Environment and Tourism, Limpopo, Honourable O.C Chabane
4 April 2006
Honourable speaker and deputy speaker
Honourable Premier
Colleagues in the Executive Council
Honourable members of the legislature
Honourable Mayors and Councillors present today
Leadership of our glorious movement the ANC and other political parties
Traditional leaders
Representatives of financial institutions
Distinguished guests
Ladies and gentlemen
Each year in our national calendar, we meet here to reaffirm the ties that
bind us together with our people in our great endeavour to bring about a better
life for all. In 2005, fifty years after the people of South Africa stood
united against tyranny and oppression, the country celebrated the unchained
human spirit that resonates deep within all of us. This spirit, the letter of
which culminated in the Freedom Charter and enshrined in both the Constitution
and Bill Of Rights, forms the essence of what makes us South Africans, united
in our diversity.
We have come this far and no glance back or wishful thinking will reverse
the trajectory of the spear of development. In one's mind reverberate the
incessant sounds of elation and celebration as men, women and children took to
the streets to welcome a new dawn, a new beginning for all our people. As is
nature, everything always comes full circle, and today is such a moment,
weathered only at the tips by the elements and storms but leaving our essential
character intact. In a way, Honourable Premier, we have travelled along this
long road to a place many of us knew only in their dreams, and we have come to
this place that we know so much. It is said therefore that "home is where our
feet may leave, but never our hearts", and so it will be with our commitment to
democracy and freedom.
In ten years, we have once again come to the definitive moment of our
historical development as a nation where the ballot has once again determined
the progress we institutionalised in 1994, and refined through the
establishment of the sphere of local government. As a new department that has
recently had to reconfigure its activities, we have a firm belief that our work
has to touch the lives of our people at every level, and nowhere is there more
of this need that at local government level, and so it is with great pleasure
that we will be lending our support to the provincial plans to drive economic
development and further deepen democracy at this level.
The department has hit the ground running as loss of momentum would
adversely affect the state of much of our delivery machinery, and thereby
compromise the confidence that drives investor interest in the province. We
have re-organised our institutional capacity to deal with the demands of
modern-day business, and sought to bring in innovation to respond much quicker
to our environment. In this regard, and as Honourable members will know, the
Department launched an innovative campaign and product called the Limpopo
Business Zone. The initiative seeks to align service provision to the small,
medium and micro-enterprises (SMMEs) sector in much the same way that the
economic cluster has prioritised information about opportunities in the economy
to the SMME sector which, as we all know, is responsible world-wide for much of
the job creation we see around us. I will elaborate more on this initiative
later.
Our new mission and vision are the products of intense deliberations and
decisive leadership on the matters of our provincial economy, and these are
reflective of the path that the Provincial Growth and Development Strategy
(PGDS) and various other initiatives of government are leading us to, not least
of which is our own understanding of the path we have chosen to implement the
directives at policy level. As our vision so clearly spells out, innovation has
come to the Limpopo province! We are not different for the sake of being
different, but to get better by the day! These past local elections afford us
another opportunity to touch people's lives, and change our fortunes.
We have, as a collective, proven our mettle in meeting our people's basic
needs, bridging the divide between the first and second economies and ensuring
that each sector of the economy opens itself up to include those denied, by no
accident, access to the wealth and opportunities resident therein. The improper
landscapes of the past have given way to a culture that is humane, accountable
and conscientious, and we accordingly wish to remember all those whose loss due
to the sacrifices made by their loved ones has made all this and more
possible.
The state of the provincial economy
The past year has seen much strategic change in the make-up of service
provision in the Department. The realignment of services in the Department and
creation of synergies from district level to head office has been made possible
by the determination and commitment of our officials to ensure that the
reconfiguration of the Department enables even more enhanced service delivery.
Already, our relationship with the State-Owned Entities has been given a shot
in the arm by the plans in the first phase of the Limpopo Business Zone to
synchronise services electronically, whereby service provision to entrepreneurs
will be accessible to them at the touch of a button from anywhere in the world
or province. This phase will be followed by more initiatives in this regard,
and ultimately result in our services going into "auto-pilot" mode as we all
watch the growth of the sector.
Our analysis of trends globally in the economy have a direct bearing on our
provincial performance as we are also part of the great village of economies
where time and distance have been breached and space is a mere mental
consideration. We are, both as a country and province, in the throes of an
economic upswing that has held steady over the past five years, with more
growth predicted to come. We would like to believe that this growth is not
happening by chance, but the direct result of our government's concerted
efforts and deliberate plans to create growth and share benefits among all our
people.
Throughout this process, the primary measure has been the job-creation
success, with government setting a goal of halving the 30% unemployment rate by
2015. However, there will be other yardsticks, such as the effectiveness of the
Expanded Public Works Programme; delivery of an improved micro-finance system;
acceleration in enterprise development: and a reduction in absolute inequality.
Again our commitment to these targets and goals is unwavering and
uncompromising.
Of primary importance has been our target of average yearly growth of 4,5%
from 2006 to 2009, and then acceleration to 6% from 2010 to 2015. Honourable
members will agree that these predictions are not farfetched, but show the
reality that our economy has been growing very steadily, and nowhere is this
growth more apparent than in the construction and other sectors.
The provincial economy at current or rather nominal grew from R34 343
billion in 1996 to R93 188 billion in 2004. This indicated an upward trend of
economic growth, i.e. almost three times that of 1995. The province recorded
economic growth decline from 6,5%, to 2,7% for the years 2001 and 2004
respectively.
The economic performance of Limpopo for 2004 is attributed to:
The primary industry that declined by 2% from 3,0% in 2003 to 1% in 2004
(agriculture forestry and fishing declined by 6,3% from -0,8% in 2003 to -7,1 %
in 2004: mining and quarrying declined by 1,5% from 3,4% in 2003 to 1,9% in
2004).
The tertiary industry rose by 0,2% from 2,8% in 2003 to 3,0% in 2004
(wholesale and retail trade, hotels and restaurants increased by 1,7% from 1,5%
in 2003 to 3,2% in 2004; transport, storage and communication declined by 1,6%
from 3,9% in 2003 to 2,3% in 2004; finance, real estate and business services
increased by 0,9% from 5,0% in 2003 to 5,9 in 2004; personal services declined
by 2,7% from 3,9% in 2003 to 1,2% in 2004 and general government increased by
0,4% from 1,0% in 2003 to 1,4% in 2004).
All industries registered a growth rate of 7,0%, 4,4%, 2,7% and 2,7% for the
years 2001 to 2004 respectively, which has been decreasing at an increasing
rate but levelled for the years 2003 and 2004.
