REGIONAL FOCUS: LIMPOPO BY JESSIE TAYLOR
M U S I N A - M A K H A D O
S E Z :
Investing in economic development in Limpopo
O
n the back of economic challenges, the Limpopo government has dedicated itself to a project expected to open trade and industry in the province. The Musina-Makhado special economic zone (SEZ) has been named a key priority for the provincial government. The project is expected to stimulate economic growth and create employment opportunities, says Limpopo Premier Stan Mathabatha.The SEZ model has been highly successful in other parts of the county. According to the Department of Trade, Industry and Competition, the country’s ten operational SEZs have attracted more than R56billion in private investment. Developing economic opportunities The Musina-Makhado SEZ offers numerous opportunities in the manufacturing, agro-
processing, automotive, steel, pharmaceutical and logistics sectors and is situated near the Beit Bridge border post. This unique positioning puts it near one of the busiest ports of entry to South Africa. The infrastructure development on the Musina-Makhado SEZ is expected to get under way this financial year. So far, significant investment has been put aside for the development – R310million has been budgeted for the water reticulation infrastructure, electricity and fencing. At the same time, R150-billion will be used to develop factories in the Musina-Makhado corridor. The SEZ will be developed as a twopart project, with the South site zone in Makhado and the North site zone in Musina. The first phase of development will focus on 3 500 hectares of land on
40 | Public Sector Leaders | October 2021
the SEZ’s North site zone, which have received environmental authorisation. The zone is earmarked for light to medium industrial activities, such as agro-processing, manufacturing and logistics.
Significant investment has been put aside for the development
The development of the SEZ comes at a critical juncture for the province. A decrease in tourism due to the pandemic has impacted the provincial economy, and unemployment has been steadily increasing since 2019. The unemployment rate was measured at 30.4 % in the latest labour statistics. The SEZ is expected to speak to the province’s key economic sectors – agriculture, mining and manufacturing.
