Cabinet approves designation of Musina-Makhado Special Economic Zone
The South African Cabinet has approved the decision by the Minister of Trade and Industry, Dr Rob Davies, to designate the Musina-Makhado Special Economic Zone (SEZ) in the Vhembe Region of Limpopo. The designated zone will promote industrial development in the region with a specific focus on mineral beneficiation, agro-processing, petro-chemicals, and other light industries.
An SEZ is an economic development tool to promote national economic growth and export by using support measures in order to attract targeted foreign and domestic investments and technology.
According to Minister Davies, the proposed designation is in line with the Industrial Policy Action Plan (IPAP) which has identified SEZs as strategic interventions designed to accelerate economic development through greater investment, export volumes and job creation.
“In alignment with the National Development Plan (NDP), this development is intended to accelerate economic growth, attract foreign and domestic direct investment, expand the manufacturing sector and mineral beneficiation, as well as create employment in the region,” says Minister Davies.
He adds that the Musina-Makhado region is also part of the Trans-Limpopo Spatial Development Initiative and is well-positioned for regional integration and linkages with Mozambique, Zimbabwe and Botswana. Musina is also the main land-based trade route between South Africa and the broader African continent. This development will also improve rail and road transport links between South Africa and the rest of the continent
The designation of the zone was preceded by an extensive public consultation process that was undertaken by the Department of Trade and Industry (the dti) in April this year. During the public hearings and meetings held in Musina, Makhado and Nzhelele members of the local communities expressed their support for the creation of the SEZ in the area. They emphasised that issues of job creation through fair employment processes, capacity building and skills development, financial support and development of local small, medium and micro (SMMEs) and co-operatives and empowerment deals for facilitating equitable ownership, need to be prioritised.
Enquiries:
Sidwell Medupe
Tel: 012 394 1650
Mobile: 079 492 1774
E-mail: MSMedupe@thedti.gov.za
