The 2015/16 Budget Speech by Mr SC Sekoati, Limpopo MEC for Economic Development, Environment and Tourism, Limpopo Provincial Legislature
Honourable Speaker; Honourable Deputy Speaker;
Honourable Premier Stan Mathabatha; Colleagues in the Executive Council; Chairperson of the Portfolio Committee; Esteemed Members of this august House; Executive Mayors and Mayors;
Chairperson of the Limpopo House of Traditional Leaders and other Traditional Leaders; Acting Director-General and Heads of Departments;
Chairpersons and Board Members of State-Owned Entities; CEOs of our Parastatals;
Leaders from various business sectors of our society; Fellow citizens of this great Province;
A very good morning to you all / Avuxeni / Ndi Matsheloni Madam Speaker,
We are gathered once again in this esteemed House of the Limpopo Province to reflect on how we have fared in the past year as the Department of Economic Development, Environment and Tourism in realizing our obligations of improving the living conditions of our people and creating a better life for all.
We do this by promoting and stimulating provincial economic growth, and forging ahead with our plans to sustain the economy through our mandate of economic development, sound environmental management and promoting the province as a tourist destination.
What binds us as people is our unshakable allegiance to the ideals embodied in the Freedom Charter and our democratic Constitution.
The year 2015 marks the 60th anniversary of the adoption of the Freedom Charter, which is a vision for a united, non-racial and democratic South Africa. As the President, Jacob Zuma encouraged during his 2015 State of the Nation Address, we need to go the extra mile in building a united, democratic, non-sexist and prosperous South Africa.
21 years after the demise of apartheid, the Freedom Charter still continues to inspire and unite us as South Africans.
Limpopo Development Plan
Madam Speaker,
Exactly 10 months ago, mandated by the Honourable Premier and the people of Limpopo, through the African National Congress, we outlined the objectives of the 2014-2020 Medium Term Policy Framework, which is focused on growing the provincial economy, empowering women and youth, on supporting small businesses and co-operatives and improving the lives of the people of the province for the better. The President of the Republic recently outlined his priority 9 Point Plan to ignite economic growth and job creation, which, amongst others, include the following:
- Advancing beneficiation of our mineral wealth;
- More effective implementation of a higher impact Industrial Policy Action Plan;
- Encouraging private sector investment;
- Unlocking the potential of small, medium and micro enterprises and co-operatives, as well as township and rural enterprises; and
- State reform and boosting the role of state-owned companies, as well as the ICT infrastructure or broadband roll-out.
- In line with the President's directive, our provincial government, under the sterling leadership of Honourable Premier, Stan Mathabatha, has approved the Limpopo Development Plan (LDP) for implementation to stimulate provincial economic growth and job creation.
We will implement the LDP, as it is informed by the National Development Plan (NDP), which calls for “an inclusive economic growth path aimed at addressing poverty, inequality and unemployment, while at the same time, seeking to build a capable, career-oriented and professional public service. The ANC-led government has made a conscious decision that South Africa should become a capable and a democratic developmental state. Chapter 14 of the NDP, as a strategic national development framework for 2013-2030, states and I quote “we need to move towards a state that is more capable, more professional and more responsive to the needs of its citizens”.
The Limpopo Development Plan reflects our shared vision and strategic imperatives towards poverty reduction, elimination of social inequality and the creation of sustainable jobs in Limpopo.
To reiterate, key targets and pillars underpinning the Limpopo Development Plan include the following:
- Attaining an economic growth rate of 3%;
- Creating 429 000 jobs;
- Increasing the Geographic Gross Product contribution to the national GDP from 7.5% in 2014 to 9% over the MTEF period;
- Reducing the unemployment rate from 16.9% in 2014 to 14% starting this year; and
- Reducing inequality in terms of Gini-Coefficient from 0.61 in 2014 to 0.50
Economic Growth and Outlook
Madam Speaker,
The National Development Plan, and subsequently the Limpopo Development Plan and the Industrial Policy Action Plan identified industrialization as the strategic direction for South Africa. To be precise, the Limpopo Development Plan puts greater focus on economic development and transformation, with an emphasis on mining, agriculture, tourism and manufacturing, as well as support to small businesses and co-operatives. However, we will make the manufacturing sector an anchor of driving the industrialization process.
Pursuant to this policy directive, the department has initiated several strategic programmes aimed at industrializing the province. The Limpopo Province of 2015, going forward, will be much better place than it was in the period before 1994. Undoubtedly, significant progress has been made over the past 21 years of democracy, to grow and transform the structure of the provincial economy in order to improve the living conditions of our people. In 2013, the Limpopo Province's economy grew by 2.4% as compared to 1.1% in 2012, slightly above the national growth rate of 2.2%. This average performance in terms of economic growth can be attributed to the excellent growth rate in the mining and trade industries in the province, which grew by 5.4% in 2013.
