Mpumalanga Business 2023-24
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.
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.
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ter: @Mtpatourism | Instagram: @mpumalangatourism<br />
MPUMALANGA BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN MPUMALANGA<br />
2021/22<br />
MPUMALANGA<br />
MPUMALANGA<br />
BUSINESS<br />
BUSINESS<br />
ourism<br />
THE GUIDE TO BUSINESS AND INVESTMENT IN<br />
MPUMALANGA PROVINCE<br />
THE GUIDE TO BUSINESS AND INVESTMENT IN<br />
MPUMALANGA PROVINCE<br />
rything a tourist could want.<br />
JOIN US JOIN ONLINE US ONLINE<br />
MPUMALANGA BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN MPUMALANGA<br />
history. The many heritage sites in the area include the<br />
Samora Machel monument near Mbuzini and the Barberton<br />
Makhonjwa Mountains World Heritage Site (pictured),<br />
boasting rock formations dating back more than 3.5-billion<br />
years. Other sites not to be missed are the mining village of<br />
Pilgrim’s Rest, the Highveld Heritage Route (which abounds<br />
with adventurous tales from history), the stone circles of<br />
<strong>Mpumalanga</strong> and Goliath’s footprint to name just a few.<br />
<strong>Mpumalanga</strong> is rich in culture and boasts the Swazi, Ndebele<br />
and Shangaan people with icons like Dr Esther Mahlangu<br />
who has managed to preserve, package and export the<br />
vibrant geometric art of the Ndebele globally.<br />
Bird watchers can have a glimpse of more than 500<br />
different birds endemic to the Kruger National Park or the town<br />
of Chrissiesmeer, the centre of South Africa’s own Lake District<br />
where four river systems start their journeys across the country.<br />
The small tourist town of Dullstroom is referred to<br />
as South Africa’s trout-fishing mecca. <strong>Mpumalanga</strong> is an<br />
ideal sporting destination with several world-class golf<br />
courses and the Mbombela Stadium that was built for<br />
the FIFA World Cup in 2010 and has subsequently hosted<br />
2018/19<br />
MPUMALANGA<br />
BUSINESS<br />
THE GUIDE TO BUSINESS AND INVESTMENT<br />
IN MPUMALANGA PROVINCE<br />
<strong>2023</strong>/<strong>24</strong> EDITION<br />
2021/22 EDITION<br />
2018/19 EDITION<br />
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international football and rugby matches. Get off the<br />
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| WWW.LIMPOPOBUSINESS.CO.ZA<br />
beaten track and explore the many other tourism offerings<br />
of the <strong>Mpumalanga</strong> Province.<br />
MPUMALANGA
Contributing to the<br />
lifeblood of the province<br />
whilst unlocking the<br />
power of trees for a<br />
better tomorrow<br />
Sappi Southern Africa has been providing the lifeblood for the<br />
province of <strong>Mpumalanga</strong> through its commercial plantations and its<br />
manufacturing facilities for many decades. Contributing over<br />
ZAR5.5 billion annually to the local economy, more than 43,000<br />
people in the province depend on the company for their livelihood.<br />
And all while the company is building a thriving world with a<br />
biobased circular economy. Utilising innovative approaches, we<br />
champion responsible forestry as we cultivate more purpose and<br />
value from each tree, by-product and resource. Our products are<br />
sustainable alternatives extracted from woodfibre to reduce the<br />
need for fossil-based materials used in everyday products.<br />
sappi.com
MESSAGE<br />
The transformative power of business<br />
and investment<br />
Investors are encouraged to investigate the wealth of opportunities in<br />
<strong>Mpumalanga</strong>, writes Isaak Mahlangu, CEO of the <strong>Mpumalanga</strong> Economic<br />
Growth Agency.<br />
Isaac Mahlangu, CEO, MEGA<br />
It is with great pleasure that I address you as the<br />
CEO of the <strong>Mpumalanga</strong> Economic Growth<br />
Agency (MEGA). As the driving force behind<br />
the economic development of our remarkable<br />
province, it is my privilege to provide you with<br />
this message in the esteemed pages of the<br />
<strong>Mpumalanga</strong> <strong>Business</strong> journal.<br />
Over the years, <strong>Mpumalanga</strong> has emerged as<br />
a prime destination for business and investment<br />
opportunities. With its abundant natural resources,<br />
strategic location and vibrant communities, our<br />
province offers an environment conducive to<br />
growth and prosperity. We are committed to<br />
fostering an ecosystem that nurtures innovation,<br />
entrepreneurship and sustainable development.<br />
As we navigate through the challenges<br />
brought by the global economic landscape,<br />
<strong>Mpumalanga</strong> remains steadfast in its dedication<br />
to fostering economic growth. We understand<br />
that collaboration is key and we actively seek<br />
Renewable Energy. Seriti Green, a subsidiary of Seriti<br />
Resources, is investing in South Africa’s biggest wind farm<br />
in <strong>Mpumalanga</strong>. Credit: Gustavo Quepón on Unsplash<br />
Mining. Exxaro is one of <strong>Mpumalanga</strong>’s biggest<br />
employers, with ownership of three coal mines<br />
and a partnership in a fourth. Credit: Exxaro<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong><br />
2
E<br />
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MESSAGE<br />
2018/19<br />
MPUMALANGA<br />
partnerships with both local and international<br />
investors who share our vision of a thriving<br />
economy that uplifts all our citizens.<br />
Tourism. The Blyde River Valley is one of<br />
<strong>Mpumalanga</strong>’s many iconic tourism jewels.<br />
Credit: SA Tourism.<br />
Agribusiness. TSB Sugar mills tens of thousands<br />
of tons of sugar at its Komati Mill.<br />
Credit: Bosch Holdings<br />
Comprehensive support<br />
Our agency works tirelessly to provide<br />
comprehensive support to businesses and investors.<br />
We offer a range of services from market intelligence<br />
and investment facilitation to regulatory guidance<br />
and access to funding. Whether you are a seasoned<br />
investor or a budding entrepreneur, we are here to<br />
assist you at every step of your journey, ensuring<br />
that you have the necessary tools to succeed in our<br />
dynamic market.<br />
Furthermore, we recognise the importance<br />
of sustainable development in today’s world.<br />
<strong>Mpumalanga</strong> Province prides itself on its<br />
commitment to environmental stewardship,<br />
social responsibility, inclusive growth and a just<br />
energy transition to a carbon-free future. We strive<br />
to strike a balance between economic progress<br />
and the preservation of our natural heritage,<br />
creating a future that is prosperous, equitable and<br />
environmentally sustainable.<br />
I encourage you, as potential investors, to explore<br />
the wealth of opportunities that <strong>Mpumalanga</strong><br />
has to offer. Whether you are interested in our<br />
booming mining sector, renewable energy projects,<br />
agribusiness or tourism ventures, our province has<br />
the potential to fulfil your aspirations.<br />
Together, let us shape the future of<br />
<strong>Mpumalanga</strong>’s business landscape and contribute<br />
to the growth and prosperity of our province. I invite<br />
you to engage with us, to collaborate, and to seize<br />
the possibilities that lie before us.<br />
Thank you for your continued support, and I look<br />
forward to witnessing the transformative power of<br />
business and investment in <strong>Mpumalanga</strong>. ■<br />
3 MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong>
