Honourable Speaker, Mme Rosemary Molapo, Deputy Speaker, Mr Jerry Ndou, Honourable Premier , Mr Stanley Chupu Mathabatha, Members of the Provincial Legislature, Colleagues from the Executive Council, The Chief Whip of the Majority Party, Leaders of Opposition Parties, Chairpersons and Members of the Boards of our Entities, Fellow South Africans,
Ladies and Gentlemen, Good morning
The country is reveling in the exciting pronouncement by the President, last night, that South Africa is no longer in a State of Disaster. This brings welcome relief to the harsh economic conditions that we endured throughout the last two (2) years of the COVID-19 pandemic and will certainly pave the way to open up the economy to create much-needed jobs and promote economic activity.
We had to meet virtually to deliver the previous budget speech. Although this approach enabled us to be exposed to the Fourth Industrial Revolution, it however, denied millions of our people an opportunity to listen and engage with us, especially from far ung rural areas.
Today we have the opportunity once again to meet as Members of this august House, led by the African National Congress, with a duty to the people of Limpopo.
Communities have hope and confidence in us to turn things around for the betterment of their livelihood, to resuscitate the provincial economy from the devastating impact of COVID-19 and to create much-needed jobs.
The provincial government, under the leadership of Premier Stanley Chupu Mathabatha will continue the implementation and monitoring of the Limpopo Socio-Economic Recovery Plan to mitigate against the impact of the COVID-19 pandemic on livelihoods and businesses. We will build and industrialize this economy with our social partners and communities.
The Global, National, Provincial Economy
Honourable Speaker, the war in Ukraine has come at a time when the world was expecting socio-economic recovery from the devastating impact of the COVID-19 pandemic.
In Limpopo, a total of two hundred and forty-two thousand (242 000) people have lost jobs since 2020 due to the COVID-19 pandemic and other structural impediments.
According to Statistics South Africa, by the end of 2021, the number of people employed in the province was one million, one hundred and forty-five thousand (1 145 000).
The official unemployment rate in Limpopo is currently at 33.9% and we, as the provincial government, must work hard to reduce this number to 14%, in line with the 2020-2025 LDP target.
The war in Ukraine continues to have a devastating impact on the global economy as growth projections are reviewed and revised downwards. Ukraine is the world's biggest producer of sunower oil, while Russia is the biggest source of oil and gas. Indeed, the rises in global energy and cooking oil prices threaten global recovery efforts, especially for emerging economies like South Africa.
However, we must not despair under the impression that everything looks gloom for South Africa and Limpopo. The latest report by Statistics South Africa shows that the South African economy recorded a positive growth rate in the fourth quarter of 2021. The GDP grew by 1.2% in the fourth quarter, taking the annual growth rate of 2021 to 4.9%. Economic growth is the most powerful tool for reducing poverty, creating jobs and improving the quality of life for our people.
Limpopo Socio-Economic Recovery Plan
Madam Speaker, the implementation of the Limpopo Socio-Economic Recovery Plan, is in full swing, as a strategic intervention to deal with the impact of COVID-19 and resuscitate the provincial economy in the short- term, medium term and long-term.
The Socio-Economic Recovery Plan was allocated a total amount of five hundred and three million rands (R503 million) to fund short-term measures in 2020/21.
During the financial year 2022/23 onwards, the department will be implementing the long-term measures of the plan, which includes amongst others, the industrialization programme, implementation of sector master plans and support for entrepreneurship and enterprise development.
Honourable Speaker, in September 2021, the province hosted the Limpopo Investment Conference, under the leadership of Premier Mathabatha, an initiative that yielded investment pledges to the value of two hundred and eight billion rands (R208 billion).
As the Honourable Premier said, we must now translate these commitments into tangible projects that create value and impact on the local economy. We must see construction taking place and jobs being created.
We are proud to announce several investment pledges that are now being implemented on the ground. The Masingita Group has started with the construction of the Nkuna Smart City project with a total investment value of one point five billion rands (R1.5 billion) and envisages to create thirteen thousand, four hundred and eighty (13 480) jobs during the construction and operational phases.
