18.08.2022 Views

Mpumalanga Business 2022-23

The 2022/23 edition of Mpumalanga Business is the 13th issue of this successful publication that since its launch in 2008 has established itself as the premier business and investment guide for the province. With messages of welcome to potential investors from both the provincial premier and the MEC responsible for Economic Development and Tourism, this edition of the journal also contains the official Mpumalanga Investment Prospectus, a comprehensive survey of the province’s assets and the potential of the region. Major catalytic projects such as the Nkomazi Special Economic Zone (NSEZ) and the Mpumalanga International Fresh Produce Market (MIFPM) are examined in detail, outlining how producers, processors and logistics firms stand to benefit and where there is potential for investment. In addition to the Prospectus, the journal contains a special feature on education and a series of brief news briefs about some of the most important sectors in the provincial economy.

The 2022/23 edition of Mpumalanga Business is the 13th issue of this successful publication that since its launch in 2008 has established itself as the premier business and investment guide for the province.
With messages of welcome to potential investors from both the provincial premier and the MEC responsible for Economic Development and Tourism, this edition of the journal also contains the official Mpumalanga Investment Prospectus, a comprehensive survey of the province’s assets and the potential of the region. Major catalytic projects such as the Nkomazi Special Economic Zone (NSEZ) and the Mpumalanga International Fresh Produce Market (MIFPM) are examined in detail, outlining how producers, processors and logistics firms stand to benefit and where there is potential for investment. In addition to the Prospectus, the journal contains a special feature on education and a series of brief news briefs about some of the most important sectors in the provincial economy.

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

MPUMALANGA<br />

MPUMALANGA<br />

BUSINESS<br />

BUSINESS<br />

THE GUIDE TO BUSINESS AND INVESTMENT IN<br />

MPUMALANGA PROVINCE<br />

<strong>2022</strong>/<strong>23</strong> EDITION<br />

2021/22 EDITION<br />

THE GUIDE TO BUSINESS AND INVESTMENT IN<br />

MPUMALANGA PROVINCE<br />

MPUMALANGA BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN MPUMALANGA<br />

MPUMALANGA<br />

BUSINESS<br />

THE GUIDE TO BUSINESS AND INVESTMENT<br />

IN MPUMALANGA PROVINCE<br />

2018/19 EDITION<br />

INCLUDING MPUMALANGA INVESTMENT PROSPECTUS<br />

JOIN JOIN US US ONLINE<br />

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

JOIN JOIN US ONLINE US ONLINE<br />

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

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

2018/19<br />

MPUMALANGA


MESSAGE<br />

Enabling Africa’s progress<br />

MTN is evolving into a technology company with<br />

a broad range of services across many platforms,<br />

as CEO Charles Molapisi outlines.<br />

CEO Charles Molapisi<br />

MTN has, over the years, been<br />

connecting millions of South Africans.<br />

Currently, MTN shares the benefits of a<br />

modern connected life with 33-million<br />

customers across South Africa.<br />

Our Ambition 2025: “Digital solutions for<br />

Africa’s progress” is driving accelerated growth<br />

and faster deleveraging, positioning MTN for<br />

greater relevance to 2025.<br />

Our brand refresh is inspired by our new<br />

strategy, Ambition 2025. MTN is ushering in a<br />

new look that is aligned to our evolution from a<br />

telecommunications company to a technology<br />

company underpinned by one simple,<br />

consistent, yet striking brand.<br />

As a platform business we build digital<br />

platforms that enable Africa’s progress across<br />

the telecom, fintech, fibre-data, API and content<br />

and messaging ecosystem.<br />

The new brand identity is modern, simple,<br />

bold and digitally dynamic. It kicks off with a<br />

provocative and simple question, “What are we<br />

doing today?”<br />

With a clear and concise brand strategy<br />

that Opportunity + Energy = Progress, MTN<br />

understands that to truly unlock the full benefits<br />

and potential of the digital world, people require<br />

a combination of drive, progressive thinking and<br />

the right tools. ■


Doing<br />

accelerates<br />

business<br />

MTN <strong>Business</strong> Uncapped<br />

MTN <strong>Business</strong> Uncapped data plans are speed-based, offering you uncapped<br />

data and giving you the option to choose your preferred speeds to enable<br />

premium wireless connectivity of Fixed LTE.<br />

So. What are we doing today?<br />

Fast<br />

Faster<br />

Fastest<br />

Faster<br />

Fastest<br />

MTN <strong>Business</strong> Fixed LTE<br />

MTN <strong>Business</strong> Fixed LTE<br />

MTN <strong>Business</strong> Fixed LTE<br />

MTN <strong>Business</strong> Premium<br />

Fixed LTE<br />

MTN <strong>Business</strong> Premium<br />

Fixed LTE<br />

Up to<br />

5Mbps<br />

Uncapped Data<br />

R<br />

399<br />

Month-to-Month<br />

Up to<br />

10Mbps<br />

Uncapped Data<br />

R<br />

499<br />

Month-to-Month<br />

Up to<br />

20Mbps<br />

Uncapped Data<br />

R<br />

699<br />

Month-to-Month<br />

Up to<br />

10Mbps<br />

Uncapped Data<br />

R<br />

699<br />

Month-to-Month<br />

Up to<br />

20Mbps<br />

Uncapped Data<br />

R<br />

799<br />

Month-to-Month<br />

Fair use policy*<br />

Fair use policy*<br />

Fair use policy*<br />

Fair use policy*<br />

Fair use policy*<br />

Purchase an MTN Fixed LTE router for R1 799 (once-off)<br />

with a Month-to-Month contract.<br />

Get your business connected today with a<br />

FREE ** router on a 24-month contract<br />

R<br />

349 PMx24<br />

R<br />

449 PMx24<br />

R<br />

649 PMx24<br />

R<br />

649 PMx24<br />

R<br />

749 PMx24<br />

TBWA\HUNT\LASCARIS 935484<br />

Call 083 1<strong>23</strong> 1800<br />

Click mtnbusiness.co.za<br />

Visit MTN stores<br />

*A Fair Usage Policy applies to all price plans. A Fair Usage Limit is set per price plan, whereafter the speed is reduced until month end. The service remains uncapped. Please refer to our website for more details.<br />

MTN <strong>Business</strong> Uncapped Terms and Conditions: Customers must be within the new Fixed LTE coverage areas in order to participate in the offering. ** The free router promotion is available to new contract<br />

customers, customers who want to take an additional line or existing upgrading customers. Available until 31/08/<strong>2022</strong>. See mtn.co.za for full Terms and Conditions. E&OE.


CONTENTS<br />

<strong>Mpumalanga</strong> <strong>Business</strong> 2021/22 Edition<br />

Introduction<br />

Foreword 6<br />

<strong>Mpumalanga</strong>’s unique guide to business and investment.<br />

Messages<br />

A journey to a prosperous and<br />

inclusive future 10<br />

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

A new era of investing in <strong>Mpumalanga</strong> 11<br />

Department of Economic Development and Tourism<br />

MEC Vusi Mkhatshwa.<br />

<strong>Mpumalanga</strong> Investment Prospectus<br />

Why invest in <strong>Mpumalanga</strong> 8<br />

The perfect launch pad for Africa 12<br />

The <strong>Mpumalanga</strong> economy 14<br />

Key sectors: Forestry, Agriculture,<br />

Mining, Minerals and Energy, Tourism 16-19<br />

Investment opportunities<br />

Tourism 22<br />

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

Produce Market <strong>23</strong><br />

Nkomazi Special Economic Zone 24<br />

Foreign trade 25<br />

MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong><br />

2


Technology is accelerating the<br />

shift to sustainable fuels<br />

Mercia Grimbeek, ENERTRAG South Africa’s Development Director, believes<br />

that a collaborative approach is needed to achieve a Just Energy Transition.<br />

INTERVIEW<br />

Is the Renewable Energy Independent Power Producer Procurement<br />

Programme (REI4P) proceeding satisfactorily?<br />

The REI4P has gained momentum after a significant hiatus. Industry has<br />

seen the commitment from government to significantly deploy renewables<br />

through the execution of Bid Rounds six and beyond.<br />

Mercia Grimbeek<br />

BIOGRAPHY<br />

Mercia Grimbeek is a seasoned<br />

development professional in the<br />

energy and environment industry.<br />

She has extensive local and<br />

international experience in the<br />

development of renewable projects.<br />

She currently holds the position of<br />

Development Director at ENERTRAG<br />

South Africa. Mercia continues to<br />

contribute to the development and<br />

growth of the renewable industry and<br />

serves as Director and Chairperson<br />

of the South African Wind Energy<br />

Association (SAWEA). She is an avid<br />

champion for the development of<br />

women and youth in the industry.<br />

What are the biggest challenges in the sector in South Africa?<br />

The most significant challenges relate to grid infrastructure. The country<br />

has a supply of well-developed projects that can be executed but a lack<br />

of transmission grid to evacuate power in certain geographical areas is a<br />

major constraint. A second challenge is the regulatory environment. Once<br />

again, as evidenced by the recent presidential announcements, there has<br />

been positive movement to expedite certain processes. As industry we<br />

now look forward to placing electrons on the grid with more streamlined<br />

regulatory processes in place.<br />

Does ENERTRAG believe a “Just Energy Transition” is possible?<br />

ENERTRAG is fully supportive of a Just Energy Transition but we are mindful<br />

that this can only be achieved through a collaborative process that includes<br />

consultation with a multitude of stakeholders. We view the Just Transition as<br />

the journey to low emissions and a climate-resilient economy, while engaging<br />

to ensure that the transition is equitable. ENERTRAG acknowledges that the<br />

transition is not only climate related but it addresses social and economic<br />

issues that impact the competitiveness and livelihoods of South Africans.<br />

Where are the company’s operations in <strong>Mpumalanga</strong>?<br />

ENERTRAG has invested substantially in the development of projects<br />

across the <strong>Mpumalanga</strong> province. Areas that have sufficient wind and<br />

solar resource were identified and are being permitted for execution.<br />

What is the point of difference that ENERTRAG offers?<br />

ENERTRAG’s point of difference is its holistic-energy system approach.<br />

We differentiate ourselves through the optimisation of technologies to<br />

support the transition to a carbon-neutral economy. To this end we have<br />

been operating a green-hydrogen production facility since 2010 and<br />

provide fuels for heating and transportation that are completely green.<br />

Are there new technologies that lie ahead which could help the world<br />

move away from fossil fuels?<br />

The advancements in electrolyser technology will shift the way the world<br />

produces and consumes fuels such as hydrogen and ammonia. This will<br />

support the acceleration away from fossil fuels and aid the production of<br />

sustainable fuels. ■


MPUMALANGA<br />

CONTENTS<br />

Overview and Sector News<br />

A regional overview of <strong>Mpumalanga</strong> 36<br />

A new agency has been created to smooth the way to a greener<br />

economy while Eskom makes land available for renewable projects.<br />

Educational opportunities are<br />

growing in <strong>Mpumalanga</strong> 42<br />

A new university and active technical and vocational<br />

colleges offer a wide range of qualifications.<br />

Oil and gas 46<br />

Air Liquide has increased its presence in the province.<br />

Transport and logistics 47<br />

Major roadworks are underway on strategic routes.<br />

Water 48<br />

The Loskop Bulk Water Project is to be accelerated.<br />

Manufacturing 49<br />

Enaex has teamed up with Sasol.<br />

Tourism 50<br />

A new European airline has added Kruger <strong>Mpumalanga</strong><br />

International Airport to its roster.<br />

Banking and financial services 51<br />

Mutual banks have been granted licences.<br />

ICT 52<br />

<strong>Mpumalanga</strong> has migrated to digital transmitters.<br />

Development finance and SMME support 54<br />

Trade and accommodation are popular sectors for startups.<br />

MPUMALANGA BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN MPUMALANGA<br />

2021/22<br />

MPUMALANGA<br />

MPUMALANGA<br />

BUSINESS<br />

THE GUIDE TO BUSINESS AND INVESTMENT IN<br />

MPUMALANGA PROVINCE<br />

THE GUIDE TO BUSINESS AND INVESTMENT IN<br />

MPUMALANGA PROVINCE<br />

JOIN JOIN US US ONLINE<br />

MPUMALANGA BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN MPUMALANGA<br />

2018/19<br />

MPUMALANGA<br />

BUSINESS<br />

THE GUIDE TO BUSINESS AND INVESTMENT<br />

IN MPUMALANGA PROVINCE<br />

<strong>2022</strong>/<strong>23</strong> EDITION<br />

2021/22 EDITION<br />

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

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

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

2018/19 EDITION<br />

INCLUDING MPUMALANGA INVESTMENT PROSPECTUS<br />

ABOUT THE COVER:<br />

Top left, then clockwise: Sasol’s octene plant at Secunda, Sasol; Textile techniques,<br />

Standerton Mills; More than 500 bird species have been spotted in the Kruger<br />

National Park, <strong>Mpumalanga</strong> Tourism and Parks Agency; Some of the country’s<br />

best architectural firms competed to design buildings for the University of<br />

<strong>Mpumalanga</strong>; University of <strong>Mpumalanga</strong>; Macadamias, Freepik.com; Precision is<br />

vital in mining, SASOL; Centre; Hot-air ballooning, MTPA.


