history. The many heritage sites in the area include the Samora Machel monument near Mbuzini and the Barberton Makhonjwa Mountains World Heritage Site (pictured), boasting rock formations dating back more than 3.5-billion years. Other sites not to be missed are the mining village of Pilgrim’s Rest, the Highveld Heritage Route (which abounds with adventurous tales from history), the stone circles of Mpumalanga and Goliath’s footprint to name just a few. Mpumalanga is rich in culture and boasts the Swazi, Ndebele and Shangaan people with icons like Dr Esther Mahlangu who has managed to preserve, package and export the vibrant geometric art of the Ndebele globally.
Bird watchers can have a glimpse of more than 500 different birds endemic to the Kruger National Park or the town Chrissiesmeer, the centre of South Africa’s own Lake District where four river systems start their journeys across the country.
The small tourist town of Dullstroom is referred to South Africa’s trout-fishing mecca. Mpumalanga is an ideal sporting destination with several world-class golf courses and the Mbombela Stadium that was built for FIFA World Cup in 2010 and has subsequently hosted international football and rugby matches. Get off the beaten track and explore the many other tourism offerings the Mpumalanga Province.
The transformative power of business and investment
Investors are encouraged to investigate the wealth of opportunities in Mpumalanga, writes Isaac Mahlangu, CEO of the Mpumalanga Economic Growth Agency
Isaac Mahlangu, CEO, MEGA
It is with great pleasure that I address you as the CEO of the Mpumalanga Economic Growth Agency (MEGA). As the driving force behind the economic development of our remarkable province, it is my privilege to provide you with this message in the esteemed pages of the Mpumalanga Business journal.
Over the years, Mpumalanga has emerged as a prime destination for business and investment opportunities. With its abundant natural resources, strategic location and vibrant communities, our province offers an environment conducive to growth and prosperity. We are committed to fostering an ecosystem that nurtures innovation, entrepreneurship and sustainable development.
As we navigate through the challenges brought by the global economic landscape, Mpumalanga remains steadfast in its dedication to fostering economic growth. We understand that collaboration is key and we actively seek
Manufacturing. Columbus Stainless is part of the province’s diverse manufacturing sector, ranging from food and beverages and chemicals to textiles, paper and stainless steel. PHOTO: Columbus Stainless
Education and training. The University of Mpumalanga’s reputation grows as its campus and its programmes expand. It will make a greater contribution to the province’s economy in years to come. PHOTO: UMP
partnerships with both local and international investors who share our vision of a thriving economy that uplifts all our citizens.
Comprehensive support
Our agency works tirelessly to provide comprehensive support to businesses and investors. We offer a range of services from market intelligence and investment facilitation to regulatory guidance and access to funding. Whether you are a seasoned investor or a budding entrepreneur, we are here to assist you at every step of your journey, ensuring that you have the necessary tools to succeed in our dynamic market.
Furthermore, we recognise the importance of sustainable development in today’s world. Mpumalanga Province prides itself on its commitment to environmental stewardship, social responsibility, inclusive growth and a just energy transition to a carbon-free future. We strive to strike a balance between economic progress and the preservation of our natural heritage, creating a future that is prosperous, equitable and environmentally sustainable.
I encourage you, as potential investors, to explore the wealth of opportunities that Mpumalanga has to offer. Whether you are interested in our booming mining sector, renewable energy projects, agribusiness or tourism ventures, our province has the potential to fulfil your aspirations.
Together, let us shape the future of Mpumalanga’s business landscape and contribute to the growth and prosperity of our province. I invite you to engage with us, to collaborate, and to seize the possibilities that lie before us.
Thank you for your continued support, and I look forward to witnessing the transformative power of business and investment in Mpumalanga. ■
Tourism. The Makhonjwa Mountains have been declared a UNESCO World Heritage Site. PHOTO: Mpumalanga Tourism and Parks Agency
Agribusiness. Sappi’s Ngodwana Mill not only plays a vital role in the provincial economy but is an innovator in biomass energy. PHOTO: Sappi
Three decades on from the dawn of democracy, Mpumalanga is poised to lead a new phase in energy generation.
Mpumalanga Trade and Investment Profile 11
The Mpumalanga Economic Growth Agency (MEGA) profiles the province’s economy and outlines specific investment opportunities.
A range of incentives are available to investors, entrepreneurs and co-operatives across many sectors.
The manufacturing potential of trees is under the spotlight.
Top left, then clockwise: Eucalyptus trees are a good carbon sink (Mondi); the province produces tons of citrus (Vino Li on Unsplash); working together, (Charl Durand on Unsplash); Mpumalanga’s coalfields fire most of the nation’s power stations, (Thungela Resources); the dramatic divide between the Highveld and the Lowveld (SA Tourism/Flickr); Africa’s only integrated stainless steel factory (Columbus Stainless); sophisticated logistics gets products to market (Karan Beef).
Mpumalanga Business
A unique guide to business and investment in Mpumalanga.
Credits
Publishing director: Chris Whales
Editor: John Young
Managing director: Clive During
Online editor: Christoff Scholtz
Designer: Tyra Martin
Production:
Sharon Angus-Leppan
Project manager: Chris Hoffman
Ad sales:
Shepherd Mugero
Sadiyah February
Dwaine Rigby
Gabriel Venter
Vanessa Wallace
Shiko Diala
Administration & accounts:
Charlene Steynberg
Kathy Wootton
Distribution and circulation manager: Edward MacDonald
Printing: FA Print
DISTRIBUTION
The 2024/25 edition of Mpumalanga Business is the 15th issue of this successful publication that since its launch in 2008 has established itself as the premier business and investment guide for the province.
The CEO of the Mpumalanga Economic Growth Agency (MEGA) outlines the investment climate in a resource-rich province that is already attracting a wide variety of enterprises in sectors as diverse as wind-power generation and food processing.
The latest news in all the most important sectors of the provincial economy is covered in a series of overviews covering events such as Sasol’s announcement that it will be scaling back on gas imports and, in the context of increased scrutiny of every sector’s green credentials, the establishment of the Sustainable African Forest Assurance Scheme (SAFAS) in the forestry article. The potential of wood provides a somewhat unusual focus for the manufacturing article, but sustainability is a theme that is always relevant.
Major catalytic projects such as the Nkomazi Special Economic Zone (NSEZ) and the Mpumalanga International Fresh Produce Market (MIFPM) are examined in detail in the official Mpumalanga Investment Prospectus which is contained in these pages. Compiled by MEGA, the Prospectus outlines in detail many of the exciting investment opportunities on offer.
To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www. globalafricanetwork.com. Updated information on Mpumalanga is also available through our monthly e-newsletter, which you can subscribe to online at www.gan. co.za, in addition to our complementary business-to-business titles that cover all nine provinces, our flagship South African Business title and the new addition our list of publications, The Journal of African Business, which was launched in 2020. ■
Chris Whales Publisher, Global Africa Network
PUBLISHED
Media | Email: chris@gan.co.za
BY
Mpumalanga Business is distributed internationally on outgoing and incoming trade missions, through trade and investment agencies; to foreign offices in South Africa’s main trading partners around the world; at top national and international events; through the offices of foreign representatives in South Africa; as well as nationally and regionally via chambers of commerce, tourism offices, airport lounges, provincial government departments, municipalities and companies.
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PHOTO CREDITS | APO Group; Cape Fruit Processors; Council for Geoscience; Enza Construction; Eskom; Forestry South Africa; GCIS; Mpumalanga Tourism and Parks Agency; Mondi Group; MTN; Ntaba Nyoni Cattle Farm; Radisson Hotels; Sappi; SAWEA; Thungela Resources; University of Mpumalanga; Thuvack / Wikimedia Commons.
DISCLAIMER | While the publisher, Global Africa Network Media (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in Mpumalanga Business is accurate and up-to-date, the publishers make no representations as to the accuracy, quality, timeliness, or completeness of the information. Global Africa Network will not accept responsibility for any loss or damage suffered as a result of the use of or any reliance placed on such information.
Enabling Mpumalanga’s digital future
By Nkateko Nghonyama, Acting General Manager: Northern Region, MTN SA.
Despite the fact that Mpumalanga is the second smallest of South Africa’s nine provinces in terms of land size, it is one of the budding powerhouses of our economy. From agriculture, to mining, to manufacturing and tourism, Mpumalanga’s Economic Growth and Development Path is bearing fruit, with the province’s untapped potential being recognised by a number of companies across diverse industries.
We are proud to be assisting the provincial government’s efforts to put business enablers in place and are even more gratified to be empowering rural communities through better access to connectivity. Our longstanding partnerships with Mpumalanga’s official and business leaders continue to grow, helping to provide the support the region needs to achieve its goals.
This is evident in the variety of projects we have completed in the province over the past year. These range from the continued expansion and improvement of our network to IoT solutions in various industries, to cost-effective digital enablement for the public and private sectors through offerings like our RT-15 deals and cloud offerings, to name a few.
Relentless pursuit of excellence
In today’s digital environment, connectivity is at the heart of everything we do. Whether an organisation is focused on service delivery for citizens, on improving
productivity and profitability or on expanding its operations, connectivity provides the foundation for effective business operations. Connectivity is just as vital to the day-to-day lives of individuals, who rely on Internet access for everything from online banking and education to staying informed with news and enjoying entertainment.
This is why MTN continues to invest in improving the quality and resilience of our network – and why MTN’s network was once again voted the best in the country. In Mpumalanga, we are actively building new sites and enhancing existing ones, resulting in a remarkable 99.7% daily network availability. We have ensured resilience during challenging periods like loadshedding and power outages, improving network throughput and availability while also reducing drop-call rates and increasing data volumes. For example, 4G download speeds in towns like Nelspruit and Emalahleni now average 12Mbps.
MTN remains dedicated to expanding network coverage, particularly in rural areas. Our goal is to achieve 95% broadband coverage by 2025 and we are leveraging cutting-edge technologies to address coverage challenges.
Our relentless pursuit of connectivity is not just about networks; it’s about empowering communities and creating opportunities, helping
to usher in a brighter digital future for all. Previously unconnected areas, like rural sites in remote villages such as Mooiplaas in the Lowveld, have been seamlessly integrated into MTN’s robust network infrastructure, unlocking a myriad of digital opportunities.
Adding value
MTN is also helping government employees service their constituents better, regardless of where they are located. With free inter-departmental calls, uncapped data and no out-of-bundle rates, our RT-15 solution has been designed to support the needs of civil servants operating in an increasingly demanding environment.
The scale of government’s requirements has allowed MTN to develop industry-leading systems and innovative pricing and products that not only add value to provinces like Mpumalanga, but also significantly improve on existing mobile telecommunications service delivery while allowing for a high degree of control of spend by individual entities.
MTN will continue to invest in its network to keep elevating the connectivity experience for South Africans, ensuring that the benefits of the digital world are accessible to all. Mpumalanga remains a focus area for us, with plans for acceleration in a number of digital programmes across the province in the coming year. ■
A REGIONAL OVERVIEW OF
MPUMALANGA PROVINCE
Three decades on from the dawn of democracy, Mpumalanga is poised to lead a new phase in energy generation.
By John Young
The general elections of 2024 prompted reflections in many spheres on three decades since the first democratic elections were held. In March 2024, Mpumalanga Premier Refilwe Mtsweni-Tsipane’s State of the Province address listed many consequential changes that have occurred in Mpumalanga in that timeframe:
• population increased from 3.3-million to 5.1-million
• Gross Domestic Product (GDP) grew from R46-billion to R530-billion
• off very low levels, 87% of households have access to piped clean water
• 93% have access to adequate sanitation
• more than 94% of residents have access to electricity
Mtsweni-Tsipane, who was succeeded as provincial premier by fellow ANC member Mandla Ndlovu, was elected by the government of national unity (GNU) as the new chairperson of the National Council of Provinces (NCOP).
More change is coming to the province in the next 30 years. Mpumalanga is often thought of as the Coal Province or the Power Station Province. These are fair assessments, given the number of coal mines and coal-fired power stations the province hosts. Of course, Mpumalanga is also the province where six of the nine gates are located that allow access to the Kruger National Park, one of South Africa’s greatest tourism assets.
Stainless steel, gold, chemicals, dairy and beef, agriculture in many varieties, huge forestry
The lift at Graskop Gorge is proving a great attraction.
PHOTO: MTPA
plantations and processing plants – these are also distinctive characteristics of the “Place of the Rising Sun”.
The sun is a great source of energy, but for Mpumalanga, it is wind power that is in full flow.
The South African Wind Energy Association (SAWEA) published a “Winter Energy Outlook” in May 2024 in which it noted that South Africa now has wind power capacity of 2GW, potentially powering approximately 3.6-million households annually.