Madam Speaker,
It is important to acknowledge that these socio-economic achievements were recorded within a constrained environment of global economic downturn. And of course, the global economy remains somewhat fragile, still hampered by the after-effects of the global financial crisis. Nevertheless, an increasing economic growth and an increasing employment level in Limpopo suggest that the provincial government is more likely to attain some of its policy objectives such as poverty eradication through employment.
Madam Speaker,
We project to grow the provincial economy by 3% in 2015/16 in line with the South African Reserve Bank's projections of 3.3% this year. Our revised growth projection (that is slightly below the International Monetary Fund predictions) forecasts the global economy to grow by 3.6% in 2015 and 4.1% in 2016.
Statistics SA indicates that the mining industry contributed 26% of the share to provincial gross domestic product (GDP) growth in 2013, while finance and general government services also contributed 11.7% and 17.6% respectively. We all acknowledge that mining, trade and agriculture remain the engines of economic growth for the province. More so, the recent Labour Force Survey released by Statistics South Africa attests that Limpopo created 67 000 jobs in 2014, second nationally after the North West province.
Madam Speaker and Honourable Members,
The R1.16 billion budget we are presenting today is geared towards funding the following key priorities as directed by the LDP:
- Industrialization agenda in the province;
- Crowding in productive investments to grow the economy;
- Support to small and medium sized businesses and cooperatives;
- Youth development and women empowerment programmes;
- ICT and broadband infrastructure;
- Tourism development and growth;
- Creation of a pool of skilled people for the local economy;
- Local economic development support to municipalities;
- Biological diversity and natural resource management;
- Environmental impact management, compliance and enforcement;
- Integrated pollution and waste management; and
- Business regulation and governance.
Industrialization Agenda in the Province
Madam Speaker and Honourable Members,
The National Industrial Policy Action Plan 2 and LDP place industrialization at the center of the growth agenda of our province. I am happy to report back to this House that we successfully hosted the first ever Mining Roundtable in August 2014 under the theme “Limpopo's Minerals for a Broad-Based Industrialization Agenda”. This event was hosted based on the pronouncement by the Honourable Premier in his State of the Province Address
last year. The aim of the roundtable was, together with mining stakeholders, to forge ahead with plans on how best to industrialize the province on the basis of its mineral wealth. The event was attended by 250 delegates from the mining sector, academia, traditional leaders and NGOs, as well as the government and agricultural sectors.
The resolutions taken during the roundtable are being implemented by a multi-stakeholder task team made up of all spheres of government and mining industry stakeholders. The key action plans emanating from the roundtable include: (1) developing a Provincial Supplier Development Programme, (2) developing a Mining Community Development Programme, (3) implementing skills development beyond the mining era, (4) developing and implementing the Provincial Industrialization Programme, and (5) ensuring that 20% of procurement by mines is ring-fenced to SMMEs and co-operatives in our province. A feedback meeting on progress with implementing the resolutions will be held in October this year.
It was at this roundtable engagement where it was highlighted that the country's mining sector's strategic line-up is changing in Limpopo's favour. Madam Speaker, despite the strained commodities markets, as the province, we have every reason to celebrate. I will single out about three major investments in the mining sector in Limpopo:
The first is a R9.3 billion investment for Phalaborwa Copper (Pty) Ltd for the extension of the life of the mine to 2033 by a group of shareholders composed of a Chinese consortium, which includes global steel manufacturer, HBIS, and South Africa's IDC (Industrial Development Corporation). This will definitely change the lives of the local community of Ba-Phalaborwa and the province as a whole. Phalaborwa Copper is also known for its vermiculite deposits and has over half a century old magnetite stockpile.
At some stage, we were contemplating the lifespan of mining development coming to an end in Phalaborwa, but today, we speak about the dawn of mining, not only in Phalaborwa but also in Mokopane, where Platreef Resources is investing USD 1.6 billion. The third investment is the extension of the De Beers diamond mine in Musina with an investment of R20 billion.
The success of these projects is dependent on the collaboration of all stakeholders. “Ditau tsa hloka seboka, di shitwa ke nare e hlotsa”.
There has never been a time when this idiom was more relevant in our province. We need to work side by side to defeat the challenges of poverty, unemployment and inequality.
Madam Speaker,
We know that the situation in mining communities in our province, and elsewhere, can at times be volatile. We believe that if targeted programmes around the mining industry are developed and implemented, they can assist to ameliorate the volatile situations in mining communities and allow the industry to contribute towards growth and employment. Limpopo is a partner, along with other mining provinces, to the nationally established Mining Crime Combating Forum, which is meant to deal specifically with volatile situations that sometimes erupt in the mining sector.
