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Mpumalanga Investment Prospectus 2022

Companies in a wide range of sectors are already invested in Mpumalanga – and are ramping up the commitments with new investments. The 2022 Mpumalanga Investment Prospectus presents exciting opportunities for investment in Mpumalanga, including information about key sectors of the economy, business opportunities, government policies and programmes, and private sector success stories. The Mpumalanga Economic Growth Agency (MEGA) is the official Economic Development Agency for the Mpumalanga Provincial Government and is committed to making the process of investing in Mpumalanga or starting a business in the province easy.

Companies in a wide range of sectors are already invested in Mpumalanga – and are ramping up the commitments with new investments. The 2022 Mpumalanga Investment Prospectus presents exciting opportunities for investment in Mpumalanga, including information about key sectors of the economy, business opportunities, government policies and programmes, and private sector success stories. The Mpumalanga Economic Growth Agency (MEGA) is the official Economic Development Agency for the Mpumalanga Provincial Government and is committed to making the process of investing in Mpumalanga or starting a business in the province easy.

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THE PLACE OF THE RISING SUN<br />

MPUMALANGA<br />

INVESTMENT PROSPECTUS<br />

MPUMALANGA IS OPEN FOR BUSINESS


WHY INVEST IN MPUMALANGA?<br />

Companies in a wide range of sectors are already<br />

invested in <strong>Mpumalanga</strong> – and are ramping up<br />

the commitments with new investments<br />

<strong>Mpumalanga</strong>’s diverse and resource-rich economy<br />

makes it one of the most attractive trade and<br />

investment destinations in South East Africa.<br />

A large, growing domestic market and excellent<br />

access, supported by world-class infrastructure,<br />

to the East African and Indian Ocean markets<br />

through Maputo Port makes <strong>Mpumalanga</strong> an<br />

ideal investment location for export-driven<br />

manufacturing and production.<br />

<strong>Mpumalanga</strong> is one of South Africa’s most<br />

productive and important agricultural regions and<br />

through strategic investments in the <strong>Mpumalanga</strong><br />

International Fresh Produce Market (MIFPM) and<br />

the Nkomazi Special Economic Zone (NSEZ) the<br />

province is set to become a major force in food<br />

production and distribution.<br />

<strong>Mpumalanga</strong>’s sophisticated and well-segmented<br />

tourism and hospitality sector in a post-Covid<br />

world is ripe for investment and expansion.<br />

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

68% of land area in the province<br />

is used by agriculture<br />

3<br />

UNIQUE SELLING PROPOSITION<br />

• Abundant resources: minerals and agricultural produce<br />

• Established manufacturing infrastructure: smelters,<br />

petrochemicals, food processing, paper, sugar<br />

• Strategic location and access to regional and<br />

global markets<br />

• Tourism hotspots: the iconic Kruger National Park, worldclass<br />

reserves, adventure tourism and new UNESCO<br />

World Heritage Site<br />

• <strong>Mpumalanga</strong> International Fresh Produce Market (MIFPM)<br />

• Nkomazi Special Economic Zone (NSEZ)<br />

• Newly established University of <strong>Mpumalanga</strong><br />

• Support for Green Economy research and investment<br />

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

biggest sectors are<br />

manufacturing,<br />

mining &<br />

agriculture.


<strong>Mpumalanga</strong>’s STRATEGIC LOCATION makes it a valuable transport and logistics hub<br />

A province in eastern South Africa, bordering<br />

the nations of Swaziland and Mozambique<br />

• Maputo Development Corridor<br />

enhances logistics<br />

• Preferential access to lucrative<br />

EU market<br />

• Proximity to South Africa’s<br />

economic heartland<br />

• Access to regional SADC<br />

market: 360-million population<br />

• Access to deepwater<br />

Port of Maputo<br />

Capital City<br />

Mbombela (Nelspruit)<br />

Main major towns<br />

Ermelo<br />

eMalahleni<br />

Middelburg<br />

Secunda<br />

Airport<br />

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

International Airport<br />

Population<br />

4.5-million people<br />

MAPUTO DEVELOPMENT CORRIDOR<br />

The Maputo Development Corridor is South road, rail, Special Economic Zone, border<br />

Africa’s leading Spatial Development Initiative posts, port and terminal facilities. The corridor<br />

(SDI), linking <strong>Mpumalanga</strong> Province, Gauteng runs through the most highly industrialised<br />

Province and the Nkomazi Special Economic and productive regions of Southern Africa.<br />

Zone with the deepwater Port of Maputo in The Corridor has been extensively upgraded<br />

Mozambique. This efficient corridor provides to international standards and links the<br />

investors and exporters with good access industrial heartland of South Africa to its<br />

to the export markets of South East Africa, nearest port in Maputo, Mozambique, which<br />

the Indian Ocean Rim and Far East Asia. The is one of the fastest-growing countries in<br />