The mining industry is the mainstay of the Limpopo economy. In the quest to deal with conicts in mining communities, the Premier directed that we host a Mining Indaba. Together with the Minster of Mineral Resources & Energy, Honourable Gwede Mantashe, the province hosted the first ever Limpopo Mining Indaba in October 2021.
The indaba focused on capacitation of Traditional Leaders. To that end, Traditional Leaders have been trained on mineral regulations in March 2022. This will assist them to understand their responsibilities with regard to mining rights.
The indaba further resolved that all mines that are under care and maintenance must be reopened and I am proud to report that two mines in Limpopo (Bokone and Cheetah SA) have been reopened.
The indaba looked at the issue of illegal mining, which is a risk factor to mining activities in Limpopo and the Department of Mineral Resources and Energy has been requested to strengthen the capacity of the Security Cluster to deal with illegal mining in Limpopo.
A Task Team, comprising LEDET and DMRE, has been established to monitor the resolutions of the mining indaba and report back to the political structure on a quarterly basis.
During the State of the Province Address, the Premier emphasized that industrialization of the provincial economy, through implementation of mega-projects in manufacturing and the agriculture and tourism sectors, continues unabated. The department is implementing high impact catalytic projects focusing on the Broadband Network Infrastructure Initiative, the Science & Technology Park, Digital Hubs and our two Special Economic Zones, namely, Musina-Makhado SEZ & Fetakgomo-Tubatse SEZ. LEDET will drive implementation of the industrialization programme in partnership with other sector departments in the Economic Cluster.
Honourable Speaker, the long-awaited Environmental Authorization for the South Site of the Musina-Makhado SEZ has been issued.
We are happy to announce that the sod-turning ceremony of the North Site of the Musina-Makhado SEZ will take place in May 2022.
Honourable Members, the province has set aside six hundred million rands (R600 million) to develop infrastructure for the North Site of the MMSEZ over the MTEF. Of this allocation, thirty-eight million, seven hundred and seventy- nine thousand rands (R38 779 000) has been spent to date on engineering work.
The current year's budget allocation of two hundred million rands (R200 million) will be utilized in this financial year to roll-out security, water and electricity infrastructure.
Honourable Speaker, the implementation of the SEZ is progressing very well. In support of the SEZ work, we are working with the Border Management Agency to implement the One-Stop Border Post in an attempt to reduce delays at the border gate. This initiative is meant to support easy access to the SADC export market and the SEZ will benefit out of it.
We believe that the SEZ in Vhembe should support the skills profile of the district. To this end, we have forged a partnership with Vhembe TVET to relocate their engineering campus within the SEZ site. De Beers will support the graduates with on-the-job training.
Honourable Members, we are once again proud to announce that we will soon break ground with the implementation of the Fetakgomo-Tubatse Special Economic Zone (FTSEZ). We are finalizing the business case for the designation of the SEZ.
A total of twenty-five million rands (R25 million) has been set aside as a down payment to procure the Mining Input Supplier Park owned by Glencore.
An agreement will be signed in the first quarter of this financial year between LEDET, Sekhukhune District Municipality, Fetakgomo-Tubatse Local Municipality and the Department of Trade, Industry and Competition (the dtic) to cement this partnership.
A Project Management Unit has been established and is gradually being capacitated to commence with infrastructure rollout in the current financial year. Thirty-five million rands (R35 million) is allocated to set up the infrastructure that is required to locate investors, which includes the perimeter fence, clearing of site as well as to finalize rezoning of the land for township establishment.
Madam Speaker, in relation to mining, the Sefateng Chrome Mine project, with an investment value of one point two billion rands (R1.2 billion), will create approximately nine hundred and fifty (950) job opportunities during full production.
Corridor Mining Resources has applied for a mining right for Tshepong Chrome Mine. The early works of the mine will start once the mining rights have been obtained.
The Ivanhoe Mine, that has already spent seven billion rands (R7 billion) of its nine-billion-rands (R9 billion) investment commitment, will in this financial year, spend the remaining amount on mining infrastructure in the Waterberg District. By the end of the 2022/2023 financial year, the contribution on job creation by Ivanhoe Mine would have reached one thousand (1000) jobs.
