Mpumalanga Business 2017-18 edition

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 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.


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<strong>2017</strong>/<strong>18</strong> EDITION<br />








The core of Sasols Southern African operations<br />

Sasol is an international integrated chemicals and energy company that leverages the<br />

expertise of its 30 100 people working in 33 countries. Sasol develops and commercialises<br />

technologies, and builds and operates world-scale facilities to produce a range of highvalue<br />

product streams, including liquid fuels, chemicals and low-carbon electricity.<br />

The company's Secunda Operations are the core of Sasol's Southern African Operations,<br />

producing a wide range of petroleum products including diesel, petrol and jet fuel, as well<br />

as chemical products which include ethylene, propylene and ammonia value chains.<br />

The operations contribute to job creation, sustainable development and security of supply<br />

in chemicals and energy. The site is host to the following entities: Sasol Mining, Secunda<br />

Synfuels Operations, Secunda Chemicals Operations, Sasol Energy and Group Technology.<br />

Sasol Mining operates ve coal mines in <strong>Mpumalanga</strong> that supply feedstock for the<br />

Secunda Synfuels Operations complex. The coal is mainly used as gasication feedstock<br />

and to generate electricity. As some of these mines are approaching the end of their useful<br />

lives, new developments are underway to ensure continued supply through the company's<br />

Mine replacement programme.<br />

Secunda Synfuels Operations operates the world's only commercial coal-based<br />

synthetic fuels manufacturing facility, producing synthesis gas (syngas) through<br />

coal gasication and natural gas reforming. The operating hub uses proprietary<br />

technology to convert syngas into synthetic fuel components, pipeline gas and feedstock<br />

for producing chemicals.<br />

Secunda Chemicals Operations is a large-scale integrated chemical product<br />

manufacturing facility that produces and adds further value to the Sasol chemicals value<br />

chains. Secunda Chemicals Operations also provides Sites Services, Infrastructure<br />

Maintenance and Product Logistics Services for the Secunda site.<br />

The Energy <strong>Business</strong>, that is key to Sasol's growth aspirations inside and outside South<br />

Africa, manages the marketing and sales of all oil, gas and electricity products in Southern<br />

Africa.<br />

Group Technology manages Sasol's research and development, technology innovation<br />

and management, engineering services and capital project management portfolios. The<br />

function contributes towards Sasol's fuels and chemicals businesses to maintain growth<br />

and sustainability through appropriate technological solutions and services.<br />

As an active corporate citizen, Sasol meaningfully invests in communities close to its<br />

operations with the main objective of sustainably contributing to the broader socioeconomic<br />

development of the <strong>Mpumalanga</strong> province as well as South Africa.

or more information on the company's products, growth projects, nancial results or<br />

social investment initiatives visit www.sasol.com.



<strong>Mpumalanga</strong> <strong>Business</strong> <strong>2017</strong>/<strong>18</strong> Edition.<br />

Introduction<br />

Foreword2<br />

A unique guide to business and investment in <strong>Mpumalanga</strong>.<br />

<strong>Mpumalanga</strong> Economic Growth Agency (MEGA) 12<br />

Driving trade and investment in <strong>Mpumalanga</strong>.<br />

Special features<br />

Regional overview 8<br />

Investments in key sectors are boosting the economy<br />

of the “Place of the Rising Sun”.<br />

Investment incentives 16<br />

A range of incentives are available to investors, companies,<br />

entrepreneurs and co-operatives.<br />

Establishing a business <strong>18</strong><br />

South Africa has eased the barriers to doing business for<br />

locals as well as international companies and individuals.<br />

Investing in <strong>Mpumalanga</strong> 20<br />

Five strategic sectors are primed for profitable investments.<br />

Economic sectors<br />

Agriculture30<br />

Agri-parks and an International Fresh Produce Market –<br />

helping farmers get to market.<br />

Mining34<br />

Mining companies are set to spend more than R12-billion on<br />

four coal projects.<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />





The National Development Plan is a blueprint serving as<br />

a guideline to government departments and state entities<br />

on how they can play a role in government wide efforts<br />

of creating decent work, reducing unemployment and<br />

poverty. The Unemployment Insurance Fund is among<br />

the leading state entities in the implementation of the<br />

provisions of the NDP to address the slow economic<br />

growth, unemployment and poverty in South Africa.<br />

The UIF social investment mandate ensures that,<br />

additional to earning good financial returns, investments<br />

must be supportive of long term economic, social and<br />

adhere to sustainable environmental outcomes. The<br />

investments must also yield a good social return for the<br />

country. These investments have sustained 6 860 jobs of<br />

which 3 024 are permanent, 3 836 are temporary/seasonal<br />

and 195 are new jobs created during the financial year<br />

ending in March 2016.<br />


The UIF investments are contributing to the energy<br />

requirements of South Africa and the investments in the<br />

renewable energy sector provides a total capacity of 192<br />

megawatt of electricity of which 117 megawatt is solar<br />

energy and 27 megawatt is wind generated electricity.<br />

The De Aar project is a shining example of the UIF energy<br />

investments and this project produces 90 megawatt of<br />

electricity and was completed in April 2016. The solar plant<br />

in the area generates enough electricity to power 15 000<br />

houses. Another mainstay project is the Phakwe Group ran<br />

projects undertaken in the Northern and Eastern Cape.<br />


The UIF investments in this regard are undertaken under<br />

the banner of the UIF Agri-Fund in partnership with<br />

Futuregrowth and Day Breaker Poultry Project. The UIF<br />

Agri-Fund has invested in 4 farms situated in Mable Hall<br />

in Limpopo. One of the farms is a cash crop farm spanning<br />

450 hectares. The farm in the last financial year produced<br />

235 hectares of white maize, and cotton was planted in an<br />

area covering 28 hectares.<br />

A further three farms are located in the Saron area in the<br />

Western Cape. In this project a total of 178 hectares has<br />

been used to plant grapes, 37 hectares has been used to<br />

pant citrus fruit. Furthermore, there is potential to plant an<br />

additional 92 hectares of grapes. The Daybreaker Poultry<br />

project operates in Gauteng, Limpopo and <strong>Mpumalanga</strong><br />

and the combined projects have facilities to grow 1.6<br />

million broiler chickens.<br />


The UIF concluded two investments in this regard that<br />

include a BEE hospital manager, Busamed to build a<br />

private hospital in Modderfontein and Fund Manager<br />

Razorite Heatlhcare that focus on the provision of<br />

affordable heathcare facilities that include rehabilitation<br />

and sub-acute centres.<br />

The Modderfontein hospital is a 220 hospital bed with subacute<br />

facilities. This hospital is under construction. While<br />

the RH Fund Manager has concluded seven investments<br />

that include:<br />

• Busamed with four hospital facilities<br />

• HealthMed with two facilities<br />


UIF has invested in three investments that play a role<br />

to unlock access to education. The investments were<br />

concluded with Eduloan – an organisation that provides<br />

financial support to tertiary students and South Point and<br />

Educor organisations that provide student accommodation.<br />

By March 2016, Eduloan had disbursed about R446 986.64<br />

benefiting 34 047 students, whiles South Point provided<br />

about 10 000 student with accommodation.<br />


The UIF has concluded two investments with the aim of<br />

supporting small and medium enterprises. In this regard<br />

the PIC on behalf of UIF has concluded investment deals<br />

with Musa Capital and TOSACO.<br />

The investments will support more than 250 SMMEs across<br />

various sectors inclusive of agriculture and affordable<br />

housing. Musa Capital for example has a supply chain of<br />

over 250 SMME’s that have facilitated the creation of 2 500<br />

jobs.<br />

TOSACO investments is planning to advance capital to<br />

young black entrepreneurs who aspire to own and manage<br />

Total Filling stations around the country.<br />

For more information:<br />

Call: 0800 843 843 or<br />

visit: www.labour.gov.za<br />

MPUMALANGA BUSINESS 20<strong>18</strong>


Forestry and paper 40<br />

Mining companies are set to spend more than R12-billion on<br />

four coal projects.<br />

Oil and gas 42<br />

Gas exploration and gas conversion are growing trends.<br />

Water44<br />

Improving water services is a major priority in <strong>Mpumalanga</strong>.<br />

Manufacturing48<br />

A Russian truck maker is to establish a plant in <strong>Mpumalanga</strong>.<br />

Transport and logistics 50<br />

Large coal haulage volumes are typical in <strong>Mpumalanga</strong>.<br />

Tourism52<br />

Tourism is a key strategic sector.<br />

Banking and financial services 54<br />

Several new banks are set to open soon.<br />

Development finance and SMME support 56<br />

A dedicated SME fund will have R500-million capitalisation.<br />

Education and training 58<br />

<strong>Mpumalanga</strong> students will study in Belarus.<br />

Government<br />

<strong>Mpumalanga</strong> Provincial Government 61<br />

A guide to <strong>Mpumalanga</strong>’s provincial<br />

government departments.<br />

<strong>Mpumalanga</strong> Local Government 62<br />

A guide to district and local municipalities<br />

in <strong>Mpumalanga</strong>.<br />

References<br />

Sector contents 28<br />

Index64<br />

Maps<br />

<strong>Mpumalanga</strong> municipalities map. 63<br />

<strong>Mpumalanga</strong> locator map. 12<br />


North West<br />

Gauteng<br />

Free State<br />

Limpopo<br />

Bushbuckridge<br />

Dr JS Moroka<br />

Thaba Chweu<br />

Ehlanzeni<br />

Thembisile<br />

Nkangala Emakhazeni<br />

Mbombela<br />

Nkomazi<br />

Steve Tshwete<br />

eMalahleni<br />

Victor Khanye<br />

Chief Albert Luthuli<br />

N<br />

Govan Mbeki<br />

Msukaligwa<br />

Swaziland<br />

Dipaleseng<br />

Gert Sibande<br />

Lekwa<br />

Mkhondo<br />

Metropolitan/District Municipality Boundary<br />

Pixley Ka Seme<br />

Local Municipality Boundary<br />

District Municipality<br />

Amajuba<br />

Local Municipality<br />

uMlalazi<br />

Mozambique<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />


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<strong>Mpumalanga</strong> <strong>Business</strong><br />

A unique guide to business, investment and tourism<br />

in <strong>Mpumalanga</strong>.<br />

<strong>Mpumalanga</strong> <strong>Business</strong> <strong>2017</strong>/<strong>18</strong> is the eighth <strong>edition</strong> of this<br />

highly successful publication that has since its launch in<br />

2008 established itself as the premier business and investment<br />

guide to <strong>Mpumalanga</strong> Province. Supported<br />

and utilised by the <strong>Mpumalanga</strong> Economic Growth Agency (MEGA),<br />

<strong>Mpumalanga</strong> <strong>Business</strong> is unique as a business journal that focuses exclusively<br />

on <strong>Mpumalanga</strong>. It has an independently audited and verified<br />

print run of 10 000 copies, an e-book <strong>edition</strong> hosted at www.mpumalangabusiness.co.za,<br />

and a monthly e-newsletter for up-to-date news<br />

and announcements.<br />

Global Africa Network Media, the publisher of <strong>Mpumalanga</strong> <strong>Business</strong>,<br />

specialises in business-to-business print and electronic publications,<br />

producing a series of region-specific annual print journals. Every province<br />

in South Africa is covered by this unique range of journals and<br />

websites, complemented by a national title, South African <strong>Business</strong>, and<br />

the business and investment portal www.globalafricanetwork.com.<br />

Chris Whales<br />

Publisher, Global Africa Network Media<br />

Email: chris@gan.co.za<br />


Publisher: Chris Whales<br />

Publishing director:<br />

Robert Arendse<br />

Editor: John Young<br />

Online editor: Christoff Scholtz<br />

Art director: Brent Meder<br />

Design: Colin Carter<br />

Production: Lizel Olivier<br />

Ad sales: Sydwell Adonis, Nigel<br />

Williams, Gavin van der Merwe,<br />

Sam Oliver, Gabriel Venter,<br />

Siyawamkela Sthunda,<br />

Vanessa Wallace, Jeremy Petersen<br />

and Reginald Motsoahae<br />

Managing director: Clive During<br />

Administration & accounts:<br />

Charlene Steynberg and<br />

Natalie Koopman<br />

Distribution & circulation<br />

manager: Edward MacDonald<br />

Printing: FA Print<br />


<strong>Mpumalanga</strong> <strong>Business</strong> is distributed internationally on outgoing<br />

and incoming trade missions; through the <strong>Mpumalanga</strong><br />

Economic Growth Agency (MEGA); at top national and international<br />

events; through the offices of foreign representatives in<br />

South Africa; as well as nationally and regionally via chambers<br />

of commerce, tourism offices, trade and investment agencies,<br />

airport lounges, provincial government departments, municipalities<br />

and companies.<br />

Member of the Audit Bureau of Circulations<br />


Global Africa Network Media (Pty) Ltd<br />

Company Registration No: 2004/004982/07<br />

Directors: Clive During, Chris Whales<br />

Physical address: 28 Main Road, Rondebosch 7700<br />

Postal address: PO Box 292, Newlands 7701<br />

Tel: +27 21 657 6200 | Fax: +27 21 674 6943<br />

Email: info@gan.co.za | Website: www.gan.co.za<br />

ISSN 2222-3274<br />

COPYRIGHT | <strong>Mpumalanga</strong> <strong>Business</strong> is an independent publication<br />

published by Global Africa Network Media (Pty) Ltd. Full copyright to<br />

the publication vests with Global Africa Network Media (Pty) Ltd. No part<br />

of the publication may be reproduced in any form without the written<br />

permission of Global Africa Network Media (Pty) Ltd. .<br />

PHOTO CREDITS | Pictures supplied by: Sasol Secunda, flickr.com, Anglo<br />

American Brand Toolkit, Wikimedia Commons, SA Tourism, Sheltham Rail,<br />

Trip Advisor (The Green Nut Company), Trip Advisor and Pixabay.<br />

DISCLAIMER | While the publisher, Global Africa Network Media (Pty)<br />

Ltd, has used all reasonable efforts to ensure that the information contained<br />

in <strong>Mpumalanga</strong> <strong>Business</strong> is accurate and up-to-date, the publishers<br />

make no representations as to the accuracy, quality, timeliness, or<br />

completeness of the information. Global Africa Network will not accept<br />

responsibility for any loss or damage suffered as a result of the use of or<br />

any reliance placed on such information.<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />


Inkomati-Usuthu<br />

Catchment<br />

Management Agency<br />

Reforming the way water is allocated.<br />

Water, like other resources in<br />

this country, has historically<br />

been allocated unequally.<br />

The National Water Act, Act<br />

No. 38 of 1998 (the NWA)<br />

and the National Water<br />

Resources Strategy (NWRS)<br />

provide for the correction<br />

of such imbalances in line<br />

with the constitutional<br />

imperatives of the Republic<br />

of South Africa.<br />

Dr Thomas<br />

Gyedu-Ababio,<br />

Chief Executive<br />

Officer<br />

The South African Constitution states that there is a<br />

commitment from the nation to reform in order to<br />

bring about equitable access to all of the country’s<br />

natural resources, including water resources. Water<br />

Allocation Reform (WAR) is deduced from the NWA<br />

as a measure to redress past imbalances, with its<br />

intention to ensure that the nation’s water resources<br />

are protected, used, developed, conserved, managed<br />

and controlled in an effective and efficient manner.<br />

The state is not impeded to effect water reform by<br />

taking legislative and other steps in order to redress<br />

the results of past racial discrimination, so as to achieve<br />

socio-economic equity.<br />

As one of the measures aimed at addressing inequities<br />

in access to water for productive purposes, equitable access<br />

to water, or to the benefits derived from using water,<br />

the Department of Water and Sanitation (DWS) through<br />

the relevant Catchment Management Agencies (CMA)<br />

has embarked on Water Allocation Reform (WAR)<br />

which is critical in eradicating poverty and promoting<br />

economic growth. WAR is the Inkomati-Usuthu<br />

Catchment Management Agency’s key programme for<br />

redressing these inequities. The programme aims to:<br />

• meet the basic human needs of present and future<br />

generations<br />

• promote equitable access to water, redressing past<br />

imbalances based on gender and race<br />

• promote the efficient, sustainable and beneficial<br />

use of water in the public interest<br />

• meet international obligations<br />

• take steps to meet the water needs of HDIs and<br />

the poor, and<br />

• ensure participation by these groups in water<br />

resource management.<br />

The IUCMA has developed a short-and long-term plan<br />

to be used towards achieving WAR. The plan encompasses<br />

a number of actions, including the provision of<br />

financial assistance to resource-poor farmers, compulsory<br />

licensing to support the equitable (re)allocation of<br />

water in any catchment, and the processing of licences<br />

and/or general authorisations to support the uptake<br />

of water by historically disadvantaged individuals.<br />


Inkomati CMA Head Office physical address:<br />

Suite 801, MAXSA Building, 13 Streak Street<br />

(Cnr Streak and Ferreira), Mbombela 1200<br />

Postal address: Private Bag X11214,<br />

Mbombela 1200<br />

Tel: +27 13 753 9000 | Fax: +27 13 753 2786<br />

Email: sylviam@iucma.co.za<br />

Website: www.iucma.co.za




Investments in key sectors are boosting the<br />

economy of the “Place of the Rising Sun”.<br />

<strong>Mpumalanga</strong> has rich and varied mineral<br />

resources and fertile soil that supports<br />

diverse farming operations. South<br />

Africa’s major power stations, three of<br />

which are the biggest in the southern hemisphere,<br />

are in <strong>Mpumalanga</strong>. The building of the new Kusile<br />

power station is one of the biggest infrastructure<br />

projects in the country’s history.<br />

The province also hosts large companies in<br />

the manufacturing sector, with internationally renowned<br />

firms such as Sasol (synthetic fuels and<br />

chemicals) and Xstrata (ferrochrome) having large<br />

operations in <strong>Mpumalanga</strong>.<br />

The province’s rich agricultural produce is used<br />

by companies such as McCain, Nestlé and PepsiCo<br />

and there are also pulp and paper plants (Sappi and<br />

Mondi), fertiliser facilities and textile manufacturing<br />

concerns. The decision by Sappi to start producing<br />

dissolving wood pulp at its Ngodwana Mill has<br />

significantly increased the manufacturing capacity<br />

of the province. York Timbers is a leading forestry<br />

company and the sugar mills and refinery of RCL<br />

Foods (formerly TSB Sugar) are large contributors<br />

to the provincial economy.<br />

Sasol, the integrated oil, gas and chemicals<br />

company, runs several plants at Secunda. Products<br />

manufactured at the complex include synthetic<br />

fuel, petroleum, paraffin, jet fuel, creosote, bitumen,<br />

diesel and lubricants. The primary feedstock<br />

for synthetic-fuel production is coal, and the plant<br />

is located in the heart of <strong>Mpumalanga</strong>’s coalfields.<br />

More than 80% of South Africa’s coal is sourced in<br />

<strong>Mpumalanga</strong>, with the town of Witbank (Emalahleni)<br />

being the centre of the industry. Other minerals<br />

found in the province include gold, platinum<br />

group minerals, chromite, zinc, cobalt, copper, iron<br />

and manganese.<br />

The southern half of the eastern limb of the<br />

platinum-rich Bushveld Igneous Complex runs south<br />

towards the towns of Lydenburg and Machadodorp.<br />

Deposits of chromite, magnetite and vanadium in<br />

this area are the basis of the ferro-alloy complex in<br />

Witbank-Middelburg and Lydenburg. Nkomati Mine<br />

is South Africa’s only pure nickel operation.<br />

Columbus Stainless in Middelburg is a major<br />

producer of stainless steel, while Middelburg<br />

Ferrochrome, Thos Begbie and the Nelspruit-based<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />



Manganese Metal Company are<br />

among other important heavy<br />

industrial companies.<br />

Mining is responsible for<br />

21.8% of provincial GDP, wholesale,<br />

retail, catering and accommodation<br />

is 13%, manufacturing<br />

(12%) and general government<br />

services (10.8%) are other major<br />

contributors. Finance, real estate<br />

and business is 9.4%.<br />

Investment and<br />

infrastructure<br />

The biggest companies in<br />

<strong>Mpumalanga</strong>’s most significant<br />

sectors have been investing<br />

heavily in infrastructure<br />

and operations. Global energy<br />

and chemicals company Sasol<br />

regularly spends tens of millions on upgrades and<br />

improvements at its Secunda complex. The Sasol<br />

Synfuels refinery is the only commercial coal-toliquid<br />

fuel plant in the world and constitutes a key<br />

component in South Africa’s oil and gas sector. In<br />

July <strong>2017</strong> Sasol announced that the synfuel plant<br />

produced a record annual output.<br />

Sasol Mining is also very active in the province:<br />

just three projects with which it is currently engaged<br />

are valued at more than R8-billion. Exxaro Resources<br />

is investing R3.8-billion in a new mine at Belfast.<br />

Another global giant, Sappi, has invested heavily<br />

in the conversion of its massive Ngodwana Mill and<br />

other companies in the paper and forestry field such<br />

as Mondi and York Timbers make large contributions<br />

to the province’s economic growth.<br />

The restarting of the Evraz Highveld steel mill<br />

in <strong>2017</strong> was particularly good news, after the company<br />

went into business rescue two years before.<br />

ArcelorMittal South Africa is supplying feedstock to<br />

the mill and has an option to purchase.<br />

The Provincial Government of <strong>Mpumalanga</strong> has<br />

been talking to several foreign countries about investments<br />

in the province. An assembly plant for<br />

Minsk Tractor Works is one of the outcomes of this<br />

activity, and several agreements relating to training<br />

and trading have been signed. Russia, Belarus, China<br />

and Oman are some of the countries with which<br />

<strong>Mpumalanga</strong> is engaged with. The <strong>Mpumalanga</strong><br />