Maputo Development Corridor comprises South East Africa.<br />

SOUTH AFRICA<br />

Lydenburg<br />

Sabie<br />

MOZAMBIQUE<br />

Komatipoort<br />

Middelburg<br />

Belfast<br />

Mbombela<br />

MAPUTO<br />

JOHANNESBURG<br />

Carolina<br />

SWAZILAND


A journey to a prosperous and inclusive future<br />

<strong>Mpumalanga</strong> Premier Refilwe Mtshweni-Tsipane invites<br />

investors to share in the growth of <strong>Mpumalanga</strong>, together<br />

with the residents of a province rich in resources and talent.<br />

On behalf of the<br />

Provincial Government<br />

and the people of <strong>Mpumalanga</strong> I wish<br />

to welcome this opportunity for our<br />

province to present its policies and<br />

programmes, business opportunities,<br />

and private sector success stories.<br />

Despite what many consider an uncertain<br />

global economic outlook, our province<br />

has embraced a post-Covid ascendance<br />

with bountiful opportunities that can be<br />

tapped into through entrepreneurship<br />

and collaboration.<br />

<strong>Mpumalanga</strong> is the home<br />

of more than 4.68-million<br />

residents (7.8% of the<br />

national population), and is<br />

the fifth-biggest regional<br />

economy in South Africa.<br />

It has a diverse and<br />

resource-rich economy<br />

that makes it one of the<br />

most attractive trade and<br />

investment destinations<br />

in South-East Africa.<br />

This publication is intended<br />

to expose potential<br />

investors and business communities to<br />

market opportunities in <strong>Mpumalanga</strong><br />

relating to identified sectors such as<br />

agriculture, manufacturing, mining,<br />

tourism and renewable energy.<br />

We wish to welcome all interested<br />

parties to join us in an inclusive growth<br />

and sustainable development journey<br />

through innovative flagship projects<br />

such as the <strong>Mpumalanga</strong> Economic<br />

Reconstruction and Recovery Plan<br />

Premier Refilwe<br />

Mtshweni-Tsipane<br />

(MERRP), the Nkomazi Special Economic<br />

Zone (SEZ), the <strong>Mpumalanga</strong> International<br />

Fresh Produce Market (MIFPM) and many<br />

more outlined in the following pages.<br />

Private-public partnerships are bearing<br />

fruit in the tourism sector, as illustrated<br />

by the exciting Skywalk Project at God’s<br />

Window an d a hotel and conference<br />

centre under construction in Middelburg.<br />

We are delighted to welcome direct<br />

flights to our province from Eurowings<br />

Discover, a division of Lufthansa.<br />

A Just Energy Transition<br />

and Climate Change<br />

Working Group has been<br />

established to guide policy<br />

on these vital issues.<br />

Our province is aggressively<br />

pursuing the implementation<br />

of strategies for economic<br />

recovery from Covid-19 that<br />

will also foster diversification<br />

of its mineral-rich economy<br />

and increase labour<br />

absorption in its key sectors.<br />

The provincial government,<br />

together with districts, local<br />

municipalities and state-owned enterprises,<br />

has identified interventions that are aligned<br />

with the national Economic Reconstruction<br />

and Recovery Plan (ERRP). <strong>Mpumalanga</strong> has<br />

adapted elements of the plan to ensure<br />

relevance and effective implementation.<br />

This will help our economy to grow<br />

as we actively build back in a more<br />

efficient manner. We invite investors<br />

to join us on this journey to a more<br />

prosperous and inclusive future.


A new era of investing in <strong>Mpumalanga</strong><br />

There are many varied and exciting opportunities for investment in<br />

<strong>Mpumalanga</strong>. Department of Economic Development and Tourism MEC<br />

Vusi Mkhatshwa outlines the dynamic investment climate in the province.<br />

<strong>Mpumalanga</strong> Province is increasingly<br />

being seen as an investment<br />

destination of choice and we are<br />

working hard to market it as such.<br />

Quarterly investment roundtable<br />

discussions in each of the province’s<br />

three districts have been held and<br />

international visits are promoting<br />

the province’s qualities. The<br />

<strong>Investment</strong> Summit is a culmination<br />

of this process, but it will also<br />

continue beyond the Summit.<br />

The private sector has<br />

announced huge investments<br />

in the province, targeting<br />

projects in solar energy, wind<br />

energy, biomass, battery<br />

storage, gas, wood-bonding<br />

material, hybrid fuel rods,<br />

waste gas from ferrochrome,<br />

land rehabilitation,<br />

reclamation of mine water<br />

and sustainable agriculture.<br />

We are proud to announce<br />

that the <strong>Mpumalanga</strong> Green<br />

Cluster has been granted<br />

membership of the ICN<br />

(International Cleantech Network). This<br />

gives the province access to over 15 000<br />

tech companies, providing opportunities<br />

for information, knowledge, technology<br />

and business exchange, further<br />

boosting <strong>Mpumalanga</strong>’s prospects for<br />

job creation and investment attraction.<br />

These sorts of structures and<br />

partnerships are relatively new and are<br />

a way to ensure that the best aspects<br />

of government, business and academia<br />

can be applied towards development<br />

that unlocks jobs and investment.<br />

We see the Green Cluster as a key<br />

mechanism for the implementation<br />

of enabling investment in the Green<br />

Economy. Several energy projects have<br />

been launched. For example, investment<br />

commitments to the value of R75-billion<br />

in wind energy have been secured,<br />

which have the potential to create over<br />

13 000 jobs. Municipalities are aware<br />

of the work that must be done to grow<br />

MEC Vusi<br />

Mkhatshwa<br />

the Green Economy.<br />

In support of potential new<br />

investments and working<br />

with the Office of the<br />

Premier, our department<br />

has successfully<br />

hosted an Energy<br />

Summit at eMalahleni,<br />

with the objective to<br />

create pathways for<br />

a “Just Transition”.<br />

Rebooting the economy<br />

to accommodate the<br />

Green Economy in a<br />

just way will create<br />

tremendous opportunities for<br />

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

As an indication that we are on the right<br />

track, the Nkomazi Special Economic<br />

Zone already has an investment pipeline<br />

worth over R10-billion in the agroprocessing,<br />

green energy<br />

and logistics sectors.<br />

We invite other investors<br />

to join the new wave of<br />

investing in <strong>Mpumalanga</strong>!


