Chinese to Invest $2.8 Billion in South Africa Economic Zoneby
Group including Hong Kong Mining Exchange to develop park
Energy-related zone to boost manufacturing, create 21,000 jobs
A group of Chinese investors will invest more than 40 billion rand ($2.8 billion) in an energy and metals-related industrial park in South Africa, giving a boost to the country’s government as it seeks to grow the manufacturing industry and ease unemployment.
The consortium, led by Hong Kong Mining Exchange Co., will develop and manage the park, which will house plants to process minerals including chrome, manganese, coking coal and lime and is expected to create almost 21,000 jobs, South Africa’s Department of Trade and Industry said in an e-mailed statement on Thursday. The park will be located inside a new Special Economic Zone in the north of Limpopo, a largely rural province.
South Africa’s development of economic zones, which offer incentives including a 15 percent corporate tax and streamlined approval processes, seeks to bolster industrial activity and investment in an economy that’s forecast to grow at the slowest rate this year since a 2009 recession. The Limpopo park also forms part of state efforts to ensure the nation benefits more from its mineral resources.
Trade and Investment Minister Rob Davies received Cabinet approval last week to designate the zone and issue an operator permit.