Mpumalanga Business 2017 edition

christoffscholtz

Mpumalanga Business 2017 is the seventh edition of this highly successful publication that has since its launch in 2008 established itself as the premier business and investment guide to Mpumalanga Province. Supported and utilised by the Mpumalanga Economic Growth Agency (MEGA), Mpumalanga Business is unique as a business journal that focuses exclusively on Mpumalanga.

MPUMALANGA

BUSINESS

2017 EDITION

THE GUIDE TO BUSINESS AND INVESTMENT

IN MPUMALANGA PROVINCE

JOIN US JOIN ONLINE US ONLINE

WWW.MPUMALANGABUSINESS.CO.ZA

MPUMALANGA


SASOL SECUNDA OPERATIONS

The core of Sasols Southern African operations

Sasol is an international integrated chemicals and energy company that leverages

the expertise of its 30 100 people working in 33 countries. Sasol develops and

commercialises technologies, and builds and operates world-scale facilities to

produce a range of high-value product streams, including liquid fuels, chemicals and

low-carbon electricity.

The company's Secunda Operations are the core of Sasol's Southern African

Operations, producing a wide range of petroleum products including diesel, petrol

and jet fuel, as well as chemical products which include ethylene, propylene and

ammonia value chains.

The operations contribute to job creation, sustainable development and security of

supply in chemicals and energy. The site is host to the following businesses and

operating hubs: Sasol Mining, Secunda Synfuels Operations, Secunda Chemicals

Operations and Sasol Energy.

Sasol Mining operates ve coal mines in Mpumalanga that supply feedstock for the

Secunda Synfuels Operations complex. The coal is mainly used as gasication

feedstock and to generate electricity. As some of these mines are approaching the

end of their useful lives, new developments are underway to ensure continued

supply through the company's Mine replacement programme.

Secunda Synfuels Operations is a large-scale coal-and-gas-based synthetic fuels

manufacturing facility, applying the unique Fischer-Tropsch technology. This

operating hub also produces utilities, such as oxygen and steam for the Secunda

site, required in the production process and generates about half of its own

electricity.

Secunda Chemicals Operations is a large-scale integrated chemical product

manufacturing facility that produces and adds further value to the Sasol chemicals

value chains. Secunda Chemicals Operations also provides Sites Services,

Infrastructure Maintenance and Product Logistics Services for the Secunda site.

The Energy Business, that is key to Sasol's growth aspirations inside and outside

South Africa, manages the marketing and sales of all oil, gas and electricity products

in Southern Africa.

As an active corporate citizen, Sasol meaningfully invests in communities close to

its operations with the main objective of sustainably contributing to the broader

socio-economic development of the Mpumalanga province as well as South Africa.


For more information on the company's products, growth projects, nancial

results or social investment initiatives visit www.sasol.com.


CONTENTS

CONTENTS

Mpumalanga Business 2017 Edition.

Introduction

Foreword 6

Mpumalanga Business is a unique guide to business, investment

and tourism in the province.

Special features

Regional overview of Mpumalanga 8

New and improved infrastructure and the awarding of Special Economic

Zone status to specific areas within the province aim to attract new

investment into Mpumalanga.

Investment opportunities packaged for success 20

Mpumalanga has put together a range of priority projects to attract

investors across a range of sectors from agri-processing to hydro-electric,

solar and wind power.

SA investment incentives 24

The South African government, particularly the Department of Trade

and Industry, has a range of incentives available to investors, existing

companies, entrepreneurs and co-operatives across many sectors.

Establishing a business in SA 26

South Africa has eased the barriers to doing business in South Africa

for locals as well as international companies and individuals.

Economic sectors

Agriculture and agri-processing 32

Mpumalanga’s macadamia nut sector is cracking on.

Sugar 37

Irrigation schemes have helped sugar cane producers avoid the worst

of the drought.

Forestry and paper 38

Mpumalanga accounts for 40% of South Africa’s forestry hectares

Mining 40

The latest technology is improving platinum yields in Mpumalanga.

Oil and gas 46

Mpumalanga is well-placed for a new national focus on gas.

MPUMALANGA BUSINESS 2017 4


It is estimated that about 80% of all new small businesses fail in the first year. Notably, when small

businesses It is estimated close that down, about not 80% only of are all jobs new lost, small the businesses potential for fail creating in the new first jobs year. is Notably, eroded. when For small

estimated more close that than down, about ten not 80% years only of we all are at new jobs the small Small lost, businesses Enterprise the potential Development fail for in creating the first Agency new year. jobs Notably, (Seda) is eroded. have when been small For supporting, more businesses than ten year

e down, not only are jobs lost, the potential for creating new jobs is eroded. For more than ten years we at the

developing Small Enterprise and promoting Development small Agency and medium (Seda) enterprise; have been helping supporting, them to developing create jobs. and If promoting you are a small a

all Enterprise It Development estimated that Agency about 80% (Seda) of have all new been small supporting, businesses developing fail the and first promoting year. Notably, small when and medium small busines

enterprise; helping them to create jobs. If you are a small enterprise owner in need of added-value no

rprise; helping small close enterprise down, them not to create owner only are jobs. in jobs need If lost, of you added-value the are potential a small non-financial enterprise for creating owner support new jobs in need contact is eroded. of Seda added-value For on more (012) than non-financial

441 ten 1000 years we at

support contact Seda on (012) 441 1000 or visit www.seda.co.za

port contact Small

or visit Seda Enterprise

www.seda.co.za

on (012) 441 Development 1000 or visit Agency www.seda.co.za

(Seda) have been supporting, developing and promoting small and med

enterprise; helping them to create jobs. If you are a small enterprise owner in need of added-value non-finan

support contact Seda on (012) 441 1000 or visit www.seda.co.za

ETHER ADVANCING TOGETHER SMALL ADVANCING ENTERPRISE SMALL DEVELOPMENT

ENTERPRISE DEVELOPMENT

TOGETHER ADVANCING SMALL ENTERPRISE DEVELOPMENT


Dipaleseng

Dr JS Moroka

Delmas

Thembisile

eMalahleni

Govan Mbeki

Lekwa

Nkangala

Steve Tshwete

Msukaligwa

Gert Sibande

Pixley Ka Seme

Emakhazeni

Thaba Chweu

Albert Luthuli

Mkhondo

Mbombela

Umjindi

Bushbuckridge

Ehlanzeni

Nkomazi

Metropolitan/District Municipality Boundary

Local Municipality Boundary

District Municipality

Amajuba

Local Municipality

uMlalazi

CONTENTS

Energy 48

Biomass puts Mpumalanga on the renewable energy map.

Engineering 50

Bursaries are available for aspirant engineers in Mpumalanga.

Water 51

De Hoop Dam is delivering water for bulk distribution in Mpumalanga.

Manufacturing 58

A Special Economic Zone is to be established in the Nkomazi area.

Transport 62

A new railway line between Lothair and western Swaziland

will promote trade.

Construction and property 64

Infrastructure spending is a big sector driver in Mpumalanga.

Tourism 68

Mpumalanga regularly attracts more than a million tourists.

Banking and financial services 74

All of South Africa’s major banks are well represented in the province.

Development finance and SMME support 84

Public-private partnerships are supporting

entrepreneurship in Mpumalanga.

Education and training 86

Teaching is under way at the new university in Mpumalanga.

Government

South African government 88

An overview of South Africa’s national government departments.

Mpumalanga provincial government 92

A guide to the provincial government departments.

Mpumalanga local government 94

A guide to district and local municipalities.

Reference

Sector contents 30

Maps

Regional map 13

MUNICIPALITIES IN MPUMALANGA

Locator map 16

Municipal map 95

Index 96

North West

Gauteng

Limpopo

Swaziland

N

Mozambique

Free State

MPUMALANGA BUSINESS 2017 6


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FOREWORD

Mpumalanga Business

A unique guide to business, investment and tourism

in Mpumalanga.

Mpumalanga Business 2017 is the seventh edition of this

highly successful publication that has since its launch

in 2008 established itself as the premier business and

investment guide to Mpumalanga Province. Supported

and utilised by the Mpumalanga Economic Growth Agency (MEGA),

Mpumalanga Business is unique as a business journal that focuses

exclusively on Mpumalanga. It has an independently audited and

verified print run of 10 000 copies, an e-book edition hosted at

www.mpumalangabusiness.co.za, and a monthly e-newsletter for

up-to-date news and announcements.

Global Africa Network Media (www.gan.co.za), the publisher of

Mpumalanga Business, specialises in business-to-business print and

electronic publications, producing a series of region-specific annual

print journals. Every province in South Africa is covered by this

unique range of journals and websites, complemented by a national

title, South African Business, and the business matchmaking online

platform Matchdeck.com.

Chris Whales

Publisher, Global Africa Network Media

Email: chris@gan.co.za

CREDITS

Publisher: Chris Whales

Publishing director:

Robert Arendse

Editor: Simon Lewis

Writing: John Young, Karen

Kühlcke, Simon Lewis

Online editor: Christoff Scholtz

Art director: Brent Meder

Design: Colin Carter

Production: Lizel Olivier

Ad sales: Sam Oliver, Gabriel

Venter, Jeremy Petersen, Nigel

Williams and Sydwell Adonis

Managing director: Clive During

Administration & accounts:

Charlene Steynberg and

Natalie Koopman

Distribution and circulation

manager: Edward MacDonald

Printing: FA Print

DISTRIBUTION

Mpumalanga Business is distributed internationally on outgoing

and incoming trade missions. Through the Mpumalanga

Economic Growth Agency (MEGA); 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, trade and investment agencies, airport

lounges, provincial government departments, municipalities and

companies.

PUBLISHED BY

Global Africa Network Media (Pty) Ltd

Company Registration No: 2004/004982/07

Directors: Clive During, Chris Whales

Physical address: 28 Main Road, Rondebosch 7700

Postal address: PO Box 292, Newlands 7701

Tel: +27 21 657 6200 | Fax: +27 21 674 6943

Email: info@gan.co.za | Website: www.gan.co.za

ISSN 2222-3274

COPYRIGHT | Mpumalanga Business is an independent publication published

by Global Africa Network Media (Pty) Ltd. Full copyright to the publication

vests with Global Africa Network Media (Pty) Ltd. No part of the publication

may be reproduced in any form without the written permission of Global

Africa Network Media (Pty) Ltd.

CREDITS | COVER IMAGE: Isibonelo Mine in Secunda, Anglo American.

Pictures supplied by flickr.com, Anglo American Brand Toolkit, Wikimedia

Commons, SA Tourism, Buhle Farmers’ Academy, Ferrochrome Furnaces, TC

Designs, Eugene Armer and Pixabay.

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-todate,

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.

MPUMALANGA BUSINESS 2017

8


Global Africa Network

Promoting business, trade and investment in SA’s nine provinces

www.gan.co.za

www.southafricanbusiness.co.za

www.easterncapebusiness.co.za

www.freestatebusiness.co.za

www.gautengbusinessguide.co.za

www.kwazulunatalbusiness.co.za

www.limpopobusiness.co.za

www.mpumalangabusiness.co.za

www.northerncapebusiness.co.za

www.northwestbusiness.co.za

www.westerncapebusiness.co.za

NETWORK MEDIA

Tel 021 657 6200

Email sales@gan.co.za

Web www.gan.co.za


A REGIONAL OVERVIEW OF

MPUMALANGA

New and improved infrastructure and the awarding of Special Economic Zone status

to specific areas within the province aim to attract new investment into Mpumalanga,

the “Place of the Rising Sun”.

The Province of Mpumalanga is blessed with superb natural resources. The mineral wealth of

the province – in the form of coal – drives most of South Africa’s power stations, while the

natural beauty of the Blyde River Canyon and the Kruger National Park (and a host of private

and exclusive game lodges) ensure that more than a million tourists visit every year. The Sasol

petrochemical complex at Secunda is the foundation of South Africa’s fuels sector, there are large

MPUMALANGA BUSINESS 2017

10


SPECIAL FEATURE

11 MPUMALANGA BUSINESS 2017


SPECIAL FEATURE

smelters in the province, and a thriving forestry sector

dominates the economy of the eastern parts

of Mpumalanga.

A downturn in the commodities cycle has reminded

all economic planners that relying too heavily

on one or two resources is not a wise strategy.

Mpumalanga has been investing heavily in infrastructure

in order to attract investors. The type of

investment that is being targeted is beneficiation

or manufacturing.

The raw materials that leave the province earn

good money for farmers and miners, and the dollars

earned from exports help the nation balance

its books. But if the minerals or fruits were to have

value added to them before they leave South Africa’s

shores, then they would earn a great deal more. Also,

more jobs would be created.

This is one of the reasons for Special Economic

Zones (SEZs). One of them is strategically located

along the Maputo Corridor at Nkomazi. Infrastructure

to support investment will be built at the SEZ, and

different rules will apply in the zone, encouraging

investors with less red tape and a focus on a particular

economic activity. Tax advantages and proximity

to the Port of Matola (Mozambique) should attract

investors in the logistics or dry port sectors.

The road infrastructure of Mpumalanga is good

but it takes a hammering from coal haulage trucks.

In successive years, the Provincial Government of

Mpumalanga has spent R2.3-billion (2015/16) and

R2.4-billion on road maintenance and construction.

A huge investment is being made on the railways

that run to and through Mpumalanga. This

includes upgrading the commuter railway linkages

to the province from the province of neighbouring

Gauteng and building new railway lines to transport

coal through Swaziland and on to either Richards

Bay or Maputo.

Information and Communications Technology

(ICT) is another form of infrastructure that has been

receiving investment in recent times. A provincial

ICT Strategy has been developed to coordinate and

implement steps to improve ICT performance in

the province.

In addition to provincial and national government

spending on infrastructure, MEGA (the provincial

government’s economic growth agency) is

establishing a Provincial Infrastructure Fund to

pool private funds in order to tackle various publicprivate

projects.

Provincial Premier David Mabuza reported in his

State of the Province address in February 2016 that

there has been interest in this type of infrastructural

investment from China, Italy and Russia.

Economy

Mpumalanga has rich and varied mineral resources

and fertile soil that supports diverse farming. The

province is also host to a number of important companies

in the manufacturing sector, with internationally

renowned firms such as Sasol (synthetic fuels and

chemicals) and Xstrata (ferrochrome) having large

operations in the province. The steel industry took a

knock when Ervaz went into business rescue in 2015.

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), fertiliser facilities and textile manufacturing

concerns. The decision by Sappi to start producing

chemical cellulose at its Ngodwana Mill has significantly

increased the manufacturing capacity of

the province.

The country’s major power stations, three of

which are the biggest in the southern hemisphere,

are located in Mpumalanga. The building of the new

Kusile Power Station is one of the biggest current

infrastructure projects in the country.

New coal mines are under construction and

several existing mines are receiving expensive

upgrades to enhance productivity and extend

their lives. Eskom owns several mines that other

MPUMALANGA BUSINESS 2017

12


SPECIAL FEATURE

companies run for them, but it wants to change

some of its contracts.

Sasol, the integrated oil, gas and chemicals

company, runs several plants at Secunda. Products

manufactured at the complex include synthetic

fuel, petroleum, paraffin, jet fuel, creosote, bitumen,

diesel and lubricants. The primary feedstock

for synthetic-fuel production is coal, and the plant

is located in the heart of Mpumalanga’s coalfields.

More than 80% of South Africa’s coal is sourced

in Mpumalanga, with the town of eMalahleni

(Witbank) being the centre of the industry. Other

minerals found in the province include gold, platinum-group

minerals, chromite, zinc, cobalt, copper,

iron and manganese. These minerals support

a strong manufacturing sector.

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. Nkomati Mine

is South Africa’s only pure nickel operation.

Columbus Stainless in Middelburg is a major

producer of stainless steel, while Middelburg

Ferrochrome and the Nelspruit-based Manganese

Metal Company are among other important, heavy

industrial companies.

Mining is responsible for 21.8% of provincial GRP,

wholesale, retail, catering and accommodation is

13%, manufacturing (12%) and general government

services (10.8%) are other major contributors.

Finance, real estate and business is 9.4%.

Further east and south, sugar is the major crop.

The Mpumalanga forestry sector is one of the most

important in the country: 11% of the total land area

of Mpumalanga is covered either by plantations or

natural forests.

Geography

The geography of the province is sharply delineated

by the Drakensberg escarpment, which forms the

dividing line between the western grasslands at high

altitude (Highveld) and the subtropical component to

the east, the Lowveld. The central region of the province

is mountainous, with some dramatic landscapes

presenting exciting vistas for visitors. The Lebombo

Mountains rise in the east. The area south of the

capital city of Mbombela (Nelspruit), near Barberton,

has some of the world’s oldest rocks forming the

Crocodile River Mountains.

Most of the province receives summer rainfall,

often via thunderstorms. Frost is common on the

Highveld, but is almost absent in the subtropical regions

where fruit, nuts and citrus thrive. Differences

in temperature and rainfall between the Highveld

and Lowveld can be considerable.

Large parts of the province are located in the

so-called Middleveld comprising high-plateau grasslands.

Forestry operations are found in central and

south-eastern Mpumalanga, but the heart of this

important industry is around Sabie in the north-east.

Agriculture

The southern and northern Highveld regions produce

large quantities of field crops such as barley,

soya beans, maize, grain and sorghum. Potatoes also

flourish in this area.

The Nelspruit district in the Lowveld is South

Africa’s second-biggest producer of citrus fruit, while

vegetables of all sorts do well in this area too.

One of the fastest-growing agricultural sectors

is macadamia nuts. These are cultivated in the

Lowveld and are exported in ever-growing volumes.

13 MPUMALANGA BUSINESS 2017


SPECIAL FEATURE

The province has excellent roads and railway

connections and is well served by airports, airstrips

and heliports. The Kruger Mpumalanga

International Airport opened in 2002, but the old

Nelspruit airport is still operational. Comair has regular

flights into the province from Johannesburg.

The Maputo Development Corridor is a transportation

corridor comprising road, rail, border posts,

port and terminal facilities, running from Pretoria

in Gauteng through Mpumalanga to the Port of

Maputo in Mozambique. The corridor supports

high volumes of cross-border freight services and

aims to boost trade within and beyond the region.

Industry and tourism benefit from the concentration

of resources and ease of transportation. This

international initiative emphasises Mpumalanga’s

excellent location as a logistics and transport hub.

Water and its management will always be an

important task in a region where industries like

mining and heavy manufacturing coexist with

agriculture and urban settlements. National government

has convened a water summit and the

provincial government has committed itself to

providing support to municipalities through the

Heritage, Greening Mpumalanga and Tourism

Flagship Project.

The major new dam at De Hoop (in the neighbouring

Limpopo Province) is having a positive

effect on water management in Mpumalanga.

The capital city

Mbombela (formerly Nelspruit) is the capital city of

Mpumalanga province and the main town of the

Mbombela Local Municipality within the Ehlanzeni

District Municipality.

With a diverse manufacturing sector and as the

headquarters for most financial institutions in the

province, Nelspruit also lies in a strategic position

along the Maputo Development Corridor (MDC).

The MDC, along the national N4 highway, forms

the link between the central Gauteng region and

the Mozambican port of Maputo.

There are two airports. The older aerodrome,

south of the city, is used by small planes, while the

more modern Kruger Mpumalanga International

Airport is the gateway to many of the tourist highlights

in the province. The city is also well-served by

rail links, which connect to Swaziland, Mozambique

and other South African provinces.

Manganese Metal Company is the largest producer

of pure electrolytic manganese metal in the

world. The products are created from high-grade

manganese ore extracted by means of a hydrometallurgical

process. The plant has an annual capacity

of 27 000 metric tons.

Other manufacturing enterprises in Mbombela

include paper and pulp producers and furniture

factories.

The new University of Mpumalanga has its headquarters

in Mbombela.

The Lowveld Show and the InniBos Arts Festival

are major events that showcase Mbombela’s

diversity and importance as a regional hub.

The fertile Crocodile River Valley ensures

good fruit crops in a typically subtropical climate.

Mangoes, litchis and avocados are among the crops

grown most profitably and the town is at the centre

of the regional citrus sector. The Lowveld Botanical

Gardens contain many rare species.

Ehlanzeni District Municipality

Towns: Mbombela, Malelane, Hazyview, White

River, Sabie, Lydenburg, Barberton.

The urban centres are nodes of manufacturing in this

region, which is also at the heart of Mpumalanga’s

tourism offering. The Kruger National Park, the Blyde

MPUMALANGA BUSINESS 2017

14


SPECIAL FEATURE

River Canyon, Bourke’s Luck Potholes, God’s Window

and other attractions make this a highly desirable

place to visit. Citrus, sugar and forestry are the major

agricultural products, all being major contributors to

export earnings. The Sappi paper mill at Ngodwana

is one of the biggest of its kind, while RCL Foods

operates two large mills in the east. The population

is about 1.5-million.

Nkangala District Municipality

Towns: Middelburg, Delmas, Kriel, Emalahleni

(Witbank), Emakhazeni (Belfast), Dullstroom,

Emgwenya (Waterval Boven).

This area straddles the north-west. The district is rural

and traditional in the north-west where the King of

the Ndebele is still revered, a coal mining and steel

producing area in the industrial centre and has a trout -

fishing triangle in the north-east. The district is at the

centre of the fly-fishing sector that includes hatcheries

and accommodation for tourists. Just over a million

people live in the district.

Gert Sibande District Municipality

Towns: Bethal, Secunda, Standerton, Ermelo,

Volksrust, Mkhondo (Piet Retief), Carolina.

Power stations abound in this region, which stretches

across the southern half of the province, and it is the

home of the giant Sasol facilities at Secunda. The area

is also on the top of South Africa’s maize triangle and

agriculture and food processing are well developed

sectors. Sheep, chicken, sunflower and sorghum are

just some of the areas’s many agricultural products.

Nestlé has a processing plant at Standerton and

Mondi has a pulp and paper facility in the southeast.

About 900 000 people live in the Gert Sibande

district.

MPUMALANGA PROVINCE

N1

Mookgophong

Thabazimbi

Modimolle

POLOKWANE

Mokopane

Lebowa Kgomo

Roedtan

Tzaneen

Limpopo

R37

Hoedspruit

Phalaborwa

H7

North West

N4

Bela-Bela

Temba

Brits

Cullinan

PRETORIA

Centurion N4

R25

N11

Middelburg

eMalahleni

Groblersdal

Stoffberg

R33

eMakhazeni

Lydenburg

R36

Dullstroom

Machadodorp

Emgwenya

Pilgrim’s Rest

R37

Sabie

Graskop

R40

R40

MBOMBELA

Hazyview

White River

N4

H10

Komatipoort

MOZAMBIQUE

N14

JOHANNESBURG

N12

N1

Meyerton

Sasolburg

Gauteng

R35

N12

Ogies

Carolina

Delmas Vandyksdrif

N17

Leandra

Breyten

R38

Bethal

N17

Balfour

Evander

Ermelo

R33

R65

R50

N2

Morgenzon Amsterdam

R23

Barberton

SWAZILAND

N

Standerton

R35

N11

Heilbron

N3

Mkhondo

Free State

Frankfort

Vrede

R34

Volksrust

Wakkerstroom

KwaZulu-Natal

N2

Motorway

Main Road

Railway

15 MPUMALANGA BUSINESS 2017


PROFILE

Mpumalanga Economic

Growth Agency

The Mpumalanga Economic Growth Agency (MEGA) is the official

Economic Development Agency of the Provincial Government of Mpumalanga.

The agency aims to foster the sustainable growth

and development of the Mpumalanga economy

by attracting investment to the province, facilitating

investment in the province and maximising

the development impact of investment in

the province.

MEGA is an expert on the economy of Mpumalanga

and the investment opportunities it offers. It uses

its knowledge of the province and alliances with

strategic partners to package investment opportunities

that have the highest probability of success

and is able to provide support to both local and

international investors.

MEGA offers a range of services relating to

trade promotion, investment, funding and

property management.

Trade promotion

• Export and import enquiries

• Market information and contacts

• Advice on customs duties and foreign trade

documentary requirements

• Market research

• Information on regional trade issues and preferential

trade agreements

• Organising foreign trade and investment missions

and exhibitions

• Providing counselling and training to SMMEs

regarding export issues

• Advising local business on technical trade issues

• Promoting and facilitating provincial access to

the Export Marketing and Investment Assistance

Scheme (EMIA)

• Promoting and facilitating provincial access to

the Sector Specific Assistance Scheme (SSAS)

Investment promotion

• Targeting investors via the media, the MEGA website,

incoming and outgoing delegations, foreign

embassies, exhibitions, chambers of commerce

and municipalities

• Facilitating feasibility studies

MPUMALANGA BUSINESS 2017

16


PROFILE

• Providing investment information, intelligence

and research

• Assisting with obtaining factory space and/

or land

• Advising on commercial statutory requirements

• Facilitating joint ventures via the identification

of local partners

• Providing opportunities for emerging B-BBEE

businesses

• Assisting in identifying potential suppliers of raw

materials and feedstock

• Assisting with the lodging of investment

incentive claims with the dti

Funding

MEGA funds SMMEs and businesses that specialise

in agro-processing, mining, energy, manufacturing,

construction, trade, transport, forestry, services,

government and community. Preference is given

to businesses owned by historically disadvantaged

individuals.

Property management

MEGA owns and manages a number of industrial

and commercial properties around the province.

The Property Development and Management

Programme is geared to build and maintain a

property portfolio that can:

• Generate income

• Help to achieve organisational sustainability

• Facilitate employment creation

Our commitment

MEGA is focused on customer needs and provides

innovative solutions with a high level of service.

