MEC Kgabo Mahoai
By Lerato Mpembe
Limpopo Finance MEC Kgabo Mahoai tabled a bold R86 billion budget for the 2025/26 financial year on Tuesday, unveiling a comprehensive plan to revive the province’s economy and enhance its infrastructure. This ambitious budget, presented during a significant sitting of the Limpopo Provincial Legislature, reflects a strategic approach to address pressing socioeconomic challenges while aligning with national fiscal priorities. With a focus on job creation, infrastructure development, and inclusive growth, the budget aims to transform Limpopo into a thriving region despite global economic uncertainties and local constraints.
A Vision for Economic Recovery and Infrastructure Boost
MEC Mahoai’s budget speech highlighted the province’s commitment to leveraging its R86 billion allocation to tackle longstanding issues such as stagnant economic growth and deteriorating infrastructure. Limpopo’s GDP grew by a mere 0.2% in 2024, a stark contrast to the 5.5% recorded in 2021, reflecting the impact of the COVID-19 pandemic and structural economic challenges. The budget allocates R21.6 billion over the medium-term framework (MTF) for infrastructure projects, with R7.5 billion earmarked for the 2025/26 financial year. Key sectors receiving funds include Public Works, Roads, and Infrastructure (R3.2 billion), Education (R1.6 billion), and Cooperative Governance (R1.1 billion), ensuring a balanced approach to development.
The province’s infrastructure strategy is bolstered by a newly developed framework to oversee implementing agents, ensuring projects are delivered on time, within budget, and to high standards. This includes a focus on maintenance—a critical area often neglected in the past—allocating funds for road repairs, school upgrades, and healthcare facilities. MEC Mahoai emphasized the importance of proactive planning, citing a recent provincial infrastructure readiness workshop held in January 2025 to finalize these plans.
Tackling Socioeconomic Challenges with Innovative Solutions
Beyond infrastructure, the budget addresses Limpopo’s socioeconomic needs through targeted investments. The Department of Education receives R13.5 billion over three years, with R42.5 billion allocated for 2025/26, including funds for the Presidential Youth Employment Initiative and storm-damaged school repairs. Health services are bolstered with R26 billion for 2025/26, supporting free primary healthcare, ambulance procurement, and HIV/AIDS programs. Agriculture and rural development receive R1.9 billion, with R32.7 million dedicated to revitalizing agro-processing value chains, a vital step to boost this key economic sector.
MEC Mahoai also introduced a revenue enhancement strategy, projecting own revenue collection to reach R2.2 billion by February 2025, a 6% increase over the MTF period. This includes innovative measures like investing in provincial holiday resorts and expanding driver’s license services. To combat climate change impacts, particularly after the devastating December 2024 and January 2025 floods, a provincial disaster management contingency reserve fund will be established, aligning with the National Disaster Management Act’s 1.2% budget threshold.
Empowering Local Communities and Businesses
A standout feature of the budget is its focus on local economic empowerment. The Limpopo Procurement Strategy 2030 aims to retain fiscal spending within the province, with 60% of the R10.7 billion expenditure directed to black-owned businesses and 20.4% to women-owned enterprises. However, MEC Mahoai flagged concerns about the low 34% spending on Limpopo-owned businesses and called for increased support for youth and disability-owned enterprises to reduce unemployment in this youthful province.
Public-private partnerships (PPPs) are set to play a bigger role, with awareness sessions planned to encourage collaboration on catalytic projects like the Musina-Makhado Special Economic Zone. This aligns with national efforts to reconfigure the Budget Facility for Infrastructure, offering multiple bid windows to fund priority programs.
Aligning with National Goals and Global Trends
The R86 billion budget reflects a 6.1% increase in provincial receipts, driven by a R4.6 billion rise in national transfers, including equitable shares and conditional grants. Despite a slight decrease in conditional grants due to efficiency reviews, upward adjustments for wage increments and data updates signal a commitment to fiscal stability. This aligns with Minister of Finance Enoch Godongwana’s recent budget speech, which emphasized spending reviews to fund essential services—a call Limpopo is embracing with robust oversight from portfolio committees.
🔴 Central News Weekly Edition | Issue 98 🔴 Download the Latest Print and E-Edition | Headline: “Fezile Dabi Mayor Khasudi: ‘The Boreholes Exist, and the DA is Delivering for Residents”
Download Here:
Direct PDF Link:
https://centralnews.co.za/wp-content/uploads/2025/03/Central-News-Issue-098.pdf
Read all our publications on magzter:
https://www.magzter.com/ZA/Central-News-Pty-Ltd/Central-News/Newspaper/All-Issues
Central News also offers Sponsored Editorial Content, Podcasts , Radio / Social Media Simulcast, Video Production , Live Streaming Services, Press Conferences, and Paid Interviews (Video/Audio) etc.
We guarantee exceptional exposure, reach, and engagement, with an excellent return on investment.
Advertisement:
To place your advert on our platforms (Print Newspaper or Digital Platforms) : Please email : sales@centralnews.co.za
For Business Related:
business@centralnews.co.za
Newsroom:
Send your Stories / Media Statements To: newsroom@centralnews.co.za
General Info:
info@centralnews.co.za
Office Administrator:
admin@centralnews.co.za
Whatsapp / Call: 081 495 5487
Website: https://www.centralnews.co.za
Social Media Platforms (@centralnewsza) : Linkedin, Facebook, Tiktok, Twitter, Instagram, Youtube