Mpumalanga Business 2019/20 edition

MPUMALANGA
BUSINESS
2019/20 EDITION
THE GUIDE TO BUSINESS AND INVESTMENT
IN MPUMALANGA PROVINCE
OVERVIEW
Oil and gas
Gas exploration and gas conversion are growing trends.
OVERVIEW
Manufacturing
Highveld steel works lives again as an industrial park.
JOIN JOIN US ONLINE US
SECTOR
ONLINE
INSIGHT
row the provincial economy of
ectors. Beneficiation of timber
iomass are two obvious areas
n a sector that already boasts a
Mpumalanga’s Gross Domestic
akes up 12% of South Africa’s
ducts sector contributes about
ses logging, saw-milling, wood
cture. Pulp and paper are the
, wood chips and wattle extract.
tage of sawn timber with very
n recent times due to concerns
ber in South Africa is used in
e and topography for forests.
f the industry, but commercial
uth along the Swaziland border.
, with 4% of that being natural
er in total hectares under forest
C
reative thinking kicked in when Highveld Steel’s troubles
reached the tipping point in 2015. Aside from the business SECTOR INSIGHT
rescue process, which has allowed some production to restart,
there is some irony in the that fact | that the WWW.MPUMALANGABUSINESS.CO.ZA
1 000ha
| are in food WWW.LIMPOPOBUSINESS.CO.ZA
and
Most jobs in manufacturing
WWW.GLOBALAFRICANETWORK.COM timber.
York Timbers celebrated its
centenary in 2016. International chemicals and energy company Sasol has several large
• An Agriculture and plants in Mpumalanga and plays a major role in the economy of the
Forestry Technology Park province. The company’s most recent upgrade of two polypropylene
is planned.
manufacturing plants at Secunda has been completed at a cost of
R1.1-billion.
This follows shortly after a stabilisation scheme valued at R1.3-billion
and is part of the global giant’s ongoing investment in its facilities.
Development and Tourism More than 900 jobs were created for the duration of the upgrading
project, which took place while production continued at the plant.
(DEDET) will spend R3.9-million
Polypropylene is used in packaging, automotive components and
in the 2017/18 year on textiles statutory
compliance for this park In and Mpumalanga, Sasol’s assets are Sasol Mining, Secunda Synfuels
and demand is growing every year.
other parks, which will include Operations, an Secunda Chemicals Operations and Sasol Energy.
Products manufactured at the Secunda complex include petroleum,
paraffin, jet fuel, creosote, bitumen, diesel and lubricants. Gas by-
incubation element for SMEs.
The Mpumalanga Economic products include oxygen and acetylene, liquefied petroleum gas (LPG),
Growth and Development and Path hydrogen and nitrogen. The primary feedstock for synthetic-fuel
production is coal, and the plant is located in the heart of Mpumalanga’s
(MEGDP) intends to expand the
coalfield region.
industrial base of the provincial
economy, with a focus on beneficiation,
agri-processing and
MPUMALANGA BUSINESS 2017/18
42
value
property has been re-purposed as a multi-purpose site for industry and
commerce. Called the Highveld Industrial Park, this project has had the
effect of promoting a diversity of manufacturing enterprises, something
which has been a priority for economic planners for many years.
SECTOR INSIGHT Stockpiles of coal and vanadium are being sold off, but two iron
plants and a steel plant offer fully-equipped metallurgical and steelmaking
record facilities, supported by environmental monitoring services and
Sasol produced a
volume of synfuel in metallurgical 2017. and chemical laboratories.
• Tosaco Energy is searching
for gas at three sites.
The private rail siding gives the park good connections and the fact
that Sasol can supply methane-rich natural gas and that two gas producers
(Air Liquide and African Oxygen) have plants in the park makes
for an advantageous setting for industrial enterprise. The Eskom grid
supplies 350mVA power supply directly. The park is near eMalahleni,
next to the N4 highway and close to the N12 highway.
The Sasol Synfuels refinery,
In early 2018, the park had 21 tenants and many enquiries. Tenants
which forms part of the include Sasol a complex
at Secunda, is the and only Training com-
Authority (CETA) and a mining equipment refurbishment
training centre funded by the Construction Sector Education
company. An agricultural college is planned.
mercial coal-to-liquid fuel plant in
The structural mill of Evraz Highveld Steel in Witbank was officially
the world, and forms relaunched a vital part in June 2017 after ArcelorMittal South Africa signed a
of South Africa’s oil and contract gas to sector.
In July 2017 Sasol announced
supply blooms and MPUMALANGA
slabs for the mill to make into heavy
that the synfuel plant produced MPUMALANGA a BUSINESS 2018/19
48
record annual output.
Sasol is spending about
R12-billion on expanding the
structural steel. Evraz Highveld
went into business rescue in
2015. The contract is for two
years with an option to renew
for another year. Alternately,
ArcelorMittal may buy the mill
after the two years.
The presence of Ferrometals
means that Mpumalanga is still
an important place for metals
and machinery manufacturing,
but the turbulence in the steel
sector has reminded everyone of
the need to diversify.
The chemicals and liquid
fluids complex of Sasol at
Secunda is a vital component of
the province of Mpumalanga’s
manufacturing sector. The

SASOL SECUNDA OPERATIONS
The core of Sasol’s Southern African Operations
Sasol is an international integrated chemicals and energy company. Through our
talented people, we use selected technologies to safely and sustainably source,
produce and market chemical and energy products competitively to create superior
value for our customers, shareholders and other stakeholders.
The company's Secunda Operations are the core of Sasol's Southern African Operations,
producing a wide range of petroleum products including diesel, petrol and jet fuel, as well
as chemical products which include ethylene, propylene and ammonia value chains.
The operations contribute to job creation, sustainable development and security of supply
in chemicals and energy. The site is host to the following entities: Sasol Mining, Secunda
Synfuels Operations, Secunda Chemicals Operations, Sasol Energy and Group Technology.
Sasol Mining operates ve coal mines in Mpumalanga that supply feedstock for the
Secunda Synfuels Operations complex. The coal is mainly used as gasication feedstock
and to generate electricity. Sasol Mining also exports coal from its Twistdraai Export Plant
to international power generation customers. As some of these mines are approaching the
end of their useful lives, new developments are underway to ensure continued supply
through the company's Mine replacement programme.
Secunda Synfuels Operations operates the world's largest coal-to-liquid manufacturing
facility, producing synthesis gas (syngas) through coal gasication and natural gas
reforming. The operating hub uses proprietary technology to convert syngas into
synthetic fuel components, pipeline gas and feedstock for producing chemicals.
Secunda Chemicals Operations is a large-scale integrated chemical product
manufacturing facility that produces and adds further value to the Sasol chemicals value
chains. Secunda Chemicals Operations also provides Sites Services, Infrastructure
Maintenance and Product Logistics Services for the Secunda site.
The Energy Business is key to Sasol's growth aspirations inside and outside South Africa,
manages the marketing and sales of all Sasol’s oil, gas and electricity products in Southern
Africa.
Group Technology manages Sasol's research and development, technology innovation
and management, engineering services and capital project management portfolios. The
function contributes towards Sasol's fuels and chemicals businesses to maintain growth
and sustainability through appropriate technological solutions and services.
As an active corporate citizen, Sasol invests meaningfully in communities close to its
operations with the main objective of sustainably contributing to the broader socioeconomic
development of the Mpumalanga province as well as South Africa.

For more information visit www.sasol.com.

CONTENTS
CONTENTS
Mpumalanga Business 2019/20 Edition.
Introduction
Foreword6
A unique guide to business and investment in Mpumalanga.
Mpumalanga Economic Growth Agency (MEGA) 7
Driving trade and investment in Mpumalanga.
Special features
Regional overview 8
Diversifying and growing the manufacturing sector are
priorities for the region.
Investment incentives 12
A range of incentives are available to investors, companies,
entrepreneurs and co-operatives.
Industrial parks and Special Economic Zones 18
Dedicated zones and good rates are encouraging
manufacturing.
Economic sectors
Agriculture and agri-processing 28
A second agri-hub will be completed this year.
Forestry and paper 30
Sawmills are generating energy.
Oil and gas 34
Sasol is a world leader in liquid fuels.
Water
A new dam is to be built on the Crocodile River.
35
MPUMALANGA BUSINESS 2019/20
2

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or otherwise, is coincidental.

CONTENTS
Mining40
Sasol’s R5.6-billion Impumelelo Colliery is producing coal.
Manufacturing44
Government wants to promote township
and rural manufacturing.
Transport and logistics 46
The first phase of the Moloto Corridor is complete.
Tourism48
The Mpumalanga Liberation Route has been launched.
Banking and financial services 50
Digital banking is on the rise.
Development finance and SMME support 52
Many small businesses operate in trade and accommodation.
Education and training 54
A new boarding school will assist rural children.
References
Sector contents 26
Index56
ABOUT THE COVER:
Credit: Ugurhan/iStock by Getty Images. Tourism is a key sector
in the economy of Mpumalanga. The Kruger National Park
is a vital asset in an offering that includes adventure tourism,
game viewing, heritage and natural history. Numbers of local
and international visitors are rising steadily on the back of new
products being rolled out in the province.
MPUMALANGA BUSINESS 2019/20 4

INTERVIEW
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5

FOREWORD
Mpumalanga Business
A unique guide to business, investment and tourism
in Mpumalanga.
The 2019/20 edition of Mpumalanga Business is the tenth issue
of this highly successful publication that since its launch
in 2008 has established itself as the premier business and
investment guide for the province.
In addition to the regular articles providing insight into each of the
key economic sectors of the province, there is a special focus on the
new life given to an established site at the Highveld Industrial Park and
the Nkomazi Special Economic Zone (NSEZ). A useful article on what
incentives are available to investors is included, and the Mpumalanga
Economic Growth Agency (MEGA) gives investors some perspectives
on what is available in the province.
Mpumalanga has several investment and business opportunities
in a wide range of sectors.
To complement the extensive local, national and international
distribution of the print edition, the full content can also be viewed
online at www.globalafricanetwork.com. Updated information on
Mpumalanga is also available through our monthly e-newsletter,
which you can subscribe to online at www.gan.co.za, in addition to
our complementary business-to-business titles that cover all nine
provinces as well as our flagship South African Business title.
Chris Whales
Publisher, Global Africa Network Media • chris@gan.co.za
CREDITS
Publisher: Chris Whales
Publishing director: Robert Arendse
Editor: John Young
Online editor: Christoff Scholtz
Art director: Brent Meder
Design: Tyra Martin
Production: Lizel Olivier
Ad sales: Gavin van der Merwe,
Sam Oliver, Gabriel Venter,
Vanessa Wallace, Jeremy Petersen,
Shiko Diala and Sandile Koni.
Managing director: Clive During
Administration & accounts:
Charlene Steynberg and
Natalie Koopman
Distribution & circulation
Manager: Edward MacDonald
Printing: FA Print
DISTRIBUTION
Mpumalanga Business is distributed internationally on outgoing
and incoming trade missions; through the Mpumalanga
Economic Growth Agency (MEGA); at top national and international
events; through the offices of foreign representatives in
South Africa; as well as nationally and regionally via chambers
of commerce, tourism offices, trade and investment agencies,
airport lounges, provincial government departments, municipalities
and companies.
Member of the Audit Bureau of Circulations
PUBLISHED BY
Global Africa Network Media (Pty) Ltd
Company Registration No: 2004/004982/07
Directors: Clive During, Chris Whales
Physical address: 28 Main Road, Rondebosch 7700
Postal address: PO Box 292, Newlands 7701
Tel: +27 21 657 6200 | Fax: +27 21 674 6943
Email: info@gan.co.za | Website: www.gan.co.za
ISSN 2222-3274
COPYRIGHT | Mpumalanga Business is an independent publication
published by Global Africa Network Media (Pty) Ltd. Full copyright to
the publication vests with Global Africa Network Media (Pty) Ltd. No part
of the publication may be reproduced in any form without the written
permission of Global Africa Network Media (Pty) Ltd.
PHOTO CREDITS | Highveld Industrial Park, iStock by Getty Images,
SAB Foundation, Sappi, Sasol, Seda.
DISCLAIMER | While the publisher, Global Africa Network Media (Pty)
Ltd, has used all reasonable efforts to ensure that the information contained
in Mpumalanga Business is accurate and up-to-date, the publishers
make no representations as to the accuracy, quality, timeliness, or
completeness of the information. Global Africa Network will not accept
responsibility for any loss or damage suffered as a result of the use of or
any reliance placed on such information.
MPUMALANGA BUSINESS 2019/20
6

Mpumalanga: place
of the rising sun
MESSAGE
Mpumalanga, which is in the northeast
of South Africa and borders
Mozambique and eSwatini, offers a
strategic location to investors and
export-oriented businesses.
The Mpumalanga Economic Growth Agency –
MEGA – is the official Economic Development Agency
for the provincial government of Mpumalanga.
MEGA offers a range of services to assist investors and
exporters to take advantage of the many trade and
investment opportunities in Mpumalanga Province.
The provincial economy is highly diverse, with
significant activity in mining, agriculture, stainlesssteel
production, petrochemicals, pulp and paper,
manufacturing and tourism. Mpumalanga’s position
and resources make it a valuable transport and
logistics hub.
The Mpumalanga Economic Growth Agency
(MEGA) facilitates investment in the province and
is always keen to talk to potential investors.
Investment opportunities
The recently designated Nkomazi Special
Economic Zone (SEZ) is the first SEZ to be
established in Mpumalanga Province. Located in the
town of Komatipoort, adjacent to the border with
Mozambique, the Nkomazi SEZ is to be developed as
an agro-processing hub, supported by logistics and
other related international trade services. The Nkomazi
SEZ, though a generous tax incentive package, will
seek to maximise the participation and development
of local agriculture and small and medium-sized
enterprises throughout the value chain – from
primary agriculture to the production of high-value
end products for export.
The Maputo Development Corridor (MDC)
is a Spatial Development Initiative linking Gauteng,
Mpumalanga, the Nkomazi SEZ and the Port of Maputo
in Mozambique. The MDC infrastructure supports
logistics operations and gives investors and exporters
good access to the markets of East Africa, the Indian
Ocean rim and East Asia.
The Mpumalanga International Fresh
Produce Market (MIFPM) located in the provincial
capital city of Mbombela is currently under
construction. The MIFPM will serve farmers and
customers from Mpumalanga Province, South Africa,
regional markets in eSwatini and Mozambique
and the global food market through the Port of
Maputo. Mpumalanga Province is one of South
Africa’s most productive and important agricultural
regions and plays a key role in the export profile
of South African fruit and nuts. The MIFPM offers
excellent investment opportunities for international
companies in the food industry.
MEGA services
We welcome potential investors in our province and
go out of our way to make the process of starting a
business easy. MEGA offers services in:
• Foreign Trade Promotion
• Investment Promotion
• Funding
• Property Management and Infrastructure
Development.
MEGA is focussed on customer needs and provides
innovative solutions with a high level of service. We
look forward to meeting you.
CONTACT DETAILS:
Tel: +27 13 755 6328
Fax: +27 13 755 1756
Email: info@mega.gov.za
Website: www.mega.gov.za
7 MPUMALANGA BUSINESS 2019/20

