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Mpumalanga Trade & Investment Profile 2023

Companies in a wide range of sectors are already invested in Mpumalanga – and are ramping up the commitments with new investments. The 2023 Mpumalanga Investment Prospectus presents exciting opportunities for investment in Mpumalanga, including information about key sectors of the economy, business opportunities, government policies and programmes, and private sector success stories. The Mpumalanga Economic Growth Agency (MEGA) is the official Economic Development Agency for the Mpumalanga Provincial Government and is committed to making the process of investing in Mpumalanga or starting a business in the province easy.

Companies in a wide range of sectors are already invested in Mpumalanga – and are ramping up the commitments with new investments. The 2023 Mpumalanga Investment Prospectus presents exciting opportunities for investment in Mpumalanga, including information about key sectors of the economy, business opportunities, government policies and programmes, and private sector success stories. The Mpumalanga Economic Growth Agency (MEGA) is the official Economic Development Agency for the Mpumalanga Provincial Government and is committed to making the process of investing in Mpumalanga or starting a business in the province easy.

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THE PLACE OF THE RISING SUN<br />

MPUMALANGA<br />

TRADE & INVESTMENT PROFILE<br />

MPUMALANGA IS OPEN FOR BUSINESS


WHY INVEST IN MPUMALANGA?<br />

• 68% of land area in the province is used by agriculture<br />

• <strong>Mpumalanga</strong>’s three biggest sectors are manufacturing, mining and agriculture<br />

<strong>Mpumalanga</strong>’s diverse and resource-rich economy makes it one of the most<br />

attractive trade and investment destinations in South East Africa.<br />

A large, growing domestic market and excellent access, supported by worldclass<br />

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

Maputo Port makes <strong>Mpumalanga</strong> an ideal investment location for export-driven<br />

manufacturing and production.<br />

<strong>Mpumalanga</strong> is one of South Africa’s most productive and important agricultural<br />

regions and through strategic investments in the <strong>Mpumalanga</strong> International<br />

Fresh Produce Market (MIFPM) and the Nkomazi Special Economic Zone (NSEZ)<br />

the province is set to become a major force in food production and distribution.<br />

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

sector in a post-Covid world is ripe for investment and expansion.<br />

<strong>Mpumalanga</strong>’s STRATEGIC LOCATION makes it<br />

a valuable transport and logistics hub<br />

<strong>Mpumalanga</strong><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, access to regional and<br />

global markets<br />

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

world-class reserves, adventure tourism and new<br />

UNESCO World Heritage Site<br />

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

Market (MIFPM)<br />

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

• The new University of <strong>Mpumalanga</strong><br />

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

A province in eastern<br />

South Africa, bordering<br />

the nations of Swaziland<br />

and Mozambique<br />

• Maputo Development Corridor enhances logistics<br />

• Preferential access to lucrative EU market<br />

• Proximity to South Africa’s economic heartland<br />

• Access to regional SADC market: 360-million population<br />

• Access to deepwater Port of Maputo<br />

Capital City<br />

Mbombela<br />

(Nelspruit)<br />

Population<br />

4.5-million people<br />

Main major towns<br />

Ermelo<br />

eMalahleni<br />

Middelburg<br />

Secunda<br />

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

MPUMALANGA’S ECONOMY<br />

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

Established industries in the province include Mining, Stainless<br />

Steel, Petrochemicals, Pulp and Paper, Ferro-Alloys, Energy<br />

Generation, Tourism, Agriculture and Agro-Processing.<br />

Companies in these sectors include global giants in their<br />

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

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

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

AGRICULTURE 3%<br />

COMMUNITY<br />

SERVICE 19%<br />

FINANCE<br />

14%<br />

TRANSPORT 6%<br />

MINING 20%<br />

TRADE 14%<br />

MANUFACTURING<br />

15%<br />

ELECTRICITY 7%<br />

CONSTRUCTION<br />

2%<br />

District GVA by district<br />

38% 34%<br />

Nkangala<br />

Ehlanzeni<br />

28%<br />

Gert<br />

Sibanda<br />

The province’s commercial farmers are among the most efficient in the world,<br />

exporting huge quantities of everything from citrus to macadamia nuts. Columbus<br />

Stainless is the only stainless-steel manufacturer on the continent.<br />

GOVERNANCE<br />

The province has three district municipalities and 17 local municipalities. Several<br />

agencies which promote the regional economy report to the <strong>Mpumalanga</strong> Provincial<br />

Government. Large parts of the province comprises extensive rural villages that<br />

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

TRANSPORT<br />

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

KMIA) plus many airfields. Extensive freight rail network, busiest in South Africa. N4<br />

highway (Maputo Corridor) is an east-west spine of a highly-developed road system.


