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Mpumalanga Business 2018-19 edition

Mpumalanga has several investment and business opportunities in a wide range of sectors. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on major projects in Mpumalanga and informative articles on what incentives are available to investors and how to establish a business in South Africa. The Mpumalanga Economic Growth Agency (MEGA) outlines in this journal what lies in store for potential investors in the province. This is the ninth edition of this annual guide to business and investment in the Mpumalanga Province of South Africa.

Mpumalanga has several investment and business opportunities in a wide range of sectors. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on major projects in Mpumalanga and informative articles on what incentives are available to investors and how to establish a business in South Africa. The Mpumalanga Economic Growth Agency (MEGA) outlines in this journal what lies in store for potential investors in the province.
This is the ninth edition of this annual guide to business and investment in the Mpumalanga Province of South Africa.

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MPUMALANGA<br />

BUSINESS<br />

<strong>2018</strong>/<strong>19</strong> EDITION<br />

THE GUIDE TO BUSINESS AND INVESTMENT<br />

IN MPUMALANGA PROVINCE<br />

JOIN JOIN US ONLINE US ONLINE<br />

WWW.GLOBALAFRICANETWORK.COM | WWW.MPUMALANGABUSINESS.CO.ZA<br />

| WWW.LIMPOPOBUSINESS.CO.ZA<br />

MPUMALANGA


SASOL SECUNDA OPERATIONS<br />

The core of Sasol’s Southern African Operations<br />

Sasol is an international integrated chemicals and energy company. Through our<br />

talented people, we use selected technologies to safely and sustainably source,<br />

produce and market chemical and energy products competitively to create superior<br />

value for our customers, shareholders and other stakeholders.<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. Sasol Mining also exports coal from its Twistdraai Export Plant<br />

to international power generation customers. As some of these mines are approaching the<br />

end of their useful lives, new developments are underway to ensure continued supply<br />

through the company's Mine replacement programme.<br />

Secunda Synfuels Operations operates the world's largest coal-to-liquid manufacturing<br />

facility, producing synthesis gas (syngas) through coal gasication and natural gas<br />

reforming. The operating hub uses proprietary technology to convert syngas into<br />

synthetic fuel components, pipeline gas and feedstock 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> is key to Sasol's growth aspirations inside and outside South Africa,<br />

manages the marketing and sales of all Sasol’s 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 invests meaningfully 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.


For more information visit www.sasol.com.


CONTENTS<br />

CONTENTS<br />

<strong>Mpumalanga</strong> <strong>Business</strong> <strong>2018</strong>/<strong>19</strong> Edition.<br />

Introduction<br />

Foreword6<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 />

A new World Heritage Site will boost regional tourism.<br />

Investment incentives 16<br />

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

entrepreneurs and co-operatives.<br />

Establishing a business 18<br />

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

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

<strong>Mpumalanga</strong>’s major projects 20<br />

<strong>Mpumalanga</strong>’s mega projects aim to attract investors in<br />

a wide range of sectors.<br />

Economic sectors<br />

Agriculture and agri-processing 30<br />

Macadamia nut production is expanding every year.<br />

Mining33<br />

The provincial government may start a mining company.<br />

Forestry and paper 38<br />

Sustainable resource management is a priority for timber<br />

companies.<br />

Oil and gas 40<br />

A natural gas pipeline runs to <strong>Mpumalanga</strong>’s Special<br />

Economic Zone.<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong><br />

2


CONTENTS<br />

Water44<br />

Nearly R2-billion is to be spent on bulk water and sanitation.<br />

Manufacturing48<br />

Highveld steel works lives again as an industrial park.<br />

Transport and logistics 50<br />

The Moloto Corridor is a key regional route.<br />

Tourism52<br />

A famous old bridge is the setting for the Kruger National<br />

Park’s newest luxury accommodation.<br />

Banking and financial services 54<br />

All the major banks have agricultural divisions.<br />

Development finance and SMME support 56<br />

A small loan can make a big difference.<br />

Education and training 58<br />

The University of <strong>Mpumalanga</strong> is expanding.<br />

Government<br />

<strong>Mpumalanga</strong> Provincial Government 60<br />

An overview of the <strong>Mpumalanga</strong> provincial government<br />

departments.<br />

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

An overview of <strong>Mpumalanga</strong> municipalities.<br />

References<br />

Sector contents 28<br />

Index64<br />

Maps<br />

<strong>Mpumalanga</strong> municipal map. 62<br />

ABOUT THE COVER:<br />

Credit: Sasol. The Sasol Octene plant. The Sasol complex<br />

at Secunda is one of the most significant features of the<br />

<strong>Mpumalanga</strong> economy.<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong> 4


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FOREWORD<br />

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

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

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

The <strong>2018</strong>/<strong>19</strong> <strong>edition</strong> of <strong>Mpumalanga</strong> <strong>Business</strong> is the ninth issue of<br />

this highly successful publication that since its launch in 2008<br />

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

guide for the province.<br />

<strong>Mpumalanga</strong> has several investment and business opportunities<br />

in a wide range of sectors. In addition to the regular articles providing<br />

insight into each of the key economic sectors of the province, there<br />

are special features on major projects in <strong>Mpumalanga</strong> and informative<br />

articles on what incentives are available to investors and how to establish<br />

a business in South Africa. The <strong>Mpumalanga</strong> Economic Growth Agency<br />

(MEGA) outlines in this journal what lies in store for potential investors<br />

in the province.<br />

To complement the extensive local, national and international<br />

distribution of the print <strong>edition</strong>, the full content can also be viewed<br />

online at www.mpumalangabusiness.co.za. Updated information on<br />

<strong>Mpumalanga</strong> is also available through our monthly e-newsletter, which<br />

you can subscribe to online at www.gan.co.za, in addition to our complementary<br />

business-to-business titles that cover all nine provinces as<br />

well as our flagship South African <strong>Business</strong> title.<br />

Chris Whales<br />

Publisher, Global Africa Network Media<br />

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

CREDITS<br />

Publisher: Chris Whales<br />

Publishing director: Robert Arendse<br />

Editor: John Young<br />

Online editor: Christoff Scholtz<br />

Art director: Brent Meder<br />

Design: Tyra Martin<br />

Production: Lizel Olivier<br />

Ad sales: Sydwell Adonis, Joseph<br />

Gumbo, Gavin van der Merwe,<br />

Sam Oliver, Gabriel Venter,<br />

Siyawamkela Sthunda, Vanessa<br />

Wallace, Jeremy Petersen, Shiko<br />

Diala 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 />

DISTRIBUTION<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 />

PUBLISHED BY<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 Anglo American Coal, Artographers/<br />

Graskop Gorge Lift Company, Barberton Makhonjwa Mountains Lands<br />

World Heritage Site Project (BMML), Columbus Stainless, Chris Kirchoff/<br />

Brand SA, Federale Stene, Highveld Industrial Park, MEGA, iStock, Raubex,<br />

Sasol, SA Tourism, Thebe Tourism Group, TWK Agri.<br />

MPUMALANGA BUSINESS 2017/18<br />

6<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.


A REGIONAL OVERVIEW OF<br />

MPUMALANGA<br />

A new World Heritage Site will boost regional tourism.<br />

By John Young<br />

The decision by UNESCO to afford World Heritage<br />

Site status to the Makhonjwa Mountains<br />

near Barberton will boost geological<br />

tourism to the province and supports the<br />

efforts of the province to diversify its offering. Major<br />

projects to improve tourist experiences are underway<br />

at the Graskop Gorge (where a transparent lift takes<br />

tourists into the depths of the gorge), a skywalk is to<br />

be built at God’s Window and a cable car is planned<br />

for Three Rondavels.<br />

The international body’s decision has also had the<br />

effect of expanding the curriculum at the relatively<br />

new University of <strong>Mpumalanga</strong>. On the basis of the<br />

UNESCO ruling, UMP will offer geology as part of a BSc<br />

in 20<strong>19</strong>, to supplement existing courses in education,<br />

agriculture and hospitality.<br />

Several investment projects aimed at providing<br />

infrastructure in the tourism sector have been put<br />

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

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

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

which was intended to move an already healthy economic<br />

sector into an even bigger creator of wealth<br />

and jobs. Heritage and cultural tourism are in the<br />

spotlight because <strong>Mpumalanga</strong> is already a leader<br />

in nature reserves and parks. There is a special focus<br />

on BRICS countries and provincial authorities are investigating<br />

a tourism airlift route between Moscow<br />

and <strong>Mpumalanga</strong>.<br />

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

and fertile soil that supports diverse farming operations.<br />

South 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 />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong> 8


SPECIAL FEATURE<br />

The province also hosts large companies in the<br />

manufacturing sector, with internationally renowned<br />

firms such as Sasol (pictured below, mining, synthetic<br />

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

large operations in the province. Columbus Stainless<br />

in Middelburg is a major producer of stainless steel,<br />

while Middelburg Ferrochrome, Thos Begbie and<br />

the Nelspruit-based Manganese Metal Company are<br />

among other important heavy industrial companies.<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 significantly<br />

increased the manufacturing capacity of<br />

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

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

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

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 fuel,<br />

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

and lubricants. The primary feedstock for syntheticfuel<br />

production is coal, and the plant is in the heart<br />

of <strong>Mpumalanga</strong>’s coalfields.<br />

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

in <strong>Mpumalanga</strong>, with the town of Emalahleni<br />

(Witbank) being the centre of the industry. Other<br />

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

Platinum Group Metals, chromite, zinc, cobalt,<br />

copper, iron 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 />

Beneficiation of minerals and agricultural<br />

produce<br />

The Nkomazi Special Economic Zone and the<br />

International Fresh Produce Market are two major<br />

initiatives which aim to drive economic growth,<br />

boost value addition within the province and create<br />

jobs. 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<br />

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

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

These projects are the subject of a separate article<br />

elsewhere in this publication.<br />

The biggest companies in <strong>Mpumalanga</strong>’s most<br />

significant sectors have been investing heavily in<br />

infrastructure and operations. Global energy and<br />

chemicals company Sasol regularly spends tens<br />

9 MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong>


SPECIAL FEATURE<br />

of millions on upgrades and improvements at its<br />

Secunda complex. The Sasol Synfuels refinery is the<br />

only commercial coal-to-liquid fuel plant in the world<br />

and constitutes a key component in South Africa’s<br />

oil and gas sector. In July 2017 Sasol announced that<br />

the synfuel plant 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 2017 was particularly good news, after the<br />

company went into business rescue two years<br />

before. ArcelorMittal South Africa is supplying<br />

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

However, operations will be reduced significantly,<br />

whatever option is pursued. This has opened up<br />

an opportunity on the property on which the steel<br />

mill operated. It has been rebranded the Highveld<br />

Industrial Park and is inviting manufacturers,<br />

distributors and commercial enterprises to set<br />

up shop in a well-resourced area with excellent<br />

infrastructure and logistics links.<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 />

Columbus Stainless runs the only stainless-steel mill<br />

in Africa.<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,<br />

China and Oman are some of the countries that<br />

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

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

Premier, the Provincial Project Management Unit.<br />

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

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

upgrading the commuter railway linkages to the<br />

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 />

implement steps to improve ICT performance in<br />

the province.<br />

Geography<br />

The Drakensberg escarpment sharply divides the<br />

western grasslands at high altitude (Highveld) and<br />

the subtropical component to the east, the Lowveld.<br />

The central region of the province is mountainous,<br />

with dramatic landscapes presenting exciting vistas<br />

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

regions 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 nuts. These<br />

are cultivated in the Lowveld and are exported in ever-<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong><br />

10


SPECIAL FEATURE<br />

growing volumes. The Nelspruit<br />

district in the Lowveld is South<br />

Africa’s second-biggest producer<br />

of citrus fruit. The Graskop Gorge<br />

Lift Company has built a dramatic<br />

way to view the “Edge of the<br />

Lowveld” (pictured).<br />

Large parts of the province<br />

are in the so-called Middleveld<br />

comprising high-plateau grasslands.<br />

Forestry operations are<br />

found in central and southeastern<br />

<strong>Mpumalanga</strong>, but the<br />

heart of this important industry<br />

is around Sabie in the east. The<br />

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

one of the most important in<br />

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

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

either by plantations or natural<br />

forests. Large sugar operations<br />

are found in the south-east of<br />

the province.<br />

The province has excellent<br />

roads and railway connections<br />

and is well served by airports,<br />

airstrips and heliports. The Kruger<br />

<strong>Mpumalanga</strong> International Airport<br />

and Hoedspruit Airport are the<br />

province’s two main airports.<br />

The Maputo Development<br />

Corridor is a transportation<br />

corridor comprising road, rail,<br />

border posts, port and terminal<br />

facilities, running from<br />

Pretoria in Gauteng through<br />

<strong>Mpumalanga</strong> to the Port of<br />

Maputo in Mozambique. The<br />

corridor supports high volumes<br />

of cross-border freight services.<br />

Industry and tourism benefit<br />

from the concentration of resources<br />

and ease of transportation.<br />

This international initiative<br />

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

excellent location as a logistics<br />

and transport hub.<br />

11 MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong>


MPlJM/\1 /\<br />

PLACE OF<br />

THE lIN<br />

GA<br />

SUN<br />

iJ @mega_mpumalanga<br />

rJ @MEGA<strong>Mpumalanga</strong><br />

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

Tel: +27 (0) 13 755 6328<br />

Fax: 013 755 1756<br />

eMail: info@mega.gov.za<br />

www.mega.gov.za<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong>


The provincial economy is highly diverse with signicant activity in mining,<br />

agriculture, stainless-steel production, petrochemicals, pulp and paper,<br />

manufacturing and tourism. <strong>Mpumalanga</strong>'s position and resources make it a<br />

valuable transport and logistics hub.<br />

In addition to good infrastructure, abundant natural resources and fertile soils, the<br />

province also boasts great scenic beauty, making it a desirable place in which to live<br />

and work. The <strong>Mpumalanga</strong> Economic Growth Agency (MEGA) facilitates investment<br />

in the province and is always keen to talk to potential investors.<br />

Maputo Development Corridor<br />

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

Spatial Development Initiative linking Gauteng,<br />

<strong>Mpumalanga</strong>, the Nkomazi SEZ and the Port<br />

of Maputo in Mozambique. The MDC incorporates<br />

road, rail, the SEZ, border posts, port<br />

and terminal facilities along one of the most<br />

industrialised strips in Southern Africa.<br />

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

<strong>Mpumalanga</strong> Province. Infrastructure along the<br />

corridor has been upgraded and it provides<br />

investors and exporters with good access to<br />

the markets of East Africa, the Indian Ocean rim<br />

and East Asia. The MDC forms part of a greater<br />

transport axis that seeks to link the Atlantic<br />

and Indian oceans via Southern Africa and a<br />

network of corridors exists in the region.<br />

Special Economic Zone<br />

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

positioned on the Maputo Development<br />

Corridor in the border town of Komatipoort<br />

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

Mozambique).<br />

The SEZ covers numerous opportunities for<br />

those with export-oriented businesses -<br />

bonded warehouse, distribution centre,<br />

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

Other identified opportunities in the SEZ<br />

include mining services, mineral beneficiation,<br />

agro-processing (which could leverage the<br />

provincial citrus and sugar industries) and<br />

activities relating to import, distribution and<br />

local manufacture of automobiles. SEZs are a<br />

key initiative of the South African government<br />

and the Department of Trade and Industry<br />

(the dti) is making a package of tax incentives<br />

available to qualifying companies located in<br />

approved SEZs.<br />

SOUTH AFRICA<br />

MIDDELBURG<br />

LYDENBU<br />

<br />

ll<br />

KOMATIPOORT /<br />

RESSANO GARCIA<br />

NKO AZI SEZ <br />

I • : I<br />

GSABIE MOZAMBIQUE<br />

.<br />

BEtfAST MBOMBELA <br />

- EMALAHLENI r"'\<br />

JOH A NNESBURG<br />

u<br />

CAROLINA<br />

-<br />

M A PUTO


MPUMALANGA ECONOMIC<br />

GROWTH AGENCY<br />

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

Economic Development Agency of the Provincial Government<br />

of <strong>Mpumalanga</strong>.<br />

The Maputo Development Corridor (MDC) is a Spatial Development Initiative linking Gauteng,<br />