A REGIONAL OVERVIEW OF
MPUMALANGA
Diversifying and growing the manufacturing sector are priorities.
By John Young
Mpumalanga is at the centre of power
generation in South Africa, through
its coal-fired power stations. Despite
concerns about fossil fuels and their
effect on the environment, coal is going to be
around for the foreseeable future. The provincial
government is looking beyond coal towards
a renewable energy future, especially where
projects can be tackled by small businesses. There
might be opportunities in micro-hydro or rooftop
solar projects that will help to reduce dependence
on the national grid while simultaneously
promoting SMMEs.
As it happens, a number of coal mines are
receiving new investments and Sasol has just
launched the third of its replacement mines.
A major concern for provincial planners
is to diversify the economy and to grow the
manufacturing sector. The Mpumalanga
Economic Growth and Development Path
(MEGDP) identifies beneficiation, agri-processing
and the development of value chains as priorities.
Steel and associated manufacturing remains
one of the province’s strong suits, but a number
of initiatives are being pursued to promote
beneficiation and other forms of manufacture
through a clustering approach and through tax
incentives in Special Economic Zones. These
initiatives are covered in a separate article
elsewhere in this publication.
A R250-million Youth Development Fund is to
be launched in Mpumalanga, aimed at township
MPUMALANGA BUSINESS 2019/20
8

SPECIAL FEATURE
and rural businesses run by young people.
The Provincial Government of Mpumalanga is
looking to cooperate closely with some of the
large companies in the province who actively
support SMMEs through enterprise and supplier
development programmes. The Premier has
identified possible partners such as the Exxaro
Enterprise Development Fund, the Anglo Zimele
Development Fund (Youth Development Hub
and the Youth Development Initiative), the Sasol
Enterprise Development Fund, South32, Glencore
and the South African Institute of Chartered
Accountants (SAICA).
Tourism is one of the brightest jewels in the
crown of the Mpumalanga economy. International
tourist arrivals rose from 1.5-million in 2017 to
1.6-million in 2018. The Mpumalanga Tourism and
Parks Agency (MTPA) has stepped up its marketing
efforts with the result that domestic tourist arrivals
also rose from 2.2-million in 2017 to 2.9-million
in 2018. All of these tourists spent R13.1-billion,
thus contributing significantly to the provincial
economy.
The Kruger National Park remains the
province’s most visited asset but the decision by
UNESCO to afford World Heritage Site status to the
Makhonjwa Mountains near Barberton will boost
geological tourism to the province and supports
the efforts of the province to diversify its offering.
Major projects to improve tourist experiences
are underway at the Graskop Gorge (where a
transparent lift takes tourists into the depths of the
9
MPUMALANGA BUSINESS 2019/20

SPECIAL FEATURE
gorge), a skywalk is to be built at God’s Window
and a cable car is planned for Three Rondavels.
The international body’s decision has also
had the effect of expanding the curriculum at
the relatively new University of Mpumalanga. On
the basis of the UNESCO ruling, UMP is offering
geology as part of a BSc degree, to supplement
existing courses in education, agriculture and
hospitality.
Several infrastructure investment projects in
the tourism sector have been put forward by the
Mpumalanga Economic Growth Agency (MEGA).
To promote the province, the Mpumalanga
Tourism and Parks Agency regularly participates
in IMEX events in Frankfurt and Las Vegas, Africa’s
Travel Indaba and WTM Africa.
Heritage and cultural tourism are in the
spotlight because Mpumalanga is already a
leader in nature reserves and parks. There is a
special focus on BRICS countries and provincial
authorities are investigating a tourism airlift route
between Moscow and Mpumalanga. The TRILAND
partnership with Eswatini and Mozambique is
another avenue, as is the collaboration with
KwaZulu-Natal, Eswatini, Mozambique and the
Seychelles. The latter project is called east3ROUTE
Tourism Initiative and proclaims “Experience,
Adventure, Scenery and Trade” between the
participating provinces and countries.
Mpumalanga has rich and varied mineral
resources and fertile soil that supports diverse
farming operations.
The province hosts large companies in the
manufacturing sector, with internationally
renowned firms such as Sasol (synthetic fuels and
chemicals) and Xstrata (ferrochrome) having large
operations in the province. Columbus Stainless in
Middelburg is a major producer of stainless steel,
while Middelburg Ferrochrome, Thos Begbie and
the Nelspruit-based Manganese Metal Company
are among other important heavy industrial
companies.
The province’s rich agricultural produce is
used by companies such as McCain, Nestlé and
PepsiCo and there are also pulp and paper plants
(Sappi and Mondi), fertiliser facilities and textile
manufacturing concerns. The decision by Sappi
to start producing dissolving wood pulp at its
Ngodwana Mill has significantly increased the
manufacturing capacity of the province. York
Timbers is a leading forestry company and the
sugar mills and refinery of RCL Foods (formerly
TSB Sugar) are large contributors to the provincial
economy.
Sasol, the integrated oil, gas and chemicals
company, runs several plants at Secunda. Products
manufactured at the complex include synthetic
fuel, petroleum, paraffin, jet fuel, creosote, bitumen,
diesel and lubricants. The primary feedstock for
synthetic-fuel production is coal, and the plant is
in the heart of Mpumalanga’s coalfields.
More than 80% of South Africa’s coal is sourced
in Mpumalanga, with the town of Emalahleni
(Witbank) being the centre of the industry. Other
minerals found in the province include gold,
platinum group minerals, chromite, zinc, cobalt,
copper, iron and manganese.
The southern half of the eastern limb of the
platinum-rich Bushveld Igneous Complex runs
south towards the towns of Lydenburg and
Machdoadorp. Deposits of chromite, magnetite
and vanadium in this area are the basis of the
ferro-alloy complex in Witbank-Middelburg and
Lydenburg. Nkomati Mine is South Africa’s only
pure nickel operation.
Investments
The biggest companies in Mpumalanga’s most
significant sectors have been investing heavily in
infrastructure and operations. Global energy and
chemicals company Sasol regularly spends tens
of millions on upgrades and improvements at its
Secunda complex. The Sasol Synfuels refinery is
the only commercial coal-to-liquid fuel plant in
the world and constitutes a key component in
South Africa’s oil and gas sector.
Sasol Mining is also very active in the province:
three of its projects are valued at more than
R8-billion and the third and final mine in its
replacement mine project was launched in 2019.
Exxaro Resources is investing R3.8-billion in a new
mine at Belfast.
MPUMALANGA BUSINESS 2019/20
10

SPECIAL FEATURE
Another global giant, Sappi, has invested Differences in temperature and rainfall between
heavily in the conversion of its massive Ngodwana the Highveld and Lowveld can be considerable.
Mpumalanga Mill (pictured), and other has 40% companies of South in Africa’s the paper forestry One resources. of the fastest growing agricultural sectors
and forestry field such as Mondi and York Timbers is macadamia nuts. SECTOR These are INSIGHT
This fact presents an opportunity to exploit the sector’s
cultivated in the
make large contributions the province’s
economic by-products growth.
in the biomass-to-energy field. Lowveld and are exported in ever-growing
The Focus on Forestry conference
will target digital
The Zebra Pellets plant in Sabie is to be
volumes.
converted
The Nelspruit district in the Lowveld
The restarting of the Evraz Highveld steel mill in is South Africa’s second biggest producer of
by national utility Eskom into a torrefied pellet plant. The wood will solutions.
2017 was particularly good news, after the company citrus fruit, while vegetables of all sorts do well
be provided to the plant (owned by the Industrial Development
went into business rescue two years before. in this area too.
Corporation) and then heated without the use of oxygen (torrefied) in 2019 by the Centre for the
ArcelorMittal South Africa continued supplying Large parts of the province are in the so-called
which
feedstock
creates
to
a coal-like
the mill and
product
in 2019
without
took up its
the
option
carbon.
Middleveld comprising
Modernisation
high-plateau
of
grasslands.
Forestry
Plans to purchase to develop the an mill. Agriculture The rest of and the Forestry mill complex Technology Forestry Park operations are Operations are found (CMO), in central the Institute and
being property, drawn up the by rebranded the Provincial Highveld Government Business of Park, Mpumalanga. south-eastern The Mpumalanga, for Commercial but Forestry the heart Research of this
Mpumalanga is now a thriving Economic mix Growth of engineering and Development concerns, Path important (MEGDP) industry (KZN is around University) Sabie in and the the east. Nelson The
intends manufacturers, to expand the distributors industrial base and commercial
of the provincial Mpumalanga economy, forestry Mandela sector University. is one of the most
with enterprises a focus on trading beneficiation, in an established agri-processing area with and important value chain
the country: Forestry 11% of accounts the total land for about area
development. excellent infrastructure and logistics links.
of Mpumalanga is 8% covered of Mpumalanga’s either by plantations gross or
When forestry managers, contractor and forestry natural equipment forests. Large domestic sugar operations product. The are found sector
suppliers gather at the biannual Focus on Forestry conference in the south-east in comprises of the province. logging, saw-milling,
White
Geography
River in 2019, the theme will be “Bridging the digital The divide province wood has excellent product roads and and pulp railway and
in the African forestry sector”.
connections and paper is well manufacture. served by airports, Pulp and
Sustainability
The Drakensberg
is a key
escarpment
area for
sharply
companies
divides
in
the
the forestry
airstrips
sector
and heliports.
paper
The
are
Kruger
the main
Mpumalanga
exports,
western grasslands at high altitude (Highveld) International Airport and Hoedspruit Airport are
and advances in the Internet of Things and AI are being keenly along with sawn lumber, wood
and the subtropical component to the east, the the province’s two main airports.
monitored for ways to enhance margins in an environmentally chips and wattle extract. Most
Lowveld. The central region of the province The Maputo Development Corridor is a
sound way.
sawn timber in South Africa is
is mountainous, with dramatic landscapes transportation corridor comprising road, rail,
The
presenting
conference,
exciting
which
vistas
also looks
for
at
visitors.
topics
The
such as
border
silviculture,
posts, port
used
and
in
terminal
the construction
facilities, running
sector.
fire management Lebombo Mountains and forest rise in the engineering, east. alternates from between Pretoria in Gauteng Mpumalanga through Mpumalanga has the ideal to
Mpumalanga The southern and KwaZulu-Natal and northern Highveld and will regions be jointly organised
produce large quantities of field crops such as
barley, soybeans, maize, grain and sorghum.
MPUMALANGA BUSINESS 2018/19
38
Potatoes also flourish in this area.
Most of the province receives summer rainfall,
often via thunderstorms. Frost is common on the
Highveld but is almost absent in the subtropical
regions where fruit, nuts and citrus thrive.
the Port of Maputo climate in Mozambique. and topography The corridor for
supports high volumes of cross-border freight
services and aims to boost trade within and
beyond the region. Industry and tourism benefit
from the concentration of resources and ease
of transportation. This international initiative
emphasises Mpumalanga’s excellent location as
a logistics and transport hub.
11
MPUMALANGA BUSINESS 2019/20

South African
investment incentives
The South African government, particularly the Department of Trade and Industry,
has a range of incentives available to investors, existing companies,
entrepreneurs and co-operatives across many sectors.
South Africa wishes to diversify its economy
and incentives are an important part of
the strategy to attract investors to the
country. The Department of Trade and
Industry (the dti) is the lead agency in the incentives
programme, which aims to encourage local and
foreign investment into targeted economic sectors,
but the Industrial Development Corporation
(IDC) is the most influential funder of projects across
South Africa.
There a variety of incentives available and these
incentives can broadly be categorised according to
the stage of project development:
• Conceptualisation of the project –
including feasibility studies and research
and development (grants for R&D and
feasibility studies, THRIP, Stp, etc)
• Capital expenditure – involving the creation
or expansion of the productive capacity
of businesses (MCEP, EIP, CIP, FIG, etc)
• Competitiveness enhancement –
involving the introduction of efficiencies
and whetting the competitive edge of
established companies and commercial
or industrial sectors (BBSDP, EMIA,
CTCIP, etc)
MPUMALANGA BUSINESS 2019/20 12

CONTINUING TO GROW THE WOMEN IN MINING
At Exxaro, we pride ourselves in recognising that our strength lies with our people - including our female employees -
who are our greatest asset.
We are steadfast in our quest to increase the inclusivity of women at all levels of our organisation, building o n the 42%
women representation o n the Exxaro Resources Board and 33% females in top management.
www.exxaro.com