The decreasing growth rates within the primary industry could be an
indication that the province has reached capacity or that there is no longer
innovation to explore other methods of growing the industry. In agriculture,
indications are that because of changes in climatic conditions and non-usage of
land because of pending land claims and new landowners diverting from crop
farming to game farming, growth could be stalled. In some instances such as
agriculture and land claims, very little can be done as these fall outside the
ambit of our control.
The scepticism about the value of continuing to build this economy on its
resources base in mining has not deterred us from doing the best we can to grow
it further. This follows on from more than a few years of struggle in the
sector, with gold output, in 2004, falling 9% to 342 tons, the lowest level
since 1931, and in mid-2005, the first industry-wide gold-miner strike since
1987.
In our maiden speech we pledged to speed up the drive towards encouraging
the relocation of the basket of services as much as possible in the mining
industry to the province, and thereby reap the benefits of local value adding.
This process is still ongoing, and we will be scheduling meetings with
stakeholders in the mining industry to further consolidate our position in this
area. As the Deputy President has said, mining is very much "the sunrise
industry" in the country even as the first half of 2005 had declined again by
12,4% to 147,9 tons, while sales had declined by 15,9% to R12,7 billion
compared to the previous year.
But there is another story, one that indicates mining to be the production
bedrock of this economy, and one that shows that nearly 30% or R90 billion of
South Africa's 2004 merchandise exports remained mining-based and, if
beneficiated minerals such as ferrochrome, steel and chemicals derived from
coal are thrown in, that figure rises to over 50%. This story is epitomised by
platinum, which, valued at R33,3 billion, was South African's largest
mineral-export earner in 2004. And platinum is not the only star, with
iron-ore, coal, manganese and a range of other sub-sectors enjoying windfall
profits on the back of higher profits and strong demand, particularly out of
China. Clearly, we have reason to bask in this sunshine industry!
As a Department, we have taken these accounts of trends in the provincial
economy very seriously, and in line with the PGDS goals and mandate of the
department, have begun driving innovation into our systems and plans to ensure
an injection of diversification and value-adding approaches to doing business
in the province. This will ensure that we are on course in revitalising the
investment environment, redirecting the budget to provide more economic
development infrastructure, human resource development towards research and
development and leadership in private sector/business and focusing more
attention to value adding to our primary sectors/produce.
Our international efforts
Together with relevant institutions, we have undertaken trips to Asia,
Europe and Southern African Development Community (SADC) countries. It has been
amazing how our potential markets and potential investors are ignorant about
opportunities and the potential inherent in our province. As a result of these
visits, the following activities emerged:
* A Limpopo based Black Economic Empowerment (BEE) company has signed an
agreement with a company from Holland. The local company, Limpopo Water
Initiative, has entered into a joint venture contract with a company called 3D
Water to the value of R258 million once completed. Through the joint venture
created, the companies will service municipalities that are battling with
wastewater treatment plants. The bulk of the wastewater plants in the province
are overloaded and are emitting polluted wastewater, posing significant risk to
our health and water systems. They have accessed funding of R8 million to run
the project at selected municipalities and a further R250million will be raised
from the World Bank.
* A follow-up visit was undertaken by German business people to confirm the
potential of our agricultural produce.
* With the assistance of Japan External Trade Organisation, our farming
producers were workshopped by Japanese experts on the requirements of the
Japanese markets with some of our agro-processors were invited to exhibit at
FOODEX 2006 in Tokyo; a number of Japanese companies have shown interest to
explore possibilities of investing in the beneficiation of our mineral
resources; we have further been invited to participate in 3 major international
exhibitions to take place in various cities in Japan and to address a seminar
of Japanese business people aimed at exposing Limpopo to potential investors.
In discussion with the Japanese tourism industry, a programme is being
developed to build sound relations with our tourism industry.
We have managed to revive our relations with two Chinese provinces of Anhui
and Henen. We are currently working out concrete details in the areas of
manufacturing and tourism.
For all this, we would like to thank the South African Foreign missions. We
do however note that there are areas which we need to attend to and with the
assistance of the Department of Foreign Affairs and South Africa Tourism we are
bound to succeed. We will provide in the ensuing pages of this speech a
detailed account of our international efforts for the province.
Economic development
Industry
We have serious challenges on the industrial development front. For this
reason allow me to share with you and the honourable house the harsh realities
of involvement of our people in the procurement system. I shall use the mining
industry to illustrate our challenge as government.
Procurement statistics for South Africa in the mining industry, as provided
by the South African Mining Preferential Procurement Forum for the period
January to December 2005, indicate that total provincial procurement by
historically disadvantaged South Africans is around R17 million or 0,23% of the
national total while total provincial procurement stood in excess of R350
million or 4,9%.
The situation is no different in other sectors of our economy. These
statistics tell us that we, as government, must do more to implement the Broad
Based Black Economic Empowerment (BBBEE) policy. Preferential procurement is
one of the instruments of promoting BEE in our economy, and as government we
must see this effectively translated into jobs and wealth creation for our
people.
Our plan is in line with the programme arising out of the State of the
Nation Address (SoNA) and Premiers State of the Province Address and the
Accelerated and Shared Growth Initiative for South Africa (AsgiSA) programme.
This plan is about the implementation of sector
Specific programme, BBBEE charters and codes
We have already and in consultation with the mining houses, developed a
monitoring tool and we will be able to report progress based on tangible
figures obtained from the mines.
A programme of ensuring involvement of new business and transforming of
exciting procurement patterns is in place. The Department is investigating the
feasibility of establishing an Industrial Supplier Park for those companies
which are prepared to transform and also relocate some of their manufacturing
plants to the province. Mining, being the largest contributor to the provincial
economy is our first port of call so that we migrate the value chain closer to
the source, and thereby create more jobs in the area of beneficiation.
Aligned to the above initiative is the issue of skills development to
support this initiative. Discussions are currently underway with different
industries to identify the scarce skills that will be needed. We are not doing
this exercise unilaterally but in consultation with the Departments of
Education, Labour and other relevant stakeholders.
The plan will also assist in the rolling-out of the Productivity Management
Programme in the entire province through capacity building, promotions and
campaigns to make ours, a productive and innovative province. This programme
was launched for the first time in the province during October 2005. We are
collaborating with the National Productivity Institute (NPI) and the main aim
of the programme is fourfold, namely:
* to instil the culture of productivity in society and economic entities
* to ensure that our industrialists adopt a world-class manufacturing and other
business practices
* to raise the productivity capabilities of SMMEs so that they also participate
in the main stream economy, and
* to prevent job loss practices through restructuring and retrenchments.
The other leg of our plan is to develop a provincial customised incentive
packages policy and strategy which aims at promoting our investment
opportunities, and making us a desirable investor destination. The aim of this
programme is to augment the national incentive packages which are currently
generic in nature, encourage potential investors, both national and
international, to our province.