<strong>Mpumalanga</strong>, the Nkomazi SEZ and the Port of Maputo in Mozambique. The MDC incorporates road, rail,<br />

the SEZ, border posts, port and terminal facilities along one of the most industrialised strips in<br />

Southern Africa.<br />

The longest part of the corridor runs through <strong>Mpumalanga</strong> Province. Infrastructure along the corridor has<br />

been upgraded and it provides investors and exporters with good access to the markets of East Africa, the<br />

Indian Ocean rim and East Asia. The MDC forms part of a greater transport axis that seeks to link the Atlantic<br />

and Indian oceans via Southern Africa and a network of corridors exists in the region. MEGA offers a range of<br />

services relating to trade promotion, investment, funding and property management.<br />

ti<br />

Population:<br />

4.1 million<br />

0<br />

Area covered<br />

83 000km 2 .<br />

Trade promotion<br />

Export and import enquiries<br />

Market information and contacts<br />

Advice on customs duties and foreign trade documentary requirements<br />

Market research<br />

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

Organising foreign trade and investment<br />

Missions and exhibitions<br />

Providing counselling and training to SMMEs regarding export issues<br />

Advising local business on technical trade issues<br />

Promoting and facilitating provincial access to Export Marketing and Investment Assistance Scheme<br />

Promoting and facilitating provincial access to the Sector Specific Assistance Scheme (SSAS)<br />

Investment promotion<br />

Targeting investors via the media, the MEGA website, incoming and outgoing delegations, foreign<br />

embassies, exhibitions, chambers of commerce and municipalities<br />

Facilitating feasibility studies<br />

Providing investment information, intelligence and research<br />

Assisting with obtaining factory space and/or land<br />

Advising on commercial statutory requirements<br />

Facilitating joint ventures via the identification of local partners<br />

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

Assisting in identifying potential suppliers of raw materials and feedstock<br />

Assisting with the lodging of investment incentive claims with the dti<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong>


Funding<br />

MEGA funds SMMEs and businesses that specialise<br />

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

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

services, government and community. Preference<br />

is given to businesses owned by historically<br />

disadvantaged 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 />

• I lelp to achieve organisational sustainability<br />

• ,acilitate 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 />

Cor.1tact ir.1fo<br />

Mega Head Office<br />

ABSA Square Building, 20 Paul Kruger Street,<br />

Mbombela, 1200, <strong>Mpumalanga</strong>, South Africa<br />

Postal Address: PO Box 5838, Mbombela, 1200<br />

Tel: +27 13 752 2440<br />

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

[kandustria Office (Bronkhorstspruit)<br />

215 Iridium St, Ekandustria, Bronkhorstspruit, 1028<br />

lei:+ 27 13 933 3421<br />

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

Secunda Office<br />

Office A, Secunda Town Centre, Rautenbach<br />

Street, Secunda, 2302<br />

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

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

Siyabuswa Office<br />

Siyabuswa Shopping Centre, Main Road, Siyabuswa,<br />

Dr JS Moroka Rural, 0472<br />

lei: +27 13 973 1049<br />

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

Johannesburg Office<br />

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

South Africa<br />

lei: +27 83 469 6899<br />

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

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

(MEGA) facilitates investment in the<br />

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

potential investors.<br />

//


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 –<br />

including feasibility studies and research<br />

and development (grants for R&D and<br />

feasibility studies, THRIP, 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 –<br />

involving the introduction of efficiencies<br />

and whetting the competitive edge of<br />

established companies and commercial<br />

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

CTCIP, etc)<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong> 16


SPECIAL FEATURE<br />

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

an agency of the Department of Small <strong>Business</strong><br />

Development that exists to promote 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 />

ONLINE RESOURCES<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 />

www.mega.gov.za<br />

Official South African government incentive<br />

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

17<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</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<br />

of investment)<br />

• Obtaining approval for building plans<br />

• Applying for industry and export incentives<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong> 18


SPECIAL FEATURE<br />

• Applying for import permits and verifying import<br />

duties payable<br />

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

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<br />

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

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

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

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

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

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

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

registered local auditor and establish a registered<br />

office in 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$186. 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 />

<strong>19</strong> MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong>


SPECIAL FEATURE<br />

Zoning in on fresh produce<br />

<strong>Mpumalanga</strong>’s mega-projects aim to attract investors in a wide<br />

range of sectors.<br />

• Vast mineral resources, which<br />

fire the province’s many<br />

coal-fired power stations<br />

and underpin the ferro-alloy<br />

complex around Middelburg,<br />

where Columbus Stainless runs<br />

the only stainless-steel mill in<br />

Africa.<br />

Several large private-sector investment projects are under<br />

way in <strong>Mpumalanga</strong>. These include the ongoing upgrades<br />

and conversions at the Ngodwana Mill by Sappi (forestry<br />

and paper) and the various plants of Sasol at Secunda (petrochemicals<br />

and liquid fuels), mining ventures in the coal sector (Anglo<br />

American coal, Sasol, Exxaro and Nkomati Anthracite are all spending<br />

heavily) and tourism (Thebe Tourism Group has multiple projects).<br />

These projects illustrate the diversity of the provincial economy which<br />

has large concerns in the sectors mentioned above and others in segments<br />

as different as stainless steel, sugar, ferro-alloys and potato chips.<br />

A provincial plan intends to use these strengths to further develop<br />

labour-intensive manufacturing industries and to encourage the development<br />

and localisation of supply chains. To achieve this, two major<br />

projects are being implemented:<br />

• the Nkomazi Special Economic Zone<br />

• the <strong>Mpumalanga</strong> International Fresh Produce Market.<br />

Both big projects leverage the province’s main strengths. These<br />

include:<br />

• Unique location and logistical advantages: Maputo Development<br />

Corridor; Moloto Corridor; borders with Mozambique and Swaziland;<br />

major highways and rail links; proximity to South African industrial<br />

heartland and large population of Gauteng Province<br />

• <strong>Mpumalanga</strong> generates 80% of South Africa’s energy and several<br />

pipelines run through the province<br />

• Extraordinary agricultural riches, which can be exported or used<br />

in agri-processing<br />

Nkomazi Special<br />

Economic Zone<br />

The Nkomazi Local Municipality<br />

has designated land for the SEZ<br />

which will be established in terms<br />

of the Special Economic Zones<br />

Act of 2014 (Act 16 of 2014). The act<br />

defines an SEZ as “geographically<br />

designated areas of the country<br />

that are set aside for specifically<br />

targeted economic activities<br />

and supported through special<br />

arrangements and systems”.<br />

Infrastructure at an SEZ<br />

supports the targeted sectors and<br />

attracts foreign investors with a<br />

strong focus on beneficiation of<br />

local produce or materials. Skills<br />

transfer is another stated aim<br />

behind the SEZ programme.<br />

Situated in the border<br />

town of Komatipoort, this<br />

multi-sector SEZ is the axis of<br />

economic integration between<br />

the provinces of <strong>Mpumalanga</strong>,<br />

Gauteng and Limpopo and the<br />

neighbouring states of Swaziland<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong> 20


SPECIAL FEATURE<br />

and Mozambique. The region is one of the most industrialised and<br />

productive areas in Southern Africa and the Maputo Development<br />

Corridor provides linkages west to the economic heartland of South<br />

Africa and eastwards to the ports of Mozambique. Proximity to the<br />

Mozambican port of Matola would support a dry port or logistics base.<br />

The SEZ focus is on infrastructure and manufacturing: transport,<br />

warehousing and logistics facilities, agri-processing, automotive support<br />

platforms and infrastructure to support companies operating in<br />

the mining and mineral sectors.<br />

Options for investors include bonded warehouses, a distribution<br />

centre, a container yard, truck stops and a petrol depot (with maintenance,<br />

fitment, and repair facilities). Other opportunities include<br />

phosphate for fertilisers, the production of ammonia and urea and<br />

the beneficiation of fluorspar for downstream agri-chemicals and<br />

fluorine production. Food processing and packaging for large retailers<br />

is another option. Potential products to be made include subtropical<br />

juice concentrate, lemon oil and lemon juice concentrate.<br />

<strong>Mpumalanga</strong> International Fresh Produce Market<br />

An International Fresh Produce Market (IFPM) is under construction<br />

at Mbombela. To support the market, the <strong>Mpumalanga</strong> government<br />

is establishing seven Agri-hubs to provide a stable supply of fresh<br />

produce to the market. The 248ha site is in Mbombela, the provincial<br />

capital. It is situated within the Maputo Development Corridor (MDC),<br />

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

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

Economic Zone with the deep-water Port of Maputo in Mozambique.<br />

Private investors are sought to be partners in building the top structure;<br />

services are being laid on by the province.<br />

The SEZ’s location enables access to the SADC market with 280-million<br />

consumers, the EAC market with 140-million consumers and<br />

preferential access to lucrative Asian and EU markets. The market will<br />

serve farmers and customers from <strong>Mpumalanga</strong>, South Africa and<br />

regional markets in Swaziland and Mozambique. The market will cater<br />

for expected growth in the production of tropical and subtropical<br />

crops and vegetables.<br />

The potential is huge:<br />

• <strong>Mpumalanga</strong> currently generates R950-million in turnover from<br />

subtropical fruit. The sector employs about 13 000 people.<br />

• The region exports more than 10-million cartons of avocadoes<br />

every year.<br />

A large proportion of South Africa’s grain, citrus, sugar and soft fruits<br />

come from <strong>Mpumalanga</strong>. The province is one of the key exporters<br />

of macadamia nuts, a subsector that is growing rapidly. The plan<br />

intends for agri-processing in the<br />

province to grow exponentially.<br />

The tropical and subtropical<br />

crops which thrive in<br />

<strong>Mpumalanga</strong> include avocadoes,<br />

bananas, citrus, ginger, granadillas,<br />

guavas, litchis, macadamia<br />

nuts, mangoes, papayas and<br />

pineapples. Vegetables produced<br />

are potatoes, tomatoes, pumpkins,<br />

sweet corn, onions, sweet<br />

potatoes, beetroot, carrots, green<br />

peas, cauliflower, cabbage and<br />

green beans.<br />

The IFPM will provide trading<br />

halls for fruit and vegetables, markets<br />

for meat, fish, and flowers,<br />

complementary cold-storage and<br />

ripening facilities and pallet handling.<br />

There will also be processing<br />

facilities, an export hall and<br />

bulk-breaking facilities for retail<br />

outlets. There will be a customs<br />

office and commercial services<br />

such as banking and restaurants<br />

will be available. A food bank is to<br />

be established for NGOs.<br />

Helping small-scale farmers<br />

and co-operatives gain access to<br />

new domestic and international<br />

markets is among the aims of the<br />

Fresh Produce Market.<br />

21<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong>


SPECIAL FEATURE<br />

Power stations like the Kendall Power Station produce fly ash as a byproduct. A beneficiation plant for<br />

fly ash is an investment opportunity.<br />

Infrastructure<br />

The projected increase in platinum and chrome output in the<br />

Steelpoort area at the border of <strong>Mpumalanga</strong> and Limpopo Provinces<br />

is putting increasing strain on road and rail infrastructure. To address<br />

infrastructure concerns, MEGA is now implementing the KUKA<br />

Steelpoort Ropeway Ore Transporting Project which will act as a<br />

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

the smelters.<br />

The funding for all Ropeway Projects in Steelpoort area is likely to be<br />

between R50-million and R350-million. The cost for the Lion Ropeway<br />

Project is projected at R220-million. Aerial ropeways of over 100km<br />

long can be constructed, consisting of a series of sections linked by<br />

automatic transfer stations.<br />

Manufacturing<br />

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

and it is selling some to cement manufacturers. The remainder is<br />

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

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

ash in <strong>Mpumalanga</strong>, which houses most of Eskom’s power stations, is<br />

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

to develop a fly ash beneficiation plant. The proposed plant would be<br />

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

size is projected at 500 tons per nine-hour production shift. Fly ash is<br />

successfully used to enhance the quality and economy of concrete.<br />

Other uses of fly ash include brickmaking, dam building and as a<br />

cement extender during the manufacturing of cement.<br />

Tourism<br />

The province attracts over onemillion<br />

tourists a year to the<br />

natural wonders of the Bourke’s<br />

Luck Potholes, God’s Window,<br />

the Blyde River Canyon and the<br />

Kruger National Park.<br />

MEGA is seeking investors to<br />

build an exclusive five-star hotel<br />

and top-quality restaurant<br />

located at the Bourke’s Luck<br />

Potholes on the Highveld part<br />

of Blyde River Canyon Nature<br />

Reserve. There are also innovative<br />

expansion plans for God’s<br />

Window, a famous lookout point<br />

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

Drakensburg Mountains overlooking<br />

the Lowveld Escarpment<br />

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

and game reserves destinations.<br />

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

Walk” tourism attraction – an income<br />

generating, cantilevered<br />

glass walkway and viewing deck<br />

suspended off the edge of the<br />

God’s Window cliffs, giving 360°<br />

panoramic views out and 700 metres<br />

down through a glass floor.<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong><br />

22


Global Africa Network<br />

Promoting business, trade and investment in SA’s nine provinces<br />

www.gan.co.za<br />

www.southafricanbusiness.co.za<br />

www.easterncapebusiness.co.za<br />

www.freestatebusiness.co.za<br />

www.gautengbusinessguide.co.za<br />

www.kwazulunatalbusiness.co.za<br />

www.limpopobusiness.co.za<br />

www.mpumalangabusiness.co.za<br />

www.northerncapebusiness.co.za<br />

www.northwestbusiness.co.za<br />

www.westerncapebusiness.co.za<br />

NETWORK MEDIA<br />

Tel 021 657 6200<br />

Email sales@gan.co.za<br />

Web www.gan.co.za


FOCUS<br />

<strong>Mpumalanga</strong> Stainless<br />

Initiative<br />

Columbus Stainless supports MSI to beneficiate<br />

stainless steel.<br />

<strong>Mpumalanga</strong> Stainless Initiative (MSI) was established<br />

in 2001 and registered as a non-profit company on<br />

24 December <strong>19</strong>99. MSI is located in Middelburg, the home<br />

of stainless steel and just a few kilometres from Columbus<br />

Stainless (Pty) Ltd, Africa’s only producer of stainless steel flat products.<br />

