Mpumalanga Business 2023-24

ter: @Mtpatourism | Instagram: @mpumalangatourism
MPUMALANGA BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN MPUMALANGA
2021/22
MPUMALANGA
MPUMALANGA
BUSINESS
BUSINESS
ourism
THE GUIDE TO BUSINESS AND INVESTMENT IN
MPUMALANGA PROVINCE
THE GUIDE TO BUSINESS AND INVESTMENT IN
MPUMALANGA PROVINCE
rything a tourist could want.
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MPUMALANGA BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN MPUMALANGA
history. The many heritage sites in the area include the
Samora Machel monument near Mbuzini and the Barberton
Makhonjwa Mountains World Heritage Site (pictured),
boasting rock formations dating back more than 3.5-billion
years. Other sites not to be missed are the mining village of
Pilgrim’s Rest, the Highveld Heritage Route (which abounds
with adventurous tales from history), the stone circles of
Mpumalanga and Goliath’s footprint to name just a few.
Mpumalanga is rich in culture and boasts the Swazi, Ndebele
and Shangaan people with icons like Dr Esther Mahlangu
who has managed to preserve, package and export the
vibrant geometric art of the Ndebele globally.
Bird watchers can have a glimpse of more than 500
different birds endemic to the Kruger National Park or the town
of Chrissiesmeer, the centre of South Africa’s own Lake District
where four river systems start their journeys across the country.
The small tourist town of Dullstroom is referred to
as South Africa’s trout-fishing mecca. Mpumalanga is an
ideal sporting destination with several world-class golf
courses and the Mbombela Stadium that was built for
the FIFA World Cup in 2010 and has subsequently hosted
2018/19
MPUMALANGA
BUSINESS
THE GUIDE TO BUSINESS AND INVESTMENT
IN MPUMALANGA PROVINCE
2023/24 EDITION
2021/22 EDITION
2018/19 EDITION
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international football and rugby matches. Get off the
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beaten track and explore the many other tourism offerings
of the Mpumalanga Province.
MPUMALANGA

Contributing to the
lifeblood of the province
whilst unlocking the
power of trees for a
better tomorrow
Sappi Southern Africa has been providing the lifeblood for the
province of Mpumalanga through its commercial plantations and its
manufacturing facilities for many decades. Contributing over
ZAR5.5 billion annually to the local economy, more than 43,000
people in the province depend on the company for their livelihood.
And all while the company is building a thriving world with a
biobased circular economy. Utilising innovative approaches, we
champion responsible forestry as we cultivate more purpose and
value from each tree, by-product and resource. Our products are
sustainable alternatives extracted from woodfibre to reduce the
need for fossil-based materials used in everyday products.
sappi.com

MESSAGE
The transformative power of business
and investment
Investors are encouraged to investigate the wealth of opportunities in
Mpumalanga, writes Isaak Mahlangu, CEO of the Mpumalanga Economic
Growth Agency.
Isaac Mahlangu, CEO, MEGA
It is with great pleasure that I address you as the
CEO of the Mpumalanga Economic Growth
Agency (MEGA). As the driving force behind
the economic development of our remarkable
province, it is my privilege to provide you with
this message in the esteemed pages of the
Mpumalanga Business journal.
Over the years, Mpumalanga has emerged as
a prime destination for business and investment
opportunities. With its abundant natural resources,
strategic location and vibrant communities, our
province offers an environment conducive to
growth and prosperity. We are committed to
fostering an ecosystem that nurtures innovation,
entrepreneurship and sustainable development.
As we navigate through the challenges
brought by the global economic landscape,
Mpumalanga remains steadfast in its dedication
to fostering economic growth. We understand
that collaboration is key and we actively seek
Renewable Energy. Seriti Green, a subsidiary of Seriti
Resources, is investing in South Africa’s biggest wind farm
in Mpumalanga. Credit: Gustavo Quepón on Unsplash
Mining. Exxaro is one of Mpumalanga’s biggest
employers, with ownership of three coal mines
and a partnership in a fourth. Credit: Exxaro
MPUMALANGA BUSINESS 2023/24
2

E
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MESSAGE
2018/19
MPUMALANGA
partnerships with both local and international
investors who share our vision of a thriving
economy that uplifts all our citizens.
Tourism. The Blyde River Valley is one of
Mpumalanga’s many iconic tourism jewels.
Credit: SA Tourism.
Agribusiness. TSB Sugar mills tens of thousands
of tons of sugar at its Komati Mill.
Credit: Bosch Holdings
Comprehensive support
Our agency works tirelessly to provide
comprehensive support to businesses and investors.
We offer a range of services from market intelligence
and investment facilitation to regulatory guidance
and access to funding. Whether you are a seasoned
investor or a budding entrepreneur, we are here to
assist you at every step of your journey, ensuring
that you have the necessary tools to succeed in our
dynamic market.
Furthermore, we recognise the importance
of sustainable development in today’s world.
Mpumalanga Province prides itself on its
commitment to environmental stewardship,
social responsibility, inclusive growth and a just
energy transition to a carbon-free future. We strive
to strike a balance between economic progress
and the preservation of our natural heritage,
creating a future that is prosperous, equitable and
environmentally sustainable.
I encourage you, as potential investors, to explore
the wealth of opportunities that Mpumalanga
has to offer. Whether you are interested in our
booming mining sector, renewable energy projects,
agribusiness or tourism ventures, our province has
the potential to fulfil your aspirations.
Together, let us shape the future of
Mpumalanga’s business landscape and contribute
to the growth and prosperity of our province. I invite
you to engage with us, to collaborate, and to seize
the possibilities that lie before us.
Thank you for your continued support, and I look
forward to witnessing the transformative power of
business and investment in Mpumalanga. ■
3 MPUMALANGA BUSINESS 2023/24

CONTENTS
Mpumalanga Business 2023/24 Edition
Introduction
Foreword 8
Mpumalanga’s unique guide to business and investment.
Special features
Regional overview of Mpumalanga 12
The transition away from coal and other fossil fuels presents a huge
challenge but in Mpumalanga a series of innovative and bold partnerships is
tackling the task head on. South Africa’s biggest wind farm project has also
begun in the province previously known for coal and power stations.
Mpumalanga Trade and Investment Profile 15
The Mpumalanga Economic Growth Agency (MEGA) profiles the province’s
economy and outlines specific investment opportunities.
Going green 26
Mpumalanga is famously fertile, but it’s a different kind of green that is
changing the energy landscape of South Africa’s biggest power producer.
Economic sectors
Agriculture 38
The macadamia industry is growing fast.
Forestry and paper 39
An agroforestry project plans to convert unused land.
Mining 42
Energy and efficiency are key for the province’s miners.
Oil and gas 48
Sasol partnerships point to a new path.
MPUMALANGA BUSINESS 2023/24
4

Mpumalanga:
a world-class tourism
destination
A South African province that has everything a tourist could want.
Travellers should prepare to be astounded by the natural attractions
and experiences that are on offer in Mpumalanga. It is South Africa’s
most easterly province, endowed with an extraordinary richness
of natural beauty from canyons and waterfalls and with scope
for a huge diversity of adventures and experiences ranging from
encounter-rich game drives to paragliding. Mpumalanga offers a
wide array of activities for the active tourist, ranging from abseiling
to white-water-river rafting, with fly-fishing, paragliding, mountain
biking, bungee jumping, hiking, 4x4 trails and many outdoor
adventure activities in between.
Mpumalanga is undoubtedly the ultimate destination
in terms of wildlife experience. The Kruger National Park,
Manyeleti, Loskop Dam and numerous private game reserves
dotted throughout the region offer an exhilarating experience
that brings visitors closer to nature. Mpumalanga boasts a
conservancy area that is rich with diverse flora and fauna.
The Panorama Route offers spectacular landscapes with
attractions like the Blyde River Canyon (third-largest in the
world and known as a “green canyon” because of its subtropical
vegetation, pictured). The province also boasts majestic waterfalls
and high-altitude scenic drives leading to attractions like God’s
Window, Bourke’s Luck Potholes and the Three Rondavels.
Mpumalanga’s rich heritage is still largely unexplored
but more and more visitors are being exposed to fascinating
history. The many heritage sites in the area include the
Samora Machel monument near Mbuzini and the Barberton
Makhonjwa Mountains World Heritage Site (pictured),
boasting rock formations dating back more than 3.5-billion
years. Other sites not to be missed are the mining village of
Pilgrim’s Rest, the Highveld Heritage Route (which abounds
with adventurous tales from history), the stone circles of
Mpumalanga and Goliath’s footprint to name just a few.
Mpumalanga is rich in culture and boasts the Swazi, Ndebele
and Shangaan people with icons like Dr Esther Mahlangu
who has managed to preserve, package and export the
vibrant geometric art of the Ndebele globally.
Bird watchers can have a glimpse of more than 500
different birds endemic to the Kruger National Park or the town
of Chrissiesmeer, the centre of South Africa’s own Lake District
where four river systems start their journeys across the country.
The small tourist town of Dullstroom is referred to
as South Africa’s trout-fishing mecca. Mpumalanga is an
ideal sporting destination with several world-class golf
courses and the Mbombela Stadium that was built for
the FIFA World Cup in 2010 and has subsequently hosted
international football and rugby matches. Get off the
beaten track and explore the many other tourism offerings
of the Mpumalanga Province.
For more information:
Email: info@mtpa.co.za and reservations@mtpa.co.za
Website: www.mpumalanga.com
Facebook: Mpumalanga Tourism and Parks Agency | Twitter: @Mtpatourism | Instagram: @mpumalangatourism

Travellers should prepare to be astounded by the natural attractions
and experiences that are on offer in Mpumalanga. It is South Africa’s
most easterly province, endowed with an extraordinary richness
of natural beauty from canyons and waterfalls and with scope
for a huge diversity of adventures and experiences ranging from
encounter-rich game drives to paragliding. Mpumalanga offers a
wide array of activities for the active tourist, ranging from abseiling
to white-water-river rafting, with fly-fishing, paragliding, mountain
biking, bungee jumping, hiking, 4x4 trails and many outdoor
adventure activities in between.
Mpumalanga is undoubtedly the ultimate destination
in terms of wildlife experience. The Kruger National Park,
Manyeleti, Loskop Dam and numerous private game reserves
dotted throughout the region offer an exhilarating experience
that brings visitors closer to nature. Mpumalanga boasts a
conservancy area that is rich with diverse flora and fauna.
The Panorama Route offers spectacular landscapes with
attractions like the Blyde River Canyon (third-largest in the
world and known as a “green canyon” because of its subtropical
vegetation, pictured). The province also boasts majestic waterfalls
and high-altitude scenic drives leading to attractions like God’s
Window, Bourke’s Luck Potholes and the Three Rondavels.
Mpumalanga’s rich heritage is still largely unexplored
but more and more visitors are being exposed to fascinating
history. The many heritage sites in the area include the
Samora Machel monument near Mbuzini and the Barberton
Makhonjwa Mountains World Heritage Site (pictured),
boasting rock formations dating back more than 3.5-billion
years. Other sites not to be missed are the mining village of
Pilgrim’s Rest, the Highveld Heritage Route (which abounds
with adventurous tales from history), the stone circles of
Mpumalanga and Goliath’s footprint to name just a few.
Mpumalanga is rich in culture and boasts the Swazi, Ndebele
and Shangaan people with icons like Dr Esther Mahlangu
who has managed to preserve, package and export the
vibrant geometric art of the Ndebele globally.
Bird watchers can have a glimpse of more than 500
different birds endemic to the Kruger National Park or the town
of Chrissiesmeer, the centre of South Africa’s own Lake District
where four river systems start their journeys across the country.
The small tourist town of Dullstroom is referred to
as South Africa’s trout-fishing mecca. Mpumalanga is an
ideal sporting destination with several world-class golf
courses and the Mbombela Stadium that was built for
the FIFA World Cup in 2010 and has subsequently hosted
international football and rugby matches. Get off the
beaten track and explore the many other tourism offerings
of the Mpumalanga Province.
For more information:
Email: info@mtpa.co.za and reservations@mtpa.co.za
Website: www.mpumalanga.com
Facebook: Mpumalanga Tourism and Parks Agency | Twitter: @Mtpatourism | Instagram: @mpumalangatourism
MPUMALANGA
Manufacturing 50
New sectors are arising from the green economy.
Transport and logistics 54
The Maputo Corridor is performing well for logistics companies.
Tourism 56
A multi-pronged domestic promotion effort is underway.
ICT 58
A Mpumalanga coal mine is using 5G.
Education and training 60
Digital skills are coming to Mpumalanga.
Banking and financial services 62
Banking while shopping is becoming commonplace.
Development finance and SMME support 64
The transition to a green economy may bring opportunities.
MPUMALANGA
MPUMALANGA
BUSINESS
THE GUIDE TO BUSINESS AND INVESTMENT IN
MPUMALANGA PROVINCE
MPUMALANGA BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN MPUMALANGA
2021/22
Mpumalanga:
a world-class tourism
destination
THE GUIDE TO BUSINESS AND INVESTMENT IN
MPUMALANGA PROVINCE
A South African province that has everything a tourist could want.
JOIN US JOIN ONLINE US ONLINE
MPUMALANGA BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN MPUMALANGA
2018/19
MPUMALANGA
BUSINESS
THE GUIDE TO BUSINESS AND INVESTMENT
IN MPUMALANGA PROVINCE
2023/24 EDITION
2021/22 EDITION
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2018/19 EDITION
ABOUT THE COVER:
Top left, then clockwise: Mpumalanga’s tourist offering is unrivalled,
SA Tourism; Citrus, Meri Global Export; Mining, Sasol; Ngodwana Mill,
Sappi; Smelter, Yasin HM on Unsplash; A new campus, University of
Mpumalanga; Sunflower, Freepik.
MPUMALANGA BUSINESS 2023/24
6

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Visit mtnbusiness.co.za
Email getconnected@mtn.com

FOREWORD
Mpumalanga Business
A unique guide to business and investment in Mpumalanga.
Credits
Publishing director:
Chris Whales
Editor: John Young
Managing director: Clive During
Online editor: Christoff Scholtz
Designer: Tyra Martin
Production: Yonella Ngaba
Ad sales:
Gavin van der Merwe
Sam Oliver
Gabriel Venter
Vanessa Wallace
Shiko Diala
Administration & accounts:
Charlene Steynberg
Kathy Wootton
Sharon Angus-Leppan
Distribution and circulation
manager: Edward MacDonald
Printing: FA Print
The 2023/24 edition of Mpumalanga Business is the 14th issue of this
successful publication that since its launch in 2008 has established
itself as the premier business and investment guide for the province.
Introduced by a warm message of welcome to potential
investors from the CEO of the Mpumalanga Economic Growth Agency
(MEGA), 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 how
the province is leading the field in going green in various projects across several
sectors. Sector overviews give up-to-date news on what is going on in the key
sectors of the provincial economy, as well as giving a more general view of
conditions pertaining to that sector.
To complement the extensive local, national and international distribution
of the print edition, the full content can also be viewed online at www.
globalafricanetwork.com. Updated information on Mpumalanga is also
available through our monthly e-newsletter, which you can subscribe to online
at www.gan.co.za, in addition to our complementary business-to-business titles
that cover all nine provinces, our flagship South African Business title and the
new addition our list of publications, Journal of African Business, which was
launched in 2020. ■
Chris Whales
Publisher, Global Africa Network Media | Email: chris@gan.co.za
DISTRIBUTION
Mpumalanga Business is distributed internationally on
outgoing and incoming trade missions, through trade and
investment agencies; to foreign offices in South Africa’s
main trading partners around the world; at top national
and international events; through the offices of foreign
representatives in South Africa; as well as nationally and
regionally via chambers of commerce, tourism offices, airport
lounges, provincial government departments, municipalities
and companies.
Member of the Audit Bureau
of Circulations
COPYRIGHT | Mpumalanga Business is an independent publication
published by Global Africa Network Media (Pty) Ltd. Full copyright
to the publication vests with Global Africa Network Media (Pty) Ltd.
No part of the publication may be reproduced in any form without
the written permission of Global Africa Network Media (Pty) Ltd.
PHOTO CREDITS | Airlink; Canyon Coal; CHIETA; COFCO International;
ENERTRAG; Eskom; Exact; Julie Olivier; University of Mpumalanga;
Unsplash; Pan African Resources; Pexels; SAMAC; Sanral; Sappi; Seda;
SCATEC: Standerton Mills; Terragrn; UNESCO, Unsplash.
PUBLISHED BY
Global Africa Network Media (Pty) Ltd
Company Registration No: 2004/004982/07
Directors: Clive During, Chris Whales
Physical address: 28 Main Road, Rondebosch 7700
Tel: +27 21 657 6200 | Fax: +27 21 674 6943
Email: info@gan.co.za | Website: www.gan.co.za
ISSN 2222-3274
DISCLAIMER | While the publisher, Global Africa Network Media (Pty)
Ltd, has used all reasonable efforts to ensure that the information
contained in Mpumalanga Business is accurate and up-to-date, the
publishers make no representations as to the accuracy, quality,
timeliness, or completeness of the information. Global Africa Network
will not accept responsibility for any loss or damage suffered as a result
of the use of or any reliance placed on such information.