Economic Growth Agency (MEGA) hosted a People’s<br />

Republic of China <strong>Business</strong> Forum which was attended<br />

by 19 large Chinese companies.<br />

A major goal of the provincial government’s<br />

<strong>Mpumalanga</strong> Economic Growth and Development<br />

Path (MEGDP) is to expand the industrial base of the<br />

provincial economy. The focus is on beneficiation,<br />

agri-processing and value-chain development.<br />

Overseeing infrastructure development in the<br />

province is the responsibility of the Department<br />

of Public Works, Roads and Transport, which must<br />

ensure that various departments’ projects are<br />

coordinated. When it comes to major projects, a new<br />

unit will be established in the Office of the Premier,<br />

the Provincial Project Management Unit.<br />

Several investment projects aimed at providing<br />

infrastructure in the tourism sector have been<br />

put forward by the <strong>Mpumalanga</strong> Economic Growth<br />

Agency (MEGA). <strong>Mpumalanga</strong> will host the <strong>2017</strong><br />

National World Tourism Day in September, an event<br />

that will help drive the province’s aim to turn this<br />

already healthy economic sector into an even bigger<br />

creator of wealth and jobs. Heritage and Cultural<br />

Tourism are two of the focus areas in the provincial<br />

plan because <strong>Mpumalanga</strong> is already a leader in<br />

nature reserves and parks. Following on the international<br />

drive, with a special focus on BRICS countries,<br />

provincial authorities are investigating a tourism<br />

airlift route between Moscow and <strong>Mpumalanga</strong>.<br />

The “TriLand Brand Initiative” aims to join the province<br />

in marketing efforts with neighbours Swaziland<br />

and Mozambique.<br />

A huge investment is being made on the railways<br />

that run to and through <strong>Mpumalanga</strong>. This<br />

includes upgrading the commuter railway linkages<br />

to the province from the province of neighbouring<br />

Gauteng and building new railway lines to transport<br />

coal through Swaziland and on to either Richards Bay<br />

or Maputo in Mozambique.<br />

Information and Communications Technology<br />

(ICT) is another form of infrastructure that has been<br />

receiving investment in recent times. A provincial<br />

ICT Strategy has been developed to coordinate and<br />

9 MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>


implement steps to improve ICT performance in<br />

the province.<br />

Geography<br />

The geography of the province is sharply delineated<br />

by the Drakensberg escarpment, which forms the<br />

dividing line between the western grasslands at high<br />

altitude (Highveld) and the subtropical component<br />

to the east, the Lowveld. The central region of the<br />

province is mountainous, with some very dramatic<br />

landscapes presenting exciting vistas for visitors.<br />

The Lebombo Mountains rise in the east. The area<br />

south of the capital city of Mbombela (Nelspruit),<br />

near Barberton, has some of the world’s oldest rocks<br />

forming the Crocodile River Mountains.<br />

The southern and northern Highveld regions<br />

produce large quantities of field crops such as barley,<br />

soybeans, maize, grain and sorghum. Potatoes also<br />

flourish in this area.<br />

Most of the province receives summer rainfall,<br />

often via thunderstorms. Frost is common on the<br />

Highveld, but is almost absent in the subtropical regions<br />

where fruit, nuts and citrus thrive. Differences<br />

in temperature and rainfall between the Highveld<br />

and Lowveld can be considerable. One of the fastest<br />

growing agricultural sectors is macadamia<br />

nuts. These are cultivated in the Lowveld and are<br />

exported in ever-growing volumes. The Nelspruit<br />

district in the Lowveld is South<br />

Africa’s second-biggest producer<br />

of citrus fruit, while vegetables of<br />

all sorts do well in this area too.<br />

Large parts of the province<br />

are located in the so-called<br />

Middleveld comprising highplateau<br />

grasslands. Forestry operations<br />

are found in central and<br />

south-eastern <strong>Mpumalanga</strong>, but<br />

the heart of this important industry<br />

is around Sabie in the east.<br />

The <strong>Mpumalanga</strong> forestry sector<br />

is one of the most important in the<br />

country: 11% of the total land area<br />

of <strong>Mpumalanga</strong> is covered either<br />

by plantations or natural forests.<br />

Large sugar operations are found in the south-east<br />

of the province.<br />

The province has excellent roads and railway<br />

connections and is well served by airports, airstrips<br />

and heliports. The Kruger <strong>Mpumalanga</strong> International<br />

Airport and Hoedspruit Airport are the province’s<br />

two main airports.<br />

The Maputo Development Corridor is a transportation<br />

corridor comprising road, rail, border posts,<br />

port and terminal facilities, running from Pretoria<br />

in Gauteng through <strong>Mpumalanga</strong> to the Port of<br />

Maputo in Mozambique. The corridor supports<br />

high volumes of cross-border freight services and<br />

aims to boost trade within and beyond the region.<br />

Industry and tourism benefit from the concentration<br />

of resources and ease of transportation. This international<br />

initiative emphasises <strong>Mpumalanga</strong>’s excellent<br />

location as a logistics and transport hub.<br />

The capital city<br />

Mbombela (formerly Nelspruit) is the capital city of<br />

<strong>Mpumalanga</strong> province and the main town of the<br />

Mbombela Local Municipality within the Ehlanzeni<br />

District Municipality.<br />

With a diverse manufacturing sector and as the<br />

headquarters for most financial institutions in the<br />

province, Nelspruit also lies in a strategic position<br />

along the Maputo Development Corridor (MDC).<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />



The MDC, along the national N4<br />

highway, forms the link between<br />

the central Gauteng region and<br />

the Mozambican port of Maputo.<br />

Kruger <strong>Mpumalanga</strong><br />

International Airport is the gateway<br />

to many of the tourist highlights<br />

in the province and the<br />

older aerodrome south of the<br />

city is used by small planes. The<br />

city is also well served by rail links<br />

which connect to Swaziland,<br />

Mozambique and other South<br />

African provinces.<br />

Manganese Metal Company is<br />

the largest producer of pure electrolytic<br />

manganese metal in the<br />

world. The products are created from high-grade<br />

manganese ore extracted by means of a hydrometallurgical<br />

process. Other manufacturing enterprises<br />

in Mbombela include paper and pulp producers<br />

and furniture factories. The new University of<br />

<strong>Mpumalanga</strong> has its headquarters in Mbombela.<br />

The Lowveld Show and the InniBos Arts Festival are<br />

major events that showcase Mbombela’s diversity<br />

and importance as a regional hub.<br />

The fertile Crocodile River Valley ensures good<br />

fruit crops in a typically subtropical climate. Mangoes,<br />

litchis and avocadoes are among the crops grown<br />

most profitably and the town is at the centre of<br />

the regional citrus sector. The Lowveld Botanical<br />

Gardens contains many rare species.<br />

Ehlanzeni District Municipality<br />

Towns: Mbombela, Malelane, Hazyview,<br />

White River, Sabie, Lydenburg, Barberton.<br />

The urban centres are nodes of manufacturing in this<br />

region, which is also at the heart of <strong>Mpumalanga</strong>’s<br />

tourism offering. The Kruger National Park, the Blyde<br />

River Canyon, Bourke’s Luck Potholes, God’s Window<br />

and other attractions make this a highly desirable<br />

place to visit. Citrus, sugar and forestry are the major<br />

agricultural products, all being major contributors to<br />

export earnings. The Sappi paper mill at Ngodwana<br />

is one of the biggest of its kind while RCL Foods<br />

operates two large mills in the east. The population<br />

is about 1.5-million.<br />

Nkangala District Municipality<br />

Towns: Middelburg, Delmas, Kriel,<br />

Emalahleni (Witbank), Emakhazeni (Belfast),<br />

Dullstroom, Emgwenya (Waterval Boven).<br />

This area straddles the north-west. Rural and traditional<br />

in the north-west where the King of the<br />

Ndebele is still revered, there is a concentration of<br />

coal mining and steel production in the industrial<br />

centre. The north-east hosts a lively trout-fishing sector<br />

that includes hatcheries and accommodation for<br />

tourists. Just over a million people live in the district.<br />

Gert Sibande District Municipality<br />

Towns: Bethal, Secunda, Standerton, Ermelo,<br />

Volksrust, Mkhondo (Piet Retief), Carolina.<br />

Power stations abound in this region which stretches<br />

across the southern half of the province and it is<br />

the home of the giant Sasol facilities at Secunda.<br />

The area is also on the top of South Africa’s maize<br />

triangle and agriculture and food processing are<br />

well-developed sectors. Sheep, chicken, sunflower<br />

and sorghum are just some of the areas’s many<br />

agricultural products. Nestlé has a processing plant<br />

at Standerton and Mondi has a pulp and paper facility<br />

in the south-east. About 900 000 people live in<br />

the Gert Sibande district.<br />

11 MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>

<strong>Mpumalanga</strong> –<br />

Place of the Rising Sun<br />

<strong>Mpumalanga</strong>, which is in the north-east of South Africa and borders Mozambique and<br />

Swaziland, offers a strategic location to investors and export-oriented businesses.<br />

The <strong>Mpumalanga</strong> Economic Growy Agency can help you take advantage of this.<br />


The provincial economy is highly diverse<br />

with significant activity in mining, agriculture,<br />

stainless-steel production, pet-<br />


Limpopo<br />

rochemicals, pulp NAMIBIA and paper, manufacturing<br />

and tourism. <strong>Mpumalanga</strong>’s position<br />


and resources make it a valuable transport<br />

Gauteng<br />

North West<br />

and logistics hub.<br />

SWAZI-<br />

LAND<br />

In addition to good infrastructure, abundant<br />

natural resources and fertile soils, the<br />

Free State<br />

KwaZuluprovince<br />

also boasts great scenic beauty,<br />

Natal<br />

making it a desirable place in which Northern to live Cape<br />


and work.<br />

The <strong>Mpumalanga</strong> Economic Growth<br />

Agency (MEGA) facilitates investment in the<br />

province and is always keen to talk to potential<br />

Eastern Cape<br />

investors.<br />

Western Cape<br />






Pretoria<br />

Joburg<br />

eMalahleni Mbombela Nkomazi SEZ<br />

Middleburg Komatipoort Lebombo<br />

Maputo<br />

Africa & Middle East<br />

Asia & Australasia<br />

Europe & the Americas

Maputo Development Corridor<br />

The Maputo Development Corridor (MDC) is a Spatial<br />

Development Initiative linking Gauteng, <strong>Mpumalanga</strong>,<br />

the Nkomazi SEZ and the Port of Maputo in Mozambique.<br />

The MDC incorporates road, rail, the SEZ, border<br />

posts, port and terminal facilities along one of<br />

the most industrialised strips in Southern Africa.<br />

The longest part of the corridor runs through<br />

<strong>Mpumalanga</strong> Province.<br />

Infrastructure along the corridor has been upgraded<br />

and it provides investors and exporters with<br />

good access to the markets of East Africa, the Indian<br />

Ocean rim and East Asia.<br />

The MDC forms part of a greater transport axis<br />

that seeks to link the Atlantic and Indian oceans via<br />

Southern Africa and a network of corridors exists in<br />

the region.<br />

For advice on investing in<br />

or trading with <strong>Mpumalanga</strong><br />

email the <strong>Mpumalanga</strong> Economic Growth<br />

Agency (MEGA)<br />

on trade-invest@mega.gov.za<br />

call them on Tel: +27 13 752 2440<br />

or visit www.mega.gov.za.<br />

Special Economic Zone<br />

The Nkomazi Special Economic Zone (SEZ) is positioned on<br />

the Maputo Development Corridor in the border town of<br />

Komatipoort (which straddles <strong>Mpumalanga</strong> Province and<br />

Mozambique).<br />

The SEZ offers numerous opportunities for those with<br />

export-oriented businesses – bonded warehouse, distribution<br />

centre, container yard, truck stop and petrol depot.<br />

Other identified opportunities in the SEZ include<br />

mining services, mineral beneficiation, agro-processing<br />

(which could leverage the provincial citrus and sugar<br />

industries) and activities relating to import, distribution<br />

and local manufacture of automobiles.<br />

SEZs are a key initiative of the South African government<br />

and the Department of Trade and Industry (the dti) is<br />

making a package of tax incentives available to qualifying<br />

companies located in approved SEZs.


<strong>Mpumalanga</strong> Economic<br />

Growth Agency<br />

The <strong>Mpumalanga</strong> Economic Growth Agency (MEGA) is the official<br />

Economic Development Agency of the Provincial Government of <strong>Mpumalanga</strong>.<br />

The agency aims to foster the sustainable growth<br />

and development of the <strong>Mpumalanga</strong> economy<br />

by attracting investment to the province, facilitating<br />

investment in the province and maximising<br />

the development impact of investment in<br />

the province.<br />

MEGA is an expert on the economy of <strong>Mpumalanga</strong><br />

and the investment opportunities it offers. It uses<br />

its knowledge of the province and alliances with<br />

strategic partners to package investment opportunities<br />

that have the highest probability of success<br />

and is able to provide support to both local and<br />

international investors.<br />

MEGA offers a range of services relating to<br />

trade promotion, investment, funding and<br />

property management.<br />

Trade promotion<br />

• Export and import enquiries<br />

• Market information and contacts<br />

• Advice on customs duties and foreign trade<br />

documentary requirements<br />

• Market research<br />

• Information on regional trade issues and preferential<br />

trade agreements<br />

• Organising foreign trade and investment missions<br />

and exhibitions<br />

• Providing counselling and training to SMMEs<br />

regarding export issues<br />

• Advising local business on technical trade issues<br />

• Promoting and facilitating provincial access to<br />

the Export Marketing and Investment Assistance<br />

Scheme (EMIA)<br />

• Promoting and facilitating provincial access to<br />

the Sector Specific Assistance Scheme (SSAS)<br />

Investment promotion<br />

• Targeting investors via the media, the MEGA website,<br />

incoming and outgoing delegations, foreign<br />

embassies, exhibitions, chambers of commerce<br />

and municipalities<br />

• Facilitating feasibility studies<br />

• Providing investment information, intelligence<br />

and research<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />



• Assisting with obtaining factory space and/<br />

or land<br />

• Advising on commercial statutory requirements<br />

• Facilitating joint ventures via the identification<br />

of local partners<br />

• Providing opportunities for emerging B-BBEE<br />

businesses<br />

• Assisting in identifying potential suppliers of raw<br />

materials and feedstock<br />

• Assisting with the lodging of investment<br />

incentive claims with the dti<br />

Funding<br />

MEGA funds SMMEs and businesses that specialise<br />

in agro-processing, mining, energy, manufacturing,<br />

construction, trade, transport, forestry, services,<br />

government and community. Preference is given<br />

to businesses owned by historically disadvantaged<br />

individuals.<br />

Property management<br />

MEGA owns and manages a number of industrial<br />

and commercial properties around the province.<br />

The Property Development and Management<br />

Programme is geared to build and maintain a<br />

property portfolio that can:<br />

• Generate income<br />

• Help to achieve organisational sustainability<br />

• Facilitate employment creation<br />

Our commitment<br />

MEGA is focused on customer needs and provides<br />

innovative solutions with a high level of service.<br />

Don’t hesitate to make contact if you are interested<br />

in exploring some of the opportunities that<br />

<strong>Mpumalanga</strong> offers.<br />


Mega Head Office<br />

ABSA Square Building,<br />

20 Paul Kruger Street, Mbombela, 1200,<br />

<strong>Mpumalanga</strong>, South Africa<br />

Postal Address: PO Box 5838,<br />

Mbombela, 1200<br />

Tel: +27 13 752 2440<br />

eMail: trade-invest@mega.gov.za<br />

Ekandustria Office (Bronkhorstspruit)<br />

215 Iridium St, Ekandustria,<br />

Bronkhorstspruit, 1028<br />

Tel: + 27 13 933 3421<br />

eMail: phineas.makgopela@mega.gov.za<br />

Secunda Office<br />

Office A, Secunda Town Centre,<br />

Rautenbach Street, Secunda, 2302<br />

Tel: +27 (0) 17 634 8458<br />

eMail: nimrode.dlamini@mega.gov.za<br />

Siyabuswa Office<br />

Siyabuswa Shopping Centre, Main Road,<br />

Siyabuswa, Dr JS Moroka Rural, 0472<br />

Tel: +27 13 973 1049<br />

eMail: lazarus.mahlangu@mega.gov.za<br />

Johannesburg Office<br />

33 Scott Street,Waverley, Johannesburg,<br />

South Africa<br />

Tel: +27 83 469 6899<br />

eMail: liying.dong@mega.gov.za<br />

15 MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>


South African<br />

investment incentives<br />

The South African government, particularly the Department of Trade and Industry,<br />

has a range of incentives available to investors, existing companies,<br />

entrepreneurs and co-operatives across many sectors.<br />

South Africa wishes to diversify its economy<br />

and incentives are an important part of<br />

the strategy to attract investors to the<br />

country. The Department of Trade and<br />

Industry (the dti) is the lead agency in the incentives<br />

programme, which aims to encourage local and<br />

foreign investment into targeted economic sectors,<br />

but the Industrial Development Corporation<br />

(IDC) is the most influential funder of projects across<br />

South Africa.<br />

There a variety of incentives available and these<br />

incentives can broadly be categorised according to<br />

the stage of project development:<br />

• Conceptualisation of the project – including feasibility<br />

studies and research and development<br />

(grants for R&D and feasibility studies, THRIP,<br />

Stp, etc)<br />

• Capital expenditure – involving the creation<br />

or expansion of the productive capacity<br />

of businesses (MCEP, EIP, CIP, FIG, etc)<br />

• Competitiveness enhancement – involving the<br />

introduction of efficiencies and whetting the<br />

competitive edge of established companies and<br />

commercial or industrial sectors (BBSDP, EMIA,<br />

CTCIP, etc)<br />

• Some of the incentives are sector-specific for<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />



