From avocados to minerals: Ramaphosa calls on provinces to build on their strengths

President Cyril Ramaphosa has called on ministers and Members of the Executive Council to collaborate in their respective portfolios to capitalise on their strengths.

Ramaphosa addressed a meeting between the national executive, the Limpopo executive council and the Polokwane municipality council chamber on Friday.

He encouraged the provincial and national structures to work together to tap into the country’s economic potential.

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“What will be critical in the coming months is a razor-sharp focus on the actions that we all need to take to enable provinces to leverage their respective endowments – be they avocados, minerals or citrus fruit – to ensure that endowment is more effectively used for economic growth,” said Ramaphosa.

“Provinces need to use their comparative advantages to drive economic activity.

“Premier, you have already defined your province as being very good in various areas, such as human capital, youth capability, good education, minerals, [and] agriculture —  that should stand you in good stead.”

However, the country needs to move beyond diagnosing its problems and start working to overcome the obstacles.

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“It is critical that we understand and work to resolve the structural challenges facing our provinces and local governance that are holding back investment and job creation,” said Ramaphosa.

“It is important that we ask ourselves: what is holding us back?”

Ramaphosa on Limpopo’s potential

Ramaphosa further lamented the logistics sector, which he said was holding the country back. This is amid the Transnet crisis.

Transnet CEO Michelle Phillips told the Standing Committee on Public Accounts last month that the entity had a R51 billion maintenance backlog “purely to restore the network”.

Transnet is in the early phases of its recovery plan. Phillips stated one of its key goals was to return to a 2017/18 freight volume high of 226 million tons.

To do so, eliminating debt and restoring the rail network to an optimal operating state was paramount.

Additionally, Transnet will need to spend a further R19 billion over the next five years to ensure future network sustainability.

Replacing an ageing fleet and equipment, Phillips said this would be hampered by an industry turnaround time of 18 to 24 months.  

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Transnet, however, also reported a freight volume increase over the last financial year from 149 to 154.4 million tons.

“The logistics sector is holding us back from exporting the products we produce,” said Ramaphosa.

“It affects mining and agriculture. Our farmers, from Limpopo and throughout the country, require a good logistical infrastructure to take their produce to markets. We are working with social partners to address this issue.”

Minerals

According to the president, the province is also positioned to lead the country in a number of key sectors including agriculture, tourism, freight and logistics, and also mineral resources.

“The province is set to play a major role in the green economy transition,” said Ramaphosa.

“Limpopo possesses a number of critical energy transition minerals, including platinum, and has been designated as a site for the proposed hydrogen valley.

“We are pleased [with] the work already underway in this regard.”

In 2022, mining giant Anglo American launched a 290-tonne hydrogen-powered payload mine haul truck in Limpopo.

The truck – which was converted from diesel to hydrogen – is also powered in part by lithium-ion batteries – a world first.

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At the time, Ramaphosa said the move was a step towards developing the hydrogen economy in the country.

“The green hydrogen economy has been billed as a new frontier for clean energy as it emits low carbon emissions with a global potential of about $300 billion in exports,” said Ramaphosa.

Additional reporting by Jarryd Westerdale