Kruger Lowveld Chamber
of Business and Tourism
The voice of business in Ehlanzeni.
As the official representative body of business and tourism in
the Kruger Lowveld (Ehlanzeni District), our main mandates
are to promote the region as a tourism and investment destination,
to provide a diverse suite of networking and marketing
opportunities for our members, and to represent and speak
on behalf of the business and tourism community of our area. We do
this by building and maintaining meaningful relationships with all
spheres of government as well as like-minded organisations, and by
acting as liaison between these entities and the business community.
KLCBT’s president is Professor David Mabunda (pictured).
Area of operation
The Kruger Lowveld covers the Ehlanzeni District of Mpumalanga,
including the following local municipalities: City of Mbombela, Thaba
Chweu, Nkomazi and Bushbuckridge, as well as the southern part
of Kruger National Park and the surrounding private nature reserves.
Member benefits
Listing on website, Pay-to-Play participation in various marketing
services and projects, weekly newsletter, invitations to all KLCBT
events, advocacy and representations made by KLCBT on behalf of
members, access to preferential arrangements negotiated by KLCBT
with service providers, brochure display at Crossing Centre office,
various sponsorship options, access to tender information. We are
actively involved in the following advocacy campaigns:
Service delivery:
Public participation in various forums where government engages
with stakeholders regarding budgets, planning and legislation.
Promote home-grown businesses through education processes,
research, maintaining a database, lobbying for stricter regulations
Contact details
Physical address: KLCBT House, Crossing Centre, Nelspruit
Postal address: Private Bag X 11326, Nelspruit 1200
Tel: +27 13 755 1988 Fax: +27 13 753 2986
Email: business@klcbt.co.za and tourism@klcbt.co.za
Website: www.klcbt.co.za
Professor David Mabunda
on large shopping chains,
engaging large chains to buy
local and to spend their CSI
budgets locally.
Local Economic Development:
We are assisting with
incubation in seven main
corridors, mainly adding additional
tourism products.
Anti-corruption: Several
successful initiatives reduced
roadside corruption.
Water: Bulk-water supply faces
a future crisis and lobbying for
the increase of storage capacity
is beginning to show success.
Roads and public attractions:
Require upgrades and
investment.
Safety and security: A concern
for all regions in SA. ■
9
MPUMALANGA BUSINESS 2023/24

MESSAGE
Ensuring success for local businesses
in all spheres
By Kagiso Moncho, General Manager: Northern Region, MTN Business
addition to expanding our network, MTNSA is
investing R1.5-billion to ensure availability and
resilience in the face of persistent loadshedding.
The MTN network is at the heart of all our ICT
solutions, enabling organisations of all sizes and
from all sectors to continue growing. Augmented
by the ongoing rollout of our 5G network, our
comprehensive solution stack helped public
and private sector organisations enhance their
operations over the past year, and 2023 has already
seen local companies using technology to find
new ways to do things to accommodate for the
challenges they are facing in their industries.
When it comes to South Africa’s
economic growth, most people
don’t think of the Northern Region.
However, Mpumalanga is home to
some of the country’s most vital industries. From
mining, to manufacturing, agriculture, the bulk of
our power infrastructure, Mpumalanga helps keep
the country running effectively while producing
around 7.6% of our GDP.
Unfortunately, our region has its fair share of
challenges, but MTN is proud to be able to say
that we are actively investing in solutions that
we hope will help overcome some of them. In
Network improvements
The improvements we are making to our network
– and through those, to all of our offerings – are
the latest step towards achieving MTN’s Ambition
2025: To provide leading digital solutions for
Africa’s progress. As an important region that is
part of the six that make up MTN South Africa’s
focus areas, Mpumalanga is front and centre of
how we are approaching the digital future.
As MTN’s 5G network and IoT ecosystem
grows, this province will come to be a technology
leader. Already, local mines and farms are looking
at different ways that sensor-connected systems
can help make them more efficient and we are
leveraging our capabilities and partnerships to
help them create roadmaps to achieve their goals.
SMMEs, which are the bedrock of South Africa’s
economic growth, are also turning to technology
to stay competitive. We believe that SMMEs should
have access to the same kind of support that large
organisations do, and MTN is proud to be assisting
MPUMALANGA BUSINESS 2023/24
10

MESSAGE
local SMMEs with their technology requirements,
whether that is access to affordable connectivity
solutions, cloud services like Microsoft Teams and
Office 365, or access to digital financial services.
MTN has been helping facilitate payments
in Mpumalanga for many years, providing small
businesses with an easy way to send and receive
money. Mobile Money continues to grow, with
millions of people in the region using it on a daily basis.
When the going gets tough, the tough get our
support
MTN has long been the supplier of choice for the
public sector in the Mpumalanga Province, and our
focus will remain on helping government agencies
improve their service delivery in 2023. We already have
existing long-term relationships with the Department
of Education and the Department of Health, along
with many municipalities, and are looking forward to
growing those partnerships in the future.
We have implemented plans to enable
better access to connectivity in rural areas,
further assisting service delivery mandates in
the Mpumalanga Province, not to mention
helping more people access the tools they need
for modern connected life. To that end, we have
ramped up investment into preventative measures
to ensure the resilience of the network.
In addition to loadshedding, the MTN network
has to contend with the threats of vandalism and
copper theft. We have therefore taken a holistic
approach to improving network availability.
This includes investment into, and deployment
of, additional backup battery and generator
capacity, as well as power contingencies such
as 24x7x365 monitoring and response to ensure
there is no downtime. MTN has also implemented
software-defined power-saving features on base
stations during higher stages of loadshedding to
ensure 100% availability.
MTN is also embarking on strategic and tactical
plans to reduce reliance on the Eskom power
grid so that future bouts of loadshedding won’t
impact service availability. These plans include
the implementation of bespoke solutions that
are less reliant on traditional network topologies,
collaboration with strategic partners to offer
additional resilience and increased network
capacity to cater for the increase in demand during
loadshedding periods. We are also accelerating fibre
distribution and optimising existing fibre routes.
As local businesses continue to deal with
the impact of loadshedding, not to mention
having to find solutions to help them stay
ahead in a challenging economic environment,
MTN is proud to be able to provide the support
and relief they need to remain competitive.
Mpumalanga will continue to be strong a focus
area for us in the year ahead, and a long time
to come. This is why our local team, led by Basil
Ntlatleng, is dedicated to enabling Mpumalanga’s
business community in the face of ever-changing
consumer and market trends.
Meet Basil Ntlatleng
Boasting extensive cross-functional business
and technology experience in a fast-moving
industry with rapidly changing business
requirements and technologies, as well as
experience in servicing private and public
sector customers locally and internationally,
Basil Ntlatleng has over 20 years’ experience
within the Information and Communications
Technology (ICT) sector in Sales and Regional
Management, Business Development and Team
Leadership across the globe.
Basil is driven to help his team meet and
exceed customer-acquisition and revenuegrowth
targets by keeping the company
competitive and innovative. He is committed
to gaining a deep understanding of customer
needs, expectations and pain points to optimise
business growth. With ever-changing consumer
and market trends, he steers diverse operational
areas and provides strategic solutions to complex
organisational challenges across Large Enterprise,
Public Sector and SMME as well as MTN’s Branded
Retail Channel, BRC. ■
Email: Basil.Ntlatleng@mtn.com
11 MPUMALANGA BUSINESS 2023/24

A REGIONAL OVERVIEW OF
MPUMALANGA
PROVINCE
The Sand River flows through the Sabi Sand Nature Reserve before joining the Sabie River in the Kruger
National Park. Credit: Julie Olivier
The transition away from coal and other fossil fuels presents a
huge challenge but in Mpumalanga a series of innovative and bold
partnerships is tackling the task head on. South Africa’s biggest
wind farm project has also begun in the province previously known
for coal and power stations.
By John Young
Partnerships are springing into being in every
sector of the economy. Whether they are
between government agencies, research
institutes or between local and international
companies, collaboration is all the rage.
And the province of Mpumalanga is leading
the way. With Mpumalanga’s economy being so
strongly geared towards coal (in mining and for
energy generation) it makes sense that actors in a
variety of sectors should be finding ways to work
together to transition to a greener future.
At national level, President Ramaphosa was
an invited guest in June 2023 to the Summit for a
New Global Financing Pact in Paris, partly at least
because South Africa is partnering with several
European countries and international institutions
in green financing arrangements. Various other
countries are taking their lead from the Just Energy
Transition Partnership whereby South Africa will
get $8.5-billion in financing provided by France,
Germany, the United Kingdom, the United States
and the European Union.
Separate to that deal, the prime ministers of the
Netherlands and Denmark came to South Africa
to sign an agreement to start a green hydrogen
fund to be known as the SA-H2. Concession
funding from the Netherlands will also be made
available for water and energy infrastructure while
MPUMALANGA BUSINESS 2023/24
12

SPECIAL FEATURE
Mpumalanga’s Grootvlei power station, earmarked
for closure or conversion, will be the site of a pilot
project focussed on growing food in greenhouses,
hopefully providing jobs for those who lose their
jobs related to coal.
Sasol is engaging in new partnerships with
increasing frequency, as outlined in some detail
in the Oil and Gas sector overview in this journal.
From green hydrogen to sustainable aviation fuel
(SAF), South Africa’s biggest chemicals and energy
company is signing agreements with Germans
and Danes while cooperating with entrepreneurial
technical startups out of Oxford University.
The field is ripe for innovation and partnerships are
speeding up the process of discovery. MTN, Huwaei
and Minetech Smart Mining are working together in
a 5G pilot project at an Mpumalanga coal mine.
Even in winding down old resources,
partnerships have been chosen as the preferred
method. A Mine Water Coordinating Body (MWCB)
has successfully been launched to help manage
the after-effects of the closure of mines and power
stations. Many of Mpumalanga’s coal-fired power
stations are either in the process of being closed
or will shortly be shut down and the same is true
of some coal mines that have reached the end of
their lives. Eskom, together with mining houses
Exxaro, Glencore and Thungela Resources, formed
the MWCB to address environmental and socioeconomic
challenges that might arise.
Issues such as water also fall under the ambit of
a broader mine-industry related coalition known
as the Impact Catalyst which has been launched
in Mpumalanga.
Local green moves
The Provincial Government of Mpumalanga has
established the Mpumalanga Green Cluster Agency
to bring together government, academia and
industry to create the environment for businesses
to develop in a green economy.
The Cluster, an initiative of the Mpumalanga
Department of Economic Development and
Tourism with the support of GreenCape and
the Deutsche Gesellschaft für Internationale
Zusammenarbeit (GIZ), has joined the International
Cleantech Network, a group that has 15 000
businesses affiliated to it across the globe.
National utility Eskom is also moving into the
new era, partly through a process whereby the entity
will be broken into three more competitive units, but
more immediately through the announcement of 18
winning bids from independent power producers
(IPPs) for renewable projects on Eskom land, 4 000ha
of which the utility has made available for this first
phase. Eskom owns 36 000ha in the province. A total
of 1 800MW will become available to the grid and
it will be cheaper to transmit because the solar or
wind plants will be right next to the existing Eskom
transmission lines.
Ten coal plants are due to be closed by
2040, with four Mpumalanga plants (Hendrina,
Grootvlei, Camden and Komati) first in line. Eskom is
undertaking studies to assess the potential impact
on local communities of these closures. Options to
get these plants producing energy again include gas,
biomass and hydrogen but it is possible they might
be used for something quite different. Eskom wants
to be a net-zero company by 2050.
National government’s Renewable Energy
Independent Power Producer Procurement
Programme (REIPPPP) has seen the investment into
this totally new sector of more than R200-billion
since 2012 and South Africa is now home to 112 IPPs,
whereas just 12 years ago there were fewer than 40
in Sub-Saharan Africa.
The relaxation by national government of the
rules regarding setting up a power plant of 100MW
or less is well suited to the requirements of big
timber-processing companies such as Sappi and
PG Bison and all the large mining concerns that are
active in Mpumalanga. Sappi is a partner in a 25MW
biogas energy facility at it Ngodwana Mill.
Investment options
Several infrastructure investment projects in the
tourism sector have been put forward by the
Mpumalanga Economic Growth Agency (MEGA).
There is a special focus on BRICS countries and the
province was glad to welcome the announcement of
a new flight into Kruger Mpumalanga International
Airport in 2022 by the tourist division of Lufthansa,
Eurowings Discover. The TRILAND partnership with
Eswatini and Mozambique is another avenue, as
is the collaboration with KwaZulu-Natal, Eswatini,
Mozambique and the Seychelles.
13 MPUMALANGA BUSINESS 2023/24

The University of Mpumalanga is offering degrees
relevant to its citizens as it expands.
MEGA is an equity investor in a number of
Mpumalanga concerns, including Afrimat, Highveld
Fruit Packers, Kangwane Anthracite, Loopspruit
Winery and Tekwane Lemon Farm.
In the Nkangala District Municipality, a publicprivate
partnership is due to deliver a hotel and
conference centre in the town of Middelburg in
the Steve Tshwete Local Municipality. It may seem
ironic that R350-million is to be spent on a Radissonbranded
hotel in the aftermath of Covid-19 but
conferences and tourism will return.
Elsewhere, mining and timber companies are
making large investments in increased production
or in extending the life of mines.
A major concern for provincial planners
is to diversify the economy and to grow the
manufacturing sector. The Mpumalanga Economic
Growth and Development Path (MEGDP)
identifies beneficiation, agro-processing and the
development of value chains as priorities. Various
industrial parks are planned which will focus on
agriculture and forestry, mining and metals and
petrochemicals. An International Fresh Produce
Market in Nelspruit and the planned Nkomazi SEZ
(Special Economic Zone) are other priorities.
Steel and associated manufacturing remains
one of the province’s strong suits and Mpumalanga
has rich and varied mineral resources and fertile
soil that support diverse farming operations,
agriprocessing and forestry. The province also hosts
large companies in the manufacturing sector such
as Middelburg Ferrochrome and the Manganese
Metal Company.
The province’s rich agricultural produce is used
by companies such as McCain, Nestlé and PepsiCo
and there are also pulp and paper plants (Sappi
and Mondi), with PG Bison set to start producing
more than 1000m³/d per annum at its Mkhondo
particleboard plant after two investment injections
of R600-million (on a press and forming line) and
R560-million (on a front-end dryer).
York Timbers is another forestry company and
the sugar mills and refinery of RCL Foods (formerly
TSB Sugar) along with fertiliser facilities and textile
manufacturing concerns are all contributors to the
provincial economy.
The southern half of the eastern limb of the
platinum-rich Bushveld Igneous Complex runs
south towards the towns of Lydenburg and
Machadodorp. Deposits of chromite, magnetite and
vanadium in this area are the basis of the ferro-alloy
complex in Witbank-Middelburg and Lydenburg.
The town of eMalahleni is the centre of the
coal industry. Other minerals found in the province
include gold, platinum-group minerals, chromite,
zinc, cobalt, copper, iron and manganese.
Middelburg is home to Columbus Stainless,
South Africa’s only producer of stainless steel, and
several big engineering works. It is about 130km
from Pretoria and less than three hours’ drive from
the Malelane Gate of the Kruger National Park.
The Kruger National Park remains the province’s
most-visited asset but the decision by UNESCO to
afford World Heritage Site status to the Makhonjwa
Mountains near Barberton will boost geological
tourism to the province and supports the efforts of
the province to diversify its offerings. Major projects
to improve tourist experiences are underway at
the Graskop Gorge (where a transparent lift takes
tourists into the depths of the gorge), a Skywalk is to
be built at God’s Window and a cable car is planned
for Three Rondavels.
The international body’s decision has also
had the effect of expanding the curriculum at the
University of Mpumalanga. On the basis of the
UNESCO ruling, UMP has a new offering in geology
as part of a BSc degree. ■
MPUMALANGA BUSINESS 2023/24
14

THE PLACE OF THE RISING SUN
MPUMALANGA
TRADE & INVESTMENT PROFILE
MPUMALANGA IS OPEN FOR BUSINESS

WHY INVEST IN MPUMALANGA?
• 68% of land area in the province is used by agriculture
• Mpumalanga’s three biggest sectors are manufacturing, mining and agriculture
Mpumalanga’s diverse and resource-rich economy makes it one of the most
attractive trade and investment destinations in South East Africa.
A large, growing domestic market and excellent access, supported by worldclass
infrastructure, to the East African and Indian Ocean markets through
Maputo Port makes Mpumalanga an ideal investment location for export-driven
manufacturing and production.
Mpumalanga is one of South Africa’s most productive and important agricultural
regions and through strategic investments in the Mpumalanga International
Fresh Produce Market (MIFPM) and the Nkomazi Special Economic Zone (NSEZ)
the province is set to become a major force in food production and distribution.
Mpumalanga’s sophisticated and well-segmented tourism and hospitality
sector in a post-Covid world is ripe for investment and expansion.
Mpumalanga’s STRATEGIC LOCATION makes it
a valuable transport and logistics hub
Mpumalanga
UNIQUE SELLING PROPOSITION
• Abundant resources: minerals and agricultural produce
• Established manufacturing infrastructure: smelters,
petrochemicals, food processing, paper, sugar
• Strategic location, access to regional and
global markets
• Tourism hotspots: the iconic Kruger National Park,
world-class reserves, adventure tourism and new
UNESCO World Heritage Site
• Mpumalanga International Fresh Produce
Market (MIFPM)
• Nkomazi Special Economic Zone (NSEZ)
• The new University of Mpumalanga
• Support for Green Economy research and investment
A province in eastern
South Africa, bordering
the nations of Swaziland
and Mozambique
• Maputo Development Corridor enhances logistics
• Preferential access to lucrative EU market
• Proximity to South Africa’s economic heartland
• Access to regional SADC market: 360-million population
• Access to deepwater Port of Maputo
Capital City
Mbombela
(Nelspruit)
Population
4.5-million people
Main major towns
Ermelo
eMalahleni
Middelburg
Secunda
Airport Kruger Mpumalanga International Airport
MPUMALANGA’S ECONOMY
The provincial economy of Mpumalanga is exceptionally diverse.
Established industries in the province include Mining, Stainless
Steel, Petrochemicals, Pulp and Paper, Ferro-Alloys, Energy
Generation, Tourism, Agriculture and Agro-Processing.
Companies in these sectors include global giants in their
industries such as Sasol (energy and chemicals), Sappi
(paper, packaging, pulp and forests), Samancor Chrome
(ferrochrome), Sibanye-Stillwater and Glencore (mining).
AGRICULTURE 3%
COMMUNITY
SERVICE 19%
FINANCE
14%
TRANSPORT 6%
MINING 20%
TRADE 14%
MANUFACTURING
15%
ELECTRICITY 7%
CONSTRUCTION
2%
District GVA by district
38% 34%
Nkangala
Ehlanzeni
28%
Gert
Sibanda
The province’s commercial farmers are among the most efficient in the world,
exporting huge quantities of everything from citrus to macadamia nuts. Columbus
Stainless is the only stainless-steel manufacturer on the continent.
GOVERNANCE
The province has three district municipalities and 17 local municipalities. Several
agencies which promote the regional economy report to the Mpumalanga Provincial
Government. Large parts of the province comprises extensive rural villages that
form part of areas run by traditional authorities.
TRANSPORT
Two airports at Hoedspruit and Mbombela (Kruger Mpumalanga International Airport,
KMIA) plus many airfields. Extensive freight rail network, busiest in South Africa. N4
highway (Maputo Corridor) is an east-west spine of a highly-developed road system.

ABOUT MEGA
The Mpumalanga Economic Growth Agency (MEGA) is the official Economic
Development Agency for the Mpumalanga Provincial Government.
MEGA’s primary mandate is to foster the sustainable growth and development of Mpumalanga’s economy through
its operational activities of Trade and Investment Promotion, Development Funding, Equity Investments, and
Property and Infrastructure Development. The Agency remains accountable to the Mpumalanga Department of Economic
Development and Tourism (DEDT). MEGA is the foreign investor’s or trader’s first point of contact for doing successful
business in Mpumalanga Province. Through the Trade and Investment Promotion Division, the Agency provides a variety
of services to potential investors and trading partners.
PLANNING THE WAY FORWARD
National government has articulated a Nine-Point Plan which seeks to prioritise projects
that will tackle key economic issues. MEGA is aligned with the plan, which include issues
relevant to growing the provincial economy:
• revitalise agriculture and the agro-processing chain
• advancing mineral beneficiation
• implementing the Industrial Policy Action Plan (IPAP) effectively
• unlocking the potential of SMMEs, cooperatives and township and rural enterprises
• resolving the energy challenge
• stabilising the labour market
• upscaling private investment
• investment in science and technology, water and sanitation, transport
and broadband connectivity
The Maputo Development Corridor is South Africa’s leading
Spatial Development Initiative (SDI), linking Mpumalanga Province,
Gauteng Province and the Nkomazi Special Economic Zone with
the deepwater Port of Maputo in Mozambique. This efficient
corridor provides investors and exporters with good access to the
export markets of South East Africa, the Indian Ocean Rim and
Far East Asia. The Maputo Development Corridor comprises road,
SOUTH AFRICA
MEGA SERVICES
MEGA staff will go out of their way to make the process of investing in Mpumalanga
or starting a business in the province easy. MEGA is focussed on customer needs
and provides innovative solutions with a high level of service. Services include:
• Foreign Trade Promotion
• Investment Promotion
• Funding
• Property Management
and Infrastructure
Development
MAPUTO DEVELOPMENT CORRIDOR
Lydenburg
rail, Special Economic Zone, border posts, port and terminal
facilities. The corridor runs through the most highly industrialised
and productive regions of Southern Africa. The Corridor has been
extensively upgraded to international standards and links the
industrial heartland of South Africa to its nearest port in Maputo,
Mozambique, which is one of the fastest-growing countries in
South East Africa.
Sabie
MOZAMBIQUE
Middelburg
Belfast
Mbombela
Komatipoort
JOHANNESBURG
Carolina
SWAZILAND
MAPUTO

