Musina-Makhado Special Economic Zone (MMSEZ) is a flagship programme of the Limpopo Provincial Government (RSA) implemented through a newly established entity, Musina-Makhado Special Economic Zone State Owned Company (SOC).
The SOC is registered in terms of Schedule 3(d) of the Public Management Finance Act (PFMA), Companies Act and Special Economic Zones Act. It is currently wholly owned by the Limpopo Enterprise Development Agency (LEDA) and it has its own board of directors, which is representative of various stakeholders including the Department of Trade Industry and Competition. Its administration team is led by a Chief Executive Officer and a pool of competent executives with extensive skills and knowledge of the SEZ development space.
Limpopo enjoys an important advantage as a destination for inward FDI: it is part of South Africa, the most advanced economy in Sub Saharan Africa with the largest stock of inward FDI of any African country. Its economy is like that of a developed country in the sense that it has a large services sector and does not depend purely on the export of commodities. It is also has an automotive manufacturing sector, which largely exports vehicles to developed economies.
South Africa has a network of trade agreements (including through its membership of SACU and SADC, the EU SADC EPA and the US AGOA) open the way for exports to key markets such as SADC (market of 356 million people), the EU and EEA (350m+), the UK (65+ m people), US (330m consumers), China (1.4bn), The African Continental Free Trade Area (AfCFTA) (1.7bn) and Bilateral Investment Treaties (BITs) in force with (e.g.) Nigeria, Russian Federation. South Africa also operates double tax treaties (DTTs) with over 130 countries. This provides significant market opportunities for companies seeking to locate their operations in the SEZ.
Sector-based investment opportunities
Musina-Makhado SEZ is ideally positioned to serve as a logistics hub. The north site is adjacent to the border with Zimbabwe and close to South Africa’s busiest border crossing at Beitbridge. MMSEZ is astride the north-south transport corridor. The N1 road links Cape Town to Musina via Johannesburg and Polokwane, the Limpopo provincial capital. There are rail links to the Port of Maputo, Johannesburg and Durban.
South Africa enjoys duty and quota-free access to 15 SADC countries. The African Continental Free Trade Area potentially opens up preferential trading opportunities with another 38. Musina is the gateway to SADC and the wider markets beyond.
- Inbound/outbound logistics: MMSEZ could provide a platform for both types of activity.
- Logistic services: MMSEZ could host a range of services such as freight forwarding, loading/unloading, inspection, storage, sorting, consolidating/bulk breaking, stuffing/destuffing, customs handling/clearance, documentation.
- Warehousing: MMSEZ is a convenient location for warehousing for the storage of goods, whether incoming or outgoing. Bonded warehouses would allow goods to be cleaned, sorted or repacked under customs supervision.
- Cold storage: South Africa is a major exporter of fresh fruit and vegetables. Their perishable nature demands reliable cold storage facilities and these could be located at MMSEZ’s north site.
- Container yard/truck park/bonded yard for vehicle exports: the North site could also house a container yard, a truck park for transport vehicles and a bonded yard for vehicles awaiting export.
- Fresh produce handling: the proximity to Limpopo’s agricultural area makes MMSEZ an excellent location to handle fresh produce for export or local consumption in South Africa.
- Growth in eCommerce: Increasing use of e-commerce opens opportunities for the parcel and courier industry, while there are also opportunities in the removals industry and for companies that provide flexible and customised services to meet specific needs.
- Basic assembly/electromechanical manufacturing and assembly
- Electrical and mechanical components
- Fertilisers & agro-chemicals
- Mechanisation, including tooling and manufacturing equipment
- Timber beneficiation
- Construction materials
Click/tap here to learn more about investment opportunities in the Musina Makhado SEZ
Listen to the Limpopo Provincial Showcase (live presentations about investment opportunities and project progress in Limpopo) presented at Expo 2020 Dubai on 8 February 2022:
Potential investors interested to find out more about opportunities in the region, please send your details and a short introduction below:
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