MEGA is the Official Economic Development Agency<br />

for <strong>Mpumalanga</strong> Province - South Africa<br />

MBOMBELA HEAD OFFICE: T. +27 13 752 2440<br />

www.mega.gov.za • trade-invest@mega.gov.za


FOREWORD<br />

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

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

Credits<br />

Publishing director:<br />

Chris Whales<br />

Editor: John Young<br />

Managing director: Clive During<br />

Online editor: Christoff Scholtz<br />

Designer: Tyra Martin<br />

Production: Yonella Ngaba<br />

Ad sales:<br />

Gavin van der Merwe<br />

Sam Oliver<br />

Gabriel Venter<br />

Vanessa Wallace<br />

Shiko Diala<br />

Administration & accounts:<br />

Charlene Steynberg<br />

Kathy Wootton<br />

Distribution and circulation<br />

manager: Edward MacDonald<br />

Printing: FA Print<br />

The <strong>2022</strong>/<strong>23</strong> edition of <strong>Mpumalanga</strong> <strong>Business</strong> is the 13th issue<br />

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

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

guide for the province.<br />

With messages of welcome to potential investors from both the provincial<br />

premier and the MEC responsible for Economic Development and<br />

Tourism, this edition of the journal also contains the official <strong>Mpumalanga</strong><br />

Investment Prospectus, a comprehensive survey of the province’s assets and<br />

the potential of the region. Major catalytic projects such as the Nkomazi<br />

Special Economic Zone (NSEZ) and the <strong>Mpumalanga</strong> International Fresh<br />

Produce Market (MIFPM) are examined in detail, outlining how producers,<br />

processors and logistics firms stand to benefit and where there is potential<br />

for investment. In addition to the Prospectus, the journal contains a special<br />

feature on education and a series of brief news briefs about some of the<br />

most important sectors in the provincial economy.<br />

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

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

online at www.globalafricanetwork.com. Updated information on<br />

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

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

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

our flagship South African <strong>Business</strong> title and the new addition our list of<br />

publications, African <strong>Business</strong>, which was launched in 2020. ■<br />

Chris Whales<br />

Publisher, Global Africa Network Media | Email: chris@gan.co.za<br />

DISTRIBUTION<br />

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

outgoing and incoming trade missions, through trade and<br />

investment agencies; to foreign offices in South Africa’s<br />

main trading partners around the world; at top national<br />

and international events; through the offices of foreign<br />

representatives in South Africa; as well as nationally and<br />

regionally via chambers of commerce, tourism offices, airport<br />

lounges, provincial government departments, municipalities<br />

and companies.<br />

Member of the Audit Bureau<br />

of Circulations<br />

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

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

to the publication vests with Global Africa Network Media (Pty) Ltd.<br />

No part of the publication may be reproduced in any form without<br />

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

PHOTO CREDITS | Anglo American, Air Liquide, Enaex, Eskom,<br />

Eurowings Discover, Gert Sibande TVET College, MEGA, Middelburginfo,<br />

Motheo Group, PG Bison, Southern African Wildlife College, Ubank,<br />

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

PUBLISHED BY<br />

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

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

Directors: Clive During, Chris Whales<br />

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

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

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

ISSN 2222-3274<br />

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

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

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

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

timeliness, or completeness of the information. Global Africa Network<br />

will not accept responsibility for any loss or damage suffered as a result<br />

of the use of or any reliance placed on such information.


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 />

Investment 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>!


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 Investment Promotion,<br />

Development Funding, Equity Investments, 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 Investment 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 />

• Investment 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


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


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


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 Investment Promotion,<br />

Development Funding, Equity Investments, 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 Investment 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 />

• Investment 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


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 />

• 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 />

MILLION<br />

Number of visitors<br />

ANNUALLY pre-COVID-19<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 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 <strong>23</strong> 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 />

<strong>Business</strong> 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 20<strong>23</strong>.<br />

3.7km<br />

500+<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 />

<strong>Business</strong> 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/<strong>23</strong><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


ZI SEZ<br />

RADE<br />

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 />

17<br />

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


SPECIAL FEATURE<br />

Establishing a business<br />

in South Africa<br />

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

international companies and individuals.<br />

new legislation, no new Close Corporations can<br />

be created but CCs can convert to companies.<br />

Registration of company<br />

The company must be registered with the<br />

Companies and Intellectual Proper ties<br />

Commission (CPIC) in Pretoria within 21 days of<br />

the company being started. There are a range of<br />

administrative procedures that need to be fulfilled.<br />

Bank account<br />

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

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

Autobody repair is a thriving subsector. Credit: Seda<br />

South Africa has a sophisticated legal,<br />

regulatory and banking system. Setting<br />

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

straightforward process with assistance<br />

being offered by organisations such as the<br />

Department of Trade, Industry and Competition<br />

and provincial investment agencies like the<br />

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

South African law regulates the establishment<br />

and conduct of businesses throughout the<br />

country. Tax, investment incentives, regulations<br />

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

throughout the country.<br />

The particular environment varies from<br />

province to province with regard to the<br />

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

infrastructure and support services, business<br />

opportunities and the quality of life. In this<br />

respect, MEGA can offer specific advice about the<br />

business environment in the province.<br />

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

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

accounting and reporting requirements. Under<br />

Registration with the receiver of revenue<br />

• As a Provisional Taxpayer<br />

• As a VAT vendor<br />

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

money earned by employees<br />

• For Standard Income Tax on Employees<br />

Registration with the Department of Labour<br />

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

Department of Labour regarding mandatory contributions<br />

to the Unemployment Insurance Fund<br />

(UIF). Register with Compensation Commissioner<br />

for Compensation Fund: Files with the Compensation<br />

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

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

Registration with the local authority<br />

Relevant only to businesses dealing in fresh<br />

foodstuffs or health matters.<br />

Other procedures<br />

• Checking exchange control procedures (note<br />

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

exchange controls except for certain categories<br />

of investment).<br />

MPUMALANGA FREE STATE BUSINESS 2021 <strong>2022</strong>/<strong>23</strong><br />

MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong> 2620<br />

26


iiiiiiiissssssss rrrrrrrreeeeeeeennnnnnnnttttttttiiiiiiiinnnnnnnngggg oooooooouuuuuuuutttttttt 11888 8885000 ssssssssqqmmmmmmmm ssssssssttttttttaaaaaaaannnnnnnnddddddddaaaaaaaalllllllloooooooonnnnnnnneeeeeeee fffffffaaaaaaaaccccccccttttttttoooooooorrrrrrrryyyyyy iiiiiiiinnnnnnnncccccccclllllllluuuuuuuuddddddddiiiiiiiinnnnnnnngggg FFFFuuuuuuuurrrrrrrrnnnnnnnniiiiiiiittttttttuuuuuuuurrrrrrrreeeeeeee<br />

FFFFDDC<br />

MMaaaaaaaacccccccchhhhhhhhiiiiiiiinnnnnnnneeeeeeeerrrrrrrryyyyyy,,,,,, Eqquuuuuuuuiiiiiiiippppppppmmmmmmmmeeeeeeeennnnnnnntttttttt,,,,,, aaaaaaaannnnnnnndddddddd FFFFuuuuuuuurrrrrrrrnnnnnnnniiiiiiiittttttttuuuuuuuurrrrrrrreeeeeeee fffffffoooooooorrrrrrrr Buuuuuuuussssssssiiiiiiiinnnnnnnneeeeeeeessssssssssssssss<br />

MMaaaaaaaannnnnnnnuuuuuuuufffffffaaaaaaaaccccccccttttttttuuuuuuuurrrrrrrriiiiiiiinnnnnnnngggg<br />

2021/22<br />

2018/19<br />

2018/19<br />

MPUMALANGA<br />

SPECIAL FEATURE<br />

• Obtaining approval for building plans<br />

• Applying for industry and export incentives<br />

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

duties payable<br />

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

applying for an export permit.<br />

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

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

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

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

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

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

Branches of foreign companies fall under<br />

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

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

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

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

appoint a person resident in South Africa who<br />

is authorised to accept services of process and<br />

any notices served on the company. It must also<br />

appoint a registered local auditor and establish a<br />

registered office in South Africa.<br />

Patents, trademarks and copyrights<br />

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

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

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

granted for 20 years, normally without an option<br />

to renew. The holder of a patent or trademark<br />

must pay an annual fee in order to preserve its<br />

validity. Patents and trademarks may be licensed<br />

but where this involves the payment of royalties<br />

to non-resident licensors, prior approval of the<br />

licensing agreement must be obtained from<br />

the dtic. South Africa is a signatory to the Berne<br />

Copyright Convention.<br />

Permits for foreign nationals<br />

Work permits<br />

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

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

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

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

following:<br />

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

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

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

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

employee prior to hiring a foreigner?<br />

• Is the prospective employee appropriately<br />

qualified and do they have the relevant<br />

IIIIINNNDUSSTTTTTTTRRRRRRIIIIIAAL PPPRRRRRROOOPPPEERRRRRRTTTTTTTY TTTTTTTOOO RRRRRREENNNTTTTTTT IIIIINNN HHAARRRRRRRRRRRRIIIIISSMMMIIIIITTTTTTTHH<br />

FFFFDDC iiiiiiiissssssss rrrrrrrreeeeeeeennnnnnnnttttttttiiiiiiiinnnnnnnngggg oooooooouuuuuuuutttttttt 11888 8885000 ssssssssqqmmmmmmmm ssssssssttttttttaaaaaaaannnnnnnnddddddddaaaaaaaalllllllloooooooonnnnnnnneeeeeeee fffffffaaaaaaaaccccccccttttttttoooooooorrrrrrrryyyyyy iiiiiiiinnnnnnnncccccccclllllllluuuuuuuuddddddddiiiiiiiinnnnnnnngggg FFFFuuuuuuuurrrrrrrrnnnnnnnniiiiiiiittttttttuuuuuuuurrrrrrrreeeeeeee<br />

MMaaaaaaaannnnnnnnuuuuuuuufffffffaaaaaaaaccccccccttttttttuuuuuuuurrrrrrrriiiiiiiinnnnnnnngggg MMaaaaaaaacccccccchhhhhhhhiiiiiiiinnnnnnnneeeeeeeerrrrrrrryyyyyy,,,,,, Eqquuuuuuuuiiiiiiiippppppppmmmmmmmmeeeeeeeennnnnnnntttttttt,,,,,, aaaaaaaannnnnnnndddddddd FFFFuuuuuuuurrrrrrrrnnnnnnnniiiiiiiittttttttuuuuuuuurrrrrrrreeeeeeee fffffffoooooooorrrrrrrr Buuuuuuuussssssssiiiiiiiinnnnnnnneeeeeeeessssssssssssssss HHAARRRRRRRRRRRRIIIIISSMMMIIIIITTTTTTTHH<br />

IIIIINNN RRRRRREENNNTTTTTTT TTTTTTTOOO PPPRRRRRROOOPPPEERRRRRRTTTTTTTY IIIIINNNDUSSTTTTTTTRRRRRRIIIIIAAL<br />

Oppppppppeeeeeeeerrrrrrrraaaaaaaattttttttiiiiiiiioooooooonnnnnnnn........<br />

experience?<br />

Thhhhhhhheeeeeeee fffffffaaaaaaaaccccccccttttttttoooooooorrrrrrrryyyyyy iiiiiiiissssssss SSSSiiiiiiiittttttttuuuuuuuuaaaaaaaatttttttteeeeeeeedddddddd aaaaaaaatttttttt SSSSiiiiiiiitttttttteeeeeeee 22227777 iiiiiiiinnnnnnnn Haaaaaaaarrrrrrrrrrrrrrrriiiiiiiissssssssmmmmmmmmiiiiiiiitttttttthhhhhhhh aaaaaaaannnnnnnndddddddd cccccccclllllllloooooooosssssssseeeeeeee pppppppprrrrrrrrooooooooxiiiiiiiimmmmmmmmiiiiiiiittttttttyyyyyy ttttttttoooooooo aaaaaaaallllllllllllllll aaaaaaaammmmmmmmeeeeeeeennnnnnnniiiiiiiittttttttiiiiiiiieeeeeeeessssssss,,,,,, oooooooonnnnnnnn<br />

Oppppppppeeeeeeeerrrrrrrraaaaaaaattttttttiiiiiiiioooooooonnnnnnnn........<br />

mmmmmmmmaaaaaaaaiiiiiiiinnnnnnnn aaaaaaaarrrrrrrrtttttttteeeeeeeerrrrrrrriiiiiiiiaaaaaaaallllllll rrrrrrrroooooooouuuuuuuutttttttteeeeeeeessssssss aaaaaaaannnnnnnndddddddd Quuuuuuuuiiiiiiiicccccccckkkk aaaaaaaacccccccccccccccceeeeeeeessssssssssssssss oooooooonnnnnnnnttttttttoooooooo N33 FFFFrrrrrrrreeeeeeeeeeeeeeeewwwwwwaaaaaaaayyyyyy....<br />

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

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

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

apart from having sufficient funds to support<br />

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

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

FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND<br />

CORRUPTION The INCIDENTS funds TO THE FRAUD HOTLINE must 0800 212 154 originate overseas, be<br />

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

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

CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154<br />

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

jobs for South African citizens. After six months<br />

to a year, proof will have to be submitted that the<br />

business is employing South African citizens or<br />

permanent residents, excluding family members<br />

of the employer.<br />

Applications for work permits for selfemployment<br />

can only be lodged at the South<br />

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

country of origin. The processing fee is US$186. The<br />

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

guarantee with the consulate/embassy equivalent<br />

to the price of a one-way flight from South Africa<br />

back to his or her country of origin.<br />

This guarantee is refundable once the<br />

applicant has either left South Africa permanently<br />

or obtained permanent residence. Any application<br />

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

lodged locally. The processing fee per passport<br />

holder is R425. Some countries also need to pay<br />

R108 per return visa.<br />

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

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

MEGA MEGA assists assists investors in in applying for the<br />

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

TTTTTTThhiiiiiiiisss fffffffaaaaaaaacccccttttttttoooooooorrrrrrryy ooooooooffffffffffffffeeeeeeeerrrrrrrsss tttttttthheeeeeeee fffffffoooooooolllllllllllllloooooooowwiiiiiiiinnnnng::<br />

22227777 iiiiiiiinnnnnnnn Haaaaaaaarrrrrrrrrrrrrrrriiiiiiiissssssssmmmmmmmmiiiiiiiitttttttthhhhhhhh aaaaaaaannnnnnnndddddddd cccccccclllllllloooooooosssssssseeeeeeee pppppppprrrrrrrrooooooooxiiiiiiiimmmmmmmmiiiiiiiittttttttyyyyyy ttttttttoooooooo aaaaaaaallllllllllllllll aaaaaaaammmmmmmmeeeeeeeennnnnnnniiiiiiiittttttttiiiiiiiieeeeeeeessssssss,,,,,, oooooooonnnnnnnn<br />

SSSSiiiiiiiitttttttteeeeeeee aaaaaaaatttttttt SSSSiiiiiiiittttttttuuuuuuuuaaaaaaaatttttttteeeeeeeedddddddd iiiiiiiissssssss fffffffaaaaaaaaccccccccttttttttoooooooorrrrrrrryyyyyy Thhhhhhhheeeeeeee<br />

SSSSpppppppprrrrrrrriiiiiiiinnnnnnnnkkkklllllllleeeeeeeerrrrrrrr SSSSyyyyyysssssssstttttttteeeeeeeemmmmmmmm....<br />

aaaaaaaannnnnnnndddddddd Quuuuuuuuiiiiiiiicccccccckkkk aaaaaaaacccccccccccccccceeeeeeeessssssssssssssss oooooooonnnnnnnnttttttttoooooooo N33 FFFFrrrrrrrreeeeeeeeeeeeeeeewwwwwwaaaaaaaayyyyyy....<br />

rrrrrrrroooooooouuuuuuuutttttttteeeeeeeessssssss aaaaaaaarrrrrrrrtttttttteeeeeeeerrrrrrrriiiiiiiiaaaaaaaallllllll mmmmmmmmaaaaaaaaiiiiiiiinnnnnnnn<br />

fffffffaaaaaaaacccccttttttttoooooooorrrrrrryy ooooooooffffffffffffffeeeeeeeerrrrrrrsss tttttttthheeeeeeee fffffffoooooooolllllllllllllloooooooowwiiiiiiiinnnnng::<br />

