Provincial economic recovery plan to create more jobs

The Premier of Limpopo, Mr Chupu Mathabatha, in his speech during the State of the Province address at Lebowakgomo Legislature on Thursday, 24 February 2022, emphasised that the economic recovery plan will create more jobs in the province.

“To achieve the aspired growth levels, to support employment creation and to fortify the fight against poverty and inequality, the province need to promote growth –enhancing plans. There is a need to position Limpopo Province as an investment destination of choice for both domestic and foreign investors, “said Mathabatha.

Premier also said that such investment will help to enhance the much needed creation of employment, particularly for the young people.

According to Stats SA Quarterly Labour Force Survey (QLFS) for period 1 April 2021 to 30 June 2021 reveals that one out of every two people in the Limpopo labour force is unemployed. At 49.9%, Limpopo has the third highest expanded unemployment rate after the Eastern Cape (53%) and the Northern Cape (50.3%).

To reverse the economic damage caused by the Covid-19 pandemic, Mathabatha said the total investment and intervention by the economic recovery plan is projected at around R170 billion and will create 48 000 jobs in the next five to ten years.

“In addition ,the implementation of the Limpopo Industrial Master Plan has also received R208 billion in investment pledges from Limpopo Investment Conference and that will go a long way in helping to industrialize the province and thus creating the much –needed jobs for the people.”

Amongst other investments projects, the Masingita Group had pledged R5.46 billion for the construction of the Nkuna Smart City in the Collins Chabane Local Municipality. Mathabatha announced that the construction of Phase 1 of the Nkuna Smart City has already commenced and it is anticipated to create 585 construction jobs and 325 permanent jobs.

Mining dominated the real economy, at 25% of the provincial economy. Limpopo Province accounts for 24% of the national mining input. The province has a huge reserves of coal, platinum, chromium, uranium clay, nickel, cobalt, vanadium, limestone and tin. Limpopo’s assets include the largest diamond mine in South Africa (De Beers Venetia Mine), the biggest copper mine in South Africa (Phalaborwa Mining Company), the biggest open-pit platinum mine in the country and the biggest vermiculite mine in the world. The province has 41% of South Africa’s platinum group metals (PGMs), 90% of South Africa’s red-granite resources and approximately 50% of the country’s coal reserves.

In reducing high unemployment levels and grow provincial economy, Mathabatha said:” Sefateng Chrome Mine is rolling underground mining infrastructure in Sekhukhune with an investment value of R1, 2 billion.The project is anticipated to create 350 construction jobs and 600 permanent jobs during full production”.
“I am also happy to report that Ivanhoe Mines is also living up to its investment commitments. To date, the company has already spent R7 billion of the R9 billion commitment on mining infrastructure in the Waterberg Region. The remaining R2 billion will be spent in this calendar year and so far, the investment has created 778 jobs, and this figure is expected to rise to 1000 jobs by December 2022,”said Premier.

Mathabatha further said ,with regard to the investment commitment of R48 billion from Anglo American & De Beers, already R3,9 billion will be spent on the Mototolo Mine in Sekhukhune, in the first quarter of 2022.The project has extended the life of the mine, thus helping to sustain the existing jobs.
Tourism in Limpopo contributes significantly to the national and provincial economies of South Africa, with more than 5% to Limpopo’s economy and 3% to the national economy.

Mathabatha shed a light about two hospitality projects that will boost provincial tourism sector and create permanent jobs for the people of the province.
“With an investment value of R250 million, the construction of Amazin Hotel in Capricorn Region is expected to commence in September 2022.The project will create a good number of jobs both during and post construction.”

“I am able to report that Shekinah Lion & Game Lodge has already spent R47 million of the R60 million commitment for this hospitality project in the Waterberg Region. The facility will create permanent jobs through hospitality services,” said Mathabatha.

The agricultural sector has proven itself as a steady source of employment in Limpopo during a time in which 139 000 people lost their jobs, according to Statistics South Africa’s latest quarterly labour force survey(April 2021-June 2021).

Chupu Mathabatha said ZZ2 had pledged R128 million for the construction of a pack-house in Mopani Region. A total value of the R128 million commitment has been spent. The pack-house is expected to be fully operational in April/May 2022 and the project is expected to create 250 jobs when fully operational.