During his State of the Nation Address this year, the President announced a support programme through the National Upgrading Support Programme of R 2, 1 billion for distressed mining communities. Through this programme, distressed mining towns and communities in our province will continue to benefit immensely. To date, an integrated infrastructure plan was developed for the Sekhukhune district as one of the distressed mining districts in the province.
Madam Speaker,
As the province, we are inspired by the work undertaken by Exxaro on how best to mine the coal resources in Lephalale using the new technology of Underground Coal Gasification (UCG). This project is at a conceptualization phase and is about to be commercialized. This will ensure that the deep coal reserves of the Waterberg district are economically mined with minimal negative impact on the environment.
Crowding-in Productive Investment to grow the Provincial Economy
Madam Speaker,
The department is mandated to lead in achieving outcome 4 of the Limpopo Development Plan, which is 'decent employment through inclusive growth'. We will do this by crowding-in productive investment projects in the growth areas of our province.
The department has announced that it is facilitating the establishment of two Special Economic Zone (SEZs) in Tubatse and Musina following the acceptance of proposals from Limpopo by the National Department of Trade and Industry (the DTI). Currently, feasibility studies for the 2 SEZs have been completed with positive results. A Project Management Unit has been established to drive the programme. Indications are that we will launch an application for the designation of Musina SEZ at the beginning of this financial year and for the Tubatse SEZ, later in the year. We are optimistic about the designation of the Musina SEZ, as a Memorandum of Understanding with Hong Kong Mining Exchange Company Limited, Hoi Mor, to the value of R38 billion has been signed, to establish a South African Energy Metallurgical Industrial Zone as part of that SEZ. We hope to create approximately 19 000 job opportunities from this enormous investment project over a period of 3 years and in so doing, create the requisite skills to support this investment.
Although this project did experience some delays, I can confirm that its construction is ahead of schedule and production is due to start later this year. I would like to acknowledge the presence of Ms. Gloria Serobe, a partner in the Mamba Cement Plant, as a special guest in this august House today.
Support of Small and Medium-Sized Businesses and Co-operatives
Madam Speaker,
The Limpopo Provincial Government identified the development and support of small businesses and co-operatives as key pillars of stimulating local economic growth by implementing the Enterprise Development Strategy. As government, we would like to see small businesses and co-operatives becoming sustainable. To this end, the department aims to provide support to 3 750 SMMEs in the 2015/16 financial year. During the 2014/15 financial year, the department assisted 25 small and medium sized enterprises to access incentives from the DTI to the tune of R318 million.
Last year the provincial Executive Council took a decision that 10% of the government procurement budget should be spent on procuring goods and services from co-operatives. I wish to announce that the department spent R 28, 6 million of its budget for goods and services in support of 46 local co-operatives in the 2014/15 financial year. The department, in conjunction with Provincial Treasury, is working on a programme with all other departments to dedicate resources to ensure that the 10% procurement target is implemented. I would like to encourage my colleagues to support this initiative.
To promote the programme, a team from LEDET and LEDA is in the process of designing and implementing a dedicated programme aimed at supporting the top 100 co-operatives in the province to ensure that they are ready to supply quality goods and services and benefit more from available opportunities within government. With the implementation of such development programmes, we aim to unlock the potential for SMMEs and co-operatives in townships and rural areas to become major job creation contributors in the province. The department invites all co-operatives in the province to heed the call to register on the departmental database in order to assist us in implementing this support programme successfully.
Honourable Speaker and Honourable Members,
The department, in collaboration with the Department of Small Business Development, will be hosting the Provincial SMME Summit later this month. The summit will provide a good opportunity to strengthen policy and strategy dialogue amongst role-players that include representatives from municipalities, business organizations, co-operatives and SMMEs.
During the mining roundtable referred to earlier, the mining industry committed itself to collaborate with the provincial government to promote preferential procurement for SMMEs and co-operatives. The Premier of our province challenged all mines to reach a target of at least 20% spending on local procurement projects to support small businesses and co-operatives.
Furthermore, we have formed partnerships with national support organizations to empower small businesses and co-operatives to become sustainable. In this regard, the department has (1) signed an MoU with the South African Bureau of Standards (SABS) in 2014 to assist small businesses and the co-operatives to go through the process of ensuring that they meet the required standards of quality, and (2) collaborated with Productivity SA on a programme that seeks to improve and increase the profitability and efficiency of production processes.
Honourable Speaker and Honourable Members,
I am pleased to announce that in 2014/15, Thengwe High School won the Productivity SA provincial public sector award. In addition, Ximambane Brickmaking Co-operative won the Productivity SA provincial award in the co-operative sector. I would like to acknowledge the presence of members of Ximambane Co-operative in this august House today.