SSSSeeeeeeeeccccccccuuuuuuuurrrrrrrriiiiiiiittttttttyyyyyy *uuuuuuuuaaaaaaaarrrrrrrrdddddddd Hoooooooouuuuuuuusssssssseeeeeeee<br />

TTTTTTThhiiiiiiiisss<br />

SSSSyyyyyysssssssstttttttteeeeeeeemmmmmmmm....<br />

Weeeeeeeellllllllllllllll fffffffeeeeeeeennnnnnnncccccccceeeeeeeedddddddd aaaaaaaannnnnnnndddddddd sssssssseeeeeeeeccccccccuuuuuuuurrrrrrrreeeeeeeedddddddd<br />

SSSSpppppppprrrrrrrriiiiiiiinnnnnnnnkkkklllllllleeeeeeeerrrrrrrr<br />

Ammmmmmmmpppppppplllllllleeeeeeee ppppppppaaaaaaaarrrrrrrrkkkkiiiiiiiinnnnnnnngggg<br />

DDoooooooooooooooorrrrrrrrssssssss<br />

Roooooooolllllllllllllllleeeeeeeerrrrrrrr 4<br />

33 pppppppphhhhhhhhaaaaaaaasssssssseeeeeeee ppppppppoooooooowwwwwweeeeeeeerrrrrrrr wwwwwwiiiiiiiitttttttthhhhhhhh 11000000 aaaaaaaammmmmmmmppppppppssssssss<br />

Hoooooooouuuuuuuusssssssseeeeeeee<br />

*uuuuuuuuaaaaaaaarrrrrrrrdddddddd SSSSeeeeeeeeccccccccuuuuuuuurrrrrrrriiiiiiiittttttttyyyyyy<br />

888 ttttttttooooooooiiiiiiiilllllllleeeeeeeettttttttssssssss,,,,,, 6 ooooooooffffffffffffffiiiiiiiicccccccceeeeeeeessssssss aaaaaaaannnnnnnndddddddd bbooooooooaaaaaaaarrrrrrrrddddddddrrrrrrrroooooooooooooooommmmmmmm,,,,,, rrrrrrrreeeeeeeecccccccceeeeeeeeppppppppttttttttiiiiiiiioooooooonnnnnnnn,,,,,, kkkkiiiiiiiittttttttcccccccchhhhhhhheeeeeeeennnnnnnn aaaaaaaannnnnnnndddddddd sssssssseeeeeeeeppppppppaaaaaaaarrrrrrrraaaaaaaatttttttteeeeeeee wwwwwwaaaaaaaarrrrrrrreeeeeeeehhhhhhhhoooooooouuuuuuuusssssssseeeeeeee aaaaaaaabblllllllluuuuuuuuttttttttiiiiiiiioooooooonnnnnnnnssssssss wwwwwwiiiiiiiitttttttthhhhhhhh<br />

sssssssseeeeeeeeccccccccuuuuuuuurrrrrrrreeeeeeeedddddddd<br />

aaaaaaaannnnnnnndddddddd fffffffeeeeeeeennnnnnnncccccccceeeeeeeedddddddd Weeeeeeeellllllllllllllll<br />

Ammmmmmmmpppppppplllllllleeeeeeee ppppppppaaaaaaaarrrrrrrrkkkkiiiiiiiinnnnnnnngggg<br />

pppppppphhhhhhhhaaaaaaaasssssssseeeeeeee ppppppppoooooooowwwwwweeeeeeeerrrrrrrr wwwwwwiiiiiiiitttttttthhhhhhhh 11000000 aaaaaaaammmmmmmmppppppppssssssss<br />

OOOccccccccccupaaaaaaaattttttttiiiiiiiioooooooonnnnn aaaaaaaavvaaaaaaaaiiiiiiiilllllllaaaaaaaabllllllleeeeeeee iiiiiiiimmmmmmmmeeeeeeeediiiiiiiiaaaaaaaatttttttteeeeeeeelllllllyy. PPPllllllleeeeeeeeaaaaaaaassseeeeeeee cccccoooooooonnnnnttttttttaaaaaaaaccccctttttttt MMMrrrrrrr TTTTTTTeeeeeeeefffffffoooooooo MMMaaaaaaaattttttttlllllllaaaaaaaa fffffffoooooooorrrrrrr mmmmoooooooorrrrrrreeeeeeee<br />

33<br />

ttttttttooooooooiiiiiiiilllllllleeeeeeeettttttttssssssss,,,,,, 6 ooooooooffffffffffffffiiiiiiiicccccccceeeeeeeessssssss aaaaaaaannnnnnnndddddddd bbooooooooaaaaaaaarrrrrrrrddddddddrrrrrrrroooooooooooooooommmmmmmm,,,,,, rrrrrrrreeeeeeeecccccccceeeeeeeeppppppppttttttttiiiiiiiioooooooonnnnnnnn,,,,,, kkkkiiiiiiiittttttttcccccccchhhhhhhheeeeeeeennnnnnnn aaaaaaaannnnnnnndddddddd sssssssseeeeeeeeppppppppaaaaaaaarrrrrrrraaaaaaaatttttttteeeeeeee wwwwwwaaaaaaaarrrrrrrreeeeeeeehhhhhhhhoooooooouuuuuuuusssssssseeeeeeee aaaaaaaabblllllllluuuuuuuuttttttttiiiiiiiioooooooonnnnnnnnssssssss wwwwwwiiiiiiiitttttttthhhhhhhh<br />

iiiiiiiinnnnnfffffffoooooooorrrrrrrmmmmaaaaaaaattttttttiiiiiiiioooooooonnnnn oooooooorrrrrrr ttttttttoooooooo vviiiiiiiieeeeeeeeww::<br />

888<br />

sssssssshhhhhhhhoooooooowwwwwweeeeeeeerrrrrrrr<br />

4 Roooooooolllllllllllllllleeeeeeeerrrrrrrr DDoooooooooooooooorrrrrrrrssssssss<br />

sssssssshhhhhhhhoooooooowwwwwweeeeeeeerrrrrrrr<br />

Teeeeeeeellllllll 000511 4000000000 888000000 Emmmmmmmmaaaaaaaaiiiiiiiillllllll tttttttteeeeeeeefffffffoooooooo#fffffffddddddddcccccccc....ccccccccoooooooo....]aaaaaaaa wwwwwwwwwwwwwwwwww....fffffffddddddddcccccccc....ccccccccoooooooo....]aaaaaaaa<br />

OOOccccccccccupaaaaaaaattttttttiiiiiiiioooooooonnnnn aaaaaaaavvaaaaaaaaiiiiiiiilllllllaaaaaaaabllllllleeeeeeee iiiiiiiimmmmmmmmeeeeeeeediiiiiiiiaaaaaaaatttttttteeeeeeeelllllllyy. PPPllllllleeeeeeeeaaaaaaaassseeeeeeee cccccoooooooonnnnnttttttttaaaaaaaaccccctttttttt MMMrrrrrrr TTTTTTTeeeeeeeefffffffoooooooo MMMaaaaaaaattttttttlllllllaaaaaaaa fffffffoooooooorrrrrrr mmmmoooooooorrrrrrreeeeeeee<br />

iiiiiiiinnnnnfffffffoooooooorrrrrrrmmmmaaaaaaaattttttttiiiiiiiioooooooonnnnn oooooooorrrrrrr ttttttttoooooooo vviiiiiiiieeeeeeeeww::<br />

Teeeeeeeellllllll 000511 4000000000 888000000 Emmmmmmmmaaaaaaaaiiiiiiiillllllll tttttttteeeeeeeefffffffoooooooo#fffffffddddddddcccccccc....ccccccccoooooooo....]aaaaaaaa wwwwwwwwwwwwwwwwww....fffffffddddddddcccccccc....ccccccccoooooooo....]aaaaaaaa<br />

FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND<br />

What can MEGA do for you?<br />

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

project appraisal and packaging, putting investors<br />

in touch with relevant agencies and government<br />

departments, alerting investors to investment<br />

incentives and setting up joint ventures where<br />

required. ■<br />

27<br />

MPUMALANGA FREE STATE BUSINESS BUSINESS <strong>2022</strong>/<strong>23</strong> 2021<br />

27 MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong>


SPECIAL FEATURE<br />

South African<br />

investment incentives<br />

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

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

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

Tourism is a popular investment sector. Thebe Tourism Group has invested Zindoga a luxury Trading hotel and on Projects.<br />

the<br />

Skukuza bridge. The Kruger Shalati Development is in the Kruger National Image: Credit: Park. Seda Roger Bosch/Brand SA<br />

South Africa wishes to diversify its economy<br />

and incentives are an important part<br />

of the strategy to attract investors to<br />

the country.<br />

The Department of Trade, Industry and Competition<br />

(the dtic) is the lead agency in the<br />

incentives programme, which aims to encourage<br />

local and foreign investment into targeted<br />

economic sectors, but the Industrial Development<br />

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

projects across South Africa.<br />

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

these incentives can broadly be categorised<br />

according to the stage of project development:<br />

• Conceptualisation of the project – including<br />

feasibility studies and research and develop-<br />

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

THRIP, Stp, etc)<br />

• Capital expenditure – involving the creation<br />

or expansion of the productive capacity of<br />

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

• Competitiveness enhancement – involving the<br />

introduction of efficiencies and whetting the<br />

competitive edge of established companies and<br />

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

CTCIP, etc)<br />

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

example the Aquaculture Development and<br />

Enhancement Programme (ADEP), Clothing<br />

and Textile Competitiveness Improvement<br />

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

Programme (TSP).<br />

MPUMALANGA MPUMALANGA BUSINESS BUSINESS2021/22 <strong>2022</strong>/<strong>23</strong> 2020/21<br />

28 14 10


Manufacturing<br />

Key components of the incentive programme are<br />

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

the Manufacturing Competitiveness Enhancement<br />

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

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

with almost 890 businesses receiving funding.<br />

A second phase of the programme was launched<br />

in 2016. The grants are not handouts as the<br />

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

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

sourced elsewhere.<br />

The Enterprise Investment Programme (EIP)<br />

makes targeted grants to stimulate and promote<br />

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

manufacturing and tourism sectors. Aimed at<br />

smaller companies, the maximum grant is R30-<br />

million. Specific tax deductions are permissible for<br />

larger companies investing in the manufacturing<br />

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

Other incentives<br />

Other incentives available to investors and existing<br />

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

• Technology and Human Resources for Industry<br />

Programme (THRIP)<br />

• Support Programme for Industrial Innovation (SPII)<br />

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

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

black-owned small enterprises<br />

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

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

costs of qualifying infrastructure<br />

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

90:10 matching cash grant for registered primary<br />

co-operatives<br />

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

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

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

and industry associations.<br />

Incentives for SMMEs<br />

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

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

creation and a number of incentives are design-<br />

Investments in infrastructure can attract rebates.<br />

The PG Bison Highveld are investing Industrial heavily Park in hosts expanding factories manufacturing<br />

different Gladtidings capacity. Credit: sectors. Interiors PG Bison CC. Image: Seda<br />

ed to promote the growth of these businesses.<br />

These include:<br />

• Small Medium Enterprise Development<br />

Programme (SMEDP)<br />

• Isivande Women’s Fund<br />

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

• Seda is the Small Enterprise Development Agency,<br />

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

Development that exists to promote SMMEs.<br />

Trade-related incentives<br />

The Export Marketing and Investment Assistance<br />

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

businesses that wish to market their businesses<br />

internationally to potential importers and<br />

investors. The scheme offers financial assistance<br />

to South Africans travelling or exhibiting abroad<br />

as well as for inbound potential buyers of South<br />

African goods. ■<br />

Online Resources<br />

Department of Trade, Industry and Competition:<br />

www.thedtic.gov.za<br />

Industrial Development Corporation:<br />

www.idc.co.za<br />

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

www.mega.gov.za<br />

Official South African government incentive<br />

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

29 11 15 MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong> 2020/21 2021/22


SECTOR NEWS<br />

A guide to the latest sector news.<br />

A regional overview of <strong>Mpumalanga</strong> 36<br />

A new agency has been created to smooth the way to a greener<br />

economy while Eskom makes land available for renewable projects.<br />

Special feature<br />

Educational opportunities are growing in<br />

<strong>Mpumalanga</strong> 40<br />

A new university and active technical and vocational colleges offer<br />

a wide range of qualifications.<br />

Sector news<br />

Oil and gas 46<br />

Air Liquide has increased its presence in the province.<br />

Transport and logistics 47<br />

Major roadworks are underway on strategic routes.<br />

Water 48<br />

The Loskop Bulk Water Project is to be accelerated.<br />

Manufacturing 49<br />

Enaex has teamed up with Sasol.<br />

Tourism 40<br />

A new European airline has added Kruger <strong>Mpumalanga</strong><br />

International Airport to its roster.<br />

Banking and financial services 51<br />

Mutual banks have been granted licences.<br />

ICT 52<br />

<strong>Mpumalanga</strong> has migrated to digital transmitters.<br />

Development finance and SMME support 54<br />

Trade and accommodation are popular sectors for startups.<br />

The University of <strong>Mpumalanga</strong> is growing fast and has the potential to help the regional economy grow by<br />

developing the skills base of the province and through targeted research. More than 40% of the academic staff<br />

complement of the university have doctoral degrees and research is encouraged with various internal awards.