With an investment commitment of forty-eight billion rands (R48 billion), Anglo-American and De Beers plan to spend three billion rands (R3 billion) before the end of June 2022 to service the Mototolo Mine in Sekhukhune District.
Honourable Members, extension of the Radisson Hotel in Polokwane will begin in September 2022, creating five hundred (500) job opportunities.
Township and Rural Revitalization Strategy
Honourable Speaker, the implementation of the Limpopo Township and Rural Economy Revitalization Strategy is in full swing. During the past two financial years, one thousand two hundred and forty-seven (1 247) registered Spaza Shops in the province benefited from the National Spaza Shop Relief Fund, totaling an amount of eight million, seven hundred and twenty-nine thousand rands (R8 729 000).
Two hundred and seven (207) SMMEs and cooperatives are currently participating in LEDA Business Incubation Programme, of which sixty-three (63) SMMEs and thirty-two (32) co-operatives are youth-owned enterprises. Through this Business Incubation Programme, LEDA has been able to sustain at least two hundred and seventy-nine (279) and six hundred and ninety (690) job opportunities in SMMEs and co-operatives respectively.
Madam Speaker, within our Industrial Parks, we have been able to sustain over six thousand (6000) jobs in Seshego, Nkowankowa, Lebowakgomo, Thohoyandou, Giyani and Mkhuhlu Industrial Parks, despite the COVID-19 pandemic. Limpopo has benefited from the National Industrial Revitalization Programme and has implemented security infrastructure in Seshego and Nkowankowa Industrial Parks.
Roll-out the Broadband Network Infrastructure Project
Honourable Speaker, we are implementing a Digital Hub in Seshego and Nkowankowa Industrial Parks to bolster digital training and stimulate job creation, especially for young people. The department signed an MOU with the Department of Trade, Industry and Competition (the dtic) for twenty- three million rands (R23 million) in the 2022/23 financial year.
Madam Speaker, a month ago, I was invited by the University of Venda to launch their broadband initiative which is intended to cover the whole of Vhembe District. The beneficiaries from this initiative include, amongst others, students, business enterprises and ordinary folk. This initiative demonstrates that, with more hands on the deck, we will be able to connect the whole province. We will continue to support such initiatives and we would like to encourage other institutions to follow suit.
Crowd in investment for Local Economic Development
Madam Speaker, guided by the District Development Model and Limpopo Industrial Master Plan, the provincial government will aim to achieve catalytic development projects in every district.
We believe that together, we can do more.
Madam Speaker, we are busy planning mega-projects for the districts that do not have SEZs. The department will continue to pursue engagements with Polokwane Municipality regarding the Polokwane Freight & Logistics Hub, with Mopani District on the Agro-Processing Hub and Lephalale Municipality on the Lephalale Logistics Hub.
Support to Local Government
Madam Speaker, the District Development Model (DDM) has become a cornerstone of integrated planning across all spheres of government. In support of the DDM, we have established governance structures comprising provincial and local government to support environmental and other LED initiatives within the districts.
LEDET initiated the LED capacity building programme to train councilors and officials responsible for LED functions on key technical skills with the objective of building efficiencies in the implementation of the Local Economic Development mandate.
Madam Speaker, to date, LEDET has spent three million rands (R3 million) to train seventy-nine (79) councilors and LED officials, who have since graduated in October 2021. The last intake of seventy-five (75) councilors, including officials, were enrolled with the University of Johannesburg in February 2022.
During the State of the Nation Address, President Cyril Ramaphosa emphasized the importance of reducing the regulatory burden of doing business in the country. In response to the President's call, LEDET has commenced with the implementation of the Red Tape Reduction Programme.
To ease the cost of doing business, the department, in partnership with SITA, is developing a web-enabled Biodiversity Permit Management System and Liquor Management System.
This will reduce cost and save time when lodging applications. These two (2) projects will be completed in the current financial year.
Strengthening the support and development of SMMEs and Co-operatives
Madam Speaker, during the State of the Nation Address this year, President Matamela Cyril Ramaphosa made a call for government to redesign its loan guarantee scheme to ensure that more enterprises qualify for government- backed SMME support measures. This requires us, as the provincial government, to adjust the eligibility criteria for SMMEs and co-operative financing strategies, which will encourage greater uptake by small local businesses.
