South African Business is an annual guide to business and investment in South Africa. Published by Global Africa Network Media in Cape Town, the 2016 edition is in its fourth year of publication.
The publication provides up-to-date information and analyses of the country's key economic sectors, as well as detailed economic overviews of each of the nine provinces in South Africa.
OVERVIEW Regional
OVERVIEW Regional overview: Limpopo Limpopo is untamed Africa at its best. This is where some of the finest game parks on the continent are located – a place teeming with wildlife and a must-see destination for thousands of visitors from across the globe. Given the nature of Limpopo’s vast natural resources that range from abundant wildlife to spectacular scenery, it should come as no surprise that the province’s national parks (operated by SA National Parks, SANParks) remains among the country’s most popular family holiday destinations. But Limpopo is about far more than wild open spaces and the big famed five – it is the gateway to the rest of the African continent and is at the very centre of regional, national and international developing markets. Key sectors Cattle, sunflowers, cotton, maize, peanuts, avocados, tea, tomatoes, citrus and macadamias are among Limpopo’s key agricultural resources. Subtropical fruit like mangoes, paw-paws, litchis, bananas and pineapples are in abundance in the province and make up the bulk of export income. Many farms have been converted to private game reserves which are a great asset to the tourism sector in Limpopo. Mining The Mining Input Supplier Park in Steelpoort, which is funded by Xstrata, is an excellent example of private sector companies investing in the development of communities in which they operate. The Department has played a facilitation role in which 32 industrial units have been built with 22 companies already signed up to move into the facility. Mining is a key sector of the provincial economy. Corridor Mining Resources (CMR), a subsidiary of LEDA, has successfully taken a number of its prospecting licenses to mining right and feasibility study stages. Mining development should reduce poverty and create more job opportunities in the affected communities. Commodities that are currently eyed for future prospects are iron ore and coal. Speaking at the Limpopo legislature the Pinky Kekana, MEC for Economic Development, Environment and Tourism announced the construction of the Masorini Iron Beneficiation (MIB) project worth R2-billion in Phalaborwa. This is a joint venture operation between Iron SOUTH AFRICAN BUSINESS 2016 172
Limpopo sector contribution. SOURCE: MACRO-ECONOMIC INDICATORS, STATISTICS SOUTH AFRICA. Mineral Beneficiation Services (IMBS) and the IDC, which will produce a reduced iron product from PMC magnetite ore, for use in the steel-making industry. Feasibility studies have been completed for a further two plants with a capacity of producing 500 000 tons per annum and will directly employ about 650 people, as well as providing further opportunities for local support industries. Finally, showing more confidence in the sector, Anglo American subsidiary De Beers has approved a mining infrastructure expansion project in Musina worth R163-billion. Economic zones The Department submitted proposals and obtained approval from the Department of Trade and Industry for the establishment of OVERVIEW PERSONAL & GENERAL GOVERNMENT SERVICES 25% FINANCE, REAL ESTATE & BUSINESS SERVICES 17% TRANSPORT, STORAGE & COMMUNICATION 9% WHOLESALE, RETAIL, MOTOR TRADE, CATERING & ACCOMMODATION 13% CONSTRUCTION 2% ELECTRICITY, GAS & WATER 3% MANUFACTURING 4% MINING & QUARRYING 24% AGRICULTURE, FORESTRY & FISHING 3% two special economic. During the recent recession Limpopo provided support to 17 distressed companies through the Turnaround Solutions programme and was able to save 296 jobs. Limpopo’s provincial economy is dependent on the contribution of co-operatives and SMMEs which impact job creation in the province. To further guide business regulation and governance, the Department has completed amendments to the Liquor Act, which seeks to remove liquor outlets located close to schools and places of worship. Tourism and the environment Peermont Global has made an undertaking to the Gambling Board that it will commence construction of a third casino in Burgersfort in the Tubatse area, which is sure to boost visitor numbers to the region, while the annual Limpopo Marula Festival draws 30 000 participants and is growing in popularity. The Limpopo Environmental Management Act was drawn up to address specific provincial issues. Endowed with natural resources that are critical in providing national solutions that will foster conservation, sustainable use, as well as fair and equitable sharing of benefits from the use of natural resources. Limpopo is home to two transfrontier conservation parks, two World Heritage Sites, three biospheres, three national parks, 53 provincial nature reserves and more than 6 000 privately owned game farms, all enriched by beautiful landscapes. LIMPOPO www.limpopo.gov.za Capital Population Area Premier Polokwane 5 726 800 (2015) 125 754 km 2 Stanley Mathabatha (ANC) Languages Sesotho, Tshivenda, Xitsonga 173 SOUTH AFRICAN BUSINESS 2016