MSI has entrenched itself as the only technology-based business<br />

incubator in the stainless steel sector that specialises in nurturing sustainable<br />

small and medium-sized enterprises (SMEs) through stainless<br />

steel. Columbus Steel has a vision of growing the economy through<br />

stainless steel beneficiation.<br />

This can be achieved through their mission of nurturing sustainable<br />

SMEs and using their values of product innovation, service excellence<br />

and integrity.<br />

MSI is predominately targeting unemployed, struggling or dormant<br />

stainless steel goods manufacturers who have work experience or are<br />

running their businesses in the informal sector.<br />

Assistance is also offered to graduates or entrepreneurs, who have<br />

experience in manufacturing or engineering of stainless steel finished<br />

products. One of the key objectives is also to assist people who have<br />

an interest in starting a business and have the potential to create<br />

employment opportunities for the community.<br />

What MSI offers<br />

MSI’s service offering centres on incubation services such as mentoring,<br />

monitoring, evaluation and coaching.<br />

We use shared infrastructure, technology and knowledge exchange<br />

platforms to uplift SMEs in terms of:<br />

• Legislative and governance compliance (SARS, CIPC).<br />

• Linking the SME to funding and market networks like Columbus,<br />

MEGA and other organisations.<br />

• Financial management such as obtaining annual financial statements<br />

and day-to-day invoicing.<br />

• HR management such as assistance with recruitment of workers.<br />

• Facility and technology access control. Gaining access to shared<br />

machines to manufacture clients’ products.<br />

• Operations and production management. On-time delivery of<br />

quality products.<br />

mpumalanga stainless initiative<br />

• Quality management and<br />

adherence to customer needs<br />

and ISO9001.<br />

• Design management,<br />

ensuring compliance in terms<br />

of patents, trademarks and<br />

intellectual property (IP).<br />

• Branding and helping to<br />

create public awareness and<br />

exposure for the product.<br />

• Networking in terms of events,<br />

workshops and expos.<br />

The support generated through<br />

the partnership with Columbus<br />

Stainless (Pty) Ltd has allowed<br />

small businesses to be showcased<br />

in terms of procurement opportunities<br />

and support services.<br />

Active support<br />

During the 2017/18 financial<br />

year, Columbus supported MSI<br />

SMEs to the value of R600 000<br />

in procurement of manufactured<br />

finished goods as well as<br />

direct purchases of advanced<br />

machines with the latest technology.<br />

This was done through<br />

Columbus Stainless’ Enterprise<br />

and Supplier Development<br />

programmes.<br />

Columbus Stainless further<br />

subsidised MSI in terms of operating<br />

costs, personal protective<br />

equipment, meeting<br />

expenses and the training of<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong><br />

24


FOCUS<br />

Solar drier manufactured by Madingoana Steel. Seen here is Jenny Nawa<br />

from Feed a Child feeding vegetables to be dried in the feeder.<br />

staff. Through the support given by Columbus Stainless a total of 12<br />

jobs was created.<br />

Additional support is given in terms of technical assistance, skills<br />

development, quality assurance, networking platforms, events and<br />

marketing for the benefit of the SMEs.<br />

SME<br />

Zovuya<br />

Replica<br />

JKHANG<br />

Live TECH<br />

Bailment<br />

Golden Steel Engineering<br />

APPLICATIONS:<br />

Product<br />

Stainless steel coaster sets, certificates and photo frames<br />

for Columbus’ long-service award function.<br />

Solar driers for Feed-A-Child. Laser-cut South America<br />

stainless steel map.<br />

Year-end gift steak pans for Columbus Stainless.<br />

Carrols Café balustrades and stainless steel artistic trees.<br />

<strong>Business</strong> card holders for Middelburg Chamber of<br />

Commerce and Industry banquet gift.<br />

Golf day trophies.<br />

Applications for access to MSI services can be made by:<br />

Tel: +27 (0)13 246 1528<br />

Email: admin@mpstainless.co.za<br />

Website: www.mpstainless.co.za<br />

The road ahead sees<br />

Columbus and MSI forging a<br />

Service Level Agreement in<br />

order to improve lead times<br />

and the quality of goods<br />

produced. MSI will also<br />

continue to lobby for more<br />

private sector involvement.<br />

Columbus and MSI<br />

urge all companies who<br />

have a need for stainless<br />

steel goods to involve MSI<br />

and have custom-made<br />

products made by SMEs.<br />

This will help to grow<br />

entrepreneurs, develop<br />

skills and create jobs in our<br />

community.<br />

Partners<br />

MSI is a member of the<br />

Southern African Stainless<br />

Steel Development<br />

Association (SASSDA) and the<br />

Southern African Technology<br />

<strong>Business</strong> Technology<br />

Incubation Association<br />

(SABTIA).<br />

Our stakeholders are<br />

• Department of Small<br />

<strong>Business</strong> Development<br />

(DSBD) via the Small<br />

<strong>Business</strong> Development<br />

Agency (Seda) through<br />

their Technology<br />

Programme (STP)<br />

• <strong>Mpumalanga</strong> Department<br />

of Economic Development<br />

and Tourism<br />

• Steve Tshwete Local<br />

Municipality<br />

• Columbus Stainless (Pty)<br />

Ltd.<br />

25 MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong>


ADVERTORIAL<br />

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.


ADVERTORIAL<br />

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 <strong>19</strong>51/000009/06. Nedbank Ltd Reg Authorised No <strong>19</strong>51/000009/06 financial<br />

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


KEY SECTORS<br />

Overviews of the main economic sectors of<br />

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

Agriculture 30<br />

Mining 33<br />

Forestry and paper 38<br />

Oil and gas 40<br />

Water 46<br />

Manufacturing 48<br />

Transport and logistics 50<br />

Tourism 52<br />

Banking and financial services 54<br />

Development finance and SMME support<br />

56<br />

Education and training 58


OVERVIEW<br />

Agriculture and agri-processing<br />

Macadamia nut production is expanding every year.<br />

Agriculture is responsible for about 3.4% of <strong>Mpumalanga</strong>’s<br />

Gross Domestic Product (GDP). Fruits, nuts and vegetables<br />

are a major contributor to the provincial and national export<br />

basket and there is still scope for expansion in this sector,<br />

both in terms of lands planted and downstream beneficiation.<br />

Big companies cultivate maize, sugar, timber, vegetables, fruit and<br />

tea on a large scale and are active in the raising of poultry and cattle.<br />

Large commercial farmers account for the bulk of crop and livestock<br />

production.<br />

The Provincial Government of <strong>Mpumalanga</strong> is building an<br />

International Fresh Produce Market as a means of stimulating agricultural<br />

production. The intention is that this will lead to increased<br />

volumes supplying domestic and international markets.<br />

Each of the province’s districts will have Agri-parks and the<br />

Department of Rural Development has set up Farmer Production<br />

Support Units in two municipalities so far, Bushbuckridge and Nkomazi.<br />

A feedlot has been built at Mzinti and a R20-million packhouse in<br />

Bushbuckridge is almost ready for use.<br />

Other interventions include the re-commissioning of the<br />

Bushbuckridge poultry abattoir and farmer support to soya and maize<br />

farmers to supply the Lekwa Oilseed Crushing Plant in Standerton.<br />

The Nooitgedacht Research Farm is being upgraded and the<br />

possibility of reopening an agricultural college is being considered.<br />

Marapyane Agricultural College, which is situated in the Dr JS Moroka<br />

Municipality in Nkangala, would allow for a formal setting for the<br />

transfer of skills.<br />

SECTOR INSIGHT<br />

Halls and Westfalia are two<br />

of South Africa’s biggest<br />

agri-businesses.<br />

Crops<br />

Macadamia nuts have grown in<br />

popularity exponentially in recent<br />

years. About 4 000 hectares<br />

of new trees is added each year<br />

across South Africa, with most of<br />

that in <strong>Mpumalanga</strong> and neighbouring<br />

Limpopo. The vast majority<br />

of the nuts are exported,<br />

with about 40% going to China.<br />

There are about 450 farmers<br />

growing the nuts and there are 14<br />

cracking factories in South Africa.<br />

The sector employs about 4 500<br />

people, of which 1 500 are permanent<br />

employees. Barberton and<br />

Hazyview are two prime areas for<br />

the nut.<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong><br />

30


OVERVIEW<br />

The <strong>Mpumalanga</strong> Economic Growth Agency, MEGA, has equity in Hi-Veld Fruit Packers and<br />

Tekwane Citrus.<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 South Africa’s<br />

soya bean crop is produced in <strong>Mpumalanga</strong>’s Highveld areas.<br />

<strong>Mpumalanga</strong> accounts for about 21% of South Africa’s citrus production<br />

and a third of its export volumes, with Valencias being the province’s<br />

most popular varietal and Nelspruit being the centre of the sector.<br />

Avocados, litchis, mangoes and bananas thrive in the province.<br />

Hazyview is an important source of bananas, with 20% of South Africa’s<br />

production originating in this district.<br />

Deciduous fruits are cultivated in smaller quantities. The village of<br />

Tonteldoos north of Dullstroom hosts an annual peach festival that includes<br />

liquid marvels such as peach mampoer. About 15 000 tons of<br />

table grapes are produced in the province annually and <strong>Mpumalanga</strong><br />

produces its own wine.<br />

A specialist fruit that does well in the province is the marula. The marula<br />

fruit makes a popular beer and is used in the production of a liqueur that<br />

has done well on the international market. Potatoes and potato seed thrive<br />

in <strong>Mpumalanga</strong>’s fertile soil, with one operation in the higher reaches of<br />

the Drakensberg range producing more than 2 000 tons of seed every<br />

year. Tomatoes, onions and cabbage are also farmed profitably.<br />

Cotton is grown mostly under dryland conditions in Marble Hall. The<br />

province has 1 500ha of dryland under cotton. Much of South Africa’s total<br />

annual production of about 34-million kilograms of tobacco, especially<br />

Virginia tobacco, takes place in the north-western parts of <strong>Mpumalanga</strong>,<br />

and in neighbouring Limpopo.<br />

Other crops produced for export in <strong>Mpumalanga</strong> include cut flowers,<br />

pot plants and nursery plants.<br />

Livestock<br />

About 14% of the province’s land area is natural grazing land. Products<br />

include beef, mutton, poultry, dairy and wool. Poultry-production<br />

companies have large<br />

facilities in the Standerton-<br />

Volksrust area. The town of<br />

Ermelo is the centre of one of<br />

the country’s most important<br />

sheep-farming districts.<br />

The province is home to<br />

one of South Africa’s largest<br />

pig farms, Kanhym, near<br />

Middelburg. Karan Beef has<br />

recently built a large abattoir<br />

in Balfour to service its massive<br />

feedlot in neighbouring<br />

Gauteng. Up to 1 800 head of<br />

cattle can be processed every<br />

day at the facility.<br />

Sugar<br />

<strong>Mpumalanga</strong> has the secondbiggest<br />

sugar industry in<br />

South Africa, after KwaZulu-<br />

Natal.<br />

TSB Sugar runs three mills<br />

in the Lowveld region, two<br />

of which have refining capacity,<br />

and employs about<br />

4 700 people. More than<br />

1 400 farmers (commercial<br />

and small-scale) deliver sugar<br />

cane to the company. TSB<br />

brands are Selati (sugar) and<br />

Molatek (animal feed). TSB’s<br />

31 MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong>


OVERVIEW<br />

three mills (including Pongola in northern KwaZulu-Natal) have been<br />

able to maintain volumes because of extensive irrigation schemes.<br />

The company was bought by RCL Foods in 2014.<br />

TSB Sugar has been increasing the amount of cane it takes from<br />

community trusts and small-scale growers. The proportion of land<br />

used to harvest cane from small-scale growers on community land<br />

has grown to 15%, with 64% coming from commercial farmers and<br />

community trusts and 21% from TSB’s own land.<br />

About 44 000ha in the province is under sugar cane. Commercial<br />

farmers account for 27 000ha, emerging farmers for 9 500ha and TSB<br />

Sugar has 7 800ha of its own.<br />

Companies<br />

Fresh fruit and nut supplier Halls has developed a countrywide reputation<br />

since it was incorporated as a company in <strong>19</strong>21. Halls’ <strong>Mpumalanga</strong><br />

operation (Mataffin) produces an avocado crop of about 1 300 tons,<br />

37% of the company’s output. Europe buys most of Halls’ 1.6-million<br />

cartons of exports (4kg equivalents) and this represents about 60% of<br />

production. The company is one of South Africa’s biggest exporters of<br />

litchis and total production is about 850 tons in a good year.<br />

Halls cultivates 375ha of its own land and has another 1 400ha under<br />

management. The Matsafeni Trust is the company’s biggest outgrower<br />

and exports in the region of 300 000 cartons every year.<br />

Westfalia is a diversified agricultural group which runs extensive<br />

ONLINE RESOURCES<br />

ARC-Institute for Tropical and Subtropical Crops:<br />

www.arc.agric.co.za<br />

Citrus Growers Association: www.cga.co.za<br />

Fresh Produce Exporters’ Forum: www.fpef.co.za<br />

Perishable Products Export Control Board: www.ppecb.com<br />

operations in the province.<br />

The group’s South African operations<br />

regularly sell more than<br />

five-million cartons of avocados<br />

(50% of the country’s export<br />

volume) and seven-million<br />

cartons of mangoes. Westfalia<br />

is a subsidiary of the Hans<br />

Merensky Group and most of its<br />

holdings are in the neighbouring<br />

province of Limpopo.<br />

Umbhaba Estates is one of<br />

the biggest banana growers in<br />

the province.<br />

The drier Highveld region<br />

with its cold winters supports<br />

crops such as cereals, legumes<br />

and nuts. There is extensive<br />

irrigation in the Loskop Dam<br />

area. Ermelo in the centre of<br />

the province is one of South<br />

Africa’s main centres of sheepfarming<br />

and wool-production.<br />

Standerton in the south-west is<br />

a dairy centre and Piet Retief in<br />

the south-east concentrates on<br />

sugar and tropical fruit.<br />

Subtropical fruit flourishes in<br />

the Lowveld with the town of<br />

Nelspruit being a major citrus<br />

producer. Mangoes, avocados,<br />

pecan and macadamia nuts,<br />

bananas and papayas also thrive.<br />

The Subtropical Fruit Growers’<br />

Association represents about 400<br />

avocado growers. Subtropical<br />

fruit altogether has a combined<br />

turnover of R950-million and<br />

employs about 13 000 people.<br />

Mixed farming and potatoes,<br />

sweet potatoes and beans are<br />

mostly found in the southern<br />

and western parts of the province.<br />

Between them, the highlying<br />

areas of <strong>Mpumalanga</strong> and<br />

the Free State account for 40%<br />

of South Africa’s potatoes.<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong><br />

32


Mining<br />

The provincial government may start a mining company.<br />

OVERVIEW<br />

Mafube coal mine is a JV between Anglo American Coal and Exxaro 30km west of Middelburg.<br />

<strong>Mpumalanga</strong>’s coal-fired power stations have provided South<br />