Don’t hesitate to make contact if you are interested

in exploring some of the opportunities that

Mpumalanga offers.

CONTACT INFO

Mega Head Office

ABSA Square Building,

20 Paul Kruger Street, Mbombela, 1200,

Mpumalanga, South Africa

Postal Address: PO Box 5838,

Mbombela, 1200

Tel: +27 13 752 2440 | Fax: +27 13 755 1756

eMail: trade-invest@mega.gov.za

Ekandustria Office (Bronkhorstspruit)

215 Iridium St, Ekandustria,

Bronkhorstspruit, 1028

Tel: + 27 13 933 3421

eMail: phineas.makgopela@mega.gov.za

Secunda Office

Office A, Secunda Town Centre,

Rautenbach Street, Secunda, 2302

Tel: +27 (0) 17 634 8458

eMail: nimrode.dlamini@mega.gov.za

Siyabuswa Office

Siyabuswa Shopping Centre, Main Road,

Siyabuswa, Dr JS Moroka Rural, 0472

Tel: +27 13 973 1049

eMail: lazarus.mahlangu@mega.gov.za

Johannesburg Office

33 Scott Street,Waverley, Johannesburg,

South Africa

Tel: +27 82 905 4938

eMail: paresh.pandya@mega.gov.za

17 MPUMALANGA BUSINESS 2017


PROFILE

Mpumalanga

Place of the Rising Sun

Mpumalanga, which is in the north-east of South Africa and borders Mozambique and

Swaziland, offers a strategic location to investors and export-oriented businesses.

The Mpumalanga Economic Growy Agency can help you take advantage of this.

The provincial economy is highly

diverse with significant activity

in mining, agriculture, stainlesssteel

production, petrochemicals,

pulp and paper, manufacturing

and tourism. Mpumalanga’s position

and resources make it a valuable

transport and logistics hub.

In addition to good infrastructure,

abundant natural resources

and fertile soils, the province also

boasts great scenic beauty, making

it a desirable place in which to live

and work.

The Mpumalanga Economic

Growth Agency (MEGA) facilitates

investment in the province and

is always keen to talk to potential

investors.

NAMIBIA

GAUTENG

Pretoria

Joburg

Northern Cape

MPUMALANGA

BOTSWANA

North West

eMalahleni Western Mbombela Cape Nkomazi SEZ

Middleburg Komatipoort Lebombo

Gauteng

Free State

LESOTHO

Eastern Cape

MOZAMBIQUE

Maputo

Limpopo

ZIMBABWE

MPUMALANGA

KwaZulu-

Natal

SWAZI-

LAND

FOREIGN MARKETS

MOZAMBIQUE

Africa & Middle East

Asia & Australasia

Europe & the Americas

MPUMALANGA BUSINESS 2017

18


PROFILE

Maputo Development Corridor

The Maputo Development Corridor (MDC) is a Spatial

Development Initiative linking Gauteng, Mpumalanga,

the Nkomazi SEZ and the Port of Maputo in Mozambique.

The MDC incorporates road, rail, the SEZ, border

posts, port and terminal facilities along one of

the most industrialised strips in Southern Africa.

The longest part of the corridor runs through

Mpumalanga Province.

Infrastructure along the corridor has been upgraded

and it provides investors and exporters with

good access to the markets of East Africa, the Indian

Ocean rim and East Asia.

The MDC forms part of a greater transport axis

that seeks to link the Atlantic and Indian oceans via

Southern Africa and a network of corridors exists in

the region.

Special Economic Zone

The Nkomazi Special Economic Zone (SEZ) is positioned

on the Maputo Development Corridor in the border town

of Komatipoort (which straddles Mpumalanga Province

and Mozambique).

The SEZ offers numerous opportunities for those with

export-oriented businesses – bonded warehouse, distribution

centre, container yard, truck stop and petrol depot.

Other identified opportunities in the SEZ include

mining services, mineral beneficiation, agro-processing

(which could leverage the provincial citrus and sugar

industries) and activities relating to import, distribution

and local manufacture of automobiles.

SEZs are a key initiative of the South African government

and the Department of Trade and Industry (the

dti) is making a package of tax incentives available to

qualifying companies located in approved SEZs.

For advice on investing in or trading with Mpumalanga

email the Mpumalanga Economic Growth Agency (MEGA)

on trade-invest@mega.gov.za call them on Tel: +27 13 752 2440

or visit www.mega.gov.za.


PROFILE

Standard Bank Mpumalanga

Management Team

TIMOTHY WHATI

PROVINCIAL HEAD

CHARMAINE HALFPENNY

PA - PROVINCIAL HEAD

JULIAN FELIX

BUSINESS BANKING

BONGANI THABETHE

RM: LOWVELD

SUHAIL ROW

RM: HIGHVELD

IAN NUNES

PSSM

MORGAN MBHELE

FINANCE

LAWRENCE NTIMANE

PUBLIC SECTOR

ZANARIA KHAN

PRIVATE BANKING

MPUMALANGA BUSINESS 2017

20


Prioritising customer-centric

banking

PROFILE

FRANS STAPELBERG

SBFC

THABANG TAU, VEHICLE

AND ASSET FINANCE

STEVEN DICKINSON

HUMAN CAPITAL

AAIESHAH BADAT

OPERATIONAL RISK

TEMPLETON ROBIYANA

SECURITY MANAGER

DEIRDRE BARTON

CHANGE & ADOPTION

DERICK MTHABINE

MARKETING

FARHAAD CHOONARA

WORKPLACE

DENVER RANGARU

WORKFORCE

21 MPUMALANGA BUSINESS 2017


SPECIAL FEATURE

Investment opportunities

packaged for success

Mpumalanga has put together a number of priority projects to attract investors across a

range of sectors from agri-processing to hydro-electric, solar and wind power.

The provincial government of Mpumalanga,

through its economic development agency

MEGA, has developed a set of investment opportunities

that will expand the scope of existing

public-private partnerships and drive economic

growth in the province.

Projects range from a fresh produce market to

take advantage of Mpumalanga’s superb fruits,

nuts and vegetables, and road and rail projects, to

the rolling out of information and communications

technology (ICT) to schools, and the building of a

new dam and a hydro-electric plant. The provincial

government (which owns several mines) and private

citizens who have mining licences are looking for

partners to help them develop their coal or gold

mining assets. The mining industry in Mpumalanga

is well developed and good infrastructure exists

to support the mining industry (engineers,

transport, etc).

The ICT project aims to extend connectivity

across the province, much of which is very rural. The

School-Online programme will roll out computers

and iPads to schools and teachers within the province

and the investor would be expected to install

broadband and provide training.

The Mpumalanga Economic Growth Agency

(MEGA) promotes foreign investment into the province,

facilitates trade and supports local businesses.

MEGA is an agency of the Mpumalanga Department

of Economic Development and Tourism.

All of the projects aim to leave a legacy of good

infrastructure, but they would be structured in such

MPUMALANGA BUSINESS 2017

22


SPECIAL FEATURE

a way that investors can make a good return on their

investment as well.

and a Forestry Technology Park in the town

of Sabie.

Strategic Economic Zone (SEZ) and Hubs

One project that cuts across sectors is the plan to

develop a Strategic Economic Zone at Nkomazi.

The Nkomazi Local Municipality has already earmarked

land for the SEZ, which will be established in

terms of the Special Economic Zones Act of 2014 (Act

16 of 2014). The act defines an SEZ as “geographically

designated areas of the country that are set aside for

specifically targeted economic activities, and supported

through special arrangements and systems

that are often different from those that apply to the

rest of the country”.

Infrastructure at an SEZ should support the specific

industry and attract foreign investors with a

strong focus on beneficiation of local produce or

materials. Skills transfer is another stated aim behind

the SEZ programme.

The location of the SEZ near the Mozambique

border and along the Mozambique Corridor gives

investors in the SEZ logistical advantages and opportunities.

There are tax advantages for investors

in the SEZ and proximity to the Mozambican port of

Matola would be a large benefit to anyone wanting

to create a dry port or logistics base.

The provincial government has a broader plan

to create what Premier David Mabuza has called

“industrial centres of competence”. The idea is to

cluster in a particular geographical area, centres that

will provide economies of scale for manufacturers

and traders but also training and research facilities

that will benefit the relevant sector. These might be

described as sector hubs. Plans are in place for the

creation of several such hubs, including:

• Mining and Metals Technology Park, Steve Tshwete

Local Municipality

• Petro Chemical Industrial Technology Park,

Secunda

• Agriculture and Forestry Industrial Centre of

Competence, Mbombela area

The planned SEZ falls within this quite large geographical

area and the two other focus points are

an International Fresh Produce Market (Mbombela)

Agriculture and produce

Land in Mbombela has been bought and registered

for the required use as the Mpumalanga

International Fresh Produce Market. Investors in

fresh produce are invited to be take advantage of

Mpumalanga’s superior fruit, vegetables and nuts.

The 248ha site is near rail and road links and private

investors are sought to be partners in building

the top structure; services are being laid on by

the province.

The aim is to make the Fresh Produce Market

excellent in every way, including cold chain protection

and in terms of ripening facilities. Access to

such facilities will improve market access for every

type of Mpumalanga farmer, but in particular it will

open up new opportunities for small-scale farmers

who had previously not had access to such facilities.

Helping these farmers and co-operatives gain

access to new domestic and international markets

is among the aims of the Fresh Produce Market.

A large proportion of South Africa’s grain, citrus,

sugar and soft fruits come from Mpumalanga. The

province is one of the key exporters of macadamia

nuts, a subsector that is growing at a remarkably

fast pace.

But there is relatively little agri-processing that

takes place in the province, with most of the products

being exported in their raw state. The Fresh

Produce Market can accommodate investors who

want to start factories to manufacture products

such as juice, or packaging firms.

Transport infrastructure

The Moloto Development Corridor refers to rail

and road links running west-to-east from Gauteng

Province into Mpumalanga. The project to upgrade

this corridor has been approved by national government

and has been handed over by the national

Department of Transport to the Passenger Rail

Agency of South Africa (PRASA).

23 MPUMALANGA BUSINESS 2017


SPECIAL FEATURE

PRASA has invited private investors to come on

board to build a railway line using a wider gauge and

to undertake to build railway stations. The movement

of increased numbers of commuters will obviously

also create opportunities for selling things, and

so the project is inviting retail firms to get involved.

Better access along the corridor will also improve

access for companies in the manufacturing sector

and there will be opportunities in the housing sector

as well. The very efficient Gautrain in neighbouring

Gauteng Province has shown that good rail links

drive property development because commuters

are attracted to the idea of getting to and from

work quickly.

The economic benefits of the improved rail link

will be especially felt in the local municipalities of

Thembisile Hani and Dr JS Moroka.

The National Minister of Transport announced

in June 2016 that the South African National Roads

Agency (Sanral) will spend R3.7-billion on upgrading

the Moloto Road. The R573 is one of South Africa’s

busiest roads, carrying at least 150 000 commuters

every day, mostly to and from Pretoria.

With a good road in place, conditions for traders

and manufacturers along the corridor will be very

favourable.

Almost all the roads in the province are maintained

by the provincial government. Coal haulage

in huge trucks takes a toll on the province’s roads

and many of the province’s townships (neglected

during the apartheid era) lack tar roads and have

poor drainage.

MEGA proposes a system of concessions to be

granted to private developers who would take

responsibility for a section of road: the developer

would provide funding for the planning, construction

and maintenance of the roads for the duration

of the concession.

Water infrastructure

Mining and agriculture – two of Mpumalanga’s

biggest sectors – are thirsty industries and South

Africa is a water-scarce country. Mpumalanga itself has

good rainfall but there are not enough dams to take

advantage of that blessing.

Mining has also been going on for many years

with the result that the water table has risen and

acidic mine water damage is widespread. Partners

are sought to address the acid mine water problem,

using the latest technology.

Many of the province’s water treatment plants

are outdated and need either to be updated or new

ones built, especially because urban areas are growing

very quickly and the plants were built to cater

for much smaller populations.

Opportunities for investors to be involved in

public-private partnerships exist for:

• The construction of dams and reservoirs

• Purification and desalination of acidic water

• New treatment plants

• Water pipelines and water reticulation

• Installation of pre-paid meters

Health infrastructure

Providing healthcare to citizens is a core function

of provincial government. Nearly R500-million will

be spent in the next three years by Mpumalanga

on renovating and building new primary healthcare

facilities. In the 2016/17 financial year, an amount of

R162-million has been allocated to upgrading two

hospitals (Bethal and Middleburg) and building one

new one.

The province hopes to find investors to build

another three new hospitals. Medical staff in such

facilities would be from the Department of Health

but all non-core activities would be provided by

the private company, including management of

the hospital.

A related scheme aims for the development of a

healthcare park to accommodate a range of healthrelated

companies and service providers. Serviced

land has been allocated for this project.

Housing

So strong has been the demand for housing in

Thekwane in the Mbombela Municipality that

planners want to develop a fully-formed town to

accommodate it.

MPUMALANGA BUSINESS 2017

24


SPECIAL FEATURE

A phased development would see a private developer

work with MEGA, who would assist with all landuse

issues and planning approval. The plan envisages

a mix of residential, commercial and public land-use.

Across the province, there is a housing backlog

of 600 000. The provincial government owns many

parcels of land throughout the province that are suitable

for housing developments and seeks investors

who are willing to build mixed-use developments

that includes low-cost housing and rental stock.

This may mean that higher income-generating

units have to be incorporated into the broader development

(office spaces, retail, etc) but affordable

housing must form part of the package.

Energy

Mpumalanga is one of the most important provinces

in South Africa in terms of power generation, but

coal-fired power stations cannot be the only solution.

To that end, the national government has started a

programme to get private investors to build renewable

energy plants to provide to the national grid.

Mpumalanga aims to provide at least 2 000MW as part

of the Renewable Energy Independent Power Producer

Procurement Programme (REIPPP). The Boschejskop

Hydro Dam project would achieve two goals –

alleviate the water shortage in the provincial capital of

Mbombela and provide 300MW of power.

A private investor would be asked to do the

feasibility study and then finance and construct the

facilities with two future revenue streams in prospect:

a water off-take agreement with Mbombela

and the sale of electricity to the national power

utility Eskom.

Other projects suitable for public-private partnership

include the construction of a solar park to

power the Nkomazi Special Economic Zone and a

wind power plant to be built at Sabie and Lydenburg.

On a smaller scale, solar street lighting is seen as

the answer to providing lighting for areas that are

currently don’t have street lighting. Concessions are

on offer to private operators who can install, operate

and maintain such a system. The provincial government

will sign a power purchase agreement (PPA)

with the concessionaire.

Tourism

Mpumalanga is already a much-visited area. The famous

Kruger National Park, several exclusive private

game reserves and many areas of great natural beauty

ensure that Mpumalanga is a must-see destination for

most international visitors. Further leveraging these

advantages could bring greater economic development

to the province. To that end, MEGA has identified

several priority projects that have been packaged

to appeal to international investors:

Blyde River Tourism Cluster

More than a million visitors every year look into this

awe-inspiring canyon, but they seldom stay for long.

This project aims to give the visitor something to do

and a closer look at the canyon via a cable car trip to

Blyde Lake. A related hotel and restaurant development

(and a skywalk for another, adventurous, way of

looking) are all part of the proposal, which could be

parcelled out to a number of investors.

International Convention Centre

Land is available for developers in the province’s capital

city of Mbombela to create an International Convention

Centre. Conference delegates always like to be in nice

places, and the selling point here would be to link the

centre to the province’s greatest tourism assets like the

Kruger National Park, the Blyde River Canyon and God’s

Window. Space is also available for the construction of

a related hotel and multi-purpose recreational facilities.

Visitors to the Kruger National Park can fly into

the Kruger Mpumalanga International Airport, which

is on the outskirts of Mbombela, and the town is

located near to Swaziland and Mozambique, both

tourist destinations of their own.

Mandela Iconic Eye

Mbombela aims to build a statue to pay tribute to

Nelson Mandela, an icon of the struggle against apartheid

and the first president of democratic South Africa.

The statue is planned for a hill overlooking the town,

and will be accompanied by a tourist wheel, a cable

car, restaurants and a conference facility. The value of

the whole project has been estimated at R2.2-billion.

www.mega.gov.za

25 MPUMALANGA BUSINESS 2017


SPECIAL FEATURE

South African

investment incentives

The South African government, particularly the Department of Trade and Industry,

has a range of incentives available to investors, existing companies,

entrepreneurs and co-operatives across many sectors.

South Africa wishes to diversify its economy

and incentives are an important part of

the strategy to attract investors to the

country. The Department of Trade and

Industry (the dti) is the lead agency in the incentives

programme, which aims to encourage local and

foreign investment into targeted economic sectors,

but the Industrial Development Corporation

(IDC) is the most influential funder of projects across

South Africa.

There a variety of incentives available and these

incentives can broadly be categorised according to

the stage of project development:

• Conceptualisation of the project – including feasibility

studies and research and development

(grants for R&D and feasibility studies, THRIP, Stp,

etc)

• Capital expenditure – involving the creation

or expansion of the productive capacity

of businesses (MCEP, EIP, CIP, FIG, etc)

• Competitiveness enhancement – involving the

introduction of efficiencies and whetting the

competitive edge of established companies and

commercial or industrial sectors (BBSDP, EMIA,

CTCIP, etc)

Some of the incentives are sector-specific

MPUMALANGA BUSINESS 2017

26


SPECIAL FEATURE

for example the Aquaculture Development

and Enhancement Programme (ADEP), Clothing

and Textile Competitiveness Improvement

Programme (CTCIP) and the Tourism Support

Programme (TSP).

Manufacturing

Key components of the incentive programme are

the Manufacturing Incentive Programme (MIP) and

the Manufacturing Competitiveness Enhancement

Programme (MCEP). The initial MCEP, launched in

2012, was so successful that it was oversubscribed

with almost 890 businesses receiving funding. A

second phase of the programme was scheduled

for launch in 2016. The grants are not handouts

as the funding covers a maximum of 50% of the

cost of the investment, with the remainder to be

sourced elsewhere.

The Enterprise Investment Programme (EIP)

makes targeted grants to stimulate and promote

investment, BEE and employment creation in the

manufacturing and tourism sectors. Aimed at smaller

companies the maximum grant is R30-million.

Specific tax deductions are permissible for larger

companies investing in the manufacturing sector

under Section 12i of the Income Tax Act.

Other incentives available to investors and existing

businesses in more than one sector include the:

• Technology and Human Resources for Industry

Programme (THRIP)

• Support Programme for Industrial Innovation

(SPII).

• Black Business Supplier Development Programme

(BBSDP), which is a cost-sharing grant offered to

black-owned small enterprises.

• Critical Infrastructure Programme (CIP) that covers

between 10% and 30% of the total development

costs of qualifying infrastructure.

• Co-operative Incentive Scheme, which is a 90:10

matching cash grant for registered primary

co-operatives

• Sector Specific Assistance Scheme, which is a

reimbursable 80:20 cost-sharing grant that can

be applied for by export councils, joint action

groups and industry associations.

Incentives for SMMEs

A lot of emphasis is placed on the potential role of

small, medium and micro enterprises in job creation

and a number of incentives are designed to promote

the growth of these businesses. These include:

• Small Medium Enterprise Development

Programme (SMEDP)

• Isivande Women’s Fund

• Seda Technology Programme (Stp)

Seda is the Small Enterprise Development

Agency, an agency of the Department of Small

Business Development that exists to promote

SMMEs.

Trade-related incentives

The Export Marketing and Investment Assistance

(EMIA) Scheme includes support for local businesses

that wish to market their businesses internationally

to potential importers and investors. The scheme

offers financial assistance to South Africans travelling

or exhibiting abroad as well as for inbound potential

buyers of South African goods.

ONLINE RESOURCES

Official South African government incentive

schemes: www.investmentincentives.co.za

Department of Trade and Industry:

www.thedti.gov.za

Industrial Development Corporation:

www.idc.co.za

Mpumalanga Economic Growth Agency:

info@mega.gov.za

27 MPUMALANGA BUSINESS 2017


Establishing a business in SA

South Africa has eased the barriers to doing business in South Africa for

locals as well as international companies and individuals.

South Africa has a sophisticated legal, regulatory

and banking system. Setting up

a business in South Africa is a relatively

straight-forward process with assistance

being offered by organisations such as the Department

of Trade and Industry 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 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

Comp anies and Intellectual Properties 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.

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 Insurance 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

MPUMALANGA BUSINESS 2017

28


SPECIAL FEATURE

• Applying for industry and export incentives

• Applying for import permits and verifying

import duties payable

• Registering as an exporter if relevant and applying

for an export permit

Business entities

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).

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 dti. 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

or she has tried to find a suitably qualified local

employee prior to hiring a foreigner?

• Is the prospective employee appropriately qualified

and do they have the relevant experience?

Business permits

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.

The funds must originate overseas, be transferable

to South Africa and belong to the applicant

(ie emanate from the applicant’s own bank

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

πemployer.

Applications for work permits for self-employment

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.

What would 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, alerting investors to

investment incentives and setting up joint ventures

where required.

A full description of the services offered by

MEGA is reflected elsewhere in this publication.

29 MPUMALANGA BUSINESS 2017


FOCUS

A full range of

business solutions

Relevant financial and advisory services are offered to

clients throughout Mpumalanga

Managing a business entails a range of challenges. As a business

grows, different problems and opportunities demand

specific solutions – what worked in the past might not be

the best approach now.

Nedbank Business Banking’s team in Mpumalanga offers a full range

of financial and advisory services to businesses in and around the

province. The bank’s expertise, combined with a deeper understanding

of the local economy, allows us to provide you with relevant, timeous

solutions that can make taking your business to the next level happen.

Advantages of banking with Nedbank

A single point of contact

A business manager, located in your region and supported by a team of

specialists, is dedicated to servicing your business and managing your

banking needs, whether your business is just starting or established

and growing.

Industry-tailored solutions

Specialist industries require specialist solutions. Nedbank has designed

solutions that address the specific needs of the franchising, agricultural

and government and public sector. Speak to our team of specialists with

first-hand knowledge and experience in these industries.

Transactional banking

Nedbank Business Banking fully understands the importance of transactional

banking requirements as the core of any business operation. Our

transactional banking solutions integrate seamlessly into your business

processes.

Nedbank Business is a highly secure, world-class internet-based

electronic banking system that will transform your business. Imagine

your day-to-day banking, only 100% more efficient. Our incredibly

versatile and easy-to-use structure will prove infinitely more functional

and will improve the practicality of your company’s banking

enormously:

Loderick Lubisi, Nedbank’s

Regional Business Head in

Limpopo and Mpumalanga

• First bank to use token

technology

• Segregation of duties and

account permissions

• Accurate transaction referencing

on all channels

• Multiple statement formats

• Free statement downloads

• Free five-year history online

• Free online cheque and

deposit slip images

For more information about

our specialised service offering

please contact Loderick

Lubisi, Nedbank’s Regional

Business Head in Limpopo and

Mpumalanga, at loderickl@

nedbank.co.za

MPUMALANGA BUSINESS 2017

30


Making banking accessible

to all and supporting

small business

Nedbank is a bank for all

FOCUS

Nedbank prides itself on making things happen and is committed

to making banking accessible to all in South Africa.

As a bank, Nedbank repositioned its strategy to become

a bank for all – and we continue to grow our footprint in

communities where we were previously not represented.

Our new “Branch of the Future” is a client-centred branch engineered

to provide a distinct client experience enabled through

state-of-the-art technology. Innovative features deployed in our

new branches include video banking facilities, state-of-the-art cashdepositing

ATMs, queue management that reduces waiting times,

as well as internet banking facilities.

From a small business perspective, Nedbank is a bank for entrepreneurs.

We recognise the challenges of unemployment facing the

country, and we have an extensive list of interventions to support

small business as they are key in creating jobs, and boosting our

economy.

Providing solutions for entrepreneurs

Nedbank has built a solid foundation and reputation as a bank for small

businesses through national initiatives like:

• Small Business Seminars — are held biannually and are free. The

seminars provide practical advice and solutions on basic financial

planning, cash flow management, etc.

• SimplyBiz — is an electronic platform which is free and used for

networking and sharing of best practices for business owners in the

same industries. Check out the portal SimplyBiz.co.za.

• Market Edge is a Nedbank Big Data tool that intelligently packages

client information as a service to clients in an easy-to-consume online

tool, aggregating all card transactions passing through a Nedbank

point-of-sale (POS) device.

• Gap Access was introduced by Nedbank in 2015 as a cash advance

solution with access to working capital for businesses that accept

cards as payment. Advance of funds and repayment terms are linked

directly to card turnover.

Maki Mahlaba, Regional

Manager Retail Relationship

Banking

• Nedbank sponsors and partners

with external stakeholders

like Raizcorp, who host workshops

for entrepreneurs wishing

to obtain advice on how

to pitch their business ideas

effectively.

Nedbank also caters for business

owners, households, young

professionals and professional

banking.

For more information about

our Small Business Services and

Professional Banking call Maki

Mahlaba +27 10 235 3007 or

send an email to margaretma@

nedbank.co.za

31

MPUMALANGA BUSINESS 2017


KEY SECTORS

Overview of the main economic

sectors in Mpumalanga

Agriculture and agri-processing 32

Sugar 37

Forestry and paper 38

Mining 40

Oil and gas 46

Energy 48

Engineering 50

Water 51

Manufacturing 58

Transport 62

Construction and property 64

Tourism 68

Banking and financial services 74

Development finance and

SMME support 84

Education and training 86


OVERVIEW

Agriculture and agri-processing

Mpumalanga's macadamia nut sector is cracking on.

