Trade, Industry and Competition Minister Parks Tau has urged traditional leaders and local communities to actively participate in the Fetakgomo-Tubatse Special Economic Zone (SEZ), describing it as a key driver for expanding mineral processing and job creation in Limpopo.
This as government steps up efforts to attract investment, promote mineral beneficiation and create jobs in Limpopo.
Speaking at a Ministerial engagement in the province’s Sekhukhune District, Tau said the designation of the Fetakgomo-Tubatse SEZ in May this year marked an important milestone in the industrial development trajectory of Limpopo and South Africa.
“Strategically located in the Steelpoort industrial hub, between the Lion Ferrochrome and Samancor Ferrochrome smelters, the Zone is positioned to support mineral beneficiation, manufacturing, renewable energy and related industrial activities. It has access to approximately 1010 hectares of land secured through a lease agreement with the Dithamaga Trust,” Tau said.
The Minister noted that South Africa has significant reserves of platinum group metals, chrome, manganese, vanadium, titanium, iron ore, fluorspar, zirconium, rare earth elements and battery minerals.
“However, the country continues to export substantial volumes of raw and semi-processed minerals while importing many finished products manufactured from these resources,” he said.
Tau added that the country needs to strengthen its ability to process minerals locally and manufacture more products domestically to retain greater economic value and expand employment opportunities.
“Our industrial policy is clear that we must process more of what we mine, and we must manufacture more of what we use. We must also export more of what we manufacture. Few places make the case for beneficiation better than Steelpoort,” Tau said.
The Minister said the SEZ had been planned to support mineral processing, metal fabrication, manufacturing, renewable energy, logistics and related services.
“This Zone sits between the Lion and Samancor ferrochrome smelters and is surrounded by some of the country's major platinum and chrome operations.
“It has been planned for exactly this purpose: mineral processing, metal fabrication, manufacturing, renewable energy, and the logistics and services that support them,” he said.
Supporting job creation
The Fetakgomo-Tubatse SEZ has an investment pipeline valued at R52.6 billion, which is projected to support around 8000 jobs in the short to medium term and potentially 20 000 jobs over a ten-year period.
The development is expected to help position Limpopo as a destination for investment in mineral beneficiation and related industrial activities, while strengthening linkages between mining operations and local manufacturers.
Tau said the SEZ has reached several regulatory and infrastructure milestones, including approval for township establishment and environmental authorisation through a Record of Decision.
Phase 1 infrastructure development, covering approximately 75 hectares, has commenced.
Additionally, site clearance has been completed, perimeter fencing is reported to be 95% complete, while construction of the guardhouses is approximately 65% complete.
“The Limpopo Provincial Government is funding the Zone’s operational costs and has committed R445 million towards bulk infrastructure development.
The Development Bank of Southern Africa has been appointed to provide project preparation and implementation support, including assistance with an application to the Department of Trade, Industry and Competition’s SEZ Fund.
“The next step is to ensure that the funding application is complete, technically sound and aligned with the Fund’s requirements,” Tau stated.
Eskom is undertaking detailed design and technical assessments for electricity infrastructure, supported by a regular steering committee with the SEZ.
Meanwhile, bulk water and water-treatment works are at the concept and viability stage, with detailed design targeted for completion by January 2027.
Tau called on mining companies to support the Zone by opening their supply chains to local manufacturers, sharing demand for goods and services and considering investments that could anchor industrial activity in Steelpoort.
“Let me speak directly to our mining houses. You are central to the success of this Zone. Share your demand for goods and services. Open your supply chains to local manufacturers.
“Consider anchoring your own investments here,” he said.
Partnerships with Sekhukhune TVET College, the University of Limpopo and the Tshwane University of Technology are also expected to support skills development and prepare young people for employment opportunities arising from new investments.
Tau also emphasised the need to ensure that industrial expansion respects the environment and surrounding communities.
“Industrial growth must also respect the environment and the communities who live alongside it. That is how we build a Zone that lasts,” Tau said.
The Fetakgomo-Tubatse SEZ forms part of South Africa’s broader Special Economic Zones programme, which seeks to attract domestic and foreign investment, expand industrial capacity and promote economic development.
South Africa’s SEZs host 234 private companies, representing a combined investment value of more than R47 billion.
The SEZ programme has created 134 478 jobs, of which 32 904 are permanent. – SAnews.gov.za