PROFILE
• Some of the incentives are sector-specific, for
example the Aquaculture Development and
Enhancement Programme (ADEP), Clothing
and Textile Competitiveness Improvement
Programme (CTCIP) and the Tourism Support
Programme (TSP).
Manufacturing
Key components of the incentive programme are
the Manufacturing Incentive Programme (MIP) and
the Manufacturing Competitiveness Enhancement
Programme (MCEP). The initial MCEP, launched in
2012, was so successful that it was oversubscribed
with almost 890 businesses receiving funding. A
second phase of the programme was scheduled
for launch in 2016. The grants are not handouts
as the funding covers a maximum of 50% of the
cost of the investment, with the remainder to be
sourced elsewhere.
The Enterprise Investment Programme (EIP)
makes targeted grants to stimulate and promote
investment, BEE and employment creation in the
manufacturing and tourism sectors. Aimed at smaller
companies, the maximum grant is R30-million.
Specific tax deductions are permissible for larger
companies investing in the manufacturing sector
under Section 12i of the Income Tax Act.
Other incentives
Other incentives available to investors and existing
businesses in more than one sector include the:
• Technology and Human Resources for Industry
Programme (THRIP)
• Support Programme for Industrial Innovation
(SPII)
• Black Business Supplier Development Programme
(BBSDP), which is a cost-sharing grant offered to
black-owned small enterprises
• Critical Infrastructure Programme (CIP) that covers
between 10% and 30% of the total development
costs of qualifying infrastructure
• Co-operative Incentive Scheme, which is a 90:10
matching cash grant for registered primary
co-operatives
• Sector Specific Assistance Scheme, which is a
reimbursable 80:20 cost-sharing grant that can
be applied for by export councils, joint action
groups and industry associations.
Incentives for SMMEs
A lot of emphasis is placed on the potential role of
small, medium and micro enterprises in job creation
and a number of incentives are designed to promote
the growth of these businesses. These include:
• Small Medium Enterprise Development
Programme (SMEDP)
• Isivande Women’s Fund
• Seda Technology Programme (Stp).
• Seda is the Small Enterprise Development Agency,
an agency of the Department of Small Business
Development that exists to promote SMMEs.
Trade-related incentives
The Export Marketing and Investment Assistance
(EMIA) Scheme includes support for local businesses
that wish to market their businesses internationally
to potential importers and investors. The scheme
offers financial assistance to South Africans travelling
or exhibiting abroad as well as for inbound potential
buyers of South African goods.
ONLINE RESOURCES
Department of Trade and Industry:
www.thedti.gov.za
Industrial Development Corporation:
www.idc.co.za
Mpumalanga Economic Growth Agency:
www.mega.gov.za
Official South African government incentive
schemes: www.investmentincentives.co.za
MPUMALANGA BUSINESS 2019/20
14

Highveld Industrial Park
Superb infrastructure on a well-located site is attracting tenants.
PROFILE
over
pace
strial
uare
ty is
ated
are
uding
lime
and
ance.
Following the closure of Evraz Highveld Steel
d unfurnished accommodation; also suitable for functions and
and Vanadium Limited and the retrenchment
of 1,700 employees in February 2016, Highveld
rk?
required a creative approach to save it from
ower stations
being demolished and sold as scrap. Highveld
the N12
Industrial Park, as it is now known, was developed from
N4
the erstwhile steelworks and has been regenerated as
a multi-purpose site for industry and commerce and is
today home to a diverse group of enterprises, including
s on site transport, manufacturing and engineering companies.
Highveld Industrial Park started with only four tenants
m the Eskom in grid 2016 and has gone from strength to strength. In
ctly supplied August by Sasol
2019, it reached the 50-tenant mark, which was a
ite purification proud moment for the Industrial Park, given the position
services
it was in less than four years ago. Highveld Industrial
d Laboratory support services
Park’s tenants currently employ over 1,000 people
s
and boasts a wide variety of companies from various
ntrol
industries, including a dragline bucket refurbishment
al and Fire-fighting
company and rail siding operators which transport coal
and ore from one of the largest private sidings owned
intment and view facilities available for rental.
by Highveld, to Richards Bay and Maputo.
ighveld Industrial NOVO Park: Energy recently launched a R130-million gas
alpark.co.za/ compression facility at the Industrial Park, which is the
only one of its kind in Mpumalanga. Highveld Industrial
book.com/highveldindustrialpark/
Park is also extremely proud of its ongoing and
consistent support of SMMEs. By offering preferential
din.com/company-beta/18156518/
rates to developing enterprises it has assisted in
shaping successful companies, ranging from recycling
ube.com/channel/UCWXlGMO1n9UXYWDmnEGMsBA
to fence installations.
The park has a number of key assets that form the
basis of its unique rental proposition that allows it to
provide a holistic rental solution to its clients; these range
from high-end administration offices and conference
rooms to heavy industrial workshops that contain
overhead cranes with capacities of up to 250 tons.
Sasol Gas supplies piped methane-rich gas through
its distribution network directly to the Park, Air Liquide
and Afrox operate their gas plants in the Industrial Park,
which makes the setting for an industrial park even
more advantageous. The Park receives a direct supply
of water from the local municipal dam and undertakes
its own purification on-site. The Eskom grid supplies
the Park directly with 350MVA power, which allows the
Park to function independently of the local municipality,
thus not burdening its infrastructure but still supporting
industry within the municipal boundaries.
Structural mill
Highveld Structural Mill is currently the jewel in the crown
of Highveld Industrial Park. It is Africa’s only producer of
heavy structural steel, as well as railway lines. The mill
was officially relaunched in June 2017 after ArcelorMittal
South Africa entered into a contract to supply blooms
and slabs for the mill to roll into heavy structural steel.
The contract was for a period of two years, with an
option for ArcelorMittal to acquire the Structural Mill
at the end of the period. On 31 July 2019, ArcelorMittal
announced its intention to purchase the mill and a sale
of business agreement was duly entered into, subject
to certain conditions being met. This is a milestone, not
only for Highveld Industrial Park, but for industry in South
Africa, as it ensures that the country maintains its strategic
steel manufacturing capability and supports jobs, while
enabling export opportunities.
CONTACT DETAILS:
Contact person: Andrea de Souza
Physical address: Old Pretoria Road,
Emalahleni,1035, South Africa
Tel: +27 71 452 9678
Email: andrea@hipark.co.za
Website: www.highveldindustrialpark.co.za
15 MPUMALANGA BUSINESS 2019/20 2017/18

INTERVIEW
Building a robust
economy in
Mpumalanga
Industrial Development Corporation Regional Manager Mashweu
Matsiela explains how the IDC’s mandate helps to improve lives.
Mashweu Matsiela
What are the key goals of the IDC in Mpumalanga?
In line with the IDC’s mandate, our goal is to provide financial and
non-financial support to entrepreneurs, thereby creating jobs and empowering
youth and women, as well as supporting black industrialists.
BIOGRAPHY
Mr Mashweu Matsiela has
been the Regional Manager
of the IDC’s Mpumalanga office
since 2013. He is currently
also the Acting Manager of the
corporation’s Limpopo office.
Having been awarded a British
Council scholarship, Mr Matsiela
pursued his tertiary education
in Scotland where he obtained
a BSc degree (Biological Sciences)
from Stirling University.
This was followed by an MBA
qualification from the University
of Pretoria, including a Graduate
Diploma in Company Direction
(GIMT). Mashweu also earned
himself a distinction on the highly
regarded Global Executive Development
Programme (GIBS).
What is your core business?
On a daily basis, we screen and assess business plans for viability. Based
on the economic merit thereof, the IDC can then decide on funding
the project under consideration. The corporation provides funding
in the form of loans, equity and guarantees, among others, to cater
for the funding needs of start-ups, expansion of existing capacities as
well as acquisitions. Our funding ranges from R1-million to R1-billion
per project.
The IDC also provides both pre- and post-investment business
support as may be required for its clients, thereby ensuring that any
gaps identified for the success of the funded entities are adequately
addressed, thereby safeguarding the corporation’s investments. For example,
if corporate governance within the funded entity is considered
unacceptable, the IDC will, through its business support programme,
ensure that appropriate interventions are implemented to address
the gap as identified.
Do you sometime hold equity for a long period?
It depends on the strategic nature of the investment. These investments
assist the IDC in fulfilling its developmental role where, for
example, preference may be given to BEE parties at the time of
disposal of shares in this regard, thereby enabling the corporation to
achieve its empowerment and transformation agenda. Furthermore,
dividends from these investments, along with interest income, contribute
significantly towards the IDC’s internally generated funds.
Do you fund projects when times are tough?
Depending on the economic merit of the entity concerned, the IDC
would provide funding because it is in our interest that these businesses
remain viable and sustainable in the long run where they will
MPUMALANGA BUSINESS 2019/20
16

INTERVIEW
continue to contribute meaningfully towards the
success of the economy of South Africa through
sustained employment opportunities, for example.
In actual fact the IDC’s developmental role is more
pronounced during tough economic conditions
as the corporation is expected to play a countercyclical
role in turning the economy around.
What prompted the IDC to open a second office
in the province?
That decision was informed by the prevalence
of economic activities in the “highveld” part of
the province, mainly in Emalahleni and the surrounding
areas. Through this new office, which is
located in Emalahleni, the IDC would like to reach
out to the rest of the province and thereby exploit
the business opportunities further afield in areas
such as Mkhondo, Secunda, Ermelo, Delmas and
Kwa-Mhlanga.
Which sectors are you supporting the most?
The IDC provides funding across the various sectors
that fall under the corporation’s funding mandate,
eg tourism, mining, manufacturing and agriculture,
all of which are some of the key economic sectors
within Mpumalanga. Please refer to the IDC website
to see the sectors that the corporation supports.
from these sectors which are expected to create
a significant number of jobs, once implemented.
Can you share with us some success stories?
Some of the IDC’s success stories within Mpumalanga
include F&K Hlakani Engineering which specialises in
steel fabrication and engineering services. Through
the IDC’s funding the company grew from humble
beginnings to become a key player that is highly
regarded in the market.
Another example of the IDC’s success in the province
is Overlooked Colliery, a mining company which
has also become a key player in the mining sector.
The financial support assisted the BEE shareholder
of Overlooked to buy the rest of the shares in the
company as well as to acquire another mine nearby.
Are there special provisions for women and
young people in IDC programmes?
Indeed, the IDC is committed towards youth and
women empowerment. The corporation has set
itself specific targets in this regard where performance
on these targets is measured accordingly
at the end of each financial year. Through
its Gro-E Youth Fund Scheme, the IDC provides
funding to youth-owned businesses at preferential
interest rates.
Where is the most growth coming from?
Mainly from mining and manufacturing. Agriculture
and tourism also present significant growth and
transformation opportunities for the IDC as evidenced
by the projects currently in our pipeline. We
have seen a number of big projects coming forward
For further details contact
IDC Mpumalanga
Tel: +27 13 752 7724
Fax: +27 13 752 8139
Email: mashweum@idc.co.za
Web: www.idc.co. za
17 MPUMALANGA BUSINESS 2019/20

SPECIAL FEATURE
Industrial parks and Special
Economic Zones
Dedicated zones and good rates are encouraging manufacturing.
A Forestry Industrial Technology Park at Sabie will increase the value
derived from the province’s trees.
South African industrial planners are creating
industrial parks and Special Economic
Zones (SEZs) as a means to cluster
together businesses that can benefit from
proximity to one another and as a way to boost local
manufacturing through incentives and tax rebates.
The policy aims to attract new skills and develop
new industries.
Key goals behind the establishment of SEZs are:
• to encourage industries to develop in clusters,
leading to economies of scale, skills-sharing and
easier access by suppliers
• to create industrial infrastructure to promote investment
• to promote cooperation between the public and
private sectors
• to use the zones as a launching pad for other
developments.
Ebrahim Patel, Minister of Trade and Industry,
meets trainees at the Highveld Industrial Park.
Apart from attracting foreign direct
investment (FDI) and boosting employment,
SEZs can also play a role in adding new
sectors or sub-sectors to an economy.
Various industrial parks (private or
public) are pursuing similar goals. The
emphasis in most of these initiatives is on
beneficiation, mainly of minerals but also
of agricultural products. South Africa’s most
recent Industrial Policy Action Plan (IPAP)
has a manufacturing focus, so beneficiation
supports the diversification of the economy.
A good example of the thinking on this
subject is illustrated by the focus on forestry
of the Mpumalanga Department of Economic
Development and Tourism (DEDT). The
department wants Mpumalanga to follow the
example of Finland where every part of a tree
is processed into products that have value.
A memorandum of understanding signed
by South Africa with Finland holds potential for
Mpumalanga, as does the planned creation
of a Forestry Industrial Technology Park at
Sabie. DEDT has also asked the state forestry
company, SAFCOL, to relocate its head offices
to the province. SAFCOL is South Africa’s thirdlargest
state-owned enterprise (SOE) and it
had revenues in 2017/18 of R926-million.
MPUMALANGA BUSINESS 2017/18 2019/20
18

Prime office and industrial
space available
FOCUS
Highveld Industrial Park offers unique variety in a prime location.
Highveld Industrial Park has over 60,000m²
of prime warehousing and workshop
space available for rental, industrial
workshops – from 420 to 3,500 square
metres. Vacant property is also available for
greenfield projects, situated on 650 hectares of
prime land.
The warehouses and workshops are suitable
for diverse purposes, including steel fabrication,
warehousing, heavy and light vehicle and
machinery maintenance. Six office blocks offer
furnished and unfurnished office space which are
also suitable for functions and training.
Where is Highveld Industrial Park?
• Within 80km of eight Eskom power stations
• 90km from Pretoria via the N4
• 120km from Johannesburg on the N12
• 200km from Mbombela on the N4
• Has an internal rail and road network.
Facilities: value-added services on-site
• Diesel supply facility
• Electricity supplied directly from the Eskom grid
• Methane-rich natural gas directly supplied by
Sasol
• Abundant raw water and on-site purification
• Round-the-clock maintenance services
• Specialised environmental and laboratory
support services
• On-site rail siding
• Canteen and laundry facilities
• 24/7 security and access control
• Emergency services: medical and fire-fighting
19 MPUMALANGA BUSINESS 2019/20