The agricultural sector accounts for 3.3% of the gross domestic

product (GDP) of Mpumalanga and for nearly 12% of employment.

Separate overviews of the sugar and forestry sectors

appear elsewhere in this publication.

Mpumalanga 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.

Big companies cultivate maize, sugar, timber, vegetables, fruit

and tea on a large scale and are active in the raising of poultry and

cattle. Large commercial farmers account for the bulk of crop and

livestock production. Macadamia nuts have grown in popularity as

a crop for export exponentially in recent years.

The drier Highveld region with its cold winters supports crops

such as cereals, legumes and nuts. There is extensive irrigation in

the Loskop Dam area. Ermelo in the centre of the province is one of

South Africa’s main centres of sheep-farming and wool-production.

Standerton in the south-west is a dairy centre and Piet Retief in the

south-east concentrates on sugar and tropical fruit.

SECTOR INSIGHT

The provincial government

supports agricultural

entrepreneurs.

• A public-private partnership

aims to ensure

delivery of chickens to

market from small-scale

producers.

• Macadamia plantings are

growing by more than

1 500 hectares every year.

Subtropical fruit flourishes

in the Lowveld and the capital

city Mbombela (formerly called

Nelspruit) is a major citrus pro-

MPUMALANGA BUSINESS 2017

34


ducer. Mangoes, avocados, pecan and macadamia nuts, bananas

and papayas also thrive in the area. The Subtropical Fruit Growers’

Association represents about 400 avocado growers. The subtropical

fruit sector has a combined turnover of R950-million and employs

about 13 000 people.

Mixed farming and potatoes, sweet potatoes and beans are

mostly found in the southern and western parts of the province.

Between them, the high-lying areas of Mpumalanga and the Free

State account for 40% of South Africa’s potatoes.

A land rehabilitation project is underway with the provincial

government, in partnership with mining company BHP Billiton.

This will release more land for agricultural use.

The provincial government of Mpumalanga has instituted a

support programme for farmers in terms of its Comprehensive

Rural Development Programme (CRDP). The Masibuyele

Esibayeni Programme distributes animals in order to improve

the breeding stock throughout the province. There is also a cropmassification

programme.

In terms of the CRDP, small-scale farmers will have the opportunity

to supply the food to be used by schools in the nutrition

programme. Each village and town covered by the CRDP will

also have an opportunity to have its produce taken up to be

displayed at the main provincial fresh produce market.

Emerging farmers can sell their goods at the International

fresh market near Mbombela. The Mpumulanga Fortune 40

Young Farmer Incubator Programme aims to support young

agricultural entrepreneurs as well as the commercialisation

of 20 farms specifically for young people, which will boost

agricultural production.

Another public-private partnership will allow easier access to

market for the chickens produced at the eight poultry houses, which

the provincial government is to construct at a cost of R11-million. An

agreement has been signed for distribution to the following private

companies: Early Bird Chicken, Afgri and Super Grand Distribution.

This scheme forms part of a larger effort to integrate the poultry

value chain, which is being led by the Agricultural Research Council

(ARC) in partnership with the Mpumalanga Department of Rural

Development and Land Reform.

Mbombela is the location of one of South Africa’s premier

research institutions, and the Agricultural Research Council –

Institute for Tropical and Sub-Tropical Crops (ARC – ITSC) in

Mbombela is a leader in the field of research. Specialising in crop

varieties and research into the origin and cure of diseases, the

ITSC has had a number of successes with avocados (new root

stock), coffee yields and banana cultivars.

The Lowveld Agricultural College offers a range of diplomas

in Mbombela. A new satellite facility is being developed in the

35


OVERVIEW

Nkangala District Municipality on the site of the old Marapyane

College of Education near Siyabuswa. The college offers three-year

diplomas and two-year certificate courses in crop production and

animal husbandry. Some students go on to study further aspects

of agriculture at the University of the North West.

The Buhle Farmers’ Academy near Delmas runs successful training

for existing farmers. Trainers like Mposa Agricultural Consultants

provide SETA-accredited courses and the academy claims that

just 8% of its graduates have remained subsistence farmers, with

53% producing at a commercial level. Funders include Monsanto

Fund (USA), the Maize Trust, Standard Bank, Tongaat Hulett Starch

and Omnia.

Companies

Fresh fruit and nut supplier Halls has developed a countrywide reputation

since it was incorporated as a company in 1921. Halls’ Mpumalanga

operation (Mataffin) produces an avocado crop of about 1 300 tons,

37% of the company’s output.

Europe buys most of Halls’ 1.6-million cartons of exports (4kg equivalents)

and this represents about 60% of production. The company is

one of South Africa’s biggest exporters of litchis, with a total production

of about 850 tons in a good year.

Halls cultivates 375 hectares of its own land and has another 1 400

hectares under management. The Matsafeni Trust is the company’s biggest

outgrower and it exports in the region of 300 000 cartons every year.

Westfalia is a diversified agricultural group that runs extensive operations

in the province. The group’s South African operations regularly

sell more than five-million cartons of avocados (50% of the country’s

export volume) and seven-million cartons of mangoes. Westfalia is a

subsidiary of the Hans Merensky Group and most of its holdings are

in the neighbouring province of Limpopo.

Umbhaba Estates is one of the biggest banana growers in the

province. An idea of the size of the operation can be gauged from the

fact that Umbhaba runs its own rigs and trailers – 36 of them – and four

LAND USAGE

AREA

Commercial dry land 1 088 209 square kilometres

Commercial irrigation 110 734 square kilometres

Subsistence agriculture

99 710 square kilometres (20% of this

land is suitable for crop production)

Total

6 530 390 square kilometres

Land statistics in Mpumalanga

SOURCE: MPUMALANGA PROVINCIAL GOVERNMENT

70-seater buses for staff transport.

About a quarter of South

Africa’s tobacco crop is cultivated

in Mpumalanga. British American

Tobacco South Africa (BATSA) has

about 65% of the legal domestic

cigarette market and its factory

in Heidelberg (in neighbouring

Gauteng) makes about 26-billion

cigarettes every year. South

Africa’s annual production is in

the region of 15-million kilograms

of tobacco.

While downstream production

facilities exist in the province,

much more can be done to beneficiate

the region’s rich natural resources,

including fruit juice blending,

sugar byproducts, processing

of sauces, oils, confectioneries,

canned products and cattle feed.

Excellent returns on investment are

anticipated given the close proximity

of the province to the economic

heartland of South Africa to the

west and the international port of

Maputo to the east.

Crops

South Africa’s production of

macadamia nuts-in-shell (NIS) has

grown from about 35 000 tons in

2012 to an estimated 46 000 tons

in 2015. International production

of the nut has been expanding by

20% year-on-year for some time,

and this trend is expected to continue

for at least another five years,

driven by strong demand from

Asia, although drought, hail and

high temperatures are expected to

adversely affect the 2016 harvest.

There are more than 500 farmers

growing the nuts and there are

14 cracking factories in South

MPUMALANGA BUSINESS 2017

36


OVERVIEW

Africa. The sector employs about

4 500 people, of which 1 500 are

permanent employees.

The South African Subtropical

Growers’ Association manages

the business of four growers’ associations,

including macadamia

growers. About 21 500 hectares

are planted with macadamia

in South Africa, most of which

is in Mpumalanga (Barberton/

Hazyview), Limpopo and coastal

KwaZulu-Natal. More than 95% of

the annual crop is exported.

Mpumalanga produces onemillion

tons of maize that is cultivated

on 291 788 hectares. About

53 000 tons of wheat and 33 000

tons of sorghum are produced

annually. Soya bean is another

major crop, and more than half

of South Africa’s soya bean crop

is produced in Mpumalanga’s

Highveld areas. National annual production levels are between

400 000 and 500 000 tons of soya bean.

Mpumalanga accounts for about 21% of South Africa’s citrus production

and a third of its export volumes. Valencia oranges are the

province’s most popular varietal. Hazyview is an important source

of bananas, with 20% of South Africa’s production originating in this

district. About 110 000 tons of avocados are produced in South Africa

every year, with a high proportion of those coming from Mpumalanga.

About 45% of the crop is exported.

Deciduous fruits are cultivated in smaller quantities. The village of

Tonteldoos north of Dullstroom hosts an annual peach festival that

includes liquid marvels such as peach mampoer (the South African

version of moonshine). About 15 000 tons of table grapes are produced

in the province annually and Mpumalanga produces its own wine.

A specialist fruit that does well in the province is the marula. The

marula fruit makes a popular beer and is used in the production of a

liqueur that has done well on the international market.

Potatoes and potato seed thrive in Mpumalanga’s fertile soil, with

one operation in the higher reaches of the Drakensberg range producing

more than 2 000 tons of seed every year. Tomatoes, onions and

cabbage are also farmed profitably.

Mpumalanga is a relatively minor producer of cotton, but there

are areas of the province where the crop is important. It is grown


OVERVIEW

Livestock

mostly under dryland conditions in Marble Hall. The province has

1 500 hectares of dryland under cotton.

Much of South Africa’s total annual production of about 34-million

kilograms of tobacco, especially Virginia tobacco, takes place in

the north-western parts of Mpumalanga as well as in neighbouring

Limpopo. Several of Mpumalanga’s tobacco farmers have switched

to table grapes or citrus in recent years.

Crops produced for export in Mpumalanga include cut flowers,

pot plants and nursery plants.

ONLINE RESOURCES

Agricultural Economics Association of South Africa:

www.aeasa.org.za

ARC-Institute for Tropical and Subtropical Crops:

www.arc.agric.co.za

Citrus Growers Association: www.cga.co.za

Deciduous Fruit Producers Trust: www.dfpt.co.za

Department of Agriculture, Forestry and Fisheries:

www.daff.gov.za

Fresh Produce Exporters’ Forum: www.fpef.co.za

Mpumalanga Department of Agriculture, Rural Development and

Land Administration: www.mpu.gov.za

Perishable Products Export Control Board: www.ppecb.com

South African Cactus Pear Association: www.cactuspear.co.za

South African Macadamia Growers’ Association:

www.samac.org.za

South African Subtropical Growers’ Association: www.subtrop.net

About 14% of the province’s

land area is natural grazing land.

Products include beef, mutton,

poultry, dairy and wool.

Dairy and poultry do well

in the southern parts of the

province. A number of poultryproduction

companies have

large facilities in the Standerton-

Volksrust area. The town of

Ermelo is the centre of one of the

country’s most important sheepfarming

districts, with the export

of wool greatly benefitting the

province and country.

The province is home to one

of South Africa’s largest pig farms,

Kanhym, near Middelburg. Karan

Beef has recently built a large

abattoir in Balfour to service its

massive feedlot in neighbouring

Gauteng. Up to 1 800 head of cattle

can be processed every day at

the facility.

Goats are an important source

of protein and milk for many of

the rural population and the

raising of goats is widespread,

especially in traditional areas.

MPUMALANGA BUSINESS 2017

38


Sugar

OVERVIEW

Irrigation schemes have helped sugar cane producers avoid the worst of the drought.

RCL Foods’ continuing growth strategy saw the diversified food

group acquire TSB Sugar in 2014. TSB Sugar runs three mills in

the Lowveld region (two of which have refining capacity) and

employs about 4 700 people. More than 1 400 commercial

and small-scale farmers deliver sugar cane to the company. TSB brands

are Selati (sugar) and Molatek (animal feed).

Formerly a wholly-owned subsidiary of Remgro, TSB Sugar contributed

R505-million to RCL earnings in 2015 (or 23%). RCL used to be

called Rainbow Chickens.

Mpumalanga has the second-biggest sugar industry in South Africa,

after KwaZulu-Natal, but only TSB has mills in the province.

TSB Sugar has been increasing the amount of cane it takes from

community trusts and small-scale growers. The proportion of land

used to harvest cane from small-scale growers on community land

has grown to 15%, with 64% coming from commercial farmers and

community trusts and 21% from TSB’s own land. About 12 000 hectares

of agricultural land has been sold to communities at Tenbosch and

Matsamo to settle land claims.

TSB’s three mills (including Pongola in northern KwaZulu-Natal) have

been able to maintain volumes because of extensive irrigation schemes.

The provincial government of Mpumalanga has set aside R7.4-

million to provide irrigation for small-scale farmers in Malelane in the

Nkomazi Municipality.

TSB milled a record 702 000 tons of raw sugar in 2014/15. The Selati

retail sugar brand is one of the most popular in the country. The

expenditure of R6.5-billion in Mozambique will greatly increase TSB’s

land holdings and its refining capacity.

About 44 000 hectares in the province is under sugar cane.

Commercial farmers account for 27 000 hectares, emerging farmers for

ONLINE RESOURCES

South African Cane Growers: www.sacanegrowers.co.za

South African Sugar Association: www.sugar.org.za

South African Sugar Industry and Sustainable Development:

www.sugarindustrydev.co.za

Sugar Milling Research Institute: www.smri.org

SECTOR INSIGHT

TSB Sugar is now part of RCL

Foods.

• Dry weather can also

improve crop quality.

• The provincial government

will spend R7.4-million on

irrigation for small-scale

farmers in Malelane.

9 500 hectares and TSB Sugar has

7 800 hectares of its own.

Saleable sugar production in

South Africa decreased by 10%

in 2014/15 to a total of 2.1-million

tons, but this still represents

something of a recovery from

2011 and 2012, when total saleable

sugar production dropped

below two-million tons.

The Akwandze Fund, an

initiative of the Liguguletfu

Cooperative and TSB Sugar,

makes loans for small-scale

farmers. Liguguletfu came into

existence with small investments

from each of the co-op’s

889 members, which eventually

amounted to R5-million in share

equity. TSB Sugar matched this

rand-for-rand. Farmers must join

a savings scheme to belong, and

Akwandze has more than 1 200

customers.

39 MPUMALANGA BUSINESS 2017


OVERVIEW

Forestry and paper

Mpumalanga accounts for 40% of South Africa’s forestry hectares.

SECTOR INSIGHT

Imvelo Forests is testing firedetection

by thermal imaging.

• T h e C o m m u n i t y

Conservation Resilience

Initiative has been

launched in the province.

Mpumalanga has South Africa’s biggest sawmill and its

largest panel and board plant, together with the biggest

integrated pulp and paper mill in Africa.

The forestry sector comprises logging, saw-milling,

wood product and pulp and paper manufacture. Pulp and paper

are the main industry exports, along with sawn lumber, wood chips

and wattle extract. The major export markets are the Far East, Europe

and the UK.

Timber volumes started increasing in 2014 and continued for most of

2015 but the drought affecting most of the nation then had an impact.

York Timbers is reporting increases in production volumes, revenue

and profit. This Sabie-based company, together with large global

brands Sappi and Mondi, are the largest companies operating in the

forestry and paper sector, which accounts for 8% of Mpumalanga’s

gross geographic product.

York Timbers has 61 000 planted hectares, five sawmills and a

plywood plant. York Timbers is spending about R1-billion on the

upgrade of its Sabie plant.

Global paper giants Sappi and Mondi have extensive plantation

holdings and mill operations in the province, while Komatiland Forests

(a 100%-owned subsidiary of state company SAFCOL) has big plantations

in several districts. The group turned a R55.7-million profit in 2015

on the back of improved log sales and cost-cutting.

TWK is a R6-billion agricultural

company with its headquarters

in Mkhondo (Piet Retief).

Asset management company

Global Environment Fund created

Imvelo Forests in 2013. In 2015,

the company investigated using

thermal imaging to detect fires. A

technology developed by Insight

Robotics claims to be able to spot

a single tree on fire within a 5km

radius (SA Forestry).

Among the other private timber

growers in the province are

Pull Scar Timber Co, and United

Forest Products.

The Community Conservation

Resilience Initiative (CCRI) has

been introduced to Mpumalanga,

on the basis that local communities

can play a big role in biodiversity

conservation and restoration.

The first two communities to be

part of CCRI are Mariepskop and

Houtbosloop Valley.

Private rail operator Sheltam

specialises in transporting paper

and pulp, and the company

also has extensive operations in

Mpumalanga.

MPUMALANGA BUSINESS 2017

40


OVERVIEW

Forestry

The South African forestry industry

is valued at R40-billion per

year. The National Department of

Agriculture, Forestry and Fisheries

reports that South Africa has a

shortage of sawn timber and that

this problem is set to get worse.

Timber volumes are down quite

substantially from 2008 when

19-million tons (mt) were harvested,

but in 2015 a figure of 15.8mt

was recorded, bringing in R28.1-

million in revenue. Production

dropped quite substantially in the

final quarter due to the drought,

but a similar total tonnage was

expected to be harvested in 2016.

The forestry sector accounts

for about 12.3% of the nation’s

agricultural GDP, while the forestry

products sector contributes

about 1% to national GDP, as it

has done for many years (Forestry

South Africa).

Mpumalanga has the ideal climate

and topography for forests.

Sabie and Graskop represent the

hub of the industry, but commercial

forests are also found

to the east and south along the

Swaziland border. About 11% of

the land mass is forested, with 4%

of that being natural forest. The

province is the national leader

in total hectares under forest

(514 000) and export earnings.

The Lowveld Botanical

Gardens in Nelspruit has more

than 650 of the 1 000 trees

indigenous to South Africa.

The Council for Scientific and

Industrial Research’s (CSIR) forestry-research

unit aims to improve

tree breeds. Mondi has instituted

an ecosystem management plan throughout its forestry operations,

with the intention of better managing the impact its work has on the

environment. Some areas have been set aside to cater for biodiversity

and endangered species.

Sappi Forests’ purchase of the 14 500-hectare Sjonajona plantation

took the paper and pulp manufacturer’s plantation ownership

in Mpumalanga up to 229 000 hectares, of which 143 400 hectares

is planted.

The Industrial Development Corporation has a stake in York Timbers

and a 42.6% share in Hans Merensky Holdings, a company with timber

and processing interests in three provinces. Merensky is responsible

for 20% of South Africa’s sawn pine lumber.

The commercial-forest sector offers attractive business opportunities

for small-scale entrepreneurs, particularly small-scale growers,

contractors and sawmillers. The pulp and paper industry is ideal

for recycling. Forested areas lend themselves to bee-keeping and

honey-making.

PG Bison operates a sawmill in Empuluzi, while Mondi’s softwood

sawmill in Sabie is South Africa’s largest of its type. Sonae Novoboard’s

panel and board plant is likewise impressively big.

The biannual Sabie Forest Fair is a major event on the forestry

calendar as well as on the region’s social calendar.

Pulp and paper

Wood from the Sjonajona plantation will help Sappi achieve selfsufficiency

at its massive Ngodwana Mill, which has annual capacity to

produce 140 000 tons of newsprint and 240 00 tons of kraft linerboard

and white-top linerboard.

Although local demand is dwindling, the export market for pulp

and paper from South Africa remains strong. Pulp production figures

have been on the rise for several years and companies like Mondi are

increasingly focusing on pulp export because of the better margins

that this product offers.

ONLINE RESOURCES

Forestry South Africa: www.forestry.co.za

National Department of Agriculture, Forestry and Fisheries:

www.daff.gov.za

Paper Manufacturers of South Africa: www.thepaperstory.co.za

South African Institute of Forestry: www.saif.org.za

Technical Association of the Pulp and Paper Industry of South

Africa: www.tappsa.co.za

Wood Foundation: www.thewoodfoundation.co.za

41 MPUMALANGA BUSINESS 2017


OVERVIEW

Mining

The latest technology is improving platinum yields in Mpumalanga.

Coal, platinum, gold and nickel are the province’s major mineral

resources and all of these minerals are still in demand,

even if coal and platinum have experienced roller-coaster

price fluctuations in recent months.

South Africa no longer enjoys world dominance in gold production

– both China and the US produce more ounces – but it does produce

75% of the world’s platinum, 80% of its manganese, 73% of its chrome

and 45% of its vanadium. Mpumalanga has significant resources of

each of these minerals, and several others.

The Witbank coal fields are the most productive in Africa and the

province lies at the southern end of the eastern limb of the Bushveld

Igneous Complex. Chromite, magnetite and vanadium are found in

significant quantities in the province. The ferro-alloy industry is centred

on the town of Middelburg.

Deposits of chromite, magnetite and vanadium in this area are the

basis of the ferro-alloy complex in Witbank-Middelburg (in the District

Municipality of Nkangala) and Lydenburg (Mashishing). Nkomati Mine

is South Africa’s only pure-nickel operation. The province’s coalfields

are in the south and west of the province.

Mining contributes 21.8% to provincial Gross Domestic Product

(GDP) and the relative contribution of the province’s sector to mining

in South Africa has risen in recent years, from 18% in 1995 to 21%.

SECTOR INSIGHT

A Mining and Metals

Technology Park is to be developed

in the Steve Tshwete

Local Municipality.

• Exxaro is developing a new

coal mine at Belfast.

• Anglo American aims to

sell all its coal businesses.

• Northam Platinum has

purchased the Everest

mine from Aquarius

Platinum.

A slump in world commodity

prices has meant a decline

in activity in most mining sectors,

which in turn has led to a

number of retrenchments. The

provincial government believes

MPUMALANGA BUSINESS 2017

42


OVERVIEW

that more beneficiation would

assist in creating employment.

Although the province has a

number of processing plants,

a large percentage of minerals

leave the province (and country)

in their raw state, and consequently

attract less value.

In terms of new mining legislation,

mining licences now

include a provision whereby

some of the resources mined

must be made available to local

manufacturers. The idea behind

the Mineral and Petroleum

Resources Development Act is

to boost the minerals beneficiation

sector, which, it is believed,

will increase employment levels

and stimulate economic growth.

The first “pilot commodity

value chain” has been developed

by the National Department of

Mineral Resources and applies

to the iron and steel industry.

Future value chain strategies

will be developed for energy

(coal, uranium), catalytic converters,

jewellery and pigment

production.

The Mpumalanga provincial

government has announced

that it has plans to develop a

Mining and Metals Technology

Park in the Steve Tshwete Local

Municipality.

A coal beneficiation project

in the eMalahleni district

has been acquired by a local

joint venture. Mining Weekly

reports that Exxaro has disposed

of the asset to Lurco

Group and Burgh Group has

acquired the asset from Exxaro

and that the plan is to produce

25-million tons of coal for export

and for domestic markets.

Coal

Mpumalanga accounts for 83% of South Africa’s coal production and

is the third-largest coal exporting region in the world. The coalfields

of the province feed a number of power stations situated nearby. The

town of eMalahleni (Witbank), in Nkangala District Municipality, is at

the centre of the coal industry.

Eskom told South Africa’s parliament in 2013 that hundreds of

millions of tons of coal are needed in the short and medium term to

ensure stable electricity supply. Sixty percent of the utility’s supply

comes from companies that have coal mines near to power stations

(Exxaro, Anglo Coal and BHP Billiton) and these companies supply

on a “cost plus” basis (in other words, the price Eskom must pay must

reflect any additional costs that the miner has to bear). Short-term

contracts are generally more expensive for Eskom, but these are

growing in importance because the “cost plus” suppliers have not

been able to hit their targets.

In 2015, nearly 30% of Eskom’s coal (33.3-million tons) was supplied

by Exxaro. The Exxaro group produces 39-million tons of coal annually.

Exxaro is going ahead with plans to spend R3.8-billion on a new

coal mine at Belfast. In 2015, engineering companies Arup and DRA

signed contracts to deliver different aspects of the project, and SRK

Consulting has been hired to build a railway siding. The mine will

annually produce 2.2-million tons for export and 500 kilo-tons of

power station coal.

Although Anglo American announced in February 2016 that it

planned to get out of the coal business altogether, the company still

produced in 2015 a total of 50.3-million tons of it, with 17.4-million

tons being exported at the end of 2015.

Anglo’s sell-off will obviously re-shape the coal industry in

Mpumalanga. It is not clear whether one buyer will take all or most

of Anglo’s Mpumalanga’s assets, or whether the sale will be of a more

piecemeal sort. Sibanye has already shown interest in many of Anglo’s

assets (and has already acquired some of the platinum mines) so it

might be a suitable suitor, and Exxaro has also indicated that it may

be interested in buying some assets. However, anyone buying new

coal mines will want to be sure that any contracts to supply coal to

Eskom are water-tight.

There may also be some interest in using the sell-off to bring more

black-owned companies into the sector.

State coal company AEMFC (African Exploration Mining & Finance

Corporation) runs a colliery at Vlakfontein near Ogies and is planning

to develop other projects. A plan to mine more coal for power stations

near Kinross is under way and a smaller project in the eMalahleni

area has also been assessed and will be developed once financing

has been secured.

43 MPUMALANGA BUSINESS 2017


OVERVIEW

BHP Billiton Energy Coal SA (Becsa) has three existing collieries

in the province and is engaged in rolling out two more big projects.

These entail doubling capacity at Klipspruit and improving

efficiencies at Middelburg to such an extent that it will extend the

life of the mine by 10 years.

Former coal trader Wescoal became a coal producer in 2010, and is

increasing its exposure to mining. Wescoal is applying for several new

coal mining rights in Mpumalanga. It owns and manages the Khanyisa

colliery which supplies the Eskom power station at Kendall with coal.

Coal of Africa Limited’s Mooiplaats mine, in the Ermelo coalfields

in the eastern Highveld, was put on care and maintenance in 2013

and sold in 2015 to Blackspear Capital for R250-million. It was built to

supply the Eskom power facility at nearby Camden. Blackspear has a

mine (Overvaal) next to Mooiplaats, as well as other mines at Puleng

(Middelburg) and the Thutsi mine (Business Day).

ArmCoal is a black-owned coal company that arose out of a deal

between Xstrata Coal SA and African Rainbow Minerals Limited (51%).