True to our endeavour to promote innovation, we have in the past year in
collaboration with the Global Competitiveness Centre of Stellenbosch University
assisted Mr Alex Farmer to finalise the designs of the winch he invented. These
products will revolutionise winching in South Africa. We are at a stage where
this product is ready for production.
This project has proved our approach at tapping on the intelligence and
resourcefulness of our people to be a correct one. Using this as a base, we
will intensify our efforts to utilise indigenous knowledge to build our
economy.
Limpopo Economic Development Enterprise) (LimDEV) (
Small business financing
A total of 205 business loans with a rand value of R46,4 million were
granted during the period April 2005 to December 2005. This has resulted in the
creation of 931 jobs and maintaining 1441 jobs. The focus of this initiative is
mostly on manufacturing and specifically agro-processing and construction with
the target being historically disadvantaged individuals. In this financial year
a total of R90 million has been set aside for financing of 500 SMMEs in the
province, which will result in the creation of 1 800 jobs and maintaining of 5
400 jobs. This represents, on all counts, a 100% increase in both the loan
facility and the expected outcomes. As we mentioned earlier, LimDev will also
be looking into its lending rates to make them more competitive to the
provincial economic environment, with a view to a reduced rate.
Rural housing financing
Rural housing still remains a challenge for the majority of our people, as
banks are not willing to invest in these areas, and therefore the plight of our
people still rests with government to intervene in the provision of housing. In
our last financial year loans amounting to 221 with a value of R32,6 million
were granted to prospective house owners in the province. Through this
programme, we have provided shelter and dignity to over 1 105 people, created
651 jobs and maintained 1 626 jobs. In this financial year a total of R140
million has been budgeted to provide home loans to 100 applicants. This will
allow the accelerated provision of houses to people that cannot access housing
financial resources in the mainstream banking facilities. The process will help
create 850 jobs and in the meantime maintain 2 250 jobs in the economy.
Investment in projects
Mining
Applications for eight mining permits were submitted to the Department of
Minerals and Energy for the establishment of new projects. The majority of
shareholding in these projects is to be diluted to BEE companies and groupings
in the next year. It is expected that on commencement total dilutions to BEE
groupings will be valued at R1,5 billion.
The Hills
Prospecting for platinum in portion four of the farm Mandagshoek has
commenced and is to continue into the next financial year. At completion, R80
million will be invested in the mining operations and a total of 500 jobs will
be created.
Tameng
Prospecting has also started at Tameng mine on a farm situated at
Ga-Mphahlele. The project has already employed 150 employees and at full
operation is expected to employ 1 500 employees. Prospecting will continue in
the next coming financial year and will raise the profile of the project by an
additional R1OO million.
Atta clay
This is a joint venture with Bateman Mining which produces cat litter from
clay. The project is run and manned by rural women and is one of our flagship
projects. An expansion programme of the project has been approved by the
shareholders and is due to start in the next financial year. This will require
the shareholders to put in a total of R1OO million into the bringing it to a
total value of R200 million. Employment will increase from the current 100 to
200.
Asa metals /Dilokong mine
Implementation of a turnaround strategy has been completed and is beginning
to yield good returns. The project is a joint venture with the Chinese with
LimDev holding 40% and the Chinese 60%. The project employs a total of 1 500
employees. Plans for a third smelter are afoot and implementation is expected
in the next financial year. This smelter will bring the total value of the
project and investment to R3 billion.
Fumani gold
Plans are underway to revive the old Fumani Gold Mine in Mopani District. A
total of R120 million will be required to commission a plant to refine the
dumps in the mine which is part of the first phase of the project. The second
phase which is the actual mining will be commissioned in 2009.
Tourism
The revamped and upgraded Chuene Resort has been launched and reopened in
2005. Business has resumed and the entity has created 27 jobs.
We have finalised the "Great Limpopo Route" which is an initiative to bring
tourists into our resorts and those of neighbouring products. The concept is
aimed at complementing the marketing efforts of all stakeholders in the
industry.
Property and housing development
Construction of a 9 000m2 complex at Ga-Nkoana, the Bopedi Shopping Centre
which is a joint venture between LimDev and a local investor commenced in
October 2005. The project is expected to be completed in June. On completion,
the complex will create 900 jobs.
Property management
LimDev has a total of 655 000 m2 of lettable space in industrial, commercial
and residential properties situated all over the province. In the period under
review the average occupancy rate was 85% resulting in the maintenance of jobs
in excess of 8 000. The Thohoyandou and Giyani Shopping Centres will receive a
total revamping at a cost of R80 million. This will see the complexes getting a
new look which will make them competitive to tenants. The will also have a new
tenant mix. The programme should be completed in March 2007 and will create an
additional 250 jobs. A new mall to the value of R50 million was opened at
Mokopane. This is a model Public Private-Partnership (PPP) project with LimDev
joining forces with the private sector to develop a project. The mall employs a
total of 180 employees in the shops and has created opportunities for SMMEs to
participate in the maintenance programmes of the centre.
A 10 000 m2 shopping facility is being developed at Ga- Nkoana, Mashung. R50
million has been invested in the project. This is also a PPP project. On
completion the project will create 300 jobs both in the tenant shops and in the
upkeep programme.
The competitiveness of the market implies that every property that we build,
be accompanied by a comprehensive maintenance programme. A total of R192
million has been set aside in the next five years to ensure support of the
industrial development strategy of the province.
Public utilities - Great North Transport (GNT)
Great North Transport has a fleet of 445 busses. An application for 200
busses has been submitted to the banks for financing. GNT transports a total of
36 million passengers per annum with the majority employed in various sectors
of the economy. GNT has created 1 000 job opportunities in its operations. The
company procures goods and services to the tune of R86 million per annum with
70% going to BEE groups. The company launched "Operation Khandziya" in 2005
which was aimed at galvanising support from the public and encouraging them use
public transport.
The process of privatising the company commenced in 2005 and will be a major
highlight going into 2006/07.
Leballo Water Users Association
LimDev through its shareholding in Leballo Water Users Association was part
of the lifting of the Flag Boshielo Oam. The project is aimed at supplying
water to the mining houses and 94 villages in Sekhukhune. 500 jobs have been
created and it is expected to be complete in May 2006. A total of 400 meters
will be needed to ensure that the facility supply the 94 villages, 160 000
villagers and 7 mining houses with water. This amount will be for a
purification plant and the required network. The scheme will also facilitate
the creation of 15 000 jobs.
BBBEE involvement
All the projects we are involved in are supposed to have BBBEE involvement.
It is our objective to have all projects having BBBEE involvement during the
coming financial year. This will mean a substantial transfer of value to BBBEE
groupings and individuals. The process of getting credible BBBEE participants
have been complex one with parties sometimes having unreasonable expectations,
discounts on share premiums and unreasonable returns. We are currently
developing policy to introduce transparency and accountability and also to
assist SMMEs to participate in these projects.
