Welcome to the 10th 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, supported by the website www.southafricanbusiness.co.za. Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provinces. This issue has a focus on Special Economic Zones which are being rolled out across the country with specific economic areas of focus. The importance of the revival of minerals exploration and the significance of onshore and offshore gas discoveries is the subject of another special feature.
MESSAGE Limpopo’s
MESSAGE Limpopo’s Special Economic Zones to drive industrialisation MEC for Economic Development, Environment and Tourism Thabo Mokone invites investors to be part of an exciting journey to creating a green energy supply to bolster localised manufacturing. MEC Thabo Mokone The Provincial Government of Limpopo invites investors to partner with us in developing a low-carbon green economy while at the same time enhancing energy security and developing local industries. Special Economic Zones (SEZs) are the key tools within our Economic Reconstruction plans to ensure that we create sustainable job opportunities for all. This applies to both the Fetakgomo-Tubatse SEZ as well as the Musina Makhado SEZ. True development is about people When South Africa achieved democracy nearly three decades ago, who would have dreamed of a Special Economic Zone in the Steelpoort area. But today, a Special Economic Zone is our new reality. The proposed FTSEZ is gearing up to become a centre of excellence for green energy manufacturing, agro-processing and mineral beneficiation. The SEZ is positioned to be a game-changer in shaping and adding momentum to the industrialisation growth path as espoused in the socio-economic recovery plan of Limpopo Province. It is strategically located in the industrial hub of Steelpoort between two huge mining establishments, the Samancor smelter and the Lion ferrechrome smelter, which are strategic landmarks for the establishment of the SEZ. The Fetakgomo-Tubatse SEZ will not only play the role of a consumer of hydrogen in the Special Economic Zone but will strive to become a producer of hydrogen and other clean energy technologies. In Limpopo we see the Hydrogen Economy as a potential game-changer to reindustrialise the provincial economy. For the Fetakgomo-Tubatse SEZ, the Hydrogen Valley platform has the potential to drive the demand for mining inputs supplies, thereby creating an opportunity for large-scale industrialisation for both the manufacturing of mining inputs and the beneficiation of mining outputs. The efforts which we have put into Fetakgomo- Tubatse SEZ have so far led to us acquiring: • 1 220ha of land. • An EIA process is currently underway. • The application for a Record of Decision (RoD) process has commenced. • The SEZ Master Plan (Development Framework) and layout is complete with full infrastructure designs and costs in readiness for infrastructure roll-out. • 16 companies have shown a keen interest in the SEZ by signing letters of intent (combined investment value of approximately R38-billion). • Four companies have shown a readiness to locate inside the SEZ by 2022. A due diligence process is underway. We envisage creating 8 000 jobs in the short term and 20 000 jobs in 10 years. The main objective of this SEZ is to develop a low-carbon green economy which will offer promising opportunities not only to fight climate change, but to enhance energy security and develop local industries. The strategic aim of the SEZ is to develop a green primary energy supply for localised manufacturing of both upstream and downstream activities of the platinum group metals and chrome value chains. Our passion in ensuring operational Special Economic Zones within local municipalities as well as working with various private partners is a clear indication that we are committed to “Building better communities together”. ■
Deputy Minister oversight visit highlights SEZ potential The Fetakgomo-Tubatse Special Economic Zone will establish a centre of excellence for green energy technology and mineral beneficiation as well as manufacturing of mining equipment. 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 SouthAfrican 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
