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
Everything is better
in a Vodacom Fibre
connected home
Get Fibre to your home and experience the
Internet like never before. Play, download
and stream at amazing speeds.
Vodacom
Power to you
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
MPUMALANGA BUSINESS 2017
70
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
72
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
74
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
76
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
MPUMALANGA BUSINESS 2017
90
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
91
MPUMALANGA BUSINESS 2017
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
MPUMALANGA BUSINESS 2017
92
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.
93
MPUMALANGA BUSINESS 2017
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/
MPUMALANGA BUSINESS 2017
94
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
95
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
96
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
97
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
Change language