Chinese companies to invest $10bn in Limpopo SEZ

28 May 2018

The Musina-Makhado SEZ is advancing fast and generating a significant amount of interest among potential investors.

The Limpopo Economic Development Agency (Leda) has signed memorandums of understanding (MoUs) and a memorandum of agreement (MoA) with nine Chinese companies who have committed to investing over US10 billion in the Musina-Makhado special economic zone (SEZ), the trade and industry department (dti) said on Saturday.

The signing ceremonies of eight MoUs and the MoA took place in Beijing, China on Friday and Saturday, the dti said in a statement.

The South African delegation included Leda group CEO Ben Mphahlele, dti deputy director general for special economic zones Sipho Zikode, and Limpopo economic development, environment, and tourism department head Solly Kgopong.

“We are delighted that the value of investment commitments in the Musina-Makhado SEZ continues to grow at an impressive rate. There are four projects in the SEZ, namely the power plant, coking plant, alloy factory, and steel manufacturing. Today we managed to confirm investment commitments in all of them,” Mphahlele said in a statement.

“The signing will be followed by due diligence as technical representatives of the companies visit the SEZ before implementing their plans. As we speak, there is a Chinese company that is conducting a feasibility study.

“We are looking forward to seeing the SEZ getting off the ground and beginning to change the economic landscape of Musina and Makhado by creating business and employment opportunities for the people of the Vhembe district,” Mphahlele said.

Kgopong said the signing of the MoUs was a major milestone in the development of the Musina-Makhado SEZ.

“We are happy that we will be returning home with concrete commitments in the form of MoUs, but one of the reasons for coming here was to confirm the readiness of the Chinese companies to invest in the project.”

Read the latest issue

Latest Issue