Funding challenges
All things being equal, we will strive to achieve these and more projects to
uplift the quality of life of our people. However, our biggest challenge is the
raising of capital to fund all these programmes. In this regard we will be
looking into alternative means of securing financial assistance to meet these
obligations, and we are confident this will be done as we continually make ours
a viable investment destination for domestic and foreign investors.
Trade and investment promotion
Investment promotion
Africa and Middle East
Honourable Members, in her endeavour to strengthen economic ties with
countries on the African continent in general and SADC in particular, Trade and
Investment Limpopo (TIL) organised business missions to Botswana, Mozambique
and Kenya. The business mission to Mozambique resulted in a reciprocal inward
mission into Limpopo province by a high profile Mozambican Ministerial mission
which culminated in the Agriculture seminar being co-hosted by TIL and her
Mozambican counter-part, Consumer Price Index (CPI). The visit to Kenya also
resulted in one Kenya Company showing keen interest in growing and processing
Macadamia Nut visiting Limpopo province. The company visited Limpopo province
for in dept discussions and focused site visits.
Americas and the European Union (EU)
We successfully undertook an outward selling and investment recruitment
mission to South America (Argentina, Brazil and Mexico). One Ministerial
mission to the United Kingdom, German, Switzerland and the Netherlands was a
resounding success. Also, we co-ordinated a mission to the United States of
America (USA) wherein a Limpopo company, Marula Natural Products, is expecting
huge orders from the many USA companies that requested samples for testing.
Asia
TIL facilitated and was part of two ministerial missions, one to Aichi
Exhibition in Japan and the other to the People1s Republic of China.
TIL initiated and secured a deal with a Malaysian company, which has agreed
to provide the Limpopo university graduates with on-the-job training in
Malaysia, to ensure that our university graduates are provided with the
relevant skills and exposure.
In Singapore we have commenced discussions with companies that are
interested in the airport development.
Trade promotion
In November 2005 Limpopo Exporters Advisory Council (LEAC) was established
and launched as a vehicle through which all value added products from Limpopo
may be exposed to the outside world, further enhancing our participation in the
value chain process.
TIL successfully arranged for our local crafters to exhibit their wares at
exhibition platforms in Limpopo, Johannesburg and Sweden. Emerging out of these
exhibitions is that a Japanese company bought products worth R150 000. Another
company, from the USA bought samples to the tune of R50 000 and undertook to
order additional products (not samples) in future.
We have taken note of the growth of the organic food markets and promoted
and marketed locally grown organic products at various Food Exhibitions and
this resulted in the realisation of an export figure of at least R5 million in
the first six months, that is, from April to September 2005. This is a
remarkable achievement considering that is a relatively new sub-sector that TIL
started promoting less than two years ago.
The visit to Aichi World Expo in Japan referred to earlier on, resulted in
TIL and Japan External Trade Organisation (JETRO) jointly facilitating an
export oriented workshop in Tzaneen. JETRO sent a food specialist to Limpopo to
help sensitise the local industry on the intricacies of the Japanese food
market. This paves the way for our food exporters to approach the Japanese food
market from an informed position.
TIL has entered into strategic alliance partnership with Mozambique's CPI,
South African Netherlands Chamber of Commerce (SANEC) and the Manly Group (TMG)
and we were able to use these strategic alliances with much effect at Chinese
FOODEX 2006.
We successfully organised local manufacturers of value added export products
to participate in multi-sectoral exhibitions and trade fairs in South Africa
(Johannesburg, Mafikeng and Cape Town) and abroad (France) in a bid to open new
markets and expose our local businesses to external environments and practices
so that they can trade with the know-how of these competitive areas.
We facilitated local entities to participate at Association of South-East
Asian Nations (ASEN) Trade Exhibitions in Johannesburg. Upon conclusion of the
exhibition, TIL brought 60 delegates from ASEAN member countries, who visited
Limpopo province for purposes of networking with local business people. The
hosting of heads of missions provided a strategic platform for continuous
engagements with ASEAN countries.
Aftercare and business retention
TIL continued to assist in offering investors the "Aftercare and Business
Retention" service to unblock any constraints, where ever they are found. This
is a strategy to ensure that investors experience as little preventable hiccups
as possible. For example, TIL assisted Grupo Casa Saba (SAB) with the
de-bottlenecking the problems of water, as well as assisting Phalaborwa Mining
Company with water and logistic (rail) problems.
Municipal capacity building
We have continued to capacitate municipalities in investment promotion
programs through the Ireland Development Agency (IDA). This initiative serves
to ensure that both TILand Municipalities are in unison on matters of this
nature.
TIL assisted some municipalities with the redevelopment of investment
promotion brochures and it is trusted that these will be used as marketing and
promotional tools for our municipalities.
Investment in tourism
The desired growth of tourism saw us facilitating investments and
development of various estates into the Waterberg area, e.g. Royal Northlands
golf course. We are also engaged in continuous discussions with investors
interested in investment into tourism infrastructure in other districts.
Project and business development
Mining
During the 2005/06 financial year Trade and Investment Limpopo embarked on
various programmes and activities aimed at unlocking the full potential of the
mining sector in Limpopo. The following are some of the highlights:
* Local procurement: TIL spearheaded the formation of the Mining Procurement
Forum wherein six companies signed Memorandums of Understanding (MoUs)
committing to identifying goods and services whose operations can be relocated
to Limpopo.
In addition TIL has begun a process which will culminate in the formation of
the mining input supply park to exhibit the latest mining technology and
encourage mining input suppliers to relocate in Limpopo as part of both the
PGDS and other cluster priorities.
With regard to beneficiation the following initiatives, among others, were
undertaken:
* TIL signed an Memorandum of Agreement (MoU) with Mintek wherein Mintek's main
responsibility will be to undertake technical investigations and to determine
the potential viability for each project identified by the parties as a project
for implementation, as well as assisting with the identification of potential
investors for the undertaking of formal feasibility studies for potentially
viable projects.
* Kumba Resources remains committed to the expansion of the Grootgeluk Mine
which will also lead to the production of Balanced Technology Extended (BTX)
products and additional electricity generation by Eskom. To this end, Kumba and
the TIL Steering Committee decided to wait for the results of the Halozyme
Therapeutics, Inc (HTI) Pilot Project in China which are expected in
2007.
* PPC Cement Company has committed itself to expansion of a R450 million cement
plant to an investment of R1,1 billion as a three year programme in Dwaalboom.
Stakeholder's consultation workshops were held with the community and
municipality in this regard.
It is expected that as these projects reach their full potential,
significant improvements in the value chain of both upstream and downstream
investments will be realised.
