Exploring the Economic Identity of Makhuduthamaga: Insights from Economist Mr. Kgotso Modise
By Thulane Madalane
Makhuduthamaga Local Municipality, situated in the Sekhukhune District of South Africa, is home to a diverse population of approximately 131,198 residents and encompasses 65,217 households, accounting for more than 24% of the district, according to the 2021 Census. Among its notable settlements is Jane Furse, which is an emerging town earmarked as the administrative capital of the Sekhukhune District Municipality.
Despite its growth, Jane Furse, like many towns in rural South Africa, suffers from a fragile economic foundation. The area grapples with poor infrastructure, significant service delivery backlogs, and high levels of poverty. One of the most pressing issues confronting many households in Makhuduthamaga is the lack of access to potable water. This shortage not only complicates daily life but also poses a serious health risk to residents, hindering overall community well-being and productivity.
Additionally, the lack of robust network connectivity across all three major service providers—Vodacom, MTN, and Cell C—especially impacts daily operations for individuals, businesses, service centers, and various government departments located in Jane Furse. Vodacom leads in user subscriptions among the three providers, further complicating communication and service delivery.
Beyond Jane Furse, Makhuduthamaga consists of several other central business districts, including Phokwane, Monsterilious, Glen Cowie, Ga-Masemola, Tshehlwaneng, and Schoonoord. These areas primarily depend on the retail market and informal trading, characterized by hair salons, fast food outlets, shoe repair shops, and a growing but unregulated sector of informal loan sharking. Although this last sector is problematic, it reflects the economic desperation faced by many residents.
Despite lacking a clearly defined economic plan from the municipality, Jane Furse has made noteworthy strides in developing amenities such as shopping complexes, four-star hotels, lodges, guest houses, and a handful of upmarket restaurants and pubs that meet acceptable standards. This development raises a pertinent question: What is the economic identity of Makhuduthamaga?
To address this question, we turn to Mr. Kgotso Modise, an economist who has been closely analyzing the economic landscape of Makhuduthamaga. He underscores the importance of defining the municipality’s economic identity as critical for attracting sustainable investments. According to Mr. Modise, “A well-articulated economic identity can provide a roadmap for growth and development, guiding both local entrepreneurs and potential investors towards identifying viable avenues for investment. Without this identity, the municipality risks stagnation and missed opportunities.”
Mr. Modise further emphasizes that Makhuduthamaga should be viewed as an infrastructure construction site. “The municipality has the potential to become a hub of development; however, this requires significant investment in infrastructure. By prioritizing construction and maintenance of roads, water supply systems, and telecommunications networks, Makhuduthamaga can create an environment conducive to business and residential growth,” he explains.
Addressing the local economic strengths, he notes that while Ephraim Mogale and Elias Motswaledi are recognized for their agricultural activities, and Fetakgomo-Tubatse is known for mining, Makhuduthamaga has yet to consolidate its own economic strengths effectively. “We need to leverage the agricultural outputs and create partnerships with mining enterprises to stimulate the local economy,” he suggests.
The municipality has existed for over 25 years, yet there remains a void in understanding its economic identity, which is crucial for attracting investments that could help reduce the current unemployment rate of 16%. Additionally, crime poses another significant hindrance to the area’s growth. Compared to other regions, crime rates in Makhuduthamaga are relatively high, deterring potential businesses from settling in the area.
Another obstacle to growth is land tenure. A majority of the vast land in Makhuduthamaga is owned by chiefs and royal families, who often demand exorbitant prices for the use of these lands. This situation creates a barrier for aspiring entrepreneurs and investors, further complicating efforts to stimulate economic activity in the region.
The economic identity of Makhuduthamaga remains a pressing issue that requires attention from local authorities and stakeholders. As Mr. Modise aptly points out, “Defining and promoting an economic identity is not merely a theoretical exercise; it is a practical necessity for the growth and development of our community.” Only through concerted efforts to identify and build upon its unique economic assets can Makhuduthamaga pave the way for sustainable growth and improved living conditions for its residents.
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