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The SEZ is positioned as a potential hub for the Hydrogen Valley project that aims to create an integrated hydrogen ecosystem by connecting various hydrogen applications across the country from Mokopane in Limpopo, Johannesburg and Durban.

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Sizwe sama Yende

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Plans are afoot to transform Fetakgomo Tubatse Local Municipality’s economic landscape following strong signs that nothing will stop the establishment of another special economic zone (SEZ) in Limpopo province.

The Fetakgomo Tubatse SEZ in Steelpoort will see the chrome and mining area adding low-carbon green economy among its already existing industries to mitigate climate change caused by fossil fuels while simultaneously maintaining energy security for existing industries to keep operating.

Located in an industrial hub hemmed in two huge mining establishments, the Samancor and Lion Ferrochrome smelter, the SEZ is in a strategic place.

It’s strategic aim is to develop a supply of green primary energy such clean hydrogen and solar of both downstream and upstream activities of the platinum group metals and chrome value chains. In fact, this SEZ is envisioned as both a consumer and producer of hydrogen with a potential to drive industrialisation and beneficiation of mining outputs.

SEZ establishments are driven by the Department of Trade, Industry and Competition to industrialise certain parts of the country to stimulate economic growth and create sustainable jobs.

These are geographically defined areas where regulations are relaxed to attract investment.  Companies operating within the SEZs can benefit incentives such as tax breaks, reduced corporate income tax rates, and potential waivers or reductions on customs duties. 

Fetakgomo Tubatse mayor, Eddie Maila, said the SEZ would undoubtedly attract direct foreign and local investment into the Sekhukhune district. Maila said the spin-offs of these investments would be realised in the vast opportunities that would be created for small and emerging enterprises in the Fetakgomo Tubatse area.

“The SEZ will bring companies focusing on mineral beneficiation, renewable and green energy production as well as general manufacturing,” Maila said.

“Many job opportunities will be created through the engagement of small, micro and medium enterprises. We should also not forget the development of skills, technology and innovation that will accompany the establishment of the SEZ,” he added.

It is envisaged that the Fetakgomo Tubatse SEZ will create 8 000 jobs in the short term that will culminate into 20 000 jobs just after a decade.

The SEZ is positioned as a potential hub for the Hydrogen Valley project that aims to create an integrated hydrogen ecosystem by connecting various hydrogen applications across the country from Mokopane in Limpopo, Johannesburg and Durban. It will integrate hydrogen production, storage, and end-use technologies, leveraging the region's platinum group metals for hydrogen production.

 

With platinum and iridium being found in abundance in Fetakgomo-Tubatse, the SEZ’s location is perfect in the sense that these metals are crucial catalysts in the hydrogen production process.  

The area allocated to the Fetakgomo-Tubatse SEZ covers 1220 hectares.  Phase one consists of 316 ha which is reserved mainly for a mix of light and heavy industrial use and other hydrogen energy related uses. Six tenants have already committed to setting up operations for chrome-related beneficiation, hydrogen energy components assembly, electric vehicles, solar energy and pharmaceuticals

Phase two and three will be developed in line with market demands. It will include renewable energy, heavy industry, additional light industry space, mixed use and residential spaces.

Limpopo premier, Dr Phophi Ramathuba, has said that the SEZ would be a game-changer and was not only about infrastructure but also creating a future. “It is about transforming an economically marginalised district into a driver of Limpopo’s economy and a proud contributor to South Africa’s reindustrialisation agenda,” she said.

According to the Fetakgomo Tubatse SEZ website, industries should relocate to Steelpoort because of various reasons that include enabling infrastructure and warehouses, close proximity to mining operations, carbon credits and reduced carbon tax.

It also adds that other incentives include reliable and low carbon green energy, global leadership in production of chrome and huge resources of the platinum group metals, land security, state-of- the-art infrastructure, water provision (De Hoop Dam with a capacity of 348-million cubic meters), reliable road and rail network.

Short distances to ports and borders would also be another benefit. The SEZ is  380 km to the port of Maputo, 600 km to the port of Richards Bay and 400km to Musina Beitbridge Border Post.

“The FTSEZ will provide a secure business environment and is designing world class manufacturing and logistics platforms that will be positioned to support transportation efficiencies through road, rail and heliport connectivity to ports and border posts.”

 

The identified clusters and investment opportunities, the website highlights, include:

·      Manufacturing of hydrogen energy from fuel cells as part of the South African Hydrogen Valley led by the Department of Science and Technology, production of solar and biomass energy;

 

·      Production and refurbishment of batteries, development of a platinum refinery; beneficiation of chrome-related products; manufacturing of auto-catalysts, manufacturing and assembly of green energy automotive components, electric vehicles, trucking components, machinery, equipment and components used in mining operations, agro-processing and development of ICT infrastructure.