CONTENTS<br />
<strong>Mpumalanga</strong> <strong>Business</strong> <strong>2023</strong>/<strong>24</strong> Edition<br />
Introduction<br />
Foreword 8<br />
<strong>Mpumalanga</strong>’s unique guide to business and investment.<br />
Special features<br />
Regional overview of <strong>Mpumalanga</strong> 12<br />
The transition away from coal and other fossil fuels presents a huge<br />
challenge but in <strong>Mpumalanga</strong> a series of innovative and bold partnerships is<br />
tackling the task head on. South Africa’s biggest wind farm project has also<br />
begun in the province previously known for coal and power stations.<br />
<strong>Mpumalanga</strong> Trade and Investment Profile 15<br />
The <strong>Mpumalanga</strong> Economic Growth Agency (MEGA) profiles the province’s<br />
economy and outlines specific investment opportunities.<br />
Going green 26<br />
<strong>Mpumalanga</strong> is famously fertile, but it’s a different kind of green that is<br />
changing the energy landscape of South Africa’s biggest power producer.<br />
Economic sectors<br />
Agriculture 38<br />
The macadamia industry is growing fast.<br />
Forestry and paper 39<br />
An agroforestry project plans to convert unused land.<br />
Mining 42<br />
Energy and efficiency are key for the province’s miners.<br />
Oil and gas 48<br />
Sasol partnerships point to a new path.<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong><br />
4
<strong>Mpumalanga</strong>:<br />
a world-class tourism<br />
destination<br />
A South African province that has everything a tourist could want.<br />
Travellers should prepare to be astounded by the natural attractions<br />
and experiences that are on offer in <strong>Mpumalanga</strong>. It is South Africa’s<br />
most easterly province, endowed with an extraordinary richness<br />
of natural beauty from canyons and waterfalls and with scope<br />
for a huge diversity of adventures and experiences ranging from<br />
encounter-rich game drives to paragliding. <strong>Mpumalanga</strong> offers a<br />
wide array of activities for the active tourist, ranging from abseiling<br />
to white-water-river rafting, with fly-fishing, paragliding, mountain<br />
biking, bungee jumping, hiking, 4x4 trails and many outdoor<br />
adventure activities in between.<br />
<strong>Mpumalanga</strong> is undoubtedly the ultimate destination<br />
in terms of wildlife experience. The Kruger National Park,<br />
Manyeleti, Loskop Dam and numerous private game reserves<br />
dotted throughout the region offer an exhilarating experience<br />
that brings visitors closer to nature. <strong>Mpumalanga</strong> boasts a<br />
conservancy area that is rich with diverse flora and fauna.<br />
The Panorama Route offers spectacular landscapes with<br />
attractions like the Blyde River Canyon (third-largest in the<br />
world and known as a “green canyon” because of its subtropical<br />
vegetation, pictured). The province also boasts majestic waterfalls<br />
and high-altitude scenic drives leading to attractions like God’s<br />
Window, Bourke’s Luck Potholes and the Three Rondavels.<br />
<strong>Mpumalanga</strong>’s rich heritage is still largely unexplored<br />
but more and more visitors are being exposed to fascinating<br />
history. The many heritage sites in the area include the<br />
Samora Machel monument near Mbuzini and the Barberton<br />
Makhonjwa Mountains World Heritage Site (pictured),<br />
boasting rock formations dating back more than 3.5-billion<br />
years. Other sites not to be missed are the mining village of<br />
Pilgrim’s Rest, the Highveld Heritage Route (which abounds<br />
with adventurous tales from history), the stone circles of<br />
<strong>Mpumalanga</strong> and Goliath’s footprint to name just a few.<br />
<strong>Mpumalanga</strong> is rich in culture and boasts the Swazi, Ndebele<br />
and Shangaan people with icons like Dr Esther Mahlangu<br />
who has managed to preserve, package and export the<br />
vibrant geometric art of the Ndebele globally.<br />
Bird watchers can have a glimpse of more than 500<br />
different birds endemic to the Kruger National Park or the town<br />
of Chrissiesmeer, the centre of South Africa’s own Lake District<br />
where four river systems start their journeys across the country.<br />
The small tourist town of Dullstroom is referred to<br />
as South Africa’s trout-fishing mecca. <strong>Mpumalanga</strong> is an<br />
ideal sporting destination with several world-class golf<br />
courses and the Mbombela Stadium that was built for<br />
the FIFA World Cup in 2010 and has subsequently hosted<br />
international football and rugby matches. Get off the<br />
beaten track and explore the many other tourism offerings<br />
of the <strong>Mpumalanga</strong> Province.<br />
For more information:<br />
Email: info@mtpa.co.za and reservations@mtpa.co.za<br />
Website: www.mpumalanga.com<br />
Facebook: <strong>Mpumalanga</strong> Tourism and Parks Agency | Twitter: @Mtpatourism | Instagram: @mpumalangatourism
Travellers should prepare to be astounded by the natural attractions<br />
and experiences that are on offer in <strong>Mpumalanga</strong>. It is South Africa’s<br />
most easterly province, endowed with an extraordinary richness<br />
of natural beauty from canyons and waterfalls and with scope<br />
for a huge diversity of adventures and experiences ranging from<br />
encounter-rich game drives to paragliding. <strong>Mpumalanga</strong> offers a<br />
wide array of activities for the active tourist, ranging from abseiling<br />
to white-water-river rafting, with fly-fishing, paragliding, mountain<br />
biking, bungee jumping, hiking, 4x4 trails and many outdoor<br />
adventure activities in between.<br />
<strong>Mpumalanga</strong> is undoubtedly the ultimate destination<br />
in terms of wildlife experience. The Kruger National Park,<br />
Manyeleti, Loskop Dam and numerous private game reserves<br />
dotted throughout the region offer an exhilarating experience<br />
that brings visitors closer to nature. <strong>Mpumalanga</strong> boasts a<br />
conservancy area that is rich with diverse flora and fauna.<br />
The Panorama Route offers spectacular landscapes with<br />
attractions like the Blyde River Canyon (third-largest in the<br />
world and known as a “green canyon” because of its subtropical<br />
vegetation, pictured). The province also boasts majestic waterfalls<br />
and high-altitude scenic drives leading to attractions like God’s<br />
Window, Bourke’s Luck Potholes and the Three Rondavels.<br />
<strong>Mpumalanga</strong>’s rich heritage is still largely unexplored<br />
but more and more visitors are being exposed to fascinating<br />
history. The many heritage sites in the area include the<br />
Samora Machel monument near Mbuzini and the Barberton<br />
Makhonjwa Mountains World Heritage Site (pictured),<br />
boasting rock formations dating back more than 3.5-billion<br />
years. Other sites not to be missed are the mining village of<br />
Pilgrim’s Rest, the Highveld Heritage Route (which abounds<br />
with adventurous tales from history), the stone circles of<br />
<strong>Mpumalanga</strong> and Goliath’s footprint to name just a few.<br />
<strong>Mpumalanga</strong> is rich in culture and boasts the Swazi, Ndebele<br />
and Shangaan people with icons like Dr Esther Mahlangu<br />
who has managed to preserve, package and export the<br />
vibrant geometric art of the Ndebele globally.<br />
Bird watchers can have a glimpse of more than 500<br />
different birds endemic to the Kruger National Park or the town<br />
of Chrissiesmeer, the centre of South Africa’s own Lake District<br />