KEY SECTORS AGRICULTURE
Agriculture in Mpumalanga is responsible for 3% of the
province’s gross value added by region (GVA-R) and can
be divided into the following categories (see map, right).
AGRICULTURE
SUMMER CEREALS &
LEGUMES
MAIZE Maize meal
SOYA Meal, Edible oil
CANOLA Edible oil
SUNFLOWER Edible oil
TROPICAL &
SUBTROPICAL FRUIT
CANE SUGAR Sugar /
confectionery
CITRUS Juice & concentrate
MANGOES Dried, frozen,
juice & concentrates
LITCHIS Dried, frozen,
juice & concentrates
AVOCADOES Avocado oil
GUAVA Dried, frozen,
juice & concentrates
MACADAMIA NUTS
Processed & confectionery
Mpumalanga Province is one of South Africa’s most productive and
important agricultural regions and plays a key role in the export profile of
South Africa, primarily in fruit and nuts. The province’s economic diversity
extends into the agriculture sector where the natural topography of the
province divides this sector between the Highveld and Lowveld Regions.
The Highveld Region in the west of the province is at
an elevation of between 4 000 and 6 000 feet above
sea level. This allows for the large-scale and commercial
production of cereals and legumes like maize, soya,
canola and sunflower.
The subtropical region of the Mpumalanga Lowveld
plays a key role in the agricultural export profile of the
province, primarily in fruit and nuts.
Mpumalanga Province is one of the world largest
producers and exporters of citrus fruit. Duty-free
exports of South African citrus to the USA under the
African Growth and Opportunity Act (AGOA) reached a
peak of 91 000 tons in 2020 ($94.9-million) and are
expected to continue their strong annual growth as the
USA is still considered a premium market.
REGIONAL PRODUCE
Highveld
Lowveld
HIGHVELD: Summer cereals and legumes:
maize, soya, canola, sunflower.
Animal products: bovine meat, swine,
sheep and poultry.
LOWVELD: Subtropical and citrus fruits,
nuts and cane sugar.
Mpumalanga Province is the world’s largest
producer and exporter of macadamia nuts.
The province earned $207-million in exports in
2019, $76-million of this to the US. There have
been major new investments in processing
facilities in Mpumalanga.
Mpumalanga’s rich agricultural produce is
utilised by companies such as McCain, Nestlé
and PepsiCo.
9:1
Mpumalanga’s
ratio of commercial
farmers to
small-scale
farmers
KEY SECTORS FORESTRY
Forestry is a key driver for the development of Mpumalanga’s
rural economy and a major provider of job opportunities.
About 40% of SA’s sustainable forests are located in
Mpumalanga Province.
The industry comprises logging, saw-milling, wood products, wood board, pulp and paper as
well as specialised cellulose. Specialised cellulose is a sought-after natural, renewable fibre
with a wide range of uses in the textile, consumer goods, foodstuff and pharmaceutical
industries and is produced in large quantities at Sappi Ngodwana.
R9.5
billion
Amount invested
in the foresty
industry
PG Bison has recently invested R560-million in
a new front-end dryer for its particleboard plant
in Mkhondo (Piet Retief). The company is also
building a new medium-density fibreboard (MDF)
plant at its Mpumalanga plant.
SAFCOL/Komatiland is the state forestry
company with commercial and non-commercial
operations covering a land area of 187 320ha.
Sonae Arauco is a Portuguese investment. A
new entrant, local BEE company the FX Group, is
commissioning a greenfield particle board plant
in Lothair in the Gert Sibande District.
Mpumalanga has
processing
39plants
out of 148 in South Africa
MAIN EXPORTS
PULP
PAPER
SPECIALISED CELLULOSE
SAWN LUMBER
WOOD CHIPS
WATTLE EXTRACT
MAJOR COMPANIES
SAPPI
SAFCOL
SONAE ARAUCO
PG BISON
YORK TIMBERS
FX GROUP

KEY SECTORS MINING, MINERALS AND ENERGY
Mining is the province’s largest single sector, providing employment to 5.2% of the
province’s workforce and making up 20% of gross value added by region (GVA-R).
83%
of South
Africa’s
coal
production
Coal: 83% of South Africa’s coal production, 50% of national coal reserves, third-largest
coal-exporting region in the world. Coal is the lifeblood of provincial economy, fuelling 11
Eskom power plants, which produce 80% of South Africa’s electricity. Coal is Mpumalanga’s
single largest export product, shipping mainly to India and Pakistan.
Other minerals: Gold mining takes place in Evander, Pilgrim’s Rest and Barberton. Gold is the
second-largest export from the province. Platinum and chrome ore mining are located in the Steelpoort
and Burgersfort areas in the north of the province and make up part of the Bushveld Igneous Complex.
The mining services and technology industry is an important subsector in Mpumalanga. With over a
century of commercial mining operations in the province, homegrown technologies are now exported
around the globe.
National utility Eskom will spend R3.3-billion on the revival of the Matla coal mine. Exxaro Resources
will manage the project and do the mining while major companies such as DRA, Worley, Sandvik and
WBHO will also be involved.
Other companies engaged in expansion of life-of-mine projects are Pan African Resources and
Evander (Elikhulu tailings), Exxaro Resources (Leeuwpan) and South32, which is spending about
R4.3-billion at Klipspruit.
Platinum is an important mineral for the modern economy. Two Rivers is a joint venture between
Implats (46%) and African Rainbow Minerals which is located on the southern part of the eastern
limb of the Bushveld Igneous Complex, 35km south-west of Burgersfort in Mpumalanga.
Lydenburg is home to the Lion ferrochrome smelter that is a joint venture between Glencore
and Merafe Resources.
KEY SECTORS GREEN ECONOMY AND JET
Mpumalanga has historically been at the heart of the South
African energy and industrial complex and is still heavily
reliant on the mining and burning of fossil fuels.
The Mpumalanga Provincial Government has been proactive in exploring opportunities
in the Green Economy and pursuing a just transition to a low-carbon economy which
secures the future and livelihoods of workers and their communities.
Achieving such a just transition would require an integration of economic opportunities
in sectors outside of energy and mining.
A Just Energy Transition (JET) to a Green Economy presents the following opportunities:
• Renewable energy: solar, biomass, natural products
• Gas and associated industries
• Sustainable smart agriculture: environmentally-friendly
agriculture and agricultural processing
• Circular Green Economy: waste recycling, water reclamation, land rehabilitation
• Soft infrastructure: reskilling and institutional capacity-building for a
carbon-neutral future
• Hard infrastructure: investment and expertise are needed in urban
planning, water and waste management
• Building technologies: greener and more energy-efficient
• Transport and logistics: greener and more energy-efficient
Mpumalanga has
11
MINERALS
COAL Waste briquettes
GOLD JEWELLERY
CHROME
PLATINUM
IRON ORE
VANADIUM
MANGANESE
GRANITE Building cladding
& tombstone
CLAY Porcelain & ceramics
Electrical insulators
50%
of South Africa’s
national coal
reserves
ESKOM POWER
plants
Specific opportunities include:
• There are plans for the decommissioning
of 11 000MW of Eskom’s coal-fired capacity
by 2030. Opportunities
are presented by repurposing land.
• The vast new fields of natural gas found off
the coast of Mozambique could have a big
impact on the Mpumalanga economy.
• A Renewable Energy Development Zone
(REDZ) is planned for eMalahleni / Witbank
where coal jobs are at risk.

KEY SECTORS MANUFACTURING
Three primary pillars of the manufacturing sector in Mpumalanga account for more than
60% of the output of the manufacturing sector, which overall makes up 15% of gross
value added, regional (GVA-R).
MAIN EXPORTS
STAINLESS STEEL
Cutlery
Catering equipment
Surgical instruments
Automotive components
STEEL White & grey goods
Pipes & tubes
Wire
PETROCHEMICALS
Plastic products
Recycling plastics
Artificial rubber products
Paint & vanish
Inks & dyes
FOOD PROCESSING
Maize meal
Machinery
Frozen & dehydrated
VEGETABLES Preserves,
pickles & condiments
Nuts
PAPER Recycling
SUGAR Confectionery
MINING Machinery
and services
RENEWABLE ENERGY
Solar and biofuel
Biomass
Fuel, petroleum and chemical products are manufactured at the Sasol Secunda plant in Secunda, Gert Sibande
District. It is one of the world’s largest synthetic fuels facilities, producing 60-million litres of liquid fuel a day.
Products produced include petroleum, paraffin, jet fuel, creosote, bitumen and waxes.
The ferro-alloy and stainless-steel industries are based in the Nkangala District. Columbus Stainless in
Middelburg is Africa’s only producer of stainless-steel flat products. Samancor Chrome (Ferrometals),
the world’s second-largest ferrochrome producer, has two plants in Mpumalanga.
Agro-processing is mainly based in the Lowveld Region and consists of manufacturing forestry products
(pulp, paper and cellulose), sugar at the Selati RCL Foods plants in Nkomazi and processing subtropical fruit
and nuts.
The province’s flourishing macadamia nut industry has a number
of large processing facilities based around the provincial capital
Mbombela. Subtropical fruits like mango, banana, papaya and citrus
are processed into juice concentrate or dried for export.
There is a geographical divide in the manufacturing sector. Fuel,
petroleum and chemical production occurs in the southern Highveld
Region clustered around Sasol’s plants.
The northern Highveld area, including Middelburg and eMalahleni
(Witbank), is home to ferro-alloy, steel and stainless-steel concerns.
Creative thinking kicked in when Highveld Steel’s troubles reached
a tipping point. The 1 000ha property in Emalahleni has been
re-purposed as a multi-purpose site for industry and commerce.
Called the Highveld Industrial Park, the project promotes a wide
range of manufacturing enterprises.
In the Lowveld, agricultural and forestry products are processed
while Sappi’s giant mill is close to the company’s forests south-west
of the provincial capital, Mbombela.
KEY SECTORS TOURISM
The importance of tourism to the economy of Mpumalanga cannot be
overstated. The effect of the Covid-19 pandemic has been strongly felt.
Mpumalanga received only 340 000 international visitors in 2020, down from 1.6-million international visitors
in 2019. The key source countries were Mozambique, eSwatini, the USA, Germany, France and the UK.
Domestic tourism has steadily increased. The total tourist foreign direct spend (TTFDS) in Mpumalanga
for 2020 was R7.5-billion, down from over R21-billion in 2019. The sector accounts for 6% of gross value
added by region (GVA-R).
The announcement in 2022 by Eurowings Discover, a new division of Lufthansa, that it would start flying
three times a week to Mbombela from Frankfurt, via Windhoek, will give a certain boost to tourist numbers
.6
MILLION
Number of visitors
ANNUALLY pre-COVID-19
21billion
Rand value of tourist
spend in Mpumalanga…
before COVID-19
visiting Mpumalanga. The Kruger National Park is Mpumalanga’s most famous tourist asset and safaris and hunting
are major tourist attractions. The Manyeleti Reserve, a 23 750-hectare game reserve sharing a fenceless border
with the Kruger National Park, is operated and managed by the Mpumalanga Tourism and Parks Agency (MTPA).
God’s Window and the Blyde River Canyon Reserve are other provincial treasures attracting investment.
Business travel, including conferencing, adventure, heritage and cultural tourism, all hold huge growth potential
in Mpumalanga, but require investment in infrastructure and product development.
A hotel and conference centre project in Middelburg is making progress and should be completed in 2023.

INVESTMENT OPPORTUNITIES TOURISM
Selected Strategic High Impact Projects:
BOURKE’S LUCK POTHOLES HOTEL
This natural water wonder is a major tourism attraction in the
Mpumalanga Lowveld. This project presents an investment
opportunity for a five-star hotel and a top-quality restaurant.
Feasibility study: completed
Environmental Impact Assessment (EIA): commenced
Model: Joint Venture (JV), Build-Operate-Transfer (BOT)
Value: R100-million
BLYDE RIVER CANYON
CABLE CAR PROJECT
The Blyde River Canyon is the largest and deepest
green canyon in the world and offers a spectacular
opportunity to build a cable car transporting tourists
from the top of the canyon to the peninsula below.
Feasibility study: completed
EIA: commenced
Model: JV, BOT
Value: R500-million
GOD’S WINDOW SKY WALK
The project to build a “Sky Walk” – an income-generating
tourism attraction off the edge of the 700m God’s Window
cliffs – giving 360-degree panoramic views out and down
through a glass floor.
Feasibility study: completed
EIA: commenced
Investors: secured
Model: JV, BOT
Value: R100-million
3.7km
500+
13
Length of one of Eastgate Airport’s runways at
Hoedspruit, which doubles as an airforce base.
The other runway is 2.1km
Bird species recorded in the Kruger National Park,
including the Kori Bustard, Martial Eagle, Southern
Ground Hornbill and Lappetfaced Vulture
Nature reserves are run by the Mpumalanga
Tourism and Parks Agency and Kruger National
Park is run by SANParks

INVESTMENT OPPORTUNITIES PRODUCE MARKET
Selected Strategic High Impact Projects: Mpumalanga International Fresh Produce Market
MEGA is establishing a R1.2-billion fresh produce market facility
located in Mbombela, the Mpumalanga International Fresh Produce
Market (MIFPM). To date the province has invested an estimated
R540-million in the project.
Mpumalanga is one of South Africa’s most productive and important
agriculture regions. It is home to predominantly tropical and subtropical
crops and vegetables owing to its conducive climate. The tropical and
subtropical crops consist of avocado, banana, citrus, ginger, granadilla,
guava, litchi, macadamia nut, mango, papaya and pineapple.
The vegetables produced include potatoes, tomatoes, pumpkins,
sweet corn, onions, sweet potatoes, beetroot, carrots, green peas,
cauliflower, cabbages and green beans.
Site: The site is in Mbombela on a 248ha plot less than 10km
from the Central Business District. It is situated within the Maputo
Development Corridor (MDC), linking Mpumalanga, Gauteng Province
and the Nkomazi Special Economic Zone with the deepwater Port of
Maputo in Mozambique.
The market: The market will give local farmers access to local,
regional and international fresh produce markets and will aid in
ensuring food security for the region.
The infrastructure of the MIFPM will attract international as well as
the large domestic food retailers as a key processing and distribution
point. It will also secure Mpumalanga’s position in the regional export
market in fresh produce.
The market will offer:
• Open trading halls for fruit and vegetables
• A meat, fish and flower market
• Complementary cold storage, ripening facilities and pallet handling
• Processing facilities
• An export hall
• Bulk-breaking facilities for retail outlets
• Links with statutory organisations such as customs, PPEBC
and EuroGap
• Transport and logistics enterprises
• Shared collation and pack house facilities for SMMEs
• Commercial services including banks and restaurants
• A food bank for NGOs
Feasibility study: completed
EIA: completed
Bulk infrastructure: completed
Top structures: underway
Model: JV, BOT
Value: R1-billion
INVESTMENT OPPORTUNITIES NKOMAZI SEZ
Selected Strategic High Impact Projects: Nkomazi Special Economic Zone
The Nkomazi Special Economic Zone has been officially designated
and MEGA has been appointed to establish the entity.
SEZs are geographically designated areas set aside for specifically
targeted economic activities that are supported through special
tax incentives. An SEZ aims to be an economic development tool to
promote rapid economic growth by using various support measures
to attract targeted foreign and domestic investments and technology.
The main goal is to support the implementation of South Africa’s
industrial development programme.
Strategically positioned in the border town of Komatipoort,
the SEZ offers a multi-sector base of operations along the H
Maputo Development Corridor which provides exporters with
good access through Maputo Port to the export markets of
South East Africa, the Indian Ocean Rim and Far East Asia.
The Nkomazi SEZ will target investment from the
agriculture, agro-processing, nutraceuticals and fertiliser
production sectors, as having a strong focus on logistics and
trade services.
The NSEZ offers the investor a unique and incentivised
base of operations on the Maputo Development Corridor
running through the most highly industrialised and
productive regions of Southern Africa.
The Maputo Corridor is bound to develop even more as
the Maputo harbour improves its handling and scheduling
Recreation
capacity. In the event that a second rail line to Maputo to complement
the current rail link is developed, the shipment of mining products
and agricultural produce to and from the Limpopo and Mpumalanga
provinces will increase. MPUMALANGA – NKOMA
The NSEZ is set to provide One-Stop-Shop services, incentives,
innovation platform, a competitive and transparent market
environment, and timeous and efficient responses to investors’
market requirements.
Manufacturing
Convenience Retail
Accommodation
Centralised Facilities
Logistics

FOREIGN TRADE
Mpumalanga is proving to be a key player in the local
economy as well as internationally.
TOP 10 EXPORTS 2022
1. Ferro Alloys R 35 billion US$ 1.9 billion
2. Coal R 16 billion US$ 913 million
3. Stainless Steel R 9.1 billion US$ 504 million
4. Platinum R 6.9 billion US$ 385 million
5. Gold R 5.8 billion US$ 322 million
6. Macadamia Nuts R 4.1 billion US$ 229 million
7. Chrome Ore R 2.4 billion US$ 138 million
8. Manganese R 2.3 billion US$ 129 million
9. Fuel Wood R 1.5 billion US$ 85 million
2022/03/23
10. Citrus Fruit R 576 million US$ 32 million
ZI SEZ
TOP 10 EXPORT MARKETS 2022
1. Mozambique R 21 billion US$ 1.6 billion
2. China R 9.5 billion US$ 529 million
3. United States R 8.5 billion US$ 471 million
4. Japan R 5.9 billion US$ 331 million
5. Korea R 5.5 billion US$ 308 million
6. Netherlands R 5.2 billion US$ 291 million
7. India R 3.8 billion US$ 210 million
8. eSwatini R 3.2 billion US$ 180 million
9. UAE R 3.2 billion US$ 178 million
10. Indonesia R 2.4 billion US$ 135 million

THE PERFECT LAUNCH PAD FOR AFRICA
The African Continental Free Trade Area could revolutionise African trade:
Mpumalanga is the perfect launch pad for manufacturers and exporters.
start of trading under the AfCFTA Agreement
from the beginning of 2021. Further meetings
have been held to take the process forward in
terms of details and practical measures.
The nations covered by AfCFTA have an
estimated combined GDP of $2.5-trillion
and a population of over 1.2-billion.
In terms of population, it will be the largest free
trade area in the world. The AfCFTA envisages the
Instrument of ratification deposited
Parliamentary approval received or pending
AfCFTA Agreement signed
AfCFTA Agreement not signed
The African Continental Free Trade Area (AfCFTA) has been agreed
on by almost all African nations and holds the potential to change
the nature and size of trading on the continent in profound ways.
Mpumalanga Province, as a strategically-positioned
region with a dynamic manufacturing sector and excellent
logistics and infrastructure, provides the perfect launch
pad for investors looking to take advantage opportunities
that will be created by the AfCFTA Agreement.
The burgeoning African middle-class is a global trend that
economists are carefully watching. As more sophisticated
infrastructure is rolled out across Africa, having a base with
good connections to ports and with good air, road and rail
connectivity will be vital. Mpumalanga has all of that, and more.
An Extraordinary Summit of the AU Assembly on the AfCFTA
was held in December 2020. The Assembly approved the
gradual elimination of tariff and non-tariff barriers
to trade on the continent. In terms of export-driven
manufacturing and production Mpumalanga is well
positioned to take full advantage of the economic
promise of the AfCFTA and attract investment, thereby
helping to increase income levels and reduce poverty.
Mpumalanga is served by the Maputo Development
Corridor (MDC), which is South Africa’s leading Spatial Development
Initiative (SDI), linking Mpumalanga, Gauteng Province and the
Nkomazi Special Economic Zone with the deepwater Port of
Maputo in Mozambique. This strategic location gives Mpumalanga
a particular advantage with respect to logistics and market access.
Improving and increasing intra-African trade will change the
way countries do business and include a much broader range
of countries and products into the global market. Foreign direct
investment is expected to grow rapidly, as investment opportunities
such as those on offer in Mpumalanga attract the attention of
international companies and institutions. New sectors, such as the
Green Economy which Mpumalanga is actively preparing for, will
grow exponentially on the back of a continental system of trade
with fewer barriers and more connections than ever before.