ArmCoal was the vehicle used in the creation of the large open-cut

thermal coal mine at Goedgevonden.

Gold

Sibanye Gold’s list of acquisitions continues to grow. Formed as a

gold-mining company with one mine in the Free State, Sibanye has

rapidly been buying up platinum assets and showing an appetite to

become a multi-mineral operation. In Mpumalanga it has purchased

and started to develop the Burnstone gold mine near Balfour.

After the Canadian-listed company Great Basin Gold went into

liquidation in 2012, Wits Gold acquired the mine and Sibanye has

purchased Wits Gold. Sibanye is reviving the mine and reports that

Burnstone has a maiden gold reserve of 1.8-million ounces.

Stonewall Resources runs the TGME Project, near the towns of

Pilgrims Rest and Sabie. Operations began in 2011, expanding from

an existing tailing operation. The area is historically one of the oldest

gold-mining areas in the country. Stonewall has ambitious targets

of going beyond production of 40 000 ounces from this and other

historic mines in the area.

There is renewed interest in the Barberton Greenstone Belt. Having

listed on the Australian stock exchange, Vantage Goldfields owns the

Lily mine which was in the news spotlight in 2016 when three workers

were trapped underground in a container after a rock slide. Vantage

purchased Barbrook because it has a processing plant. This plant has

been renamed Central Metallurgical Complex.

Galaxy and Gold Hill mine currently produce 20 000 ounces of

gold per year. The Galaxy company is using new technology to get

the ore body out of the sulphide minerals in which it is embedded.

Having taken full control of its

Barberton mines, Pan African improved

its BEE position (Shanduka

Gold is a 23.8% shareholder) and

set about increasing its annual

gold output to 100 000 ounces.

The company announced in 2010

that new finds at Royal Sheba

will extend the life of Barberton

mines by another 15 years. Pan

African acquired the Evander

gold mine from Harmony and

runs two tailings retreatment

plants, at Barberton and Evander.

Cement

Sephaku Cement produces

1.4-million tons of cement at its

grinding plant in Delmas. There is

undercover storage available for

15 000 tons of bagged cement at

the facility.

Clinker for the Delmas plant

comes from Aganang in the

North West Province and fly-ash is

sourced from the Sephaku classification

plant at the Kendal Power

Station, located about 35km to

the east of Delmas. Fly-ash is an

extender in the final cement product

and Sephaku makes about

1.3-million tons of it.

This development is partly a

response to increased activity in

the power sector (Eskom’s build

programme) but the company

is also very upbeat about the

country’s housing sector and the

national government’s infrastructure

programme. The company

was responsible for a 1.2-million

ton fly-ash-beneficiation plant at

the Kendal power plant.

The Provincial Government

of Mpumalanga is in a partner-

MPUMALANGA BUSINESS 2017

44


OVERVIEW

ship with Eskom, in which opportunities

for young people

who own businesses are created

through the fly-ash beneficiation

programme.

will allow it to produce about 42 000 ounces of PGM concentrate

per annum.

Sylvania Platinum now has seven PGM recovery plants that extract

chrome from tailings on both sides of the Bushveld Igneous

Complex. The company also has some shallow mining projects.

Platinum group metals

(PGMs)

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 (35km west of

Mashishing, formerly Lydenburg).

By the end of 2016, and with this

new asset, Northam expects to

be producing 460 000 ounces of

platinum group metals (PGM). A

concentrator and a chrome extraction

plant were included in

the sale price of R450-million.

The platinum concentrator at

Northam’s Booysendal plant was

the site of a technology first in

2014/15, with the first use of a type

of flotation control introduced

by Mintek, the organisation that

does research and development

for the mining industry. The technology

is software-based and is

called FloatStar Grade Recovery

Optimiser (FSGRO). The grade

measurements that make the process

possible were obtained from

another South African product,

the BlueCube MQi slurry analyser.

Jubilee Platinum has sold

its smelting and refining business

in Middelburg to Siyanda

Resources for R110.5-million in

2015. Jubilee wants to concentrate

on being a miner, and is

confident that its two projects

Ferrous metals

Lydenburg is home to the Lion ferrochrome smelter that is a joint venture

between Glencore and Merafe Resources. Feedstock is primarily

provided by mines run by the same two companies, namely Magareng,

Helena and Thorncliffe.

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 (Machadodorp) in Mpumalanga. The

mine has been converted from an operation run by a contractor to an

owner-operator mine. Reduced demand for stainless steel in the recession

meant that some of the furnaces at Machodadorp had to shut down.

The Manganese Metal Company (MMC) in Mbombela is the largest

producer of pure electrolytic manganese in the world. MMC is owned

by Samancor (51%) and Bilston Investments owns the balance.

Nickel

Most of the R3.9-billion that has been committed to the upgrade

project of the Nkomati operation of ARM Platinum and Norilsk Nickel

Africa has been spent.

A full nickel off-take agreement exists with Metal Trade Overseas

(MTO). A 375ktpm concentrator plant has been built, allowing for greater

volumes to be milled. Production levels are rising on the back of increased

global demand.

Niger Uranium Limited has entered into a joint venture with

Southern African Nickel Limited (San) to explore nickel opportunities

near Burgersfort in Mpumalanga. Exploration is going to be done for

the joint venture by Pangea Exploration.

ONLINE RESOURCES

Aluminium Federation of South Africa: www.afsa.org.za

Chamber of Mines South Africa: www.bullion.org.za

Geological Society of South Africa: www.gssa.org.za

Mining Qualifications Authority: www.mqa.org.za

Mintek: www.mintek.co.za

National Department of Mineral Resources: www.dmr.gov.za

South African Mining Development Association: www.samda.co.za

45 MPUMALANGA BUSINESS 2017


FOCUS

KUKA Mining Logistics –

Industrial Aerial Ropeways

Superior materials handling in areas with limited access.

Kuku Mining Logistics is a specialist developer of Industrial Aerial

Ropeways for the transport of ore. It focuses on areas that are difficult

to access without decent road/rail infrastructure in Africa,

Australasia, Asia and South America.

Since the company’s inception in 2003, KUKA has accumulated significant

intellectual property through its internal professional team whose

expertise is continually enhanced by exposure to mining and industrial

projects worldwide. The company has developed a highly skilled team

of South African engineering companies, and entered into a technical

agreement with Leitner, one of the leading ropeway companies in the

world with 150 years’ experience. Leitner acts as system integrator and

supplies the critical components.

“Meeting client needs with superior materials handling system solutions

has placed KUKA at the forefront of the development of material

ropeways as utility assets for a range of mining clients. KUKA offers

the full spectrum of activities from planning and basic design, through

detailed engineering design, contractors’ activities, procurement and

commissioning, project financing

and risk insurance, ending with

project delivery, operations and

maintenance,” says Louis van der

Walt, Managing Director.

Described as a revival of

an old logistics concept tailormade

for new mines developed

in remote and difficult

accessible terrain, Industrial

Aerial Ropeways is normally the

most efficient form of mining

product transportation.

In most countries the mining industry

has sought to complement

the existing rail capacity, with the

introduction of a substantial number

of articulated tipper trucks in

order to transport mined ore and

coal from the mines to plants

and ports. Unfortunately this has

led to a number of unintentional

consequences, including alarming

degradation in the quality of

available road infrastructure, with

substantial damage being done

to the roads on an ongoing basis;

ongoing negative environmental

impact manifested primarily

as noise and dust pollution and

heightened emissions; and high

cost to build heavy-duty roads

from new mines in remote areas

to processing plants or ports.

In comparison, rope technology

possesses the advantage of being:

• Adaptable: Traversing prohibitive

MPUMALANGA BUSINESS 2017

46


FOCUS

or mountainous areas; Long distance

(100km+) ; High freight

rates (800tph+)

• Robust and Durable: Low life

cycle cost; Operate > 50 years

• Simple: Very high availability;

relative low operating cost

• Environmentally sustainable:

small footprint; energy efficient;

no noise; no emissions

• The ideal mode of transport:

Provide competitive interface

to rail networks; ideally suited

for remote areas and difficult

terrain.

KUKA has completed numerous

small ropeway projects and feasibility

studies for a number of large

ropeway projects in Africa and

South America. KUKA should start

with the construction of a 16km

long ropeway in Steelpoort Valley

during the second half of 2016.

CONTACT INFO

Physical address: 1st floor, Block 5 Bryanstongate Office Park

170 Curson Road, Bryanston, South Africa

Postal address: PO Box 414, Petervale, 2151

Tel: + 27 82 949 2333

Fax: + 27 86 521 2230

Email: info@kukaropeways.com

Website: kukaropeways.com

Specialist developer and operator of bulk aerial ropeway

logistics infrastructure for clients in the mining sector,

as well as aerial based people transporting systems.

Contact Details: Louis van der Walt

082 949 2333 • louis@kukaropeways.com


OVERVIEW

Oil and gas

Mpumalanga is well-placed for a new national focus on gas.

Anew national focus on gas as a fuel to supply energy will

benefit the province of Mpumalanga, which is already geared

to use and transport gas.

Sasol and the provincial government have commissioned

an in-depth technical feasibility study for a Petrochemical Technology

Park to be located in the province, which report is due in the course

of 2016.

Evidence of national government’s new focus came in the

2016/17 budget speech of the Department of Energy, when plans

for a 600MW gas-fired power plant were announced.

The Department of Trade and Industry (dti) is creating a special

unit to import liquefied natural gas (LNG) into the country, as

part of the strategy to overcome the reliance on coal to power

South Africa’s power stations. The vast gas fields off the coast

of Mozambique are the most obvious source of supply, and in

January 2016, Sasol obtained approval from the Mozambican government

for a field development plan that will see hydrocarbon

resources developed. It already produces gas and condensate

from the Mozambican Pande and Temane fields, with most of the

gas currently exported for use as feedstock for its chemical and

synthetic fuel operations in South Africa as well as for the South

African gas market.

Sasol Energy supplies natural gas to Sasol Secunda Synfuels

Operations and buys Sasol Secunda Synfuels Operations methane-rich

pipeline gas to sell to customers in Mpumalanga and KwaZulu-Natal.

SECTOR INSIGHT

National government is backing

a new 600MW gas-fired

power project.

• Sasol completed its R13.8-

billion Secunda growth

programme in 2016.

Natural gas is an inexpensive

alternative to coal. Although the

coal industry still has life in it, it

is a finite resource. Sasol’s R14-

billion mine replacement project

in Secunda, which extends the

lifespan of its Southern Africa integrated

value chain, is substantially

complete.

Petroleum Agency SA is the

state agency responsible for

promoting and regulating exploration

and production of

oil and gas in the country. Two

methane-gas exploration rights

have been granted to Highland

MPUMALANGA BUSINESS 2017

48


OVERVIEW

Exploration in the Evander area

in Mpumalanga.

Many of the big mining and

manufacturing concerns in

Mpumalanga have long-term

contracts for the supply of gas

with big gas companies. Afrox

and Air Liquide are two of the

biggest, with the latter having

3 500 national customers, which

include Sappi and Sasol.

Eskom’s innovative underground

coal-gasification (UCG)

project puts the power utility at

the forefront of exploring ways

of using coal in a more environmentally

responsible way. UCG

is a process whereby coal is converted

into a synthetic powergenerating

gas underground.

When it comes to liquid petroleum

gas, mostly used in

households (and normally delivered

by canisters), some changes

are coming for consumers. The

Competition Commission wants

to make the sector more competitive,

and aims to do this by reducing

the duration of contracts between

bulk sellers and refineries.

(Mail & Guardian). South Africa’s

LPG market is worth R1.5-billion

per annum and the country produces

300 000 tons of product.

One of the aims of the commission

is to make LPG cheaper and

more easily available to private

consumers, who currently make

up just 3% of the market.

Fuel

The Secunda Synfuels Operations

facility, which forms part of the

Sasol complex at Secunda, is the

only commercial coal-to-liquid

fuel plant in the world, and forms a vital part of South Africa’s oil and

gas sector.

Sasol is an international integrated chemicals and energy company

that produces a range of product streams including liquid fuels, chemicals

and low-carbon electricity. Several of the company’s divisions have

plants at Secunda in Mpumalanga.

In 2016 Sasol completed the R13.8-billion Secunda growth programme,

which delivered an increase in volumes from Secunda

Synfuels (to a record 7.8-million tons).

Pipelines

Together with its partners in Rompco (a consortium that includes a

Mozambique gas company and iGas, the South African state agency

for gas), Sasol will spend a total of R4.8-billion on pipelines to get gas to

customers in Mozambique and in South Africa. The main pipeline runs

to the Sasol facility at Secunda from the processing plant at Temane,

Inhambane Province, southern Mozambique, 870km away. The upgraded

and expanded pipelines should be able to carry upwards of

200-million gigajoules per annum.

A 145km multi-product pipeline links the Sasol facilities at Secunda

and Sasolburg in the Free State province.

South Africa has four major pipeline networks: crude oil, gas, jet

fuel and multi-product.

The first litres of diesel fuel ran along Transnet Pipelines’ new multiproduct

pipeline (NMPP) in January 2012, launching a new era for

the transportation of fuels to the Highveld. The old pipeline was

inaugurated in 1965.

The NMPP will be able to carry about 26-billion litres of fuel every

year. Refined products such as jet fuel, sulphur diesel and both kinds

of octane petrol will be carried.

State entity Transnet Pipelines owns, operates, manages and maintains

a network of the 3 000km pipelines that make up the bulk of the

national network.

ONLINE RESOURCES

Central Energy Fund: www.cef.org.za

Petroleum Agency SA: www.petroleumagency.co.za

PetroSA: www.petrosa.co.za

Sasol: www.sasol.com

South African Oil and Gas Alliance: www.offshoreafrica.co.za

South African National Energy Association: www.sanea.org.za

South African Petroleum Industry Association: www.sapia.co.za

Transnet Pipelines: www.transnetpipelines.net

49 MPUMALANGA BUSINESS 2017


OVERVIEW

Energy

Biomass puts Mpumalanga on the renewable energy map.

SECTOR INSIGHT

A 25MW power plant at

Sappi’s Ngodwana mill is part

of the drive to provide South

Africa with renewable energy.

• Power is expected from

the new power station

Kusile in 2017.

One of the world’s most efficient public-private partnerships

is under way in South Africa. In the drive to provide

new sources of power for the national grid, the focus has

mostly been on solar power and wind power, but the

acceptance of the bid by Sappi and its partners as providers of 25MW

of biomass power in 2015 shows that the process is open to many

types of power generation.

The national programme to procure power from private producers

is called the Renewable Energy Independant Power Producers’

Procurement Programme (REIPPPP). By May 2016 the REIPPPP had

delivered on its promise of 6 377 megawatts (MW) with an investment

value of R250-billion and many of the projects are already delivering

electricity to South Africa’s grid.

The REIPPPP has so far seen four phases of bidding (known as bidding

windows), and competition among investors is fierce. The most

recent, fourth, window attracted 77 bids; initially just 13 were selected

but a further 13 bids were accepted later. The Sappi-led consortium’s

bid was part of Window 4. Collectively the 26 projects will add 2 205MW

of power and inject R23-billion into the economy.

Sappi’s international partner is KC Africa (part of KC Green Holdings

of South Korea) and two local trusts will hold 10% of the project

between them. Fusion Energy is the other stakeholder while the

banks behind the project are Absa and Nedbank. The principal contractor

to build the plant, which will be powered by Sappi’s wood, is

Johannesburg-based ELB Engineering Services.

As the renewable energy

programme thrives, another national

trend that is showing itself

in Mpumalanga is the move to

gas as a source of power. City Press

reports that mining for natural gas

has begun in the southern part of

the province near Volksrust and

Amersfoort. The rich coal deposits

of the province make it an obvious

target for exploration of coalbed

methane. A joint venture

between South African company

Badimo Gas and Kinetiko-Energy

from Australia has two licences

covering 1 601km².

Coal and alternatives

Most of the nation’s coal-fired

power stations are in Mpumalanga

and a massive new one is under

construction at Kusile.

Three previously mothballed

power stations have been reopened.

Camden, near Ermelo, was

the first to come back on stream,

with 1 520MW being added to the

grid. Komati and Grootvlei are on

MPUMALANGA BUSINESS 2017

50


OVERVIEW

stream again and will eventually

be contributing 800 megawatts.

Arnot and Kriel have been upgraded

while the refurbishment of

Matla power station is under way.

The massive Duvha power station

has a capacity of 3 450 megawatts.

The new coal-fired power station

being constructed at Kusile

near Delmas in the eMalahleni

Municipality will add 4 800MW to

the grid when complete. Several

delays have pushed back the

date when power can first be

expected: the latest information

is that power from Unit 1 can be

expected in the first half of 2017.

The provincial government of

Mpumalanga has conducted a

pre-feasibility study into building

a hydroelectric plant at Nkomazi,

a sign that South Africa’s biggest

producer of coal-fired power

is looking at alternative ways of

generating energy.

Independent power producers

have expressed interest in the project

and with a number of strongrunning

rivers and steep ravines

in the province, hydro power

certainly has potential.

A new transformer at the

Acornhoek substation in

Bushbuckridge has been installed

by national utility Eskom.

This will improve power supply

to towns such as Bushbuckridge‚

Acornhoek‚ Hoedspruit‚ Hazyview

and Phalaborwa, and make investment

in those areas a more

attractive proposition.

York Timbers, in the course of

the R1-billion upgrade of its Sabie

processing facility, will build a

cogeneration plant that will produce

about 15MW of electricity

every year.

Anglo American has plans to build a 450MW power station near

eMalahleni to supply its platinum mines with electricity.

Assmang is among several resources companies looking into establishing

cogeneration plants. The ferroalloy producer intends building

a 20MW plant to serve its smelter at Machadodorp.

Eskom is investing in a solar-power pilot project at its Kendal power

station. Power company ABB has been contracted to build a solar

photovoltaic power plant with a 620-kilowatt capacity that will be

used to run some of the power station’s functions.

The Combined Cycle Gas Turbines at Sasol’s Secunda complex in

Mpumalanga have been generating power since July 2010 and can

generate up to 280MW from natural gas.

A scientific research project known as Hydrogen SA (HySA) is investigating

the use of this powerful but volatile element as an energy

source. Fuel cells usually use hydrogen and platinum, which is widely

found in Mpumalanga.

ONLINE RESOURCES

Eskom: www.eskom.co.za

National Department of Energy: www.energy.gov.za

National Development Agency: www.nda.org.za

National Hydrogen and Fuel Cells Technologies Research,

Development and Innovation Strategy (HySA):

www.hydrogen.qsens.net

Sustainable Energy Africa: www.sustainable.org.za

Sustainable Energy Society of Southern Africa: www.sessa.org.za

51 MPUMALANGA BUSINESS 2017


OVERVIEW

Engineering

Bursaries are available for aspirant engineers in Mpumalanga.

Engineers of every sort are needed to build and maintain the

complex facilities that underpin Mpumalanga’s economy,

from Sasol’s complex synthetic fuel plant and the biomass

power plant being built for Sappi to the coal mines and

platinum extractor plants in the mining industry.

Experience gained in a wide range of complex projects has

enabled White River-based Steval Engineering to expand its services

into Mozambique and Ghana. By working on projects in sectors

as diverse as sugar-milling, oil and gas, petrochemicals, mining,

pulp and paper and power, Steval has become adapt at making

and erecting structural steel, platework, steel bulk storage tanks

and pipes.

Mpumalanga Consulting Engineers (MCE) focusses on providing

a Mechanical Design Service. Clients range from Sappi and Nkomati

Mine to Glencore and Samancor.

Contracts signed by Concor Engineering with Eskom (for the

erection of workshops and the fabrication of steel-flue cans at

the Kusile power plant building site), and with Sasol to work on its

Secunda facility’s coal tar filtration plant, are typical of the type of

engineering work done by engineers in Mpumalanga.

The other big employer of engineers is the mining sector. Exxaro

is drawing on the expertise of several engineering specialists for the

construction of its big new coal mine at Belfast. Both DRA Taggert

and Arup are part of huge international engineering practices with

offices in most parts of the world where mining takes place. SRK

Consulting is another major firm working on the Belfast project,

and it is active on several mines in Mpumalanga.

ONLINE RESOURCES

Consulting Engineers South Africa: www.cesa.co.za

Engineering Council of South Africa: www.ecsa.co.za

South African Institution of Civil Engineering: www.saice.org.za

South African Federation of Civil Engineering Contractors:

www.safcec.org.za

Southern African Institute for Industrial Engineering: www.saiie.co.za

Steel and Engineering Industries Federation of South Africa:

www.seifsa.co.za

SECTOR INSIGHT

Mpumalanga engineering

companies are expanding

into Africa.

• ELB Engineering Services

has been hired for the

Sappi biomass energy

project.

The sugar and forestry industries

also need technical expertise,

and Sappi has started work

on a new biomass-to-energy

plant at its Ngodwana Mill: ELB

Consulting has won the engineering,

procurement, and construction

(EPC) contract.

Mpumalanga is home to

several large-scale processing

plants that require high-end engineering

skills: for example, the

manganese works in Nelspruit

and the ferrochrome plants at

Middelburg and eNtokozoweni

(Machadodorp).

A joint venture comprising

Group Five, Stefanutti Stocks,

WBHO and Basil Read is tackling

the civil engineering work on

the massive Kusile Power Station

contract. The Cosira Group and

Alstom S&E are contracted to

supply the boilers. Bateman

Engineering Group is carrying

out materials handling on

the site.

MPUMALANGA BUSINESS 2017

52


Water

The new De Hoop Dam is delivering water for bulk

distribution in Mpumalanga.

OVERVIEW

SECTOR INSIGHT

• Sasol has reduced water

usage by 10%.

• Sappi is raising the wall of

the Comrie Dam.

Four large rivers run through Mpumalanga: Usutu, Crocodile, the

Sabie-Sand and the Komati, but most of them are stressed. The

catchment areas are Olifants, Nkomazi, Usutu and Upper Vaal.

The province’s biggest industries of forestry, mining, synfuel

production and power generation are all thirsty activities. Old mines

in particular present problems in that they can pollute groundwater.

This means that Mpumalanga has to conserve its waters, build more

dams and commission new water-treatment plants.

Many municipalities in Mpumalanga have been struggling for some

time to provide water for their citizens.

The completion of the De Hoop Dam means that people living in

municipalities can now expect bulk water delivery. The Trans Caledon

Tunnel Authority (TCTA) is responsible for seeing that bulk water

supplies are laid on, but making the local connections and actually

delivering the water is up to municipalities and water boards.

The Provincial Government of Mpumalanga has pledged significant

resources to this end:

• R2.7-billion in 2015/16 to municipalities for water and sanitation

projects

• 32 boreholes have been built to help during the drought, and in

2016/17 a further 582 boreholes will be sunk

• R91-million on the Lushushwane Bulk Water Supply in the Gert

Sibande District Municipality

• Waste-water treatment works to be refurbished in Emakhazeni

Municipality (funding from

national Department of Water

and Sanitation)

• Inyaka Water Treatment Works,

the Acornhoek Bulk Water

Pipeline, and water reticulation

projects to 15 villages in the

Bushbuckridge Municipality

About 137-million litres of water

is supplied on a daily basis to

about 1.2-million people in the

Bushbuckridge and Mbombela

local municipalities by Rand

Water. The company runs 11

water-treatment plants, two river

schemes and a sewage-treatment

plant.

Large schemes

The De Hoop Dam is the centrepiece

in the very large

Olifants River Water Resource

Development Project (ORWRDP),

which will transform and control

water usage for industrial,

commercial and private users.

As the catchment area for this

huge scheme is to the north of

Mpumalanga, the spinoff effect

on the province is significant.

53 MPUMALANGA BUSINESS 2017


OVERVIEW

The Olifants River System (and

associated systems such as the

Blyde Irrigation Scheme) feeds

the region that is South Africa’s

greatest producer of citrus and

subtropical fruits.

The TCTA has delivered

the Komati Water Supply

Augmentation Project: an extra

57-million m³ of water every year

is now available for the Duvha

and Matla power stations in the

eMalahleni (Witbank) area, and

other water users.

To make sure that its big

Saiccor Mill receives a steady

supply of water, Sappi is to raise

the wall level of the Comrie Dam.

Across its global operations,

Sappi claims to return 93% of

the water it uses back into the

environment once it has been

cleaned.

Another important piece

of infrastructure being worked

on is the second phase of the

Vlakfontein canal rehabilitation

project. Located between

Secunda and Standerton, the canal

carries water to vital facilities

run by Sasol and Eskom.

A big water user in the province

is Sasol, and it reduced its

water usage in 2015 by 10% on the

previous year (135 458m³ against

149 552m³). In addition, the company is working with the Govan

Mbeki Municipality to help residents of the township of eMbalenhle to

conserve water.

The R300-million water reclamation plant built by Anglo Coal South

Africa and BHP Billiton Energy at eMalahleni has proved such a success

that the UN Conference on Climate Change singled it out for praise.

About 30-million litres of water are treated every day, with the bulk of

the potable water going to the eMalahleni Local Municipality and the balance

going to the mines and coal-washing plants of the two companies.

The Ehlanzeni District Municipality has a Water and Sanitation unit.

The White River Water Augmentation Scheme has improved water

supplies in the White River area.

Rand Water currently provides water to all but one of the local municipalities

in the Nkangala District Municipality (western region) and

one of the local municipalities in the Gert Sibande District Municipality

in the southern part of the province.

The Komati Basin Water Authority (Kobwa) covers the major rivers

of the eastern Lowveld, the Lomati and Komati. Kobwa is a bi-national

agency with Swaziland and South Africa each supplying three members

to the commission. Phase one of the Komati River basin development

project entailed building dams in South Africa (Driekoppies) and

Swaziland (Maguga).

