Programmes

STRATEGIC FOCUS AREAS FOR THE LIMPOPO ECONOMIC DEVELOPMENT AGENCY

The Limpopo Employment and Growth Development Plan – a linchpin plan for the province has specific programmes that are designed to achieve structural change in critical areas of the economy

The Limpopo Economic Development Agency would pursue an industrialization trajectory that is responsive to:

  • Promotion of more labour-absorbing industrial sectors, with an emphasis on tradable labour-absorbing goods and services and economic linkages that catalyse employment creation.
  • Promotion of a broader based industrialization path that is characterized by greater levels of participation
  •  Intensification of Limpopo’s industrialization process and movement towards a knowledge and Skills Based Economy.

LIMPOPO ECONOMIC DEVELOPMENT AGENCY

  • A new brand of economic leadership to constitute a shared economic growth and development, and inclusive vision, mission and strategy for the province.
  • Most importantly it should seek to organize a more coherent system of economic delivery in the province

 A key structural intervention to support the provincial government in stimulating and diversifying the industrial base, thereby enhancing the provincial economic capacity/capability and lessening dependence on the export of raw materials.

Custodian of policy implementation – assisting government in identifying specific high impact projects that will accelerate and sustain growth and development  and create productive and sustainable employment

Lead government in planning and executing strategies towards shaping the future of Limpopo’s economy by shifting from a culture of disaggregation to a more collaborative approach. It will also take long term view to expand the provincial economy. 

            The areas of strategic interventions will include, but not limited to:

  • Higher rates of employment;
  • An improved business and investment climate;
  • A more competitive, productive and resilient economy;
  • A more coherent regional business brand;
  • More diversified industrial base which is sector specific;
  • Improved digital, transport and logistical infrastructure;
  • Strong regional coordination of activities across the province; and
  • Strong working relationship with national government departments and other agencies

 

STRATEGIC PROGRAMME 1: Strategic Industrial Infrastructure

STRATEGIC PROGRAMME 1: Key Focus Areas

  • Pertinent function of LEDA – provides strategic direction in building and planning new infrastructure, making better use of existing infrastructure and creating the right business environment to promote private investment in infrastructure development.
  • Drives sustainable economic growth and development – accelerate the productive capacity and industrial competitiveness.
  • The programme has identified two key strategic areas which are:

a)     Special Economic Zones and Corridor Development  – Support the development of targeted industrial activities and investments to be located in SEZs in support of regional industrial development in line with the Industrial Policy Action Plan II, New growth Path and Limpopo Employment Growth and development Plan

b)        Land, Property and Infrastructure Development -It must be able to identify where future residential, industrial and commercial development will and will not occur, and collaborate with all levels of government on strategic issues regarding infrastructure development.

STRATEGIC PROGRAMME 1: Strategic Goals:

STRATEGIC PROGRAMME 1: Key activities

STRATEGIC PROGRAMME 2: Growth Sectors

  • To improve investment – coordination of strategic economic infrastructure i.e. water, energy, ICT, and freight and logistics.
  • To ensure that areas of economic potential which are being hampered by lack of effective and efficient infrastructure are being noted and realistically located within specific developmental plan to realize their full potential
  • Reach consensus on the priorities which underpins government and private sector infrastructure spend in the province
  • Leverage semi-government and private sector investment
  • Implement an integrated approach to infrastructure planning;
  • Guide development plans of key transit corridors, major centers and new growth areas;
  • Identify existing and collaborate with strategic industries/institutions of and ensure land use policies promote better use of infrastructure development;
  • Facilitate infrastructure planning and delivery to support the expansion of strategic regional industries (e.g. mining);
  • Facilitate and champion broadband infrastructure and the government’s ICT network supports delivery of government services; and
  • Promote investment to support a secure and reliable energy supply including the development and use of renewable energy and green technologies.
  • International best practice has shown that without enhancing the role of industry, a sustainable path of economic development will not be achieved.
  • It is Growth Sectors- more than any other productive sectors- that:

a)     drive the economic growth process,

b)     provide a breeding ground for entrepreneurship,

c)      foster technological dynamism and associated productive growth,

d)     create skilled jobs, and

e)     through inter sectoral linkages establish the foundation for both agriculture, downstream mining activities and services to expand.

  • Customized sector development plans (CSDPs) and interventions to accelerate growth and development in the province; and
  • Targeted actions that can be prioritized as well as main areas of focus and what LEDA will undertake to do.