AfCFTA FAST FACTS
Africa’s exports could increase by $560-billion and some
experts predict that continental business and consumer
spending could reach $6.7-trillion by 2030.
$450
BILLION
AfCFTA could
boost regional income
by 7% or $450-billion
(Source: the World Bank)
AfCFTA could lift
30
-million
people
out of poverty, according
to the World Bank
AfCFTA
could
boost
10%
wages
by up to
* World Bank estimate
ABOUT SADC
South Africa is a member of one of Africa’s
oldest regional organisations, the 16-member
Southern African Development Community,
(SADC). This enables duty-free trade within
a growing market of more than 360-million
people. All goods shipped under SADC
Certificate of Origin receive duty-free status.
Duty-free trade
within a GROWING MARKET
of more than
360million
people

Going green
Mpumalanga is famously fertile, but it’s a different kind of green that is changing
the energy landscape of South Africa’s biggest power producer.
Seriti Green is to construct a giant windfarm complex in Mpumalanga.
Credit: Appolinary Kalashnikova on Unsplash
A
wind farm under construction in Mpumalanga in the
heart of coal-mining country is an outstanding example
of thinking outside the box. The project will use renewable
energy to provide power to coal mines.
All over Mpumalanga, companies, agencies, government
departments and researchers are finding ways to go green.
The renewable energy subsidiary of coal-mining company
Seriti Resources, Seriti Green, is to build a 150MW wind farm that
will allow the company to receive 75% of the energy it needs to run
its coal mines from renewable sources. This first phase of a larger
project is expected to start producing power in 2025.
Seriti Green acquired a majority share of renewable energy
asset manager Windlab in December 2022 for R892-million. The
wind farm will cost R4-billion, with R1.5-billion allocated to new
grid infrastructure. The grid infrastructure will be partly owned by
national utility Eskom.
A power-purchase contract has been signed between the two
Seriti entities, environmental authorisation has been granted by
the Department of Forestry, Fisheries and the Environment and
Standard Bank and RMB have signed the financing agreements.
Seriti Green has its eyes on
developing 3 000MW of wind
and solar in the next ten years.
Seriti’s first wind farm is part of a
larger plan for the area between
Bethal and Morgenzon in the
Gert Sibande District Municipality,
namely a 900MW renewable
energy cluster comprising both
wind and solar power.
This will be known as the
Ummbilla Emoyeni Renewable
Energy Farm. Given the strategic
importance of the coalfields and
power stations of Mpumalanga, the
Department of Public Works and
Infrastructure has designated the
project a Strategic Integrated Project.
Once the larger project is
fully developed, there will be
MPUMALANGA BUSINESS 2023/24
26

SPECIAL FEATURE
111 turbines, each of which will require two days of scheduled
maintenance every year. Venn stated that his company would invest
between R20-billion and R30-billion into the greater Ermelo region
over the next five years. It is in these statistics that it becomes clear
that the transition to clean energy will indeed create new jobs.
Mpumalanga advantage
One of South Africa’s most successful investment projects, the
Renewable Energy Independent Power Producer Procurement
Programme (REIPPPP), suffered a setback in the period between
2015 and 2021. It has since been relaunched and investors are
queuing up to take a stake in greener energy but South Africa
has now come up against the constraints of the national grid. In
the most recent round of bidding for projects, the Northern Cape
received fewer projects than it otherwise would have if the national
grid was keeping up with increased generation potential of new
projects. This gives Mpumalanga a comparative advantage.
With most of South Africa’s power stations located in
Mpumalanga, the issue of grid capacity does not arise.
Eskom has been one of the first entities to react to this
opportunity to build newer, greener facilities. In July 2022, Eskom
announced 18 winnings bids from independent power producers
(IPPs) for renewable projects on Eskom land, 4 000ha of which the
utility has made available for this first phase. Eskom owns 36 000ha
in the province. A total of 1 800MW will become available to the
grid and it will be cheaper to transmit because the solar or wind
plants will be right next to the existing Eskom transmission lines.
Ten coal plants are due to be closed by 2040, with four
Mpumalanga plants (Hendrina, Grootvlei, Camden and Komati) first
in line. Eskom is undertaking studies to assess the potential impact
on local communities of these closures. Options to get these plants
producing energy again include gas, biomass and hydrogen but it
is possible they might be used for something quite different. Eskom
wants to be a net-zero company by 2050.
The relaxation by national government of the rules regarding setting
up a power plant of 100MW or less is well suited to the requirements of
big timber-processing companies such as Sappi and PG Bison and all the
large mining concerns that are active in Mpumalanga.
Wind is viable
The size and scope of Seriti Green’s project may come as a surprise
to people who had written Mpumalanga off as a potential venue
for wind power. There was no surprise for ENERTRAG South Africa,
however, who have been testing the province’s wind resources
since the company first arrived in the country in 2017.
The data collected from multiple meteorological measurement
masts (met masts) confirm that the province has enough wind to
make wind farms viable. The
wind may not be as strong as
that experienced in coastal
provinces, but it is steady.
Peter Venn, Seriti Green’s CEO,
told Business Day in 2023 that
the very large turbines that his
company will use will operate
at a capacity of about 40%,
significantly better than solar,
which operates below 30%.
ENERTRAG South Africa
makes the point that the
current environment is creating
an active offtakers market
among Energy Intensive Users
(EIUs) and no place is better
equipped to service that market
and to facilitate wheeling than
the Mpumalanga province,
eMalahleni in particular.
Wheeling is getting power
from a generator to an enduser
located in another area
through existing distribution or
transmission networks.
A meteorological measurement
mast for collecting wind data.
Credit: ENERTRAG
27
MPUMALANGA BUSINESS 2023/24

SPECIAL FEATURE
Partnerships
Arising out of COP26, South Africa was the first beneficiary of the
feeling that arose that developed countries who had become rich
by burning fossil fuels have a responsibility to help developing
countries wean themselves off oil and gas. The Just Energy
Transition Partnership is an agreement whereby Germany, France,
the US, the UK and the European Union (the International Partners
Group) will mobilise finance to help South Africa decarbonise.
A Just Energy Transition Partnership Investment Plan (JET-IP) has
subsequently been published and bodies such as the Presidential
Climate Commission and National Treasury are engaged with the plan.
Another international partnership was announced in June
2023 when the prime ministers of the Netherlands and Denmark
visited South Africa to launch a $1-billion green hydrogen fund,
SA-H2. Seeded with an initial amount of $250-million from Invest
International, Netherlands, the fund is also supported by the
Development Bank of Southern Africa, the Industrial Development
Corporation and Sanlam.
South Africa has already designated nine green hydrogen projects
as Strategic Integrated Projects. HyShiFT is a project developing
sustainable aviation fuels in Secunda, which is home to several Sasol
plants. Sasol, South Africa’s biggest energy and chemicals company,
is part of a consortium that includes Linde and ENERTRAG.
While there is plenty of activity at national and international
level, something green is also stirring at provincial level. The
Provincial Government of Mpumalanga has established the
Mpumalanga Green Cluster Agency to bring together government,
academia and industry to create the environment for businesses to
develop in a green economy.
The Cluster is an initiative of the Mpumalanga Department
of Economic Development and Tourism with the support of
GreenCape and the Deutsche Gesellschaft für Internationale
Zusammenarbeit (GIZ).
Among the issues the Cluster is looking at are carbon capture
and storage, hydrogen and clean aviation fuel. The published
opportunity briefs (the first in a series that will be expanded)
cover water, renewable energy and sustainable agriculture. Each
of the reports looks at the funding environment within that
subsector, together with a market overview, key developments and
achievements, the most important participants already active in the
sector, legislation and regulation and market opportunities.
The Cluster is a member of the International Cleantech
Network, a global network of more than 15 000 international green
businesses. The Mpumalanga Green Cluster Board Chairperson is
Dr Thembakazi Mali, the Senior Vice President for Research and
Technology at Sasol.
Impact Catalyst Mpumalanga was launched in November 2022.
An initiative of two big resources companies, Anglo American
and Exxaro, the Council
for Scientific and Industrial
Research (CSIR) and World
Vision, Impact Catalyst aims
to drive large-scale socioeconomic
development
initiatives through publicprivate
partnerships.
With Mpumalanga being
a province with the largest
number of South Africa’s
power stations, the focus is
naturally on issues such as
decarbonisation and switching
to cleaner energy but doing so
in a way that promotes a Just
Energy Transition.
Impact Catalyst will align
with the JET-IP and with
Eskom’s JET plan. The provincial
government’s MP 2945 Vision
is similarly aligned with the
broader national goals.
Impact Catalyst Mpumalanga
will support the conversion of
power generation infrastructure
and sustainable mine closures
while promoting environmental
management for agricultural
development and exploring
re-industrialisation and
manufacturing opportunities.
Helping schools and
communities get access to digital
resources will also form part of
the programme.
Impact Catalyst was
previously rolled out in Limpopo
and the Northern Cape. ■
MPUMALANGA BUSINESS 2023/24
28
Cleaner aviation fuel is the goal of
a major project in Secunda. Credit:
Pexels/Pixabay

INNOVATION - FORESIGHT - EXPERTISE
Turning renewable sources into energy
and ideas into reality.
enertrag.co.za

SPECIAL FEATURE
Establishing a business
in South Africa
South Africa has eased the barriers to doing business for locals as well as
international companies and individuals.
new legislation, no new Close Corporations can
be created but CCs can convert to companies.
Registration of company
The company must be registered with the
Companies and Intellectual Proper ties
Commission (CPIC) in Pretoria within 21 days of
the company being started. There are a range of
administrative procedures that need to be fulfilled.
With the transition to renewable energy well underway,
several power stations due for closure are going to
become the sites of solar farms as they are already
Autobody repair is a thriving subsector. Credit: connected the transmission grid. Credit: SCATEC Seda
South Africa has a sophisticated legal,
regulatory and banking system. Setting
up a business in South Africa is a relatively
straightforward process with assistance
being offered by organisations such as the
Department of Trade, Industry and Competition
and provincial investment agencies like the
Mpumalanga Economic Growth Agency (MEGA).
South African law regulates the establishment
and conduct of businesses throughout the
country. Tax, investment incentives, regulations
governing imports, exports and visas are uniform
throughout the country.
The particular environment varies from
province to province with regard to the
availability of human and natural resources, the
infrastructure and support services, business
opportunities and the quality of life. In this
respect, MEGA can offer specific advice about the
business environment in the province.
Business is regulated by the Companies Act
and the Close Corporation Act, which cover
accounting and reporting requirements. Under
Bank account
A business bank account must be opened in the
company’s name with a bank in South Africa.
Registration with the receiver of revenue
• As a Provisional Taxpayer
• As a VAT vendor
• For Pay As You Earn (PAYE) income tax payable on
money earned by employees
• For Standard Income Tax on Employees
Registration with the Department of Labour
Businesses employing staff will have to contact the
Department of Labour regarding mandatory contributions
to the Unemployment Insurance Fund
(UIF). Register with Compensation Commissioner
for Compensation Fund. Files with the Compensation
Fund (in the Department of Labour) for
accident insurance (Workmen’s Compensation).
Registration with the local authority
Relevant only to businesses dealing in fresh
foodstuffs or health matters.
Other procedures
• Checking exchange control procedures (note
that non-residents are generally not subject to
exchange controls except for certain categories
of investment).
MPUMALANGA FREE STATE BUSINESS 2021 2022/23
MPUMALANGA BUSINESS 2023/24
2620
30 46

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2021/22
2018/19
2018/19
MPUMALANGA
SPECIAL FEATURE
• Obtaining approval for building plans
• Applying for industry and export incentives
• Applying for import permits and verifying import
duties payable
• Registering as an exporter if relevant and
applying for an export permit.
Business entities
There are a variety of forms which businesses can
take, including private and public companies,
personal liability companies, non-profit companies,
state-owned companies and even branches of
foreign companies (or external companies).
Branches of foreign companies fall under
Section 23 of the Companies Act of 2008 and are
required to register as “external companies” with
the CIPC. An external company is not required
to appoint a local board of directors but must
appoint a person resident in South Africa who
is authorised to accept services of process and
any notices served on the company. It must also
appoint a registered local auditor and establish a
registered office in South Africa.
Patents, trademarks and copyrights
Trademarks (including service marks) are valid for
an initial period of 10 years and are renewable
indefinitely for further 10-year periods. Patents are
granted for 20 years, normally without an option
to renew. The holder of a patent or trademark
must pay an annual fee in order to preserve its
validity. Patents and trademarks may be licensed
but where this involves the payment of royalties
to non-resident licensors, prior approval of the
licensing agreement must be obtained from
the dtic. South Africa is a signatory to the Berne
Copyright Convention.
Permits for foreign nationals
Work permits
In considering whether or not to grant a work
permit, the Department of Home Affairs will first
evaluate the validity of the offer of employment
by conducting a number of checks to confirm the
following:
• Has the Department of Labour been contacted?
• Has the position been widely advertised?
• Is the prospective employer able to prove that he
or she has tried to find a suitably qualified local
employee prior to hiring a foreigner?
• Is the prospective employee appropriately
qualified and do they have the relevant
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Business permits
Foreign nationals who wish to establish their own
business or a partnership in South Africa must,
apart from having sufficient funds to support
themselves and their family, be able to invest at
least R2.5-million in the business.
FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND
CORRUPTION The INCIDENTS funds TO THE FRAUD HOTLINE must 0800 212 154 originate overseas, be
transferable to South Africa and belong to the
applicant (ie emanate from the applicant’s own
CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154
bank account). The business must also create
jobs for South African citizens. After six months
to a year, proof will have to be submitted that the
business is employing South African citizens or
permanent residents, excluding family members
of the employer.
Applications for work permits for selfemployment
can only be lodged at the South
African Consulate or Embassy in the applicant’s
country of origin. The processing fee is US$186. The
applicant would also have to lodge a repatriation
guarantee with the consulate/embassy equivalent
to the price of a one-way flight from South Africa
back to his or her country of origin.
This guarantee is refundable once the
applicant has either left South Africa permanently
or obtained permanent residence. Any application
for an extension of a business permit may be
lodged locally. The processing fee per passport
holder is R425. Some countries also need to pay
R108 per return visa.
A list A list of of countries to to which this applies is
available from from the the Department of of Home Affairs.
MEGA MEGA assists assists investors in in applying for the
relevant work permits to to conduct their business.
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FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND
What can MEGA do for you?
MEGA will help new businesses by assisting in
project appraisal and packaging, putting investors
in touch with relevant agencies and government
departments, alerting investors to investment
incentives and setting up joint ventures where
required. ■
27
MPUMALANGA FREE STATE BUSINESS BUSINESS 2022/23 2021
47 31
MPUMALANGA BUSINESS 2023/24

SPECIAL FEATURE
South African
investment incentives
The South African government, particularly the Department of Trade, Industry
and Competition, has a range of incentives available to investors, existing
companies, entrepreneurs and co-operatives across many sectors.
The Provincial Government of Mpumalanga is rolling out infrastructure at the newly-recognised
Tourism World Heritage is a popular Site at investment the Barberton sector. Makhonjwa Thebe Tourism Mountains, Group has which invested will Zindoga make a it luxury Trading more hotel attractive and on Projects. the to
Skukuza investors. bridge. Credit: The Tony Kruger Ferrar/UNESCO
Shalati Development is in the Kruger National Image: Credit: Park. Seda Roger Bosch/Brand SA
South Africa wishes to diversify its economy
and incentives are an important part
of the strategy to attract investors to
the country.
The Department of Trade, Industry and Competition
(the dtic) is the lead agency in the
incentives programme, which aims to encourage
local and foreign investment into targeted
economic sectors, but the Industrial Development
Corporation (IDC) is the most influential funder of
projects across South Africa.
There are a variety of incentives available and
these incentives can broadly be categorised
according to the stage of project development:
• Conceptualisation of the project – including
feasibility studies and research and develop-
ment (grants for R&D and feasibility studies,
THRIP, Stp, etc)
• Capital expenditure – involving the creation
or expansion of the productive capacity of
businesses (MCEP, EIP, CIP, FIG, etc)
• Competitiveness enhancement – involving the
introduction of efficiencies and whetting the
competitive edge of established companies and
commercial or industrial sectors (BBSDP, EMIA,
CTCIP, etc)
• Some of the incentives are sector-specific, for
example the Aquaculture Development and
Enhancement Programme (ADEP), Clothing
and Textile Competitiveness Improvement
Programme (CTCIP) and the Tourism Support
Programme (TSP).
MPUMALANGA MPUMALANGA BUSINESS BUSINESS2021/22 2022/23 2023/24 2020/21
28 14 10

Manufacturing
Key components of the incentive programme are
the Manufacturing Incentive Programme (MIP) and
the Manufacturing Competitiveness Enhancement
Programme (MCEP). The initial MCEP, launched in
2012, was so successful that it was oversubscribed
with almost 890 businesses receiving funding.
A second phase of the programme was launched
in 2016. The grants are not handouts as the
funding covers a maximum of 50% of the cost
of the investment, with the remainder to be
sourced elsewhere.
The Enterprise Investment Programme (EIP)
makes targeted grants to stimulate and promote
investment, BEE and employment creation in the
manufacturing and tourism sectors. Aimed at
smaller companies, the maximum grant is R30-
million. Specific tax deductions are permissible for
larger companies investing in the manufacturing
sector under Section 12i of the Income Tax Act.
Other incentives
Other incentives available to investors and existing
businesses in more than one sector include the:
• Technology and Human Resources for Industry
Programme (THRIP)
• Support Programme for Industrial Innovation (SPII)
• Black Business Supplier Development Programme
(BBSDP), which is a cost-sharing grant offered to
black-owned small enterprises
• Critical Infrastructure Programme (CIP) that covers
between 10% and 30% of the total development
costs of qualifying infrastructure
• Co-operative Incentive Scheme, which is a
90:10 matching cash grant for registered primary
co-operatives
• Sector Specific Assistance Scheme, which is a
reimbursable 80:20 cost-sharing grant that can be
applied for by export councils, joint action groups
and industry associations.
Incentives for SMMEs
A lot of emphasis is placed on the potential role
of small, medium and micro enterprises in job
creation and a number of incentives are design-
Many incentives are available to support small
Investments businesses and in infrastructure startups. Established can attract businesses rebates. are
The encouraged PG Bison Highveld are investing to Industrial support heavily smaller Park in hosts expanding entities factories manufacturing
along their
different supply Gladtidings capacity. chain. sectors. Credit: Interiors Credit: PG Bison CC. Seda Image: Seda
ed to promote the growth of these businesses.
These include:
• Small Medium Enterprise Development
Programme (SMEDP)
• Isivande Women’s Fund
• Seda Technology Programme (Stp).
• Seda is the Small Enterprise Development Agency,
an agency of the Department of Small Business
Development that exists to promote SMMEs.
Trade-related incentives
The Export Marketing and Investment Assistance
(EMIA) Scheme includes support for local
businesses that wish to market their businesses
internationally to potential importers and
investors. The scheme offers financial assistance
to South Africans travelling or exhibiting abroad
as well as for inbound potential buyers of South
African goods. ■
Online Resources
Department of Trade, Industry and Competition:
www.thedtic.gov.za
Industrial Development Corporation:
www.idc.co.za
Mpumalanga Economic Growth Agency:
www.mega.gov.za
Official South African government incentive
schemes: www.investmentincentives.co.za
29 33 11 15 MPUMALANGA BUSINESS 2023/24 2022/23 2020/21 2021/22