Africa with electricity for decades and continuing investment<br />

in new projects will prolong that tradition for many years yet<br />

to come, despite increased interest in renewable resources.<br />

Nkomati Anthracite has been revived and is up and running after an<br />

investment from Unicorn Capital Partners, formerly Sentula Mining. The<br />

mine, which is in the south-eastern corner of the province, has proven<br />

resources of 8.7-million tons and upwards of 400 jobs were created over<br />

the last two years.<br />

The high-grade anthracite that the mine will produce is suitable for<br />

use by the ferro-metals industry because it has low phosphorus and<br />

sulphur levels and high fixed carbon percentages.<br />

The communities of Kwalugedlane, Matsamo and Mawewe have a<br />

16.1% stake in the relaunched mine and the <strong>Mpumalanga</strong> Economic<br />

Growth Agency (MEGA) holds 34%.<br />

Coal giant Exxaro has committed R3.8-billion to its Belfast project, an<br />

investment that will create 1 160 jobs and have an impact on the GDP<br />

(over the life of the mine) of R39-billion, according to the Premier’s office.<br />

Exxaro will establish an 80ha agri-village and spend R50-million to<br />

accommodate the 32 households who are affected by this new mine.<br />

Exxaro is also extending the life of its Leeuwpan Mine by another 10<br />

years. The mine has 1 200 permanent employees.<br />

In his <strong>2018</strong> State of the Province speech, then Premier David Mabuza<br />

noted that mining contributes 25.9% of GDP and employs 53 000 people.<br />

He further noted the sad closing of the Lily Mine (because of fatalities)<br />

SECTOR INSIGHT<br />

New safety measures include<br />

Wi-Fi for underground<br />

miners.<br />

• Unicorn Capital Partners<br />

has restarted Nkomati<br />

Anthracite Mine.<br />

and Glencore’s Optimum Colliery<br />

and raised the possibility of developing<br />

a diversified, state-owned<br />

mining company. MEGA has been<br />

tasked with investigating whether<br />

it might be possible, looking at the<br />

resources which the state already<br />

holds (as seen in MEGA’s stake in<br />

Nkomati Anthracite). Said Mabuza,<br />

“We cannot have mining assets in<br />

this province that are lying idle<br />

and unproductive when unemployment<br />

is this high. We have<br />

to find innovative ways to revive<br />

such mines.”<br />

33 MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong>


OVERVIEW<br />

Isibonelo Mine is located near Kriel.<br />

News<br />

Two hundred employees at Anglo American Coal’s Zibulo Colliery are<br />

walking around with devices that look like smartphones but might<br />

save their lives. Instead of returning to the surface to report problems,<br />

Wi-Fi is connecting miners and managers from underground to the<br />

surface, from above to below and between workers underground at<br />

different locations.<br />

Pan African Resources increased its gold production by more than<br />

a quarter in 2017 with the development of the Elikhulu Tailings Project<br />

at Evander. At a cost of R1.8-billion, the project reduces the average<br />

cost of the miner’s gold production and consolidates three tailings<br />

dumps into one centralised location. Increasingly sophisticated technology<br />

allows for more efficient extraction of remnants of gold from<br />

old dumps and the new processing plant will deal with more than a<br />

million tons of tailings.<br />

Anglo American has announced it intends narrowing its focus to<br />

diamonds, platinum and copper. The first big move came in April 2017<br />

with the sale of Anglo’s thermal coal operations to Seriti, a black-owned<br />

company lead by Mike Teke, the outgoing president of the Chamber<br />

of Mines, recently rebranded as the Minerals Council South Africa.<br />

Assets<br />

Coal, platinum, gold and nickel are the province’s major mineral resources<br />

and all are still in demand, even if coal and platinum have<br />

experienced roller-coaster price fluctuations in recent times.<br />

South Africa produces 75% of the world’s platinum, 80% of its<br />

manganese, 73% of its chrome and 45% of its vanadium. <strong>Mpumalanga</strong><br />

has significant resources of each of these minerals, and several others.<br />

Deposits of chromite, magnetite and vanadium are the basis of the<br />

ferro-alloy complex in Witbank-<br />

Middelburg (in Nkangala District<br />

Municipality) and Lydenburg<br />

(Mashishing). Nkomati Mine is<br />

South Africa’s only pure-nickel<br />

operation. The province’s coalfields<br />

are in the south and west<br />

of the province.<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,<br />

which, it is believed, will increase<br />

employment levels and stimulate<br />

economic growth. Uncertainty in<br />

the steel sector has meant that<br />

the plans of the <strong>Mpumalanga</strong><br />

Provincial Government to develop<br />

a Mining and Metals Technology<br />

Park have been put on hold.<br />

Coal<br />

<strong>Mpumalanga</strong> accounts for 83%<br />

of South Africa’s coal production<br />

and is the third-largest coal<br />

exporting region in the world.<br />

The coalfields of the province<br />

feed nearby power stations. The<br />

town of eMalahleni (Witbank), in<br />

Nkangala District Municipality, is<br />

at the centre of the coal industry.<br />

In 2015 nearly 30% of national<br />

power utility Eskom’s coal<br />

(33.3-million tons) was supplied<br />

by Exxaro. Exxaro’s purchase of<br />

Total Coal South Africa (TCSA)<br />

has significantly increased the<br />

diversified miner’s capacity and<br />

took to six the number of mines<br />

the company has in <strong>Mpumalanga</strong>.<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong><br />

34


OVERVIEW<br />

Seriti comprises Masimong Group Holdings (Teke’s company),<br />

Community Investment Holdings Projects, Zungu Investments<br />

Company and Thebe Investment Corporation. Seriti paid R2.3-billion<br />

for the New Vaal, New Denmark and Kriel collieries (all of which are<br />

tied to Eskom delivery contracts), as well as four closed collieries. Seriti<br />

thus became the second-largest provider of thermal coal to Eskom,<br />

supplying almost a quarter of the utility’s annual coal requirements.<br />

State coal company AEMFC (African Exploration Mining & Finance<br />

Corporation) runs a colliery at Vlakfontein near Ogies and is planning<br />

to develop other projects.<br />

South32 (formerly BHP Billiton) has four collieries and three processing<br />

plants in the province. The company has 4 860 full-time employees<br />

and 4 400 contractors.<br />

Wescoal owns and manages the Khanyisa colliery which supplies<br />

the Eskom power station at Kendall with coal and it has acquired<br />

Keaton Energy.<br />

ArmCoal is a black-owned coal company that arose out of a deal<br />

between Xstrata Coal SA and African Rainbow Minerals Limited (51%).<br />

ArmCoal was the vehicle used in the creation of the large open-cut<br />

thermal coal mine at Goedgevonden.<br />

has purchased the Everest mine<br />

from Aquarius Platinum. Everest<br />

is adjacent to Northam’s existing<br />

Booysendal mine.<br />

Northam expects to produce<br />

460 000 ounces of platinum<br />

group metals (PGM). A concentrator<br />

and a chrome extraction<br />

plant were included in the sale<br />

price of R450-million.<br />

Jubilee Platinum has sold its<br />

Smelting and Refining business in<br />

Middelburg to Siyanda Resources<br />

for R110.5-million. Sylvania<br />

Platinum now has seven PGM recovery<br />

plants that extract chrome<br />

from tailings on both sides of the<br />

Bushveld Igneous Complex. The<br />

company also has some shallow<br />

mining projects.<br />

Gold and platinum<br />

Sibanye Gold’s list of acquisitions continues to grow. Formed as a<br />

gold-mining company with one mine in the Free State, Sibanye has<br />

rapidly been buying up platinum assets in South Africa and the US. In<br />

<strong>Mpumalanga</strong> it has purchased the Burnstone gold mine near Balfour,<br />

which it reports has a maiden gold reserve of 1.8-million ounces.<br />

Stonewall Resources runs the TGME Project, near the towns of<br />

Pilgrim’s Rest and Sabie. Stonewall has ambitious targets of going<br />

beyond production of 40 000 ounces from this and other historic<br />

mines in the area.<br />

Having taken full control of its Barberton mines, Pan African improved<br />

its BEE position (Shanduka Gold is a 23.8% shareholder) and set about<br />

increasing its annual gold output to 100 000 ounces. Northam Platinum,<br />

which has assets on both limbs of the Bushveld Igneous Complex,<br />

ONLINE RESOURCES<br />

Geological Society of South Africa: www.gssa.org.za<br />

Minerals Council South Africa: www.mineralscouncil.org.za<br />

Mining Qualifications Authority (MQA): www.mqa.org.za<br />

National Department of Mineral Resources: www.dmr.gov.za<br />

South African Institute of Mining and Metallurgy:<br />

www.saimm.co.za<br />

Ferrous metals<br />

Lydenburg is home to the Lion<br />

ferrochrome smelter that is a joint<br />

venture between Glencore and<br />

Merafe Resources. Feedstock is<br />

primarily provided by mines run by<br />

the same two companies, namely<br />

Magareng, Helena and Thorncliffe.<br />

Assmang, the joint venture<br />

between ARM Ferrous and<br />

the JSE-listed Assore, operates<br />

a chrome mine (Dwarsrivier)<br />

and a ferrochrome plant where<br />

chrome alloys are made. Reduced<br />

demand for stainless steel has<br />

meant that some of the furnaces<br />

at Machadodorp have 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 the<br />

balance.<br />

35 MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong>


PROFILE<br />

Superfecta Trading<br />

Electro-mechanical specialists.<br />

Superfectca Trading is an electro-mechanical engineering<br />

company with a national footprint and a record of successful<br />

delivery of projects in all nine provinces. The company was<br />

founded in 2002 and has extensive experience in medium- and<br />

high-voltage products and related services.<br />

Superfecta manufactures high-tension products under the TMA brand<br />

and related services. TMA products include transformers, mini-substations<br />

and switchgear. Superfecta also employs a team of mechanical experts. The<br />

company prides itself on the supply, installation and maintenance of mechanical<br />

work and boasts over 14 years of experience in the mechanical field.<br />

Superfecta has strategically partnered with three internationally recognised<br />

companies: Thomas C. Wilson (New York), Schneider Electric<br />

(South Africa) and Jinshanmen Electrical Co. (China). The partnerships<br />

have enhanced our performance and enabled us to be the providers of<br />

the latest technology.<br />

Ownership Status<br />

100% black-owned registered company, with 55% of the shares owned<br />

by women.<br />

Our Vision<br />

To be the leading electro-mechanical specialist in energy solutions across<br />

Southern Africa. Superfecta aspires to excellence, innovation and transparency;<br />

three prominent features that distinguish us in the marketplace<br />

and uphold our vision.<br />

Our Mission<br />

To enable our clients to ensure reliable energy supply through cost-effective<br />

and quality manufacturing, supply, installation and maintenance of infrastructure.<br />

Superfecta strives to deliver the best solutions which are achieved with<br />

strong partnerships and joint ventures<br />

with local and international entities<br />

that share our values and objectives.<br />

We have a full complement of highly<br />

skilled engineers, technical and administrative<br />

staff. All efforts are geared<br />

towards compliance with health and<br />

safety standards.<br />

Sectors<br />

Superfecta works in a variety of sectors,<br />

including but not limited to:<br />

• mining<br />

• provincial and local government<br />

• utilities<br />

• transport<br />

• oil and gas.<br />

Professional Services<br />

Superfecta is a one-stop shop for all<br />

transformer and transformer-related<br />

work and we pride ourselves on delivering<br />

a comprehensive and complete<br />

service, including the supply of transformers<br />

for:<br />

• The mining industry<br />

• Dry-type mining<br />

• Distribution transformers<br />

• Power transformers.<br />

• All our transformers are SABS and<br />

IEC compliant and operate at<br />

MPUMALANGA NORTHERN CAPE BUSINESS <strong>2018</strong>/<strong>19</strong><br />

36 48


higher efficiencies than any other on the market. Our turnaround<br />

time is less than 60 days, which is a market-beater.<br />

What gives Superfecta a competitive<br />

edge in the industry is investment in<br />

the latest systems and technologies. The<br />

company invested millions of rands in an<br />

integrated maintenance software called<br />

Archibus. Our maintenance system goes<br />

above and beyond the management<br />

of the maintenance process and asset control by recognising that these<br />

processes are just a small part of a full life cycle. The intellectual capability<br />

of the system enables us to ensure that our customers are well taken care<br />

of by indicating when the following maintenance schedules should take<br />

place. We also provide our clients with 24/7/365 support.<br />

Transformer oils undergo electrical<br />

stresses while the transformer is in operation.<br />

This, combined with the contamination<br />

caused by the chemical interactions<br />

with windings and other solid insulations,<br />

gradually render it ineffective. Regular purification<br />

is paramount. We periodically<br />

test for electrical and chemical properties to make sure that the oil is suitable<br />

for further use and provide the purification services needed to extend the<br />

life of your transformer oil. This can be done online or offline.<br />

Superfecta has played a significant role in the economic development<br />

of South Africa, not only through employment, but also through infrastructure<br />

development both in rural and urban areas. We pride ourselves<br />

on having installed electricity in over 500 households in rural parts of<br />

South Africa. The company has not only done an outstanding job but<br />

raised the bar in successfully electrifying villages in the geographically<br />

challenging landscape of KwaZulu-Natal.<br />

With a professional team of mechanical technologists, Superfecta prides<br />

itself on the supply, installation and maintenance of mechanical work. Our<br />

services include, but are not limited to:<br />

• Supply and installation of heat exchangers tubes, boiler tubes, steam<br />

pipes and primary air heater<br />

• Supply and replacement of pipe works (ash, sluice lines, etc)<br />

CONTACT INFO<br />

Physical address: 23 Catalunya Raceway Industrial Park,<br />

Gosforth Park, Germiston, Johannesburg 14<strong>19</strong><br />

Telephone: +27 11 8693607<br />

Fax: +27 11 825 0086<br />

Email: info@superfectatrading.co.za<br />

Website: www.superfectatrading.co.za<br />

PROFILE<br />

• Replacement and new installation<br />

of steel pipe works<br />

• Supply and installation of<br />

pumps<br />

• Supply and hire of tubetesting<br />

machine, tube cleaners,<br />

vacuum leak dictator, tube cutters,<br />

expanding machine<br />

• Mechanical engineering (pipe<br />

fitting and rigging)<br />

• Steel pipe jacking and fitting,<br />

supply and install concrete<br />

jacks, jacks under roads and<br />

gas lines.<br />

All industrial concerns require a<br />

complex system of electrical networks<br />

to function efficiently and<br />

successfully. Superfecta both installs<br />

and conducts repairs to high<br />

tension electrical circuits.<br />

We also oversee electrical reticulation<br />

(urban and rural), electricity<br />

meters (prepaid and smart meters)<br />

and electricity works.<br />

Clients<br />

Superfecta is an ISO 9001:2008 certified<br />

company that fully embraces<br />

a Total Quality Management<br />

philosophy in streamlining all<br />

its business processes. Clients<br />

include Rand Water, FNB, MTN,<br />

Airports Company South Africa,<br />

Total, Transnet, Passenger Rail<br />

Agency of South Africa and<br />

Eskom. Superfecta has done work<br />

for the public works departments<br />

of three provinces, the City of<br />

Johannesburg and several other<br />

municipalities.<br />

49 37 NORTHERN MPUMALANGA CAPE BUSINESS <strong>2018</strong>/<strong>19</strong>