SPECIAL FEATURE
Other technology parks in the pipeline are the
Petro-Chemical Industrial Technology Park (Govan
Mbeki Municipality), Mining and Metal Industrial
Park (eMalahleni Municipality) and the Agricultural
Industrial Park in Mbombela.
A major government-led initiative in Mpumalanga
is the Nkomazi SEZ which boasts geographic and
logistical advantages and opportunities, given
its proximity to the Mozambique border and the
Mozambican port of Matola. Located in the town
of Komatipoort, the SEZ will provide access to
Mpumalanga’s neighbouring provinces Gauteng
and Limpopo and the neighbouring states of
Eswatini and Mozambique.
An agri-hub within the SEZ will deal with the
whole value chain from growing fruit through
to processing, marketing and logistics. Having
manufacturing facilities at the core of the hub will
enable a variety of businesses to be established, both
upstream (to supply the plant) and downstream (to
deal with the products of the plant).
Highveld Industrial Park
An excellent example of a private initiative in the
field of generating growth through the intelligent
use of property is the Highveld Industrial Park in
eMalahleni.
Now a thriving industrial park, the site had
been home to Evraz Highveld Steel and Vanadium.
When that company went into business rescue the
property was repurposed as an industrial park.
Tenants have reacted enthusiastically to the
new offering. The number of tenants grew by
mid-2019 to over 40, having just topped 20 in early
2018. Tenants include a training centre funded by
the Construction Sector Education and Training
Authority (CETA), several engineering concerns and
a mining equipment refurbishment company.
The property’s developers were able to
leverage all the advantages of the steel company’s
site, which is well located in terms of its access
to the industrial heartlands of two provinces,
Mpumalanga and Gauteng. Two iron plants and a
steel plant offer fully-equipped metallurgical and
steel-making facilities, supported by environmental
monitoring services and metallurgical and chemical
laboratories.
In addition, there are good rail and utility
connections, water supply and purification facilities
and a ready supply of gas from several sources. Sasol
operates in Mpumalanga and supplies methane-rich
natural gas, while industrial gas producers African
Oxygen and Air Liquide both have plants on the
premises.
In 2019 Novo Energy opened a natural-gas
compression facility within the park. Fed by the
Sasol natural-gas pipeline, the plant operates all
day, every day and supplies natural gas via its fleet
of trucks to customers in a wide variety of sectors.
Highveld Industrial Park has many types of
workshops, storage areas and offices, together with
canteens, parking areas, change rooms and a clinic.
MPUMALANGA BUSINESS 2019/20
20

INTERVIEW
Diversity of tenants shows
Highveld Industrial Park’s
versatility
CEO Johan Burger highlights the diverse range of
services enjoyed by industrial and office tenants of
Mpumalanga’s newest industrial park.
Johan Burger, CEO
Is there a clustering of
enterprises taking place?
It was always the intention to create
an Industrial Park that operates as a
“one stop shop” where businesses
are able to operate with ease
and we are pleased to see these
synergies developing between
the tenants. The park offers a
host of support services, some
of which are offered by current
tenants and others through inhouse
expertise. This ranges from
diesel supply, compressed natural
gas supply, security services, onsite
laboratory and environmental
support services to emergency
services.
What are the logistical advantages
the park enjoys?
Highveld Industrial Park has
large-scale infrastructure to deal
with the high level of traffic and heavy operations including road
infrastructure, on-site weighbridges, tipplers and cranes. The park is
ideally situated in the heart of South Africa’s coal-producing region and
within 80 kilometres of eight Eskom power stations. It is on the outskirts
of eMalahleni situated next to the N4 highway and close to the N12. One
of South Africa’s largest private sidings is directly linked to the Richards
Bay and Maputo line and in the past two years coal, in excess of threemillion
tons, has been moved through the site.
What is your unique selling proposition?
We are logistically well situated and able to provide the necessary support
services to our clients on-site, which includes provision of security,
maintenance and utilities. The current team are all ex-employees of
Evraz Highveld and have specific skills, which range from environmental
to engineering.
We pride ourselves on the diverse nature of the businesses we
have on-site and are able to accommodate with ease; no business is
too big or too small. We have a number of facilities – ranging from
offices to large heavy industrial workshops – and we can accommodate
everything in between.
How significant is the recent purchase by ArcelorMittal
of Highveld Structural Mill?
This is a significant milestone as ArcelorMittal will be one of our anchor
tenants at Highveld Industrial Park. However, this purchase is also
important for the country as it secures a strategic steel manufacturing
asset, which is the only one of its kind in Africa.
21 MPUMALANGA BUSINESS 2017/18
MPUMALANGA BUSINESS 2019/20

Introducing the Mpumalanga Economic Regulator
The Mpumalanga Economic Regulator (“MER”) is a newly
established public entity, reporting to the Department of
Economic Development and Tourism (“DEDT”) in Mpumalanga,
charged with the mandate to provide for the regulation of the
gambling and liquor industries in the Province and to provide for
any other matters connected therewith.
The entity was established on 16 October 2017, marking the
beginning of a journey as a new provincial public entity, aiming to
achieve a cohesive and streamlined approach to gambling
and liquor regulation in the Mpumalanga Province.
The establishment of the MER is a culmination of a merger
between the Mpumalanga Gambling Board (“MGB”) and the
Mpumalanga Liquor Authority (“MLA”).
Our approach
We balance robust industry supervision to prevent and minimise harm
associated with the abuse of alcohol and social impacts associated
with problem gambling. This facilitates a regulatory environment
which enables a diverse and vibrant industry and recognises the social
and economic benefits around responsible industry development. We
have leveraged on the gambling and liquor regulation to develop
holistic approaches to these issues through enhancements in licensing,
compliance, education and administration.
We take a risk-based and intelligence led approach to ensure our
resources are applied where the risk is greatest and to minimise the
burden on responsible industry. We engage with stakeholders to
appreciate current and emerging issues, to influence policy dialogue
and to encourage positive compliance behaviours and best practice
within the industries.

We are committed to ethical principles of honesty, transparency,
integrity, non-discrimination, respect for human dignity,
professionalism and accountability. We are accountable to our
stakeholders for ensuring that the entity’s business is conducted
in accordance with the highest standards of corporate governance, as
well as ethical and moral behaviours.
SPECIAL FEATURE
We continuously monitor and review the regulatory environment
for opportunities to improve regulatory efficiencies and effective
enforcement of applicable legislation, as well as minimising
harm caused by problem gambling and the abuse of alcohol.
There are fundamental reforms on both the gambling and liquor
regulation underway.
A snapshot of the regulatory environment in Mpumalanga
• Since 1994, South Africans have begun to enjoy newfound
freedom to participate in all social spheres, including the
age-old recreational activity, gambling. By legalising this
form of entertainment, government ensured a decrease in
criminality and clandestine behaviour that existed prior to the
legislation of the sector.
• Mpumalanga was the first province to establish a gambling
regulator in South Africa, post the legalisation of gambling in
1994; and the first to introduce the legalised gambling in
South Africa, i.e. casinos and limited payout machines (“LPMs”).
• The MER and predecessor entities introduced various economic
growth projects in the gambling industry; 3 licensed casinos and
the fourth casino license which is still being considered,
2 route operators linked to 213 site operators, 8 bingo operators, 4
independent site operator licences, 37 betting outlets and
1 totalisator operator linked to 27 branches/agencies.
• The industry acts as a catalyst to create a thriving urban hub around
it, which includes malls, hotels and recreation facilities. Jobs are
created, new enterprises emerge, and inevitably, other investors are
attracted to the region. This type of symbiotic development of
infrastructure works hand in hand with the tourism sector,
contributing to the influx of visitors to a region.
Chief Executive Officer: Bheki Mlambo
• In addition, industry operators are liable to pay levies and
taxes, which contribute enormously to government’s social
development commitments. The MER takes responsibility for
ensuring that these finances are accurately tallied and collected.
• On 01 April 2016, the MLA was de-linked from the DEDT, to
become a stand-alone public entity, until the merger in October 2017.
In terms of liquor licences, the entity and its predecessor entities has
granted approximately 6000 liquor licences.
• The entity is incredibly active in promoting the safe and responsible
use of gambling and liquor as a form of entertainment. It’s no secret
that gambling and liquor can become habit-forming and have the
potential to affect not only families and their livelihoods, but the
economy of a region negatively, which
is something the MER takes very seriously.
• It is the board’s mandate to adopt an honest
and open policy when it comes to the potential
negative side of these two industries, by
educating people of all cultures and
socio-economic backgrounds to
gamble responsibly and
drink responsibly.

ADVERTORIAL
SPECIAL FEATURE
Making it easier to do business with Nedbank
Whole-view Business Banking
Loderick Lubisi, Nedbank Provincial General Manager for Retail and
Business Banking for Mpumalanga, explains how Nedbank can help
business owners in the region.
on what’s most important to you – running your
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There is good news for Mpumalanga
business owners and entrepreneurs seeking
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Lubisi says his team is ready to assist clients with
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‘At Nedbank Business Banking we believe that you
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24
In line with our new brand proposition encouraging
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We recognise that farmers today face many
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‘We encourage you to see money differently with
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‘We are also involved in a number of initiatives with
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Should you be interested in taking your business to the
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loderickl@nedbank.co.za or
visit www.nedbank.co.za.

ADVERTORIAL
Nedbank Business Bundle is a game changer
with savings and personalised services for
small enterprises
The new Business Bundle from Nedbank is a game changer for small
enterprises in Mpumalanga, offering the best value for money when
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SPECIAL FEATURE
With the country’s challenging economic
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In line with Nedbank’s new brand proposition to see
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‘As a bank for small businesses we are committed
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clients’ businesses. We support their business growth
journeys by providing practical tools to help them
run their businesses,’ says Loderick Lubisi, Nedbank
Provincial General Manager, Retail and Business
Banking for Mpumalanga.
‘Small businesses are the lifeblood of our economy.
Nedbank has, over the years, instituted various
interventions aimed at giving support to the smallbusiness
sector.’
Trust us to protect your business against
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Stella Tedeschi, Regional Manager of Broker
Channels for Mpumalanga, says Nedbank
Insurance is not a one-size-fits-all business.
Nedbank Insurance has evolved into a business
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Nedbank has a team of specialists ready to provide you with
information necessary to allow you to make an informed
decision. For more information call Stella Tedeschi on
+27 (0)12 436 7659, send an email to
stellat@nedbankinsurance.co.za,
or visit www.nedbank.co.za.
To see how Nedbank can help your small business reach its
goals call Loderick Lubisi on +27 (0)13 759 4910, send an
email to loderickl@nedbank.co.za or
visit www.nedbank.co.za/business.
25
Nedbank Ltd Reg No 1951/000009/06. Nedbank Ltd Reg Authorised No 1951/000009/06 financial
Authorised financial services services and registered and registered credit credit provider provider (NCRCP16).

KEY SECTORS
Overviews of the main economic
sectors of Mpumalanga
Agriculture 28
Forestry and paper 30
Oil and gas 34
Water 35
Mining 40
Manufacturing 44
Transport and logistics 46
Tourism 48
Banking and financial services 50
Development finance and
SMME support 52
Education and training 54
Sasol’s operations at Secunda are among
the most important manufacturing facilities
in Mpumalanga province. Sasol Gas is one
of the four Sasol operations at Secunda.

OVERVIEW
Agriculture and agri-processing
A second agri-hub will be completed this year.
Small-scale farmers and co-operatives are being given a chance
to connect to the formal economy via agri-hubs which will
also provide advice and equipment. An agri-hub at Mkhuhlu,
east of Hazyview, has been established and another is set to
be completed in 2019 at Mkhondo (Piet Retief).
An International Fresh Produce Market is planned as a means of
stimulating agricultural production, but the project has stalled. The new
premier of the province has pledged that the first phase of the market’s
top structure will begin in the 2019/20 financial year.
The intention is that this facility will lead to increased volumes
supplying domestic and international markets. Each of the province’s
districts will have agri-hubs. The Department of Agriculture, Rural
Development, Land and Environmental Affairs has set up Farmer
Production Support Units in two municipalities, Bushbuckridge and
Nkomazi. A feedlot has been built at Mzinti and a R20-million packhouse
at Bushbuckridge.
Other interventions include the re-commissioning of the
Bushbuckridge poultry abattoir and support for soya and maize farmers
to supply the Lekwa Oilseed Crushing Plant in Standerton. Existing
programmes such as the Fortune 40 young farmers programme is to
be strengthened with the addition of 35 new incubation farms.
Big companies cultivate maize, sugar, timber, vegetables, fruit
and tea on a large scale in the province and are active in the
raising of poultry and cattle. Large commercial farmers account
SECTOR INSIGHT
Astral Foods in Standerton
has more than 2 400
employees.
for the bulk of crop and livestock
production.
Astral Foods runs a poultry
processing plant in Standerton
which has 2 425 employees with
a further 900 people further
down the agricultural value chain
dependent on the facility.
Agriculture is responsible for
about 3.4% of Mpumalanga’s Gross
Domestic Product (GDP). Fruits,
nuts and vegetables are major
contributors to the provincial
and national export basket and
there is still scope for expansion
in this sector, both in terms of
lands planted and in terms of
downstream beneficiation.
MPUMALANGA BUSINESS 2019/20
28