Last year, we provided approximately R20 million to support financing for youth businesses in our province. In order for us to facilitate and build sustainable SMMEs and cooperatives in this financial year, the department has set aside R30 million to support co-operatives and a further R80 million will be dedicated for SMME debt and equity financing and R10 million towards non-financial support. We are doing this in partnership with our national state-owned enterprises resident in our province namely: The Small Enterprise Development Agency (SEDA) which has allocated R10.3 million towards non-financial support to SMMEs and cooperatives, Small Enterprise Finance Agency (SEFA) setting aside R45 million for SMME financial support and the Industrial Development Corporation (IDC) with its R20 billion national budget financing an average of R400 million worth of projects per annum in the province.
Youth Development and Women Empowerment Programmes
Madam Speaker,
A high percentage of youth in the Limpopo Province, linked to the high levels of unemployment, persuaded the department to adopt a policy focus on youth development. As the former President of the ANC, Oliver Reginald Tambo said, I quote: “a nation that does not nurture its youth, does not deserve its future”. These sentiments were echoed by President Zuma on the 12th of February 2015 during the State of the Nation Address and it reflects a sense of pride in our youth's successes. The Honourable Premier, announced recently in this august House that the country hosted the Draft National Policy Consultative Summit to solicit inputs into the National Youth Policy 2015/2020.
In line with these pronouncements and in accordance with our Enterprise Development Programme, 9 dedicated programmes targeting young men and women were implemented in 2014/15 to the tune of R20 million and these programmes will continue in 2015/16 to the tune of R25 million. The programmes are the Youth Entrepreneurship Enhancement Programme; SAGE High School Entrepreneurship Programme; the Adopt a Youth Entrepreneur Programme, ICT Youth Programme, Youth owned business financing by LEDA, the Youth Franchise Financing Programme, EPWP State-Owned Nature Reserve Infrastructure Programme, Tourism Youth Development and ICT Internet Connectivity in Schools.
Madam Speaker,
The President has announced a R2.7 billion Youth Fund. The purpose of this fund is to assist young people to access financial and non- financial support. We are making a call to the young people of our province to take advantage of this opportunity to change their lives for the better.
Honourable Speaker and Honourable Members,
The Youth Entrepreneurship Enhancement Programme is a sector-based and demand driven support programme aimed at facilitating the provision of capacity building initiatives through strategic partnerships that focus on specific skills transfer, practical mentoring and coaching of youth.
The Students for the Advancement of Global Entrepreneurship Programme (SAGE) is a high school entrepreneurship programme aimed at exposing learners to enterprise development by affording them the opportunity to take part in a provincial, national and international business plan writing competition. The programme helps to inculcate a culture of entrepreneurship as an alternative means of employment. Dendron Secondary School was a semi-finalist in the Social Responsibility Business category when they represented Limpopo and the country in the international SAGE entrepreneurship competition in Moscow, Russia. I am proud to announce that LEDET's SAGE Programme won the platinum award in the innovation category in the recent Premier's Service Excellent Awards, with the school being awarded a price tag of R50 000 which I will present to the winners later this month. In the 2015/16 financial year, we aim to involve more schools in this competition.
The department also hosted the Youth Franchise Expo in November 2014 with a total of 473 youth in attendance being exposed to franchising opportunities. A further 1 153 young people attended the exhibition where 54 exhibitors showcased their franchise business opportunities. We are doing this with the firm belief that franchising is an off-the-shelf tested business model that can be tailored towards young people who are in the early stages of starting their own businesses. In this financial year, the department and the state- owned enterprises mentioned earlier will be prioritizing the financing of franchises targeting mainly young people and women. Progress will be provided to this House in this regard.
In terms of the Adopt a Youth Entrepreneur Programme, youth entrepreneurs with more than 2 year's experience and a turnover of R50 000 were requested to submit business profiles to the department. We then selected 36 entrepreneurs to whom individual, tailor- made support is being provided. In March 2015, these youth entrepreneurs were provided with laptops and other business support equipment after entering into agreements to be placed under LEDA's incubation programme.
The focus during this financial year will be to support these entrepreneurs to successfully access market opportunities. We are, once again, collaborating with commercial banks, SEDA, IDC and SEFA as partners to provide financial and non-financial support to enhance our youth development programmes through 5 district roadshows that are planned for this financial year.
During the 2015/16 financial year, the department is initiating a training programme targeting women and youth in the province in partnership with NGOs. The programme aims to train women in entrepreneurship in the key sectors of our province. Furthermore, we aim to empower persons with disabilities through our incubation programme.
ICT and Broadband Infrastructure
Madam Speaker,
We are implementing the ICT broadband project in partnership with the National Treasury through a Public Private Partnership model. There are two phases involved in this model, the first being the feasibility study and the second being construction. The first phase is expected to be completed in the 2nd quarter of the 2015/16 financial year, after which the construction phase will follow. During his State of the Nation Address this year, President Zuma announced that the roll-out of broadband or ICT infrastructure in the country will see government offices in the Vhembe district being connected, among other districts nationally. In addition, the Innovation Strategy and its implementation plan are expected to be completed by the 1st quarter of 2015/16. A key element of this strategy is to facilitate growth of new, small and medium sized ICT companies in the province.
