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Limpopo Business 2018-19 edition

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A unique guide to business and investment in Limpopo Province, South Africa. Launched in 2007, the 2018/19 edition of Limpopo Business is the 10th issue of this highly successful publication that has established itself as the premier business and investment guide for the Limpopo Province. Limpopo has many investment and business opportunities. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on developments in the transport and logistics sector and a focus on tourism. Interviews with industry leaders in development finance from the Industrial Development Corporation and the Small Enterprise Development Agency share their insights into the state of the provincial economy. Investment news related to mining, telecommunications and development finance is carried in overviews of all the main economic sectors. The publication also has a comprehensive register of all provincial government and municipal contact details. Updated information on Limpopo is also available through our monthly e-newsletter - which you can subscribe to at www.globalafricanetwork.com

SPECIAL FEATURE

SPECIAL FEATURE Limpopo Development Plan Reducing poverty and creating sustainable jobs. With the announcement of significant investment in the newly proclaimed Musina-Mukhado Special Economic Zone (SEZ), the Limpopo Development Plan takes on renewed significance as a guiding document for economic growth. 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. When the Limpopo Development Plan was introduced, Premier Chupu Stanley Mathabatha said, “We are convinced that the Limpopo Development Plan reflects our shared vision and strategic imperatives towards poverty reduction, elimination of social inequality and the creation of sustainable jobs in our province.” The Limpopo Development Plan (LDP) targets 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. The plan is supported by strategies relating to a spatial investment framework in public and private sector infrastructure, an integrated public transport policy and policies on land development. 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. Recent platinum mining developments on the eastern limb of the Bushveld Complex have increased this effect but global commodity prices have been uncertain in recent years. 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 that needs to grow. In response, the two Special Economic Zones (SEZs) at Musina LIMPOPO BUSINESS 2018/19 16

SPECIAL FEATURE and Tubatse will boost manufacturing. Specific manufacturing value chains are identified for each area, based on the base mineral being 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 are expected to 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 will influence developments in the provincial municipalities of Lephalale, Mopani, Sekhukhune, Capricorn, Vhembe and Polokwane. Other national SIPs of relevance relate to green energy, agrilogistics 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 roll-out of new infrastructure. There are several locally driven projects that will boost the provincial economy and will be 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; 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 Agriparks • 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 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. 17 LIMPOPO BUSINESS 2018/19

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