OVERVIEW
Crops
Macadamia nuts have grown in popularity exponentially in recent years.
About 4 000 hectares of new trees is added each year across South Africa,
with most of that in Mpumalanga and neighbouring Limpopo. The vast
majority of the nuts are exported, with about 40% going to China.
There are about 450 farmers growing the nuts and there are 14 cracking
factories in South Africa. The sector employs about 4 500 people, of which
1 500 are permanent employees. Barberton and Hazyview are two prime
areas for the nut.
Mpumalanga produces one-million tons of maize from 291 788ha. About
53 000 tons of wheat and 33 000 tons of sorghum are produced annually.
Soya bean is another major crop: more than half of South Africa’s soya bean
crop is produced in Mpumalanga’s Highveld areas.
Mpumalanga accounts for about 21% of South Africa’s citrus production
and a third of its export volumes, with Valencia’s being the province’s most
popular varietal and Nelspruit being the centre of the sector.
Avocados, litchis, mangoes and bananas thrive in the province. Hazyview
is an important source of bananas, with 20% of South Africa’s production
originating there.
Deciduous fruits are cultivated in smaller quantities. About 15 000 tons
of table grapes are produced in the province annually and Mpumalanga
produces its own wine.
A specialist fruit that does well in the province is the marula. The marula
fruit makes a popular beer and is used in the production of a liqueur that
has done well on the international market.
Cotton is grown mostly under dryland conditions in Marble Hall. The
province has 1 500ha of dryland under cotton. Much of South Africa’s total
annual production of about 34-million kilograms of tobacco, especially
Virginia tobacco, takes place in the north-western parts of Mpumalanga, and
in neighbouring Limpopo. Other crops produced for export in Mpumalanga
include cut flowers, pot plants and nursery plants.
Mpumalanga has the second-biggest sugar industry in South Africa,
after KwaZulu-Natal. TSB Sugar runs three mills in the Lowveld region,
ONLINE RESOURCES
Citrus Growers Association: www.cga.co.za
Fresh Produce Exporters’ Forum: www.fpef.co.za
Macadamias South Africa: www.samac.org.za
South African Cane Growers’ Association:
www.sacanegrowers.co.za
South African Subtropical Growers’ Association:
www.subtrop.net
two of which have refining
capacity, and employs about
4 700 people. More than 1 400
farmers (commercial and smallscale)
deliver sugar cane to the
company. TSB brands are Selati
(sugar) and Molatek (animal feed).
Companies
Fresh fruit and nut supplier Halls
cultivates 375ha of its own land
and has another 1 400ha under
management. Its crops include
avocados and litchis.
Westfalia is a diversified
agricultural group which runs
extensive operations in the
province. The group’s South
African operations regularly sell
more than five-million cartons of
avocados (50% of the country’s
export volume) and sevenmillion
cartons of mangoes.
Umbhaba Estates is one of the
biggest banana growers in the
province.
The drier Highveld region
with its cold winters supports
crops such as cereals, legumes
and nuts. There is extensive
irrigation in the Loskop Dam
area. Ermelo is one of South
Africa’s main centres of sheep
farming and wool production.
Subtropical fruit flourishes in
the Lowveld with the town of
Nelspruit being a major citrus
producer. Mixed farming and
potatoes, sweet potatoes and
beans are mostly found in the
southern and western parts of
the province.
29 MPUMALANGA BUSINESS 2019/20

OVERVIEW
Forestry and paper
Sawmills are generating energy.
Sustainability is the modern watchword but finding a way to
use resources for people is also popular.
The MTO Group, which has 39 900ha of plantation
under management in the Lowveld, teamed up in 2018
with mountain-bike enthusiasts of White River and Nelspruit to
develop a set of trails through the hilly landscape of the area.
One of the biggest operations in the forestry and paper sector
in Mpumalanga is Sappi’s Ngodwana mill. The mill produces
330 000 tons of paper pulp for its own consumption, 250 000
tons of dissolving wood pulp (DWP) and 380 000 tons of paper
(newsprint and kraft linerboard used for packaging) annually.
Exports account for 70% of the mill’s product.
Ongoing investment at Ngodwana Mill will contribute R13-
billion to the provincial economy over 20 years. Sappi’s other large
facility in the province, the Lomati Sawmill in Barberton, produces
kiln-dried Southern African pine lumber from sawlogs supplied
by Sappi Forests.
The mill generates its own energy through co-generation
(steam and electricity from renewable and other sources). In 2017
Sappi built a sugar extraction demonstration plant at Ngodwana.
Findings from the experiment will help to improve the process
of extracting bio-renewable chemicals. Sappi is partnering with
Valmet, a Finnish company.
Other forestry companies are looking into energy generation,
including AFCOL. Mpumalanga has 40% of South Africa’s forestry
resources. This fact presents an opportunity to exploit the sector’s
byproducts in the biomass-to-energy field.
The Zebra Pellets plant in Sabie is to be converted by national
utility Eskom into a torrefied pellet plant. The wood will be provided
to the plant (owned by the Industrial Development Corporation)
and then heated without the use of oxygen (torrified) which creates
a coal-like product without the carbon.
SECTOR INSIGHT
The MTO Group plants 18
trees every minute.
Forestry accounts for about
8% of Mpumalanga’s gross
domestic product. The sector
comprises logging, saw-milling,
wood product and pulp and
paper manufacture. Pulp and
paper are the main exports,
along with sawn lumber, wood
chips and wattle extract. Most
sawn timber in South Africa is
used in the construction sector.
Mpumalanga has the ideal
climate and topography for
forests. Sabie and Graskop
represent the hub of the industry,
but commercial forests are also
found to the east and south
along the Swaziland border.
About 11% of the land mass is
forested, with 4% of that being
natural forest. The province is the
national leader in total hectares
under forest (514 000ha) and in
export earnings.
Plans to develop an
Agriculture and Forestry
MPUMALANGA BUSINESS 2019/20
30

OVERVIEW
Technology Park are being drawn up by the Provincial Government of
Mpumalanga. The Mpumalanga Economic Growth and Development
Path (MEGDP) intends to expand the industrial base of the provincial
economy, with a focus on beneficiation, agri-processing and value
chain development.
When forestry managers, contractor and forestry equipment
suppliers gathered at the biannual Focus on Forestry conference in
White River in 2019, the theme was “Bridging the digital divide in the
African forestry sector”.
Sustainability is a key area for companies in the forestry sector and
advances in the Internet of things and AI are being keenly monitored
for ways to enhance margins in an environmentally sound way.
York Timbers owns and operates five processing plants, including
the including the largest sawmill and plywood plants in South Africa
and it has 60 470 planted hectares. The company is considering
investing in biomass energy generation. The Industrial Development
Corporation (IDC) has a stake in York Timbers and a 42.6% share in
Hans Merensky Holdings, a company with timber and processing
interests in three provinces. Merensky is responsible for 20% of South
Africa’s sawn pine lumber.
The Mondi Group has extensive forestry holdings in the province
and has been working on introducing a higher degree of mechanisation
in its operations. Mondi has also instituted an ecosystem management
ONLINE RESOURCES
Forestry South Africa: www.forestry.co.za
Institute for Commercial Forestry Research: www.icfr.ukzn.ac.za
South African Institute of Forestry: www.saif.org.za
Technical Association of the Pulp and Paper Industry of South
Africa: www.tappsa.co.za
plan throughout its forestry
operations with the intention
of better managing the impact
its work has on the environment.
Although local demand is
dwindling, the export market
for pulp and paper is strong.
Pulp production figures have
been on the rise for several
years and companies like Mondi
are increasingly focusing on
pulp export because of better
margins.
PG Bison has a board plant
in Piet Retief. Sonae Rauco runs
large plants at White River and
Panbult. Komatiland Forests,
a 100%-owned subsidiary of
state company SAFCOL, has big
plantations in several districts.
TWK is a R6-billion agricultural
company with its headquarters
in Mkhondo (Piet Retief).
Asset management company
Global Environment Fund
created Imvelo Forests and in
2015 the company investigated
using thermal imaging to detect
fires. Among the other private
timber growers in the province
are Pull Scar Timber Co, and
United Forest Products.
31
MPUMALANGA BUSINESS 2019/20

OVERVIEW
Oil and gas
Sasol is a world leader in liquid fuels.
International chemicals and energy company Sasol has several
large plants in Mpumalanga and plays a major role in the economy
of Mpumalanga. Sasol Gas is one of the four Sasol operations
at Secunda, supplying natural gas to Sasol Synfuels and buying
Sasol Synfuels’ methane-rich pipeline gas to sell to customers in
Mpumalanga and KwaZulu-Natal.
Sasol will be a key player when national government finalises
policy on biofuels. Statutory minimums for biodiesel in diesel and
bioethanol in ethanol will give certainty to producers and boost
production levels. Sasol is already making 285 000kl of absolute
alcohol in ethanol from sugar fermentation annually. About 60-million
litres of liquid fuel is produced each day at the coal-to-liquid plant
run at Secunda. Sasol has finished its mine replacement programme
and feedstock is secure until the year 2050.
There is increased interest in gas as a source of energy in
South Africa although the country currently only has one gasto-liquids
plant.
ONLINE RESOURCES
ONLINE RESOURCES
Independent Power Producers Programme:
www.ipp-projects.co.za
Petroleum Agency SA: www.petroleumagency.co.za
PetroSA: www.petrosa.co.za
SECTOR INSIGHT
A biomass project has started
at Sappi’s Ngodwana mill.
Much of the large gas resource
of Mozambique is piped to the
industrial heartland of South
Africa SECTOR and the INSIGHT promoters of the
Nkomazi Special Economic Zone
believe that the fact that a natural
gas pipeline passes through the
SEZ is a big selling point.
The Liquefied Natural Gas
Independent Power Producer
Procurement Programme (LNG
IPPPP) is part of the broader
programme of the National
Department of Energy which
encourages private investment
in renewable energy, namely the
Renewable Energy Independent
Power Producer Procurement
Programme (REIPPPP). The total
allocated to gas-to-power in the
national power plan is 3 726MW,
of which 3 000MW is for LNG.
Another part of the REIPPPP
is alternative sources such as
the conversion of biomass to
energy. At Sappi’s Ngodwana
mill, a 25MW project is underway.
Transnet Pipelines runs
a 3 800km network of
underground, high-pressure
petroleum and gas pipelines
throughout the eastern parts
of South Africa. The company’s
sophisticated multi-product
pipeline (NMPP) between the
coast and Gauteng transports
a range of liquid products.
MPUMALANGA BUSINESS 2017/18 2019/20
34

OVERVIEW
Water
A new dam is to be built on the Crocodile River.
Rapid growth in the Ehlanzeni District Municipality has led the
Provincial Government of Mpumalanga to decide to build a
new dam on the Crocodile River in the City of Mbombela.
Citizens of the Thembisile Hani Municipality will get more
immediate relief from water shortages with the construction of a treatment
plant on the Moses River. Acting on a disturbing report published
by the Centre for Environmental Rights on the way some mining
companies are using water, a provincial Environmental Management
Committee has been appointed to conduct environmental impact
analysis and assess climate change threats.
NuWater was contracted to reduce waste at the water treatment
plant for Emalahleni Municipality. An ultra-filtration technology was
used to reduce waste from 20Ml/day.
A total of 327 water infrastructure projects benefiting 350 259
households have been completed, with a further 165 sanitation projects
finalised. A bulk water supply system connecting villages within
the Bushbuckridge area has been completed. National government
has subsequently disbanded the Bushbuckridge Water Board and Rand
Water has taken over its operations.
A joint project with Eskom related to rain-water harvesting will also
create jobs. The Siyasebenza Job Creation Initiative is intended to create
900 jobs in the Nkangala District Municipality.
The Komati Basin Water Authority (KOBWA) is an important agency
ONLINE RESOURCES
De Hoop Dam: www.dhcw.co.za
Inkomati-Usuthu Catchment Management Agency:
www.iucma.co.za
Komati Basin Water Authority: www.kobwa.co.za
National Department of Water and Sanitation: www.dws.gov.za
SECTOR INSIGHT
An Environmental
Management Committee
has been established.
in controlling water resources in
the region. Formed out of a cooperation
agreement between
South African and Swaziland,
the agency has built two large
dams and is responsible for their
upkeep.
The Imkomati-Usuthu
Catchment Management Agency
covers Mpumalanga, parts of
Limpopo and part of the Kingdom
of Swaziland and is responsible for
water usage issues relating to the
following river catchment areas:
Sabie-Sand, Crocodile, Komati,
Nwaswitsontso and Nwanedzi.
The De Hoop Dam is the
centrepiece in the large
Olifants River Water Resource
Development Project (ORWRDP)
which is transforming the water
environment for industrial,
commercial and private users.
As the catchment area for this
huge scheme is to the north of
Mpumalanga, the spinoff effect
on the province is significant.
35 MPUMALANGA BUSINESS 2019/20 2017/18

FOCUS
Driekoppies Dam is the
perfect event venue
The Komati Basin Water Authority makes the dam available for events,
sports tournaments and recreational use.
The stunning beauty of the Driekoppies Dam and its
surrounds has made it possible for the Komati Basin
Water Authority (KOBWA) to convert the dam into a
suitable site for commercial and private recreational
use. This means that at a very low fee, the public can explore
and discover the scenic beauty and entertainment attractions
of the Driekoppies Dam.
In order to make the information about KOBWA’s trans-boundary
nature more appealing, KOBWA uses the edutainment approach by
hosting educational tours around the dam and sports tournaments.
Here, people can be educated
about KOBWA in a relaxed,
enabling environment and
this is accommodated at the
Driekoppies Dam.
The Driekoppies Dam is a
popular venue for music shows
and private events such as picnics,
braais, family fun days, baby
showers, and weddings. This is
MPUMALANGA BUSINESS 2019/20
36

FOCUS
because of its spacious entertainment area which overlooks
the exquisite dam. Regulars are young entrepreneurs from
areas surrounding the dam who host Sunday Sessions and
the Food Market.
It also offers a venue for traditional authorities wishing to host
cultural activities and traditional meetings. Bike rallies and fishing
tournaments by various associations are also held at the dam.
KOBWA puts safety at the forefront of all planning. There is an
implementable Emergency Preparedness Plan that involves every
segment of society, from government agencies to traditional
authorities at community level. This ensures that entertaining at
the dam is not a risk.
The Driekoppies Dam is readily available for young people who
live in the Nkomazi area as a way to promote entrepreneurship
among young people. With so many interesting things to do,
especially on weekends, the Driekoppies Dam is the perfect
destination for any event.
Africa (1993 to 1998) and Maguga
Dam in Eswatini (1998 to 2003).
The two dams were constructed
mainly to provide assurance of
water supply to the irrigators in
both member states.
Tourism is one of the spinoffs
of the development of the
Driekoppies and Maguga dams.
There has been an increase in
recreational activities in both dams.
About KOBWA
The Komati Basin Water Authority (KOBWA) is a bi-national
company formed in 1992 through the Treaty of the Development
and Utilisation of the Water Resources of the Komati River Basin.
The treaty was signed by the Government of the Kingdom of
Eswatini and the Government of the Republic of South Africa. The
authority was tasked with designing, constructing, operating and
maintaining two dams and associated infrastructure. This resulted
in the construction of Driekoppies Dam in Schoemansdal South
CONTACT DETAILS
Physical address: Komati Basin Water Authority
Driekoppies Dam
Tel: +27 13 781 0317/8/9
Fax: +27 13 781 0320
Email: driekoppies.office@kobwa.co.za
Website: www.kobwa.co.za
37 MPUMALANGA BUSINESS 2019/20

