FOCUS Special Economic
FOCUS Special Economic Zones can be transformative Among the paucity of realistic intervention options, SEZs offer an opportunity to attract investment and build manufacturing capacity. Artistic impression. Credit: MMSEZ Since the beginning of 2020, humanity was thrown into a tinderbox of tension characterised by anxiety, fear, frustration, agony, pain, anger and hopelessness. Status and class are unable to provide a shield to protect the elite and privileged and the working class are as hard-pressed as ever. The game of numbers and statistics, globally and nationally, has lost effect as daily shocks have become an integral feature of the new normal. The invisible enemy has struck again indiscriminately across the globe, affecting all nationalities, races, genders and classes. The fear of an imminent apocalypse as a consequence of climate change and natural disasters has been superseded by the catastrophe of a novel pandemic. A need to reinterpret the world We have observed airplanes grounded at airports across the globe, boats and oil tankers stranded outside harbours, the finest hotels deserted, and yet hospitals are overflowing. Humanity has entered a new paradigm. Life as we know it has drastically changed. Economic engines across global metropolises have taken an involuntary break and social distance separates families and prevents general human contact. One of the most quoted phrases by Karl Marx from his seminal work Thesis Eleven is “philosophers have hitherto only interpreted the world in various ways, the point is to change it”. Perhaps the time has come for modern philosophers to reinterpret the world concomitant with the process of changing it. Global economic meltdown Some economic commentators have asserted that the impact of Covid-19 on the world economy may be worse than the 1929 Great Depression and the 2009 Global Financial Crisis. According to Golding and Muggah (2020), it is estimated that the Covid-19 crisis will lead to losses exceeding -trillion or 10% of global GDP. As for the African continent, UNECA estimates that the continent’s growth is expected to drop from 3.2% to 1.8%. It also estimates a 48% decline in employment. The time for planning for a repackaged LIMPOPO BUSINESS 2020/21 18
MMSEZ SPECIAL FEATURE A world of game-changing opportunities What is Musina-Makhado Special Economic Zone (MMSEZ)? The Musina-Makhado SEZ is a flagship initiative of the Limpopo Provincial Government implemented through the Musina-Makhado SEZ SOC in partnership with a Chinese Operator, Shenzhen Hoi Mor Resources Holding Company Ltd. The MMSEZ as an economic development tool aims to promote national economic growth and exports by using support measures in order to attract targeted foreign and domestic investments, research and development (R&D) and technology transfer. Where is the MMSEZ located? The Musina-Makhado SEZ is located in the vicinity of the Beit Bridge Border Post which is one of the busiest ports of entry in SA and an undisputable gateway to the South African Development Community (SADC) countries. The MMSEZ has the potential to become an inland intermodal terminal, facilitated by its anchor along the North-South Corridor, and directly connecting to the country’s major ports through both N1 road and the Johannesburg- Musina railway line, for the trans-shipment of sea cargo and manufactured goods to inland destinations and the SADC markets. MUSINA-MAKHADO SEZ CLUSTERS • Metallurgy (Minerals Beneficiation) • Energy Generation • Manufacturing • Agro-Processing • Logistics WHAT ARE THE INCENTIVES FOR INVESTING IN THE MMSEZ? • Preferential corporate tax • Building allowance and tax relief • Employment tax incentive • Customs-controlled area tax relief • Rental space discounts • Readily available infrastructure • Sufficient land for greenfield projects • Access to agricultural & mineral resources • Easy access to the up-north (SADC) market • Accessible logistics support for the movement of goods POTENTIAL INVESTMENT OPPORTUNITIES IN AND OUTSIDE THE MMSEZ ENERGY & METALLURGY Power Plant Steel Plant Stainless Steel Plant Coking Plant Pig Iron Plant Ferromanganese Plant Ferrochrome Plant Chrome Plating Lime Plant AGRO-PROCESSING Food Processing Facility Fresh Produce Handling Canning Facility Cotton Beneficiation Timber Processing LOGISTICS Logistics Services Warehousing Distribution Container Yard Vehicle Distribution Cold Storage Bonded Warehouses INFRASTRUCTURE Construction Services Engineering Services Real Estate Development Retail Property Hospitality Facilities Building Materials Manufacturing and Supply MANUFACTURING Light Industries Basic Assembly Automotive Manufacturing Electromechanical Operations OE Manufacturing Component Manufacturing Fertilisers Agro-chemicals Petro-chemicals ICT Solutions Furniture Manufacturing Packaging Services CONTACTS MUSINA-MAKHADO SEZ SOC 29 Market Street, Polokwane, Limpopo Province (RSA) MS TSHAMAANO MAKUYA MR RICHARD ZITHA Stakeholder Relations Manager Project Executive Tel: +27(0) 15 295 5120 Tel: +27(0) 15 295 5120 Cell: +27 (0)67 411 9192 Cell: +27 (0)71 391 8188 Tshamaano.Makuya@lieda.co.za 19 LIMPOPO Richard.Zitha@lieda.co.za BUSINESS 2020/21