OVERVIEW<br />

Forestry and paper<br />

Sustainable resource management is a priority for timber companies.<br />

<strong>Mpumalanga</strong> has 40% of South Africa’s forestry resources.<br />

This fact presents an opportunity to exploit the sector’s<br />

by-products in the biomass-to-energy field.<br />

The Zebra Pellets plant in Sabie is to be converted<br />

by national utility Eskom into a torrefied pellet plant. The wood will<br />

be provided to the plant (owned by the Industrial Development<br />

Corporation) and then heated without the use of oxygen (torrefied)<br />

which creates a coal-like product without the carbon.<br />

Plans to develop an Agriculture and Forestry Technology Park are<br />

being drawn up by the Provincial Government of <strong>Mpumalanga</strong>. The<br />

<strong>Mpumalanga</strong> Economic Growth and Development Path (MEGDP)<br />

intends to expand the industrial base of the provincial economy,<br />

with a focus on beneficiation, agri-processing and value chain<br />

development.<br />

When forestry managers, contractor and forestry equipment<br />

suppliers gather at the biannual Focus on Forestry conference in<br />

White River in 20<strong>19</strong>, the theme will be “Bridging the digital divide<br />

in the African forestry sector”.<br />

Sustainability is a key area for companies in the forestry sector<br />

and advances in the Internet of Things and AI are being keenly<br />

monitored for ways to enhance margins in an environmentally<br />

sound way.<br />

The conference, which also looks at topics such as silviculture,<br />

fire management and forest engineering, alternates between<br />

<strong>Mpumalanga</strong> and KwaZulu-Natal and will be jointly organised<br />

SECTOR INSIGHT<br />

The Focus on Forestry conference<br />

will target digital<br />

solutions.<br />

in 20<strong>19</strong> by the Centre for the<br />

Modernisation of Forestry<br />

Operations (CMO), the Institute<br />

for Commercial Forestry Research<br />

(KZN University) and the Nelson<br />

Mandela University.<br />

Forestry accounts for about<br />

8% of <strong>Mpumalanga</strong>’s gross<br />

domestic product. The sector<br />

comprises logging, saw-milling,<br />

wood product and pulp and<br />

paper manufacture. Pulp and<br />

paper are the main exports,<br />

along with sawn lumber, wood<br />

chips and wattle extract. Most<br />

sawn timber in South Africa is<br />

used in the construction sector.<br />

<strong>Mpumalanga</strong> has the ideal<br />

climate and topography for<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong><br />

38


OVERVIEW<br />

forests. Sabie and Graskop represent the hub of the industry, but<br />

commercial forests are also found to the east and south along the<br />

Swaziland border. About 11% of the land mass is forested, with 4% of<br />

that being natural forest. The province is the national leader in total<br />

hectares under forest (514 000ha) and in export earnings.<br />

York Timbers owns and operates five processing plants, including<br />

the largest sawmill and plywood plants in South Africa, and it has<br />

60 470 planted hectares. The company is considering investing in<br />

biomass energy generation. The Industrial Development Corporation<br />

(IDC) has a stake in York Timbers and a 42.6% share in Hans Merensky<br />

Holdings, a company with timber and processing interests in three<br />

provinces. Merensky is responsible for 20% of South Africa’s sawn<br />

pine lumber.<br />

The Mondi Group has extensive forestry holdings in the province<br />

and has been working on introducing a higher degree of mechanisation<br />

in its operations. Mondi has also instituted an ecosystem management<br />

plan throughout its forestry operations with the intention of better<br />

managing the impact its work has on the environment.<br />

Although local demand is dwindling, the export market for pulp<br />

and paper is strong. Pulp production figures have been on the rise<br />

for several years and companies like Mondi are increasingly focusing<br />

on pulp export because of better margins.<br />

Big investment<br />

Ongoing investment at Sappi’s giant Ngodwana Mill will contribute<br />

R13-billion to the provincial economy over 20 years (Premier’s State<br />

of the Province Address). Sappi has two large facilities in the province.<br />

Ngodwana which produces its own energy, makes dissolving wood pulp.<br />

About 70% of the mill’s product is exported. It produces paper grade<br />

pulp together with newsprint, containerboard and dissolving wood pulp.<br />

It is located near Sappi’s commercial forestry operations and produces<br />

210 000 tons of dissolving wood pulp and 380 000 tons of paper (including<br />

kraft linerboard). Sappi’s Lomati Sawmill in Barberton produces<br />

ONLINE RESOURCES<br />

Centre for the Modernisation of Forestry Operations:<br />

www.cmogroup.net<br />

Forestry South Africa: www.forestry.co.za<br />

Institute for Commercial Forestry Research: www.icfr.ukzn.ac.za<br />

National Department of Agriculture, Forestry and Fisheries:<br />

www.daff.gov.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 />

kiln-dried Southern African pine<br />

lumber from sawlogs supplied by<br />

Sappi Forests.<br />

In 2017 Sappi built a sugar extraction<br />

demonstration plant at<br />

Ngodwana. Findings from the<br />

experiment will help to improve<br />

the process of extracting biorenewable<br />

chemicals. Sappi<br />

is partnering with Valmet, a<br />

Finnish company.<br />

PG Bison has a board plant<br />

in Piet Retief. Sonae Rauco runs<br />

large plants at White River and<br />

Panbult. Komatiland Forests,<br />

a 100%-owned subsidiary of<br />

state company SAFCOL, has big<br />

plantations in several districts.<br />

TWK is a R6-billion agricultural<br />

company with its headquarters<br />

in Mkhondo (Piet Retief).<br />

Asset management company<br />

Global Environment Fund created<br />

Imvelo Forests and in 2015 the<br />

company investigated using<br />

thermal imaging to detect fires.<br />

Among the other private timber<br />

growers in the province are<br />

Pull Scar Timber Co, and United<br />

Forest Products.<br />

The Community Conservation<br />

Resilience Initiative (CCRI) has<br />

been introduced to <strong>Mpumalanga</strong>,<br />

on the basis that local communities<br />

can play a big role in biodiversity<br />

conservation and restoration.<br />

The first two communities<br />

to be part of CCRI are Mariepskop<br />

and Houtbosloop Valley.<br />

The Lowveld Botanical<br />

Gardens in Nelspruit has more<br />

than 650 of the 1 000 trees<br />

indigenous to South Africa.<br />

The Council for Scientific and<br />

Industrial Research’s (CSIR)<br />

forestry-research unit aims to<br />

improve tree breeds.<br />

39 MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong>


OVERVIEW<br />

Oil and gas<br />

A natural gas pipeline runs through <strong>Mpumalanga</strong>’s Special Economic Zone.<br />

About 60-million litres of liquid fuel is produced each day at<br />

the coal-to-liquid plant run by Sasol at Secunda. A major<br />

mine replacement programme is now complete and Sasol<br />

has secured feedstock until the year 2050.<br />

There is increased interest in gas as a source of energy although<br />

the country currently only has one gas-to-liquids plant (in the<br />

southern Cape). A national Gas Utilisation Master Plan (GUMP) is<br />

being developed. In 2016 the Department of Trade and Industry (dti)<br />

established a Gas Industrialisation Unit (GIU) which will make plans to<br />

exploit the huge fields of natural gas off the coasts of Mozambique<br />

and Angola and boost industrialisation in South Africa.<br />

Much of the Mozambique resource is already piped to the industrial<br />

heartland of South Africa and the promoters of the Nkomazi Special<br />

Economic Zone believe that the fact that a natural gas pipeline passes<br />

through the SEZ is a big selling point.<br />

The Liquefied Natural Gas Independent Power Producer<br />

Procurement Programme (LNG IPPPP) is part of the broader<br />

programme of the Department of Energy which encourages private<br />

investment in renewable energy, namely the Renewable Energy<br />

Independent Power Producer Procurement Programme (REIPPPP).<br />

The total allocated to gas-to-power in the national power plan is<br />

3 726MW, of which 3 000MW is for LNG.<br />

SECTOR INSIGHT<br />

National government is<br />

setting new gas policies.<br />

The major economic sectors<br />

using gas are the metals sector<br />

and the chemicals, pulp and paper<br />

sector. Brick and glass manufacturers<br />

are also big consumers.<br />

Transnet Pipelines runs a<br />

3 800km network of underground,<br />

high-pressure petroleum<br />

and gas pipelines throughout<br />

the eastern parts of South<br />

Africa. The company’s sophisticated<br />

new multi-product pipeline<br />

(NMPP) between the coast<br />

and Gauteng brings a range of<br />

products to the manufacturing<br />

heartland of South Africa.<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong><br />

40


OVERVIEW<br />

International chemicals and energy company Sasol has several<br />

large plants in <strong>Mpumalanga</strong> and plays a major role in the economy<br />

of <strong>Mpumalanga</strong>.<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 (pictured)<br />

include petroleum, paraffin, jet fuel, creosote, bitumen, diesel and<br />

lubricants. Gas by-products include oxygen and acetylene, liquefied<br />

petroleum gas (LPG), and hydrogen and nitrogen. The primary<br />

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

the heart of <strong>Mpumalanga</strong>’s coalfield region.<br />

Sasol is spending about R12-billion on expanding the capacity of<br />

the synfuels plant and on installing an oxygen plant and more Sasol<br />

Advanced Synfuel (SAS) reactors to convert gas feedstock to liquid fuel.<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<br />

coal industry still has life in it (old fields are being rehabilitated and<br />

new ones created – Sasol is itself spending R15-billion on opening<br />

three) it is a finite resource.<br />

Sasol will also likely be a key player when national government<br />

delivers its new policy on the biofuel ethanol industry. Statutory<br />

minimums for biodiesel in diesel and bioethanol in ethanol will<br />

give certainty to producers and boost production levels across the<br />

country. Sasol is already making 285 000kl of absolute alcohol in<br />

ethanol from sugar fermentation annually at Secunda. The company’s<br />

sophisticated technology for deriving liquids and gasses from coal<br />

can easily be converted to biomass sources such as sugar.<br />

Exploration<br />

Sasol and the provincial government have commissioned an in-depth<br />

technical feasibility study for a Petrochemical Technology Park to be<br />

located in the province.<br />

ONLINE RESOURCES<br />

Central Energy Fund: www.cef.org.za<br />

Independent Power Producers Programme:<br />

www.ipp-projects.co.za<br />

Petroleum Agency SA: www.petroleumagency.co.za<br />

PetroSA: www.petrosa.co.za<br />

South African National Energy Association: www.sanea.org.za<br />

South African Oil & Gas Alliance: www.saoga.org.za<br />

South African Petroleum Industry Association: www.sapia.co.za<br />

Three natural gas exploration<br />

permits were awarded to<br />

Tosaco Energy in 2017 for the<br />

area between Amersfoort and<br />

Balfour in the western part of<br />

the province. Tosaco Holdings<br />

has a 25% stake in Total SA.<br />

Testing in the sandstone-rich<br />

area should be complete by<br />

20<strong>19</strong>. Two methane-gas exploration<br />

rights have been granted<br />

to Highland Exploration in the<br />

Evander area.<br />

Petroleum Agency SA is<br />

the state agency responsible<br />

for promoting and regulating<br />

exploration and production of<br />

oil and gas in the country.<br />

Many of the big mining and<br />

manufacturing concerns in<br />

<strong>Mpumalanga</strong> have long-term<br />

contracts for the supply of gas<br />

with big gas companies. Afrox<br />

and Air Liquide are two of the<br />

biggest, with the latter having<br />

3 500 national customers, which<br />

include Sappi and Sasol.<br />

When it comes to liquid<br />

petroleum gas, mostly used<br />

in households (and normally<br />

delivered by canisters), some<br />

changes are coming for<br />

consumers. The Competition<br />

Commission wants to make the<br />

sector more competitive and<br />

aims to do this by reducing the<br />

duration of contracts between<br />

bulk sellers and refineries. (Mail<br />

& Guardian). South Africa’s LPG<br />

market is worth R1.5-billion per<br />

annum and the country produces<br />

300 000 tons of product. One<br />

of the aims of the commission<br />

is to make LPG cheaper and<br />

more easily available to private<br />

consumers, who currently make<br />

up just 3% of the market.<br />

41 MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong>


OVERVIEW<br />

Water<br />

Nearly R2-billion is to be spent on bulk water and sanitation.<br />

The Provincial Government of <strong>Mpumalanga</strong> is prioritising the<br />

provision of water infrastructure projects. The Premier reported<br />

in <strong>2018</strong> that the bulk of the R1.8-billion Municipal<br />

Infrastructure Grant (MIG) will be spent on 149 water supply<br />

and sanitation projects.<br />

A joint project with Eskom related to rain water harvesting will also<br />

create jobs. The Siyasebenza Job Creation Initiative is intended to create<br />

900 jobs in the Nkangala District Municipality.<br />

A total of 327 water infrastructure projects benefiting 350 259<br />

households have been completed, with a further 165 sanitation projects<br />

(benefiting 285 065 households) also finalised. To assist municipal<br />

water provision, 582 boreholes have been drilled by the provincial<br />

authorities.<br />

A bulk water supply system connecting villages within the<br />

Bushbuckridge area such as Hluvukani, Zoeknog and Tsakani has been<br />

completed. The Blyde River Poort Dam (pictured above) supplies water<br />

for irrigation and industry at Phalaborwa.<br />

Many municipalities in <strong>Mpumalanga</strong> have struggled to provide water<br />

for their citizens. Rand Water was asked to step in and supply clean<br />

water in the Bushbuckridge area. This was followed by the national<br />

government disbanding the Bushbuckridge Water Board and Rand<br />

SECTOR INSIGHT<br />

Rain harvesting is at the<br />

centre of a job-creation<br />

initiative.<br />

Water taking over its operations.<br />

The area of supply covers<br />

Bushbuckridge and Mbombela<br />

(Ehlanzeni District Municipality)<br />

which has 15 water treatment<br />

works, with a capacity of<br />

245ml/day. Water is supplied to<br />

1.5-million people in the areas.<br />

The water treatment works include<br />

three large works (Inyaka,<br />

Hoxani and Kanyamazane) and<br />

several smaller treatment works<br />

(Thulamahashe, Acornhoek and<br />

Edinburgh) supply local communities<br />

with drinking water.<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong><br />

44


OVERVIEW<br />

Expenditure in Bushbuckridge and Mbombela over the period 2015-<br />

2020 is expected to be R600-million.<br />

This is part of a broader national strategy whereby bigger boards<br />

such as Rand Water are growing their footprint, replacing the smaller<br />

local boards which lack the skills or resources to carry out their mandate.<br />

Rand Water, which historically served greater Johannesburg, now<br />

serves an area which includes Gauteng, Limpopo (Greater Groblersdal<br />

and Great Mable Hall), North West (Rustenburg and Madibeng areas),<br />

<strong>Mpumalanga</strong> and the Northern Free State (boundary of the Upper Vaal<br />

Water Management Area). The national Minister of Water and Sanitation<br />

is the shareholder, representing the government of South Africa.<br />

The Komati Basin Water Authority (KOBWA) is an important agency<br />

in controlling water resources in the region. Formed out of a cooperation<br />

agreement between South African and Swaziland, the agency has<br />

built two large dams and is responsible for their upkeep.<br />

In terms of the National Water Resource Strategy, catchment area<br />

management agencies have been established to oversee water resource<br />

management on a regional basis. The National Water Act stipulates<br />

that water resource management functions, excluding those that<br />

have national and strategic implications, will be carried out by CMAs.<br />

The Imkomati-Usuthu Catchment Management Agency covers<br />

<strong>Mpumalanga</strong>, parts of Limpopo and part of the Kingdom of Swaziland<br />

and is responsible for water usage issues relating to the following river<br />

catchment areas: Sabie-Sand, Crocodile, Komati, Nwaswitsontso and<br />

Nwanedzi.<br />

Among the responsibilities of a CMA are checking that water is<br />

being used lawfully, allocating resources to parties along a river (farmers,<br />

municipalities or businesses), long-term planning, dam safety and<br />

checking on the quality of water.<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 />