ONLINE RESOURCES

De Hoop Dam: www.dhcw.co.za

Inkomati Usuthu Catchment Management Agency:

www.inkomaticma.co.za

Komati Basin Water Authority: www.kobwa.co.za

National Department of Water and Sanitation: www.dwa.gov.za

Rand Water Board: www.randwater.co.za

Trans Caledon Tunnel Authority: www.tcta.co.za

Water Institute of South Africa: www.wisa.org.za

MPUMALANGA BUSINESS 2017

54


PROFILE

Rand Water

Rand Water is an essential services utility accountable to

the Minister of Water and Sanitation.

Inyaka Dam and part of Inyaka Water Treatment Works in Bushbuckridge area.

Rand Water took over the services of Bushbuckridge

Water in Mpumalanga from April 2014.

The water board’s primary function is the provision

of bulk-water supply and sanitation services for the

benefit of the people of Mpumalanga Province,

specifically its existing clients ie Bushbuckridge

and Mbombela Local Municipalities. The aim

of the Utility is to excel in its current service

provision before expanding to other municipalities

in the province.

The Utility’s strategic drive is to improve water

accessibility for communities, while increasing

water quality management. Drought and ageing

infrastructure are some of the challenges but, for

the two years of the Utility’s existence in the province,

numerous stakeholders have registered their

MPUMALANGA BUSINESS 2017

56


PROFILE

Bushbuckridge; 4 in Mbombela and 1 in Nkomazi

Local Municipalities benefit from the JoJo tank

project completed in June 2016. These schools

will now store water during this season of drought.

Other projects implemented during 2016 by the

Rand Water Foundation include the crèche built

at Mgcobaneni in Mbombela and food gardening

projects in Bushbuckridge.

THE UTILITY’S STRATEGIC

DRIVE IS TO IMPROVE

WATER ACCESSIBILITY

FOR COMMUNITIES WHILE

INCREASING WATER QUALITY

MANAGEMENT

Rand Water has installed JoJo tanks at various

schools in Mpumalanga.

satisfaction in the water services supply. Rand

Water knows that further improvements in capital

development of infrastructure are required to increase

efficiency and performance.

Rand Water has improved its relationship with its

stakeholders in Mpumalanga. A partnership with

the Mpumalanga Legislature led to the support of

Moseterata High School in Bushbuckridge Local

Municipality for “The Speaker Legacy Project”.

Rand Water rehabilitated the school borehole and

installed a new JoJo tank to increase storage capacity

and water accessibility for the school in May 2016.

This served to benefit the entire village.

A further partnership with Radio Ligwalagwala FM,

as part of its social investment, saw 5 schools in

As an essential services utility, Rand Water is committed

to contributing to the socio-economic development

of people in Mpumalanga Province

through the provision of bulk sustainable services.

Water is everybody’s business – let’s save water as

every drop counts!

CONTACT INFO

Physical address: 8 Chief Mgiyeni Khumalo

Drive, White River

Postal address: Box 2048, White River, 1240

Customer Service Centre: 0860 10 10 60

customerservice@randwater.co.za

Tel: + 27 13 750 0399

Website: www.randwater.co.za

57 MPUMALANGA BUSINESS 2017


INTERVIEW

Providing access to

clean water a priority

Inkomati-Usuthu CEO Thomas Gyedu-Ababio shares the

challenges of water availability during a drought.

Dr Thomas Gyedu-Ababio

BIOGRAPHY

After studying science, Thomas

worked as a science teacher for

eight years before pursuing his

masters and doctorate in water

quality and water resources

management. Thereafter he

worked for Rand Water Board,

managing the Vaal Dam Catchment

for six years, followed by

10 years as the Water Resources

Manager for the Kruger National

Park. He was appointed to the

position of CEO of Inkomati-

Usuthu Catchment Management

Agency in 2016, after

serving three years as COO.

What is the agency’s current mandate?

Inkomati-Usuthu CMA has to ensure proper management of water

resources at the local level involving stakeholders. We do not provide

water services, but work with water services authorities, making sure

the resource that they use and give to people is protected, clean

and safe. We investigate and advise as well as empower stakeholders

on water use. We undertake verification and validation to ascertain

whether or not people have the right to use water.

What are the challenges the agency faces with regard to

the drought?

We have to monitor water allocation, which is a challenge as the

Kwena Dam that supplies an area from upstream of Nelspruit to

Mozambique isn’t big enough to release water for all the people.

The impact of drought on our planning activities in the past year has

been bad for us. We have international obligations to honour, with

an agreement to supply a certain volume of water to the other side

of the Crocodile and Komati rivers across the Mozambique border.

However, we don’t have enough water as our catchment area gets

insufficient rainfall. We don’t have enough water storage for the

region, as we also share water with Swaziland.

Please share with us the details of the agency’s successes

that you are most proud of.

As the first CMA in the country, we are proud of what we achieved

so far: the compilation of the CMS; reducing pollution in the water

management area; empowering stakeholders, especially Historically

Disadvantaged Individuals, to understand issues of water resources

management and legislation; verification and validation of water

uses; Water Use Authorisations and bringing stakeholders together.

We have also assisted schools by providing water and sanitation as

part of our Corporate Social Investment.

MPUMALANGA BUSINESS 2017

58


SAVE WATER WHEREVER YOU CAN!

The Inkomati-Usuthu Catchment Management Agency (IUCMA) has been working

hard to alleviate the effects of the drought on the country's water supply.

The IUCMA is responsible for water-resource management at local level, which

entails protection, use, development, conservation, management and control of

water resources within the Inkomati-Usuthu catchment area.

The agency has already put several measures in place to overcome the effects

of the drought, such as increasing releases from the dams as well as increasing

restrictions in accordance with the operating rules for the Crocodile River in

Mpumalanga.

Suite 801, 8th Floor The MAXSA Building 13 Streak Street

Private Bag X11214 Mbombela 1200

Tel: 013 753 9000 | Fax: 013 753 2786

Web: www.inkomaticma.co.za or www.iucma.co.za


OVERVIEW

Manufacturing

A Special Economic Zone (SEZ) is to be established in the Nkomazi area.

The last two years have been very tough for steel makers. Ervaz

Highveld Steel cut its workforce nearly in half, then it went into

business rescue in 2015. Attempts to stop cheap steel imports

came too late to save the company, but attempts are still being

made to find a buyer. Middelburg-based Columbus Stainless is a major

supplier of stainless-steel products to the domestic and international

market. About 25% of the company’s production is sold domestically.

The presence of ferrometals means that Mpumalanga is still an

important place for metals and machinery manufacturing, but the

turbulence in the steel sector has reminded everyone of the need to

diversify. Samancor Chrome (which runs Ferrometals) is the secondlargest

ferrochrome producer in the world with three plants, two of

which are in Mpumalanga: eMalahleni (Witbank) and Middelburg.

There has been good news in the food processing sector, with

McCain Foods investing R40-million to upgrade its processing plant

in Delmas.

The Mpumlanga Economic Growth Agency (MEGA) has been appointed

to establish an SEZ in the Nkomazi area of the province. This

move is intended to boost manufacturing capacity.

Most manufacturing in the province takes place in the Highveld

where there is access to chrome, steel and coal. Sasol’s petrochemical

complex and Sappi’s huge Ngodwana Mill are among Mpumalanga’s

biggest manufacturing assets.

Manufacturing accounts for 15% of Mpumalanga’s gross geographic

product (GGP). The Manganese Metal Company in Mbombela is the

largest producer of pure electrolytic manganese metal in the world.

Delta EMD, in the same town, is one of the biggest producers of electrolytic

manganese dioxide, a material used in the manufacture of

alkaline batteries.

The Lowveld area supports food and beverage enterprises and

timber processing. Approximately 70% of jobs in the manufacturing

ONLINE RESOURCES

Middelburg Chamber of Commerce & Industry:

www.middelburg info.com

Mpumalanga Economic Growth Agency: www.mega.gov.za

National Department of Trade and Industry: www.thedti.gov.za

South African Iron and Steel Institute: www.saisi.co.za

Southern Africa Stainless Steel Development Association:

www.sassda.co.za

SECTOR INSIGHT

Sasol makes a major contribution

to manufacturing

capacity.

• McCain Foods has upgraded

its Delmas potato

processing plant.

sector are in food and forestry.

Standerton has textilemanufacturing

capacity in the

form of Standerton Mills. It is also

home to several plants that use

local raw materials: Nestlé has

an infant-cereal manufacturing

plant, Rainbow runs farms in the

Carolina district and Early Bird is

prominent. McCain and PepsiCo

(Simba) have plants that use the

province’s plentiful potato crop.

Africa Silks Weavery in Graskop

employs 70 people to create

luxury silk items. Mbombela and

White River have several furniture

manufacturing concerns.

TSB Sugar, now part of RCL

Foods, runs two large mills and

produces fruit juices through a

subsidiary company. Mbombela is

the centre of the province’s foodprocessing

cluster. Hops Hollow

Brewery is located at Lydenburg.

Piet Retief in the Mkhondo

Local Municipality is the site of

a large pulp and paper plant run

by Mondi.

MPUMALANGA BUSINESS 2017

60


Columbus Stainless, founded in 1966, is South

Africa and Africa’s only producer of stainless

steel fl at products. Because of the boundless

potential for stainless steel as a metal for the

future, we at Columbus remain dedicated

to becoming one of the leading suppliers of

stainless steel in our domestic market and the

global arena.

We have created a modern, effi cient stainless

steel production facility that meets the

changing demands of users in the domestic

market and around the world. With a wide

range of products in Austenitic, Ferritic, Utility

and Duplex grades produced in our plant in

Middelburg, Mpumalanga we are able to

offer a variety of grades of stainless steel

suitable for most applications. Backed by sound

technical support, we are also able to make

recommendations on correct material selection

as part of our customer support process.

Our exported products are channelled through

a well-developed network of agents and group

sales outlets operating in Europe, the Americas,

the Middle East and the Far East.

For all your stainless steel requirements, please

contact us at your earliest convenience.

Columbus Stainless (Pty) Ltd

Head Offi ce

Hendrina Road, Middelburg, 1050

P O Box 133, Middelburg, 1050

Tel:+27 (0) 13 247 9111

Fax: +27 (0) 13 246 1681

Email: commercial-enquiries@columbus.co.za

www.columbus.co.za


INTERVIEW

Columbus Stainless (Pty) Ltd

The company has provided Mpumalanga with the opportunity to

beneficiate otherwise exported minerals.

As the only flat steel producer in South

Africa, what success and achievements

has Columbus Stainless enjoyed since its

inception?

Columbus Stainless is the largest producer of

stainless steel flat products in the southern hemisphere.

It produces 80% of all stainless steel flat

products used in South Africa and still exports

70% of its production capacity.

Columbus Stainless has grown together with

the local stainless steel value chain and was instrumental

in growing the almost non-existent

local market to the current over 120 000 tons

of stainless steel consumption per year. It has

provided the technical know-how and logistical

support that allowed the strategically important

automotive industry to be where it is today. We

have introduced grades such as 409, 441 and 436

to the automotive market, 444 as an alternative

to 316 and recently 301 for the manufacturing

of Prasa’s rail cars. Columbus is dedicated to the

South African economy in a way that our overseas

competitors will never be.

How has operating a steel plant

contributed to the province’s economy?

Columbus contributes ±4.7% of the GDP of

Mpumalanga and 0.3% (2015) of the GDP of South

Africa while employing around 2 100 people,

including permanent staff, apprentices, contractors,

temporary workers and trainees.

In terms of your industry, what are some of

the important numbers/statistics?

Raw material prices and exchange rates are the

main drivers in our input costs. We also strongly

depend on local and

global GDP growth

which translates into

growth and demand

for durable goods such

as stainless steel.

Has Columbus

Stainless contributed

to the success of its

clients and suppliers?

Columbus has successfully

been able to

supply on short lead

times the automotive

component makers

who rely on Just-In-

Carlien van der

Merwe, Human

Resources

Development

Manager

Time deliveries. There are also a substantial number

of local suppliers and service providers that

are fully or partly dependent on Columbus for

their existence. These include IDC-backed Hernic

Ferrochrome and 100% BEE-owned Dispack

Packing. Columbus Stainless has recently started a

supplier and enterprise development programme

from which numerous QSE’s (Qualifying Small

Enterprises) and SMME’s have benefited.

Is Columbus Stainless contributing to

economic opportunities for other businesses

in Mpumalanga?

Columbus Stainless brought to Mpumalanga the

opportunity to beneficiate otherwise exported

ferrochrome, nickel and iron scrap thereby

generation generating a constant inflow of

US dollars, euros and other foreign currencies

into the country and the province. There is an

MPUMALANGA BUSINESS 2017

62


INTERVIEW

portunity to develop industries that manufacture

goods for household applications. Also, given

the water situation in South Africa, there is also

an opportunity to focus on water treatment

and sanitation plants that utilise stainless steel

components.

What main challenges is the industry facing

now?

Globally, the stainless steel industry is facing an

oversupply of stainless steel flat product, and

an imbalanced competition in export markets.

Countries competing for the global stainless steel

market tend to protect their own manufacturing

industries by following some proven strategies,

including import duties, export rebates,

government support in the sourcing and price

determination of raw materials, electricity and

other value adding costs. These strategies and

incentives are currently not in place in South

Africa, placing a harsh penalty on South African

manufacturers when trying to compete with their

foreign counterparts.

What manufacturers is Columbus Stainless

supplying to?

Columbus’ stainless steel is used by various manufacturers/industries

such as: automotive component

makers to manufacture exhaust pipes,

catalytic converters, etc; household items; transport

vehicles and industrial applications. Further,

there are many applications in the architectural,

mining and power-generation industries

Carlien van der Merwe.

Columbus is an incredible success story in

terms of transformation and empowerment.

Please share your experience of how this

was achieved.

Transformation is one

of the company’s strategic

pillars. As a large

enterprise, Columbus

has to apply the generic

scorecard. The

new Codes of Good

Practice have presented

opportunities for

innovative solutions.

Kutala Bizana,

General Manager,

Legal and

Transformation

We are also working

very closely with

Mpumalanga Stainless

Initiative (MSI). MSI is

an incubator that specialises

in manufacturing

stainless steel products. We provide stainless

steel at discounted prices as well as assist them

with technical support. This in turn will ensure

that there is continuous demand for our product.

We firmly believe in Corporate Social Investment.

Columbus’ CSI is geared towards children

and schools.

Kutala Bizana

Verina Roach,

Strategist

Tell us about your training initiatives, how

they were formulated and rolled out, as well

as the successes that they have yielded to date.

Columbus Stainless

has various training

initiatives that include

learnerships, apprenticeships,

experiential

learning and graduate

development programmes

and a developmental

programme.

These programmes

include the gaining of

work place experience

during an enhanced

training period. The

two learnerships offered

are Business Administration, a National

Qualification Framework, Level 3, and Metals

Production, a National Qualification Framework

Level 2. The apprenticeship offered by Columbus

includes millright, instrumentation machanation,

fitters, fitters and turners, boiler-makers, diesel

mechanics, riggers and electricians. Columbus

is an accredited training provider, therefore all

training is provided by Columbus and Merseta.

Verina Roach

63 MPUMALANGA BUSINESS 2017


OVERVIEW

Transport

A new railway line between Lothair and western Swaziland will promote trade.

SECTOR INSIGHT

Major upgrades have been

promised along the Moloto

Corridor.

• The Maputo Development

Corridor is a vital part of

South Africa’s importexport

infrastructure.

The already successful Maputo Development Corridor will soon

receive a further boost with the upgrading of the Komatipoort

Dry Port into a Special Economic Zone. The national Department

of Trade and Industry (dti) has designated the Mpumalanga

Economic Growth Agency (MEGA) as the lead agent to

develop the SEZ.

Another specific infrastructural development that will boost trade

is Transnet’s Swaziland Rail Link (SwaziLink) project. A 146km railway

line between Lothair in Mpumalanga and Sidvokodvo in Swaziland

will allow for better movement of freight between the countries and

provide a possible alternative route for freight through to Richards

Bay, thus freeing up space on the dedicated coal line.

The Maputo Development Corridor is Africa’s most advanced

spatial development initiative (SDI), comprising road and rail infrastructure,

border posts as well as port and terminal facilities. Run

by the Maputo Development Corridor Logistics Initiative (MCLI),

the corridor runs from just outside Pretoria in Gauteng, through

eMalahleni, Middelburg and Mbombela in Mpumalanga, and then

on to Maputo in Mozambique.

The Port of Maputo is handling ever-increasing quantities of

cargo, but this could grow exponentially if many of the planned

regional rail-network upgrades happen. About 82% of the port’s

transit exports come from South Africa.

Rail

The Mpumalanga rail system generates more freight traffic than any

other province in South Africa and is of great strategic value. Transnet

Freight Rail is the main operator

and the chief freight movements

are coal, fuel, chemicals, timber,

iron and chrome ore, fruit, maize,

animal feed, wholesale and retail

goods, steel, building supplies,

fertiliser and consumer

goods. The port of Maputo in

Mozambique is an attractive option

for freight. The coal terminal

at Richards Bay in KwaZulu-Natal

receives the majority of the coal

that is mined in the province.

A new rail siding is being

built to service the Majuba

Power Station. The 68km, single

heavy-haul track will be a private

line that is projected to cost

in the region of R5-billion and

it is estimated that it will create

between 3 500 and 5 000 jobs.

Private rail operator Sheltam

services the coal mining and

ferrochrome-metal industries

from its regional headquarters

in eMalahleni. The company

runs systems, hauls raw materials

and rebuilds and refurbishes

locomotives.

MPUMALANGA BUSINESS 2017

64


OVERVIEW

Road

The company that runs the N4 as a

toll-road, Trans Africa Concessions

(Trac), says that heavy-vehicle traffic

on the road has increased by

20% every year since 2009. Trac

is in the process of spending

R1.8-billion on the 570km international

highway.

The N4 highway runs east-west

through the province and is the

main arterial road as well as the

backbone of the Maputo Corridor.

The R36 is a major north-south

route, passing through Ermelo

and connecting Mpumalanga

with Limpopo in the north and

KwaZulu-Natal in the south. The

N17 runs east out of Johannesburg

to Bethal.

The Moloto Corridor is the

name given to the major route

eastwards out of Gauteng

towards Mpumalanga. The

long-term aim is to create a coordinated

road and rail corridor

including rapid rail facilities. In

the short-term the South African

National Roads Agency (Sanral)

will spend R1-billion over the next

three years to upgrade the R573

Moloto road.

With the power generation

and mining industries playing

such important roles in the

Mpumalanga economy, preserving the road and rail network that

feeds them is vital. The provincial government spent about R2.3-billion

on road construction and maintenance last year and will do so again

in 2016/17.

About R500-million has been set aside by the provincial government

for the rehabilitation and reconstruction of the coal-haulage

network, but with the estimated total cost in the region of R6-billion,

the commitment made by Eskom to provide nearly R1-billion over

three years is welcome.

The provincial authorities are upgrading gravel roads to

hard surfaces, in so doing providing better mobility and access in

rural communities (culverts, sidewalks, bus shelters and the provision

of bicycles and animal-drawn carts) as well as scholar transport.

Air

British Airways flies six times a week from Johannesburg into Kruger

Mpumalanga International Airport (KMIA). Airlink offers flights to

Johannesburg and other regional destinations such as Livingstone.

SAA has a service to KMIA.

Middelburg Aerodrome is one of the larger alternate airports in

the province, boasting a 1.9km runway that can accommodate a 737,

while many game lodges have airstrips and helipads. The SA Red

Cross Air Mercy Service operates out of the old Nelspruit airport just

south of the city.

ONLINE RESOURCES

Kruger Mpumalanga International Airport: www.kmiairport.co.za

Maputo Corridor Logistics Initiative: www.mcli.co.za

Mpumalanga Department of Public Works, Roads and Transport:

http://dpwrt.mpg.gov.za

Railroad Association of South Africa: www.rra.co.za

Sheltam: www.sheltam.com

South African Civil Aviation Authority: www.caa.co.za

South African National Roads Agency (Sanral): www.sanral.co.za

Cool Ideas Truck Stop

Cool Ideas Truck Stop is situated 1km from the N4 on the R35 Bethal road near Middelburg, Mpumalanga.

According to Road Freight 6000 trucks are monitored in the Middelburg area. 200 Trucks per hour passes

the truck stop. This makes Cool Ideas Truck Stop the ideal place for you to stop when driving on the N4.

We offer the following services:

Safe parking for Trucks • Drive trough truck wash • Kiosk and Restaurant

Overnight and Restroom Facilities • Laundry • 24 hour diesel facility

MJ: 082 386 6789 • Dorus: 082 388 3248 • Victor: 074 513 7730 • Offi ce: 083 788 0031

dorus@coolideastruckstop.co.za • admin@coolits.co.za • lana@coolits.co.za • mj@coolits.co.za

PO Box 11741, Aerorand, Middelburg 1070 • Vaalbank Plot 17, Middelburg 1050


OVERVIEW

Construction and property

Infrastructure spending is a big sector driver in Mpumalanga.

The Mpumalanga Provincial Government has committed

to investing more than R4-billion in the short term in infrastructure

in the province. A staged investment by the

national government in support of the construction of

the new University of Mpumalanga will see expenditure of about

R1-billion per year for three years.

Provincial government priorities are roads, schools and health facilities.

In 2015 an amount of R2.3-billion was spent on the construction

and maintenance of rural and urban roads throughout the province.

The University of Mpumalanga has two campuses. Many of the

facilities at the existing teachers’ training college at Siyabuswa are

being upgraded, but new buildings are being added to the campus:

six student residence buildings, a canteen and recreation room, as

well as a student centre. At Mbombela, a student residence is being

constructed to accommodate nearly 250 students, and there will

also be an office block, council chamber and a modern auditorium

and library.

In the public health sector, construction of four new primary

healthcare centres will be completed by 2017 at an estimated cost

of R385-million.

SECTOR INSIGHT

National government is

spending R3-billion on the

province’s new university.

• Many of the province’s

tourist sites are set for

upgrades.

Many tourism sites within

Mpumalanga fall under the

control of the provincial government

and it is in the process

of construction of new facilities

(toilets, restaurants and accommodation)

at Three Rondavels,

Bourke’s Luck and the Blyde

River Canyon. Facilities for small

and medium-sized enterprises

are also to be constructed. The

MPUMALANGA BUSINESS 2017

66


OVERVIEW

government hopes that private

investment will follow the improvement

of basic tourism infrastructure.

Various plans exist for a

skywalk, a cable car and a hotel in

the Bourke’s Luck area, but these

would require a private-public

partnership at least.

The provision of housing provides

work for the construction

sector, and the provincial government

is again a major factor

in this sector.

An amount of R545-million

has been committed to rolling

out housing projects across the

province.

The new focus in providing

communities with varied facilities

(rather than simply “housing”)

also presents opportunities

for contractors. In line with

national government policies,

Mpumalanga’s provincial government

is rolling out a human

settlement policy that aims to

provide sustainable housing

through the strategy known as

Breaking New Ground.

The Klarinet project has seen

1 027 houses built and a provincial

government partnership with

Absa has delivered 80 houses in

the Gap market. These are houses

bigger than RDP houses, but the

people who can afford these

houses can normally not afford

a traditional home loan.

The upgrading of informal

settlements such as Phola,

Hlalanikahle Embalenhle – in addition

to other areas like Leandra

and Kwaguqa – is another priority,

and 15 housing units have been

built for military veterans. More

than 17 000 housing units have

been delivered so far.

Mpumalanga has a Construction Contact Centre (CCC). An initiative

of the CIDB and the national and provincial Departments of Public

Works, the facility helps contractors to register and allows contractors

to keep track of their applications. The Sakh’abakhi Contractor

Development Programme has been successful to a degree, but it has

been difficult to find projects where these contractors can move from

one level to a higher level within the structures of the Construction

Industry Development Board (CIDB). Contractors must have certain

qualifications before they can tender for work of a certain size.

Property

Mbombela (formerly Nelspruit) and White River are attracting new

residents and this is creating a good market for rental properties (Pam

Golding). A factor in promoting interest in residential property in the

eastern half of the province comes from Mozambican nationals looking

for places to rent or buy. With the Maputo Corridor making movement

between South Africa and Mozambique that much easier (and all of the

traffic passing through Mpumalanga), areas such as Komatipoort and

nearby Marloth Park are proving very popular for purchases and rentals.

The area north of Nelspruit, to White River, is a favoured destination

for new developments, especially with a new and more reliable source

of water having been arranged.

New and revitalised coal mines have helped boost property values

in Belfast. The rental market in particular is doing well, with investors

showing great interest in the town.

Further north, the town of Lydenburg has also experienced a rise

in property values, boosted by the revitalisation of platinum mining,

especially in the neighbouring province of Limpopo. Towns such as

Burgersfort and Steelpoort are growing very quickly. Although the price

of platinum has declined, the town of Steelpoort has for some time

been growing on the back of the interest in this mineral.

ONLINE RESOURCES

Construction Industry Development Board (CIBD): www.cidb.org.za

Master Builders South Africa: www.mbsa.org.za

Mpumalanga Department of Human Settlements:

http://dpwrt.mpg.gov.za/index.html

National Department of Public Works: www.publicworks.gov.za

SA Institute of Architects: www.saia.org.za

SA Institute of Valuers: www.saiv.org.za

SA Property Owners Association: www.sapoa.org.za

67 MPUMALANGA BUSINESS 2017


PMS 3

INTERVIEW

HL Hall & Sons

Holdings (Pty) Ltd

This diversified group continues to make a significant

contribution to the Mpumalanga economy.

