The Limpopo Province investment climate is characterised by high-value 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 co-operatives, 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 focuses on registrations and formalisation, training, business planning, access to funding and finance, and access to markets. The programme has registered success for most participating businesses. In the 2018 financial year, 294 enterprises were assisted in various programmes and were able to sustain 1 343 jobs.
LEDA entered into an MoU with the Companies 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, amendments and annual returns. The turnaround on business registrations is less than five working days, an improvement that ensures that entrepreneurs are able to access business opportunities at the earliest time possible.
LEDA’s industrial parks are host to enterprises in the manufacturing and services sectors across the five districts of the province. In line with promoting more investment in these industrial parks, the agency is collaborating with the dti on a programme to increase lettable space for rentals. This strategy aims to increase manufacturing across the value chain and make connections between industrial players, emerging enterprises and the Black Industrialists Programme. Phase 1 of the revitalisation in both Seshego and Nkowankowa is complete. This included security features to the entire area and plans are afoot to commence with phase 2. The plans to have industrial parks in Vhembe are also well underway.
The province is rolling out broadband in the province to support the socio-economic development imperatives set out by the National Development Plan and Limpopo Development Plan. The stimulation of economic development is embedded in cost-effective communication technologies that are available, accessible, reliable and affordable. The Broadband Act calls for connectivity to society at large to ensure that costs of doing business are reduced and the country is transformed towards a knowledge economy that can 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 to the network, offering free Wifi services to students at Library Gardens and to the broader community at the Polokwane Civic Centre.
Through its subsidiary Great North Transport, LEDA provides essential services in transporting commuters and passengers to various destinations on a daily basis. Transport is the backbone of the economy and through this subsidised service, it provides households with discounted fares, enabling commuters to get to work and to go about their business.
Risima Housing Corporation Finance breaks new ground annually through various housing development schemes to residents throughout the province. Risima is equally active in providing products and services in the housing sector in rural areas, townships and cities. In the year ahead, Risima will endeavour to increase its portfolio of products and services as a contribution to transforming Limpopo Province, traditionally a rural province, to an industrial powerhouse in terms of mining, agriculture and tourism.
We invite all investors to join us in our journey towards a prosperous future.
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Explore business and investment opportunities in Limpopo Province:
A unique guide to business and investment in Limpopo
The 2019/20 edition of Limpopo Business is the 11th issue of this highly successful publication that, since its launch in 2007, has established itself as the premier business and investment guide for the Limpopo Province.
Limpopo has several investment and business opportunities. In addition to the regular articles providing insight into each of the key economic sectors of the province, in the 2019/20 edition of Limpopo Business there are special features on various Special Economic Zones (SEZs) which aim to drive industrialisation in the province and the initiatives which are further enhancing the tourism offering in Limpopo.
News related to mining, agriculture, transport and logistics, education and development finance is carried in overviews of the main economic sectors in the province.
To enquire about advertising the 2020/21 edition of Limpopo Business, contact Global Africa Network Media.