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 <strong>Mpumalanga</strong>’s economy through<br />

its operational activities of <strong>Trade</strong> and <strong>Investment</strong> Promotion, Development Funding, Equity <strong>Investment</strong>s, and<br />

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

Development and Tourism (DEDT). MEGA is the foreign investor’s or trader’s first point of contact for doing successful<br />

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

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

PLANNING THE WAY FORWARD<br />

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

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

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 sanitation, transport<br />

and broadband connectivity<br />

The Maputo Development Corridor is South Africa’s leading<br />

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

Gauteng Province and the Nkomazi Special Economic Zone with<br />

the deepwater Port of Maputo in Mozambique. This efficient<br />

corridor provides investors and exporters with good access to the<br />

export markets of South East Africa, the Indian Ocean Rim and<br />

Far East Asia. The Maputo Development Corridor comprises road,<br />

SOUTH AFRICA<br />

MEGA SERVICES<br />

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

or starting a business in the province easy. MEGA is focussed on customer needs<br />

and provides innovative solutions with a high level of service. Services include:<br />

• Foreign <strong>Trade</strong> Promotion<br />

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

• Funding<br />

• Property Management<br />

and Infrastructure<br />

Development<br />

MAPUTO DEVELOPMENT CORRIDOR<br />

Lydenburg<br />

rail, Special Economic Zone, border posts, port and terminal<br />

facilities. The corridor runs through the most highly industrialised<br />

and productive regions of Southern Africa. The Corridor has been<br />

extensively upgraded to international standards and links the<br />

industrial heartland of South Africa to its nearest port in Maputo,<br />

Mozambique, which is one of the fastest-growing countries in<br />

South East Africa.<br />

Sabie<br />

MOZAMBIQUE<br />

Middelburg<br />

Belfast<br />

Mbombela<br />

Komatipoort<br />

JOHANNESBURG<br />

Carolina<br />

SWAZILAND<br />

MAPUTO


KEY SECTORS AGRICULTURE<br />

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

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

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

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 />

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

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

South Africa, primarily in fruit and nuts. The province’s economic diversity<br />

extends into the agriculture sector where the natural topography of the<br />

province divides this sector between the Highveld and Lowveld Regions.<br />

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

an elevation of between 4 000 and 6 000 feet above<br />

sea level. This allows for the large-scale and commercial<br />

production of cereals and legumes like maize, soya,<br />

canola and sunflower.<br />

The subtropical region of the <strong>Mpumalanga</strong> Lowveld<br />

plays a key role in the agricultural export profile of the<br />

province, primarily in fruit and nuts.<br />

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

producers and exporters of citrus fruit. Duty-free<br />

exports of South African citrus to the USA under the<br />

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

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

expected to continue their strong annual growth as the<br />

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

REGIONAL PRODUCE<br />

Highveld<br />

Lowveld<br />

HIGHVELD: Summer cereals and legumes:<br />

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

Animal products: bovine meat, swine,<br />

sheep and poultry.<br />

LOWVELD: Subtropical and citrus fruits,<br />

nuts and cane sugar.<br />

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

producer and exporter of macadamia nuts.<br />

The province earned $207-million in exports in<br />

2019, $76-million of this to the US. There have<br />

been major new investments in processing<br />

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

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

utilised by companies such as McCain, Nestlé<br />

and PepsiCo.<br />

9:1<br />

<strong>Mpumalanga</strong>’s<br />

ratio of commercial<br />

farmers to<br />

small-scale<br />

farmers<br />

KEY SECTORS FORESTRY<br />

Forestry is a key driver for the development of <strong>Mpumalanga</strong>’s<br />

rural economy and a major provider of job opportunities.<br />

About 40% of SA’s sustainable forests are located in<br />

<strong>Mpumalanga</strong> Province.<br />

The industry comprises logging, saw-milling, wood products, wood board, pulp and paper as<br />

well as specialised cellulose. Specialised cellulose is a sought-after natural, renewable fibre<br />

with a wide range of uses in the textile, consumer goods, foodstuff and pharmaceutical<br />

industries and is produced in large quantities at Sappi Ngodwana.<br />

R9.5<br />

billion<br />

Amount invested<br />

in the foresty<br />

industry<br />

PG Bison has recently invested R560-million in<br />

a new front-end dryer for its particleboard plant<br />

in Mkhondo (Piet Retief). The company is also<br />

building a new medium-density fibreboard (MDF)<br />

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 />

Sonae Arauco is a Portuguese investment. A<br />

new entrant, local BEE company the FX Group, is<br />

commissioning a greenfield particle board plant<br />

in Lothair in the Gert Sibande District.<br />

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

processing<br />

39<br />

out of 148 in South Africa<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


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 />

83%<br />

of South<br />

Africa’s<br />

coal<br />

production<br />

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

coal-exporting region in the world. Coal is the lifeblood of provincial economy, fuelling 11<br />