INTERVIEW<br />

Mapping for safety and<br />

economic growth<br />

Dr Taufeeq Dhansay, Manager of the Minerals and Energy Geoscience Mapping<br />

Programme, explains how important geoscientific mapping can be for every<br />

aspect of society and gives a progress report on the Council for Geoscience’s<br />

carbon capture research.<br />

Dr Taufeeq Dhansay, Manager,<br />

Council for Geoscience<br />

BIOGRAPHY<br />

After earning a bachelor’s degree in<br />

Geosciences from the University of<br />

Cape Town, Taufeeq spent time at<br />

the International Institute for Applied<br />

Systems Analysis in Austria on his way<br />

to a Master’s, where his focus was<br />

geothermal energy. Another overseas<br />

experience was at the Structural<br />

Geology and Tectonics Research Group<br />

at Jena University in Germany. Nelson<br />

Mandela University awarded Taufeeq a<br />

PhD in Geosciences in 2017.<br />

In recent mapping, what have you found in <strong>Mpumalanga</strong>?<br />

<strong>Mpumalanga</strong> is very rich is terms of its geological variety. You<br />

find some of the earth’s oldest rocks that tell you about how<br />

the earth evolved and formed. Many international scientists<br />

visit the province to investigate these rocks, some that are<br />

more than four-billion years old. You also find some of the<br />

youngest rocks, so that variety from the oldest to youngest<br />

means that you have the entire history of the earth’s processes<br />

within the province. Some of these processes include how<br />

various minerals systems formed and evolved.<br />

This implies that it is a very rich province in terms of its natural<br />

resources. This includes, coal, gold, platinum and other types<br />

of critical minerals that are needed to sustain future energy like<br />

renewable resources and batteries.<br />

Now we are looking at integrated research. What happens as<br />

we shift away from coal in the province? Does it mean that the coal<br />

was the only drawcard of the province in terms of its economy? We<br />

are finding that the answer is no.<br />

Is coal the province’s only resource?<br />

There are other mineral resources that can also be looked at. That<br />

is a primary focus at the moment. More than two thirds of the<br />

province’s economy is now reliant on coal so this brings into<br />

context the idea of the just transition.<br />

We are asking what geoscience can tell us about a transition<br />

in terms of sustainability.<br />

Coexistence between mining and agriculture only<br />

happens if you understand the geology. We have to maintain<br />

the integrity of the groundwater in such a way that you can<br />

have mining and agriculture existing perfectly in harmony.<br />

We are finding that this is possible. Secondly, if you can<br />

identify an area where you might find a fossil fuel on the<br />

surface like coal, then you can dig a bit deeper and find<br />

gas. Deeper still and you might find gold. That means that<br />

in terms of the valuation and the investment potential, the<br />

land is looked at differently, both for the GDP and for the<br />

sustainability of life in the province.<br />

MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong><br />

32


The geological profile beneath Leandra, <strong>Mpumalanga</strong>.<br />

If you draw a cross-section through <strong>Mpumalanga</strong>,<br />

within the top four kilometres we have found a<br />

number of mineral resources and natural resources<br />

such as groundwater. Secondly, this is a good natural<br />

laboratory where you can study and look into the<br />

issue of sustainability.<br />

<strong>Mpumalanga</strong> is also the site of your Carbon<br />

Capture Utilisation Storage (CCUS) project. How<br />

is that progressing?<br />

<strong>Mpumalanga</strong> has the highest CO2 emissions<br />

in the country, which is no surprise because<br />

this is where we have the bulk of the coal-fired<br />

energy plants.<br />

We were challenged as scientists to look at the<br />

issue. We have to transition towards a low-carbon<br />

economy. This is known. If tomorrow you had to<br />

turn off coal what would happen to the 150 000<br />

people directly employed by the coal industry? The<br />

challenge is how to manage this transition in a way<br />

that actually enables sustainability. This is where the<br />

just transition comes in.<br />

Council for Geoscience scientists logging<br />

borehole core from <strong>Mpumalanga</strong>.<br />

The problem is CO2, carbon dioxide.<br />

Technologies exist where you can capture the carbon<br />

dioxide. You do not release the carbon dioxide into<br />

the atmosphere. Carbon dioxide has many uses.<br />

There are a number of things that you can do with<br />

the carbon dioxide. Many industrial processes require<br />

carbon dioxide: we drink sparkling water, we drink<br />

fizzy cooldrinks. Those products use carbon dioxide,<br />

for example.<br />

We had assumed that South Africa’s larger<br />

storage potential for carbon dioxide was generally<br />

near-shore, so we were looking at coastal provinces<br />

and offshore. That’s because the relevant rocks<br />

are very spongy, or absorbent of CO2. Now we<br />

have gone back to <strong>Mpumalanga</strong> and we have<br />

looked underground to find if there are additional<br />

geological areas where you can viably and safely<br />

store the CO2. This is what we have found. We<br />

have recently published a paper that shows these<br />

rocks could very likely support the injection and<br />

sequestration of CO2.<br />

Would the gas disappear or would it stay there<br />

forever?<br />

The idea would be that we take the gas and convert<br />

it into a solid. When CO2 reacts with certain metals,<br />

it forms a new mineral that just has the carbon<br />

incorporated. By the way, this actually happens<br />

in nature. We stop the gas from going into the<br />

atmosphere, and put it in the ground. It reacts<br />

naturally with other types of minerals which are very<br />

reactive and then it forms a new mineral and it stays<br />

in the ground forever. That is the principle.<br />

How far advanced are you along that road?<br />

The first step is that we have identified the<br />

potential reservoirs. Everything comes down to<br />

33 MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong>


INTERVIEW<br />

The hyperspectral core scanner in use at the Council for Geoscience National Core Library.<br />

making this financially viable so it is important to<br />

mention that these areas are below the current<br />

coal fields. You would not need to transport the<br />

CO2 very far to be stored.<br />

The type of storage is quite critical. At a depth<br />

of about 1km you find saline aquifers. That holds<br />

the type of water that you can’t necessarily use for<br />

anything. If you pump the CO2 into that salty water,<br />

the CO2 slowly reacts with the salt in the water but<br />

it can take up to thousands of years before the CO2<br />

becomes immobile. However, if you store the CO2 in<br />

the type of rocks that we are looking at, that reaction<br />

can theoretically happen much quicker. The sooner<br />

you convert the gaseous CO2 into a solid CO2, the<br />

sooner it is rendered immobile. Then it cannot move<br />

around and get back into the atmosphere.<br />

What effect would these processes have on the<br />

environment?<br />

A lot of our work so far has been specifically on<br />

environmental monitoring. This is a critical point.<br />

Before we actually develop this technology, we<br />

are doing a significant amount of environmental<br />

research to make sure that we can understand the<br />

baseline environmental conditions on the ground.<br />

We want to get a footprint of the area – the flora, the<br />

fauna, the chemistry of the groundwater, the amount of<br />

groundwater there is – all of that information.<br />

Are CGS staff excited about the CCUS project?<br />

Yes. It is a very big project. The principle is that it’s<br />

a challenge. There are a lot of different opinions<br />

around the transition. Some say we are not moving<br />

fast enough. Others say we are moving too fast.<br />

This is the nice thing about being pragmatic – a<br />

fundamental scientist if you like – being practical and<br />

finding solutions that will be sustainable.<br />

Our technology for renewables is still developing;<br />

we are not there entirely yet. It’s a big challenge and<br />

we need to buy ourselves some time. For the first<br />

time in a long time, the issue is being looked at<br />

directly by scientists, not necessarily only by policymakers.<br />

We have to guide them, we need to show<br />

what is possible, scientifically and empirically. How<br />

do you present empirical data that has passed peer<br />

review? That is the principle that we are focusing on.<br />

The carbon capture project is a large, integrated<br />

project. The project is funded both by the South<br />

African Government and the World Bank and the<br />

entire project budget is about $<strong>23</strong>-million.<br />

MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong><br />

34


INTERVIEW<br />

We have to be very unbiased in terms of the<br />

type of research we do. We will be doing full<br />

Environmental and Social Impact Assessments (ESIAs)<br />

before we do any type of sub-surface investigation.<br />

Our data portal is available to the public online.<br />

At the CGS you will find somebody who is<br />

working on hydrogeology, while another person is an<br />

environmental geologist, who might be interested in<br />

what this is going to do for the environment.<br />

What is the nature of new mapping CGS is doing?<br />

The first thing to touch on is that what we are doing is<br />

very much geoscientific mapping, not just geological.<br />

The second thing is that the scale is very important.<br />

We have generally mapped to a scale of 1:250 000,<br />

so that means if a hill is less than 250 metres, it will<br />

not appear on the geological map. We have shifted<br />

to the 1:50 000 scale. South Africa was only covered<br />

to 4% in terms of 1:50 000-scale maps. After about<br />

five years, we are now moving up to a figure of 12%.<br />

People often think that mapping is for minerals<br />

only. What other functions does it have?<br />

We have not exclusively focused on minerals. We’ve<br />

been able to identify certain zones and certain<br />

geological features where specific types of geohazards<br />

are concentrated. We are researching that<br />

further to mitigate possible natural disasters or loss<br />

of human life.<br />

The recent landslides in KwaZulu-Natal are an<br />

example. Many of the landslides are due to specific<br />

geomorphology and geological controls. If we<br />

don’t have the map resolution required, we can’t<br />

necessarily create the necessary mitigation scenarios.<br />

The same is true in Gauteng. A large portion of<br />

Gauteng is built on dolomite, the type of rock that<br />

forms sinkholes. The state spends a lot of money on<br />

infrastructural development and the risks can be<br />

mitigated if we understand the geology.<br />

There are many areas in the country where the<br />

dams are not efficient in supporting farming, so we<br />

look at groundwater resources. To understand those<br />

resources, you need to understand the geology of<br />

very specific structures, essentially pathways that<br />

allow the water to flow. The other aspect that is<br />

not necessarily being considered is the surface of<br />

the earth. This is where all of our food comes from.<br />

In areas where we want agricultural sustainability,<br />

you need to understand the geology of those<br />

areas. Similarly, you cannot build a large solar plant<br />

on soil that might sustain agriculture. We want<br />

to avoid sterilising the ground and ruling out the<br />

possibilities of groundwater or minerals.<br />

Tell us more about groundwater.<br />

We have been very successful in identifying<br />

significant groundwater resources, especially in the<br />

Karoo. We have been able to find, test and research<br />

many groundwater aquifers that can sustain<br />

groundwater resources in those areas.<br />

And what are the new maps showing in terms of<br />

mineral resources?<br />

We have focused on specific areas where we<br />

anticipate there to be some investment in<br />

exploration. Some of the mineral resources<br />

we are also looking at in terms of our<br />

developmental needs. We have to look for the<br />

type of minerals needed to sustain renewable<br />

energy, including batteries.<br />

A number of mineral resources can support<br />

battery development. Specifically, mobile devices<br />

have lithium ion batteries and some of our mapping<br />

has discovered that South Africa has quite a<br />

significant quantity of lithium that can possibly be<br />

extracted and researched.<br />

Where is lithium found?<br />

It is mostly in the Northern Cape and it is also found<br />

in KwaZulu-Natal. We also found lots of vanadium,<br />

which is a critical metal needed for larger-format<br />

batteries. So mapping goes far beyond mining, it’s<br />

vital to every aspect of the economy.<br />

Development hinges on earth science. We<br />

need to understand the earth. When we map, we<br />

try as hard as possible to look as deep as possible.<br />

Humans generally interact with the top five<br />

kilometres of the earth. We have gold mines that<br />

touch four kilometres. If you go to any province<br />

the geology you see just below your feet is not<br />

necessarily the geology that you will see at a<br />

kilometre below your feet. The Karoo might be dry<br />

but if you had to go down several hundred meters<br />

you would find significant natural resources to<br />

sustain socioeconomic development, such as<br />

water and minerals. ■<br />

35 MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong>


A REGIONAL OVERVIEW OF<br />

MPUMALANGA<br />

PROVINCE<br />

Repurposing facilities as part of the Just Transition. The workshops of Komati Power Station are to be turned into a factory<br />

for the manufacture of components for containerised mini-grids. Credit: Eskom<br />

A new agency has been created to smooth the way to a greener<br />

economy while Eskom has made land available for renewable projects.<br />

By John Young<br />

Opinion in government and civil<br />

society has been turning sharply<br />

against fossil fuels for several years.<br />

Successive international conferences<br />

have been setting global targets for weaning<br />

economies off coal and oil but Russia’s invasion<br />

of Ukraine has changed that. Rich countries are<br />

bringing coal plants back on stream and nuclear<br />

plans have been reactivated.<br />

With <strong>Mpumalanga</strong>’s economy being so strongly<br />

geared towards coal (in mining and for energy<br />

generation) this trend has significant implications<br />

for regional planning in the short term. More than<br />

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

in <strong>Mpumalanga</strong> and it is the third-largest coalproducing<br />

region in the world.<br />

However, the province is not sitting on its laurels.<br />

Nor is it imagining that it can stop the world. Rather,<br />

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

established the <strong>Mpumalanga</strong> Green Cluster Agency<br />

to bring together government, academia and<br />

industry to create the environment for businesses<br />

to develop in a green economy.<br />

The agency has already published a series of<br />

market intelligence opportunity briefs to highlight<br />

current opportunities for investors such as carbon<br />

capture, cleaner aviation fuel, energy storage and<br />

green hydrogen. The key working groups show<br />

the agency’s focus: sustainable agriculture, circular<br />

economy, energy and water. One of the tasks is<br />

to transition to a new economy in a way which<br />

creates jobs.<br />

MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong><br />

36


SPECIAL FEATURE<br />

The Cluster, an initiative of the <strong>Mpumalanga</strong><br />

Department of Economic Development and<br />

Tourism with the support of GreenCape and<br />

the Deutsche Gesellschaft für Internationale<br />

Zusammenarbeit (GIZ), has joined the International<br />

Cleantech Network, a group that has 15 000<br />

businesses affiliated to it across the globe.<br />

National utility Eskom is also moving into the<br />

new era, partly through a process whereby the<br />

entity will be broken into three more competitive<br />

units, but more immediately through the<br />

announcement in July <strong>2022</strong> of 18 winnings bids<br />

from independent power producers (IPPs) for<br />

renewable projects on Eskom land, 4 000ha of<br />

which the utility has made available for this first<br />

phase. Eskom owns 36 000ha in the province. A<br />

total of 1 800MW will become available to the<br />

grid and it will be cheaper to transmit because<br />

the solar or wind plants will be right next to the<br />

existing Eskom transmission lines.<br />

Ten coal plants are due to be closed by 2040,<br />

with four <strong>Mpumalanga</strong> plants (Hendrina, Grootvlei,<br />

Camden and Komati) first in line. Eskom is<br />

undertaking studies to assess the potential impact<br />

on local communities of these closures. Options to<br />

get these plants producing energy again include<br />

gas, biomass and hydrogen but it is possible they<br />

might be used for something quite different. Eskom<br />

wants to be a net-zero company by 2050.<br />

Another major player in the energy market<br />

in <strong>Mpumalanga</strong> (and the world), Sasol, has<br />

announced plans to start producing 1 200MW<br />

of renewable energy by 2030. An integrated<br />

oil, gas and chemicals company with more<br />

than 30 000 employees and operations in 31<br />

countries, Sasol runs several plants at Secunda.<br />

Products manufactured at the complex<br />

include synthetic fuel, petroleum, paraffin, jet<br />

fuel, creosote, bitumen, diesel and lubricants.<br />

The primary feedstock for synthetic-fuel<br />

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

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

Sasol regularly spends tens of millions on<br />

upgrades and improvements at the complex. The<br />

Sasol Synfuels refinery is the only commercial coalto-liquid<br />

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

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

National government’s Renewable Energy<br />

Independent Power Producer Procurement<br />

Programme (REIPPPP) has seen the investment into<br />

this totally new sector of more than R200-billion<br />

since 2012 and South Africa is now home to 112 IPPs,<br />

whereas just 12 years ago there were fewer than 40<br />

in Sub-Saharan Africa.<br />

The relaxation by national government of the<br />

rules regarding setting up a power plant of 100MW<br />

or less is well suited to the requirements of big<br />

timber-processing companies such as Sappi and<br />

PG Bison and all the large mining concerns that are<br />

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

Investment options<br />

Several infrastructure investment projects in<br />

the tourism sector have been put forward by<br />

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

(MEGA). There is a special focus on BRICS<br />

countries and the province was glad to welcome<br />

the announcement of a new flight into Kruger<br />

Timber firm and board manufacturer PG Bison has<br />

been investing heavily in its <strong>Mpumalanga</strong> assets.<br />

Credit: PG Bison<br />

37 MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong>


SPECIAL FEATURE<br />

<strong>Mpumalanga</strong> International Airport in <strong>2022</strong> by<br />

