Limpopo Business 2019-20 edition

OVERVIEW Construction

OVERVIEW Construction and property Infrastructure and state housing are potential markets for builders. SECTOR INSIGHTS A provincial theatre is in the planning stages. The Risima Housing and Finance Corporation, a division of the Limpopo Development Agency (LEDA), is helping citizens of the province to become homeowners. Since 2014, Risima has assisted 1 037 beneficiaries with loans of up to R1.5-million. The gap market – people who earn too much to qualify for social (RDP) housing but don’t earn enough to be granted bonds – is a hot topic. Opportunities exist, but the risk profile is different. A new association caters for this subsector, the South African Affordable Residential Developers Association (SAARDA). Risima has introduced the Finance Linked Individual Subsidy Programme, for those earning between R3 501 and R15 000 per month. Risima and the Department of Cooperative Governance, Human Settlement and Traditional Affairs (COGHSTA) distribute grants to cover a deposit or to make up the shortfall between an asking price and what the applicant can afford. A non-mortgaged financial product assists government employees to get a foot on the property ladder. Risima is also exploring cooperation with mining houses such as Exxaro, Amplats and Northam at Thabazimbi. The Provincial Government of Limpopo has built more than 320 000 houses since 1994. A budget of R3.9-billion has been assigned by National Treasury towards the Limpopo Academic Hospital. Clinics are also ONLINE RESOURCES Black Business Council in Built Environment: www.bbcbe.org Construction Industry Development Board: www.cidb.org.za South African Property Owners Association: www.sapoa.org.za being built, providing more work opportunities in the construction sector. A start has been made on a provincial theatre, with R15-million allocated to allow planning for the project to get underway. A large development is under way in Thohoyandou. A 27ha site is being converted into Thavhani City which will include an office park, automotive-related businesses, private healthcare, a library, an information centre and a sports stadium. Thavhani Mall (pictured) is already functioning. Its anchor retail tenants include Woolworths, Edgars, Pick n Pay and SuperSpar. The partners in the R1-billion project are Thavhani Property Investments, Vukile Property Fund and Flanagan & Gerard Property Development. The Enterprise Development and Finance Division of LEDA not only offers loans to businesses in the construction and property sector but runs specialised training in vocational skills such as bricklaying, plastering, carpentry, plumbing, electrical and welding. LIMPOPO BUSINESS 2019/20 58

OVERVIEW Energy Large energy users are going off-grid. The Mogalakwena Mine run by Anglo American Platinum (Amplats) is a large energy user. The mine’s concentrator relies on constant and reliable electricity supply. With energy comprising a significant portion of costs and national utility Eskom experiencing difficulties in terms of its debt and its ability to supply reliable power, the mining company is investigating the installation of a large solar PV project. In early 2019 the project was at the “request for interest” stage. Anglo Platinum has pioneered an underground mining locomotive powered by a fuel cell. Platinum coating greatly enhances the hydrogen absorption capacity of fuel cells. Mining group Exxaro is sponsoring the roll-out of alternative energy near its remote Tshikondeni mine east of Musina. Implats is already using natural gas to supply its refinery in Springs. Phase one of the project will see 20 Doosan fuel cells generating 8MW of power. The long-term goal is to generate 22-30MW. The huge Eskom project at Medupi power station is over budget and behind in implementation. Three of the plant’s six units are operating (although there have been some problems) and two more will come on stream in 2019. When the plant is completed, the Lephalale area will become a petrochemical hub and energy complex. An Energy and Metallurgical Cluster is an important component of the new Special Economic Zone that has recently been approved at Limpopo Projects Project MW Location Operational Tom Burke Solar Park 60MW Lephalale, ONLINE RESOURCES Waterberg DM August 2016 Witkop Solar 29.68MW Polokwane September 2014 Soutpan Solar Park 28MW Blouberg, SOURCE: IPPPP, Provincial Report IV, March 2017. Capricorn DM July 2014 The provincial government's Green Economy Plan has identified solar and biomass as the main kinds of renewable energy for Limpopo. With National Department of Energy: www.energy.gov.za huge silicon reserves in the province, there is also potential to produce solar Southern panels and African solar Biofuels charges for Association: cell phones. www.saba.za.org Nine South biogas African digesters Photovoltaic have been installed Industry in Association: the Vhembe District to be controlled www.sapvia.co.za by young entrepreneurs trained by the University of Venda. A group of 31 students is studying Energy Management Systems as part of the provincial plan. SECTOR INSIGHTS The Musina-Makhado Special Economic Zone (SEZ) will be a power generator. Musina-Makhado in the far north of the province. The two local municipalities have been allocated R147-million by provincial government for infrastructure upgrades, including electricity. The National Department of Energy’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has been very successful so far. The three photovoltaic solar projects located in Limpopo have a combined investment value of R3.6-billion. The provincial government’s Green Economy Plan has identified solar and biomass as the main kinds of renewable energy for Limpopo. With huge silicon reserves in the province, there is also potential to produce solar panels and solar chargers for cell phones. Nine biogas digesters have been installed in the Vhembe District to be controlled by young entrepreneurs trained by the University of Venda. A group of 31 students is studying Energy Management Systems as part of the provincial plan. Online resources 59 LIMPOPO BUSINESS 2019/20 National Department of Energy: www.energy.gov.za Southern African Biofuels Association: www.saba.za.org South African Photovoltaic Industry Association: www.sapvia.co.za