MAIN ECONOMIC SECTORS

Mining and quarrying is a dominant sector in the Limpopo Province, contributing 90.9 growth value add to provincial GDP in 2020. The mining sector is diverse and rich in the following key minerals: Platinum Group Metals, coal, diamond, chrome, titanium, vanadium and iron-ore. Antimony, a highly strategic mineral found in large quantities in China, is another of Limpopo’s major assets.

Coal

Limpopo Province is home to three coal hotspots of the Republic of South Africa, the Waterberg Coal basin in Lephalale, Soutpansberg Coal basin in Vhembe and the Springbok Flats Coal basin across Capricorn and Waterberg Districts. Limpopo is home to both thermal and coking coal.

Mineral Beneficiation

Beneficiation around Limpopo’s mineral wealth presents an opportunity for the following key Platinum Group Metals, coal, diamond, chrome and iron-ore. The Province is currently investigating possibilities for steel manufacturing in the Phalaborwa area and various smelters around the beneficiation of iron-ore to augment the existing smelters for

Key Mineral Opportunities

High Opportunity

Auto catalyst production and diesel particulate filters in both the short term (less than five years) and medium term (five to ten years).

Medium opportunity

Mass production of platinum jewellery banks leading up to mass market finished jewellery for export.
Specialist catalysts.

Chromium and Ferrochrome

Entry into this major part of the chromium/stainless steel industry requires extensive financial resources. To achieve the requisite economies of scale the ferrochrome smelters must be equipped with large furnaces necessitating a high capital outlay.

Recent advances in the ferrochrome industry have seen significant improvements in process design with a saving in operating costs (for example Outotec’s preheater offers considerable electrical energy savings).

Chromium and Ferrochrome

Iron, Vanadium and Titanium Value chain

None of these commodities play an important role at present in the Limpopo Province, but their potential is large. Iron ore is mined in Thabazimbi (Waterberg District) and railed south for further processing.

The almost entirely untapped resources in Limpopo are mostly in the form of titaniferous magnetite that often contains payable levels of vanadium. This combination of the three metals forms the rationale for them being combined in a single section. The resource is said to be huge and is scattered over a wide area. For one mining operation, it is not unrealistic to anticipate the simultaneous production of two and possibly even three of the metals.

The following opportunities are seen as distinct possibilities:

Production of pig iron from low vanadium titaniferous ore with high titanium content
Production of pig iron and vanadium slag

Agriculture & Processing

Agriculture is the backbone for the development of the food and beverages manufacturing sub-sector in any economy. The Agricultural Sector plays an integral part in the Limpopo economy. The sector produces raw materials for local consumption and export markets. Based on the number of agricultural activities currently taking place in and around the Limpopo Province it is certain that several opportunities do exist. The raw materials could be beneficiated to add value to the produce and to increase the profits made on produce.Limpopo is known as the fruit basket of South Africa with climatic conditions providing for a variety of fruits and vegetables. The Limpopo agricultural sector contributed approximately 139.5% to the national GDP for 2020. Agriculture is pivotal in the economic and social development of the Province as far as employment, food production and export is concerned. The sector contributed 11.7% towards the provincial GDP at current prices for 2020

The Province of Limpopo produces South Africa’s total agriculture produce as follows:

75% of magoes,
65% of papapayas
25% of citrus, bananas, lichis,
65% of avocados
60% of tomatoes
35% of oranges
285 tons of potatoes annually

More than 45% of the R2 billion annual turnover of the Johannesburg Fresh Produce Market comes from Limpopo. Both the Mopani DM and Waterberg DM have a comparative advantage in agricultural production.

TOURISM

Limpopo Province is strategically located as the gateway into the rest of the African Continent. It provides entry into African markets in terms of tourism, trade and cultural exchange. In the North of the province, Vhembe district, Limpopo Province is home to Mapungubwe World Heritage site, a world known iron age site in South Africa which harbors evidence of trading between Africans and Asians in the stone age.

1 million hectares in Limpopo is dedicated to game farms and provincial nature reserves (48) that offer various consumptive and non-consumptive tourism opportunities.
The Kruger National Park, South Africa’s prime ecotourism destination adds an additional 1,9 million to this natural experience.
There are three national parks in Limpopo, these include the Kruger National Park, Marakele National Park and Mapungubwe National Park (also part of the Mapungubwe World Heritage site).
Limpopo is also home to two registered UNESCO Biosphere reserves, namely the Kruger to Canyons Biosphere Reserve and Vhembe Biosphere Reserve.
Two sites in Limpopo Province have world heritage status, namely Mapungubwe and Makapan’s Valley.
Limpopo is further part of two trans-frontier conservation areas namely the Greater Limpopo Trans-frontier conservation area and the Mapungubwe trans-frontier conservation area.
Limpopo also has two Ramsar sites, 28 registered natural heritage sites and still many un-proclaimed cultural and natural areas.
Limpopo is further home to three national centres of endemism, namely the Soutpansberg centre, Wolkberg centre and the Sekhukhune Centre.
Limpopo is positioned as a preferred ecotourism destination with its large formal and informal protected area network bestowing unique experiences.
The Limpopo Tourism competitive advantage in terms provincial tourism growth strategy is centred on the following key tourism clusters:

