TRADE AND INVESTMENT LIMPOPO
OF SOUTH AFRICA

“The link to business growth”

Agriculture and agro-processing

 QUALIFYING ASSETS ARE:

  • Owned land and building at cost              100%
  • Leased land and buildings (cap. @ 15%)            100%
  • Owned machinery and equipment @cost           100%
  • Leased machinery and equipment     100%
  • Commercial vehicles owned and/or leased           100%

 What do you get?

Approved entities may receive a tax free cash grant on total investment in qualifying assets on the following scale:

Level of Investment Cumulative Grant receivable
(As a % of investment)
First $770 000 investment   10% p.a.
Next $1.5m ($770 000- $2.3m)      
      6% p.a.
Next $2.3m ($2.3m - $4.6m) 4% p.a.
Next $3.0m ($4.6m - $7.7m)  3% p.a.
Next $3.8m ($7.7m - $11.5m)  2% p.a.
Next $3.8m ($11.5m - $15.0m) 1% p.a.

  Opportunities 

An economic development strategy study has pinpointed the following major sectors to enhance the development in the Province:

  • Agriculture and agro-processing
  • Manufacturing
  • Mining
  • Tourism

Agri-business

The allocation of new water rights to previously disadvantaged farmers and changes in national water policy have made growth in the primary agricultural and agro-processing sectors feasible. Water is wealth to this sub-continent when you consider that only 4% of Sub-Saharan Africa is irrigated.

A number of dysfunctional state-owned irrigation schemes could be rehabilitated to create opportunities for private sector investment in partnership with local communities.

Other opportunities identified in the region include greenhouse production of cut flowers and baby vegetables, almond, peach, citrus and table grape cultivation, livestock production and pork weaning.

Mining

Complimentary to the mining efforts, opportunities are ripe for private sector investment in the manufacture of magnesium oxide, cement, lime-based products to granite. Seven economic development clusters have been identified for immediate expansion. Factory space and a sound support infrastructure are already in place.

Research indicates that scope exists for the development of a further 22 mines in the Dilokong region. This would require investment of $785 million and could create employment of 5 700 people.

Furthermore, a study commissioned by the Limpopo Provincial Government concluded that the Waterberg Basin coal field in the western parts of the Province has considerable potential for development including fuel-from-coal liquefaction.

Tourism

Tourism is recognised as one of the Province’s strongest comparative advantages. The region has recently gained international status following a decision by the United Nation’s agency, UNESCO, to recognize the Kruger to Canyons Biosphere Reserve as a protected environment of international conservation importance. The recognition further enhances the Limpopo Lowveld’s ambitions to become one of the world’s premier eco-tourism destinations.

Letaba Ranch and Manyeleti, two state-owned game and nature reserves bordering on the Kruger National Park to the north and South of Palaborwa, have already been opened to private sector development, enhancing the range of facilities in the region and its attractiveness to tourists.

Manufacturing

With it’s wealth of mineral and agricultural resources, its sophisticated infrastructure and its proximity to growing consumer markets in the rest of the sub-continent, the Limpopo Province offers many investment opportunities in the manufacturing sector.

These opportunities range from tanning, the cultivation of fruit and vegetables, the processing of meat, the manufacturing of jewellery, furniture and industrial chemicals and the rendering of light to medium sized engineering services.

Complimentary to the mining efforts, opportunities are available for private sector investment in the manufacturing and utilization of magnesium oxide, cement, lime-based products, and granite. Seven economic development clusters have been identified for immediate expansion and abundant factory space and sound support infrastructure already in place. These development clusters are Waterberg, Vhembe, Mopani, Capricorn and Sekhukhune.

Various organizations have already been successfully established in the Limpopo Province, which include the following:

Silicon Smelters (silicon smelting);

Anglo Platinum (platinum smelting);

Eskom (electricity generation);

Granor Passi (fruit juices);

Bonanza (furniture manufacturing);

Kanhym (meat processing).

 

  For mining and minerals ...

Read more

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