example the Aquaculture Development and<br />

Enhancement Programme (ADEP), Clothing<br />

and Textile Competitiveness Improvement<br />

Programme (CTCIP) and the Tourism Support<br />

Programme (TSP).<br />

Manufacturing<br />

Key components of the incentive programme are<br />

the Manufacturing Incentive Programme (MIP) and<br />

the Manufacturing Competitiveness Enhancement<br />

Programme (MCEP). The initial MCEP, launched in<br />

2012, was so successful that it was oversubscribed<br />

with almost 890 businesses receiving funding. A<br />

second phase of the programme was scheduled<br />

for launch in 2016. The grants are not handouts<br />

as the funding covers a maximum of 50% of the<br />

cost of the investment, with the remainder to be<br />

sourced elsewhere.<br />

The Enterprise Investment Programme (EIP)<br />

makes targeted grants to stimulate and promote<br />

investment, BEE and employment creation in the<br />

manufacturing and tourism sectors. Aimed at smaller<br />

companies the maximum grant is R30-million.<br />

Specific tax deductions are permissible for larger<br />

companies investing in the manufacturing sector<br />

under Section 12i of the Income Tax Act.<br />

Other incentives<br />

Other incentives available to investors and existing<br />

businesses in more than one sector include the:<br />

• Technology and Human Resources for Industry<br />

Programme (THRIP)<br />

• Support Programme for Industrial Innovation<br />

(SPII)<br />

• Black <strong>Business</strong> Supplier Development Programme<br />

(BBSDP), which is a cost-sharing grant offered to<br />

black-owned small enterprises<br />

• Critical Infrastructure Programme (CIP) that covers<br />

between 10% and 30% of the total development<br />

costs of qualifying infrastructure<br />

• Co-operative Incentive Scheme, which is a 90:10<br />

matching cash grant for registered primary<br />

co-operatives<br />

• Sector Specific Assistance Scheme, which is a<br />

reimbursable 80:20 cost-sharing grant that can<br />

be applied for by export councils, joint action<br />

groups and industry associations.<br />

Incentives for SMMEs<br />

A lot of emphasis is placed on the potential role of<br />

small, medium and micro enterprises in job creation<br />

and a number of incentives are designed to promote<br />

the growth of these businesses. These include:<br />

• Small Medium Enterprise Development<br />

Programme (SMEDP)<br />

• Isivande Women’s Fund<br />

• Seda Technology Programme (Stp).<br />

Seda is the Small Enterprise Development<br />

Agency, an agency of the Department of Small<br />

<strong>Business</strong> Development that exists to promote<br />

SMMEs.<br />

Trade-related incentives<br />

The Export Marketing and Investment Assistance<br />

(EMIA) Scheme includes support for local businesses<br />

that wish to market their businesses internationally<br />

to potential importers and investors. The scheme<br />

offers financial assistance to South Africans travelling<br />

or exhibiting abroad as well as for inbound potential<br />

buyers of South African goods.<br />


Official South African government incentive<br />

schemes: www.investmentincentives.co.za<br />

Department of Trade and Industry:<br />

www.thedti.gov.za<br />

Industrial Development Corporation:<br />

www.idc.co.za<br />

<strong>Mpumalanga</strong> Economic Growth Agency:<br />

info@mega.gov.za<br />

17 MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>


Establishing a business in SA<br />

South Africa has eased the barriers to doing business in South Africa for<br />

locals as well as international companies and individuals.<br />

South Africa has a sophisticated legal,<br />

regulatory and banking system. Setting<br />

up a business in South Africa is a relatively<br />

straight-forward process with assistance<br />

being offered by organisations such as the Department<br />

of Trade and Industry and provincial investment<br />

agencies like the <strong>Mpumalanga</strong> Economic Growth<br />

Agency (MEGA).<br />

South African law regulates the establishment<br />

and conduct of businesses throughout the country.<br />

Tax, investment incentives, regulations governing<br />

imports, exports and visas are uniform throughout<br />

the country. The particular environment varies from<br />

province to province with regard to the availability<br />

of human and natural resources, the infrastructure<br />

and support services, business opportunities and<br />

the quality of life.<br />

In this respect, MEGA can offer specific advice<br />

about the business environment in the province.<br />

<strong>Business</strong> is regulated by the Companies Act and<br />

the Close Corporation Act, which cover accounting<br />

and reporting requirements. Under new legislation,<br />

no new Close Corporations can be created but CCs<br />

can convert to companies.<br />

Registration of company<br />

The company must be registered with the<br />

Comp anies and Intellectual Properties Commission,<br />

(CPIC) in Pretoria within 21 days of the company being<br />

started. There are a range of administrative procedures<br />

that need to be fulfilled.<br />

Bank account<br />

A business bank account must be opened in the<br />

company’s name with a bank in South Africa.<br />

Registration with the receiver of revenue<br />

• As a Provisional Taxpayer<br />

• As a VAT vendor<br />

• For Pay As You Earn (PAYE) income tax payable<br />

on money earned by employees<br />

• For Standard Income Tax on Employees<br />

Registration with the Department of Labour<br />

<strong>Business</strong>es employing staff will have to contact the<br />

Department of Labour regarding mandatory contributions<br />

to the Unemployment Insurance Fund (UIF).<br />

Register with Compensation Commissioner for<br />

Compensation Fund: Files with the Compensation<br />

Fund (in the Department of Labour) for accident<br />

insurance (Workmen’s Compensation).<br />

Registration with the local authority<br />

Relevant only to businesses dealing in fresh<br />

foodstuffs or health matters.<br />

Other procedures<br />

Checking exchange control procedures (note<br />

that non-residents are generally not subject to<br />

exchange controls except for certain categories of<br />

investment)<br />

• Obtaining approval for building plans<br />

• Applying for industry and export incentives<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />



• Applying for import permits and verifying<br />

import duties payable<br />

• Registering as an exporter if relevant and<br />

applying for an export permit<br />

<strong>Business</strong> entities<br />

There are a variety of forms which businesses can<br />

take, including private and public companies,<br />

personal liability companies , non-profit companies,<br />

state-owned companies and even branches of<br />

foreign companies (or external companies).<br />

Branches of foreign companies fall under section<br />

23 of the Companies Act of 2008 and are required<br />

to register as “external companies” with the<br />

CIPC. An external company is not required to appoint<br />

a local board of directors but must appoint a<br />

person resident in South Africa who is authorised to<br />

accept services of process and any notices served<br />

on the company. It must also appoint a registered<br />

local auditor and establish a registered office in<br />

South Africa.<br />

Patents, trademarks and copyrights<br />

Trademarks (including service marks) are valid for an<br />

initial period of 10 years and are renewable indefinitely<br />

for further 10-year periods. Patents are granted<br />

for 20 years, normally without an option to renew.<br />

The holder of a patent or trademark must pay an annual<br />

fee in order to preserve its validity. Patents and<br />

trademarks may be licensed but where this involves<br />

the payment of royalties to non-resident licensors,<br />

prior approval of the licensing agreement must be<br />

obtained from the dti. South Africa is a signatory to<br />

the Berne Copyright Convention.<br />

Permits for foreign nationals<br />

Work permits<br />

In considering whether or not to grant a work<br />

permit, the Department of Home Affairs will first<br />

evaluate the validity of the offer of employment<br />

by conducting a number of checks to confirm the<br />

following:<br />

• Has the Department of Labour been contacted?<br />

• Has the position been widely advertised?<br />

• Is the prospective employer able to prove that<br />

he or she has tried to find a suitably qualified<br />

local employee prior to hiring a foreigner?<br />

• Is the prospective employee appropriately qualified<br />

and do they have the relevant experience?<br />

<strong>Business</strong> permits<br />

Foreign nationals who wish to establish their own<br />

business or a partnership in South Africa must,<br />

apart from having sufficient funds to support themselves<br />

and their family, be able to invest at least<br />

R2.5-million in the business.<br />

The funds must originate overseas, be transferable<br />

to South Africa and belong to the applicant<br />

(ie emanate from the applicant’s own bank<br />

account). The business must also create jobs for<br />

South African citizens. After six months to a year,<br />

proof will have to be submitted that the business<br />

is employing South African citizens or permanent<br />

residents, excluding family members of<br />

the employer.<br />

Applications for work permits for self-employment<br />

can only be lodged at the South African<br />

Consulate or Embassy in the applicant’s country of<br />

origin. The processing fee is US$<strong>18</strong>6. The applicant<br />

would also have to lodge a repatriation guarantee<br />

with the consulate/embassy equivalent to the price<br />

of a one-way flight from South Africa back to his or<br />

her country of origin.<br />

This guarantee is refundable once the applicant<br />

has either left South Africa permanently or obtained<br />

permanent residence. Any application for<br />

an extension of a business permit may be lodged<br />

locally. The processing fee per passport holder is<br />

R425. Some countries also need to pay R108 per<br />

return visa.<br />

A list of countries to which this applies is<br />

available from the Department of Home Affairs.<br />

MEGA assists investors in applying for the<br />

relevant work permits to conduct their business.<br />

What would MEGA do for you?<br />

MEGA will help new businesses by assisting in<br />

project appraisal and packaging, putting investors<br />

in touch with relevant agencies and government<br />

departments, alerting investors to<br />

investment incentives and setting up joint ventures<br />

where required.<br />

A full description of the services offered by<br />

MEGA is reflected elsewhere in this publication.<br />

19 MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>

Investing in <strong>Mpumalanga</strong><br />

Five strategic sectors are primed for profitable investments.<br />

The iconic tourism destination of Kruger National<br />

Park was the venue for the <strong>Mpumalanga</strong> Investor<br />

Conference in June <strong>2017</strong>. The strategic economic<br />

sectors of the province were in the spotlight:<br />

mining, agriculture, infrastructure, manufacturing<br />

and tourism.<br />

Organised by the <strong>Mpumalanga</strong> Economic Growth<br />

Agency (MEGA), the conference was a concrete step<br />

along the pathway of the province’s new Trade and<br />

Investment Promotion Strategy which, in turn, supports<br />

the <strong>Mpumalanga</strong> Industrial Development<br />

Plan (MIDP).<br />

Projects range from a fresh produce market, road<br />

and rail projects, the rolling out of information and<br />

communications technology (ICT), the building of a<br />

new dam and a hydro-electric plant and the development<br />

of coal and gold mining assets.<br />

MEGA promotes foreign investment into the province,<br />

facilitates trade and supports local businesses.<br />

MEGA is an agency of the Department of Economic<br />

Development and Tourism. The projects listed below<br />

represent a sampling from each of the strategic sectors.<br />

Mining<br />

Somutoa, a firm that specialises in selling and renting<br />

out mining and engineering machinery, is looking<br />

for further capital to expand its products. Somutoa<br />

plans to launch in South Africa a division manufacturing<br />

and supplying shafts, which would be<br />

distributed and shipped into Asia. The capital outlay<br />

required for this project is about R12-million with an<br />

estimated revenue of R36-million.<br />

Secondly, Somutoa intends purchasing SANME<br />

(crushing and screening) machines from Asia for<br />

renting within the mining sector. The machinery<br />

is expected to generate R86.4-million in revenues<br />

and MEGA is looking for investors to invest about<br />

R48-million. Thirdly, Somutoa has identified potential<br />

investors in Asia who will add value to the<br />

mining sector in South Africa. To execute the investments<br />

into mining firms, MEGA is seeking about<br />

R145-million capital investment for Somutoa to implement<br />

its investment strategy that has a potential<br />

to generate about R600-million. In total, MEGA is<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />



keen to talk to investors willing to invest more than<br />

R200-million into Somutoa with an estimated revenue<br />

generation of more than R722-million.<br />

Agriculture<br />

An International Fresh Produce Market is planned<br />

for Mbombela. To support the market, the<br />

<strong>Mpumalanga</strong> government is in the process of establishing<br />

seven Agri-Hubs throughout the province.<br />

The Agri-Hubs will provide a stable supply<br />

of fresh produce to the market. The 248h site is<br />

in Mbombela, the capital city of <strong>Mpumalanga</strong><br />

Province. It is situated within the Maputo<br />

Development Corridor (MDC), which is South<br />

Africa’s leading Spatial Development Initiative (SDI)<br />

linking <strong>Mpumalanga</strong>, Gauteng Province and the<br />

Nkomazi Special Economic Zone with the deepwater<br />

Port of Maputo in Mozambique.<br />

This location enables the fresh produce market<br />

access to the SADC market with 280-million consumers,<br />

EAC market with 140-million consumers<br />

and preferential access to lucrative Asian and EU<br />

markets. The market will serve farmers and customers<br />

from <strong>Mpumalanga</strong>, South Africa, and regional<br />

markets in Swaziland and Mozambique. The<br />

market will accommodate the expected growth<br />

in tropical and subtropical crops and vegetables.<br />

Furthermore, <strong>Mpumalanga</strong> has several mega<br />

agricultural projects in the pipeline.<br />

Infrastructure<br />

The projected increase in platinum and chrome<br />

output in the Steelpoort area at the border of<br />

<strong>Mpumalanga</strong> and Limpopo provinces is putting<br />

increasing strain on road and rail infrastructure.<br />

To address infrastructure concerns, MEGA is now<br />

implementing the KUKA Steelpoort Ropeway Ore<br />

Transporting Project, which will act as a means of<br />

transport of chrome and platinum ores from the<br />

mines to the smelters.<br />

The funding for all Ropeway Projects in<br />

Steelpoort area is likely to be between R50-million<br />

and R350-million. The cost for the Lion Ropeway<br />

Project is projected at R220-million. Aerial ropeways<br />

of over 100km long can be constructed, consisting<br />

of a series of sections linked by automatic<br />

transfer stations.<br />

Manufacturing<br />

Fly ash has become a problem for South Africa’s<br />

power utility Eskom and it is selling some to cement<br />

manufacturers. The remainder is buried or<br />

put in ash ponds. Fly ash is produced by coal powered<br />

power plants during the combustion of coal.<br />

The beneficiation of fly ash in <strong>Mpumalanga</strong>, which<br />

houses most of Eskom’s power stations, is becoming<br />

a lucrative economic opportunity. MEGA is seeking<br />

investors to develop a fly ash beneficiation plant.<br />

The proposed plant would be built in Emalahleni<br />

with an estimated cost of R17-million and the plant<br />

size is projected at 500 tons per nine-hour production<br />

shift. Fly ash is successfully used to enhance<br />

the quality and economy of concrete. Other uses<br />

of fly ash include brickmaking, dam building and<br />

as a cement extender during the manufacturing<br />

of cement.<br />

Tourism<br />

The province attracts over one-million tourists a year<br />

to the natural wonders of the Bourke’s Luck Potholes,<br />

God’s Window, the Blyde River Canyon and the Kruger<br />

National Park.<br />

MEGA is seeking investors to build an exclusive<br />

five-star hotel and top-quality restaurant located at<br />

the Bourke’s Luck Potholes on the Highveld part of<br />

Blyde River Canyon Nature Reserve. There are also<br />

innovative expansion plans for God’s Window, a famous<br />

lookout point on top of a 700m high cliff in the<br />

Drakensburg Mountains overlooking the Lowveld<br />

Escarpment – one of Africa’s prime wildlife and game<br />

reserves destinations. MEGA is planning to build a “Sky<br />

Walk” tourism attraction – an income-generating,<br />

cantilevered glass walkway and viewing deck suspended<br />

off the edge of the God’s Window cliffs, giving<br />

360° panoramic views out and 700 metres down<br />

through a glass floor.<br />

21 MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>


Making it easier to do business with Nedbank<br />

Whole-view <strong>Business</strong> Banking<br />

Loderick Lubisi, Nedbank Provincial General Manager for Retail and<br />

<strong>Business</strong> Banking for <strong>Mpumalanga</strong>, explains how Nedbank can help<br />

business owners in the region.<br />

on what’s most important to you – running your<br />

business,’ says Lubisi.<br />

In line with our new brand proposition encouraging<br />

clients to see money differently, our <strong>Mpumalanga</strong><br />

agriteams are committed to providing key support,<br />

as well as advisory and business services to all<br />

roleplayers involved in the agrispace in both<br />

provinces. We will share our financial expertise<br />

and play a role in advancing profitable, sustainable<br />

practices throughout the agricultural production and<br />

consumption value chain.<br />

There is good news for <strong>Mpumalanga</strong><br />

business owners and entrepreneurs seeking<br />

a unique banking experience: Nedbank<br />

<strong>Business</strong> Banking has business managers,<br />

located across both provinces, specialising<br />

in commercial industries as well as the<br />

agricultural sector.<br />

Lubisi says his team is ready to assist clients with<br />

professional advice, industry-specific solutions<br />

and a comprehensive range of financial products<br />

and services.<br />

‘At Nedbank <strong>Business</strong> Banking we believe that you<br />

need a financial partner who not only understands<br />

your circumstances and aspirations, but also provides<br />

you with relevant solutions and a banking experience<br />

that is hassle-free. This allows you to concentrate<br />

We recognise that farmers today face many<br />

challenges and that to remain competitive they<br />

continually have to improve and adopt best practices<br />

and new technologies.<br />

‘We encourage you to see money differently with<br />

Whole-view <strong>Business</strong> Banking’, says Lubisi.<br />

‘We are also involved in a number of initiatives with<br />

the public sector, ensuring that such partnerships<br />

support provincial government goals in respect of job<br />

creation and growing the economy,’ Lubisi concludes.<br />

Should you be interested in taking your business to the<br />

next level, please call Loderick Lubisi on<br />

+27 (0)13 759 4910, send an email to<br />

loderickl@nedbank.co.za or<br />

visit www.nedbank.co.za.


Nedbank <strong>Business</strong> Bundle is a game changer<br />

with savings and personalised services for<br />

small enterprises<br />

The new <strong>Business</strong> Bundle from Nedbank is a game changer for small<br />

enterprises in <strong>Mpumalanga</strong>, offering the best value for money when<br />

compared to rival offerings.<br />

With the country’s challenging economic<br />

environment, the <strong>Business</strong> Bundle not only<br />

offers you personalised banking services,<br />

but also critical tools to save – with up to<br />

40% savings on monthly banking fees –<br />

contributing directly to the bottomline at a<br />

time when every cent counts.<br />

In line with Nedbank’s new brand proposition to see<br />

money differently, the <strong>Business</strong> Bundle resonates with<br />

the bank’s commitment to do good by promoting<br />

small enterprises.<br />

‘As a bank for small businesses we are committed<br />

to partnering with entrepreneurs to help grow their<br />

businesses. As such, Nedbank is always looking at<br />

ways in which we can help unlock the value of our<br />

clients’ businesses. We support their business growth<br />

journeys by providing practical tools to help them<br />

run their businesses,’ says Loderick Lubisi, Nedbank<br />

Provincial General Manager, Retail and <strong>Business</strong><br />

Banking for <strong>Mpumalanga</strong>.<br />

‘Small businesses are the lifeblood of our economy.<br />

Nedbank has, over the years, instituted various<br />

interventions aimed at giving support to the smallbusiness<br />

sector.’<br />

Trust us to protect your business against<br />

everyday risk<br />

Stella Tedeschi, Regional Manager of Broker<br />

Channels for <strong>Mpumalanga</strong>, says Nedbank<br />

Insurance is not a one-size-fits-all business.<br />

Nedbank Insurance has evolved into a business<br />

that provides integrated insurance to individual<br />

and business clients. Our offering comprises<br />

comprehensive short-term insurance solutions,<br />

life insurance solutions and investments.<br />

Nedbank Insurance provides a comprehensive<br />

offering of short-term products on behalf of<br />

blue-chip insurers. Should you be interested in<br />

expert advice on the type of cover that is exactly<br />

right for your business needs, look no further.<br />

Nedbank has a team of specialists ready to provide you with<br />

information necessary to allow you to make an informed<br />

decision. For more information call Stella Tedeschi on<br />

+27 (0)12 436 7659, send an email to<br />

stellat@nedbankinsurance.co.za,<br />

or visit www.nedbank.co.za.<br />

To see how Nedbank can help your small business reach its<br />

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

email to loderickl@nedbank.co.za or<br />

visit www.nedbank.co.za/business.<br />

Nedbank Ltd Reg No 1951/000009/06. Nedbank Ltd Reg Authorised No 1951/000009/06 financial<br />

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




Old Mutual South Africa (OMSA) is a significant participant in the South African economy and committed to enabling<br />

positive futures for all our stakeholders, especially our customers. We offer a range of financial services that span<br />

investment, life assurance, asset management, banking, healthcare and general insurance.<br />

To ensure that we have our fingers on the pulse of each of our nine provinces, Old Mutual has established leadership<br />

boards in each province to serve as links between the province and our business. These Provincial Management<br />

Boards, or PMBs, are your primary point of contact with us. Together we can ensure that Old Mutual makes a<br />

positive impact on the future of this province and its people.<br />


<strong>Mpumalanga</strong> Provincial Management Board, Chairperson<br />

“ We are at the dawn of the most exciting times in our industry’s<br />

history.”<br />

As the <strong>Mpumalanga</strong> PMB chairperson I undertake to:<br />

• Drive the concept of collaboration in the Province between the different <strong>Business</strong> Units.<br />

• Promote interactions where the opportunities of working together can be showcased.<br />

• Help build a culture in <strong>Mpumalanga</strong> where we approach our clients in a way where they can see and<br />

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

transacting between different lines of business.<br />

GET IN TOUCH: email <strong>Mpumalanga</strong>PMB@oldmutual.com<br />


ombds 7.<strong>2017</strong> L10479.06<br />

Old Mutual is a Licensed Financial Services Provider



As custodians of the savings and<br />

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Old Mutual Corporate provides<br />

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This can also be accessed via<br />

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The Old Mutual Mass Foundation Cluster (MFC) has an<br />

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Old Mutual Personal Finance specialises in providing<br />

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*(In association with Bidvest Bank Ltd)<br />


Old Mutual Wealth is a fully integrated, adviceled<br />

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Old Mutual is deeply committed<br />

to playing a significant role in building<br />

a strong and financially inclusive<br />

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As a responsible business committed to caring for our<br />

communities, the Old Mutual Foundation addresses<br />

socio-economic challenges through investing in:<br />

• Small business development and entrepreneurship<br />

• Youth unemployment through skills training<br />

• Strategic education initiatives<br />

• Caring for vulnerable communities<br />

In 2016 alone the Old Mutual Foundation invested<br />

R25 686 172 in various community projects across our<br />

nation (actual grant funding payments made during<br />

2016).<br />

In <strong>Mpumalanga</strong> the Old Mutual Foundation<br />

invested a total of R3 095 362 across its various<br />

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Our staff are the hearts and hands of Old Mutual<br />

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of staff volunteering efforts we were able to support<br />

