- OVERVIEW OF LIMPOPO PROVINCE ECONOMIC AND STRATEGIC FOCUS
Limpopo Employment, Growth and Development Plan focuses on key Industrial infrastructural plan, Growth sectors, Enterprise development and Finance, Facilitation of funding and Investment and Trade. These areas of focus carry the growth path of the provincial economy through the revitalization of natural resources and advancing of manufacturing by integrating SMMEs and Co-operatives into the regional, national, continental and global value chains of selected sectors. The sectors are as follows:
MINING AND BENEFICIATION INDUSTRIES
LEDA intends to transform the mining and minerals industries from being a resourced-based to a knowledge- based industry by 2030 through the creation of a conducive and favourable environment for effective value addition.
Development of Limpopo Mining and Minerals Beneficiation initiative
Limpopo Province is embarking on programmes to create a pool of skills across the province, attract investments and beneficiation programmes. This initiative is supported by the development of Industrial Development Zones with attractive tax incentives and low tariff regimes to make the beneficiation industry more competitive. To complement the beneficiation programme, the Province endeavours to establish the following interventions:
The Mining Input Supplier Park Beneficiation Hubs and Supplier Development Programme
The objective of the hubs / parks is to supply the goods and services consumed by the industry offering opportunities for local partnerships and industry transformation. The establishment and accomplishment of these initiatives would facilitate the localization of the huge portion of procurement spend in terms of both capital and operational expenditure within the province.read more Development of Specific Mining related Skills Programme The LEDA training centres will be ramped-up to receive accreditation to produce more technically skilled artisans and technicians required by the mining industry in the Province. To complement the production of technically skilled learners, Further Education and Training (FETs) colleges need to create curriculums that focus mainly on those requisite skills. This will go a long way in promoting small-scale mining programme and the capacitating of SMME sector within the province. Targeted Policy Measures to Support Downstream Mineral Beneficiation Beneficiation value proposition to attract global players have the following priorities: Mineral Resources Mapping Geo-Spatial Technology Limpopo Province has numerous and vast minerals resources commodities that have not yet been exploited. In terms of the recent data published by Council of Geo- Science (www.geoscience.org.za), only 8.6% of the 1065 mineral records were exploited leaving 609 of mineral occurrences and a further 119 of minerals never exploited. These figures illustrate that there is much unrealized resources potential in Limpopo Province. The Province endeavours to embark on GIS –Supported Industrialization Initiative which will enable the Province to understand the true extend and picture of available resources in the Province. This initiative will comprise the following pillars: Establishment of World-class GIS for the provincial Government – the use of this technology will provide the province with minerals resources and other commodities for economic development over a long term. Systematically, the Province will be well positioned to analyse available resources based on accurate information and data. Prioritization of key minerals deposits and reserves – Through the development of the GEO- Spatial technology, the Province will have a clear understanding and prioritization of minerals deposits and reserves in the province. This will facilitate a clearly articulated beneficiation strategies and programme for the benefit of the Provincial economy. Minerals deposit resources accounting – of great importance is the ability to account with accuracy the available stock of minerals resources and deposits available in the province. The quantities extend and footprint of the mineral reserves will be mapped accordingly to ensure that appropriate strategies for exploitation are designed. AGRICULTURE AND AGRO-PROCESSING On Agriculture and Agro-processing, LEDA Plan to stimulate industrialisation through the following initiatives: Backward and forward to vertical integration of Agriculture Business Expansion and scaling up of agro-processing in the province Facilitate and stimulate private sector participation in the agro-processing industries Food insecure Households – appropriate interventions will be aligned with food security imperatives. To that end Agriculture interventions focuses on the following: Mobilization of communities to engage in agricultural production, through facilitated processes Low risk, low cost vegetables and fruit production in the homestead yard and food processing and storage techniques (mainly indigenous) Profitable small- scale commercial farming – the specific objectives on profitable small-scale farmers include: Large- Scale commercial farmers – the objectives of large scale commercial farming revolves around the following: ENVIRONMENTAL AND NATURAL RESOURCES DEVELOPMENT PROGRAMME Limpopo Province considers the green economy as the corner stone for future sustainability of economic production factors in the context of construction, installations, manufacturing, agriculture and maintenance. All activities that protect and restore ecosystems and biodiversity, reduce energy use, materials, water