Two major projects, one in Mpumalanga and one on behalf of companies that will use green power in the province, are highlighted in the SAWEA document: Seriti Green’s Ummbila Emoyeni wind farm in Mpumalanga, which will generate 155MW as part of the project’s initial phase of a broader 900MW renewable energy cluster, and the Impofu cluster of wind farms in the Eastern Cape which will generate a combined 336MW to supply two major industrial companies, Sasol and Air Liquide. These projects bring a combined 491MW and R13.5-billion investment.
The country’s wind project development pipeline currently stands at 32GW, and with Mpumalanga now joining the ranks of provinces offering wind farms, that pipeline is sure to grow. These and other renewable energy projects will not only provide power but also help the province and the country along the road to a cleaner, more environmentally friendly economy.
In pursuit of that goal, the Provincial Government of Mpumalanga has established the Mpumalanga Green Cluster Agency to bring together government, academia and industry to create the environment for businesses to develop in a green economy.
The Cluster, an initiative of the Mpumalanga Department of Economic Development and Tourism with the support of GreenCape and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), has joined the International Cleantech Network, a group that has 15 000 businesses affiliated to it across the globe.
National utility Eskom is also moving into the new era, partly through a process whereby the entity will be broken into three more competitive units, but more immediately through the announcement of 18 winning bids from
Students at the University of Mpumalanga enjoy excellent facilities.
independent power producers (IPPs) for renewable projects on Eskom land, 4 000ha of which the utility has made available for this first phase. Eskom owns 36 000ha in the province. A total of 1 800MW will become available to the grid and it will be cheaper to transmit because the solar or wind plants will be right next to the existing Eskom transmission lines.
A Mine Water Coordinating Body (MWCB) has successfully been launched to help manage the after-effects of the closure of mines and power stations. The bad results of one such water leakage are dealt with in the Mining Overview.
Many of Mpumalanga’s coal-fired power stations are either in the process of being closed or will shortly be shut down and the same is true of some coal mines that have reached the end of their lives. Eskom, together with mining houses Exxaro, Glencore and Thungela Resources, formed the MWCB to address environmental and socioeconomic challenges that might arise.
Issues such as water also fall under the ambit of a broader mine-industry related coalition known as the Impact Catalyst which has been launched in Mpumalanga.
Investment options
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 the province has welcomed more than one new flight to Kruger Mpumalanga International Airport since 2022, including Safair and the tourist division of Lufthansa, Eurowings Discover.
The TRILAND partnership with Eswatini and Mozambique is another avenue, as is the collaboration with KwaZulu-Natal, Eswatini, Mozambique and the Seychelles.
MEGA is an equity investor in several Mpumalanga concerns, including Afrimat, Highveld Fruit Packers, Kangwane Anthracite, Loopspruit Winery and Tekwane Lemon Farm.
In the Nkangala District Municipality, a publicprivate partnership is due to deliver a hotel and conference centre in the town of Middelburg in the Steve Tshwete Local Municipality. This follows the opening of a Safari Hotel by Radisson in Hoedspruit, on the edge of the Kruger National Park.
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 greatly increasing its production capacity at its Mkhondo particleboard plant after two investment injections of R600million (on a press and forming line) and R560million (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.
The town of eMalahleni 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.
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 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 offerings. 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 University of Mpumalanga. On the basis of the UNESCO ruling, UMP has a new offering in geology as part of a BSc degree. ■
Strict quality control in Hoedspruit.
THE PLACE OF THE RISING SUN
MPUMALANGA TRADE & INVESTMENT PROFILE
WHY INVEST IN MPUMALANGA?
WHY INVEST IN MPUMALANGA?
• 68% of land area in the province is used by agriculture
• 68% of land area in the province is used by agriculture
• Mpumalanga’s three biggest sectors are manufacturing, mining and agriculture
• Mpumalanga’s three biggest sectors are manufacturing, mining and agriculture
Mpumalanga’s diverse and resource-rich economy makes it one of the most attractive trade and investment destinations in South East Africa.
Mpumalanga’s diverse and resource-rich economy makes it one of the most attractive trade and investment destinations in South East Africa.
A large, growing domestic market and excellent access, supported by worldclass infrastructure, to the East African and Indian Ocean markets through Maputo Port makes Mpumalanga an ideal investment location for export-driven manufacturing and production.
A large, growing domestic market and excellent access, supported by worldclass infrastructure, to the East African and Indian Ocean markets through Maputo Port makes Mpumalanga an ideal investment location for export-driven manufacturing and production.
Mpumalanga is one of South Africa’s most productive and important agricultural regions and through strategic investments in the Mpumalanga International Fresh Produce Market (MIFPM) and the Nkomazi Special Economic Zone (NSEZ) the province is set to become a major force in food production and distribution.
Mpumalanga is one of South Africa’s most productive and important agricultural regions and through strategic investments in the Mpumalanga International Fresh Produce Market (MIFPM) and the Nkomazi Special Economic Zone (NSEZ) the province is set to become a major force in food production and distribution.
Mpumalanga’s sophisticated and well-segmented tourism and hospitality sector in a post-Covid world is ripe for investment and expansion.
Mpumalanga’s sophisticated and well-segmented tourism and hospitality sector in a post-Covid world is ripe for investment and expansion.
Mpumalanga’s STRATEGIC LOCATION makes it a valuable transport and logistics hub
A province in eastern South Africa, bordering the nations of Swaziland and Mozambique
• Maputo Development Corridor enhances logistics
• Preferential access to lucrative EU market
• Proximity to South Africa’s economic heartland
• Access to regional SADC market: 360-million population
• Access to deepwater Port of Maputo
MPUMALANGA’S ECONOMY
MPUMALANGA’S ECONOMY
UNIQUE SELLING PROPOSITION
UNIQUE SELLING PROPOSITION
•Abundant resources: minerals and agricultural produce
•Abundant resources: minerals and agricultural produce
• Established manufacturing infrastructure: smelters, petrochemicals, food processing, paper, sugar
• Established manufacturing infrastructure: smelters, petrochemicals, food processing, paper, sugar
• Strategic location, access to regional and global markets
• Strategic location, access to regional and global markets
• Tourism hotspots: the iconic Kruger National Park, world-class reserves, adventure tourism and new UNESCO World Heritage Site
• Tourism hotspots: the iconic Kruger National Park, world-class reserves, adventure tourism and new UNESCO World Heritage Site
• Mpumalanga International Fresh Produce Market (MIFPM)
• Mpumalanga International Fresh Produce Market (MIFPM)
• Nkomazi Special Economic Zone (NSEZ)
• Nkomazi Special Economic Zone (NSEZ)
• The new University of Mpumalanga
• The new University of Mpumalanga
• Support for Green Economy research and investment
• Support for Green Economy research and investment
Capital City Mbombela (Nelspruit)
Capital City
Mbombela (Nelspruit)
Population 4.7-million people
Population
4.5-million people
Main major towns Ermelo eMalahleni Middelburg Secunda
Main major towns
Ermelo
eMalahleni
Middelburg
Secunda
The provincial economy of Mpumalanga is exceptionally diverse. Established industries in the province include Mining, Stainless Steel, Petrochemicals, Pulp and Paper, Ferro-Alloys, Energy Generation, Tourism, Agriculture and Agro-Processing.
The provincial economy of Mpumalanga is exceptionally diverse. Established industries in the province include Mining, Stainless Steel, Petrochemicals, Pulp and Paper, Ferro-Alloys, Energy Generation, Tourism, Agriculture and Agro-Processing.
Companies in these sectors include global giants in their industries such as Sasol (energy and chemicals), Sappi (paper, packaging, pulp and forests), Samancor Chrome (ferrochrome), Sibanye-Stillwater and Glencore (mining).
Companies in these sectors include global giants in their industries such as Sasol (energy and chemicals), Sappi (paper, packaging, pulp and forests), Samancor Chrome (ferrochrome), Sibanye-Stillwater and Glencore (mining).
The province’s commercial farmers are among the most efficient in the world, exporting huge quantities of everything from citrus to macadamia nuts. Columbus Stainless is the only stainless-steel manufacturer on the continent.
The province’s commercial farmers are among the most efficient in the world, exporting huge quantities of everything from citrus to macadamia nuts. Columbus Stainless is the only stainless-steel manufacturer on the continent.
GOVERNANCE
GOVERNANCE
The province has three district municipalities and 17 local municipalities. Several agencies which promote the regional economy report to the Mpumalanga Provincial Government. Large parts of the province comprises extensive rural villages that form part of areas run by traditional authorities.
The province has three district municipalities and 17 local municipalities. Several agencies which promote the regional economy report to the Mpumalanga Provincial Government. Large parts of the province comprises extensive rural villages that form part of areas run by traditional authorities.
TRANSPORT
TRANSPORT
Two airports at Hoedspruit and Mbombela (Kruger Mpumalanga International Airport, KMIA) plus many airfields. Extensive freight rail network, busiest in South Africa. N4 highway (Maputo Corridor) is an east-west spine of a highly-developed road system.
Kruger Mpumalanga International Airport (KMIA) in Mbombela plus many airfields such as Middelburg. Extensive freight rail network, busiest in South Africa. N4 highway (Maputo Corridor) is an east-west spine of a highly developed road system.
Mpumalanga
Gert Sibanda Ehlanzeni
Nkangala Airport Kruger Mpumalanga International Airport
Mpumalanga
Gert
Sibanda Ehlanzeni
ABOUT MEGA
The Mpumalanga Economic Growth Agency (MEGA) is the official Economic Development Agency for the Mpumalanga Provincial Government.
MEGA’s primary mandate is to foster the sustainable growth and development of Mpumalanga’s economy through its operational activities of Trade and Investment Promotion, Development Funding, Equity Investments, and Property and Infrastructure Development. The Agency remains accountable to the Mpumalanga Department of Economic Development and Tourism (DEDT). MEGA is the foreign investor’s or trader’s first point of contact for doing successful business in Mpumalanga Province. Through the Trade and Investment Promotion Division, the Agency provides a variety of services to potential investors and trading partners.
PLANNING THE WAY FORWARD
MEGA SERVICES
MEGA staff will go out of their way to make the process of investing in Mpumalanga or starting a business in the province easy. MEGA is focussed on customer needs and provides innovative solutions with a high level of service. Services include:
• Foreign Trade Promotion
• Investment Promotion
• Funding
• Property Management and Infrastructure Development
National government has articulated a Nine-Point Plan which seeks to prioritise projects that will tackle key economic issues. MEGA is aligned with the plan, which include issues relevant to growing the provincial economy:
• revitalise agriculture and the agro-processing chain
• advancing mineral beneficiation
• implementing the Industrial Policy Action Plan (IPAP) effectively
• unlocking the potential of SMMEs, cooperatives and township and rural enterprises
• resolving the energy challenge
• stabilising the labour market
• upscaling private investment
• investment in science and technology, water and sanitation, transport and broadband connectivity
MAPUTO DEVELOPMENT CORRIDOR
The Maputo Development Corridor is South Africa’s leading Spatial Development Initiative (SDI), linking Mpumalanga Province, Gauteng Province and the Nkomazi Special Economic Zone with the deepwater Port of Maputo in Mozambique. This efficient corridor provides investors and exporters with good access to the export markets of South East Africa, the Indian Ocean Rim and Far East Asia. The Maputo Development Corridor comprises road,
SOUTH AFRICA
rail, Special Economic Zone, border posts, port and terminal facilities. The corridor runs through the most highly industrialised and productive regions of Southern Africa. The Corridor has been extensively upgraded to international standards and links the industrial heartland of South Africa to its nearest port in Maputo, Mozambique, which is one of the fastest-growing countries in South East Africa.
KEY SECTORS AGRICULTURE
Agriculture in Mpumalanga is responsible for 3% of the province’s gross value added by region (GVA-R) and can be divided into the following categories (see map, right).
AGRICULTURE
SUMMER CEREALS & LEGUMES
MAIZE Maize meal
SOYA Meal, Edible oil
CANOLA Edible oil
SUNFLOWER Edible oil
TROPICAL & SUBTROPICAL FRUIT
CANE SUGAR Sugar / confectionery
CITRUS Juice & concentrate
MANGOES Dried, frozen, juice & concentrates
LITCHIS Dried, frozen, juice & concentrates
AVOCADOES Avocado oil
GUAVA Dried, frozen, juice & concentrates
MACADAMIA NUTS
Processed & confectionery
Mpumalanga Province is one of South Africa’s most productive and important agricultural regions and plays a key role in the export profile of South Africa, primarily in fruit and nuts. The province’s economic diversity extends into the agriculture sector where the natural topography of the province divides this sector between the Highveld and Lowveld Regions.