122 organisations with funding of R2 015 362.<br />


ombds 7.<strong>2017</strong> L10479.6<br />

Old Mutual is a Licensed Financial Services Provider


In 2015, the Foundation funded R500 000 to Sparrow FET College to provide<br />

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

many mines.<br />

The funding was specifically intended to provide development opportunities<br />

for youth from smaller provinces. In this case study, 10 youth from both<br />

<strong>Mpumalanga</strong> and Northern Cape were recruited to receive skills training in<br />

Johannesburg, and afterwards underwent three months’ workplace experience<br />

with prospective employees in their home provinces. After graduation <strong>18</strong> of the<br />

20 youth were placed with mining-related employers back in their respective<br />

provinces. This life-changing opportunity provided the previously unemployed<br />

youth to move into steady employment and a positive future.<br />

established in 2004 and has created eight jobs for the<br />

people around the village (excluding themselves).<br />

The MASISIZANE FUND focuses on enterprise<br />

development and job creation to help alleviate poverty<br />

and improve food security in South Africa. This is<br />

achieved through encouraging entrepreneurship and<br />

capacity development and financing of micro, small<br />

and medium enterprises (SMMEs). Preference is given<br />

to SMMEs with 51% plus ownership by women, youth<br />

or people with disabilities.<br />

Masisizane Fund disbursed R147m worth of funds<br />

in 2016 through soft loans in the three high-impact<br />

sectors and facilitated the creation of 862 jobs against<br />

a target of 625 jobs.<br />


MPUMALANGA (Limpopo/<strong>Mpumalanga</strong>)<br />

Sasesikani Co-operative<br />

Sasesikani Co-op is situated in Mahonisi Village in<br />

the Vhembe District Municipality. The co-op was<br />

The co-op members have gone for training in egg<br />

production, marketing and business management.<br />

Masisizane Fund Loan R2.16m<br />

Number of jobs<br />

17 jobs facilitated<br />



Financial education is the gateway to financial<br />

inclusion. The Old Mutual Financial Wellbeing<br />

programme promotes financial literacy and awareness<br />

across market segments in line with the Financial Sector<br />

Charter. We offer highly effective financial education<br />

and support programmes to help South Africans take<br />

control of their finances.<br />

Between 2007 and end of 2016 more than 589 808<br />

people were reached through face-to-face workshops<br />

held for communities as well as employees in the public<br />

and private sector.<br />

In 2016 more than 88 000 individuals participated in<br />

our On the Money workshops nationally, with 24 674<br />

participating in our Fin360 programmes.<br />

In <strong>Mpumalanga</strong> 5 901 individuals were trained in<br />

our Old Mutual On the Money financial education<br />

programmes.<br />

For more information, contact Jannie<br />

Kriel at <strong>Mpumalanga</strong>PMB@oldmutual.com


Overviews of the main economic<br />

sectors of <strong>Mpumalanga</strong><br />

Agriculture 30<br />

Mining 34<br />

Forestry and paper 40<br />

Oil and gas 42<br />

Water 44<br />

Manufacturing 48<br />

Transport and logistics 50<br />

Tourism 52<br />

Banking and financial services 54<br />

Development finance<br />

and SMME support 56<br />

Education 58<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>


Agriculture and agri-processing<br />

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


The Land Bank aims to loan<br />

R1-billion to black investors<br />

in agriculture.<br />

• Farmer Production<br />

Support Units are up and<br />

running in two districts.<br />

• Agriculture students will<br />

study in Belarussia.<br />

<strong>Mpumalanga</strong> is one of South Africa’s most productive and<br />

important agricultural regions and contributes significantly<br />

to the nation’s export basket, with a strong suite<br />

in fruit and nuts.<br />

Big companies cultivate maize, sugar, timber, vegetables,<br />

fruit and tea on a large scale and are active in the raising of poultry<br />

and cattle. Large commercial farmers account for the bulk of crop and<br />

livestock production.<br />

The agricultural sector accounts for 3.3% of the gross domestic<br />

product (GDP) of <strong>Mpumalanga</strong> and for nearly 12% of employment<br />

(89 000 people). A separate overview of the forestry sector appears<br />

elsewhere in this publication.<br />

Concerted efforts are being made to help emerging farmers grow<br />

their holdings and their output, and to connect them to domestic<br />

and international markets.<br />

The Provincial Government<br />

of <strong>Mpumalanga</strong> has several programmes<br />

such as the Masibuyele<br />

Emasimini and Masibuyele<br />

Esibayeni (which support subsistence<br />

farmers) and the <strong>Mpumalanga</strong><br />

Fortune 40 Young Farmer Incubator<br />

Programme, which plans to<br />

commercialise 20 farms.<br />

When complete, 20 SME and 20<br />

youth-owned co-operatives will<br />

be actively tilling land and making<br />

a business of agriculture. Fifteen<br />

farms have been acquired, and<br />

infrastructure has been provided<br />

on eight so far. Infrastructure in<br />

the form of irrigation, broilers,<br />

tractors, packhouses and fencing<br />

is being provided in the <strong>2017</strong>/<strong>18</strong><br />

year to the value of R81.9-million.<br />

Seven of these farms have started<br />

production and are selling their<br />

produce to the market.<br />

Agri-parks will be established<br />

in each of <strong>Mpumalanga</strong>’s three<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />



districts, as part of the R2-billion<br />

plan of the National Department<br />

of Rural Development and Land<br />

Reform to roll out services that<br />

will help farmers get better access<br />

to market and storage facilities.<br />

Support in terms of equipment<br />

hire and information will be available.<br />

Markets where farmers can<br />

sell their produce and processing<br />

plants such as abattoirs will form<br />

part of the parks and farmers will<br />

gain access to market information<br />

and bigger markets through the<br />

Rural Urban Marketing Centre.<br />

Training will also be on offer<br />

at the parks and the aim is to<br />

get local farmers owning 70% of<br />

the facility.<br />

Two Farmer Production<br />

Support Units have already been<br />

developed by the <strong>Mpumalanga</strong><br />

Department of Rural<br />

Development in Bushbuckridge<br />

and Nkomazi municipalities. The<br />

Feedlot in Mzinti is complete<br />

while the R20-million packhouse<br />

in Bushbuckridge is almost ready<br />

for use by farmers.<br />

A new concept for the<br />

province is the creation of the<br />

<strong>Mpumalanga</strong> Fresh Produce<br />

Market, for which there are high<br />

hopes. As Premier David Mabuza<br />

says, “The <strong>Mpumalanga</strong> Fresh<br />

Produce Market remains a critical<br />

platform to stimulate agricultural<br />

production, downstream beneficiation<br />

and investment opportunities<br />

across the agro-processing<br />

value chain. At the heart of this<br />

initiative is the empowerment<br />

of emerging black farmers to access<br />

domestic and international<br />

markets for their produce.”<br />

The Land and Agricultural<br />

Development Bank of South<br />

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

to black investors in agriculture in the <strong>2017</strong>/<strong>18</strong> financial year. It is targeting<br />

big investments which can lead to commercialisation of farming<br />

operations, as it aims to help transform the sector.<br />

A land rehabilitation project is under way, with the provincial government<br />

in partnership with mining company South32 (formerly BHP<br />

Billiton). This will release more land for agricultural use.<br />

Another public-private partnership will allow easier access to market<br />

for the chickens produced at the eight poultry houses which the<br />

provincial government is to construct for R11-million. An agreement<br />

has been signed for distribution to Early Bird Chicken, AFGRI and Super<br />

Grand Distribution. This scheme forms part of a larger effort to integrate<br />

the poultry value chain, which is being led by the Agricultural Research<br />

Council (ARC) in partnership with the <strong>Mpumalanga</strong> Department of<br />

Rural Development and Land Reform.<br />

Crops<br />

<strong>Mpumalanga</strong> produces one-million tons of maize from 291 788ha.<br />

About 53 000 tons of wheat and 33 000 tons of sorghum are produced<br />

annually. Soya bean is another major crop: more than half of<br />

South Africa’s soya bean crop is produced in <strong>Mpumalanga</strong>’s Highveld<br />

31 MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>


areas. National annual production levels are between 400 000 and<br />

500 000 tons of soya bean.<br />

<strong>Mpumalanga</strong> accounts for about 21% of South Africa’s citrus<br />

production and a third of its export volumes, with Valencias being<br />

the province’s most popular varietal and Nelspruit being the centre<br />

of the sector. Citrus exports to the EU have grown steadily and by<br />

2015 accounted for 40% of total citrus exports (30% oranges, 66%<br />

mandarins, 24% lemons), up from 36% in the prior season.<br />

Avocadoes, litchis, mangoes and bananas thrive in the province.<br />

Hazyview is an important source of bananas, with 20% of South<br />

Africa’s production originating in this district. About 110 000 tons<br />

of avocadoes are produced in South Africa every year, with a high<br />

proportion of those coming from <strong>Mpumalanga</strong>. About 45% of the<br />

crop is exported.<br />

Deciduous fruits are cultivated in smaller quantities. The village<br />

of Tonteldoos north of Dullstroom hosts an annual peach festival<br />

that includes liquid marvels such as peach mampoer. About 15 000<br />

tons of table grapes are produced in the province annually and<br />

<strong>Mpumalanga</strong> produces its own wine.<br />

A specialist fruit that does well in the province is the marula. The<br />

marula fruit makes a popular beer and is used in the production of<br />

a liqueur that has done well on the international market.<br />

Potatoes and potato seed thrive in <strong>Mpumalanga</strong>’s fertile soil, with<br />

one operation in the higher reaches of the Drakensberg range producing<br />

more than 2 000 tons of seed every year. Tomatoes, onions<br />

and cabbage are also farmed profitably.<br />

Cotton is grown mostly under dryland conditions in Marble Hall.<br />

The province has 1 500ha of dryland under cotton.<br />

Much of South Africa’s total annual production of about<br />

34-million kilograms of tobacco, especially Virginia tobacco, takes<br />

place in the north-western parts of <strong>Mpumalanga</strong>, and in neighbouring<br />

Limpopo. Several of <strong>Mpumalanga</strong>’s tobacco farmers have<br />

switched to table grapes or citrus in recent years.<br />

Crops produced for export in <strong>Mpumalanga</strong> include cut flowers,<br />

pot plants and nursery plants.<br />

Macadamia nuts have grown in popularity as a crop for export<br />

exponentially in recent years. South Africa’s production of nuts-inshell<br />

(NIS) has grown from about 35 000 tons in 2012 to an estimated<br />


Commercial dry land<br />

Commercial irrigation<br />

Subsistence agriculture*<br />

Total land<br />

* 20% of this land is suitable for crop production.<br />


AREA<br />

1 088 209km²<br />

110 734km²<br />

99 710km²<br />

6 530 390km²<br />

48 000 tons in 2015. More than 95%<br />

of the annual crop is exported.<br />

International production of<br />

the nut has been expanding<br />

by 20% year-on-year for some<br />

time, and this trend is expected<br />

to continue for at least another<br />

five years, driven by strong<br />

demand from Asia.<br />

There are about 450 farmers<br />

growing the nuts and there are<br />

14 cracking factories in South<br />

Africa. The sector employs<br />

about 4 500 people, of which<br />

1 500 are permanent employees.<br />

Barberton and Hazyview are two<br />

prime areas for the nut.<br />

Livestock<br />

About 14% of the province’s<br />

land area is natural grazing land.<br />

Products include beef, mutton,<br />

poultry, dairy and wool.<br />

Dairy and poultry do well in<br />

the southern parts of the province.<br />

Poultry-production companies<br />

have large facilities in the<br />

Standerton-Volksrust area. The<br />

town of Ermelo is the centre of<br />

one of the country’s most important<br />

sheep-farming districts.<br />

The province is home to one<br />

of South Africa’s largest pig<br />

farms, Kanhym, near Middelburg.<br />

Karan Beef has recently built a<br />

large abattoir in Balfour to service<br />

its massive feedlot in neighbouring<br />

Gauteng. Up to 1 800<br />

head of cattle can be processed<br />

every day at the facility. Goats are<br />

an important source of protein<br />

and milk for many of the rural<br />

population and the raising of<br />

goats is widespread, especially in<br />

traditional areas.<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />


Sugar<br />

Training and research<br />


<strong>Mpumalanga</strong> has the secondbiggest<br />

sugar industry in South<br />

Africa, after KwaZulu-Natal.<br />

TSB Sugar runs three mills in<br />

the Lowveld region, two of which<br />

have refining capacity, and employs<br />

about 4 700 people. More<br />

than 1 400 farmers (commercial<br />

and small-scale) deliver sugar cane<br />

to the company. TSB brands are<br />

Selati (sugar) and Molatek (animal<br />

feed). TSB’s three mills (including<br />

Pongola in northern KwaZulu-<br />

Natal) have been able to maintain<br />

volumes because of extensive irrigation<br />

schemes. The company<br />

was bought by RCL Foods in 2014.<br />

TSB Sugar has been increasing<br />

the amount of cane it takes from<br />

community trusts and small-scale<br />

growers. The proportion of land<br />

used to harvest cane from smallscale<br />

growers on community land<br />

has grown to 15%, with 64% coming<br />

from commercial farmers and<br />

community trusts and 21% from<br />

TSB’s own land.<br />

About 44 000ha in the province<br />

is under sugar cane. Commercial<br />

farmers account for 27 000ha,<br />

emerging farmers for 9 500ha and<br />

TSB Sugar has 7 800ha of its own.<br />

The Akwandze Fund, an initiative<br />

of the Liguguletfu Cooperative<br />

and TSB Sugar, makes loans for<br />

small-scale farmers. Liguguletfu<br />

came into existence with small<br />

investments from each of the coop’s<br />

889 members, which eventually<br />

amounted to R5-million in<br />

share equity. TSB Sugar matched<br />

this rand-for-rand. Farmers must<br />

join a savings scheme to belong,<br />

and Akwandze has more than<br />

1 200 customers.<br />

Nelspruit is the location of one of South Africa’s premier research institutions,<br />

the Agricultural Research Council – Institute for Tropical and Subtropical<br />

Crops (ARC – ITSC) in Nelspruit is a leader in research. Specialising<br />

in crop varieties and research into the origin and cure of diseases, the<br />

ITSC has had success with avocadoes (new root stock), coffee yields<br />

and banana cultivars.<br />

The Lowveld Agricultural College offers a range of diplomas in<br />

Nelspruit. A new satellite facility is being developed in the Nkangala<br />

District Municipality on the site of the old Marapyane College of<br />

Education near Siybuswa. The college offers three-year diplomas and<br />

two-year certificate courses in crop production and animal husbandry.<br />

Some students go on to study further aspects of agriculture at the<br />

University of the North West.<br />

The Buhle Farmers’ Academy has campuses at Delmas and Piet<br />

Retief and runs successful training farmers for existing farmers. Trainers<br />

like Mposa Agricultural Consultants provide SETA-accredited courses<br />

and the academy claims that just 8% of its graduates have remained<br />

subsistence farmers, with 53% producing at a commercial level. Funders<br />

include Monsanto Fund (USA), the Maize Trust, Standard Bank, Tongaat<br />

Hulett Starch and Omnia.<br />

Lebogang Molefe, who completed a poultry production course at<br />

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

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

food for our family of four.”<br />


ARC-Institute for Tropical and Subtropical Crops:<br />

www.arc.agric.co.za<br />

Citrus Growers Association: www.cga.co.za<br />

Deciduous Fruit Producers Trust: www.dfpt.co.za<br />

Fresh Produce Exporters’ Forum: www.fpef.co.za<br />

<strong>Mpumalanga</strong> Department of Agriculture and Rural<br />

Development: www.lda.gov.za<br />

National Department of Agriculture, Forestry and Fisheries:<br />

www.daff.gov.za<br />

Perishable Products Export Control Board: www.ppecb.com<br />

South African Cane Growers’ Association:<br />

www.sacanegrowers.co.za<br />

South African Macadamia Growers’ Association:<br />

www.samac.org.za<br />

South African Subtropical Growers’ Association:<br />

www.subtrop.net<br />

South African Sugar Association: www.sugar.org.za<br />

33 MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>


Mining<br />

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

The Witbank coalfields are the most productive in Africa and<br />

<strong>Mpumalanga</strong> lies at the southern end of the eastern limb of the<br />

Bushveld Igneous Complex.<br />

Four of the biggest mining projects in <strong>Mpumalanga</strong> have been<br />

flagged as significant in terms of economic impact by research body TIPS:<br />

• Belfast coal, Exxaro, R3.8-billion<br />

• Tweedraai coal, Sasol Mining, R1.4-billion<br />

• Shondoni coal, Sasol Mining, R3-billion<br />

• Impumelelo coal replacement project, Sasol Mining, R4-billion.<br />

Coal, platinum, gold and nickel are the province’s major mineral<br />

resources and all of these minerals are still in demand, even if coal<br />

and platinum have experienced roller-coaster price fluctuations in<br />

recent months.<br />

South Africa no longer enjoys world dominance in gold production –<br />

both China and the US produce more ounces – but it does produce 75%<br />


Seriti paid R2.3-billion for<br />

Anglo American’s thermal<br />

coal assets.<br />

• Exxaro is developing a<br />

new coal mine at Belfast.<br />

• Plans for a Mining and<br />

Metals Technology Park<br />

have been put on hold.<br />

• Wescoal has acquired<br />

Keaton Energy.<br />

of the world’s platinum, 80% of its<br />

manganese, 73% of its chrome and<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />



45% of its vanadium. <strong>Mpumalanga</strong><br />

has significant resources of each of<br />

these minerals, and several others.<br />

Deposits of chromite, magnetite<br />

and vanadium are the<br />

basis of the ferro-alloy complex<br />

in Witbank-Middelburg (in the<br />

District Municipality of Nkangala)<br />

and Lydenburg (Mashishing).<br />

Nkomati Mine is South Africa’s<br />

only pure-nickel operation. The<br />

province’s coalfields are in the<br />

south and west of the province.<br />

Mining contributes 22% to<br />

provincial Gross Domestic Product<br />

and the relative contribution of<br />

the province’s sector to mining<br />

in South Africa has risen in recent<br />

years, from <strong>18</strong>% in 1995 to 22% in<br />

2016 (TIPS). Mining’s 103 000 jobs<br />

(in 2014) put the sector third in the<br />

province. Only manufacturing and<br />

construction had slightly higher<br />

numbers.<br />

In terms of new mining legislation,<br />

mining licences now include<br />

a provision whereby some<br />

of the resources mined must be<br />

made available to local manufacturers.<br />

The idea behind the<br />

Mineral and Petroleum Resources<br />

Development Act is to boost the<br />

minerals beneficiation sector, which, it is believed, will increase employment<br />

levels and stimulate economic growth.<br />

Uncertainty in the steel sector has meant that the plans of the<br />

<strong>Mpumalanga</strong> provincial government to develop a Mining and Metals<br />

Technology Park have been put on hold.<br />

Coal<br />

<strong>Mpumalanga</strong> accounts for 83% of South Africa’s coal production<br />

and is the third-largest coal exporting region in the world. The<br />

coalfields of the province feed nearby power stations. The town<br />

of eMalahleni (Witbank), in Nkangala District Municipality, is at the<br />

centre of the coal industry.<br />

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

tons) was supplied by Exxaro. Exxaro’s purchase of Total Coal<br />

South Africa (TCSA) has significantly increased the diversified miner’s<br />

coal-mining capacity, and took to six the number of mines the<br />

company has in <strong>Mpumalanga</strong>.<br />

Exxaro is spending R3.8-billion on a new coal mine at Belfast.<br />

Engineering companies Arup and DRA have signed contracts, and<br />

SRK Consulting has been hired to build a railway siding. The mine<br />

will produce 2.2-million tons for export every year and 500 kilo-tons<br />

of power station coal.<br />

Anglo American has announced it intends narrowing its focus to<br />

diamonds, platinum and copper. The first big move came in April<br />

<strong>2017</strong> with the sale of Anglo’s thermal coal operations to Seriti, a<br />

black-owned company led by Mike Teke, the outgoing president of<br />

the Chamber of Mines.<br />

Seriti comprises Masimong Group Holdings (Teke’s company),<br />

Community Investment Holdings Projects, Zungu Investments<br />

Company and Thebe Investment Corporation. Seriti paid<br />

35 MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>


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

of which are tied to Eskom delivery contracts), as well as four closed<br />

collieries. Seriti thus became the second-largest provider of thermal<br />

coal to Eskom, supplying almost a quarter of the utility’s annual<br />

coal requirements.<br />


Exxaro Resources Limited is a South Africa-based diversified<br />

resources groups with interests in the coal, titanium dioxide,<br />

ferrous and energy markets. It is the second-largest coal producer<br />

in South Africa, with current production of almost 40 million<br />

tonnes per annum, and is listed on the JSE Limited, where it<br />

is a constituent of both the Top 40 and Socially Responsible<br />

Investment indices.<br />

Exxaro has six mines in the <strong>Mpumalanga</strong> region employing over<br />

