Question NW3052 to the Minister of Trade and Industry
23 October 2017 - NW3052
Mbatha, Mr MS to ask the Minister of Trade and Industry
(a) What is the current status of the Musina Special Economic Zone in terms of its implementation and (b) what (i) is the total number of black owned companies that are going to benefit from the project, (ii) are their names and (iii) is the total value of each contract that will be allocated to each contractor?
Reply:
Since the designation of the Musina-Makhado Special Economic Zone in July 2016, implementation has been progressing relatively well, as highlighted by the following:
- The Minister of Rural Development and Land Affairs has approved the use of the community land for development purposes,
- Land Lease Agreement between the Mulambyane Community Trust and the Limpopo Economic Development Agency has been signed,
- Operator Agreement between the Musina SEZ SOC Ltd and the Shenzhen Hoimor Resources Holdings Company Ltd has been signed for the Energy and Metallurgical Zone,
- The SEZ Operator Permit for the Energy and Metallurgical Zone has been issued,
- The design of the anchor industrial plants within the zone is progressing well, and some plant designs are completed,
- Elements of the support infrastructure plan have been identified.
However, there are still many other critical activities that still require attention for the success of the initiative, including but not limited to the following:
education, training and skills development plan, small and medium enterprise development plan, housing development, and health infrastructure.
(a) There are many ways in which Blacks will participate in and therefore derive benefits from the initiative. Some people will benefit as investors in the various investment projects within the zone, others as direct providers of various goods and services required to support the zone and projects within the zone, still others as indirect providers of goods and services to the business community within and outside the zone, while others will provide goods and services to the expanding community around the zone.
(i) At this stage of implementation, it is too early to determine how many will benefit. The dti trusts that the number of black companies benefiting directly and indirectly from the Musina-Makhado SEZ initiative will be continuously increasing over time.
(ii) At this early stage of implementation, the dti is unable to provide both the number, names and value of contracts that will arise of the Musina-Makhado SEZ initiative.