How Limpopo plans to rise to the challenge
Investment in infrastructure, including broadband, is key
The Limpopo government has set itself the target of raising the province’s contribution to South Africa’s GDP from the current level of 7% to 8 % by the end of this term of government. Acting director-general in the Office of the Premier Nape Nchabeleng expresses confidence that the province now has a capable public service in place that can deliver on this goal.
Nchabeleng recently gave a brutally frank but encouraging picture of the province’s attempts to meet key targets in the Limpopo development Plan. He says the province aims to maintain a growth trajectory of at least 3% to 2020 and increase its matric pass rate from the current 72% to 80% by 2020, as well as create 429 000 jobs in that period. This is meant to help reduce the unemployment rate to 14% from the current level of 19,4%.
Nchabeleng’s overview shows that while the province in on track to meet its goal of providing water and sanitation as well as electricity to between 85% and 90% of the population, the province is struggling in areas such as reaching the desired numbers of people being tested for HIV, thereby placing at risk the government’s goal of halving new HIV infections by 2020.
The Limpopo government has succeeded in reducing incidence pf poverty from 4-million people or 80% in 2002 to below 3-million people or 69% at present.
The province has a number of key infrastructure projects. The most significant of these is Strategic Infrastructure Project (SIP), which is the largest of 18 SIPs has a value of R842 billion. The projects is the cantered on the Waterberg coal line to Richards Bay and has seven projects currently under construction. Three have been completed, while 21 are in pre-construction, suggesting a strong pipeline of projects.
Nchabeleng says government has also identified the need to strengthen capacity at municipalities through Local Economic Development (LEDs). The department has partnered with Wits University to roll out a training programme for LED departments in all of Limpopo’s district municipalities. The LDP notes that a municipality’s leadership must perform above average as a condition for sustainable development of the province.
The Limpopo Economy Summit recently adopted resolutions across six areas of work that are the pillars of the Limpopo development Plan.
Industrialisation
Industrialisation is centred on mineral beneficiation and agroprocessing. It is centred on the province’s five growth nodes and starts with targeted spatial planning.
The province then aims to manage the portfolio of investment concepts and their value chains through the entire project development cycle: from concept to bankability and implementation. The resolutions state that project development cycles should be tight but realistic.
The province aims to establish industrial parks where none existed and revitalise those that do, as well as introducing industrial development promotion incentives
The government aims to establish a Centre of Excellence to support research, innovation and industrialisation that would link with the CSIR and similar institutions nationally and internationally.
Mining
In mining, the province aims to have a minimum of 30% of every contract issued on capital, consumables and services for the province, subject to availability of a suitable supplier. The provincial government aims to establish a Limpopo Mining Forum to adopt an integrated approach to development and to set up a task team to deal with illegal mining. It also aims to collaborate with mines to strengthen technical colleges. The Limpopo Economic Summit showcased underexploited aspects of the region. Among the attendees were Deputy President Cyril Ramaphosa (left) and Limpopo Premier Stanley Mathabatha.
The province is also looking towards programmes to make entrepreneurs ready to access opportunities in mining.
Infrastructure
The primary focus of infrastructure is in bulk water supply focused on the five growth nodes to support industrialisation. The aim is to prioritise bulk water reticulation from key dams in support of industrial development. These include De Hoop, Nwamitwa, Nandoni, Flag Boshielo & Vaalkop (Northam) and raising the Tzaneen Dam by 3m. These will also be supported by wastewater treatment plants, to be built by September 2017
Infrastructure will see imporved road linkage between growth points and revived secondary airports.
Agroprocessing
In agroprocessing, the aim is to fast track the implementation of agri parks and development of agri-business models. The government also encourages the establishment of cooperatives and black-owned retail enterprises. It is prioritising youth
support programmes to address the challenge of aging farmers.
SMMEs
The government aims to develop legislative framework for informal business and strengthen regulatory framework for small business. The aim is to also develop rural development strategies in partnership with traditional leaders Leda will also bee recapitalised in order to focus on youth-owned businesses
ICT and knowledge economy
The summit resolved to establish a secure, shared, affordable and open access broadband wide area network (WAN) infrastructure footprint in line with identified growth points, providing access to citizens, government institutions and businesses. The broadband infrastructure needs to be secure and technology-neutral using a combination of wireless and fibre technologies to reduce costs.The aim is to also develop a Science and Technology Park Master Plan in line with the Polokwane Municipal Smart City 2030 Vision.