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Zawya
12 hours ago
- Business
- Zawya
South Africa: Multi-billion Limpopo mega-project has ground to a halt
Seven years after its launch by President Cyril Ramaphosa, the multi-billion Musina Makhado Special Economic Zone (MMSEZ) in Limpopo is at a standstill. R67.5m has been spent on consultants and R50m on roads and infrastructure. But there is no infrastructure, no electricity connection, no roads and no water. Described on its website as 'a flagship of the Limpopo Provincial Government' the MMSEZ is 'a green field investment platform consisting of two sites' - Artonvilla, near Musina, intended for light manufacturing, and Mopani, near Makhado, intended for heavy industry. The zone claims to offer 'state of the art logistics facilities promoting operational excellence'. But though the MMSEZ was touted to bring in R40bn in investments, so far only one company has made a firm commitment to invest. A report by the chair of the MMSEZ board, Nndweleni Mphephu, to the Limpopo Economic Development, Environment and Tourism department, shows how little has happened in what was to be a mega industrial park in the heart of the Limpopo Valley. The report, dated 28 May, follows questions in Parliament and an oversight visit by MPs to the area. According to the Minister of Trade Industry and Competition Parks Tau, R2.27bn would be needed for bulk infrastructure on the site, and R1.07bn had been set aside between 2020/1 and 2026/7 in the provincial budget. In response to a question in Parliament in May from the DA's Toby Chance, Tau added that the DTIC's Industrial Zones Programme was helping the MMSEZ with advisory support. Some of the money has already been spent, much of it on consultants. In his report, Mphephu gives a list of consultants, service providers and contractors who have benefited to date. Spending of just over R85.2m was approved for consultants, of which just over R67.5m has already been paid to 17 consultants, including engineers, planners, quantity surveyors, project managers and horticulturists. Just under R40m has been paid to service providers, including Eskom. According to the report, three contractors have so far benefited, including Tshiamiso Trading 1 and Tshiamiso Trading 2, which received a R200m contract for roads and stormwater infrastructure and a R99.3m contract for bulk sewer and wastewater treatment works. A contract for R134m was awarded to Rembu Construction, also for the construction of bulk sewer and wastewater treatment works. But though some earthworks have been done by Tshiamiso on the northern site, there are no finished roads, electricity or water on either site. After being paid just over R50.4m, Tshiamiso had to stop work on the northern site, after beginning bush-clearing, because the land belonged to a different organ of state and transfer had to take place first, the report says. Tshiamiso has now terminated the contract and is claiming more money from the MMSEZ, citing non-payment for standing time. This dispute is currently in litigation. Tshiamiso Trading is also accused of unlawfully removing white rock materials from another site to the MMSEZ site without the owner's consent or any formal agreement or compensation. The MMSEZ southern site was gazetted as a Special Economic Zone in 2017, but it turns out that the northern site at Artonvilla has yet to be gazetted, according to a response by Tau to a question in Parliament. Tau said the Limpopo government had indicated it would submit a request before the end of June 2025 to gazette the northern site. In his report, Mphephu noted fierce 'oppositions, dissenting views and pushbacks' mostly from environmental groups, over the southern site. Some of these were challenging the Environmental Impact Assessment in the Polokwane High Court. But in the absence of an interdict, the report says, 'all activities leading to the development, including township establishment processes are expected to proceed.' When President Cyril Ramaphosa publicly announced the MMSEZ in September 2018 following his return from the Forum for Africa and China Cooperation, it came with the promise of an initial investment value of more than R40bn. To date, little of that money appears to have materialised. Responding to questions in Parliament in May, Tau gave a list of investment pledges amounting to more than R8.64bn, of which R2.1bn has been verified and validated from eight prospective investors. But according to the report, only the China-based Kinetic Development Group has come to the party, with a R16bn promise of a ferrochrome smelter on the southern site, once township development on the site is approved, and subject to EIA approvals. If investors do come, one of the biggest questions will be: where is the water going to come from in this semi-arid area? The MMSEZ has approached the Water Services Authority (Vhembe) and the catchment management agency (the Department of Water and Sanitation, DWS) in the region to determine whether they have capacity, either from treated or raw water, to supply the developments. According to the report, Vhembe agreed to provide the MMSEZ with some of its allocation for raw water to kickstart development on the northern site. The DWS said treated water could be brought from Zimbabwe by pipeline for the future development of the site. 