THE PERFECT LAUNCH PAD FOR AFRICA<br />

The African Continental Free Trade Area could revolutionise African trade:<br />

<strong>Mpumalanga</strong> is the perfect launch pad for manufacturers and exporters.<br />

The African Continental Free Trade Area (AfCFTA) has<br />

been agreed on by almost all African nations and<br />

holds the potential to change the nature and size of<br />

trading on the continent in profound ways.<br />

<strong>Mpumalanga</strong> Province, as a strategically-positioned<br />

region with a dynamic manufacturing sector and<br />

excellent logistics and infrastructure, provides the<br />

perfect launch pad for investors looking to take<br />

advantage opportunities that will be created by the<br />

AfCFTA Agreement.<br />

The burgeoning African middle-class is a global<br />

trend that economists are carefully watching. As more<br />

sophisticated infrastructure is rolled out across Africa,<br />

having a base with good connections to ports and<br />

with good air, road and rail connectivity will be vital.<br />

<strong>Mpumalanga</strong> has all of that, and more.<br />

An Extraordinary Summit of the AU Assembly on the<br />

AfCFTA was held in December 2020. The Assembly<br />

approved the start of trading under the AfCFTA<br />

Agreement from the beginning of 2021. Further<br />

meetings have been held to take the process forward<br />

in terms of details and practical measures.<br />

The nations covered by AfCFTA have an estimated<br />

combined GDP of $2.5-trillion and a population of over<br />

1.2-billion.<br />

In terms of population, it will be the largest free trade<br />

area in the world. The AfCFTA envisages the gradual<br />

elimination of tariff and non-tariff barriers to trade on<br />

the continent. In terms of export-driven manufacturing<br />

and production <strong>Mpumalanga</strong> is well positioned to take<br />

full advantage of the economic promise of the AfCFTA<br />

and attract investment, thereby helping to increase<br />

income levels and reduce poverty.<br />

<strong>Mpumalanga</strong> is served by the Maputo Development<br />

Corridor (MDC), which is South Africa’s leading<br />

Spatial Development Initiative (SDI), linking<br />

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

Special Economic Zone with the deepwater Port of<br />

Maputo in Mozambique. This strategic location gives<br />

<strong>Mpumalanga</strong> a particular advantage with respect to<br />

logistics and market access.<br />

Improving and increasing intra-African trade will<br />

change the way countries do business and include a<br />

much broader range of countries and products into the<br />

global market. Foreign direct investment is expected<br />

to grow rapidly, as investment opportunities such as<br />

those on offer in <strong>Mpumalanga</strong> attract the attention of<br />

international companies and institutions. New sectors,<br />

such as the Green Economy which <strong>Mpumalanga</strong> is<br />

actively preparing for, will grow exponentially on the<br />

back of a continental system of trade with fewer<br />

barriers and more connections than ever before.


AfCFTA FAST FACTS<br />

Africa’s exports could increase by $560-billion and some<br />

experts predict that continental business and consumer<br />

spending could reach $6.7-trillion by 2030.<br />

$450<br />

BILLION<br />

AfCFTA could<br />

boost regional income<br />

by 7% or $450-billion<br />

(Source: the World Bank)<br />

AfCFTA could lift<br />

30<br />

-million<br />

people<br />

out of poverty, according<br />

to the World Bank<br />

AfCFTA<br />

could<br />

boost<br />

10%<br />

wages<br />

by up to<br />

* World Bank estimate<br />

ABOUT SADC<br />

South Africa is a member of one of Africa’s<br />

oldest regional organisations, the 16-member<br />

Southern African Development Community,<br />

(SADC). This enables duty-free trade within<br />

a growing market of more than 360-million<br />

people. All goods shipped under SADC<br />

Certificate of Origin receive duty-free status.<br />

Duty-free trade<br />

within a GROWING MARKET<br />

of more than<br />

360million<br />

people


ABOUT MEGA<br />

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

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

MEGA’s primary mandate is to foster the sustainable growth and development of<br />

<strong>Mpumalanga</strong>’s economy through its operational activities of Trade and <strong>Investment</strong> Promotion,<br />

Development Funding, Equity <strong>Investment</strong>s, and Property and Infrastructure Development.<br />

The Agency remains accountable to the <strong>Mpumalanga</strong> Department of Economic Development<br />

and Tourism (DEDT).<br />

MEGA is the foreign investor’s or trader’s first point of contact for doing successful business<br />

in <strong>Mpumalanga</strong> Province. Through the Trade and <strong>Investment</strong> Promotion Division, the Agency<br />

provides a variety of services to potential investors and trading partners.<br />

MEGA services<br />

MEGA staff will go out of their way to make the process<br />

of investing in <strong>Mpumalanga</strong> or starting a business in the<br />

province easy. MEGA is focussed on customer needs and<br />

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

Services include:<br />

• Foreign Trade Promotion<br />

• <strong>Investment</strong> Promotion<br />

• Funding<br />

• Property Management and Infrastructure Development<br />

Planning the way forward<br />

National government has articulated a Nine-Point Plan which seeks to prioritise<br />

projects that will tackle key economic issues. MEGA is aligned with the plan, which<br />

include issues relevant to growing the provincial economy:<br />

• revitalise agriculture and the agro-processing chain<br />

• advancing mineral beneficiation<br />

• implementing the Industrial Policy Action Plan (IPAP) effectively<br />

• unlocking the potential of SMMEs, cooperatives and township and rural enterprises<br />

