A regional overview of Mpumalanga

A REGIONAL OVERVIEW OF MPUMALANGA PROVINCE

Blueberries are a popular fruit in supermarkets and farming them provides many employment opportunities. Pan African Resources has invested in a farm near Barberton as part of its community programme. The farm is managed by Primocane Capital. Credit: Primocane Capital

Mining and timber are attracting large investments as provincial planners aim for diversification. A future beyond coal is being contemplated by the country’s prime producer of the mineral.

By John Young

National utility Eskom has put a date to the closure of several of Mpumalanga’s coal-fired power stations. Coal will remain part of the province’s economy for some time to come, but Eskom’s announcement – and the creation of a Presidential Climate Change Coordinating

Commission – is a significant milestone on the path to a different future.

Ten coal plants are due to be closed by 2040, with four Mpumalanga plants (Hendrina, Grootvlei,

Camden and Komati) first in line. Eskom is undertaking studies to assess the potential impact on local communities of these closures. Options to get these plants producing energy again include gas, biomass and hydrogen but it is possible they might be used for something quite different. Eskom wants to be a net-zero company by 2050.

Lessons on repurposing could be learnt from the case of the steel-producing facility that has become an industrial park. The Highveld Industrial Park (pictured) is now a fully-serviced 650ha rental space for warehousing and manufacturing in Emalahleni.

More than 80% of South Africa’s coal is currently sourced in Mpumalanga, and it is the third-largest coal-producing region in the world.

The most popular renewable energy technologies, wind and solar, have little purchase in Mpumalanga but a game-changer could come to the provincial economy in the form of gas. This would allow the province to retain its position as an energy provider and to start moving away from coal.

Vast new fields of natural gas have been found off the coast of Mozambique and the large and sophisticated infrastructure that Sasol has built up over the years make it well-placed to fire up a gas-based economy. However, violent uprisings in the Cabo Delgado province have caused French company Total to suspend work on its massive $20-billion LNG project and to evacuate all its staff. Eni is continuing operations and there is a hope that the huge resource will prove a boon to all African economies, including Mpumalanga’s, but it is clearly not going to be an easy road.

Sasol, an integrated oil, gas and chemicals company with more than 30 000 employees and operations in 31 countries, runs several plants at Secunda. Products manufactured at the complex include synthetic fuel, petroleum, paraffin, jet fuel, creosote, bitumen, diesel and lubricants. The primary feedstock for synthetic-fuel production is coal, and the plant is in the heart of Mpumalanga’s coalfields.

Sasol regularly spends tens of millions on upgrades and improvements at the Secunda complex. The Sasol Synfuels refinery is the only commercial coal-to-liquid fuel plant in the world and constitutes a key component in South Africa’s oil and gas sector.

On a smaller scale, the provincial government is looking beyond coal towards a renewable energy future, especially where projects can be tackled by small businesses. There might be opportunities in micro-hydro or rooftop solar projects that will help to reduce dependence on the national grid while simultaneously promoting SMMEs.

The town of eMalahleni (Witbank) is the centre of the coal industry. Other minerals found in the province include gold, platinum-group minerals, chromite, zinc, cobalt, copper, iron and manganese.

Spending for the future Emalahleni is getting new infrastructure in the form of a new tertiary hospital. The local municipality has made land available for the construction of the facility. Another development in the Nkangala District Municipality is the public-private partnership that is due to deliver a hotel and conference centre in the neighbouring Steve Tshwete Local Municipality, in the town of Middelburg.

It may seem ironic that R350-million is to be spent on a Radisson-branded hotel in the time of Covid-19 but conferences and tourism will return. Middelburg is home to Columbus Stainless, South Africa’s only producer of stainless steel, and several big engineering works. It is about 130km from Pretoria and less than three hours’ drive from the Malelane Gate of the Kruger National Park.

The effect of the Covid-19 epidemic is likely to be keenly felt by the hotels, lodges and game reserves of Mpumalanga. Visits to game reserves and nature reserves have shown signs of recovery but the turnover from restaurants will be absent for some considerable time and in a province where 7% of GDP is derived from tourism, this is bad news.

In 2018, tourists spent R13.1-billion in the province. Numbers were rising for both international tourist arrivals and domestic tourists as a result of a strong marketing campaign by the Mpumalanga Tourism and Parks Agency (MTPA).