where four river systems start their journeys across the country.<br />
The small tourist town of Dullstroom is referred to<br />
as South Africa’s trout-fishing mecca. <strong>Mpumalanga</strong> is an<br />
ideal sporting destination with several world-class golf<br />
courses and the Mbombela Stadium that was built for<br />
the FIFA World Cup in 2010 and has subsequently hosted<br />
international football and rugby matches. Get off the<br />
beaten track and explore the many other tourism offerings<br />
of the <strong>Mpumalanga</strong> Province.<br />
For more information:<br />
Email: info@mtpa.co.za and reservations@mtpa.co.za<br />
Website: www.mpumalanga.com<br />
Facebook: <strong>Mpumalanga</strong> Tourism and Parks Agency | Twitter: @Mtpatourism | Instagram: @mpumalangatourism<br />
MPUMALANGA<br />
Manufacturing 50<br />
New sectors are arising from the green economy.<br />
Transport and logistics 54<br />
The Maputo Corridor is performing well for logistics companies.<br />
Tourism 56<br />
A multi-pronged domestic promotion effort is underway.<br />
ICT 58<br />
A <strong>Mpumalanga</strong> coal mine is using 5G.<br />
Education and training 60<br />
Digital skills are coming to <strong>Mpumalanga</strong>.<br />
Banking and financial services 62<br />
Banking while shopping is becoming commonplace.<br />
Development finance and SMME support 64<br />
The transition to a green economy may bring opportunities.<br />
MPUMALANGA<br />
MPUMALANGA<br />
BUSINESS<br />
THE GUIDE TO BUSINESS AND INVESTMENT IN<br />
MPUMALANGA PROVINCE<br />
MPUMALANGA BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN MPUMALANGA<br />
2021/22<br />
<strong>Mpumalanga</strong>:<br />
a world-class tourism<br />
destination<br />
THE GUIDE TO BUSINESS AND INVESTMENT IN<br />
MPUMALANGA PROVINCE<br />
A South African province that has everything a tourist could want.<br />
JOIN US JOIN ONLINE US ONLINE<br />
MPUMALANGA BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN MPUMALANGA<br />
2018/19<br />
MPUMALANGA<br />
BUSINESS<br />
THE GUIDE TO BUSINESS AND INVESTMENT<br />
IN MPUMALANGA PROVINCE<br />
<strong>2023</strong>/<strong>24</strong> EDITION<br />
2021/22 EDITION<br />
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2018/19 EDITION<br />
ABOUT THE COVER:<br />
Top left, then clockwise: <strong>Mpumalanga</strong>’s tourist offering is unrivalled,<br />
SA Tourism; Citrus, Meri Global Export; Mining, Sasol; Ngodwana Mill,<br />
Sappi; Smelter, Yasin HM on Unsplash; A new campus, University of<br />
<strong>Mpumalanga</strong>; Sunflower, Freepik.<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong><br />
6
TBWA\HUNT\LASCARIS 940402<br />
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Email getconnected@mtn.com
FOREWORD<br />
<strong>Mpumalanga</strong> <strong>Business</strong><br />
A unique guide to business and investment in <strong>Mpumalanga</strong>.<br />
Credits<br />
Publishing director:<br />
Chris Whales<br />
Editor: John Young<br />
Managing director: Clive During<br />
Online editor: Christoff Scholtz<br />
Designer: Tyra Martin<br />
Production: Yonella Ngaba<br />
Ad sales:<br />
Gavin van der Merwe<br />
Sam Oliver<br />
Gabriel Venter<br />
Vanessa Wallace<br />
Shiko Diala<br />
Administration & accounts:<br />
Charlene Steynberg<br />
Kathy Wootton<br />
Sharon Angus-Leppan<br />
Distribution and circulation<br />
manager: Edward MacDonald<br />
Printing: FA Print<br />
The <strong>2023</strong>/<strong>24</strong> edition of <strong>Mpumalanga</strong> <strong>Business</strong> is the 14th issue of this<br />
successful publication that since its launch in 2008 has established<br />
itself as the premier business and investment guide for the province.<br />
Introduced by a warm message of welcome to potential<br />
investors from the CEO of the <strong>Mpumalanga</strong> Economic Growth Agency<br />
(MEGA), this edition of the journal also contains the official <strong>Mpumalanga</strong><br />
Investment Prospectus, a comprehensive survey of the province’s assets<br />
and the potential of the region. Major catalytic projects such as the Nkomazi<br />
Special Economic Zone (NSEZ) and the <strong>Mpumalanga</strong> International Fresh<br />
Produce Market (MIFPM) are examined in detail, outlining how producers,<br />
processors and logistics firms stand to benefit and where there is potential<br />
for investment.<br />
In addition to the Prospectus, the journal contains a special feature on how<br />
the province is leading the field in going green in various projects across several<br />
sectors. Sector overviews give up-to-date news on what is going on in the key<br />
sectors of the provincial economy, as well as giving a more general view of<br />
conditions pertaining to that sector.<br />
To complement the extensive local, national and international distribution<br />
of the print edition, the full content can also be viewed online at www.<br />
globalafricanetwork.com. Updated information on <strong>Mpumalanga</strong> is also<br />
available through our monthly e-newsletter, which you can subscribe to online<br />
at www.gan.co.za, in addition to our complementary business-to-business titles<br />
that cover all nine provinces, our flagship South African <strong>Business</strong> title and the<br />
new addition our list of publications, Journal of African <strong>Business</strong>, which was<br />
launched in 2020. ■<br />
Chris Whales<br />
Publisher, Global Africa Network Media | Email: chris@gan.co.za<br />
DISTRIBUTION<br />
<strong>Mpumalanga</strong> <strong>Business</strong> is distributed internationally on<br />
outgoing and incoming trade missions, through trade and<br />
investment agencies; to foreign offices in South Africa’s<br />
main trading partners around the world; at top national<br />
and international events; through the offices of foreign<br />
representatives in South Africa; as well as nationally and<br />
regionally via chambers of commerce, tourism offices, airport<br />
lounges, provincial government departments, municipalities<br />
and companies.<br />
Member of the Audit Bureau<br />
of Circulations<br />
COPYRIGHT | <strong>Mpumalanga</strong> <strong>Business</strong> is an independent publication<br />
published by Global Africa Network Media (Pty) Ltd. Full copyright<br />
to the publication vests with Global Africa Network Media (Pty) Ltd.<br />
No part of the publication may be reproduced in any form without<br />
the written permission of Global Africa Network Media (Pty) Ltd.<br />
PHOTO CREDITS | Airlink; Canyon Coal; CHIETA; COFCO International;<br />
ENERTRAG; Eskom; Exact; Julie Olivier; University of <strong>Mpumalanga</strong>;<br />
Unsplash; Pan African Resources; Pexels; SAMAC; Sanral; Sappi; Seda;<br />
SCATEC: Standerton Mills; Terragrn; UNESCO, Unsplash.<br />
PUBLISHED BY<br />
Global Africa Network Media (Pty) Ltd<br />
Company Registration No: 2004/004982/07<br />
Directors: Clive During, Chris Whales<br />
Physical address: 28 Main Road, Rondebosch 7700<br />
Tel: +27 21 657 6200 | Fax: +27 21 674 6943<br />
Email: info@gan.co.za | Website: www.gan.co.za<br />
ISSN 2222-3274<br />
DISCLAIMER | While the publisher, Global Africa Network Media (Pty)<br />
Ltd, has used all reasonable efforts to ensure that the information<br />
contained in <strong>Mpumalanga</strong> <strong>Business</strong> is accurate and up-to-date, the<br />
publishers make no representations as to the accuracy, quality,<br />
timeliness, or completeness of the information. Global Africa Network<br />
will not accept responsibility for any loss or damage suffered as a result<br />
of the use of or any reliance placed on such information.
