INDUSTRIALISATION BUSINESS DIVISION
"To enhance manufacturing output, job creation, and economic development in Limpopo Province through the implementation of the agro-processing strategy.
The primary objective of the Industrialisation Division is the accelerated industrialisation in Limpopo through strategic economic development interventions."
THE AGRI-BUSINESS DIVISION
Limpopo Province is endowed with subtropical fruits and as yet untapped land for primary agriculture production. Limpopo Province has economically competitive sectors in all five districts. Mopani and Vhembe are notably competitive in the primary production of subtropical fruits such as avocados, macadamia nuts, mango, lichi, quava and banana. The districts of Sekhukhune, Waterburg and Capricorn are richly endowed with grain, meat and potatoes production respectively. The AGRI-Business Division facilitates agro-processing business establishments, ventures and enterprises to increase the beneficiation of the abundant agricultural industrial base. This objective is encapsulated in the National Development Plan, the Limpopo Development Plan, and other plans that endeavour to localize production, processing, packaging and distribution of end products derived from the agricultural output produced in the Province. The success of agro-processing strategy for the provinces hinges on LEDA’s critical role of mobilizing enterprises and aspirant entrepreneurs, information dissemination on various media platforms, feasibility studies and mobilization of funding through internal and external sources for joint ventures. Also crucial is that there is effective collaboration between LEDA and Limpopo Department of Agriculture and Rural development (LDARD). LEDA and Limpopo Department of Agriculture and Rural Development signed project specific agreement to commission a study on situational analysis and the development of bankable business plan on land reform projects which were given to communities.LEBOWAKGOMO ABATTOIR
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LEDA has facilitated a partnership with Country Birds Holdings (CBH) to operate the Abattoir. Situated in Lebowakgomo Industrial Park, at full capacity the facility will process and package 20 000 chickens per 8hour shift. It is estimated that at the commencement of the operation, the production will only run one shift with options to add additional shifts over time. The white meat is fast becoming a preference for consumers world-wide. It is envisaged that the Abattoir will become an industry player in the market that is characterised by fast moving consumer products and services. |
MIDI TEA
| Stiff competition in the fast moving consumer goods continues to determine the fate of emerging enterprises regardless of their location because success in the market is dependent on efficiency and ability to exceed customer expectations. The Tea Estate of Ventico, continues to produce good quality tea for self packaging and also for bulk sales to other clients for resale downstreamDuring the year under review, LEDA intensified its sales and Marketing strategy to push more and more volumes of midi tea through retail stores in the province, to date the tea is sold in different packages in leading retail stores of Spar in both Limpopo and Mpumalanga. With 260 direct jobs at Ventico Tea Estate, the plans are afoot to further push the tea to many other retail stores to ensure that new jobs are created and current jobs are sustained. |  |
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MASHASHANE HATCHERY
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Mashashane Hatchery whose facility produces a day old chicks for broiler farmers will resume its operations having undergone refurbishment during the year under review. Overall, the facility provides opportunities for emerging aspirant entrepreneurs in the surrounding villages of Ga-Mashashane and Ga-Matlala villages. The revamp of the facility was to enhance the structure with the view to decreasing rate of mortality for the chicks. |
FETAKGOMO-TUBATSE PROPOSED SPECIAL ECONOMIC ZONE
The proposed Fetakgomo-Tubatse Special Economic Zone (FTSEZ) is hosted by the Fetakgomo-Tubatse Municipality in the Sekhukhune District (Limpopo Province, South Africa) and is located within the Bushveld Igneous Complex (Eastern Limb), which hosts the well-known Merensky Reef in the Limpopo Province.
The area boasts a high concentration of rich mineral resources and is a global leader of Platinum Group Metals and Chrome resources, hosting over 40 mining operations which also includes Vanadium, Iron Ore and selected battery minerals.
The proposed FTSEZ is projected to be a catalyst for economic growth, industrialisation and mineral beneficiation, by localising the various links of the value chain, both upstream and downstream.
An area of 1220 ha has been identified for the development of this state-of-the-art center of excellence for green energy manufacturing and mineral beneficiation.
| Background FTSEZ forms part of the South African Government’s SEZ programme which is aiming to enhance the country’s manufacturing and export capabilities and attract foreign direct investment. Anchored in the Limpopo Development Plan (LDP), the FTSEZ is positioned and designed to be a top investment destination for companies seeking to be in the forefront of the green energy “Just Transition”, which includes “support for workers and communities affected by the transition away from coal and enables the creation of quality green jobs” among other things (see more about the partnership in this article). The priority industries in the FTSEZ will enhance the local manufacturing capacity and contribute to low carbon / green economy, and will offer socio-economic opportunities (for jobs & small businesses), not only to fight climate change, but to enhance energy security and develop local industries in the next 5 to 10 years. The FTSEZ is being developed through a partnership between the Department of Trade, Industry and Competition (dtic), the Limpopo Provincial Government (LPG), Sekhukhune District Municipality (SDM) and Fetakgomo-Tubatse Municipality (FTM). |
Unique characteristics of the FTSEZ
The main objective of this SEZ is to develop a low carbon / green economy which will offer promising opportunities, not only to fight climate change, but to enhance energy security and develop local industries.
The strategic aim of the SEZ is to develop green primary energy supply to localised manufacturing of both upstream and downstream activities of the Platinum group metals (PGMs) and chrome value chains.
Construction phases of FTSEZ
The Fetakgomo-Tubatse SEZ will cover a total area of 1220 ha of land. Phase 1 consists of 316 ha which is reserved mainly for a mix of light and heavy industrial use and other hydrogen energy related uses, while Phase 2 & 3 will be developed in line with market demands and will include:
- Renewable energy
- Heavy industry
- Additional light industry space
- Mixed use and residential
MUSINA-MAKHADO SPECIAL ECONOMIC ZONE
Musina Makhado Special Economic Zone (MMSEZ) is a flagship programme of the Limpopo Provincial Government (RSA) implemented through a newly established entity, Musina Makhado Special Economic Zone State Owned Company (SOC). The SOC is registered in terms of Schedule 3(d) of the Public Management Finance Act (PFMA), Companies Act and Special Economic Zones Act. It is currently wholly owned by the Limpopo Economic Development Agency (LEDA) and it has its own board of directors, which is representative of various stakeholders including the Department of Trade Industry and Competition (DTIC). Its administration team is led by a Chief Executive Officer and a pool of competent executives with extensive skills and knowledge of the SEZ development space.
Limpopo enjoys an important advantage as a destination for inward FDI: it is part of South Africa, the most advanced economy in Sub Saharan Africa with the largest stock of inward FDI of any African country. Its economy is like that of a developed country in the sense that it has a large services sector and does not depend purely on the export of commodities. It also has an automotive manufacturing sector, which largely exports vehicles to developed economies.
South Africa has a network of trade agreements (including through its membership of SACU and SADC, the EU SADC EPA and the US AGOA) which open the way for exports to key markets such as SADC (market of 356 million people), the EU and EEA (350m+), the UK (65+ m people), US (330m consumers), China (1.4bn), The African Continental Free Trade Area (AfCFTA) (1.7bn) and Bilateral Investment Treaties (BITs) in force with (e.g.) Nigeria, Russian Federation. South Africa also operates double tax treaties (DTTs) with over 130 countries. This provides significant market opportunities for companies seeking to locate their operations in the SEZ.