8 000 employees. In 2016, this region produced over 20 million<br />

tonnes of coal. Arnot, Matla and the Forzando Complex (87%<br />

Exxaro owned) are underground mines. The North Block Complex,<br />

Leeuwpan and Mafube (a joint-venture with Anglo) are open-cut<br />

mines. The Dorstfontein Complex (74% Exxaro owned) has an<br />

open-cut and underground mine. Products include thermal and<br />

metallurgical coal, distributed to the export market and Eskom<br />

power stations. Exxaro is committed to ensuring a safe and<br />

healthy workplace through our sustainability vision of Zero Harm.<br />

Our approach to creating sustainable communities is fully integrative<br />

and not a top-down approach. We empower the community<br />

to create its own vision and work with them to develop<br />

strategies and plans to realise that vision. In 2016, we invested<br />

R6 million on education, R9.2 million on infrastructure and<br />

R1.2 million on skills development in the <strong>Mpumalanga</strong> region.<br />

Our socio-economic and sustainability programmes power better<br />

lives in our communities.<br />

State coal company AEMFC<br />

(African Exploration Mining &<br />

Finance Corporation) runs a colliery<br />

at Vlakfontein near Ogies<br />

and is planning to develop<br />

other projects. A plan to mine<br />

more coal for power stations<br />

near Kinross is under way and<br />

a smaller project in the Witbank<br />

area has also been assessed and<br />

will be developed once financing<br />

has been secured.<br />

South32 (spun out of BHP<br />

Billiton) has four collieries and three<br />

processing plants in the province.<br />

The company has 4 860 fulltime<br />

employees and 4 400 contractors.<br />

Former coal trader Wescoal is<br />

increasing its exposure to mining.<br />

It owns and manages the<br />

Khanyisa colliery which supplies<br />

the Eskom power station<br />

at Kendall with coal and it has<br />

acquired Keaton Energy, taking<br />

its output beyond six-million<br />

tons per annum.<br />

ArmCoal is a black-owned<br />

coal company that arose out of<br />

a deal between Xstrata Coal SA<br />

and African Rainbow Minerals<br />

Limited (51%). ArmCoal was the<br />

vehicle used in the creation of<br />

the large open-cut thermal coal<br />

mine at Goedgevonden.<br />

Gold<br />

Sibanye Gold’s list of acquisitions<br />

continues to grow. Formed as a<br />

gold- mining company with one<br />

mine in the Free State, Sibanye<br />

has rapidly been buying up platinum<br />

assets and showing an appetite<br />

to become a multi-mineral<br />

operation. In <strong>Mpumalanga</strong> it has<br />

purchased and started to develop<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />



the Burnstone gold mine near<br />

Balfour.<br />

After the Canadian-listed<br />

company Great Basin Gold<br />

went into liquidation in 2012,<br />

Wits Gold acquired the mine<br />

and Sibanye has purchased<br />

Wits Gold. Sibanye is reviving the<br />

mine and reports that Burnstone<br />

has a maiden gold reserve of<br />

1.8-million ounces.<br />

Stonewall Resources runs<br />

the TGME Project, near the<br />

towns of Pilgrims Rest and Sabie.<br />

Operations began in 2011, expanding<br />

from an existing tailing<br />

operation. The area is historically<br />

one of the oldest gold-mining<br />

areas in the country. Stonewall<br />

has ambitious targets of going<br />

beyond production of 40 000<br />

ounces from this and other<br />

historic mines in the area.<br />

There is renewed interest in<br />

the Barberton Greenstone Belt.<br />

Having listed on the Australian<br />

stock exchange, Vantage<br />

Goldfields owns the Lily mine<br />

which was in the news spotlight<br />

in 2016 when three workers were<br />

trapped underground in a container<br />

after a rock slide. Vantage<br />

purchased Barbrook because<br />

it has a processing plant. This<br />

plant has been renamed Central<br />

Metallurgical Complex.<br />

Galaxy and Gold Hill mine<br />

currently produce 20 000 ounces<br />

of gold per year. The Galaxy<br />

company is using new technology<br />

to get the ore body out of<br />

the sulphide minerals in which<br />

it is embedded.<br />

Having taken full control<br />

of its Barberton mines, Pan<br />

African improved its BEE position<br />

(Shanduka Gold is a 23.8%<br />

shareholder) and set about increasing its annual gold output to<br />

100 000 ounces. The company announced in 2010 that new finds<br />

at Royal Sheba will extend the life of Barberton Mines by another<br />

15 years.<br />

Pan African Resources is building a trailing retreatment plant at<br />

Evander which will be completed in 20<strong>18</strong>.<br />

Cement<br />

Sephaku Cement produces 1.4-million tons of cement at its grinding<br />

plant in Delmas. There is undercover storage available for 15 000<br />

tons of bagged cement at the facility.<br />

Clinker for the Delmas plant comes from Aganang in the North<br />

West Province and fly-ash is sourced from the Sephaku classification<br />

plant at the Kendal power station, located about 35km to the east<br />

of Delmas. Fly-ash is an extender in the final cement product and<br />

Sephaku makes about 1.3-million tons of it.<br />

This development is partly a response to increased activity in<br />

the power sector (Eskom’s build programme) but the company<br />

is also very upbeat about the country’s housing sector and the<br />

national government’s infrastructure programme. The company<br />

was responsible for a 1.2-million- ton fly-ash-beneficiation plant at<br />

the Kendal power plant.<br />

Platinum group metals<br />

Northam Platinum, which has assets on both limbs of the Bushveld<br />

Igneous Complex, has purchased the Everest mine from Aquarius<br />

Platinum. Everest is adjacent to Northam’s existing Booysendal<br />

mine (35km west of Mashishing, formerly Lydenburg). By the end<br />

of 2016, and with this new asset, Northam expects to be producing<br />

460 000 ounces of platinum group metals (PGM). A concentrator<br />

and a chrome extraction plant were included in the sale price of<br />

R450-million.<br />

The plantinum concentrator at Northam’s Booysendal plant was<br />

the site of a technology first in 2014/15, with the first use of a type of<br />

flotation control introduced by Mintek, the organisation that does<br />

research and development for the mining industry. The technology<br />

is software-based and is called FloatStar Grade Recovery Optimiser<br />

(FSGRO). The grade measurements which make the process possible<br />

were obtained from another South African product, the BlueCube<br />

MQi slurry analyser.<br />

Jubilee Platinum sold its Smelting and Refining business in<br />

Middelburg to Siyanda Resources for R110.5-million in 2015. Jubilee<br />

wants to concentrate on being a miner, and is confident that its<br />

37 MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>


owner-operator mine. Reduced<br />

demand for stainless steel in the<br />

recession meant that some of the<br />

furnaces at Machadodorp had to<br />

shut down.<br />

The Manganese Metal<br />

Company (MMC) in Nelspruit is<br />

the largest producer of pure electrolytic<br />

manganese in the world.<br />

MMC is owned by Samancor (51%)<br />

and Bilston Investments owns<br />

the balance.<br />

Nickel<br />

two projects will allow it to produce about 42 000 ounces of PGM<br />

concentrate per annum.<br />

Sylvania Platinum now has seven PGM recovery plants that extract<br />

chrome from tailings on both sides of the Bushveld Igneous<br />

Complex. The company also has some shallow mining projects.<br />

Ferrous metals<br />

Lydenburg is home to the Lion ferrochrome smelter that is a joint venture<br />

between Glencore and Merafe Resources. Feedstock is primarily<br />

provided by mines run by the same two companies, namely Magareng,<br />

Helena and Thorncliffe.<br />

Assmang, the joint venture between ARM Ferrous and the JSE-listed<br />

Assore, operates a chrome mine (Dwarsrivier) and a ferrochrome plant<br />

where chrome alloys are made (Machadadorp) in <strong>Mpumalanga</strong>. The<br />

mine has been converted from an operation run by a contractor to an<br />


Aluminium Federation of South Africa: www.afsa.org.za<br />

Chamber of Mines South Africa: www.chamberofmines.org.za<br />

Geological Society of South Africa: www.gssa.org.za<br />

Mining Qualifications Authority: www.mqa.org.za<br />

Mintek: www.mintek.co.za<br />

National Department of Mineral Resources: www.dmr.gov.za<br />

South African Mining Development Association: www.samda.co.za<br />

Norilsk Nickel has instituted legal<br />

action against the government of<br />

Botswana for allegedly reneging<br />

on a deal to buy its African assets,<br />

which include a 50% in the Nkomati<br />

nickel mine in <strong>Mpumalanga</strong>.<br />

Botswana’s copper and nickel<br />

producer BCL has been placed in<br />

liquidation by the government.<br />

Some R3.9-billion was recently<br />

spent on the mine, in which ARM<br />

Platinum is the other shareholder.<br />

A full nickel off-take agreement<br />

exists with Metal Trade Overseas<br />

(MTO). A 375ktpm concentrator<br />

plant was built, allowing for<br />

greater volumes to be milled.<br />

Production levels are rising on the<br />

back of increased global demand.<br />

Niger Uranium Limited has<br />

entered into a joint venture<br />

with Southern African Nickel<br />

Limited (San) to explore nickel<br />

opportunities near Burgersfort in<br />

<strong>Mpumalanga</strong>. Exploration is going<br />

to be done for the joint venture by<br />

Pangea Exploration.<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />



Forestry<br />

Demand for sawn timber is high.<br />

Forestry is ideally suited to help grow the provincial economy of<br />

<strong>Mpumalanga</strong> in downstream sectors. Beneficiation of timber<br />

and energy generation using biomass are two obvious areas<br />

where there is great potential in a sector that already boasts a<br />

considerable infrastructure.<br />

Forestry accounts for about 8% of <strong>Mpumalanga</strong>’s Gross Domestic<br />

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

agricultural GDP while the forestry-products sector contributes about<br />

1% to national GDP. The sector comprises logging, saw-milling, wood<br />

product and pulp and paper manufacture. Pulp and paper are the<br />

main exports, along with sawn lumber, wood chips and wattle extract.<br />

The country is experiencing a shortage of sawn timber with very<br />

few new permits having been issued in recent times due to concerns<br />

about water availability. Most sawn timber in South Africa is used in<br />

the construction sector.<br />

<strong>Mpumalanga</strong> has the ideal climate and topography for forests.<br />

Sabie and Graskop represent the hub of the industry, but commercial<br />

forests are also found to the east and south along the Swaziland border.<br />

About 11% of the land mass is forested, with 4% of that being natural<br />

forest. The province is the national leader in total hectares under forest<br />

(514 000) and in export earnings.<br />

Plans to develop an Agriculture and Forestry Technology Park<br />

are being drawn up by the Provincial Government of <strong>Mpumalanga</strong>.<br />

The intention is to promote manufacturing and trading opportunities<br />

through the clustering approach. The Department of Economic<br />


York Timbers celebrated its<br />

centenary in 2016.<br />

• An Agriculture and<br />

Forestry Technology Park<br />

is planned.<br />

Development and Tourism<br />

(DEDET) will spend R3.9-million<br />

in the <strong>2017</strong>/<strong>18</strong> year on statutory<br />

compliance for this park and<br />

other parks, which will include an<br />

incubation element for SMEs.<br />

The <strong>Mpumalanga</strong> Economic<br />

Growth and Development Path<br />

(MEGDP) intends to expand the<br />

industrial base of the provincial<br />

economy, with a focus on beneficiation,<br />

agri-processing and value<br />

chain development.<br />

York Timbers owns<br />

and operates five processing<br />

plants, including the<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />



largest sawmill and plywood<br />

plants in South Africa and it has<br />

60 470 planted hectares. The<br />

company has expressed interest<br />

in investing heavily in biomass<br />

energy generation. The Industrial<br />

Development Corporation (IDC)<br />

has a stake in York Timbers and<br />

a 42.6% share in Hans Merensky<br />

Holdings, a company with timber<br />

and processing interests in three<br />

provinces. Merensky is responsible<br />

for 20% of South Africa’s<br />

sawn pine lumber.<br />

The Mondi Group has extensive<br />

forestry holdings in the<br />

province and has been working<br />

on introducing a higher degree<br />

of mechanisation in its operations.<br />

Mondi has also instituted<br />

an ecosystem management<br />

plan throughout its forestry operations<br />

with the intention of<br />

better managing the impact its<br />

work has on the environment.<br />

Some areas have been set aside<br />

to cater for biodiversity and<br />

endangered species.<br />

Although local demand is<br />

dwindling, the export market for<br />

pulp and paper from South Africa<br />

remains strong. Pulp production<br />

figures have been on the rise for<br />

several years and companies like<br />

Mondi are increasingly focusing<br />

on pulp export because of<br />

better margins.<br />

Global paper giant Sappi has<br />

two large facilities in the province.<br />

The Ngodwana Mill, which<br />

produces its own energy, has<br />

been making dissolving wood<br />

pulp since 2013 when a major<br />

conversion of the plant was<br />

undertaken. About 70% of the mill’s<br />

product is exported. It produces<br />

paper-grade pulp together with<br />

newsprint, containerboard and dissolving wood pulp. It is located near<br />

Sappi’s commercial forestry operations and produces 210 000 tons<br />

of dissolving wood pulp and 380 000 tons of paper (including kraft<br />

linerboard). Sappi’s Lomati Sawmill in Barberton produces kiln-dried<br />

Southern African pine lumber from sawlogs supplied by Sappi Forests.<br />

In <strong>2017</strong>, Sappi built a sugar extraction demonstration plant at its<br />

Ngodwana Mill. Findings from the plant will help to improve the process<br />

of extracting bio-renewable chemicals. Sappi is partnering with<br />

Valmet, a Finnish company.<br />

PG Bison has a board plant in Piet Retief. Sonae Rauco runs large<br />

plants at White River and Panbult. Komatiland Forests, a 100%-owned<br />

subsidiary of state company SAFCOL, has big plantations in several<br />

districts. TWK is a R6-billion agricultural company with its headquarters<br />

in Mkhondo (Piet Retief).<br />

The commercial-forest sector offers attractive business opportunities<br />

for small-scale entrepreneurs, particularly small-scale growers,<br />

contractors and sawmillers. The pulp and paper industry is ideal<br />

for recycling. Forested areas lend themselves to bee-keeping and<br />

honey-making.<br />

Asset management company Global Environment Fund created<br />

Imvelo Forests and in 2015 the company investigated using thermal<br />

imaging to detect fires.<br />

Among the other private timber growers in the province are Pull<br />

Scar Timber Co and United Forest Products.<br />

The Community Conservation Resilience Initiative (CCRI) has<br />

been introduced to <strong>Mpumalanga</strong>, on the basis that local communities<br />

can play a big role in biodiversity conservation and restoration.<br />

The first two communities to be part of CCRI are Mariepskop and<br />

Houtbosloop Valley.<br />

Private rail operator Sheltam specialises in transporting paper and<br />

pulp, and has extensive operations in <strong>Mpumalanga</strong>.<br />

The Lowveld Botanical Gardens in Nelspruit has more than 650 of<br />

the 1 000 trees indigenous to South Africa. The Council for Scientific<br />

and Industrial Research’s (CSIR) forestry-research unit aims to improve<br />

tree breeds.<br />


Forestry South Africa: www.forestry.co.za<br />

National Department of Agriculture, Forestry and Fisheries:<br />

www.daff.gov.za<br />

Paper Manufacturers of South Africa: www.thepaperstory.co.za<br />

Sawmilling South Africa: www.timber.co.za<br />

South African Institute of Forestry: www.saif.org.za<br />

Technical Association of the Pulp and Paper Industry of South<br />

Africa: www.tappsa.co.za<br />

Wood Foundation: www.thewoodfoundation.co.za<br />

41 MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>


Oil and gas<br />

Gas exploration and gas conversion are growing trends.<br />

International chemicals and energy company Sasol has several large<br />

plants in <strong>Mpumalanga</strong> and plays a major role in the economy of the<br />

province. The company’s most recent upgrade of two polypropylene<br />

manufacturing plants at Secunda has been completed at a cost of<br />

R1.1-billion.<br />

This follows shortly after a stabilisation scheme valued at R1.3-billion<br />

and is part of the global giant’s ongoing investment in its facilities.<br />

More than 900 jobs were created for the duration of the upgrading<br />

project, which took place while production continued at the plant.<br />

Polypropylene is used in packaging, automotive components and<br />

textiles and demand is growing every year.<br />

In <strong>Mpumalanga</strong>, Sasol’s assets are Sasol Mining, Secunda Synfuels<br />

Operations, Secunda Chemicals Operations and Sasol Energy.<br />

Products manufactured at the Secunda complex include petroleum,<br />

paraffin, jet fuel, creosote, bitumen, diesel and lubricants. Gas byproducts<br />

include oxygen and acetylene, liquefied petroleum gas (LPG),<br />

and hydrogen and nitrogen. The primary feedstock for synthetic-fuel<br />

production is coal, and the plant is located in the heart of <strong>Mpumalanga</strong>’s<br />

coalfield region.<br />


Sasol produced a record<br />

volume of synfuel in <strong>2017</strong>.<br />

• Tosaco Energy is searching<br />

for gas at three sites.<br />

The Sasol Synfuels refinery,<br />

which forms part of the Sasol complex<br />

at Secunda, is the only commercial<br />

coal-to-liquid fuel plant in<br />

the world, and forms a vital part<br />

of South Africa’s oil and gas sector.<br />

In July <strong>2017</strong> Sasol announced<br />

that the synfuel plant produced a<br />

record annual output.<br />

Sasol is spending about<br />

R12-billion on expanding the<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />



capacity of the synfuels plant and<br />

on installing an oxygen plant and<br />

more Sasol Advanced Synfuel<br />

(SAS) reactors to convert gas feedstock<br />

to liquid fuel.<br />

Sasol will also likely be a key<br />

player when national government<br />

delivers its new policy on the<br />

biofuel ethanol industry. Statutory<br />

minimums for biodiesel in diesel<br />

and bioethanol in ethanol will<br />

give certainty to producers and<br />

boost production levels across the<br />

country. Sasol is already making<br />

285 000kl of absolute alcohol in<br />

ethanol from sugar fermentation<br />

annually at Secunda. The company’s<br />

sophisticated technology<br />

for deriving liquids and gasses<br />

from coal can easily be converted<br />

to biomass sources such as sugar.<br />

A partnership between forestry<br />

and paper company Sappi<br />

and Finnish company Valmet is<br />

also exploring the potential of<br />

sugar extraction. A demonstration<br />

plant has been built at Sappi’s<br />

Ngodwana Mill.<br />

Gas<br />

A new national focus on gas as<br />

a fuel to supply energy will benefit<br />

the province of <strong>Mpumalanga</strong>,<br />

which already uses and transports<br />

gas in large quantities. Sasol<br />

and the provincial government<br />

have commissioned an indepth<br />

technical feasibility study for a<br />

Petrochemical Technology Park<br />

to be located in the province.<br />

Three natural gas exploration<br />

permits were awarded to Tosaco<br />

Energy in <strong>2017</strong> for the area between<br />

Amersfoort and Balfour in<br />

the western part of the province.<br />

Tosaco Holdings has a 25% stake in Total SA. Testing in the sandstonerich<br />

area should be complete by 2019. Two methane-gas exploration<br />

rights have been granted to Highland Exploration in the Evander area.<br />

Evidence of national government’s new commitment came in the<br />

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

plans for a 600MW gas-fired power plant were announced.<br />

The National Department of Trade and Industry (dti) has established<br />

a special unit to import liquefied natural gas (LNG) into the country, as<br />

part of the strategy to overcome the reliance on coal to power South<br />

Africa’s power stations. The vast gas fields off the coast of Mozambique<br />

are the most obvious source of supply, and Sasol has shares in one of<br />

the fields there and is involved in processing and transporting the gas<br />

within that country and to South Africa.<br />

Sasol Gas is one of the four Sasol operations at Secunda, supplying<br />

natural gas to Sasol Synfuels and buying Sasol Synfuels’ methane-rich<br />

pipeline gas to sell to customers in <strong>Mpumalanga</strong> and KwaZulu-Natal.<br />