The Kruger National Park remains the province’s most visited asset but the decision by UNESCO to afford World Heritage Site status to the Makhonjwa Mountains near Barberton will boost geological tourism to the province and supports the efforts of the province to diversify its offering. Major projects to improve tourist experiences are underway at the Graskop Gorge (where a transparent lift takes tourists into the depths of the gorge), a skywalk is to be built at God’s Window and a cable car is planned for Three Rondavels.

The international body’s decision has also had the effect of expanding the curriculum at the relatively new University of Mpumalanga. On the basis of the UNESCO ruling, UMP is offering geology as part of a BSc degree, to supplement existing courses in education, agriculture and hospitality.

Several infrastructure investment projects in the tourism sector have been put forward by the Mpumalanga Economic Growth Agency (MEGA). There is a special focus on BRICS countries and provincial authorities are investigating a tourism airlift route between Moscow and Mpumalanga. The TRILAND partnership with Eswatini and Mozambique is another avenue, as is the collaboration with KwaZulu-Natal, Eswatini, Mozambique and the Seychelles. The latter project is called east3ROUTE

Credit: Buckler’s African Lodge

Tourism Initiative and proclaims “Experience, Adventure, Scenery and Trade” between the participating provinces and countries.

Elsewhere mining and timber companies are making large investments in increased production or in extending the life of mines.

A major concern for provincial planners is to diversify the economy and to grow the manufacturing sector. The Mpumalanga Economic Growth and Development Path (MEGDP) identifies beneficiation, agro-processing and the development of value chains as priorities. Various industrial parks are planned which will focus on agriculture and forestry, mining and metals and petrochemicals. An International Fresh Produce Market in Nelspruit and the planned Nkomazi SEZ (Special Economic Zone) are other priorities.

Steel and associated manufacturing remains one of the province’s strong suits and Mpumalanga has rich and varied mineral resources and fertile soil that support diverse farming operations, agro-processing and forestry. The province also hosts large companies in the manufacturing sector such as Middelburg Ferrochrome and the Manganese Metal Company.

The province’s rich agricultural produce is used by companies such as McCain, Nestlé and PepsiCo and there are also pulp and paper plants (Sappi and Mondi), with PG Bison set to start producing more than 1000m³/d per annum at its Mkhondo particleboard plant after two investment injections of R600-million (on a press and forming line) and R560-million (this year; on a front-end dryer).

York Timbers is another forestry company and the sugar mills and refinery of RCL Foods (formerly TSB Sugar) along with fertiliser facilities and textile manufacturing concerns are all contributors to the provincial economy.

The southern half of the eastern limb of the platinum-rich Bushveld Igneous Complex runs south towards the towns of Lydenburg and Machadodorp. Deposits of chromite, magnetite and vanadium in this area are the basis of the ferro-alloy complex in Witbank-Middelburg and Lydenburg.

Geography The Drakensberg escarpment sharply divides the western grasslands at high altitude (Highveld) and the subtropical component to the east, the Lowveld. The central region of the province is mountainous, with dramatic landscapes presenting exciting vistas for visitors. The Lebombo Mountains rise in the east.

The southern and northern Highveld regions produce large quantities of field crops such as barley, soybeans, maize, grain and sorghum. Potatoes also flourish in this area.

Most of the province receives summer rainfall, often via thunderstorms. Frost is common on the Highveld but is almost absent in the subtropical regions where fruit, nuts and citrus thrive. Differences in temperature and rainfall between the Highveld and Lowveld can be considerable. One of the fastest-growing agricultural sectors is macadamia nuts. These are cultivated in the Lowveld and are exported in ever-growing volumes. The Nelspruit district in the Lowveld is South Africa’s second-biggest producer of citrus fruit, while vegetables of all sorts do well in this area too.

Large parts of the province are in the so-called Middleveld comprising high-plateau grasslands. Forestry operations are found in central and south-eastern Mpumalanga, but the heart of this important industry is around Sabie in the east. The Mpumalanga forestry sector is one of the most important in the country: 11% of the total land area of Mpumalanga is covered either by plantations or natural forests. Large sugar operations are found in the south-east of the province.

The province has excellent roads and railway connections and is well served by airports, airstrips and heliports. The Kruger Mpumalanga International Airport and Hoedspruit Airport are the province’s two main airports. The Maputo Development Corridor is a transportation corridor comprising road, rail, border posts, port and terminal facilities, running from Pretoria in Gauteng through Mpumalanga to the Port of Maputo in Mozambique. This international initiative emphasises Mpumalanga’s excellent location as a logistics and transport hub. ■

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OFFICIAL MOBILE PROVIDERTO SA GOVERNMENT

MTN drives digital growth and improved access

R350-million invested in network for Limpopo, Mpumalanga and North West.

