Tuesday, June 25, 2024
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HomeAfrica FocusHuge investment potential in the MAP Special Economic Zone

Huge investment potential in the MAP Special Economic Zone

With excellent logistics links to the country’s industrial heartland, the Port of Durban and the southern Bloemfontein/Cape Town route, MAPSEZ is an obvious choice for investors seeking cost-effective location to service domestic and export markets.

The Maluti-a-Phofung Special Economic Zone, known colloquially as the MAPSEZ, is an initiative of the South African government supported by the Department of Trade, Industry and Competition (dtic) to establish manufacturing opportunities and to create a regional and international trade environment with an added value chain within the Free State Province.

MAPSEZ CEO Mpho Mgemane

MAPSEZ is a subsidiary of the Free State Development Corporation (FDC), an economic development agency operating in the province. In April 2017, the MAPSEZ was officially launched on 1 038 hectares of land and was granted an operator permit by the Department of Trade, Industry and Competition.

This Special Economic Zone (SEZ) is growing at a steady rate notwithstanding the challenges presented by the advent of the Covid-19 pandemic. In this article you will be presented with five reasons why you should invest in the MAPSEZ and help us grow the economy and create a better life for all.

Five reasons why you should invest in the MAPSEZ

1. Strategic location

MAPSEZ is strategically located on the N3 commercial road corridor between Johannesburg, the economic heartbeat of South Africa and Durban, which houses the busiest port in Sub-Saharan Africa.

The Special Economic Zone’s location in relation to the major metropolitan economies of the country and its easy access to transport infrastructure make it a haven for businesses operating in the logistics and warehousing sectors looking for a rest-stop to store their goods between deliveries. MAPSEZ’s location also provides investors easy access to the national transport infrastructure for the conveying of their goods within South Africa.

2. Tax incentives

Several incentives are available to ensure MAPSEZ’s growth, revenue generation and international competitiveness. These incentives include a reduction of the corporate business tax from 28% to 15% for all businesses operating within the SEZ.

This is among the many incentives developed by the national government for the benefit of Special Economic Zones and enterprises operating within them.

There are now 23 operating businesses within the SEZ with a total investment value of approximately R5.1-billion.

3. Vacant land and factories available for rental 

The SEZ is nestled on a 1 038 ha of land divided into four precincts which include cross docking and a container terminal.

Within these precincts the entity has numerous vacant factories and large parcels of land available for lease at preferable rates as a “first mover advantage” for investors establishing or relocating their businesses to the SEZ during its formative years.

The Free State Development Corporation has good warehouse and factory space available at competitive rates. Spaces to rent are located at Thaba Nchu, Industria-Harrismith, Phuthadithjaba and Botshabelo Industrial Park, which is situated approximately 60km from the economic hub on the eastern side of the Mangaung Metro.
4. Tailor-made lease terms

The MAPSEZ offers prospective investors various types of lease terms tailor-made to suit their business needs.

The investors can either enter lease-only contracts, where they lease the land and construct their own factories on the land or where they choose to renovate existing factories at preferential lease rates.

5. Proximity to major agricultural production areas

MAPSEZ is geographically located within one of the country’s biggest farming regions. Potatoes, soybean, sorghum, sunflower and wheat are some of the natural resources cultivated in the eastern Free State.

This makes MAPSEZ an ideal investment destination for food processors and other agro-processing businesses.

Investment Promotion 

The SEZ is also well suited for general manufacturing, offering a convenient production base for light and medium manufacturing operations.

With excellent logistics links to the country’s industrial heartland, the Port of Durban and the southern Bloemfontein/Cape Town route, MAPSEZ is an obvious choice for investors seeking cost-effective location to service domestic and export markets.

Since inception MAPSEZ has engaged numerous investors and through these engagements has built a pipeline of lucrative local and international investments to the tune of R4.8-billion. From this pipeline MAPSEZ is proud to announce that it has secured investments from five investors to the value of R1.4-billion in various sectors such as agro-processing, chemical blending and synthetic-hair manufacturing.

With the addition of these investors, there are now 23 operating businesses within the SEZ with a total investment value of approximately R5.1-billion.

With excellent logistics links to the country’s industrial heartland, the Port of Durban and the southern Bloemfontein/Cape Town route, MAPSEZ is an obvious choice for investors seeking cost-effective location to service domestic and export markets.

Furthermore, the additional investments have created a total of 162 new jobs, bringing the total number of jobs created within the SEZ to approximately 1 288. MAPSEZ is now gaining momentum in terms of attracting local and foreign investors and is supported by its healthy investment pipeline which will create an estimated 1 431 new jobs.

Contact MAPSEZ

Get in touch with our team and let’s see how we can grow the economy while creating meaningful job opportunities for communities.


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