ONLINE RESOURCES<br />

De Hoop Dam: www.dwa.gov.za/ORWRDP/DeHoop/index.asp<br />

Inkomati-Usuthu Catchment Management Agency:<br />

www.iucma.co.za<br />

Komati Basin Water Authority: www.kobwa.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 />

The completion of the De<br />

Hoop Dam means that people<br />

living in municipalities can now<br />

expect bulk water delivery. The<br />

Trans Caldeon Tunnel Authority<br />

(TCTA) is responsible for seeing<br />

that bulk water supplies are laid<br />

on but making the local connections<br />

and physically delivering<br />

the water is up to municipalities<br />

and water boards.<br />

The De Hoop Dam is<br />

the centrepiece in the large<br />

Olifants River Water Resource<br />

Development Project<br />

(ORWRDP) which is transforming<br />

the water environment for<br />

industrial, commercial and private<br />

users. As the catchment<br />

area for this huge scheme is to<br />

the north of <strong>Mpumalanga</strong>, the<br />

spinoff effect on the province<br />

is significant.<br />

The Olifants River System<br />

(and associated systems<br />

such as the Blyde Irrigation<br />

Scheme) feeds the region<br />

that is South Africa’s greatest<br />

producer of citrus and subtropical<br />

fruits.<br />

The TCTA has also delivered<br />

the Komati Water Supply<br />

Augmentation Project: an extra<br />

57-million m³ of water every<br />

year is now available for the the<br />

Duvha and Matla power stations<br />

in the Witbank area, and<br />

other water users.<br />

To make sure that its big<br />

Saiccor Mill receives enough of<br />

a steady supply of water, Sappi<br />

has raised the wall level of the<br />

Comrie Dam. Across its global<br />

operations, Sappi claims to return<br />

93% of the water it uses<br />

back into the environment<br />

once it has been cleaned.<br />

45 MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong>


PROFILE<br />

Komati Basin Water<br />

Authority<br />

Celebrating over 25 years of excellence in trans-boundary<br />

water management.<br />

Driekoppies Dam.<br />

The Komati Basin Water Authority (KOBWA) is a bi-national<br />

organisation formed through the Treaty on the Development<br />

and Utilisation of Water Resources of the Komati River Basin.<br />

The Agreement was signed by the Kingdom of eSwatini<br />

(Swaziland) and the Republic of South Africa in <strong>19</strong>92. As an implementing<br />

agent of the joint project of both countries, the organisation was<br />

tasked with designing, constructing, operating and maintaining two<br />

dams and associated infrastructure. This resulted in the construction<br />

of the Driekoppies Dam (pictured above) in Schoemansdal, South<br />

Africa (<strong>19</strong>93 to <strong>19</strong>98), and the Maguga Dam in eSwatini (<strong>19</strong>98 to 2001).<br />

Over the last 25 years, KOBWA<br />

has fostered sound transboundary<br />

relations between<br />

the Republic of South Africa and<br />

Swaziland and achieved many<br />

successes which include:<br />

• completing the construction<br />

of the Driekoppies Dam and<br />

Maguga Dam, which included<br />

community empowerment<br />

in terms of skills and employment<br />

opportunities<br />

• efficient water infrastructure<br />

management<br />

• efficient water resource<br />

management<br />

• sharing technical information<br />

with stakeholders such as<br />

the Komati Joint Operations<br />

Forum (KJOF) on a monthly<br />

basis<br />

• engaging communities in<br />

water and environment<br />

management awareness<br />

campaigns through social<br />

engagements such as football<br />

• successful management of<br />

drought cycles, including the<br />

recent severe El Nino spell<br />

experienced in 2014-2016.<br />

KOBWA also completed the<br />

access road to the Driekoppies<br />

Dam (shown, right) and constructed<br />

houses such as the<br />

Fish Eagle Bend in Malalane<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong><br />

46


PROFILE<br />

to accommodate professionals and technicians<br />

working at the dam site during the construction<br />

of the Driekoppies Dam. When these dams were<br />

built, households were successfully relocated and<br />

resettled.<br />

Building communities<br />

With the expertise of KOBWA personnel, three<br />

portable water purification plants were installed<br />

at Buffelspruit, Block-C and Gomora. These water<br />

plants augment water supply to these areas,<br />

reducing the frequency of water outages.<br />

As part of its Corporate Social Responsibility<br />

programme, KOBWA has seen schools, nongovernmental<br />

organisations and community-based<br />

organisations benefitting through the provision of<br />

water and sanitation-related amenities to improve<br />

the lives and social status of the communities.<br />

KOBWA, as an organisation rooted in communities,<br />

involved communities in both countries as part of<br />

the 25th anniversary celebrations through Corporate<br />

Social Initiative projects. At sports tournaments,<br />

community members were also educated about<br />

KOBWA’s role in trans-boundary water management.<br />

Communities that border the Driekoppies Dam<br />

(Schulzendal, Buffelspruit, Jeepes Reef, Middelplas,<br />

Schoemansdal and Driekoppies) were engaged in<br />

a soccer tournament at the Driekoppies Stadium. A<br />

one-day stakeholder soccer and netball tournament<br />

was held in Piggs Peak in eSwatini with the<br />

involvement of stakeholders of both countries to<br />

enhance and strengthen stakeholder relationship<br />

between the two countries.<br />

In future, KOBWA is looking forward to sustainable<br />

trans-boundary water resources development<br />

and management for water security for the two<br />

countries and the entire region, as water is life.<br />

Driekoppies access road.<br />

CONTACT DETAILS:<br />

Head office<br />

Maguga Dam, PO Box 678, Piggs Peak, H108, eSwatini<br />

Tel: +268 437 1463/4<br />

Fax: +268 437 1460<br />

Email: maguga.office@kobwa.co.za<br />

Water management office<br />

Driekoppies Dam, PO Box 518, Malalane, 1320, South Africa<br />

Tel: +27 (0)13 781 0317<br />

Fax: +27 (0)13 781 0320<br />

Email: driekoppies.office@kobwa.co.za<br />

Website: www.kobwa.co.za<br />

47 MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong>


OVERVIEW<br />

Manufacturing<br />

Highveld steel works lives again as an industrial park.<br />

Creative thinking kicked in when Highveld Steel’s troubles<br />

reached the tipping point in 2015. Aside from the business<br />

rescue process, which has allowed some production to restart,<br />

there is some irony in the that fact that the 1 000ha<br />

property has been re-purposed as a multi-purpose site for industry and<br />

commerce. Called the Highveld Industrial Park, this project has had the<br />

effect of promoting a diversity of manufacturing enterprises, something<br />

which has been a priority for economic planners for many years.<br />

Stockpiles of coal and vanadium are being sold off, but two iron<br />

plants and a steel plant offer fully-equipped metallurgical and steelmaking<br />

facilities, supported by environmental monitoring services and<br />

metallurgical and chemical laboratories.<br />

The private rail siding gives the park good connections and the fact<br />

that Sasol can supply methane-rich natural gas and that two gas producers<br />

(Air Liquide and African Oxygen) have plants in the park makes<br />

for an advantageous setting for industrial enterprise. The Eskom grid<br />

supplies 350mVA power supply directly. The park is near eMalahleni,<br />

next to the N4 highway and close to the N12 highway.<br />

In early <strong>2018</strong>, the park had 21 tenants and many enquiries. Tenants<br />

include a training centre funded by the Construction Sector Education<br />

and Training Authority (CETA) and a mining equipment refurbishment<br />

company. An agricultural college is planned.<br />

The structural mill of Evraz Highveld Steel in Witbank was officially<br />

relaunched in June 2017 after ArcelorMittal South Africa signed a<br />

contract to supply blooms and slabs for the mill to make into heavy<br />

SECTOR INSIGHT<br />

Most jobs in manufacturing<br />

are in food and timber.<br />

structural steel. Evraz Highveld<br />

went into business rescue in<br />

2015. The contract is for two<br />

years with an option to renew<br />

for another year. Alternately,<br />

ArcelorMittal may buy the mill<br />

after the 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.<br />

The chemicals and liquid<br />

fluids complex of Sasol at<br />

Secunda is a vital component of<br />

the province of <strong>Mpumalanga</strong>’s<br />

manufacturing sector. The<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong><br />

48


OVERVIEW<br />

company has two propylene manufacturing plants and recently<br />

completed two major investments aimed at improving flows and<br />

expanding production. This was done in two phases from 2012.<br />

Propylene is an input for polypropylene which is used in packaging,<br />

automotive components and textiles. The market is growing in South<br />

Africa at 4% per annum, roughly the same rate as the global market.<br />

Plans<br />

The provincial government has declared that it is determined “to turn<br />

<strong>Mpumalanga</strong> into a manufacturing hub for South Africa and the rest<br />

of the continent”. To that end, partnerships with Russia, China and Italy<br />

have been established to improve local knowledge of technology and<br />

to become globally competitive.<br />

This strategy could be said to have paid off when it was announced<br />

that Minsk Tractor Works is to establish an assembly plant in the<br />

province.<br />

Belarus and Oman are two of the other countries that <strong>Mpumalanga</strong><br />

is engaged with. A key objective of the provincial government’s<br />

<strong>Mpumalanga</strong> Economic Growth and Development Path (MEGDP) is<br />

to expand the industrial base of the provincial economy. To do this,<br />

policy-makers are focusing on beneficiation, agri-processing and value<br />

chain development.<br />

Samancor Chrome (which runs Ferrometals) is the second-largest<br />

ferrochrome producer in the world with three plants, two of which are<br />

in <strong>Mpumalanga</strong>: eMalahleni (Witbank) and Middelburg.<br />

Most manufacturing in the province takes place in the Highveld<br />

where there is access to chrome, steel and coal. In Middelburg, Thos<br />

Begbie makes a variety of products at its heavy engineering works.<br />

Graphite Freezeline Solutions opened a new graphite facility within<br />

the Begbie property in <strong>2018</strong>.<br />

Middelburg-based Columbus Stainless is a major supplier of<br />

stainless-steel products to the domestic and international market.<br />

About 25% of the company’s production is sold domestically.<br />

The Manganese Metal Company in Nelspruit is the largest producer<br />

ONLINE RESOURCES<br />

Highveld Industrial Park: www.highveldindustrialpark.co.za<br />

Middelburg Chamber of Commerce and 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 />

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 alkaline<br />

batteries.<br />

Agri-processing<br />

The Lowveld area supports food<br />

and beverage enterprises and<br />

timber processing. Approximately<br />

70% of jobs in the manufacturing<br />

sector are in food and forestry.<br />

A large agri-processing fruit<br />

hub is planned for the province.<br />

Located in the Nkomazi Special<br />

Economic Zone, the proposed<br />

hub, with an estimated value of<br />

R10-billion, would deal with the<br />

whole value chain from growing<br />

fruit through to processing, marketing<br />

and logistics. Having manufacturing<br />

facilities at the core of<br />

the hub will enable a variety of<br />

businesses to be established,<br />

both upstream (to supply the<br />

plant) and downstream (to deal<br />

with the products of the plant).<br />

Standerton has textilemanufacturing<br />

capacity in the<br />

form of Standerton Mills. It is also<br />

home to several plants that use<br />

local raw materials: Nestlé has<br />

an infant-cereal manufacturing<br />

plant, RCL runs farms in the<br />

Carolina district and Early Bird is<br />

prominent. McCain and PepsiCo<br />

(Simba) have plants that use the<br />

province’s plentiful potato crop.<br />

TSB Sugar runs two large mills<br />

and produces fruit juices through<br />

a subsidiary company. Nelspruit is<br />

the centre of the province’s foodprocessing<br />

cluster.<br />

49 MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong>


OVERVIEW<br />

Transport and logistics<br />

The Moloto Corridor is a key regional route.<br />

SECTOR INSIGHT<br />

The <strong>Mpumalanga</strong><br />

International Fresh Produce<br />

Market offers many logistics<br />

opportunities.<br />

Roadworks underway between Ogies and Kriel. (Photo: Raubex)<br />

In June <strong>2018</strong>, the National Department of Transport held an information<br />

session in <strong>Mpumalanga</strong> to explain to SMMEs how they can<br />

take advantage of opportunities in the infrastructure sector. Deputy<br />

Minister of Transport Sindisiwe Chikunga made presentations together<br />

with representatives from the South African National Roads<br />

Agency Limited (Sanral), Air Traffic Navigation Services (ATNS) and<br />

Airports Company South Africa (ACSA).<br />

Sanral has presented its long-term vision, Horizon 2030, as part<br />

of its contribution to the National Development Plan 2030. Road<br />

improvements which have boosted the transport infrastructure of<br />

<strong>Mpumalanga</strong> recently include the upgrades to the R570 (linking<br />

Malelane on the N4 to Swaziland), the N11 (Hendrina–Middelburg)<br />

and part of the vital R573 Moloto Road, which carries huge volumes of<br />

traffic to Gauteng and Limpopo. Sanral’s three-year plan for the R573<br />

allocates R1-billion to the project.<br />

A clause in Sanral’s contract with big companies to work on the R573<br />

ensured that small companies were involved. Raubex Construction<br />

consequently formed a joint venture with Biz Afrika, Khuluphala<br />

Tradings and Themolo <strong>Business</strong> Enterprise.<br />

The R573 forms part of the Moloto Corridor. In the long term<br />

the aim is to create a coordinated road and rail corridor including<br />

rapid rail facilities. With about 50 000 motor vehicles currently using<br />

the route every day, it represents one of the busiest parts of South<br />

Africa’s road network. The plan to<br />

upgrade the corridor is one of 18<br />

national Strategic Infrastructure<br />

Projects (SIPs). Not only will the<br />

corridor provide better linkages<br />

between the provinces and boost<br />

development along the route but<br />

improve access to the mineral<br />

reserves of the Waterberg region.<br />

The Maputo Development<br />

Corridor is Africa’s most advanced<br />

spatial development initiative<br />

(SDI) comprising road and rail<br />

infrastructure, border posts, and<br />

port and terminal facilities. Run<br />

by the Maputo Development<br />

Corridor Logistics Initiative (MCLI),<br />

the corridor runs from just outside<br />

Pretoria in Gauteng, through<br />

Witbank, Middelburg and<br />

Nelspruit in <strong>Mpumalanga</strong>, and<br />

on to Maputo in Mozambique.<br />

The already successful Maputo<br />

Development Corridor will soon<br />

receive a further boost with the<br />

upgrading of the Komatiepoort<br />

Dry Port into a Special Economic<br />

Zone. The National Department<br />

of Trade and Industry (dti) has<br />

designated the <strong>Mpumalanga</strong><br />

Economic Growth Agency<br />

(MEGA) as the lead agent to develop<br />

the SEZ.<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong><br />

50


OVERVIEW<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<br />

will allow for better movement of freight between the countries and<br />

provide a possible alternative route for freight through to Richards Bay.<br />

Fresh produce<br />

The road and rail networks of the province carry large volumes of coal<br />

and delicate fruits and vegetables for export.<br />

This is set to grow exponentially as the <strong>Mpumalanga</strong> International<br />