Agriculture
Pursuant to our plan to enhance the full potential of the agricultural
sector of the province, we were involved in a number of programmes and
facilitated projects. Among the many initiatives the following are some of the
highlights:
* With regard to the Macadamia project, 74 hectares of land have been
cultivated, and an additional 1 700 hectares have been pledged. Planting has
started at Shirley and HaTshikundamalema.
* TIL is facilitating the land lease, shareholders agreement and incentives for
the molt project in Hoedspruit, International investors have committed
themselves to equity funding.
* A pilot project at Tompi Seleka by Council for Scientific and Industrial
Research (CSIR) and Agricultural Research Council (ARC) with regard to the
production of bio-diesel from soya beans and sunflower. To this end TIL is
involved in mobilising the farmers as well as the stakeholders.
* TIL is conducting a business due diligence on the properties of willing
sellers on the Mokgopa and Moletele land claims, and will assist in developing
sustainable resolution models.
Manufacturing and services
A very successful Retail indaba which was aimed at promoting the development
of retail centres and contributing towards economic activity as well as job
creation in those areas was organised. Partnerships with local business people
are encouraged in those areas. The new shopping centre at Ga-Thoka, on the
outskirts of Mankweng Township (at Turfloop) is one of the promising outcomes
from its Retail indaba.
* facilitated the expansion of the Matoks shopping complex, otherwise known
as Botlokwa Plaza
* facilitating various projects in the manufacturing of clothing and colour
steel sheet factory.
Investment tracking and flows
Honourable members, a successful investment tracking Lekgotla was held
during the year under review. The purpose of this was to present the results of
TIL's investment tracking programme covering investment capital flows in to the
province as well as exports that went out of the province.
The findings of this programme indicated that in 2004 fixed capital
investment was estimated at R4,1 billion, whereas exports amounted to R7,2
billion.
Exports split per district were as follows:
Capricorn: R836 million
Mopani: R2,7 billion
Sekhukhune: R2,23 billion
Waterberg: R1,3 billion
Vhembe: R105 million
Bohlabela: R2,6 million
Mopani, Sekhukhune and Waterberg district areas contributed significantly to
exports as a result of the mining activities in their respected areas.
These findings are helpful in assessing some of the economic movements
happening in the province. Various banking institutions and municipalities
participated in this event.
Image building and generic marketing
Investment destinations such as New York, London and Tokyo have all become
synonymous with successful brands. Noting that the province has recently
repositioned its brand, TIL, in support of this drive, was engaged in various
marketing activities which significantly enhanced the image of Limpopo as an
investment location.
One of these was the successful hosting of the Limpopo Classic Golf
tournament featuring the world-renowned Retief Goosen. This tournament
attracted many high profile guests in the political, social and business
spheres.
A second successful golf day was held in Johannesburg (Gauteng) bringing
together different stakeholders well as developing networks. Limpopo
opportunities were exposed in this event. We also continued to maintain direct
and indirect support of strategic events that promoted Limpopo.
Among the many programmes and key activities that TIL will be engaged in,
the following will be some of the highlight in the coming financial year:
* Waterberg Coal - production of energy from coal
* chrome - production of chrome chemicals
. Mining input Supply Park - engaging mining housing to relocate some
operations to Limpopo
* Polokwane Jewellery Hub - manufacturing of jewellery products from precious
metals, copper, stones, glass emeralds and ivory
* Vhembe and Waterberg integrated beef - establishment of feedlot, cold
storages, abattoirs and distribution networks
* marketing of unutilised factories with the aim of 100% occupation by
investors
* investment promotion in countries of mutual interest
* marketing products of art, craft and jewellery (promoting Limpopo design
centres)
* working towards implementation of clusters identified in the value chain
analysis.
Co-ordination of financial and non financial support
It is critical that SMMEs are prepared through the non-financial support
stream to ensure that they are able to effectively utilise the financial
support once obtained and so forth. This is important to effectively equip
these entities with the skills required to manage and run their finances
successfully.
Limpopo Manufacturing Advisory Centre has managed to work with 65 new small
businesses in manufacturing creating 181 new jobs and sustaining 239 this year.
The organisation has assisted small manufacturers to sustain 4 252 jobs to
date.
Following an unprecedented large scale injection into co-operatives
development by this Department in the past three years, co-operative in various
sectors were assisted with establishment or have been resuscitated. Our main
thrust on co-operatives development has been on worker co-operatives and
thereby creating jobs, skills accumulation and wealth creation.
To mention just a few:
* In the goat industry, four co-operatives have been established. Putukwane
Goat Milk Cooperatives in Marowe (Capricorn District) with 33 members at a cost
of R6 million, Lepelle disabled co-operative (goat meat) from Matlala,
Sekhukhune District, with 134 disabled persons (members) at a cost of R1,5
million
* Bakone Bakopane, from Steiloop, in Waterberg District, with 21 members at a
cost of R1 500 000 and the Core Estate at Mokgophong, (Waterberg District),
with 11 members at R3 million.
These projects will see an increase in the economy through the red meat
cluster approach as guided by the PGDS.
The projects are on extensive goat breeding and emerging farmers will be
included on the intensive goat breeding method for this year. The project is
geared towards availing 1 million goats per year, in the next five years, in
order to access and sustain the Eastern Market. The creation of an abattoir
which meets the stiff European standards is in the next phase of this
project.
In tourism we note the following:
* Sasavona Guest House in Lulekani (Mopani District) is at the final stages of
construction and it has 11 members at a cost of R3 million
* in small-scale mining, Mukula Stone Crushers in Vhembe District is growing
steadily with 24 members at a cost of R2,5 million.
* Tshabang Tlala Babirwa Pebbles (Waterberg District) owned by 20 women, has
been assisted to the tune of R1 million.
We also launched the Champaign Chicken Abattoir Co-operative in Bohlabela
District, and the co-operative managed to get contracts to supply chicken
requisites to local supermarkets and the Kruger National Park.
Municipalities have been our most valued partners in the co-operatives
development programmes by providing land funding for most of our
cooperatives.
This kind of integrated delivery of services must be applauded. In trying to
address the skills gaps, the Department launched a certificate course in
partnership with the Turfloop Graduate School of Leadership at the University
of Limpopo on co-operatives development as a pilot project. A total of 60
people attended the course and another one will be done in the middle of May
2006.
This financial year, we will be revisiting our strategy for supporting
co-operatives to ensure that the resources we plough into communities have a
bigger impact than at present. We are looking at establishing co-operatives in
the construction industry around Capricorn and spread to other Districts, a
fresh produce market in the Vhembe area and processing plant as well as in
mining around Sekhukhune. We will however continue to support the smaller
co-operatives projects, and ensure that co-operatives are not eternally
dependent on government.
