Unlocking Limpopo's Industrial Potential
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BY: CHANON LECODEY MERRICKS | ONLINE EDITOR M@KE K@Si GRE@T ©®™
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BY: CHANON LECODEY MERRICKS | ONLINE EDITOR
Unlocking Limpopo's Industrial Potential: The Rise of the Fetakgomo-Tubatse Special Economic Zone
STEELPOORT, LIMPOPO — In a decisive push to reshape South Africa's economic trajectory and move away from exporting raw minerals, Minister of Trade, Industry and Competition Parks Tau delivered a compelling keynote address at the ministerial engagement on the Fetakgomo-Tubatse Special Economic Zone (FTSEZ).
Held at the Samancor Chrome Club in Steelpoort, Sekhukhune District, the gathering brought together key stakeholders, including Limpopo Premier Dr Phophi Ramathuba, Her Majesty Queen Leganabatho II Manyaku Thulare of the Bapedi Kingship, traditional leaders, investors, and community representatives.
Shifting from Exporting Ore to Local Beneficiation
Minister Tau underscored a central paradox in South Africa's economy: despite possessing globally significant reserves of platinum group metals, chrome, manganese, vanadium, titanium, iron ore, and battery minerals, the country has spent over a century exporting raw and semi-finished minerals while importing the finished products made from them.
"For generations, wealth has been taken out of this land. For too long, the value left with the ore, the processing happened elsewhere, and the skilled jobs were created elsewhere," Minister Tau stated.
Strategically situated in the Steelpoort industrial hub between the Lion Ferrochrome and Samancor Ferrochrome smelters, the FTSEZ is purpose-built to reverse this trend. Designated on May 22, 2026, the Zone spans approximately 1,010 hectares of land secured through a lease agreement with the Dithamaga Trust. It aims to anchor mineral processing, metal fabrication, manufacturing, and renewable energy initiatives. The investment pipeline is projected to reach R52.6 billion, supporting roughly 8,000 jobs in the short to medium term and up to 20,000 jobs over a ten-year period.
Progress on Infrastructure and Institutional Frameworks
Significant groundwork has already been laid to transition the Zone from concept to reality:
Regulatory Approvals: Township establishment has been approved, and the Zone has secured its environmental authorisation via a Record of Decision.
Phase 1 Development: Spanning approximately 75 hectares, site clearance is complete, perimeter fencing is 95% complete, and guardhouse construction stands at 65% complete.
Governance Model: A quadripartite agreement ensures shared participation and equal 25% stakes across national government (the dtic), the Limpopo Provincial Government, the Sekhukhune District Municipality, and the Fetakgomo-Tubatse Local Municipality. Finalising the FTSEZ Board remains an immediate priority for effective governance.
Financial & Technical Backing: The Limpopo Provincial Government is funding operational costs and has committed R445 million toward bulk infrastructure. The Development Bank of Southern Africa (DBSA) is providing implementation support, while Eskom advances electricity designs, and bulk water and stormwater plans progress toward finalization.
An 8-Point Plan for Accountability and Execution
To maintain momentum, Minister Tau outlined an 8-point action plan for stakeholders:
Governance: Finalise the FTSEZ Board without delay to lock in shared accountability.
Infrastructure: Establish an integrated schedule for power, water, roads, and sanitation with strict deadlines.
Funding: Finalize a complete, technically sound application to the dtic's SEZ Fund with DBSA collaboration.
Investor Conversion: Draft precise project milestones for each of the nine Phase 1 investors to eliminate roadblocks.
Monitoring and Reporting: Deploy a centralized implementation dashboard to track infrastructure, funding, job creation, and local procurement.
Mining-House Partnership: Engage smelting and mining companies on commercial beneficiation, local supply chains, and anchor investments.
Skills and Community Participation: Form practical partnerships for youth training, SMME development, and local recruitment.
Inclusive Growth for Sekhukhune Communities
Emphasizing that growth must be shared, Minister Tau called on mining houses to open their supply chains to local manufacturers and urged that local enterprises, transport operators, and artisans be integrated into the value chain. Collaborations with educational institutions like Sekhukhune TVET College, the University of Limpopo, and the Tshwane University of Technology will be vital in equipping local youth with the skills demanded by incoming investors.
"This Zone must not be something you watch from outside the fence," Minister Tau concluded. "Let us make Steelpoort known not only for what lies beneath the ground, but for what we build on top of it."
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