MAP SEZ: exorbitant salaries overshadow economic gains

By Emily Setona

BLOEMFONTEIN – The Maluti-a-Phofung Special Economic Zone (MAPSEZ) has been positioned as a key driver of economic and infrastructure development in the Free State, with the potential to attract billions in investment and create thousands of jobs.

However, concerns have been raised over the fact that the salaries of its leadership exceed the revenue they generate through investment.

During a media briefing, Free State Premier Maqueen Letsoha-Mathae expressed concern over the financial misalignment within the SEZ, questioning the justification of high salaries for executives who fail to secure substantial investments.

“In my last speech, one thing that I also emphasized was to have a CEO in the SEZ who’s earning more than what is given back to communities. I said to the MEC, let’s look at what we are going to do with this SEZ. Because indeed we have staff and personnel that need to attract investors. How do we pay Mr. Dukwana five million when he can’t even bring an investment of a million?

“So those are the issues we are working on, but some of these things are regulated and legislated. We cannot change the salary of the CEO, but we have to look at the SEZ itself, how do we strengthen that so that they address the issues that the SEZ is meant for,” Letsoha-Mathae stated.”

This revelation has sparked concerns over accountability and the effectiveness of MAPSEZ in fulfilling its core mandate. While the zone has secured some investments, critics argue that the financial returns do not justify the salaries paid to its executives and staff.

Adding to the economic challenges, the premier also acknowledged the deteriorating infrastructure managed by the Free State Development Corporation (FDC), which poses a significant hurdle to economic growth and investor confidence.

“The infrastructure that is managed by the FDC is in a state of disrepair. However, we have taken steps to rectify this. Positions were advertised, and we now have a new board. We need board members who are skilled and qualified,” she told the media.

The restructuring of the FDC board aims to bring in expertise that can facilitate the restoration and modernization of infrastructure crucial for economic development. The appointment of competent board members is expected to enhance the corporation’s ability to manage its assets effectively and support the province’s broader economic objectives.

Despite these challenges, Letsoha-Mathae highlighted some investment successes in her State of the Province Address (SOPA), which was delivered at Lemo Mall Green Park on February 21, 2025. She reaffirmed the government’s commitment to revitalizing local economies and positioning the Free State as a prime investment destination.

“The Maluti-a-Phofung SEZ secured lucrative investments in 2024/25, including the Walk of Life fruit processing business (R330 million, 173 jobs), Clan Leslie Estates (R21 million, 160 jobs), and a rabbit abattoir (R37 million, 66 jobs),” the Premier announced.

The SEZ currently has a pipeline of 16 investors, expected to bring in R3.26 billion and create 1,243 employment opportunities by 2026.

To support these investments, infrastructure improvements, such as increased power supply, security enhancements, and road maintenance, are being implemented.

Beyond the SEZ, the Free State government is focusing on key infrastructure developments to support economic growth: road Upgrades: Major projects include the Zastron–Sterkspruit, Rosendal–Ficksburg, and Kroonstad–Steynsrus routes; industrial growth: The refurbishment of factories in Phuthaditjhaba Industrial Park, benefiting 30 clothing and textile operators.

Energy Expansion: A renewable energy investment pipeline set to generate 6,567 megawatts by 2026.

As part of a broader strategy, the Free State is positioning itself as a logistics and freight hub within the Gauteng-Free State-KZN corridor, leveraging assets like the Tshiame Industrial Area and Harrismith Gateway.

“With these developments, the Free State is on track to becoming a thriving economic centre,” Letsoha-Mathae concluded, emphasizing that ongoing investment and infrastructure expansion will ensure long-term economic sustainability.

While these investments paint an optimistic picture, the challenge remains: Will the leadership of MAPSEZ and FDC rise to the occasion, ensuring that financial resources are utilized effectively to drive real economic transformation.