June 14 2018

Chinese companies to invest $10 billion in Limpopo SEZ (South Africa)

Source: Asoko Insight

The Limpopo Economic Development Agency (LEDA) has signed memorandums of understanding (MOU) and a memorandum of agreement (MOA) with nine Chinese companies who will invest more than US$10bn in the Musina-Makhado Special Economic Zone (SEZ)

The signing ceremonies of eight of the MOUs and MOAs took place in Beijing.

“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,” said Ben Mphahlele, group CEO of LEDA.

He added that the Musina-Makhado SEZ was advancing very fast and generating a significant amount of interest among potential investors.

“The signing will be followed by due diligence as technical representatives of the companies visit the SEZ to do various assessments on the ground 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,” said Mphahlele.

He further added that described the positive impact of the SEZ to extend to other parts of Limpopo and other African countries such as Zimbabwe and Mozambique.

Solly Kgopong, head of department at the Department of Economic Development, Environment and Tourism in Limpopo, said that the SEZ was projected to contribute enormously to the country’s national gross domestic product once fully operational.