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The traditional way of doing things has not yielded our desired results, our people, especially the youth, are getting impatient, hence it is time for us to kick the box and start thinking afresh.

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Sizwe sama Yende

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Limpopo premier, Dr Phophi Ramathuba, has decried the province’s 31.9% unemployment rate – warning that if new ideas were not developed, the jobless were getting impatient.

The province’s contribution to the national Gross Domestic Product had risen from 7.2% to 7.7%, Ramathuba said, but the stark and painful reality, was that the unemployment rate did not change.

Ramathuba said that the high unemployment was the reason her government was still steadfast on developing Special Economic Zones (SEZs) – “akin to planting seeds in fertile soil knowing that it will germinate, grow and bear fruits.”

“The traditional way of doing things has not yielded our desired results, our people, especially the youth, are getting impatient, hence it is time for us to kick the box and start thinking afresh,” she said.

Studies and incidents in developing countries have shown that the youth, faced with joblessness and poverty, were likely to revolt.

The province has been given approval to establish two SEZs – the Makhado Musina SEZ (MMSEZ) north of the province in Vhembe and the Fetakgomo-Tubatse Special Economic Zone in Sekhukhune.

The MMSEZ is specialises in energy and metallurgy, agro-processing, logistics and manufacturing. It will see the establishment of a smart city. The Fetakgomo Tubatse SEZ will specialise in mineral beneficiation, renewable energy, agro-processing and pharmaceuticals.

SPECIAL ECONOMIC ZONES

Ramathuba said that matters that delayed the operationalisation of MMSEZ had been resolved.

“Six months ago, having spent enough time understanding the challenges towards the operationalisation of the long-awaited MMSEZ, we have developed a six-point plan and directed the MEC for LEDET (Tshitereke Matibe) to attend to all the outstanding issues that affected this bedrock of our industrialisation agenda,” she said.

“Unlike MMSEZ, the Fetakgomo-Tubatse Special Economic Zone is a low hanging fruit, abuzz with potential, just waiting for us to plug in.  Our recent meeting with the Minister of Department of Trade Industry and Competition (DTIC) resolved to finalise the process of designation of the Fetakgomo-Tubatse Special Economic Zone by doing, amongst others, stakeholder engagement.” 

Ramathuba said that the province’s 4th Investment Conference was a resounding success, raising up to R120 billion in pledges, far surpassing the R50 billion the government had targeted.

“Even more pleasing is that 60% of the recent pledges are earmarked towards renewable energy, which is a panacea to the current energy crisis,” she said.

The province also received pledges from the 2025 Mining Indaba in Cape Town. Ramathuba said that Neuromorphogenics Africa (Pty) Ltd, in partnership with Mukhufi Agro-Processing and Essential Oil, a local entrepreneur, made a R9,8 billion investment pledge for Mopani Solar Project.

“Solar and wind projects in Mopani are breaking ground and mines in Fetakgomo-Tubatse are pioneering solar ventures, ensuring sustainable energy for our growing industries,” Ramathuba said.

SUPPORT FOR SMALL BUSINESSES

Ramathuba said that 30% of the province’s procurement spend had been ring-fenced for the SMMEs and Cooperatives.

She said that the  economic cluster had been directed to devise implementing mechanisms that would improve the participation of all the designated groups - rural women, youth and people with disabilities - in the economic activities.

“Honourable Members, you will be pleased to know that for the period April 2024 to January 2025, as a province, we have achieved a 30-day invoice payment compliance rate of 99.78%, placing us among the top two provinces in the country. This, we believe, has a greater impact on how we continue to support business and grow the economy of the province,” Ramathuba said.

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