Positive trend in local economy

The development of a number of new buildings in the city indicates that the local economy is healthy and that investors’ confidence in the long term growth of the city is restored.
New buildings like the fully fledged Jeep, Mitsubishi, Fiat and Alfa dealership of Mercurius Motors at the southern entrance to the city that will be operational by the beginning of December shows that investors are ready to invest in the local economy. Jon White, Dealer Principal of Mercurius Motors said that the investment is an indication of the company’s commitment to the customers that have invested in their brand.
The adjacent Audi dealership that will be in business from 1 September is a state-of- the-art facility and according to Gary Carlisle, Dealer Principal of Audi Polokwane, it will accommodate 52 staff members.
The motor city development next to the Thornhill Shopping Centre will also provide opportunities for investment and the site of MGM Motors were handed over to the contractor yesterday (Wednesday). The buildings for a full fledged Jaguar and Land Rover dealership should be completed by mid 2017, according to Francois Heystek, Dealer Principal of MGM Motors.
The Park Inn Hotel next to the Polokwane Golf Club will also be open for business towards the last quarter of the year, Mafasi Lekota, Executive Director of the developer Amazin Group said. “The hotel will be operated by the Radisson Group,” Lekota confirmed.

Glen Steyn, local consulting economist says that although the economic growth rate in Limpopo has been steadily declining from a high of 3,2% during 2011 to approximately 1% in 2015, there are signs that the provincial economy should start finding traction in 2016 and that economic growth can slowly start increasing thereafter.
“Platinum prices have risen by almost 40% since the beginning of the year and coal prices are slowly beginning to firm. The development of new coal mines in the province and planning of the Special Economic Zone in Musina-Makhado are also gathering momentum. Long-term weather forecasters are expecting a better rain season in 2016/17, which will be fantastic for food production. These developments will be positive for economic growth in Limpopo and will create additional demand for trading, financial and professional services from Polokwane city,” Steyn said and added that within Polokwane, the R640 million investment by Sanral in the eastern ring road will significantly improve mobility from the city to other nodes. Minister of Trade and Industry Rob Davies has also announced the redevelopment of the Seshego Industrial Park. Polokwane has awarded several city properties to a company with a strong track record of experience to lease and develop.
According to Steyn, business confidence rose for the first time at national level in July after several years of steady decline, mainly due to the stronger Rand and improved merchandise exports.
“These indicators all suggest that the economic doom and gloom that has been affecting everybody negatively could be almost over and that some improvement could lie ahead. There is still much to be done, such as essential infrastructure development in the municipality and the province and raising a broad standard of authentic leadership in all our institutions,” Steyn believes. He predicts that the spring of 2016 could also herald new and much desired growth in the economy.
Ashley Rasebotsa, President of the Polokwane Chamber of Business is also positive about the future of the city and says that the recent property developments in Polokwane are encouraging and it shows that business confidence is positive and growing. “I am specifically referring to the new motor dealerships showroom as you enter Polokwane and the one at Motorcity. As the chamber we are delighted that municipality will be lifting the moratorium on development as this is affording the business community opportunities to invest in properties within the city. The developments are good for the city as there are jobs that are created during the construction phase. The Chamber believes that the property developments in Polokwane are a good sign of Polokwane as the preferred investment destination by businesses,” Rasebotsa concluded.
The municipality is also involved in developmental projects and in her State of the City Address that was delivered on 22 June, Executive Mayor Thembi Nkadimeng alluded to future developments such as the provincial theatre that will be developed in Oos Street between Grobler and Thabo Mbeki streets and land to be acquired for student accommodation in the downtown area for which an amount of R20 million has been set aside.

Story and photos: BARRY VILJOEN
>>barryv.observer@gmail.com

Featured photo: The new dealership for Jeep and Mitsubishi that will be operational by December is nearing completion.