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Opportunity Issue 100

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Opportunity magazine is a niche business-to-business publication that explores various investment opportunities within Southern Africa’s economic sectors and looks to provide its readers with first-hand knowledge about South African business. Opportunity also looks to present South African business to international markets that may have interests in investing in South Africa. The publication is endorsed by the South African Chamber of Commerce and Industry (SACCI).

08 November 2021 SPECIAL

08 November 2021 SPECIAL ECONOMIC ZONE Why business locate in the FTSEZ Outstanding incentives and world-class facilities. Fetakgomo-Tubatse SEZ provides a secure business environment and is designing a world-class manufacturing and logistics platform that will be positioned to support transportation efficiencies through road, rail and heliport connectivity to ports and border posts. As part of the SEZ Master Plan, the environmental impact assessment (EIA) is expected to be ready for 2022. A number of infrastructure new builds and upgrades are underway, including: security and site clearance; state-of-the-art top infrastructure; water provision; reliable road and rail network; extension of rail link to the SEZ industries and to the Musina-Makhado SEZ (Beit Bridge); electricity substation designs underway for substation; upgrading of roads and building of a new steel bridge; engineering works for piping water from the De Hoop Dam to the SEZ site. Identified Cluster Opportunities Agro-processing Development of ICT infrastructure Mineral Beneficiation • Chrome, platinum group metals, iron ore and magnetite • Development of platinum refinery Green Energy • Production of solar and biomass energy • Hydrogen energy from fuel cells as part of the South African Hydrogen Valley led by the Department of Science and Innovation Tubatse SEZ – Getting Platinum Moving- A world centre of excellence for PGMs.” Fetakgomo-Tubatse SEZ, as depicted in the SEZ Master Plan. DSI | Turner & Townsend | LEDA Manufacturing • Production and refurbishment of batteries • Auto-catalysts • Green energy automotive components and electric vehicles (manufacture and assembly) • Trucking components • Mining machinery, equipment and components Why businesses locate to the FTSEZ • Enabling infrastructure and warehouses • Close proximity to mining operations • Carbon credits • Reduced carbon tax • Reliable and low-carbon green energy • Global leadership in production of chrome and huge resources of platinum group metals • Land and security Generic SEZ incentives • Vat and customer relief • Employment tax incentives • Building allowance • Reduced corporate income tax (15% corporate tax) • 12i tax allowance and incentives • One Stop Shop Facility Distances to key points • Port of Maputo (Mozambique) 380km • Port of Richards Bay 600km • Musina Beit Bridge Border Post 400km 4 Water, roads and rail: infrastructure projects are underway The Fetakgomo-Tubatse Special Economic Zone received from the Limpopo Department of Economic Development, Environment and Tourism an allocation of R35-million (FY 2021/22) which was earmarked for the following activities and projects: District Skills Audit, environmental impact assessments (EIAs), township establishment (land rezoning), engineering designs and costing for the perimeter fence, site clearance, Eskom cost estimation and acceptance of quote, engineering designs for an Eskom switching station, water allocations (assessment of demand per industry), an Implementation Readiness Study and engineering designs. The whole R35-million is committed to the enlisted projects. Existing and current projects in the District Project Value Responsible institution Status Steelpoort Wastewater Treatment Works Steelpoort Water Treatment Works Ga-Malekana Water Treatment Works upgrade R70-million DBSA/Sekhukhune District Municipality Existing WTW on private land. Construction at Steelpoort. R65-million DBSA Complete. R121-million Sekhukhune District Municipality Technical report approved; planning stage. R37 and R555 main roads R2-billion SANRAL Underway. Steelpoort railway siding Not given Transnet Initiation phase. Regional External Master Plan R1.6-million Sekhukhune District Municipality Initiation phase. Steel Bridge upgrade R70-million Roads Agency Limpopo and mining companies Initiation phase. SEZ human settlement scoping report Not given CoGHSTA/HDA Underway.