Fresh Produce Market (MIFPM) within the SEZ expands capacity. The<br />

groundwork has been done for the market and services are being<br />

installed. Private partners are being consulted to provide cold storage,<br />

packaging and warehouse facilities and agri-processing plants to<br />

convert the province’s many fruits and vegetable products into juices,<br />

jams and soups. Logistics will form a major part of the MIFPM offering,<br />

especially given the strategic location of the SEZ.<br />

The <strong>Mpumalanga</strong> rail system generates more freight traffic than any<br />

other province in South Africa and is of great strategic value. Transnet<br />

Freight Rail is the main operator and the chief freight movements are<br />

coal, fuel, chemicals, timber, iron and chrome ore, fruit, maize, animal<br />

feed, wholesale and retail goods, steel, building supplies, fertiliser and<br />

consumer goods. The port of Maputo in Mozambique is an attractive<br />

option for freight. The coal terminal at Richards Bay in KwaZulu-Natal<br />

receives the majority of the coal that is mined in the province.<br />

A new rail siding is being built to service the Majuba Power<br />

Station. The 68km single heavy-haul track will be a private line that<br />

is projected to cost in the region of R5-billion and create between<br />

3 500 and 5 000 jobs.<br />

Private rail operators Sheltam service the coal-mining and<br />

ferrochrome-metal industries from regional headquarters in Witbank.<br />

The company runs systems, hauls raw materials and rebuilds and<br />

refurbishes locomotives.<br />

ONLINE RESOURCES<br />

Kruger <strong>Mpumalanga</strong> International Airport: www.kmiairport.co.za<br />

Maputo Corridor Logistics Initiative: www.mcli.co.za<br />

Middelburg Airfield: http://middelburgaeroclub.com<br />

<strong>Mpumalanga</strong> Department of Public Works, Roads and Transport:<br />

http://dpwrt.mpg.gov.za<br />

Railroad Association of South Africa: www.rra.co.za<br />

South African National Roads Agency Ltd: www.sanral.co.za<br />

A grader in action at<br />

Komatipoort.<br />

Air<br />

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

International Airport (KMIA) is the<br />

province’s main airport, serving<br />

both the capital and being a<br />

convenient entry point to the<br />

southern part of Kruger National<br />

Park. Airlink has direct flights to<br />

and from Johannesburg, Cape<br />

Town, Durban and Livingstone<br />

in Zimbabwe.<br />

Hoedspruit Eastgate Airport is<br />

a popular destination for travellers<br />

on their way to private game<br />

lodges and is also near the Orpen<br />

Gate of Kruger Park. SA Express<br />

and Cemair fly to Hoedspruit from<br />

Johannesburg and Cape Town.<br />

Middelburg Airfield is one of<br />

the larger alternate airports in<br />

the province, boasting a 1.9km<br />

runway that can accommodate<br />

a 737. The annual Middelburg<br />

Air Show is held in June. Many<br />

game lodges have airstrips and<br />

helipads. SA Red Cross Air Mercy<br />

Service operates out of the old<br />

Nelspruit airport just south of<br />

the city.<br />

51 MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong>


OVERVIEW<br />

Tourism<br />

A famous old bridge is the setting for the Kruger National<br />

Park’s newest luxury accommodation.<br />

A<br />

hotel on a train on a bridge in a game reserve – it sounds<br />

like the beginning of an exciting children’s story. The Kruger<br />

Shalati Development is the Thebe Tourism Group’s latest<br />

accommodation offering in the Kruger National Park,<br />

<strong>Mpumalanga</strong>’s prime tourism asset.<br />

Guests will stay in a stationery train on the Selati Bridge which will<br />

give them great views over the Sabie River, famous for its buffalo and<br />

hippo sightings.<br />

Thebe Tourism has two other current projects in the province, the<br />

Blyde Canyon Community Project and proposed developments for<br />

Lisbon Estate which is adjacent to the Kruger National Park. The Lisbon<br />

development (not far from Skukuza Camp) is projected to comprise<br />

two hotels, retail, hospitality and dining facilities and staff housing<br />

associated with the Lisbon Estate.<br />

At Blyde Canyon, Thebe has signed an agreement with local<br />

communities with land claims in the Blyde River Canyon Nature Reserve<br />

which will involve them as shareholders in the new developments. God’s<br />

Window is to receive a Skywalk, the facilities at Bourke’s Luck Potholes will<br />

be rejuvenated, a cable car project is planned for Three Rondavels and<br />

another hotel is planned to boost accommodation options in the area.<br />

SECTOR INSIGHT<br />

The Makhonjwa Mountains<br />

are the world’s newest World<br />

Heritage Site.<br />

• A glass lift into Graskop<br />

Gorge offers unparalleled<br />

views.<br />

All of these projects have been<br />

registered with National Treasury<br />

as public-private partnerships.<br />

They are regarded as priority<br />

projects by the provincial<br />

government. The Provincial<br />

Government of <strong>Mpumalanga</strong> is<br />

looking for more private partners<br />

to invest in a range of ambitious<br />

projects to boost an already<br />

active sector that has several<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong><br />

52


OVERVIEW<br />

superb tourism assets, ranging from the iconic Kruger National Park<br />

(one of about 70 parks and reserves) to bird-watching, music festivals,<br />

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 in<br />

seeing that basic infrastructure was laid on, then the developer would<br />

build and manage a tourism facility.<br />

A transaction adviser has been appointed to flesh out these<br />

proposals for investable tourism products. An example of infrastructure<br />

investment from the government’s side is the upgrading of the<br />

Manyeleti Resort, which is ongoing.<br />

Other provincial plans regarding tourism involve promoting the<br />

province as a convention venue (a Convention Bureau has been established<br />

and the City of Mbombela is being encouraged to build a<br />

large centre), adopting a strategy to attract international air links and<br />

promoting links with foreign tourism authorities. On the final point,<br />

<strong>Mpumalanga</strong> has started a partnership with the Ural Association of<br />

Tourism in Russia whereby 10 tour operators from <strong>Mpumalanga</strong> visited<br />

Yekaterinburg and a delegation from the Sverdlovsk region visited<br />

the province.<br />

New niches in old rocks<br />

A three-billion-year-old micro-fossil found in the Makhonjwa Mountains<br />

near Barberton and the border with Swaziland is thought to be the<br />

oldest sign of life on the planet. Now the Makhonjwa Mountains,<br />

themselves somewhere between 3.2-billion and 3.6-billion years<br />

old, have been declared a World Heritage Site by the United Nations<br />

Educational‚ Scientific and Cultural Organisation (UNESCO). The tourist<br />

offering near Barberton has been branded the Genesis Route.<br />

This brings to 10 the number of World Heritage Sites in South<br />

Africa and opens up the possibility of a new type of niche tourism for<br />

ONLINE RESOURCES<br />

Graskop Gorge Lift Company:<br />

http://graskopgorgeliftcompany.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 />

<strong>Mpumalanga</strong>. In addition, funds<br />

for conservation of the area will<br />

be made available from the World<br />

Heritage Fund.<br />

Visitors to Graskop Gorge can<br />

now drop 50m into the gorge<br />

via a glass elevator which was<br />

completed by Enza Construction<br />

towards the end of 2017. Once<br />

the R25-million Graskop Gorge<br />

Tourism Attraction Centre is<br />

complete (in the course of<br />

<strong>2018</strong>), there will be a 200-seater<br />

restaurant, an overhanging<br />

veranda, a ticket office, space for<br />

three curio shops and an area for<br />

informal traders to sell their wares.<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 />

Tsogo Sun has six hotels<br />

in the province, ranging from<br />

two StayEasys to Southern Sun<br />

The Ridge, which is attached<br />

to the Ridge Casino in Witbank<br />

(Emalahleni). The Graceland<br />

Hotel Casino and Country Club<br />

in Secunda is a Peermont resort.<br />

Protea Hotels by Marriott also<br />

has six properties in <strong>Mpumalanga</strong>,<br />

including Protea Hotel Kruger Gate<br />

and Hazyview. At White River,<br />

Premier Hotel The Winkler is just<br />

20 minutes’ drive from the Numbi<br />

Gate of the Kruger National Park.<br />

Forever Resorts has a big presence<br />

in the province, catering to<br />

many caravans and campers and<br />

holiday-makers wanting to stay<br />

in chalets. There is also a four-star<br />

Forever Resorts Mount Sheba.<br />

53 MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong>


OVERVIEW<br />

Banking and financial<br />

services<br />

All the major banks have agricultural divisions.<br />

Agricultural financing is a growing sector.<br />

Agriculture is a vital part of the <strong>Mpumalanga</strong> economy and so<br />

it is logical that each of the big retails banks has specialists<br />

in the province and dedicated units.<br />

TWK Agri, a modern agricultural company which grew<br />

out of a wattle growers and timber association, offers financing and<br />

insurance together with the usual suite of agricultural services. Afgri,<br />

one of the country’s biggest agricultural companies, offers financial<br />

services (financing and insurance) under the brand Unigro. It has<br />

another service called Gro Capital Financial Services which offers<br />

more complicated products such as trade finance, foreign exchange<br />

and currency and interest rate hedging<br />

All of the big retail banks (Nedbank, Absa, Standard Bank, Capitec<br />

and First National Bank) have a solid presence in the major towns in<br />

the province. Agriculture is an important focus area for banks and<br />

most have specialised divisions such as Nedbank Agribusiness. Focus<br />

areas for this unit are agronomy (grain, oil seeds, sugar and cotton),<br />

livestock (including game farming), horticulture (fruit and vegetables,<br />

for example), and secondary agriculture which covers agricultural<br />

processing and storage.<br />

Another source of funding for farmers is the Land and Agricultural<br />

SECTOR INSIGHT<br />

Several new banking licences<br />

are in the pipeline.<br />

Development Bank of South Africa<br />

(Land Bank), a developmentfinance<br />

institution that falls under<br />

the Ministry of Finance. Standard<br />

Bank has a new black economic<br />

empowerment agricultural fund<br />

designed to support emerging<br />

farmers. The R500-million fund is<br />

designed to connect farmers who<br />

have received farms in land reform<br />

projects to agri-businesses that will<br />

buy their produce.<br />

The Masisizane Fund makes loan<br />

financing available in sectors such<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong><br />

54


OVERVIEW<br />

as agriculture and agri-processing), commercial, supply chain and<br />

manufacturing. It also offers training and technical support and funding<br />

to help businesses to comply with legislation.<br />

Changes<br />

The first new banking licence in nearly two decades was issued in 2017,<br />

to TymeDigital by Commonwealth Bank SA. The bank will have no<br />

physical branches although Tyme’s Money Transfer product, which it<br />

launched in 2016, is available at Boxer and Pick n Pay. African Rainbow<br />

Capital is the venture’s BEE partner. The banking licence is the first to<br />

be issued since Capitec was granted a licence by the South African<br />

Reserve Bank in <strong>19</strong>99.<br />

Life insurer MMI Holdings is also entering a partnership with African<br />

Bank to enable it to start taking deposits and loaning money. It intends<br />

to establish a R10-billion loan book.<br />

In a province with a high proportion of rural citizens such as<br />

<strong>Mpumalanga</strong>, the prospect of Postbank being upgraded to a fullservice<br />

bank is positive news. The current Postbank focusses on taking<br />

deposits and savings accounts. Postbank has secured a R3.7-billion<br />

loan to enable it to open its own loan book. The large geographical<br />

footprint of the Post Office will make the bank easily accessible to even<br />

remote parts of the country.<br />

Two other state-owned enterprises are looking to create banks,<br />

The Ithala Development Finance Corporation is an enterprise funder<br />

in KwaZulu-Natal that has applied for a banking licence. At national<br />

level, there is a plan to create a Human Settlements Development<br />

Bank. This would entail merging three entities: the National Housing<br />

Finance Corporation, the Housing Loan Fund and the National<br />

Urban Reconstruction and Housing Agency.<br />

The focus will be on financing housing for poorer households<br />

and for large state-funded housing projects. Part of the drive is to<br />

integrate cities better and to combat the legacy of the spatial divide<br />

ONLINE RESOURCES<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 />

Post Bank: www.postbank.co.za<br />

Public Investment Corporation: www.pic.gov.za<br />

The Land and Agricultural Development Bank of South Africa:<br />

www.landbank.co.za<br />

that apartheid left behind. Privatesector<br />

investment will be sought.<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<br />

partnerships with shops such<br />

as Boxer Stores and Pick n Pay<br />

where customers can have access<br />

to 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 reject an<br />

Internet transaction 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 />

The insurance market has<br />

become more varied over time,<br />

with a greater variety of products<br />

now available to more market<br />

segments, including middleincome<br />

earners. A typical example<br />

of a specific product that is<br />

responding to new realities is Old<br />

Mutual’s iWYZE medical gap cover,<br />

designed to pay the difference<br />

between what a medical aid<br />

scheme is willing to pay and what<br />

the hospital or doctor is charging.<br />

55 MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong>


OVERVIEW<br />

Development finance and<br />

SMME support<br />

A small loan can make a big difference.<br />

SECTOR INSIGHT<br />

Several new banking licences<br />

are in the pipeline.<br />

Research done by the Small Enterprise Development<br />

Agency (Seda) shows that a high percentage of SMMEs in<br />

<strong>Mpumalanga</strong> are in the trade and accommodation sector.<br />

Whereas the national figure is about 43%, in <strong>Mpumalanga</strong><br />

it is closer to 50%. In the third quarter of 2017, Seda calculated that<br />

the growth year-on-year of SMMEs being created reached 21% in<br />

the province.<br />

Seda has a number of incubators which it supports in the province:<br />

• Furntech, furniture manufacturing, White River<br />

• Mobile Agri-Skills Development & Training (MASDT), agricultural<br />

training, Nelspruit<br />

• <strong>Mpumalanga</strong> Stainless Initiative (MSI), stainless steel processing,<br />

Middelburg (with Columbus Stainless)<br />

• Timbali floriculture, Nelspruit<br />

• Ehlanzeni TVET College Rapid Incubator Renewable Technologies,<br />

Nelspruit.<br />

Seda is a subsidiary of the national<br />

Department of Small <strong>Business</strong><br />

Development (DSBD) and is one<br />

of the most active agencies in<br />

supporting entrepreneurs. Seda<br />

is not a financial agency, focussing<br />

rather on training and administrative<br />

support, although the agency<br />

will help SMMEs get in touch with<br />

financial bodies.<br />

When a small Witbank<br />

company approached Seda to<br />

help it become more competitive<br />

in the field of ventilation<br />

structures, air crossing tunnel<br />

structures and explosion barriers,<br />

it became clear that the pressing<br />

need was for Peneul Nathi Trading<br />

(pictured) to purchase its own<br />

corrugated iron manufacturing<br />

machine.<br />

Seda helped the entrepreneurs<br />

draw up a business plan for a<br />

loan which was presented to<br />

the Sasol Siyakha Enterprise and<br />

Suppliers Development Trust. A<br />

loan of R4.9-million was granted,<br />

and the machine was bought.<br />

Turnover increased by 48% and<br />

an additional 25 employees were<br />

added to the staff.<br />

Sappi’s long-term Ngodwana<br />

mill project will spend more than<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong><br />