Enterprise development
In 2005 the Department launched the Limpopo Business Zone as an initiative
to integrate small business development service and create an information and
resources base for SMMEs in the province. Our aim is to create a one-stop
centre where our people will get access to all the information they need in
order to maximise their information needs and to get all the service needed to
start and grow their businesses.
Aligned also to this is our plan of business development toolkits,
essentially an information package about what to do and who to go to when you
need a particular service in the Department. It is our intention that these
toolkits will also serve to allow as much information to be shared in the
public domain as possible. The Provincial SMMEs Conference and EXPO we held
last year did not only empower our SMMEs with information and best practices
but also an opportunity for 146 of them to showcase their products. Assistance
is also being given for them to do the same at local and international
exhibitions.
The draft Provincial SMMEs strategy has also been completed. Amongst others
it will seek to create or involve SMMEs in the value chain of all industries
for example in agriculture we will not just be focusing on the development of
small farmers but also look in to areas such as warehousing, transportation,
marketing of fresh produce and the input supply industry.
As a contribution towards the development of the much neglected survivalist
and informal sector, our Department has embarked on a project of erecting
market stalls for informal traders, in 12 1ocal municipalities. This was
preceded by a vigorous consultation process with all stakeholders. This will
allow them to grow and also contribute to the general environmental upkeep of
the municipalities through better waste management and refuse collection.
Honourable Premier, we have always strived to ensure that the youth have a
stake in all our programs. This year, we are reaching another milestone in this
regard by initiating, in collaboration with our parastatals, the first ever
Limpopo Youth Biz Competition that will create five new sector based youth
businesses in the province. In this respect we have made available R1 000 000
in prize monies to the winning entrants through a district based system of
evaluations.
This competition, the first of its kind in the province, will see us testing
the business acumen of our young people as we respond to their calls for more
support and assistance in meeting their entrepreneurial needs, and as we sit in
this august house, consultations are ongoing and winners will be announced at
an awards ceremony in June 2006. This competition will not just test the young
people's hunger for access into the economy but will drive growth in the
identified categories.
The Limpopo Business Support Agency (LlBSA) has continued in its effort to
empower small businesses by training 897 small businesses and 314 co-operatives
members in various business management training programmes. It is also worth
mentioning that the institution has assisted 28 enterprises to get R7 52 720
from several institutions.
One of the areas challenging the institution was its perceived low
visibility among its primary stakeholders. LlBSA has accelerated its awareness
through a vigorous communication and marketing campaign to bring its services
to the people. The benefits of this drive are evident in the amount of interest
shown in their services to date. In order to reach out to outlying areas of the
province, LlBSA opened new centres in Polokwane, Aganang, Fetakgomo and
Bela-Bela, raising its presence in municipalities to a total of ten offices
throughout Limpopo. In the next financial year, a further five service centres
will be opened in Tzaneen, Makhado, Musina and Motjatjiskloof.
Business regulations
Liquor affairs
This division processes liquor applications and ensure that license holders
conduct their trade in a responsible manner and in compliance with the
conditions of the license. To this end, there are 3 311 existing licensed
liquor outlets in the province.
In the administration of the liquor industry in the province, the Department
has encountered challenges of liquor being sold without requisite licenses or
being sold in contravention of conditions of license. The Department has
adopted the provincial conditions of licenses and has adopted the provincial
liquor policy and is in the process of drafting the Liquor Bill.
This Bill will seek to address the challenges faced by the Department and
ensure that liquor licenses are issued in an equitable and a sustainable manner
to ensure economic growth.
Business registration
We have been in the unfortunate position of having to deal with five pieces
of legislation purporting to administer business regulation. This legislation
has been inherited from the erstwhile TBVC state and self-governing
territories. This has not deterred us from ensuring that the province came up
with its own legal framework to govern business regulation.
Honourable members will know that one of the key principles of the Business
Registration Act is to assign the function to register businesses at local
government level. However, the Act requires that our office should enter into
an agreement with each Municipal Council which will provide the performance of
the function. In order to give effect to the provisions of the Act the
Department has done the following:
* all local and district municipalities were briefed on the provisions of the
Act and draft regulations
* a draft Agency agreement has been drafted and discussed with South African
Local Government Association (SALGA) and the Department of Local
Government
* the Department has identified operational infrastructure and budgetary
requirements to enable Municipalities to establish business registration.
The Department together with the Department of Local Government has
established a task team to fast track the process of implementing the Limpopo
Business Registration Act. We will present in the near future details of the
implementation plan with clear timeframes once these have been finalised. We
will also assist both established and new businesses with proper registration
and also involve other stakeholders such as the South African Revenue Service
and Department of Labour this year.
Consumer protection
The age of consumerism has dawned on all of us, and already much research
into the phenomenon has yielded some starting results, from buying patterns to
who actually makes the buying decisions. In all of these, the consumer still
has to be protected, and the province has made a noteworthy effort of
establishing its own consumer court. This court will adjudicate disputes and
finalise those where the Department was unable to mediate successfully.
This court will ensure that our people, rich and poor, can find redress in
an environment where the costs of legal representation are prohibitive for the
less fortunate. Another aspect of this drive will be our campaign to create a
culture of saving among our people.
Environment
Most wetlands are threatened today because of intensive agricultural
activities and changes in the hydrological regime. It is therefore imperative
that in order to ensure the evolution of all species, care be taken to
safeguard these natural "filtration systems".
We are pleased to inform the house that the province hosted the National
Wetlands Symposium (now Indaba) where it was resolved that the province has set
a national standard in wetland protection, and all credit goes to all our
officials whose dedication and commitment has secure us this worthy credit. Our
efforts in this regard have also been consistent with the international
approach as we took the day and its message to our communities to ensure that
we empower them with the tools necessary to protect their natural environment
from degradation through education, communication and public awareness about
these naturally sensitive areas. It gives us pleasure to inform the Honourable
house that we have successfully met these objectives, and our people will
continue to gain the presence of these areas, protect them from harm and
pollution.
The Department, together with the Departments of Environmental Affairs and
Tourism, Agriculture and Mondi Paper, is in the process of developing a wetland
inventory which will collect all data about wetlands in the province. The
information gathered once the process is completed will assist in planning and
facilitating sustainable management of the mapped wetlands.
Similarly, as a Department we have started on the path to making ours a
green province to counter the effects of soil erosion, desertification and
deforestation. We will be focusing on indigenous trees such as morula, vukanyi,
mufula. Last year alone, we distributed seven thousand trees in the province in
all districts to encourage a green culture among our people. As we all know,
poverty and the need for cheap energy among most of our rural people is the
biggest cause of tree loss and the resultant lack of vegetation as the
protective cover offered by trees is eroded.