d trade with the biggest of the BRICS
Two-way trade between the countries in
s worth $39.1-billion. South Africa wants
tourist numbers from China. South Africa
the first country in the world to export
China in 2017, to SPECIAL go with FEATURE existing exports
ganese
re, platinum
ore
and fruit and wine.
208.2% 14.2%
of 2018 were valued at R63.9-billion (Financial
South African economy at glance
LESOTHO
Mail). The renewable energy Web: programme
http://economic.ncape.gov.za
Email: dedat@ncpg.gov.za
Email: dedat@ncpg.gov.za
South African economy at a glance
are visiting South Africa in record numpe
Town’s Air Access programme has
ore SPECIAL FEATURE 149.1% 13.3%
Eastern Cape
17 SOUTH AFRICAN BUSINESS 2019
8%
Insight into the South African ecomomy. economy.
Western Cape
14%
SPECIAL FEATURE Source: world exports.com
South economy at a glance
ZIMBABWE
Percentage contribution of each province to national GDP.
n direct
e: StatsSA.com
BOTSWANA
Limpopo
Insight into the South African ecomomy.
7%
Africa.
: South African NAMIBIA mineral sales
ng with
cessful.
d grape
level is
ed and
017 and
ICT and
capital
hat the
irst half
inancial
ramme
NAMIBIA
Northern Cape
2%
Western Cape
14%
Northern Cape
2%
North West
6%
Percentage contribution of each province to national GDP.
SOURCE: STATS SA WWW.STATSSA.GOV.ZA
several more are in the pipeline.
• New stock exchanges came on line in 2017 and
more are expected.
• Investment in infrastructure (especially ICT and
railways) is strong. Nedbank’s report on capital
expenditure in South Africa stated that the
29 large projects announced in the first half
177.9% 16.6%
ral sales increased by 152.7%
on-year in April 2021.
BOTSWANA
North West
6%
Free State
5%
Eastern Cape
Free
8%
State
5%
Eastern Cape
8%
Gauteng
35%
Mpumalanga
7%
ZIMBABWE
SWAZI-
LAND
LimpopoKwaZulu-
7% Natal
16%
LESOTHO
Gauteng
Mpumalanga
35%
7%
gest contributors % increase % contribution
s 465.9% 103%
LESOTHO
ore 115.6% 19.5%
d 40.9% 6.5%
Western Cape
14%
secured tens of thousands of new seats on direct
SS 2019 Trends Table: South African mining production
flights to and from the city).
• Companies are successfully trading into Africa.
Source: Good Increased signs for world the economy by exports.com
116.5% include: year-on-year • Niche in agricultural April markets 2021. are booming with
Percentage contribution of each province to national GDP.
ce: StatsSA.com
• Several provincial governments and investment macadamia nuts being the most successful.
SOURCE: STATS SA WWW.STATSSA.GOV.ZA
agencies are establishing trade relations and Pecan nuts have done well and wine and grape
study Largest programmes contributors with BRICS countries. State % increase exports to China % contribution
are growing.
visits to and from China immediately before and • Private education at school and tertiary level is
after a major BRICS summit in 2018 gave an indication
that Ramaphosa holds high hopes for • New banking licences have been issued and
secured growing tens as of a thousands sector. of new seats on direct
Trends Table: Platinum South Group African Metals mining 276.1% production
flights to and from
39.2%
the city).
increased trade with the biggest of the BRICS• Companies several more are successfully are in the pipeline. trading into Africa.
Good Increased signs nations. for the Two-way economy by 116.5% trade include: between year-on-year the countries in• Niche • New in agricultural stock April exchanges markets 2021. came are on booming line 2017 with and
2017 was worth $39.1-billion. South Africa wants more are expected.
• Several provincial governments and investment macadamia nuts being the most successful.
to Gold grow tourist numbers from China. South Africa 177.9% •
agencies are establishing trade relations and Pecan
Investment
nuts have
16.6% in
done
infrastructure
well and
(especially
wine and grape
ICT and
study
became
programmes
the first
with
country
BRICS
in
countries.
the world
State
to export railways) is strong. Nedbank’s report on capital
Largest contributors % increase exports to China % contribution
are growing.
beef to China in 2017, to go with existing exports expenditure in South Africa stated that the
visits to and from China immediately before and • Private education at school and tertiary level is
of
Manganese
iron ore, platinum
ore
and fruit and wine.
208.2%
29 large projects
14.2%
announced in the first half
after a major BRICS summit in 2018 gave an indication
that Ramaphosa holds high hopes for • New banking licences have been issued and
growing as a sector.
• Tourists are visiting South Africa in record numbers
(Cape Group Town’s Air Metals Access programme 276.1% has Mail). The 39.2% renewable energy programme
of 2018 were valued at R63.9-billion (Financial
Platinum
increased trade with the biggest of the BRICS several more are in the pipeline.
nations. Iron Two-way oretrade between the countries in149.1% • New stock exchanges 13.3% came on line in 2017 and
2017 was worth $39.1-billion. South Africa wants more are expected.
to Gold grow tourist numbers from China. South Africa 177.9% • Investment 16.6% in infrastructure SOUTH AFRICAN (especially BUSINESS ICT and 2019
became
Source:
the first
StatsSA.com
country in the world to export railways) is strong. Nedbank’s report on capital
beef to China in 2017, to go with existing exports expenditure in South Africa stated that the
of
Manganese
iron ore, platinum
ore
and fruit and wine.
208.2%
29 large projects
14.2%
announced in the first half
• Tourists are visiting South Africa in record numbers
(Cape Town’s Air Access programme has Mail). The renewable energy
of 2018 were valued at R63.9-billion (Financial
programme
Iron ore
Table: South African mineral 149.1% sales 13.3%
Mineral sales increased by 152.7%
Source: year-on-year StatsSA.comin April 2021.
13th Fl, Cnr Stead & Physical: Knight Sts, Metlife Kimberley, Towers,
8309
13th Fl, Fl, Cnr Cnr Stead & & Knight Sts, Sts, Kimberley, 8309
8300
Postal: Private Tel: 053 Bag Bag 839 X6108, 4000 Kimberley, | Fax: 0538300
832 8301 6805
Free State
Tel: Tel: 053 053 Web: 839 839 http://economic.ncape.gov.za
4000 4000 | Fax: | Fax: 053 053 832 832 6805
6805%
Physical: Metlife Towers,
13th Fl, Cnr Stead & Knight Sts, Kimberley, 8309
Postal: Private Bag X6108, Kimberley, 8300
NAMIBIA
Tel: 053 839 4000 | Fax: 053 832 6805
Web: http://economic.ncape.gov.za
Email: dedat@ncpg.gov.za
Postal: Private Bag X6108, Kimberley, 8300Gauteng
35%
North West
6%
MOZAMBIQUE
SPECIAL FEATURE
SWAZI-
LAND
KwaZulu-
Natal
16%
17 SOUTH AFRICAN BUSINESS 2019
SOURCE: STATS SA WWW.STATSSA.GOV.ZA
Northern Cape
2%
secured tens of thousands of new seats on direct
Trends Table: South African mining production
flights to and from the city).
• Companies are successfully trading into Africa.
Good Increased signs for the economy by 116.5% include: year-on-year • Niche in agricultural April markets 2021. are booming with
• Several provincial governments and investment macadamia nuts being the most successful
agencies are establishing trade relations and Pecan nuts have done well and wine and grape
study Largest programmes contributors with BRICS countries. State % increase exports to China % contribution
are growing.
visits to and from China immediately before and • Private education at school and tertiary level is
after a major BRICS summit in 2018 gave an indication
that Ramaphosa holds high hopes for • New banking licences have been issued and
growing as a sector.
Platinum Group Metals 276.1% 39.2%
increased trade with the biggest of the BRICS several more are in the pipeline.
nations. Two-way trade between the countries in • New stock exchanges came on line in 2017 and
2017 was worth $39.1-billion. South Africa wants more are expected.
to Gold grow tourist numbers from China. South Africa 177.9% • Investment 16.6% in infrastructure (especially ICT and
became the first country in the world to export railways) is strong. Nedbank’s report on capita
beef to China in 2017, to go with existing exports expenditure in South Africa stated that the
of
Manganese
iron ore, platinum
ore
and fruit and wine.
208.2%
29 large projects
14.2%
announced in the first half
• Tourists are visiting South Africa in record numbers
(Cape Town’s Air Access programme has Mail). The renewable energy
of 2018 were valued at R63.9-billion (Financia
programme
MOZAMBIQUE
Iron ore 149.1% 13.3%
Source: StatsSA.com
Source: world exports.com
Table: South African mineral sales
Mineral sales increased by 152.7%
year-on-year in April 2021.
17 SOUTH AFRICAN BUSINESS 2019
Iron Source: ore world exports.com115.6% 19.5%
7%
Mpumalanga
7%
SWAZI-
LAND
KwaZulu-
Natal
16%
Largest contributors % increase % contribution
PGMs 465.9% 103%
Gold 40.9% 6.5%
Source: StatsSA.com
Source: world exports.com
2017/18
2019/20
2020/21 2018/19
2018/19
US ONLINE
JOIN JOIN US U
UE
Source: world exports.com
Largest contributors % increase % contribution
Table: South African mineral sales
Mineral PGMs sales increased by 152.7% 465.9% 103%
year-on-year in April 2021.
Iron ore 115.6% 19.5%
Largest Goldcontributors % increase 40.9% % 6.5% contribution
PGMs Source: StatsSA.com 465.9% 103%
Iron ore 115.6% 19.5%
Source: world exports.com
Credit: Columbus Stainless

WWW.NORTHERNCAPEBUSINESS.CO.ZA
ONLINE JOIN S US ONLINE
WWW.GLOBALAFRICANETWORK.COM | WWW.NORTHERNCAPEBU
| | 10 REASONS
WHY YOU SHOULD INVEST IN SOUTH AFRICA
01.
HOT EMERGING
MARKET
Growing middle class, affluent consumer
base, excellent returns on investment.
02.
MOST DIVERSIFIED
ECONOMY IN AFRICA
South Africa (SA) has the most industrialised economy in Africa.
It is the region’s principal manufacturing hub and a leading
services destination.
LARGEST PRESENCE OF MULTINATIONALS
ON THE AFRICAN CONTINENT
SA is the location of choice of multinationals in Africa.
03.
Global corporates reap the benefits of doing business in
SA, which has a supportive and growing ecosystem as a
hub for innovation, technology and fintech.
05.
FAVOURABLE ACCESS TO
GLOBAL MARKETS
ADVANCED FINANCIAL SERVICES
& BANKING SECTOR
SA has a sophisticated banking sector with a major
footprint in Africa. It is the continent’s financial hub,
with the JSE being Africa’s largest stock exchange by
market capitalisation.
The African Continental Free Trade Area will boost
intra-African trade and create a market of over one
billion people and a combined gross domestic product
(GDP) of USD2.2-trillion that will unlock industrial
development. SA has several trade agreements in
place as an export platform into global markets.
07.
YOUNG, EAGER LABOUR FORCE
09.
SA has a number of world-class universities and colleges
producing a skilled, talented and capable workforce. It
boasts a diversified skills set, emerging talent, a large pool
of prospective workers and government support for training
and skills development.
04.
06.
08.
PROGRESSIVE
CONSTITUTION
& INDEPENDENT
JUDICIARY
SA has a progressive Constitution and an independent judiciary. The
country has a mature and accessible legal system, providing certainty
and respect for the rule of law. It is ranked number one in Africa for the
protection of investments and minority investors.
ABUNDANT NATURAL
RESOURCES
SA is endowed with an abundance of natural resources. It is the leading producer
of platinum-group metals (PGMs) globally. Numerous listed mining companies
operate in SA, which also has world-renowned underground mining expertise.
WORLD-CLASS
INFRASTRUCTURE
AND LOGISTICS
A massive governmental investment programme in infrastructure development
has been under way for several years. SA has the largest air, ports and logistics
networks in Africa, and is ranked number one in Africa in the World Bank’s
Logistics Performance Index.
10.
SA offers a favourable cost of living, with a diversified cultural, cuisine and
sports offering all year round and a world-renowned hospitality sector.
EXCELLENT QUALITY
OF LIFE
Page | 2
19
SOUTH AFRICAN BUSINESS 2020

KEY SECTORS
Overviews of the main economic
sectors of Mpumalanga
Agriculture 38
Forestry and paper 39
Mining 42
Oil and gas 48
Manufacturing 50
Transport and logistics 54
Tourism 56
ICT 58
Education and training 60
Banking and financial services 62
Development finance and SMME support 64

Sappi’s Ngodwana Mill plays a big role in Mpumalanga’s economy. A key part of the manufacturing
sector for many years, it is also the site of a 25MW biomass energy project. The company contributes
about R5-billion to the regional economy. Credit: Sappi

OVERVIEW
Agriculture
The macadamia industry is growing fast.
SECTOR INSIGHT
800 new hectares of
avocados are planted
annually.
The South African macadamia industry expects to
produce 83 556 tons in 2023, a better crop estimate
than 2022 and much better than the 53 000 tons
achieved in 2021. Fully 97% of the crop is exported.
Thousands of new trees are being planted every year. In 2022,
Mpumalanga was responsible for 37% of the country’s 6 235 new
hectares. There are more than 65 000 hectares planted to macadamias
in the country. Sophisticated machinery (pictured) is increasingly
being used, and data usage is becoming vital for sustainability.
Avocados are not as widespread, but the planting of 800 new
hectares annually suggests that global markets are responding well to
farms in Mpumalanga and elsewhere. The website of the South African
Avocado Growers Association lists 25 companies that export the fruit.
Mpumalanga accounts for about 21% of South Africa’s citrus production
and a third of its export volumes, with Valencias being the province’s
most popular varietal and Nelspruit being the centre of the sector.
Litchis, mangoes and bananas also thrive in the province.
Hazyview is an important source of bananas, with 20% of South
Africa’s production originating there.
The South African Subtropical Growers’ Association is an
association of associations that manages the affairs of the following
growers associations: South African Avocado (SAAGA), Litchi (SALGA)
and Mango (SAMGA). South African agricultural exporters took a hit
from the war that Russia began with Ukraine. In a normal year, the
country exports five-million cartons of prunes and pears to Russia and
more than double number of citrus cartons to the two combatant
ONLINE RESOURCES
Citrus Growers Association: www.cga.co.za
Macadamias South Africa: www.samac.org.za
South African Subtropical Growers’ Association: www.subtrop.co.za
Credit: SAMAC
nations. In addition, South Africa’s
farmers import about 80% of
fertiliser, much of it from Ukraine.
An agro-processing facility
is planned for the area near the
Kruger Mpumalanga International
Airport (KMIA) and private
investors are being approached.
The Fortune 40 programme
is focussed on developing young
entrepreneurs in farming. Twelve
of the Fortune 40 farms have
been linked to retailers such as
Spar, Shoprite and Boxer and with
wholesalers and agro-hubs.
The goal is to have an agrohub
in each of the province’s
three districts. Small-scale farmers
and co-operatives can connect to
the formal economy via the hubs
which will also provide advice
and equipment. The Mkhuhlu
agro-hub in Bushbuckridge,
which forms part of the
Provincial Government Nutrition
Programme, is operational. A
feasibility study is underway
relating to the establishment of a
hub in the Nkomazi Municipality.
Phezukomkhono Mlimi
is a provincial government
assistance programme providing
mechanisation and input support
to small-scale and new farmers.
Training courses are offered by the
AgriSETA. Agriculture is responsible
for about 3.4% of Mpumalanga’s
Gross Domestic Product (GDP). ■
MPUMALANGA BUSINESS 2023/24
38

Forestry and paper
An agroforestry project plans to convert unused land.
Dry bamboo biomass is one of the products that private
company Terragrn wants to produce in large quantities as
part of its ambitious plans to restore and use large tracts of
land in Mpumalanga (pictured). The company’s stated goal
is to turn up to 200 000ha of unused land into a $2-billion sustainable
land-management agroforestry project over the next 10 years.
A 68ha pilot project is to be rolled on the land of the Manala
Mgibe in association with the Community Property Association
(CPA). Trying to create a “nature-based solution” to the worldwide
problem of carbon emissions and the transition from fossil fuels,
the project is targeting the agriculture and forestry sectors as a
means of promoting employment and involving rural communities.
Mpumalanga has the ideal climate and topography for
forests. Sabie and Graskop represent the hub of the industry, but
commercial forests are also found to the east and south along the
Swaziland border. About 11% of the land mass is forested, with
4% of that being natural forest. The province is the national leader
in total hectares under forest (514 000ha) and in export earnings.
Forestry accounts for about 8% of Mpumalanga’s gross
domestic product. The sector comprises logging, saw-milling,
wood product and pulp and paper manufacture. Pulp and paper
are the main exports, along with sawn lumber, wood chips and
wattle extract. Most sawn timber in South Africa is used in the
construction sector.
One of the biggest operations in the forestry and paper
sector in Mpumalanga is Sappi’s Ngodwana Mill. Although it has
a big international footprint, Sappi’s biggest sales volumes are
achieved in South Africa, making up nearly 50% of group sales. In
ONLINE RESOURCES
Forestry South Africa: www.forestry.co.za
Sawmilling South Africa: www.timber.co.za
Technical Association of the Pulp and Paper Industry of
South Africa: www.tappi.org
Credit: Terragrn
SECTOR INSIGHT
OVERVIEW
Energy generation is being
investigated.
the six months to March 2023,
South Africa also accounted
for 39.5% of operating profit.
The JSE-listed company has
a valuation of R22.9-billion.
Sappi’s other large facility
in the province, the Lomati
Sawmill in Barberton, produces
kiln-dried Southern African
pine lumber from sawlogs
supplied by Sappi Forests.
Forestry companies
are looking into energy
generation, including Sappi
and AFCOL. Mpumalanga has
40% of South Africa’s forestry
resources, which presents an
opportunity to exploit the
sector’s byproducts in the
biomass-to-energy field.
The Industrial Development
Corporation (IDC) has a stake
in Hans Merensky Holdings
and York Timbers, which has
planted out 40ha in high-value
crops as the first phase of a
diversification strategy.
PG Bison, a subsidiary
of KAP Industrial Holdings,
is investing R560-million in
a new front-end dryer for
its particleboard plant in
Mkhondo (Piet Retief ). The
company is also building a new
medium-density fibreboard
(MDF) plant at its Mpumalanga
plant, to complement its
existing factory at Boksburg in
Gauteng. ■
39 MPUMALANGA BUSINESS 2023/24

Sappi paves the way for a sustainable
future in Mpumalanga
Unlocking the power of trees.
The Mpumalanga province owes much
of its vitality to the investment from
local industry. For decades, the global
renewable resource company, Sappi, has
been a driving force contributing to the lifeblood
that sustains the local economy and communities
while boosting the province’s growth.
With its commercial plantations and
manufacturing facilities, Sappi’s operations are
instrumental in driving prosperity within the
province. It contributes ZAR5.5-billion to the local
economy annually and provides livelihoods for
thousands of people.
While fortifying the present, Sappi also has
its sights set on a brighter tomorrow. Embracing
the concept of a biobased circular economy, it
champions responsible forestry practices and
extracts sustainable alternatives from woodfibre
to reduce the reliance on fossil-based materials.
Through innovative approaches, Sappi unlocks the
power of trees, cultivating purpose and value from
every by-product and resource it employs.
A positive foothold
At the heart of its operations in Mpumalanga
lies Ngodwana Mill, a key player in the province’s
economic landscape. This manufacturing entity
produces unbleached chemical pulp, mechanical
pulp kraft linerboard and dissolving pulp to meet
domestic and international demand. In Barberton,
Lomati Sawmill provides structural lumber for, among
others, the building, furniture and packaging industries.
Sappi also manages vast forestry plantations in
the province, of which approximately one-third is
unplanted and conserved for biodiversity. This includes
the management of four conservation sites – the
Ngodwana River Valley, Mount Morgan, Oosterbeek
and Angle Ridge Nature Reserves.
Sappi’s various international certifications ensure
that its performance is monitored and that operations
comply with global best practice across a range of
environmental, safety and quality criteria. These external
assessments and independent third-party certifications
give stakeholders confidence that reported performance
indicators are reliable, accurate and pertinent.
Empowering local communities
The company’s impact also reaches well beyond
economic and environmental interests.
Honouring its commitment to a better, sustainable
future, Sappi holds a share in a 25MW biomass energy
project set to alleviate the demand on the national
grid. This endeavour goes beyond corporate interests
and actively involves one of Sappi’s host communities,
who have been granted a stake in the project. By
including local community members as partners, Sappi
is fostering a sense of ownership and shared prosperity.
Another example of community empowerment is
the Ngodwana Skills Centre and Learning Hub which
provides skills training and trade testing programmes
MPUMALANGA BUSINESS 2023/24
40

