Name the Special Economic Zone which is in the Free State province 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.
What does Maluti-A-Phofung Special Economic Zone(MAPSEZ) Provide?
The zone provides road and rail logistics and handling facilities for the Gauteng–Durban port corridor and links to the Bloemfontein–Cape Town corridor.
The launch of the 1038 hectare special economic zone (SEZ)is part of government’s SEZ programme aimed at accelerating socio-economic growth and development in the region and part of the government’s programme of radical socio-economic change.
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.
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.