During the last financial year, the department hosted the Limpopo ICT Youth Conference from the 26th to 27th March 2015. The goal of the conference was to engage and consult with youth and ICT SMMEs to identify their challenges and opportunities in growing their businesses within the ICT industry. Over 800 young people from all five districts of the province attended. The conference has identified practical programmes in partnership with ICT multi-national companies, which will be anchored in the ICT Centre of Excellence to be launched this year to the benefit of youth and women.
Furthermore, the ICT Internet Connectivity in schools project is well underway. The Department of Education has identified 10 public schools for piloting of the Offline Content Solution to schools without internet connectivity. Funding of R1,4 million was secured from Tirelo Bosha, a Public Service Improvement Facility funded by the DPSA. This funding will assist us to expand the Offline Content project to 10 additional schools in the province.
The Virtual Research, Development and Innovation Network (VRDIN) project is a donor funded tri-lateral project funded by the United States Agency for International Development (USAID) through the National Treasury and the Department of Science and Technology (DST). The total grant funding for the project is R1, 9 million. This project aims to assess the feasibility of a virtual research, development and innovation network for information society in marginalized rural regions within SADC. The specific activities of this project include a feasibility study and capacity building and training workshops, as well as seminars to be conducted both in Tanzania and South Africa for researchers from the SADC region. We are pleased to announce that work is underway in Tanzania in this regard.
Creating a Pool of Skilled People for the Local Economy
Madam Speaker,
We have identified the critical need to create a pool of skilled local people in various sectors to achieve our strategic and industrialization agenda. I am delighted to report to this august House that our department witnessed the graduation of the first 20 trainees of the Tool, Dye and Mould (TDM) Making National Pilot Project. I am excited that one of these graduates scooped 2nd position nationally as the best TDM Powered Project trainee. Limpopo is continuing with this important project with 40 artisans having been enrolled for training for the 2015/16 financial year in Lephalale and the Greater Tubatse regions. 20 apprentices from Steelport and 18 from Lephalale will be graduating in the foundation level of the TDM Programme in May this year. An additional 5 apprentices from Steelport, who are on level 3 of the programme, are completing this year and will then be examined for their trade tests to qualify as
artisans in the TDM programme.
The department is working with the Limpopo Tooling Initiative Advisory Board, Technology Information Agency and local universities to set up a Manufacturing Support Centre which is planned to be launched during this financial year. The centre will see government and local universities working together in ensuring that skills for the industrialization programme are produced locally.
We are further engaged in the training and development of artisans to provide much needed key technical skills for the provincial economy. The province has reached an agreement with Hoi Mor, (the Chinese Investor in the Musina SEZ) to train 50 youth in China in preparation for the rolling out of the metallurgical project.
Furthermore, the department is also entering into a partnership with the State Diamond Trader, Mintek and local mines to work on training young people in the beneficiation of diamonds. This programme is meant to train potential diamond traders and to license them to be able to beneficiate and trade. The President directed that we partner with the mining industry to develop a 'win-win' solution to beneficiate our mineral resources.
Moreover, in line with our vision of “A competitive economy within a sustainable environment”, we are presently training 31 youth in Energy Management Systems to provide a pool of requisite skills to pursue our Green Economy Plan and realize the opportunities provided by this sector. These skills will contribute to the industrialization agenda of the province in the near future. The department is also collaborating with the University of Venda to develop the skills required for the green economy and in 2014, 10 local young entrepreneurs were trained as masons. These youth will be rolling out biogas digesters in rural areas as part of greening the province. To date, we have installed 9 such biogas digesters in various villages in the Vhembe District, with a demonstration model having been installed at the University of Venda.
We have initiated a skills development programme to empower women by unleashing their production and manufacturing potential. This programme entails upgrading the basic skills of women that will enable them to produce quality and commercially viable products in the clothing and textile industries. The expected outcome is to establish home-based, rural and township enterprises as well as co-operatives, thereby stimulating income generation. The spin-offs from this skills development programme will include promotion of accreditation of potential local service providers.
Madam Speaker,
The department is also adding to the pool of skilled people through awarding of bursaries, internship and learnership programmes. In the 2014/15 financial year, we set aside R12 million for these programmes and awarded 60 bursaries to young people. In addition, the department appointed 109 interns who have benefited through valuable experiential learning.15% of our interns managed to secure jobs both in the public and private sectors. In 2015/16, we will be awarding 50 bursaries to students in various study fields and appointing 98 new interns.