The integrated reforestation plan is to be made available to department
staff for input towards alignment with other programs and activities. A
strategy will be developed and implemented during 2006 to ensure relevant,
efficient and effective determination and involvement of stakeholders in an
integrated manner. This being the first to its kind in the province and country
it is hoped to serve as a pilot and learning curve towards the greening of the
Limpopo province as a whole. The launch of the Limpopo Mukumbi industry on 4
March 2006 will now further strengthen the project and even determine how the
marula species will be used in the reforestation process within the district.
The project will create several jobs and SMMEs in the areas of indigenous
plants nurseries, medicinal plants nurseries, forestry, agriculture and
tourism, to mention but a few.
The project to green the province is an ongoing activity, and our
partnership with municipalities will be instrumental in turning the tide
against desertification of our province. In this financial year, the Sekhukhune
district will benefit from a R5 million financial injection from the Department
of Environmental Affairs and Tourism to deal with re-foresting the district as
it is hardest hit by loss of vegetation and trees. Our Department has also
emerged from a conference on communicating environmental compliance together
with our communications directorate and these session will further add to our
resolve to counter pollution and the legislation in this arena has been
finalised.
Compliance and monitoring will henceforth form the pillars of our ability to
deal with reckless pollution of our air, land and water resources, and will
further enhance our ability to deal with offenders. I must also indicate that
greening is not just about planting trees, and all other activities that my
Department will be engaging in, and in concert with other Departments and
municipalities, we will also pay attention to increasing this intervention.
Limpopo province finished the first phase of the State of the Environment
Report which was based on preliminary findings of the environmental study. The
State of the Environment Report is recognised as a good source of information
on the environment. This information will be used to facilitate the preparation
of Strategic Environmental Assessments to verify information submitted through
environmental impact assessments and to identify environmentally sensitive
areas in the province. Our plan is to systematically deal with each challenge
presented in the report and to ensure that we fully cover the broad spectrum of
issues covered therein.
The report will also assist in the development of a land use management
policy. Also included in the report will be the assessment and management plan
of the Nylsvlei floodplain which has been designated as a Ramsar site in 1988.
The area serves as a breeding ground for eight South African Red-listed water
birds, and is the only site in South Africa which is a recorded locality for
wild rice.
Limpopo province is rich in cultural heritage, with many historical,
archaeological, culture and natural heritage sites. Some of the more well-known
sites include the Makapans valley, Mapungubwe World Heritage Site, the garden
of Modjadji the Rain Queen which contains the Modjadji cycad (Encephalartos
transvenosus) and the San paintings of the Waterberg and Soutpansberg. In a
predominantly rural province such as Limpopo, the focus on economic development
is likely to increase significantly the near future, presenting potential
trade-offs between economic development options and the beauty of the region.
The preservation and management of these sites should form a critical part of
our environmental management plan.
Environmental issues have taken centre stage in South Africa. The fact that
environmental justice must be promoted and protected calls for legislative
framework, policies and procedures which enhance this huge obligation.
It is with this in mind that our Department continues to enforce and develop
policies which will minimise negative environmental impact, promote
conservation of natural resources, ensure compliance to environmental
legislation and regulate the hunting activities in Limpopo. We will do this in
accordance with agreed protocols. The collaboration with other developing
countries will contribute towards building the province's enforcement
capacities.
The Department has joined hands with the Peace Parks Foundation in the
establishment of the Hans Hoheisen Research Station. This biodiversity research
centre is progressing well. At the moment we have all together twenty projects
for local and international researchers. We are convinced that our students and
all other people interested in research on Biodiversity issues including our
neighbouring countries will benefit a lot from the centre. The focus of the
centre of excellence will be on capacity building of local communities and
scientists on the development of tools and technologies needed to improve
knowledge, management of wild life resources and to promote research,
integration and innovation from indigenous knowledge. An amount of R2,6 million
has been budgeted to realise the objectives of the centre.
South Africa hosted the climate change conference and Limpopo was one of the
major participants. The conference, which was a huge success from the
environment perspective, was in line with the Kyoto Protocol on climate
change.
The function of permitting on waste disposal sites has been moved from the
Department of Water Affairs and Forestry to the national Department of
Environmental Affairs and Tourism (DEAT). This development implies that the
waste disposal function needs to be managed in line with the environmental
impact assessments currently being done by provinces. It should however be
borne in mind that hazardous waste remains a challenge in our province,
especially wastes from hospitals and industry. The Department will therefore
ensure that those dealing with such waste are well monitored in order to
protect the public.
In terms of environmental impact assessments, a total of 512 cities were
visited and five of the visited sites had to be stopped and forced to comply
with environmental requirements. A total of 172 records of decisions were
issued. An additional 143 exemptions (that is activities which do not require
Environmental Impact Assessments) were approved. Of all decisions made, only
two (2) appeals were received.
The Department is highly concerned about the illegal dumping in the
municipalities. In that regard we are in the process of developing the
provincial pollution and waste management standards and regulations as part of
our ongoing campaign of "keep the province clean". We are delighted by the
cooperation and support we continue to get from all our stakeholders.
The development of general waste management strategies has been completed in
four districts and their respective local municipalities. As part of the
implementation process the development of permitted disposal sites has started
in some districts, while the identification of municipal waste management
priorities and needs is in the process in other districts. As a matter of
priority the Department has made budget provision for the implementation of
these plans especially the rehabilitation of illegal dumping sites and the
establishment of proper waste management facilities.
The provincial hazardous waste management plan was launched in April 2005
and the first phase of its implementation has been provided for the 2006/07
budget. In line with the air quality management act, the Department is
coordinating the appointment of air quality officers for the district and local
municipalities in the province. The objective is to build capacity in this
regard and to ensure the development of proper monitoring systems.
This year we will start with a programme to monitor the level of toxicity
and pollution in our rivers, dams and boreholes. This will help us to ensure
that we detect in advance any possible prevalence of water-borne diseases and
will serve as an early warning system for the province. As we indicated
earlier, this plan is already embraced by the private sector in the form of the
joint venture we catalysed between a Limpopo based company and its European
counterpart.
During 2005 an integrated implementation strategy for the reforestation of
the area was completed with a budget R955 000.
Hunting
The hunting industry is currently undergoing rapid transformation. There is
consensus that more people of colour should and will be encouraged to
participate in the industry. We have also noted that there is still
minimal-involvement of blacks in the industry. To date the hunting industry has
established a fund which is to be used for the training of professional
hunters.
The total number of species hunted is 12 559 and the most hunted species are
impalas, warthog, kudu, blue wildebeest and blesbok. The top five countries
visited our province are USA with 1 040 clients, Spain with 302 clients,
Denmark 188 clients, Germany with 93 clients and Norway with 57 clients.
