Limpopo Business 2017-18 edition

SPECIAL FEATURE
site of a 12th-century iron-age civilisation) and the
Makapans Valley (Ndebele history and palaeontological
exhibits).
Industrialisation
The official approval of Special Economic Zone
status for Musina-Makhado in 2016 was closely followed
by the decision of the Limpopo Provincial
Government to apply for SEZ status for Tubatse.
This marks a determined shift in economic policy
towards promoting industrialisation and manufacturing
through beneficiation.
Heavy industries that have been identified as possible
tenants for the Musina-Makhado SEZ include
several that are dependent on the mining industry
to supply feedstock – possible processing facilities
that have been suggested to investors include plants
for coking, ferrochrome and ferrosilicon production,
pig-iron metallurgy, steel, stainless steel and lime.
A proposed petrochemical zone in the SEZ might
include a coal-to-liquids plant and a synthetic bitumen
plant.
A Chinese company has signed an agreement
to manage the Energy and Metallurgical Cluster
within the Musina-Makhado SEZ. Shenzhen Holmor
Resources Holdings will invest about R40-billion to
create the infrastructure for a range of private investors
to come in and produce steel, ferrochrome, pig
iron and the like.
The Tubatse Platinum SEZ is even more closely
related to the mining industry, as its name implies.
According to the Limpopo Economic Development
Agency (LEDA), 17 new mines were established in
the greater Tubatse/Burgersfort/Steelport area between
2001 and 2016, and a further 22 new mines
are planned. The completion of the large new De
Hoop Dam makes these plans possible.
The focus at Tubatse will be on the beneficiation
of platinum group metals (PGM), magnetite,
vanadium and chrome. Some of the products suggested
are: catalytic converters, platinum jewellery,
hydrogen fuel cells and solar energy component
manufacturing (wind turbines and PV modules).
A Mining Supply Park is envisaged which will be a
big boost for local businesses and suppliers. Getting
local small, medium and micro-enterprises (SMMEs)
engaged with and supplying to the mining sector
is a goal of the provincial authorities. A Limpopo
Mining Forum has been proposed and the provincial
government would like to see 30% of every
contract issued on capital, consumables and services
stay in the province, subject to their being a supplier
who is able to fulfil the contract.
Regions
Limpopo’s dry, cattle-rearing, western areas contrast
with the subtropical regions of the east where
forestry thrives and the central regions where vast
plantations produce 60% of the country’s tomatoes.
The area north of the Soutpansberg Mountains is
semi-arid. The Waterberg mountains stretch over
5 000km² through the northern reaches of
the province.
Limpopo has five district municipalities:
Capricorn District
Capricorn is the economic centre of Limpopo, with
the provincial capital Polokwane contributing 13% of
the provincial GDP. The cultivation of citrus, potatoes
and tomatoes is done on a large scale in the district.
Polokwane is the province's main centre for industry,
commerce, education and medical services.
The city is close to big concentrations of mineral deposits
and to fertile agricultural lands; its industries
reflect this diversity. Large industrial concerns such
as Silicon Smelters (one of the biggest of its kind in
the world) and a big brewery run alongside at least
600 industrial enterprises of a smaller scale.
Polokwane has good hotel and conferencing facilities.
Park Inn by Radisson Polokwane is the newest
hotel to open in the city. Nearby Moria attracts up to
a million people every year, when the Zion Christian
Church celebrates Easter.
Greater Sekhukhune District
Government is the largest employer in this southern
district, followed by agriculture and hunting.
The vast majority of households are rural (94%)
and Groblersdal is the district capital. The region’s
fertile lands produce maize, tobacco, peanuts,
LIMPOPO BUSINESS 2017/18
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