Limpopo SOPA

ECONOMIC RECOVERY AND JOB CREATION

The central theme of Limpopo Premier Chupu Mathabatha’s State of the Province was about economic recovery and the creation of much-needed jobs in the province.

Mathabatha said to achieve the aspired economic growth levels and to support job creation initiatives, fight poverty and inequality his province Limpopo needs to promote growth–enhancing plans.

“There is a need to position Limpopo Province as an investment destination of choice for both domestic and foreign investors,” said Mathabatha.

High unemployment rate

According to the Stats SA’s Quarterly Labour Force Survey (QLFS) for the period between 1 April 2021 and 30 June 2021, one out of every two people in the Limpopo labour force was unemployed.

At 49.9%, Limpopo has the third highest expanded unemployment rate after the provinces of the Eastern Cape (53%) and the Northern Cape (50.3%).

To reverse the economic damage caused by the Covid-19 pandemic, Mathabatha said the total investment and intervention by their economic recovery plan is projected at around R170 billion and will create 48 000 jobs in the next five to ten years.

“In addition, the implementation of the Limpopo Industrial Master Plan has also received R208 billion in investment pledges from the Limpopo Investment Conference and that will go a long way in helping to industrialize the province and thus creating the much-needed jobs for the people,” Mathabatha said.

Amongst other investments projects that Mathabatha highlighted included the Masingita Group which has pledged R5.46 billion for the construction of the Nkuna Smart City in the Collins Chabane Local Municipality.

Mathabatha announced that the construction of the Phase 1 of the Nkuna Smart City has already commenced and it is anticipated to create 585 construction jobs and 325 permanent jobs.

Mining sector job opportunities

In reducing high unemployment levels and grow provincial economy, Mathabatha said the Sefateng Chrome Mine operations would be rolling underground mining infrastructure in Sekhukhune with an investment value of R1.2 billion.

“The project is anticipated to create 350 construction jobs and 600 permanent jobs during full production,” he said.

“I am also happy to report that Ivanhoe Mines is also living up to its investment commitments. To date, the company has already spent R7 billion of the R9 billion commitments on mining infrastructure in the Waterberg Region,” he said.

Mathabatha said the remaining R2 billion will be spent in the current calendar year.

“So far, the investment has created 778 jobs, and this figure is expected to rise to 1000 jobs by December 2022,” said Mathabatha.

Mathabatha further said an investment commitment of R48 billion from Anglo American & De Beers will see R3,9 billion spent on the Mototolo Mine in Sekhukhune, in the first quarter of 2022.

The project has extended the life of the mine, thus helping to sustain the existing jobs, he said.

Tourism sector projects

Tourism in Limpopo contributes significantly to the national and provincial economies of South Africa, with more than 5% to Limpopo’s economy and 3% to the national economy, Mathabatha said.

The Premier also shed a light about two hospitality projects that will boost provincial tourism sector and create permanent jobs for the people of the province. “With an investment value of R250 million, the construction of Amazin Hotel in Capricorn Region is expected to commence in September 2022. The project will create a good number of jobs both during and post construction,” he said.

Mathabathat also indicated that Shekinah Lion & Game Lodge had already spent R47 million of the R60 million commitment for a hospitality project in the Waterberg Region.

“The facility will create permanent jobs through hospitality services,” said Mathabatha.

Mathabatha also announced that farming enterprise and world leader in tomato production ZZ2 had pledged R128 million for the construction of a pack-house in the Mopani Region.

A total value of the R128 million commitments has been spent with the pack-house expected to be fully operational around April/May. Mathabatha said the project is expected to create 250 jobs when fully operational.

Special Economic Zones

The Musina-Makhado Special Economic Zone (SEZ) will be officially launched in 2022/23 financial year. Mathabatha announced that such Special Economic Zones are designed to increase trade balance, employment, increase investment, job creation and effective administration.

Mathabatha said his administration has put aside R600 million towards infrastructure roll-out in Musina town.

“Government is well on track in turning the Musina-Makhado Corridor into a melting-pot of industrial activity. The manufacturing, agro-processing and logistics hubs of the project are finally taking off the ground, In keeping with the global policy shift on energy generation and the commitment to sustain development, SEZ has embraced the net-zero carbon emission goal by introducing green solar power,” Mathabatha said.

Mathabatha also announced that progress towards designing the Fetakgomo -Tubatse SEZ is at an advanced with about 21 companies that seek to invest around R45 billion and create over 8 000 jobs already showing interest.

Focus on education

Mathabatha announced that he will be convening a provincial education Lekgotla in March 2022 to help find long-lasting solutions to education challenges.

He said the Lekgotla will focus on holding accountability sessions with districts and circuit managers on performance of their respective districts and circuits and come up with intervention strategies to improve learner performance across the system.

Among others the Lekgotla will also focus on issues around holding principals accountable for underperformance in accordance with the provisions of the law.

