OVERVIEW Construction
OVERVIEW Construction and property LEDA runs training for artisans in the building sector. Sector Insight More than 10 000 housing units have been pledged by provincial government. Military veterans housing. Image: Housing Development Agency 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 for the Limpopo Academic Hospital. Clinics are also being built, providing more work opportunities in the construction sector. A start has been made on a provincial theatre, with R15-million allocated to planning. A commitment has been made to build 10 456 housing units by the end of the 2020/21 financial year, a figure that includes a rollover of nearly 4 000 from the previous year. This represents a further opportunity for contractors in the construction sector. The Enterprise Development and Finance Division of the Limpopo Economic Development Agency (LEDA) offers loans to businesses in the construction and property sector and runs specialised training in vocational skills such as bricklaying, plastering, carpentry, plumbing, electrical and welding. The Risima Housing and Finance Corporation, another division of 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). Online Resources Black Business Council in Built Environment: www.bbcbe.org Construction Industry Development Board: www.cidb.org.za South African Affordable Residential Developers Association: www.saarda.co.za South African Property Owners Association: www.sapoa.org.za 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. Thavhani Mall is operating in Thohoyandou in a bigger development called Thavhani City. The 27ha site will eventually include an office park, automotive-related businesses, private healthcare, a library, an information centre and a sports stadium. 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. ■ LIMPOPO BUSINESS 2020/21 50
Energy The Musina-Makhado Special Economic Zone (SEZ) will use and create large volumes of energy. OVERVIEW An Energy and Metallurgical Cluster is an important component of the Special Economic Zone (SEZ) under construction at Musina-Makhado in the far north of the province. A South African company has announced that it will manufacture new energy solar system products, energy storage systems and high-density polyethylene water pipes at the SEZ. 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 successful so far. The three photovoltaic solar projects located in Limpopo have a combined investment value of R3.6-billion. A new public-private planning exercise, known as Impact Catalyst, is working on focus areas which include biofuels and intends to prepare the province to deal with the emergence of new sectors such as renewable energy. 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 cellphones. 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. 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. Online Resources National Department of Minerals and Energy: www.energy.gov.za South African Photovoltaic Industry Association: www.sapvia.co.za Southern African Biofuels Association: www.saba.za.org Sector Insight New planning blueprint includes biofuels. 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 Rural digester. Image: BiogasSA 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 many problems). When the plant is completed, the Lephalale area will become a petrochemical hub and energy complex. ■ 51 LIMPOPO BUSINESS 2020/21
