The planned Fetakgomo-Tubatse Special Economic Zone (FTSEZ) is hosted by the Fetakgomo-Tubatse Municipality in the Sekhukhune District (Limpopo Province, South Africa) and is located within the Bushveld Igneous Complex (Eastern Limb), which hosts the well-known Merensky Reef in the Limpopo Province.
The area has a high concentration of rich mineral resources and is a global leader of Platinum Group Metals and Chrome resources, hosting over 40 mining operations which also includes Vanadium, Iron Ore and selected battery minerals.
The proposed FTSEZ is projected to be a catalyst for economic growth, industrialization and mineral beneficiation, by localizing the various links of the value chain, both upstream and downstream.
An area of 1220 ha has been identified for the development of this state-of-the-art center of excellence for green energy manufacturing and mineral beneficiation (see image below).
FTSEZ forms part of the South African Government’s SEZ programme which is aiming to enhance the country’s manufacturing and export capabilities and attract foreign direct investment. Anchored in the Limpopo Development Plan (LDP), the FTSEZ is positioned and designed to be a top investment destination for companies seeking to be in the forefront of the green energy “Just Transition”, which includes “support for workers and communities affected by the transition away from coal and enables the creation of quality green jobs” among other things (see more about the partnership in this article).
The priority industries in the FTSEZ will enhance the local manufacturing capacity and contribute to low carbon / green economy, and will offer socio-economic opportunities (for jobs & small businesses), not only to fight climate change, but to enhance energy security and develop local industries in the next 5 to 10 years.
The FTSEZ is being developed through a partnership between the Department of Trade, Industry and Competition (dtic), the Limpopo Provincial Government (LPG), Sekhukhune District Municipality (SDM) and Fetakgomo-Tubatse Municipality (FTM).
Unique characteristics of the FTSEZ
The main objective of this SEZ is to develop a low carbon / green economy which will offer promising opportunities, not only to fight climate change, but to enhance energy security and develop local industries.
The strategic aim of the SEZ is to develop green primary energy supply to localised manufacturing of both upstream and downstream activities of the PGMs and chrome value chains.
Construction phases of FTSEZ
The Fetakgomo-Tubatse SEZ will cover a total area of 1220 ha of land. Phase 1 consists of 316 ha which is reserved mainly for a mix of light and heavy industrial use and other hydrogen energy related uses, while Phase 2 & 3 will be developed in line with market demands and will include:
- Renewable energy
- Heavy industry
- Additional light industry space
- Mixed use and residential
Six (6) tenants have already committed to setting up operations for Phase 1 implementation in chrome related beneficiation, hydrogen energy components assembly, electric vehicles, solar energy and pharmaceuticals.
The primary producers of chrome ore and ferrochromium in South Africa
Identified clusters and investment opportunities
- Manufacturing of hydrogen energy from fuel cells as part of the South African Hydrogen Valley led by the Department of Science and Technology
- Production of solar and biomass energy
- Production and refurbishment of batteries
- Development of a platinum refinery
- Beneficiation of chrome-related products
- Manufacturing of auto-catalysts
- Manufacturing and assembly of green energy automotive components and electric vehicles
- Manufacturing and assembly of trucking components
- Manufacturing and assembly of machinery, equipment and components used in mining operations
- Development of ICT infrastructure
Reasons for businesses to locate in the FTSEZ:
- Enabling infrastructure and warehouses
- Close proximity to mining operations
- Carbon Credits
- Reduced Carbon Tax
- Reliable and low carbon / green energy
- Global leadership in production of chrome and huge resources of platinum group metals
- Land & Security
- State of the art top infrastructure
- Water provision – De Hoop Dam (capacity: 348-million cubic meters)
- Reliable road and rail network
- Distance to ports and borders: Port of Maputo: 380 km, Port of Richards Bay: 600 km and Musina Beitbridge Border Post: 400 km
FTSEZ will provide a secure business environment and is designing world class manufacturing and logistics platforms that will be positioned to support transportation efficiencies through road, rail and heliport connectivity to ports and border posts.
- Vat and Customer Relief
- Employment Tax Incentives
- Building Allowance
- Reduced Corporate Income Tax (15% Corporate Tax)
- 12i Tax Allowance and Incentives
- One-Stop-Shop Facility
Contact the team:
Companies and investors active in the above mentioned sectors who are interested to find out more about these opportunities in the FTSEZ, please send a brief introduction below: