Mpumalanga Business 2017-18 edition

christoffscholtz

Mpumalanga Business 2017/18 is the eighth edition of this highly successful publication that has since its launch in 2008 established itself as the premier guide to business and investment in 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

2017/18 EDITION

THE GUIDE TO BUSINESS AND INVESTMENT

IN MPUMALANGA PROVINCE

MPUMALANGA

JOIN JOIN US ONLINE US ONLINE

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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 highvalue

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 entities: Sasol Mining, Secunda

Synfuels Operations, Secunda Chemicals Operations, Sasol Energy and Group Technology.

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 operates the world's only commercial coal-based

synthetic fuels manufacturing facility, producing synthesis gas (syngas) through

coal gasication and natural gas reforming. The operating hub uses proprietary

technology to convert syngas into synthetic fuel components, pipeline gas and feedstock

for producing chemicals.

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.

Group Technology manages Sasol's research and development, technology innovation

and management, engineering services and capital project management portfolios. The

function contributes towards Sasol's fuels and chemicals businesses to maintain growth

and sustainability through appropriate technological solutions and services.

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

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

development of the Mpumalanga province as well as South Africa.


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

social investment initiatives visit www.sasol.com.


CONTENTS

CONTENTS

Mpumalanga Business 2017/18 Edition.

Introduction

Foreword2

A unique guide to business and investment in Mpumalanga.

Mpumalanga Economic Growth Agency (MEGA) 12

Driving trade and investment in Mpumalanga.

Special features

Regional overview 8

Investments in key sectors are boosting the economy

of the “Place of the Rising Sun”.

Investment incentives 16

A range of incentives are available to investors, companies,

entrepreneurs and co-operatives.

Establishing a business 18

South Africa has eased the barriers to doing business for

locals as well as international companies and individuals.

Investing in Mpumalanga 20

Five strategic sectors are primed for profitable investments.

Economic sectors

Agriculture30

Agri-parks and an International Fresh Produce Market –

helping farmers get to market.

Mining34

Mining companies are set to spend more than R12-billion on

four coal projects.

MPUMALANGA BUSINESS 2017/18

2


UIF SAVING JOBS

THROUGH SOCIALLY

RESPONSIBLE INVESTMENTS

The National Development Plan is a blueprint serving as

a guideline to government departments and state entities

on how they can play a role in government wide efforts

of creating decent work, reducing unemployment and

poverty. The Unemployment Insurance Fund is among

the leading state entities in the implementation of the

provisions of the NDP to address the slow economic

growth, unemployment and poverty in South Africa.

The UIF social investment mandate ensures that,

additional to earning good financial returns, investments

must be supportive of long term economic, social and

adhere to sustainable environmental outcomes. The

investments must also yield a good social return for the

country. These investments have sustained 6 860 jobs of

which 3 024 are permanent, 3 836 are temporary/seasonal

and 195 are new jobs created during the financial year

ending in March 2016.

UIF INVESTMENTS IN RENEWABLE ENERGY

The UIF investments are contributing to the energy

requirements of South Africa and the investments in the

renewable energy sector provides a total capacity of 192

megawatt of electricity of which 117 megawatt is solar

energy and 27 megawatt is wind generated electricity.

The De Aar project is a shining example of the UIF energy

investments and this project produces 90 megawatt of

electricity and was completed in April 2016. The solar plant

in the area generates enough electricity to power 15 000

houses. Another mainstay project is the Phakwe Group ran

projects undertaken in the Northern and Eastern Cape.

INVESTMENT IN FOOD SECURITY

The UIF investments in this regard are undertaken under

the banner of the UIF Agri-Fund in partnership with

Futuregrowth and Day Breaker Poultry Project. The UIF

Agri-Fund has invested in 4 farms situated in Mable Hall

in Limpopo. One of the farms is a cash crop farm spanning

450 hectares. The farm in the last financial year produced

235 hectares of white maize, and cotton was planted in an

area covering 28 hectares.

A further three farms are located in the Saron area in the

Western Cape. In this project a total of 178 hectares has

been used to plant grapes, 37 hectares has been used to

pant citrus fruit. Furthermore, there is potential to plant an

additional 92 hectares of grapes. The Daybreaker Poultry

project operates in Gauteng, Limpopo and Mpumalanga

and the combined projects have facilities to grow 1.6

million broiler chickens.

INVESTMENTS IN HEALTH CARE FACILITIES

The UIF concluded two investments in this regard that

include a BEE hospital manager, Busamed to build a

private hospital in Modderfontein and Fund Manager

Razorite Heatlhcare that focus on the provision of

affordable heathcare facilities that include rehabilitation

and sub-acute centres.

The Modderfontein hospital is a 220 hospital bed with subacute

facilities. This hospital is under construction. While

the RH Fund Manager has concluded seven investments

that include:

• Busamed with four hospital facilities

• HealthMed with two facilities

INVESTMENTS IN EDUCATION

UIF has invested in three investments that play a role

to unlock access to education. The investments were

concluded with Eduloan – an organisation that provides

financial support to tertiary students and South Point and

Educor organisations that provide student accommodation.

By March 2016, Eduloan had disbursed about R446 986.64

benefiting 34 047 students, whiles South Point provided

about 10 000 student with accommodation.

UIF INVESTMENTS IN ENTERPRISE DEVELOPMENT

The UIF has concluded two investments with the aim of

supporting small and medium enterprises. In this regard

the PIC on behalf of UIF has concluded investment deals

with Musa Capital and TOSACO.

The investments will support more than 250 SMMEs across

various sectors inclusive of agriculture and affordable

housing. Musa Capital for example has a supply chain of

over 250 SMME’s that have facilitated the creation of 2 500

jobs.

TOSACO investments is planning to advance capital to

young black entrepreneurs who aspire to own and manage

Total Filling stations around the country.

For more information:

Call: 0800 843 843 or

visit: www.labour.gov.za

MPUMALANGA BUSINESS 2018


CONTENTS

Forestry and paper 40

Mining companies are set to spend more than R12-billion on

four coal projects.

Oil and gas 42

Gas exploration and gas conversion are growing trends.

Water44

Improving water services is a major priority in Mpumalanga.

Manufacturing48

A Russian truck maker is to establish a plant in Mpumalanga.

Transport and logistics 50

Large coal haulage volumes are typical in Mpumalanga.

Tourism52

Tourism is a key strategic sector.

Banking and financial services 54

Several new banks are set to open soon.

Development finance and SMME support 56

A dedicated SME fund will have R500-million capitalisation.

Education and training 58

Mpumalanga students will study in Belarus.

Government

Mpumalanga Provincial Government 61

A guide to Mpumalanga’s provincial

government departments.

Mpumalanga Local Government 62

A guide to district and local municipalities

in Mpumalanga.

References

Sector contents 28

Index64

Maps

Mpumalanga municipalities map. 63

Mpumalanga locator map. 12

MUNICIPALITIES IN MPUMALANGA

North West

Gauteng

Free State

Limpopo

Bushbuckridge

Dr JS Moroka

Thaba Chweu

Ehlanzeni

Thembisile

Nkangala Emakhazeni

Mbombela

Nkomazi

Steve Tshwete

eMalahleni

Victor Khanye

Chief Albert Luthuli

N

Govan Mbeki

Msukaligwa

Swaziland

Dipaleseng

Gert Sibande

Lekwa

Mkhondo

Metropolitan/District Municipality Boundary

Pixley Ka Seme

Local Municipality Boundary

District Municipality

Amajuba

Local Municipality

uMlalazi

Mozambique

MPUMALANGA BUSINESS 2017/18

4


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FOREWORD

Mpumalanga Business

A unique guide to business, investment and tourism

in Mpumalanga.

Mpumalanga Business 2017/18 is the eighth 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, 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 and investment portal www.globalafricanetwork.com.

Chris Whales

Publisher, Global Africa Network Media

Email: chris@gan.co.za

CREDITS

Publisher: Chris Whales

Publishing director:

Robert Arendse

Editor: John Young

Online editor: Christoff Scholtz

Art director: Brent Meder

Design: Colin Carter

Production: Lizel Olivier

Ad sales: Sydwell Adonis, Nigel

Williams, Gavin van der Merwe,

Sam Oliver, Gabriel Venter,

Siyawamkela Sthunda,

Vanessa Wallace, Jeremy Petersen

and Reginald Motsoahae

Managing director: Clive During

Administration & accounts:

Charlene Steynberg and

Natalie Koopman

Distribution & 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.

Member of the Audit Bureau of Circulations

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. .

PHOTO CREDITS | Pictures supplied by: Sasol Secunda, flickr.com, Anglo

American Brand Toolkit, Wikimedia Commons, SA Tourism, Sheltham Rail,

Trip Advisor (The Green Nut Company), Trip Advisor 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-to-date, the publishers

make no representations as to the accuracy, quality, timeliness, or

completeness of the information. Global Africa Network will not accept

responsibility for any loss or damage suffered as a result of the use of or

any reliance placed on such information.

MPUMALANGA BUSINESS 2017/18

6


Inkomati-Usuthu

Catchment

Management Agency

Reforming the way water is allocated.

Water, like other resources in

this country, has historically

been allocated unequally.

The National Water Act, Act

No. 38 of 1998 (the NWA)

and the National Water

Resources Strategy (NWRS)

provide for the correction

of such imbalances in line

with the constitutional

imperatives of the Republic

of South Africa.

Dr Thomas

Gyedu-Ababio,

Chief Executive

Officer

The South African Constitution states that there is a

commitment from the nation to reform in order to

bring about equitable access to all of the country’s

natural resources, including water resources. Water

Allocation Reform (WAR) is deduced from the NWA

as a measure to redress past imbalances, with its

intention to ensure that the nation’s water resources

are protected, used, developed, conserved, managed

and controlled in an effective and efficient manner.

The state is not impeded to effect water reform by

taking legislative and other steps in order to redress

the results of past racial discrimination, so as to achieve

socio-economic equity.

As one of the measures aimed at addressing inequities

in access to water for productive purposes, equitable access

to water, or to the benefits derived from using water,

the Department of Water and Sanitation (DWS) through

the relevant Catchment Management Agencies (CMA)

has embarked on Water Allocation Reform (WAR)

which is critical in eradicating poverty and promoting

economic growth. WAR is the Inkomati-Usuthu

Catchment Management Agency’s key programme for

redressing these inequities. The programme aims to:

• meet the basic human needs of present and future

generations

• promote equitable access to water, redressing past

imbalances based on gender and race

• promote the efficient, sustainable and beneficial

use of water in the public interest

• meet international obligations

• take steps to meet the water needs of HDIs and

the poor, and

• ensure participation by these groups in water

resource management.

The IUCMA has developed a short-and long-term plan

to be used towards achieving WAR. The plan encompasses

a number of actions, including the provision of

financial assistance to resource-poor farmers, compulsory

licensing to support the equitable (re)allocation of

water in any catchment, and the processing of licences

and/or general authorisations to support the uptake

of water by historically disadvantaged individuals.