'For the south, a few boreholes were drilled in order to start the development of the site. For further development, a pipeline needs to be built to connect to the bulk pipeline from Zimbabwe. Furthermore, two dams are earmarked to be constructed in future to specifically provide water to the site as it grows,' the report says. According to the report, the MMSEZ has now implemented a 'turnaround plan' including a review of the design of roads and stormwater. A division of the Industrial Development Corporation has been appointed as implementing agent, with four professional engineers assigned to the MMEZ full-time. Construction on the first projects will start in September, the report says. This article is published in association with the Limpopo Mirror / Zoutpansberger. Published originally on GroundUp.© 2025 GroundUp. This article is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
The Herald
13 hours ago
- Business
- The Herald
Proposed bill set to improve the ease of doing business
The Nelson Mandela Bay Business Chamber has welcomed the department of trade, industry & competition's (DTIC) commitment to finalising a comprehensive omnibus bill which will reduce unnecessary red tape and improve the ease of doing business. The chamber said this marked a critical step in cutting through excessive regulatory red tape that constrained economic activity, limited investment, and affected business confidence, especially in regions such as the Bay that have huge potential but where investors may become deterred by the onerous requirements and lengthy time frames to implement planned investments. Business Chamber CEO Denise van Huyssteen said the proposed legislative reforms signalled a long-awaited shift in government's approach, acknowledging the urgent need to dismantle structural barriers that have long held back economic expansion and job creation. 'By targeting key pieces of legislation, including the Infrastructure Development Act, the National Building Regulations and Building Standards Act, and the International Trade Administration Act, the DTIC is demonstrating the sort of bold policy leadership the country desperately needs,' she said. 'For the metro, this legislative reform package is more than just national policy, and is an action needed to unlock the potential of our local economy, create jobs and revitalise the metro's industrial base. 'This aligns with our strategy of positioning the metro as the Bay of Opportunity and a leading manufacturing base in the African continent.' Van Huyssteen said updating the Infrastructure Development Act would directly benefit Nelson Mandela Bay by enabling faster planning and execution of catalytic infrastructure projects, whether the focus is on maintaining and upgrading ageing water, sanitation and electricity infrastructure, or improving logistics corridors that connect local manufacturers to domestic and global markets. Efficient infrastructure is not just a convenience, it is the foundation of job creation and industrial competitiveness in this metro, she said. Meanwhile, she said reforming the outdated National Building Regulations and Building Standards Act would bring consistency and predictability to the local property development process. 'Bay businesses have long faced frustration with municipal delays, misalignment between departments, and outdated regulatory frameworks. 'Modernising this act will help unlock stalled developments, attract private sector investment, and support spatial transformation in the city. 'Strengthening the International Trade Administration Act is particularly crucial for our region's manufacturing and export sectors, which are under severe strain from cheap imports entering the market. 'A more robust trade enforcement framework will level the playing field for local producers, protect jobs and support localisation. 'Supporting local products is key to the Bay's economic turnaround. 'When local businesses, from car assemblers to packaging manufacturers, are supported, they hire locally, pay local suppliers and reinvest in the community. 'This multiplies economic activity and helps reduce unemployment. 'Every purchase made from a local business helps sustain jobs in sectors such as manufacturing, logistics, services, technology and those deeply rooted within communities. 'For one person employed directly in manufacturing, four direct jobs are created downstream. 'For every one person employed directly, 10 people are supported.' The CEO said further that choosing an SA-made product enabled investment into local community support programmes and initiatives to help address critical areas of need such as education, skills development, hunger and poverty alleviation, health care and sports development. 'However, the chamber emphasises that regulatory reform alone is not enough. Its success hinges on resolving systemic challenges that continue to affect business confidence and erode our metro's potential.' These included: Logistics inefficiencies at local ports and within the rail network that raise operational costs for local industries; Unreliable water, sanitation and electricity infrastructure, which has severely affected manufacturers and other small to large businesses; Widespread crime and safety concerns, which increase the cost of doing business and discourage new investment; Lack of delivery of basic municipal services; and Lack of co-ordinated implementation, which continues to stall high-impact projects that could drive job creation and industrial renewal. 'The chamber believes that bold legislation must be matched by bold execution. 'The implementation of these reforms must be backed by real accountability and supported by partnerships at both a national and local level. 'The business community cannot continue to operate in an environment of uncertainty, weak infrastructure and unreliable service delivery. 'As such, we urge the government to stay the course and ensure that this initiative moves from intention to impact and helps the country chart a sustainable economic path which will create much needed jobs.' The Herald
