Cabinet has approved the decision by Trade and Industry Minister Dr Rob Davies to designate the Musina-Makhado Special Economic Zone (SEZ), in the Vhembe region of Limpopo.

The designated zone will promote industrial development in the region with specific focus on mineral beneficiation, agroprocessing, petrochemicals and other light industries.

According to Davies, the designation is in line with the Industrial Policy Action Plan, which identifies SEZs as strategic interventions designed to accelerate economic development through greater investment, export volumes and job creation.

“In alignment with the National Development Plan, this development is intended to accelerate economic growth, attract foreign and domestic direct investment, expand the manufacturing sector and mineral beneficiation, and create employment in the region,” he says.

He adds that the Musina-Makhado region is also part of the Trans-Limpopo Spatial Development Initiative and is well positioned for regional integration and linkages with Mozambique, Zimbabwe and Botswana.

Musina is also the main land-based trade route between South Africa and the broader African continent.

This development will also improve rail and road transport links between South Africa and the rest of the continent.

The designation of the SEZ was preceded by an extensive public consultation process undertaken by the Department of Trade and Industry in April.

During the public hearings and meetings held in Musina, Makhado and Nzhelele, members of the local communities expressed their support for the creation of the SEZ in the area.

They emphasised that issues of job creation through fair employment processes, capacity building and skills development, financial support and development of local small, medium- sized and microenterprises and cooperatives and empowerment deals for facilitating equitable ownership need to be prioritised.