FOCUS
One-third of Sappi’s huge forestry plantations in Mpumalanga are
unplanted and conserved for biodiversity. Lothair is in the south-east of the
province, in an area of wetland lakes which is famous for its birdlife.
for apprentices, post-apprentices and engineersin-training.
Moreover, community members have
access to courses in basic life and hand skills, as
well as specific trades like painting, electrical work,
plumbing, bricklaying and cement work.
By equipping local people with practical skills,
Sappi is enhancing employability and fostering
entrepreneurship. The company is also actively
involved in about 37 enterprise supplier development
programmes, employing over 300 people – all of
which nurture a resilient local economy.
Community engagement is another
cornerstone of the company’s presence in the
province. The Sappi Abashintshi programme
uses a social mobilisation and asset-based
community development (ABCD) approach to
uplift and empower the youth. Deployed across
several communities throughout the region,
the programme stands as a shining example of
bringing about positive change at grassroots level.
Over the years, the programme has resulted
in hundreds of small businesses that have either
been started up or rejuvenated – ranging from
brickmaking projects, poultry and pig farms to
crèches and home industries, while also providing
welcome respite for the youth during its annual
sponsored holiday programme.
Promoting education, health and wellbeing
Education counts among the key social impact
priorities. Expanding the talent pool in critical
areas, Sappi is nurturing the future leaders and
innovators of Mpumalanga.
The importance of Early Childhood
Development (ECD) is recognised as a foundation
for building capacity, and in Mpumalanga, Sappi
has developed an ECD Centre of Excellence at the
Sappi Elandshoek community in partnership with
Penreach. ECD practitioners are being taught to
implement programmes at each of their sites to
promote the child’s holistic development. Currently,
130 centres and about 1 000 children benefit
from this programme in Mpumalanga, with many
thousands more having benefited over the years.
Sappi furthermore has a vested interest in the
health and wellbeing of its surrounding communities.
Employees are also encouraged to get active in their
communities. One example was the establishment
of the Sisonke Food Security project at Lomati Mill
(pictured), an initiative that gives back to employees,
builds trust and supports the broader community
by transforming a barren piece of land into a fertile
vegetable patch to ensure food security within and
around the mill, all year round.
With its wide-ranging investments in
manufacturing, the environment, skills training and
community upliftment, this company is a prime
example of how industry can drive positive change
in a province and in the lives of its people.
As a responsible corporate citizen, Sappi sets
an inspiring example for others to follow, and its
contributions continue to make a lasting impact
and difference in this region. ■
The Sisonke Food Project: Zeus and Mphume point to
success in bringing food security to the community.
41 MPUMALANGA BUSINESS 2023/24

OVERVIEW
Mining
Energy and efficiency are key for the province’s miners.
SECTOR INSIGHT
Impact Catalyst Mpumalanga
has been launched.
Gold mining in Barberton. Credit: Pan African Resources
Gold miner Pan African Resources has secured financing
for the development of its new assets in Gauteng
province and remains on course to ramp up mining at
the Fairview and Royal Sheba operations, which form
part of the Barberton complex.
The acquisition of the liquidated Mintails operations in 2022 will
increase Pan African’s production by about 50 000oz once steady
production is reached at the end of 2024. The company currently
has production capacity in excess of 200 000oz of gold per annum.
R400-million of a R2.5-billion funding arrangement was released by
Rand Merchant Bank in March 2023.
Loadshedding in 2023 slowed the process of getting the
Barberton operations running at optimum levels. The company
reported in May that it had lost 10 000oz worth of production
because of power cuts. Tests are proving that the decision to
extend deep mining at Barberton was correct. Pan African reports
“potential high-grade extensions to the orebodies at Fairview, Royal
Sheba and Consort mines”.
Mining contributes 25.9% of the province’s gross domestic
product and employs more than 53 000 people. Mpumalanga
accounts for 83% of South Africa’s coal production and is the thirdlargest
coal exporting region in
the world. Although renewable
energy is catching on in South
Africa, there is no prospect of
Mpumalanga’s coal-fired power
stations being mothballed soon.
The CEO of the World Coal
Association, Michelle Manook,
told the 2022 Mining Indaba that
coal still has an important role
to play in the world’s mineral
mix. Despite the country’s plan
to reduce coal’s contribution to
electricity generation to 43% in
2030 (from the current percentage
around 70%), Manook argued that
a just transition would pay greater
attention to the number of jobs
that the coal industry supplies.
She said that coal-fired power
plants employ 130 000 people and
implied that the renewable sector
would not easily replace those.
South Africa still has many
billions of tons of coal in the
ground. Council for Geoscience
CEO Mosa Mabuza reports
that research is ongoing into
finding ways to capture carbon
produced at coal-burning power
stations.
A major problem facing
South Africa’s mining, according
to Minerals Council South
Africa, is the inability of state
utility Transnet to transport bulk
minerals to the country’s ports
in sufficient quantities to meet
demand. If the Richards Bay Coal
MPUMALANGA BUSINESS 2023/24
42

OVERVIEW
Terminal had operated at full capacity in 2021, an additional R47-
billion would have been generated in exports.
Afrimat, previously listed on the JSE in the “Construction
and Building Materials” section, has changed its classification
to “General Mining”, a recognition of the company’s ambitious
buying programme in the Northern Cape and Mpumalanga. With
construction and building now contributing just 20% to operating
profit, Afrimat is active in anthracite and iron ore and will further
expand into phosphates, rare earth elements and vermiculite.
Among its new acquisitions, Afrimat now controls the Nkomati
Anthracite mine in Mpumalanga. The mine, which is in the southeastern
corner of the province, has proven resources of 8.7-million
tons and upwards of 400 jobs were created over the last two years.
Local communities have a 16.1% stake in the relaunched mine and
the Mpumalanga Economic Growth Agency (MEGA) holds 34%.
Platinum
Platinum is an important mineral for the modern economy. Two
Rivers is a joint venture between Implats (46%) and African Rainbow
Minerals which is located on the southern part of the eastern limb
of the Bushveld Igneous Complex, 35km south-west of Burgersfort
in Mpumalanga. Northam Platinum, which has assets on both limbs
of the Bushveld Igneous Complex, has purchased the Everest mine
from Aquarius Platinum. Everest is adjacent to Northam’s existing
Booysendal mine.
Jubilee Platinum has sold its Smelting and Refining business
in Middelburg to Siyanda Resources. Sylvania Platinum now has
seven PGM recovery plants that extract chrome from tailings on
both sides of the Bushveld Igneous Complex.
Lydenburg is home to the Lion ferrochrome smelter that is a
joint venture between Glencore and Merafe Resources. Assmang,
the joint venture between ARM Ferrous and the JSE-listed Assore,
operates a chrome mine (Dwarsrivier) and a ferrochrome plant
where chrome alloys are made.
Energy and transition plans
Another part of Pan African Resources’ plan to improve efficiencies
was to build a renewable energy plant at Elikhulu. A 10MW solar plant,
which produces 30% of the facility’s needs, started operating in 2021.
ONLINE RESOURCES
Council for Geoscience: www.geoscience.org.za
Minerals Council South Africa: www.mineralscouncil.org.za
National Department of Mineral Resources and Energy: www.dmre.gov.za
South African Institute of Mining and Metallurgy: www.saimm.co.za
By mid-2022, the company
reported a monthly saving of
$145 000 per month. Exxaro,
one of the biggest mining
companies in Mpumalanga, has
a subsidiary, Cennergi, that builds
and manages renewable energy
plants. Two wind farms have been
built in the Eastern Cape and the
plan is now to build plants near
Exxaro mining sites.
The ambitious renewable
energy plans of Seriti Green,
subsidiary of coal-miner Seriti
Resources, are outlined in a
Special Feature elsewhere in
this journal.
Impact Catalyst Mpumalanga
has been launched in
Mpumalanga, having previously
operated in two of South Africa’s
other big mining provinces,
Limpopo and the Northern Cape.
Impact Catalyst aims
to drive large-scale socioeconomic
development
initiatives through publicprivate
partnerships and a
big focus in Mpumalanga is
going to be the transition to
green energy. An initiative of
Anglo American and Exxaro,
the Council for Scientific and
Industrial Research (CSIR) and
World Vision, Impact Catalyst
will assist with mine and power
station closures, ensuring that
they are done in a way that
protects the environment and,
where possible, setting up
manufacturing or agricultural
opportunities for local
communities. ■
43
MPUMALANGA BUSINESS 2023/24

INTERVIEW
Mapping for safety and
economic growth
Dr Taufeeq Dhansay, Manager of the Minerals and Energy Geoscience Mapping
Programme, explains how important geoscientific mapping can be for every
aspect of society and gives a progress report on the Council for Geoscience’s
carbon capture research.
Dr Taufeeq Dhansay, Manager,
Council for Geoscience
BIOGRAPHY
After earning a bachelor’s degree in
Geosciences from the University of
Cape Town, Taufeeq spent time at
the International Institute for Applied
Systems Analysis in Austria on his way
to a Master’s, where his focus was
geothermal energy. Another overseas
experience was at the Structural
Geology and Tectonics Research Group
at Jena University in Germany. Nelson
Mandela University awarded Taufeeq a
PhD in Geosciences in 2017.
In recent mapping, what have you found in Mpumalanga?
Mpumalanga is very rich is terms of its geological variety. You
find some of the earth’s oldest rocks that tell you about how
the earth evolved and formed. Many international scientists
visit the province to investigate these rocks, some that are
more than four-billion years old. You also find some of the
youngest rocks, so that variety from the oldest to youngest
means that you have the entire history of the earth’s processes
within the province. Some of these processes include how
various minerals systems formed and evolved.
This implies that it is a very rich province in terms of its natural
resources. This includes, coal, gold, platinum and other types
of critical minerals that are needed to sustain future energy like
renewable resources and batteries.
Now we are looking at integrated research. What happens as
we shift away from coal in the province? Does it mean that the coal
was the only drawcard of the province in terms of its economy? We
are finding that the answer is no.
Is coal the province’s only resource?
There are other mineral resources that can also be looked at. That
is a primary focus at the moment. More than two thirds of the
province’s economy is now reliant on coal so this brings into
context the idea of the just transition.
We are asking what geoscience can tell us about a transition
in terms of sustainability.
Coexistence between mining and agriculture only
happens if you understand the geology. We have to maintain
the integrity of the groundwater in such a way that you can
have mining and agriculture existing perfectly in harmony.
We are finding that this is possible. Secondly, if you can
identify an area where you might find a fossil fuel on the
surface like coal, then you can dig a bit deeper and find
gas. Deeper still and you might find gold. That means that
in terms of the valuation and the investment potential, the
land is looked at differently, both for the GDP and for the
sustainability of life in the province.
MPUMALANGA BUSINESS 2023/24
44

The geological profile beneath Leandra, Mpumalanga.
If you draw a cross-section through Mpumalanga,
within the top four kilometres we have found a
number of mineral resources and natural resources
such as groundwater. Secondly, this is a good natural
laboratory where you can study and look into the
issue of sustainability.
Mpumalanga is also the site of your Carbon
Capture Utilisation Storage (CCUS) project. How
is that progressing?
Mpumalanga has the highest CO2 emissions
in the country, which is no surprise because
this is where we have the bulk of the coal-fired
energy plants.
We were challenged as scientists to look at the
issue. We have to transition towards a low-carbon
economy. This is known. If tomorrow you had to
turn off coal what would happen to the 150 000
people directly employed by the coal industry? The
challenge is how to manage this transition in a way
that actually enables sustainability. This is where the
just transition comes in.
Council for Geoscience scientists logging
borehole core from Mpumalanga.
The problem is CO2, carbon dioxide.
Technologies exist where you can capture the carbon
dioxide. You do not release the carbon dioxide into
the atmosphere. Carbon dioxide has many uses.
There are a number of things that you can do with
the carbon dioxide. Many industrial processes require
carbon dioxide: we drink sparkling water, we drink
fizzy cooldrinks. Those products use carbon dioxide,
for example.
We had assumed that South Africa’s larger
storage potential for carbon dioxide was generally
near-shore, so we were looking at coastal provinces
and offshore. That’s because the relevant rocks
are very spongy, or absorbent of CO2. Now we
have gone back to Mpumalanga and we have
looked underground to find if there are additional
geological areas where you can viably and safely
store the CO2. This is what we have found. We
have recently published a paper that shows these
rocks could very likely support the injection and
sequestration of CO2.
Would the gas disappear or would it stay there
forever?
The idea would be that we take the gas and convert
it into a solid. When CO2 reacts with certain metals,
it forms a new mineral that just has the carbon
incorporated. By the way, this actually happens
in nature. We stop the gas from going into the
atmosphere, and put it in the ground. It reacts
naturally with other types of minerals which are very
reactive and then it forms a new mineral and it stays
in the ground forever. That is the principle.
How far advanced are you along that road?
The first step is that we have identified the
potential reservoirs. Everything comes down to
45 MPUMALANGA BUSINESS 2023/24

INTERVIEW
The hyperspectral core scanner in use at the Council for Geoscience National Core Library.
making this financially viable so it is important to
mention that these areas are below the current
coal fields. You would not need to transport the
CO2 very far to be stored.
The type of storage is quite critical. At a depth
of about 1km you find saline aquifers. That holds
the type of water that you can’t necessarily use for
anything. If you pump the CO2 into that salty water,
the CO2 slowly reacts with the salt in the water but
it can take up to thousands of years before the CO2
becomes immobile. However, if you store the CO2 in
the type of rocks that we are looking at, that reaction
can theoretically happen much quicker. The sooner
you convert the gaseous CO2 into a solid CO2, the
sooner it is rendered immobile. Then it cannot move
around and get back into the atmosphere.
What effect would these processes have on the
environment?
A lot of our work so far has been specifically on
environmental monitoring. This is a critical point.
Before we actually develop this technology, we
are doing a significant amount of environmental
research to make sure that we can understand the
baseline environmental conditions on the ground.
We want to get a footprint of the area – the flora, the
fauna, the chemistry of the groundwater, the amount of
groundwater there is – all of that information.
Are CGS staff excited about the CCUS project?
Yes. It is a very big project. The principle is that it’s
a challenge. There are a lot of different opinions
around the transition. Some say we are not moving
fast enough. Others say we are moving too fast.
This is the nice thing about being pragmatic – a
fundamental scientist if you like – being practical and
finding solutions that will be sustainable.
Our technology for renewables is still developing;
we are not there entirely yet. It’s a big challenge and
we need to buy ourselves some time. For the first
time in a long time, the issue is being looked at
directly by scientists, not necessarily only by policymakers.
We have to guide them, we need to show
what is possible, scientifically and empirically. How
do you present empirical data that has passed peer
review? That is the principle that we are focusing on.
The carbon capture project is a large, integrated
project. The project is funded both by the South
African Government and the World Bank and the
entire project budget is about $23-million.
MPUMALANGA BUSINESS 2023/24
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INTERVIEW
We have to be very unbiased in terms of the
type of research we do. We will be doing full
Environmental and Social Impact Assessments (ESIAs)
before we do any type of sub-surface investigation.
Our data portal is available to the public online.
At the CGS you will find somebody who is
working on hydrogeology, while another person is an
environmental geologist, who might be interested in
what this is going to do for the environment.
What is the nature of new mapping CGS is doing?
The first thing to touch on is that what we are doing is
very much geoscientific mapping, not just geological.
The second thing is that the scale is very important.
We have generally mapped to a scale of 1:250 000,
so that means if a hill is less than 250 metres, it will
not appear on the geological map. We have shifted
to the 1:50 000 scale. South Africa was only covered
to 4% in terms of 1:50 000-scale maps. After about
five years, we are now moving up to a figure of 12%.
People often think that mapping is for minerals
only. What other functions does it have?
We have not exclusively focused on minerals. We’ve
been able to identify certain zones and certain
geological features where specific types of geohazards
are concentrated. We are researching that
further to mitigate possible natural disasters or loss
of human life.
The recent landslides in KwaZulu-Natal are an
example. Many of the landslides are due to specific
geomorphology and geological controls. If we
don’t have the map resolution required, we can’t
necessarily create the necessary mitigation scenarios.
The same is true in Gauteng. A large portion of
Gauteng is built on dolomite, the type of rock that
forms sinkholes. The state spends a lot of money on
infrastructural development and the risks can be
mitigated if we understand the geology.
There are many areas in the country where the
dams are not efficient in supporting farming, so we
look at groundwater resources. To understand those
resources, you need to understand the geology of
very specific structures, essentially pathways that
allow the water to flow. The other aspect that is
not necessarily being considered is the surface of
the earth. This is where all of our food comes from.
In areas where we want agricultural sustainability,
you need to understand the geology of those
areas. Similarly, you cannot build a large solar plant
on soil that might sustain agriculture. We want
to avoid sterilising the ground and ruling out the
possibilities of groundwater or minerals.
Tell us more about groundwater.
We have been very successful in identifying
significant groundwater resources, especially in the
Karoo. We have been able to find, test and research
many groundwater aquifers that can sustain
groundwater resources in those areas.
And what are the new maps showing in terms of
mineral resources?
We have focused on specific areas where we
anticipate there to be some investment in
exploration. Some of the mineral resources
we are also looking at in terms of our
developmental needs. We have to look for the
type of minerals needed to sustain renewable
energy, including batteries.
A number of mineral resources can support
battery development. Specifically, mobile devices
have lithium ion batteries and some of our mapping
has discovered that South Africa has quite a
significant quantity of lithium that can possibly be
extracted and researched.
Where is lithium found?
It is mostly in the Northern Cape and it is also found
in KwaZulu-Natal. We also found lots of vanadium,
which is a critical metal needed for larger-format
batteries. So mapping goes far beyond mining, it’s
vital to every aspect of the economy.
Development hinges on earth science. We
need to understand the earth. When we map, we
try as hard as possible to look as deep as possible.
Humans generally interact with the top five
kilometres of the earth. We have gold mines that
touch four kilometres. If you go to any province
the geology you see just below your feet is not
necessarily the geology that you will see at a
kilometre below your feet. The Karoo might be dry
but if you had to go down several hundred meters
you would find significant natural resources to
sustain socioeconomic development, such as
water and minerals. ■
47 MPUMALANGA BUSINESS 2023/24