Kagiso Moncho, General Manager, MTN Limpopo and Mpumalanga

MTN is making significant headway in ensuring more people in South Africa benefit from the modern, connected world. The planned network investment in Limpopo, Mpumalanga, and North West for the 2021 financial year of R350-million is aimed at modernising, upgrading, building new sites and transmission links.

“We want to bridge the digital divide and create exciting opportunities for communities, businesses and individual users. Our investment is therefore far more than achieving market-share growth in the region – it is about bringing the benefits of the digital world to more people through a stable, secure and innovative network experience,” says Kagiso Moncho, MTN General Manager for the Northern Region.

“We are already seeing active data users and traffic increase as more consumers seek affordable, innovative and reliable digital services and solutions. The key for us is to deliver network excellence and an enterprise turnaround. This will be underpinned by modernisation and rollout of 5G, together with price competitiveness,” says Moncho.

Maintaining network quality remains the key objective despite challenges like battery theft.

MTN is making strides with its fifth-generation (5G) technology rollout strategy. We have already activated 5G in greater Polokwane and Witbank, and intend to expand the 5G coverage footprint further across the region, into areas such as Nelspruit and Middelburg. Added to this is that 93% of towers in the Northern Region have LTE.

“We are committed to ensuring our network coverage and quality is maintained and expanded so our customers stay connected. This is even more critical in the face of the pandemic and subsequent lockdown: connectivity is essential for medical emergencies as well as for learners and individuals working from home,” says Moncho.

While battery theft and vandalism remain a challenge, MTN has earmarked part of the investment for battery replacement and security programmes in the Northern Region.

“Vandalism of the network infrastructure remains a pain point and hinders the great progress we have made in stabilising and improving network availability. These vandalism incidents affect the economy negatively and the interruptions due to network outages hinder emergency and security services. Unfortunately, Limpopo province is one of the hotspots. “We plead with the members of the

community to report any vandalism incidents that they might witness to the nearest SAPS branches. Our efforts are directed towards building and maintaining a resilient infrastructure amidst adversities. We remain committed to proving a modern connected digital life for all,” says Moncho.

MTN’s work in these provinces also includes programmes to help the most vulnerable particularly in the deep rural villages. Key stakeholder partnerships with government and municipalities will see ongoing support for learners and education facilities. Food parcel support is also a key part of the initiatives being rolled out by MTN Foundation as Covid-19 hit lives and livelihoods.

The strides being made to help people and communities on the ground across South Africa is also reflected in recent network successes achieved by MTN, which has been named South Africa’s best network for three years in succession based on P3 Communications (2019-2021). The benchmarking Network Quality score results are indicative that MTN provides its customers with optimum upload and super faster download speeds as well as uninterrupted streaming, surfing and the best in voice calling when compared to other mobile operators.

“We are working tirelessly to ensure our customers enjoy their experience on our Bozza network, and our commitment to serving our customers with distinction will always be at the core of what we do,” concludes Moncho.

MTN strives to ensure customers remain connected to the digital world and also have the delight of sharing moments and memories with friends and family through their social platforms. ■

About the MTN Group

Launched in 1994, the MTN Group is a leading emerging-market operator with a clear vision to lead the delivery of a bold new digital world to our customers. We are inspired by our belief that everyone deserves the benefits of a modern connected life. The MTN Group is listed on the JSE Securities Exchange in South Africa under the share code “MTN”. Our strategy, Ambition 2025, is anchored on building the largest and most valuable platform business, with a clear focus on Africa.

Twitter: Twitter @MTNza Website: www.mtn.com or www.mtn.co.za

South African investment incentives

The South African government, particularly the Department of Trade, Industry and Competition, has a range of incentives available to investors, existing companies, entrepreneurs and co-operatives across many sectors.

South Africa wishes to diversify its economy and incentives are an important part of the strategy to attract investors to the country.

The Department of Trade, Industry and Competition (the dtic) is the lead agency in the incentives programme, which aims to encourage local and foreign investment into targeted economic sectors, but the Industrial Development Corporation (IDC) is the most influential funder of projects across South Africa.