Natural gas is an inexpensive alternative to coal. Although the coal<br />

industry still has life in it (old fields are being rehabilitated and new<br />

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

is a finite resource.<br />

Petroleum Agency SA is the state agency responsible for promoting<br />

and regulating exploration and production of oil and gas in the country.<br />

Many of the big mining and manufacturing concerns in <strong>Mpumalanga</strong><br />

have long-term contracts for the supply of gas with big gas companies.<br />

Afrox and Air Liquide are two of the biggest, with the latter having 3 500<br />

national customers, which include Sappi and Sasol.<br />

When it comes to liquid petroleum gas, mostly used in households<br />

(and normally delivered by canisters), some changes are coming for<br />

consumers. The Competition Commission wants to make the sector<br />

more competitive, and aims to do this by reducing the duration of contracts<br />

between bulk sellers and refineries (Mail & Guardian). South Africa’s<br />

LPG market is worth R1.5-billion per annum and the country produces<br />

300 000 tons of product. One of the aims of the commission is to make<br />

LPG cheaper and more easily available to private consumers, who currently<br />

make up just 3% of the market.<br />


Central Energy Fund: www.cef.org.za<br />

Petroleum Agency SA: www.petroleumagency.co.za<br />

PetroSA: www.petrosa.co.za<br />

Sasol: www.sasol.com<br />

South African National Energy Association: www.sanea.org.za<br />

South African Oil and Gas Alliance: www.offshoreafrica.co.za<br />

South African Petroleum Industry Association: www.sapia.co.za<br />

Transnet Pipelines: www.transnetpipelines.net<br />

43 MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>


Water<br />

Improving water services is a major priority in <strong>Mpumalanga</strong>.<br />


Rand Water’s intervention<br />

in <strong>Mpumalanga</strong> reflects the<br />

company’s strategic shift.<br />

• The town of Wilge will<br />

receive water from the<br />

Kendall power station.<br />

• The Imkomati-Usuthu<br />

Catchment Management<br />

Agency oversees water<br />

usage in the region.<br />

<strong>Mpumalanga</strong>’s biggest industries of forestry, mining, synfuel<br />

production and power generation are all thirsty<br />

activities. Old mines present problems in that they can<br />

pollute groundwater. This means that <strong>Mpumalanga</strong><br />

must conserve its waters, build more dams and commission new<br />

water-treatment plants.<br />

Many municipalities in <strong>Mpumalanga</strong> have been struggling for<br />

some time to provide water for their citizens. It was in that context<br />

that the Rand Water was asked to step in and supply clean water in the<br />

Bushbuckridge area. This was followed by the national government<br />

disbanding the Bushbuckridge Water Board and Rand Water taking<br />

over its operations.<br />

The area of supply covers Bushbuckridge and Mbombela (Ehlanzeni<br />

District Municipality) which has 15 water-treatment works, with a<br />

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

areas. The water-treatment works include three large works (Inyaka,<br />

Hoxani and Kanyamazane) and a number of smaller treatment works<br />

(Thulamahashe, Acornhoek and Edinburgh) supply local communities<br />

with drinking water. Expenditure in Bushbuckridge and Mbombela<br />

over the period 2015-2020 is<br />

expected to be R600-million.<br />

This is part of a broader<br />

national strategy whereby bigger<br />

boards such as Rand Water<br />

are growing their footprint, often<br />

replacing the smaller local boards<br />

which lack the skills or resources<br />

to carry out their mandate. Rand<br />

Water, which historically served<br />

greater Johannesburg, now serves<br />

an area which includes Gauteng,<br />

Limpopo (Greater Groblersdal<br />

and Great Mable Hall), North West<br />

(Rustenburg and Madibeng areas),<br />

<strong>Mpumalanga</strong> and the Northern<br />

Free State (Boundary of the Upper<br />

Vaal Water Management Area).<br />

The national Minister of Water<br />

and Sanitation is the shareholder,<br />

representing the government of<br />

South Africa.<br />

In terms of the National Water<br />

Resource Strategy, catchment<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />



area management agencies<br />

have been established to oversee<br />

water resource management on a<br />

regional basis. The National Water<br />

Act stipulates that water resource<br />

management functions, excluding<br />

those that have national and<br />

strategic implications, will be<br />

carried out by CMAs.<br />

The Imkomati-Usuthu<br />

Catchment Management Agency<br />

covers <strong>Mpumalanga</strong>, parts of<br />

Limpopo and part of the Kingdom<br />

of Swaziland and is responsible for<br />

water usage issues relating to the<br />

following river catchment areas:<br />

Sabie-Sand, Crocodile, Komati,<br />

Nwaswitsontso and Nwanedzi.<br />

Among the responsibilities of<br />

a CMA are checking that water<br />

is being used lawfully, allocating<br />

resources to parties along a<br />

river (farmers, municipalities or<br />

businesses), long-term planning,<br />

dam safety and checking on the<br />

quality of water.<br />

The Provincial Government of<br />

<strong>Mpumalanga</strong> has prioritised the<br />

provision of water infrastructure<br />

projects. The premier reported<br />

in <strong>2017</strong> that 327 major projects<br />

had been completed in the previous<br />

financial year (affecting<br />

350 259 households) together<br />

with 165 sanitation projects<br />

(285 065 households), 85 electrification<br />

projects (48 140<br />

households) and 17 solid waste disposal and treatment projects benefiting<br />

146 835 households. In addition, a total of 250km of road and stormwater<br />

infrastructure was constructed and 582 boreholes were<br />

dug across the province. For <strong>2017</strong>/<strong>18</strong>, Mpumalanaga has allocated<br />

R1.9-billion for capital investment in road upgrades, repairing flood<br />

damage and rehabilitation projects.<br />

A bulk water pipeline is being built by the National Department of<br />

Water and Sanitation to deliver water to the community of Carolina in<br />

the Gert Sibande District Municipality. The project will cost R90-million.<br />

The small town of Wilge on the western edge of <strong>Mpumalanga</strong> near<br />

the border with Gauteng will soon be receiving water from Eskom’s<br />

Kendal power station. The utility’s scientists aim to use chlorine dioxide<br />

rather than chlorine gas to produce potable water. Tests have shown<br />

that the treated water has a better colour and the water meets the<br />

standards set down by the South African Bureau of Standards (SABS).<br />

The completion of the De Hoop Dam means that people living in<br />

municipalities can now expect bulk water delivery. The Trans Caldeon<br />

Tunnel Authority (TCTA) is responsible for seeing that bulk water supplies<br />

are laid on, but making the local connections and physically<br />

delivering the water is up to municipalities and water boards.<br />

The De Hoop Dam is the centrepiece in the large Olifants River Water<br />

Resource Development Project (ORWRDP) which is transforming the<br />

water environment for industrial, commercial and private users. As the<br />

catchment area for this huge scheme is to the north of <strong>Mpumalanga</strong>,<br />

the spinoff effect on the province is significant.<br />

The Olifants River System (and associated systems such as the<br />

Blyde Irrigation Scheme) feeds the region that is South Africa’s greatest<br />

producer of citrus and subtropical fruits.<br />

The TCTA has also delivered the Komati Water Supply Augmentation<br />

Project: an extra 57-million m³ of water every year is now available<br />

for the the Duvha and Matla power stations in the Witbank area, and<br />

other water users.<br />

To make sure that its big Saiccor Mill receives enough of a steady<br />

supply of water, Sappi has raised the wall level of the Comrie Dam.<br />

Across its global operations, Sappi claims to return 93% of the water it<br />

uses back into the environment once it has been cleaned.<br />


De Hoop Dam: www.dhcw.co.za<br />

Inkomati-Usuthu Catchment Management Agency:<br />

www.iucma.co.za<br />

National Department of Water and Sanitation: www.dwa.gov.za<br />

Rand Water: www.randwater.co.za<br />

Trans Caledon Tunnel Authority: www.tcta.co.za<br />

Water Institute of South Africa: www.wisa.org.za<br />

45 MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>

FOCUS<br />

Rand Water<br />

Recognising the intrinsic value of caring as one of<br />

Rand Water’s corporate values.<br />

As an essential services utility, Rand Water was established in<br />

terms of the Water Services Act (Act 108 of 1997). The utility<br />

is accountable to the Minister of Water and Sanitation as an<br />

executive authority.<br />

The water board’s primary function is the provision of bulk-water<br />

supply and sanitation services for the socio-economic benefit of the<br />

people of <strong>Mpumalanga</strong> Province. This is not limited to, but is specifically<br />

for its existing clients, ie Bushbuckridge Local Municipality and<br />

the City of Mbombela.<br />

Rand Water is also moving ahead and touching people’s lives in<br />

community development through sponsorships and the Rand Water<br />

Foundation.<br />

New ablution facilities at Vukasambe Primary School.<br />

Before renovations.<br />

After renovations.<br />

New hand-basin facilities.<br />

Rand Water has responded well<br />

to society’s call in <strong>Mpumalanga</strong> by<br />

sponsoring a project at Vukasambe<br />

Primary School to build flushing toilet<br />

facilities fully fitted with modern<br />

fittings. The school is situated in the<br />

rural area of Msogwaba in the City<br />

of Mbombela. This is a school that<br />

is committed to raising awareness<br />

through environmental and water<br />

conservation education campaigns.<br />

Vukasambe Primary currently<br />

has an enrolment of 1 285 learners<br />

and 38 educators, and existing toilets<br />

were not adequate. The school<br />

built new flushing toilets, but Rand<br />

Water discovered that the septic<br />

tank is very small hence it could<br />

only accommodate educators and<br />

grade Rs. The toilets had to be connected<br />

to the existing water systems<br />

and a quality septic tank had<br />

to be installed to meet the growing<br />

demand of learners.<br />

The project objective is to give<br />

back to the communities that we<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />


FOCUS<br />

serve; to promote the “hand wash”<br />

campaign of the Department of<br />

Water and Sanitation (DWS); to<br />

maximise brand visibility and<br />

awareness across <strong>Mpumalanga</strong><br />

and to promote Rand Water as a<br />

caring entity. Also to advance the<br />

National Development Plan (NDP)<br />

on water and sanitation by preventing<br />

loss of life through health<br />

and hygiene.<br />

Further contributions by Rand<br />

Water to communities in the<br />

province include:<br />

• Water Technology Training:<br />

enrolled and trained 46 process<br />

controllers in the financial<br />

year 2016/17. Learners<br />

have successfully completed<br />

the following qualifications<br />

which they will soon be certified<br />

for by Energy and Water<br />

Sector Education and Training<br />

Authority (EWSETA):<br />

1. National Certificate: Water and<br />

Wastewater Process Control<br />

(SAQA ID: 60190) – NQF Level<br />

3 (14 Process Controllers<br />

registered)<br />

2. National Certificate: Water<br />

Purification Process South Africa<br />

Qualification Authority (SAQA ID:<br />

48910) – NQF Level 4 (32 Process<br />

Controllers registered)<br />

One of the main aims for training<br />

process controllers is to allow<br />

Rand Water <strong>Mpumalanga</strong> to<br />

comply with the requirements of<br />

Regulation 17/813 of the Water<br />

Services Act of 1997 (Act No. 108 of<br />

1997)/Regulation 2834. On reclassification,<br />

the process controllers<br />

should be able to obtain improved<br />

classes according to Schedule III of<br />

the Regulation 17/813.<br />

From National Qualification<br />

Framework (NQF) Level 2-4,<br />

New learners for <strong>2017</strong>/<strong>18</strong> and Rand Water Skills Development<br />

Facilitator.<br />

various qualifications enable learners to reach their potential without<br />

the lack of formal education being an impassable barrier. In addition, the<br />

qualification provides access to employment opportunities within the<br />

water sector. Water Purification Process Control NQF Level 4 prepares<br />

learners to function independently and in a supervisory capacity on a<br />

water purification plant.<br />

• In the <strong>2017</strong>/<strong>18</strong> financial year eight learners are going through the<br />

Graduate Internship Programme, preparing employees for job opportunities<br />

for two years.<br />

• Thirteen learners with Grade 12 qualifications are being trained on<br />

the Learnership Process Controller NQF Level 2 for a one-year period.<br />

On completion, they are eligible to enter any employment water<br />

environment with eight skills and experience at the appropriate level.<br />

All of these programmes are implemented to advance the call by government<br />

through the NDP to reduce unemployment in the country<br />

and also to tackle the shortage of technical skills in the province.<br />


Water is everybody’s business<br />

Let’s Save Water<br />

Every Drop Counts!<br />

<strong>Mpumalanga</strong> physical address: 08 Chief Mgiyeni Khumalo Drive,<br />

White River 1240<br />

Tel: +27 13 750 0399<br />

Website: www.randwater.co.za<br />

47 MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>


Manufacturing<br />

A Russian truck maker is to establish a plant in <strong>Mpumalanga</strong>.<br />


Steel production has begun<br />

again at Evraz Highveld.<br />

• A macadamia factory has<br />

more than doubled its<br />

floorspace.<br />

Manufacturing in <strong>Mpumalanga</strong> received a boost with the<br />

news that Minsk Tractor Works is to establish an assembly<br />

plant in the province. The Provincial Government of<br />

<strong>Mpumalanga</strong> has signed various memoranda of understanding<br />

with foreign governments and provinces.<br />

Russia, Belarus, China and Oman are some of the countries with<br />

which <strong>Mpumalanga</strong> is engaged. In 2016, the <strong>Mpumalanga</strong> Economic<br />

Growth Agency (MEGA) hosted the People’s Republic of China <strong>Business</strong><br />

Forum which was attended by 19 large Chinese companies.<br />

A key objective of the provincial government’s <strong>Mpumalanga</strong><br />

Economic Growth and Development Path (MEGDP) is to expand<br />

the industrial base of the provincial economy. To do this, policymakers<br />

are focusing on beneficiation, agri-processing and valuechain<br />

development.<br />

The two obvious sectors in which these goals can be achieved<br />

are within two of <strong>Mpumalanga</strong>’s most important sectors, mining and<br />

agriculture. Two industrial technology parks are to be developed in<br />

support of the policy, Agriculture and Forestry, and Petrochemicals.<br />

Plans for a park focussing on mining<br />

and metals have been put on<br />

hold due to uncertainty in the<br />

steel industry.<br />

Silicon Smelters, which has<br />

plants in <strong>Mpumalanga</strong> and<br />

Limpopo, has asked for a twoyear<br />

negotiated price agreement<br />

(NPA) on electricity, which would<br />

allow it to resume production.<br />

The National Energy Regulator<br />

of South Africa (Nersa) has the<br />

power to grant such exemptions<br />

where the industry is regarded<br />

as strategic.<br />

The National Department of<br />

Trade and Industry has moved<br />

to try to protect the local steel<br />

industry by regulating the use in<br />

the construction sector of locally<br />

produced and manufactured<br />

steel and steel products.<br />

The structural mill of Evraz<br />

Highveld Steel in Witbank was<br />

officially relaunched in June<br />

<strong>2017</strong> after ArcelorMittal South<br />

Africa signed a contract to supply<br />

blooms and slabs for the mill<br />

to make into heavy structural<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />



steel. Evraz Highveld went into<br />

business rescue in 2015. The<br />

contract is for two years with<br />

an option to renew for another<br />

year. Alternately, ArcelorMittal<br />

may buy the mill after the<br />

two years.<br />

The presence of Ferrometals<br />

means that <strong>Mpumalanga</strong> is still<br />

an important place for metals<br />

and machinery manufacturing,<br />

but the turbulence in the steel<br />

sector has reminded everyone of<br />

the need to diversify. Samancor<br />

Chrome (which runs Ferrometals)<br />

is the second-largest ferrochrome<br />

producer in the world<br />

with three plants, two of which<br />

are in <strong>Mpumalanga</strong>: eMalahleni<br />

(Witbank) and Middelburg.<br />

Most manufacturing in the<br />

province takes place in the<br />

Highveld where there is access<br />

to chrome, steel and coal. In<br />

Middelburg, Thos Begbie makes<br />

a variety of products at its heavy<br />

engineering works, pattern shop<br />

and foundry, including copper<br />

castings for export.<br />

Middelburg-based Columbus<br />

Stainless is a major supplier of<br />

stainless-steel products to the<br />

domestic and international market.<br />

About 25% of the company’s<br />

production is sold domestically.<br />

Manufacturing accounts for<br />

15% of <strong>Mpumalanga</strong>’s gross<br />

geographic product (GGP). The<br />

Manganese Metal Company in<br />

Nelspruit is the largest producer<br />

of pure electrolytic manganese<br />

metal in the world. Delta EMD,<br />

in the same town, is one of the<br />

biggest producers of electrolytic<br />

manganese dioxide, a material<br />

used in the manufacture of<br />

alkaline batteries.<br />

Agri-processing<br />

The Lowveld area supports food and beverage enterprises and timber<br />

processing. Approximately 70% of jobs in the manufacturing sector<br />

are in food and forestry.<br />

A large agri-processing fruit hub is planned for the province. Located<br />

in the Nkomazi Special Economic Zone, the proposed hub, with an estimated<br />

value of R10-billion, would deal with the whole value chain from<br />

growing fruit through to processing, marketing and logistics. Having<br />

manufacturing facilities at the core of the hub will enable a variety of<br />

businesses to be established, both upstream (to supply the plant) and<br />

downstream (to deal with the products of the plant).<br />

The decision by Green Farms Nut Company to expand its macadamia<br />

nut processing factory is in line with these objectives. Production<br />

capacity at the company’s White River plant will increase by 40% and<br />

floor space will be expanded to 10 000m² from the current 3 000m².<br />

Most of South Africa’s 28 000ha of macadamias are in <strong>Mpumalanga</strong><br />

and the neighbouring province of Limpopo. In 2016 the area devoted<br />

to the nut increased by 3 870ha, almost twice as much as was newly<br />

planted the year before.<br />

Another company investing in increased capacity is McCain Foods,<br />

which is investing R40-million in upgrading its processing plant<br />

in Delmas.<br />

Standerton has textile-manufacturing capacity in the form of<br />

Standerton Mills. It is also home to several plants that use local raw<br />

materials: Nestlé has an infant-cereal manufacturing plant, RCL runs<br />

farms in the Carolina district and Early Bird is prominent. McCain and<br />

PepsiCo (Simba) have plants that use the province’s plentiful potato<br />

crop.<br />

Africa Silks Weavery in Graskop employs 70 people to create<br />

luxury silk items. Nelspruit and White River have several furnituremanufacturing<br />

concerns.<br />

TSB Sugar runs two large mills and produces fruit juices through<br />

a subsidiary company. Nelspruit is the centre of the province’s foodprocessing<br />

cluster. Hops Hollow Brewery is located at Lydenburg.<br />


Middelburg Chamber of Commerce & Industry:<br />

www.middelburg info.com<br />

<strong>Mpumalanga</strong> Economic Growth Agency: www.mega.gov.za<br />

National Department of Trade and Industry: www.thedti.gov.za<br />

South African Iron and Steel Institute: www.saisi.co.za<br />

Southern Africa Stainless Steel Development Association:<br />

www.sassda.co.za<br />

49 MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>


Transport and logistics<br />

Large coal haulage volumes are typical in <strong>Mpumalanga</strong>.<br />


The upgrading of the<br />

Komatiepoort Dry Port will<br />

boost trade.<br />

• A new <strong>Mpumalanga</strong> Traffic<br />

College is in operation.<br />

The Maputo Development Corridor is Africa’s most advanced<br />

spatial development initiative (SDI) comprising road and rail<br />

infrastructure, border posts, and port and terminal facilities. Run<br />

by the Maputo Development Corridor Logistics Initiative (MCLI),<br />

the corridor runs from just outside Pretoria in Gauteng, through<br />

Witbank, Middelburg and Nelspruit in <strong>Mpumalanga</strong>, and on to Maputo<br />

in Mozambique.<br />

The already successful Maputo Development Corridor will soon<br />

receive a further boost with the upgrading of the Komatiepoort Dry<br />

Port into a Special Economic Zone. The National Department of Trade<br />

and Industry (dti) has designated the <strong>Mpumalanga</strong> Economic Growth<br />

Agency (MEGA) as the lead agent to develop the SEZ.<br />

Another infrastructural development that will boost trade is<br />

Transnet’s Swaziland Rail Link (SwaziLink) project. A 146km railway<br />

line between Lothair in <strong>Mpumalanga</strong> and Sidvokodvo in Swaziland will<br />

allow for better movement of freight between the countries and provide<br />

a possible alternative route<br />

for freight through to Richards<br />

Bay, thus freeing up space on the<br />

dedicated coal line.<br />

The road and rail networks<br />

of the province carry large volumes<br />

of coal and delicate fruits<br />

and vegetables for export. In<br />

Cool Ideas Truck Stop<br />

Services We Offer<br />

• Safe Parking for 130 Trucks • Drive through Truck Wash • 24 Hour Diesel Facility<br />