The Highveld Region in the west of the province is at an elevation of between 4 000 and 6 000 feet above sea level. This allows for the large-scale and commercial production of cereals and legumes like maize, soya, canola and sunflower.
The subtropical region of the Mpumalanga Lowveld plays a key role in the agricultural export profile of the province, primarily in fruit and nuts.
Mpumalanga Province is one of the world’s largest producers and exporters of citrus fruit. Duty-free exports of South African citrus to the USA under the African Growth and Opportunity Act (AGOA) reached a value of $122.7-million in 2023 and are expected to continue their strong annual growth as the USA is still considered a premium market.
KEY SECTORS FORESTRY
HIGHVELD : Summer cereals and legumes: maize, soya, canola, sunflower. Animal products: bovine meat, swine, sheep and poultry.
LOWVELD: Subtropical and citrus fruits, nuts and cane sugar.
Mpumalanga Province is the world’s largest producer and exporter of macadamia nuts. The province earned $232-million in exports in 2023, $32-million of this to the US. There have been major new investments in processing facilities in Mpumalanga.
Mpumalanga’s rich agricultural produce is utilised by companies such as McCain, Nestlé and PepsiCo.
9:1
Forestry is a key driver for the development of Mpumalanga’s rural economy and a major provider of job opportunities. About 40% of SA’s sustainable forests are located in Mpumalanga Province.
The industry comprises logging, saw-milling, wood products, wood board, pulp and paper as well as specialised cellulose. Specialised cellulose is a sought-after natural, renewable fibre with a wide range of uses in the textile, consumer goods, foodstuff and pharmaceutical industries and is produced in large quantities at Sappi Ngodwana.
R9.5 billion
Amount invested in the foresty industry
PG Bison has recently invested R560-million in a new front-end dryer for its particle board plant in Mkhondo (Piet Retief). The company is also building a new medium-density fibreboard (MDF) plant at its Mpumalanga plant.
SAFCOL/Komatiland is the state forestry company with commercial and non-commercial operations covering a land area of 187 320ha.
Sonae Arauco is an established investor and a local BEE company, the FX Group, has established a greenfield particle board plant in Lothair in the Gert Sibande District.
Mpumalanga’s ratio of commercial farmers to small-scale farmers
KEY SECTORS MINING, MINERALS AND ENERGY
Mining is the province’s largest single sector, providing employment to 5.2% of the province’s workforce and making up 20% of gross value added by region (GVA-R).
Mpumalanga is the third-largest coal-exporting region in the world with 83% of South Africa’s coal production and 50% of national coal reserves. Coal is the lifeblood of the provincial economy, fuelling 11 Eskom power plants, which produce 80% of South Africa’s electricity. Coal is Mpumalanga’s single largest export product, shipping mainly to India and Japan.
of South Africa’s coal production
Other minerals: Gold mining takes place in Evander, Pilgrim’s Rest and Barberton. Gold is the second-largest export from the province. Platinum and chrome ore mining are located in the Steelpoort and Burgersfort areas in the north of the province and make up part of the Bushveld Igneous Complex.
The mining services and technology industry is an important subsector in Mpumalanga. With over a century of commercial mining operations in the province, homegrown technologies are now exported around the globe.
National utility Eskom will spend R3.3-billion on the revival of the Matla coal mine. Exxaro Resources will manage the project and do the mining while major companies such as DRA, Worley, Sandvik and WBHO will also be involved.
Other companies engaged in expansion of life-of-mine projects are Pan African Resources and Evander (Elikhulu tailings), Exxaro Resources (Leeuwpan) and South32, which is spending about R4.3-billion at Klipspruit.
Platinum is an important mineral for the modern economy. Two Rivers is a joint venture between Implats (46%) and African Rainbow Minerals which is located on the southern part of the eastern limb of the Bushveld Igneous Complex, 35km south-west of Burgersfort in Mpumalanga.
Lydenburg is home to the Lion ferrochrome smelter that is a joint venture between Glencore and Merafe Resources.
KEY SECTORS GREEN ECONOMY AND JET
Mpumalanga has historically been at the heart of the South African energy and industrial complex and is still heavily reliant on the mining and burning of fossil fuels.
The Mpumalanga Provincial Government has been proactive in exploring opportunities in the Green Economy and pursuing a just transition to a low-carbon economy which secures the future and livelihoods of workers and their communities.
• Building technologies: greener and more energy-efficient
• Transport and logistics: greener and more energy-efficient
• Established the Mpumalanga Green Energy Cluster Agency
50% of South Africa’s national coal reserves
Achieving such a just transition would require an integration of economic opportunities in sectors outside of energy and mining.
A Just Energy Transition (JET) to a Green Economy presents th following opportunities:
• Sustainable smart agriculture: environmentally friendly agriculture and agricultural processing
• Circular Green Economy: waste recycling, water reclamation, land rehabilitation
• Soft infrastructure: reskilling and institutional capacity-building for a carbon-neutral future
• Hard infrastructure: investment and expertise are needed in urban planning, water and waste management
Specific opportunities include:
•There are plans for the decommissioning of 11 000MW of Eskom’s coal-fired capacity by 2030. Opportunities are presented by repurposing land.
• The vast new fields of natural gas found off the coast of Mozambique could have a big impact on the Mpumalanga economy.
• A Renewable Energy Development Zone (REDZ) is planned for eMalahleni / Witbank where coal jobs are at risk.
Mpumalanga has ESKOM POWER plants
KEY SECTORS MANUFACTURING
Three primary pillars of the manufacturing sector in Mpumalanga account for more than 60% of the output of the manufacturing sector, which overall makes up 15% of gross value added, regional (GVA-R).
MAIN EXPORTS
STAINLESS STEEL
Cutlery
Catering equipment
Surgical instruments
Automotive components
STEEL White & grey goods
Pipes & tubes
Wire
PETROCHEMICALS
Plastic products
Recycling plastics
Artificial rubber products
Paint & vanish
Inks & dyes
FOOD PROCESSING
Maize meal
Machinery
Frozen & dehydrated
VEGETABLES Preserves, pickles & condiments
Nuts
PAPER Recycling
SUGAR Confectionery
MINING Machinery & services
RENEWABLE ENERGY
Solar & biofuel
Biomass
Fuel, petroleum and chemical products are manufactured at the Sasol Secunda plant in Secunda, Gert Sibande District. It is one of the world’s largest synthetic fuels facilities, producing 60-million litres of liquid fuel a day. Products produced include petroleum, paraffin, jet fuel, creosote, bitumen and waxes.
The ferro-alloy and stainless-steel industries are based in the Nkangala District. Columbus Stainless in Middelburg is Africa’s only producer of stainless-steel flat products. Samancor Chrome (Ferrometals), the world’s second-largest ferrochrome producer, has two plants in Mpumalanga.
Agro-processing is mainly based in the Lowveld Region and consists of manufacturing forestry products (pulp, paper and cellulose), sugar at the Selati RCL Foods plants in Nkomazi and processing subtropical fruit and nuts.
The province’s flourishing macadamia nut industry has a number of large processing facilities based around the provincial capital, Mbombela. Subtropical fruits like mango, banana, papaya and citrus are processed into juice concentrate or dried for export.
There is a geographical divide in the manufacturing sector. Fuel, petroleum and chemical production occurs in the southern Highveld Region clustered around Sasol’s plants.
The northern Highveld area, including Middelburg and eMalahleni (Witbank), is home to ferro-alloy, steel and stainless-steel concerns. Creative thinking kicked in when Highveld Steel’s troubles reached a tipping point. The 1 000ha property in eMalahleni has been re-purposed as a multi-purpose site for industry and commerce. Called the Highveld Industrial Park, the project promotes a wide range of manufacturing enterprises.
In the Lowveld, agricultural and forestry products are processed while Sappi’s giant mill is close to the company’s forests south-west of the provincial capital, Mbombela.
KEY SECTORS
TOURISM
The Tourism Industry in the Mpumalanga Province is one of the most strategic sectors and has the potential
to grow the economy and contribute to job creation. The importance of tourism to the economy of Mpumalanga cannot be overstated.
1.1
International tourists in 2023
Despite the lacklustre global economic growth and the decline in disposable income, foreign and domestic tourists have been steadily visiting Mpumalanga’s shores. Over 1.1-million international tourists visited Mpumalanga in 2023 with international tourists spending R3-billion in the province. The casino industry million
Income
has enjoyed great growth and shows signs of further potential for additional investment. Mpumalanga boasts world-class parks and reserves, astonishing botanical gardens, rivers and lakes. Safaris are a major drawcard, and the Kruger National Park is the jewel in South Africa’s tourism crown which brings in R2-billion annually. Tourism subsectors such as business travel (including conference facilities), adventure, heritage and cultural tourism all hold huge growth potential.
from Kruger National Park
INVESTMENT OPPORTUNITIES TOURISM
Selected Strategic High Impact Projects:
BOURKE’S LUCK POTHOLES HOTEL
This natural water wonder is a major tourism attraction in the Mpumalanga Lowveld. This project presents an investment opportunity for a five-star hotel and a top-quality restaurant.
The project to build a “Sky Walk” – an income-generating tourism attraction off the edge of the 700m God’s Window cliffs – giving 360-degree panoramic views out and down through a glass floor.
Feasibility study: completed EIA: commenced
Investors: secured Model: JV, BOT
3.6 BILLION
Age of volcanic and sedimentary rock at Barberton Makhonjwa Mountains, a UNESCO World Heritage Site.
BLYDE RIVER CANYON CABLE CAR PROJECT
The Blyde River Canyon is the largest and deepest green canyon in the world and offers a spectacular opportunity to build a cable car transporting tourists from the top of the canyon to the peninsula below.
Bird species recorded in the Kruger National Park, including the Kori Bustard, Martial Eagle, Southern Ground Hornbill and Lappetfaced Vulture
Nature reserves are run by the Mpumalanga Tourism and Parks Agency and Kruger National Park is run by SANParks
INVESTMENT OPPORTUNITIES PRODUCE MARKET
Selected Strategic High Impact Projects: Mpumalanga International Fresh Produce Market
MEGA is establishing a R1.2-billion fresh produce market facility located in Mbombela, the Mpumalanga International Fresh Produce Market (MIFPM). To date the province has invested an estimated R540-million in the project.
Mpumalanga is one of South Africa’s most productive and important agriculture regions. It is home to predominantly tropical and subtropical crops and vegetables owing to its conducive climate. The tropical and subtropical crops consist of avocado, banana, citrus, ginger, granadilla, guava, litchi, macadamia nut, mango, papaya and pineapple.
The vegetables produced include potatoes, tomatoes, pumpkins, sweet corn, onions, sweet potatoes, beetroot, carrots, green peas, cauliflower, cabbages and green beans.
Site: The site is in Mbombela on a 248ha plot less than 10km from the Central Business District. It is situated within the Maputo Development Corridor (MDC), linking Mpumalanga, Gauteng Province and the Nkomazi Special Economic Zone with the deepwater Port of Maputo in Mozambique.
The market: The market will give local farmers access to local, regional and international fresh produce markets and will aid in ensuring food security for the region.
The infrastructure of the MIFPM will attract international as well as the large domestic food retailers as a key processing and distribution
point. It will also secure Mpumalanga’s position in the regional export market in fresh produce.
The market will offer:
• Open trading halls for fruit and vegetables
• A meat, fish and flower market
• Complementary cold storage, ripening facilities and pallet handling
• Processing facilities
• An export hall
• Bulk-breaking facilities for retail outlets
• Links with statutory organisations such as customs, PPEBC and EuroGap
• Transport and logistics enterprises
• Shared collation and pack house facilities for SMMEs
• Commercial services including banks and restaurants
Selected Strategic High Impact Projects: Nkomazi Special Economic Zone
The Nkomazi Special Economic Zone has been officially designated and MEGA has been appointed to establish the entity.
SEZs are geographically designated areas set aside for specifically targeted economic activities that are supported through special tax incentives. An SEZ aims to be an economic development tool to promote rapid economic growth by using various support measures to attract targeted foreign and domestic investments and technology. The main goal is to support the implementation of South Africa’s industrial development programme.
Strategically positioned in the border town of Komatipoort, the SEZ offers a multi-sector base of operations along the Maputo Development Corridor which provides exporters with good access through Maputo Port to the export markets of South East Africa, the Indian Ocean Rim and Far East Asia.
The Nkomazi SEZ will target investment from the agriculture, agro-processing, nutraceuticals and fertiliser production sectors, as having a strong focus on logistics and trade services.
The NSEZ offers the investor a unique and incentivised base of operations on the Maputo Development Corridor running through the most highly industrialised and productive regions of Southern Africa.