CONTACT INFO

Inkomati CMA Head Office physical address:

Suite 801, MAXSA Building, 13 Streak Street

(Cnr Streak and Ferreira), Mbombela 1200

Postal address: Private Bag X11214,

Mbombela 1200

Tel: +27 13 753 9000 | Fax: +27 13 753 2786

Email: sylviam@iucma.co.za

Website: www.iucma.co.za


A REGIONAL OVERVIEW OF

MPUMALANGA

PROVINCE

Investments in key sectors are boosting the

economy of the “Place of the Rising Sun”.

Mpumalanga has rich and varied mineral

resources and fertile soil that supports

diverse farming operations. South

Africa’s major power stations, three of

which are the biggest in the southern hemisphere,

are in Mpumalanga. The building of the new Kusile

power station is one of the biggest infrastructure

projects in the country’s history.

The province also hosts large companies in

the manufacturing sector, with internationally renowned

firms such as Sasol (synthetic fuels and

chemicals) and Xstrata (ferrochrome) having large

operations in Mpumalanga.

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

dissolving wood pulp at its Ngodwana Mill has

significantly increased the manufacturing capacity

of the province. York Timbers is a leading forestry

company and the sugar mills and refinery of RCL

Foods (formerly TSB Sugar) are large contributors

to the provincial economy.

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 Witbank (Emalahleni)

being the centre of the industry. Other minerals

found in the province include gold, platinum

group minerals, chromite, zinc, cobalt, copper, iron

and manganese.

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, Thos Begbie and the Nelspruit-based

MPUMALANGA BUSINESS 2017/18

8


SPECIAL FEATURE

Manganese Metal Company are

among other important heavy

industrial companies.

Mining is responsible for

21.8% of provincial GDP, 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%.

Investment and

infrastructure

The biggest companies in

Mpumalanga’s most significant

sectors have been investing

heavily in infrastructure

and operations. Global energy

and chemicals company Sasol

regularly spends tens of millions on upgrades and

improvements at its Secunda complex. The Sasol

Synfuels refinery is the only commercial coal-toliquid

fuel plant in the world and constitutes a key

component in South Africa’s oil and gas sector. In

July 2017 Sasol announced that the synfuel plant

produced a record annual output.

Sasol Mining is also very active in the province:

just three projects with which it is currently engaged

are valued at more than R8-billion. Exxaro Resources

is investing R3.8-billion in a new mine at Belfast.

Another global giant, Sappi, has invested heavily

in the conversion of its massive Ngodwana Mill and

other companies in the paper and forestry field such

as Mondi and York Timbers make large contributions

to the province’s economic growth.

The restarting of the Evraz Highveld steel mill

in 2017 was particularly good news, after the company

went into business rescue two years before.

ArcelorMittal South Africa is supplying feedstock to

the mill and has an option to purchase.

The Provincial Government of Mpumalanga has

been talking to several foreign countries about investments

in the province. An assembly plant for

Minsk Tractor Works is one of the outcomes of this

activity, and several agreements relating to training

and trading have been signed. Russia, Belarus, China

and Oman are some of the countries with which

Mpumalanga is engaged with. The Mpumalanga

Economic Growth Agency (MEGA) hosted a People’s

Republic of China Business Forum which was attended

by 19 large Chinese companies.

A major goal of the provincial government’s

Mpumalanga Economic Growth and Development

Path (MEGDP) is to expand the industrial base of the

provincial economy. The focus is on beneficiation,

agri-processing and value-chain development.

Overseeing infrastructure development in the

province is the responsibility of the Department

of Public Works, Roads and Transport, which must

ensure that various departments’ projects are

coordinated. When it comes to major projects, a new

unit will be established in the Office of the Premier,

the Provincial Project Management Unit.

Several investment projects aimed at providing

infrastructure in the tourism sector have been

put forward by the Mpumalanga Economic Growth

Agency (MEGA). Mpumalanga will host the 2017

National World Tourism Day in September, an event

that will help drive the province’s aim to turn this

already healthy economic sector into an even bigger

creator of wealth and jobs. Heritage and Cultural

Tourism are two of the focus areas in the provincial

plan because Mpumalanga is already a leader in

nature reserves and parks. Following on the international

drive, with a special focus on BRICS countries,

provincial authorities are investigating a tourism

airlift route between Moscow and Mpumalanga.

The “TriLand Brand Initiative” aims to join the province

in marketing efforts with neighbours Swaziland

and Mozambique.

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 in Mozambique.

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

9 MPUMALANGA BUSINESS 2017/18


SPECIAL FEATURE

implement steps to improve ICT performance in

the province.

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 very 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.

The southern and northern Highveld regions

produce large quantities of field crops such as barley,

soybeans, maize, grain and sorghum. Potatoes also

flourish in this area.

Most of the province receives summer rainfall,

often via thunderstorms. Frost is common on the

Highveld, but is almost absent in the subtropical regions

where fruit, nuts and citrus thrive. Differences

in temperature and rainfall between the Highveld

and Lowveld can be considerable. One of the fastest

growing agricultural sectors is macadamia

nuts. These are cultivated in the Lowveld and are

exported in ever-growing volumes. The Nelspruit

district in the Lowveld is South

Africa’s second-biggest producer

of citrus fruit, while vegetables of

all sorts do well in this area too.

Large parts of the province

are located in the so-called

Middleveld comprising highplateau

grasslands. Forestry operations

are found in central and

south-eastern Mpumalanga, but

the heart of this important industry

is around Sabie in the east.

The Mpumalanga forestry sector

is one of the most important in the

country: 11% of the total land area

of Mpumalanga is covered either

by plantations or natural forests.

Large sugar operations are found in the south-east

of the province.

The province has excellent roads and railway

connections and is well served by airports, airstrips

and heliports. The Kruger Mpumalanga International

Airport and Hoedspruit Airport are the province’s

two main airports.

The Maputo Development Corridor is a transportation

corridor comprising road, rail, border posts,

port and terminal facilities, running from Pretoria

in Gauteng through Mpumalanga to the Port of

Maputo in Mozambique. 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.

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).

MPUMALANGA BUSINESS 2017/18

10


SPECIAL FEATURE

The MDC, along the national N4

highway, forms the link between

the central Gauteng region and

the Mozambican port of Maputo.

Kruger Mpumalanga

International Airport is the gateway

to many of the tourist highlights

in the province and the

older aerodrome south of the

city is used by small planes. 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. 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 avocadoes are among the crops grown

most profitably and the town is at the centre of

the regional citrus sector. The Lowveld Botanical

Gardens contains 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

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. Rural and traditional

in the north-west where the King of the

Ndebele is still revered, there is a concentration of

coal mining and steel production in the industrial

centre. The north-east hosts a lively trout-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 south-east. About 900 000 people live in

the Gert Sibande district.

11 MPUMALANGA BUSINESS 2017/18


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.

ZIMBABWE

The provincial economy is highly diverse

with significant activity in mining, agriculture,

stainless-steel production, pet-

BOTSWANA

Limpopo

rochemicals, pulp NAMIBIA and paper, manufacturing

and tourism. Mpumalanga’s position

MPUMALANGA

and resources make it a valuable transport

Gauteng

North West

and logistics hub.

SWAZI-

LAND

In addition to good infrastructure, abundant

natural resources and fertile soils, the

Free State

KwaZuluprovince

also boasts great scenic beauty,

Natal

making it a desirable place in which Northern to live Cape

LESOTHO

and work.

The Mpumalanga Economic Growth

Agency (MEGA) facilitates investment in the

province and is always keen to talk to potential

Eastern Cape

investors.

Western Cape

MOZAMBIQUE

GAUTENG

MPUMALANGA

MOZAMBIQUE

FOREIGN MARKETS

Pretoria

Joburg

eMalahleni Mbombela Nkomazi SEZ

Middleburg Komatipoort Lebombo

Maputo

Africa & Middle East

Asia & Australasia

Europe & the Americas


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.

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.

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.


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

• Providing investment information, intelligence

and research

MPUMALANGA BUSINESS 2017/18

14


PROFILE

• 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

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 83 469 6899

eMail: liying.dong@mega.gov.za

15 MPUMALANGA BUSINESS 2017/18


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 for

MPUMALANGA BUSINESS 2017/18

16


SPECIAL FEATURE

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

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

17 MPUMALANGA BUSINESS 2017/18


SPECIAL FEATURE

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

• Applying for industry and export incentives

MPUMALANGA BUSINESS 2017/18

18


SPECIAL FEATURE

• 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 employer.

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.

19 MPUMALANGA BUSINESS 2017/18


Investing in Mpumalanga

Five strategic sectors are primed for profitable investments.

The iconic tourism destination of Kruger National

Park was the venue for the Mpumalanga Investor

Conference in June 2017. The strategic economic

sectors of the province were in the spotlight:

mining, agriculture, infrastructure, manufacturing

and tourism.

Organised by the Mpumalanga Economic Growth

Agency (MEGA), the conference was a concrete step

along the pathway of the province’s new Trade and

Investment Promotion Strategy which, in turn, supports

the Mpumalanga Industrial Development

Plan (MIDP).

Projects range from a fresh produce market, road

and rail projects, the rolling out of information and

communications technology (ICT), the building of a

new dam and a hydro-electric plant and the development

of coal and gold mining assets.

MEGA promotes foreign investment into the province,

facilitates trade and supports local businesses.

MEGA is an agency of the Department of Economic

Development and Tourism. The projects listed below

represent a sampling from each of the strategic sectors.

Mining

Somutoa, a firm that specialises in selling and renting

out mining and engineering machinery, is looking

for further capital to expand its products. Somutoa

plans to launch in South Africa a division manufacturing

and supplying shafts, which would be

distributed and shipped into Asia. The capital outlay

required for this project is about R12-million with an

estimated revenue of R36-million.

Secondly, Somutoa intends purchasing SANME

(crushing and screening) machines from Asia for

renting within the mining sector. The machinery

is expected to generate R86.4-million in revenues

and MEGA is looking for investors to invest about

R48-million. Thirdly, Somutoa has identified potential

investors in Asia who will add value to the

mining sector in South Africa. To execute the investments

into mining firms, MEGA is seeking about

R145-million capital investment for Somutoa to implement

its investment strategy that has a potential

to generate about R600-million. In total, MEGA is

MPUMALANGA BUSINESS 2017/18

20


SPECIAL FEATURE

keen to talk to investors willing to invest more than

R200-million into Somutoa with an estimated revenue

generation of more than R722-million.

Agriculture

An International Fresh Produce Market is planned

for Mbombela. To support the market, the

Mpumalanga government is in the process of establishing

seven Agri-Hubs throughout the province.

The Agri-Hubs will provide a stable supply

of fresh produce to the market. The 248h site is

in Mbombela, the capital city of Mpumalanga

Province. It is situated within the Maputo

Development Corridor (MDC), which is South

Africa’s leading Spatial Development Initiative (SDI)

linking Mpumalanga, Gauteng Province and the

Nkomazi Special Economic Zone with the deepwater

Port of Maputo in Mozambique.

This location enables the fresh produce market

access to the SADC market with 280-million consumers,

EAC market with 140-million consumers

and preferential access to lucrative Asian and EU

markets. The market will serve farmers and customers

from Mpumalanga, South Africa, and regional

markets in Swaziland and Mozambique. The

market will accommodate the expected growth

in tropical and subtropical crops and vegetables.

Furthermore, Mpumalanga has several mega

agricultural projects in the pipeline.