To crowd-in more support to SMMEs and co-operatives in the province, LEDA has extended its partnership with the Companies and Intellectual Properties Commission (CIPC) to assist Limpopo-based enterprises to access various statutory compliance services.
To date, four thousand six hundred and thirty-three (4 633) local enterprises were assisted to access various CIPC services.
Furthermore, we are also partnering with the South African Bureau of Standards (SABS) to support businesses to improve on quality of their products and service offerings.
Madam Speaker, we have a partnership with LEDA, SEDA and Productivity SA to implement the Competitiveness Improvement Programme. In the last financial year, we have assisted twenty (20) companies on Productivity Improvement and ten (10) on the Turnaround Programme.
We have also trained fifty (50) champions to implement the programmes across the five (5) districts. We will continue with this programme with the same number of beneficiaries in the current financial year.
Honourable Members, youth development remains at the core of our work as LEDET. The department empowers young people in various fields through programmes such as skills development, youth entrepreneurship and the Expanded Public Works Programme (EPWP).
We are proud to report back that eight thousand, two hundred and sixty-two (8 262) young people were trained in various business and technical skills by LEDA in 2021. Through the LEDA-UIF partnership, six hundred and fifty-one (651) young people were further trained on the New Venture Creation programme and then placed in various organizations to complete their practical training.
During the course of the 2021/2022 financial year, the department, through LEDA, further supported seventy-seven (77) youth-owned enterprises in Limpopo to access finance from different development finance institutions. We will continue to support enterprises through technical and soft skills programmes in addition to financial support.
Honourable Speaker, the department continues to implement EPWP and as at the end of December 2021, a total of seventy-eight (78) young people had benefited from environmental programmes to assist with infrastructure repairs and maintenance in state-owned nature reserves and resorts. In this financial year, two point one million rands (R2.1 million) has been set aside to continue with EPWP.
Honourable Members, the department is also building the capacity and skills of young people in the green economy sector to leverage on available opportunities. In this regard, twenty-eight (28) learners were enrolled in the Energy Management Systems Programme of which seven (7) have already qualified as Certified Energy Auditors, while two (2) qualified both as Certified Energy Auditors and Certified Energy Managers.
Through this green economy programme, the department enhances the capacity of the province to fully participate in the green economy sector and improve efficiencies in the manufacturing industry.
Strengthening oversight in Entities
Madam Speaker, it is our responsibility as LEDET to ensure that our entities have functional boards, which is indeed the case. I do have regular interactions with these accounting authorities as it promotes good governance and ensures that the department maintains oversight of its implementing agencies.
Limpopo Gambling Board
Honourable Speaker, the gambling industry, which was hard hit by COVID- 19, has begun to recover. With the National State of Disaster having finally come to an end, we look forward to revitalization of the industry and the resuscitation of further economic activity.
On 26 November 2021, the Limpopo Gambling Board officiated the opening of Goldrush Bingo in Phalaborwa, which is the last of the seven (7) licensed Bingo Sites for the province. The Bingo Site will employ a minimum of twenty- six (26) permanent employees.
The Limpopo Gambling Board further licensed seven (7) Limited Payout Machines (LPM) Sites in November 2021, which has created fourteen (14) jobs. In addition, one (1) Bookmaker Site was opened in December 2021, employing eight (8) young people.
Business Registration and Regulations
Madam Speaker, we have recently published the Gambling, Liquor and Consumer Regulations and this will ensure that we implement the principal acts in the current financial year.
In line with the Limpopo Business Registration Act (LIBRA), thirteen (13) municipalities have been assigned as Business Registration Centres.
The department is continuously engaging the remaining 12 municipalities to be assigned the LIBRA function. By taking up the function as business registration centres, the municipalities will be able to generate income from business permit applicants.
We will continue with the programme to monitor and inspect businesses for compliance with their licensing conditions, especially in the liquor industry. To deal with mushrooming of illegal taverns and shebeens in townships and rural areas, the department will partner with the South African Police Services (SAPS) to conduct joint operations and bring offenders to book.
