Task team to drive Lim economy

A TASK team aimed at industrialising the province would be led by economic development, environment and tourism (Ledet) MEC, Seaparo Sekoati.

The task team was formed as one of the key resolutions and ways forward of a mining round table summit that was held at Protea Hotel The Ranch recently.

Sekoati said the task team would support the universities of Limpopo and Venda to ensure they introduced a school of mining.

He said some communities still struggled with access to basic needs such as water and electricity and it was unbelievable that there were mining activities taking place in these areas without any assistance to local communities. He said the task team needed to deal with such issues.

“Limpopo has 78 mines currently in operation, with 91 mines in the pipeline. The task team members agreed that infrastructure should be developed and this will be done jointly with the relevant stakeholders.

“In 2012, a survey showed that Limpopo’s national gross domestic product contribution was 7,1%. Mining contributes 28,7% to the province’s economy.

“This year a labour survey showed that there were 70 000 people employed in mining in the province. Transformation of the structure of the economy is therefore imperative.

“The province’s executive council undertook to support a 10% goal of government procurement for cooperatives and small, medium and micro enterprises over the next five years,” he said.

“The National Development Plan (NDP) and the Industrial Policy Action Plan (IPAP) of the department of trade and industry (DTI) have identified industrialisation as the appropriate growth path for the country. The DTI rolled out ten special economic zones (SEZ) in the country and has in principle allocated two SEZ’s to Limpopo pending the finalisation of feasibility studies, provision of land and investment attraction to these areas.

“The SEZ in Tubatse will focus on downstream platinum group metals and related upstream manufacturing value chains.

“The SEZ in Musina will focus on logistics and transport because of its unique geographic location as a port to the rest of the African continent,” he said.

“To support the SEZ’s in provinces, government will make provision for the following incentives: budget for infrastructure for the SEZ’s, 15% corporate tax for investors, building tax allowance, employment tax incentive as well as VAT and duty free exemption. Mining companies should identify and cluster manufacturing related activities in line with SEZ policies.

Sekoati said there would be quarterly meetings to track the task team’s progress.