OVERVIEW
Oil and gas
Sasol partnerships point to a new path.
SECTOR INSIGHT
PASA has issued natural gas
exploration permits.
Aviation is responsible for 3% of global carbon emissions. Solutions are
being worked on in Mpumalanga. Credit: Lawrence Hookham on Unsplash
International chemicals and energy company Sasol has several
large plants in Mpumalanga and it has been the dominant
national player in these sectors for decades.
With more than 30 000 employees and a presence in 30
countries, the decisions Sasol make have a big impact on society.
A series of partnerships entered into by Sasol illustrate that the
company has decided that the energy future has to be different to
the present.
Subsidiary company Sasol ecoFT is producing sustainable
fuels and chemicals from green hydrogen and sustainable carbon
sources via the Power-to-Liquids process and using the Fischer-
Tropsch technology (FT) which has helped set the company apart
in its field.
In 2010 Sasol flew the world’s first passenger aircraft using
fully-synthetic jet fuel and it has been investigating solutions ever
since. Sasol is part of a consortium based at its Secunda operations
called HyShiFT with Linde, Enertrag and HydRegen, a spinoff
company from the Department
of Chemistry of the University of
Oxford. The project aims to invest
in about 500MW of renewable
energy that will supply a
200MW electrolyser for green
hydrogen production, resulting
in approximately 45 000 tons a
year of sustainable aviation fuel
(SAF).
In 2021, agreements
were signed with Toyota and
the Industrial Development
Corporation (IDC) relating to
green hydrogen and Sasol joined
the Hydrogen Council.
With the IDC, Sasol aims
to develop a green hydrogen
market in South Africa, develop
policy guidelines, support pilot
projects and investigate funding
options for the nascent sector.
One such pilot project is to
develop the N3 highway, South
Africa’s busiest road, into a green
corridor for long-haul trucks
powered by hydrogen. Toyota is
building the trucks in Japan for
use on the route.
In 2022 the Green Fuels
Hamburg consortium and Sasol
ecoFT agreed to work together
and the company signed a
Memorandum of Understanding
(MoU) with German aircraft
manufacturer Deutsche Aircraft
to work on technology for
sustainable aviation fuel using
green hydrogen.
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OVERVIEW
In 2023 Sasol ecoFT and Topsoe signed an MoU to establish
a 50/50 Joint Venture (JV) to develop SAFs. The JV will develop,
build, own and operate ventures producing SAF based on Sasol’s
FT technology and Topsoe’s SAF technologies. The two companies
have been technology partners for more than two decades.
Gas future
Products manufactured at the Sasol complex in Secunda include
synthetic fuel, petroleum, paraffin, jet fuel, creosote, bitumen, diesel
and lubricants. The primary feedstock for synthetic-fuel production
is coal, and the plant is in the heart of Mpumalanga’s coalfields.
Sasol Gas is one of the four operations at Secunda, supplying
natural gas to Sasol Synfuels and buying Sasol Synfuels’ methanerich
pipeline gas to sell to customers in Mpumalanga and KwaZulu-
Natal. The octene plant makes octene, a hydrocarbon molecule
which is used in agrochemicals, plasticisers and synthetic lubricants.
Sasol announced in 2021 the sale of its 30% stake in the Romco
natural gas pipeline that links Mozambique and South Africa. As
part of a global sell-off of assets to reduce debt, Sasol expects to
earn more than R5-billion from the transaction. The company will
continue to be the pipeline’s operator and maintains a 20% stake in
the venture.
The Romco pipeline could carry far more gas in the future as
there have been big finds of new gas off the coast of Mozambique
which could be shipped as liquefied natural gas (LNG) to Maputo
and continue from there to the Sasol plant at Secunda. The
province is already equipped with energy and fuel infrastructure
and expertise.
The Liquefied Natural Gas Independent Power Producer
Procurement Programme (LNG IPPPP) is part of the broader
programme of the National Department of Mineral Resources and
Energy which encourages private investment in renewable energy,
namely the Renewable Energy Independent Power Producer
Procurement Programme (REIPPPP). The total allocated to gas-topower
in the national power plan is 3 726MW, of which 3 000MW is
for LNG.
The REIPPPP has seen investment into this totally new sector of
more than R200-billion since 2012 and South Africa is now home to
112 independent power projects, whereas just 13 years ago there
were fewer than 40 in Sub-Saharan Africa.
ONLINE RESOURCES
HyShiFT: www.hyshift.org
Independent Power Producer Programme: www.ipp-projects.co.za
Petroleum Agency South Africa: www.petroleumagencysa.com
PetroSA: www.petrosa.co.za
Three natural gas exploration
permits have been awarded to
Tosaco Energy for the sandstonerich
area between Amersfoort and
Balfour in the western part of the
province by Petroleum Agency
South Africa (PASA). PASA regulates
exploration and production
activities and acts as the custodian
of the national petroleum
exploration and production
database. Tosaco Holdings has
a 25% stake in Total SA. Two
methane-gas exploration rights
have been granted to Highland
Exploration in the Evander area.
The promoters of the
Nkomazi Special Economic
Zone believe that the fact that
the pipeline passes through
the SEZ is a big selling point.
An alternative would be for the
LNG to be shipped to Richards
Bay before being piped north.
Many of the big mining
and manufacturing concerns in
Mpumalanga have long-term
contracts for the supply of gas
with big gas companies. Afrox
and Air Liquide are two of the
biggest, with the latter having
3 500 national customers,
including Sappi and Sasol.
Air Liquide is to start
operating 16 air separation
units (ASUs) as a result of an
R8-billion purchase from Sasol.
The company’s fleet now
comprises 17 ASUs in Secunda,
with the 16 units having the
capacity to produce 42 000
tons per day of oxygen. ■
49
MPUMALANGA BUSINESS 2023/24

OVERVIEW
Manufacturing
New sectors are arising from the green economy.
SECTOR INSIGHT
Mpumalanga is home to
multiple steel and timber mills.
COFCO International’s Standerton Mill is the country’s biggest
soy-crushing facility. Credit: COFCO
The assembly of solar-voltaic panels, building bases and towers
for wind turbines and making equipment required for
batteries – these are all areas where there might be potential
for new manufacturing jobs as Mpumalanga’s economy
starts to transition to renewable energy.
Containerised mini-grids are being already being assembled
in the workshops of the Komati Power Station, which was
decommissioned in 2022. Because the site is serviced by the
transmission grid, it will also be converted into a generation site
for 150MW of solar, 70MW of wind and 150MW of storage batteries,
which will create the potential for other manufacturing enterprises
to locate there. Camden Power Station (pictured), near the town of
Ermelo and also scheduled for decommissioning, could be the site
of similar activities.
The Mpumalanga Provincial Government is working with the
Presidential Climate Commission, the Climate Investment Fund and the
World Bank to find ways to diversify the local economy. A key objective
of the Mpumalanga Economic Growth and Development Path
(MEGDP) is to expand the industrial base of the provincial economy.
From steel to chemicals, petroleum and stainless steel to paper and fruit
juice, Mpumalanga makes a wide variety of products. Fuel, petroleum
and chemical production occurs
in the southern Highveld region
clustered around Sasol’s plants.
The Sasol chemicals and liquid
fluids complex at Secunda is a
vital component of Mpumalanga’s
manufacturing sector. Also in the
southern section is the town of
Standerton which hosts several
large manufacturing plants.
Chief among these are a chickenprocessing
facility and two mills,
one for textiles and the other for
crushing soy.
Astral Foods’ Goldi processing
plant has its own breeding
and hatching operation and
a processing capacity of
approximately 1.8-million broilers
per week. The company has won
a court order to compel the local
municipality to supply services
after Astral’s production levels
were disrupted by intermittent
water and electricity supply.
Goldi is the largest employer in
Standerton.
Standerton Mills designs,
manufactures and finishes yarn
and woven industrial fabrics.
The company, which was
established in 1947, integrates
aspects of manufacturing
across a variety of technical
fabrics and yarn, offering a
stand-alone or fully integrated
end-to-end service which
includes designing, spinning,
twisting, weaving and coating.
MPUMALANGA BUSINESS 2023/24 50

COFCO International’s soy-crushing plant in Standerton has 120
employees and is the biggest facility of its kind in South Africa. The
company has more than 11 000 employees worldwide and is active
on all continents. Feedstock for the plant comes from partner farms
and third parties to produce oil and soy meal for animal feed. Work
on efficiency and other improvements at the plant has led to a
doubling in volumes processed.
Standerton falls within the Maize Triangle that touches four
provinces. Within that area COFCO operates a 30 000-hectare
contract farming operation which provides soybeans to the
Standerton facility and maize for domestic consumption.
The northern Highveld area, including Middelburg and
eMalahleni (Witbank), is home to ferro-alloy, steel and stainlesssteel
concerns.
In the Lowveld, agricultural and forestry products are
processed while Sappi’s giant mill is close to the company’s forests
south-west of the provincial capital, Mbombela. Timber firm and
board manufacturer PG Bison is in the process of spending more
than R2-billion on increasing capacity at its Mkhondo plant.
TSB Sugar runs two large mills and produces fruit juices through
a subsidiary company. Nelspruit is the centre of the province’s foodprocessing
cluster. Approximately 70% of jobs in the manufacturing
sector are in food and forestry.
Steelmaking is a key strategic industry for South Africa,
representing 1.5% of the country’s GDP and accounting for
about 190 000 jobs. According to the South African Iron and
Steel Institute (SAISI), the South African steel industry value
chain multiplies the value of local iron ore by a factor of four.
Middelburg-based Columbus Stainless is South Africa’s only
producer of stainless-steel products.
The dtic’s Agro Processing Support Scheme (APSS) includes
furniture manufacture as a core sector for future growth and
ONLINE RESOURCES
Highveld Industrial Park: www.highveldindustrialpark.co.za
Mpumalanga Economic Growth Agency: www.mega.gov.za
South African Furniture Initiative: www.furnituresa.org.za
South African Iron and Steel Institute: www.saisi.co.za
support. Average employment
per manufacturer is 13 people
per facility. Furntech White
River is a part of the Seda
Technology Programme of the
Small Enterprise Development
Agency (Seda).
The Furniture Sector Forum
has become an annual event,
the fourth of which was held in
2022. At the event, government
incentives and ideas about
how to reduce the cost of
expensive machinery through
co-ownership and partnerships
are shared, together with other
strategic ideas. The first forum
was co-hosted by the South
African Furniture Initiative
(SAFI), Proudly South African,
PG Bison and the Department
of Trade, Industry and
Competition (dtic). A national
Furniture Industry Master Plan
(FIMP) was adopted in 2021,
which subsequently led to the
reorganising of SAFI into seven
chambers.
Enaex Africa, the new joint
venture comprising Enaex
and what used to be Sasol
Explosives, will spend R16-
million on a facility to assemble
detonators in Secunda. The
facility is intended to produce
800 000 detonators per annum.
Enaex, a subsidiary of the
Sigdo Koppers Group, is the
controlling partner in the JV. ■
51
MPUMALANGA BUSINESS 2023/24

FOCUS
Columbus Stainless
Choosing the right metal for the future.
Columbus Stainless, based in Middleburg,
Mpumalanga, is a subsidiary of the
Spanish group of companies, Acerinox
SA, and Africa’s only producer of stainlesssteel
flat products (coils, plates and sheets), with
global distribution networks to final customers,
stockists, engineering shops and mines.
The company supports the livelihoods of
1 250 employees and 600 contractors and we
create in the region of 150 job opportunities
annually for young trainees. Through its BBBEE
programme, Columbus Stainless actively
promotes doing business with small, medium
and micro enterprises (SMMEs) owned or
controlled by black entrepreneurs that are able to
supply quality products and services in a timely
and competitive fashion.
We are proud to have contributed to the
supply and development of stainless steel for
close to six decades and will continue to support
the growth in Africa’s manufacturing industry
through sound technical advice and premium
customer service.
Products
For most projects, current economic constraints
require a balance between materials of
construction selected and ultimate cost savings.
The selection of stainless steel in this economy
becomes the obvious choice. Stainless steel is
a versatile metal of construction – its corrosion
resistance and elegant appearance offers longevity
and low maintenance in service. The added
advantage is that stainless steel is also considered
an environmentally-sustainable material of choice,
since it is 100% recyclable and is produced using
predominantly recycled materials. The future of
manufacturing is indeed Stainless.
Columbus Stainless produces the three main
families of stainless steel, namely Austenitic,
Ferritic and Duplex grades, which are suitable
for most applications including agro-processing,
food-processing equipment, mining and power
generation – including nuclear, chemical,
automotive and manufacturing industries.
Ferritic Stainless Steel: Commonly known as
plain chromium steels. Typical examples include
grades 430, used for applications like cutlery,
cookware and architectural applications like wall
cladding, hand rails and balustrades.
Utility Ferritic Stainless Steel: 3CR12® is a
world-renowned low-cost utility ferritic stainless
steel developed by Columbus Stainless and is
used in structural applications. This material
bridges the gap between coated carbon steels
and the traditional higher alloyed stainless-steel
grades. Due to excellent properties in wetabrasion
conditions, 3CR12® is used successfully
in the mining industry to fabricate ore-handling
equipment, conveyor-belt systems and ore
wagons. Applications in the agro-processing
industries include handling and processing
equipment, handrails, floor gratings and walkways.
3CR12® has seen great success and longevity in
roofing and cladding applications, even in highly
corrosive ammonia-containing environments
like chicken farms, piggeries and other livestock
holding facilities.
Austenitic Stainless Steel: These steels are
alloyed with chromium and nickel for improved
corrosion resistance, fabricability and exhibit
good strength properties both in cryogenic
temperatures (for example, cold storage
containers) and high temperatures (ovens, stoves
and cookware). Common grades include 304
and 316, which are used extensively in the food-
MPUMALANGA BUSINESS 2023/24 52

FOCUS
processing industry, demanding high hygienic
properties. Typically used in agriculture and
abattoirs (including dairy processing and meathandling
equipment, food and beverage storage
tanks); catering and hospitality (cooking utensils,
food-processing equipment, cold storage and
healthcare industries for medical equipment and
surgical tools); mining and chemical industry
(cathode plates, processing tanks).
Duplex Stainless Steel: These grades exhibit
high strength, good resistance to stress corrosion
cracking and superior corrosion resistance. Popular
grades include lean duplex 2304 and standard
duplex grade 2205. Successful applications
are in the paper and pulp industries, chemical,
petrochemical and mining industries for various
processing equipment and storage tanks. Due
to their superior corrosion resistance these steels
can withstand harsh marine environments. Our
duplex stainless steel grade 2205 has been used
and qualified in South African nuclear applications.
Outlasting harsh conditions
Case study: 3CR12 railway electrification
masts in Gqeberha
Corrosion is the natural, gradual deterioration
of metals reacting with their environment,
compromising the useful properties of metals and
structures, including their strength and structural
integrity. In the ambient environment, metal alloys
tend to revert back to their natural stable states.
Carbon steels, for example, are made up of iron
and a combination of other alloying elements.
Without any additional surface protection, they
tend to form a layer of rust (iron-oxide) which is
brittle and exfoliates, exposing a new fresh layer
of steel to be attacked. This cycle continues with
devastating effects to equipment and structures
due to resultant loss in through-thickness and
inevitably causing perforation. Stainless steels have
a unique advantage in that a thin, self-repairing
protective layer forms on the surface of the steel.
This chromium oxide passive layer gives the steel
its characteristic corrosion-resisting properties in
most environments. The steel must contain at least
10.5% chromium for this passive layer to form.
There are many modes of corrosion;
atmospheric corrosion is one of the most
widespread causes of metallic degradation. It
occurs as a reaction of a metal to its immediate
environment. It is generally predictable and
measurable, and therefore can be designed into
a structure by adding thickness factor. Examples
of successful use of stainless steel in a corrosive
environment are the railway electrification masts
in Gqeberha. The line runs from the harbour
along the coast to the North End, moving inland.
During high tide and windy conditions, the masts
are constantly exposed to sea spray. The metal of
construction used is utility ferritic stainless steel
grade 3CR12®. Installed in 1982, these masts
have seen very aggressive coastal environmental
conditions. But after 40-plus years in operation, the
structure is still in pristine condition, with minimal
thickness reduction experienced. This proves
that the longevity of the product and minimal
maintenance are critical attributes to consider
when selecting materials of construction.
Stainless steels are known for their superior
corrosion resistance and are mainly used in the
bare mill finish without the need for additional
protective coating systems to enhance corrosion
protection – hence cementing them as the lowlife-cycle-cost
metals of choice.■

OVERVIEW
Transport and logistics
The Maputo Corridor is performing well for logistics companies
SECTOR INSIGHT
Major bridge and road projects
are underway.
The Karino Exchange. Credit: Sanral
The performance of the Maputo Corridor has enabled one of
South Africa’s biggest logistical carriers to continue to post
good financial results. With the N3 highway between Johannesburg
and Durban often congested and delays at the
ports of Richards Bay and Durban, Super Group reports that the route
through Mpumalanga to Mozambique is functioning well for its trucks.
In comparison with December 2019, group revenue increased
by 54.4%, with non-South African operations contributing 51% to
that figure. Super Group operates in 21 countries.
Trans Africa Concessions (TRAC), the toll road company, will
spend R248-million on expanding capacity on the bridge over
the Crocodile River and creating an upgraded roads junction
at the Montrose interchange. Two new bridges will be built to
provide access over the Elands Valley section of the road. The
Motheo Group, in a joint venture with WBHO, has been working
on the N4 for TRAC, which has also parcelled out some work to
Raubex Construction.
The Karino Interchange project on the N4 which provides a
link between Mbombela, Kanyamazane, the N4 and access to the
Kruger Mpumalanga International Airport has also been completed
and is operational.
The South African National
Roads Agency (Sanral) will spend
R9-billion on road infrastructure in
Mpumalanga. The agency, which
is responsible for national roads, is
concentrating on the upgrading
of the N2 between Ermelo in
Mpumalanga and KwaZulu-Natal
and the R40 between Hazyview
and Bushbuckridge.
In addition to the Karino
interchange, Sanral is working
on various other projects in the
province, such as the Moloto
Road that connects the provinces
of Gauteng, Mpumalanga and
Limpopo. On internal roads within
the province, severe damage was
caused by Tropical Storm Eloise.
The Tekwane South Bridge on
the D2296 collapsed but it is now
back in full operation.
A road that has been
identified as a provincial priority
is the P216/1 from Secunda to
eMbalenhle, which we will be
constructed by the provincial
government in the 2023/24
financial year. A bridge from
Emalahleni city centre to Pine
Ridge, Clarinet, Siyanqoba and
Verena will improve safety and
traffic flow.
Volume of traffic
It has not just been heavy rains
that have put a strain on the
MPUMALANGA BUSINESS 2023/24
54

OVERVIEW
roads. The heavy traffic that feeds coal mines and power stations is
another source of stress. The Provincial Government of Mpumalanga
has purchased mechanised pothole-patching vehicles in response to
this problem. It is expected that many jobs will also be created in this
attempt to improve the strategic road infrastructure network, which
includes tourism routes.
Sanral has announced a three-year project which will provide
work for small contractors in and around the City of Mbombela.
More than R26-million has been allocated to subcontracting which
will cover things like litter and minor works, minor maintenance,
vegetation and bush clearing.
There is more freight rail traffic in Mpumalanga than in any
other province. This is principally because of the transport of coal,
but there are also large volumes of chrome, ferrochrome, forestry
products, chemicals, liquid fuels and general freight.
The Balfour North to Volksrust section of the Gauteng to
Durban mainline carries the largest volumes, most of which is
long-haul freight passing through the province. Despite these high
rail volumes, a huge amount of mineral product is transported by
truck around and out of the province. This puts immense pressure
on Mpumalanga’s roads network, particularly in the Gert Sibande
District and the Nkangala District.
The statistics relating to coal haulage in Mpumalanga are
stupendous. In one 12-hour period, 34 198 tons of general freight
were recorded for the section of the N4 highway between Nelspruit
and Komatipoort.
Mactransco’s website states that its trucks serving Tshikondeni
Coal Mine travel 3.7-million kilometres per year, working all day for
six days a week. The fleet of ABF Legend Logistics, a Super Group
company, contains more than 200 super-link coal haulage trucks
while another company in the group, SG Coal, claims to have one
of the biggest fleets of coal haulage trucks in Africa. Coal Tipper
Resources operates out of Bethal.
Air access
Eurowings Discover was
launched in July 2021 as a
long-haul leisure airline, not to
be confused with the low-cost
airline, Eurowings. In May 2022
the airline had 16 aircraft.
Airlink, which has 36
destinations in nine African
countries, is the other airline
that regularly flies into KMIA.
Fastjet connects KMIA to
Victoria Falls, Zimbabwe.
From there, Fastjet links that
destination to the country’s
two major cities, Harare and
Bulawayo. KMIA serves an
average of 260 000 per annum.
Hoedspruit Eastgate
Airport is a popular destination
for travellers on their way to
private game lodges and is
also near the Orpen Gate of
Kruger Park. SA Express flies to
Hoedspruit from Johannesburg
and Cape Town.
Middelburg Airfield is one of
the larger alternate airports in
the province, boasting a 1.9km
runway that can accommodate
a 737. The annual Middelburg
Air Show is held in June. Many
game lodges have airstrips
and helipads. SA Red Cross Air
Mercy Service operates out of
the old Nelspruit airport south
of the city. ■
Eurowings Discover, a new division of Lufthansa, announced in
2022 that it would start flying three times a week to Mbombela
from Frankfurt, via Windhoek, in November.
By landing at Kruger Mpumalanga International Airport (KMIA),
German tourists will have quick access to the Kruger National Park.
ONLINE RESOURCES
Kruger Mpumalanga International Airport: www.kmiairport.co.za
Maputo Corridor Logistics Initiative: www.mcli.co.za
Railroad Association of South Africa: www.rra.co.za
South African National Roads Agency Ltd: www.sanral.co.za
55
The African-themed terminal
buildings at Kruger Mpumalanga
International Airport always make an
impression. Credit: KMIA