• resolving the energy challenge<br />

• stabilising the labour market<br />

• upscaling private investment<br />

• investment in science and technology, water and<br />

sanitation, transport and broadband connectivity


MPUMALANGA’S ECONOMY<br />

The provincial economy of <strong>Mpumalanga</strong> is exceptionally diverse. Established industries<br />

in the province include Mining, Stainless Steel, Petrochemicals, Pulp and Paper, Ferro-<br />

Alloys, Energy Generation, Tourism, Agriculture and Agro-Processing, among others.<br />

Companies in these sectors include<br />

global giants in their industries such as<br />

Sasol (energy and chemicals), Sappi<br />

(paper, packaging, pulp and forests),<br />

Samancor Chrome (ferrochrome),<br />

Sibanye-Stillwater and Glencore (mining).<br />

The province’s commercial farmers are<br />

among the most efficient in the world,<br />

exporting huge quantities of everything<br />

from citrus to macadamia nuts. Columbus<br />

Stainless is the only stainless-steel<br />

manufacturer on the continent.<br />

District GVA by district<br />

38% 34%<br />

Nkangala<br />

Ehlanzeni<br />

28%<br />

Gert<br />

Sibanda<br />

AGRICULTURE 3%<br />

COMMUNITY<br />

SERVICE 19%<br />

FINANCE<br />

14%<br />

MINING 20%<br />

TRANSPORT 6%<br />

MANUFACTURING<br />

15%<br />

ELECTRICITY 7%<br />

TRADE 14%<br />

CONSTRUCTION<br />

2%<br />

Governance<br />

The province has three district municipalities<br />

and 17 local municipalities. Several<br />

agencies which promote the regional economy<br />

report to the <strong>Mpumalanga</strong> Provincial<br />

Government. Large parts of the province<br />

comprises extensive rural villages that form<br />

part of areas run by traditional authorities.<br />

Transport<br />

Two airports at Hoedspruit (Eastgate Airport) and Mbombela (Kruger <strong>Mpumalanga</strong> International<br />

Airport, KMIA) plus many airfields. Extensive freight rail network, busiest in South Africa.<br />

N4 highway (Maputo Corridor) is an east-west spine of highly-developed road system.<br />

PRETORIA<br />

N4<br />

N12<br />

JOHANNESBURG<br />

Middelburg<br />

N17<br />

N11<br />

Ermelo<br />

N2<br />

Lydenburg<br />

Belfast<br />

N4<br />

Carolina<br />

N17<br />

R36<br />

R37<br />

Mbombela<br />

Barberton<br />

Sabie<br />

R40<br />

N4<br />

SWAZILAND<br />

MOZAMBIQUE<br />

Komatipoort<br />

MAPUTO


KEY SECTORS AGRICULTURE<br />

Agriculture in <strong>Mpumalanga</strong> is responsible for 3% of the<br />

province’s gross value added by region (GVA-R) and can<br />

be divided into the following categories (see map, right).<br />

REGIONAL PRODUCE<br />

Lowveld<br />

<strong>Mpumalanga</strong> Province is one of South Africa’s most productive<br />

and important agricultural regions and plays a key role in the<br />

export profile of South Africa, primarily in fruit and nuts. The<br />

:1<br />

province’s economic diversity extends<br />

into the agriculture sector where the<br />

natural topography of the province<br />

divides this sector between the<br />

Highveld and Lowveld Regions.<br />

<strong>Mpumalanga</strong>’s ratio of<br />

commercial farmers to<br />

small-scale farmers<br />

AGRICULTURE<br />

SUMMER CEREALS &<br />

LEGUMES<br />

MAIZE Maize meal<br />

SOYA Meal, Edible oil<br />

CANOLA Edible oil<br />

SUNFLOWER Edible oil<br />

TROPICAL &<br />

SUBTROPICAL FRUIT<br />

CANE SUGAR Sugar /<br />

confectionery<br />

CITRUS Juice & concentrate<br />

MANGOES Dried, frozen,<br />

juice & concentrates<br />

LITCHIS Dried, frozen,<br />

juice & concentrates<br />

AVOCADOES Avocado oil<br />

GUAVA Dried, frozen,<br />

juice & concentrates<br />

MACADAMIA NUTS<br />

Processed & confectionery<br />

Highveld<br />

Highveld Region: Summer cereals<br />

and legumes: maize, soya, canola,<br />

sunflower. Animal products: bovine<br />

meat, swine, sheep and poultry.<br />

Lowveld Region: Subtropical and<br />

citrus fruits, nuts and cane sugar.<br />

The Highveld Region in the west of the province is at an elevation<br />

of between 4 000 and 6 000 feet above sea level. This allows for<br />

the large-scale and commercial production of cereals and legumes<br />

like maize, soya, canola and sunflower.<br />

The subtropical region of the <strong>Mpumalanga</strong> Lowveld plays a key role<br />

in the agricultural export profile of the province, primarily in fruit and nuts.<br />

<strong>Mpumalanga</strong> Province is one of the world largest producers and exporters<br />

of citrus fruit. Duty-free exports of South African citrus to the USA under the<br />

