5 years ago

Limpopo Business 2017-18 edition

  • Text
  • Development
  • Leda
  • Nedbank
  • Mutual
  • Exxaro
  • Beers
  • Investment
  • Business
  • Limpopo
  • Polokwane
  • Economic
  • Provincial
  • Province
  • Mining
  • Municipality
  • Sector
  • Tourism
  • Venetia
  • Edition
A unique guide to business and investment in Limpopo. Limpopo Business 2017/18 is the ninth edition of this highly successful publication that has, since its launch in 2007, established itself as the premier business and investment guide to the Limpopo Province. This edition of Limpopo Business is officially endorsed by the Office of the Premier of Limpopo. This book contains detailed insights into the plans of the Limpopo Economic Development Agency (LEDA) and the recently launched bus rapid transport system for the provincial capital, Leeto la Polokwane, together with a comprehensive register of all provincial government and municipal contact details. Investment news related to mining, telecommunications and tourism is carried in overviews of all the main economic sectors. To complement the extensive distribution of the print edition of the magazine, the publication is also available online at


SPECIAL FEATURE Limpopo Development Plan Improving lives, and creating a conducive environment for investment. Improving the lives of the citizens of Limpopo is the overarching aim of the Limpopo Development Plan. The economic levers that can bring that improvement about present investment opportunities, particularly in the sectors that have been identified as key drivers of growth: mining, tourism and agriculture. The Limpopo Development Plan (LDP) is targeting three broad areas for improvement and development: socio-economic, infrastructural and institutional. Every department of the Limpopo Provincial Government has targets within the LDP which are translated into actionable programmes to be implemented within time-frames. Development is defined as broad-based improvements in the standard and quality of life for the people living throughout the province, to which all institutions (including government, business, labour and citizens) contribute. Increased job creation, higher incomes, better access to good public services and sound environmental management are the measures of the development plan. The plan, currently in its implementation phase, is further supported by a spatial investment framework in public and private sector infrastructure, an integrated public transport policy and land policies. This article focusses on the economic aspects and the potential of the LDP for private investors to participate. Key elements of the Limpopo Development Plan are: industrialisation (beneficiation of mining and agricultural products and produce); mining (local suppliers, improved training and access to sector for entrepreneurs); infrastructure development; agri-processing; SMME promotion; and ICT and the knowledge economy (establish a WAN footprint). Mining is currently the most important part of the provincial economy, contributing nearly 30% to GDPR. Many platinum mining developments on the eastern limb of the Bushveld Complex have spurred growth in that region. One of the goals of the LDP is to see more beneficiation from the mining sector, which will support the goal of further industrialising the province’s economy. Related to this is an emphasis on the manufacturing sector. In response, the two Special Economic Zones (SEZs) at Musina and Tubatse promote manufacturing. Specific manufacturing value-chains are identified for each area, based on the base mineral being LIMPOPO BUSINESS 2017/18 22

SPECIAL FEATURE mined. The LDP notes that it is also important for planners to “promote diversification and multi-skilling of the workforce, in order to mitigate the risks of shocks associated with commodity price dips and mine closures”. The following areas have been identified as priority zones for the industrialisation strategy: Polokwane, Lephalale, Tubatse, Tzaneen and the Makhado-Musina corridor. Strategic infrastructure In as much as the Limpopo Development Plan is aligned with the broader National Development Plan, there are several national Strategic Infrastructure Projects (SIPs) which affect Limpopo. Three in particular will make a big impact, namely SIP 1 (Unlocking the Northern Mineral Belt with Waterberg as the Catalyst), SIP 6 (Integrated Municipal Infrastructure Project) and SIP 7 (Integrated Urban Space and Public Transport Programme). The last two influence developments in the provincial municipalities of Lephalale, Mopani, Sekhukhune, Capricorn, Vhembe and Polokwane. Other national SIPs of relevance relate to green energy, agri-logistics and rural infrastructure, regional integration and water and sanitation infrastructure. Within Limpopo, the Premier’s Infrastructure Coordinating Committee (PICC) is a vital component in the rollout of new infrastructure. There are several locally driven projects boosting the provincial economy and are being promoted within the context of this Limpopo Development Plan: construction of Nwamitwa Dam; raising of Tzaneen Dam wall; integrated Mooihoek Water Scheme; reticulation from De Hoop and Nandoni Dams; purified water supply to Bela-Bela, Modimolle and Mookgopong local municipalities; rural access roads in support of agriculture and tourism clusters; solar photovoltaic electricity generation; information and communication technology; infrastructure at Polokwane International Airport; nodal infrastructure for the priority growth points; and adequate maintenance for all existing infrastructure. Each of these infrastructure improvements will make life better for local residents, and they will also create a more conducive environment for investors. The Limpopo Department of Economic Development, Environment and Tourism (LEDET) is coordinating the province’s strategy to attract investors. Key to the plan is public investment into priority growth points in selected economic sectors. These cluster priorities underpin the economic part of the plan: • Coal: Petrochemical and Energy Cluster in Lephalale (Green City urban development, Growth Point) • Platinum Cluster in Mokopane and Tubatse (Mining Supplier Park) • Musina-Makhado Corridor Mining Cluster • Phalaborwa Mining Cluster (Copper, Phosphate and Magnetite) • Polokwane and Musina Logistical Hubs • Various Agricultural Clusters, based on Agri-parks • Various Tourism Clusters, in every district. Existing tourism assets include two UNESCO World Heritage Sites (Mapungubwe National Park and the Makapan Valley) and the iconic Kruger National Park. There is enormous potential for growth in cultural tourism where small villages could offer experiences based on traditional practices, unique arts and crafts and local cuisine. Cluster Value-Chain Development Strategies, including beneficiation opportunities, have been developed for each of these clusters by the LEDET. International relations is the responsibility of national government, but the LDP has flagged a number of potential areas for regional integration that would be mutually beneficial: relationships with Botswana and Zimbabwe relating to the Coal and Energy Cluster in Lephalale and the Mining Cluster in the Musina-Makhado Corridor; an agreement with Zimbabwe to improve the efficiency of the Beit Bridge Border Post, as part of the Logistics Cluster; and an agreement with Mozambique relating to tourism and nature conservation. 23 LIMPOPO BUSINESS 2017/18

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