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R7bn to boost Industrialization in Mpumalanga’s Nkomazi


The recent designation of the Nkomazi Special Economic Zone (SEZ) in Mpumalanga will contribute significantly to the economic and industrial development of the Nkomazi region and the province at large.

Mpumalanga’s impoverished Nkomazi region is getting ready for a R7 billion investment after Trade and Industry Minister Rob Davies approved a licence for the establishment of the Nkomazi special economic zone (SEZ).

The Nkomazi SEZ will seek to maximise the participation and development of local agriculture and small and medium-sized enterprises throughout the value chain – from primary agriculture to the production of high-value end products.

SEZs are driven by the department to attract direct foreign investment, reindustrialise South Africa, promote economic growth and create sustainable employment and jobs in underdeveloped regions.

They are industrial estates, or geographically designated areas, set aside for specifically targeted economic activities that are supported through special tax incentives for investors.

These incentives are often different from those that apply in the rest of the country. They include a reduced corporate tax rate, an employment tax incentive and tax relief applicable to businesses in terms of the Value-Added Tax Act, the Customs and Excise Act and the Customs Duty Act.

The Nkomazi SEZ is the tenth one that Davies has designated in the country.

Department spokesperson Sidwell Medupe said: “To date, the SEZ programme has attracted 115 private companies with a total value of R11.6 billion from private investments, leveraging on the R4.6 billion from public investments. The SEZ programme has created more than 14 020 direct jobs and many multipliers.”

According to a plan hatched by the Mpumalanga Economic Growth Agency (Mega), the Nkomazi SEZ will focus on primary agriculture, agroprocessing, nutraceuticals and fertiliser production, as well as meat and leather products, which are all expected to contribute R97.6 billion to the country’s GDP.

They are also expected to generate R3.5 billion in exports and R5.3 billion in primary agricultural products.