SPECIAL ECONOMIC ZONE A diamond waiting to be unearthed in the Free State. The Maluti-a-Phofung Special Economic Zone (MAPSEZ) is located in Harrismith, a town nestled in the Maluti-A-Phofung Local Municipality, in the eastern part of the Free State. MAPSEZ is a multi-sector Special Economic Zone dedicated to both light and heavy manufacturing, logistics and warehousing operations. MAPSEZ has undertaken to establish manufacturing opportunities and to create a conducive regional and international trade environment. The SEZ aims to accelerate the generation of new and innovative economic activities and to encourage beneficiation activities that promote value-added benefits, thus creating a prosperous trade city and functional trade ecosystem. As a value proposition, the MAPSEZ offers investors the benefits from tax and VAT incentives and an ideal location. MAPSEZ CEO: Mpho Mgemane
11 TAX INCENTIVES Several incentives are available to ensure investor growth, revenue generation and international competitiveness. These incentives include a reduction of the corporate tax from 28% to 15% for all qualifying 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. SMME SUPPORT MAPSEZ recognises the important role that SMMEs play in contributing to South Africa’s economic development. SMMEs are diverse businesses operating in the trade, agri-business and manufacturing sectors. As such, the SEZ promotes their participation in the value chain of new investors through value-added benefits, ie by-products for beneficiation and services. Additionally, the SEZ has established a block of smaller factories, in the 200m² to 400m² range, dedicated strictly to SMMEs in the trade and manufacturing sectors. MAPSEZ continues to gain momentum in terms of attracting local and foreign investors. Get in touch with our team and let’s explore how we can help your business reach further heights. STRATEGIC LOCATION The Free State Province, which is where the SEZ is situated, borders six of the nine provinces in South Africa, which provides an added benefit for investors seeking to service domestic markets. It is centrally located on the N3 commercial road corridor between Johannesburg (the economic heartland of South Africa) and Durban, the busiest port in Sub-Saharan Africa. The SEZ’s location in relation to the major metropolitan economies of the country as well as other Southern African Development Community (SADC) countries makes it an ideal choice for investors seeking cost-effective location for import and export oriented operations. The SEZ also has excellent logistics links to the southern Bloemfontein-Cape Town route via the N5 corridor. This linkage also provides a direct route to the Kingdom of Lesotho. Its proximity to some of the major agricultural areas of the country makes it an attractive investment destination for food producers and processors. CONTACT DETAILS Maphoka Setai: Investment Promotion Manager Tel: +27 78 800 2162 Email: maphoka@mapsez.co.za Website: www.mapsez.co.za
