Pretoria – President Jacob Zuma will tomorrow launch the Maluti-A-Phofung Special Economic Zone (MAP-SEZ), in Harrismith, in the Free State, said the Presidency.
Tuesday’s launch is part of government’s Special Economic Zone Programme, which is aimed at accelerating economic growth and development in designated regions of the country.
The Maluti-A-Phofung Special Economic Zone (MAPSEZ) functions as a back-of-port operation to ease congestion at the Durban port.
The special economic zone also provides South African customs functions and facilities for imported goods and export goods, including goods moving north into Southern African countries.
The MAPSEZ also provides road and rail logistics and handling facilities for the Gauteng–Durban port corridor and links it to the Bloemfontein–Cape Town corridor.
The Maluti-A-Phofung Economic Zone comprises 1038 hectares land and is envisaged to accelerate economic growth and development in the region, as part of the Government’s programme of radical socio economic change.
The main industries the MAPSEZ serves are agriculture, agro processing, automotive and logistics, which includes container terminal and car terminal facilities.
“The Industrial Policy Action Plan driven by the Department of Trade and Industry has identified strategic special economic zones across the country to enhance industrialisation, attract foreign direct investment as well as create employment,” said the Presidency.
Companies operating within Special Economic Zones are incentivised in line with the SEZ Act of 2014 and are eligible for 15% corporate tax for ten years, building allowance tax relief, employment tax relief for low level earning employees and the 12i tax allowance for development of greenfield operations.
The Presidency said MAPSEZ will integrate emerging enterprises into various industry value chains to create opportunities for entrepreneurs and employment for local people.