the tourist division of Lufthansa, Eurowings<br />

Discover. The TRILAND partnership with Eswatini<br />

and Mozambique is another avenue, as is the<br />

collaboration with KwaZulu-Natal, Eswatini,<br />

Mozambique and the Seychelles. The latter<br />

project is called east3ROUTE Tourism Initiative<br />

and proclaims “Experience, Adventure, Scenery<br />

and Trade” between the participating provinces<br />

and countries.<br />

MEGA is an equity investor in a number of<br />

<strong>Mpumalanga</strong> concerns, including Afrimat, Highveld<br />

Fruit Packers, Kangwane Anthracite, Loopspruit<br />

Winery and Tekwane Lemon Farm.<br />

In the Nkangala District Municipality, a publicprivate<br />

partnership is due to deliver a hotel and<br />

conference centre in the town of Middelburg in the<br />

Steve Tshwete Local Municipality.<br />

It may seem ironic that R350-million is to be<br />

spent on a Radisson-branded hotel in the aftermath<br />

of Covid-19 but conferences and tourism will return.<br />

Elsewhere, mining and timber companies are<br />

making large investments in increased production<br />

or in extending the life of mines.<br />

A major concern for provincial planners<br />

is to diversify the economy and to grow the<br />

manufacturing sector. The <strong>Mpumalanga</strong> Economic<br />

Growth and Development Path (MEGDP)<br />

identifies beneficiation, agro-processing and the<br />

development of value chains as priorities. Various<br />

industrial parks are planned which will focus on<br />

agriculture and forestry, mining and metals and<br />

petrochemicals. An International Fresh Produce<br />

Market in Nelspruit and the planned Nkomazi SEZ<br />

(Special Economic Zone) are other priorities.<br />

Steel and associated manufacturing remains<br />

one of the province’s strong suits and <strong>Mpumalanga</strong><br />

has rich and varied mineral resources and fertile<br />

soil that support diverse farming operations, agroprocessing<br />

and forestry. The province also hosts<br />

large companies in the manufacturing sector such<br />

as Middelburg Ferrochrome and the Manganese<br />

Metal Company.<br />

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

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

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

and Mondi), with PG Bison set to start producing<br />

more than 1000m³/d per annum at its Mkhondo<br />

particleboard plant after two investment injections<br />

of R600-million (on a press and forming line) and<br />

R560-million (on a front-end dryer).<br />

York Timbers is another forestry company and<br />

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

TSB Sugar) along with fertiliser facilities and textile<br />

manufacturing concerns are all contributors to the<br />

provincial economy.<br />

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

platinum-rich Bushveld Igneous Complex runs<br />

south towards the towns of Lydenburg and<br />

Machadodorp. Deposits of chromite, magnetite and<br />

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

complex in Witbank-Middelburg and Lydenburg.<br />

The town of eMalahleni is the centre of the<br />

coal industry. Other minerals found in the province<br />

include gold, platinum-group minerals, chromite,<br />

zinc, cobalt, copper, iron and manganese.<br />

Middelburg is home to Columbus Stainless,<br />

South Africa’s only producer of stainless steel, and<br />

several big engineering works. It is about 130km<br />

from Pretoria and less than three hours’ drive from<br />

the Malelane Gate of the Kruger National Park.<br />

Visits to game reserves and nature reserves<br />

have shown signs of recovery from the lockdowns<br />

associated with Covid-19 but for a province where<br />

7% of GDP is derived from tourism, the recovery<br />

can’t come soon enough.<br />

The Kruger National Park remains the province’s<br />

most visited asset but the decision by UNESCO to<br />

afford World Heritage Site status to the Makhonjwa<br />

Mountains near Barberton will boost geological<br />

tourism to the province and supports the efforts of<br />

the province to diversify its offerings. Major projects<br />

to improve tourist experiences are underway at<br />

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

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

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

for Three Rondavels.<br />

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

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

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

basis of the UNESCO ruling, UMP has a new offering<br />

in geology as part of a BSc degree. ■<br />

MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong><br />

38


Boost for Limpopo and<br />

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

SPECIAL FEATURE<br />

General Manager Kagiso Moncho shares good news for the region as MTN SA<br />

invests R820-million into network modernisation and infrastructure.<br />

Kagiso Moncho, MTN General Manager,<br />

Northern Region<br />

MTN SA is ramping up investment to<br />

modernise existing and deploy new<br />

network infrastructure across Limpopo<br />

and <strong>Mpumalanga</strong>. The R820-million<br />

investment will go toward MTN’s “Modernisation of<br />

Network South Africa project” (MONZA) as well as<br />

expanded rural reach, 5G expansion and restoration<br />

of vandalised network infrastructure.<br />

“Our aim is to significantly enhance access<br />

and open the door to new digital opportunities<br />

for many more people across the province. Our<br />

investment is specifically targeted at increasing<br />

network coverage, improving throughputs, and<br />

connecting the previously unconnected,” says<br />

Kagiso Moncho, General Manager: Northern Region<br />

from MTN South Africa.<br />

The MONZA rollout in the two provinces will<br />

include modernisation and new sites. The extension<br />

of MTN’s 5G connectivity includes rolling out new<br />

sites in <strong>2022</strong>.<br />

Another major highlight will be rural<br />

connectivity to help close the digital access gaps<br />

in South Africa. More than 700-million people in<br />

Sub-Saharan Africa remain offline and at risk of<br />

exclusion from the emerging digital economy.<br />

“We have extensive plans to drive growth and<br />

connectivity solutions into under-serviced areas.<br />

With unemployment in South Africa reaching new<br />

peaks, it is critical to focus on harnessing digital<br />

solutions to drive the recovery, especially in those<br />

areas that were hardest hit,” Moncho adds.<br />

“An important point is that the pandemic,<br />

loadshedding and the prevailing economic<br />

environment have underscored the value of<br />

mobile networks, which remain the only form<br />

of Internet access for many. MTN’s investments<br />

are directly targeted at accelerating recovery<br />

and significantly enhancing growth and job<br />

opportunities,” says Moncho.<br />

One stumbling block to growth remains<br />

the activity of criminals and syndicates. Due to<br />

high incidences of vandalism and battery theft,<br />

MTN has partnered with Bidvest Security and<br />

set aside an additional R101-million in <strong>2022</strong> to<br />

combat this criminality.<br />

“Ensuring users receive quality and network<br />

stability is our number-one aim, but the fight<br />

against battery theft and vandalism remains a<br />

major hindrance. I am pleased that our ongoing<br />

efforts to make a dent in these criminal acts are<br />

seeing change, but all South Africans are requested<br />

to remain vigilant and report any suspicious activity,”<br />

says Moncho.<br />

“We have big targets this year in Limpopo<br />

and <strong>Mpumalanga</strong>. Every completed project, or<br />

success achieved against battery theft, ensures<br />

our clients can take that one step forward and<br />

benefit from the magic of the modern, connected<br />

world,” concludes Moncho. ■<br />

39<br />

MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong>


SPECIAL FEATURE<br />

Educational opportunities are<br />

growing in <strong>Mpumalanga</strong><br />

A new university and active technical and vocational colleges<br />

offer a wide range of qualifications.<br />

The northern edge of the city of Mbombela has a striking<br />

new architectural addition – the University of <strong>Mpumalanga</strong>.<br />

On a hill north of the Crocodile River a complex of<br />

department headquarters and residence buildings is taking<br />

shape as home to the province’s first university.<br />

By building on existing institutions such as teacher training<br />

colleges, the university has progressively offered more courses<br />

and taken on more students over the last few years. The official<br />

launch was in October 2013 with the first cohort of 169 students<br />

registered in just three programmes in 2014. By 2020, the university<br />

was offering 26 qualifications to 4 200 students.<br />

The university currently offers 48 programmes in three faculties:<br />

Education; Agriculture and Natural Sciences; and Economics and <strong>Business</strong><br />

Sciences. There are plans to add new programmes at both undergraduate<br />

and postgraduate levels and to establish the faculty of Humanities<br />

and Social Sciences and the School of Law. By 2024, the plan is to offer<br />

approximately 70 qualifications to over 8 000 students. That is the year in<br />

which the university’s first doctoral graduates will be capped. Research<br />

relevant to the needs of the province can now be done at local level. Issues<br />

such as acid mine water leaking from abandoned mining sites and new<br />

applications for products in the timber industry are among the kinds of<br />

research that will boost economic<br />

productivity in <strong>Mpumalanga</strong>, and<br />

lead to better socio-economic<br />

conditions for citizens.<br />

As with the country’s other<br />

new university, in Kimberley in the<br />

Northern Cape, the establishment<br />

of a new institution opened the<br />

door for generating new buildings<br />

of outstanding quality by means of<br />

a competitive bidding process. The<br />

first round of winners comprised<br />

four architectural companies,<br />

namely Cohen and Garson, Conco<br />

Bryan Architects, TC Design Group<br />

(Pty) Ltd and Gapp Architects and<br />

Urban Designers (Pty) Ltd. They<br />

were chosen from an early field of<br />

147 companies.<br />

University of <strong>Mpumalanga</strong><br />

students have distinguished<br />

MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong><br />

40


SPECIAL FEATURE<br />

themselves in competitions run by ENACTUS, an international<br />

organisation that works with leaders in business and higher<br />

education to mobilise university students to make a difference in<br />

their communities while developing the skills to become socially<br />

responsible business leaders. <strong>Mpumalanga</strong> students have won<br />

first place in categories such as LED Challenge, Triple Bottom<br />

Sustainability and Community Development. Among the anchor<br />

sponsors are Barloworld, Ford, Harmony Gold, MTN and Nedbank.<br />

Training institutions<br />

<strong>Mpumalanga</strong> has three Technical and Vocational Education and<br />

Training (TVET) colleges, with an enrolment of over 36 000. UNISA,<br />

the Tshwane University of Technology and the Vaal University of<br />

Technology also have satellite campuses in the province.<br />

The TVET colleges are located in each of the province’s three<br />

District Municipalities: Gert Sibande (four campuses and a skills<br />

academy), Nkangala and Ehlanzeni, which has six campuses, a skills<br />

centre and a satellite campus.<br />

Ehlanzeni TVET College offers 10 National Certificate<br />

(Vocational) programmes including ICT, Finance, Economics and<br />

Accounting, Engineering and Related Design and Tourism. There are<br />

also a number of shorter skills courses on offer: automotive repairs<br />

and maintenance, computer practice, entrepreneurship, municipal<br />

administration and communications management.<br />

Nkangala TVET College offers Civil Engineering and Building<br />

Construction at its CN Mahlangu campus and Electrical Infrastructure<br />

Construction at three of its five campuses, among its seven NCV<br />

academic programmes.<br />

The <strong>Mpumalanga</strong> Regional Training Trust (MRTT) is a Section 21<br />