Infrastructure

The projected increase in platinum and chrome

output in the Steelpoort area at the border of

Mpumalanga and Limpopo provinces is putting

increasing strain on road and rail infrastructure.

To address infrastructure concerns, MEGA is now

implementing the KUKA Steelpoort Ropeway Ore

Transporting Project, which will act as a means of

transport of chrome and platinum ores from the

mines to the smelters.

The funding for all Ropeway Projects in

Steelpoort area is likely to be between R50-million

and R350-million. The cost for the Lion Ropeway

Project is projected at R220-million. Aerial ropeways

of over 100km long can be constructed, consisting

of a series of sections linked by automatic

transfer stations.

Manufacturing

Fly ash has become a problem for South Africa’s

power utility Eskom and it is selling some to cement

manufacturers. The remainder is buried or

put in ash ponds. Fly ash is produced by coal powered

power plants during the combustion of coal.

The beneficiation of fly ash in Mpumalanga, which

houses most of Eskom’s power stations, is becoming

a lucrative economic opportunity. MEGA is seeking

investors to develop a fly ash beneficiation plant.

The proposed plant would be built in Emalahleni

with an estimated cost of R17-million and the plant

size is projected at 500 tons per nine-hour production

shift. Fly ash is successfully used to enhance

the quality and economy of concrete. Other uses

of fly ash include brickmaking, dam building and

as a cement extender during the manufacturing

of cement.

Tourism

The province attracts over one-million tourists a year

to the natural wonders of the Bourke’s Luck Potholes,

God’s Window, the Blyde River Canyon and the Kruger

National Park.

MEGA is seeking investors to build an exclusive

five-star hotel and top-quality restaurant located at

the Bourke’s Luck Potholes on the Highveld part of

Blyde River Canyon Nature Reserve. There are also

innovative expansion plans for God’s Window, a famous

lookout point on top of a 700m high cliff in the

Drakensburg Mountains overlooking the Lowveld

Escarpment – one of Africa’s prime wildlife and game

reserves destinations. MEGA is planning to build a “Sky

Walk” tourism attraction – an income-generating,

cantilevered glass walkway and viewing deck suspended

off the edge of the God’s Window cliffs, giving

360° panoramic views out and 700 metres down

through a glass floor.

21 MPUMALANGA BUSINESS 2017/18


ADVERTORIAL

Making it easier to do business with Nedbank

Whole-view Business Banking

Loderick Lubisi, Nedbank Provincial General Manager for Retail and

Business Banking for Mpumalanga, explains how Nedbank can help

business owners in the region.

on what’s most important to you – running your

business,’ says Lubisi.

In line with our new brand proposition encouraging

clients to see money differently, our Mpumalanga

agriteams are committed to providing key support,

as well as advisory and business services to all

roleplayers involved in the agrispace in both

provinces. We will share our financial expertise

and play a role in advancing profitable, sustainable

practices throughout the agricultural production and

consumption value chain.

There is good news for Mpumalanga

business owners and entrepreneurs seeking

a unique banking experience: Nedbank

Business Banking has business managers,

located across both provinces, specialising

in commercial industries as well as the

agricultural sector.

Lubisi says his team is ready to assist clients with

professional advice, industry-specific solutions

and a comprehensive range of financial products

and services.

‘At Nedbank Business Banking we believe that you

need a financial partner who not only understands

your circumstances and aspirations, but also provides

you with relevant solutions and a banking experience

that is hassle-free. This allows you to concentrate

We recognise that farmers today face many

challenges and that to remain competitive they

continually have to improve and adopt best practices

and new technologies.

‘We encourage you to see money differently with

Whole-view Business Banking’, says Lubisi.

‘We are also involved in a number of initiatives with

the public sector, ensuring that such partnerships

support provincial government goals in respect of job

creation and growing the economy,’ Lubisi concludes.

Should you be interested in taking your business to the

next level, please call Loderick Lubisi on

+27 (0)13 759 4910, send an email to

loderickl@nedbank.co.za or

visit www.nedbank.co.za.


ADVERTORIAL

Nedbank Business Bundle is a game changer

with savings and personalised services for

small enterprises

The new Business Bundle from Nedbank is a game changer for small

enterprises in Mpumalanga, offering the best value for money when

compared to rival offerings.

With the country’s challenging economic

environment, the Business Bundle not only

offers you personalised banking services,

but also critical tools to save – with up to

40% savings on monthly banking fees –

contributing directly to the bottomline at a

time when every cent counts.

In line with Nedbank’s new brand proposition to see

money differently, the Business Bundle resonates with

the bank’s commitment to do good by promoting

small enterprises.

‘As a bank for small businesses we are committed

to partnering with entrepreneurs to help grow their

businesses. As such, Nedbank is always looking at

ways in which we can help unlock the value of our

clients’ businesses. We support their business growth

journeys by providing practical tools to help them

run their businesses,’ says Loderick Lubisi, Nedbank

Provincial General Manager, Retail and Business

Banking for Mpumalanga.

‘Small businesses are the lifeblood of our economy.

Nedbank has, over the years, instituted various

interventions aimed at giving support to the smallbusiness

sector.’

Trust us to protect your business against

everyday risk

Stella Tedeschi, Regional Manager of Broker

Channels for Mpumalanga, says Nedbank

Insurance is not a one-size-fits-all business.

Nedbank Insurance has evolved into a business

that provides integrated insurance to individual

and business clients. Our offering comprises

comprehensive short-term insurance solutions,

life insurance solutions and investments.

Nedbank Insurance provides a comprehensive

offering of short-term products on behalf of

blue-chip insurers. Should you be interested in

expert advice on the type of cover that is exactly

right for your business needs, look no further.

Nedbank has a team of specialists ready to provide you with

information necessary to allow you to make an informed

decision. For more information call Stella Tedeschi on

+27 (0)12 436 7659, send an email to

stellat@nedbankinsurance.co.za,

or visit www.nedbank.co.za.

To see how Nedbank can help your small business reach its

goals call Loderick Lubisi on +27 (0)13 759 4910, send an

email to loderickl@nedbank.co.za or

visit www.nedbank.co.za/business.

Nedbank Ltd Reg No 1951/000009/06. Nedbank Ltd Reg Authorised No 1951/000009/06 financial

Authorised financial services services and registered and registered credit credit provider provider (NCRCP16).


OLD MUTUAL ENABLING

POSITIVE FUTURES

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MEET JANNIE KRIEL

Mpumalanga Provincial Management Board, Chairperson

“ We are at the dawn of the most exciting times in our industry’s

history.”

As the Mpumalanga PMB chairperson I undertake to:

• Drive the concept of collaboration in the Province between the different Business Units.

• Promote interactions where the opportunities of working together can be showcased.

• Help build a culture in Mpumalanga where we approach our clients in a way where they can see and

feel that we work together towards their goals and dreams by having a seamless experience when

transacting between different lines of business.

GET IN TOUCH: email MpumalangaPMB@oldmutual.com

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INVESTMENTS I SAVINGS I PROTECTION

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Old Mutual is a Licensed Financial Services Provider


OLD MUTUAL FOUNDATION CASE STUDY IN MPUMALANGA

In 2015, the Foundation funded R500 000 to Sparrow FET College to provide

accredited training to 20 youth in Fluid Hose Reeling, which is a scarce skill on

many mines.

The funding was specifically intended to provide development opportunities

for youth from smaller provinces. In this case study, 10 youth from both

Mpumalanga and Northern Cape were recruited to receive skills training in

Johannesburg, and afterwards underwent three months’ workplace experience

with prospective employees in their home provinces. After graduation 18 of the

20 youth were placed with mining-related employers back in their respective

provinces. This life-changing opportunity provided the previously unemployed

youth to move into steady employment and a positive future.

established in 2004 and has created eight jobs for the

people around the village (excluding themselves).

The MASISIZANE FUND focuses on enterprise

development and job creation to help alleviate poverty

and improve food security in South Africa. This is

achieved through encouraging entrepreneurship and

capacity development and financing of micro, small

and medium enterprises (SMMEs). Preference is given

to SMMEs with 51% plus ownership by women, youth

or people with disabilities.

Masisizane Fund disbursed R147m worth of funds

in 2016 through soft loans in the three high-impact

sectors and facilitated the creation of 862 jobs against

a target of 625 jobs.

MASISIZANE CASE STUDY IN

MPUMALANGA (Limpopo/Mpumalanga)

Sasesikani Co-operative

Sasesikani Co-op is situated in Mahonisi Village in

the Vhembe District Municipality. The co-op was

The co-op members have gone for training in egg

production, marketing and business management.

Masisizane Fund Loan R2.16m

Number of jobs

17 jobs facilitated

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FOR FINANCIAL INCLUSION?

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Between 2007 and end of 2016 more than 589 808

people were reached through face-to-face workshops

held for communities as well as employees in the public

and private sector.

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participating in our Fin360 programmes.

In Mpumalanga 5 901 individuals were trained in

our Old Mutual On the Money financial education

programmes.

For more information, contact Jannie

Kriel at MpumalangaPMB@oldmutual.com


KEY SECTORS

Overviews of the main economic

sectors of Mpumalanga

Agriculture 30

Mining 34

Forestry and paper 40

Oil and gas 42

Water 44

Manufacturing 48

Transport and logistics 50

Tourism 52

Banking and financial services 54

Development finance

and SMME support 56

Education 58

MPUMALANGA BUSINESS 2017/18


MPUMALANGA BUSINESS 2017/18


OVERVIEW

Agriculture and agri-processing

Agri-parks and an International Fresh Produce Market – helping farmers get to market.

SECTOR INSIGHT

The Land Bank aims to loan

R1-billion to black investors

in agriculture.

• Farmer Production

Support Units are up and

running in two districts.

• Agriculture students will

study in Belarussia.

Mpumalanga is one of South Africa’s most productive and

important agricultural regions and contributes significantly

to the nation’s export basket, with a strong suite

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.

The agricultural sector accounts for 3.3% of the gross domestic

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

(89 000 people). A separate overview of the forestry sector appears

elsewhere in this publication.

Concerted efforts are being made to help emerging farmers grow

their holdings and their output, and to connect them to domestic

and international markets.

The Provincial Government

of Mpumalanga has several programmes

such as the Masibuyele

Emasimini and Masibuyele

Esibayeni (which support subsistence

farmers) and the Mpumalanga

Fortune 40 Young Farmer Incubator

Programme, which plans to

commercialise 20 farms.

When complete, 20 SME and 20

youth-owned co-operatives will

be actively tilling land and making

a business of agriculture. Fifteen

farms have been acquired, and

infrastructure has been provided

on eight so far. Infrastructure in

the form of irrigation, broilers,

tractors, packhouses and fencing

is being provided in the 2017/18

year to the value of R81.9-million.

Seven of these farms have started

production and are selling their

produce to the market.

Agri-parks will be established

in each of Mpumalanga’s three

MPUMALANGA BUSINESS 2017/18

30


OVERVIEW

districts, as part of the R2-billion

plan of the National Department

of Rural Development and Land

Reform to roll out services that

will help farmers get better access

to market and storage facilities.

Support in terms of equipment

hire and information will be available.

Markets where farmers can

sell their produce and processing

plants such as abattoirs will form

part of the parks and farmers will

gain access to market information

and bigger markets through the

Rural Urban Marketing Centre.