• Halaal Kiosk & Restaurant • Overnight Stop & Restroom<br />

• Our Parking area is secure with 24 hours security<br />

services provided.<br />

• We have an Automated American Wash System<br />

that ensures trucks are washed in record times.<br />

• Our Wash Services Incl. Links, Bins, Engine Wash,<br />

Excessive mud removal, Horse & Trailers, Tri Axles,<br />

Oil Removal. We also do Bakkie Washes.<br />

• Our Diesel services are AVAILABLE 24 HOURS.<br />

We offer HIGH GRADE 50PPM Diesel. We fi ll all<br />

Bakkies and Trucks.<br />

We are also affi liated with<br />

Our Restrooms are neat and spacious with hot water<br />

available. The Laundry consists of 2 Big wash basins,<br />

Ironing & Drying facilities. With these facilities your<br />

Drivers leave Cool Ideas Truck Stop REFRESHED for<br />

their drive.<br />

Situated ONLY 1km from the N4 on the R35 Bethal Road near Middelburg,<br />

<strong>Mpumalanga</strong>.<br />

Contact Info Office: 083 7880 031<br />

Sujon: 082 3875 449 • lana@coolits.co.za • admin@coolits.co.za<br />

For more information regarding prices, etc please contact us<br />

• The Halaal Kiosk & Restaurant closes at 22:00pm<br />

every day.<br />

• A range of snacks & meals are available, be it<br />

Breakfast, Lunch or Dinner.<br />

• Take aways can be provided on arrangements.<br />

Platters are also available<br />

Payment Methods Accepted<br />

Debit & Credit Cards, Fleet Cards, Cash, EFT<br />

Contact us to make arrangements to Fill or Wash<br />

your Bakkies & Trucks OR EVEN BOTH at a regular<br />

basis & WE can offer you DISCOUNTED PRICING!<br />

To Nelspruit<br />

Middelburg<br />

N4<br />

Pienaardam<br />

1 km from N4<br />

Black Wattle<br />

Colliery<br />

From Witbank<br />

N4<br />

R35 Bethal Rd


2016/17 the provincial government<br />

completed 284km of road<br />

reconstruction divided into 16<br />

projects, including some roads<br />

that form part of the coal haulage<br />

network. More than 10 000km of<br />

municipal roads were bladed and<br />

rural gravel roads were upgraded<br />

in high-traffic areas.<br />

The N4 highway runs eastwest<br />

through the province and<br />

is the main arterial and backbone<br />

of the Maputo Corridor. The R36 is<br />

a major north-south route, passing<br />

through Ermelo and connecting<br />

<strong>Mpumalanga</strong> with Limpopo<br />

in the north, via Middelburg and<br />

KwaZulu-Natal in the south, via<br />

Volksrust. The N17 runs east out<br />

of Johannesburg to Bethal.<br />

The major route eastwards out<br />

of Gauteng towards <strong>Mpumalanga</strong><br />

is called the Moloto Corridor. In<br />

the long-term the aim is to create<br />

a coordinated road and rail<br />

corridor including rapid rail facilities.<br />

In the short term, the<br />

South African National Roads<br />

Agency (Sanral) will spend<br />

R1-billion over three years to<br />

upgrade the R573 Moloto road.<br />

Within provincial government,<br />

the implementing agent<br />

for infrastructure projects is the<br />

Department of Public Works, Roads<br />

and Transport. A new <strong>Mpumalanga</strong><br />

Traffic College has been built.<br />

The <strong>Mpumalanga</strong> rail system<br />

generates more freight<br />

traffic than any other province<br />

in South Africa and is of great<br />

strategic value. Transnet Freight<br />

Rail is the main operator and the<br />

chief freight movements are coal,<br />

fuel, chemicals, timber, iron and<br />

chrome ore, fruit, maize, animal<br />

feed, wholesale and retail goods,<br />

steel, building supplies, fertiliser and consumer goods. The port of<br />

Maputo in Mozambique is an attractive option for freight. The coal<br />

terminal at Richards Bay in KwaZulu-Natal receives the majority of the<br />

coal that is mined in the province. A new rail siding is being built to<br />

service the Majuba Power Station. The 68km single heavy-haul track<br />

will be a private line that is projected to cost in the region of R5-billion<br />

and create between 3 500 and 5 000 jobs.<br />


Cool Ideas Truck Stop, situated in Middelburg, <strong>Mpumalanga</strong>,<br />

just 1km from the N4, was established 10 years ago. Cool Ideas<br />

offers 24-hour diesel sevices and high-grade 50ppm diesel. The<br />

Truck Shop is affiliated to TruckFuelNet and accepts all cards and<br />

fleet merchants.<br />

There is a safe parking area for 130 trucks with 24-hour security, a<br />

Halaal kiosk and restarant, restrooms with showers and a laundry, an<br />

extremely quick and thorough truck and bakkie wash which also<br />

does links, bins and engines.<br />

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

trucking and fuel requirements. Through a partnership with<br />

Mobile Health Clinics, medical services are offered for drivers on<br />

a monthly visit. This may become a permanent feature, depending<br />

on the project’s success. Some of the free tests provided are<br />

blood pressure, blood sugar/diabetes, cholesterol, Body Mass<br />

Index testing, malaria, TB and STI screening.<br />

Maintaining a long-term business relationship with our loyal customers<br />

and gaining new customers by offering quality service and<br />

excellent pricing are the goals of this business. Understanding<br />

the need for flexibility in the industry, Cool Ideas Truck Stop<br />

welcomes unique requests or proposals.<br />


Kruger <strong>Mpumalanga</strong> International Airport: www.kmiairport.co.za<br />

Maputo Corridor Logistics Initiative: www.mcli.co.za<br />

<strong>Mpumalanga</strong> Department of Public Works, Roads and Transport:<br />

http://dpwrt.mpg.gov.za<br />

51 MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>


Tourism<br />

Tourism is a key strategic sector.<br />


A Convention Bureau has<br />

been launched.<br />

• SA Airlink has daily flights<br />

from Kruger <strong>Mpumalanga</strong><br />

International Airport to<br />

five destinations.<br />

More than 1.3-million tourists spent R3-billion in<br />

<strong>Mpumalanga</strong> in 2015. The industry is a key strategic sector<br />

for the growth of the provincial economy and the<br />

creation of jobs.<br />

The Provincial Government of <strong>Mpumalanga</strong> is looking for private<br />

partners to invest in a range of ambitious projects to boost an already<br />

active sector that has several superb tourism assets, ranging from the<br />

iconic Kruger National Park (one of about 70 parks and reserves) to<br />

bird-watching, music festivals, car rallies and casinos.<br />

The provincial investment agency, MEGA, has packaged many<br />

tourism investment opportunities. The underlying principle in each<br />

case is a form of public-private partnership where the agency would<br />

assist in getting land-use and other legal requirements, and perhaps<br />

in seeing that basic infrastructure was laid on, then the developer<br />

would build and manage a tourism facility.<br />

Projects envisaged include a tourist wheel, a cable car, restaurants<br />

and conference facility in Mbombela (Mandela Iconic Eye), the Blyde<br />

River Tourism Cluster (a series of developments including a cable car,<br />

a hotel, a restaurant and a skywalk) and an International Convention<br />

Centre planned for the capital city of Mbombela. Priority projects<br />

that have been registered with National Treasury are the sky walk,<br />

the cable car and the establishment of a luxury hotel at Bourke’s Luck.<br />

A transaction adviser has<br />

been appointed to flesh out<br />

these proposals for investable<br />

tourism products. An example<br />

of infrastructure investment from<br />

the government’s side is the upgrading<br />

of the Manyeleti Resort,<br />

which is ongoing.<br />

Although the province already<br />

caters for motor-rally enthusiasts,<br />

cyclists, runners, walkers, fishers,<br />

horse-riders, tree-gliders, abseilers,<br />

white-water rafters and rock<br />

climbers, there is still tremendous<br />

potential for more investment in<br />

the ecotourism and adventure<br />

tourism subsectors.<br />

Action has also been taken in<br />

trying to attract conferences and<br />

exhibitions with the launch of a<br />

provincial Convention Bureau.<br />

There is a plan to turn the<br />

Graskop Gorge on the Panorama<br />

Tourist Route into an adventure<br />

centre. A lift to transport visitors<br />

into the gorge will open up escarpment<br />

walks, river trails and<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />



tree-top adventures. This will be<br />

supported by a retail complex<br />

(first phase) and a boutique hotel<br />

(second phase), the overall<br />

cost of which is expected to be<br />

about R60-million and lead to<br />

the creation of 46 direct and 32<br />

indirect jobs.<br />

A draft nomination has been<br />

made to UNESCO to register the<br />

Barberton Makhonjwa site as a<br />

World Heritage Site. Geologists<br />

believe that the mountains<br />

of Makhonjwa hold clues to<br />

the earliest history of earth.<br />

Geological tourism is a new concept<br />

which could find rich soil<br />

in <strong>Mpumalanga</strong>. The mountains<br />

around Barberton are unique and<br />

important in the history of gold<br />

mining. The tourist offering near<br />

Barberton has been branded the<br />

Genesis Route.<br />

Mpumlanga has recently<br />

signed cooperation agreements<br />

with various foreign entities. One<br />

such agreement was signed with<br />

the region of Mogilev (Belarus)<br />

which includes clauses related to<br />

tourism. In the case of the partnership<br />

with the Rural Association<br />

of Tourism (Russia), delegations<br />

from <strong>Mpumalanga</strong> will visit<br />

Yekaterinburg and tour operators<br />

from the Sverdkovsk region<br />

will in turn tour <strong>Mpumalanga</strong> in<br />

the course of <strong>2017</strong>. <strong>Mpumalanga</strong><br />

tourism will also have a presence<br />

at the International Trade<br />

Exhibition in Yekaterinburg.<br />

SA Airlink runs daily flights<br />

from Kruger <strong>Mpumalanga</strong><br />

International Airport (Nelspruit)<br />

to Durban, Cape Town,<br />

Johannesburg, Livingstone<br />

(Zimbabwe) and Vilanculos<br />

(Mozambique). The airline also<br />

connects Johannesburg with Phalaborwa and has daily flights from<br />

Cape Town and Johannesburg directly to the Skukuza Airport. Skukuza<br />

Airport is jointly managed by Skukuza Airport Management Company<br />

and SANParks, and allows for quick access to the Kruger National Park<br />

and nearby luxury lodges.<br />

SA Express flies twice a day to Hoedspruit, which is near the<br />

centrally located Orpen Gate to the Kruger Park. The TSB Airport at<br />

Malelane is privately run and does not have lights for night landing<br />

but it hosts car hire offices for both Avis and Budget. Many private<br />

game lodges have airstrips.<br />

Tsogo Sun has six hotels in the province, ranging from two<br />

StayEasys to The Ridge, which is attached to the Ridge Casino in<br />

Witbank (Emalahleni). The Graceland Hotel Casino and Country Club<br />

is in Secunda.<br />

Protea Hotels by Marriott also has six properties in <strong>Mpumalanga</strong>,<br />

including Protea Hotel Kruger Gate and Hazyview. At White River,<br />

“The Winkler”, offers motivational and group bonding activities such<br />

as outdoor paintball exercises.<br />

Forever Resorts has a big presence in the province, catering to many<br />

caravans and campers and holiday-makers wanting to stay in chalets.<br />

There is also a four-star Forever Resorts Mount Sheba.<br />


Hoedspruit Airport: www.eastgateairport.co.za<br />

Kruger <strong>Mpumalanga</strong> International Airport: www.kmiairport.co.za<br />

Lilizela Tourism Awards: www.lilizela.co.za<br />

<strong>Mpumalanga</strong> Gaming Board: www.mgb.org.za<br />

<strong>Mpumalanga</strong> Tourism & Parks Agency: www.mtpa.co.za<br />

South African National Parks: www.sanparks.co.za<br />

South African Tourism: www.southafrica.net<br />

South African Tourism Services Association: www.satsa.com<br />

53 MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>


Banking and financial services<br />

Several new banks are set to open soon.<br />

Three state entities are merging to create the new Human<br />

Settlements Development Bank: the National Housing Finance<br />

Corporation, the Housing Loan Fund and the National Urban<br />

Reconstruction and Housing Agency. The focus will be on financing<br />

housing for poorer households and for large state-funded housing<br />

projects. Part of the drive is to integrate cities better and to combat<br />

the legacy of the spatial divide that apartheid left behind. Private<br />

sector investment will be sought.<br />

Another state entity, the South African Post Office, received a firstlevel<br />

banking licence for Postbank in 2016. Once a board of directors<br />

has been appointed and a company formed, the Reserve Bank is likely<br />

to grant the full licence. The large geographical footprint of the Post<br />

Office will make the bank easily accessible to even remote parts of the<br />

country. By taking these services to rural areas, it is hoped that small<br />

businesses can be more easily created and expanded where they<br />

already exist. The current Postbank focusses on taking deposits and<br />

savings accounts. Postbank has secured a R3.7-billion loan to enable<br />

it to open its own loan book.<br />

The intention behind these initiatives is to make banking more<br />

accessible for rural communities and to make finance more readily<br />

available to small and micro-sized businesses. <strong>Mpumalanga</strong> has<br />


The Human Settlements<br />

Development Bank seeks to<br />

help new home owners.<br />

many rural communities and the<br />

province’s economic planners are<br />

keen to promote small businesses<br />

and co-operatives. Trying to<br />

integrate small business into the<br />

mainstream economy is a major<br />

goal of national and provincial<br />

government in South Africa.<br />

Life insurer MMI Holdings is<br />

also entering a partnership with<br />

African Bank to enable it to start<br />

taking deposits and loaning<br />

money. It intends to establish a<br />

R10-billion loan book.<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />



For many decades, South<br />

Africa had a retail banking Big<br />

Four – Standard Bank, Nedbank,<br />

Absa/Barclays and First National<br />

Bank. All of them have continue<br />

to have a strong presence in the<br />

province, but Capitec Bank has<br />

now also become a major player<br />

in the retail market.<br />

Banks are working hard to<br />

offer products to the previously<br />

unbanked. Nedbank has partnerships<br />

with shops such as Boxer<br />

Stores and Pick n Pay where<br />

customers can have access to<br />

financial services in previously<br />

unserviced areas and also on all<br />

days of the week such as public<br />

holidays and Sundays. Nedbank<br />

also has Approve-it, which allows<br />

customers to accept or<br />

reject an Internet transaction<br />

by cellphone.<br />

Standard Bank’s communitybanking<br />

initiative offers a lowcost<br />

cellphone-banking service.<br />

Retailers can act as agents for the<br />

bank, even in very remote rural<br />

areas. Shops such as Shoprite, Pep<br />

and Spar are connected, as are<br />

certain spazas.<br />

With agriculture being<br />

such an important part of the<br />

<strong>Mpumalanga</strong> economy, each of<br />

the big retail banks has specialists<br />

in the province and dedicated<br />

units such as Nedbank<br />

Agribusiness.<br />

Another source of funding<br />

for farmers is the Land and<br />

Agricultural Development Bank<br />

of South Africa (Land Bank), a<br />

development-finance institution<br />

that falls under the Ministry<br />

of Finance. Standard Bank has a<br />

new black economic empowerment<br />

agricultural fund designed<br />

to support emerging farmers. The R500-million fund is designed to<br />

connect farmers who have received farms in land reform projects to<br />

agri-businesses that will buy their produce.<br />

The Masisizane Fund (Nedbank) makes loan financing available in<br />

sectors such as agriculture and agri-processing, commercial, supply<br />

chain and manufacturing. It also offers training and technical support<br />

and funding to help businesses to comply with legislation.<br />

The insurance market has become more varied over time, with a<br />

greater variety of products now available to more market segments,<br />

including middle-income earners. A typical example of a specific<br />

product that is responding to new realities is Old Mutual’s iWYZE<br />

medical gap cover, designed to pay the difference between what a<br />

medical aid scheme is willing to pay and what the hospital or doctor<br />

is charging.<br />


Auditor-General of South Africa: www.agsa.co.za<br />

Banking Association South Africa: www.banking.org.za<br />

Financial Services Board: www.fsb.co.za<br />

Institute of Bankers in South Africa: www.iob.co.za<br />

Insurance South Africa: www.insurance.za.org<br />

Land and Agricultural Development Bank of South Africa:<br />

www.landbank.co.za<br />

National Credit Regulator: www.ncr.org.za<br />

Office of the Auditor-General of South Africa: www.agsa.co.za<br />

Post Bank: www.postbank.co.za<br />

Public Investment Corporation: www.pic.gov.za<br />

55 MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>


Development finance and<br />

SMME support<br />

A dedicated SME fund will have R500-million capitalisation.<br />


MEGA supports small<br />

businesses in many ways.<br />

• The National Gazelles is a<br />

national SME accelerator.<br />

A<br />

major plank in the economic planning of the Provincial<br />

Government of <strong>Mpumalanga</strong> is the revitalisation of township<br />

and rural economies. The 2016/17 financial year saw<br />

R80-million allocated to this progamme to give financial and<br />

technical support to small and medium enterprises. The <strong>Mpumalanga</strong><br />

Economic Growth Agency (MEGA) is the implementing agent.<br />

An agreement has been signed by Standard Bank and MEGA tolaunch<br />

an SME Fund with a capitalisation of R500-million. In addition<br />

to a general commitment from the provincial government to purchase<br />

from SMMEs, township enterprises or co-operatives where possible.<br />

Rural enterprises feature strongly in the loan book profile, and there is<br />

significant support for women and youth-owned businesses.<br />

MEGA has also overseen the rehabilitation of industrial premises<br />

in former homelands and formed partnerships with financial<br />

institutions for funding.<br />

A Social Enterprise Model is being introduced to try to link small<br />

enterprises with infrastructure projects. Planners want to see local<br />

businesses building the roads and public buildings in the areas where<br />

those facilities are sited. MEGA has been allocated R10-million to<br />

assist SMMEs and co-operatives<br />

to make the most of opportunities<br />

that this model will create.<br />

Examples of township<br />

businesses supported by the<br />

Department of Economic<br />

Development and Tourism<br />

(DEDT) are:<br />

• tyres: an agreement with<br />

Sumitomo Rubber SA<br />

(Dunlop) to promote local tyre<br />

enterprises<br />

• sanitary towel plant: financial<br />

support for the commissioning<br />

of a sanitary towel plant<br />

by the Ntirhisano Sanitary<br />

Worker Co-operative in<br />

Bushbuckridge (and support<br />

for business development and<br />

access to market)<br />

Partnerships with private<br />

companies are also in place:<br />

• the power plant being built<br />

at Kusile has benefited local<br />

communities, in particular<br />

companies owned by women<br />

and young people (55%)<br />

• 82 businesses from<br />

<strong>Mpumalanga</strong> have gradu-<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />



ated from Eskom’s Contractor<br />

Academy<br />

• Eskom will invest a further R30-<br />

million to support cooperatives<br />

• South African Breweries’ national<br />

Kick Start Programme<br />

now has a regional component.<br />

Participants in<br />

the <strong>Mpumalanga</strong> Youth<br />

Entrepreneurship Programme<br />

can qualify for the Kick Start<br />

programme<br />

• Sasol and Eskom are working<br />

with the provincial government<br />

on a fly-ash beneficiation<br />

scheme that will give business<br />

opportunities to SMEs.<br />

Private companies are also<br />

trying to support SMEs through<br />

their buying chain. Woolworths<br />

is funding TechnoServe to ensure<br />

that small tomato growers can<br />

grow produce that will meet the<br />

demanding standards of the retailer,<br />

and to help them expand<br />

production. A regular supplier to<br />

Woolworths, Qutom, assists with<br />

the project.<br />

Using the supply chain to<br />

benefit small business is at the<br />

heart of Anglo American’s Zimele,<br />

which runs four enterprise development<br />

and investment funds.<br />

The initiative experienced a<br />

growth spurt when a system<br />

of hubs was established, with<br />

managers assigned to each hub.<br />

National support<br />

The National Department of<br />

Small <strong>Business</strong> Development<br />

(DSBD) has several programmes<br />

to assist SMEs and co-operatives.<br />

These include:<br />

• The Black <strong>Business</strong> Supplier<br />

Development Programme, a cost-sharing grant to promote competitiveness<br />

• The Co-operative Incentive Scheme, a 100% grant.<br />

The Small Enterprise Development Agency (Seda) is a subsidiary<br />

of the DSDB and is one of the most active agencies in supporting<br />

entrepreneurs. Seda is not a financial agency, focussing rather on<br />

training and administrative support, although the agency will help<br />

SMEs get in touch with financial bodies.<br />

There are five branch offices of Seda in <strong>Mpumalanga</strong> and a further<br />

four sites that are part of the Seda Technology Programme (STP):<br />

• <strong>Mpumalanga</strong> AgriSkills Development and Training, Nelspruit<br />

• Sugar Cane Incubator, Malelane<br />

• <strong>Mpumalanga</strong> Stainless Initiative, Middelburg<br />

• Timbali, Nelspruit. This initiative coordinates the growing<br />

programmes of small farmers and helps to get products to market.<br />

The National Gazelles is a national SME accelerator jointly funded<br />

by Seda and the DSBD. The aim is to identify and support SMEs with<br />

growth potential across priority sectors aligned with the National<br />

Development Plan and Seda’s SME strategy. <strong>Business</strong>es can receive up<br />

to R1-million for training, productivity advice, business skills development<br />

and the purchase of equipment.<br />

The Industrial Development Corporation (IDC) is a strong supporter<br />

of SMMEs either by disbursing loans or by taking minority shares in<br />

enterprises and giving advice. The Development Bank of Southern<br />

Africa (DBSA) is another major funder of public projects.<br />

The major banks all have SMME offerings. Standard Bank runs a<br />

Community Investment Fund and Nedbank offers an enterprise development<br />

product for businesses with turnovers up to R35-million.<br />

Agribusiness and agri-processing are among the three sectors that<br />

are targeted by the Masisizane Fund for loan financing. The others are<br />

franchising/commercial and supply chain/manufacturing. Over and<br />

above loans that are available, training is offered through a <strong>Business</strong><br />