FOCUS
Water Quality Testing Laboratory
sets high standards
The Gert Sibande District Municipality’s Water Quality Testing Laboratory is the
only SANAS-accredited government-owned facility in Mpumalanga Province.
Technicians from GSDM Water Quality Testing Laboratory during an awareness programme to schools.
The Water Quality Testing Laboratory is
situated on the N17 corridor in Ermelo.
This location is bounded by the
Ekurhuleni Metro of the Gauteng Province
to the west, Sedibeng District Municipality of the
Northern Free State to the south-west, Ehlanzeni
District Municipality to the north-east, Nkangala
District Municipality to the north, Amajuba District
Municipality to the south-east and eSwatini to
the east.
The District Municipality’s Water Quality
Testing Laboratory is the only SANAS-accredited,
government-owned facility in Mpumalanga
Province and is evidence of Gert Sibande District
Municipality’s vision to be “A community-driven
district of excellence and development”.
This is also in line with the National Development
Plan (NDP) vision 2030 which is “To ensure that all
South Africans have access to clean running water
in their homes”.
The Water Quality Laboratory is an accredited
facility meeting the requirements of the ISO/
IEC 17025:2005. The centrality and the strategic
location of this facility ensures easy accessibility
by all stakeholders within the district and the
neighbouring districts.
Services
Informed by the need to improve water quality
in the district, the laboratory was established in
2011 to guarantee safe drinking water provided to
millions of citizens within the district according
to section 9 (1) of the Water Services Act No.
108 of 1997.
The facility provides chemical analysis,
microbiological analysis and physical analysis.
These services are available to all stakeholders
and customers, including local municipalities and
industries. The price list for water quality testing
offered is available on request.
MPUMALANGA BUSINESS 2019/20
38

FOCUS
In addition, the Gert Sibande Water Quality
Testing Laboratory promotes water quality and
care for water in communities through active
involvement in awareness programmes offered by
local municipalities in the district. It also promotes
careers in science by providing opportunities to
students in the form of in-service training.
The laboratory boasts the provision and
delivery of superior laboratory services and
aims to promote and support development
and culture of scientific learning. The Gert
Sibande Laboratory regards its clients as valuable
stakeholders whose interests are a priority for
the laboratory.
Office hours
Monday to Thursday: 07h30 to 13h00, 13h30 to 16h30
Friday: 07h30 to 14h00
Accredited Water Quality Testing Laboratory
situated in Ermelo, Mpumalanga.
CONTACT DETAILS
Physical address: Cnr N17 Bethal and Nespan Roads, Cassim Park
Postal address: PO Box 1748, Ermelo 2350
Tel: +27 17 801 7143
Email: laboratoryservices@gsibande.gov.za
Website: www.gsibande.gov.za
Facebook: @gertsibandedm
Twitter: @GertSibandeDM
Coordinates: S26 31’ 25.73” E29 58’ 19.25
39
MPUMALANGA BUSINESS 2019/20

OVERVIEW
Mining
Sasol’s R5.6-billion Impumelelo Colliery is producing coal.
SECTOR INSIGHT
Mineworkers at Arnot mine
have become majority
shareholders.
After Exxaro Coal Mpumalanga’s transfer of its 50% stake in
the Arnot coal mine to mineworkers at no cost, the workers
received a further 5% “free-carry” because of the specifications
of Mining Charter III. The mine thus becomes South Africa’s
first majority worker-owned mine. Wescoal is the other shareholder and
operator of the mine.
Wescoal’s profits doubled in 2018 to R202-million, proof that the coal
miner’s acquisition and expansion strategy is paying off. The company,
which runs three mines and four processing plants in Mpumalanga, has
a resource base of about 300Mt.
Although renewable energy is catching on in South Africa, there
is no prospect of Mpumalanga’s coal-fired power stations being
mothballed soon.
Nkomati Anthracite has been revived after an investment from
Unicorn Capital Partners, formerly Sentula Mining. The mine, which is
in the south-eastern corner of the province, has proven resources of
8.7-million tons and upwards of 400 jobs were created over the last two
years. Local communities have a 16.1% stake in the relaunched mine
and the Mpumalanga Economic
Growth Agency (MEGA) holds 34%.
Coal giant Exxaro, which runs
five mines in the province, has
committed R3.8-billion to its
Belfast project, an investment
that will create 1 160 jobs and
have an impact on the GDP (over
the life of the mine) of R39-billion.
Exxaro is also extending the life
of its Leeuwpan Mine by another
10 years.
Mpumalanga accounts for 83%
of South Africa’s coal production
and is the third-largest coalexporting
region in the world.
The opening in April 2019
of Sasol’s Impumelelo Colliery
south-west of Secunda was the
final phase of an investment in
new coal mines to replace three
coal mines that had reached the
end of their lives. Sasol produces
40-million tons of coal annually.
Impumelelo, which will produce
8.5-million tons per year, cost
R5.6-billion to build.
Anglo American has sold its
thermal coal operations to Seriti,
which is therefore the secondlargest
provider of thermal coal
to Eskom, supplying almost a
quarter of the utility’s annual coal
requirements.
MPUMALANGA BUSINESS 2019/20
40

OVERVIEW
State coal company AEMFC (African Exploration Mining & Finance
Corporation) runs a colliery at Vlakfontein near Ogies and is planning
to develop other projects.
South32 has four collieries and three processing plants in the province.
The company has 4 860 full-time employees and 4 400 contractors.
ArmCoal is a black-owned coal company that arose out of a deal
between Xstrata Coal SA and African Rainbow Minerals Limited (51%).
ArmCoal was the vehicle used in the creation of the large open-cut
thermal coal mine at Goedgevonden.
Contribution to regional economy
Mining’s contribution to provincial GDP is 25.9% of GDP and the
sector employs 53 000 people. Most of the province’s mining companies
are involved in training. The Colliery Training College (CTC) in
Emalahleni is owned by a consortium of companies: Exxaro, Glencore,
Kanga Coal, South32 and Izimbiwa Coal. Historically the centre was
for mining only, but now it offers a broad range of artisan training,
including auto electrician, fitting and turning and millwrights. CTC
has been recognised as a leader in artisan training by the National
Skills Authority.
Coal, platinum, gold and nickel are the province’s major mineral
resources and all are still in demand, even if coal and platinum have
experienced roller-coaster price fluctuations. South Africa produces
75% of the world’s platinum, 80% of its manganese, 73% of its chrome
and 45% of its vanadium.
Deposits of chromite, magnetite and vanadium are the basis of the
ferro-alloy complex in Witbank-Middelburg (in the District Municipality
of Nkangala) and Lydenburg (Mashishing). Nkomati Mine is South Africa’s
only pure-nickel operation. The province’s coalfields are in the south
and west of the province.
Stillwater Sibanye is the new owner of the Burnstone gold mine near
Balfour. Stonewall Resources runs the TGME Project, near the towns
of Pilgrims Rest and Sabie. Stonewall has ambitious targets of going
beyond production of 40 000 ounces from this and other historic mines
in the area.
ONLINE RESOURCES
Colliery Training College: www.ctctraining.org
Minerals Council South Africa: www.mineralscouncil.org.za
National Department of Mineral Resources and Energy:
www.dmr.gov.za
South African Institute of Mining and Metallurgy:
www.saimm.co.za
Having taken full control of
its Barberton mines, Pan African
improved its BEE position
(Shanduka Gold is a 23.8%
shareholder) and set about
increasing its annual gold output
to 100 000 ounces.
Platinum is an important
mineral for the modern economy.
Two Rivers is a joint venture
between Implats (46%) and
African Rainbow Minerals. The
operation is on the southern part
of the eastern limb of the Bushveld
Igneous Complex, south-west of
Burgersfort.
Northam Platinum, which
has assets on both limbs of the
Bushveld Igneous Complex, has
purchased the Everest mine
from Aquarius Platinum. Everest
is adjacent to Northam’s existing
Booysendal mine.
Jubilee Platinum has sold its
Smelting and Refining business
in Middelburg to Siyanda
Resources for R110.5-million.
Sylvania Platinum now has seven
PGM recovery plants that extract
chrome from tailings on both sides
of the Bushveld Igneous Complex.
Lydenburg is home to the Lion
ferrochrome smelter that is a joint
venture between Glencore and
Merafe Resources. Assmang, the
joint venture between ARM Ferrous
and the JSE-listed Assore, operates
a chrome mine (Dwarsrivier) and a
ferrochrome plant where chrome
alloys are made.
The Manganese Metal
Company (MMC) in Nelspruit
is the largest producer of pure
electrolytic manganese in the
world. MMC is owned by Samancor
(51%) and Bilston Investments
owns the balance.
41
MPUMALANGA BUSINESS 2019/20

INTERVIEW
Fast making strides in mining
Mpumalanga Business spoke with two trailblazing miners who
work at Exxaro’s Leeuwpan Coal Mine, Johanne Struwig and
Bontle Mtshengu. Plant Manager Struwig was a finalist in the
Top Young Achiever of the Year category of the 2019 Standard
Bank Top Women of the Year awards, while Engineering
Manager Mtshengu won the award in the category, Top Gender
Empowered Organisation: Resources.
Bontle Mtshengu
BIOGRAPHY
Bontle’s 18-year journey in
mining has encompassed
iron ore, minerals sands,
gold, platinum and now coal.
Her promotion in 2017 to
Engineering Manager, where
she now leads a team of more
than 200, made her the first
female to hold that post in
Exxaro. She started her career
as a mechanical technician
and worked her way up to
become an engineer. She
has a Government Certificate
of Competency (GCC) mines
and works, and a diploma in
mechanical engineering and is
studying for a BTech.
How did you choose mining as a career?
BM: Born in a rural small village called Cassel in the Northern
Cape, my mother was a teacher in a primary school and my dad
a truck operator in one of the mines. I found myself in a boarding
school 700km away from home and coincidentally landed in a
class with technical subjects in Grade 9. I fell in love with subjects
like technical drawing and electricity. Mining became a natural
choice when I was given an opportunity to do in-service training
in one of the mining houses and thereafter received a bursary.
JS: I think the mining industry chose me. I initially studied in the
chemistry field. After I got a bursary from Exxaro, I started to work in
mining and fell in love with operations and the culture.
When did you know this was a good choice?
BM: I eventually got exposed to maintenance management
environment and truly fell in love with that. The training I received
was remarkable. When I acquired the government certificate of
competency (GCC) is when I knew I had made a good choice: having
that legal appointment and seeing one’s contribution to the industry
is the most satisfying feeling.
JS: On Leeuwpan mine, I have had the opportunity to be involved
in value chain operations from a technical point of view as well as
business. I fell in love with the adrenaline of operations, the pride of
mobilising people and overcoming a very challenging environment.
Did you encounter obstacles on your mining career path?
BM: Most women were recruited into positions and left there to fend
for themselves. Basic needs like sanitary facilities, personal protective
equipment (PPE) and safety underground were not available for
women. Men were not made ready for this change. It was a shock
to everyone.
JS: I was privileged that Leeuwpan created a positive environment
for my development. I had to learn through tough mistakes how to
develop emotional intelligence. I started out trying to conform and
it was only after I showed my own identity and being OK with that,
that I really flourished.
MPUMALANGA BUSINESS 2019/20
42

What has helped you the most along the way?
INTERVIEW
BM: Ensuring that I’m competent at what I do, always asking
questions and continuously learning new things. Certain people I
met along the way, currently my two leaders (Mangaliso Sethethi
and Baltimore Miles) and my mentor (Hemuna Bhola) have been
playing a vital role in my development.
JS: The most important building block of my career was mentoring.
Through these mentoring relationships I found my rhythm allowing
me to dance to beat of my own drum.
Johanne Struwig
BIOGRAPHY
With a Bachelor’s degree
in Chemical Engineering,
Johanne was the first women
(and youngest) Plant Manager
to be appointed by Exxaro
Resources at the Leeuwpan
Coal operation. With a speciality
in mineral processing, she also
has diplomas in management
and training in risk management.
She previously worked as a
metallurgical engineer and has
been applying metallurgical
principles to optimise coal
beneficiation strategies. As a
leader, Johanne has always built
solid relationships with internal
and external stakeholders.
How did you feel to be nominated for the awards?
BM: This was a very humbling experience; this award means a lot for
me. It means my contribution is recognised. However, this also comes
with a vast responsibility to pave a way for young upcoming women
to ensure they don’t go through the same experience I went through.
JS: It was probably one of the proudest moments of my life. I
am truly humbled and want to thank Mangaliso Sethethi (LPN BU
manager) for believing in me and making me believe in myself.
Is the current mining environment better for women?
BM: The industry has made significant strides in executing
transformation and promoting gender. A gap still exists in converting
women in technical positions to senior and board management levels.
More work must be done to create a space that is more accommodating
to everyone, a space where diversity is embraced and a place where
our differences make us strong.
JS: I suppose it is. Over the past 10 years, women went from
being tolerated to being accepted and even respected. Women
are not appointed for the sake of statistics but as decision-makers
and change-drivers in core positions. However, the way women
approach the mining environment has also evolved. Women are
more confident, which allows them to really show their competence.
LPN specifically has also embraced diversity to the fullest and proved
the value it adds to a business.
What should be prioritised to empower women?
BM: Companies need to develop clear strategies that focus on
development and empowerment of women within businesses. This
could include retention, fast-tracking programmes and executive
mentorship programmes. Women also need to embrace the challenge
and use the opportunity to empower themselves and others.
JS: Growing and making a difference in the mining industry requires
confidence, it requires women to be authentic. It requires us to be
strong under pressure. It also requires us to remain women because
that is what makes all the difference. As female leaders we have
the responsibility to teach this to every lady that wants to make it
in this industry through mentoring and coaching.
43
MPUMALANGA BUSINESS 2019/20