Training will also be on offer

at the parks and the aim is to

get local farmers owning 70% of

the facility.

Two Farmer Production

Support Units have already been

developed by the Mpumalanga

Department of Rural

Development in Bushbuckridge

and Nkomazi municipalities. The

Feedlot in Mzinti is complete

while the R20-million packhouse

in Bushbuckridge is almost ready

for use by farmers.

A new concept for the

province is the creation of the

Mpumalanga Fresh Produce

Market, for which there are high

hopes. As Premier David Mabuza

says, “The Mpumalanga Fresh

Produce Market remains a critical

platform to stimulate agricultural

production, downstream beneficiation

and investment opportunities

across the agro-processing

value chain. At the heart of this

initiative is the empowerment

of emerging black farmers to access

domestic and international

markets for their produce.”

The Land and Agricultural

Development Bank of South

Africa (Land Bank) has set a target of R1-billion which it wants to loan

to black investors in agriculture in the 2017/18 financial year. It is targeting

big investments which can lead to commercialisation of farming

operations, as it aims to help transform the sector.

A land rehabilitation project is under way, with the provincial government

in partnership with mining company South32 (formerly BHP

Billiton). This will release more land for agricultural use.

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 for R11-million. An agreement

has been signed for distribution to 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.

Crops

Mpumalanga produces one-million tons of maize from 291 788ha.

About 53 000 tons of wheat and 33 000 tons of sorghum are produced

annually. Soya bean is another major crop: more than half of

South Africa’s soya bean crop is produced in Mpumalanga’s Highveld

31 MPUMALANGA BUSINESS 2017/18


OVERVIEW

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, with Valencias being

the province’s most popular varietal and Nelspruit being the centre

of the sector. Citrus exports to the EU have grown steadily and by

2015 accounted for 40% of total citrus exports (30% oranges, 66%

mandarins, 24% lemons), up from 36% in the prior season.

Avocadoes, litchis, mangoes and bananas thrive in the province.

Hazyview is an important source of bananas, with 20% of South

Africa’s production originating in this district. About 110 000 tons

of avocadoes 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. 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.

Cotton is grown mostly under dryland conditions in Marble Hall.

The province has 1 500ha 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, and 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.

Macadamia nuts have grown in popularity as a crop for export

exponentially in recent years. South Africa’s production of nuts-inshell

(NIS) has grown from about 35 000 tons in 2012 to an estimated

LAND USAGE

Commercial dry land

Commercial irrigation

Subsistence agriculture*

Total land

* 20% of this land is suitable for crop production.

SOURCE: MPUMALANGA PROVINCIAL GOVERNMENT

AREA

1 088 209km²

110 734km²

99 710km²

6 530 390km²

48 000 tons in 2015. More than 95%

of the annual crop is exported.

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.

There are about 450 farmers

growing the nuts and there are

14 cracking factories in South

Africa. The sector employs

about 4 500 people, of which

1 500 are permanent employees.

Barberton and Hazyview are two

prime areas for the nut.

Livestock

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.

Poultry-production companies

have large facilities in the

Standerton-Volksrust area. The

town of Ermelo is the centre of

one of the country’s most important

sheep-farming districts.

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 2017/18

32


Sugar

Training and research

OVERVIEW

Mpumalanga has the secondbiggest

sugar industry in South

Africa, after KwaZulu-Natal.

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 farmers (commercial

and small-scale) deliver sugar cane

to the company. TSB brands are

Selati (sugar) and Molatek (animal

feed). TSB’s three mills (including

Pongola in northern KwaZulu-

Natal) have been able to maintain

volumes because of extensive irrigation

schemes. The company

was bought by RCL Foods in 2014.

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 smallscale

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 44 000ha in the province

is under sugar cane. Commercial

farmers account for 27 000ha,

emerging farmers for 9 500ha and

TSB Sugar has 7 800ha of its own.

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 coop’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.

Nelspruit is the location of one of South Africa’s premier research institutions,

the Agricultural Research Council – Institute for Tropical and Subtropical

Crops (ARC – ITSC) in Nelspruit is a leader in research. Specialising

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

ITSC has had success with avocadoes (new root stock), coffee yields

and banana cultivars.

The Lowveld Agricultural College offers a range of diplomas in

Nelspruit. A new satellite facility is being developed in the Nkangala

District Municipality on the site of the old Marapyane College of

Education near Siybuswa. 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 has campuses at Delmas and Piet

Retief and runs successful training farmers 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.

Lebogang Molefe, who completed a poultry production course at

Buhle in 2015 and now runs a farm with up to 3 000 chickens per cycle,

is quoted on Buhle’s website, “This farm is paying the rent and buying

food for our family of four.”

ONLINE RESOURCES

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

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

Mpumalanga Department of Agriculture and Rural

Development: www.lda.gov.za

National Department of Agriculture, Forestry and Fisheries:

www.daff.gov.za

Perishable Products Export Control Board: www.ppecb.com

South African Cane Growers’ Association:

www.sacanegrowers.co.za

South African Macadamia Growers’ Association:

www.samac.org.za

South African Subtropical Growers’ Association:

www.subtrop.net

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

33 MPUMALANGA BUSINESS 2017/18


OVERVIEW

Mining

Mining companies are set to spend more than R12-billion on four coal projects.

The Witbank coalfields are the most productive in Africa and

Mpumalanga lies at the southern end of the eastern limb of the

Bushveld Igneous Complex.

Four of the biggest mining projects in Mpumalanga have been

flagged as significant in terms of economic impact by research body TIPS:

• Belfast coal, Exxaro, R3.8-billion

• Tweedraai coal, Sasol Mining, R1.4-billion

• Shondoni coal, Sasol Mining, R3-billion

• Impumelelo coal replacement project, Sasol Mining, R4-billion.

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%

SECTOR INSIGHT

Seriti paid R2.3-billion for

Anglo American’s thermal

coal assets.

• Exxaro is developing a

new coal mine at Belfast.

• Plans for a Mining and

Metals Technology Park

have been put on hold.

• Wescoal has acquired

Keaton Energy.

of the world’s platinum, 80% of its

manganese, 73% of its chrome and

MPUMALANGA BUSINESS 2017/18

34


OVERVIEW

45% of its vanadium. Mpumalanga

has significant resources of each of

these minerals, and several others.

Deposits of chromite, magnetite

and vanadium 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 22% to

provincial Gross Domestic Product

and the relative contribution of

the province’s sector to mining

in South Africa has risen in recent

years, from 18% in 1995 to 22% in

2016 (TIPS). Mining’s 103 000 jobs

(in 2014) put the sector third in the

province. Only manufacturing and

construction had slightly higher

numbers.

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.

Uncertainty in the steel sector has meant that the plans of the

Mpumalanga provincial government to develop a Mining and Metals

Technology Park have been put on hold.

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 nearby power stations. The town

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

centre of the coal industry.

In 2015, nearly 30% of national power utility Eskom’s coal (33.3-million

tons) was supplied by Exxaro. Exxaro’s purchase of Total Coal

South Africa (TCSA) has significantly increased the diversified miner’s

coal-mining capacity, and took to six the number of mines the

company has in Mpumalanga.

Exxaro is spending R3.8-billion on a new coal mine at Belfast.

Engineering companies Arup and DRA have signed contracts, and

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

will produce 2.2-million tons for export every year and 500 kilo-tons

of power station coal.

Anglo American has announced it intends narrowing its focus to

diamonds, platinum and copper. The first big move came in April

2017 with the sale of Anglo’s thermal coal operations to Seriti, a

black-owned company led by Mike Teke, the outgoing president of

the Chamber of Mines.

Seriti comprises Masimong Group Holdings (Teke’s company),

Community Investment Holdings Projects, Zungu Investments

Company and Thebe Investment Corporation. Seriti paid

35 MPUMALANGA BUSINESS 2017/18


OVERVIEW

R2.3-billion for the New Vaal, New Denmark and Kriel collieries (all

of which are tied to Eskom delivery contracts), as well as four closed

collieries. Seriti thus became the second-largest provider of thermal

coal to Eskom, supplying almost a quarter of the utility’s annual

coal requirements.

EMPOWERING SUSTAINABLE COMMUNITIES

Exxaro Resources Limited is a South Africa-based diversified

resources groups with interests in the coal, titanium dioxide,

ferrous and energy markets. It is the second-largest coal producer

in South Africa, with current production of almost 40 million

tonnes per annum, and is listed on the JSE Limited, where it

is a constituent of both the Top 40 and Socially Responsible

Investment indices.

Exxaro has six mines in the Mpumalanga region employing over

8 000 employees. In 2016, this region produced over 20 million

tonnes of coal. Arnot, Matla and the Forzando Complex (87%

Exxaro owned) are underground mines. The North Block Complex,

Leeuwpan and Mafube (a joint-venture with Anglo) are open-cut

mines. The Dorstfontein Complex (74% Exxaro owned) has an

open-cut and underground mine. Products include thermal and

metallurgical coal, distributed to the export market and Eskom

power stations. Exxaro is committed to ensuring a safe and

healthy workplace through our sustainability vision of Zero Harm.

Our approach to creating sustainable communities is fully integrative

and not a top-down approach. We empower the community

to create its own vision and work with them to develop

strategies and plans to realise that vision. In 2016, we invested

R6 million on education, R9.2 million on infrastructure and

R1.2 million on skills development in the Mpumalanga region.

Our socio-economic and sustainability programmes power better

lives in our communities.

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 Witbank

area has also been assessed and

will be developed once financing

has been secured.

South32 (spun out of BHP

Billiton) has four collieries and three

processing plants in the province.

The company has 4 860 fulltime

employees and 4 400 contractors.

Former coal trader Wescoal is

increasing its exposure to mining.

It owns and manages the

Khanyisa colliery which supplies

the Eskom power station

at Kendall with coal and it has

acquired Keaton Energy, taking

its output beyond six-million

tons per annum.

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

MPUMALANGA BUSINESS 2017/18

36


OVERVIEW

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 Resources is building a trailing retreatment plant at

Evander which will be completed in 2018.

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.

Platinum group metals

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 plantinum 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 which make the process possible

were obtained from another South African product, the BlueCube

MQi slurry analyser.

Jubilee Platinum 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

37 MPUMALANGA BUSINESS 2017/18


OVERVIEW

owner-operator mine. Reduced

demand for stainless steel in the

recession meant that some of the

furnaces at Machadodorp had to

shut down.

The Manganese Metal

Company (MMC) in Nelspruit is

the largest producer of pure electrolytic

manganese in the world.

MMC is owned by Samancor (51%)

and Bilston Investments owns

the balance.

Nickel

two projects 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.

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 (Machadadorp) in Mpumalanga. The

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

ONLINE RESOURCES

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

Chamber of Mines South Africa: www.chamberofmines.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

Norilsk Nickel has instituted legal

action against the government of

Botswana for allegedly reneging

on a deal to buy its African assets,

which include a 50% in the Nkomati

nickel mine in Mpumalanga.

Botswana’s copper and nickel

producer BCL has been placed in

liquidation by the government.

Some R3.9-billion was recently

spent on the mine, in which ARM

Platinum is the other shareholder.

A full nickel off-take agreement

exists with Metal Trade Overseas

(MTO). A 375ktpm concentrator

plant was 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.

