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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.

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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>

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