The Musina-Makhado SEZ is a flagship initiative of the Limpopo Provincial Government implemented through the Musina Makhado SEZ SOC in partnership with a Chinese Operator, Shenzhen Hoi Mor Resources Holding Company Ltd. The MMSEZ as an economic development tool aims to promote national economic growth and exports by using support measures in order to attract targeted foreign and domestic investments, research and development (R&D) and technology transfer. The South African Government, through the Department of Trade and Industry (the dti), is spearheading the establishment of Special Economic Zones (SEZs) across the country’s nine provinces to attract foreign direct investment (FDI), accelerate the manufacturing and export of value added products and the creation of a favourable environment for job creation. The dti’s Industrial Policy Action Plan (2018/2019 – 2020/2021) identified SEZs as one of the economic development strategic interventions that will enable the country to achieve its industrialisation, regional development and employment creation objective. In addition, the SEZs are expected to contribute towards strengthening South Africa in terms of trade from the manufacturing and export of value-added commodities, the creation of stronger value chains and provision of much-needed jobs in previously disadvantaged regions of the country.
In the Limpopo Province, the South African Government has designated the Musina-Makhado area (Vhembe District) as the preferred site for the location of the SEZ. Anchored on the initial investment pledge of R150 billion from a Chinese consortium of investors, the Musina-Makhado SEZ will accelerate industrial diversification in the Province through the establishment of an energy and metallurgical processing complex. The metallurgical complex of the SEZ will focus on the beneficiation of minerals found in Limpopo Province. Iron ore, coking coal, chrome, manganese, vanadium, silica and other minerals, which are key inputs into the iron and steel production process, will be part of the downstream value addition. This is in line with the country’s national industrialisation objectives and mineral beneficiation strategies. The energy cluster of the SEZ will result in the establishment of a coal-fired power generation plant, primarily for the metallurgical complex, with excess power to be redeployed to the national grid.
The other clusters envisaged in the Musina-Makhado SEZ include light and medium industries in general manufacturing, logistics and agro-processing. This will be supported by strong retail, commercial and residential centers as well as recreational facilities. The infrastructure for this cluster is estimated to cost between $5 billion and $15 billion to develop and will take between five to 30 years to complete the construction. This industrial park covering three key clusters is located between the Musina Town and Limpopo River on a farm extending 3500ha commonly known as Antonvilla. The site is located within a 10km radius from the Musina Town and 20km to the iconic Beit Bridge Border Post, which is the second busiest port of entry in South Africa and a gateway to the rest of Africa. Hence, the strategic location of the Musina Makhado Special Economic Zone makes it an ideal investment destination for national and international investors and businesses targeting the massive lucrative up North markets.
- Metallurgical and Energy
- General Manufacturing
Musina Makhado SEZ Projects
The energy cluster of the SEZ will result in the establishment of a coal-fired power generation plant with capacity to produce 3000MW of electricity. The electricity generated by the Musina-Makhado SEZ will meet the power needs of its metallurgical complex while the remainder will be directed into the national grid to benefit other electricity consumers in the country. The Musina-Makhado area has approximately 12 billion tons of coking coal deposits. The high grade coking coal will be used in steel manufacturing in the metallurgical complex while the low-grade coal will be fed into the power plant for energy generation.
The metallurgical cluster of the Musina-Makhado SEZ will focus on the beneficiation of ferrous minerals found in the Limpopo Province to produce iron which will be further beneficiated into different grades of steel, iron ore, coking coal, ferromanganese and ferrochrome and other minerals, which are key inputs into the iron and steel production process and which will be part of the downstream value addition process. The Musina-Makhado SEZ metallurgical complex is expected to produce 3 million tons of steel, 1 million tons of stainless steel, 2 million tons of pig iron and 600 000 tons of ferromanganese for export markets in SADC and other countries in Sub-Saharan Africa.
The Limpopo Province is South Africa’s leading producer of a wide variety of fruits (litchis, guavas, peaches and avocados), nuts and vegetables due to its soil and climatic conditions. The province has strong capabilities in crops and livestock farming. The Musina-Makhado SEZ’s agro-processing activities will enable the province to leverage the availability of a wide range of fruits and vegetables and meat to produce processed food products such as fruit juices, beverages, canned meat and vegetables for both domestic and export markets.
Limpopo is a neighbour to three SADC countries with Botswana in the west, Zimbabwe in the north and Mozambique in the east. The Musina-Makhado SEZ is located at the vicinity of the Beit Bridge Border Post, which is the second busiest port of entry in SA and a renowned gateway to the rest of Africa. The location of the MMSEZ at close vicinity of the Beit Bridge border post presents huge opportunities for a number of trade, logistics, border and customs related services and facilities such as bonded warehouse, vehicle distribution center/holding depots, container yards and truck shops. In addition, the Musina-Makhado SEZ can be used as an inland intermodal terminal directly connected by both the N1 North-South Corridor and Johannesburg – Musina railway for the trans-shipment of sea cargo and manufactured goods to inland destinations and to the SADC markets.
General Manufacturing Cluster
The General Manufacturing Complex of the Musina-Makhado SEZ will be the centre for metal beneficiation, plastics manufacturing, OEMs manufacturing, automotive and agro-processing. Furthermore, it will provide engineering support to companies located in the SEZ, provide incubation facilities for SMMEs projects and maintenance and input supply park for the industrial parks consumables. Mining companies located in the Musina-Makhado area and other parts of the province are expected to benefit from the wide range of engineering support services available in the SEZ.