MPUMALANGA BUSINESS 2017/18

38


OVERVIEW

Forestry

Demand for sawn timber is high.

Forestry is ideally suited to help grow the provincial economy of

Mpumalanga in downstream sectors. Beneficiation of timber

and energy generation using biomass are two obvious areas

where there is great potential in a sector that already boasts a

considerable infrastructure.

Forestry accounts for about 8% of Mpumalanga’s Gross Domestic

Product. At national level, the sector makes up 12% of South Africa’s

agricultural GDP while the forestry-products sector contributes about

1% to national GDP. The sector comprises logging, saw-milling, wood

product and pulp and paper manufacture. Pulp and paper are the

main exports, along with sawn lumber, wood chips and wattle extract.

The country is experiencing a shortage of sawn timber with very

few new permits having been issued in recent times due to concerns

about water availability. Most sawn timber in South Africa is used in

the construction sector.

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 in export earnings.

Plans to develop an Agriculture and Forestry Technology Park

are being drawn up by the Provincial Government of Mpumalanga.

The intention is to promote manufacturing and trading opportunities

through the clustering approach. The Department of Economic

SECTOR INSIGHT

York Timbers celebrated its

centenary in 2016.

• An Agriculture and

Forestry Technology Park

is planned.

Development and Tourism

(DEDET) will spend R3.9-million

in the 2017/18 year on statutory

compliance for this park and

other parks, which will include an

incubation element for SMEs.

The Mpumalanga Economic

Growth and Development Path

(MEGDP) intends to expand the

industrial base of the provincial

economy, with a focus on beneficiation,

agri-processing and value

chain development.

York Timbers owns

and operates five processing

plants, including the

MPUMALANGA BUSINESS 2017/18

40


OVERVIEW

largest sawmill and plywood

plants in South Africa and it has

60 470 planted hectares. The

company has expressed interest

in investing heavily in biomass

energy generation. The Industrial

Development Corporation (IDC)

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 Mondi Group has extensive

forestry holdings in the

province and has been working

on introducing a higher degree

of mechanisation in its operations.

Mondi has also 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.

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

better margins.

Global paper giant Sappi has

two large facilities in the province.

The Ngodwana Mill, which

produces its own energy, has

been making dissolving wood

pulp since 2013 when a major

conversion of the plant was

undertaken. About 70% of the mill’s

product is exported. It produces

paper-grade pulp together with

newsprint, containerboard and dissolving wood pulp. It is located near

Sappi’s commercial forestry operations and produces 210 000 tons

of dissolving wood pulp and 380 000 tons of paper (including kraft

linerboard). Sappi’s Lomati Sawmill in Barberton produces kiln-dried

Southern African pine lumber from sawlogs supplied by Sappi Forests.

In 2017, Sappi built a sugar extraction demonstration plant at its

Ngodwana Mill. Findings from the plant will help to improve the process

of extracting bio-renewable chemicals. Sappi is partnering with

Valmet, a Finnish company.

PG Bison has a board plant in Piet Retief. Sonae Rauco runs large

plants at White River and Panbult. Komatiland Forests, a 100%-owned

subsidiary of state company SAFCOL, has big plantations in several

districts. TWK is a R6-billion agricultural company with its headquarters

in Mkhondo (Piet Retief).

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.

Asset management company Global Environment Fund created

Imvelo Forests and in 2015 the company investigated using thermal

imaging to detect fires.

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 has extensive operations in Mpumalanga.

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.

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

Sawmilling South Africa: www.timber.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 2017/18


OVERVIEW

Oil and gas

Gas exploration and gas conversion are growing trends.

International chemicals and energy company Sasol has several large

plants in Mpumalanga and plays a major role in the economy of the

province. The company’s most recent upgrade of two polypropylene

manufacturing plants at Secunda has been completed at a cost of

R1.1-billion.

This follows shortly after a stabilisation scheme valued at R1.3-billion

and is part of the global giant’s ongoing investment in its facilities.

More than 900 jobs were created for the duration of the upgrading

project, which took place while production continued at the plant.

Polypropylene is used in packaging, automotive components and

textiles and demand is growing every year.

In Mpumalanga, Sasol’s assets are Sasol Mining, Secunda Synfuels

Operations, Secunda Chemicals Operations and Sasol Energy.

Products manufactured at the Secunda complex include petroleum,

paraffin, jet fuel, creosote, bitumen, diesel and lubricants. Gas byproducts

include oxygen and acetylene, liquefied petroleum gas (LPG),

and hydrogen and nitrogen. The primary feedstock for synthetic-fuel

production is coal, and the plant is located in the heart of Mpumalanga’s

coalfield region.

SECTOR INSIGHT

Sasol produced a record

volume of synfuel in 2017.

• Tosaco Energy is searching

for gas at three sites.

The Sasol Synfuels refinery,

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.

In July 2017 Sasol announced

that the synfuel plant produced a

record annual output.

Sasol is spending about

R12-billion on expanding the

MPUMALANGA BUSINESS 2017/18

42


OVERVIEW

capacity of the synfuels plant and

on installing an oxygen plant and

more Sasol Advanced Synfuel

(SAS) reactors to convert gas feedstock

to liquid fuel.

Sasol will also likely be a key

player when national government

delivers its new policy on the

biofuel ethanol industry. Statutory

minimums for biodiesel in diesel

and bioethanol in ethanol will

give certainty to producers and

boost production levels across the

country. Sasol is already making

285 000kl of absolute alcohol in

ethanol from sugar fermentation

annually at Secunda. The company’s

sophisticated technology

for deriving liquids and gasses

from coal can easily be converted

to biomass sources such as sugar.

A partnership between forestry

and paper company Sappi

and Finnish company Valmet is

also exploring the potential of

sugar extraction. A demonstration

plant has been built at Sappi’s

Ngodwana Mill.

Gas

A new national focus on gas as

a fuel to supply energy will benefit

the province of Mpumalanga,

which already uses and transports

gas in large quantities. Sasol

and the provincial government

have commissioned an indepth

technical feasibility study for a

Petrochemical Technology Park

to be located in the province.

Three natural gas exploration

permits were awarded to Tosaco

Energy in 2017 for the area between

Amersfoort and Balfour in

the western part of the province.

Tosaco Holdings has a 25% stake in Total SA. Testing in the sandstonerich

area should be complete by 2019. Two methane-gas exploration

rights have been granted to Highland Exploration in the Evander area.

Evidence of national government’s new commitment came in the

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

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

The National Department of Trade and Industry (dti) has established

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 Sasol has shares in one of

the fields there and is involved in processing and transporting the gas

within that country and to South Africa.

Sasol Gas is one of the four Sasol operations at Secunda, supplying

natural gas to Sasol Synfuels and buying Sasol Synfuels’ methane-rich

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

Natural gas is an inexpensive alternative to coal. Although the coal

industry still has life in it (old fields are being rehabilitated and new

ones created – Sasol is itself spending R15-billion on opening three), it

is a finite resource.

Petroleum Agency SA is the state agency responsible for promoting

and regulating exploration and production of oil and gas in the country.

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.

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.

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 National Energy Association: www.sanea.org.za

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

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

Transnet Pipelines: www.transnetpipelines.net

43 MPUMALANGA BUSINESS 2017/18


OVERVIEW

Water

Improving water services is a major priority in Mpumalanga.

SECTOR INSIGHT

Rand Water’s intervention

in Mpumalanga reflects the

company’s strategic shift.

• The town of Wilge will

receive water from the

Kendall power station.

• The Imkomati-Usuthu

Catchment Management

Agency oversees water

usage in the region.

Mpumalanga’s biggest industries of forestry, mining, synfuel

production and power generation are all thirsty

activities. Old mines present problems in that they can

pollute groundwater. This means that Mpumalanga

must 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. It was in that context

that the Rand Water was asked to step in and supply clean water in the

Bushbuckridge area. This was followed by the national government

disbanding the Bushbuckridge Water Board and Rand Water taking

over its operations.

The area of supply covers Bushbuckridge and Mbombela (Ehlanzeni

District Municipality) which has 15 water-treatment works, with a

capacity of 245ml/day. Water is supplied to 1.5-million people in the

areas. The water-treatment works include three large works (Inyaka,

Hoxani and Kanyamazane) and a number of smaller treatment works

(Thulamahashe, Acornhoek and Edinburgh) supply local communities

with drinking water. Expenditure in Bushbuckridge and Mbombela

over the period 2015-2020 is

expected to be R600-million.

This is part of a broader

national strategy whereby bigger

boards such as Rand Water

are growing their footprint, often

replacing the smaller local boards

which lack the skills or resources

to carry out their mandate. Rand

Water, which historically served

greater Johannesburg, now serves

an area which includes Gauteng,

Limpopo (Greater Groblersdal

and Great Mable Hall), North West

(Rustenburg and Madibeng areas),

Mpumalanga and the Northern

Free State (Boundary of the Upper

Vaal Water Management Area).

The national Minister of Water

and Sanitation is the shareholder,

representing the government of

South Africa.

In terms of the National Water

Resource Strategy, catchment

MPUMALANGA BUSINESS 2017/18

44


OVERVIEW

area management agencies

have been established to oversee

water resource management on a

regional basis. The National Water

Act stipulates that water resource

management functions, excluding

those that have national and

strategic implications, will be

carried out by CMAs.

The Imkomati-Usuthu

Catchment Management Agency

covers Mpumalanga, parts of

Limpopo and part of the Kingdom

of Swaziland and is responsible for

water usage issues relating to the

following river catchment areas:

Sabie-Sand, Crocodile, Komati,

Nwaswitsontso and Nwanedzi.

Among the responsibilities of

a CMA are checking that water

is being used lawfully, allocating

resources to parties along a

river (farmers, municipalities or

businesses), long-term planning,

dam safety and checking on the

quality of water.

The Provincial Government of

Mpumalanga has prioritised the

provision of water infrastructure

projects. The premier reported

in 2017 that 327 major projects

had been completed in the previous

financial year (affecting

350 259 households) together

with 165 sanitation projects

(285 065 households), 85 electrification

projects (48 140

households) and 17 solid waste disposal and treatment projects benefiting

146 835 households. In addition, a total of 250km of road and stormwater

infrastructure was constructed and 582 boreholes were

dug across the province. For 2017/18, Mpumalanaga has allocated

R1.9-billion for capital investment in road upgrades, repairing flood

damage and rehabilitation projects.

A bulk water pipeline is being built by the National Department of

Water and Sanitation to deliver water to the community of Carolina in

the Gert Sibande District Municipality. The project will cost R90-million.

The small town of Wilge on the western edge of Mpumalanga near

the border with Gauteng will soon be receiving water from Eskom’s

Kendal power station. The utility’s scientists aim to use chlorine dioxide

rather than chlorine gas to produce potable water. Tests have shown

that the treated water has a better colour and the water meets the

standards set down by the South African Bureau of Standards (SABS).

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

municipalities can now expect bulk water delivery. The Trans Caldeon

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

are laid on, but making the local connections and physically

delivering the water is up to municipalities and water boards.

The De Hoop Dam is the centrepiece in the large Olifants River Water

Resource Development Project (ORWRDP) which is transforming the

water environment 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.

