Limpopo unveils R1.8 billion budget boost for economic development

The department of economic development, environment, and tourism, which is responsible for the economy of the Limpopo province with over 5.8 million population, has tabled an annual budget of R1.8 billion to swell the province’s economy after the viciois Covid-19 pandemic.

Departmental MEC Rodgers Monama told the province he had planned to improve the province’s economy by bumping more funds into the special economic zones (SEZ) of Musina/Makhado and Fetakgomo Tubatse, revitalising the Seshego and Nkowankowa industrial parks, opening economic opportunities for small, medium, and micro enterprises (SMMEs), mainly for youth, women, and people living with disabilities, and improving the domestic tourism of the province to attract both domestic and international tourists, to mention but a few. 

R10m set aside to capacitate SMMEs

“In the year under review, my department has set aside R10 million to capacitate our SMMEs and corporations in our towns, townships, and rural villages,” said Monama as he presented his budget vote in Polokwane on Tuesday. 

He said the province was fully committed to establishing the Limpopo Rural Economy and Cooperatives Plan.

To this end, he said his department has committed R500 000 to the Township and Rural Business Support Strategy, benefiting 100 entrepreneurs across the five districts of Moapni, Vhembe, Sekhukhune, Capricorn, and Waterberg. 

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“Through partnership with the Department of Trade, Industry, and Competition (TIC), we are committing R49 million towards the refurbishment of industrial parks and the Digital Hubs across the province.”

Support centre in the Nkowankowa Industrial Park

The MEC said the province was currently running a manufacturing support centre, also known as the Tooling Initiative, situated in the Nkowankowa Industrial Park.

Monama said the park was equipped with state-of-the-art machinery, aimed at strengthening and broadening the manufacturing sector for the benefit of all the people of Limpopo.

In the previous financial year, he said the centre managed to create 10 apprentices who qualified as artisans. This coming financial year, Monama said six more people would be trained to become tool and artisans.

“Our special economic zones of Musina/Makhado has also begun yielding much-needed economic opportunities for our people. The designation phase is now complete, and we have begun with the implementation of bulk infrastructure such as internal roads and storm water on the north side of the zone.”

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“Despite the teething challenges, the department is doing everything in its power to ensure that bulk infrastructure is ready, waiting for investors to invest in the space. During the 2023/24 financial year, the SEZ initiated the implementation of internal roads and storm water at a total budget value of R200 million. The current progress on site, Monama said, is currently about 25% complete.”

“We are happy to announce that during the recent Mining Indaba held in Cape Town, we scored a lucrative investment deal with an international Cape Town-based company called Red Rocket Energy to the value of R10 billion.”

Red Rocket’s investment in the zone

The chief executive officer for the Musina/Makhado SEZ, Leglogonolo Masoga, who is a former Limpopo ANC youth league, told the media recently that Red Rocket’s investment in the zone was for the development, construction, and operation of a 500MW solar PV in the South Site of the MMSEZ.

He said it is expected to produce the much-needed power within a suitable piece of land of about 1 250 hectares for the location of the plant inside the zone.

For its part, this power producer, Masoga, said it was expected to, inter alia, undertake feasibility studies and identify suitable locations for the development of the facility.

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“This is to mobilise financial resources for investment in the development and operation of the proposed solar PV facility. The project will create much-needed employment opportunities for the local communities,” said Masoga.

According to Monama, multi-year projects such as electricity lead material, bulk electricity infrastructure, internal roads and storm water projects, bulk waste water infrastructure, bulk water supply, and an electricity perimeter fence would be underway within the zone. 

R760m estimated for all projects

The estimated value for all these projects, Monama said, is R760 million. He added that R300 million has been set aside for this year-end.

Bulk infrastructure development projects at the Fetakgomo and Tubatse industrial parks are currently in the planning stage. Currently, Mona said there are 37 companies on the investment pipeline with an investment combined value of approximately R56.6 billion. 

Tabling the budget, the MEC, whose department was the only one in the entire province to receive a clean audit outcome from the Auditor General (AG) last financial year, said his department was allocated R1.866 315 billion for 2024/25 financial year. Monama gave the administration R379,814 million, R978,338 million to integrated economic development services, R398,298 million to environmental affairs, and R109,055 million to tourism.

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Included in the above total provincial budget allocation is the transfer to public entities as follows: R834,656 million for the Limpopo Economic Development Agency (LEDA), R68.592 million for the Limpopo Tourism Agency (LTA), and R82,865 million for the Limpopo Gambling Board (LGB).