Economics growth rate Short term Drought; Mineral Commodity outlook. Medium turn Hard pressed to achieve the SOPA 5% by 2019? Primary economic sector Mainly due to mining. contribution to GDP There will be pressure on the agricultural sector and its environmental resources. Labour force Net increase of at least 45000 per year. - shaped age profile of population Unlikely to grow substantially (mining is capital Employment rather than labour intensive). Could result in heavy pressure on the subsistence sector (food security) and its resources. Wealth disparity (negative) Poverty increase (Gini coefficient) The socio-economic imperatives (although they have improved) are still such that a compromise may be to allow some substitution between different forms of capital, so long as some minimum, core stock of critical natural capital is maintained. The review of state of the economy and associated socio-economic factors in the Province would include the following indicators (as agreed by the LEO Steering Committee) described in Table 4 below. These indicators have been reviewed and prioritised as shown. Table 4: Limpopo Province - Summary of indicators considered for state of the economy No. Indicator Recommended Discussion priority 1 Economic growth – High To measure economic growth and composition of the GDP and GGP economy (Total & by sector) 2 Employment per High Important to track employment sector 3 Contribution to High The EPWP ends in 2019, therefore effectiveness of the economy from programme should be checked “working for/on” initiatives 4 Periodic calculation High Could be increasingly important due to current economic of economic value outlook & food security of local subsistence economies 5 Contribution of High Estimation of use values (direct, indirect and option values) + natural resources estimation of non-use values. This would be useful to (renewable and prioritise programmes and increase awareness of the value non-renewable) to of natural capital. the provincial economy 6 Food production High Contributes to food security monitoring (important). Should index include subsistence sector. 7 Food price index Medium Contributes to food security monitoring
Economics growth rate Short term Medium turn Drought; Mineral Commodity outlook. Hard pressed to achieve the SOPA 5% by 2019? Primary economic sector contribution to GDP Mainly due to mining. There will be pressure on the agricultural sector and its environmental resources. Labour force Net increase of at least 45000 per year. - shaped age profile of population Employment Unlikely to grow substantially (mining is capital rather than labour intensive). Could result in heavy pressure on the subsistence sector (food security) and its resources. Wealth disparity (Gini coefficient) (negative) Poverty increase The socio-economic imperatives (although they have improved) are still such that a compromise may be to allow some substitution between different forms of capital, so long as some minimum, core stock of critical natural capital is maintained. The review of state of the economy and associated socio-economic factors in the Province would include the following indicators (as agreed by the LEO Steering Committee) described in Table 4 below. These indicators have been reviewed and prioritised as shown. Table 4: Limpopo Province - Summary of indicators considered for state of the economy No. Indicator Recommended priority Discussion 1 Economic growth – GDP and GGP (Total & by sector) High To measure economic growth and composition of the economy 2 Employment per sector High Important to track employment 3 Contribution to economy from “working for/on” initiatives High The EPWP ends in 2019, therefore effectiveness of the programme should be checked 4 Periodic calculation of economic value of local subsistence economies High Could be increasingly important due to current economic outlook & food security 5 Contribution of natural resources (renewable and non-renewable) to the provincial economy High Estimation of use values (direct, indirect and option values) + estimation of non-use values. This would be useful to prioritise programmes and increase awareness of the value of natural capital. 6 Food production index High Contributes to food security monitoring (important). Should include subsistence sector. 7 Food price index Medium Contributes to food security monitoring
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