Eskom power plants, which produce 80% of South Africa’s electricity. Coal is <strong>Mpumalanga</strong>’s<br />

single largest export product, shipping mainly to India and Pakistan.<br />

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

second-largest export from the province. Platinum and chrome ore mining are located in the Steelpoort<br />

and Burgersfort areas in the 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 <strong>Mpumalanga</strong>. With over a<br />

century of commercial mining operations in the province, homegrown technologies are now exported<br />

around the globe.<br />

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

will manage the project and do the mining while major companies such as DRA, Worley, Sandvik and<br />

WBHO will also be involved.<br />

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

Evander (Elikhulu tailings), Exxaro Resources (Leeuwpan) and South32, which is spending about<br />

R4.3-billion at Klipspruit.<br />

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

Implats (46%) and African Rainbow Minerals which is located on the southern part of the eastern<br />

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

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

and Merafe Resources.<br />

KEY SECTORS GREEN ECONOMY AND JET<br />

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

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

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

The <strong>Mpumalanga</strong> Provincial Government has been proactive in exploring opportunities<br />

in the Green Economy and pursuing a just transition to a low-carbon economy which<br />

secures the future and livelihoods of workers and their communities.<br />

Achieving such a just transition would require an integration of economic opportunities<br />

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

A Just Energy Transition (JET) to a Green Economy presents the following opportunities:<br />

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

• Gas and associated industries<br />

• Sustainable smart agriculture: environmentally-friendly<br />

agriculture and agricultural processing<br />

• Circular Green Economy: waste recycling, water reclamation, land rehabilitation<br />

• Soft infrastructure: reskilling and institutional capacity-building for a<br />

carbon-neutral future<br />

• Hard infrastructure: investment and expertise are needed in urban<br />

planning, water and waste management<br />

• Building technologies: greener and more energy-efficient<br />

• Transport and logistics: greener and more energy-efficient<br />

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

11<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 />

50%<br />

of South Africa’s<br />

national coal<br />

reserves<br />

ESKOM POWER<br />

plants<br />

Specific opportunities include:<br />

•There are plans for the decommissioning<br />

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

by 2030. Opportunities<br />

are presented by repurposing land.<br />

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

the coast of Mozambique could have a big<br />

impact on the <strong>Mpumalanga</strong> economy.<br />

• A Renewable Energy Development Zone<br />

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

where coal jobs are at risk.


KEY SECTORS MANUFACTURING<br />

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

60% of the output of the manufacturing sector, which overall makes up 15% of gross<br />

value added, regional (GVA-R).<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 />

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

District. It is one of the world’s largest synthetic fuels facilities, producing 60-million litres of liquid fuel a day.<br />

Products produced include petroleum, paraffin, jet fuel, creosote, bitumen and waxes.<br />

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

Middelburg is Africa’s only producer of stainless-steel flat products. Samancor Chrome (Ferrometals),<br />

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

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

(pulp, paper and cellulose), sugar at the Selati RCL Foods plants in Nkomazi and processing subtropical fruit<br />

and nuts.<br />

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

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

Mbombela. Subtropical fruits like mango, banana, papaya and citrus<br />

are processed into juice concentrate or dried for export.<br />

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

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

Region clustered around Sasol’s plants.<br />

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

(Witbank), is home to ferro-alloy, steel and stainless-steel concerns.<br />

Creative thinking kicked in when Highveld Steel’s troubles reached<br />

a tipping point. The 1 000ha property in Emalahleni has been<br />

re-purposed as a multi-purpose site for industry and commerce.<br />

Called the Highveld Industrial Park, the project promotes a wide<br />

range of manufacturing enterprises.<br />

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

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

of the provincial capital, Mbombela.<br />

KEY SECTORS TOURISM<br />

The importance of tourism to the economy of <strong>Mpumalanga</strong> cannot be<br />

overstated. The effect of the Covid-19 pandemic has been strongly felt.<br />

<strong>Mpumalanga</strong> received only 340 000 international visitors in 2020, down from 1.6-million international visitors<br />

in 2019. The key source countries were Mozambique, eSwatini, the USA, Germany, France and the UK.<br />