company active in skills training. It has several sites in the province,<br />

including a Hospitality and Tourism Academy at Karino, just outside<br />

Nelspruit. The corporate head office is in eMalahleni and other<br />

MRTT training centres are at Bronkhorstspruit (Ekandustria Training<br />

Centre) and White River (Kabokweni Training Centre).<br />

The Fluor Training Centre in Secunda offers training in fields<br />

such as fitting, welding, pipefitting and other building trades.<br />

Over the years, more than 30 000 people have studied at the<br />

centre, which is accredited with the Metal and Engineering<br />

Industries Training Board, the Construction Education & Training<br />

Authority (CETA), and the Chemical Industries Education and<br />

Training Authority (CHIETA).<br />

ONLINE<br />

The<br />

RESOURCES<br />

Southern African Wildlife College, offering diploma and<br />

short courses in conservation, is a joint World Wide Fund for Nature<br />

South Africa (WWF-SA) and Peace Parks Foundation initiative.<br />

SAWC claims more than 20 000 alumni active in conservation in<br />

56 countries worldwide. The college’s training departments are<br />

not predetermined, but rather chosen after consultation with<br />

conservation organisations<br />

in the SADC region about<br />

what is most relevant. Courses<br />

routinely include modules<br />

such as Natural Resource<br />

Management. The college is<br />

located near the Orpen Gate<br />

on the edge of the Kruger<br />

National Park.<br />

Sasol is a major supporter<br />

of research and training in<br />

the province. A group of<br />

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

had the opportunity to train as<br />

master teachers for Robotics<br />

and Coding, courtesy of Sasol.<br />

The Sasol Foundation has also<br />

donated multimedia resources<br />

for teachers and pupils in Science,<br />

Technology, Engineering and<br />

Mathematics (STEM). Awards for<br />

students who achieve in science<br />

and mathematics are regularly<br />

given and Sasol supports<br />

many students on bursaries at<br />

universities and colleges. The<br />

Sasol SGS Global Learning SHE<br />

Academy is located in Evander. ■<br />

The Southern African Wildlife<br />

College has a dog unit known as K9.<br />

Credit: SAWC<br />

41<br />

MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong>


FOCUS<br />

University of <strong>Mpumalanga</strong><br />

Creating opportunities for sustainable<br />

development through innovation.<br />

The University of <strong>Mpumalanga</strong> (UMP) was<br />

established in 2013 and it enrolled the<br />

first cohort of 169 students in February<br />

2014. Thereafter, the University has been<br />

experiencing rapid and gratifying growth. The<br />

University now offers 48 qualifications and has a<br />

total of 7 100 students enrolled in <strong>2022</strong>. UMP is a<br />

comprehensive University which offers variety of<br />

undergraduate and postgraduate studies in the fields<br />

of Agriculture, Nature Conservation, Hospitality and<br />

Tourism Management, Information Communication<br />

Technology, Development Studies, Early Childhood<br />

Education, Arts, Administration and Economics.<br />

Among some of the key highlights that UMP<br />

has been able to succeed with, in line with our<br />

strategic key focus areas, includes broadening<br />

access to higher education and promoting equity<br />

of access and with a fair chance of success. The<br />

student population at UMP is predominately from<br />

previously disadvantaged communities and female.<br />

Of all the students enrolled this year 62.8% are<br />

female and only 37.8% are male.<br />

Teaching and Learning: taking centre stage to<br />

advance the academic project<br />

Teaching and Learning at UMP focusses on the<br />

development of our students as independent and<br />

critical thinkers with a passion for knowledge and<br />

its application. UMP has been able to attract and<br />

retain established academics in various disciplines.<br />

Currently 47.1% of UMP academic staff have<br />

doctoral degrees. As part of student support, First<br />

Time Entering students (FTEN) are supported<br />

in the transition from school to university by a<br />

well-developed Orientation Week and a First Year<br />

Experience (FYE). Ongoing support is provided<br />

by peer mentors and tutors. As a result of these<br />

interventions, student success is generally high with<br />

more 85% success rate annually.<br />

The University seeks to produce quality<br />

graduates who are: resourceful, responsive and<br />

responsible; innovative and entrepreneurial; confident<br />

and effective communicators; ethically and sociallyaware<br />

change agents; adaptable and have sound<br />

discipline knowledge.<br />

Annually UMP holds a graduation ceremony to<br />

celebrate the achievements of students who have<br />

completed their qualifications during the past academic<br />

year. This year, a total of 1 112 students were awarded<br />

qualifications during the seventh graduation ceremony<br />

of the University. Some of the notable achievements for<br />

this year’s graduation included:<br />

• Tree-planting ceremony of the umkhanyakude indigenous<br />

tree by the Chancellor of the University of<br />

<strong>Mpumalanga</strong>, Justice Mandisa Maya<br />

• 25 different qualifications will be awarded during<br />

the graduation ceremonies and among the 25<br />

qualifications, six of them are new<br />

• A total of 15 Master’s degree to be awarded<br />

• 40 students will be awarded their qualifications with<br />

a Cum Laude (distinction)<br />

• A total of 33 recipients of the Vice-Chancellor’s<br />

Scholarship will be graduating<br />

• 13 students who are recipients of the UMP Excellence<br />

Awards will be graduating<br />

• Graduating students are from five different countries,<br />

including South Africa<br />

• Member of Parliament, Mr Timothy Mashele (MP)<br />

will be graduating with a Bachelor of Development<br />

Studies Honours<br />

Research and Innovation: generating new<br />

knowledge in support of social and economic<br />

development<br />

As a new University, UMP has built its research project<br />

from a zero base and has made good progress. Active<br />

researchers are supported through the Research Office<br />

and staff without a PhD are supported to complete<br />

their doctorate. The University has identified seven<br />

research focus areas and has set aside funds and<br />

supported the appointment of Postdoctoral Fellows<br />

to promote these. Our research focus areas are Ethics<br />

MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong><br />

42


Prof Thoko Mayekiso, Vice-Chancellor of the University of <strong>Mpumalanga</strong> with recipients of the Vice-Chancellor Scholarship<br />

and Governance, Information Communication and<br />

Technology for Development, Youth Development<br />

and Empowerment, Environmental and Socioeconomic<br />

Sustainability, Post-harvest Management<br />

and Food Security, Biodiversity Conservation and<br />

Development, Early Childhood Development and<br />

Education and Training.<br />

The research focus areas are linked to one<br />

or more Millennium Development Goal and are<br />

of relevance to the province, the nation and the<br />

continent. The University has eight NRF-rated<br />

researchers with two C1, three C2, two C3 and<br />

one Y2 categories. The Vice-Chancellor of the<br />

University, Prof Thoko Mayekiso, is leading by<br />

example as she is a C3-rated researcher.<br />

Engagement and Partnerships: drivers and<br />

enablers of achieving our vision<br />

As an engaged institution, UMP places great value<br />

on partnerships and networks as both drivers and<br />

enablers in achieving our vision. The University<br />

of <strong>Mpumalanga</strong> has successfully established<br />

partnerships with reputable institutions and<br />

government entities. Among some of the notable<br />

partnerships are:<br />

• Partnerships with South African National<br />

Parks and hotel chains for Work Integrated<br />

Learning of students studying the Diploma in<br />

Hospitality Management and the Diploma in<br />

Nature Conservation.<br />

• The University of <strong>Mpumalanga</strong> has signed an<br />

MoU with Ehlanzeni District Municipality to<br />

enable work-integrated learning opportunities<br />

while promoting research and strengthening<br />

service delivery within the municipality.<br />

State-of-the-art Infrastructure: conducive<br />

environment for the academic project to thrive<br />

The University has been able to build state-ofthe-art<br />

infrastructure which includes lecture<br />

venues, laboratories and computer labs to create a<br />

conducive environment for the academic project<br />

to thrive.<br />

Earlier this year, UMP launched a four-star<br />

Tfokomala Hotel and Conference Centre. Located<br />

in the Mbombela Campus of UMP, the hotel<br />

is wholly-owned by the University, envisioned<br />

as a “hotel with a purpose”, for teaching and<br />

learning. The hotel focuses on “Learning by Doing”<br />

for students to gain hands-on experience in<br />

operational roles in the restaurant, kitchen and all<br />

other hotel divisions. Students from the University’s<br />

School of Hospitality and Tourism Management<br />

are placed to work at the hotel as part of the<br />

work-integrated learning (WIL) programme and<br />

practical orientation. ■<br />

43 MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong>


FOCUS<br />

Why MTN <strong>Business</strong><br />

Seamless solutions for business.<br />

mmunity to report The Covid-19 any vandalism pandemic has incidents forced<br />

at they might organisations witness of all to sizes the to kick nearest their<br />

digital transformation strategies into<br />

PS branches. Our efforts are directed<br />

high gear. Service providers with the<br />

wards building capabilities and to offer maintaining a full digital platform a resilient have<br />

frastructure been increasingly amidst in adversities. demand. We remain<br />

MTN’s strategy is anchored in building the<br />

mmitted<br />

largest<br />

to<br />

and<br />

proving<br />

most valuable<br />

a modern<br />

platform business,<br />

connected<br />

with<br />

ital life a for clear all,” focus says on Africa. Moncho.<br />

MTN <strong>Business</strong> has partnered MTN’s with leading work<br />

global service providers like BT, Securicom, Cisco,<br />

in these provinces<br />

also includes<br />

CONTACT<br />

programmes to help<br />

<strong>Mpumalanga</strong>: Maria Lee 083 the 211 most 0808 vulnerable<br />

Limpopo: Moshe Molepo 083 211 0787<br />

particularly in the<br />

deep rural villages.<br />

Key stakeholder<br />

MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong><br />

partnerships with<br />

government and<br />

nicipalities will see ongoing support for learners<br />

faster download speeds as well as uninte<br />

streaming, surfing and the best in voice<br />

when compared to other mobile operato<br />

“We are working tirelessly to ens<br />

customers enjoy their experience on ou<br />

network, and our commitment to serv<br />

customers with distinction will always b<br />

core of what we do,” concludes Moncho.<br />

MTN strives to ensure customers<br />

connected to the digital world and also h<br />

delight of sharing moments and memor<br />

friends and family through their social platfo<br />

Microsoft and others to accelerate growth and<br />

provide seamless solutions for your business.<br />

MTN’s transformation journey from a core mobile<br />

service provider, telco, to a techco is embedded<br />

in its ICT solutions: managed networks, unified<br />

communication, IoT, security, data centre and<br />

hosting and mobile solutions, throughout the 19<br />

markets it operates in.<br />

MTN <strong>Business</strong> has tailored solutions for any size<br />

business, small, medium, large, multinational and<br />

public and state-owned enterprises. ■<br />

About the MTN Group<br />

Launched in 1994, the MTN Group is a


Digital transformation is<br />

not an option, it’s a necessity.<br />

MTN <strong>Business</strong> ICT and Mobile solutions<br />

Internet<br />

of Things<br />

Data Centre<br />

and Hosting<br />

Security<br />

Mobile<br />

Solutions<br />

Unified<br />

Communication<br />

Managed<br />

Networks<br />

Doing knows that trust is built on delivery. Let MTN <strong>Business</strong> take<br />

your enterprise on the journey of digital transformation.<br />

So. What are we doing today?<br />

Dial 083 1<strong>23</strong> 1800 Visit mtnbusiness.co.za Email getconnected@mtn.com


SECTOR NEWS<br />

Oil and gas<br />

Air Liquide has increased its presence in the province.<br />

SECTOR INSIGHT<br />

Sasol continues to reduce<br />

debt by selling off units.<br />

Air Liquide Large Industries South Africa Air is to start<br />

operating 16 air separation units (ASUs) as a result of an<br />

R8-billion purchase from Sasol. The company’s fleet now<br />

comprises 17 ASUs in Secunda, with the 16 units having<br />

the capacity to produce 42 000 tons per day of oxygen.<br />

Sasol announced in 2021 that it was to sell a 30% in the Romco<br />

natural gas pipeline that links Mozambique and South Africa. As part<br />

of a global sell-off of assets to reduce debt, Sasol expects to earn more<br />

than R5-billion from the transaction. The company will continue to be<br />

the pipeline’s operator and maintains a 20% stake in the venture.<br />

The Romco pipeline could carry far more gas in the future as<br />

there have been big finds of new gas off the coast off Mozambique<br />

which could be shipped as liquefied natural gas (LNG) to Maputo and<br />

continue from there to the Sasol plant at Secunda.<br />

The province is already equipped with energy and fuel<br />

infrastructure and expertise.<br />

The Liquefied Natural Gas Independent Power Producer<br />

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

programme of the National Department of Mineral Resources and<br />

Energy which encourages private investment in renewable energy,<br />

namely the Renewable Energy Independent Power Producer<br />

Procurement Programme (REIPPPP). The total allocated to gas-topower<br />

in the national power plan is 3 726MW, of which 3 000MW is<br />

for LNG.<br />

Three natural gas exploration permits have been awarded to<br />

Tosaco Energy for the sandstone-rich area between Amersfoort<br />

ONLINE RESOURCES<br />

Independent Power Producer Programme: www.ipp-projects.co.za<br />

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

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

and Balfour in the western part<br />

of the province by Petroleum<br />

Agency South Africa (PASA).<br />

PASA regulates exploration and<br />

production activities, and acts<br />

as the custodian of the national<br />

petroleum exploration and<br />

production database.<br />

Tosaco Holdings has a 25%<br />

stake in Total SA. Two methanegas<br />

exploration rights have been<br />

granted to Highland Exploration in<br />

the Evander area.<br />

The promoters of the<br />

Nkomazi Special Economic<br />

Zone believe that the fact that<br />

the pipeline passes through the<br />

SEZ is a big selling point. An<br />

alternative would be for the LNG<br />

to be shipped to Richards Bay<br />

before being piped north.<br />

Many of the big mining and<br />

manufacturing concerns in<br />

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

contracts for the supply of gas<br />

with big gas companies. Afrox<br />

and Air Liquide are two of the<br />

biggest, with the latter having<br />

3 500 national customers,<br />

including Sappi and Sasol.<br />

International chemicals and<br />

energy company Sasol has several<br />

large plants in <strong>Mpumalanga</strong>. Sasol<br />

Gas is one of the four operations<br />

at Secunda, supplying natural gas<br />

to Sasol Synfuels and buying Sasol<br />

Synfuels’ methane-rich pipeline gas<br />

to sell to customers in <strong>Mpumalanga</strong><br />

and KwaZulu-Natal. ■<br />

MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong><br />

46


Transport and logistics<br />

Major roadworks are underway on strategic routes.<br />

SECTOR NEWS<br />

SECTOR INSIGHT<br />

Mechanised potholepatching<br />

vehicles are to<br />

be deployed.<br />

Credit: Motheo Group<br />

The South African National Roads Agency (Sanral) will<br />

spend R9-billion on road infrastructure in <strong>Mpumalanga</strong>.<br />

The agency, which is responsible for national roads, is<br />

concentrating on the upgrading of the N2 between<br />

Ermelo in <strong>Mpumalanga</strong> and KwaZulu-Natal and the R40<br />

between Hazyview and Bushbuckridge.<br />

Trans Africa Concessions (TRAC), the toll road company, will<br />

spend R248-million on expanding capacity on the bridge over the<br />

Crocodile River and creating an upgraded roads junction at the<br />

Montrose interchange. Two new bridges will be built to provide<br />

access over the Elands Valley section of the road.<br />

The Motheo Group, in a joint venture with WBHO, has been<br />

working on the N4 (pictured) for TRAC, which has also parcelled<br />

out some work to Raubex Construction.<br />

Heavy rains and heavy traffic have put a strain on the roads<br />

feeding coal mines and power stations. The Provincial Government<br />

of <strong>Mpumalanga</strong> has purchased mechanised pothole-patching<br />

vehicles in response to this problem. It is expected that many jobs<br />

will also be created in this attempt to improve the strategic road<br />

infrastructure network, which includes tourism routes.<br />

Sanral has announced a three-year project which will provide<br />

work for small contractors in and around the City of Mbombela.<br />

More than R26-million has been allocated to subcontracting which<br />

will cover things like litter and minor works, minor maintenance,<br />

vegetation and bush clearing. There is more freight rail traffic in<br />

<strong>Mpumalanga</strong> than in any other province. This is principally because<br />

of the transport of coal, but there are also large volumes of chrome,<br />

ONLINE RESOURCES<br />

Kruger <strong>Mpumalanga</strong> International Airport: www.kmiairport.co.za<br />