Limpopo Tourism Agency
Madam Speaker, the tourism sector was the hardest hit sector during the COVID-19 pandemic. In mitigation, the department developed the Tourism Sector Recovery Plan and hosted the Provincial Tourism Lekgotla in August 2021 with a view to support the industry on a path to recovery.
Furthermore, Limpopo Tourism Agency launched on aggressive marketing campaign to promote implementation of health and safety protocols within tourism facilities, all in an attempt to re-ignite travel and tourism and ensure that Limpopo remains at the helm of domestic tourism.
We will continue to implement the Tourism Recovery Plan and supplement the provincial resources to the national funding set-aside for the sector.
Honourable Speaker, in the last fortnight, we hosted two (2) international golf championships in Waterberg that were broadcast internationally, reaching out to thirty (30) countries. These initiatives contributed in excess of four hundred (400) job opportunities in the hospitality industry, with an investment injection of eleven million rands (R11 million).
Honourable Speaker, we have budgeted twenty-one point eight million rands (R21.8 million) for destination marketing and we want to recover the lost ground in terms of foreign and domestic arrivals. Within the department, we will continue to implement programmes to support transformation of the tourism industry by prioritizing emerging tourism product owners in terms of service and product grading and marketing exposure.
Limpopo Economic Development Agency
Honourable Members, the LEDA Group is the epicenter of economic and industrialization development in the province.
Great North Transport
Honourable Members, we are continuing with the implementation of the GNT turnaround strategy. Two hundred and sixteen million rands (R216 million) was allocated to GNT to turn around the entity into a viable public transport company.
To date, almost all outstanding debts to creditors have been settled. We have reduced the excess staff to acceptable bus industry norms to make GNT a viable entity. We will continue to monitor the turnaround strategy to turn GNT into the transport company of choice in the province.
RISIMA
Honourable Members, we are happy to announce that RISIMA is a financially viable institution and is no longer dependent on a government grant.
RISIMA, in partnership with Polokwane Municipality, is implementing a project to develop one thousand (1000) affordable housing units in Extension 72 and 79 of the Seshego Housing Development Project. This is meant for the gap market, targeting low and middle income earners who otherwise would not qualify for bank mortgage loans. This initiative will create approximately 10 000 indirect and direct local jobs.
Honourable Speaker, engagements with Ba-Phalaborwa Local Municipality in Mopani are at an advanced stage to replicate a similar housing stock package targeting low and middle income earners who qualify for CoGHSTA backed Finance Linked Individual Subsidy Program (FLISP).
Biodiversity and Natural Resources Management
Madam Speaker, Biodiversity is globally identified as the cornerstone of socio-economic growth and sustainable development. Being a province rich in biodiversity, Limpopo has to establish mechanisms in which its biological assets can be used sustainably to contribute towards dealing with socio-economic ills such as unemployment, poverty and inequality.
Recently, under the People and Parks Programme, the Minister of Agriculture, Land Reform and Rural Development (DALRRD), together with the Minister of Environment, Fisheries & Forestry (DFFE) awarded the long awaited Lekgalametse restitution programme. We want to congratulate the community of Maruleng and commit that we will work with them to achieve the intended outcomes.
In the 2021/2022 financial year, the department created over one hundred and sixty (160) jobs through the Expanded Public Works Programme in twenty-five (25) nature reserves across the province.
In partnership with the relevant SETAs and the National Department of Forestry, Fisheries and Environment (DFFE), the department will provide support to communities, through funding, to pursue biodiversity economy initiatives that includes the cultivation of indigenous plants that are part of the twenty (20) nationally prioritized for food or medicinal purposes. To date, three (3) Limpopo community projects have been funded by the national government to cultivate and process indigenous plants - Hi-hanyile and Dloziliyakhala Medicinal and Essential Oil Projects have received R5 million each to fund production infrastructure, whilst Makonde Multi-Purpose Farming and African Ginger project received ten million rands (R10 million) to fund similar.
Madam Speaker, we will continue to implement the partnership with SANParks and Kruger National Park to implement the Greater Kruger Strategic Development Programme (GKSDP).
