The Free State provincial government must not put all their eggs in the MAP-SEZ’s broken basket

Issued by Dr Roy Jankielsohn MPL – Leader of the Official Opposition in the Free State Legislature
15 Jul 2020 in Press Statements

Note to Editors: Please find attached video in English from Dr Roy Jankielsohn MPL. Please also find pictures here and here.

During her budget speech the MEC for Finance in the Free State, Ms Gadija Brown, indicated that: “…the MAP-SEZ (Maluti-a-Phofung Special Economic Zone) is expected to drive economic activities for the province on key sector priorities such as manufacturing, agro-processing, IT, food processing and automotive”.

With this comment the MEC appears far removed from realities on the ground. I visited the SEZ again yesterday to ascertain what the impact of the failed MaP municipality may have on investment in the SEZ.

This municipality needs urgent investment and employment for its desperately impoverished citizens. While the MAP-SEZ was initially showing signs of progress, the decay of municipal services and infrastructure are blatantly visible. The CEO of the MAP-SEZ, Ms Mpho Mgemane, warned the portfolio committee responsible for economic development in the Free State Legislature that the greatest threat to investment remains the failed municipality that remains unable to deliver even the most basic of services to residents.

The MAP-SEZ was initiated in 2014 on 1039 hectares of land at Tshiame outside Harrismith. The SEZ’s are established in terms of a national SEZ programme mandated by the SEZ Act that was proclaimed on 9 February 2016 in order to facilitate the building of SEZ infrastructure, promote co-ordinated planning among key government agencies and the private sector and guide the allocation of resources required for such developments.

Industrial development has been a driver of economic development and job creation in most developed economies. The SEZ’s provide transport and logistical networks as well as tax and other financial incentives that are not available to investors outside of such zones. Communities benefit from the direct investment in SEZ’s and indirect economic benefits through value chains linked to such zones. SEZ’s also bring with them people with special management and technical talent and skills.

The greatest inhibiting factor for the success of the MAP-SEZ remains the MaP municipality that has experienced financial and administrative collapse due to ANC-factional infighting and mass looting of resources. This has impacted on the municipality’s ability to deliver basic services such as safe and reliable water supply, waste water treatment, refuse removal and infrastructure development. While the SEZ may provide sound investment infrastructure within its perimeter, professional employees require a decent place to stay with access to basic services and other municipal amenities.

The DA-run Western Cape has vibrant and successful SEZ’s at Saldanha Bay that has already attracted R3,8 billion in investment into the province. The DA supports the SEZ in the Free State, but our people must note that the poorly managed ANC-run municipal and provincial governments are inhibiting investment and job opportunities.

The DA is concerned that investment in a failed municipality that shows no progress and, even under an improved administration, will take decades to recover. The DA will use the platforms within the various portfolio committees to ensure that the provincial government does not put all their eggs in a broken basket.