The South African
3 days ago
- Business
- The South African
Government wants to intervene in latest factory closure
Government and trade unions are hosting urgent talks after another major factory closure in South Africa was announced. Specifically, the Goodyear tyre factory in Kariega, Eastern Cape, will be shutting its doors. In the face of cheap Chinese imports and uncompetitive energy and transport costs, the multinational company sees no other option but factory closure. However, within the context of rising unemployment in the province, industry stakeholders believe an economic disaster is looming. Once considered the heart of South Africa's manufacturing sector, the Eastern Cape's unemployment rate now sits at 49%. The level of unemployment in the province is so worrying, Stats SA highlighted as much in its latest Quarterly Labour Force Survey 2025. Above-inflation increases to energy and transport costs are making tyre manufacture in South African unviable. Image: Pexels Nevertheless, the Department of Trade, Industry, and Competition (DTIC) hopes to intervene to prevent the factory closure, reports BusinessTech . Besides the factory closure itself, the DTIC worries about secondary industries dependent on the plant. 900 potential job losses don't account for the likes of catering, cleaning, security, and corporate investment initiatives. Similar to interventions to prevent steel giant ArcelorMittal South Africa (AMSA) from shutting down, government hopes to find a solution. However, this is provided the company is willing to cooperate. So far, the multinational has remained silent on the matter, saying it only wants to 'optimise its footprint in South Africa.' As such, the closure forms part of a broader streamlining operation across Europe, the Middle East and Africa. The factory closure is part of a broader restructuring and may not be reversible. Image: File Former South African ambassador to Japan, Smuts Ngonyama, urged government to intervene. He stressed that the plant's continued operation is vital not just for the region's economy but also for the dignity and livelihoods of its workers. Meanwhile, labour unions have also raised concerns with the South African Federation of Trade Unions (SAFTU). 'These decisions will deepen poverty, accelerate migration, and destroy any hope of economic transformation in the Eastern Cape,' warned the unions. Only time will tell if the company's commitment to global transformation will stymie any efforts to reverse this decision. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Zawya
21-05-2025
- Business
- Zawya
South Africa: Government eyes sugar sector exemption to boost local supply
The Department of Trade, Industry and Competition (DTIC) has published draft regulations proposing a block exemption for South Africa's sugar industry, which would allow producers, retailers, and manufacturers to coordinate on procurement and pricing of locally produced sugar. Proposed policy shift to aid local industry If enacted, the exemption would permit forms of cooperation normally prohibited under the Competition Act, including joint planning and pricing negotiations. The goal, according to the DTIC, is to reduce import reliance, protect rural jobs, and support the long-term sustainability of the industry. The proposal is part of the broader Sugarcane Value Chain Master Plan 2030 — a government-led framework that includes commitments from both public and private sector stakeholders to stabilise and transform the sugar sector. Industry body welcomes move Industry group SA Canegrowers has backed the proposal, saying it would create space for 'inclusive decision-making and sector stability' while enabling discussions that lead to fairer pricing for consumers. The organisation represents over 24,000 small-scale and 1,200 commercial growers, mainly in KwaZulu-Natal and Mpumalanga. In a statement, SA Canegrowers said commercial users such as food and beverage producers are critical to the local sugar value chain. Ensuring a commitment from these buyers to prioritise local sugar would help secure thousands of jobs in farming communities. Ongoing threats to sector viability The sugar industry has faced sustained pressure from cheap sugar imports and the Health Promotion Levy (commonly referred to as the sugar tax). These factors have added to concerns over long-term viability, particularly for smaller producers. As part of the Master Plan process, stakeholders have also explored diversification opportunities into areas such as biofuels and sustainable aviation fuels. According to SA Canegrowers, the draft exemption would allow for necessary coordination among producers and investors to advance these projects without violating competition laws. Next steps The draft regulations were issued earlier this month by Trade and Industry Minister Parks Tau. No implementation date has been confirmed, and the proposal is currently open for public comment. If approved, the exemption would mark a significant shift in how collaboration is handled in the agricultural value chain, potentially setting a precedent for other sectors under pressure. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
