Chinese consortium to invest $2.8 billion in South Africa industrial zone

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Chinese consortium to invest $2.8 billion in South Africa industrial zone

10:12 CAT | 15 Jul 2016

Mzanzi / Rob Davies, South Africa's Minister of Trade and Industry

A group of Chinese investors will pump more than 40 billion rand ($2.81 billion) into the South African economy to build an industrial park, government said on Thursday.

The trade ministry said a consortium of Chinese investors led by Hong Kong Mining Exchange would invest in power, pig iron and steel plants amongst other commodities in the Musina-Makhado special zone in the Limpopo province near the border with Zimbabwe.

These projects would be implemented over a five year period and create around 21,000 jobs in the region, the Department of Trade and Industry said in a statement.

Minerals such as chrome, manganese, coking coal and lime will be extracted and beneficiated in the park in line with the country’s national industrialisation objectives, the department said.

A new incentives package set up in 2014 includes a corporate tax rate of 15 percent for qualifying investments, compared to the rate of 28 percent for companies.

Source: Reuters