OVERVIEW
Manufacturing
Government wants to promote township and rural
manufacturing.
SECTOR INSIGHT
FLSmidth has doubled the
size of its Delmas facility.
Mpumalanga has a diverse manufacturing sector. The
Lowveld area supports food and beverage enterprises
and timber processing. Approximately 70% of jobs in the
manufacturing sector are in food and forestry.
Standerton has textile-manufacturing capacity in the form of
Standerton Mills. It is also home to several plants that use local raw
materials: Nestlé has an infant-cereal manufacturing plant, RCL runs
farms in the Carolina district and Early Bird is prominent. McCain and
PepsiCo (Simba) have plants that use the province’s plentiful potato
crop.
TSB Sugar runs two large mills and produces fruit juices through
a subsidiary company. Nelspruit is the centre of the province’s foodprocessing
cluster.
The presence of Ferrometals (a Samancor company) in Emalahleni
means that Mpumalanga is an important place for metals and machinery
manufacturing. It produces charge chrome and is one of the largest
ferrochome plants in the world. Joint ventures such as Crometals (Pty)
Ltd, Poschrome (Pty) Ltd and Elkem Ferroveld operate from the site.
Most manufacturing in the province takes place in the Highveld
where there is access to chrome, steel and coal.
In the course of an upgrade, FLSmidth has also doubled the size of its
Delmas Supercentre to 10 500m².
The company makes equipment
for materials handling and mineral
processing. The centre also hosts a
training facility and handles repairs
for customers.
In Middelburg, Thos Begbie
makes a variety of products at its
heavy engineering works. Graphite
Freezeline Solutions opened a new
graphite facility within the Begbie
property in 2018.
Thos Begbie has announced
an expansion into Zambia, where
it will service and repair furnace
components.
Middelburg-based Columbus
Stainless is a major supplier of
stainless-steel products to the
domestic and international market.
About 25% of the company’s
production is sold domestically.
The Manganese Metal
Company in Nelspruit is the largest
producer of pure electrolytic
manganese metal in the world.
Delta EMD, in the same town, is
one of the biggest producers of
electrolytic manganese dioxide, a
material used in the manufacture
of alkaline batteries.
The chemicals and liquid
fluids complex of Sasol at
Secunda is a vital component of
MPUMALANGA BUSINESS 2019/20
44

OVERVIEW
Mpumalanga’s manufacturing sector. The company has two propylene
manufacturing plants and recently completed two major investments
aimed at improving flows and expanding production.
Propylene is an input for polypropylene which is used in packaging,
automotive components and textiles. The market is growing in South
Africa at 4% per annum, roughly the same rate as the global market.
A large agri-processing fruit hub is planned for the province. Located
in the Nkomazi Special Economic Zone, the proposed hub, with an
estimated value of R10-billion, would deal with the whole value chain
from growing fruit through to processing, marketing and logistics.
Having manufacturing facilities at the core of the hub will enable
a variety of businesses to be established, both upstream (to supply
the plant) and downstream (to deal with the products of the plant).
Creative thinking kicked in when Highveld Steel’s troubles reached
the tipping point in 2015. Aside from the business rescue process,
which has allowed some production to restart, there is some irony
in the that fact that the 1 000ha property has been repurposed as a
multi-purpose site for industry and commerce. Called the Highveld
Industrial Park, this project has had the effect of promoting a diversity
of manufacturing enterprises, something which has been a priority
for economic planners for many years.
Stockpiles of coal and vanadium are being sold off, but two iron
plants and a steel plant offer fully-equipped metallurgical and steelmaking
facilities, supported by environmental monitoring services
and metallurgical and chemical laboratories.
The structural mill of Evraz Highveld Steel in Witbank was officially
relaunched in June 2017 after ArcelorMittal South Africa signed a
contract to supply blooms and slabs for the mill to make into heavy
structural steel. Evraz Highveld went into business rescue in 2015.
ArcelorMittal has now exercised its right to purchase the mill outright.
Future plans
The provincial government has declared that it is determined “to turn
Mpumalanga into a manufacturing hub for South Africa and the rest
of the continent”. To that end, partnerships with Russia, China and Italy
have been established to improve local knowledge of technology and
to become globally competitive.
This strategy could be said
to have paid off when it was
announced that Minsk Tractor
Works is to establish an assembly
plant in the province.
Belarus and Oman are two of
the other countries with which
Mpumalanga is engaged with.
A key objective of the provincial
government’s Mpumalanga
Economic Growth and
Development Path (MEGDP) is
to expand the industrial base
of the provincial economy.
To do this, policy-makers are
focusing on beneficiation, agriprocessing
and value chain
development.
Samancor Chrome (which
runs Ferrometals) is the secondlargest
ferrochrome producer in
the world with three plants, two
of which are in Mpumalanga:
eMalahleni (Witbank) and
Middelburg.
A Social Enterprise
Development Programme has
been designed by the Provincial
Government of Mpumalanga
to help township and rural
manufacturing businesses grow
in the steel fabrication sector. This
will include finished products
such as door frames, window
frames and concrete products
like paving bricks, building bricks
and blocks.
ONLINE RESOURCES
Highveld Industrial Park: www.highveldindustrialpark.co.za
Mpumalanga Economic Growth Agency: www.mega.gov.za
South African Iron and Steel Institute: www.saisi.co.za
45
MPUMALANGA BUSINESS 2019/20

OVERVIEW
Transport and logistics
The first phase of the Moloto Corridor is nearly complete.
A
new flight has been added to SA Airlink’s connections
between Mpumalanga and Cape Town. In addition to
the regular early-morning flights out of Nelspruit Kruger
Mpumalanga International Airport (KMIA) with a lateafternoon
return flight, an early-morning Saturday flight has been
added. This leaves Nelspruit KMIA at 7h40 and arrives in Cape Town
at 10h05 and is targeted at the leisure traveller.
Nelspruit KMIA is the province’s main airport, serving both the
capital and being a convenient entry point to the southern part
of the Kruger National Park. Airlink has direct flights to and from
Johannesburg, Cape Town, Durban and Livingstone in Zimbabwe.
Hoedspruit Eastgate Airport is a popular destination for travellers
on their way to private game lodges and is also near the Orpen Gate
of the Kruger National Park. SA Express flies to Hoedspruit from
Johannesburg and Cape Town.
Middelburg Airfield is one of the larger alternate airports in the
province, boasting a 1.9km runway that can accommodate a 737. The
annual Middelburg Air Show is held in June. Many game lodges have
airstrips and helipads. SA Red Cross Air Mercy Service operates out
of the old Nelspruit airport just south of the city.
Coal haulage puts immense pressure on Mpumalanga’s roads
network, particularly in the Gert Sibande District and the Nkangala
District. Road improvement plans aim to simultaneously fix rural
roads and make better connections between rural and urban areas.
The South African National Roads Agency (Sanral) has presented its
long-term vision, Horizon 2030, as part of its contribution to the National
Development Plan 2030. Road improvements which have boosted
SECTOR INSIGHT
SA Airlink has a new flight to
Cape Town.
the transport infrastructure of
Mpumalanga recently include
the upgrades to the R570 (linking
Malelane on the N4 to Swaziland),
the N11 (Hendrina-Middelburg)
and part of the vital R573 Moloto
Road, which carries huge volumes
of traffic to Gauteng and Limpopo.
Sanral’s three-year plan for the
R573 allocates R1-billion to the
project.
A clause in Sanral’s contract
with big companies to work
on the R573 ensures that
small companies are involved.
Raubex Construction has
formed a joint venture with Biz
Afrika, Khuluphala Tradings and
Themolo Business Enterprise.
The R573 forms part of the
Moloto Corridor, which connects
MPUMALANGA BUSINESS 2019/20
46

OVERVIEW
the province with Gauteng . The long-term aim is to create a coordinated
road and rail corridor including rapid rail facilities. With about 50 000
motor vehicles currently using the route every day, it represents one of
the busiest parts of South Africa’s road network. The plan to upgrade the
corridor is one of 18 national Strategic Infrastructure Projects (SIPs). Not
only will the corridor provide better linkages between the provinces and
boost development along the route but improve access to the mineral
reserves of the Waterberg region.
The first phase of the Moloto Corridor Development Programme,
which involves the upgrading of road infrastructure is nearly
complete. Accidents have been reduced as a result of the R3.7-
billion first phase.
The Maputo Development Corridor is Africa’s most advanced
spatial development initiative (SDI) comprising road and rail
infrastructure, border posts, and port and terminal facilities. Run
by the Maputo Development Corridor Logistics Initiative (MCLI),
the corridor runs from just outside Pretoria in Gauteng, through
Witbank, Middelburg and Nelspruit in Mpumalanga, and on to
Maputo in Mozambique.
The Maputo Development Corridor will receive a further boost
with the upgrading of the Komatiepoort Dry Port into a Special
Economic Zone. The National Department of Trade, Industry and
Competition (the dtic) has designated the Mpumalanga Economic
Growth Agency (MEGA) as the lead agent to develop the SEZ.
Rail
Another infrastructural development that will boost trade is Transnet’s
planned Swaziland Rail Link (SwaziLink) project. A 146km railway line
between Lothair in Mpumalanga and Sidvokodvo in Swaziland will
ONLINE RESOURCES
Kruger Mpumalanga International Airport: www.kmiairport.co.za
Maputo Corridor Logistics Initiative: www.mcli.co.za
Middelburg Airfield: http://middelburgaeroclub.com
Railroad Association of South Africa: www.rra.co.za
South African National Roads Agency Ltd: www.sanral.co.za
allow for better movement of
freight between the countries
and provide a possible alternative
route for freight through to
Richards Bay.
The Mpumalanga rail system
generates more freight traffic
than any other province in
South Africa and is of great
strategic value. Transnet Freight
Rail is the main operator and
the chief freight movements
are coal, fuel, chemicals, timber,
iron and chrome ore, fruit,
maize, animal feed, wholesale
and retail goods, steel,
building supplies, fertiliser and
consumer goods. The port of
Maputo in Mozambique is an
attractive option for freight.
The coal terminal at Richards
Bay in KwaZulu-Natal receives
the majority of the coal that is
mined in the province.
A new rail siding is being
built to service the Majuba
Power Station. The 68km single
heavy-haul track will be a
private line that is projected to
cost in the region of R5-billion
and create between 3 500 and
5 000 jobs.
Private rail operator Sheltam
services the coal-mining and
ferrochrome-metal industries
from regional headquarters in
Witbank. The company runs
systems, hauls raw materials
and rebuilds and refurbishes
locomotives.
47
MPUMALANGA BUSINESS 2019/20

OVERVIEW
Tourism
The Mpumalanga Liberation Heritage Route
has been launched.
SECTOR INSIGHT
Training programmes are empowering
rural communities.
Kruger National Park is Mpumalanga’s most famous tourism
asset. Other notable landmarks include God’s Window and
the Blyde River Canyon but the province’s newest asset is
ancient.
A three-billion-year-old micro-fossil found in the Makhonjwa
Mountains near Barberton and the border with Swaziland is thought
to be the oldest sign of life on the planet. Now the Makhonjwa
Mountains, themselves somewhere between 3.2-billion and
3.6-billion years old, have been declared a World Heritage Site by
the United Nations Educational‚ Scientific and Cultural Organisation
(UNESCO). The tourist offering near Barberton has been branded
the Genesis Route.
This brings to 10 the number of World Heritage Sites in South
Africa and opens up the possibility of a new type of niche tourism
for Mpumalanga. Funds for conservation of the area will be made
available from the World Heritage Fund.
Visitors to Graskop Gorge can now drop 50m into the gorge via a
glass elevator which was built by Enza Construction. The R25-million
Graskop Gorge Tourism Attraction Centre contains a 200-seater
restaurant, an overhanging veranda, a ticket office, curio shops and
an area for informal traders to sell their wares.
Although the province already caters for motor-rally enthusiasts,
cyclists, runners, walkers, fishers, horse-riders, tree-gliders, abseilers,
white-water rafters and rock climbers, there is still potential for more
investment in the ecotourism and
adventure tourism subsectors.
Another option for tourists was
recently added to the province’s
portfolio, the Mpumalanga
Liberation Heritage Route.
Twenty-five young women
from rural areas are receiving
training in hospitality as part
of the Hazyview Project, an
offshoot of the Travel and
Tourism Excellence Academy.
The programme is jointly
sponsored by Amadeus, a travel
technology company, Economic
Development Solutions and the
Thebe Tourism Group.
Hazyview is near the Kruger
National Park and the students
are expected to be employed
at a new hotel at Skukuza when
they graduate. The Good Work
Foundation (GWF) is running
the programme at its Hazyview
Digital Campus, in partnership
with the South Africa College of
Tourism.
The province has plans to
attract international tourists from
nearby and from far away. The
tourist authorities of Swaziland
and Mozambique have agreed to
explore the possibilities of joint
marketing through the TriLand
Brand Initiative.
MPUMALANGA BUSINESS 2019/20
48

OVERVIEW
The provincial government department responsible for tourism is
exploring opportunities via the BRICS initiative. It believes that visitor
numbers from Russia could increase dramatically if a direct flight were
introduced between Moscow and Mpumalanga.
Thebe Tourism has three projects in the province, the Kruger Shalati
(a luxury train on the Selati Bridge), the Blyde Canyon Community
Project and a proposed development for Lisbon Estate which is
adjacent to the Kruger National Park. The Lisbon development is
projected to comprise two hotels, retail, hospitality and dining
facilities and staff housing associated with the Lisbon Estate.
At Blyde River Canyon, Thebe has signed an agreement with
local communities with land claims in the Blyde River Canyon
Nature Reserve which will involve them as shareholders in the new
developments. God’s Window is to receive a Skywalk, the facilities
at Bourke’s Luck Potholes will be rejuvenated, a cable car project is
planned for Three Rondavels and another hotel is planned to boost
accommodation options in the area.
All of these projects have been registered with National Treasury
as public-private partnerships. They are regarded as priority projects
by the provincial government.
The Provincial Government of Mpumalanga is looking for more
private partners to invest in a range of ambitious projects to boost an
already active sector that has several superb tourism assets, ranging
from the iconic Kruger National Park (one of about 70 parks and
reserves) to bird-watching, music festivals, car rallies and casinos.
The provincial investment agency, MEGA, has packaged many
tourism investment opportunities. The underlying principle in each
Bourke’s Luck Potholes
ONLINE RESOURCES
Mpumalanga Gaming Board: www.mgb.org.za
Mpumalanga Tourism & Parks Agency: www.mtpa.co.za
South African National Parks: www.sanparks.co.za
South African Tourism: www.southafrica.net
South African Tourism Services Association: www.satsa.com
case is a form of public-private
partnership where the agency
would assist in getting land-use
and other legal requirements,
and perhaps in seeing that basic
infrastructure was laid on, then
the developer would build and
manage a tourism facility.
A transaction adviser has
been appointed to flesh out
these proposals for investable
tourism products. An example of
infrastructure investment from
the government’s side is the
upgrading of the Manyeleti Resort.
Other provincial plans
regarding tourism involve
promoting the province as a
convention venue. A Convention
Bureau has been established and
the city of Mbombela is being
encouraged to build a large centre.
Forever Resorts has a big
presence in the province,
catering to many caravans and
campers and holiday-makers
wanting to stay in chalets. There
is also a four-star Forever Resorts
Mount Sheba. The Graceland
Hotel Casino and Country Club
is a Peermont resort in Secunda.
Tsogo Sun has six hotels in
the province, ranging from two
StayEasys to Southern Sun The
Ridge, which is attached to the Ridge
Casino in Witbank (Emalahleni).
Tsogo runs a further two resorts in
Hazyview (Sabi River Sun Resort)
and White River (Pine Lake Resort).
Protea Hotels by Marriott has
three properties in Mpumalanga,
including Protea Hotel Kruger
Gate, Nelspruit and Hazyview. At
White River, Premier Hotel The
Winkler is 20 minutes’ drive from
the Numbi Gate of the Kruger
National Park.
49
MPUMALANGA BUSINESS 2019/20