STRATEGIC PROGRAMME 2: Key Focus Areas

  • In this context, four sectors have been identified for special priority attention, viz: 

            a)         Agri and agro-processing industries;

            b)        Mining and mineral beneficiation industries;

            c)        Tourism and creative industries; and 

            d)        Green industries

  • What these industries have in common is that they are labour-intensive, rapidly growing sectors worldwide, suited to Limpopo circumstances, and open to opportunities for small business development.

STRATEGIC PROGRAMME 2: Strategic Goals

  • To facilitate industrial diversification beyond the economy’s current reliance on traditional industrial and non-tradable industrial activities: 

a)     To ensure a sustainable movement towards a more diversified industrial base;

b)     To promote a more labour intensive industrialization path;

c)      To promote industrialization characterized by increased participation of historically disadvantaged people and marginalized regions;

d)     To contribute towards industrial development in the province with strong emphasis on building the province’s productive capacity and secure a strong regional industrial development and competitiveness.

STRATEGIC PROGRAMME 2:   Key activities (Agri & Agro-Processing)  

a) Agric and agro industrialization

    • Development of backward, forward and side-stream linkage to agricultural business
    • Expand agro processing activities in the province
    • Ensure active participation of private sector in agro-processing industry

b) Finance, marketing and other support mechanism

    • Explore all possible opportunities to become part of supply chain of bigger SA retailers /food companies as national retailers are always looking for opportunities to source products from different regions due to seasonal differences.
    • Asses agric supply chains of the retail sector to determine scope for Limpopo based producers to penetrate local markets for processed food.

c) Identification of projects and investment opportunities

    • To establish a pipeline of agro-processing projects in the province
    • Identify agro processing opportunities for investment
    • Identify and develop export markets – scan all international trade agreements to explore potential market and value adding opportunities for agric products in the province

STRATEGIC PROGRAMME 2:   Key activities (Mining and Mineral Processing) 

STRATEGIC PROGRAMME 2:   Key activities (Green industries)

  • Develop a customized mining sector key action or growth plan  – investment and sector growth opportunities  in the value chain;
  • Facilitate and encourage manufacturing and beneficiation across the province –  the tooling and foundry industry which is able to add value to metals and minerals;
  • Attract and retain a greater share of foreign direct investment (FDI) – boosting Limpopo export performance and develop a more diversified economy with more areas of excellence;
  • Foster high levels of enterprise formation and business growth as well as lobbying government for an enabling environment for fabricators to establish sustainable globally competitive industries within the province.
  • Develop of Specific Mining related Skills Programme – More crucial skills are artisans and technicians which are not available at the required levels and this has become the most important element of FET’s education and curriculum.
  • The pursuit of green jobs will likely be a key driver as the world sets out into the uncharted territory of building a low-carbon economy.
  • Investment in Renewable Energy:

within the context of agriculture, manufacturing, construction, installation, and maintenance, as well as scientific and technical, administrative, and service-related activities.   

Until now, there has been much evidence indicating that the pattern of employment is indeed changing—and that new jobs are beginning to emerge in favor of greener, cleaner and more sustainable occupations

 This has led to changing patterns of investment flows—flows into areas from renewable energy generation up to energy efficiency projects at the household and industrial level.

 South Africa signed the register of International Renewable Energy Agency (IRENA) statutes

This multilateral agreement is set for the Limpopo province to prioritize the green economy with specific reference to green jobs; carbon capture and sequestration –CCS and other technologies; renewable energy [solar energy, bio-fuel, waste to energy sources and refused derived fuels ]; energy efficiency [green buildings, lightning]; green transport; forestry; and retrofitting.

STRATEGIC PROGRAMME 2:   Key activities (Green industries)  

STRATEGIC PROGRAMME 3:  Enterprise Development and Finance

  • Inherent nature of economic development and what has been the economic land scape of enterprise development in the Limpopo province –  more still need to happen to build a strong foundation for a sustainable enterprise development and finance model.
  • The success of the Limpopo province’s economy –  should be  expressed by the contribution that enterprise development [Coops and SMMEs] could make to economic growth as this will have a net effect in terms of development.
  • Accelerate the development and transformation of the provincial economy.
  • Promote SMME sector i.e. more competitive, profitable, and able to create more and better employment opportunities.

 

STRATEGIC PROGRAMME 3: key focus areas

 Enterprise Development:

a)     Market development,

b)     Business development services through mentoring,

c)      Value chain development,  

d)     Investment (Infrastructure support) growth in small, medium and micro-enterprises

Enterprise Finance encompasses microfinance and development initiatives range from providing equity for small start-up businesses, expansion loans for new and existing businesses, seed capital, access of finance through provision of relaxed security/collateral, etc.