James Aling

BIOGRAPHY

James is currently the Managing

Director of HL Hall & Sons

Properties (Pty) Ltd, the property

development business of

the Halls Group. He has been

involved with the Halls Group

for 20 years during which time

he has been involved in various

roles and capacities. Prior to

this he worked at the Development

Bank of Southern Africa

and KwaZulu-Natal Finance and

Investment Corporation, now

Ithala, as an agricultural economist

and project manager.

Please tell us more about the company.

Halls has a long history of farming and agriculture in the province. To

ensure its long-term sustainability, the company has evolved over its

125-year history into a diversified group with operating businesses in

fresh produce (Halls), property development (Halls Properties) as well as

pharmaceuticals, technology and financial services (Halls Investments).

What have been the highlights of the past year?

The expansion of our French packing and handling facilities in

both Paris and Marseille, in addition to opening a sales office in the

Netherlands, served to strengthen Halls’ position as a leading producer

and marketer of avocado.

What have been the benefits of doing joint venture property

developments in the Riverside Park precinct?

Halls Properties has been involved in developing the Riverside node

since 1995, when we acquired our first rights. Our joint venture approach

has allowed us to partner with co-developers who have experience as

well as to share the funding requirements, risks and rewards. Our most

recent JV was the Riverside Development Initiative, a BEE initiative that

developed the 35 000m² Grove shopping centre.

How important has the development of specifically Riverside

Mall been to the area?

Riverside Mall was a catalytic anchor that stimulated the development

of Riverside Park together with other big anchors, such as the Provincial

Government complex and Emnotweni Sun’s hotels and casino. The

continued development of the node together with the 2010 stadium

and its associated infrastructure, the new university and high court are

contributors to the growth of the region.

What growth areas are you looking to explore?

We are focused on Mbombela. We are excited about the partnerships

we have established with Government, specifically with the Mbombela

Local Municipality for the establishment of City Improvement Districts

(CIDs) in the Riverside node and the establishment of the Mbombela

Economic Development Partnership.

MPUMALANGA BUSINESS 2017

68


PMS 347C

Digital breakdowns are slightly more

HALLS GREEN

R 0, G154, B68

saturated that print for better onscreen

#009a44

representation

C 95, M 0, Y100, K0

Halls Properties

making tomorrow today

PROFILE

Halls Properties, the property development arm of the HL Hall & Sons

Group, has been a major catalyst for regional economic growth.

Halls Properties creates real estate opportunities for

developers and investors, with the vision of driving

economic growth of the region. To date over

R7-billion has been invested in the Riverside node,

Halls Properties’ flagship development in the region.

Over 35 000 jobs have been created and close to

R50-million per annum is generated in rates and taxes

for the local municipality. Key to Halls Properties’

success has been their ability to create strong partnerships,

first with government on the planning and

servicing of their developments and secondly with a

number of joint venture partners, service providers

and investors.

Halls Properties’ approach is a visionary one. They believe

that land is a valuable, non-renewable resource

that must be managed and sustained for the benefit

of future generations.

More than just a developer

As part of the HL Hall & Sons Group, Halls Properties

has a well-established track record of working with

government and the community to facilitate development.

The Group has made a number of significant

land donations to both government and

the community, including land for the Provincial

Government complex in Riverside, the Botanical

Gardens and a 150ha donation to the Phumulani

Village Association for the settlement of past and

current Halls employees.

HL Hall & Sons believes that business has a responsibility

to contribute to the social and economic

upliftment of all South Africans and has a long history

of supporting communities in the Lowveld.

Their Corporate Social Investment programme is

Newly established Riverside Office Park coming

out of the ground.

managed through the Halls Sake Sive Trust and is

primarily aimed at education, health and enterprise

development initiatives. These include Basisa

Enterprise Development Programme, providing an

opportunity to unemployed youth from the Mataffin

settlement; working closely with Penreach sponsoring

an early childhood development initiative

and funding of the VizierMaths Programme for high

school students.

Committed to the future

An iconic Lowveld family-owned business that last

year celebrated their 125th anniversary, long-term

sustainability is not just their legacy it is the essence

of who they are.

CONTACT INFO

Postal address: PO Mataffin, Mpumalanga 1205

Tel: +27 13 753 5700

Fax: +27 13 753 5733

Email: info@hallsproperties.co.za

Website: www.hallsproperties.co.za

69 MPUMALANGA BUSINESS 2017


OVERVIEW

Tourism

Mpumalanga regularly attracts more than a million tourists.

Geologists believe that the mountains of Makhonjwa hold

clues to the earliest history of earth. Geological tourism is a

new concept that could find rich soil in Mpumalanga. The

Makhonjwa Mountains around Barberton are unique and

important in the history of gold mining. The Makhonjwa Mountainland

area is on South Africa’s UNESCO World Heritage Tentative List and the

tourist offering near Barberton has been branded the Genesis Route.

This is among the many new initiatives that aim to leverage

Mpumalanga’s already well-established and successful tourism sector, in

order to attract new visitors to the province. The National Development

Plan has identified tourism as a sector that can spark rural growth, create

jobs at a good rate and stimulate the creation of new businesses.

SECTOR INSIGHT

Mpumalanga is receiving new

visitors from Africa.

• The Makhonjwa Mountain

Range has been nominated

as a World Heritage Site.

South Africa received 8.9-million

foreign tourists in 2015

and they collectively spent

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OVERVIEW

R68.2-billion. Tourism accounts

for 3% of South Africa’s gross

domestic product and there are

about 655 609 jobs in the sector

(Treasury).

The Provincial Government

of Mpumalanga, which owns

many tourism assets in the

province, intends to use the

procurement chain to support

small and medium enterprises

(SMEs) and co-operatives.

More than a million tourists

visit the province every

year. In 2015 the figure rose to

1.3-million (up from 1.1-million

in the previous two years), with

the increase ascribed to new

African visitors.

No province spends more on

promoting and supporting its

tourism than Mpumalanga, with

the Mpumalanga Tourism and Parks Agency receiving R311-million

for its activities in the latest budget cycle.

Tsogo Sun has six hotels in the province, ranging from two EasyStays

to The Ridge, which is attached to the Graceland Hotel Casino and

Country Club in Secunda. Protea Hotels by Marriott also has six properties

in Mpumalanga, including Protea Hotel Kruger Gate.

Forever Resorts has a big presence in the province, catering to many

caravans and campers and holiday-makers wanting to stay in chalets.

There is also a four-star Forever Resorts Mount Sheba.

Provincial reserves and dams

Mpumalanga has approximately 70 game and nature reserves, most

of which are private and the provincial parks board looks after 13. The

landscape ranges from the forested valleys and streams of the northeast,

the large commercial forests and dramatic cliffs on the edge of

the escarpment, to the bushveld, home to the rare wattled crane and

many other varieties of birds. Verloren Valei Nature Reserve is another

beautiful site that is an internationally recognised wetland. High in

the mountains is one of the last surviving groups of black mountain

leopards living in the wild. The Songimvelo Game Reserve is owned


OVERVIEW

by the provincial government and is part of a transfrontier project with

its Swaziland neighbour. Covering 49 000 hectares, the park is home

to large numbers of animals (white rhinos among them) and at least

1 400 species of flora, including rare cycads.

The south-eastern region of Mpumalanga is for nature-lovers. The

many large lakes in the region attract birds and frogs, and tourists willing

to spend money looking for both. Chrissiesmeer is South Africa’s

biggest freshwater lake.

Further north, and closer to Johannesburg, the Loskop Dam is one

of the biggest lakes in the southern hemisphere. Situated within the

Loskop Dam Nature Reserve, the Loskop Dam is suitable for birding

and visitors can have the unusual experience of game viewing from

a boat. The nearby Loskop Cheetah Sanctuary is popular, while water

sports are well catered for throughout the region, but particularly at

the huge Witbank Dam. Plant enthusiasts will enjoy seeking out the

Lanatus Cycad.

The Loskop Dam is another area that is receiving funding for upgrades.

The Mpumalanga Tourism and Parks Agency has responsibility

for the facility and the improvements have been planned for some

time. The national Department of Environmental Affairs has set aside

R30-million for the project which should reach completion in the course

of 2016.

The provincial investment agency, MEGA, has packaged a number

of tourism investment opportunities that are set out in detail elsewhere

in this publication.

The underlying principle in

each case is a form of public-private

partnership where the agency

would assist in getting land-use

and other legal requirements,

and perhaps in seeing that basic

infrastructure was laid on, then

the developer would build and

manage a tourism facility.

Projects envisaged include a

tourist wheel, a cable car, restaurants

and conference facility in

Mbombela (Mandela Iconic Eye),

the Blyde River Tourism Cluster (a

series of developments including a

cable car, a hotel, a restaurant and

a skywalk) and an International

Convention Centre planned for

the capital city of Mbombela.

Entrepreneurs and awards

Tourism entrepreneurs are looking

at several trends, includ-

MPUMALANGA BUSINESS 2017

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OVERVIEW

ing culture and nature-based

tourism, adventure tourism

and niche tourism. Geological

tourism has already been mentioned.

Mpumalanga can offer all

of these experiences but products

have to be developed, so

there are opportunities for new

businesses.

Other niche markets are

volun-tourism (whereby young

people use holiday time to

serve less privileged people),

base-jumping and rock climbing,

food and wine tourism and

the idea of “nano-breaks” or onenight

holidays.

Mpumalanga is particularly

well placed to take advantage

of intra-Africa tourism. The

Maputo Corridor initiative has

already led to improved relations

with Mozambique and the

potential for cross-border tourism

initiatives with neighbouring

Swaziland are being explored.

The Heritage Project commissioned

by the Mpumalanga provincial

government showed that

the area’s history could present

opportunities for a new tourism

market. History is already used for

marketing Pilgrim Rest and there

is a Jock of the Bushveld route

that celebrates the fictitious adventures

of a loyal hunter’s dog.

But the research that the Wits University History Department provided

for the Heritage Project showed that there is great potential

to grow this sector.

The Tourism Enterprise Partnership (TEP) is a Section 21 company

that supports tourism entrepreneurship. A “Nelspruit Cluster” of starter

tourism companies allows them to network with one another while

TEP assists directly with things such as training and marketing.

An example of an entrepreneur in this field is former gardener and

tour guide, William Hlatshwayo. After spells with Sabi Sabi and with the

provincial park authorities of Mpumalanga and KwaZulu-Natal, he now

runs his own business, Crowned Eagle Tours and Safaris.

Mpumalanga’s tourism sector regularly provides winners in national

award ceremonies. One such is Nomsa Mazibuko of Visit Vakasha

Guest Lodge, winner of the Tsogo Sun Entrepreneur of the Year

2015 Award.

Tsogo Sun Entrepreneurs supports small businesses and the

group of 170 entrepreneurs includes 120 owners of guest houses.

Mazibuko received a cash prize and a bursary to attend the Tsheto

Leadership Academy.

The Lilizela Tourism Awards in 2015 provided a host of Mpumalanga

winners, from the luxury game lodges (Tintswalo Safari Lodge and

Umlani Bush Camp) and operators in the conference sector (Casambo)

to camping and caravan parks (Blyde River Canyon Forever Resorts)

and tour operators such as Simeliza Tours. Tour guide Raymond Khoza

was also an individual winner.

The Kruger National Park

“Kruger” is an iconic destination that hosts more than a million visitors

annually. Its varied terrain of 20 000 square kilometres allows plenty of

room for the original Big Five to roam and hundreds of other kinds of

animals too.

The dry northern part of the park is more remote while the southern

part of the park is the most visited section. Kruger offers 15 different

conference venues, able to accommodate between 20 and 400 del-

73 MPUMALANGA BUSINESS 2017


OVERVIEW

egates in a wide range of rooms,

halls and outdoor venues. Most

of the venues offer accommodation

options, as well as leisure activities

including game viewing,

hiking and various team-building

activities.

The Protea group has hotels

at Kruger Gate, Hazyview and

White River, the last of which, “The

Winkler”, offers motivational and

group bonding activities such as

outdoor paintball exercises.

A new plan to build a major

conference centre – Skukuza

Conference Lodge – aims to attract new markets to Kruger.

Private game lodges

Several private game farms are strung along the edge of the Kruger

National Park and beyond. Some of the more luxurious destinations, such

as the Sabi Sabi Game Reserve, are ranked among the best in the world.

Where private game lodges border on Kruger, fences between the

lodges and the huge game reserve have been taken down, allowing

animals an even greater area in which to roam. This greatly enhances

the chances of guests at the lodges seeing more game.

The two Singita lodges in Kruger are part of the Relais & Chateaux

group and are distinguished by their breathtaking locations. The 15-suite

Singita Lebombo hangs over a sheer cliff overlooking the N’wanetsi

River near the eastern boundary of Kruger. Singita Sweni is even more

exclusive – with only six luxury suites on stilts – and this lodge overlooks

the Sweni River.

Londolozi Private Game Reserve is in the middle of the Sabi Sand

Game Reserve and claims the best leopard viewing in Africa. The reserve

is divided into four camps, none of which has more than 12 accomodation

units. Londolozi comprises 14 000ha within the Sabi Sands

56 000ha area.

Tourism regions

Mpumalanga has seven tourist regions, each with a unique combination

of sights and experiences.

Lowveld Legogote

The provincial capital of Mbombela is the hub of this region. The nearby

Kruger Mpumalanga International

Airport is vital to tourism.

Mbombela is home to the Lowveld

Botanical Garden and has several

hotels. The Sudwala Caves are said

to the oldest dolomite caves in the

world. White River is an excellent

base for trips to the Kruger National

Park and it has a Motor Museum.

Panorama

This region encompasses the

dramatic change in landscape as

South Africa’s escarpment gives

way to the lower country in the

east. The mining town of Pilgrim’s

Rest is a historical monument.

Adventure tourism is on the rise

and the area is known for its waterfalls,

white waters, cliffs and muddy

paths. There are many opportunities

for bungee jumpers, rafters,

hot-air balloonists and off-road

car enthusiasts to take advantage

of the terrain. The annual Sasol motor

rally earns a lot of money for the

local economy.

Cultural Heartland

Covering the north-west sector of

the province, the Cultural Heartland

is close to the metropolitan areas of

MPUMALANGA BUSINESS 2017

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OVERVIEW

Johannesburg and Pretoria. Close

enough even for day trips but

there are plenty of accommodation

options, ranging from lakeside

cottages and game lodges to city

accommodation in eMalahleni or

Middelburg. The Ndebele Cultural

Village at Botshabelo is a highlight

for many tourists. The Loskop Dam

Nature Reserve offers outdoor enthusiasts

many choices.

Cosmos Country

The south-western part of

Mpumalanga is home to the biggest

underground coal mining

complex in the world. Together

with the Sasol fuel-from-coal

plant, these facilities attract visitors

interested in mining and industry.

The region also has a reputation for

beautiful pink flowers in late summer,

hence its name. Secunda has

a casino and a golf course designed

by Gary Player.

Grass and Wetlands

The south-eastern region of

Mpumalanga is for nature-lovers.

The many large lakes in the region

attract tourists. Chrissiesmeer is

also the site of two rather unusual

annual events: a frog-watching festival

and an Anglo-Boer War battle

re-enactment. The eastern parts of

the region abutting Swaziland are

mountainous and the area is heavily

forested in the south. The region’s

main town, Ermelo, holds more

than one agricultural fair during the

year and the thriving merino-sheep

sector attracts buyers and admirers

from afar. The Lubombo Tourism

Route is a regional project which

covers Mpumalanga, Swaziland,

Mozambique and KwaZulu-Natal.

Wild Frontier

The Wild Frontier is one of the most important regions to the tourist

economy of Mpumalanga, bordering as it does Swaziland and

Mozambique and guarding the Malelane and Crocodile Bridge gates

to the Kruger National Park. The Songimvelo Game Reserve is owned

by the provincial government and is part of a transfrontier project with

its Swaziland neighbour. Barberton is the centre of a range of mountains

that are fascinating for geologists. Hiking and 4x4 trails are popular activities.

The Leopard Creek golf course in Malelane attracts top golfers

to the annual Alfred Dunhill championship. Badplaas has excellent spa

and hot-water spring facilities.

Highlands Meander

Mpumalanga’s north-eastern region contains stunning landscapes,

fascinating history and heritage, opportunties for adventure tourism

and wonderful trout fishing. Dullstroom is a trout-fishing paradise, and

it is the northern tip of a Trout Triangle defined by eMakhazeni (Belfast)

and Emgwenya (Waterval-Boven). Lodges, fly-fishing festivals and trout

hatcheries are important parts of the area’s economy. The dramatic Long

Tom Pass includes The Robbers’ Pass and leads to Lydenburg, where

replicas of the 800-year-old Lydenburg heads can be seen. More than

half of the tourists who visit Mpumalanga visit the spectacular Blyde

River Canyon. An investigation is being conducted into the creation of

a cable car over a section of the canyon. Gold rush town Pilgrim’s Rest is

the subject of a R25-million project to upgrade and improve the town’s

tourism offering. The original wood and corrugated buildings give an

authentic picture of how the original town looked. There are four museums

and good accommodation options for the traveller.

Although the province already caters for motor-rally enthusiasts,

cyclists, runners, walkers, fishers, horse-riders, tree-gliders, abseilers,

white-water rafters and rock climbers, there is still tremendous

potential for more investment in the ecotourism and adventure

tourism subsectors.

ONLINE RESOURCES

Kruger Mpumalanga International Airport: www.kmiairport.co.za

Lilizela Tourism Awards: www.lilizela.co.za

Mpumalanga Gaming Board: www.mgb.org.za

Mpumalanga Tourism & Parks Agency: www.mtpa.co.za

South African National Parks: www.sanparks.co.za

South African Tourism: www.southafrica.net

South African Tourism Enterprise Partnership: www.tep.co.za

South African Tourism Services Association: www.satsa.com

75 MPUMALANGA BUSINESS 2017


OVERVIEW

Banking and financial services

The Post Office bank will soon be offering loans.

SECTOR INSIGHT

The stokvel market is worth

R44-billion.

• Nedbank hosts a series of

small business seminars.

In a province with a high proportion of rural citizens such as

Mpumalanga, the prospect of Postbank being upgraded to a fullservice

bank is positive news. In 2016, the bank (part of the South

African Post Office, SAPO) received a first-level licence. Once a board

has been appointed and a company formed, the Reserve Bank is likely

to grant the full licence.

The current Postbank focuses on taking deposits and savings

accounts. Postbank has secured a R3.7-billion loan to enable it to

open its own loan book. The large geographical footprint of the

Post Office will make the bank easily accessible to even remote parts

of the country. National government wants the bank to serve a

developmental agenda.

Finscope’s 2014 survey of South African banking and financial surveys

shows that between 2004 and 2014, a remarkable eight-million

people were connected to the financial system in some way. Overall,

the “financially included” reached 31.4-million (up from 17.7-million in

2004). In a category called “formally served”, which includes services

other than formal banks with branch networks, the percentage of

South Africans so served grew from 50% to 80%; in the “banked” category

(more traditional but including new devices), the percentage

grew from 46% to 75%.

Although cellphone banking has not been a great successs in South

Africa (partly because the formal infrastructure is so good), banks and

cellphone companies continue to cooperate. Vodacom and Bidvest

are working on the mobile money M-Pesa scheme, Standard Bank

and MTN collaborate on mobile banking and there have been recent

moves linking Old Mutual and

Telkom, and Sanlam and African

Bank. Sifiso Skenjana has noted

in the Sunday Times that African

Bank has 400 branches and 150

000 people per month going

through these branches, so this

represents a huge potential market

for a financial services company.

Telkom is hoping that the

link-up with Old Mutual will prove

attractive to customers wanting

funeral insurance.

Skenjana also points out that

South Africa has a “stokvel” (savings

club) market valued at R44-

billion: Sanlam is developing

products to tap into that market.

Among other recent innovations

designed to reach the unbanked

were Teba Bank allowing

customers to deposit at supermarkets,

Pick n Pay Go Banking (a

division of Nedbank), the fact that

70% of Absa’s new ATMs (400 in

one year) were placed in poorer

areas and that Absa launched

two mobile banks, FNB also created

mobile branches and most

of Standard Bank’s new sites

were planned for townships.

(Finscope).

MPUMALANGA BUSINESS 2017

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OVERVIEW

Absa’s partnership with

Thumbzup allows shops to accept

card payments with smartphones

and tablets. Effectively, phones

become terminals.

Absa’s Entry Level and Inclusive

Banking (Elib) branches have

proved popular, accounting for an

increasingly high percentage of the

bank’s loans, despite still representing

quite a small number of actual

branches.

Nedbank has deployed stateof-the-art-

technology in its new

branches in an initiative called

“Branch of the Future”.

FNB has a wide range of cellphone-banking

options and a

Facebook application whereby

cellphone vouchers can be posted

on the social-networking site. The

eWallet application converts the

voucher into cash or airtime.

Standard Bank’s communitybanking

initiative offers a lowcost

cellphone-banking service.

Retailers can act as agents for

the bank, even in remote rural

areas. Shops such as Shoprite, Pep

and Spar are connected, as are

certain spazas.

Sectors

With agriculture being such an important

part of the Mpumalanga

economy, each of the Big Four

banks has specialists in the

province and dedicated units.

Another source of funding for

farmers is the Land and Agricultural

Development Bank of South Africa

(Land Bank), a developmentfinance

institution that falls under

the Ministry of Finance. Standard

Bank has a black economic

empowerment agricultural fund designed to support emerging farmers.

The R500-million fund is designed to connect farmers who have

received farms in land reform projects to agri-businesses that will buy

their produce.

The Masisizane Fund (Nedbank) makes loan financing available in

sectors such as agriculture and agri-processing), commercial, supply

chain and manufacturing. It also offers training and technical support

and funding to help businesses to comply with legislation.

The Vumela Enterprise Development Fund of First National Bank is

available to small businesses. FirstRand has put R186-million into the

fund and to date it has invested R50-million in small businesses that have

shown potential for growth.

Financial literacy is an important part of the requirements for running

a business, an issue that a joint project of Absa and the Mpumalanga

Enterprise Development Organisation (MEDO) is addressing.

Another area where banks are growing new markets is in affordable

housing. Absa Property Development (Absa DevCo) has entered a

partnership with municipal, provincial and national government to help

provide mixed housing in the R1.6-billion Klarinet Ridge project in the

eMalahleni Municipality.

The lead agency is the National Department of Human Settlements.

Housing options range from subsidised housing, rental and sectional-title

flats and bonded homes. The intention is that a sustainable community

with relevant amenities be created, rather than a sterile development

comprising only “matchbox” houses.

Absa DevCo is backed by private investments and is a joint landowner

and the project’s developer.

The four major national retail banks (Absa, Standard Bank, First National

Bank and Nedbank) are well represented in Mpumalanga, with branches

in all major towns and cities and extensive ATM networks reaching far into

the rural areas. Relative newcomer Capitec Bank is rapidly closing in on the

Big Four, as its growth from 43 branches in 2011 to 62 in 2016 shows.

ONLINE RESOURCES

Auditor-General of South Africa: www.agsa.co.za

Banking Association South Africa: www.banking.org.za

Financial Services Board: www.fsb.co.za

Institute of Bankers in South Africa: www.iob.co.za

Insurance Institute of South Africa: www.iisa.co.za

The Land and Agricultural Development Bank of South Africa:

www.landbank.co.za

Office of the Ombudsman for Banking Services: www.obssa.co.za

Post Bank: www.postbank.co.za

Public Investment Corporation: www.pic.gov.za

South African Reserve Bank: www.resbank.co.za

77 MPUMALANGA BUSINESS 2017


FOCUS

Customers in Mpumalanga

benefit from bank’s

client-centricity

Standard Bank offers individuals (personal and private banking), businesses and public

sector clients in Mpumalanga a wide range of customised services.

Our province

A range of primary, secondary and tertiary activities

drive the provincial economy of Mpumalanga.

Extensive mining is undertaken in the Highveld

region, which is also home to a large synthetic

fuel plant owned by Sasol. Elevon of Eskom’s coalfired

power stations are located in Mpumalanga .

Government services, agriculture and tourismrelated

activities dominate the Lowveld region.

As Standard Bank we understand that this

Timothy Whati

Provincial Head

variety in terms of economic activity contributes to the need for a variety

of banking services and we reject a “one size fits all” approach to banking.

Our approach

“Africa is our home, we drive her growth. Our purpose lies at the heart of

our strategy. This is the reason we exist. It is the cornerstone upon which

we define and plan our future.”

Our strategy for the province is underpinned by a number of principles:

• The promises we make to our clients: This principle brings to life

our commitment to client-centricity. Every person, process, decision,

response and action by the bank or its staff is designed and intended

to deliver an exceptional client experience.

• The culture we wish to build for our people: Our people on the ground

are empowered to put the client first. If we think of everything we do,

our greatest asset is our people. Our people should be motivated to

deliver exceptional services and solutions, which in turn will help us

grow Africa.

• The way we execute: Our strategy is as much about what we are doing

as what we are not doing. All our businesses must have a strategy and

be disciplined about the “what” and the “how”. We should only do

things that deliver on our strategy.

Our infrastructure

Standard Bank is very active in the Mpumalanga Province and our physical

branches, Business Banking and Private Banking Suites and ATMs ensure

we have an extensive footprint that

allows us to live out our commitment

to client-centricity.