Maputo Corridor Logistics Initiative: www.mcli.co.za<br />

Railroad Association of South Africa: www.rra.co.za<br />

South African National Roads Agency Ltd: www.sanral.co.za<br />

ferrochrome, forestry products,<br />

chemicals, liquid fuels and<br />

general freight.<br />

The Balfour North to<br />

Volksrust section of the Gauteng<br />

to Durban mainline carries the<br />

largest volumes, most of which<br />

is long-haul freight passing<br />

through the province. Despite<br />

these high rail volumes, a huge<br />

amount of mineral product is<br />

transported by truck around<br />

and out of the province. This<br />

puts immense pressure on<br />

<strong>Mpumalanga</strong>’s roads network,<br />

particularly in the Gert Sibande<br />

District and the Nkangala District.<br />

The statistics relating to<br />

coal haulage in <strong>Mpumalanga</strong><br />

are stupendous. In one 12-<br />

hour period, 34 198 tons of<br />

general freight were recorded<br />

for the section of the N4<br />

highway between Nelspruit<br />

and Komatipoort.<br />

Mactransco’s website states<br />

that its trucks serving Tshikondeni<br />

Coal Mine travel 3.7-million<br />

kilometres per year, working all day<br />

for six days a week. The fleet of ABF<br />

Legend Logistics, a Super Group<br />

company, contains more than 200<br />

super-link coal haulage trucks while<br />

another company in the group,<br />

SG Coal, claims to have one of the<br />

biggest fleets of coal haulage trucks<br />

in Africa. Coal Tipper Resources<br />

operates out of Bethal. ■<br />

47 MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong>


SECTOR NEWS<br />

Water<br />

The Loskop Bulk Water Project is to be accelerated.<br />

Loskop Dam. Credit: Middelburginfo<br />

More than 13 000 households in two water-scarce local<br />

municipalities in <strong>Mpumalanga</strong> will soon start receiving<br />

improved water services.<br />

The provincial government is working together with<br />

the National Department of Water and Sanitation (DWS) to accelerate<br />

the implementation of the Loskop Bulk Water Project. Work to be<br />

undertaken includes construction of abstraction works at the Loskop<br />

Dam, a treatment module, a 40km bulk pipeline, four booster pump<br />

stations and a storage reservoir.<br />

Among other projects that were undertaken in 2021, water supply<br />

and sanitation at 176 schools was upgraded. The installation of bulk<br />

services at Siyathuthuka Ext 12 has been prioritised.<br />

The Regional Bulk Infrastructure Grant is being used to fix the<br />

Embalenhle Bulk Sewer Line. The grant will be used to supply the<br />

treatment plant at Weltevreden and to accelerate the link from the<br />

Loskop Dam to the communities living in the Thembisile Hani Local<br />

Municipality.<br />

Progress towards the selection of a site for a City of Mbombela<br />

Dam is being made. In response to the Covid-19 crisis, the National<br />

Department of Water and Sanitation delivered 500 water tanks and 56<br />

water trucks to several <strong>Mpumalanga</strong> municipalities.<br />

The Operations and Maintenance Division of Nafasi Water is<br />

responsible for large water treatments plants at Middelburg and<br />

eMalahleni. Nafasi is a rebranding of Aveng Water which was<br />

purchased by Infinity Partners for R95-million in 2019.<br />

The Middelburg Water Reclamation Plant (MWRP) produces no<br />

brine and avoids energy-intensive methods, a world-first for a mine<br />

water treatment plant. Phase 2 of the eMalahleni project produces<br />

ONLINE RESOURCES<br />

Inkomati-Usuthu Catchment Management Agency: www.iucma.co.za<br />

Komati Basin Water Authority: www.kobwa.co.za<br />

National Department of Water and Sanitation: www.dwa.gov.za<br />

SECTOR INSIGHT<br />

Water supply and sanitation<br />

at 176 schools was upgraded<br />

in 2021.<br />

drinking water after treating mine<br />

water from one of the collieries of<br />

Anglo American Thermal Coal.<br />

Acting on a disturbing report<br />

published by the Centre for<br />

Environmental Rights on the way<br />

some mining companies are using<br />

water, a provincial Environmental<br />

Management Committee has<br />

been appointed to conduct<br />

environmental impact analysis and<br />

assess climate change threats.<br />

NuWater was contracted to<br />

reduce waste at the water treatment<br />

plant for eMalahleni Municipality. An<br />

ultra-filtration technology was used<br />

to reduce waste from 20Ml/day.<br />

A joint project with Eskom<br />

related to rain-water harvesting will<br />

also create jobs. The Siyasebenza<br />

Job Creation Initiative is intended<br />

to create 900 jobs in the Nkangala<br />

District Municipality.<br />

The Imkomati-Usuthu Catchment<br />

Management Agency covers<br />

<strong>Mpumalanga</strong>, parts of Limpopo and<br />

part of the Kingdom of Swaziland<br />

and is responsible for water usage<br />

issues relating to the following<br />

river catchment areas: Sabie-Sand,<br />

Crocodile, Komati, Nwaswitsontso<br />

and Nwanedzi.<br />

The Komati Basin Water Authority<br />

(KOBWA) is an important agency in<br />

controlling water resources in the<br />

region. Formed out of a cooperation<br />

agreement between South African<br />

and Swaziland, the agency has built<br />

two large dams and is responsible for<br />

their upkeep. ■<br />

MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong><br />

48


Manufacturing<br />

Enaex has teamed up with Sasol.<br />

Enaex Africa, the new joint venture comprising Enaex and<br />

what used to be Sasol Explosives, will spend R16-million on<br />

a facility to assemble detonators in Secunda.<br />

The facility is intended to produce 800 000 detonators<br />

per annum. Enaex, a subsidiary of the Sigdo Koppers Group, is the<br />

controlling partner in the JV.<br />

A key objective of the provincial government’s <strong>Mpumalanga</strong><br />

Economic Growth and Development Path (MEGDP) is to expand<br />

the industrial base of the provincial economy. To do this, policymakers<br />

are focusing on beneficiation, agro-processing and value<br />

chain development.<br />

From steel to chemicals, petroleum and stainless steel to paper<br />

and fruit juice, <strong>Mpumalanga</strong> makes a wide variety of products. There<br />

is a distinct geographical divide. Fuel, petroleum and chemical<br />

production occurs in the southern Highveld region clustered around<br />

Sasol’s plants. The Sasol chemicals and liquid fluids complex at<br />

Secunda is a vital component of <strong>Mpumalanga</strong>’s manufacturing sector.<br />

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

(Witbank), is home to ferro-alloy, steel and stainless-steel concerns.<br />

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

processed while Sappi’s giant mill is close to the company’s forests<br />

south-west of the provincial capital, Mbombela. PG Bison is in the<br />

process of spending more than R2-billion on increasing capacity at<br />

its Mkhondo plant.<br />

TSB Sugar runs two large mills and produces fruit juices through<br />

a subsidiary company. Nelspruit is the centre of the province’s foodprocessing<br />

cluster.<br />

Approximately 70% of jobs in the manufacturing sector are in food<br />

and forestry.<br />

Steelmaking is a key strategic industry for South Africa,<br />

representing 1.5% of the country’s GDP and accounting for about<br />

190 000 jobs. According to the South African Iron and Steel Institute<br />

(SAISI), the South African steel industry value chain multiplies the value<br />

of local iron ore by a factor of four. The country produces about sixmillion<br />

tons annually, but costs are high and domestic demand is low.<br />

Middelburg-based Columbus Stainless is South Africa’s only<br />

producer of stainless-steel products. A significant portion of<br />

ONLINE RESOURCES<br />

Highveld Industrial Park: www.highveldindustrialpark.co.za<br />

<strong>Mpumalanga</strong> Economic Growth Agency: www.mega.gov.za<br />

South African Iron and Steel Institute: www.saisi.co.za<br />

SECTOR INSIGHT<br />

SECTOR NEWS<br />

Secunda is the site of a new<br />

assembly plant for detonators.<br />

A new joint venture will assemble<br />

detonators in Secunda. Credit: Enaex<br />

sales are domestic and export<br />

volumes are flexible, depending<br />

on local demand.<br />

A first national Furniture Sector<br />

Forum has been held, where<br />

government incentives and ideas<br />

about how to reduce the cost of<br />

expensive machinery through coownership<br />

and partnerships were<br />

shared. The forum was co-hosted by<br />

the South African Furniture Initiative<br />

(SAFI), Proudly South African, PG<br />

Bison and the Department of Trade,<br />

Industry and Competition (dtic).<br />

The dtic’s Agro Processing<br />

Support Scheme (APSS) includes<br />

furniture manufacture as a core<br />

sector for future growth and<br />

support. Average employment<br />

per manufacturer is 13 people<br />

per facility. Furntech White River<br />

is a part of the Seda Technology<br />

Programme of the Small Enterprise<br />

Development Agency (Seda). ■<br />

49 MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong>


SECTOR NEWS<br />

Tourism<br />

A new European airline has added Kruger <strong>Mpumalanga</strong><br />

International Airport to its roster.<br />

Credit: KMI Airport<br />

Eurowings Discover, a new division of Lufthansa, announced<br />

in <strong>2022</strong> that it would start flying three times a week to<br />

Mbombela from Frankfurt, via Windhoek, in November.<br />

This will give German tourists direct access to the Kruger<br />

National Park.<br />

Eurowings Discover was launched in July 2021 as a long-haul<br />

leisure airline, not to be confused with the low-cost airline, Eurowings.<br />

In May <strong>2022</strong> the airline had 16 aircraft.<br />

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

progress and should be completed in 20<strong>23</strong>. The R350-million fourstar<br />

facility in the Steve Tshwete Local Municipality is a public-private<br />

partnership. Akani Properties, a black-owned property development<br />

company, will work with the Radisson Hotel Group to deliver the 150-<br />

bed hotel and convention centre.<br />

The Provincial Government of <strong>Mpumalanga</strong> is looking for more<br />

private partners to invest in projects to boost an already active sector<br />

that has several superb tourism assets, ranging from about 70 parks<br />

and reserves to bird-watching, music festivals, car rallies and casinos.<br />

A total of R475-million in public and private investments has so far<br />

been raised for the Skywalk project at God’s Window in the Blyde River<br />

Canyon Nature Reserve. The community that owns the land will be a<br />

shareholder.<br />

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

asset and it falls under South African National Parks (SANParks). Other<br />

notable landmarks include the Blyde River Canyon and the Makhonjwa<br />

Mountains, which have been declared a World Heritage Site by the United<br />

ONLINE RESOURCES<br />

<strong>Mpumalanga</strong> Gaming Board: www.mgb.org.za<br />

<strong>Mpumalanga</strong> Tourism and Parks Agency: www.mtpa.co.za<br />

South African National Parks: www.sanparks.co.za<br />

South African Tourism Services Association: www.satsa.com<br />

SECTOR INSIGHT<br />

R475-million has been raised<br />

for the God’s Window<br />

Skywalk project.<br />

Nations Educational‚ Scientific and<br />

Cultural Organisation (UNESCO).<br />

Although the province already<br />

caters for motor-rally enthusiasts,<br />

cyclists, runners, walkers, fishers,<br />

horse-riders, tree-gliders,<br />

abseilers, white-water rafters<br />

and rock climbers, there is still<br />

potential for more investment in<br />

the ecotourism and adventure<br />

tourism subsectors.<br />

Tsogo Sun Hotels has taken<br />

over the Hazyview Sun, which<br />

brings its total in the province<br />

to nine properties, ranging from<br />

two StayEasys to Southern Sun<br />

The Ridge, which is attached<br />

to the Ridge Casino in Witbank<br />

(eMalahleni) and the Southern<br />

Sun Emnotweni in Nelspruit.<br />

Tsogo runs the Pine Lake Resort<br />

in White River and a further two<br />

resorts in Hazyview.<br />

Protea Hotels by Marriott has<br />

two properties in <strong>Mpumalanga</strong>,<br />

Protea Hotel Kruger Gate and<br />

Nelspruit. At White River, Premier<br />

Hotel The Winkler is 20 minutes’<br />

drive from the Numbi Gate of the<br />

Kruger National Park.<br />

Forever Resorts has a big<br />

presence in the province, catering<br />

to caravanners, campers and<br />

holiday-makers wanting to stay<br />

in chalets. There is also a four-star<br />

Forever Resorts Mount Sheba.<br />

The Graceland Hotel Casino and<br />

Country Club is a Peermont resort<br />

in Secunda. ■<br />

MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong><br />

50


Banking and finance<br />

Mutual banks have been granted licences.<br />

SECTOR NEWS<br />

SECTOR INSIGHT<br />

Ubank has been placed<br />

under curatorship.<br />

Ubank, with a history of catering to mineworkers, was<br />

found by the South African Reserve Bank to have an<br />

unacceptable capital adequacy ratio in May <strong>2022</strong> and was<br />

consequently placed under curatorship.<br />

Teba Trust Fund, which owns Ubank, was actively seeking<br />

a strategic investor when the curatorship was announced. The<br />

administrators of the fund are the National Union of Mineworkers<br />

(NUM) and Minerals Council SA. One of the banks being courted was<br />

the South African arm of Nigeria’s Access Bank Group and Minerals<br />

Council SA remains positive about the future of the bank.<br />

Despite the collapse of VBS Mutual Bank in 2018, the appetite for<br />

mutual banks is strong, given the nature of the South African market. The<br />

Young Women in <strong>Business</strong> Network (YWBN) has been granted a mutual<br />

bank licence and Bank Zero also intends to use the mutual model.<br />

Tyme Digital went from acquiring a licence to running TymeBank<br />

with services available in more than 500 Pick n Pay and Boxer stores<br />

in less than two years.<br />

Second to market among the country’s new banks was Discovery<br />

Bank, which officially launched in 2019 and is experiencing rapid<br />

growth in retail deposits. Discovery Bank is applying the behavioural<br />

model it uses in its health business to reward good financial<br />

behaviour. The Discovery group is already a giant on the JSE with<br />

ONLINE RESOURCES<br />

Financial Sector Conduct Authority: www.fsca.co.za<br />

Public Investment Corporation: www.pic.gov.za<br />

South African Reserve Bank: www.resbank.co.za<br />

a market value of R83-billion and<br />

access to millions of customers.<br />

South Africa’s four big retail<br />

banks (Nedbank, Absa, Standard<br />

Bank and First National Bank)<br />

have a solid presence in the major<br />

towns in the province.<br />

Agriculture is an important<br />

focus area for banks, and most<br />

have specialised divisions.<br />

Piet Retief-based TWK Agri<br />

offers financing and insurance<br />

together with the usual suite of<br />

agricultural services. Afgri, one of<br />

the country’s biggest agricultural<br />

companies, offers financial<br />

services (financing and insurance)<br />

under the brand Unigro.<br />

Another source of funding for<br />

farmers is the Land and Agricultural<br />

Development Bank of South Africa<br />

(Land Bank), a developmentfinance<br />

institution that falls under<br />

the Ministry of Finance.<br />

African Bank has created<br />

an account that allows up to<br />

five additional accounts to be<br />

created in the name of the main<br />

account. Fees are only charged for<br />

drawing cash or at the time of a<br />

transaction. There are no monthly<br />

fees for any of the accounts<br />

which can be either for saving or<br />

transactional. Each user has his or<br />

her own card and monies can be<br />

moved between accounts, ideal<br />

for families. ■<br />

51 MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong>


SECTOR NEWS<br />

ICT<br />

<strong>Mpumalanga</strong> has migrated to digital transmitters.<br />

SECTOR INSIGHT<br />

A WiFi hotspot project is<br />

taking off.<br />

Ian Troskie, Community Manager at Glencore Coal, and Shireen<br />

Powell, Chief Operating Officer of Isizwe.<br />

The national Department of Communications and<br />

Digital Technologies (DCDT) has implemented the big<br />

analogue switch-off in <strong>Mpumalanga</strong>.<br />

In February <strong>2022</strong>, the province became South Africa’s<br />

fourth province to migrate to digital transmitters, part of an integrated<br />

Broadcast Digital Migration plan to improve media channels.<br />

Three years after starting to offer free WiFi in its operating areas,<br />

Glencore Coal and partner Project Isizwe celebrated estimated<br />

savings in data costs of more than R100-million. Having started<br />

with 10 hotspots in Ogies and Phola in the eMalahleni Municipality,<br />

the initiative was expanded to the Steve Tshwete and Emakhazeni<br />

municipalities where 30 hotspots now function. Communities are<br />

consuming more than 28 000GB of data for free every month.<br />

Project Isizwe is a non-profit organisation that partners with<br />

Internet Service Providers to provide equitable Internet access.<br />

ICT has been chosen as one of the University of <strong>Mpumalanga</strong>’s six<br />