consumption, decarbonise the economy and minimize or avoid generation of all forms of waste and pollution are at the centre of environmental and natural resource development programme. The strategy identifies both the Provincial Government and Private sector companies playing a joint role in migrating from ‘Carbon’ to a green economy. The strategy is of the view that a global transition to a low-carbon and sustainable economy can create large numbers of green jobs across many sectors of the economy and could become the development for the Province. With South Africa being a signatory to the International Renewable Energy Agency statutes and being a full member of IRENA, it is of paramount importance that Limpopo Province and other Provinces prioritise 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, lighting) green transport, forestry and retrofitting. Interventions to foster and pursue low –carbon economy Investment in Renewable Energy – LEDA will drive campaigns across Public and Private sector organizations to invest more on awareness on the impact of climate change brought about by high- carbon emissions globally. Just like countries across the globe, Limpopo Province through will endeavour to invest and create awareness to communities on renewable energies such the following: The use of these renewable energy technologies present huge opportunities for Limpopo Province based on the challenges on access to energy in the province. Fast- tracking Industrial Skills for the Green Economy The transition to green economy present Limpopo Province with opportunities to demand skilled workers and meeting this demand will require adequate training programmes. It is the responsibility of LEDA to collaborate with training institutes for providing training for professional and different trades in the areas of green designers, architects, auditors, engineers, estimators, project managers and various jobs in construction trades that includes pipe fitters, sheet metal workers and general construction workers. Through Green Energy Programmes, Limpopo Province envisages to create more investment opportunities in terms of construction equipments for energy efficiency. Targeted programmes for renewable Energy Partnership The greening of global economy and South Africa’s ratification and belonging to the IRENA has the following ramification on Limpopo Province. Through LEDA the Province endeavours to do the following: INFORMATION COMMUNICATION TECHNOLOGY SKILLS DEVELOPMENT INITIATIVES Information Communications Technology is at the heart of all development initiatives in Limpopo Province. The establishment of all high impact activities and their success hinges on information management and the inculcation of information technologies as an integral part of all developmental activities. To that end LEDA created Limpopo Connexion to roll-out ICT service encored on the Broadband roll-out as: Identify and prioritize scarce and critical ICT skills in the Province in line with strategic economic sectors Create a pool of ICT skilled youth for the provincial economy Develop ICT graduates portal to access the graduates that can serve as mentors and offer assistance on-line for technology driven business start-ups Develop ICT skills and knowledge through collaborations with reputable ICT companies INDUSTRIAL INFRASTRUCTURE Infrastructure development is the nucleolus of promotion investment for industrial competitiveness and economic growth over a long term. LEDA will provide strategic direction for building and planning new infrastructure and make better use of existing infrastructure to create the right business environment in Limpopo Province. The key focus areas of the infrastructure development are: Special Economic Zone and Corridor development . The SEZ programme is critical for industrialization programme of the province to beneficiate the industrial base. Today Musina-Makhado Special Economic Zone is designated and more work was done to apply for the designation of Fetakgomo- Tubatse Special Economic Zone . Land, Property and expansion of manufacturing through Industrial Parks
2. Expansion of manufacturing through Industrial Parks
Industrial Parks remain the most critical anchors for rural and township economies. It activates competitiveness for mass production amongst local products and services. LEDA, as the custodian and economic development agency in Limpopo, endeavours to position the industrial parks to proliferate and increase manufacturing of consumer products within the communities where they are established. Currently, the Industrial Parks are being supported by the following developments:
Limpopo Connexion, a subsidiary of LEDA is rolling out broadband to Seshego Industrial Park to enhance fibre connectivity to all business development activities for industrialists and service oriented companies. It is envisaged that the cost of voice and multi-media communications for tenants will be reduced, contributing to their bottom line. One of the factories is earmarked for a digital hub in line with the Fourth Industrial Revolution.
Limpopo Province is in the process of launching the One Stop Shop initiative, where investment promotion sectors of the province, critical instruments of national and provincial government will be housed under one roof to facilitate investments opportunities in the province. LEDA Industrial Parks will be a big beneficiary of this initiative and it is on that basis that its refurbishment is critical for a central coordination of investment opportunities in the province.