Highveld region:

• 24 Branches in the Highveld

region and an extended-hours

outlet at Highveld Mall – the

biggest mall in Mpumalanga

• 184 ATMs available in Witbank

region

Lowveld region:

• 26 Branches in the Nelspruit

region and an extended hours

branch in the Riverside Mall

• 170 ATMs located in the

Lowveld region

Our branches offer advanced

ATMs that allow you to make a

deposit anytime and the money

will reflect into the account immediately

(please note that the

deposit needs to be made before

7pm to reflect immediately into

the account).

Some branches have a forex

offering including money gram.

A number of branches in the

province have been refurbished

with a new generation design.

These Generation 8 branches are

designed to offer a warmer, more

personal customer experience.

Aside from the physical infrastructure,

Standard Bank has spe-

MPUMALANGA BUSINESS 2017 78


cialists available to address the

differing needs of our customers,

be they individuals or companies

requiring business advice. More

information on these specialist

teams is contained below.

Personal Banking

Whether you want to transact, save

or borrow, Standard Bank Personal

Banking has the financial solution

for you, including innovative

products and services designed to

evolve with the changing needs of

our clients.

The transactional banking

solutions come with a range of

features and benefits designed to

add real value to your life.

Products available include transactional

accounts, savings, investment

and lending as well mortgage

loans. Credit cards and vehicle financing

are also available, while

short- and long-term insurance

offerings include home-owner’s

insurance, funeral cover, household

contents and even loan protection.

Life cover, disability insurance and

investment policies are provided by

qualified intermediaries.

Standard Bank Personal Banking

also offers financial planning and

fiduciary advice and is able to provide

personalised and qualified

assistance with personal matters

such as will drafting, trust and

estate administration.

Banking small and medium enterprises

We are keen to be the bank that collaborates with clients in making their

entrepreneurial dreams come true – whether it’s a start-up business,

a growing business or an SMME in the process of expanding to other

provinces or countries.

Our Small and Medium Enterprises division has two segments. The first

segment managed by business bankers caters for businesses in the startup

phase and businesses with an annual turnover of up to R5-million. The

second segment managed by business managers caters for businesses

with an annual turnover ranging between R5-million and R20-million.

Our business bankers’ and business managers’ mission is to make

sure that you get the best banking services for your business. They are

supported by specialist bankers who are equipped to answer any questions

you have and will also be able to assist in setting up accounts and

arranging finance for all your small business needs.

Marketing: Derick Mthabine | Tel: +27 13 757 5622

Email: Derick.Mthabine@standardbank.co.za

FOCUS

Giving back

In addition to our range of banking services, Standard Bank Mpumalanga

also strives to contribute more generally to the community in which we

operate and we have committed R6-million for various CSI projects in

the province.

Beneficiaries of these projects include the 100 early childhood development

educators who have completed their training programme and are

now eligible for employment by the Department of Education.

Different day-care centres and crèches in the province have been

renovated with funds supplied by Standard Bank. House-building

projects have also been undertaken.

Since 2013, Standard Bank has been the headline sponsor of Innibos

Lowveld National Festival, the most well-attended Afrikaans music festival

in South Africa with approximately 140 000 visitors to the festival over

four days.

Standard Bank staff and their families also enjoy sponsored

Family Days.

Lowveld region: Bongani

Thabethe | Tel: +27 13 757 5595

Email: Bongani.Thabethe@

standardbank.co.za

Highveld region: Suhail Row

Tel: +27 13 653 0324

Email: Suhail.Row@

standardbank.co.za

79

MPUMALANGA BUSINESS 2017


FOCUS

More to good advice than

being sold a funeral policy

In Standard Bank Financial Consultancy Mpumalanga there are 26 well-educated

financial planners who are dedicated to do holistic financial planning for customers.

“Financial advice is an experience, not an event. In the past, brokers made

it an event by being fly-by-night salesmen who sold you a financial

product and never returned to service you,” Gerald Mwandiambira, the

acting chief executive office of the South African Savings Institute (Sasi)

said during a recent Liberty media event.

Mwandiambira, who holds the Certified Financial Planner accreditation,

says a funeral policy is the only financial product many black

people have. As a result, they have experienced bad advice because,

while the policy provided cover for a funeral, it fails to meet their broader

financial needs.

Many people do not know how life policies work; they can provide

disability cover, income protection, income replacement during a severe

illness or even a lump-sum payment on death to cover a child’s

entire education.

“The funeral policy experience, with shortfalls in cover, insufficient

cash to meet needs and no follow-ups after the initial sale, often reinforces

their perception that financial advisers are not worth the effort,”

Mwandiambira explained.

The Financial Services Board’s review of the way in which we pay

for advice and the ways in which products are distributed, the Retail

Distribution Review (RDR), will provide greater transparency about costs

and enable individuals to choose advisers who sell financial advice, not

financial products. Products are solutions that should enable people

to implement the advice they have been given.

According to Mwandiambira, Sasi will embrace RDR, as it will ultimately

expose more people to the power of life assurance products

and real advice, which can enable people to create wealth across

generations.

He said he hopes that this will lead to products suited to the growing

black middle class, who typically face issues like single parenting,

providing for members of the extended family, and inadequate

retirement planning.

The team at Standard Bank concurs with Mwandiambira’s sentiments.

In Standard Bank Financial Consultancy (SBFC) Mpumalanga

we have 26 well-educated financial planners who are dedicated to do

holistic financial planning for our customers. This means the following:

• Trust: Our clients need to

feel safe doing business with

SBFC and to be assured in their

decision-making.

• Strong relationships: SBFC

focuses on building relationships

that bring long-term, sustainable

benefits to our clients.

• Family: We promote a balanced

lifestyle and recognise

the paramount importance of

family life for both colleagues

and clients.

• Detail: SBFC applies the proper

care and skill that would be

expected from a professional

financial advisor.

• Growth: SBFC continuously

improves in knowledge, skill,

efficiency and communication,

and adapts to changing

environments in the financial

industry.

• Smart partnerships: SBFC

works together with other

professional service providers

and our own expert partners

and other in-house expertise

to give our clients the best

possible advice.

We provide feedback to you

based on well-sourced comprehensive

market information.

Through diligent financial coaching

our aim is to secure your

personal financial prosperity.

MPUMALANGA BUSINESS 2017 80


FOCUS

For more information contact Frans Stapelberg, Regional Sales Manager Mpumalanga SBFC, or

one of the other financial consultants at Standard Bank Mpumalanga.

CONSULTANT’S DETAILS

SURNAME

FIRST

NAME

BRANCH

NAME

OFFICE

NUMBER

HIGHVELD REGION

OFFICE DETAILS

EMAIL ADDRESS

Frans Stapelberg Witbank 013 653 0212 frans.stapelberg@standardbank.co.za

Nico Botha Witbank 013 653 0305 nico.botha2@standardbank.co.za

Louis Gravett Standerton 017 712 0458 louis.gravett@standradbank.co.za

Eddie Hadland Middelburg 013 249 7451 william.hadland@standardbank.co.za

Rose Makhura Emalahleni 013 656 8300 rose.makhura@standardbank.co.za

Anthony Mashabela Siyabuswa 013 973 9618 thipe.mashabela@standardbank.co

Elsie Maluleka Kwamhlanga 013 947 9928 elsie.maluleka@standardbank.co.za

Zodwa Mokhare Secunda 017 620 7532 zodwa.mokhare@standardbank.co.za

Kamela Mosoa Witbank 013 653 0306 service.mosoa@standardbank.co.za

Mervin Peerbhaai Middelburg 013 249 7423 mervin.peerbhaai@standardbank.co.za

Frans Prinsloo Witbank 013 653 0252 frans.prinsloo@standardbank.co.za

Chanline Stander Nigel 011 730 8321 chanline.stander@standardbank.co.za

LOWVELD REGION

Calvin Campher Ermelo 017 801 1014 calvin.campher@standardbank.co.za

Chris Gilday Nelspruit 013 757 5681 chris.gilday@standardbank.co.za

Debonair Mabaso Bushbuckridge 013 795 4562 debonair.mabaso@standardbank.co.za

Precious Makhanya Elukwatini 017 883 7100 precious.makhanya@standardbank.co.za

Refilwe Mekoa Piet Retief 017 826 9661 refilwe.mekoa@standardbank.co.za

Isaac Mkhonto

Crossings

Nelspruit

013 752 4185 isaac.mkhonto@standardbank.co.za

Thamsanqa Motha Nelspruit 013 757 5693 thami.motha@standardbank.co.za

Sibusiso Mungwe

Riverside Mall

Nelspruit

013 757 9873 sibusiso.mungwe@standardbank.co.za

Ralph Nkonde Malelane 013 791 1534 ralph.nkonde@standardbank.co.za

Thulani Phakthi Ermelo 017 801 1027 thulani.phakathi@standardbank.co.za

Phillip Theledi White River 013 750 9520 phillip.theledi@standardbank.co.za

Jacques

van der

Schyff

Nelspruit 013 757 5686 jacques.vanderschyff@standardbank.co.za

Cedusizi Mlambo Bushbuckridge 013 799 5150 cedusizi.mlambo@standardbank.co.za

81

MPUMALANGA BUSINESS 2017


FOCUS

Business Banking – adding

value to every business

Standard Bank has a range of products to suit businesses in every way.

• Commercial insurance

• Financial planning and

fiduciary advice

Standard Bank has three Business

Banking suites in Mpumalanga.

CONTACT INFO

Business Banking

Standard Bank understands what it means to do business in Africa and

beyond. To provide this reliable service we have developed specialist

product expertise in addition to strong local capacity and global

distribution reach.

We offer a key sector focus in:

• Agriculture

• Public Sector

• Manufacturing

• Transport

• Construction and

• Wholesale and Retail Trade

Business Banking solutions are designed to add real value to

every business.

These solutions include:

• Transactional accounts and lending facilities

• Structured working capital finance

• Commercial property finance

• Merchant and cash transaction solutions

• Vehicle and asset finance

MPUMALANGA BUSINESS

BANKING SUITES

Secunda Business Centre:

Name: Cobus Storey

Tel: +27 17 620 7502

Email: Jacobus.Storey@

standardbank.co.za

Witbank Business Centre

Name: Timothy Matlala

Tel: +27 13 653 0254

Email: Timothy.Matlala@

standardbank.co.za

Nelspruit Business Centre:

Name: Sydney Hlatshwayo

Tel: +27 13 757 5749

Email: Sydney.Hlatshwayo@

standardbank.co.za

Website:

www.standardbank.com

MPUMALANGA BUSINESS 2017 82


Confidential banking

for wealth clients

FOCUS

Standard Bank Private Banking offers discreet and proactive personalised

solutions for the varying financial needs of successful and highly

accomplished executives and self-employed individuals.

Standard Bank Private

Banking is a discreet

personal banking and

wealth management

service that recognises your

unique financial needs. This exceptional

offering integrates quality

banking, lending and wealth

advisory services seamlessly and unobtrusively with your lifestyle.

The comprehensive offering encompasses a full suite of products

and services, access to your funds at your convenience, a credit portfolio

designed to meet your needs and a balanced wealth creation

and preservation portfolio.

Private Banking team

A dedicated private banker assisted by a transactional banker acts as

your confidential interface with our wealth management advisers, both

offshore and in South Africa, to provide you with direct access to our

products. Backed by an experienced and highly qualified team, your

private banker is your link to our vast resources. We therefore offer you

one point of contact for all of your financial banking needs.

Service offering

Our offering integrates quality banking, lending and wealth advisory

services seamlessly and unobtrusively with your lifestyle in the following

ways:

• Your dedicated private and transactional banker, as your single point

of contact, reduces the complexity of your financial requirements

• We are always on with 24/7 service from our virtual bankers on

instant messaging, our Private Banking line and email unit

• We offer award-winning online share trading at reduced

brokerage fees on trades

• Offshore banking is available to wealth clients

CONTACT INFO

Name: Zanaria Khan

Tel: +27 13 757 5661

Email: Zanaria.Khan@

standardbank.co.za

Website:

www.standardbank.com

83

MPUMALANGA BUSINESS 2017


FOCUS

Customers benefit from new

banking system

Standard Bank has introduced a new core banking system

to better serve its loyal customers.

Standard Bank has existed for over 154 years. This shows both

customer loyalty and that the brand is considered trustworthy.

Everything we do in Standard Bank is to build on this

legacy, whether it is the service we provide through our digital

channels or the day-to-day service delivery of our branch network.

Over the past year we understand that our customers could have

been impacted or inconvenienced with either system issues or the

introduction of new legislation.

To resolve these issues the bank needed to introduce a new core

banking system. We are glad to report that this project is 99% complete.

We sincerely thank every customer for their patience and apologise

for any inconvenience these changes may have caused. Standard Bank

continues to put the customer at the centre of everything we do.

This year Standard Bank has introduced the following innovative

products into the market:

• Kidz Banking – an App that teaches children the basics of sound

financial discipline and includes games, tasks and animation

• New value-added services on the Standard Bank App, including

a change to the “look and feel” of buying pre-paid airtime, SMS,

data and electricity

At the same time we continue to upgrade and ensure that our

branch experience remains at the highest levels of service. The new

Generation 7 branch design and layout was introduced at Riverside

Mall, Emalahleni Mall and

Middelburg Branch.

Standard Bank values our

customers’ time and recently

launched the 24/7 Banking –

Anywhere, Anytime service. The

Standard Bank Everywhere You

Are service is available to Prestige

and Private Banking clients. We’re

always on, because you’re always

on. We’re mobile and social because

that’s what you expect from

us. So if you want to bank via email

we’re there. WeChat? Facebook?

We’re there too.

No matter what the platform,

no matter what the time of day, it’s

all about banking on your terms.

From time to time we do make

mistakes and we therefore appeal

to you the customer, please don’t

wait for answers but rather escalate

to management levels as

soon as a matter is not resolved

timeously or to your liking. We

assure you of our best service at

all times.

CONTACT INFO

Name: Ian Nunes

Tel: +27 13 757 5611

Email: Ian.Nunes@

standardbank.co.za

Website:

www.standardbank.com

MPUMALANGA BUSINESS 2017 84


People are the

key differentiator

FOCUS

At Standard Bank we take pride in our people. We see our people as

the key differentiator and our secret to creating our competitive advantage in the industry.

Our human capital strategy is focused on driving certain human

capital priorities to deliver value to our shareholders,

clients, employees and society. All our efforts must lead to

contributing to the experience of our people in making

them feel a sense of belonging, better empowering them to serve

our clients, and ensuring that they have ample opportunities to fulfil

their personal potential.

Similarly, as trusted advisors to the business, the Human Capital

team partners with our business leaders to help them drive engagement

and inclusivity, apply people practices that underpin client

centricity and more.

In Standard Bank we have applied an integrated people strategy

in order to establish organisational capability requirements. Elements

of this strategy include:

• Creating intrapreneurs (“inside organisational entrepreneurs”)

within the business

• Building and developing people’s skills to align to business objectives

• Recruiting and buying of talent within the market

• Creating a culture of high performance through structured

performance management process

• Recognising individual and

team contributions in order

for our people to continuously

strive towards delivering above

and beyond of what is expected

of them

• Finally, to develop and invest in

our talented workforce in order to

provide the best talent with the

rights skills deployed in the right

place at the right time to deliver

business results now and into the

future and ultimately to provide

our people with endless opportunities

in order to excel and to

achieve personal aspirations

Our people are driven to fulfil

the aspirations of our customers

by understanding what matters

most to our customers and delivering

when moments matter the

most (Moment of truth).

CONTACT INFO

Steven Dickinson, Provincial

Human Capital Consultant -

Mpumalanga

Tel: +27 13 757 5644

Cell: +27 74 353 6341

Email: steven.dickinson@

standardbank.co.za

Website:

www.standardbank.com

85

MPUMALANGA BUSINESS 2017


OVERVIEW

Development finance and

SMME support

Public-private partnerships are supporting entrepreneurship in Mpumalanga.

In the context of what the Premier of Mpumalanga, David Mabuza, has

referred to as “mass retrenchments” in the steel industry, it becomes

even more important that small, medium and micro enterprises

(SMMEs) should prosper.

In his State of the Province address, the Premier called SMMEs “a

significant lever for increasing employment”. The province’s growth

agency, MEGA, will loan a total of R500-million to small businesses

over a five-year period with the 2016/17 budget set at R80-million. In

addition, small business parks are to be built or renovated at Mayflower,

Siyabuswa, Elukwatini and Kabokweni.

Various partnerships with private companies are also in place:

• The power plant being built at Kusile has benefited local communities,

in particular companies owned by women and young people

• A total of 82 businesses from Mpumalanga have graduated from

Eskom’s Contractor Academy

• Eskom will invest a further R30-million to support co-operatives

• South African Breweries’ national KickStart Programme now has a

regional component: 50 entrepreneurs from three Mpumalanga

districts between the ages of 18 and 35 will be given intensive

training (“boot camps”), support and capital to help them start and

sustain their businesses. Participants in the Mpumalanga Youth

SECTOR INSIGHT

The Mpumalanga Youth

Entrepreneurship Programme

will provide training, mentoring

and start-up investments.

• Tomato growers have a

direct line to Woolworths’

shelves.

Entrepreneurship Programme

can qualify for the KickStart

Programme.

• Sasol and Eskom are working

with the provincial government

on a fly-ash beneficiation

scheme that will give business

opportunities to SMEs.

Private companies are also

trying to support SMEs through

MPUMALANGA BUSINESS 2017 86


OVERVIEW

their buying chain. Woolworths

is funding TechnoServe to ensure

that small tomato growers

can grow produce that will meet

the demanding standards of the

retailer, and to help them expand

production. A regular supplier to

Woolworths, Qutom, assists with

the project.

Using the supply chain to

benefit small business is at the

heart of Zimele, which runs four

enterprise development and

investment funds. The initiative

experienced a growth spurt

when a system of hubs was established,

with managers assigned to

each hub.

The Thermal Coal Hub has

several Mpumalanga centres

and the Platinum Hub has two

centres located in the province.

The Mondi Zimele Hub in Piet

Retief considers businesses in the

supply chain and forestry. Zimele

is supporting a bottled-water

business that employs seven

people at the eMalahleni waterreclamation

plant.

National government has created

a consolidated agency to

spur the development of SMMEs,

the Small Enterprise Finance

Agency (Sefa).

Sefa falls under the

Department of Small Business

Development (DSBD) one of the

biggest and most significant

agencies in economic development

in the country.

Seda (the Small Enterprise

Development Agency, which is

an agency of the DSBD) is actively

supporting co-operatives. Seda

assists new businesses in drawing

up business plans and gaining

access to finance, helps train

entrepreneurs in running a business and helps companies gain access

to markets.

There are five branch offices of Seda in Mpumalanga and a further

four sites that form part of the Seda Technology Programme (STP):

Mpumalanga AgriSkills Development and Training, Nelspruit

• Sugar Cane Incubator, Malelane

Mpumalanga Stainless Initiative, Middelburg

• Timbali, Nelspruit. This initiative coordinates the growing programmes

of a number of small farmers and helps to get products to market.

One of the most experienced risk financers in the country is

Business Partners, which started life as the Small Business Development

Corporation. Apart from financial services, Business Partners offers

premises for businesses and mentoring.

Mpumalanga entrepreneur Nomsa Mazibuko’s first loans came from

the Small Business Development Corporation when she transformed

her hair salon into a hairdressing college. More recently she wanted

to upgrade her tourism accommodation (Visit Vakasha) to five guest

houses, a conference facility and a catering service with a large staff

complement. Business Partners came on board as financier.

Recent studies have shown that South Africa’s townships represent

a market and an economy that is more substantial than was believed.

The CEO of Minanawe Marketing, GG Alcock, told the FMCG Insights

conference in May 2016 that what he called the “invisible market” was

worth R10-billion. Alcock was quoted in the Sunday Times as saying

that a particular fast-food operator made R50 000 per day from three

outlets in a Johannesburg township.

A survey by the Sustainable Livings Foundation showed that the

number of informal businesses in a township grew from 879 in 2010 to

1 798 in 2015. The types of businesses ranged from tailors and spazas to

meat, fish and poultry sales. Three people were employed on average

by the small businesses.

The Mpumalanga Provincial Government intends for its citizens

to gain access to that market by encouraging entrepreneurship and

co-operatives.

ONLINE RESOURCES

Business Partners: www.businesspartners.co.za

Development Bank of Southern Africa: www.dbsa.org

Industrial Development Corporation: www.idc.co.za

Mpumalanga Economic Growth Agency: www.mega.gov.za

Middelburg Chamber of Commerce & Industry:

www.middelburg info.com

National Department of Trade and Industry: www.thedti.gov.za

Small Enterprise Development Agency: www.seda.org.za

Small Enterprise Finance Agency: www.sefa.org.za

87 MPUMALANGA BUSINESS 2017


OVERVIEW

Education and training

Teaching is under way at the new University of Mpumalanga.

The Deputy President of South Africa, Cyril Ramaphosa, was inaugurated

in 2016 as the first Chancellor of the University of

Mpumalanga.

Existing facilities of the former College of Agriculture in

Mbombela have been re-purposed to suit the needs of the main campus

of the university, whose Principal and Vice-Chancellor is Professor

Thoko Mayekiso.

A further two satellite campuses have been created at Siyabuswa

(the former Ndebele College of Education) and at KaNyamazane, where

hospitality will be the focus.

In keeping with the history of the main site, a degree will be offered

in Bachelor of Agriculture in Agricultural Extension and Rural

Resource Development. The other two courses to be offered in

the first phase of the university’s development were a Diploma in

Hospitality Management and a Bachelor of Education in Foundation

Phase Teaching. More qualifications will be rolled out in phases: in 2015

ICT and App Development were offered, together with an agricultural

diploma in plant development.

National parliament has been told that in time mechanical and then

civil engineering will be offered. The Department of Higher Education

is in consultation with Sasol to provide chemical and electrical engineering

studies. The Department of Higher Education expects a total

1 500 students to enrol at the university in 2017.

Construction News reports that amounts of R1.3-billion (2015/16), R1-

billion (2016/17) and R1.1-billion (2017/18) have been allocated to fund

the third phase of new buildings and infrastructure at the university.

Priorities

The priorities of the Mpumalanga Department of Education are to

expand early childhood development programmes, to promote skills

development, especially through further education and training (TVET)

colleges, and to continue to invest in school infrastructure.

Expressions of interest have been called for from the private sector

concerning a plan to build 500 new schools in the province over a

six-year period. Investors are sought for financing, design, construction,

equipping, and maintenance and property management. The

provincial government is proposing a 10-year lease period in which

time investors would be paid back.

SECTOR INSIGHT

Mpumalanga has called for

investors for a plan to build

500 schools.

• Dial-a-tutor and radio

lessons are helping matric

pupils.

Many of the biggest investors

in the province support

education initiatives. These include

Sappi’s donation of several

classrooms to Khanyisile Primary

School near Barberton and programmes

for pupils and teachers

at Entabamhlophe Combined

School in Elandshoek near the

company’s mill at Ngodwana.

More than 800 000 pupils in

primary and secondary schools

are beneficiaries of the provincial

department of education’s school

nutrition programme and 1 604

MPUMALANGA BUSINESS 2017

88


OVERVIEW

schools in the province are in the

“no fee school” category.

A number of small farm

schools are being closed as part

of a province-wide plan to introduce

boarding facilities for rural

children.

Steps have been taken to

help school pupils achieve better

matriculation marks. A Dial-

A-Tutor programme allows for

pupils to get in touch with subject

specialists, at no charge to

the pupil. Several radio stations

(Ligwalagwala and Ikwekwezi FM

and 13 community stations) have

agreed to host interactive lessons

live on air, which will give access

to good-quality teaching for all

students in the province.

Mpumalanga has 332 Adult

Basic Education and Training

(Abet) centres catering to approximately

25 000 adult students.

Technical and Vocational

What for several years were

known as Further Education and

Training (FET) Colleges have now

been re-branded as Technical and

Vocational Education and Training

(TVET) Colleges.

UNISA, the Tshwane University

of Technology and the Vaal

University of Technology currently

have satellite campuses in the

province and there are a number

of provincial TVET colleges.

Over 36 000 students are

enrolled at the province’s three

TVET colleges: Gert Sibande (four

campuses and a skills academy),

Nkangala and Ehlanzeni, which

has six campuses, a skills centre

and a satellite campus.

Ehlanzeni TVET College offers 10 National Certificate (Vocational)

programmes including ICT, Finance, Economics and Accounting,

Engineering and Related Design and Tourism. There are also a number

of shorter skills courses on offer: automotive repairs and maintenance,

computer practice, entrepreneurship, municipal administration and

communications management.

Nkangala TVET College offers Civil Engineering and Building

Construction at its CN Mahlangu campus and Electrical Infrastructure

Construction at three of its five campuses, among its seven NCV

academic programmes.

The Mpumalanga Regional Training Trust (MRTT) is a Section 21 company

very active in skills training. It has several sites in the province, including

a Hospitality and Tourism Academy at Karino just outside Nelspruit.

The MRTT’s construction-training facility is accredited as a

Construction Centre of Excellence and offers courses in brick-laying,

plumbing, carpentry and other construction-related skills.

The Fluor Training Centre in Secunda offers training in fields such

as fitting, welding, pipefitting and other building trades. Over the

years, more than 30 000 people have studied at the centre, which is

accredited with the Metal and Engineering Industries Training Board

(merSETA), the Construction Education & Training Authority (CETA), and

the Chemical Industries Education and Training Authority (CHIETA).

The Southern African Wildlife College, offering diploma and short

courses in conservation, is a joint World Wide Fund for Nature South

Africa (WWF-SA) and Peace Parks Foundation initiative. The college is

located near the Orpen Gate on the edge of the Kruger National Park.