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 also delivered the Komati Water Supply Augmentation

Project: an extra 57-million m³ of water every year is now available

for the the Duvha and Matla power stations in the Witbank area, and

other water users.

To make sure that its big Saiccor Mill receives enough of a steady

supply of water, Sappi has raised 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.

ONLINE RESOURCES

De Hoop Dam: www.dhcw.co.za

Inkomati-Usuthu Catchment Management Agency:

www.iucma.co.za

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

Rand Water: www.randwater.co.za

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

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

45 MPUMALANGA BUSINESS 2017/18


FOCUS

Rand Water

Recognising the intrinsic value of caring as one of

Rand Water’s corporate values.

As an essential services utility, Rand Water was established in

terms of the Water Services Act (Act 108 of 1997). The utility

is accountable to the Minister of Water and Sanitation as an

executive authority.

The water board’s primary function is the provision of bulk-water

supply and sanitation services for the socio-economic benefit of the

people of Mpumalanga Province. This is not limited to, but is specifically

for its existing clients, ie Bushbuckridge Local Municipality and

the City of Mbombela.

Rand Water is also moving ahead and touching people’s lives in

community development through sponsorships and the Rand Water

Foundation.

New ablution facilities at Vukasambe Primary School.

Before renovations.

After renovations.

New hand-basin facilities.

Rand Water has responded well

to society’s call in Mpumalanga by

sponsoring a project at Vukasambe

Primary School to build flushing toilet

facilities fully fitted with modern

fittings. The school is situated in the

rural area of Msogwaba in the City

of Mbombela. This is a school that

is committed to raising awareness

through environmental and water

conservation education campaigns.

Vukasambe Primary currently

has an enrolment of 1 285 learners

and 38 educators, and existing toilets

were not adequate. The school

built new flushing toilets, but Rand

Water discovered that the septic

tank is very small hence it could

only accommodate educators and

grade Rs. The toilets had to be connected

to the existing water systems

and a quality septic tank had

to be installed to meet the growing

demand of learners.

The project objective is to give

back to the communities that we

MPUMALANGA BUSINESS 2017/18

46


FOCUS

serve; to promote the “hand wash”

campaign of the Department of

Water and Sanitation (DWS); to

maximise brand visibility and

awareness across Mpumalanga

and to promote Rand Water as a

caring entity. Also to advance the

National Development Plan (NDP)

on water and sanitation by preventing

loss of life through health

and hygiene.

Further contributions by Rand

Water to communities in the

province include:

• Water Technology Training:

enrolled and trained 46 process

controllers in the financial

year 2016/17. Learners

have successfully completed

the following qualifications

which they will soon be certified

for by Energy and Water

Sector Education and Training

Authority (EWSETA):

1. National Certificate: Water and

Wastewater Process Control

(SAQA ID: 60190) – NQF Level

3 (14 Process Controllers

registered)

2. National Certificate: Water

Purification Process South Africa

Qualification Authority (SAQA ID:

48910) – NQF Level 4 (32 Process

Controllers registered)

One of the main aims for training

process controllers is to allow

Rand Water Mpumalanga to

comply with the requirements of

Regulation 17/813 of the Water

Services Act of 1997 (Act No. 108 of

1997)/Regulation 2834. On reclassification,

the process controllers

should be able to obtain improved

classes according to Schedule III of

the Regulation 17/813.

From National Qualification

Framework (NQF) Level 2-4,

New learners for 2017/18 and Rand Water Skills Development

Facilitator.

various qualifications enable learners to reach their potential without

the lack of formal education being an impassable barrier. In addition, the

qualification provides access to employment opportunities within the

water sector. Water Purification Process Control NQF Level 4 prepares

learners to function independently and in a supervisory capacity on a

water purification plant.

• In the 2017/18 financial year eight learners are going through the

Graduate Internship Programme, preparing employees for job opportunities

for two years.

• Thirteen learners with Grade 12 qualifications are being trained on

the Learnership Process Controller NQF Level 2 for a one-year period.

On completion, they are eligible to enter any employment water

environment with eight skills and experience at the appropriate level.

All of these programmes are implemented to advance the call by government

through the NDP to reduce unemployment in the country

and also to tackle the shortage of technical skills in the province.

CONTACT INFO

Water is everybody’s business

Let’s Save Water

Every Drop Counts!

Mpumalanga physical address: 08 Chief Mgiyeni Khumalo Drive,

White River 1240

Tel: +27 13 750 0399

Website: www.randwater.co.za

47 MPUMALANGA BUSINESS 2017/18


OVERVIEW

Manufacturing

A Russian truck maker is to establish a plant in Mpumalanga.

SECTOR INSIGHT

Steel production has begun

again at Evraz Highveld.

• A macadamia factory has

more than doubled its

floorspace.

Manufacturing in Mpumalanga received a boost with the

news that Minsk Tractor Works is to establish an assembly

plant in the province. The Provincial Government of

Mpumalanga has signed various memoranda of understanding

with foreign governments and provinces.

Russia, Belarus, China and Oman are some of the countries with

which Mpumalanga is engaged. In 2016, the Mpumalanga Economic

Growth Agency (MEGA) hosted the People’s Republic of China Business

Forum which was attended by 19 large Chinese companies.

A key objective of the provincial government’s Mpumalanga

Economic Growth and Development Path (MEGDP) is to expand

the industrial base of the provincial economy. To do this, policymakers

are focusing on beneficiation, agri-processing and valuechain

development.

The two obvious sectors in which these goals can be achieved

are within two of Mpumalanga’s most important sectors, mining and

agriculture. Two industrial technology parks are to be developed in

support of the policy, Agriculture and Forestry, and Petrochemicals.

Plans for a park focussing on mining

and metals have been put on

hold due to uncertainty in the

steel industry.

Silicon Smelters, which has

plants in Mpumalanga and

Limpopo, has asked for a twoyear

negotiated price agreement

(NPA) on electricity, which would

allow it to resume production.

The National Energy Regulator

of South Africa (Nersa) has the

power to grant such exemptions

where the industry is regarded

as strategic.

The National Department of

Trade and Industry has moved

to try to protect the local steel

industry by regulating the use in

the construction sector of locally

produced and manufactured

steel and steel products.

The structural mill of Evraz

Highveld Steel in Witbank was

officially relaunched in June

2017 after ArcelorMittal South

Africa signed a contract to supply

blooms and slabs for the mill

to make into heavy structural

MPUMALANGA BUSINESS 2017/18

48


OVERVIEW

steel. Evraz Highveld went into

business rescue in 2015. The

contract is for two years with

an option to renew for another

year. Alternately, ArcelorMittal

may buy the mill after the

two years.

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 second-largest ferrochrome

producer in the world

with three plants, two of which

are in Mpumalanga: eMalahleni

(Witbank) and Middelburg.

Most manufacturing in the

province takes place in the

Highveld where there is access

to chrome, steel and coal. In

Middelburg, Thos Begbie makes

a variety of products at its heavy

engineering works, pattern shop

and foundry, including copper

castings for export.

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.

Manufacturing accounts for

15% of Mpumalanga’s gross

geographic product (GGP). The

Manganese Metal Company in

Nelspruit 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.

Agri-processing

The Lowveld area supports food and beverage enterprises and timber

processing. Approximately 70% of jobs in the manufacturing sector

are in food and forestry.

A large agri-processing fruit hub is planned for the province. Located

in the Nkomazi Special Economic Zone, the proposed hub, with an estimated

value of R10-billion, would deal with the whole value chain from

growing fruit through to processing, marketing and logistics. Having

manufacturing facilities at the core of the hub will enable a variety of

businesses to be established, both upstream (to supply the plant) and

downstream (to deal with the products of the plant).

The decision by Green Farms Nut Company to expand its macadamia

nut processing factory is in line with these objectives. Production

capacity at the company’s White River plant will increase by 40% and

floor space will be expanded to 10 000m² from the current 3 000m².

Most of South Africa’s 28 000ha of macadamias are in Mpumalanga

and the neighbouring province of Limpopo. In 2016 the area devoted

to the nut increased by 3 870ha, almost twice as much as was newly

planted the year before.

Another company investing in increased capacity is McCain Foods,

which is investing R40-million in upgrading its processing plant

in Delmas.

Standerton has textile-manufacturing 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, RCL 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. Nelspruit and White River have several furnituremanufacturing

concerns.

TSB Sugar runs two large mills and produces fruit juices through

a subsidiary company. Nelspruit is the centre of the province’s foodprocessing

cluster. Hops Hollow Brewery is located at Lydenburg.

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

49 MPUMALANGA BUSINESS 2017/18


OVERVIEW

Transport and logistics

Large coal haulage volumes are typical in Mpumalanga.

SECTOR INSIGHT

The upgrading of the

Komatiepoort Dry Port will

boost trade.

• A new Mpumalanga Traffic

College is in operation.

The Maputo Development Corridor is Africa’s most advanced

spatial development initiative (SDI) comprising road and rail

infrastructure, border posts, and port and terminal facilities. Run

by the Maputo Development Corridor Logistics Initiative (MCLI),

the corridor runs from just outside Pretoria in Gauteng, through

Witbank, Middelburg and Nelspruit in Mpumalanga, and on to Maputo

in Mozambique.

The already successful Maputo Development Corridor will soon

receive a further boost with the upgrading of the Komatiepoort 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 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 road and rail networks

of the province carry large volumes

of coal and delicate fruits

and vegetables for export. In

Cool Ideas Truck Stop

Services We Offer

• Safe Parking for 130 Trucks • Drive through Truck Wash • 24 Hour Diesel Facility

• Halaal Kiosk & Restaurant • Overnight Stop & Restroom

• Our Parking area is secure with 24 hours security

services provided.

• We have an Automated American Wash System

that ensures trucks are washed in record times.

• Our Wash Services Incl. Links, Bins, Engine Wash,

Excessive mud removal, Horse & Trailers, Tri Axles,

Oil Removal. We also do Bakkie Washes.

• Our Diesel services are AVAILABLE 24 HOURS.

We offer HIGH GRADE 50PPM Diesel. We fi ll all

Bakkies and Trucks.

We are also affi liated with

Our Restrooms are neat and spacious with hot water

available. The Laundry consists of 2 Big wash basins,

Ironing & Drying facilities. With these facilities your

Drivers leave Cool Ideas Truck Stop REFRESHED for

their drive.

Situated ONLY 1km from the N4 on the R35 Bethal Road near Middelburg,

Mpumalanga.

Contact Info Office: 083 7880 031

Sujon: 082 3875 449 • lana@coolits.co.za • admin@coolits.co.za

For more information regarding prices, etc please contact us

• The Halaal Kiosk & Restaurant closes at 22:00pm

every day.

• A range of snacks & meals are available, be it

Breakfast, Lunch or Dinner.

• Take aways can be provided on arrangements.

Platters are also available

Payment Methods Accepted

Debit & Credit Cards, Fleet Cards, Cash, EFT

Contact us to make arrangements to Fill or Wash

your Bakkies & Trucks OR EVEN BOTH at a regular

basis & WE can offer you DISCOUNTED PRICING!

