30 Jul 2023

Lobatse was identified as one of the localities suitable for the establishment, development and management of a Special Economic Zone (SEZ) in 2013, says Minister of Trade and Industry, Mr Mmusi Kgafela.

Answering a parliamentary question, Mr Kgafela said the identification followed a study that was undertaken by Kaizer and Associates Consultants. 

He explained that following the approval of the SEZ policy and SEZ Act of 2015, his ministry consulted local authorities in Lobatse to assist in the identification of a suitable Special Economic Zone site.

He said Lobatse Town Council in 2019 passed a resolution recommending that Spitskop zone (369ha) and the Leather Park zone (36.17ha) be part of the Lobatse SEZ.

He said the Minister of Trade and Industry declared Lobatse SEZ (Spitskop and Leather Park zones) as published in the Government Gazette dated June 11, 2021 in accordance with the provisions of Section 29 (5-7) of the SEZ Act of 2015.

He highlighted that parallel to the Lobatse SEZ declaration process, SEZA engaged consultants to prepare the Lobatse SEZ master plan or business case and urban and landscape designs.

Minister Kgafela said the projects commenced in November 2019 and were completed in October 2021, adding that the projects took longer than expected due to the COVID-19 pandemic.

Minister Kgafela pointed out that the master plan entailed a cadastral survey of phase one of 100 hectare plots as one of the project deliverables.

He highlighted that full infrastructure development for phase one was expected to commence during the 2023/24 financial year under the developer manger model to be implemented by the Ministry of Transport and Public Works.

In addition, he said the development of Lobatse Leather Park on the Spitskop zone by the Local Enterprise Authority (LEA) had already commenced with minimal works ,which entailed bush clearing and fencing of the site.

Minister Kgafela said parallel to the SEZs master planning and declaration process, his ministry continued to market and engage with the potential SEZ investors who wished to set up businesses in SEZs.

With respect to Lobatse SEZ, he said SEZA was currently at an early stage of assessing an investor who was proposing to invest P200 million with an estimated job opportunities of about 200.

He said his ministry was not aware of any SEZ licensed company that had lost money and interest to commence operations at the Sir Seretse Khama International Airport SEZ.

He pointed out that SEZA had so far licensed three companies with a total investment value of about P994 million.

He explained that the companies were expected to create an estimated 275 jobs, adding that SEZA was facilitating all the companies with land sub-leases and applications to access the various SEZ incentives to commence their business operations.

Member of Parliament for Lobatse, Dr Thapelo Matsheka had asked the minister to inform Parliament when Lobatse was declared a Special Economic Zone and what infrastructure development had commenced in the identified area.

Dr Matsheka also asked the level of investment pledged or was under consideration for the area and the jobs expected to be created.

He further asked if the minister was aware that some of the investors in the SSKIA SEZA had lost money and interest on the commencement of operations of the zone due to delays in the resumption of their project. Ends