Family and Recreation Cluster
Special Interest
Golf and Game Cluster
Mega-Conservation Cluster
Safari and Game Industry Cluster
Meetings Incentives Conferencing and Events (MICE)

RENEWABLE ENERGY

Opportunities in the Renewable Energy market for South Africa have a positive outlook. The South African government has already included Renewable Energy in the Integrated Resource Plan 2019. This plan highlights Renewable Energy sources as a great complement to energy power in South Africa’s coal power.

MINISTER for Natural Resources and Energy Gwede Mantashe in mid-August 2021, gazetted the amendments to Schedule 2 of the Electricity Act, lifting the generation threshold for private companies to generate up to 100 megawatts (MW) of electricity for their own use and sell excess energy to the grid, leaving the door open for the National Energy Regulator of South Africa (NERSA) to consider applications.

Limpopo has great potential for renewable energy and alternate energy projects in the field of bio-energy, solar energy as well as medium scale nuclear energy plants

Bio Energy

In 2014, the South African government announced the introduction of biofuel blending mandates of 2–10% for bioethanol and 5% for biodiesel. The current supply of biofuels is far below the required blending requirements and therefore the market for biofuels is enormous. Limpopo prides itself as a leading agricultural producer in the region and as such has the potential to grow a wide variety of feedstock for bio fuels. Examples include sugar cane, sweet sorghum, soy bean, jetropha, moringa, and not limited to the mentioned.

Solar Energy

The climatic conditions in Limpopo favour the development of solar energy production with very limited interruptions to solar absorption. Currently the domestic market for solar is very big indeed with less than 2% of Limpopo’s roofs fitted with solar panels. The applications for solar plants range from small domestic through to large scale supply to the grid. Larger projects will also benefit from the recent legislation, paving the way for projects generating up to 100MW energy.

INDUSTRIAL INFRASTRUCTURE AND TECHNOLOGY

Limpopo Province’s industrial parks are host to enterprises in the manufacturing and services sectors across the five districts of the Province. In line with promoting more investment in these industrial parks, the agency is collaborating with the Department of Trade, Industry and Competition to refurbish the current fleet of industrial parks in the Province subsequently increasing lettable space for rentals which, consequently, expanded it’s manufacturing capacity. The development is in line with Limpopo’s industrialisation agenda, with Phase 1 of the revitalisation in both Seshego and Nkowankowa completed. This includes security features to the entire industrial area and plans are afoot to commence with phase 2 implementation. The upgraded infrastructure will greatly benefit manufacturers seeking immediate start-ups.

BROADBAND AND SCIENCE AND TECHNOLOGY PARK

Limpopo Connexion, LEDA’s subsidiary company is rolling out broadband in the Province to support the socio-economic development imperatives set out by the National Development Plan and Limpopo Development Plan. The stimulation of economic development is embedded in cost-effective communication technologies that are available, accessible, reliable and affordable. The Broadband Act calls for equal access to internet connectivity. With good broadband infrastructure the costs of doing business are reduced, because of that the country is transformed towards a knowledge economy, thereupon realising the benefits of the fourth industrial revolution (4IR).

Forty-four (44) sites have been connected to the network, offering free Wi-Fi services to students at Library Gardens and to the broader community at the Polokwane Civic Centre.

The second flagship Programme embraced by Limpopo Connexion, shareholders and key stakeholders is the Science and Technology Park (STP), promising to unlock Limpopo’s potential as amongst, the regions of the world to establish a World Class Information Technology Science Centre. To date, a site for establishment has been approved; the environmental impact studies completed & signed off, the draft commercial model, business plan and artistic impression also completed. This ultimate mega project will culminate into an industrial ecosystem, immensely contributing to the socio-economic development of Limpopo Province in the long term.

Mining

Major mining operations takes place in Limpopo Province. These mining operations and activities contributes 20% of the province’s economy. Substantial mineral reserves in the province includes:

Platinum Group Metals

Diamonds
Coal
Chrome
Iron ore
Copper

Platinum Group metals is the biggest mineral found in the Sekhukhune and Waterberg districts of the province, while coal reserves is predominantly found in the Waterberg