To support bursary recipients, we have formed partnerships with the mining industries for placement of bursary holders who have completed their studies. In addition, funding was secured from the Culture, Arts, Tourism and Hospitality Sector Education & Training Authority (CATHSETA) to implement a Learnership Programme in Nature Conservation at NQF level 2. 22 learners will be graduating from this programme later this month. The learnership programme will continue in the 2015/16 financial year with 60 learners.
Local Economic Development Support to Municipalities
Madam Speaker,
Ours is a rural province and therefore the role played by municipalities and traditional leadership is of paramount importance in creating a conducive environment to attract investments and promote economic growth at a local level. This key role that municipalities play in terms of local economic growth and service delivery cannot be over-emphasized and this department will intensify its support to local municipalities through its LED programmes in collaboration with the Department of Co-operative Governance, Human Settlements and Traditional Affairs (CoGHSTA). As a special intervention, LED managers from municipalities will have the opportunity to attend a training session led by the department focusing on developing local economic profiles, investment promotion and spatial planning. This training, planned for the second quarter of this financial year, aims to enhance the capacity of the municipal LED managers in the province.
We will also assist municipalities to review and enhance their LED strategies and continue with programmes focusing on enterprise support and investment promotion. The department further aims to strengthen the District LED Forums as a platform for business and government to engage on the local economic development priorities for each district. We are calling on all municipalities and traditional leaders to collaborate and partner with us in this regard.
In line with the Limpopo Development Plan, the department will be facilitating the implementation of the Growth Points Programme. Our focus will be in Lephalale, Musina & Makhado, Polokwane, Greater Tubatse and Phalaborwa. The programme seeks to encourage critical role players and investors to implement projects in these areas.
I am happy to announce that the construction of market stalls in the Mopani District has been completed. In this financial year, market stalls will be constructed in Elias Motsoaledi Local Municipality in the Sekhukhune District and Molemole Local Municipality in the Capricorn District at an estimated value of R2,7 million. Moreover, R2,4 million has been set aside for the EPWP incentive grant for general maintenance of infrastructure in Lekgalameetse, Mafefe, Blouberg and Manombe, all of which are state-owned nature reserves. It is envisaged that a total of 545 EPWP workers will benefit from work opportunities created through this project.
We are emerging out of a Local Government Tourism Conference hosted jointly by the Minister of Tourism, Honourable Derek Hanekom and CoGTA (National Department of Co-operative Governance and Traditional Affairs), from 30th to 31st March 2015. The purpose of the conference was to strengthen an integrated tourism development platform across all spheres of government with a particular focus on local government. The conference acknowledged that while other primary sectors encountered a decline resulting from the global financial crisis, the tourism sector stood the test of time by posting positive employment and growth figures. In pursuance of our mandate to support tourism and in our quest to strengthen the implementation of tourism development and marketing within our municipalities, we are investing a total amount of R20 million to the development of an integrated spatial framework for tourism within municipalities, formulation of marketing partnerships, capacity building of tourism practitioners and placement of tourism graduates in municipalities without tourism personnel.
Madam Speaker,
We are pleased to announce the implementation of the Limpopo Business Regulation Act (LIBRA) from the 1st of April 2015. This function has been decentralized to 25 municipalities for implementation during this financial year. During our consultative meetings in 2014, municipalities demonstrated a keen interest to implement LIBRA, which focuses on regulating the licensing of local businesses in their areas of jurisdiction. More so, municipalities have also budgeted for and included the implementation of this programme in their IDPs.
In terms of liquor administration, the department will be regulating at least 5 760 liquor businesses across the province in this financial year. The Liquor Amendment Bill has been finalized and submitted to this august House. The Bill seeks to address the challenges relating to mushrooming of taverns and selling of liquor within close proximity to schools and places of worship.
Biological Diversity and Natural Resource Management
Madam Speaker,
Protecting and enhancing our environmental assets and natural resources is one of the pillars enshrined in Chapter 5 of the NDP. Biodiversity remains a cornerstone of economic growth and sustainable development in all developmental initiatives. We need to facilitate participation of previously disadvantaged communities in the wildlife industry through the allocation of hunting packages and donation of wildlife as a feasible way to ensure sustainable trade in biodiversity. This will, however, be done in collaboration with the Department of Agriculture. The department is in the process of finalizing its donation policy, the aim of which is to provide an allocation of game to PDI's based on the game census and the game reduction plan of the department.
This is done in an attempt to transform the wildlife industry. We are also involved in ranching of game and the sale of game meat through culling at almost half the price of normal red meat. Ranching of game can contribute to economic growth and job creation for people participating in trophy hunting, the biltong industry, skins tanning and those who are in the business of making leather products from animal skins.
Madam Speaker,
In the quest to transform the wildlife industry, the department managed to allocate 20 CITES leopard tags (Convention on the International Trade of Endangered Species) to previously disadvantaged individual professional hunters who formed partnerships with established hunting outfitters. In so doing, the department is continuously empowering disadvantaged communities by unlocking opportunities in this lucrative industry.