The Maputo Corridor is bound to develop even more as the Maputo harbour improves its handling and scheduling
capacity. In the event that a second rail line to Maputo to complement the current rail link is developed, the shipment of mining products
FOREIGN TRADE
FOREIGN TRADE
MTIP photo credits. Cover: Top three: Ryan Baker/Pexels; Forestry South Africa; Sasol: bottom four: SA Tourism/Flickr; University of Mpumalanga; Mpumalanga Tourism and Parks Agency (MTPA); Enza Construction. Body: cutting wood (Ludwig Sevenster); chimney at night (Sasol); tourism opportunities (MTPA); market variety (Jacopo Maiarelli on Unsplash); furnace (Anglo American); macadamias (SCTIE); timber (Ludwig Sevenster); coal (Thungela Resources); citrus exports (Citrus Growers Association); truck (Nelson Gono on Unsplash); port (TNPA); fruit pickers (Chris Kirchoff/ Brand SA); red peppers (Omotayo Tajudeen on Unsplash). Outside back cover: Sasol.
THE PERFECT LAUNCH PAD FOR AFRICA
The African Continental Free Trade Area could revolutionise African trade: Mpumalanga is the perfect launch pad for manufacturers and exporters.
CREDIT: TRALAC
The African Continental Free Trade Area (AfCFTA) has been agreed on by almost all African nations and holds the potential to change the nature and size of trading on the continent in profound ways.
Mpumalanga Province, as a strategically positioned region with a dynamic manufacturing sector and excellent logistics and infrastructure, provides the perfect launch pad for investors looking to take advantage opportunities that will be created by the AfCFTA agreement.
The burgeoning African middle-class is a global trend that economists are carefully watching. As more sophisticated infrastructure is rolled out across Africa, having a base with good connections to ports and with good air, road and rail connectivity will be vital. Mpumalanga has all of that, and more.
The operational phase of the AfCFTA was launched during the 12th Extraordinary Session of the Assembly of the Union on the AfCFTA in Niamey, Niger, on 7 July 2019. Start of trading became officially legal under the AfCFTA Agreement as of 1 January 2021.
On 7 October 2022, the AfCFTA Secretariat launched the AfCFTA Guided Trade Initiative in Accra to allow for commercially meaningful trade under the agreement to commence for eight participating countries: Cameroon, Egypt, Ghana, Kenya, Mauritius, Rwanda, Tanzania and Tunisia, representing the five regions of Africa. This initiative was used to pilot the operational, institutional, legal and trade policy environment under the AfCFTA.
As at August 2023, 47 of the 54 signatories (87%) had deposited their instruments of AfCFTA ratification (ordered by date): Ghana, Kenya, Rwanda, Niger, Chad, Eswatini, Guinea, Côte d’Ivoire, Mali, Namibia, South Africa, Congo, Djibouti, Mauritania, Uganda, Senegal, Togo, Egypt, Ethiopia, Gambia, Sahrawi Arab Democratic Republic, Sierra Leone, Zimbabwe, Burkina Faso, São Tomé & Príncipe, Equatorial Guinea, Gabon, Mauritius, Central African Republic, Angola, Lesotho, Tunisia, Cameroon, Nigeria, Malawi, Zambia, Algeria, Burundi, Seychelles, Tanzania, Cabo Verde, Democratic Republic of the Congo, Morocco, Guinea-Bissau, Botswana, Comoros and Mozambique.
In January 2023 South African President Cyril Ramaphosa officiated over the first official trade shipment under the agreement, out of the Port of Durban.
Af CFTA FAST FACTS
Africa’s exports could increase by $560-billion and some experts predict that continental business and consumer spending could reach $6.7-trillion by 2030.
$450 BILLION
AfCFTA could boost regional income by 7% or $450-billion (Source: the World Bank)
ABOUT SADC
South Africa is a member of one of Africa’s oldest regional organisations, the 16-member Southern African Development Community, (SADC). This enables duty-free trade within a growing market of more than 360-million people. All goods shipped under SADC Certificate of Origin receive duty-free status.
Duty-free trade
AfCFTA could lift -million people out of poverty, according to the World Bank
AfCFTA could boost wages by up to * World Bank estimate 30
10%
within a GROWING MARKET of more than360 million people
Establishing a business in South Africa
South Africa has eased the barriers to doing business for locals as well as international companies and individuals.
new legislation, no new Close Corporations can be created but CCs can convert to companies.
Registration of company
The company must be registered with the Companies and Intellectual P roper ties Commission (CPIC) in Pretoria within 21 days of the company being started. There are a range of administrative procedures that need to be fulfilled.
Bank account
A business bank account must be opened in the company’s name with a bank in South Africa.
Primocane Capital has developed a blueberry farm for Pan African Resources, a business that will provide jobs and revenue streams for residents of the Barberton area.
Autobody repair is a thriving subsector. Credit: Seda
Autobody repair is a thriving subsector. Credit: Seda
become the sites of solar farms as they are already connected to the transmission grid. Credit: SCATEC Autobody repair is a thriving subsector. Credit: Seda
South Africa has a sophisticated legal, regulatory and banking system. Setting up a business in South Africa is a relatively straightforward process with assistance b eing offered by organisations such as the Department of Trade, Industry and Competition and provincial investment agencies like the Mpumalanga Economic Growth Agency (MEGA).
South African law regulates the establishment and conduct of businesses throughout the country. Tax, investment incentives, regulations governing imports, exports and visas are uniform throughout the country.
The particular environment varies from province to province with regard to the availability of human and natural resources, the infrastructure and support services, business opportunities and the quality of life. In this respect, MEGA can offer specific advice about the business environment in the province.
Business is regulated by the Companies Act and the Close Corporation Act, which cover accounting and reporting requirements. Under
Registration with the receiver of revenue
• As a Provisional Taxpayer
• As a VAT vendor
• For Pay As You Earn (PAYE) income tax payable on money earned by employees
• For Standard Income Tax on Employees
Registration with the Department of Labour
Businesses employing staff will have to contact the Department of Labour regarding mandatory contributions to the Unemployment I nsurance Fund (UIF). Register with Compensation Commissioner for Compensation Fund Files with the Compensation Fund (in the Department of Labour) for accident insurance (Workmen’s Compensation).
Registration with the local authority
Relevant only to businesses dealing in fresh foodstuffs or health matters.
Other procedures
• Checking exchange control procedures (note that non-residents are generally not subject to exchange controls except for certain categories of investment).
• Obtaining approval for building plans
• Applying for industry and export incentives
• Applying for import permits and verifying import duties payable
or she has tried to find a suitably qualified local employee prior to hiring a foreigner?
INDUSTRIALPROPERTYTORENTINHARRISMITH
• Registering as an exporter if relevant and applying for an export permit.
There are a variety of forms which businesses can take, including private and public companies, personal liability companies, non-profit companies, state-owned companies and even branches of foreign companies (or external companies).
Foreign nationals who wish to establish their own business or a partnership in South Africa must, apart from having sufficient funds to support themselves and their family, be able to invest at least R2.5-million in the business.
Branches of foreign companies fall under Section 23 of the Companies Act of 2008 and are required to register as “external companies” with the CIPC. An external company is not required to appoint a local board of directors but must appoint a person resident in South Africa who is authorised to accept services of process and any notices served on the company. It must also appoint a registered local auditor and establish a registered office in South Africa.
Patents, trademarks and copyrights
Trademarks (including service marks) are valid for an initial period of 10 years and are renewable indefinitely for further 10-year periods. Patents are granted for 20 years, normally without an option to renew. The holder of a patent or trademark must pay an annual fee in order to preserve its validity. Patents and trademarks may be licensed but where this involves the payment of royalties to non-resident licensors, prior approval of the licensing agreement must be obtained from the dtic. South Africa is a signatory to the Berne Copyright Convention.
Permits for foreign nationals
Work
permits
In considering whether or not to grant a work permit, the Department of Home Affairs will first evaluate the validity of the offer of employment by conducting a number of checks to confirm the following:
• Has the Department of Labour been contacted?
• Has the position been widely advertised?
• Is the prospective employer able to prove that he
The funds must originate overseas, be transferable to South Africa and belong to the applicant (ie emanate from the applicant’s own b ank account). The business must also create jobs for South African citizens. After six months to a year, proof will have to be submitted that the business is employing South African citizens or permanent residents, excluding family members of the employer.
Appl ications for work permits for selfemployment can only be lodged at the South African Consulate or Embassy in the applicant’s country of origin. The processing fee is US$186. The applicant would also have to lodge a repatriation guarantee with the consulate/embassy equivalent to the price of a one-way flight from South Africa back to his or her country of origin.
This guarantee is refundable once the applicant has either left South Africa permanently or obtained permanent residence. Any application for an extension of a business permit may be lodged locally. The processing fee per passport holder is R425. Some countries also need to pay R108 per return visa.
A list of countries to which this applies is available from the Department of Home Affairs.
MEGA assists investors in applying for the relevant work permits to conduct their business.
A list of countries to which this applies is available from the Department of Home Affairs. MEGA assists investors in applying for the relevant work permits to conduct their business.
A list of countries to which this applies is available from the Department of Home Affairs. MEGA assists in vestors in applying for the relevant work permits to conduct their business.
What can MEGA do for you?
MEGA will help new businesses by assisting in project appraisal and packaging, putting investors in touch with relevant agencies and government departments, a lerting i nvestors to i nvestment incentives and setting up joint ventures where required. ■
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.
PG Bison is one of several companies that are ramping up investment into the Mpumalanga economy. A new front-end dryer has been installed at Mkhondo.
Tourism is a popular investment sector. Thebe Tourism Group has invested in a luxury hotel on the Skukuza bridge. The Kruger Shalati Development is in the Kruger National Park.
Credit: Roger Bosch/Brand SA
South Africa wishes to diversify its economy a nd incentives are an important part of t he 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 lo cal and foreign investment into targeted economic sectors, but the Industrial Development Corporation (IDC) is the most influential funder of projects across South Africa.
Th e re are a variety of incentives available and these incentives can broadly be categorised according to the stage of project development:
• C onceptualisation of the project – including feasibility studies and research and develop-
ment (grants for R&D and feasibility studies, THRIP, Stp, etc)
• C apital 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)
• S ome 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).
PHOTO: PG Bison
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 fundin g. A second phase of the programme was launched in 2016. The gran ts are not handouts as th e funding covers a maximum of 50% of the cost of the investment, with the remaind er to be sourced elsewhere.
The Enterprise Investment Programme (EIP) makes targeted grants to stimulate and promote investment, BEE and employment creation in the manufacturing an d 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
• C o-operative Incentive Scheme, which is a 90:10 matching cash grant for registered primary co-operatives
• S ector 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 design-
Seda
Investments in infrastructure can attract rebates. The Highveld Industrial Park hosts factories in different sectors.
Many incentives are available to support small businesses and startups. Established businesses are encouraged to support smaller entities along their supply chain.
PG Bison are investing heavily in expanding manufacturing capacity. Credit: PG Bison
ed 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.
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. ■
Department of Trade, Industry and Competition: www.thedtic.gov.za
Official South African government incentive schemes: www.investmentincentives.co.za
Online Resources
Mpumalanga’s agriculture sector is a major contributor to provincial GDP, with grains, fruits, forestry and livestock all cultivated and reared by large commercial farms and small-scale farmers in every region. Karan Beef, with operations at several sites in the province, not only raises cattle but processes and exports beef to many countries. Credit: Karan Beef
Agriculture
The International Fresh Produce Market is preparing to trade.
Mbombela’s International Fresh Produce Market will open new markets for farmers.
With more than 1.5 tons of steel and a design that encompasses 17 buildings, the International Fresh Produce Market (IFPM) built for the Mpumalanga Economic Growth Agency (MEGA) will make a big impact on the agricultural sector in the province.
As of April 2024, site progress achieved was reportedly 97% ( The Citizen ), and the 29 000m² floor area will soon be put to use trading the province’s produce. Enza Construction, a wholly owned subsidiary of Crowie Holdings, was the main contractor on the project, and Orbic Architects designed the market.
The IFPM is in Mbombela, less than 10km from the Central Business District. It is situated within the Maputo Development Corridor (MDC), linking Mpumalanga, Gauteng Province and the Nkomazi Special Economic Zone with the deepwater Port of Maputo in Mozambique.
Agri-hubs throughout the province, led by co-operatives, will be encouraged to supply produce to the IFPM which will give them direct access to new markets and opportunities. In this way, small-scale growers will be better incorporated into the mainstream economy.
Mpumalanga cultivates predominantly tropical and subtropical crops and vegetables such as avocados, bananas, citrus, ginger, granadillas, guavas, litchis, macadamia nuts, mangoes, papayas and pineapples.
