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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

MESSAGE New Special

MESSAGE New Special Economic Zone promises good returns for investors A message from the Premier of Limpopo, the Honourable Chupu Stanley Mathabatha. Chupu Stanley Mathabatha, Premier of Limpopo It gives me great pleasure to welcome the readers of Limpopo Business to South Africa’s “gateway” province, located as we are on the Great North Road to Zimbabwe and in close proximity to Botswana, Mozambique and the important markets of Johannesburg and the Gauteng Province. The provincial economy is predominantly driven by the mining and commodity services sectors that contribute 27.6% and 23.8%, respectively. They are followed by trade and finance that contribute 15.3% and 14.6%, respectively. The Provincial Government of Limpopo is pleased to report that both the Provincial Treasury and the Limpopo Gambling Board received clean audit opinions in the last audit cycle, which is good news for potential investors. This marks a considerable improvement. The Auditor-General had this to say: “The improvements in Limpopo can be attributed to the political leadership taking accountability and discharging oversight responsibility through robust discussions and interrogation of reports submitted by administrative leadership.” The South African national cabinet has positively considered Limpopo’s application for Musina-Makhado to be a Special Economic Zone (SEZ). A lot of work has gone into making the idea of an SEZ in Musina-Makhado a living entity, which will boost the economy and create jobs. We are in the process of finalising the appointment of the SEZ Board. This will be followed by the recruitment and appointment of technical staff to support and implement the SEZ projects. Currently, an amount of R147-million has been set aside to support the roll-out of basic infrastructure in the receiving SEZ municipalities of Musina and Makhado. We are basically at the tail-end of our planning phase of this mega initiative. The Musina-Makhado Special Economic Zone will leverage the existing advantages in mining and logistics of the northern part of Limpopo and special tax and customs regimes are already proving attractive to investors. In Beijing in May 2018, the Limpopo Economic Development Agency (LEDA) signed Memorandums of Understanding (MOUs) and Memorandums of Agreement (MOAs) with nine Chinese companies committed to investing more than US-billion in the Musina-Makhado SEZ. Working together with the private sector, our provincial government has identified 10 major projects with a combined value of R46-billion. This will go a long way towards helping us to expand the productive capacity of our economy. We invite other investors to explore with us the possibilities for further projects that will support our effort to put Limpopo on a higher trajectory of economic growth and development. A mining-focussed SEZ at Tubatse is also under consideration and we expect to attract about R44-billion in investments into these two zones. Power generation, steel and coking plants and plasma waste gasification are among the possibilities for the Musina SEZ, while the focus at Tubatse will be platinum group metals beneficiation. LIMPOPO BUSINESS 2018/19 6

MESSAGE Investors with the ability to beneficiate minerals or add value to agricultural produce through processing can take advantage of the favourable terms offered by Special Economic Zone legislation. Driven by the desire for strengthening relations with the People’s Republic of China, the Limpopo Province has entered into Memorandums of Understanding with the Province of Henan. The focus of these MOUs is in the fields of mining, agriculture, tourism and human resource development. Similar arrangements in the Republic of Namibia are being conculuded with the four regions of Ohangwena, Oshana, Oshikoto and Omusati. This is in line with our commitment to strengthen regional integration within SADC. We aim to create more jobs by ensuring that agriculture, manufacturing, tourism and the construction sector contribute optimally to the provincial GDP. The Provincial Government is a strategic role-player in the economy of Limpopo Province. Government procurement should therefore assist in addressing the inherited triple challenges of unemployment, poverty and inequality. It is in this context that we are finalising the Limpopo Procurement Strategy. The main thrust of the Strategy is to stimulate Local Economic Development. The strategy will focus on the need to empower young people, women and people living with disabilities. Infrastructure Last year we announced that Limpopo Connexion, which is a subsidiary of LEDA, was to begin a roll-out of broadband infrastructure across the province. In 2018, we can report that the first phase of the roll-out of the broadband telecommunication network infrastructure has commenced. The construction of the data centre, which is the provincial ICT nerve centre, has already been completed. The broadband technology will provide a unique opportunity for the people of Limpopo to become active participants in the knowledge economy. This programme will mostly benefit SMMEs, co-operatives, the youth, research institutions and the creative industry. It will further enhance productivity, both in the public and the private sectors, and provide investors with enhanced connectivity. Through the roll-out of a high-quality infrastructure programme we intend to grow the economy, attract investment, create access to markets and create much-needed jobs for our people. Our delivery of social infrastructure is focused on constructing new houses, healthcare, education and bulk-water facilities. We will also continue with the maintenance and renovation of our existing infrastructure. Road infrastructure plays a critical role in sectors of our economy such as tourism, agriculture, trade and commerce. We will continue with the programme of improving and expanding our road network infrastructure, working in partnership with South African National Road Agency Limited (SANRAL). Tourism The tourism sector continues to play a significant role in the growth and development of our provincial economy. Limpopo remains a leading province in the country with regard to domestic tourism, increasing from 5.6-million visits in 2015 to 8.3-million in 2016. This represents a massive increase of 2.7-million. One of the tourism offerings that adds great value to the industry is the annual Marula Festival. In 2017, this festival attracted over 20 000 people and injected well over R45- million into the provincial economy. The Mapungubwe Festival is another signature event that brings in considerable revenue, especially for skilled crafters who have an opportunity to sell their handmade wares. The Kruger National Park is South Africa’s number one tourist attraction. A number of private concessions have been granted along the public park’s edge and there are several private game reserves scattered throughout the province’s diverse landscapes. Golf tourism is another growth sector with proximity to the country’s major point of entry at Johannesburg’s OR Tambo International Airport a big selling point. There are many opportunities for this sector to grow through new investments, whether it be in new lodges or new kinds of adventuretourism experiences. Whether you are a tourist, a business person or an investor, Limpopo is a province that is rich in opportunities. We look forward to welcoming you. 7 LIMPOPO BUSINESS 2018/19

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