The Citizen
06-05-2025
- Entertainment
- The Citizen
Trump's film tantrum: Brandon Auret calls on Gayton McKenzie to invest in local films
'I'm a firm believer in that when the door is closed, jump through the window,' actor Brandon Auret told The Citizen. Auret has called on Minister Gayton McKenzie to use Donald Trump's 100% tariffs on films made outside of the US, as an opportunity to invest in local film industry. Picture: brandon_auret/ Instagram South African actor and filmmaker Brandon Auret has called on Minister of Sport, Arts and Culture Gayton McKenzie to use Donald Trump's 100% tariffs on films made outside of the US as an opportunity to invest in the local film industry. The US president recently proposed a 100% tariff on all foreign-produced content. If implemented, it would apply to locally made films, potentially even productions filmed here and series sold into the US. 'I'm a firm believer in that when the door is closed, jump through the window,' Auret told The Citizen. Opportunity Auret, who most South Africans were introduced to when he appeared on the SABC 3 soapie Isidingo as Leon du Plessis, said he doesn't blame Trump for his decision because it's always been much cheaper for foreign films to be made outside of the US. Auret said the decision was however sad for the South African industry because not enough films are being made by locals. 'Hollywood screwed itself, especially with Los Angeles. The prices that they were paying to get location licenses, to get permits to be able to film in a studio- the executives screwed you over, it's not other countries, mister Donald Trump,' said Auret. 'The big money guys, they chased the films away. It became too expensive to shoot in Los Angeles.' The South African actor said that if one takes a movie with a $10 million budget in the US and shoots it in South Africa, the conversion rate means the budget swells to at least R180 million. 'You could shoot the exact same quality film in South Africa, with our crew, our cast. It makes sense not to shoot in a country that's not overcharging you for everything.' He said this was an opportunity for McKenzie to step up for the local film industry. 'Not just the sport side of it, but the arts and culture side of it. Get your mayors, councillors from different areas to put money into a film and let every place in South Africa become a film location,' expressed Auret. 'There's no backing. Nobody is doing a thing about the film industry, the DTIC and the NFVF has screwed over people,' Auret claimed. The Citizen contacted McKenzie's office for comment, but was unsuccessful at the time of publishing. Any response will be included once received. ALSO READ: SA's film success faces a Trump-sized threat 'No backing' In March, members of the Independent Black Filmmakers Collective, Independent Producers Organisation and other industry players protested outside the Department of Trade, Industry and Competition (DTIC) offices in Tshwane, voicing growing concerns over the DTIC's failure to address critical issues impacting the industry. In April, the South African Screen Federation (SASFED) criticised McKenzie for appointing National Film and Video Foundation (NFVF) CEO Vincent Blennies. 'The minister's disregard for established rules and guidelines can harm the regulatory frameworks that have been put in place to ensure fair distribution of resources, transparency and effective governance in the sector,' read a statement from SASFED. While addressing McKenzie as the minister, Auret called on mayors and politicians to invest in domestically-made films. 'Invest some of that money into filmmaking. Get those films to come over to your little town, little cities [and] shoot there, employ the locals,' said Auret. He said the benefit is that it creates a whole ecosystem, including accommodation, food, and transport services. The shooting of a film could involve as many as 180 people. 'The money spent on a film doesn't just go into the film; it's not like everything ends up on the screen. There's a lot of money spent outside of the film' ALSO READ: South Africans make their presence felt at the Met Gala in New York Tourism Auret says there's a lucrative tourism factor when people shoot films across South Africa. The impact of cinema on tourism is enormous. The fantasy film series The Lord of the Rings significantly contributed to New Zealand's GDP through tourism. The series, which was filmed entirely down under, boosted tourism by about 50%, bringing in an estimated NZ$33 million (R600 M+) annually. By 2018, New Zealand welcomed 3.6 million visitors annually, and tourism became the nation's largest export industry. Auret said South Africa has more to offer tourists than the country's three biggest metros, Johannesburg, Cape Town, and Durban. 'My whole big thing is not just about making films, not just about investing in the communities that are in those cities, but opening up the tourism. Getting people to go 'wow, that movie was shot where?'' NOW READ: REVIEW: Riky Rick's last album 'Boss Zonke Forever' epitomises his passion for young people