There a variety of incentives available and these incentives can broadly be categorised according to the stage of project development: • Conceptualisation of the project – including feasibility studies and research and development (grants for R&D and feasibility studies,

THRIP, Stp, etc) • Capital expenditure – involving the creation or expansion of the productive capacity of businesses (MCEP, EIP, CIP, FIG, etc) • Competitiveness enhancement – involving the introduction of efficiencies and whetting the competitive edge of established companies and commercial or industrial sectors (BBSDP, EMIA,

CTCIP, etc) • Some of the incentives are sector-specific, for example the Aquaculture Development and

Enhancement Programme (ADEP), Clothing and Textile Competitiveness Improvement

Programme (CTCIP) and the Tourism Support

Programme (TSP). Zindoga Trading and Projects. Image: Seda Credit: Roger Bosch/Brand SA

Manufacturing

Key components of the incentive programme are the Manufacturing Incentive Programme (MIP) and the Manufacturing Competitiveness Enhancement Programme (MCEP). The initial MCEP, launched in 2012, was so successful that it was oversubscribed with almost 890 businesses receiving funding. A second phase of the programme was launched in 2016. The grants are not handouts as the funding covers a maximum of 50% of the cost of the investment, with the remainder to be sourced elsewhere. The Enterprise Investment Programme (EIP) makes targeted grants to stimulate and promote investment, BEE and employment creation in the manufacturing and tourism sectors. Aimed at smaller companies, the maximum grant is R30million. Specific tax deductions are permissible for larger companies investing in the manufacturing sector under Section 12i of the Income Tax Act.

Other incentives

Other incentives available to investors and existing businesses in more than one sector include the: • Technology and Human Resources for Industry Programme (THRIP) • Support Programme for Industrial Innovation (SPII) • Black Business Supplier Development Programme (BBSDP), which is a cost-sharing grant offered to black-owned small enterprises • Critical Infrastructure Programme (CIP) that covers between 10% and 30% of the total development costs of qualifying infrastructure • Co-operative Incentive Scheme, which is a 90:10 matching cash grant for registered primary co-operatives • Sector Specific Assistance Scheme, which is a reimbursable 80:20 cost-sharing grant that can be applied for by export councils, joint action groups and industry associations.

Incentives for SMMEs

A lot of emphasis is placed on the potential role of small, medium and micro enterprises in job creation and a number of incentives are designed to promote the growth of these businesses. These include: • Small Medium Enterprise Development

Programme (SMEDP) • Isivande Women’s Fund • Seda Technology Programme (Stp). • Seda is the Small Enterprise Development Agency, an agency of the Department of Small Business

Development that exists to promote SMMEs.

PG Bison are investing heavily in expanding manufacturing Gladtidings Interiors CC. Image: Seda capacity. Credit: PG Bison

Trade-related incentives

The Export Marketing and Investment Assistance (EMIA) Scheme includes support for local businesses that wish to market their businesses internationally to potential importers and investors. The scheme offers financial assistance to South Africans travelling or exhibiting abroad as well as for inbound potential buyers of South African goods. ■

Online Resources

Department of Trade, Industry and Competition: www.thedtic.gov.za Industrial Development Corporation: www.idc.co.za Mpumalanga Economic Growth Agency: www.mega.gov.za Official South African government incentive schemes: www.investmentincentives.co.za

Standard Bank helps Mpumalanga realise dreams

Africa is our home, we drive her growth.

Blessed with an abundance of minerals and natural resources, Mpumalanga is a nature-lover’s dream. The province also holds the promise of strong economic growth thanks to a burgeoning agriculture sector and a well-established mining sector. This, together with the opportunities that exist here, fuel many of our people’s dreams.

At Standard Bank we are in the business of making dreams come true. We have a long and storied history in the province which dates to the late 1870s.

Today, Standard Bank continues to serve the people of Mpumalanga by providing comprehensive business and personal banking services.

A vision for the future

Our vision is to be the leading financial services organisation in, for and across Africa, delivering exceptional client experiences and superior value.

Africa is our home, we drive her growth, and we do this by being a catalyst for inclusive and sustainable economic growth, and by making life better for our fellow Africans by doing business the right way.

We have set some significant goals. We are courageously organising our business into the new world thinking of one group, one

Business Leadership Team, Mpumalanga

Julian Felix Head Sector Specialist, Mpumalanga Fuad Choonara Provincial Manager, Enterprise Direct, Mpumalanga Morgan Mbhele Head Business Clients, Highveld North Image by Caspar Camille Ruben on Unsplash

aspiration, one purpose and one vision, all centred around our clients.

Technology has changed clients’ expectations of financial services. They’re not just looking for a single product or service, but for a complete solution. We want to fulfil dreams, help people take steps in life and organise and execute our strategies at the right time, on the right channels, making our contribution to humanity. This means evolving to being a platform business.

