SPECIAL FEATURE Boosting
SPECIAL FEATURE Boosting manufacturing is a key priority for Limpopo Special Economic Zones and industrial parks are being built to provide infrastructure. Westfalia fruit warehouse. Credit: Westfalia Getting more value for the minerals and agricultural crops that are extracted from the soil of Limpopo is a major goal of economic planners. A key component of the strategy to boost the value of the region’s products through manufacturing is to develop Special Economic Zones (SEZs) and industrial parks. Described as “major catalytic projects”, the Musina-Makhado SEZ (approved and forging ahead), the Tubatse SEZ (proposed) and several industrial parks (either being revived or established) are central to the strategy to grow Limpopo’s manufacturing capacity. As of February 2020, Shaanxi CEI Investment Holdings had committed to a -billion investment in a vanadium and titanium smelter project at the Musina- Makhado SEZ (MMSEZ) and a further .1-billion had been pledged from other sources. The focus of the first phase of the SEZ is on energy and metallurgical processes but agriprocessing, logistics and general manufacturing are expected to follow in short order. An investment conference targeting the northern side of the SEZ was held in November 2019 and a South African company has announced it will manufacture products in the electric vehicle field, new energy solar system products, energy storage systems and high-density polyethylene water pipes. Most of the planning for both sections of the SEZ is complete and the Environmental Impact Assessments (EIA) are nearly finished. Projections for employment opportunities at the MMSEZ have been revised upwards to 26 000. The plans for the proposed Tubatse SEZ have been amended and will be submitted to national government in the course of 2020. The SEZ in Tubatse will focus on the beneficiation of platinum group metals (PGM) and mining-related manufacturing. Phase one of the project would see a 280ha site developed to accommodate a mining suppliers park, light manufacturing, heavy manufacturing, logistics, a solar energy cluster and a PGM beneficiation cluster. A good example of an attempt to derive greater benefit from an agricultural product is the plan to create a Marula Industrial Park. The Marula Industrial Hub envisaged for the Phalaborwa area will provide a platform to further LIMPOPO BUSINESS 2020/21 24
Limpopo United Business Forum The Forum provides local bodies with a single voice to talk to government. Limpopo United Business Forum (LUBF) is an overarching organisation comprising 10 business and professional organisations in Limpopo. LUBF represents a united voice that advocates and lobbies for the interests and aspirations of businesspeople in Limpopo. Members NAFCOC, Black Management Forum (BMF), Businesswomen’s Association (BWA), Progressive Professionals Forum (PPF), South African Women in Construction (SAWIC), Seshego Business Quorum, Forum of Limpopo Entrepreneurs (FOLE), Small Business Empowerment Unity (SBEU), Limpopo ICT Forum and the African Farmers’ Association of SA. Objective To collaborate and partner with public and private organisations in promoting and advancing the interests of members. LUBF further forms part of the social compact comprising business, government and civil society in order to grow the economy of Limpopo, contribute to the creation of jobs, reduce inequality and eradicate poverty. Programme of action Address challenges that affect small businesses. These include access to information, access to finance, access to markets and access to skills development and training. Late payments by government departments are a threat to the survival of small businesses. LUBF is lobbying the Provincial Treasury and the Limpopo Economic Development, Environment and Tourism Department (LEDET) to deal decisively with departments that continuously disadvantage small businesses. LUBF is looking forward to the Public Procurement Bill which will create a better legislative framework for local empowerment. In responding to the challenges that are currently facing SMMEs, LUBF has in the past two PROFILE months engaged with the Minister of Small Business Development, Honorable Khumbudzo Ntshaveni, MEC for LEDET, Honorable Thabo Mokoni, CEO for Musina-Makhado SEZ, Lehlogonolo Masoga, and the MEC for Public Works, Honorable Dickson Masemola in his capacity as the Chairperson of the Economic Transformation Unit of the ANC in Limpopo. Survival and opportunity • Businesses are struggling due to the stagnant economy, a situation that has now been exacerbated by the unprecedented pandemic. Limpopo has lower than average household income and low ICT connectivity. Small businesses have to continue creating jobs to save the economy. • LUBF has intensified its programme of action and has recently engaged many relevant stakeholders. The objective is to assist SMMEs to gain access to Covid-19 relief programmes and access business opportunities. • Intervention is vital for the survival of businesses but it is also true that the new economy presents opportunities for small businesses to create new jobs and maintain current ones. • LUBF’s role is therefore to ensure access to available programmes and assist entrepreneurs to take their space in the new normal of digitisation, innovation and manufacturing. • The leadership remain committed to uniting the voice of business. ■ Contact details Address: 1st Flr, Terminal Bldg, Polokwane Airport, Gateway Drive, Polokwane Tel: +27 15 296 0654 Administrator: Abram Luruli Cell: 084 451 9923 Email: Lubfreception@gmail.com Facebook: Limpopo United Business Forum-LUBF 25 LIMPOPO BUSINESS 2020/21