56


OVERVIEW<br />

R600-million on procuring goods and supplies from broad-basedblack-economic-empowered<br />

companies, of which R51-million will<br />

go to SMMEs.<br />

Other companies supporting SMMEs through their buying chain<br />

include Woolworths and Anglo American. Woolworths is funding<br />

TechnoServe to ensure that small tomato growers can grow produce<br />

that will meet the demanding standards of the retailer, and to help<br />

them expand production. A regular supplier to Woolworths, Qutom,<br />

assists with the project.<br />

Provincial government<br />

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

agent of the provincial government’s SMME support policy.<br />

An agreement has been signed by Standard Bank and MEGA to<br />

launch 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 />

MEGA has received loan applications for R72.7-million. Rural enterprises<br />

feature strongly in the loan book profile, and there is significant support<br />

for women and youth-owned businesses.<br />

MEGA has also overseen the rehabilitation of industrial premises in<br />

former homelands and formed partnerships with financial institutions<br />

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 assist<br />

SMMEs and co-operatives to make the most of opportunities that<br />

this model will create. The construction sector has huge potential for<br />

SMMEs, with products such as bricks, doors, tiles, trusses, concrete<br />

pipes and similar products providing opportunities for growth.<br />

Research is being conducted on the agricultural or manufacturing<br />

sectors across the province to guide future interventions to support<br />

SMMEs and co-operatives.<br />

ONLINE RESOURCES<br />

Gazelles: www.nationalgazelles.org.za<br />

<strong>Mpumalanga</strong> Economic Growth Agency: www.mega.gov.za<br />

<strong>Mpumalanga</strong> Stainless Initiative: www.mpstainless.co.za<br />

National Department of Small <strong>Business</strong> Development:<br />

www.dsbd.gov.za<br />

Small Enterprise Development Agency: www.seda.org.za<br />

The provincial government<br />

plans to use state buying power<br />

to buy goods and services<br />

produced and supplied by<br />

township and rural SMMEs and<br />

co-operatives. The plan includes<br />

buying food from co-operatives<br />

to supply the school nutrition<br />

programme and the provincial<br />

traffic college.<br />

Examples of township<br />

businesses supported by the<br />

Department of Economic<br />

Development and Tourism<br />

(DEDET) are an agreement with<br />

Sumitomo Rubber SA (Dunlop)<br />

to promote local tyre enterprises<br />

and financial support for<br />

the commissioning of a sanitary<br />

towel plant by the Ntirhisano<br />

Sanitary Worker Co-operative<br />

in Bushbuckridge (and support<br />

for business development and<br />

access to market).<br />

The National Gazelles is<br />

a national SMME accelerator<br />

jointly funded by Seda and the<br />

DSBD. The aim is to identify and<br />

support SMMEs with growth<br />

potential across priority sectors<br />

aligned with the National<br />

Development Plan and Seda’s<br />

strategy. <strong>Business</strong>es can receive<br />

up to R1-million for training,<br />

productivity advice, business<br />

skills development and the<br />

purchase of equipment.<br />

The Industrial Development<br />

Corporation (IDC) is a strong<br />

supporter of SMMEs either by<br />

disbursing loans or by taking<br />

minority shares in enterprises<br />

and giving advice. The<br />

Development Bank of Southern<br />

Africa (DBSA) is another major<br />

funder of public projects.<br />

57 MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong>


OVERVIEW<br />

Education and training<br />

The University of <strong>Mpumalanga</strong> is expanding.<br />

SECTOR INSIGHT<br />

The Colliery Training College<br />

has won a national award.<br />

• The University of<br />

<strong>Mpumalanga</strong> will spend<br />

R600-million per year on new<br />

buildings.<br />

In 2017 the University of <strong>Mpumalanga</strong> built a library, a residence,<br />

executive offices, a hall and an administration building. (Photo:<br />

Federale Stene.)<br />

The University of <strong>Mpumalanga</strong> began in 2014 with 167 students<br />

and no facilities to speak of. It intends enrolling 3 220 students<br />

in 20<strong>19</strong> and has already expanded its academic courses beyond<br />

education, agriculture and a diploma in hospitality to<br />

include bachelor’s degrees in arts and commerce. Geology will soon be<br />

offered as part of a BSc. This is in response to the decision by UNESCO<br />

to declare the Barberton Makhonjwa Mountains a World Heritage Site.<br />

Students from the university punched above their weight in a 2017<br />

national competition organised by Enactus, an NGO that encourages<br />

students to develop entrepreneurial ideas that will help the world.<br />

The UMP team secured seven prizes in total, including first prizes in<br />

Local Economic Development and in the MTN SA Foundation ICT<br />

Challenge Award. The latter award was for the development of an<br />

online ICT system to assist the City of Mbombela to monitor and<br />

regulate informal trading.<br />

The main campus is at Mbombela (the former College of Agriculture)<br />

with satellites at Siyabuswa (a former education college) and<br />

KaNyamazane, which will host hospitality studies.<br />

Another <strong>Mpumalanga</strong> educational institution in the awards is the<br />

Colliery Training College, which was named by the National Skills<br />

Authority as the best artisan development programme in South Africa,<br />

2014-2016. Although the college is funded by the major coal companies<br />

such as Exxaro, South32 and Anglo American Thermal Coal, the college<br />

is not limited to the coal industry.<br />

Many of the biggest investors<br />

in the province support education<br />

initiatives. These include Sappi’s<br />

donation of several classrooms<br />

to Khanyisile Primary School<br />

near Barberton and programmes<br />

for pupils and teachers at<br />

Entabamhlophe Combined<br />

School in Elandshoek near the<br />

company’s mill at Ngodwana.<br />

More than 800 000 pupils in<br />

primary and secondary schools<br />

are beneficiaries of the provincial<br />

department of education’s school<br />

nutrition programme and 1 604<br />

schools in the province are in the<br />

‘‘no-fee school’’ category.<br />

Bursaries<br />

Several big employers in<br />

<strong>Mpumalanga</strong> support further<br />

education through bursaries.<br />

Sasol offers an all-inclusive bursary<br />

for students in engineering,<br />

science and accounting. The bursary<br />

also has performance-based<br />

awards and allowances for things<br />

like laptops and calculators. Top<br />

performers are often asked to<br />

join Sasol.<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong><br />

58


OVERVIEW<br />

Sasol has also committed to taking on qualified apprentices from<br />

the Hydra Arc academy in Secunda, another reputable training centre.<br />

Four-year bursaries at 10 institutions of higher learning have<br />

been provided to 60 <strong>Mpumalanga</strong> students by Eskom and GE Steam<br />

Power. The R30-million scheme is focussed on technicians, scientists<br />

and engineers.<br />

The provincial government intends increasing from R200-million<br />

that it currently spends on tertiary bursaries. In <strong>2018</strong> there were 1 017<br />

recipients studying across South Africa with a further 100 studying<br />

medicine, veterinary science, education (maths and science) and<br />

engineering in Russia.<br />

An inter-departmental Bursary Committee, with input from private<br />

companies, will be formed to ensure that the best candidates are<br />

selected and properly supported.<br />

Training<br />

The signing of a treaty with the Belarus region of Mogilev means that<br />

<strong>Mpumalanga</strong> students will study at the Belarussian State Agricultural<br />

Academy in agri-industry fields such as agronomy, biotechnology<br />

and aquaculture.<br />

An agreement between MEGA and Minsk Tractor Works to build an<br />

assembly plant in <strong>Mpumalanga</strong> will not only mean work and income,<br />

but it will also create opportunities for training.<br />

<strong>Mpumalanga</strong> has three Technical and Vocational Education and<br />

Training (TVET) Colleges, with an enrolment of over 36 000. UNISA,<br />

the Tshwane University of Technology and the Vaal University of<br />

Technology also have satellite campuses in the province.<br />

The three TVET colleges are: Gert Sibande (four campuses and a<br />

skills academy), Nkangala and Ehlanzeni, which has six campuses, a<br />

skills centre and a satellite campus.<br />

Ehlanzeni TVET College offers 10 National Certificate (Vocational)<br />

programmes including ICT, Finance, Economics and Accounting,<br />

Engineering and Related Design, and Tourism. Several shorter skills<br />

courses are offered: automotive repairs and maintenance, computer<br />

practice, entrepreneurship, municipal administration and<br />

communications management.<br />

ONLINE RESOURCES<br />

<strong>Mpumalanga</strong> Department of Education:<br />

www.mpumalanga.gov.za/education<br />

Sasol bursaries: www.sasolbursaries.com<br />

Southern African Wildlife College: www.wildlifecollege.org.za<br />

University of <strong>Mpumalanga</strong>: www.ump.ac.za<br />

Nkangala TVET College<br />

has Civil Engineering and<br />

Building Construction at its CN<br />

Mahlangu campus and Electrical<br />

Infrastructure Construction<br />

at three of its five campus,<br />

among its seven NCV academic<br />

programmes.<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 />

just outside Nelspruit.<br />

The MRTT’s constructiontraining<br />

facility is accredited<br />

as a Construction Centre of<br />

Excellence and offers courses<br />

in brick-laying, plumbing, carpentry<br />

and other constructionrelated<br />

skills.<br />

The Southern African Wildlife<br />

College, offering diploma and<br />

short courses in conservation, is a<br />

joint World Wide Fund for Nature<br />

South Africa (WWF-SA) and Peace<br />

Parks Foundation initiative. The<br />

college is located near the Orpen<br />

Gate on the edge of the Kruger<br />

National Park.<br />

Eskom’s Generation<br />

Learnership programme has<br />

absorbed 644 graduates into<br />

permanent employment with a<br />

further 88 undergoing training.<br />

Provincial government’s other<br />

skills initiatives include the New<br />

Venture Creation programme<br />

(youth start-up skills), the Graduate<br />

Placement Programme and the<br />

Artisan Development Programme<br />

with the Mining Qualifications<br />

Authority. There is a plan to develop<br />

a Skills Development Hub<br />

in Emalahleni, in partnership with<br />

the private sector.<br />

59 MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong>


LISTING<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: Refilwe Mtsweni<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/otp1/<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 1200<br />

Postal address: Private Bag X112<strong>19</strong>, Mbombela 1200<br />

Tel: +27 13 766 6067/8 | Fax: +27 13 766 8429<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 />

Department of Cooperative Governance and<br />

Traditional Affairs<br />

MEC: Speedy Mashilo<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 6087 | Fax: +27 13 766 8441/2<br />

Website: http://cgta.mpg.gov.za<br />

Department of Culture, Sport and Recreation<br />

MEC: Thandi Shongwe<br />

Physical address: 2nd Floor, Building 5, 7 Government Boulevard,<br />

Riverside Park Extension 2, Mbombela 1200<br />

Postal address: Private Bag X11316, Mbombela 1200<br />

Tel: +27 13 766 5032<br />

Fax: +27 13 766 5591<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 1200<br />

Postal address: Private Bag X11215, Mbombela 1200<br />

Tel: +27 13 766 4004<br />

Fax: +27 13 766 4613<br />

Website: www.dedtmpumalanga.gov.za<br />

Department of Education<br />

MEC: Sibusiso Malaz<br />

Physical address: Building 5, 7 Government Boulevard, Riverside Park<br />

Extension 2, Mbombela 1200<br />

Postal address: Private Bag X11341, Mbombela 1200<br />

Tel: +27 13 755 5000<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 1200<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 />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong> 60


LISTING<br />

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 6088<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, 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 />

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 3428<br />

Fax: +27 13 766 3456/7<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 />

Department of Social Development<br />

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

A guide to district and local municipalities in <strong>Mpumalanga</strong>.<br />

EHLANZENI DISTRICT MUNICIPALITY<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 1851<br />

Fax: +27 13 799 1865<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.nkomazi.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 />

GERT SIBANDE DISTRICT MUNICIPALITY<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 />

61<br />

MPMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong>


LISTING<br />

Govan Mbeki Local Municipality<br />

Tel: +27 17 620 6000 | Fax: +27 17 634 80<strong>19</strong><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 />

NKANGALA DISTRICT MUNICIPALITY<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 />

Website: www.victorkhanyelm.gov.za<br />

MUNICIPALITIES IN MPUMALANGA<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 />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong> 62


INTERVIEW<br />

Advocating for a just<br />

economic society<br />

The Provincial Secretary of the Black Management Forum<br />

<strong>Mpumalanga</strong>, Mawela Ndlamlenze, explains how a<br />

transformation master plan has been created.<br />

Mawela Ndlamlenze<br />

BIOGRAPHY<br />

Mawela Ndlamlenze is from<br />

Ermelo and has a qualification<br />

within the Internal Audit<br />

profession. He works in the<br />

Risk Management Section of<br />

the Govan Mbeki Municipality<br />

where he also serves on the<br />

Audit Committee and the Risk<br />

Management Committee. Having<br />

served various non-profit<br />

organisations, Mawela has various<br />

business initiatives under<br />

his company Wishful Dreams<br />

Investment.<br />

Please outline the main objectives of the Black Management Forum.<br />

The forum is committed to advocate for a just economic society for<br />

the collective advancement of primarily black people in the social and<br />

economic mainstream including:<br />

• to train and develop primarily black professionals to be effective<br />

business and management leaders<br />

• to ensure appropriate recruitment and advancement of black people<br />

into business organisations to achieve an equitable dispensation<br />

• to link public, private and academic institutions into an effective<br />

network to support interdisciplinary communications, management<br />

innovation and professional development among black people<br />

• to encourage professionals to play an active role in the broader<br />

South African community by participating in community outreach.<br />

What is your current focus?<br />

BMF <strong>Mpumalanga</strong> is focusing on corporate social investment by companies<br />

in local communities; business skills development through relationships<br />

with private organisations and state organs; mentorship; creating<br />

dialogue platforms through events that cover pertinent social issues;<br />

and canvassing for employment for our members, especially in senior<br />

positions within the private sector.<br />

What are some of the challenges facing business in <strong>Mpumalanga</strong>?<br />

The challenges our members face are access to market, access to funding,<br />

government legislation not being favourable to SMMEs and private<br />

policy that is structured in a way to disempower SMMEs.<br />

What are some of your most recent achievements?<br />

The recent achievement for BMF <strong>Mpumalanga</strong> is the facilitation between<br />

the BMF, civil society, labour unions and government in the development<br />

of the transformation master plan which seeks to outline key deliverables<br />

for transformation.<br />

How is the relationship between the BMF and civil society, labour<br />

unions and government?<br />

We are reviving and strengthening all these relationships, including the<br />

alignment with other black professional bodies.<br />

63 MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong>


INDEX<br />

INDEX<br />

Black Management Forum (BMF).................................................................................................... 63<br />

Columbus Stainless ............................................................................................................................ 7, 24<br />

Komati Basin Water Authority (KOBWA)...................................................................................... 46<br />

<strong>Mpumalanga</strong> Economic Growth Agency (MEGA)............................................12, 14, OBC<br />

MTN.......................................................................................................................................................................3<br />

Nedbank............................................................................................................................................5, 26, IBC<br />

Sasol..................................................................................................................................................................IFC<br />

Superfecta Trading................................................................................................................................... 36<br />

Transnet Pipelines..................................................................................................................................... 42<br />

MPUMALANGA BUSINESS <strong>2018</strong>/<strong>19</strong> 64


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