We don’t only want to be the shop; we want to be the mall.

Client centricity places our clients at the centre of everything we do and reinforces the competitive advantages of our scale, scope and expertise.

Standard Bank’s business activities have social, economic and environmental (SEE) impact in the economies and communities in which we operate. There are seven specific areas in which we can best drive Africa’s growth: Financial inclusion; Job creation and enterprise development; Infrastructure; Africa trade and investment; Climate change and sustainable finance; Education and skills development; Health.

Dreams matter

We are in the business of inspiring hope and enabling dreams. We believe that dreams matter because they fuel our growth. This belief, encapsulated in our tagline ‘It Can Be’, has shaped our approach to meeting the rapidly changing needs of our customers and clients in a new digitally enabled world.

We are well on our way to being the most successful banking, insurance and asset management business on the continent.

Soon we will be the most truly digital, the most truly human, the most competitive, the most profitable, and the most purpose-driven services group in the history of Africa.

Standard Bank is highly invested in Mpumalanga and committed to driving her growth. We strive to create value for our clients through our regional knowledge and industry expertise. It’s about more than just banking. It’s about being a trusted partner, understanding your business and creating value.

We have been here for over 150 years and we look forward to being here for many more years to come – helping our clients realise their dreams. ■

Business Leadership Team, Mpumalanga

Yaseen Guman Head Client Coverage, Mpumalanga Business Busisiwe Sithole Head Business Clients, Lowveld Anton Janse van Rensburg Head Business Clients, Highveld South

REALISING DREAMS THROUGH QUALITY EDUCATION

Standard Bank is helping teachers and care-givers learn new skills.

In Mpumalanga we express our commitment to the people of the province through our corporate social investment work.

The power of education to drive change in

South Africa remains undeniable. Unfortunately, many in our country, because of their personal circumstances, still struggle to access a quality education. Standard Bank takes an active role in helping these young people realise their dreams through financial support and training initiatives.

We believe that all South Africans deserve a quality education and as such Standard Bank invests in improved educational outcomes and skills development in multiple ways.

We prioritise education in our corporate social investment (CSI) programmes and invest in work readiness programmes, through our internal learnership and graduate programmes.

In 2019, following an in-depth review of our impact and effectiveness over a five-year period, we developed a refreshed CSI strategy, which focuses specifically on Early Childhood Development (ECD) and Foundation Phase education.

This is based on extensive empirical research which demonstrates that developmental stimulation during the early years of childhood, well before a child enters the formal schooling system, are critical to future intellectual, emotional and physical wellbeing. We have seen the positive impacts of such interventions first-hand, through Standard Bank-sponsored ECD and Foundation Phase programmes.

The aim of our ECD strategy is to contribute to social and economic transformation in South Africa, through supporting the development of future-fit children who are ready for a new world of work. We do this through the upskilling of ECD practitioners and Foundation Phase teachers, empowering primary care-givers to play an active role in early learning, and by supporting programmes to incorporate future skills in ECD and Foundation Phase curricula. In this way, we hope to help mitigate the risk of the fourth industrial revolution further exacerbating the extreme inequality that characterises South African society.

In 2020 in the wake of the Covid-19 pandemic we supported our existing ECD partners, helping them to adapt to the lockdown ECD eco-system through the supplying of educational materials and child nutritional support and we worked closely with NGO partners identified by the National Department of Basic Education to support moves to a blended platform of learning.

Training educators and revamping libraries

In the last five years we have donated R11.6-million to Ntataise Lowveld to train 300 ECD students and practitioners from rural communities across the province. The practitioners undergo an 18-month training programme. The programme is accredited by the Sector and Education Training Authority (SETA) and carries a National Qualifications Framework level four. By supporting this programme, we are helping to make more people in the province employable and laying the foundation for better and more fulfilling lives for children by stimulating them from an early age.

In 2016 we were responsible for the revamp of libraries at Lamile Primary School and Bongumkhwanazi Primary School. In 2018 we revamped the libraries at Davel Combined Primary School, Matsamo Primary School and Khangela Primary School. In 2019 the list of libraries which were refurbished included Magashule Primary School and Warburton Primary School. In 2020 we revamped libraries at Hendrina Primary School and Schulzendal Primary School.

As part of the library programme Standard Bank employees volunteer their time to refurbish libraries at various primary schools around the province. This includes repairing walls, ceilings and roofs as well as painting walls, installing carpets, and repairing damaged shelves. ■