Chinese invest $10 billion in Musina-Makhado SEZ

The Limpopo Economic Development Agency (Leda) has signed memorandums of understanding (MOUs) and memorandums of agreement (MOA) with nine Chinese companies who have committed to investing more than US$10 billion in the Musina-Makhado Special Economic Zone (Sez).
The signing ceremonies for eight of the MOUs and a MOA took place in Beijing, China on Friday and Saturday. A statement released by the Department of Trade and Industry (dti) on Saturday stated that the South African delegation included Leda Chief Executive Officer (CEO), Ben Mphahlele, the Deputy Director-General of the Special Economic Zones at dti, Sipho Zikode and Department Head of Economic Development, Environment and Tourism (Ledet), Solly Kgopong.

Mphahlele reportedly said they were delighted that the value of investment commitments in the Musina-Makhado Sez continues to grow at an impressive rate. There are four projects in the Sez namely the power plant, coking plant, alloy factory and steel manufacturing, he said, adding that they have managed to confirm investment commitments in all the four projects. He emphasised that the Musina-Makhado Sez was advancing very fast and generating a significant amount of interest among potential investors.
“The signing will be followed by due diligence as technical representatives of the companies visit the Sez to do various assessments on the ground before implementing their plans. There is a Chinese company that is conducting a feasibility study. We are looking forward to seeing the SEZ getting off the ground and beginning to change the economic landscape of Musina and Makhado by creating business and employment opportunities for the people of the Vhembe district,” Mphahlele said.
Kgopong reportedly described the signing of the MOUs as a major milestone in the development of the zone and reiterated that they are impressed with what they saw and heard during the interaction with the companies. “They are ready and eager to come to South Africa and start working. The entire province, including the communities and businesses, are behind this project. The Sez was projected to contribute enormously to the country’s national Gross Domestic Product once fully operational.”

Story: ENDY SENYATSI
>>endy@observer.co.za