Kruger Lowveld Chamber<br />
of <strong>Business</strong> and Tourism<br />
The voice of business in Ehlanzeni.<br />
As the official representative body of business and tourism in<br />
the Kruger Lowveld (Ehlanzeni District), our main mandates<br />
are to promote the region as a tourism and investment destination,<br />
to provide a diverse suite of networking and marketing<br />
opportunities for our members, and to represent and speak<br />
on behalf of the business and tourism community of our area. We do<br />
this by building and maintaining meaningful relationships with all<br />
spheres of government as well as like-minded organisations, and by<br />
acting as liaison between these entities and the business community.<br />
KLCBT’s president is Professor David Mabunda (pictured).<br />
Area of operation<br />
The Kruger Lowveld covers the Ehlanzeni District of <strong>Mpumalanga</strong>,<br />
including the following local municipalities: City of Mbombela, Thaba<br />
Chweu, Nkomazi and Bushbuckridge, as well as the southern part<br />
of Kruger National Park and the surrounding private nature reserves.<br />
Member benefits<br />
Listing on website, Pay-to-Play participation in various marketing<br />
services and projects, weekly newsletter, invitations to all KLCBT<br />
events, advocacy and representations made by KLCBT on behalf of<br />
members, access to preferential arrangements negotiated by KLCBT<br />
with service providers, brochure display at Crossing Centre office,<br />
various sponsorship options, access to tender information. We are<br />
actively involved in the following advocacy campaigns:<br />
Service delivery:<br />
Public participation in various forums where government engages<br />
with stakeholders regarding budgets, planning and legislation.<br />
Promote home-grown businesses through education processes,<br />
research, maintaining a database, lobbying for stricter regulations<br />
Contact details<br />
Physical address: KLCBT House, Crossing Centre, Nelspruit<br />
Postal address: Private Bag X 11326, Nelspruit 1200<br />
Tel: +27 13 755 1988 Fax: +27 13 753 2986<br />
Email: business@klcbt.co.za and tourism@klcbt.co.za<br />
Website: www.klcbt.co.za<br />
Professor David Mabunda<br />
on large shopping chains,<br />
engaging large chains to buy<br />
local and to spend their CSI<br />
budgets locally.<br />
Local Economic Development:<br />
We are assisting with<br />
incubation in seven main<br />
corridors, mainly adding additional<br />
tourism products.<br />
Anti-corruption: Several<br />
successful initiatives reduced<br />
roadside corruption.<br />
Water: Bulk-water supply faces<br />
a future crisis and lobbying for<br />
the increase of storage capacity<br />
is beginning to show success.<br />
Roads and public attractions:<br />
Require upgrades and<br />
investment.<br />
Safety and security: A concern<br />
for all regions in SA. ■<br />
9<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong>
MESSAGE<br />
Ensuring success for local businesses<br />
in all spheres<br />
By Kagiso Moncho, General Manager: Northern Region, MTN <strong>Business</strong><br />
addition to expanding our network, MTNSA is<br />
investing R1.5-billion to ensure availability and<br />
resilience in the face of persistent loadshedding.<br />
The MTN network is at the heart of all our ICT<br />
solutions, enabling organisations of all sizes and<br />
from all sectors to continue growing. Augmented<br />
by the ongoing rollout of our 5G network, our<br />
comprehensive solution stack helped public<br />
and private sector organisations enhance their<br />
operations over the past year, and <strong>2023</strong> has already<br />
seen local companies using technology to find<br />
new ways to do things to accommodate for the<br />
challenges they are facing in their industries.<br />
When it comes to South Africa’s<br />
economic growth, most people<br />
don’t think of the Northern Region.<br />
However, <strong>Mpumalanga</strong> is home to<br />
some of the country’s most vital industries. From<br />
mining, to manufacturing, agriculture, the bulk of<br />
our power infrastructure, <strong>Mpumalanga</strong> helps keep<br />
the country running effectively while producing<br />
around 7.6% of our GDP.<br />
Unfortunately, our region has its fair share of<br />
challenges, but MTN is proud to be able to say<br />
that we are actively investing in solutions that<br />
we hope will help overcome some of them. In<br />
Network improvements<br />
The improvements we are making to our network<br />
– and through those, to all of our offerings – are<br />
the latest step towards achieving MTN’s Ambition<br />
2025: To provide leading digital solutions for<br />
Africa’s progress. As an important region that is<br />
part of the six that make up MTN South Africa’s<br />
focus areas, <strong>Mpumalanga</strong> is front and centre of<br />
how we are approaching the digital future.<br />
As MTN’s 5G network and IoT ecosystem<br />
grows, this province will come to be a technology<br />
leader. Already, local mines and farms are looking<br />
at different ways that sensor-connected systems<br />
can help make them more efficient and we are<br />
leveraging our capabilities and partnerships to<br />
help them create roadmaps to achieve their goals.<br />
SMMEs, which are the bedrock of South Africa’s<br />
economic growth, are also turning to technology<br />
to stay competitive. We believe that SMMEs should<br />
have access to the same kind of support that large<br />
organisations do, and MTN is proud to be assisting<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong><br />
10
MESSAGE<br />
local SMMEs with their technology requirements,<br />
whether that is access to affordable connectivity<br />
solutions, cloud services like Microsoft Teams and<br />
Office 365, or access to digital financial services.<br />
MTN has been helping facilitate payments<br />
in <strong>Mpumalanga</strong> for many years, providing small<br />
businesses with an easy way to send and receive<br />
money. Mobile Money continues to grow, with<br />
millions of people in the region using it on a daily basis.<br />
When the going gets tough, the tough get our<br />
support<br />
MTN has long been the supplier of choice for the<br />
public sector in the <strong>Mpumalanga</strong> Province, and our<br />
focus will remain on helping government agencies<br />
improve their service delivery in <strong>2023</strong>. We already have<br />
