Friday 15 August 2014

Developing Limpopo


The Limpopo province is the latest region to be a part of South Africa’s goal to develop rural areas across the country. The Ministry of Rural Development and Land Reform have been appointed to the forefront of rural progress.

South Africa has a major mining industry, with the country’s economic foundation having been built upon it. It delivered great amounts of income, establishing and attracting big-business ventures. This led to the modernisation of urban South Africa.

Presently, as part of South Africa’s goal, malls are now common in rural South Africa, with many more under construction. The Limpopo province is now a rural infrastructure buzz, being included in this new development.

The arrival of luxury shopping to Limpopo has benefitted young rural consumers as well as their families. This owes to convenience of close proximity and therefore saving money on travel.

During 2011, over 308billion rand (approximately $284million USD at the time), was spent each year on shopping by people residing within rural areas and townships of South Africa. This represented 41% of the country’s consumer spending total. The country is home to the largest retail market within sub-Saharan Africa and the 20th largest worldwide. Furthermore, the country’s consumer retail growth is experienced more within the rural areas than the metropolitan regions. Retailers as well as property developers have looked towards this huge and increasing rural market, to attract consumers with shopping malls.

A local builder of Limpopo, Kabelo Seolwana claimed that business has increased owing to the proximity of a new mall to his offices. When stocks are required, the mall can be relied upon for immediate purchases.

Both property developers and retailers explain that the malls generate new and sustainable employment aimed towards the villagers. 900million rand (approximately $85million USD) is being invested towards a new development, the Thavhani Mall, expected to open between 1,500 and 2,000 permanent jobs in Limpopo’s Vhembe district.

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