Nkomazi’s economy to grow thanks to multi-billion Rand SEZ
Government and stakeholders hope to get a 300 ha Special Economic Zone near Komatipoort off the ground and recently held public participation meetings to gauge interest among the community.
MALALANE – A multi-billion rand project, in the form of a 300 hectare Special Economic Zone (SEZ), may change Nkomazi completely. The project, which will be situated in Komatipoort, was Gazetted on May 18.
As a next step in getting the project approved, public participation meetings, were held in Nkomazi last week.
An SEZ is an area with high economic activity which is proclaimed and designated to stimulate industrial development, economic growth, trade and job creation.
The government uses a number of incentives like tax breaks and infrastructure support to encourage investors.
The SEZ was first implemented by China in the early 1980s. Due to its success, SA decided to emulate it. Several officials, including two locals, visited China for training on the subject.
Economic activity in the SEZ will focus on agricultural commodities sourced from Nkomazi, Mpumalanga, Mozambique and Swaziland (processing of citrus, subtropical fruits, aromatic plants and nuts), the production of nutraceuticals and bulk industries related to agricultural produce such as a sugar mill, an abattoir and meat processing plant and fertiliser production plant.
Once fully developed, the SEZ is set to host around 100 companies, ranging from local SMMEs to large local and multinational enterprises.
Being environmentally friendly is also a key focus of the SEZ. It will employ green measures such as renewable energy technology and organic water treatment.
A new settlement with 10 000 housing structures, community and health service and schools will be developed.
READ: New developments in the pipeline for Nkomazi
The programme will be implemented in three phases over 10 years and is expected to attract around R30 billion in foreign and local investment. About R8 million will be used for infrastructure and industrial production facilities.
The government estimates that the economic output from the SEZ will reach just under R100 billion per annum. Over $3 billion will be directed at export markets.
With regard to employment, the SEZ is projected to create almost 100 000 sustainable jobs by its 10th year. This was one of the biggest reasons the NLM and provincial government are in favour of the SEZ.
Although several investors have expressed interest in the project, the government is still marketing the project to attract more and get them to commit.
READ: Seda gives informal traders get a hand to grow businesses
Local government and business people are very excited about the prospect of the SEZ and the positive impact it will have on the area.
During the recent public participation meetings, input from interested stakeholders were considered and will be included in a report for the next phase of the project.
The Nkomazi East Combined Commerce and Tourism Association and Malalane Chamber of Commerce have arranged an information session for interested parties. It will be held at the Buffalo Hotel in Hectorspruit on July 26 at 12:00.
Speakers will include delegates from the relevant organisations and departments.
To reserve your seat, send an email to events@mindmatters.co.za.
