Limpopo’s Musina-Makhado Project Stuck in Limbo

Natalie Nyathi

The Musina-Makhado Special Economic Zone in Limpopo was launched by President Cyril Ramaphosa in 2018, hoping to attract over R40 billion in investments. However, after seven years, the project has mostly stalled, with only one company showing real interest in investing. Despite spending more than R100 million on planning and consultants, the site still lacks basic services like roads, electricity, and water.

The MMSEZ was meant to create a space for businesses, with one area for light manufacturing and another for heavy industry. It was expected to help the local economy and create jobs. Yet, a recent report shows that the money spent hasn’t led to any real progress.

A lot of the budget, R67.5 million, has gone to consultants, with R50 million set aside for infrastructure. But the sites are still empty of essential services. Minister of Trade, Industry and Competition Parks Tau said R2.27 billion is needed for infrastructure, but only R1.07 billion has been budgeted for the next few years. This raises concerns about the project’s future.

Consultants have received over R85 million, but no infrastructure has been built yet. Contractors have faced delays and legal issues, especially Tshiamiso Trading, which had to stop working because of land ownership problems. They are now taking legal action for unpaid work, making the situation even more complicated.

Environmental groups have also raised concerns about how the project might impact the local ecosystem. Some legal challenges have been made regarding environmental approvals, showing the need for careful planning.

While the project was supposed to bring in R40 billion, only R2.1 billion has been confirmed from potential investors. So far, only Kinetic Development Group from China has committed to a R16 billion ferrochrome smelter, but this is dependent on getting the necessary approvals.

A major issue is finding a reliable water supply for the area. The local district has agreed to provide some water to start work, and there are plans for a pipeline from Zimbabwe and to build two dams for future needs.

To try to get things moving again, the MMSEZ has started a new plan. A division of the Industrial Development Corporation will oversee the project, with engineers assigned to help. Construction is expected to begin in September 2025, but many challenges remain.

The MMSEZ, once a symbol of hope for economic growth in Limpopo, now faces many obstacles and an uncertain future.