During his state-of-the province speech in the Limpopo Provincial Legislature, Premier Ngoako Ramatlhodi said there had been an unprecedented increase in direct investments in the province during the past two years, mainly from the mining sector, which had become a major driving force in the local economy.

Ramatlhodi pointed out that these huge financial injections were mainly responsible for the province's positive growth rate, which exceeded the national figure in 2002.

The mining sector had contributed R15,6 billion to the provincial economy. As a result of this, the province was now within striking distance of some of the financial targets it had set itself.

Agriculture had contributed a solid R1,6 billion, and the provincial government would be encouraging private enterprise to invest increasingly in agro-industries.

Private investors had already provided R20 million to develop the Marula project in Phalaborwa. A sugar mill on the banks of the Blyde River, as well as tomato, avocado and soya processing plants, are among several other enterprises offering profitable returns.

A start had also been made with a six-year plan to rehabilitate 160 defunct irrigation schemes. More than 22 000 hectares of irrigation land would be made available through this initiative.

An effort would also be made to settle previously disadvantaged farmers on 2200 000 hectares of state land. The provincial government would provide technical assistance to these farmers.

Hoedspruit Airport

The Premier announced that the national cabinet had approved the granting of international status to the Eastgate Airport at Hoedspruit. The necessary logistical additions to the airport would be discussed during the next few months with various government departments.

The province now has two international airports, as Polokwane/Gateway will retain its status.

Ramatlhodi then went on to elaborate on plans to create an industrial development zone at Gateway. Agriculture and mining would be the two sectors, which would initially benefit most profitably from these plans. Manufacturing industries, in particular, were expected to become more competitive on international markets, after the establishment of such a zone.

A large number of jobs could be created through this initiative, as industrialists in these fields usually maintained a consistent growth rate. Gateway would hopefully generate its own income, as its capacity increased.

With thousands of tourists streaming into the province, due to an aggressive marketing campaign, cultural sites would be utilised effectively when harnessed to stimulate this trend.

Reaction

Initial reaction to the Premier's speech was varied, with members of the Legislature expressing cautious optimism that some of his promises would be effectively carried out.

The African National Congress applauded the Premier's commitment to social development and job creation, saying the province needed all the investments it could get.

However, the African Christian Democratic Party (ACDP) said Ramatlhodi had failed to address some crucial issues, notably the poor service delivery and financial accountability of local councils. The party also claimed the R153 million earmarked for road construction and maintenance, was hopelessly inadequate.

At the time of going to press, other opposition parties were still formulating their responses.