Domestic tourism has steadily increased. The total tourist foreign direct spend (TTFDS) in <strong>Mpumalanga</strong><br />

for 2020 was R7.5-billion, down from over R21-billion in 2019. The sector accounts for 6% of gross value<br />

added by region (GVA-R).<br />

The announcement in 2022 by Eurowings Discover, a new division of Lufthansa, that it would start flying<br />

three times a week to Mbombela from Frankfurt, via Windhoek, will give a certain boost to tourist numbers<br />

.6<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 />

visiting <strong>Mpumalanga</strong>. The Kruger National Park is <strong>Mpumalanga</strong>’s most famous tourist asset and safaris and hunting<br />

are major tourist attractions. The Manyeleti Reserve, a 23 750-hectare game reserve sharing a fenceless border<br />

with the Kruger National Park, is operated and managed by the <strong>Mpumalanga</strong> Tourism and Parks Agency (MTPA).<br />

God’s Window and the Blyde River Canyon Reserve are other provincial treasures attracting investment.<br />

Business travel, including conferencing, adventure, heritage and cultural tourism, all hold huge growth potential<br />

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

A hotel and conference centre project in Middelburg is making progress and should be completed in <strong>2023</strong>.


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 in the<br />

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

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

tourism attraction off the edge of the 700m God’s Window<br />

cliffs – giving 360-degree panoramic views out and down<br />

through a glass floor.<br />

Feasibility study: completed<br />

EIA: commenced<br />

Investors: secured<br />

Model: JV, BOT<br />

Value: R100-million<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 PRODUCE MARKET<br />

Selected Strategic High Impact Projects: <strong>Mpumalanga</strong> International Fresh Produce Market<br />

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

located in Mbombela, the <strong>Mpumalanga</strong> International Fresh Produce<br />

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

R540-million in the project.<br />

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

agriculture regions. It is home to predominantly tropical and subtropical<br />

crops and vegetables owing to its conducive climate. The tropical and<br />

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

guava, litchi, macadamia nut, mango, papaya and pineapple.<br />

The vegetables produced include potatoes, tomatoes, pumpkins,<br />

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

cauliflower, cabbages and green beans.<br />

Site: The site is in Mbombela on a 248ha plot less than 10km<br />

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

Development Corridor (MDC), linking <strong>Mpumalanga</strong>, Gauteng Province<br />

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

Maputo in Mozambique.<br />

The market: The market will give local farmers access to local,<br />

regional and international fresh produce markets and will aid in<br />

ensuring food security for the region.<br />

The infrastructure of the MIFPM will attract international as well as<br />

the large domestic food retailers as a key processing and distribution<br />

point. It will also secure <strong>Mpumalanga</strong>’s position in the regional export<br />

market in fresh produce.<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 and pallet handling<br />