Accelerator Programme.<br />


Development Bank of Southern Africa: www.dbsa.org<br />

Gazelles: www.nationalgazelles.org.za<br />

Industrial Development Corporation: www.idc.co.za<br />

<strong>Mpumalanga</strong> Economic Growth Agency: www.mega.gov.za<br />

National Department of Small <strong>Business</strong> Development:<br />

www.dsbd.gov.za<br />

Shanduka Black Umbrellas: www.shandukablackumbrellas.org<br />

Small Enterprise Development Agency: www.seda.org.za<br />

Small Enterprise Finance Agency: www.sefa.co.za<br />

57 MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>


Education and training<br />

<strong>Mpumalanga</strong> students will study in Belarus.<br />


Five boarding schools have<br />

been built.<br />

• A new tractor assembly<br />

plant will provide training.<br />

Training<br />

The priorities of the <strong>Mpumalanga</strong> Department of Education<br />

are to expand early childhood development programmes, to<br />

promote skills development, especially through further education<br />

and training (TVET) colleges, and to continue to invest in<br />

school infrastructure.<br />

Expressions of interest have been called for from the private sector<br />

concerning a plan to build 500 new schools in the province over a<br />

six-year period. Investors are sought for financing, design, construction,<br />

equipping, and maintenance and property management. The<br />

provincial government is proposing a 10-year lease period in which<br />

time investors would be paid back.<br />

Many of the biggest investors in the province support education<br />

initiatives. These include Sappi’s donation of several classrooms to<br />

Khanyisile Primary School near Barberton and programmes for pupils<br />

and teachers at Entabamhlophe Combined School in Elandshoek near<br />

the company’s mill at Ngodwana.<br />

More than 800 000 pupils in primary and secondary schools are<br />

beneficiaries of the provincial Department of Education’s school<br />

nutrition programme and 1 604 schools in the province are in the<br />

“no - fee school” category.<br />

As a result of a treaty with the<br />

Belarus region of Mogilev,<br />

<strong>Mpumalanga</strong> students will<br />

study at the Belarussian State<br />

Agricultural Academy in agriindustry<br />

fields such as agronomy,<br />

biotechnology and aquaculture.<br />

An agreement between MEGA<br />

and Minsk Tractor Works to build<br />

an assembly plant in <strong>Mpumalanga</strong><br />

will also create opportunities for<br />

training welders, machinists and<br />

mechanics.<br />

Many companies in<br />

<strong>Mpumalanga</strong> spend extensively<br />

on training. Artisans who train at<br />

the Hydra Arc facility in Secunda<br />

are drawn from the company’s<br />

own workforce, from other companies<br />

and from the general population<br />

aiming to learn new skills. In<br />

his <strong>2017</strong> State of the Province address,<br />

Premier David Mabuza noted<br />

that Sasol had agreed to take<br />

on artisans who had completed<br />

training at Hydra Arc. He further<br />

complimented mining company<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />



Exxaro, who are partnering with<br />

the provincial government on skills<br />

development.<br />

<strong>Mpumalanga</strong> has three<br />

Technical and Vocational<br />

Education and Training (TVET)<br />

Colleges, with an enrolment of<br />

over 36 000. UNISA, the Tshwane<br />

University of Technology and the<br />

Vaal University of Technology<br />

also have satellite campuses in<br />

the province.<br />

The three TVET colleges are:<br />

Gert Sibande (four campuses<br />

and a skills academy), Nkangala<br />

and Ehlanzeni, which has six<br />

campuses, a skills centre and a<br />

satellite campus.<br />

Ehlanzeni TVET College offers<br />

10 National Certificate<br />

(Vocational) programmes including<br />

ICT, Finance, Economics and<br />

Accounting, Engineering and<br />

Related Design, and Tourism.<br />

A number of shorter skills<br />

courses are offered including<br />

automotive repairs and maintenance,<br />

computer practice and<br />

communications management.<br />

Nkangala TVET College<br />

has Civil Engineering and<br />

Building Construction at its CN<br />

Mahlangu campus and Electrical<br />

Infrastructure Construction at<br />

three of its five campuses.<br />

The <strong>Mpumalanga</strong> Regional<br />

Training Trust (MRTT) is a Section<br />

21 company very active in skills<br />

training. It has several sites in the<br />

province, including a Hospitality<br />

and Tourism Academy at Karino.<br />

The MRTT’s constructiontraining<br />

facility is accredited as a<br />

Construction Centre of Excellence<br />

and offers courses in brick-laying,<br />

plumbing, carpentry and other<br />

construction-related skills.<br />

The Southern African Wildlife College, offering diplomas and short<br />

courses in conservation, is a joint World Wide Fund for Nature South<br />

Africa (WWF-SA) and Peace Parks Foundation initiative. The college is<br />

located near the Orpen Gate.<br />

University<br />

The Deputy President of South Africa, Cyril Ramaphosa, was inaugurated<br />

in 2016 as the first Chancellor of the University of <strong>Mpumalanga</strong>.<br />

Existing facilities of the former College of Agriculture in Mbombela<br />

have been repurposed to suit the needs of the main campus of<br />

the university, whose principal and vice-chancellor is Professor<br />

Thoko Mayekiso.<br />

A further two satellite campuses have been created at Siyabuswa<br />

(the former Ndebele College of Education) and at KaNyamazane, where<br />

hospitality will be the focus.<br />

A degree will be offered in Bachelor of Agriculture in Agricultural<br />

Extension and Rural Resource Development. The other two courses<br />

offered in the first phase of the university’s development are a Diploma<br />

in Hospitality Management and a Bachelor of Education in Foundation<br />

Phase Teaching. More qualifications will be rolled out in phases, mechanical<br />

and civil engineering among them. The Department of<br />

Higher Education is in consultation with Sasol to provide chemical and<br />

electrical engineering studies.<br />


New boarding schools built 5<br />

New secondary schools 6<br />

New school libraries 9<br />

New Grade R facilities 24<br />

Replacement of unsafe schools 28<br />

Basic services and sanitation projects: 2015-<strong>2017</strong> 222<br />



Ehlanzeni TVET College: www.ehlanzenicollege.co.za<br />

Gert Sibande TVET College: www.gscollege.co.za<br />

<strong>Mpumalanga</strong> Department of Education:<br />

www.mpumalanga.gov.za/education<br />

<strong>Mpumalanga</strong> Regional Training Trust: www.rttrust.co.za<br />

National Department of Basic Education: www.education.gov.za<br />

National Research Foundation: www.nrf.ac.za<br />

Nkangala TVET College: www.nkangalafet.edu.za<br />

Southern African Wildlife College: www.wildlifecollege.org.za<br />

59 MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>

The Black Management<br />

Forum <strong>Mpumalanga</strong><br />

Leading socio-economic transformation through industrialisation.<br />

The Black Management Forum<br />

<strong>Mpumalanga</strong> held its eMalahleni<br />

branch launch event in June <strong>2017</strong><br />

at The Ridge Casino’s Dome under<br />

the theme, “Leading socio-economic<br />

transformation through<br />

industrialisation.”<br />

The theme is especially pertinent<br />

within the context of eMalahleni,<br />

which has long established itself<br />

as the economic powerhouse of<br />

<strong>Mpumalanga</strong> Province, which is<br />

underpinned by a thriving mining<br />

and energy sector.<br />

eMalahleni was previously named Witbank (“White<br />

Ridge”) after a large sandstone outcrop where wagon<br />

transport drivers rested. Coal has been mined in<br />

the city since <strong>18</strong>90, with its coalfields at one point<br />

having the largest economically viable coal reserves<br />

in South Africa.<br />

Nothing lasts forever and soon the coal reserves<br />

that characterised the economic prosperity of “Coal<br />

City” will be no more. The BMF eMalahleni believes<br />

that a situation with disruptive job losses can be<br />

averted, but things must start happening now. The<br />

best solution is to create new industries that are<br />

labour intensive.<br />

The BMF is ready to lead in developing a conveyor<br />

belt of leadership that will redefine the economic<br />

landscape and thus carve out a new benchmark<br />

of what the quintessential African leader is. This is<br />

the message that was shared to the community of<br />

leaders of eMalahleni and beyond. Those present at<br />

From the left: Mr Solomon Manyaka, Mrs Gugu Dube,<br />

Mr Tshegofatso Mosala, Mr Andile Nqandela, Mr Collen Nakedi,<br />

Dr T Mabogoane, Mrs Thembi Mabogoane, Mr Sabelo Hlongwane,<br />

Mrs Mahlatse Maposa and Mr Lefa Tota.<br />

the event were invited to join the BMF for only R741<br />

per annum. It is money well spent.<br />

The Black Management Forum is a non-racial,<br />

thought leadership organisation founded in 1976,<br />

which has, among others pursuits, taken an interest<br />

in socio-economic transformation of our country<br />

in pursuit of socio-economic justice, fairness and<br />

equity. We define our work around the values of<br />

integrity, Ubuntu, effectiveness and creativity.<br />

The BMF eMalahleni has a rich history. One of the<br />

most influential business leaders and former BMF<br />

President, the late Mr Lot Ndlovu, cut his teeth in this<br />

branch. This is testimony to the developmental and<br />

organisational excellence of the eMalahleni branch.<br />

We believe that more leaders of the calibre of Bra<br />

Lot will continue to emerge.<br />

To join please send an email to<br />

bmfmp@bmfonline.co.za<br />


<strong>Mpumalanga</strong><br />

Provincial Government<br />


A guide to <strong>Mpumalanga</strong> Province’s government departments.<br />

Visit www.mpumalanga.gov.za<br />

Office of the Premier<br />

Premier: David Dabede Mabuza<br />

Physical address: 2nd Floor, Building 2, 7 Government Boulevard,<br />

Riverside Park Extension 2, Mbombela 1200<br />

Postal address: Private Bag X11291, Mbombela 1200<br />

Tel: +27 13 766 0000 | Fax: +27 13 766 2494<br />

Email: premier@prem.mpu.gov.za<br />

Website: www.mpumalanga.gov.za<br />

Department of Agriculture, Rural<br />

Development, Land and<br />

Environmental Affairs<br />

MEC: Vusumuzi Shongwe<br />

Physical address: 2nd Floor, Building 6, 7 Government Boulevard,<br />

Riverside Park Extension 2, Mbombela 1201<br />

Postal address: Private Bag X11219, Mbombela 1200<br />

Tel: +27 13 766 6072 | Fax: +27 13 766 8429<br />

Website: http://dardla.mpg.gov.za/<br />

Department of Community Safety, Security<br />

and Liaison<br />

MEC: Petrus Ngomana<br />

Physical address: 2nd Floor, Building 4, 7 Government Boulevard,<br />

Riverside Park Extension 2, Mbombela 1200<br />

Postal address: Private Bag X11269, Mbombela 1200<br />

Tel: +27 13 766 4082 | Fax: +27 13 766 4616 / 4600<br />

Website: www.mpumalanga.gov.za/safety_and_security/home.asp<br />

Department of Cooperative Governance and<br />

Traditional Affairs<br />

MEC: Refilwe Mtshweni<br />

Physical address: Upper Ground Floor, Building 6, 7 Government<br />

Boulevard, Riverside Park Extension 2, Mbombela 1200<br />

Postal address: Private Bag X11304, Mbombela 1200<br />

Tel: +27 13 766 6607 / 6970 | Fax: +27 13 766 8461<br />

Website: http://cgta.mpg.gov.za<br />

Department of Culture, Sport and Recreation<br />

MEC: Norah Mahlangu-Mabena<br />

Physical address: 2nd Floor, Building 5, 7 Government Boulevard,<br />

Riverside Park Extension 2, Mbombela 1201<br />

Postal address: Private Bag X11316, Mbombela 1200<br />

Tel: +27 13 766 5078<br />

Fax: +27 13 766 5575<br />

Website: http://dcsr.mpg.gov.za<br />

Department of Economic Development<br />

and Tourism<br />

MEC: Eric Kholwane<br />

Physical address: 1st Floor, Building 4, 7 Government Boulevard,<br />

Riverside Park Extension 2, Mbombela 1201<br />

Postal address: Private Bag X11215, Mbombela 1200<br />

Tel: +27 13 766 4004<br />

Fax: +27 13 766 4613<br />

Website: www.mpumalanga.gov.za/dedet/<br />

Department of Education<br />

MEC: Reginah Mhaule<br />

Physical address: Building 5, 7 Government Boulevard, Riverside Park<br />

Extension 2, Mbombela 1201<br />

Postal address: Private Bag X11341, Mbombela 1200<br />

Tel: +27 13 766 5555<br />

Fax: +27 13 766 5577<br />

Website: www.mpumalanga.gov.za/education/<br />

Department of Health<br />

MEC: Gillion Mashego<br />

Physical address: 2nd Floor, Building 3, 7 Government Boulevard,<br />

Riverside Park Extension 2, Mbombela 1201<br />

Postal address: Private Bag X11285, Mbombela 1200<br />

Tel: +27 13 766 3754<br />

Fax: +27 13 766 3475<br />

Website: www.mpuhealth.gov.za<br />

61 MPMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>


Department of Human Settlements<br />

MEC: Speedy Mashilo<br />

Physical address: Building 7, 7 Government Boulevard, Riverside Park,<br />

Mbombela 1200<br />

Postal address: Private Bag X11328, Mbombela 1200<br />

Tel: +27 13 766 6607<br />

Fax: +27 13 766 8441<br />

Website: http://dhs.mpg.gov.za/<br />

Department of Public Works,<br />

Roads and Transport<br />

MEC: Sasekani Manzini<br />

Physical address: 7 Government Boulevard, Riverside Government<br />

Complex Building, 7 Mbombela 1200<br />

Postal address: Private Bag X 1302, Mbombela 1200<br />

Tel: +27 13 766 6696 / 6979<br />

Fax: +27 13 766 8453 / 8471<br />

Website: http://dpwrt.mpg.gov.za<br />

Department of Social Development<br />

MEC: Busi Shiba<br />

Physical address: Son Joy Building, Boulevard Street Riverside Park,<br />

Mbombela 1200<br />

Postal address: Private Bag X11285, Mbombela 1200<br />

Tel: +27 13 766 6811<br />

Fax: +27 13 766 8462<br />

Website: www.dsdmpu.gov.za<br />

Provincial Treasury<br />

MEC: Sikhumbuzo Kholwane<br />

Physical address: Upper Ground Floor, Building 4,<br />

7 Government Boulevard, Riverside Park<br />

Extension 2, Mbombela 1200<br />

Postal address: Private Bag X11205, Mbombela 1200<br />

Tel: +27 13 766 3250<br />

Fax: +27 13 766 3459<br />

Website: http://treasury.mpg.gov.za<br />

<strong>Mpumalanga</strong> Local Government<br />

A guide to district and local municipalities in <strong>Mpumalanga</strong>.<br />


Physical address: 8 Van Niekerk Street, Nelspruit 1201<br />

Postal address: PO Box 3333, Nelspruit 1200<br />

Tel: +27 13 759 8500<br />

Fax: +27 13 759 8539<br />

Website: www.ehlanzeni.gov.za<br />

Bushbuckridge Local Municipality<br />

Tel: +27 13 799 <strong>18</strong>51<br />

Fax: +27 13 799 <strong>18</strong>65<br />

Website: www.bushbuckridge.gov.za<br />

City of Mbombela Local Municipality<br />

Tel: +27 13 759 9111<br />

Fax: +27 13 759 2070<br />

Website: www.mbombela.gov.za<br />

Nkomazi Local Municipality<br />

Tel: +27 13 790 0245 | Fax: +27 13 790 0886<br />

Website: www.nkomazimun.gov.za<br />

Thaba Chweu Local Municipality<br />

Tel: +27 13 235 7300<br />

Fax: +27 13 235 1108<br />

Website: www.tclm.co.za<br />


Physical address: Cnr Joubert and Oosthuise streets, Ermelo 2350<br />

Postal address: PO Box 1748, Ermelo 2350<br />

Tel: +27 17 801 7000<br />

Fax: +27 17 811 1207<br />

Website: www.gsibande.gov.za<br />

Chief Albert Luthuli Local Municipality<br />

Tel: +27 17 843 4000<br />

Fax: +27 17 843 4001<br />

Website: www.albertluthuli.gov.za<br />

Dipaleseng Local Municipality<br />

Tel: +27 17 773 0055 | Fax: +27 17 773 0169<br />

Website: www.dipaleseng.gov.za<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong><br />



Govan Mbeki Local Municipality<br />

Tel: +27 17 620 6000 | Fax: +27 17 634 8019<br />

Website: www.govanmbeki.gov.za<br />

Lekwa Local Municipality<br />

Tel: +27 17 712 9600 | Fax: +27 17 712 6808<br />

Website: www.lekwalm.gov.za<br />

Mkhondo Local Municipality<br />

Tel: +27 17 826 8100 | Fax: +27 17 826 3129<br />

Website: www.mkhondo.gov.za<br />

Msukaligwa Local Municipality<br />

Tel: 086 116 7852 | Fax: +27 17 801 3851<br />

Website: www.msukaligwa.gov.za<br />

Pixley Ka Isaka Seme Local Municipality<br />

Tel: +27 17 734 6100 | Fax: 086 630 2209<br />

Website: www.pixleykaseme.gov.za<br />


Physical address: 2A Walter Sisulu Street, Middleburg 1055<br />

Postal address: PO Box 437, Middleburg 1050<br />

Tel: +27 13 249 2000 | Fax: +27 13 249 2056<br />

Website: www.nkangaladm.org.za<br />

Dr JS Moroka Local Municipality<br />

Tel: +27 13 973 1101 | Fax: +27 13 973 0974<br />

Website: www.moroka.gov.za<br />

Emakhazeni Local Municipality<br />

Tel: +27 13 253 7600<br />

Fax: +27 13 253 2440<br />

Website: www.emakhazeni.gov.za<br />

eMalahleni Local Municipality<br />

Tel: +27 13 690 6911 | Fax: +27 13 690 6207<br />

Website: www.emalahleni.gov.za<br />

Steve Tshwete Local Municipality<br />

Tel: +27 13 249 7000<br />

Fax: +27 13 243 2550<br />

Website: www.stlm.gov.za<br />

Thembisile Hani Local Municipality<br />

Tel: +27 13 986 9100 | Fax: +27 13 986 0995<br />

Website: www.thembisilehanilm.gov.za<br />

Victor Khanye Local Municipality<br />

Tel: +27 13 665 6000 | Fax: +27 13 665 2913<br />

Email: munadmin@delmasmuni.co.za<br />

Website: www.victorkhanyelm.gov.za<br />


Limpopo<br />

Bushbuckridge<br />

North West<br />

Dr JS Moroka<br />

Thembisile<br />

Nkangala<br />

Emakhazeni<br />

Thaba Chweu<br />

Mbombela<br />

Ehlanzeni<br />

Nkomazi<br />

Mozambique<br />

Gauteng<br />

Victor Khanye<br />

eMalahleni<br />

Steve Tshwete<br />

Chief Albert Luthuli<br />

N<br />

Dipaleseng<br />

Govan Mbeki<br />

Msukaligwa<br />

Gert Sibande<br />

Swaziland<br />

Lekwa<br />

Free State<br />

Pixley Ka Seme<br />

Mkhondo<br />

Metropolitan/District Municipality Boundary<br />

Local Municipality Boundary<br />

District Municipality<br />

Amajuba<br />

Local Municipality<br />

uMlalazi<br />

63 MPMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong>

INDEX<br />

INDEX<br />

Black Management Forum (BMF) ...................................................................................................................60<br />

Cool Ideas Truck Stop ....................................................................................................................................... 51<br />

Exxaro....................................................................................................................................................................... 39<br />

Inkomati-Usuthu Catchment Management Agency ................................................................................ 7<br />

<strong>Mpumalanga</strong> Economic Growth Agency (MEGA)............................................................... 12 - 15, OBC<br />

Nedbank.....................................................................................................................................................5, 22, IBC<br />

Old Mutual..................................................................................................................................................... 24 - 27<br />

Rand Water ............................................................................................................................................................46<br />

Sasol Infrachem.............................................................................................................................................. IFC, 1<br />

Unemployment Insurance Fund (UIF)............................................................................................................. 3<br />

MPUMALANGA BUSINESS <strong>2017</strong>/<strong>18</strong> 64



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