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Limpopo Business 2021-22

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The 2021/22 edition of Limpopo Business is the 13th issue of this highly successful publication that, since its launch in 2007, has established itself as the premier business and investment guide for the Limpopo Province. Limpopo has been attracting significant investments in the mining sector in recent years and with commodity prices of certain minerals rising in response to demand in the renewable energy and automotive sector, mining houses are well-positioned to expand production even further. This journal carries messages of welcome to investors from the province’s Premier and the MEC for Economic Development, Environment and Tourism. In addition to the regular articles providing insight into each of the key economic sectors of the province, there is special feature on plans to catalyse investment and growth in the province through measures such as industrial parks and the Musina-Makhado Special Economic Zone in the province’s far north, which is attracting billions of dollars in investment. News related to mining, agriculture, tourism, construction and property, water, education and development finance is carried in overviews of the main economic sectors.

OVERVIEW Transport and

OVERVIEW Transport and logistics Reducing the roads upgrade backlog is a priority. SECTOR INSIGHT Polokwane’s new ring road eases access. Mapate Bridge, an RAL project. Logistics is a vital feature of the Limpopo economy for two reasons – the province has huge volumes of minerals and horticultural products to be transported to markets elsewhere and the province is strategically positioned. In addition to the N1 highway, the N11 is a primary road corridor and there are nine provincial road corridors. Freight volumes on the N11 (to Botswana and Mpumalanga) have increased enormously in recent years, whereas the R33 carries less traffic. The building of the Musina-Makhado Special Economic Zone (MMSEZ) will further boost Limpopo’s importance as a transport and logistics hub. Roads Agency Limpopo (RAL), of which the provincial government is the sole shareholder, accounts for about a third of the budget of the Limpopo Department of Public Works, Roads and Infrastructure. It has been successfully focussed on tackling a backlog of infrastructure maintenance, but it has also created partnerships with the national roads agency and private companies to deliver tarred roads where the majority of the province’s roads are gravel. An example of a public-private partnership between RAL and Implats is the successful completion of a 17km road to the Marula mine. Main contractor Edwin Construction oversaw the awarding of eight work packages to local small businesses to the value of more than R100-million. A total of 45 local employees benefitted from a training programme which included first aid, excavations and scaffolding, working at heights, slings and equipment. A bus rapid transport system is being introduced to the provincial capital. The scheme is called Leeto la Polokwane. Within the province more broadly, 22.6% of households in Limpopo use bus transport and 45.8% use taxis. Two other contracts overseen by SANRAL have been awarded for the resurfacing of national road R578. The work done on the route will reduce travel time between Makhado, Giyani and the Kruger National Park. The project aims to improve surface drainage by removing ruts and making the road safer, eliminating the potential of aquaplaning. National agency The second phase of the Polokwane Eastern Ring Road has been opened. The R800-million project was undertaken by the South African National Roads Agency SOC Limited (SANRAL) and gives travellers the option of avoiding the city’s CBD on a new four-lane, divided, dual carriageway. The new road to Mphanama, the D4200. LIMPOPO BUSINESS 2021/22 50

TRICOLOUR LOGO VERSION Roads Agency Limpopo Together for better roads. Roads Agency Limpopo (RAL) is a provincial roads infrastructure delivery state-owned company registered under the Companies Act of the Republic of South Africa. The shareholder, the Provincial Government of Limpopo, is represented by the MEC of Limpopo Public Works, Roads and Infrastructure. Vision Contributing to the socio-economic development by connecting the people of Limpopo Province. Mission To provide quality and sustainable provincial road infrastructure network for the economic development of Limpopo Province. Strategic Overview Roads have a positive impact on every sector of the economy, from agriculture and manufacturing to tourism and mining. With the establishment of Special Economic Zones in Limpopo, more good roads are required to facilitate the transport of goods and people. A modern road network supports Limpopo’s proposition as an investment destination. RAL is a vital part of the provincial government’s strategy to address spatial development inequalities and the economic injustices of apartheid. A significant historical backlog is being systematically addressed despite challenges that periodically present themselves, such as severe flooding which causes damage to roads. Through a combination of governmental support at different levels and private sector partnerships, paved roads can help to drive economic growth. Recent partnerships have been carried out with Marula Mine, Exxaro Mine, Anglo Platinum Mine, Venetia Mine and ZZ2. RAL is now managing a total road asset base of 20 091km: • 13 916 km (69%) gravel • 6 175 km (31%) tarred. Opportunities In 2019/20 the Local Labourer Programme created 2 000 work opportunities through a requirement for main contractors that at least 10% of workers on road upgrades must be local women, youth and people with disabilities. For maintenance the figure is 5% local labourers. RAL’s Emerging Contractor Development Programme aims to improve the economic participation of construction companies owned by Historically Disadvantaged Individuals (HDIs). At least 30% of work must be subcontracted to small, medium and micro-enterprises (SMMEs). A total of 716 local labourers benefited from RAL’s various skill development programmes in the financial year 2019/20. The programmes were implemented with the Construction Education and Training Authority (CETA). A total of 503 youth, women and people with disabilities received training in various construction courses. For more information: www.ral.co.za

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