ONLINE RESOURCES<br />

Seda Technology Programme: www.seda.org.za<br />

State Information Technology Agency: www.sita.co.za<br />

Universal Service and Access Agency of South Africa: www.usaasa.org.za<br />

critical research themes. Operating<br />

under the title of Information and<br />

Communication Technology for<br />

Development (ICT4D), it intends to<br />

present easy adoption and use of<br />

ICT resources for the betterment<br />

of people’s day-to-day activities.<br />

Sub-themes are ICT in education,<br />

cybersecurity, Internet of Things<br />

and data analytics.<br />

The university offers a<br />

Diploma in ICT in Applications<br />

Development, a three-year course<br />

carrying 360 credits and a level-six<br />

qualification.<br />

In a move to address a shortage<br />

of critical skills, the <strong>Mpumalanga</strong><br />

Provincial Government is allocating<br />

bursary funds for students in<br />

specialist fields. One of these is ICT.<br />

The MTN SA Foundation<br />

supports several schools in<br />

<strong>Mpumalanga</strong> as part of MTN’s<br />

Back to School campaigns. Eleven<br />

schools have multi-media centres,<br />

each with 20 computer desks,<br />

chairs and teacher stations. The<br />

computer laboratories have one<br />

server, a multifunctional printer,<br />

an interactive whiteboard, a<br />

data projector, a router and<br />

data connectivity to MTN for<br />

24 months. The province’s<br />

new boarding school, Izimbali<br />

Combined MST, also has a<br />

40-seater laboratory courtesy of<br />

the MTN SA Foundation. ■<br />

MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong><br />

52


Bill<br />

Thrive with<br />

productivity<br />

that is<br />

always on<br />

MTN <strong>Business</strong> Work from home solutions<br />

Doing works everywhere—thanks to a range of MTN <strong>Business</strong> hybrid connectivity<br />

solutions designed to reduce the cost of remote working and to ensure team connectivity.<br />

Build your bundle with any of our offerings today<br />

SIP<br />

Trunking<br />

Direct<br />

Team<br />

Routing<br />

Fixed<br />

LTE<br />

SD-WAN<br />

Reverse<br />

URL<br />

APN<br />

Perimeter<br />

Antivirus<br />

Exchange<br />

Hosted<br />

MS Office<br />

365<br />

Fixed Voice<br />

Secure Broadband<br />

Mobility<br />

Security<br />

Cloud<br />

So. What are we doing today?<br />

Call<br />

083 1<strong>23</strong> 1800<br />

Visit<br />

mtnbusiness.co.za<br />

Email<br />

getconnected@mtn.com


SECTOR NEWS<br />

Development finance and<br />

SMME support<br />

Trade and accommodation are popular sectors for startups.<br />

SECTOR INSIGHT<br />

SMMEs are getting help to run<br />

their finances.<br />

Credit: Anglo American<br />

A<br />

programme to assist small companies in the mining sector<br />

has been launched by Anglo American’s Zimele Fund, in<br />

collaboration with the South African Institute of Chartered<br />

Accountants (SAICA). The idea is to boost the sustainability<br />

of SMMEs through training in financial management, accounting<br />

and office controls.<br />

Zimele has been funding and supporting SMMEs in Anglo<br />

American’s supply chain for more than 30 years. Zimele runs four<br />

enterprise development and investment funds related to the supply<br />

chains of platinum, thermal coal and, together with timber and paper<br />

company Mondi, forestry.<br />

The South African Institute of Chartered Accountants Enterprise<br />

Development (SAICA ED), which will run the programme, is part of<br />

SACIA’s Learning and Development Division.<br />

Research done by the Small Enterprise Development Agency<br />

(Seda) shows that a high percentage of SMMEs in <strong>Mpumalanga</strong> are in<br />

the trade and accommodation sector. Whereas the national figure is<br />

about 43%, in <strong>Mpumalanga</strong> it is closer to 50%.<br />

Seda is a subsidiary of the National Department of Small <strong>Business</strong><br />

Development (DSBD). Seda is not a financial agency, focussing rather<br />

on training and administrative support, although the agency will help<br />

SMMEs get in touch with financial bodies.<br />

Seda supports several incubators in the province: Furntech,<br />

furniture manufacturing, White River; Mobile Agro-Skills Development<br />

& Training (MASDT), agricultural training, Nelspruit; <strong>Mpumalanga</strong><br />

Stainless Initiative (MSI), stainless-steel processing, Middelburg<br />

(with Columbus Stainless); Timbali floriculture, Nelspruit; Ehlanzeni<br />

TVET College Rapid Incubator<br />

Renewable Technologies,<br />

Nelspruit. TVET stands for technical<br />

and vocational education training.<br />

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

Growth Agency (MEGA) is the<br />

implementing agent of the<br />

provincial government’s SMME<br />

support policy. An agreement has<br />

been signed by Standard Bank<br />

and MEGA to launch an SME Fund<br />

with a capitalisation of R500-<br />

million. MEGA has also overseen<br />

the rehabilitation of industrial<br />

premises in former homelands<br />

and formed partnerships with<br />

financial institutions for funding.<br />

Examples of township businesses<br />

supported by the Department<br />

of Economic Development<br />

and Tourism (DEDET) are an<br />

agreement with Sumitomo<br />

Rubber SA to promote local<br />

tyre enterprises and financial<br />

support for the commissioning<br />

of a sanitary towel plant by the<br />

Ntirhisano Sanitary Worker Cooperative<br />

in Bushbuckridge (and<br />

support for business development<br />

and access to market).<br />

A provincial programme to<br />

repair potholes in roads promises to<br />

create employment opportunities<br />

and benefit SMMEs. The focus will<br />

be on strategic roads and roads<br />

MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong> 54


Kruger Lowveld Chamber<br />

of <strong>Business</strong> and Tourism<br />

The voice of business in Ehlanzeni.<br />

As the official representative body of business and tourism in<br />

the Kruger Lowveld (Ehlanzeni District), our main mandates<br />

are to promote the region as a tourism and investment destination,<br />

to provide a diverse suite of networking and marketing<br />

opportunities for our members, and to represent and speak<br />

on behalf of the business and tourism community of our area. We do<br />

this by building and maintaining meaningful relationships with all<br />

spheres of government as well as like-minded organisations, and by<br />

acting as liaison between these entities and the business community.<br />

KLCBT’s president is Ms Sandra Jacobs (pictured).<br />

Area of operation<br />

The Kruger Lowveld covers the Ehlanzeni District of <strong>Mpumalanga</strong>,<br />

including the following local municipalities: City of Mbombela, Thaba<br />

Chweu, Nkomazi and Bushbuckridge, as well as the southern part<br />

of Kruger National Park and the surrounding private nature reserves.<br />

Member benefits<br />

Listing on website, Pay-to-Play participation in various marketing<br />

services and projects, weekly newsletter, invitations to all KLCBT<br />

events, advocacy and representations made by KLCBT on behalf of<br />

members, access to preferential arrangements negotiated by KLCBT<br />

with service providers, brochure display at Crossing Centre office,<br />

various sponsorship options, access to tender information. We are<br />

actively involved in the following advocacy campaigns:<br />

Service delivery:<br />

Public participation in various forums where government engages<br />

with stakeholders regarding budgets, planning and legislation.<br />

Promote home-grown businesses through education processes,<br />

research, maintaining a database, lobbying for stricter regulations<br />

Contact details<br />

Physical address: KLCBT House, Crossing Centre, Nelspruit<br />

Postal address: Private Bag X 11326, Nelspruit 1200<br />

Tel: +27 13 755 1988. Fax: +27 13 753 2986<br />

Email: business@klcbt.co.za and tourism@klcbt.co.za<br />

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

Sandra Jacobs<br />

on large shopping chains,<br />

engaging large chains to buy<br />

local and to spend their CSI<br />

budgets locally.<br />

Local Economic Development:<br />

We are assisting with<br />

incubation in seven main<br />

corridors, mainly adding additional<br />

tourism products.<br />

Anti-corruption: Several<br />

successful initiatives reduced<br />

roadside corruption.<br />

Water: Bulk-water supply faces<br />

a future crisis and lobbying for<br />

the increase of storage capacity<br />

is beginning to show success.<br />

Roads and public attractions:<br />

Require upgrades and<br />

investment.<br />

Safety and security: A concern<br />

for all regions in SA. ■<br />

55<br />

MPUMALANGA BUSINESS 2021/22


SECTOR NEWS<br />

that carry tourists and is expected to create more than 40 000 jobs and<br />

be administered by the Extended Public Works Programme (EPWP).<br />

By giving contracts to SMMEs, the intention is to involve them in the<br />

mainstream economy.<br />

The Gert Sibande Centre for Entrepreneurship in Evander hosts a<br />

Rapid Incubator in partnership with Seda. The aim is to promote and<br />

develop young entrepreneurs in the province.<br />

The Incubator offers a variety of services, including mentorship<br />

and coaching, training, advice on business compliance, network<br />

and linkages as well as facilitating access to marketing and funding<br />

opportunities. Infrastructure support is available in terms of office<br />

space and boardroom, telephone and Internet connections and<br />

printing services. The Centre was established in 2015 through a<br />

partnership between the Gert Sibande TVET College, the DSBD and<br />

the University of Johannesburg. The college has five other campuses<br />

across the Gert Sibande District Municipality.<br />

A new national programme to grow employment has received a<br />

funding boost from the African Development Bank (AfDB). The National<br />

Department of Trade, Industry and Competition (dtic) has received<br />

a R<strong>23</strong>.6-million grant to pursue four programmes, one of which is<br />

focussed on encouraging enterprise development in TVET colleges.<br />

The hope is that graduates will leave colleges with qualifications<br />

and fully-functioning businesses that can start employing staff. The<br />

college’s workshops will be open to local entrepreneurs to develop<br />

and produce products that can be sold.<br />

Entrepreneurship Development is one of the subjects on offer<br />

at 90 Youth Development Centres which are being established<br />

throughout <strong>Mpumalanga</strong>. Other courses include accredited training<br />

in computer skills and life skills, with workshops on job preparedness<br />

and career guidance. The centres are part of <strong>Mpumalanga</strong>’s response<br />

to the Presidential Youth Employment Intervention Programme.<br />

Private companies<br />

Premier Refilwe Mtshweni-Tsipane has paid tribute to private<br />

companies for providing employment opportunities to local people<br />

and for continuing to support small and emerging businesses. Bursary<br />

programmes and training programmes were also acknowledged. The<br />

company’s mentioned were Sasol, Exxaro, Eskom, Sappi, Columbus<br />

Stainless, Samancor, RCL foods, Mondi, Safcol, Glencore, Standard<br />

Bank, Absa Bank, Nedbank and First National Bank.<br />

ONLINE RESOURCES<br />

Gert Sibande TVET College: www.gscollege.edu.za<br />

<strong>Mpumalanga</strong> Economic Growth Agency: www.mega.gov.za<br />

<strong>Mpumalanga</strong> Stainless Initiative: www.mpstainless.co.za<br />

Small Enterprise Development Agency: www.seda.org.za<br />

South African Institute of Chartered Accountants: www.saica.org.za<br />

Skills Academy and Artisan Development<br />

Centre, Evander Campus, Gert Sibande<br />

TVET College<br />

At Exxaro’s Matla Mine, a blackand<br />

woman-owned business<br />

has grown in leaps and bounds<br />

with support from the mining<br />

company’s Enterprise and Supplier<br />

Development unit. Stenda Trading<br />

won contracts to do underground<br />

civil and underground cleaning<br />

services at the mine. This included<br />

building containment and<br />

explosion-proof walls, installing<br />

black brattices, reinforced brattices<br />

and air crossings, building refuge<br />

bays, concrete work and installing<br />

specialised doors. Exxaro extended<br />

a R9.2-million interest-free loan to the<br />

enterprise to purchase equipment,<br />

vehicles and a mobile office.<br />

Sappi’s long-term Ngodwana<br />

Mill project will spend more than<br />

R600-million on procuring goods<br />

and supplies from broad-basedblack-economic-empowered<br />

companies, of which R51-million<br />

will go to SMMEs.<br />

Other companies supporting<br />

SMMEs through their buying chain<br />

include Woolworths and Anglo<br />

American. Woolworths funds<br />

TechnoServe to ensure that small<br />

tomato growers can grow produce<br />

that will meet the demanding<br />

standards of the retailer, and to<br />

help them expand production. ■<br />

MPUMALANGA BUSINESS <strong>2022</strong>/<strong>23</strong> 56


Doing proves<br />

that building<br />

trust serves<br />

government’s<br />

best interests<br />

Government now trusts MTN <strong>Business</strong><br />

to run education, health, social and<br />

other essential public services.<br />

So. What are we doing today?<br />

With MTN <strong>Business</strong>, government<br />

employees can now enjoy:<br />

• Uncapped data with no<br />

Fair Usage Policy (FUP)<br />

•<br />

Uncapped Closed<br />

User Group minutes<br />

•<br />

Uncapped Closed<br />

User Group SMSs<br />

•<br />

Voice minutes to call<br />

other networks<br />

•<br />

A variety of smartphones.<br />

Call<br />

Email<br />

Click<br />

083 211 0787<br />

moshe.molepo@mtn.com<br />

mtnbusiness.co.za<br />

Terms and Conditions apply. For full Terms and Conditions, visit mtnbusiness.co.za

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!