The Department has also developed directives for the regulation of
taxidermists, game translocators, damage causing animals and rehabilitation
centres. All stakeholders have these directives as functioning documents.
Tourism
The tourism sector is experiencing interesting challenges. This includes the
fact that most of our tourism is largely dependant on the African market.
Taking advantage of the relations we are beginning to build with Asian
countries particularly Japan and China, we will increase our marketing in this
area.
To increase our market share in Asia and taking into account the
co-operations we have built with neighbouring countries, we will have to
redesign the routes and tourism products and attend to issues raised by our
potential clients during the past visits to these countries.
We will continue to assist more and more blacks gain access into the
industry. In the past year, we assisted 40 entrants in marketing and exhibition
events. 54 tourist guides are being trained in translation of French and German
as part of preparation for 2010. We would like this year to begin training in
Asian and European languages. In this endeavour we would like to elicit the
partnership and participation in the tourism industry.
Although our commercialisation programme is moving slow due to the
unconcluded process of land restitution, this process will be aiming at
bringing more blacks and communities to the upper end of the tourism
market.
All this will require significant reorganisation of our focus, priorities
and institutions. The Tourism and Parks Board cannot meet these challenges
unless properly reorganised. This will require in some instances amendment of
the Tourism and Parks Board Act. The Limpopo Off-road Challenge which was
conducted country wide has been a resounding success in profiling our province.
We would like to thank our sponsors especially Ford Motor Corporation for the
assistance they gave us.
Honourable members, the Marula festival which we are co-hosting with the
Department of Sports, Arts and Culture will be developed into a brand of its
own and has a major potential in eco-tourism. Our game loan scheme will this
year be given impetus to ensure that we introduce game in places closer to
communities. With regard to the promotion of leisure, entertainment, tourism
and the creation of job opportunities, the Gambling Board licensed two Casinos
and continues to look at other ways to bring economic opportunities to our
people. In line with their bid commitments, gambling operators have created
four hundred and twenty five direct and three hundred and thirty five indirect
job opportunities. With regard to the empowerment of previously disadvantaged
individuals and SMMEs, over twelve million rand was used in the previous
financial year to procure goods and services from local companies.
As the licensing of gambling operations serves, among others, to promote
tourism within the province, it is pleasing to note that in the past year
alone, an estimated one million, two hundred thousand people visited the
casinos and the recreational facilities on offer. The third and last license,
which will be awarded in future, is destined for the Sekhukhune district where
the benefits of jobs and procurement of goods and services will accrue to our
people in that nodal point. In the past year, we have also advertised licenses
for the Limited Payout Machines (LPMs) and made one award, and in the past two
weeks another license was advertised for the LPMs.
With the promulgation of the new National Gambling Act, it has become
imperative for provinces to revisit their Acts in order to amend them
accordingly in line with the national stipulations. Currently the Board has
felt it prudent to draft a new Bill altogether, and this will, be brought to
the Legislature within the year.
Financial management
Within our Department there is an ongoing improvement of Internal control
procedures and observing of the provisions of Public Finance Management Act
(PFMA) and Treasury Regulations to ensure sound, effective and efficient
financial management during the financial year ending 31 March 2006. This has
been evident by the minimal complaints received from the public as a result of
late payments of accounts. Strict controls are in place to ensure that
financial obligations are made within the prescribed period by the Act.
There has been an improvement in the area of asset management, where all the
assets belonging to the department were physically verified and the asset
register reconciled with the general ledger.
Supply chain management unit has been successfully established in the office
of the Chief Financial Officer and there are continuous improvements of the
procurement system to ensure that all the requirements of the Act and of the
Constitution of South Africa are met. The departmental Risk Management Strategy
has been partially implemented and will be finalize during 2006/07 financial
year.
Institutional capacity
For us to meet these challenges, it will require that we strengthen our
capacity and capabilities. This will include paying close attention to the
improvement of working conditions of our personnel especially at lower ranks,
the re-organisation and reorientation of our public entities and proper
alignment of functions and responsibilities, employment of people with relevant
skills and continuous training of the current staff. The Batho Pele Change
Management Programme has been introduced and will be rolled out and shall have
reached 70% of our employees in the Department by the end of this financial
year.
Our Employment Equity Plan has also been developed and adopted, which will
redress inequality in our workplace and ensure representativity in the
workforce. The Department also observed the National calendar on Gender as well
as HIV/Aids Day. In this regard we have launched Voluntary Counselling and
Testing as one of the recommendations from the Knowledge Attitudes Perceptions
Survey (KAP). We all agree that every effort must be taken to create a
consistent and informed workforce in terms of HIV/Aids interventions, and this
effort will ensure that we are not unduly robbed of our talent by this
scourge.
2006/07 Budget:
The Department has been allocated an amount of R675 038 million for the 2006/07
financial year. The budget has been appropriated among the four programmes as
follows:
Administration: R250 294 000
Economic Planning: R7 100 000
Economic Development: R191 735 000
Environment and Tourism: R225 909 000
Total: R675 038 000
Economic Development, Environment and Tourism have six parastatals and their
allocation is included in the budget of R675 038.
Parastatal
Limpopo Development Corporation (LlMDEV): R80 000 000
Limpopo Investment Initiative (TIL): R30 000 000
Limpopo Tourism and Parks Board-(LTPB): R92 000 000
Limpopo Casino and Gambling Board: R15 000 000
Limpopo Support Agency (LiBSA): R41 000 000
Limpopo Manufacturing Advisory Centre (LiMAC): R2 500 000
Total: R260 500 000
Conclusion
Mr Speaker, no account of our success can be complete without acknowledging
the people of our province and country for the unflinching belief in our
leadership. Management, as we all know, is about doing the things right whilst
leadership, is about doing the right things. I mention this in strict terms
because that is exactly what our leadership continues to do for all our people,
and this assertion acknowledges the role that our systems and processes have
done in the great stride to improve the quality of life of our people.
We have, singularly and in concert with them, made our pact much stronger
for these issues raised herein and elsewhere in our interaction with our
stakeholders, and it is for this reason that we see the age of hope as more
than an eloquent undertaking, but a statement of fact about our intentions to
give to future generations, a legacy of hope and development and restoration of
humanity, united in our diversity.
I have conducted visits to all our districts with our parastatals to realise
the objectives of the contract we have signed with our people. They have not
only highlighted the frustrations they encounter when they want to have access
to the services we render, but also made recommendations as to how best can we
address those challenges. Over and above people have confidence in the
government they have elected as demonstrated in the recent local government
elections we have just gone through. Special thanks go to our staff and the
Acting Head of Department (HOD), Mr Shingange, who has been instrumental in
driving organisational systems and cultural change in the organisation.
I thank you.
Issued by: Department of Economic Development, Environment and Tourism,
Limpopo Provincial Government
4 April 2006