existing long-term relationships with the Department<br />
of Education and the Department of Health, along<br />
with many municipalities, and are looking forward to<br />
growing those partnerships in the future.<br />
We have implemented plans to enable<br />
better access to connectivity in rural areas,<br />
further assisting service delivery mandates in<br />
the <strong>Mpumalanga</strong> Province, not to mention<br />
helping more people access the tools they need<br />
for modern connected life. To that end, we have<br />
ramped up investment into preventative measures<br />
to ensure the resilience of the network.<br />
In addition to loadshedding, the MTN network<br />
has to contend with the threats of vandalism and<br />
copper theft. We have therefore taken a holistic<br />
approach to improving network availability.<br />
This includes investment into, and deployment<br />
of, additional backup battery and generator<br />
capacity, as well as power contingencies such<br />
as <strong>24</strong>x7x365 monitoring and response to ensure<br />
there is no downtime. MTN has also implemented<br />
software-defined power-saving features on base<br />
stations during higher stages of loadshedding to<br />
ensure 100% availability.<br />
MTN is also embarking on strategic and tactical<br />
plans to reduce reliance on the Eskom power<br />
grid so that future bouts of loadshedding won’t<br />
impact service availability. These plans include<br />
the implementation of bespoke solutions that<br />
are less reliant on traditional network topologies,<br />
collaboration with strategic partners to offer<br />
additional resilience and increased network<br />
capacity to cater for the increase in demand during<br />
loadshedding periods. We are also accelerating fibre<br />
distribution and optimising existing fibre routes.<br />
As local businesses continue to deal with<br />
the impact of loadshedding, not to mention<br />
having to find solutions to help them stay<br />
ahead in a challenging economic environment,<br />
MTN is proud to be able to provide the support<br />
and relief they need to remain competitive.<br />
<strong>Mpumalanga</strong> will continue to be strong a focus<br />
area for us in the year ahead, and a long time<br />
to come. This is why our local team, led by Basil<br />
Ntlatleng, is dedicated to enabling <strong>Mpumalanga</strong>’s<br />
business community in the face of ever-changing<br />
consumer and market trends.<br />
Meet Basil Ntlatleng<br />
Boasting extensive cross-functional business<br />
and technology experience in a fast-moving<br />
industry with rapidly changing business<br />
requirements and technologies, as well as<br />
experience in servicing private and public<br />
sector customers locally and internationally,<br />
Basil Ntlatleng has over 20 years’ experience<br />
within the Information and Communications<br />
Technology (ICT) sector in Sales and Regional<br />
Management, <strong>Business</strong> Development and Team<br />
Leadership across the globe.<br />
Basil is driven to help his team meet and<br />
exceed customer-acquisition and revenuegrowth<br />
targets by keeping the company<br />
competitive and innovative. He is committed<br />
to gaining a deep understanding of customer<br />
needs, expectations and pain points to optimise<br />
business growth. With ever-changing consumer<br />
and market trends, he steers diverse operational<br />
areas and provides strategic solutions to complex<br />
organisational challenges across Large Enterprise,<br />
Public Sector and SMME as well as MTN’s Branded<br />
Retail Channel, BRC. ■<br />
Email: Basil.Ntlatleng@mtn.com<br />
11 MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong>
A REGIONAL OVERVIEW OF<br />
MPUMALANGA<br />
PROVINCE<br />
The Sand River flows through the Sabi Sand Nature Reserve before joining the Sabie River in the Kruger<br />
National Park. Credit: Julie Olivier<br />
The transition away from coal and other fossil fuels presents a<br />
huge challenge but in <strong>Mpumalanga</strong> a series of innovative and bold<br />
partnerships is tackling the task head on. South Africa’s biggest<br />
wind farm project has also begun in the province previously known<br />
for coal and power stations.<br />
By John Young<br />
Partnerships are springing into being in every<br />
sector of the economy. Whether they are<br />
between government agencies, research<br />
institutes or between local and international<br />
companies, collaboration is all the rage.<br />
And the province of <strong>Mpumalanga</strong> is leading<br />
the way. With <strong>Mpumalanga</strong>’s economy being so<br />
strongly geared towards coal (in mining and for<br />
energy generation) it makes sense that actors in a<br />
variety of sectors should be finding ways to work<br />
together to transition to a greener future.<br />
At national level, President Ramaphosa was<br />
an invited guest in June <strong>2023</strong> to the Summit for a<br />
New Global Financing Pact in Paris, partly at least<br />
because South Africa is partnering with several<br />
European countries and international institutions<br />
in green financing arrangements. Various other<br />
countries are taking their lead from the Just Energy<br />
Transition Partnership whereby South Africa will<br />
get $8.5-billion in financing provided by France,<br />
Germany, the United Kingdom, the United States<br />
and the European Union.<br />
Separate to that deal, the prime ministers of the<br />
Netherlands and Denmark came to South Africa<br />
to sign an agreement to start a green hydrogen<br />
fund to be known as the SA-H2. Concession<br />
funding from the Netherlands will also be made<br />
available for water and energy infrastructure while<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong><br />
12
SPECIAL FEATURE<br />
<strong>Mpumalanga</strong>’s Grootvlei power station, earmarked<br />
for closure or conversion, will be the site of a pilot<br />
project focussed on growing food in greenhouses,<br />
hopefully providing jobs for those who lose their<br />
jobs related to coal.<br />
Sasol is engaging in new partnerships with<br />
increasing frequency, as outlined in some detail<br />
in the Oil and Gas sector overview in this journal.<br />
From green hydrogen to sustainable aviation fuel<br />
(SAF), South Africa’s biggest chemicals and energy<br />
company is signing agreements with Germans<br />
and Danes while cooperating with entrepreneurial<br />
technical startups out of Oxford University.<br />