Among the facilities that the market will offer are open trading halls for fruit and vegetables, a meat, fish and flower market, cold storage, ripening facilities and pallet handling, processing facilities, an export hall and bulk-breaking facilities for retail outlets. Linked services such as customs, transport and logistics, banks and restaurants will support the main activities of the IFPM.
More agricultural infrastructure in the form of an agroprocessing facility is planned for the area near the Kruger
SECTOR INSIGHT
A market brief on opportunities in agriculture has been prepared.
Mpumalanga International Airport (KMIA) and private investors are being approached.
The Mpumalanga Green Cluster Agency, a new body set up to promote the green economy, has published a series of briefing documents on opportunities in various sectors.
The Cluster has representatives from government, business and the academic world. With coal mining and coal-fired power stations likely to play a reduced role in the future, Mpumalanga is looking to its other abundant resources for economic growth.
The Mpumalanga Department of Economic Development and Tourism has initiated the Agency to look for increased opportunities in the green economy.
In the Sustainable Agriculture briefing, the Agency identifies investment opportunities in five broad categories within the province:
• renewable energy applications
• regenerative agriculture
• controlled environment agriculture
• smart farming
• agri-waste management
The South African macadamia industry produced 83 556 tons in 2023, a better crop result than 2022 and much better than the 53 000 tons achieved in 2021. Fully 97% of the crop is exported. Thousands of new trees are being planted every year. In 2022, Mpumalanga was responsible for 37% of the country’s 6 235 new hectares. There are more than 65 000 hectares planted to macadamias in the country. Sophisticated machinery is increasingly being used and data usage is becoming vital for sustainability.
Avocados are not as widespread, but the planting of 800 new hectares annually suggests that global markets are responding well to farms in Mpumalanga and elsewhere. The website of the South African Avocado Growers Association lists 25 companies that export the fruit.
Mpumalanga accounts for about 21% of South Africa’s citrus production and a third of its export volumes, with Valencias being the province’s most popular varietal and Nelspruit being the centre of the sector.
Litchis, mangoes and bananas also thrive in the province. Hazyview is an important source of bananas, with 20% of South Africa’s production originating there.
Phez’ Komkhono Mlimi is a provincial government assistance programme providing mechanisation and input support to smallscale and new farmers. Since its inception, the programme has overseen the cultivation of 199 169ha of land and 12 720 food gardens. In the five years to 2024, 37 733 farmers benefitted from the programme, of which 22 505 are women.
Beefing up exports
A major decision for South Africa’s beef exporters was announced in 2024; Saudi Arabia agreed to import again after a long break. Exports for the month of January 2024 represented a seven-year high of 3 225 tons.
Several factors conspired to keep exports down in the years before 2024, but the conditions to grow the market are very
ONLINE RESOURCES
Citrus Growers Association: www.cga.co.za
Red Meat Producers’ Organisation: www.rpo.co.za
South African Subtropical Growers’ Association: www.subtrop.co.za
Many kinds of cattle thrive in Mpumalanga, including the Ankole breed.
favourable. South Africa has achieved the remarkable feat of switching from being a net importer of beef to an exporter and the beef sector is well segmented with excellent infrastructure all along the value chain.
One of the country’s biggest beef producers and traders, Karan Beef, runs an abattoir in Balfour and in the neighbouring Gauteng province, the company’s Heidelberg farm feedlot is, at 2 330ha, the largest in the world.
The Mpumalanga Department of Agriculture, Rural Development Land and Environmental Affairs is supporting livestock farmers through the Masibuyele Esibayeni Programme (MESP). Applicants can receive four kinds of livestock, including up to four bulls and 100 heifers for commercial farmers who meet the criteria. In the smallholder category the limit is one bull and 25 heifers whereas communal farmers are entitled to one bull only.
An indication of the suitability of the province for a variety of cattle breeds can be gleaned from the fact that Ntaba Nyoni Cattle runs studs for five breeds, Ankole, Boran, Bonsmara, Nguni and Wagyu. The 5 100ha farm, located near Badplaas, is owned by current South African President Cyril Ramaphosa. ■
Ntaba Nyoni Cattle Farm
Ensuring quality from gate to plate
Consistent dedication to sustainability and high quality underpin KARAN BEEF’S export drive, as Export Director Matthew Karan explains.
Where are your main facilities located?
Our primary facilities are situated in Heidelberg (feedmill, pictured below), Nigel (feedlot and feedmill), Balfour (abattoir), City Deep (distribution offices) and Albert Falls (feedlot and abattoir), pictured above left.
To what extent is KARAN BEEF involved in the beef production chain?
At KARAN BEEF, we’re engaged throughout the entire beef value chain from the initial stages to the final product. We start by procuring weaner calves, which we carefully nurture through feeding processes until they’re market-ready. At that point, we skilfully process them into premium Class-A-Beef products, ensuring quality from gate to plate.
What sort of volumes does KARAN BEEF deal with?
KARAN BEEF Balfour processes up to 380 000 head of cattle annually and KARAN BEEF Albert Falls processes up to 100 000 head of cattle annually.
Is KARAN BEEF working on sustainability?
Consistent dedication to sustainability remains a priority for the KARAN BEEF group. It showcases its environmental stewardship through a range of initiatives. Maintaining adherence to the National Environmental Act and securing essential licences are ensured through a dedicated ISO department. Professional consultants, including a full-time Environment Consultant, are employed for expert guidance. Environmental Impact
Assessments are diligently conducted as needed to uphold environmental standards.
Does Halaal certification play a role in assisting you in exporting to new markets?
KARAN BEEF is Halaal certified and serves a wide array of Arabic markets both internationally and domestically.
KARAN BEEF is honoured to provide the Kingdom of Saudi Arabia with top-quality Class A South African Beef.
Where does KARAN BEEF get exported to currently?
All of Africa, Hong Kong, Malaysia, Seychelles, the Kingdom of Saudi Arabia, the Arab Republic of Egypt, the Hashemite Kingdom of Jordan, the Kingdom of Bahrain, the People’s Republic of China, the Republic of Mauritius, the Republic of Maldives, the State of Kuwait, the State of Qatar, the Sultanate of Oman and the United Arab Emirates.
Does KARAN BEEF see other export market opportunities?
KARAN BEEF is actively engaged in the expansion of its export operations to the South-East Asian Market. KARAN BEEF is at the forefront of efforts aimed at advancing South African beef exports globally.
What is the KARAN BEEF Academy?
The KARAN BEEF Academy is an educational video series that provides essential cattle farmer training to farmers of South Africa. The 10-part series aims to educate aspiring and existing cattle farmers in South Africa with knowledge and skills to become more profitable and successful in the ever-growing beef cattle market.
Each episode focusses on crucial aspects of successful cattle farming and provides valuable insights and information to support the development of commercially viable herds that can effectively tap into current and future markets. All episodes are available in isiZulu, isiXhosa and English. ■
11 995 5000
KARAN BEEF, Africa's leading producer of premium beef, was established in 1974 in South Africa. The KARAN BEEF Group has gained global recognition for its exceptional quality beef products. Committed to upholding stringent international standards in health, hygiene, and food safety, KARAN BEEF holds certifications including FSSC 22000 and ISO 22000. Additionally, their operations are Halaal approved by the South African National Halaal Authority (SANHA) and the National Independent Halaal Trust (NIHT). With the capacity to slaughter up to 2040 cattle per day and debone up to 300 tons of beef products daily, KARAN BEEF is also authorised for export with Plant number ZA71.
Forestry and paper
Forestry’s green credentials are excellent.
One cubic metre of eucalyptus wood removes around 880kg of CO2 from the air, storing around 240kg of carbon. This is according to Forestry South Africa (FSA), the industry body that claims to represent 93% of the forestry industry. This includes all 13 corporate companies, hundreds of medium-scale forestry farmers and thousands of small-scale growers.
In the face of growing concern about the climate crisis, bodies such as FSA and the Paper Manufacturers Association of South Africa (PAMSA) have been active in promoting the green credentials of the forestry and paper sectors.
About 30% of Mpumalanga’s plantations are planted to eucalyptus, with pine representing about 50%. The province has a higher proportion of its land given over to plantations (6.4%) than any other province, even KwaZulu-Natal (5%). The province’s 491 000ha of plantation area represents 41% of the national total. FSA reports that more than 85% of this is certified as meeting the stringent environmental and social standards set by the Forest Stewardship Council® (FSC®). In addition, 40% of these plantations have international PEFC certification through the recently established Sustainable African Forest Assurance Scheme (SAFAS).
Of the 254 000ha owned or leased by Mondi for plantation forestry in KwaZulu-Natal and Mpumalanga provinces, approximately 27% are unplanted, with about 80% of these unplanted areas set aside for conservation purposes. This is mostly grassland and wetland ecosystems.
Mpumalanga has the ideal climate and topography for forests. Sabie and Graskop represent the hub of the industry, but
Forestry South Africa: www.forestry.co.za
Paper Manufacturers Association of South Africa: www.thepaperstory.co.za
Sawmilling South Africa: www.timber.co.za
A new sustainability body has been established.
commercial forests are also found to the east and south along the Swaziland border.
Forestry accounts for about 8% of Mpumalanga’s gross domestic product. The sector comprises logging, saw-milling, wood product and pulp and paper manufacture. Pulp and paper are the main exports, along with sawn lumber, wood chips and wattle extract. Most sawn timber in South Africa is used in the construction sector.
One of the biggest operations in the forestry and paper sector in Mpumalanga is Sappi’s Ngodwana Mill. Although it has a big international footprint, Sappi’s biggest sales volumes are achieved in South Africa, making up nearly 50% of group sales. Sappi’s other large facility in the province, the Lomati Sawmill in Barberton, produces kiln-dried Southern African pine lumber from sawlogs supplied by Sappi Forests.
The Industrial Development Corporation (IDC) has a stake in Hans Merensky Holdings and York Timbers, which has planted out 40ha in high-value crops as part of a diversification strategy.
PG Bison, a subsidiary of KAP Industrial Holdings, is investing R560-million in a new front-end dryer for its particleboard plant in Mkhondo. The company is also building a new medium-density fibreboard (MDF) plant. ■
SECTOR INSIGHT
Mondi
Eucalyptus is an excellent carbon sink.
Oil and gas
New sources for LNG imports are needed.
The announcement by Sasol that it will cut supplies of natural gas from Mozambique in 2026 has caused considerable discussion among users of the energy source, including the Industrial Gas Users Association – Southern Africa (IGUA-SA), which said that this would have a significant impact on the manufacturing sector.
IGUA-SA’s website notes that natural gas could bolster socioeconomic growth, attract investment and render “the mining, energy and manufacturing sectors more efficient and globally competitive”. The association has members in the mining, manufacturing, agricultural and transport sectors.
Sasol, an international chemical and energy company, has several large plants in Mpumalanga and it has been the dominant national player in these sectors for decades. With more than 30 000 employees and a presence in 30 countries, the decisions Sasol make have a big impact on society. A series of partnerships entered into by Sasol illustrate that the company has decided that the energy future has to be different to the present.
Subsidiary company Sasol ecoFT is producing sustainable fuels and chemicals from green hydrogen and sustainable carbon sources via the Power-to-Liquids process and using the Fischer-Tropsch technology (FT) which has helped set the company apart in its field. Products manufactured at the Sasol complex in Secunda 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.
The Department of Mineral Resources and Energy (DMRE) has published a draft Gas Master Plan which it says, “considers the complete gas topology ranging from demand, supply, importation, infrastructure, and distribution networks”. The DMRE is also engaged with the question of the Sasol decision and is working with the private sector to explore alternatives. One of the alternative sources being explored is a Mozambican state-owned hydrocarbon company with which DMRE agencies are negotiating to buy natural gas.
iGas, a gas development company that is a subsidiary of the state-owned Central Energy Fund, now jointly owns 80% of
SECTOR INSIGHT Independent Power Producer Programme: www.ipp-projects.co.za Industrial Gas Users Association – Southern Africa: www.igua-sa.org Petroleum Agency South Africa: www.petroleumagencysa.com
www.sasol.com
A Central Energy Fund subsidiary has acquired 40% of the Rompco pipeline.
the Republic of Mozambique Pipeline Company (Rompco) with CMG, the Mozambique state gas company, after buying an additional 40% from Sasol. Sasol, the third partner in the company, continues to operate the pipeline.
The Liquefied Natural Gas Independent Power Producer Procurement Programme (LNG IPPPP) is part of the broader programme of the National Department of Mineral Resources and Energy which encourages private investment in renewable energy, namely the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The total allocated to gas-to-power in the national power plan is 3 726MW, of which 3 000MW is for LNG. ■
Mining
Acid mine water poses a serious threat.
