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Gauteng Province Investment Prospectus 2025

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22SOUTHERN CORRIDORTHE

22SOUTHERN CORRIDORTHE SOUTHERN DEVELOPMENT CORRIDORMulti-billion-rand investments are setting the scene for industrial revival.Sedibeng District Municipality is located in the southern part ofGauteng Province, sharing boundaries with the Free State andMpumalanga provinces. Within Gauteng it shares its borders withWest Rand District Municipality on the western side, and the City ofEkurhuleni and City of Johannesburg metropolitans in the northeasternand northern parts respectively.The catalytic project for the Southern Development Corridor isthe Vaal Special Economic Zone (Vaal SEZ), to be developed asa multi-sector, multi-site zone stretching over the whole of theSedibeng District.VAAL SEZThe objective of the Vaal SEZ is to create a seamless, integratedand socially cohesive society with sustained economic growth thatwill result in the creation of quality jobs.The vision of the Vaal SEZ is to “Reignite the birthplace ofindustrialisation in South Africa”. The strategic intent is to:• Contribute to the re-industrialisation and rejuvenation of theVaal economy.• Facilitate a stable environment for business to invest, becompetitive and profitable to create sustainable jobs.• Develop and upgrade infrastructure to overcome the currentbacklogs to stimulate investment that will enable economic growth.• Promote the export of goods and services from the region.• Promote investment from both domestic and foreign sources.• Support skills development in line with the requirements of business.The above will become a reality when government and industrywork collaboratively to regenerate the area and support a new localeconomic vitality that captures and builds on the historic competitivestrengths and skills base of this region.The Vaal SEZ’s mission is to attract both domestic and foreigninvestment across multiple sites located in the Emfuleni, Midvaal andLesedi local municipalities.The three local municipalities which make up the Sedibeng DistrictMunicipality are predominantly rural. Farm lands comprise about88.3% of the available land area of the district.Midvaal is the most rural of the three local municipalities, with urbandevelopment concentrated along routes R59 and R82 in the northwesternparts of the municipal area. Midvaal has strong regionallinkages to major economic cores of Johannesburg, Ekurhuleni andthe Vereeniging-Vanderbijlpark complex. These include routes R59and R82 and the Vereeniging-Germiston railway line. The Heinekenbrewery is an important manufacturer within the municipality.Lesedi is also primarily rural, with the major urban concentrationlocated in Heidelberg/Ratanda nodes, along the N3 freeway at itsintersection with Provincial Route R42, east of the SuikerbosrandNature Reserve. Heidelberg is the seat of the municipality. The district

does not host any major economic development initiative, although it iscontiguous to the Gauteng economic heartland of City of Johannesburg.Emfuleni in the west is home to the towns synonymous withsteel, Vanderbijlpark and Vereeniging, and the Sasol petrochemicalcomplex to the south of Sedibeng in the Free State Province.INVESTMENT COMMITMENTSSince its inception, the Vaal SEZ has secured over R8-billion ininvestment commitments, of which R2.8-billion was secured in the2023/24 financial year, exceeding the annual target of R2-billion.Four investors are planning to break ground within the short term.The four priority investments are:• A company that will manufacture fuels cells and is expected tocreate 450 direct jobs.• A composite LPG-cylinder-manufacturing company which isexpected to create 550 direct jobs.• A chlor-alkali plant which will create a total of 100 direct jobs.• A hydrogen production plant (H2 power generation plant, fuel-cellrefill exchange, H2 storage and trading) that is expected to create175 direct jobs.EIA AND TOWNSHIP ESTABLISHMENTIn the first quarter of the 2023/24 financial year, a service providerwas appointed to carry out EIA and Township Establishment processeson two land parcels in the SEZ, namely Farm Reitspruit (locatedin the Emfuleni Local Municipality) and Heidelberg x24 (in the LesediLocal Municipality). Reitspruit’s EIA is expected to be approved inthe first quarter of 2024/25 financial year while Heidelberg’s EIAhas been approved. The Town Planning Township Proclamation forHeidelberg x24 was expected by May 2024 and in November 2024for the Reitspruit site.BULK INFRASTRUCTUREA motivation for a capital requirement of R1.2-billion over the mediumterm expenditure framework (MTEF) period was submitted toProvincial Treasury to be presented at the Provincial Budget Councilin the third quarter of the 2023/24 financial year. The province hasnot confirmed in writing the extent of its contribution towards bulkinfrastructure and operational costs of the SEZ. A commitment fromthe province will assist in accelerating the SEZ designation process.The Vaal SEZ applied to Infrastructure SA (ISA) for an amount ofR20-million to complete the remaining project preparation scopewhich was successful. The funding that was secured will assist inproject preparation for additional land parcels that require specialiststudies and various authorisations to be ready for the investmentsin the pipeline.LAND READY FOR INVESTMENTEmfuleni Local Municipality: 700ha of land in Vanderbijlpark approximately3km from the Arcelor Mittal plant for potential use ashydrogen valley innovation hub, manufacturing of renewable energycomponents and vehicles and battery storage, boat building, VaalAerotropolis and Vaal River City.Midvaal Local Municipality: A total of 1 730ha of land in five landparcels for potential use for medicinal cannabis; agro-processing,waste-to-energy and agrivoltaics.Lesedi Local Municipality: A total of 200ha of land in two land parcelswith potential for manufacturing, agro-processing, logistics andwaste-to-energy.Contact detailsTelephone: +27 16 001 0829Email: info@vaalsez.co.zaWebsite: www.vaalsez.co.za

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