Seaparo Sekoati
Increasing its contribution to the national economy, raising its skills level and reducing dependence on primary industries of mining and agriculture are some of the challenges that Limpopo has to overcome as it seeks to elevate its growth trajectory.
Although Limpopo has the fastest rate of growth in contribution to the national economy, it still contributes 7% to South Africa’s GDP, a level it has hovered around for the last decade or so. Seaparo Sekoatiti, the MEC for economic development, environment and tourism says the provincial government has set itself the objective of increasing Limpopo’s contribution to GDP from 7% to 8% by the end of this term of government in 2019. He reiterated this goal at the recent Limpopo Economic Summit, held in Polokwane.
Sekoati says that the province needs to change its economic profile and eventually employment profile. “Our economy is dependent on primary industries like mining and agriculture and is thus vulnerable to shock such as a fall in commodity prices, whether in mining or agriculture” he says.
He also adds that having government as the largest private employer is not ideal. “Our labour market suffers from a low labour absorption rate because of the skills mismatch in our economy.”
Solly Kgopong, the head of the department at says to address these challenges the province has adopted an industrialisation strategy that rests on minerals beneficiation, agro processing and an energy hub to grow alongside tourism. These are contained in the Limpopo Development Plan (LDP)
Acting Director General of the province gave a detailed picture of progress made in achieving some of the LDP targets . The province aims to maintain a growth trajectory of at least 3% to 2020 and increase its matric pass rate from the current 72% to 80% by 2020 and create 429 000 jobs in that period. This is meant to help reduce the unemployment rate to 14% from the current level of 19.4%.
The province has a number of key infrastructure projects. The most significant of these is Strategic Infrastructure Project (SIP)1 which is the largest of 18 SIPs has a value of R842-billion. The projects is the centered on the Waterberg coal line to Richards Bay and has seven projects currently under construction, while three have been completed and 21 are pre-construction, suggesting a strong pipeline of projects.
Kgopong says government has also identified the need to strengthen capacity at municipalities through Local Economic Development (LEDs). “We have to ensure that once we have communicated our development objectives, the LEDs responsible are crucial in ensuring that programmes are carried forward” he says. The department has partnered with Wits University to roll out a training programme for LED departments in all of Limpopo’s district municipalities.
The LDP notes that a municipality’s leadership must perform above average as a condition for sustainable development of the province.
“Our leadership has to rise to the challenge,” says Nchabeleng.