Maluti-a-Phofung CEO explains the competitive advantage of Special Economic Zones

Maluti-a-Phofung Special Economic Zone (SEZ) is making waves in the investment landscape, positioning itself strategically to attract both local and foreign investors. In a recent interview with CEO Mpho Mgemane, the competitive advantages of the SEZ were highlighted, shedding light on the incentives offered and the sectors it aims to develop. Located on the N5, not far from Johannesburg and the Devon Port, the zone provides easy access to key markets and ports, making it an ideal hub for trade. One of the standout offerings of the SEZ is the array of tax incentives available to businesses within its boundaries. These include tax breaks on building depreciation, corporate tax reductions from 28% to 15%, and exemptions on value-added tax for imports and exports. Such incentives make it an attractive destination for investors looking to maximize their returns. The Global Investors Trade Bridge event, which recently took place, brought together participants and potential investors from countries like Angola and Bulgaria. The SEZ aims to attract investments across a range of sectors, including automobiles, manufacturing, pharmaceuticals, and agro-processing. By fostering trade relationships with countries within the Southern African Development Community (SADC), such as Angola, the zone seeks to create a mutually beneficial environment for all partners. While international investment is crucial, the SEZ also places emphasis on local participation to benefit surrounding communities like Puta di Chaba, Guagua, and Pumu Long. A key focus of partnering with foreign investors is skills transfer, essential for South Africa's economic growth. By encouraging foreign investors to share their expertise, the SEZ aims to uplift the community by creating job opportunities and fostering emerging local businesses. The collaborative effort between big corporations and local enterprises is crucial in achieving the overarching goal of the SEZ - to stimulate economic development and job creation in the region.