A massive rehabilitation project is underway at Kromdraai.
Acid mine water is one of the many environmental challenges faced by resource-rich Mpumalanga.
Daily Maverick puts the number of “abandoned, ownerless or derelict mines” across South Africa above 6 000. In 2022 one of these, Khwezela Colliery at Kromdraai, experienced what the current owners describe as an “uncontrolled release of mine-impacted water” which led to severe environmental damage downstream. This mine was among the package of coal assets purchased from Anglo American by Thungela Resources, a multi-phase deal which was finalised in 2022.
The pollution plume affected approximately 60km of river ecosystem, threatened aquatic life and created risks for local communities. Since then, Thungela has invested approximately R1-billion in various activities. These include:
• Active treatment plant: R380-million
• Wetlands: R80-million
• Passive treatment plant: R18-million
• Kromdraai Phytoremediation Project: R2-million
• Construction of nursery: R4.1-million
• Loskop fish breeding facility: R3.3-million
• Addressing illegal mining: +R500-million
• Dongalocks: R20-million
Dongalock is an environmentally friendly technology used in wetland and river rehabilitation programmes to manage the risk of stormwater damage and flooding in vulnerable areas and passivewater treatment projects.
The Council for Geoscience has highlighted the dangers that oil and rock subsidence above abandoned coal mines carry, especially in the Witbank area. Not only can sinkholes occur but water movement channels can be materially altered, leading to unexpected events.
SECTOR INSIGHT
Exxaro has created a digital twin of its Belfast mine.
Exxaro has spent R3-billion on creating a digital twin of its Belfast mine in Mpumalanga. Using the example of Exxaro, two authors from financial services company Mazars have outlined the benefits of using AI-powered technology in mining. They argue that digital twin enables an innovative approach to mining and can create a safer and more efficient environment.
Predictive maintenance, improved productivity and the elimination of downtime are further concrete benefits that will come with the increasing adoption of AI. The Mazars authors state that a recent survey conducted by the Minerals Council South Africa showed that more half of its members are already piloting various AIpowered tools while another 25% are looking to do so in the next five years.
The acquisition of the liquidated Mintails operations will increase Pan African Pan African Resources’ gold production by about 50 000oz once steady production is reached at the end of 2024. The company currently has production capacity in excess of 200 000oz of gold per annum. R400-million of a R2.5-billion funding arrangement was released by Rand Merchant Bank in March 2023.
Loadshedding in 2023 slowed the process of getting the Barberton operations running at optimum levels. The company reported in May of that year that it had lost 10 000oz worth of production because of power cuts. Tests are proving that the decision to extend deep mining at Barberton was correct. Pan African Resources reports “potential high-grade extensions to the orebodies at Fairview, Royal Sheba and Consort mines”.
Contribution
Mining contributes 25.9% of the province’s gross domestic product and employs more than 53 000 people. Mpumalanga accounts for 83% of South Africa’s coal production and is the third-largest coal-exporting region in the world. Although renewable energy is catching on in South Africa, there is no prospect of Mpumalanga’s coal-fired power stations being mothballed soon.
Council for Geoscience (CGS) CEO Mosa Mabuza reports that research is ongoing into finding ways to capture carbon produced at coal-burning power stations. The CGS is doing extensive research into the existing baseline environmental conditions on the ground so that future activities can be carefully monitored and measured against something concrete.
Tests done by the CGS indicate that not only are there mineral resources other than coal in the ground in Mpumalanga, but there is groundwater too.
Afrimat, previously listed on the JSE in the “Construction and Building Materials” section, has changed its classification to “General Mining”, a recognition of the company’s ambitious buying programme in the Northern Cape and Mpumalanga. With construction and building now contributing just 20% to operating profit, Afrimat is active in anthracite and iron ore and will further expand into phosphates, rare earth elements and vermiculite. Among its new acquisitions, Afrimat now controls the Nkomati Anthracite mine in Mpumalanga. The mine, which is in the south-eastern corner of the province, has proven resources of 8.7-million tons and upwards of 400 jobs were created over the last two years. Local
ONLINE RESOURCES
Council for Geoscience: www.geoscience.org.za
Minerals Council South Africa: www.mineralscouncil.org.za
South African Institute of Mining and Metallurgy: www.saimm.co.za
Core samples of Mpumalanga rock are laid out for testing.
communities have a 16.1% stake in the relaunched mine and the Mpumalanga Economic Growth Agency (MEGA) holds 34%.
Platinum
Platinum is an important mineral for the modern economy. Two Rivers is a joint venture between Implats (46%) and African Rainbow Minerals which is located on the southern part of the eastern limb of the Bushveld Igneous Complex, 35km south-west of Burgersfort in Mpumalanga. Northam Platinum, which has assets on both limbs of the Bushveld Igneous Complex, has purchased the Everest mine from Aquarius Platinum. Everest is adjacent to Northam’s existing Booysendal mine.
Jubilee Platinum has sold its Smelting and Refining business in Middelburg to Siyanda Resources. Sylvania Platinum now has seven PGM recovery plants that extract chrome from tailings on both sides of the Bushveld Igneous Complex. Lydenburg is home to the Lion ferrochrome smelter that is a joint venture between Glencore and Merafe Resources. Assmang, the joint venture between ARM Ferrous and the JSE-listed Assore, operates a chrome mine (Dwarsrivier) and a ferrochrome plant where chrome alloys are made. ■
Energy
Four power stations will keep burning coal.
A programme called energyDRIVE, which includes a mobile unit showcasing different technologies, reached 30 000 high-school pupils in Mpumalanga in May 2024. The initiative is supported by the South African Wind Energy Association (SAWEA), Eskom, the Danish Embassy and the Durban University of Technology.
There has been a change of plan. Mpumalanga’s coal-fired power stations are not going to be closed as quickly as originally envisioned.
The vast reserves of coal under the soil of the province are the reason for the concentration of power stations, which in turn is the reason for high levels of pollution from emissions in Mpumalanga. It was assumed that an urgent programme of shutting down coal-fired power stations would be a minimum requirement for South Africa to receive international funding for its transition from fossil fuels to cleaner sources.
The commitment to switch power sources has not changed, but the timeframe has. The experience of closing Komati has given national planners pause. Komati power station was decommissioned in 2022 and the Presidential Climate Commission (PCC) says that the sequence of steps taken to close the mine were “back to front”. By not consulting early enough and not setting up sufficient alternative economic activities, economic harm was done to locals who were dependent on the facility.
The workshops of Komati power station have been converted into a small factory for the manufacture of components for containerised microgrids, but the PCC says that more should be done. After a 2023 visit to the site, the PCC reported, “On the one hand, Eskom has taken a pioneering role in its conceptualisation of a second life of a power station, with a focus on community upliftment and social development. As
Wheeling is expanding.
SECTOR INSIGHT
PHOTO: SAWEA
Containerised mini-grids are being made on the site of an old power station.
acknowledged by all stakeholders, however, there were shortcomings in the project.” The PCC is an advisory body to the President of South Africa.
The decommissioning of the Camden, Grootvlei, Hendrina and Kriel power stations will now be delayed until 2030.
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. National utility Eskom wants to be a net-zero company by 2050. With 80 000 jobs dependent on coal mining across South Africa, the need to try to ensure a “Just Transition” is a very real one.
One of South Africa’s most successful investment projects, the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), suffered a setback in the period between 2015 and 2021. It has since been relaunched and investors are queuing up to take a stake in greener energy, but South Africa has now come up against the constraints of the national grid.
In the most recent round of bidding for projects, the Northern Cape received fewer projects than it otherwise would have if the national grid was keeping up with increased generation potential of new projects. This gives Mpumalanga a comparative advantage.
With most of South Africa’s power stations located in Mpumalanga, the issue of grid capacity does not arise. Eskom was one of the first entities to react to this opportunity to build newer, greener facilities. In July 2022, Eskom announced 18 winning bids from independent power producers (IPPs) for renewable projects on Eskom land, 4 000ha of which the utility has made
ENERTRAG: Unlocking South Africa’s transmission grid
A vision for the future
An ambitious strategy is needed to transform South Africa’s existing transmission grid and integrate renewable energy more efficiently into the national grid.
There is a critical need for an actionable plan that would not only hasten the integration of renewable energy sources but also refine the operational capabilities of transmission grid infrastructure. This plan should include a suite of initiatives designed to propel the country’s national grid into a more efficient and sustainable future, particularly unlocking the growth of the wind energy sector, a critical step towards a sustainable energy future.
A bold grid strategy for South Africa is what is required, prioritising prompt generator connections, allowing grid oversubscription and curtailment as cost-saving measures, promoting transparency in transmission data to optimise capacity use and supporting producer autonomy in self-consumption and innovative energy shifting to future-proof the energy sector.
PHOTO: SAWEA
PHOTO: Eskom
available for this first phase. Eskom owns 36 000ha in the province. A total of 1 800MW will become available to the grid and it will be cheaper to transmit because the solar or wind plants will be right next to the existing Eskom transmission lines.
According to the PCC, the pipeline of REIPPPP projects stood at R377-billion in June 2024. Applications for the development of 4.5GW were received in 2023, sharply up from the two previous years, 135MW (2021) and 1.6GW (2022). The establishment of a onestop shop to deal with registering projects is part of the reason for the expansion of potential new capacity.
The relaxation by national government of the rules regarding setting up a power plant of 100MW or less is well suited to the requirements of big timber-processing companies such as Sappi and PG Bison and all the large mining concerns that are active in Mpumalanga.
The second phase of the Strategic Environmental Assessment (SEA) for wind and solar photovoltaic (PV) energy in South Africa proposes three additional Renewable Energy Development Zones (REDZs) for wind and solar photovoltaic energy projects, taking the total number to 11. In 2021, Emalahleni became the latest REDZ to be gazetted. Previously known as Witbank, the town is at the centre of the province’s coal-mining district.
REDZs support the implementation of the Integrated Resource Plan (IRP 2019). Renewable energy projects that might be developed in these new REDZs have the potential to make significant contributions to mine rehabilitation and, by creating jobs, support a just energy transition in the specified areas including areas where coal power stations are planned to be decommissioned.
Wheeling is growing
Wheeling is getting power from a generator to an end-user located in another area through existing distribution or transmission networks. With the imminent breakup of Eskom into three divisions, including a distribution unit which will not be required to protect the interests of Eskom’s generation company, the possibility of other power generators and users of the grid has opened up.
Big companies like Amazon and Vodacom are signing wheeling arrangements to have power generated by solar and wind parks sent to them to help them meet their climate change commitments.
ONLINE RESOURCES
HyShiFT: www.hyshift.org
South African Independent Power Producers Association: www.saippa.org.za
South African Wind Energy Association: www.sawea.org
Three 110MW wind farms being constructed near St Francis Bay in the Eastern Cape will supply energy to Sasol and Air Liquide in Mpumalanga. Enel Green Power and Red Cap are building the R9-billion Impofu project. Amazon is having power wheeled to its facilities from a block of wind farms in Kenhardt in the Northern Cape.
ENERTRAG South Africa, in the course of its research into Mpumalanaga as a site for wind energy, has stated that the current environment is creating an active offtakers market among Energy Intensive Users (EIUs) and no place is better equipped to service that market and to facilitate wheeling than the Mpumalanga province, Emalahleni in particular.
The renewable energy subsidiary of coal-mining company Seriti Resources, Seriti Green, is to build a 150MW wind farm that will allow the company to receive 75% of the energy it needs to run its coal mines from renewable sources. This first phase of a larger project is expected to start producing power in 2025. The wind farm will cost R4-billion, with R1.5-billion allocated to new grid infrastructure. The grid infrastructure will be partly owned by Eskom. ■
INNOVATION - FORESIGHT - EXPERTISE
Turning renewable sources into energy and ideas into reality.
Transport and logistics
SANRAL is experimenting with new road technologies.
Several strategic roads within the province have been handed over to the South African National Roads Agency (SANRAL). Given the national importance of Mpumalanga’s highways in terms of transporting coal to power stations and the volumes of traffic between the province of Gauteng and Mozambique, the transfer makes sense.
Some of these roads will be the focus of pilot projects in which SANRAL will trial nano-technology and materials. In recent years, several interchanges have been constructed or upgraded by the agency. These include the interchanges at Machadodorp, Karino and Montrose.
Provincial government programmes in the term of office which finished with the elections of May 2024 saw 76 projects completed under the Integrated Rural Mobility and Access programme. These include 17 bus shelters, 10 footbridges, 29 culverts, 15 bridges, four walkways and one multi-modal facility. Approximately 75 000 children are transported to school daily through the province-wide scholar-transport programme.
