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South African Business 2021

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Welcome to the ninth edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa. This issue has a focus on economic recovery plans which have been put in place to tackle the challenges thrown up by the global Covid-19 pandemic. National government’s focus on infrastructure and the use of Special Economic Zones is highlighted, together with a feature on the nascent maritime economy. Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed online at www.globalafricanetwork.com.

FOCUS The game-changer:

FOCUS The game-changer: Musina-Makhado Special Economic Zone Revitalising the Limpopo economy through industrialisation. The Economic Reconstruction and Recovery Plan outlines immediate actions to rebuild the national economy and to provide jobs and relief to the South African people. These actions include an aggressive infrastructure programme, far-reaching reforms to increase our competitiveness and inclusiveness, measures to catalyse industrialisation, relief for vulnerable households and individuals, and a public investment in employment programmes. This plan is a response to a severe economic contraction unlike any we have experienced in recent memory. South Africa is not alone in experiencing an economic crisis of this depth and extent. Unemployment has risen across the world and nearly every economy has shrunk. As President Cyril Ramaphosa has noted, “It is true that the measures that were necessary to delay the spread of the virus and prevent deaths led to a sharp decline in economic activity.” The strategic geographic location of the Musina‐Makhado Special Economic Zone (MMSEZ) and its close proximity to the main land‐based route into SADC and the African continent, together with supporting incentives and a good logistics backbone, will make it the location of choice for investment in mineral beneficiation, agro‐processing industries, manufacturing and logistics. This will provide job opportunities to the people of Limpopo province currently in need of jobs and skills development. The establishment of the metallurgical cluster in close proximity to the source of raw materials, along with a logistics hub in the SEZ with access to markets, presents unique opportunities for mineral beneficiation, which is a key priority of national government. Genesis of the MMSEZ Following the enactment of the Special Economic Zones Act, the Limpopo provincial government submitted a comprehensive proposal on strategic areas for consideration to develop the province’s economy through industrialisation to the Department of Trade, Industry and Competition (dtic). The dtic designated the MMSEZ, which has become the flagship of the provincial government. Subsequently, the Musina-Makhado State Owned Company (SOC), a subsidiary of the Limpopo Economic Development Agency was established. This entity is tasked with the responsibility of facilitating and managing the planning and development of the MMSEZ. MMSEZ business case The essence behind the creation of the MMSEZ is the establishment of a new industrial hub in the Vhembe District Municipality, which forms part of the Trans‐Limpopo Spatial Development Initiative, situated at two locations, Makhado and Musina, each with its own unique industrial focus. The energy and metallurgical cluster (power plant, SOUTH AFRICAN BUSINESS 2021 SOUTH AFRICAN BUSINESS 2021 26 24

FOCUS LEDET MEC Thabo Mokone, MMSEZ Executive Manager: Investment Promotion Richard Zitha and MMSEZ CEO Lehlogonolo Masoga. steel plant, stainless steel plant, coking plant, pig iron plant, ferromanganese plant, ferrochrome plant, chrome plating, lime plant, ferromanganese, silicon-manganese and calcium carbide plants and vanadium-titanium magnetite plant) is located on the Makhado side and the Northern Site in Musina is focussing on general manufacturing, agroprocessing and logistics. “The MMSEZ has positioned itself as a platform to revitalise the Limpopo economy through industrialisation. Our focus is to generate much-needed base-load electricity, establish a metallurgical complex, develop a manufacturing hub, enhance agro-processing and to develop a regional logistics centre. The close proximity of chain. The beauty of the MMSEZ lies in the diversity of opportunities across sectors both at the downstream and upstream with backward and forward linkages. The North-South Corridor makes the Musina-Makhado location a strategic passage for trade between South Africa and the rest of the Artistic Impression of the MMSEZ. the Beit Bridge border post and the abundance of mineral and agricultural resources gives the MMSEZ a competitive advantage,” says Lehlogonolo Masoga, MMSEZ Chief Executive Officer. The MMSEZ SOC has another critical responsibility of attracting and mobilising both domestic and foreign direct investment in the identified industrial activities across the value SADC region and the African continent, further given impetus by the Africa Continental Free Trade Agreement. Limpopo Province has always enjoyed a niche of being a gateway to the rest of Africa as a home to one of the busiest ports of entry, Beit Bridge Border Post. The development of the MMSEZ becomes an ideal platform to cement this strategic socio-economic position of the province. 25 27 SOUTH SOUTH AFRICAN BUSINESS 2020/21 2021

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