We have, and will continue to, engage the Limpopo Hunters Liaison Forum and the Professional Hunters Association of South Africa (PHASA) to discuss issues around regulations, empowerment and skills transfer on all aspects of the hunting industry.
The department has worked hard to benefit communities living adjacent to nature reserves by creating 625 green jobs through our Expanded Public Works Programme. These beneficiaries gained skills in road and fence maintenance, which they can use to obtain permanent jobs.
Madam Speaker,
The matter of economic transformation through commercialization of our state-owned nature reserves is of paramount importance. In this regard, I have directed the department to develop and finalize a model that will empower communities living adjacent to state-owned nature reserves. The model will be finalized during the third quarter of the 2015/16 financial year.
In addition, the department has empowered schools and communities, including traditional leaders, with information and knowledge around environmental legislation and the green economy, through various environmental campaigns. 1 200 trees were planted in schools and churches in 2014 to promote conservation of trees to mitigate the impact of climate change. During this financial year, we will plant another 1500 trees. The department has also implemented the Greenest Municipality Competition in the province with the aim of empowering municipalities to improve environmental planning and to implement responsible natural resource management. I am proud to announce that Mogalakwena Local Municipality emerged as the national winners of the competition in the 2012/2013 financial year.
We will continue to provide capacity building workshops to educate communities about environmental management and conservation of our natural resources, as prevention is better than cure.
Environmental Impact Management
Madam Speaker,
During the 2014/15 financial year, the department received a total of 171 applications for EIAs for infrastructure projects, including those for basic services, and successfully processed 100% of these applications. This success rate surpasses the national target of 98% set by the Office of the Presidency. The estimated economic spin-offs generated by these approvals are projected to be R51 billion worth of infrastructure, especially in the mining sector. The department will continue to process all applications received during 2015/16 within the timeframes stipulated by the National Environmental Management Act. The department will also embark on awareness of EIA requirements for development initiatives in all of our municipalities.
Environmental Compliance and Enforcement
Madam Speaker,
Despite intensive government initiatives to combat rhino poaching, the onslaught of this threatened and endangered species persists. In 2014 alone, 148 poachers were arrested and the annual growth rate of arrests since 1994 is reported at 97%. Unfortunately, the number of rhinos poached in the province increased from 114 in 2013/14 to 134 in 2014/15. Pseudo hunting, involving bogus hunters, has long been used as a strategy to get rhino horns out of the country. To this end, the department will continue to strengthen partnerships with law enforcement agencies, conservation agencies and the private sector to arrest this scourge of rhino poaching.
Recently, the Environmental Management Inspectors and the South African Police Services arrested two suspected rhino poachers at Letaba Ranch whose charges also included murder. The two suspects have since been convicted on both counts of murder and poaching and sentenced to 200 years in prison. We applaud the justice system for demonstrating the seriousness of rhino poaching as a criminal offence and hope that this will serve as a deterrent to would-be poachers. We aim to strengthen law enforcement efforts through specialized training, acquisition of adequate equipment and strategic deployment. These efforts will be enhanced by providing support to anti-poaching groups and through establishing partnerships with the national Department of Environmental Affairs and private landowners. The department will continue to replace aging field rangers that exit the system with young, competent and adequately trained rangers and employ additional Environmental Compliance Officers to combat poaching.
Integrated Pollution and Waste Management
Madam Speaker,
Given the rapid developments that are unfolding in our province and the prospects of the adverse impacts on human health and the environment, the department is committed to effective monitoring and assessment of waste management facilities and generator emissions in the province. We have monitored 412 waste facilities in 2014/15. These facilities include landfill sites, waste water treatment plants, waste transfer stations and waste recycling.
Given the vast mining and alloy processing, as well as the electricity power generating plants in our province, air quality monitoring and climate change has become a priority area for the department. Over and above the 9 government-owned ambient air quality monitoring stations in the province, air quality monitoring in the Waterberg District is being conducted in conjunction with the National Department of Environmental Affairs. Moreover, it is envisaged that the Tubatse Air Quality Monitoring Station Project, which is currently in the pipeline, will be completed in this financial year.
The Gambling Economy
Honourable Speaker and Honourable Members,
We must acknowledge that gambling remains a stimulus for local economic growth and development. Yet, as the regulator of the gambling industry in the province, we remain committed to promoting responsible gambling. The Limpopo Gambling Board has issued the third and the final casino license to Peermont Global Resorts for the official launch and operation of the Thaba Moshate Casino, Hotel and Conference Centre in the Greater Tubatse Local Municipality.
The official opening of the casino is scheduled for 23rd April 2015. During the construction phase of the casino, 751 people were employed and we hope to create another 180 permanent jobs during the operational phase of this project.