The Tubatse Hydrogen Valley and Mineral Beneficiation Journey Construction Phases of FTSEZ SPECIAL ECONOMIC ZONE The Fetakgomo-Tubatse SEZ will cover a total area of 1 220ha of land. Phase 1 consists of 316ha which is reserved mainly for a mix of light and heavy industrial use and other hydrogen energy related uses, while Phases 2 and 3 will be developed in line with market demands and will include: • Renewable energy • Heavy industry • Additional light industry space • Mixed use and residential More than six tenants have already committed to setting up operations for Phase 1 implementation in chrome-related beneficiation, hydrogen energy components assembly, electric vehicles, solar energy and pharmaceuticals. FTSEZ Implementation Approach Phase 1: West of R555: Integrate the 36ha Mining Integrated Supply Park (MISP), set up top infrastructure, fence and clear 280ha site. Anchor Investments: Input manufacturing suppliers and green vehicle components cluster. Phase 2: East of R555: Clear site and fence the 980ha site and provide bulk services and begin housing development. Anchor investments: Renewable energy companies, smelter and refinery and chrome products. Phase 3: Design and build a logistics hub for export markets. Just-on-time delivery and efficiencies. Anchor investments: Logistics Hub Station with a strong 4IR platform. Deputy Minister meets with private sector and assesses progress National government’s robust industrialisation agenda is reflected in the SEZ programme. The Deputy Minister of Trade, Industry and Competition, Mr Fikile Majola, conducted an oversight visit to the proposed Fetakgomo-Tubatse Special Economic Zone in Steelpoort, Limpopo, in October 2021. Deputy Minister Majola was joined by the MEC for Economic Development, Environment and Tourism in Limpopo, Mr Thabo Mokone, MEC for Finance in Limpopo, Mr Seaparo Sekwati, the Executive Mayor of Sekhukhune District Municipality, Councillor Stanley Ramaila, and the Acting Mayor of Fetakgomo-Tubatse Local Municipality, Councillor Hlatsoayo. The purpose of the oversight visit was to assess progress registered in the implementation of the proposed Special Economic Zone (SEZ) project and to meet with potential private sector partners. According to Mr Majola, the visit was part of a consultative process on the SEZ Programme. Information on the new approach in the implementation of the programme was also shared. “This new approach encourages collaborative engagements through which the implementation of the SEZ Programme is aligned with national, provincial and local objectives, as well as planning strategies to maximise synergies and promote cooperation. This will result in provinces and municipalities benefiting from strong National Government support in areas of limited capacity,” said Mr Majola. He added that the South African Government was seeking to transform the economy into a globally competitive economy, built on the full potential of all citizens and regions. “To achieve this, the government is driving a robust industrialisation agenda supported by Spatial Industrial Development Programmes such as the SEZ Programme. Our department is driving the SEZ Programme as one of the strategic interventions to catalyse economic and industrial development in the country,” he added. Solly Kgopong, Executive Manager Solly Kgopong is the Executive Manager of the Fetakgomo- Tubatse SEZ. Before joining the Department for Economic Development, Environment and Tourism, he was General Manager of Absa Bank. His work experience started as Business Analyst at Trade and Investment Limpopo until he became Executive Manager Strategic and Economic Planning. During this period, Solly was a part-time lecturer at the University of Limpopo. A USA-Mandela Scholar Alumni, Solly holds a MSc in Economics degree from the Ohio State University. He was recently seconded to Head the Fetakgomo-Tubatse SEZ Project Management Unit by the Provincial Government. Contact details: Tel: 082 455 4220 | Email: Solly.Kgopong@lieda.co.za Bunjiwe Gwebu, Project Executive Bunjiwe Gwebu is the Project Executive for the Fetakgomo- Tubatse Special Economic Zone, having joined the Limpopo Economic Development Agency in 2014 when the Special Economic Zones programme was being rolled out nationally. She is an Economic Development Specialist who holds a Master’s in Development Studies from the University of KwaZulu-Natal. She has held positions at executive and senior management levels in government and nongovernmental institutions such as eThekwini Municipality, Slum Dwellers International, uTshani Fund and the Housing Development Agency where she was responsible for strategy, programme planning and management, implementation and monitoring and evaluation. Contact details: Tel: 076 521 5077 | Email: Bunjiwe.Gwebu@lieda.co.za

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