 STRATEGIC PROGRAMME 3: Strategic Goals

  • To accelerate the development and transformation of the provincial economy by promoting the SMME and Coops sector; and ensure that SMMEs in the province are better able to contribute to and benefit from sustained economic growth by becoming more competitive, profitable, and able to create more and better employment opportunities:

 a)  Coordinate the overall development of local SMMEs in         the manufacturing and manufacturing related services;

b) Promote the development of a modern and sophisticated SMMEs in tandem with the strategic direction of the overall industrial development; and

c) Develop SMMEs into an efficient and competitive sector, capable of producing high value-added products finished products for the export market.

 STRATEGIC PROGRAMME 3: Key Activities

 (i) To promote and coordinate the development of SMMEs and Coops in Limpopo through:

    • Promotional activities;
    • Establishment of Regional Offices; and
    • Collation of information into a comprehensive database;

(ii) To provide technical and advisory support services in collaboration with other related agencies involved in SMMEs development through:

    • SMMEs Development Programmes
    • SMMEs Information and Advisory Centre
    • SME Expert Advisory Panel (SEAP)

STRATEGIC PROGRAMME 3: Key Activities

  (iii) To forge industrial linkages between SMMEs and large companies/Multinational Corporations (MNCs) through the:

    • Industrial Linkage Programme; and
    • Competitive Supplier Development Programme.

(iv) To complement, coordinate and monitor financial assistance schemes provided to SMMEs through:

    • Soft loans;
    • Grants; and
    • Other financial assistance such as venture capital and equity financing.

(v) To collaborate with other local and international SMME related agencies to develop SMMEs through programmes such as:

    • Participation in international and regional cooperation meetings and for a;
    • Skills enhancement programmes for employees of SMMEs;
    • Attachment programmes for employees of SMMEs; and
    • Placement of foreign experts in selected SMMEs.

 

STRATEGIC PROGRAMME 4: Project Facilitation and Funding

  • Establishment of a project development capability – project preparation through the development and application of appropriate technical, institutional, and financial solutions
  • The anticipated approach is based on the identification, preparation and implementation of a priority projects, to form the central drive in establishing a programme for enhanced local participation and economic development.
  • Assessing the financial viability and ability of LEDA to fund its own projects and the ability to source funding from other sources through gearing and its ability to repay the geared funding.
  • Assisting each division to package and profile its projects in manner that will maximize financial gearing and managing all risks involved.

 

STRATEGIC PROGRAMME 4: Project Facilitation and Funding

  • Project Facilitation and Funding  – should ensure sustainable and affordable projects through addressing primarily the following questions:

a) What needs to be provided where?

b) How will it be sustained institutionally?

c) How can it be afforded financially?

d) How can it be used to create opportunities for development?

  • The major constrains given the extent of the challenges noted are – the funding shortfalls, project packaging, planning and coordination.
  • A consideration towards alternative funding [commercial and private sector] mechanisms to supplement the available limited funding is thus paramount.
  • Need to introduce similar project appraisal imperatives to the commercial financiers through project identification, pre-feasibility and feasibility studies with clear requirements in terms of the following:

a) Detailed analysis of all costs and benefits

b) Quantitative risk assessment

c) Proven readiness for implementation (sustainability and affordability)

STRATEGIC PROGRAMME 4: Key Activities

  • The PFF will be supported by a suitably qualified multi-disciplinary professional services provider constituting the “Development Team” with the following primary roles and responsibilities:

a)     Initiation of projects

b)     Integration of projects

c)      Detailed Project preparation

d)     Sourcing of additional development funding/risk sharing

e)     Raising long-term funding for implementation (Gearing)

  • Project Preparation Agreements – The primary function of the PFF will be project preparation and development in support of the relevant division/ provincial department/ or local municipality.
  • The engagement will be formally governed by a Project Preparation Agreement.

 STRATEGIC PROGRAMME 4: Key Activities

  • Enhanced local participation – An appropriate strategy to facilitate optimum participation and contribution by local professional services providers, contractors and suppliers are vital to the successful roll out of this initiative.
  • Funding strategy – Critical element within the recommended project development approach is the establishment of a facility to fund project preparation activities up to the achievement of financial close, i.e. once sustainability, affordability and implementation readiness on each project has been proven to the satisfaction of both public sector (National Treasury) and private sector financiers.

 

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