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Free State special economic zone expected to boost South Africa’s green economy

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Newsday
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The construction of the three new projects at the SEZ is projected to create up to almost 9 000 jobs but residents have mixed reactions about the possibility for permanent jobs through the projects.

By Marcia Moyana

Residents from QwaQwa in the Free State are looking forward to getting jobs at one of the newly launched projects at the Maluti-a-Phofung Special Economic Zone (MAP-SEZ).

With an estimated combined investment of R120 billion, these projects are expected to increase the uptake of renewable energy and agricultural projects that will add to South Africa’s goal to reduce carbon emissions.

The three projects announced include an EV plant, a renewable energy project and an apple juice concentrate factory. Together they are projected to create about 8 800 jobs, including 600 seasonal ones.

The ten years old industrial hub has sites for up to 65 factories and the current occupancy rate of 58%.

Puseletso Mosito from QwaQwa is among 130 young people who were recently trained by the Free State Development Corporation, the Unemployment Insurance Fund and Eskom.

“I was trained in environmental management and the President’s speech gives me hope that we will indeed get jobs. This would mean the training was not futile and the skills programme we participated in was meant to assist us in finding jobs,” says Mosito.

During the 10-months programme, Mosito was trained in waste removal, recycling and agriculture.

When asked about whether she was confident that she would be placed in the zone, she responded, “ If the job comes, it will come.”

For Diakae Lebeko and Dipuo Motaung, any permanent job would be enough to secure their future.

Both have been working in an Expanded Public Works Programme (EPWP), earning a monthly stipend of R1600 for removing waste from stormwater drainage systems and streets in the Maluti-a-Phofung Municipality.

After almost five years working on and off in the programme, they are anxious that they could be without jobs after the local government elections.

“When the stipend comes, I already have debts to pay and I’m left with nothing. All I ask for is a permanent job from the President,” says Lebeko.

The mother of three is also hoping that her unemployed adult children will also get opportunities through the three newly launched projects.

Motaung on the other hand says while she might not be eligible for some of the projects because of her age, any opportunity for permanent employment is welcome.

“I am 55 years old and most of these job opportunities are for young people but what must happen to us if we don’t get jobs? That is why we were asking President Ramaphosa to give us permanent jobs,” says Motaung.

Her request is for women who fall outside of the required age group to also be considered so they can be able to sustain their livelihoods.

“Even if they can pay us a small salary, it will be better than nothing. We will be able to put food on the table and provide for our children,” she adds.

Job creation

Speaking at the official announcement of the new projects in QwaQwa on 9 October, South Africa’s President Cyril Ramaphosa argued for young people like Mosito to be considered for the jobs that will be created at the zone.

He further encouraged established manufacturers and small businesses to prepare for the needs of the new factories, from components and packaging to maintenance, cleaning, security and transport.

The group was trained in areas like plumbing, environmental practice and managing electrical systems, and are progressing towards placement.

“We need a firm partnership between government, industry, training institutions and investors so that skills development becomes a direct pipeline into economic participation,” says Ramaphosa.

However, CEO of the zone, Professor Moeketsi Mosola told Newsday that highly skilled engineers will initially come from China with plans to gradually increase the number of South African engineers over time.

“Factory-floor workers will be trained before production starts, through partnerships with the University of the Free State and a Maluti-a-Phofung college,” explains Mosola.

Residents from QwaQwa in the Free State are looking forward to getting jobs at one of the newly launched projects at the Maluti-a-Phofung Special Economic Zone (MAP-SEZ).

About the projects and why they matter for climate and energy

The R1 billion renewable energy project by Chinese-owned developers, YJC is expected to create at least 6 500 jobs and has been described as a consortium that will include solar charging infrastructure.

According to its website, YJC has teams that focus on building cloud-based energy data management systems, localised solar/EV charging software solutions and advanced energy hardware. The company is also expanding its operations and partnerships in South Africa and North Africa.

Joylong Automotive’s R5.5 billion project that will be manufacturing EVs and its investment is expected to create 1 500 direct jobs over five years.

The company plans to assemble up to 8 000 16-seat Joylong EA5 electric mini buses a year at the zone.

“Our first product will be a minibus with a 102 kWh battery and a range above 300 km, aimed at a minibus market,” says the representative and general manager for the Joylong-YJC Consortium, Micheal Fang.

According to Fang, the consortium will apply a phased approach which includes a local semi-knocked-down (SKD) assembly of the minibuses, integrated solar-storage-charging infrastructure, supporting battery systems, fleet operation and local skills training.

The electric minibuses will be deployed with the South African National Taxi Council (SANTACO), then design charging stations based on real operating data.

A sequence that matters for the climate case because emissions saving depends on the location of the charging power.

“The project will prioritise South African components, develop local suppliers, train local technicians and explore local minerals such as fluorite within the new energy value chain,” adds Fang.

According to Mosola, the EV project will assist in reducing emissions that currently come from up to 99% of vehicles in South Africa that run on petrol or diesel.

While he can not quantify the climate gains from solar charging power for the vehicles, Mosola told Newsday he was positive that the project will help decarbonise the economy.

Third in the launched projects is the Walk of Life Group (Drakensberg Fruit Processors), a juice concentrate plant that will manufacture the concentrate for Heineken Beverages South Africa.

Up to R330 million invested is expected to create at least 212 permanent and around 600 seasonal jobs. 

“The project is well-located because unlike the Western Cape, the Free State region has water available and many farmers already have irrigation,” says the Founder and CEO of Walk of Life, Sandile Koza.

He adds that apple growers facing various extreme weather conditions, the juice plant will help them recover the loss through the sale of damaged apples to the plant, addressing the climate crisis faced by farmers.

Between five and 10 new black apple farmers are also expected to be developed and supported through a programme that Kosa says is still in its planning stage.

“The zone’s VAT exemption and customs-controlled status have already saved the company about R15 million on equipment imported from Switzerland and the Netherlands,” Koza elaborates.

Residents from QwaQwa in the Free State are looking forward to getting jobs at one of the newly launched projects at the Maluti-a-Phofung Special Economic Zone (MAP-SEZ).

Reliable infrastructure

At the launch, Ramaphosa highlighted that the success of Free State’s emerging green economy and new-energy industrial value chain depends on reliable infrastructure like water, electricity and roads 

Highway Group CEO and Harrismith businessman, Ben Deysel, the town is one of Africa’s busiest routes, with at least 4 500 trucks passing through each day.

The declines in municipal infrastructure development require interventions to attract more investors to the province.

He adds that while the community and the business community are excited about these new investments, fixing infrastructure is a critical aspect.

“One loses hope sometimes because you hear a lot of promises and undertakings but this seems to be a real event where there is real investment,” says Deysel.

Summary

  • The construction of the three new projects at the SEZ is projected to create up to almost 9 000 jobs but residents have mixed reactions about the possibility for permanent jobs through the projects.
  • Residents from QwaQwa in the Free State are looking forward to getting jobs at one of the newly launched projects at the Maluti-a-Phofung Special Economic Zone (MAP-SEZ).
  • Speaking at the official announcement of the new projects in QwaQwa on 9 October, South Africa’s President Cyril Ramaphosa argued for young people like Mosito to be considered for the jobs that will be created at the zone.
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