Johannesburg - The Cabinet has approved the decision by the Minister of Trade and Industry, Dr Rob Davies, to create the Musina-Makhado Special Economic Zone (SEZ) in the Vhembe Region of Limpopo.
The DTI on Monday said this SEZ was anchored through an investment of more than R40 billion in an energy and metallurgical industrial cluster, with the implementation of various projects over the next five years expected to create over 21 000 jobs.
The designated zone would promote industrial development in the region with a specific focus on mineral beneficiation, agro-processing, petro-chemicals, and other light industries.
Steel producer Hoi Mor Consortium was appointed to plan, develop, manage and market the South African energy and metallurgical industrial park within the zone.
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According to Davies, the proposed designation was in line with the Industrial Policy Action Plan (IPAP), which had 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,” Davies said in a statement.
Davies said the Musina-Makhado region was also part of the Trans-Limpopo Spatial Development Initiative and was well-positioned for regional integration and linkages with Mozambique, Zimbabwe and Botswana.
Musina is also the main land-based trade region between South Africa and the broader African continent.
The designation of the zone was preceded by an extensive public consultation process that was undertaken by the DTI in April this year. The DTI said 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.
Community members are said to have emphasised 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.
AFRICAN NEWS AGENCY