African Growth and Opportunity Act (AGOA) reached<br />

a peak of 91 000 tons in 2020 ($94.9-million) and<br />

are expected to continue their strong annual growth<br />

as the USA is still considered a premium market.<br />

<strong>Mpumalanga</strong> Province is the world’s largest producer<br />

and exporter of macadamia nuts. The province<br />

earned $207-million in exports in 2019, $76-million<br />

of this to the US. There have been major new<br />

investments in processing facilities in <strong>Mpumalanga</strong>.<br />

<strong>Mpumalanga</strong>’s rich agricultural produce is utilised<br />

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

$94.9-million<br />

The value of the duty-free exports of South<br />

African citrus to the USA under AGOA in 2020, a<br />

record 91 000 tons<br />

4 000ha<br />

Of macadamia nut trees are newly planted in<br />

South Africa every year, mostly in <strong>Mpumalanga</strong><br />

and neighbouring Limpopo<br />

70<br />

Seats on each of the six staff buses, together with<br />

50 trucks and refrigerated trailers, run by banana<br />

farmers Umbhaba Estates


KEY SECTORS FORESTRY<br />

Forestry is a key driver for the development of<br />

<strong>Mpumalanga</strong>’s rural economy and a major provider<br />

of job opportunities. About 40% of SA’s sustainable<br />

forests are located in <strong>Mpumalanga</strong> Province.<br />

The industry comprises logging, saw-milling, wood<br />

products, wood board, pulp and paper as well as<br />

specialised cellulose.<br />

Specialised cellulose is a sought-after<br />

natural, renewable fibre with a wide range<br />

of uses in the textile, consumer goods,<br />

foodstuff and pharmaceutical industries<br />

and is produced in large quantities at<br />

Sappi Ngodwana.<br />

PG Bison has recently invested<br />

R560-million in a new front-end dryer for<br />

its particleboard plant in Mkhondo (Piet<br />

Retief). The company is also building a new medium-density fibreboard<br />

(MDF) plant at its <strong>Mpumalanga</strong> plant.<br />

SAFCOL/Komatiland is the state forestry<br />

company with commercial and non-commercial<br />

operations covering a land area of 187 320ha.<br />

R9.5<br />

billion<br />

Amount invested in the foresty industry<br />

40%<br />

R560-million<br />

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

processing<br />

39<br />

out of 148 in South Africa<br />

18<br />

plants<br />

MAIN EXPORTS<br />

PULP<br />

PAPER<br />

SPECIALISED CELLULOSE<br />

SAWN LUMBER<br />

WOOD CHIPS<br />

WATTLE EXTRACT<br />

MAJOR COMPANIES<br />

SAPPI<br />

SAFCOL<br />

SONAE ARAUCO<br />

PG BISON<br />

YORK TIMBERS<br />

FX GROUP<br />

Sonae Arauco is a Portuguese investment.<br />

A new entrant, local BEE company the<br />

FX Group, is commissioning a greenfield<br />

particle board plant in Lothair in the Gert<br />

Sibande District.<br />

Of South Africa’s sustainable forests are located<br />

in <strong>Mpumalanga</strong> and it leads the nation in hectares<br />

planted and export earnings<br />

PG Bison’s recent investment in a new front-end<br />

dryer for its particleboard plant in Mkhondo<br />

(Piet Retief)<br />

Softwood saw-log plantations run in three<br />

provinces by Komatiland Forests, a subsidiary of<br />

state-owned enterprise SAFCOL


KEY SECTORS MINING, MINERALS AND ENERGY<br />

Mining is the province’s largest single sector providing employment to 5.2% of the<br />

province’s workforce and making up 20% of gross value added by region (GVA-R).<br />

Coal: 83% of South Africa’s coal production, 50% of national coal<br />

reserves, third-largest coal-exporting region in the world. Coal<br />

3%<br />

is the lifeblood of provincial economy, fuelling 11 Eskom power<br />

plants, which produce<br />

80% of South Africa’s<br />

electricity. Coal is<br />

of South Africa’s<br />

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

coal production<br />

largest export product,<br />

shipping mainly to India and Pakistan.<br />

MINERALS<br />

COAL Waste briquettes<br />

GOLD JEWELLERY<br />

CHROME<br />

PLATINUM<br />

IRON ORE<br />

VANADIUM<br />

MANGANESE<br />

GRANITE Building cladding<br />

& tombstone<br />

CLAY Porcelain & ceramics<br />

Electrical insulators<br />

0%<br />

of South<br />

Africa’s<br />

national<br />

coal<br />

reserves<br />

Other minerals: Gold mining takes place in Evander, Pilgrim’s Rest and<br />

Barberton. Gold is the second-largest export from the province.Platinum and<br />

chrome ore mining is located in the Steelpoort and Burgersfort areas in the<br />

north of the province and make up part of the Bushveld Igneous Complex.<br />

The mining services and technology industry is an important subsector in<br />

<strong>Mpumalanga</strong>. With over a century of commercial mining operations in the<br />

province, homegrown technologies are now exported globally.<br />

National utility Eskom will spend R3.3-billion on the revival of the Matla coal<br />

mine. Exxaro Resources will manage the project and do the mining while major<br />

companies such as DRA, Worley, Sandvik and WBHO will also be involved.<br />

Other companies engaged in expansion of life-of-mine projects are Pan<br />

African Resources and Evander (Elikhulu tailings), Exxaro Resources<br />

(Leeuwpan) and South32, which is spending about R4.3-billion at Klipspruit.<br />

