R40 billion plan for Limpopo, potential to create 20 000 jobs

Limpopo MEC for economic development, environment and tourism Rodgers Monama plans to turn the under-developed mining region of Sekhukhune into an economic hub, through investments of billions in the newly established Fetakgo/Tubatse Special Economic Zone (SEZ).

21 Years ago the Sekhunkhune district was declared one of the poorest

This comes 21 years after former president Thabo Mbeki declared the district one of the poorest in the country.

Monama said the key focus of the SEZ was to develop an industrial ecosystem in mineral beneficiation, agro-processing and manufacturing of green energy, which he said would create much-needed jobs for the people of Sekhukhune and the province at large.

In 2002, Mbeki visited the region and some of its 28 mining companies, after which the former president declared the district one of the poorest in the country.

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Mines ordered to take more social responsibility

Mbeki ordered mining companies in the area to play their social responsibilities to turn things around. He also pleaded with the government of the day to unleash optimum resources to turn the region into an eco-nomic zone.

‘It is within this backdrop that I want to create jobs for locals through a funded pro-poor SEZ that would not only bring much-needed jobs in Sekhukhune, but also help fight the triple challenges of unemployment, poverty and inequality in Limpopo,” said Monama, soon after tabling his budget vote at the Limpopo Legislature in Lebowakgomo on Friday.

‘We have already developed a positive investment pipeline of 35 domestic and global companies to the tune of just over R40 billion.”

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Potential to create 20 000 jobs

This, Monama said has a potential to create 20 000 jobs in the next 5 to 10 years. According to Monama, eight of such investors have already con-firmed an investment of R5.5 billion to begin with economic opportunities in the Tubatse/ Fetakgomo SEZ.

Limpopo is one of the provinces that recorded a steady recovery in unemployment rate in the third quarter of the last financial year.

The province recorded a 5.3 percentage point decrease, 36.3% down to 31% in the forth quarter of the financial year.

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Monama said his department had planned to spend R10 million this financial year to bankroll businesses run and managed by youth.

The department has further set aside R85 million for the establishment of an infrastructure in which eight investors, mainly from China, will begin with massive economic infrastructire in the region, he said.

The Limpopo provincial treasury has allocated the department a total of R1.449 billion this financial year, Monama said.

The fattest slice of the budget went to environmental affairs with a budget of R385 million, while administrations received the second fattest slice with R356 million.

Economic development got R601 million, while the tourism sector received R106 million. news@citizen.co.za