• Processing facilities<br />

• An export hall<br />

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

• Links with statutory organisations such as customs, PPEBC<br />

and EuroGap<br />

• Transport and logistics enterprises<br />

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

• Commercial services including banks and restaurants<br />

• A food bank for NGOs<br />

Feasibility study: completed<br />

EIA: completed<br />

Bulk infrastructure: completed<br />

Top structures: underway<br />

Model: JV, BOT<br />

Value: R1-billion<br />

INVESTMENT OPPORTUNITIES NKOMAZI SEZ<br />

Selected Strategic High Impact Projects: Nkomazi Special Economic Zone<br />

The Nkomazi Special Economic Zone has been officially designated<br />

and MEGA has been appointed to establish the entity.<br />

SEZs are geographically designated areas set aside for specifically<br />

targeted economic activities that are supported through special<br />

tax incentives. An SEZ aims to be an economic development tool to<br />

promote rapid economic growth by using various support measures<br />

to attract targeted foreign and domestic investments and technology.<br />

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

industrial development programme.<br />

Strategically positioned in the border town of Komatipoort,<br />

the SEZ offers a multi-sector base of operations along the H<br />

Maputo Development Corridor which provides exporters with<br />

good access through Maputo Port to the export markets of<br />

South East Africa, the Indian Ocean Rim and Far East Asia.<br />

The Nkomazi SEZ will target investment from the<br />

agriculture, agro-processing, nutraceuticals and fertiliser<br />

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

trade services.<br />

The NSEZ offers the investor a unique and incentivised<br />

base of operations on the Maputo Development Corridor<br />

running through the most highly industrialised and<br />

productive regions of Southern Africa.<br />

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

the Maputo harbour improves its handling and scheduling<br />

Recreation<br />

capacity. In the event that a second rail line to Maputo to complement<br />

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

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

provinces will increase. MPUMALANGA – NKOMA<br />

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

innovation platform, a competitive and transparent market<br />

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

market requirements.<br />

Manufacturing<br />

Convenience Retail<br />

Accommodation<br />

Centralised Facilities<br />

Logistics


FOREIGN TRADE<br />

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

economy as well as internationally.<br />

TOP 10 EXPORTS 2022<br />

1. Ferro Alloys R 35 billion US$ 1.9 billion<br />

2. Coal R 16 billion US$ 913 million<br />

3. Stainless Steel R 9.1 billion US$ 504 million<br />

4. Platinum R 6.9 billion US$ 385 million<br />

5. Gold R 5.8 billion US$ 322 million<br />

6. Macadamia Nuts R 4.1 billion US$ 229 million<br />

7. Chrome Ore R 2.4 billion US$ 138 million<br />

8. Manganese R 2.3 billion US$ 129 million<br />

9. Fuel Wood R 1.5 billion US$ 85 million<br />

10. Citrus Fruit R 576 million US$ 32 million<br />

TOP 10 EXPORT MARKETS 2022<br />

1. Mozambique R 21 billion US$ 1.6 billion<br />

2. China R 9.5 billion US$ 529 million<br />

3. United States R 8.5 billion US$ 471 million<br />

4. Japan R 5.9 billion US$ 331 million<br />

5. Korea R 5.5 billion US$ 308 million<br />

6. Netherlands R 5.2 billion US$ 291 million<br />

7. India R 3.8 billion US$ 210 million<br />

8. eSwatini R 3.2 billion US$ 180 million<br />

9. UAE R 3.2 billion US$ 178 million<br />

10. Indonesia R 2.4 billion US$ 135 million


THE PERFECT LAUNCH PAD FOR AFRICA<br />

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

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

start of trading under the AfCFTA Agreement<br />

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

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

terms of details and practical measures.<br />

The nations covered by AfCFTA have an<br />

estimated combined GDP of $2.5-trillion<br />

and a population of over 1.2-billion.<br />

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

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

Instrument of ratification deposited<br />

Parliamentary approval received or pending<br />

AfCFTA Agreement signed<br />

AfCFTA Agreement not signed<br />

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

on by almost all African nations and holds the potential to change<br />

the nature and size of trading on the continent in profound ways.<br />

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

region with a dynamic manufacturing sector and excellent<br />

logistics and infrastructure, provides the perfect launch<br />

pad for investors looking to take advantage opportunities<br />

that will be created by the AfCFTA Agreement.<br />

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

economists are carefully watching. As more sophisticated<br />

infrastructure is rolled out across Africa, having a base with<br />

good connections to ports and with good air, road and rail<br />

connectivity will be vital. <strong>Mpumalanga</strong> has all of that, and more.<br />

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

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

gradual elimination of tariff and non-tariff barriers<br />

to trade on the continent. In terms of export-driven<br />

manufacturing and production <strong>Mpumalanga</strong> is well<br />

positioned to take full advantage of the economic<br />

promise of the AfCFTA and attract investment, thereby<br />

helping to increase income levels and reduce poverty.<br />

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

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

Initiative (SDI), linking <strong>Mpumalanga</strong>, Gauteng Province and the<br />

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

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

a particular advantage with respect to logistics and market access.<br />

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

way countries do business and include a much broader range<br />

of countries and products into the global market. Foreign direct<br />

investment is expected to grow rapidly, as investment opportunities<br />

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

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

Green Economy which <strong>Mpumalanga</strong> is actively preparing for, will<br />

grow exponentially on the back of a continental system of trade<br />

with fewer barriers and more connections than ever before.


AfCFTA FAST FACTS<br />

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

experts predict that continental business and consumer<br />

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

$450<br />

BILLION<br />

AfCFTA could<br />

boost regional income<br />

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

(Source: the World Bank)<br />

AfCFTA could lift<br />

30<br />

-million<br />

people<br />

out of poverty, according<br />

to the World Bank<br />

AfCFTA<br />

could<br />

boost<br />

10%<br />

wages<br />

by up to<br />

* World Bank estimate<br />

ABOUT SADC<br />

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

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

Southern African Development Community,<br />

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

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

people. All goods shipped under SADC<br />

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

Duty-free trade<br />

within a GROWING MARKET<br />

of more than<br />

360million<br />

people


MBOMBELA HEAD OFFICE: T +27 13 492 5818<br />

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

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