To Nelspruit

Middelburg

N4

Pienaardam

1 km from N4

Black Wattle

Colliery

From Witbank

N4

R35 Bethal Rd


OVERVIEW

2016/17 the provincial government

completed 284km of road

reconstruction divided into 16

projects, including some roads

that form part of the coal haulage

network. More than 10 000km of

municipal roads were bladed and

rural gravel roads were upgraded

in high-traffic areas.

The N4 highway runs eastwest

through the province and

is the main arterial and backbone

of the Maputo Corridor. The R36 is

a major north-south route, passing

through Ermelo and connecting

Mpumalanga with Limpopo

in the north, via Middelburg and

KwaZulu-Natal in the south, via

Volksrust. The N17 runs east out

of Johannesburg to Bethal.

The major route eastwards out

of Gauteng towards Mpumalanga

is called the Moloto Corridor. In

the long-term the 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 three years to

upgrade the R573 Moloto road.

Within provincial government,

the implementing agent

for infrastructure projects is the

Department of Public Works, Roads

and Transport. A new Mpumalanga

Traffic College has been built.

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 create between 3 500 and 5 000 jobs.

COOL IDEAS TRUCK STOP

Cool Ideas Truck Stop, situated in Middelburg, Mpumalanga,

just 1km from the N4, was established 10 years ago. Cool Ideas

offers 24-hour diesel sevices and high-grade 50ppm diesel. The

Truck Shop is affiliated to TruckFuelNet and accepts all cards and

fleet merchants.

There is a safe parking area for 130 trucks with 24-hour security, a

Halaal kiosk and restarant, restrooms with showers and a laundry, an

extremely quick and thorough truck and bakkie wash which also

does links, bins and engines.

The vision of Cool Ideas Truck Stop is to be a one-stop for all

trucking and fuel requirements. Through a partnership with

Mobile Health Clinics, medical services are offered for drivers on

a monthly visit. This may become a permanent feature, depending

on the project’s success. Some of the free tests provided are

blood pressure, blood sugar/diabetes, cholesterol, Body Mass

Index testing, malaria, TB and STI screening.

Maintaining a long-term business relationship with our loyal customers

and gaining new customers by offering quality service and

excellent pricing are the goals of this business. Understanding

the need for flexibility in the industry, Cool Ideas Truck Stop

welcomes unique requests or proposals.

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

51 MPUMALANGA BUSINESS 2017/18


OVERVIEW

Tourism

Tourism is a key strategic sector.

SECTOR INSIGHT

A Convention Bureau has

been launched.

• SA Airlink has daily flights

from Kruger Mpumalanga

International Airport to

five destinations.

More than 1.3-million tourists spent R3-billion in

Mpumalanga in 2015. The industry is a key strategic sector

for the growth of the provincial economy and the

creation of jobs.

The Provincial Government of Mpumalanga is looking for private

partners to invest in a range of ambitious projects to boost an already

active sector that has several superb tourism assets, ranging from the

iconic Kruger National Park (one of about 70 parks and reserves) to

bird-watching, music festivals, car rallies and casinos.

The provincial investment agency, MEGA, has packaged many

tourism investment opportunities. 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. Priority projects

that have been registered with National Treasury are the sky walk,

the cable car and the establishment of a luxury hotel at Bourke’s Luck.

A transaction adviser has

been appointed to flesh out

these proposals for investable

tourism products. An example

of infrastructure investment from

the government’s side is the upgrading

of the Manyeleti Resort,

which is ongoing.

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.

Action has also been taken in

trying to attract conferences and

exhibitions with the launch of a

provincial Convention Bureau.

There is a plan to turn the

Graskop Gorge on the Panorama

Tourist Route into an adventure

centre. A lift to transport visitors

into the gorge will open up escarpment

walks, river trails and

MPUMALANGA BUSINESS 2017/18

52


OVERVIEW

tree-top adventures. This will be

supported by a retail complex

(first phase) and a boutique hotel

(second phase), the overall

cost of which is expected to be

about R60-million and lead to

the creation of 46 direct and 32

indirect jobs.

A draft nomination has been

made to UNESCO to register the

Barberton Makhonjwa site as a

World Heritage Site. Geologists

believe that the mountains

of Makhonjwa hold clues to

the earliest history of earth.

Geological tourism is a new concept

which could find rich soil

in Mpumalanga. The mountains

around Barberton are unique and

important in the history of gold

mining. The tourist offering near

Barberton has been branded the

Genesis Route.

Mpumlanga has recently

signed cooperation agreements

with various foreign entities. One

such agreement was signed with

the region of Mogilev (Belarus)

which includes clauses related to

tourism. In the case of the partnership

with the Rural Association

of Tourism (Russia), delegations

from Mpumalanga will visit

Yekaterinburg and tour operators

from the Sverdkovsk region

will in turn tour Mpumalanga in

the course of 2017. Mpumalanga

tourism will also have a presence

at the International Trade

Exhibition in Yekaterinburg.

SA Airlink runs daily flights

from Kruger Mpumalanga

International Airport (Nelspruit)

to Durban, Cape Town,

Johannesburg, Livingstone

(Zimbabwe) and Vilanculos

(Mozambique). The airline also

connects Johannesburg with Phalaborwa and has daily flights from

Cape Town and Johannesburg directly to the Skukuza Airport. Skukuza

Airport is jointly managed by Skukuza Airport Management Company

and SANParks, and allows for quick access to the Kruger National Park

and nearby luxury lodges.

SA Express flies twice a day to Hoedspruit, which is near the

centrally located Orpen Gate to the Kruger Park. The TSB Airport at

Malelane is privately run and does not have lights for night landing

but it hosts car hire offices for both Avis and Budget. Many private

game lodges have airstrips.

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

StayEasys to The Ridge, which is attached to the Ridge Casino in

Witbank (Emalahleni). The Graceland Hotel Casino and Country Club

is in Secunda.

Protea Hotels by Marriott also has six properties in Mpumalanga,

including Protea Hotel Kruger Gate and Hazyview. At White River,

“The Winkler”, offers motivational and group bonding activities such

as outdoor paintball exercises.

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.

ONLINE RESOURCES

Hoedspruit Airport: www.eastgateairport.co.za

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 Services Association: www.satsa.com

53 MPUMALANGA BUSINESS 2017/18


OVERVIEW

Banking and financial services

Several new banks are set to open soon.

Three state entities are merging to create the new Human

Settlements Development Bank: the National Housing Finance

Corporation, the Housing Loan Fund and the National Urban

Reconstruction and Housing Agency. The focus will be on financing

housing for poorer households and for large state-funded housing

projects. Part of the drive is to integrate cities better and to combat

the legacy of the spatial divide that apartheid left behind. Private

sector investment will be sought.

Another state entity, the South African Post Office, received a firstlevel

banking licence for Postbank in 2016. Once a board of directors

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

to grant the full licence. The large geographical footprint of the Post

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

country. By taking these services to rural areas, it is hoped that small

businesses can be more easily created and expanded where they

already exist. The current Postbank focusses on taking deposits and

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

it to open its own loan book.

The intention behind these initiatives is to make banking more

accessible for rural communities and to make finance more readily

available to small and micro-sized businesses. Mpumalanga has

SECTOR INSIGHT

The Human Settlements

Development Bank seeks to

help new home owners.

many rural communities and the

province’s economic planners are

keen to promote small businesses

and co-operatives. Trying to

integrate small business into the

mainstream economy is a major

goal of national and provincial

government in South Africa.

Life insurer MMI Holdings is

also entering a partnership with

African Bank to enable it to start

taking deposits and loaning

money. It intends to establish a

R10-billion loan book.

MPUMALANGA BUSINESS 2017/18

54


OVERVIEW

For many decades, South

Africa had a retail banking Big

Four – Standard Bank, Nedbank,

Absa/Barclays and First National

Bank. All of them have continue

to have a strong presence in the

province, but Capitec Bank has

now also become a major player

in the retail market.

Banks are working hard to

offer products to the previously

unbanked. Nedbank has partnerships

with shops such as Boxer

Stores and Pick n Pay where

customers can have access to

financial services in previously

unserviced areas and also on all

days of the week such as public

holidays and Sundays. Nedbank

also has Approve-it, which allows

customers to accept or

reject an Internet transaction

by cellphone.

Standard Bank’s communitybanking

initiative offers a lowcost

cellphone-banking service.

Retailers can act as agents for the

bank, even in very remote rural

areas. Shops such as Shoprite, Pep

and Spar are connected, as are

certain spazas.

With agriculture being

such an important part of the

Mpumalanga economy, each of

the big retail banks has specialists

in the province and dedicated

units such as Nedbank

Agribusiness.

Another source of funding

for farmers is the Land and

Agricultural Development Bank

of South Africa (Land Bank), a

development-finance institution

that falls under the Ministry

of Finance. Standard Bank has a

new 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 insurance market has become more varied over time, with a

greater variety of products now available to more market segments,

including middle-income earners. A typical example of a specific

product that is responding to new realities is Old Mutual’s iWYZE

medical gap cover, designed to pay the difference between what a

medical aid scheme is willing to pay and what the hospital or doctor

is charging.

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 South Africa: www.insurance.za.org

Land and Agricultural Development Bank of South Africa:

www.landbank.co.za

National Credit Regulator: www.ncr.org.za

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

Post Bank: www.postbank.co.za

Public Investment Corporation: www.pic.gov.za

55 MPUMALANGA BUSINESS 2017/18


OVERVIEW

Development finance and

SMME support

A dedicated SME fund will have R500-million capitalisation.

SECTOR INSIGHT

MEGA supports small

businesses in many ways.

• The National Gazelles is a

national SME accelerator.

A

major plank in the economic planning of the Provincial

Government of Mpumalanga is the revitalisation of township

and rural economies. The 2016/17 financial year saw

R80-million allocated to this progamme to give financial and

technical support to small and medium enterprises. The Mpumalanga

Economic Growth Agency (MEGA) is the implementing agent.

An agreement has been signed by Standard Bank and MEGA tolaunch

an SME Fund with a capitalisation of R500-million. In addition

to a general commitment from the provincial government to purchase

from SMMEs, township enterprises or co-operatives where possible.

Rural enterprises feature strongly in the loan book profile, and there is

significant support for women and youth-owned businesses.

MEGA has also overseen the rehabilitation of industrial premises

in former homelands and formed partnerships with financial

institutions for funding.

A Social Enterprise Model is being introduced to try to link small

enterprises with infrastructure projects. Planners want to see local

businesses building the roads and public buildings in the areas where

those facilities are sited. MEGA has been allocated R10-million to

assist SMMEs and co-operatives

to make the most of opportunities

that this model will create.

Examples of township

businesses supported by the

Department of Economic

Development and Tourism

(DEDT) are:

• tyres: an agreement with

Sumitomo Rubber SA

(Dunlop) to promote local tyre

enterprises

• sanitary towel plant: financial

support for the commissioning

of a sanitary towel plant

by the Ntirhisano Sanitary

Worker Co-operative in

Bushbuckridge (and support

for business development and

access to market)

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 (55%)

• 82 businesses from

Mpumalanga have gradu-

MPUMALANGA BUSINESS 2017/18

56


OVERVIEW

ated from Eskom’s Contractor

Academy

• Eskom will invest a further R30-

million to support cooperatives

• South African Breweries’ national

Kick Start Programme

now has a regional component.

Participants in

the Mpumalanga Youth

Entrepreneurship Programme

can qualify for the Kick Start

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

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 Anglo American’s 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.