Madam Speaker,
We have also licensed 34 Limited Payout Machine (LPM) sites, thus increasing their number to 237. In total, there are currently 1 051 LPMs operational in the province. Due to our involvement in the operation of licensed gambling sites, the department generated over R50 million in revenue for the provincial government. The province continues to experience challenges with the mushrooming of illegal online gambling sites that masquerade as internet cafés. During the past financial year alone, 275 investigations of illegal gambling activities were conducted and as a result, 205 arrests of illegal gambling operators and gamblers were made.
We therefore seize this opportunity as government to appeal to the general public to refrain from supporting any illegal gambling activities, including mo-chaina.
Tourism Sector
Madam Speaker,
In positioning the province as a preferred ecotourism destination, the department will focus on various tourism programmes, including the development of tourism products and services. This is an extensive infrastructure programme aimed at developing and upgrading tourist facilities and support infrastructure in the nature reserves. We further aim to enhance access to affordable tourism establishments for the domestic and leisure market. In enhancing the iconic value of our two World Heritage Sites, Mapungubwe Heritage Site and Makapans Valley will receive greater attention this financial year. This is also a priority programme in the National Tourism Sector Strategy.
Improved communication and partnership will not only strengthen our marketing efforts, but will also contribute to the development of tourism packages to attract tourist markets. Special attention will be given to domestic, cultural and community tourism developments.
The department will continue with the regulation of tourist guides with the aim of improving the norms and standards of service offerings in the industry and to ensure that we have access to well qualified and competent tourist guides.
We will continue with tourism transformation programmes to benefit youth entrepreneurs in terms of training and capacity building initiatives. Various skills development programmes are in place and will be expanded to enhance the participation of PDIs, youth and SMMEs in the tourism sector. This year, we will be establishing and launching a Limpopo Tourism Forum to enhance integrated planning and marketing within the different spheres of government.
Madam Speaker,
The department will be supporting 59 tourism SMMEs with funding and marketing at various local and international marketing platforms in 2015/16. This will be coupled with tourism capacity building and training programmes being provided to tourism SMMEs.
Although the province experienced a steady increase in tourist numbers over the last few years, marketing and branding Limpopo as a tourist destination still requires a lot of attention. The department, in partnership with the Limpopo Tourism Agency (LTA), will strengthen its marketing campaigns in this regard. Participation in the annual Tourism Indaba will continue to receive greater attention, as well as support to local events such as the annual Marula, Mapungubwe and the Oppikoppi Festivals.
Madam Speaker,
The department will continue to engage with the business sector and civil society on improving growth and development in our province. Inputs from private sector formations including Business Fora, The Chamber of Businesses, Youth Associations and Women Associations in the province were sought when developing the priorities for the 2015/16 financial year.
I would like to take this opportunity to once again thank the management and staff of the Department of Economic Development, Environment and Tourism, for their dedication in advancing the mandate of the department.
I would also like to acknowledge the sterling job done by the Board of the Limpopo Tourism Agency, whose term will be coming to an end on 30th April 2015. The Board has served the people of this province with pride, dedication and commitment. We are in the process of finalizing the appointment of a new Board.
I also would like to take this opportunity to appreciate the leadership being provided by the Boards of the department's other 2 entities, namely LEDA and the Limpopo Gambling Board (LGB).
The effective functioning of the department and its entities is enhanced by the role played by the Portfolio Committee for Economic Development, Environment and Tourism and I must acknowledge the oversight function of this Committee led by Honourable Mr Dau.
Budget Appropriation for 2015/16 Financial Year
As Wildavsky posits, “little can be done without money and what will be tried is embedded in the budget”.
Madam Speaker,
The department has been appropriated a total of budget of R1.1 billion for the 2015/16 financial year.
The budget will be used prudently to implement economic projects and service delivery objectives informed by the Limpopo Development Plan, the President's 9 Point Plan and the Premier's pronouncements that find their expression in the department's five year Strategic Plan and the Annual Performance Plan (APP) submitted and tabled to this august House.
Honourable Speaker, Honourable Members, Ladies and Gentlemen,
Having outlined policy priorities for implementation in the 2015/16 financial year to promote growth and development, ours as the Department of Economic Development, Environment and Tourism, in partnership with our agencies, is to walk together and toil together, one step at a time, with hope, with confidence, with humility and perseverance, to realize the ideals embodied in the Freedom Charter, the Constitution, the National Development Plan and the Limpopo Development Plan.
We will undertake this journey together because we have a shared vision for Limpopo. We will continue, day by day, to translate the resources at our disposal and to use the opportunities before us to ensure that we improve the living conditions of our people, and that we grow the provincial economy together.
The achievements of our department and our province are made up of the combined capacities and efforts of all citizens of this great province.
I thank you !
