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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


INTERVIEW In this financial year, RAL will commence eight new projects, on top of nine multi-year projects. Some of the road projects to be completed this year include the road between Koedoeskop and Dwaalboom (Waterberg District Municipality), Ga-Seleka roads connecting 13 villages to Lephalale (Exxaro Resources and RAL), upgrading from gravel to tarred roads in several locations and the rehabilitation of the R555 to Tukakgomo village in Tubatse Fetakgomo Municipality, in partnership with Tubatse Chrome (Samancor). What are your priorities for the short term? To avoid the one-step forward two-steps backward syndrome. As RAL intensifies its battle against backlog, RAL will: • widen the net on private-sector partnerships. Mines that are returning for second partnerships since 2015 are increasing their contributions, a vote of confidence in the way the agency conducts business. • engage with technology solution-oriented consulting companies to explore ways of delivering affordable but superior quality roads. • focus on the preservation strategy by channelling available resources to maintenance of existing road network while upgrading roads in economically strategic areas. Does RAL support small, medium and micro enterprises (SMMEs), women, youth and people living with disabilities? In all its upgrading projects, RAL has set aside 30% for SMME development, and 10% of contract value is ringfenced for the empowerment of local labourers. We use the roads we build as vehicles for growing the economy in the villages where we implement projects. The main contractors are required to subcontract 30% of contract value to local SMMEs and spend 10% of contract value to employ local labourers. In the period 2015 to 2017, a total of more than R460 million was spent on SMMEs. The total number of job opportunities created in the period 2015 to 2017 is about 3 833. In the period 2015 to 2017, the total amount spent on local labour is about R76.7 million. This is a clear indication that our road infrastructure delivery programmes are designed to drive village economies. Government recognises “A SERIOUS DENT IN THE BATTLE AGAINST THE ROAD INFRASTRUCTURE BACKLOG” that people living with disabilities, women and the youth are the most vulnerable groupings economically, and preference is always given to them in our programmes. In the period 2015 to 2017, RAL has equipped a total of 1 033 locals with accredited training, 60% of whom are young people and women. RAL has for many years supported a considerable number of students pursuing studies in civil engineering with bursaries and internships. Can local communities become involved in road maintenance? There are two types of road maintenance, routine road maintenance (RRM) and preventative maintenance, which includes rehabilitation, ie resurfacing. RRM is an ongoing dayto-day upkeep of the road network, and it includes patching of potholes, grass cutting, repairing damaged guard rails, fixing road signs, clearing storm-water culverts, removing stray animals, and clearing the road after accidents. RRM is the best way for communities to get involved in road maintenance. Some RRM contracts can be awarded to specialised big firms but they are still required to further subcontract to local SMMEs and to hire local labourers. Once local SMMEs are empowered in this manner, they can bid for future contracts on their own. Several companies with lower Construction Industry Development Board gradings have benefitted from maintenance jobs awarded by RAL. LIMPOPO BUSINESS 2018/19 42

Celebrating Nelson Mandela 100: Creating Legacies Towards World- Class Public Transport FOCUS Leeto la Polokwane increases momentum for faster, more inclusive growth that heralds an economic transformation in a sustainable way. By Musa Ndlangamandla As South Africa gears itself to be the next big emerging market story of 2018 (according to Goldman Sachs), the public transport sector is at the heart of reigniting economic growth and investment to ensure sustainable livelihoods. A new study of transport systems in 35 major cities around the world has revealed that an efficient public transport network can provide these cities with an economic value of up to R3-trillion (8-billion) annually by 2030. The best transportation systems are those in cities that can move people quickly, efficiently and comfortably to their destination. This is according to London-based consulting firm Credo, which conducted The Mobility Opportunity study. Like other leading cities, the City of Polokwane is already achieving this with the roll-out of an Integrated Rapid Public Transportation System (IRPTS) that features modern infrastructure, easy connections across various modes of transportation, and, above all, a clear strategy of how to meet future needs. Executive Mayor of Polokwane Councillor Thembisile Nkadimeng, above, asserts that an efficient and cost-effective 43 LIMPOPO BUSINESS 2018/19

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