OVERVIEW
Banking and financial
services
Digital banking is on the rise.
Embalenhle has a new Ubank branch. Situated at the Mall@
Emba, the branch will serve customers from Secunda and
other areas such as those that used to bank at a branch at
the Kinross mine, which has been closed.
In line with modern trends towards digital banking, the new Ubank
branch has internal and external facing digital walls. The screens
promote new products and campaigns, give customers information
and provide financial education. A feature that is designed to support
local artists is the Feature Wall.
All of the big retail banks (Nedbank, Absa, Standard Bank, Capitec
and First National Bank) are present in the province’s major towns.
Agriculture is an important focus area for banks, and most have
specialised divisions such as Nedbank Agribusiness.
TWK Agri offers financing and insurance together with the usual
suite of agricultural services. Afgri, one of the country’s biggest
agricultural companies, offers financial services (financing and
insurance) under the brand Unigro. It has another service called Gro
Capital Financial Services which offers more complicated products.
Another source of funding for farmers is the Land and Agricultural
Development Bank of South Africa (Land Bank), a developmentfinance
institution that falls under the Ministry of Finance. Standard
Bank has a new black economic empowerment agricultural fund
designed to support emerging farmers. The R500-million fund is
designed to connect farmers who have received farms in land reform
projects to agri-businesses that will buy their produce.
The first new banking licence in nearly two decades was issued
in 2017, to TymeDigital. The bank has no physical branches although
Tyme’s Money Transfer product, which it launched in 2016, is available
at Boxer and Pick n Pay. The banking licence is the first to be issued
since Capitec was granted a licence by the South African Reserve
Bank in 1999.
ONLINE RESOURCES
Financial Services Board: www.fsb.co.za
Post Bank: www.postbank.co.za
Public Investment Corporation: www.pic.gov.za
SECTOR INSIGHT
New banking licences have
been granted.
In a province with a high
proportion of rural citizens such
as Mpumalanga, the prospect of
Postbank being upgraded to a
full-service bank is positive news.
The current Postbank focusses
on taking deposits and savings
accounts. Postbank has secured
a R3.7-billion loan to enable it to
open its own loan book. The large
geographical footprint of the Post
Office will make the bank easily
accessible to even remote parts of
the country.
Banks are working hard to
offer products to the previously
unbanked. Nedbank has
partnerships with shops such
as Boxer Stores and Pick n Pay
where customers can have access
to financial services in previously
unserviced areas.
MPUMALANGA BUSINESS 2019/20
50

OVERVIEW
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OVERVIEW
Development finance and
SMME support
Many small businesses operate in trade and accommodation.
Support for the small business sector is not always easy to
measure. Advice and mentoring are important but it’s in
turnover figures where concrete results can be seen.
Bushbuckridge entrepreneur Freddy Sibuyi (pictured)
took full advantage of the advice and support that Tholoana Enterprise
Programme of the SAB Foundation had to offer. Turnover of Freddy and
Sons Maintenance and Engineering jumped from a little over R602 000
to more than R2.2-million and he added 10 employees to his original
staff complement of five.
The SAB Foundation has provided over R6-million in grant funding
and business support to 60 entrepreneurs in Mpumalanga. Collective
turnover has increased by 324% and 121 new jobs have been created.
Research done by the Small Enterprise Development Agency (Seda)
shows that a high percentage of SMMEs in Mpumalanga are in the trade
and accommodation sector. Whereas the national figure is about 43%,
in Mpumalanga it is closer to 50%.
Seda supports several incubators in the province: Furntech, furniture
manufacturing, White River; Mobile Agri-Skills Development & Training
(MASDT), agricultural training, Nelspruit; Mpumalanga Stainless Initiative
(MSI), stainless steel processing, Middelburg (with Columbus Stainless);
Timbali floriculture, Nelspruit; Ehlanzeni TVET College Rapid Incubator
Renewable Technologies, Nelspruit.
Seda is a subsidiary of the National Department of Small Business
Development (DSBD). Seda is not a financial agency, focussing rather on
training and administrative support, although the agency will help SMMEs
get in touch with financial bodies.
Sappi’s long-term Ngodwana mill project will spend more than
R600-million on procuring goods and supplies from broad-based
black economic empowered companies, of which R51-million will go
to SMMEs.
Other companies supporting SMMEs through their buying chain
include Woolworths and Anglo American. Woolworths is funding
ONLINE RESOURCES
Mpumalanga Economic Growth Agency: www.mega.gov.za
Mpumalanga Stainless Initiative: www.mpstainless.co.za
Small Enterprise Development Agency: www.seda.org.za
TechnoServe to ensure that small
tomato growers can grow produce
that will meet the demanding
standards of the retailer, and to help
them expand production.
Anglo American’s Zimele runs
four enterprise development and
investment funds. Zimele runs
hubs related to the supply chains
of platinum, thermal coal and, with
Mondi, forestry.
The Mpumalanga Economic
Growth Agency (MEGA) is the
implementing agent of the
provincial government’s SMME
support policy.An agreement has
been signed with Standard Bank
to launch an SME Fund with a
capitalisation of R500-million.
MPUMALANGA BUSINESS 2019/20
52

Kruger Lowveld Chamber
of Business and Tourism
The voice of business in Ehlanzeni.
PROFILE
As the official representative body of business and tourism in
the Kruger Lowveld (Ehlanzeni District), our main mandates
are to promote the region as a tourism and investment
destination, to provide a diverse suite of networking and
marketing opportunities for our members, and to represent and speak
on behalf of the business and tourism community of our area. We do
this by building and maintaining meaningful relationships with all
spheres of government as well as like-minded organisations, and by
acting as liaison between these entities and the business community.
KLCBT’s president is Mr Oupa Pilane (pictured).
Area of operation
The Kruger Lowveld covers the Ehlanzeni District of Mpumalanga,
including the following local municipalities: City of Mbombela, Thaba
Chweu, Nkomazi and Bushbuckridge, as well as the southern part of
Kruger National Park and the surrounding private nature reserves.
Member benefits
Listing on website, Pay-to-Play participation in various marketing services
and projects, weekly newsletter, invitations to all KLCBT events, advocacy and
representations made by KLCBT on behalf of members, access to preferential
arrangements negotiated by KLCBT with service providers, brochure display at
Crossing Centre office, various sponsorship options, access to tender information.
We are actively involved in the following advocacy campaigns:
Service delivery: Public participation in various forums where government
engages with stakeholders regarding budgets, planning and legislation.
CONTACT DETAILS
Physical address: KLCBT House, Crossing Centre, Nelspruit
Postal address: Private Bag X 11326, Nelspruit 1200
Tel: +27 13 755 1988
Fax: +27 13 753 2986
Email: business@klcbt.co.za and tourism@klcbt.co.za
Website: www.klcbt.co.za
Promote home-grown businesses
through education processes, research,
maintaining a database,
lobbying for stricter regulations
on large shopping chains, engaging
large chains to buy local and
to spend their CSI budgets locally.
Local Economic Development:
We are assisting with incubation
in seven main corridors, mainly
adding additional tourism
products.
Anti-corruption: Several
successful initiatives reduced
roadside corruption.
Water: Bulk-water supply faces a
future crisis and lobbying for the
increase of storage capacity is
beginning to show success.
Roads and public attractions:
Require upgrades and investment.
Safety and security: A concern
for all regions in SA.
53 MPUMALANGA BUSINESS 2019/20 2017/18

OVERVIEW
Education and training
A new boarding school will assist rural children.
SECTOR INSIGHT
85 students are studying in
Russia.
The opening of the Thaba Chweu Boarding School in the
Ehlanzeni District will make access to education easier for rural
children who would otherwise have to travel long distances.
Two new schools will also be completed in 2019, in the City
of Mbombela and in eMalahleni.
The Provincial Government of Mpumalanga has teamed up with
the Manufacturing, Engineering and Related Services Sector SETA
to send 85 students to Russia. The SETA will pay for 35 students in
areas that have been identified as critical, namely medicine, civil
engineering, veterinary science, aviation/aeronautical studies and
information technology.
Sasol offers an all-inclusive bursary for students in engineering,
science and accounting. The bursary also has performance-based
awards and allowances for things like laptops and calculators. Sasol
has also committed to taking on qualified apprentices from the Hydra
Arc academy in Secunda.
The University of Mpumalanga enrolled 3 220 students in 2019, a
marked increase on humble beginnings in 2014 when the university
ONLINE RESOURCES
Mpumalanga Department of Education:
www.mpumalanga.gov.za/education
Sasol bursaries: www.sasolbursaries.com
Southern African Wildlife College: www.wildlifecollege.org.za
University of Mpumalanga: www.ump.ac.za
started life with 167 students. The
university has added bachelor’s
degrees in arts and commerce
to its initial offering of academic
courses in education and agriculture
and a diploma in hospitality.
Geology will soon be offered as
part of a BSc.
The main campus is at
Mbombela with satellites at
Siyabuswa (a former education
college) and KaNyamazane,
which hosts hospitality studies.
Mpumalanga has three
Technical and Vocational
Education and Training (TVET)
Colleges, with an enrolment of
over 36 000. UNISA, the Tshwane
University of Technology and the
Vaal University of Technology also
have satellite campuses in the
province.
The Mpumalanga Regional
Training Trust (MRTT) is a Section
21 company with several sites
in the province, including a
Hospitality and Tourism Academy
at Karino outside Nelspruit. The
trust’s construction-training facility
is accredited as a Construction
Centre of Excellence. The
Southern African Wildlife College
is located near the Orpen Gate on
the edge of the Kruger National
Park.
MPUMALANGA BUSINESS 2019/20 54

Gert Sibande District
Municipality
PROFILE
A community-driven district of excellence and development.
Vision
GSDM is customer focussed. The vision is the municipality’s point of
reference throughout each financial year in all the municipality’s plans,
programmes and activities. The vision ensures that the District operates
within its powers of function which is to support and coordinate local
municipalities.
Mission
Led by Executive Mayor
Councillor Muzi Chirwa,
with its offices located
in Ermelo right at the
heart of the district, Gert
Sibande District Municipality
(GSDM) is the largest of the
three districts in Mpumalanga
Province at 31 841 km², covering
40% of the Mpumalanga
Province’s land mass.
According to Stats SA (2016
Community Survey), Gert Sibande’s
population increased from 1043 194
in 2011 to 1 135 409 people in 2016.
This makes the GSDM the smallest
district in terms of population
among the three districts in the
province.
Seven local municipalities
make up the District Municipality,
which is traversed by several
major roads including the N11,
the N17 and the N3, the main
road connecting Gauteng with
the coast.
To support and coordinate our local municipalities to provide excellent
services and development. Some of the district’s major towns are
Balfour, Carolina, Ermelo, Evander, Secunda, Standerton, Wakkerstroom
and Mkhondo (Piet Retief).
The District is gradually growing its reputation for its range of
innovative initiatives such as the establishment of the water quality
laboratory, purchase of the pothole patching truck, supporting the
development of cooperatives and its excellence in rendering municipal
health services.
CONTACT DETAILS
Physcal address: Corner Joubert and Oosthuise Streets,
Ermelo, South Africa
Postal address: PO Box 1748, Ermelo 2350
Tel: +27 17 801 7000
Fax: +27 17 811 1207
Email: records@gsibande.gov.za
Website: www.gsibande.gov.za
55 MPUMALANGA BUSINESS 2019/20 2017/18

INDEX
INDEX
Exxaro Resources............................................................................................................................... 13, 42
Gert Sibande District Municipality........................................................................................... 38, 55
Highveld Industrial Park ...........................................................................................................15,19, 21
Industrial Development Corporation (IDC)............................................................................... 16
Komati Basin Water Authority (KOBWA)...................................................................................... 36
Komati Lowveld Chamber of Business and Tourism (KLCBT).........................................53
Mpumalanga Economic Growth Agency (MEGA).........................................................7, OBC
Mpumalanga Economic Regulator (MER) ................................................................................. 22
MTN.......................................................................................................................................................................3
Nedbank............................................................................................................................................. 5, 24, 51
SA Airlink .......................................................................................................................................................IBC
Sasol..................................................................................................................................................................IFC
Transnet Pipelines..................................................................................................................................... 32
MPUMALANGA BUSINESS 2019/20
56

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OVERVIEW
Forestry
Demand for sawn timbe
Forestry is ideally suite
Mpumalanga in dow
and energy generat
where there is great
considerable infrastructure.
Forestry accounts for ab
Product. At national level, t
agricultural GDP while the fo
1% to national GDP. The sec
product and pulp and pap
main exports, along with saw
The country is experienc
few new permits having be
about water availability. Mo
the construction sector.
Mpumalanga has the id
Sabie and Graskop represen
forests are also found to the e
About 11% of the land mass
forest. The province is the na
(514 000) and in export earn