In this financial year, we will reignite the Shangoni Gate, which is a catalyst for economic development to communities in Giyani and Collins Chabane Local Municipalities.
Environmental Education and Awareness
Madam Speaker, the department continues with its environmental education and awareness programmes. Traditional Leaders continue to show interest in environmental management and issues related to natural resource management within their jurisdiction. To date, the department has conducted over twenty-nine (29) capacity building initiatives amongst Traditional Leaders and Traditional Health Practitioners, even under the COVID-19 pandemic limitations.
In partnership with SALGA and DFFE, the department will be training councilors on their role in environmental decision-making processes in June 2022.
Madam Speaker, in a recent engagement with the South African Human Rights Council (SAHRC), the department was commended for its sound environmental management plans.
Madam Speaker, to enhance the contribution of the wildlife industry to sustainable development and economic growth for the province, the department continues to partner with communities through co- management agreements to manage community nature reserves. We believe this is important to transform the sector and bring on board Previously Disadvantaged Communities to benefit from the products and services in their parks.
The department has a partnership with DFFE, through the People and Parks Programme, to recruit over one hundred-and-eighty-six (186) youth beneficiaries to participate in the removal of bush encroachment in nature reserves. This programme will run for a period of 12 months.
Integrated Environmental Management
Madam Speaker, in the 2021/2022 financial year, the department issued over one hundred and sixty (160) decisions on EIA applications for infrastructure projects, inclusive of basic services provision, with an estimated value of three billion rands (R3 billion). These developments have the potential to create approximately five hundred (500) job opportunities once construction has commenced on the approved infrastructure projects.
In addition, we will continue with the fight against poaching of rhino, lions, pangolins and the exploitation of fauna and ora. Afterall, we remain responsible for the sustainability of our environment for the generations to come. This will remain our legacy.
Conclusion
Honourable Speaker, it is with great pride that I announce that my department obtained a clean audit opinion in the last financial year. This was achieved through the dedication and commitment of the management and staff of the department. We are working hard so that this audit opinion is maintained.
Madam Speaker, please join me in expressing my heartfelt congratulations to the Limpopo Gambling Board and RISIMA for obtaining clean audit opinions during the 2020/21 financial year, an accomplishment that their Boards have consistently maintained over the last two (2) years. We intend to sustain this clean audit status during the current financial year, while working hard with LEDA and LTA to join the course.
Honourable Members, the department has been allocated a budget of One Billion Five Hundred and Eighty-Five Million, Eight Hundred and Seventy-Eight Thousand Rands (R1 585 878 billion) for the 2022/2023 financial year.
Out of this allocation,
• Seventy five million, six hundred and fifty-two thousand rands (R75 652 million) will be transferred to the Limpopo Gambling Board;
• Seventy six million, six hundred and ninety-seven thousand rands (R76 697 million) will be transferred to the Limpopo Tourism Agency, and
• Five hundred and ninety-six million, six hundred and thirty-four thousand rands (R596 634 million) will be transferred to LEDA
Let me take this opportunity to thank my family for being the pillar of my strength at all times. I must also extend my gratitude to the management of the department, led by the Acting Head of Department, Mr Matodzi Rathumbu, the Boards and CEOs of our entities for their support and hard work in ensuring that we achieve our mandates. My gratitude is also extended to all officials of the department and entities for their commitment and hard work.
I must also hasten to express my gratitude to the Honourable Premier of Limpopo, Stanley Chupu Mathabatha, my colleagues in the Executive, the Standing Committee on Public Accounts (SCOPA) under the leadership of Honourable Rodgers Monama, the Portfolio Committee for Economic Development, Environment & Tourism led by Honourable Donald Selamolela and this august House for their continuous support and oversight on the department that I lead.
Ladies and Gentlemen, let us all work together to build the economy of the province. Let us give the people and the youth in particular, hope about the future.
Honourable Speaker & Honourable Members, it is my pleasure to extend an invitation to members of the House to the 16th edition of the Marula Festival that will be taking place in Phalaborwa on 09 April. We remain at the forefront of re-igniting economic and tourism revitalization.
I Thank you!
