South African Business 2017 edition

SPECIAL FEATURE

SPECIAL FEATURE R150-billion, will generate 1 000MW in its first phase. Forty renewable projects have already been approved in the Northern Cape with the majority of projects (27) using the solar photovoltaic method with just seven using the concentrated solar power (CSP) technology. The Northern Cape is also home to five approved wind farms and one small (10MW) hydroelectric project on the Orange River. allowance, employment incentives and the fact that an SEZ is a customs-controlled area. Specific incentives relating to energy savings and reductions in environmental impact are available, both from Eskom and the dti. Within the dti's Manufacturing Competitiveness Enhancement Programme, there is a Green Energy Efficiency Fund, all of which are designed to make (the right kind of) investment more attractive. New zones Upington, Northern Cape The 400ha site of the Upington SEZ in the Northern Cape Province is close to the regional airport and is well served by access roads. One of the goals is to capitalise on the already existing (and fastgrowing) solar power industry by promoting special investment packages to investors in that field, and encouraging the development of skills and services to support that sector within the SEZ. Feasibility plans are being done by Eskom on building a massive solar park that will generate an eighth of the county's electricity needs – 5 000MW – near Upington. Sixteen square kilometres of land have been identified and Eskom is looking for private partners. The park, which will cost more than Maluti-A-Phofung, Free State The Maluti-A-Phofung Special Economic Zone takes advantage of the strategic position Harrismith holds in the Free State's north-eastern corner. The N3 highway carries huge volumes of cargo between Gauteng and the ports of KwaZulu-Natal so it is logical that the first focus of this SEZ is logistics. Over and above the Gauteng-KwaZulu-Natal route, another logistics axis extends between Harrismith and Bloemfontein for the delivery of products by rail and road. Within the Maluti-A-Phofung SEZ, the Tshiame Food Processing Park has 60 000m² available for investors in food production, storage and distribution. To entice investors, services such as logistics will be provided as will warehousing, cold storage and manufacturing facilities. A strong focus is to try to get more local produce turned into products that can be exported. Musina-Makhado, Limpopo In July 2016 the national cabinet approved the Musina- Makhado Special Economic Zone (SEZ). Located in the far north of Limpopo in the Vhembe district, Musina is strategically located near the border of Zimbabwe and on the Great North Road, which links South Africa to the broader Southern African region. The location of the Musina SEZ, with links to Zimbabwe, Botswana and Mozambique, promotes SOUTH AFRICAN BUSINESS 2017 20

SPECIAL FEATURE the Trans-Limpopo Spatial Development Initiative. Logistics will be one of the key focus areas of the SEZ. Other sectors that will be concentrated on include agri-processing, energy and mineral beneficiation. De Beers' giant Venetia diamond mine is nearby. The company's most recent life-of-mine expansion project, worth about R30-billion, will result in the mine producing until 2046. Soon after the announcement of the designation of the SEZ, the dti announced that a consortium of Chinese investors, Sino, has agreed to put R40-billion into the Musina SEZ where they will operate the mineral beneficiation operations. The first phase of this is to build a power plant. The dti estimates that the completed SEZ could create more than 20 000 jobs. Tubatse, Limpopo An application for an SEZ at Tubatse is pending. Tubatse is in the Sekhukhune District Municipality and hosts a number of mining operations. The SEZ in Tubatse will focus on the beneficiation of platinum group metals and mining-related manufacturing. The province of Bashkortostan in Russia has also expressed an interest in the SEZs of Limpopo. Nkomazi, Mpumalanga The Nkomazi Local Municipality has already earmarked land for the SEZ that will be established in terms of the Special Economic Zones Act. The location of the SEZ near the Mozambique border and along the Mozambique Corridor gives investors in the SEZ logistical advantages and opportunities. There are tax advantages for investors in the SEZ and proximity to the Mozambican port of Matola would be a large benefit to anyone wanting to create a dry port or logistics base. The provincial government has a broader plan to create what Premier David Mabuza has called "industrial centres of competence". The idea is to cluster in a particular geographical area centres that will provide economies of scale for manufacturers and traders but also training and research facilities that will benefit the relevant sector. These could also be described as sector hubs. Plans are in place for the creation of several such hubs, including: • Mining and Metals Technology Park, Steve Tshwete Local Municipality • Petro Chemical Industrial Technology Park, Secunda • Agriculture and Forestry Industrial Centre of Competence, Mbombela area The planned SEZ falls within this quite large geographical area and the two other focus points are an International Fresh Produce Market (Mbombela) and a Forestry Technology Park in the town of Sabie. Bojanala, North West The SEZ in the platinum-rich Bojanala district will be known as Platinum Valley SEZ and will focus on mineral beneficiation. The SEZ will centre on Bodirelo Industrial Park, near the town of Mogwase. Atlantis,Western Cape The Atlantis Greentech SEZ should encourage industrial development and employment opportunities in the Green economy. Specific incentives are available to investors in this SEZ. Agri-parks Five agri-parks are planned in each of the Free State's district municipalities. Within these parks, support for rural smallholders will be available in terms of equipment hire from a central source, storage facilities, packaging of produce and getting products to market. The agri-park intends to provide a network for farmers and manufacturers. Training will also be available. 21 SOUTH AFRICAN BUSINESS 2017