The field is ripe for innovation and partnerships are<br />
speeding up the process of discovery. MTN, Huwaei<br />
and Minetech Smart Mining are working together in<br />
a 5G pilot project at an <strong>Mpumalanga</strong> coal mine.<br />
Even in winding down old resources,<br />
partnerships have been chosen as the preferred<br />
method. A Mine Water Coordinating Body (MWCB)<br />
has successfully been launched to help manage<br />
the after-effects of the closure of mines and power<br />
stations. Many of <strong>Mpumalanga</strong>’s coal-fired power<br />
stations are either in the process of being closed<br />
or will shortly be shut down and the same is true<br />
of some coal mines that have reached the end of<br />
their lives. Eskom, together with mining houses<br />
Exxaro, Glencore and Thungela Resources, formed<br />
the MWCB to address environmental and socioeconomic<br />
challenges that might arise.<br />
Issues such as water also fall under the ambit of<br />
a broader mine-industry related coalition known<br />
as the Impact Catalyst which has been launched<br />
in <strong>Mpumalanga</strong>.<br />
Local green moves<br />
The Provincial Government of <strong>Mpumalanga</strong> has<br />
established the <strong>Mpumalanga</strong> Green Cluster Agency<br />
to bring together government, academia and<br />
industry to create the environment for businesses<br />
to develop in a green economy.<br />
The Cluster, an initiative of the <strong>Mpumalanga</strong><br />
Department of Economic Development and<br />
Tourism with the support of GreenCape and<br />
the Deutsche Gesellschaft für Internationale<br />
Zusammenarbeit (GIZ), has joined the International<br />
Cleantech Network, a group that has 15 000<br />
businesses affiliated to it across the globe.<br />
National utility Eskom is also moving into the<br />
new era, partly through a process whereby the entity<br />
will be broken into three more competitive units, but<br />
more immediately through the announcement of 18<br />
winning bids from independent power producers<br />
(IPPs) for renewable projects on Eskom land, 4 000ha<br />
of which the utility has made available for this first<br />
phase. Eskom owns 36 000ha in the province. A total<br />
of 1 800MW will become available to the grid and<br />
it will be cheaper to transmit because the solar or<br />
wind plants will be right next to the existing Eskom<br />
transmission lines.<br />
Ten coal plants are due to be closed by<br />
2040, with four <strong>Mpumalanga</strong> plants (Hendrina,<br />
Grootvlei, Camden and Komati) first in line. Eskom is<br />
undertaking studies to assess the potential impact<br />
on local communities of these closures. Options to<br />
get these plants producing energy again include gas,<br />
biomass and hydrogen but it is possible they might<br />
be used for something quite different. Eskom wants<br />
to be a net-zero company by 2050.<br />
National government’s Renewable Energy<br />
Independent Power Producer Procurement<br />
Programme (REIPPPP) has seen the investment into<br />
this totally new sector of more than R200-billion<br />
since 2012 and South Africa is now home to 112 IPPs,<br />
whereas just 12 years ago there were fewer than 40<br />
in Sub-Saharan Africa.<br />
The relaxation by national government of the<br />
rules regarding setting up a power plant of 100MW<br />
or less is well suited to the requirements of big<br />
timber-processing companies such as Sappi and<br />
PG Bison and all the large mining concerns that are<br />
active in <strong>Mpumalanga</strong>. Sappi is a partner in a 25MW<br />
biogas energy facility at it Ngodwana Mill.<br />
Investment options<br />
Several infrastructure investment projects in the<br />
tourism sector have been put forward by the<br />
<strong>Mpumalanga</strong> Economic Growth Agency (MEGA).<br />
There is a special focus on BRICS countries and the<br />
province was glad to welcome the announcement of<br />
a new flight into Kruger <strong>Mpumalanga</strong> International<br />
Airport in 2022 by the tourist division of Lufthansa,<br />
Eurowings Discover. The TRILAND partnership with<br />
Eswatini and Mozambique is another avenue, as<br />
is the collaboration with KwaZulu-Natal, Eswatini,<br />
Mozambique and the Seychelles.<br />
13 MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong>
The University of <strong>Mpumalanga</strong> is offering degrees<br />
relevant to its citizens as it expands.<br />
MEGA is an equity investor in a number of<br />
<strong>Mpumalanga</strong> concerns, including Afrimat, Highveld<br />
Fruit Packers, Kangwane Anthracite, Loopspruit<br />
Winery and Tekwane Lemon Farm.<br />
In the Nkangala District Municipality, a publicprivate<br />
partnership is due to deliver a hotel and<br />
conference centre in the town of Middelburg in<br />
the Steve Tshwete Local Municipality. It may seem<br />
ironic that R350-million is to be spent on a Radissonbranded<br />
hotel in the aftermath of Covid-19 but<br />
conferences and tourism will return.<br />
Elsewhere, mining and timber companies are<br />
making large investments in increased production<br />
or in extending the life of mines.<br />
A major concern for provincial planners<br />
is to diversify the economy and to grow the<br />
manufacturing sector. The <strong>Mpumalanga</strong> Economic<br />
Growth and Development Path (MEGDP)<br />
identifies beneficiation, agro-processing and the<br />
development of value chains as priorities. Various<br />
industrial parks are planned which will focus on<br />
agriculture and forestry, mining and metals and<br />
petrochemicals. An International Fresh Produce<br />
Market in Nelspruit and the planned Nkomazi SEZ<br />
(Special Economic Zone) are other priorities.<br />
Steel and associated manufacturing remains<br />
one of the province’s strong suits and <strong>Mpumalanga</strong><br />
has rich and varied mineral resources and fertile<br />
soil that support diverse farming operations,<br />
agriprocessing and forestry. The province also hosts<br />
large companies in the manufacturing sector such<br />
as Middelburg Ferrochrome and the Manganese<br />
Metal Company.<br />
The province’s rich agricultural produce is used<br />
by companies such as McCain, Nestlé and PepsiCo<br />
and there are also pulp and paper plants (Sappi<br />
and Mondi), with PG Bison set to start producing<br />
more than 1000m³/d per annum at its Mkhondo<br />
particleboard plant after two investment injections<br />