The District Planning Framework model, presents an opportunity for all District Municipalities and commercial concerns, to concentrate planning at a district level in order to consolidate and leverage resources. This is done in order to effectively and efficiently manage economies at district level. The impact of such a model hinges on sound industrial infrastructure that support manufacturing, packaging, logistics and distribution of final products and services into other districts. The refurbishment of factories among other things endeavours to support the developments in order to ensure that investors realize the synergy of purpose across programs and projects
AdLEDA has again filled an application for the designation of Fetakgomo-Tubatse SEZ with the Department of Trade, Industry and Competition. This is to enhance the level of competitiveness of all economic districts through partnership with the DTIC in a more coherent manner.
Seshego Industrial park - is adjacent to Polokwane city and provides investors with N1 route to Gauteng and Musina. The Park is positioned well on R56 to Mopani on the east and N1 to serve all the districts of Limpopo Province, and connect timelessly to Gauteng, Mpumalanga and North West Provinces respectively.
3. Fetakgomo – Tubatse Special Economic Zone
The changing global nature and the future outlook of products and services for immediate and future consumption dictate an investment strategy that developing economies will pursue over short, medium and long term periods. Fetakgomo-Tubatse SEZ Program analysed numerous desktop research & findings to position its investment promotion strategy to the world. It should be consistent with the natural resources and commodities available in Limpopo at the scale and value of finished products to consumers globally.
Fetakgomo-Tubatse SEZ as the destination for investment focuses on the following sectors:
Energy cluster. Current analysis conducted on the global energy environment in both local and global dispensation, centred on sustainable goals. The Fetakgomo-Tubatse Municipality, which is host to platinum, is well placed to produce and package battery storage cells, nuclear energy cells, and production of solar energy components. Plans are underway to conduct feasibility studies, with a view to attract potential industrial players. The feasibility studies report will reflect on the following areas; profitability, sustainability and due diligence.
Pharmaceutical cluster. The increased focus on beneficiation of natural resources from primary production to finished goods in the secondary industries is at the heart of Limpopo Province agro-processing strategies.
Natural plants carrying medicinal properties are increasingly becoming the source of life in both emerging and first world countries. Fetakgomo-Tubatse has soil and climate conditions suitable for Lengana and Moringa plants which are among plants of interest for health practitioners and pharmaceutical companies producing medicine for growing economies towards natural as opposed to medicine derived from chemical processes.
The population in the SADC currently stands at 300m. This market is untapped for this emerging natural medicine particularly for malaria ailment and other diseases. The three Districts of Limpopo Province, Vhembe, Sekhukhune and Waterburg have soil and climate conditions for growth of these medicinal plants and this give Fetakgomo-Tubatse more appetite to pursue pharmaceuticals cluster as another key component for investment promotion.
Meat and cotton
Sekhukhune District produces high quantities of cotton for export to other provinces for production of clothes. The same is said about the high quality meat that is transported to Gauteng for processing, packaging and distribution back to retailers in Limpopo and other provinces.
The study conducted recently concluded that the district of Sekhukhune has potential to create more job opportunities in the value chain of meat production, packaging and distribution. The Fetakgomo-Tubatse SEZ will endeavour to mobilize resources for feasibility studies in the agro-processing for cotton and meat as a way to attract investors for the sector.
Vanadium cluster. Proposal for feasibility studies are already approved by LEDA for processing of vanadium for production of battery storage. This is part of energy sector although classified as vanadium to eliminate miscommunication in investment promotion. The huge growing market for battery cars globally requires the establishment of battery storages.
Chrome and PGMs. Feasibility studies to determine quality and quantity of chrome availability is also earmarked to determine what investment strategy is applicable to investment promotion and value proposition to investors.
Stakeholder Management. Consultations and discussions among key stakeholders finally agreed for inclusion of Fetakgomo-Tubatse in the planning framework for local municipality as well as resources applicable for implementations of plans across the integrated development plans, in a more integrated and coherent manner. In that context, the district planning model that emphasizes on an integrated approach to planning is being applie