Platinum is an important mineral for the modern economy. Two Rivers is a<br />

joint venture between Implats (46%) and African Rainbow Minerals which is<br />

located on the southern part of the eastern limb of the Bushveld Igneous<br />

Complex, 35km south-west of Burgersfort in <strong>Mpumalanga</strong>.<br />

Lydenburg is home to the Lion ferrochrome smelter that is a joint venture<br />

between Glencore and Merafe Resources.<br />

R3.8-billion<br />

To be spent by Exxaro on its Belfast coal mine,<br />

one of five assets in <strong>Mpumalanga</strong><br />

69 000<br />

People were employed in the mining industry in<br />

<strong>Mpumalanga</strong> in 2021 (StatsSA)<br />

16<br />

Platinum group metals (PGMs) projects are<br />

underway in the province, home to part of the<br />

eastern limb of the Bushveld Igneous Complex


KEY SECTORS GREEN ECONOMY AND JET<br />

<strong>Mpumalanga</strong> has historically been at the heart of the<br />

South African energy and industrial complex and is still<br />

heavily reliant on the mining and burning of fossil fuels.<br />

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

proactive in exploring opportunities in the Green Economy<br />

and pursuing a just transition to a low-carbon<br />

economy which secures the future and<br />

livelihoods of workers and their communities.<br />

Achieving such a just transition would<br />

require an integration of economic opportunities<br />

in sectors outside of energy and mining.<br />

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

11<br />

ESKOM POWER<br />

plants<br />

A Just Energy Transition (JET) to a<br />

Green Economy presents the<br />

following opportunities:<br />

• Renewable energy: solar, biomass, natural<br />

products<br />

• Gas and associated industries<br />

• Sustainable smart agriculture:<br />

environmentally-friendly agriculture<br />

and agricultural processing<br />

• Circular Green Economy: waste recycling,<br />

water reclamation, land rehabilitation<br />

• Soft infrastructure: reskilling and<br />

institutional capacity-building for a<br />

carbon-neutral future<br />

• Hard infrastructure: investment and<br />

expertise are needed in urban planning,<br />

water and waste management<br />

• Building technologies: greener and more<br />

energy-efficient<br />

• Transport and logistics: greener and<br />

more energy-efficient<br />

Specific opportunities include:<br />

Specific opportunities include:<br />

•There are plans for the decommissioning<br />

of 11 000MW of Eskom’s coal-fired<br />

capacity by 2030. Opportunities are<br />

presented by repurposing land.<br />

• The vast new fields of natural gas found<br />

off the coast of Mozambique could<br />

have a big impact on the <strong>Mpumalanga</strong><br />

economy.<br />

• A Renewable Energy Development<br />

Zone (REDZ) is planned for eMalahleni /<br />

Witbank where coal jobs are at risk.<br />

25MW<br />

One<br />

18<br />

The biomass energy plant at Sappi’s Ngodwana<br />

Mill started producing in March <strong>2022</strong> and can get<br />

through 35 tons per hour of biomass<br />

Pilot site of Carbon Capture, Utilisation and Storage<br />

(CCUS) project near power stations and chemicals<br />

complex, run by Council for Geoscience<br />

Winning bids from an auction among independent<br />

power producers (IPPs) to use Eskom land to<br />

generate 1 800MW of renewable energy


KEY SECTORS MANUFACTURING<br />

Three primary pillars of the manufacturing sector in <strong>Mpumalanga</strong> account for<br />

more than 60% of the output of the manufacturing sector, which overall makes up<br />

15% of gross value added, regional (GVA-R).<br />

Fuel, petroleum and chemical products are manufactured at the Sasol Secunda plant in<br />

Secunda, Gert Sibande District. It is one of the world’s largest synthetic fuels facilities,<br />

producing 60-million litres of liquid fuel a day. Products produced include petroleum,<br />

paraffin, jet fuel, creosote, bitumen and waxes.<br />

The ferro-alloy and stainless-steel industries are based in the Nkangala<br />

District. Columbus Stainless in Middelburg is Africa’s only producer of<br />

stainless-steel flat products. Samancor Chrome (Ferrometals), the world’s<br />

second-largest ferrochrome producer, has two plants in <strong>Mpumalanga</strong>.<br />

MAIN EXPORTS<br />

STAINLESS STEEL<br />

Cutlery<br />

Catering equipment<br />

Surgical instruments<br />

Automotive components<br />

STEEL White & grey goods<br />

Pipes & tubes<br />

Wire<br />

PETROCHEMICALS<br />

Plastic products<br />

Recycling plastics<br />

Artificial rubber products<br />

Paint & vanish<br />

Inks & dyes<br />

FOOD PROCESSING<br />

Maize meal<br />

Machinery<br />

Frozen & dehydrated<br />

VEGETABLES Preserves,<br />

pickles & condiments<br />

Nuts<br />

PAPER Recycling<br />

SUGAR Confectionery<br />

MINING Machinery<br />

and services<br />

RENEWABLE ENERGY<br />

Solar and biofuel<br />

Biomass<br />

Agro-processing is mainly based in the Lowveld Region and consists of<br />

manufacturing forestry products (pulp, paper and cellulose), sugar at the<br />

Selati RCL Foods plants in Nkomazi and processing subtropical fruit and nuts.<br />

The province’s flourishing macadamia nut industry has a number of<br />

large processing facilities based around the provincial capital Mbombela.<br />

Subtropical fruits like mango, banana, papaya and citrus are processed into<br />

juice concentrate or dried for export.<br />

There is a geographical divide in the manufacturing sector. Fuel, petroleum<br />

and chemical production occurs in the southern Highveld Region clustered<br />

around Sasol’s plants.<br />

The northern Highveld area, including Middelburg and eMalahleni (Witbank),<br />

is home to ferro-alloy, steel and stainless-steel concerns. Creative thinking<br />