of R600-million (on a press and forming line) and<br />
R560-million (on a front-end dryer).<br />
York Timbers is another forestry company and<br />
the sugar mills and refinery of RCL Foods (formerly<br />
TSB Sugar) along with fertiliser facilities and textile<br />
manufacturing concerns are all contributors to the<br />
provincial economy.<br />
The southern half of the eastern limb of the<br />
platinum-rich Bushveld Igneous Complex runs<br />
south towards the towns of Lydenburg and<br />
Machadodorp. Deposits of chromite, magnetite and<br />
vanadium in this area are the basis of the ferro-alloy<br />
complex in Witbank-Middelburg and Lydenburg.<br />
The town of eMalahleni is the centre of the<br />
coal industry. Other minerals found in the province<br />
include gold, platinum-group minerals, chromite,<br />
zinc, cobalt, copper, iron and manganese.<br />
Middelburg is home to Columbus Stainless,<br />
South Africa’s only producer of stainless steel, and<br />
several big engineering works. It is about 130km<br />
from Pretoria and less than three hours’ drive from<br />
the Malelane Gate of the Kruger National Park.<br />
The Kruger National Park remains the province’s<br />
most-visited asset but the decision by UNESCO to<br />
afford World Heritage Site status to the Makhonjwa<br />
Mountains near Barberton will boost geological<br />
tourism to the province and supports the efforts of<br />
the province to diversify its offerings. Major projects<br />
to improve tourist experiences are underway at<br />
the Graskop Gorge (where a transparent lift takes<br />
tourists into the depths of the gorge), a Skywalk is to<br />
be built at God’s Window and a cable car is planned<br />
for Three Rondavels.<br />
The international body’s decision has also<br />
had the effect of expanding the curriculum at the<br />
University of <strong>Mpumalanga</strong>. On the basis of the<br />
UNESCO ruling, UMP has a new offering in geology<br />
as part of a BSc degree. ■<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong><br />
14
THE PLACE OF THE RISING SUN<br />
MPUMALANGA<br />
TRADE & INVESTMENT PROFILE<br />
MPUMALANGA IS OPEN FOR BUSINESS
WHY INVEST IN MPUMALANGA?<br />
• 68% of land area in the province is used by agriculture<br />
• <strong>Mpumalanga</strong>’s three biggest sectors are manufacturing, mining and agriculture<br />
<strong>Mpumalanga</strong>’s diverse and resource-rich economy makes it one of the most<br />
attractive trade and investment destinations in South East Africa.<br />
A large, growing domestic market and excellent access, supported by worldclass<br />
infrastructure, to the East African and Indian Ocean markets through<br />
Maputo Port makes <strong>Mpumalanga</strong> an ideal investment location for export-driven<br />
manufacturing and production.<br />
<strong>Mpumalanga</strong> is one of South Africa’s most productive and important agricultural<br />
regions and through strategic investments in the <strong>Mpumalanga</strong> International<br />
Fresh Produce Market (MIFPM) and the Nkomazi Special Economic Zone (NSEZ)<br />
the province is set to become a major force in food production and distribution.<br />
<strong>Mpumalanga</strong>’s sophisticated and well-segmented tourism and hospitality<br />
sector in a post-Covid world is ripe for investment and expansion.<br />
<strong>Mpumalanga</strong>’s STRATEGIC LOCATION makes it<br />
a valuable transport and logistics hub<br />
<strong>Mpumalanga</strong><br />
UNIQUE SELLING PROPOSITION<br />
• Abundant resources: minerals and agricultural produce<br />
• Established manufacturing infrastructure: smelters,<br />
petrochemicals, food processing, paper, sugar<br />
• Strategic location, access to regional and<br />
global markets<br />
• Tourism hotspots: the iconic Kruger National Park,<br />
world-class reserves, adventure tourism and new<br />
UNESCO World Heritage Site<br />
• <strong>Mpumalanga</strong> International Fresh Produce<br />
Market (MIFPM)<br />
• Nkomazi Special Economic Zone (NSEZ)<br />
• The new University of <strong>Mpumalanga</strong><br />
• Support for Green Economy research and investment<br />
A province in eastern<br />
South Africa, bordering<br />
the nations of Swaziland<br />
and Mozambique<br />
• Maputo Development Corridor enhances logistics<br />
• Preferential access to lucrative EU market<br />
• Proximity to South Africa’s economic heartland<br />
• Access to regional SADC market: 360-million population<br />
• Access to deepwater Port of Maputo<br />
Capital City<br />
Mbombela<br />
(Nelspruit)<br />
Population<br />
4.5-million people<br />
Main major towns<br />
Ermelo<br />
eMalahleni<br />
Middelburg<br />
Secunda<br />
Airport Kruger <strong>Mpumalanga</strong> International Airport<br />
MPUMALANGA’S ECONOMY<br />
The provincial economy of <strong>Mpumalanga</strong> is exceptionally diverse.<br />
Established industries in the province include Mining, Stainless<br />
Steel, Petrochemicals, Pulp and Paper, Ferro-Alloys, Energy<br />
Generation, Tourism, Agriculture and Agro-Processing.<br />
Companies in these sectors include global giants in their<br />
industries such as Sasol (energy and chemicals), Sappi<br />
(paper, packaging, pulp and forests), Samancor Chrome<br />
(ferrochrome), Sibanye-Stillwater and Glencore (mining).<br />
AGRICULTURE 3%<br />
COMMUNITY<br />
SERVICE 19%<br />
FINANCE<br />
14%<br />
TRANSPORT 6%<br />
MINING 20%<br />
TRADE 14%<br />
MANUFACTURING<br />
15%<br />
ELECTRICITY 7%<br />
CONSTRUCTION<br />
2%<br />
District GVA by district<br />
38% 34%<br />
Nkangala<br />
Ehlanzeni<br />
28%<br />
Gert<br />
Sibanda<br />
The province’s commercial farmers are among the most efficient in the world,<br />
exporting huge quantities of everything from citrus to macadamia nuts. Columbus<br />
Stainless is the only stainless-steel manufacturer on the continent.<br />
GOVERNANCE<br />
The province has three district municipalities and 17 local municipalities. Several<br />
agencies which promote the regional economy report to the <strong>Mpumalanga</strong> Provincial<br />
Government. Large parts of the province comprises extensive rural villages that<br />
form part of areas run by traditional authorities.<br />
TRANSPORT<br />
Two airports at Hoedspruit and Mbombela (Kruger <strong>Mpumalanga</strong> International Airport,<br />
KMIA) plus many airfields. Extensive freight rail network, busiest in South Africa. N4<br />
highway (Maputo Corridor) is an east-west spine of a highly-developed road system.