There is a National Student Financial Aid Scheme (NSFAS) which is

under pressure following a concentrated protest across South Africa

against high university fees. Bursaries are also available under the

National Skills Fund.

ONLINE RESOURCES

Association for the Development of Education in Africa:

www.adeanet.org

Ehlanzeni TVET College: www.ehlanzenicollege.co.za

Gert Sibande TVET College: www.gscollege.co.za

Mpumalanga Department of Education:

www.mpumalanga.gov.za/education

Mpumalanga Regional Training Trust: www.rttrust.co.za

National Department of Basic Education: www.education.gov.za

National Department of Higher Education and Training:

www.dhet.gov.za

National Research Foundation: www.nrf.ac.za

Nkangala TVET College: www.nkangalafet.edu.za

Southern African Wildlife College: www.wildlifecollege.org.za

89 MPUMALANGA BUSINESS 2017


LISTING

South African National Government

An overview of South Africa’s national government departments.

President

Address: Union Buildings, Government Avenue, Arcadia, Pretoria 0001

Postal address: Private Bag X1000, Pretoria 0001

Tel: +27 12 300 5200

Fax: +27 12 323 8246

Website: www.thepresidency.gov.za

Website: www.economic.gov.za

Deputy President

Address: Union Buildings, Government Avenue, East Wing,

1st Floor, Arcadia, Pretoria 0001

Postal address: Private Bag X1000, Pretoria 0001

Tel: +27 12 300 5200

Fax: +27 12 323 8246

Website: www.thepresidency.gov.za

Minister in the Presidency

Address: Union Buildings, Government Avenue, East Wing,

1st Floor, Arcadia, Pretoria 0001

Postal address: Private Bag X1000, Pretoria 0001

Tel: +27 12 300 5200

Fax: +27 12 300 5795

Website: www.thepresidency.gov.za

Ministry in the Presidency responsible

for Women (Minister of Women in the

Presidency)

Address: East Wing, Union Buildings, Pretoria 0001

Postal address: Private Bag X931, Pretoria 0001

Tel: +27 12 359 0011 / 0013 | Fax: +27 12 326 0473

Website: www.women.gov.za

Minister for Public Service & Administration

Address: 123 Poyntons Building, West Block, cnr Schubart and Church

streets, Pretoria 0001

Postal address: Private Bag X136, Pretoria 0001

Tel: +27 12 307 2934/2884 | Fax: +27 12 323 4111

Website: www.dcs.gov.za

Dept of Agriculture, Forestry and Fisheries

Address: No 20, Agriculture Place, Block DA, 1st Floor, cnr Beatrix Street

and Soutpansberg Road, Arcadia, Pretoria

Postal address: Private Bag X250, Pretoria

Tel: +27 12 319 7319

Fax: +27 12 319 6681

Website: www.daff.gov.za

Department of Arts and Culture

Address: 10th Floor, Kingsley Centre, 481 corner Steve Biko & Stanza

Bopape streets, Arcadia, Pretoria 0001

Postal address: Private Bag X899, Pretoria 0001

Tel: +27 12 441 3000

Fax: +27 12 440 4485

Website: www.dac.gov.za

Department of Basic Education

Address: Sol Plaatje House, 222 Struben Street, Pretoria 0001

Postal address: Private Bag X9034, 8000

Tel: +27 12 357 3000

Fax: +27 12 323 5989

Website: www.education.gov.za

Department of Communications

Address: Tshedimosetso House, 1035 Frances Baard (Cnr Festival

Street), Hatfield, Pretoria 0001

Postal address: Private Bag X745, Pretoria 0001

Tel: +27 12 473 0000

Fax: +27 12 462 1646

Website: www.doc.gov.za

Department of Cooperative Governance and

Traditional Affairs

Address: 87 Hamilton Street, Arcadia, Pretoria 0083

Postal address: Private Bag X802, Pretoria 0001

Tel: +27 12 334 0705

Fax: +27 12 326 4478

Website: www.cogta.gov.za

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LISTING

Department of Correctional Services

Address: 123 Poyntons Building, West Block,

cnr Schubart and Church streets, Pretoria 0001

Postal address: Private Bag X136, Pretoria 0001

Tel: +27 12 307 2934/2884 | Fax: +27 12 323 4111

Website: www.dcs.gov.za

Department of Economic Development

Address: Block A, 3rd Floor, 77 the dti Campus, cnr Meintjies &

Esselen streets, Sunnyside, Pretoria 0001

Postal address: Private Bag X149, Pretoria 0001

Tel: +27 12 394 1006 | Fax: +27 12 394 0255

Website: www.economic.gov.za

Department of Defence and Military Veterans

Address: cnr Delmas Avenue & Nossob St, Erasmuskloof, Pretoria 0001

Postal address: Private Bag X427, Pretoria 0001

Tel: +27 12 355 6101 | F ax: +27 12 347 0118

Website: www.dod.mil.za

Department of Energy

Address: 192 cnr Visagie and Paul Kruger St, Pretoria 0001

Postal address: Private Bag X96, Pretoria 0001

Tel: +27 12 406 8000

Fax: +27 12 319 6681

Website: www.energy.gov.za

Department of Environmental Affairs

Address: Environment House, 473 Steve Biko and Soutpansberg Road,

Arcadia, 0083

Postal address: Private Bag X447, Pretoria 0001

Tel: +27 12 310 3537 | Fax: +27 086 593 6526

Website: www.environment.gov.za

Department of Finance

Address: 40 WF Nkomo Street,

Old Reserve Bank Building, 2nd Floor, Pretoria

Postal address: Private Bag X115, Pretoria 0001

Tel: +27 12 323 8911 | Fax: +27 12 323 3262

Website: www.treasury.gov.za

Department of Health

Address: 20th Floor, Civitas Building, cnr Struben and Andries Streets,

Pretoria 0001

Postal address: Private Bag X399, Pretoria 0001

Tel: +27 12 395 8086/80 | Fax: +27 12 395 9165

Website: www.doh.gov.za

Department of Higher Education

and Training

Address: 123 Francis Baard Street, Pretoria 0001

Postal address: Private Bag X893, Pretoria 0001

Tel: +27 12 312 5555

Fax: +27 12 323 5618

Website: www.dhet.gov.za

Department of Home Affairs

Address: 909 Arcadia Street, Hatfield 0083

Postal address: Private Bag X114, Pretoria 0001

Tel: +27 12 432 6648

Fax: +27 12 432 6675

Website: www.dha.gov.za

Department of Human Settlements

Address: Govan Mbeki House, 240 Justice Mahomed,

Sunnyside, Pretoria 0001

Postal address: Private Bag X644, Pretoria 0001

Tel: +27 12 421 1310

Fax: +27 12 341 8513

Website: www.dhs.gov.za

Department of International Relations and

Cooperation

Address: OR Tambo Building, 460 Soutpansberg Road, Rietondale,

Pretoria 0001

Postal address: Private Bag X152, Pretoria 0001

Tel: +27 12 351 1000

Fax: +27 12 329 1000

Website: www.dirco.gov.za

Department of Justice and Correctional

Services

Address: Salu Building, 316 cnr Thabo Sehume and Francis Baard

Streets, Pretoria 0001

Postal address: Private Bag X276, Pretoria 0001

Tel: +27 12 406 4669

Fax: +27 12 406 4680

Website: www.doj.gov.za

Department of Labour

Address: 215 Laboria House, cnr Francis Baard and

Paul Kruger Streets, Pretoria 0001

Postal address: Private Bag X499, Pretoria 0001

Tel: +27 12 392 9620 | Fax: +27 12 320 1942

Website: www.labour.gov.za

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LISTING

Department of Mineral Resources

Address: 70 Meintje Street, Trevenna Campus, Sunnyside 0007

Postal address: Private Bag X59, Pretoria 0001

Tel: +27 12 444 3000 | Fax: +27 86 624 5509

Website: www.dmr.gov.za

Department of Police

Address: Wachthuis Building, 7th Floor, 231 Pretorius Street, Pretoria 0001

Postal address: Private Bag X463, Pretoria 0001

Tel: +27 12 393 2800 | Fax: +27 12 393 2812

Website: www.saps.gov.za

Department of Public Enterprises

Address: Infotech Building, 1090 Arcadia Street, Hatfield, Pretoria 0001

Postal address: Private Bag X15, Hatfield 0028

Tel: +27 12 431 1000 | Fax: +27 12 431 1039

Website: www.dpe.gov.za

Department of Public Service and

Administration

Address: Batho Pele House, 116 Johannes Ramakhoase Street, Pretoria

Postal address: Private Bag X884, Pretoria 0001

Tel: +27 12 336 1700 | Fax: +27 12 336 1809

Website: www.dpsa.gov.za

Department of Public Works

Address: 7th Floor, CGO Building, cnr Bosman and Madiba Street

Postal address: Private Bag X65, Pretoria 0001

Tel: +27 12 406 21978 | Fax: +27 086 276 8757

Website: www.publicworks.gov.za

Department of Rural Development and

Land Reform

Address: 184 Old Building, cnr Jeff Masemola

and Paul Kruger Streets, Pretoria 0001

Postal address: Private Bag X833, Pretoria 0001

Tel: +27 12 312 9300

Fax: +27 12 323 3306

Website: www.ruraldevelopment.gov.za

Department of Science and Technology

Physical address: DST Building, Building No 53, CSIR South Gate

Entrance, Meiring Naude Road, Brummeria, Pretoria 0001

Postal address: Private Bag X727, Pretoria 0001

Tel: +27 12 843 6300

Fax: +27 12 349 1041/8

Website: www.dst.gov.za

Department of Small Business Development

Physical address: The dti, Block A, 3rd Floor, 77 Meintjies Street,

Sunnyside, Pretoria 0001

Postal address: Private Bag X84, Pretoria 0001

Tel: +27 12 394 1006 | Fax: +27 12 394 1006

Website: www.dsbd.gov.za

Department of Social Development

Physical address: HSRC Building, North Wing, 134 Pretorius Street,

Pretoria 0001

Postal address: Private Bag X904, Pretoria 0001

Tel: +27 12 312 7479 | Fax: +27 086 715 0829

Website: www.dsd.gov.za

Department of State Security

Physical address: Bogare Building, 2 Atterbury Road, Menlyn, Pretoria 0001

Postal address: PO Box 1037, Menlyn 0077

Tel: +27 12 367 0700 | Fax: +27 12 367 0749

Website: www.ssa.gov.za

Department of Sport and Recreation South

Africa

Physical address: Regent Place, 66 cnr Madiba and

Florence Ribeiro Street, Pretoria 0001

Postal address: Private Bag X896, Pretoria 0001

Tel: +27 12 304 5000 | Fax: +27 12 323 7196 / 086 644 9583

Website: www.srsa.gov.za

Department of Tourism

Physical address: 17 Trevena Street, Tourism House, Sunnyside, Pretoria 0001

Postal address: Private Bag X424, Pretoria 0001

Tel: +27 12 444 6780 | Fax: +27 12 444 7027

Website: www.tourism.gov.za

Department of Trade and Industry

Physical address: The dti, 77 Meintjie Street, Block A, Floor 3,

Sunnyside, Pretoria 0001

Postal address: Private Bag X274, Pretoria 0001

Tel: +27 12 394 1568 | Fax: +27 12 394 0337

Website: www.thedti.gov.za

Department of Transport

Physical address: Forum Building, 159 Struben Street,

Room 4111, Pretoria 0001

Postal address: Private Bag X193, Pretoria 0001

Tel: +27 12 309 3131 | Fax: +27 12 328 3194

Website: www.transport.gov.za

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LISTING

Telecommunications and Postal Services

Physical address: Iparioli Office Park, 399 Jan Shoba Street,

Hatfield, Pretoria 0001

Postal address: Private Bag X860, Pretoria 0001

Tel: +27 12 427 8000

Fax: +27 12 427 8016

Website: www.dtps.gov.za

Department of Water and Sanitation

Physical address: Sedibang Building, 185 Frances Baard Street,

Pretoria 0001

Postal address: Private Bag X313, Pretoria 0001

Tel: +27 12 336 8733 | Fax: +27 12 336 8850

Website: www.dwa.gov.za

National coat of arms

The national coat of arms was adopted on 27 April 2000. It is constructed in two circles, which

are described as the circle of foundation and the circle of ascendance.

Circle of foundation

Shield – The two Khoisan figures on the shield are taken from a Bushman rock

painting known as the Linton stone, and represent the common humanity and

heritage of South Africans. Depicted in an attitude of greeting, the figures

symbolise unity. Spear and knobkierie – Together, these objects symbolise

defence and authority, but the flat angle at which they lie symbolises peace.

Wheat – The ears of wheat, as emblems of fertility, represent germination,

growth and the development of potential, as well as nourishment

and agriculture. Elephant tusks – Elephants symbolise wisdom, strength,

power, authority, moderation and eternity, and the use of tusks is a tribute

to the world’s largest land mammal, Loxodonta Africana, which is found in

South Africa. Motto – Taken from the language of the now extinct /Xam

Bushmen, the motto translated means ‘people who are different come

together’ or ‘diverse people unite’.

Circle of ascendance

Protea – Protea cynaroides is the national flower of South Africa and is symbolic of the beauty of

the country and flowering of the nation’s potential. Secretary bird – Characterised in flight, the

secretary bird represents growth and speed, and is a symbol of divine majesty and protection.

Rising sun – The sun is an emblem of energy and rebirth, a source of light and life appropriate for

a country characterised by sunshine and warmth.

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LISTING

Mpumalanga

Provincial Government

A guide to Mpumalanga Province’s government departments.

Visit www.mpumalanga.gov.za

Office of the Premier

Premier: David Dabede Mabuza

Physical address: 2nd Floor, Building 2,

7 Government Boulevard, Riverside Park

Extension 2, Mbombela 1200

Postal address: Private Bag X11291,

Mbombela 1200

Tel: +27 13 766 0000 | Fax: +27 13 766 2494

Email: premier@prem.mpu.gov.za

Website: www.mpumalanga.gov.za

Department of Agriculture, Rural

Development and Environmental Affairs

MEC: Vusumuzi Shongwe

Physical address: 2nd Floor, Building 6,

7 Government Boulevard, Riverside Park

Extension 2, Mbombela 1201

Postal address: Private Bag X11219, Mbombela 1200

Tel: +27 13 766 6072 | Fax: +27 13 766 8429

Website: http://dardla.mpg.gov.za/

Department of Community Safety,

Security and Liaison

MEC: Petrus Ngomana

Physical address: 2nd Floor, Building 4,

7 Government Boulevard, Riverside Park Extension

2, Mbombela 1200

Postal address: Private Bag X11269,

Mbombela 1200

Tel: +27 13 766 4082 | Fax: +27 13 766 4616 / 4600

Website: www.mpumalanga.gov.za/safety_and_

security/home.asp

Department of Cooperative Governance

and Traditional Affairs

MEC: Refilwe Mtshweni

Physical address: Upper Ground Floor, Building 6,

7 Government Boulevard,

Riverside Park Extension 2, Mbombela 1200

Postal address: Private Bag X11304,

Mbombela 1200

Tel: +27 13 766 6607 / 6970

Fax: +27 13 766 8461

Website: http://cgta.mpg.gov.za

Department of Culture,

Sport and Recreation

MEC: Norah Mahlangu

Physical address: 2nd Floor, Building 5,

7 Government Boulevard, Riverside Park

Extension 2, Mbombela 1201

Postal address: Private Bag X11316, Mbombela 1200

Tel: +27 13 766 5078 | Fax: +27 13 766 5575

Website: www.mpumalanga.gov.za/dcsr/

Department of Economic Development

and Tourism

MEC: Eric Kholwane

Physical address: 1st Floor, Building 4,

7 Government Boulevard, Riverside Park

Extension 2, Mbombela 1201

Postal address: Private Bag X11215, Mbombela 1200

Tel: +27 13 766 4004

Fax: +27 13 766 4613

Website: www.mpumalanga.gov.za/dedet/

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Department of Education

MEC: Reginah Mhaule

Physical address: Building 5, 7 Government

Boulevard, Riverside Park Extension 2,

Mbombela 1201

Postal address: Private Bag X11341,

Mbombela 1200

Tel: +27 13 766 5555 | Fax: +27 13 766 5577

Website: www.mpumalanga.gov.za/education/

Department of Health

MEC: Gillion Mashego

Physical address: 2nd Floor, Building 3,

7 Government Boulevard, Riverside Park

Extension 2, Mbombela 1201

Postal address: Private Bag X11285,

Mbombela 1200

Tel: +27 13 766 3754

Fax: +27 13 766 3475

Website: www.mpuhealth.gov.za

Department of Public Works,

Roads and Transport

MEC: Sasekani Manzini

Physical address: 7 Government Boulevard,

Riverside Government Complex Building 7

Mbombela 1200

Postal address: Private Bag X 1302,

Mbombela 1200

Tel: +27 13 766 6696 / 6979

Fax: +27 13 766 8453 / 8471

Website: http://dpwrt.mpg.gov.za

Department of Social Development

LISTING

MEC: Busi Shiba

Physical address: Son Joy Building, Boulevard Street

Riverside Park, Mbombela 1200

Postal address: Private Bag X11285,

Mbombela 1200

Tel: +27 13 766 6811 | Fax: +27 13 766 8462

Website: http://dpwrt.mpg.gov.za/

Department of Human Settlements

MEC: Speedy Mashilo

Physical address: Building 7, 7 Government

Boulevard, Riverside Park, Mbombela 1200

Postal address: Private Bag X11328,

Mbombela 1200

Tel: +27 13 766 6607

Fax: +27 13 766 8441

Website: http://dhs.mpg.gov.za/

Provincial Treasury

MEC: Eric Kholwane

Physical address: Upper Ground Floor, Building 4, 7

Government Boulevard, Riverside Park

Extension 2, Mbombela 1200

Postal address: Private Bag X11205,

Mbombela 1200

Tel: +27 13 766 3250 | Fax: +27 13 766 3459

Website: http://finance.mpu.gov.za/

ZIMBABWE

NAMIBIA

BOTSWANA

Limpopo

KwaZulu-

Natal

MPUMALANGA

Gauteng

North West

SWAZI-

LAND

MOZAMBIQUE

Northern Cape

Free State

LESOTHO

Western Cape

Eastern Cape

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MPUMALANGA BUSINESS 2017


LISTING

Mpumalanga Local Government

A guide to district and local municipalities in Mpumalanga.

Ehlanzeni District Municipality

Physical address: 8 Van Niekerk Street,

Nelspruit 1201

Postal address: PO Box 3333, Nelspruit 1200

Tel: +27 13 759 8500

Fax: +27 13 759 8539

Website: www.ehlanzeni.gov.za

Local municipalities encompassed

Tel: +27 13 799 1851 | Fax: +27 13 799 1865

Website: www.bushbuckridge.gov.za

City of Mbombela Municipality

Tel: +27 13 759 9111

Fax: +27 13 759 2070

Website: www.mbombela.gov.za

Nkomazi Municipality

Tel: +27 13 790 0245

Fax: +27 13 790 0886

Website: www.nkomazimun.gov.za

Thaba Chweu Municipality

Tel: +27 13 235 7300

Fax: +27 13 235 1108

Website: www.tclm.co.za

Local municipalities encompassed

Chief Albert Luthuli Municipality

Tel: +27 17 843 4000 | Fax: +27 17 843 4001

Website: www.albertluthuli.gov.za

Dipaleseng Municipality

Tel: +27 17 773 0055 | Fax: +27 17 773 0169

Govan Mbeki Municipality

Tel: +27 17 620 6000 | Fax: +27 17 634 8019

Website: www.govanmbeki.gov.za

Lekwa Municipality

Tel: +27 17 712 9600 | Fax: +27 17 712 6808

Website: www.lekwalm.gov.za

Mkhondo Municipality

Tel: +27 17 826 8100 | Fax: +27 17 826 3129

Website: www.mkhondo.gov.za

Msukaligwa Municipality

Tel: 086 167 852 | Fax: +27 17 801 3851

Website: www.msukaligwa.gov.za

Pixley Ka Seme Municipality

Tel: +27 17 734 6100

Fax: 086 630 2209

Website: www.pixleykaseme.gov.za

Gert Sibande District Municipality

Physical address: Cnr Joubert and Oosthuise

streets, Ermelo 2350

Postal address: PO Box 1748, Ermelo 2350

Tel: +27 17 801 7000

Fax: +27 17 811 1207

Website: www.gsibande.gov.za

Nkangala District Municipality

Physical address: 2A Walter Sisulu Street,

Middleburg 1055

Postal address: PO Box 437, Middleburg 1050

Tel: +27 13 249 2000

Fax: +27 13 249 2056

Website: www.nkangaladm.org.za

MPUMALANGA BUSINESS 2017

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LISTING

Local municipalities encompassed

Victor Khanye Municipality

Tel: +27 13 665 6000

Fax: +27 13 665 2913

Email: munadmin@delmasmuni.co.za

Website: www.victorkhanyelm.gov.za

Dr JS Moroka Municipality

Tel: +27 13 973 1101 | Fax: +27 13 973 0974

Website: www.moroka.gov.za

Emakhazeni Municipality

Tel: +27 13 253 7600 | Fax: +27 13 253 2440

Website: www.emakhazeni.gov.za

eMalahleni Municipality

Tel: +27 13 690 6911

Fax: +27 13 690 6207

Website: www.emalahleni.gov.za

Steve Tshwete Municipality

Tel: +27 13 249 7000

Fax: +27 13 243 2550

Website: www.stlm.gov.za

Thembisile Hani Municipality

Tel: +27 13 986 9100

Fax: +27 13 986 0995

Website: www.thembisilehanilm.gov.za

MUNICIPALITIES IN MPUMALANGA

Limpopo

Bushbuckridge

North West

Dr JS Moroka

Thembisile

Nkangala

Emakhazeni

Thaba Chweu

Mbombela

Ehlanzeni

Nkomazi

Mozambique

Gauteng

eMalahleni

Victor Khanye

Steve Tshwete

Chief Albert Luthuli

N

Dipaleseng

Govan Mbeki

Msukaligwa

Gert Sibande

Swaziland

Lekwa

Free State

Pixley Ka Seme

Mkhondo

Metropolitan/District Municipality Boundary

Local Municipality Boundary

District Municipality

Amajuba

Local Municipality

uMlalazi

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MPUMALANGA BUSINESS 2017


INDEX

INDEX

Buhle Farmers’ Academy ............................................................................................................35

Columbus Stainless .............................................................................................................. 59, 60

Cool Ideas Truck Stop ................................................................................................................ 63

HL Hall & Sons Properties .......................................................................................................... 66

Hydra Arc ..................................................................................................................................... 53

Inkomati-Usuthu Catchment Management Agency ................................................................. 56

Kuka Mining Logistics ................................................................................................................. 44

Mobile Agri Skills Development & Training (MASDT) ............................................................... 33

Mpumalanga Economic Growth Agency .................................................................. 14, 16, OBC

Nedbank ....................................................................................................................................... 28

Rand Water .................................................................................................................................. 54

Sasol ........................................................................................................................................... IFC

Small Enterprise Development Agency (Seda) ........................................................................... 5

Southern Sun Emnotweni ........................................................................................................... 69

Standard Bank Mpumalanga ............................................................................... 18, 76 - 83, IBC

Vodacom ........................................................................................................................................ 3

MPUMALANGA BUSINESS 2017 98


The bank of choice for

Mpumalanga’s public sector

Standard Bank has a number of high-profile public sector clients in the province.

Standard Bank Public Sector Banking in Mpumalanga Province

is led by Lawrence Ntimane, who is based in the provincial

office located at Riverside Park, Mbombela. This business is

enabled by a team of highly qualified account executives

and account analysts located in three business centres, distributed

across several towns in the province.

The public sector market covers the three spheres of government

(national, provincial and local) as well as any ancillary business linked

to government. A typical customer would be those that are regulated

by the PFMA, MFMA and broader regulatory environment that is

constitutionally mandated.

Standard Bank holds a significant share of the public sector banking

relationships in the province, with the Mpumalanga provincial

government as our premium customer. This relationship is held at the

Nelspruit Business Centre in a portfolio managed by highly qualified

account executive Joshua Madonsela who is ably assisted by two

experienced account analysts.

Our relationship with the Mpumalanga provincial government

extends beyond banking activities; together, we are involved in various

strategic partnerships ranging from corporate social investment, local

economic development and employee financial well-being for the

benefit of the people of the province.

Furthermore, our banking services

are extended to, and enjoyed

by, the University of Mpumalanga,

various municipalities, the three

technical and vocational education

and training colleges and provincial

entities with whom we have

banking relationships.

Standard Bank Public Sector is

not only involved in business but

entrenched in civic welfare; to this

effect we leverage our relationship

with all spheres of government to

support and help uplift the communities

and economies in the

environments in which we operate.

Our goal is to provide working

solutions that help public sector institutions

meet their strategic, technical,

administrative, regulatory and

constitutional obligations, which in

turn will lead to economic growth

and development.

CONTACT INFO

Lawrence Ntimane, Provincial

Public Sector – Mpumalanga

Tel: +27 13 757 5618

Cell: +27 82 511 8851

Email: Lawrence.Ntimane@

standardbank.co.za

Website:

www.standardbank.com


MEGA is the Official Economic Development Agency

for Mpumalanga Province - South Africa

MBOMBELA OFFICES: T. +27 13 755 6328 | F. +27 13 755 6239

JOHANNESBURG REGIONAL OFFICE: T. +27 10 493 1725/6 | F. +27 10 493 1727

www.mega.gov.za • trade-invest@mega.gov.za

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