OVERVIEW
Tourism
A multi-pronged domestic promotion effort is underway.
SECTOR INSIGHT
The Southern Sun brand has
risen again.
Cultural and heritage tourism are markets with huge
potential. Credit: MTPA
The Mpumalanga Tourism and Parks Agency (MTPA) ran
an energetic winter campaign through the months of
June and July 2023, aimed at encouraging domestic
tourists to experience the province’s many attractions.
Partly based on the fact that Mpumalanga is relatively warmer
than many other parts of the country at that time, the campaign
was part of a broader campaign that has seen marketing efforts
ramped up.
Social media and radio were employed. As Mduduzi Vilakazi,
Acting CEO of the MTPA, said, “Our objective with this campaign is
to grow the domestic trips and regional arrivals to the destination.
We want to create awareness of Mpumalanga’s hidden gems, the
less-visited tourism offerings as well as promote affordable family
packages to some of our nature reserves.”
Another plank of the province’s marketing drive involved
persuading national broadcaster SABC to host its Metro FM awards
in Mpumalanga for three years, highlighting the arts and cultural
offerings in the province.
The focus has not been exclusively domestic, however.
The new flight from Frankfurt, Germany, to Kruger Mpumalanga
International Airport (KMIA) had delivered 182 tourists to the
province at the time of the State of the Province address by the
Provincial Premier in February 2023.
The flight had only been announced by Eurowings Discover,
a new division of Lufthansa, in 2022 and the first flight landed in
November of that year. Eurowings Discover was launched in July
2021 as a long-haul leisure airline. In May 2022 the airline had 16
aircraft. Flying three times a week
to Mbombela from Frankfurt via
Windhoek, it gives much more
direct access to the Kruger
National Park than had previously
been the case for international
tourists, who always used to have
to go through Johannesburg.
Plans are underway to
collaborate with the airline and
with South African Tourism to
conduct a city-to-city tour in
Europe to make more tourists
aware of Mpumalanga’s offering.
The Provincial Government
of Mpumalanga is looking for
more private partners to invest
in projects to boost an already
active sector that has several
superb tourism assets, ranging
from about 70 parks and reserves
to bird-watching, music festivals,
car rallies and casinos.
A total of R475-million in
public and private investments
has so far been raised for the
Skywalk project at God’s Window
in the Blyde River Canyon
Nature Reserve. The community
that owns the land will be a
shareholder. The aim is to attract
between 45 000 to 60 000
tourists to the Panorama tourism
route. The project is expected to
be completed in March 2025.
Another PPP project is the
development of a cable car
linking the Drierondavels viewing
site with Swadini Dam.
MPUMALANGA BUSINESS 2023/24
56

OVERVIEW
It’s not only the Big Five that attract attention. Waterbuck at Sabi
Sand Nature Reserve. Credit: Julie Olivier
The Kruger National Park is Mpumalanga’s most famous tourism
asset and it falls under South African National Parks (SANParks).
Other notable landmarks include the Blyde River Canyon and the
Makhonjwa Mountains, which have been declared a World Heritage
Site by the United Nations Educational‚ Scientific and Cultural
Organization (UNESCO). During her 2023 State of the Province
Address, Premier Refilwe Mtshweni-Tsipane referenced a number
of additions that will go into making the site more accessible to
academics and casual tourists alike: an education centre, geo-sites
and geo-trails are all planned.
Although the province already caters for motor-rally enthusiasts,
cyclists, runners, walkers, fishers, horse-riders, tree-gliders, abseilers,
white-water rafters and rock-climbers, there is still potential for more
investment in the ecotourism and adventure tourism subsectors.
Hotels
As of May 2022, Tsogo Sun Hotels again adopted the Southern
Sun brand. With the fairly recent acquisition of the Hazyview Sun,
ONLINE RESOURCES
Mpumalanga Gaming Board: www.mgb.org.za
Mpumalanga Tourism and Parks Agency: www.mtpa.co.za
South African National Parks: www.sanparks.co.za
South African Tourism Services Association: www.satsa.com
the group has a total of seven
properties in the province,
ranging from two StayEasys to
Southern Sun Emnotweni in
Nelspruit.
Tsogo Sun, as distinct from
Tsogo Sun Hotels which is no
more, has interests in casinos
and gaming and runs two
hotels in Witbank (eMalahleni),
The Ridge Hotel and the
RidgePoint Hotel.
Protea Hotels by Marriott
has two properties in
Mpumalanga, Protea Hotel
Kruger Gate and Nelspruit. At
White River, Premier Hotel The
Winkler is 20 minutes’ drive
from the Numbi Gate of the
Kruger National Park.
Forever Resorts has a big
presence in the province,
catering to caravanners,
campers and holiday-makers
wanting to stay in chalets.
There is also a four-star Forever
Resorts Mount Sheba.
The Graceland Hotel Casino
and Country Club is a Peermont
resort in Secunda.
The hotel and conference
centre project in Middelburg
is making progress and should
be completed in 2023. The
R350-million luxury facility
in the Steve Tshwete Local
Municipality is a public-private
partnership. Akani Properties,
a black-owned property
development company, will
work with the Radisson Hotel
Group to deliver the 150-bed
hotel and convention centre.
More than 100 new
job opportunities have
been created so far on the
project, and more than 20
local contractors have been
engaged. ■
57 MPUMALANGA BUSINESS 2023/24

OVERVIEW
ICT
A Mpumalanga coal mine is using 5G.
SECTOR INSIGHT
ICT is a critical research
theme at the University of
Mpumalanga.
ONLINE RESOURCES
Seda Technology Programme: www.seda.org.za
State Information Technology Agency: www.sita.co.za
Universal Service and Access Agency of South Africa: www.usaasa.org.za
Canyon Coal’s Phalanndwa Colliery, pictured, is South Africa’s
first smart mine. Located near Delmas, the mine produced
1.7-million tons of run-of-mine coal in 2022.
Together with Minetec Smart Mining, Huawei and MTN
are partnering to keep the mine and plant connected and monitored
using high-speed broadband, through the site’s 5G connectivity.
The same partners are working together in Limpopo on a platinum
mine and it is expected that many more mines will follow these pilot
projects in trying to make the country’s mining sector safer and
more automated.
ICT has been chosen as one of the University of Mpumalanga’s
six critical research themes. Operating under the title of Information
and Communication Technology for Development (ICT4D), it intends
to present easy adoption and use of ICT resources for the betterment
of people’s day-to-day activities. Sub-themes are ICT in education,
cybersecurity, Internet of Things and data analytics.
The university offers a Diploma in ICT in Applications
Development, a three-year course carrying 360 credits and a levelsix
qualification. Three years
after starting to offer free WiFi
in its operating areas, Glencore
Coal and partner Project Isizwe
celebrated estimated savings in
data costs of more than R100-
million. Having started with 10
hotspots in Ogies and Phola in
the eMalahleni Municipality, the
initiative was expanded to the
Steve Tshwete and Emakhazeni
municipalities where 30 hotspots
now function. Communities are
consuming more than 28 000GB
of data for free every month.
Project Isizwe is a non-profit
organisation that partners with
Internet Service Providers to
provide equitable Internet access.
The MTN SA Foundation
supports several schools in
Mpumalanga as part of MTN’s
Back to School campaigns. Eleven
schools have multi-media centres,
each with 20 computer desks,
chairs and teacher stations. The
computer laboratories have one
server, a multifunctional printer,
an interactive whiteboard, a
data projector, a router and
data connectivity to MTN for
24 months. The province’s
new boarding school, Izimbali
Combined MST, also has a
40-seater laboratory courtesy of
the MTN SA Foundation. ■
MPUMALANGA BUSINESS 2023/24
58

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OVERVIEW
Education and training
Digital skills are coming to Mpumalanga.
SECTOR INSIGHT
Mpumalanga has three
TVET colleges.
The CEOs of SAFCOL, Tsepo Monaheng, and CHIETA,
Yershen Pillay, recently signed an MoU.
As part of a programme to spread skills to young people living
in rural areas, an eco-friendly SMART Skills Centre is to
be built in Sabie. The timber structure results from a partnership
between the Chemical Industries Education and
Training Authority (CHIETA) and the South African Forest Company
Limited (SAFCOL).
CHIETA aims to provide digital technology and online learning
to help young people compete in the job market. Among the
forestry-related skills that the centre will focus on are drone
operators, but it will also respond to national skills needs such as
fitters and turners. SAFCOL will cover the cost of erecting the ecofriendly
wooden structure and CHIETA will supply the equipment.
The development of the Komati Training Facility to facilitate the
reskilling and retraining of Eskom employees and members of the
community has begun. Eskom has signed a partnership agreement
with the South African Renewable Energy Technology Centre
(SARETEC) of the Cape Peninsula University of Technology and the
Global Energy Alliance for People and Planet (GEAPP) to develop
the training facility.
Four new primary schools have been completed in areas where
the population has been growing, namely Magogeni, Mpumelelo,
New Klarinet and Mbatini. A further five schools, including
Mkhondo Boarding School, are set for completion in the course of
2023. Designs for Long-Tom Secondary and Rockdale Extension 24
are being finalised and construction will begin in 2023/24.
The Funza Lushaka Bursary Scheme will be used to encourage
Grade 12 matriculants to consider pursuing Grade R teaching as
part of a scheme to strengthen
Early Childhood Development.
The Ephraim Mogale Bursary
Scheme supported 1 370
students in different universities
within the country and the
Mpumalanga Department
of Education supported 221
students at various level in the
Federal Republic of Russia.
Tertiary progress
On a hill north of the Crocodile
River a complex of buildings is
taking shape as home to the
province’s first university. By
building on existing institutions
such as teacher training colleges,
the University of Mpumalanga
has progressively offered more
courses and taken on more
students. The official launch was
in October 2013 and by 2020,
the university was offering 26
qualifications to 4 200 students.
The university currently offers
48 programmes in three faculties:
Education; Agriculture and
Natural Sciences; and Economics
and Business Sciences. There are
plans to add new programmes
at both undergraduate and
postgraduate levels and
to establish the faculty of
Humanities and Social Sciences
and the School of Law. By 2024,
the plan is to offer approximately
MPUMALANGA BUSINESS 2023/24
60

70 qualifications to over 8 000 students. That is the
year in which the university’s first doctoral graduates
will be capped. Research relevant to the needs of the
province can now be done at local level. Issues such
as acid mine water leaking from abandoned mining
sites and new applications for products in the timber
industry are among the kinds of research that will
boost economic productivity in Mpumalanga, and
lead to better socio-economic conditions for citizens.
University of Mpumalanga students have
distinguished themselves in competitions run by
ENACTUS, an international organisation that works with leaders in
business and higher education to mobilise university students to
make a difference in their communities while developing the skills
to become socially responsible business leaders. Mpumalanga
students have won first place in categories such as LED Challenge,
Triple Bottom Sustainability and Community Development.
Among the anchor sponsors are Barloworld, Ford, Harmony Gold,
MTN and Nedbank.
Training institutions
Mpumalanga has three Technical and Vocational Education and
Training (TVET) colleges, with an enrolment of over 36 000. UNISA,
the Tshwane University of Technology and the Vaal University of
Technology also have satellite campuses in the province.
The TVET colleges are located in each of the province’s three
District Municipalities: Gert Sibande (four campuses and a skills
academy), Nkangala and Ehlanzeni, which has six campuses, a skills
centre and a satellite campus.
Ehlanzeni TVET College offers 10 National Certificate
(Vocational) programmes including ICT, Finance, Economics and
Accounting, Engineering and Related Design and Tourism. There
are also a number of shorter skills courses on offer.
Nkangala TVET College offers Civil Engineering and Building
Construction at its CN Mahlangu campus and Electrical
Infrastructure Construction at three of its five campuses, among
its seven NCV academic programmes. The Mpumalanga Regional
ONLINE RESOURCES
Mpumalanga Department of Education:
www.mpumalanga.gov.za/education
Sasol bursaries: www.sasolbursaries.com
Southern African Wildlife College: www.wildlifecollege.org.za
University of Mpumalanga: www.ump.ac.za
The University of Mpumalanga is building
impressive facilities.
Training Trust (MRTT) is a
Section 21 company active
in skills training. The Fluor
Training Centre in Secunda
offers training in fields such as
fitting, welding, pipefitting and
other building trades.
The Southern African
Wildlife College, offering
diploma and short courses in
conservation, is a joint World
Wide Fund for Nature South
Africa (WWF-SA) and Peace
Parks Foundation initiative.
The college is located near the
Orpen Gate on the edge of the
Kruger National Park.
Sasol is a major supporter
of research and training in
the province. A group of
Mpumalanga teachers has
had the opportunity to train
as master teachers for Robotics
and Coding, courtesy of Sasol.
The Sasol Foundation
has also donated multimedia
resources for teachers and
pupils in Science, Technology,
Engineering and Mathematics
(STEM). Awards for students
who achieve in science and
mathematics are regularly
given and Sasol supports
many students on bursaries at
universities and colleges. The
Sasol SGS Global Learning SHE
Academy is located in Evander. ■
61 MPUMALANGA BUSINESS 2023/24

OVERVIEW
Banking and financial
services
Banking while shopping is becoming commonplace.
Being able to do one’s banking at somewhere that is not a
bank is not a new concept. However, TymeBank, one of the
newer entrants onto the South African banking scene, is
taking the concept of “retail banking” to another level. Having
run banking kiosks within retailers such as Pick n Pay and Boxer for
several years, TymeBank has signed a deal with TFG, a group that has
a big presence in the Mpumalanga. There are no fewer than 24 Exact
stores in Mpumalanga, from Acorn Plaza to Witbank.
What used to be known as the Foschini Group has 34 brands,
including Markhams, Totalsports, Jet and Dial a Bed, and 30-million
customers. In the short term, TymeBank will have access to 600 TFG
kiosks, taking the bank’s total in South Africa to 1 450.
Another relatively new bank is Capitec. Investment holding
company PSG has reduced its holding in Capitec Bank from 32% to
4%, earning about R4-billion by selling those shares.
Discovery Bank officially launched in March 2019 and is
experiencing rapid growth with deposits of R3.7-billion. Discovery
Bank is applying the behavioural model it uses in its health business
to reward good financial behaviour.
In 2022, financial services group Old Mutual received permission
from the prudential authority of the South African Reserve Bank to
apply for a banking licence. The bank will spend R1.75-billion on
setting up the bank and intends to launch in 2024.
Ubank, with a history of catering to mineworkers, was found
by the South African Reserve Bank to have an unacceptable capital
adequacy ratio in May 2022 and was consequently placed under
curatorship. Teba Trust Fund, which owns Ubank, was actively
seeking a strategic investor when the curatorship was announced.
The administrators of the fund are the National Union of Mineworkers
(NUM) and Minerals Council SA. One of the banks being courted was
the South African arm of Nigeria’s Access Bank Group and Minerals
Council SA remains positive about the future of the bank.
Despite the collapse of VBS Mutual Bank in 2018, the appetite for
mutual banks is strong, given the nature of the South African market.
ONLINE RESOURCES
Financial Sector Conduct Authority: www.fsca.co.za
Public Investment Corporation: www.pic.gov.za
South African Reserve Bank: www.resbank.co.za
SECTOR INSIGHT
Old Mutual has permission to
start a bank.
The Young Women in Business
Network (YWBN) has been
granted a mutual bank licence
and Bank Zero also intends to use
the mutual model.
South Africa’s four big retail
banks (Nedbank, Absa, Standard
Bank and First National Bank)
have a solid presence in the major
towns in the province.
Agriculture is an important
focus area for banks, and most
have specialised divisions.
Piet Retief-based TWK Agri
offers financing and insurance
together with the usual suite of
agricultural services. Afgri, one of
the country’s biggest agricultural
companies, offers financial
services (financing and insurance)
under the brand Unigro. ■
Credit: Seda
MPUMALANGA BUSINESS 2023/24
62

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OVERVIEW
Development finance and
SMME support
The transition to a green economy may bring opportunities.
With the transition to a greener economy a key trend,
the Provincial Government of Mpumalanga wants
to leverage the coming change in the economic
landscape to benefit small businesses.
In partnership with the Presidential Climate Commission, the Climate
Investment Fund and the World Bank, opportunities are being explored
for SMMEs and co-operatives to participate in the green economy.
The Premier’s Youth Development Fund allocated R92.3-million to
36 companies in the financial year to February 2023 in sectors such as
agriculture, manufacturing, mining and transport and logistics. Since it was
launched, the fund has disbursed R140-million to businesses in each one of
the province’s 17 local municipalities. In order to further spread the reach of
the fund, roadshows are to be held in rural areas.
The provincial government is committed to allocating 30% of the
provincial procurement budget to enterprises owned by women, youth
and people with disabilities.
Research done by the Small Enterprise Development Agency (Seda)
shows that a high percentage of SMMEs in Mpumalanga are in the trade
and accommodation sector. Whereas the national figure is about 43%, in
Mpumalanga it is closer to 50%. Seda supports several incubators in the
province: Furntech, furniture manufacturing, White River; Mobile Agro-
Skills Development & Training (MASDT), agricultural training, Nelspruit;
Mpumalanga Stainless Initiative (MSI), stainless-steel processing, Middelburg
(with Columbus Stainless); Timbali floriculture, Nelspruit; Ehlanzeni TVET
College Rapid Incubator Renewable Technologies, Nelspruit. TVET stands
for technical and vocational education training.
The Gert Sibande Centre for Entrepreneurship in Evander hosts a Rapid
Incubator in partnership with Seda. The aim is to promote and develop
young entrepreneurs in the province. The Centre was established in 2015
through a partnership between the Gert Sibande TVET College, the DSBD
and the University of Johannesburg.
Entrepreneurship Development is one of the subjects on offer at 90 Youth
Development Centres which are being established. Sappi’s extensive supply
chain allows for a varied and extensive enterprise supplier development
ONLINE RESOURCES
Gert Sibande TVET College: www.gscollege.edu.za
Mpumalanga Economic Growth Agency: www.mega.gov.za
Mpumalanga Stainless Initiative: www.mpstainless.co.za
Small Enterprise Development Agency: www.seda.org.za
SECTOR INSIGHT
TechnoServe helps tomato
growers meet higher standards.
programme which supports 37
companies, which in turn employ
more than 300 people.
Other companies supporting
SMMEs through their buying chain
include Woolworths and Anglo
American. Woolworths funds
TechnoServe to ensure that small
tomato growers can grow produce
that will meet the demanding
standards of the retailer, and to help
them expand production.
Premier Refilwe Mtshweni-
Tsipane has paid tribute to
private companies for providing
employment opportunities to
local people and for continuing
to support small and emerging
businesses. Bursary programmes
and training programmes were also
acknowledged. The companies
mentioned were Sasol, Exxaro,
Eskom, Sappi, Columbus Stainless,
Samancor, RCL foods, Mondi, Safcol,
Glencore, Standard Bank, Absa Bank,
Nedbank and First National Bank. ■
MPUMALANGA BUSINESS 2023/24 64

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