This was revealed at a briefing on investment, infrastructure, and economic development held at the Hoedspruit Community Hall on Wednesday, April 11 by MLM. MLM mayor, Tsheko Musolwa said that the 11.3% paying residents comprise mostly people living in Hoedspruit town and the farming community. Discussions at the briefing included future investment and development plans by MLM and were presented by a panel appointed to assist in the generation (mobilisation) of funds.
“The current budget for 2022/23 is R452m whereas other areas’ budgets are in the billions. Due to the limited budget, it is necessary to achieve greater financial stability,” Musolwa said. He said MLM’s water and sewerage are dire and that it was decided at an IDP meeting to source ‘external budgetary instruments’ to generate more capital. “Collectively tourism and agriculture bring in about R4 billion in revenue and losing these sectors due to failing governance may turn Hoedspruit into a ghost town,” he said.
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The municipal manager of MLM, Nanki Hoaeane, presented the municipality’s investment strategy. “The mayor gave strategic direction, and an analysis was conducted. We need to grow revenue, but MLM cannot do it on its own, we need to attract investment to retain and sustain,” she said. She said MLM does not have a master plan but has the desire to attract funding. According to her MLM advertised for companies in the investor sector and two companies were selected to present plans. “MLM is not paying for this exercise, the advisory companies are doing it at risk,” she said.
A presentation by the transaction advisor of Kgora Africa Fund, Derrick Montshoe, gave a generic and broad outline of what the priorities of their investment may look like. “Our priorities include renewable energy, a solar photovoltaic facility and an agri-photovoltaic facility, a communications hub with Wi-Fi in both rural and urban areas.,” said Montshoe. “It will also include an agriculture hub and logistics, tourism, and hospitality. The municipality will get a 5% shareholding in all projects, with 30% local sub-contracting, and over 10 000 jobs will be created.,” he said. “This will lead to municipal capacity building and attraction of further investment,” Montshoe concluded.