kicked in when Highveld Steel’s troubles reached a tipping point. The<br />

1 000ha property in Emalahleni has been re-purposed as a multi-purpose<br />

site for industry and commerce. Called the Highveld Industrial Park, the<br />

project promotes a wide range of manufacturing enterprises.<br />

In the Lowveld, agricultural and forestry products are processed while<br />

Sappi’s giant mill is close to the company’s forests south-west of the<br />

provincial capital, Mbombela.<br />

1<br />

90 000<br />

200<br />

Five<br />

Square feet (8 361m²) of floor space at McCain’s<br />

food-processing plant in Delmas where French<br />

fries are made<br />

Textile machines work 24-hour days overseen by<br />

500 employees at Standerton Mills making yarns<br />

and fabrics<br />

Small business incubators run by Seda in<br />

<strong>Mpumalanga</strong> in renewable energy, furniture,<br />

floriculture, agriculture and stainless steel


KEY SECTORS TOURISM<br />

The importance of tourism to the economy of<br />

<strong>Mpumalanga</strong> cannot be overstated. The effect of<br />

the Covid-19 pandemic has been strongly felt.<br />

<strong>Mpumalanga</strong> received only 340 000 international visitors<br />

in 2020, down from 1.6-million international visitors<br />

in 2019. The key source countries were Mozambique,<br />

eSwatini, the USA, Germany, France and the UK.<br />

.6<br />

MILLION<br />

Number of visitors<br />

ANNUALLY pre-COVID-19<br />

3.7km<br />

500+<br />

21billion<br />

Rand value of tourist<br />

spend in <strong>Mpumalanga</strong>…<br />

before COVID-19<br />

Domestic tourism has steadily increased. The total tourist<br />

White crested hawk<br />

foreign direct spend (TTFDS) in <strong>Mpumalanga</strong> for 2020 was<br />

R7.5-billion, down from over R21-billion in 2019. The sector<br />

accounts for 6% of gross value added, by region (GVA-R).<br />

The announcement in <strong>2022</strong> by Eurowings Discover, a new<br />

division of Lufthansa, that it would start flying three times a<br />

week to Mbombela from Frankfurt, via Windhoek, will give a<br />

certain boost to tourist numbers visiting <strong>Mpumalanga</strong>.<br />

The Kruger National Park is <strong>Mpumalanga</strong>’s most famous<br />

tourist asset and safaris and hunting are major tourist<br />

attractions. The Manyeleti Reserve, a 23 750-hectare<br />

game reserve sharing a fenceless border with the Kruger<br />

National Park, is operated and<br />

managed by the <strong>Mpumalanga</strong><br />

Tourism and Parks Agency<br />

(MTPA). God’s Window and the Blyde River Canyon Reserve are<br />

other provincial treasures attracting investment.<br />

Business travel, including conferencing, adventure, heritage<br />

and cultural tourism, all hold huge growth potential in<br />

<strong>Mpumalanga</strong>, but require investment in infrastructure and<br />

product development.<br />

A hotel and conference centre project in Middelburg is<br />

making progress and should be completed in 2023.<br />

13<br />

Length of one of Eastgate Airport’s runways at<br />

Hoedspruit, which doubles as an airforce base.<br />

The other runway is 2.1km<br />

Bird species recorded in the Kruger National Park,<br />

including the Kori Bustard, Martial Eagle, Southern<br />

Ground Hornbill and Lappetfaced Vulture<br />

Nature reserves are run by the <strong>Mpumalanga</strong><br />

Tourism and Parks Agency and Kruger National<br />

Park is run by SANParks


INVESTMENT OPPORTUNITIES TOURISM<br />

Selected Strategic High Impact Projects:<br />

BOURKE’S LUCK POTHOLES HOTEL<br />

This natural water wonder is a major tourism attraction<br />

in the <strong>Mpumalanga</strong> Lowveld. This project presents an<br />

investment opportunity for a five-star hotel and a<br />

top-quality restaurant.<br />

Feasibility study: completed<br />

Environmental Impact Assessment (EIA): commenced<br />

Model: Joint Venture (JV), Build-Operate-Transfer (BOT)<br />

Value: R100-million<br />

BLYDE RIVER CANYON<br />

CABLE CAR PROJECT<br />

The Blyde River Canyon is the largest and deepest<br />

green canyon in the world and offers a spectacular<br />

opportunity to build a cable car transporting tourists<br />

from the top of the canyon to the peninsula below.<br />

Feasibility study: completed<br />

EIA: commenced<br />

Model: JV, BOT<br />

Value: R500-million<br />

GOD’S WINDOW SKY WALK<br />

The project to build a “Sky Walk”, an incomegenerating<br />

tourism attraction off the edge of the 700m<br />

God’s Window cliffs, giving 360-degree panoramic<br />

views out and down through a glass floor.<br />

Feasibility study: completed<br />

EIA: commenced<br />

Investors secured<br />

Model: JV, BOT<br />

Value: R100-million


INVESTMENT OPPORTUNITIES PRODUCE MARKET<br />

Selected Strategic High Impact Projects:<br />

MPUMALANGA INTERNATIONAL FRESH PRODUCE MARKET<br />

MEGA is establishing a R1.2-billion fresh<br />

produce market facility located in Mbombela, the<br />

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

(MIFPM). To date the province has invested an<br />

estimated R540-million in the project.<br />

<strong>Mpumalanga</strong> is one of South Africa’s most<br />

productive and important agriculture regions.<br />

It is home to predominantly tropical and<br />

subtropical crops and vegetables owing to its<br />

conducive climate. The tropical and subtropical<br />

crops consist of avocado, banana, citrus, ginger,<br />

granadilla, guava, litchi, macadamia nut, mango,<br />

papaya and pineapple.<br />