The performance of the Maputo Corridor has enabled one of South Africa’s biggest logistical carriers to continue to post good financial results. With the N3 highway between Johannesburg and Durban often congested and delays at the ports of Richards Bay and Durban, Super Group, which operates in 21 countries, reports that the route through Mpumalanga to Mozambique is functioning well for its trucks.
Scholar transport assists
Trans Africa Concessions (TRAC), the toll road company, will spend R248-million on expanding capacity on the bridge over the Crocodile River and creating an upgraded roads junction at the Montrose interchange. Two new bridges will be built to provide access over the Elands Valley section of the road. The Motheo Group, in a joint venture with WBHO, has been working on the N4 for TRAC, which has also parcelled out some work to Raubex Construction.
The province’s roads carry heavy traffic that feeds coal mines and power stations. The Provincial Government of Mpumalanga has purchased mechanised pothole-patching vehicles in response. It is expected that many jobs will be created in this attempt to improve the strategic road infrastructure network, which includes tourism routes.
Kruger Mpumalanga International Airport: www.kmiairport.co.za
traffic in Mpumalanga than in any other province. This is principally because of the transport of coal, but there are also large volumes of chrome, ferrochrome, forestry products, chemicals, liquid fuels and general freight.
The Balfour North to Volksrust section of the Gauteng to Durban mainline carries the largest volumes, most of which is longhaul freight passing through the province. Despite these high rail volumes, a huge amount of mineral product is transported by truck around and out of the province. This puts immense pressure on Mpumalanga’s roads network, particularly in the Gert Sibande District and the Nkangala District. ■
SECTOR INSIGHT
PHOTO: Thuvack / Wikimedia Commons
Tourism
Radisson Hotels is opening hotels in Mpumalanga.
Radisson Hotels will open the group’s 14th South African hotel in 2024 when the Radisson Hotel Middelburg starts welcoming guests.
The R350-million luxury hotel and conference centre project in the Steve Tshwete Local Municipality is a publicprivate partnership. Akani Properties, a black-owned property development company, is working with the Radisson Hotel Group to deliver the 150-bed hotel and convention centre. The recently launched Radisson Safari Hotel Hoedspruit represents the group’s first safari hotel on the continent and illustrates the variety of types of accommodation options on offer by Radisson. Altogether the hospitality company offers 10 brands.
As of May 2022, Tsogo Sun Hotels again adopted the Southern Sun brand. With the acquisition of the Hazyview Sun, the group has a total of seven properties in the province, ranging from two StayEasys to Southern Sun Emnotweni in Nelspruit.
Tsogo Sun, as distinct from Tsogo Sun Hotels which is no more, has interests in casinos and gaming and runs two hotels in Witbank. Protea Hotels by Marriott has two properties in Mpumalanga. At White River, Premier Hotel The Winkler is 20 minutes’ drive from the Numbi Gate of the Kruger National Park.
Forever Resorts has a big presence in the province, including the four-star Forever Resorts Mount Sheba. The Graceland Hotel Casino and Country Club is a Peermont resort in Secunda.
Four nature reserves under the control of the Mpumalanga Tourism and Parks Agency (MTPA) now have accommodation facilities, after upgrades to Songimvelo-Kromdraai Camp, Andover, SS Skosana and Manyeleti.
In 2024 MTPA signed a strategic partnership with the Aspinall Foundation to elevate the Loskop Dam Nature Reserve to a Big Five game reserve. A collaboration with Greater Kruger Environmental Protection Foundation to fight poaching in Manyeleti has also been initiated. This collaboration includes establishing new pickets, the maintenance of fences and the training of field rangers. Tourism Safety Monitors have been introduced at key points around the province.
In 2024 FlySafair introduced new routes between Kruger Mpumalanga International Airport and Cape Town. Eurowings Discover, a division of Lufthansa, has been flying to Mbombela from
ONLINE RESOURCES
Mpumalanga Gambling Board: www.mgb.org.za
Mpumalanga Tourism and Parks Agency: www.mtpa.co.za
South African National Parks: www.sanparks.co.za
SECTOR INSIGHT
Four provincial nature reserves now offer accommodation.
Stats SA’s Tourism and Migration Report released in January 2024 placed Mpumalanga second in terms of international tourist arrivals.
The Provincial Government of Mpumalanga is looking for more private partners to invest in a sector that has several superb tourism assets, ranging from about 70 parks and reserves to bird-watching, music festivals, car rallies and casinos.
A total of R475-million in public and private investments has so far been raised for the Skywalk project at God’s Window in the Blyde River Canyon Nature Reserve. ■
Frankfurt via Windhoek since 2022.
Radisson Safari Hotel Hoedspruit
PHOTO: Radisson Hotels
TRILAND brand reactivation
A three-country tourism initiative has been reactivated, promising to inject new life into the sector.
TRILAND™ is an initiative entered into between the three tourism entities, Mpumalanga Tourism and Parks Agency (MTPA), Eswatini Tourism Authority (ETA) and the Mozambique National Institute of Tourism (INATUR), to promote the region as a tourist, trade and investment destination.
Background to the TRILAND initiative
The relations between these three countries has its historic origin from 1928 and relations were further strengthened with the advent of democracy in South Africa in 1994, especially in areas of economic cooperation and investment.
The cooperation resulted in the implementation of multi-billion-rand economic projects, inter alia, the Maputo Development Corridor and the Trilateral Spatial Development Initiative with Eswatini. It is against this backdrop, and many other technical cooperation agreements and international relations policy instruments that the tourism entities signed a Memorandum of Understanding to grow tourism in the region in 2009 and the TRILAND Regional Tourism Destination Brand Strategy was launched in 2011 in Mozambique.
The essential elements of the Brand and Regional Tourism Routes are packaged on three unique selling propositions (USPs): NATURE in Mpumalanga, ROYAL TRADITION in Eswatini and SEA and WHITE SANDY BEACH in Mozambique. Collectively, these key product offerings depict the regional destination presented as the TRILAND.
Key objectives of the TRILAND brand
To develop and position the region as a world-
class tourism, trade and investment destination; joint marketing; contribute to the integration of the region and their common economic development goals including employment creation and economic growth; to develop sustainable and responsible tourism; to enhance joint collaboration in the conservation and protection of biodiversity, and to preserve cultural values, heritage and national pride.
Trade promotion: establish a uni-visa; remove barriers to trade; lobby and advocate for the upgrading of major trade routes and road networks.
Investment promotion: create a single Investment Forum.
Tours for tour operators
As part of the promotion of the TRILAND initiative, the tourism agencies from the three countries have hosted tour operators and media with the aim of showcasing the different tourism offerings available in each country.
Six local tour operators and four media from Mpumalanga were afforded an opportunity to interact with other tour operators and promote tourism packages that seek to promote Mpumalanga. The tour started with a two-day visit to the Kingdom of Eswatini, which was hosted by the Eswatini Tourism Authority. Another two days followed in Mozambique, where the group was hosted by INATUR and the tour concluded with a final two days enjoying the highlights of Mpumalanga.
The familiarisation trip was an activation of one the elements within the Memorandum of Understanding
that was signed at the Africa’s Travel Indaba held in Durban in 2022. The TRILAND route is about enhancing regional tourism initiatives, collaborating and supporting exchange programmes with the aim of growing tourism.
This is an exciting period for all three tourism agencies. To be able to take part in the promotion of the TRILAND route and to expose local tour operators to the various features and experiences offered by the route also enhances the ability of all role-players to create effective packages. This collaboration presents an opportunity to promote regional tourism and showcase the variety of products available.
The TRILAND rollout plan
There are five major projects that underpin the rollout of the TRILAND strategy:
Tourism airlift
Investigate the business case for the establishment of a tourism airlift strategy between Mpumalanga, Eswatini and Mozambique.
Key points: Lobbying, feasibility study of routes, stakeholder engagement, including civil aviation authorities.
Joint regional marketing and promotion
Establish a programme for an integrated Regional Marketing and Promotion Programme to jointly promote the route.
Key points: Establish Tour Operator Exchange Programme, develop an integrated media plan, plan for TRILAND integration at trade shows and events, develop social media pages, develop a revolving marketing plan, identify markets.
Marketing collateral
Development of joint marketing collateral to promote the route.
Key points: Develop terms of reference for marketing collateral, appoint service provider, to include videos, film, website, images, digital brochures.
Collaboration in mega events
Collaboration in mega tourism events to promote the TRILAND brand.
Key points: Identify flagship events, agree on attendance (for example, Maputo Tourism Fair, King’s Cup in Eswatini and Innibos in Mpumalanga), partners to include these events in budgets.
Tourism route(s) development
Development of a tourist route connecting identified unique selling features and points of the region to create a sustainable demand for the regional and international market.
Key points: Establish terms of reference for service provider to map and develop the TRILAND Route, engage with stakeholders, develop brochures. ■
Majestic nature, royal tradition and white sandy beaches, the unique selling points of the TRILAND brand.
Manufacturing
The manufacturing potential of trees is under the spotlight.
The manufacturing industry is making more plastic than the environment can cope with. Many large operations in Mpumalanga make the kind of chemicals and compounds that go into plastic.
Forestry South Africa (FSA) believes that wood from responsibly managed plantations and forests could be part of the solution. With several companies operating in the forestry and paper sectors in Mpumalanga, the province could play an increasingly important role in mitigating excessive reliance on plastics in years to come.
In connection to Earth Day 2024, FSA released information about how the forestry sector is creating substitutes for energyheavy materials that are derived from fossil fuels.
The FSA further noted that paper packaging is making a comeback across the world as shoppers become increasingly more demanding of sustainability from brands.
From steel to chemicals, petroleum and stainless steel to paper and fruit juice, Mpumalanga makes a wide variety of products. Fuel, petroleum and chemical production occurs in the southern Highveld region clustered around Sasol’s plants.
The Sasol chemicals and liquid fluids complex at Secunda is a vital component of Mpumalanga’s manufacturing sector but concern about environmental factors that are increasingly coming into play around the world are causing the group to rethink many of its processes.
Also in the southern section is the town of Standerton which hosts several large manufacturing plants. Chief among these are a chicken-processing facility and two mills, one for textiles and the other for crushing soy.
The northern Highveld area, including Middelburg and eMalahleni (Witbank), is home to ferro-alloy, steel and stainlesssteel concerns.
In the Lowveld, agricultural and forestry products are processed while Sappi’s giant mill is close to the company’s forests south-west of the provincial capital, Mbombela. Timber firm and board manufacturer PG Bison is in the process of spending more than R2-billion on increasing capacity at its Mkhondo plant.
South African Furniture Initiative: www.furnituresa.org.za
South African Iron and Steel Institute: www.saisi.co.za
SECTOR INSIGHT
Food and forestry are the main employers in manufacturing.
Laboratory work on lignosulfonate.
TSB Sugar runs two large mills and produces fruit juices through a subsidiary company. Nelspruit is the centre of the province’s food-processing cluster. Approximately 70% of jobs in the manufacturing sector are in food and forestry.
Middelburg-based Columbus Stainless is South Africa’s only producer of stainless-steel products. ■
Sappi
ICT
School pupils are going online.
Esibusisweni Combined School in Iswepe in the Gert Sibande District Municipality is reaping the benefits of online technology for pupils studying mathematics and science. Located between the towns of Mkhondo and Ermelo, and consequently in the area where Mondi has forestry operations, the school is one of six across two provinces that is part of a distancelearning project run by Ligbron e-Learning System and supported by the paper and forestry company. The two subjects are required for careers in forestry and engineering, so Mondi also offers bursaries to aspiring academic performers from its operational footprint.
The Mpumalanga Provincial Government has since 2022 been providing Grade 12 pupils and teachers in Quantile 1 to 3 schools with tablets and laptops. These devices are loaded with e-content but in 2024 an offline application has been added so that learning can continue without data or connectivity. Eight schools are leading a smart-school pilot project in a drive to achieve a paperless school.
In May 2024, MTN announced that it intended rolling out 100 new 5G sites in its northern region, with 40 planned for Mpumalanga before year-end. In 2023, the company added 65 5G sites in the province.
The MTN SA Foundation supports several schools in Mpumalanga as part of MTN’s Back to School campaigns. Eleven schools have multi-media centres, each with 20 computer desks, chairs and teacher stations. The computer laboratories have one server, a multifunctional printer, an interactive whiteboard, a data projector, a router and data connectivity to MTN for 24 months. One of the province’s new boarding schools, Izimbali Combined MST, also has a 40-seater laboratory courtesy of the MTN SA Foundation.
ICT has been chosen as one of the University of Mpumalanga’s six critical research themes. Operating under the title of Information and Communication Technology for Development (ICT4D), it intends to present easy adoption and use of ICT resources for the betterment of people’s day-to-day activities. Sub-themes are ICT in education, cybersecurity, Internet of Things and data analytics. The university offers a Diploma in ICT in Applications Development, a three-year course carrying 360 credits and a level-six qualification.
