The 2021/22 edition of Limpopo Business is the 13th issue of this highly successful publication that, since its launch in 2007, has established itself as the premier business and investment guide for the Limpopo Province.
Limpopo has been attracting significant investments in the mining sector in recent years and with commodity prices of certain minerals rising in response to demand in the renewable energy and automotive sector, mining houses are well-positioned to expand production even further.
This journal carries messages of welcome to investors from the province’s Premier and the MEC for Economic Development, Environment and Tourism. In addition to the regular articles providing insight into each of the key economic sectors of the province, there is special feature on plans to catalyse investment and growth in the province through measures such as industrial parks and the Musina-Makhado Special Economic Zone in the province’s far north, which is attracting billions of dollars in investment. News related to mining, agriculture, tourism, construction and property, water, education and development finance is carried in overviews of the main economic sectors.
MESSAGE The future is in
MESSAGE The future is in Limpopo An international investment conference in September 2021 showcased the province’s abundant opportunities. A message from the MEC for Economic Development, Environment and Tourism, Thabo Mokone. Limpopo Province has comparative advantages in mining, tourism, manufacturing, green energy and agriculture due to its abundant natural, heritage and cultural resources. In order to address the structural rigidity and the legacy of economic exclusion, the provincial government took a bold step to industrialise the economy based on the beneficiation of its mineral wealth, and increased valueadded activities aligned to the key sectors of our economy. The Province has established partnerships with the private sector in tourism, mining, agriculture and the wildlife industry as well as organised business. To strengthen this partnership, the province hosted a Tourism Lekgotla and a Mining Indaba during August and October 2021 and staged an international investment conference in September 2021. The aim of the conference was to market the province as an attractive investment destination and present the abundant opportunities to potential investors. The Province has developed the Limpopo Development Plan for 2020-2025 with these strategic focus areas: • Industrialisation of the economy • SMME and co-operatives development and support • Revitalisation of township and village businesses • Transformation of the economy through procurement • Support and build capacity for manufacturing • Develop infrastructure for the economy • Create a better Limpopo within Africa and the world • Sustainable environment and natural resources. Provincial growth points and industrial clusters have been identified in pursuit of increasing manufacturing. These clusters include Platinum and Chrome (PGM), Metallurgical, Tourism, Agribusiness and Meat, Horticulture and Forestry as well as Logistics. Some of the flagship industrialisation projects are the Musina-Makhado Special Economic Zone (MMSEZ) and Fetakgomo-Tubatse SEZ. A pipeline of investments in both SEZs has been established. In the MMSEZ the project pipeline is worth R150-billion with the potential of creating over 21 700 job opportunities. The key investment opportunities for the MMSEZ are in energy and metallurgy, agro-processing, logistics and general manufacturing. The potential value-add for Fetakgomo-Tubatse is R25-billion with a potential to create over 8 000 job opportunities. The total estimated projects pipeline for investment is around R250-billion. I would like to take this opportunity to invite all potential investors to take advantage of the beautiful scenery and untapped natural resources offered by the Limpopo Province. ■
Providing quality and sustainable road infrastructure The CEO of Roads Agency Limpopo, Gabriel Maluleke, gives an update on current and upcoming roads projects. INTERVIEW What are the responsibilities of Roads Agency Limpopo? Roads Agency Limpopo (RAL)’s focus is on connecting the people of Limpopo through providing quality and sustainable provincial road infrastructure for the Province’s economic development. RAL is currently responsible for 20 091km’s of the 71 450km’s of road network in Limpopo. The balance is controlled and managed between SANRAL and municipalities. TRICOLOUR LOGO VERSION PROCESS COLOUR CMYK - 0, 0, 0, 60 HEX - 818285 PROCESS COLOUR CMYK - 69, 62, 62, 54 HEX - 383938 PANTONE P49-8C CMYK - 0, 99, 91, 2 HEX - C01823 Gabriel Maluleke, CEO of RAL BIOGRAPHY Gabriel Maluleke, a Chartered Accountant by profession with more than 30 years’ experience in financial management, was appointed as RAL CEO in January 2020. Before joining RAL in that position, he served as an independent member in the Agency’s Audit and Risk Committee (ARC). A licensed Business Rescue Practitioner, he also has immense experience in strategic leadership. He has introduced stringent supply chain and contract management processes and policies that led to RAL obtaining and maintaining unqualified audit outcomes. What is RAL’s SMME policy? SMME empowerment is the policy of SA government. The service providers appointed by RAL for the construction of roads are required to employ local labourers and utilise the available services of local (SMMEs) as sub-contractors and suppliers. 30% of the total contract value on all upgrading projects (gravel to tar), must be spent on local SMME empowerment and 10% on local labourers. For all the maintenance projects, 10% is allocated for local SMMEs and 5% for local labourers. What impact has Covid-19 had on the work of RAL? Covid-19 is a natural phenomenon which nobody could predict and control. Various industries, including ours, are figuring out how to minimise impacts of similar occurrences in the future. Initially RAL had to stop on-site implementation of projects and reduce the number of staff in office. What steps were taken to ensure the safety of staff? RAL is responsible for ensuring the safety of internal and external stakeholders in all RAL environments. Protocols have been established to handle exposure and infections. We created a conducive environment in dealing with Covid 19 given the negative impact it has had on staff’s mental wellness. RAL’s service providers were emphatically instructed to comply with all the Covid-19 protocols. RAL had to adjust its projects schedule to ensure that planned projects for 2020/21 did not fall behind. ■ 11 LIMPOPO BUSINESS 2021/22
