South Africa: Minister Davies Approves Recommendation to Designate the Nkomazi Special Economic Zone

the dti will, within these 30 days, arrange a public hearing in the Nkomazi area to allow the community to provide further inputs on the proposed development 

PRETORIA, South Africa, May 22, 2018,-/African Media Agency (AMA)/- Members of the public and interested parties have until 28 June 2018, to comment on a gazette notice by the Minister of Trade and Industry Dr Rob Davies of the intention to designate the Nkomazi Special Economic Zone.

Minister Davies has received and approved a recommendation from the Special Economic Zones Advisory Board to designate the Nkomazi Special Economic Zone. The application for the designation of the Nkomazi SEZ was submitted by the Mpumalanga Government’s Provincial Department of Economic Development and Tourism through the Mpumalanga Growth and Economic Agency (MEGA).

This, was after the Special Economic Zones Advisory Board was satisfied with the rationale and scale of potential economic opportunities in the region, and recommended that the Minister of Trade and Industry designate the proposed area and grant a Special Economic Zones Licence to the Mpumalanga Government’s Provincial Department of Economic Development and Tourism.

A Special Economic Zone (SEZ) is one of government’s prioritised industrial development tools used to accelerate industrialisation, using special support measures in order to attract targeted foreign and domestic investments and technology.

Minister Davies says the SEZ will boost economic activities for Ehlanzeni region.

“Linked to Swaziland by two provincial roads, (the R570 and R571), and to Mozambique by a railway line and the main national road (N4), the designation of the proposed Nkomazi SEZ will provide a much needed opportunity for Ehlanzeni region and Mpumalanga Province to attract Foreign and Domestic Direct Investments which will lead to “high impact” industrial development along the Maputo Corridor”, says Davies.

According to Minister Davies, the Nkomazi SEZ will also promote skills development.

“The designation of Nkomazi SEZ will not only give the Mpumalanga Province an opportunity to process the agricultural produce (which the province currently exports as primary produce), but will also enable skills and technology transfer which are key to the improvement of agricultural productivity and creation of much- needed jobs in Mpumalanga and particularly Ehlanzeni region”, adds Minister Davies.

The Nkomazi SEZ is to be initially established on a 300 ha land area that has been made available by the Nkomazi Local Municipality and will mainly focus on the secondary and tertiary processing of agricultural products. Situated within a 200km radius of a well-developed agricultural sector, the identified site for establishing the Nkomazi SEZ makes it an ideal location for attracting “agro-industrial” investors and is intended to be developed as an “Agro-processing” Hub. The targeted value-chain products include Citrus fruits; Sub-tropical; Aromatic plants/herbs; ground and tree nuts; nutraceuticals; meat processing; leather goods and agri-inputs such as fertilizer etc.

the dti will, within these 30 days, arrange a public hearing in the Nkomazi area to allow the community to provide further inputs on the proposed development. The details concerning the date and venue will be communicated to the public.

Distributed by African Media Agency (AMA) on behalf of The Department of Trade and Industry, South Africa.