Seda Technology Programme: www.seda.org.za
State Information Technology Agency: www.sita.co.za
Universal Service and Access Agency of South Africa: www.usaasa.org.za
SECTOR INSIGHT
5G sites are multiplying.
Glencore Coal and partner Project Isizwe are celebrating estimated savings in data costs of more than R100-million in the communities where a free WiFi project is in operation. Having started with 10 hotspots in Ogies and Phola in the eMalahleni Municipality, the initiative was expanded to the Steve Tshwete and Emakhazeni municipalities where 30 hotspots now function. Communities are consuming more than 28 000GB of data for free every month. Project Isizwe is a non-profit organisation that partners with Internet Service Providers to provide equitable Internet access. ■
Visit mtnbusiness.co.za
Email getconnected@mtn.com
Education and training
Boarding schools are changing lives.
One of the biggest changes to the educational landscape in Mpumalanga in the democratic era has been the establishment of rural boarding schools. Tiny farm schools were sometimes the only option available to the children of farm workers but since 1994, the following rural boarding schools have been built: Ezakheni and Izimbali in the town of Mkhondo in the Gert Sibande District Municipality; Emakhazeni and Steve Tshwete in the Nkangala District Municipality, Shongwe (in the town of Malelane) and Thaba Chweu in the Ehlanzeni District Municipality.
Overall, attendance figures at schools in the province have reached 98% of all seven to 17-year-olds, with a throughput rate in 2023 of 72%. Hot meals are served to one-million children at schools and about 75 000 pupils have access to scholar transport services.
To cater for greatly increased numbers, the Fundza Lushaka Bursary Scheme supports matriculants who want to start a career in teaching. From 2018 to 2024, 1 200 took up the offer to become educators.
Since 2022, all Grade 12 pupils and teachers in Quantile 1 to 3 schools are provided with tablets and laptops respectively. These devices are loaded with e-content and in 2024 an offline application was added to enable learning without data or connectivity. A pilot “smart schools” project has been introduced in eight schools. New public libraries have been built in Sakhile, Thubelihle, Thulamahashe and Matsamo.
Tertiary progress
On a hill north of the Crocodile River a complex of buildings has become the University of Mpumalanga. The official launch was in October 2013 and by 2020, the university was offering 26 qualifications to 4 200 students.
The university currently offers 48 programmes in three faculties: Education; Agriculture and Natural Sciences; and Economics and Business Sciences. There are plans to add new programmes at both undergraduate and post-graduate levels and to establish the faculty of Humanities and Social Sciences and the School of
The library at Imzimbali Combined Boarding School.
Law. By 2024, the plan is to offer approximately 70 qualifications to over 8 000 students. That is the year in which the university’s first doctoral graduates will be capped. Research relevant to the needs of the province can now be done at local level.
Mpumalanga has three Technical and Vocational Education and Training (TVET) colleges, with an enrolment of over 36 000. UNISA, the Tshwane University of Technology and the Vaal University of Technology also have satellite campuses in the province.
The TVET colleges are located in the province’s three District Municipalities: Gert Sibande (four campuses and a skills academy), Nkangala and Ehlanzeni, which has six campuses, a skills centre and a satellite campus. ■
Development finance and SMME support
Supplier development programmes promote small enterprises.
The Provincial Government of Mpumalanga has several programmes designed to support small business, with a particular focus on women and young people. For its part, the private sector uses supplier development programmes to encourage small businesses along its supply chain.
One example of the latter model is Mondi’s support for Philasiphile Contractors, pictured, which is based in Amsterdam. Philasiphile today manages multiple contracts, supplying silviculture services to Mondi, Sappi and Komatiland Forestry. From having one bakkie and a staff of 30, the company now employs more than 150 people to tend to 430ha for Mondi alone.
The Mondi Zimele Small Business Development Initiative is a joint venture with the Jobs Fund putting up matching funding with the forestry and paper company. The aim is to facilitate sustainable black economic empowerment by providing business support services and low-interest loans to emerging businesses. The Jobs Fund is run by National Treasury.
In the 2023 State of the Province Address, a provincial Job War Room was promised as a means of tackling the high unemployment rate. In the 2024 speech, Premier Refilwe Mtshweni-Tsipane said that by the end of January 2024, a total of 63 478 jobs had been created through the 21 identified programmes including the Siyatentela Road Maintenance Programme, Government Nutrition Programme, School Handymen and Tourism Safety Monitors. She further reported that, since its inception in 2019, the Premier’s Youth Development Fund had disbursed R258-million to fund 182 youth-owned enterprises. The funded beneficiaries created more than 630 jobs.
In partnership with the Presidential Climate Commission, the Climate Investment Fund and the World Bank, opportunities are being explored for SMMEs and co-operatives to participate in the green economy. The Premier’s Youth Development Fund allocated R92.3million to 36 companies in the financial year to February 2023 in sectors such as agriculture, manufacturing, mining and transport and logistics. The provincial government is committed to allocating 30% of the
Small Enterprise Development Agency: www.seda.org.za
provincial procurement budget to enterprises owned by women, youth and people with disabilities.
Research done by the Small Enterprise Development Agency (Seda) shows that a high percentage of SMMEs in Mpumalanga are in the trade and accommodation sector. Whereas the national figure is about 43%, in Mpumalanga it is closer to 50%.
Seda supports several incubators in the province: Furntech, furniture manufacturing, White River; Mobile Agro-Skills Development & Training (MASDT), agricultural training, Nelspruit; Mpumalanga Stainless Initiative (MSI), stainlesssteel processing, Middelburg (with Columbus Stainless); Timbali floriculture, Nelspruit; Ehlanzeni TVET College Rapid Incubator Renewable Technologies, Nelspruit. TVET stands for technical and vocational education training. The Gert Sibande Centre for Entrepreneurship in Evander hosts a Rapid Incubator in partnership with Seda. ■
The Premier’s Youth Development Fund has disbursed R258-million.
SECTOR INSIGHT
Middelburg Chamber of Commerce and Industry
Location, location, location is the secret advantage of Middelburg, writes MCCI CEO, Anna-Marth Ott.
The current investment landscape is dominated with buzzwords like energy security, green energy, carbon neutral, just transition and equitable opportunities. In this complex landscape investors end up asking how they can make lowrisk investments that offer lucrative returns. The answer lies in investment areas that offer access to inclusive environments in close proximity to customers and suppliers. Middelburg, located within the Steve Tshwete Local Municipality, is such a location.
The saying that “location is everything” applies to the Middelburg investment environment. The town offers businesses access to major national transport routes, industrial areas in Mpumalanga and Gauteng, neighbouring countries and ports. This is especially attractive for businesses that need to distribute their product reliably. Middelburg is situated at the intersection of the N4, N12, N11, R104 and R555 highways, thus avoiding any congestion of the N3. The harbours of Durban and Maputo are accessible from the region without using the infrastructure of Gauteng.
Access and competitive advantage
Middelburg also offers direct access for importing and exporting to neighbouring SADC countries. With an increasing need for imports, access to these markets is advantageous for any manufacturing, distribution or logistics company. The Middelburg Chamber of Commerce and Industry (MCCI) and the Steve Tshwete Local Municipality (STLM) have
Columbus Stainless, part of the Acerinox Group of companies, is the only stainless steel mill in Africa.
successfully attracted several such major investors to the region. Historically, investors could either build their projects on greenfield sites or move into existing facilities to trade as soon as possible.
A major competitive advantage is that the region is not reliant on one sector for its economic growth but has several prominent economic sectors. The mining sector boasts 150 coal mines in the region, the energy segment has seven power stations and the manufacturing sector holds the status of being the second-largest contributor to the Mpumalanga economy. The agricultural sector also ranks among the strongest in the region, with skilled artisans and engineers in abundance across all sectors.
MCCI invites all companies interested in investing to get in touch with us. With our business networks and relationships, we endeavour to make your investment work for you. ■
Address: 292 Walter Sisulu Street, Middelburg, Mpumalanga 1050
Tel: 013 243 2253
Email: info@middelburginfo.com
Website: www.middelburginfo.com CONTACT DEATILS
Kruger Lowveld Chamber of Business and Tourism
The voice of business in Ehlanzeni.
As the official representative body of business and tourism in the Kruger Lowveld (Ehlanzeni District), our main mandates are to promote the region as a tourism and investment destination, to provide a diverse suite of networking and marketing opportunities for our members, and to represent and speak on behalf of the business and tourism community of our area. We do this by building and maintaining meaningful relationships with all spheres of government as well as like-minded organisations, and by acting as liaison between these entities and the business community. KLCBT’s president is Professor David Mabunda (pictured).
Area of operation
The Kruger Lowveld covers the Ehlanzeni District of Mpumalanga, including the following local municipalities: City of Mbombela, Thaba Chweu, Nkomazi and Bushbuckridge, as well as the southern part of Kruger National Park and the surrounding private nature reserves.
Member benefits
Listing on website, Pay-to-Play participation in various marketing services and projects, weekly newsletter, invitations to all KLCBT events, advocacy and representations made by KLCBT on behalf of members, access to preferential arrangements negotiated by KLCBT with service providers, brochure display at Crossing Centre office, various sponsorship options, access to tender information. We are actively involved in the following advocacy campaigns:
Service delivery:
Public participation in various forums where government engages with stakeholders regarding budgets, planning and legislation. Promote home-grown businesses through education processes, research, maintaining a database, lobbying for stricter regulations
Contact details
Physical address: KLCBT House, Crossing Centre, Nelspruit
Postal address: Private Bag X 11326, Nelspruit 1200
Tel: +27 13 755 1988 Fax: +27 13 753 2986
Email: business@klcbt.co.za and tourism@klcbt.co.za
Website: www.klcbt.co.za
on large shopping chains, engaging large chains to buy local and to spend their CSI budgets locally.
Local Economic Development: We are assisting with incubation in seven main corridors, mainly adding additional tourism products.
Anti-corruption: Several successful initiatives reduced roadside corruption.
Water: Bulk-water supply faces a future crisis and lobbying for the increase of storage capacity is beginning to show success.
Roads and public attractions: Require upgrades and investment.
Safety and security: A concern for all regions in SA. ■
Professor David Mabunda
Banking and financial services
Public officials are receiving training.
Local government accounting controls are a source of great concern across South Africa. The Auditor-General’s annual report routinely notes irregularities or sloppy record-keeping.
Local and district municipalities such as the Gert Sibande District Municipality, which has its headquarters, pictured, in Ermelo, need to be ensuring that public money is well spent.
In that context, the work of the Chartered Institute of Government Finance, Audit and Risk Officers (CIGFARO) takes on added significance. In 2023, CIGFARO held a Young Professionals Conference, Mpumalanga, under the heading “Iron sharpens iron”. Topics included the role of 4IR in local government, looking for innovative solutions and how the transition from fossil fuels to green energy will affect the country and the region. Presenters included members of the South African Institute of Chartered Accountants (SAICA).
At national level, four new banks are in the pipeline and have received regulatory approval: Old Mutual, the Young Women in Business Network (YWBN) Mutual Bank, Postbank (a state entity) and the SA Innovative Financial Services Cooperative (SAIFSC), which will be run by the Department of Women, Youth and People with Disabilities.
With more than 30 000 employees in 14 countries, Old Mutual is best known for insurance, but it is now on the path to establishing a fully fledged bank. For some time, the group has offered the Money Account, a low-cost transactional account which doubles as a unit trust savings account. This product was offered by Old Mutual Transaction Services
SECTOR INSIGHT
Four new banks will soon open their doors.
in association with Bidvest Bank Ltd and Old Mutual Investment Administrators.
While South Africa’s Big Four – Absa, FirstRand, Nedbank and Standard Bank – continue to play a big role in the banking sector, a feature of the 21st century has been the opening up of the financial services sector, in large measure driven by digital offerings from smaller banks. Capitec was one of the first, followed by Discovery Bank and Zero Bank.
TymeBank, one of the newer entrants onto the South African banking scene, is taking the concept of “retail banking” to another level. TymeBank has signed a deal with TFG, a group that has a big presence in the Mpumalanga. There are no fewer than 24 Exact stores in Mpumalanga, from Acorn Plaza to Witbank. In the short term, TymeBank will have access to 600 TFG kiosks, taking the bank’s total in South Africa to 1 450.
Agriculture is an important focus area for banks, and most have specialised divisions. Piet Retief-based TWK Agri offers financing and insurance together with the usual suite of agricultural services. Afgri, one of the country’s biggest agricultural companies, offers financial services (financing and insurance) under the brand Unigro. ■