National support

The National Department of

Small Business Development

(DSBD) has several programmes

to assist SMEs and co-operatives.

These include:

• The Black Business Supplier

Development Programme, a cost-sharing grant to promote competitiveness

• The Co-operative Incentive Scheme, a 100% grant.

The Small Enterprise Development Agency (Seda) is a subsidiary

of the DSDB and is one of the most active agencies in supporting

entrepreneurs. Seda is not a financial agency, focussing rather on

training and administrative support, although the agency will help

SMEs get in touch with financial bodies.

There are five branch offices of Seda in Mpumalanga and a further

four sites that are 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 small farmers and helps to get products to market.

The National Gazelles is a national SME accelerator jointly funded

by Seda and the DSBD. The aim is to identify and support SMEs with

growth potential across priority sectors aligned with the National

Development Plan and Seda’s SME strategy. Businesses can receive up

to R1-million for training, productivity advice, business skills development

and the purchase of equipment.

The Industrial Development Corporation (IDC) is a strong supporter

of SMMEs either by disbursing loans or by taking minority shares in

enterprises and giving advice. The Development Bank of Southern

Africa (DBSA) is another major funder of public projects.

The major banks all have SMME offerings. Standard Bank runs a

Community Investment Fund and Nedbank offers an enterprise development

product for businesses with turnovers up to R35-million.

Agribusiness and agri-processing are among the three sectors that

are targeted by the Masisizane Fund for loan financing. The others are

franchising/commercial and supply chain/manufacturing. Over and

above loans that are available, training is offered through a Business

Accelerator Programme.

ONLINE RESOURCES

Development Bank of Southern Africa: www.dbsa.org

Gazelles: www.nationalgazelles.org.za

Industrial Development Corporation: www.idc.co.za

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

National Department of Small Business Development:

www.dsbd.gov.za

Shanduka Black Umbrellas: www.shandukablackumbrellas.org

Small Enterprise Development Agency: www.seda.org.za

Small Enterprise Finance Agency: www.sefa.co.za

57 MPUMALANGA BUSINESS 2017/18


OVERVIEW

Education and training

Mpumalanga students will study in Belarus.

SECTOR INSIGHT

Five boarding schools have

been built.

• A new tractor assembly

plant will provide training.

Training

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.

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 schools in the province are in the

“no - fee school” category.

As a result of a treaty with the

Belarus region of Mogilev,

Mpumalanga students will

study at the Belarussian State

Agricultural Academy in agriindustry

fields such as agronomy,

biotechnology and aquaculture.

An agreement between MEGA

and Minsk Tractor Works to build

an assembly plant in Mpumalanga

will also create opportunities for

training welders, machinists and

mechanics.

Many companies in

Mpumalanga spend extensively

on training. Artisans who train at

the Hydra Arc facility in Secunda

are drawn from the company’s

own workforce, from other companies

and from the general population

aiming to learn new skills. In

his 2017 State of the Province address,

Premier David Mabuza noted

that Sasol had agreed to take

on artisans who had completed

training at Hydra Arc. He further

complimented mining company

MPUMALANGA BUSINESS 2017/18

58


OVERVIEW

Exxaro, who are partnering with

the provincial government on skills

development.

Mpumalanga has three

Technical and Vocational

Education and Training (TVET)

Colleges, with an enrolment of

over 36 000. UNISA, the Tshwane

University of Technology and the

Vaal University of Technology

also have satellite campuses in

the province.

The three TVET colleges are:

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.

A number of shorter skills

courses are offered including

automotive repairs and maintenance,

computer practice and

communications management.

Nkangala TVET College

has Civil Engineering and

Building Construction at its CN

Mahlangu campus and Electrical

Infrastructure Construction at

three of its five campuses.

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.

The MRTT’s constructiontraining

facility is accredited as a

Construction Centre of Excellence

and offers courses in brick-laying,

plumbing, carpentry and other

construction-related skills.

The Southern African Wildlife College, offering diplomas 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.

University

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 repurposed 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.

A degree will be offered in Bachelor of Agriculture in Agricultural

Extension and Rural Resource Development. The other two courses

offered in the first phase of the university’s development are a Diploma

in Hospitality Management and a Bachelor of Education in Foundation

Phase Teaching. More qualifications will be rolled out in phases, mechanical

and civil engineering among them. The Department of

Higher Education is in consultation with Sasol to provide chemical and

electrical engineering studies.

MPUMALANGA SCHOOLS

New boarding schools built 5

New secondary schools 6

New school libraries 9

New Grade R facilities 24

Replacement of unsafe schools 28

Basic services and sanitation projects: 2015-2017 222

MPUMALANGA PREMIER STATE OF PROVINCE SPEECH, 2017.

ONLINE RESOURCES

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 Research Foundation: www.nrf.ac.za

Nkangala TVET College: www.nkangalafet.edu.za

Southern African Wildlife College: www.wildlifecollege.org.za

59 MPUMALANGA BUSINESS 2017/18


The Black Management

Forum Mpumalanga

Leading socio-economic transformation through industrialisation.

The Black Management Forum

Mpumalanga held its eMalahleni

branch launch event in June 2017

at The Ridge Casino’s Dome under

the theme, “Leading socio-economic

transformation through

industrialisation.”

The theme is especially pertinent

within the context of eMalahleni,

which has long established itself

as the economic powerhouse of

Mpumalanga Province, which is

underpinned by a thriving mining

and energy sector.

eMalahleni was previously named Witbank (“White

Ridge”) after a large sandstone outcrop where wagon

transport drivers rested. Coal has been mined in

the city since 1890, with its coalfields at one point

having the largest economically viable coal reserves

in South Africa.

Nothing lasts forever and soon the coal reserves

that characterised the economic prosperity of “Coal

City” will be no more. The BMF eMalahleni believes

that a situation with disruptive job losses can be

averted, but things must start happening now. The

best solution is to create new industries that are

labour intensive.

The BMF is ready to lead in developing a conveyor

belt of leadership that will redefine the economic

landscape and thus carve out a new benchmark

of what the quintessential African leader is. This is

the message that was shared to the community of

leaders of eMalahleni and beyond. Those present at

From the left: Mr Solomon Manyaka, Mrs Gugu Dube,

Mr Tshegofatso Mosala, Mr Andile Nqandela, Mr Collen Nakedi,

Dr T Mabogoane, Mrs Thembi Mabogoane, Mr Sabelo Hlongwane,

Mrs Mahlatse Maposa and Mr Lefa Tota.

the event were invited to join the BMF for only R741

per annum. It is money well spent.

The Black Management Forum is a non-racial,

thought leadership organisation founded in 1976,

which has, among others pursuits, taken an interest

in socio-economic transformation of our country

in pursuit of socio-economic justice, fairness and

equity. We define our work around the values of

integrity, Ubuntu, effectiveness and creativity.

The BMF eMalahleni has a rich history. One of the

most influential business leaders and former BMF

President, the late Mr Lot Ndlovu, cut his teeth in this

branch. This is testimony to the developmental and

organisational excellence of the eMalahleni branch.

We believe that more leaders of the calibre of Bra

Lot will continue to emerge.

To join please send an email to

bmfmp@bmfonline.co.za

www.bmfonline.co.za


Mpumalanga

Provincial Government

LISTING

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, Land 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-Mabena

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: http://dcsr.mpg.gov.za

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/

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

61 MPMALANGA BUSINESS 2017/18


LISTING

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/

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

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: www.dsdmpu.gov.za

Provincial Treasury

MEC: Sikhumbuzo 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://treasury.mpg.gov.za

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

Bushbuckridge Local Municipality

Tel: +27 13 799 1851

Fax: +27 13 799 1865

Website: www.bushbuckridge.gov.za

City of Mbombela Local Municipality

Tel: +27 13 759 9111

Fax: +27 13 759 2070

Website: www.mbombela.gov.za

Nkomazi Local Municipality

Tel: +27 13 790 0245 | Fax: +27 13 790 0886

Website: www.nkomazimun.gov.za

Thaba Chweu Local Municipality

Tel: +27 13 235 7300

Fax: +27 13 235 1108

Website: www.tclm.co.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

Chief Albert Luthuli Local Municipality

Tel: +27 17 843 4000

Fax: +27 17 843 4001

Website: www.albertluthuli.gov.za

Dipaleseng Local Municipality

Tel: +27 17 773 0055 | Fax: +27 17 773 0169

Website: www.dipaleseng.gov.za

MPUMALANGA BUSINESS 2017/18

62


LISTING

Govan Mbeki Local Municipality

Tel: +27 17 620 6000 | Fax: +27 17 634 8019

Website: www.govanmbeki.gov.za

Lekwa Local Municipality

Tel: +27 17 712 9600 | Fax: +27 17 712 6808

Website: www.lekwalm.gov.za

Mkhondo Local Municipality

Tel: +27 17 826 8100 | Fax: +27 17 826 3129

Website: www.mkhondo.gov.za

Msukaligwa Local Municipality

Tel: 086 116 7852 | Fax: +27 17 801 3851

Website: www.msukaligwa.gov.za

Pixley Ka Isaka Seme Local Municipality

Tel: +27 17 734 6100 | Fax: 086 630 2209

Website: www.pixleykaseme.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

Dr JS Moroka Local Municipality

Tel: +27 13 973 1101 | Fax: +27 13 973 0974

Website: www.moroka.gov.za

Emakhazeni Local Municipality

Tel: +27 13 253 7600

Fax: +27 13 253 2440

Website: www.emakhazeni.gov.za

eMalahleni Local Municipality

Tel: +27 13 690 6911 | Fax: +27 13 690 6207

Website: www.emalahleni.gov.za

Steve Tshwete Local Municipality

Tel: +27 13 249 7000

Fax: +27 13 243 2550

Website: www.stlm.gov.za

Thembisile Hani Local Municipality

Tel: +27 13 986 9100 | Fax: +27 13 986 0995

Website: www.thembisilehanilm.gov.za

Victor Khanye Local Municipality

Tel: +27 13 665 6000 | Fax: +27 13 665 2913

Email: munadmin@delmasmuni.co.za

Website: www.victorkhanyelm.gov.za

MUNICIPALITIES IN MPUMALANGA

Limpopo

Bushbuckridge

North West

Dr JS Moroka

Thembisile

Nkangala

Emakhazeni

Thaba Chweu

Mbombela

Ehlanzeni

Nkomazi

Mozambique

Gauteng

Victor Khanye

eMalahleni

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

63 MPMALANGA BUSINESS 2017/18


INDEX

INDEX

Black Management Forum (BMF) ...................................................................................................................60

Cool Ideas Truck Stop ....................................................................................................................................... 51

Exxaro....................................................................................................................................................................... 39

Inkomati-Usuthu Catchment Management Agency ................................................................................ 7

Mpumalanga Economic Growth Agency (MEGA)............................................................... 12 - 15, OBC

Nedbank.....................................................................................................................................................5, 22, IBC

Old Mutual..................................................................................................................................................... 24 - 27

Rand Water ............................................................................................................................................................46

Sasol Infrachem.............................................................................................................................................. IFC, 1

Unemployment Insurance Fund (UIF)............................................................................................................. 3

MPUMALANGA BUSINESS 2017/18 64


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