The vegetables produced include potatoes,<br />

tomatoes, pumpkins, sweet corn, onions,<br />

sweet potatoes, beetroot, carrots, green peas,<br />

cauliflower, cabbages and green beans.<br />

The market will offer:<br />

• Open trading halls for fruit and vegetables<br />

• A meat, fish and flower market<br />

• Complementary cold storage, ripening facilities<br />

and pallet handling<br />

• Processing facilities<br />

• An export hall<br />

• Bulk-breaking facilities for retail outlets<br />

• Links with statutory organisations such as<br />

customs, PPEBC and EuroGap<br />

• Transport and logistics enterprises<br />

• Shared collation and pack house facilities for<br />

SMMEs<br />

• Commercial services including banks and<br />

restaurants<br />

• A food bank for NGOs<br />

Site: The site is in Mbombela on a 248ha<br />

plot less than 10km from the Central<br />

Business District. It is situated within the<br />

Maputo Development Corridor (MDC), linking<br />

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

Special Economic Zone with the deepwater Port<br />

of Maputo in Mozambique.<br />

The market: The market will give local farmers<br />

access to local, regional and international fresh<br />

produce markets and will aid in ensuring food<br />

security for the region.<br />

The infrastructure of the MIFPM will attract<br />

international as well as the large domestic food<br />

retailers as a key processing and distribution<br />

point. It will also secure <strong>Mpumalanga</strong>’s position<br />

in the regional export market in fresh produce.<br />

Feasibility study: completed<br />

EIA: completed<br />

Bulk infrastructure: completed<br />

Top structures: underway<br />

Model: JV, BOT<br />

Value: R1-billion


MPUMALANGA – NKOMA<br />

H<br />

INVESTMENT OPPORTUNITIES NKOMAZI SEZ<br />

Selected Strategic High Impact Projects:<br />

H<br />

NKOMAZI SPECIAL ECONOMIC ZONE<br />

The Nkomazi Special Economic Zone has<br />

Recreation<br />

been officially designated and MEGA has<br />

Centralised Facilities<br />

been appointed to establish the entity.<br />

SEZs are geographically designated<br />

areas set aside for specifically targeted<br />

Convenience Retail<br />

economic activities that are supported<br />

through special tax incentives. An SEZ<br />

Accommodation<br />

aims to be an economic development tool<br />

to promote rapid economic growth by<br />

using various support measures to attract targeted foreign and domestic investments<br />

and technology. The main goal is to support the implementation of South Africa’s industrial<br />

development programme.<br />

<strong>2022</strong>/03/23<br />

Strategically positioned in the border town of Komatipoort, the SEZ offers a multi-sector<br />

base of operations along the Maputo Development Corridor which provides exporters with<br />

MPUMALANGA – FOREIGN T<br />

Distance to:<br />

► Johannesburg – 449km<br />

► Mbombela – 103km<br />

► Maputo – 99km<br />

► Mbabane – 186km<br />

good access through Maputo Port to the export markets of South East Africa, the Indian<br />

MPUMALANGA – NKOMAZI SEZ<br />

Ocean Rim and Far East Asia.<br />

The Nkomazi SEZ will target investment from the agriculture, agro-processing,<br />

nutraceuticals and fertiliser production sectors, as having a strong focus on logistics and<br />

trade services.<br />

The NSEZ offers the investor a unique and incentivised base of operations on the Maputo<br />

Development Corridor running through the most highly industrialised and productive regions<br />

of Southern Africa.<br />

The Maputo Corridor is bound to develop even more as the Maputo harbour improves<br />

its handling and scheduling capacity. In the event that a second rail line to Maputo to<br />

complement the current rail link is developed, the shipment of mining products and<br />

MPUMALANGA – FOREIGN TRADE<br />

Distance to:<br />

► Johannesburg – 449km<br />

► Mbombela – 103km<br />

► Maputo – 99km<br />

► Mbabane – 186km<br />

Manufacturing<br />

agricultural produce to and from the Limpopo and<br />

<strong>Mpumalanga</strong> provinces will increase.<br />

The NSEZ is set to provide One-Stop-Shop<br />

services, incentives, innovation platform, a<br />

competitive and transparent market environment,<br />

and timeous and efficient responses to investors’<br />

market requirements.<br />

Logistics


FOREIGN TRADE<br />

<strong>Mpumalanga</strong> is proving to be a key player in the local<br />

economy as well as internationally.<br />

TOP EXPORTS 2021<br />

Ferroy-alloys R33-billion ($2.2-billion)<br />

Stainless steel R8.9-billion ($593.3-million)<br />

Platinum R8.7-billion ($580-million)<br />

Gold R7.3-billion ($486.7-million)<br />

Macadamia nuts R4.2-billion ($280-million)<br />

Coal R3.7-billion ($246.7-million)<br />

Chrome ore R2.2-billion ($146.7-million)<br />

Manganese R1.2-billion ($80-million)<br />

Fuel wood R1-billion ($66.7-million)<br />

Citrus fruit R604-million ($40.3-million)<br />

TOP 10 EXPORT MARKETS 2021<br />

UAE R9.9-billion ($664-million)<br />

People’s Republic of China R9.8-billion ($663.3-million)<br />

USA R8-billion ($533.3-million)<br />

Mozambique R7.4-billion ($493.3-million)<br />

Japan R5.5-billion ($366.6-million)<br />

Korea R3.8-billion ($253.3-million)<br />

Netherlands R3.3-billion ($220-million)<br />

eSwatini R3-billion ($200-million)<br />

Indonesia R2.9-billion ($193.3-million)<br />

United Kingdom R2.7-billion ($180-million)

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