Creating a conducive climate for investment

The Interim CEO of the Limpopo Economic Development Agency, Dr Matata Mokoele, explains how LEDA is building infrastructure and supporting initiatives to attract investors.

Dr Matata Mokoele, CEO

The Limpopo Province investment climate is characterised by highvalue sectors that drive world economies in many ways. Agriculture, tourism and mining continue to define the future economic growth trajectory for the province. Traditionally, these sectors boosted gross domestic product through their primary activities. As the world evolves and new opportunities emerge in the industrial value chains, these sectors are increasingly becoming key to economic growth through the transformation and industrialisation of the province.

Limpopo Province, whose employment is largely driven by the government sector, adopted the Limpopo Development Plan five years ago as a socio-economic transformation blueprint. It outlined how the government in collaboration with civil society institutions could unlock economic growth through appropriate policy. For instance, mining and agriculture were identified as the linchpin for industrialisation through the beneficiation of these resources.

The province continues to see steady growth in hunting which can be a springboard in the tourism sector for growth and transformation. The province continues to lead the country in terms of arrivals from the African continent and the tourism sector’s contribution to job creation is significant.

These developments and future economic growth are driven through institutions such as the Limpopo Economic Development Agency (LEDA) which develops and promotes SMMEs and cooperatives, investment promotion, business funding and caters for the provision of industrial parks. These industrial parks, situated across the five districts of the province, stimulate manufacturing in line with the Limpopo Development Plan and National Development Plan. LEDA is collaborating with National Department of Trade and Industry (dti) in refurbishing industrial parks in Seshego and Nkowankowa. The goal is to revitalise rural and township economies.

The Limpopo Development Plan, which is due for revision for the next five years, has laid a very good foundation for the MTF period. Local and international investors have many avenues for exploring collaboration with local emerging enterprises.

SMMES and co-operatives Support for SMMEs and co-operatives in the province is well documented. LEDA has created and implemented a business incubation

strategy for emerging and existing enterprises which imperatives set out by the National Development Plan focuses on registrations and formalisation, training, business planning, access to funding and finance, and Limpopo Development Plan. The stimulation of economic development is embedded in cost-effective Limpopo Development Plan and access to markets. The programme has registered communication technologies that are available, success for most participating businesses. In the 2018 accessible, reliable and affordable. The Broadband Act Improving lives, and creating a conducive environment for investment. financial year, 294 enterprises were assisted in various calls for connectivity to society at large to ensure that programmes and were able to sustain 1 343 jobs. costs of doing business are reduced and the country is

LEDA entered into an MoU with the Companies transformed towards a knowledge economy that can I and Intellectual Property Commission (CIPC) where all business registration services will be delivered at LEDA offices at lower cost. To date, 26 399 enterprises were assisted with services ranging from registrations, transact with the world with ease. To date the Data Centre, which is the nerve centre of the network, the Call Centre and the Network Operating Centre are completed. Forty-four (44) sites have been connected mproving the lives of the citizens of Limpopo is the overarching aim of the Limpopo Development Plan. The economic levers that can bring that improvement about present investment opinfrastructure, an integrated public transport policy and land policies. This article focusses on the economic aspects and the potential of the LDP for private investors amendments and annual returns. The turnaround on to the network, offering free Wifi services to students portunities, particularly in the sectors that have been to participate. business registrations is less than five working days, identifi ed as key drivers of growth: mining, tourism at Library Gardens and to the broader community at Key elements of the Limpopo Development Plan an improvement that ensures that entrepreneurs are the Polokwane Civic Centre. and agriculture. are: industrialisation (benefi ciation of mining and able to access business opportunities at the earliest The Limpopo Development Plan (LDP) is targetagricultural products and produce); mining (local time possible. ing three broad areas for improvement and development: socio-economic, infrastructural and instituCommunity services suppliers, improved training and access to sector for entrepreneurs); infrastructure development; Industrial parks tional. Every department of the Limpopo Provincial Government has targets within the LDP which Through its subsidiary Great North Transport, LEDA provides essential services in transporting commuters agri-processing; SMME promotion; and ICT and the knowledge economy (establish a WAN footprint). LEDA’s industrial parks are host to enterprises in the are translated into actionable programmes to be and passengers to various destinations on a daily basis. Mining is currently the most important part of manufacturing and services sectors across the five Transport is the backbone of the economy and through implemented within time-frames. the provincial economy, contributing nearly 30% to districts of the province. In line with promoting more this subsidised service, it provides households with Development is defi ned as broad-based imGDPR. Many platinum mining developments on the investment in these industrial parks, the agency is discounted fares, enabling commuters to get to work provements in the standard and quality of life for eastern limb of the Bushveld Complex have spurred collaborating with the dti on a programme to and to go about their business. the people living throughout the province, to which growth in that region. One of the goals of the LDP increase lettable space for rentals. This strategy aims Risima Housing Corporation Finance breaks new all institutions (including government, business, is to see more benefi ciation from the mining sector, to increase manufacturing across the value chain ground annually through various housing development labour and citizens) contribute. Increased job creawhich will support the goal of further industrialisand make connections between industrial players, schemes to residents throughout the province. Risima is tion, higher incomes, better access to good public ing the province’s economy. Related to this is an emerging enterprises and the Black Industrialists equally active in providing products and services in the services and sound environmental management are emphasis on the manufacturing sector. Programme. Phase 1 of the revitalisation in both the measures of the development plan. housing sector in rural areas, townships and cities. In the In response, the two Special Economic Zones

Seshego and Nkowankowa is complete. This included year ahead, Risima will endeavour to increase its portfolio The plan, currently in its implementation (SEZs) at Musina and Tubatse promote manufactursecurity features to the entire area and plans are of products and services as a contribution to transforming phase, is further supported by a spatial investing. Specifi c manufacturing value-chains are identiafoot to commence with phase 2. The plans to have Limpopo Province, traditionally a rural province, to an ment framework in public and private sector fi ed for each area, based on the base mineral being industrial parks in Vhembe are also well underway. industrial powerhouse in terms of mining, agriculture and tourism. Broadband LIMPOPO BUSINESS 2017/18 20 We invite all investors to join us in our journey towards a prosperous future.

The province is rolling out broadband in the province to support the socio-economic development Website: www.lieda.co.za