Mathabatha said they are have completed sanitation infrastructure at 135 schools across the province and construction of similar infrastructure is still underway at about 27 more schools.

“Government also re-advertised for the construction of additional 47 new school sanitation infrastructure for 2022/23. The school sanitation projects are being implemented with a budget of R455 million, ”said Mathabatha.

He said the partnership between Government and Mvula Trust is implementing sanitation projects at around 203 more schools across the province and the project is implemented at a value of R162 million.

New hospital and fighting Covid-19

Mathabatha announced that the Polokwane Local Municipality has donated a piece of land for the construction of an academic hospital.

“The hospital will have 488 beds and already over a R4 billion budget has been put aside for the construction. I am in the process of interacting with the national government to expedite the implementation of the project,’ said Mathabatha.

Mathabatha said there was no doubt that Covid-19 has presented itself as the biggest public health threat and defeating Covid-19 is therefore a task at the apex of government priority list.

“Limpopo has done fairly well when it comes to the assignment of rolling out life-saving Covid-19 vaccines. The province has managed to administer 2,9 million Covid-19 doses and this represents adult first dose coverage of 52%,” said Mathabatha.

Further said the more pleasing news is that 68% of the population from the age of 60 and above are fully vaccinated.

“The province have expanded the vaccination program to the Primary Healthcare Centres and have 200 Primary Healthcare Centres which are offering Covid-19 vaccination on daily basis,” he said.

Road projects

Mathabatha said quality road infrastructure is an important enabler for growth and development and one of the government priorities is building new roads and maintaining the existing road infrastructure.

He said through the Road Agency Limpopo government continue to build quality roads that makes lives of the communities better whilst raising admiration from the rest of the country.

Mathabatha also shed light about progress on the following road infrastructure projects:

The rehabilitation of 11km on road D1589 from Ga-Kgobokanang to Ga-Makgato and De-Vrede in the Capricorn District is at 98% while the rehabilitation of 7.3km on road D2537 road in Penge in the Sekhukhune district; is at 51% complete.

The rehabilitation of 5km on road D4150 in Praktiseer in the Sekhukhune district is at 65% with the rehabilitation of 9km on road D11 from Ga-Mamaila Kolobetona connecting the R81 in the Mopani District is standing at 58%.

He also announced that during the 2022/2023 Financial Year and

the 2023/2024 financial years, his administration will commence with construction work on about a dozen of new road infrastructure projects across the province.

Food security

Mathabatha said government will embark on programme of the revitalization of irrigation schemes, as part of an effort aimed to increase agricultural production and improve food security.

He said work was already underway with positive results already recorded. Mathabatha said the Mogalatšane Irrigation Scheme has now planted over 80 hectares of cotton and 30 hectares of dry beans in 2020/21 planting season. The 2020/21 production season created 50 seasonal jobs.

Youth and 4IR

Mathabatha says the province will have digital hub centres in Seshego and Nkowankowa which will serve as a training centres for community members, provide access to information and communication technology (ICT) facilities. The Premier said the centres will enable incubation mainly for young entrepreneurs operating in the Information Communication Technology (ICT) sector.

“Central to the objectives of digital hub initiatives is to provide the youth and the unemployed access to information and communication technology,” Mathabatha said.

He further said the hubs are designed to bolster digital training and create jobs within the broader national infrastructure development programme.

The business plan for Seshego Digital Hub has been finalised and Limpopo Connexion has been appointed as the operator of the Hub. Modelling and layout plans have been finalised, Mathabatha said. “The construction of the Seshego Digital Hub will commence in this Financial year, at a project cost of R23 million,” he said.

Mathabatha also announced that Limpopo has completed the roll out of a requisite infrastructure, comprising a data centre, network operating control centre and contact centre. A total of 52 sites have been connected to the network, using both fibre and satellite technologies.

“The establishment of the Limpopo Science and Technology Park, which is a visionary and catalytic project to transform the provincial economy, is well underway. Once completed, it will be a major driver of the Province’s competitiveness,” said Mathabatha.

SMME support

“Through the Limpopo Economic Development Agency (LEDA) government managed to provide incubation support to over 100 SMMEs with over 60% youth–owned enterprises,” said Mathabatha.

Mathabatha said the province has been able to create 279 employment opportunities benefiting youth, women and people living with disabilities.

“In addition, government was able to provide similar developmental support to 100 co-operatives, 32 of these are youth owned and this tailored support to co-operatives assisted to sustain around 690 employment opportunities”.

He said they have also assisted around 77 youth-owned enterprises to access development finance.

Contact Details

Postal PO Box 111, Polokwane, 0700 Physical Cnr Landdros Mare & Bodenstein Streets, Polokwane Tel: 015 290 2000/290 2001 Fax: 015 290 2218 Web: www.polokwane.gov.za