ABOUT MEGA<br />
The <strong>Mpumalanga</strong> Economic Growth Agency (MEGA) is the official Economic<br />
Development Agency for the <strong>Mpumalanga</strong> Provincial Government.<br />
MEGA’s primary mandate is to foster the sustainable growth and development of <strong>Mpumalanga</strong>’s economy through<br />
its operational activities of Trade and Investment Promotion, Development Funding, Equity Investments, and<br />
Property and Infrastructure Development. The Agency remains accountable to the <strong>Mpumalanga</strong> Department of Economic<br />
Development and Tourism (DEDT). MEGA is the foreign investor’s or trader’s first point of contact for doing successful<br />
business in <strong>Mpumalanga</strong> Province. Through the Trade and Investment Promotion Division, the Agency provides a variety<br />
of services to potential investors and trading partners.<br />
PLANNING THE WAY FORWARD<br />
National government has articulated a Nine-Point Plan which seeks to prioritise projects<br />
that will tackle key economic issues. MEGA is aligned with the plan, which include issues<br />
relevant to growing the provincial economy:<br />
• revitalise agriculture and the agro-processing chain<br />
• advancing mineral beneficiation<br />
• implementing the Industrial Policy Action Plan (IPAP) effectively<br />
• unlocking the potential of SMMEs, cooperatives and township and rural enterprises<br />
• resolving the energy challenge<br />
• stabilising the labour market<br />
• upscaling private investment<br />
• investment in science and technology, water and sanitation, transport<br />
and broadband connectivity<br />
The Maputo Development Corridor is South Africa’s leading<br />
Spatial Development Initiative (SDI), linking <strong>Mpumalanga</strong> Province,<br />
Gauteng Province and the Nkomazi Special Economic Zone with<br />
the deepwater Port of Maputo in Mozambique. This efficient<br />
corridor provides investors and exporters with good access to the<br />
export markets of South East Africa, the Indian Ocean Rim and<br />
Far East Asia. The Maputo Development Corridor comprises road,<br />
SOUTH AFRICA<br />
MEGA SERVICES<br />
MEGA staff will go out of their way to make the process of investing in <strong>Mpumalanga</strong><br />
or starting a business in the province easy. MEGA is focussed on customer needs<br />
and provides innovative solutions with a high level of service. Services include:<br />
• Foreign Trade Promotion<br />
• Investment Promotion<br />
• Funding<br />
• Property Management<br />
and Infrastructure<br />
Development<br />
MAPUTO DEVELOPMENT CORRIDOR<br />
Lydenburg<br />
rail, Special Economic Zone, border posts, port and terminal<br />
facilities. The corridor runs through the most highly industrialised<br />
and productive regions of Southern Africa. The Corridor has been<br />
extensively upgraded to international standards and links the<br />
industrial heartland of South Africa to its nearest port in Maputo,<br />
Mozambique, which is one of the fastest-growing countries in<br />
South East Africa.<br />
Sabie<br />
MOZAMBIQUE<br />
Middelburg<br />
Belfast<br />
Mbombela<br />
Komatipoort<br />
JOHANNESBURG<br />
Carolina<br />
SWAZILAND<br />
MAPUTO
KEY SECTORS AGRICULTURE<br />
Agriculture in <strong>Mpumalanga</strong> is responsible for 3% of the<br />
province’s gross value added by region (GVA-R) and can<br />
be divided into the following categories (see map, right).<br />
AGRICULTURE<br />
SUMMER CEREALS &<br />
LEGUMES<br />
MAIZE Maize meal<br />
SOYA Meal, Edible oil<br />
CANOLA Edible oil<br />
SUNFLOWER Edible oil<br />
TROPICAL &<br />
SUBTROPICAL FRUIT<br />
CANE SUGAR Sugar /<br />
confectionery<br />
CITRUS Juice & concentrate<br />
MANGOES Dried, frozen,<br />
juice & concentrates<br />
LITCHIS Dried, frozen,<br />
juice & concentrates<br />
AVOCADOES Avocado oil<br />
GUAVA Dried, frozen,<br />
juice & concentrates<br />
MACADAMIA NUTS<br />
Processed & confectionery<br />
<strong>Mpumalanga</strong> Province is one of South Africa’s most productive and<br />
important agricultural regions and plays a key role in the export profile of<br />
South Africa, primarily in fruit and nuts. The province’s economic diversity<br />
extends into the agriculture sector where the natural topography of the<br />
province divides this sector between the Highveld and Lowveld Regions.<br />
The Highveld Region in the west of the province is at<br />
an elevation of between 4 000 and 6 000 feet above<br />
sea level. This allows for the large-scale and commercial<br />
production of cereals and legumes like maize, soya,<br />
canola and sunflower.<br />
The subtropical region of the <strong>Mpumalanga</strong> Lowveld<br />
plays a key role in the agricultural export profile of the<br />
province, primarily in fruit and nuts.<br />
<strong>Mpumalanga</strong> Province is one of the world largest<br />
producers and exporters of citrus fruit. Duty-free<br />
exports of South African citrus to the USA under the<br />
African Growth and Opportunity Act (AGOA) reached a<br />
peak of 91 000 tons in 2020 ($94.9-million) and are<br />
expected to continue their strong annual growth as the<br />
USA is still considered a premium market.<br />
REGIONAL PRODUCE<br />
Highveld<br />
Lowveld<br />
HIGHVELD: Summer cereals and legumes:<br />
maize, soya, canola, sunflower.<br />
Animal products: bovine meat, swine,<br />
sheep and poultry.<br />
LOWVELD: Subtropical and citrus fruits,<br />
nuts and cane sugar.<br />
<strong>Mpumalanga</strong> Province is the world’s largest<br />
producer and exporter of macadamia nuts.<br />
The province earned $207-million in exports in<br />
2019, $76-million of this to the US. There have<br />
been major new investments in processing<br />
facilities in <strong>Mpumalanga</strong>.<br />
<strong>Mpumalanga</strong>’s rich agricultural produce is<br />
utilised by companies such as McCain, Nestlé<br />
and PepsiCo.<br />
9:1<br />
<strong>Mpumalanga</strong>’s<br />
ratio of commercial<br />
farmers to<br />
small-scale<br />
farmers<br />
KEY SECTORS FORESTRY<br />
Forestry is a key driver for the development of <strong>Mpumalanga</strong>’s<br />
rural economy and a major provider of job opportunities.<br />
About 40% of SA’s sustainable forests are located in<br />
<strong>Mpumalanga</strong> Province.<br />
The industry comprises logging, saw-milling, wood products, wood board, pulp and paper as<br />
well as specialised cellulose. Specialised cellulose is a sought-after natural, renewable fibre<br />
with a wide range of uses in the textile, consumer goods, foodstuff and pharmaceutical<br />
industries and is produced in large quantities at Sappi Ngodwana.<br />
R9.5<br />
billion<br />
Amount invested<br />
in the foresty<br />
industry<br />
PG Bison has recently invested R560-million in<br />
a new front-end dryer for its particleboard plant<br />
in Mkhondo (Piet Retief). The company is also<br />
building a new medium-density fibreboard (MDF)<br />
plant at its <strong>Mpumalanga</strong> plant.<br />
SAFCOL/Komatiland is the state forestry<br />
company with commercial and non-commercial<br />
operations covering a land area of 187 320ha.<br />
Sonae Arauco is a Portuguese investment. A<br />
new entrant, local BEE company the FX Group, is<br />
commissioning a greenfield particle board plant<br />
in Lothair in the Gert Sibande District.<br />
<strong>Mpumalanga</strong> has<br />
processing<br />
39plants<br />
out of 148 in South Africa<br />
MAIN EXPORTS<br />
PULP<br />
PAPER<br />
SPECIALISED CELLULOSE<br />
SAWN LUMBER<br />
WOOD CHIPS<br />
WATTLE EXTRACT<br />
MAJOR COMPANIES<br />
SAPPI<br />
SAFCOL<br />
SONAE ARAUCO<br />
PG BISON<br />
YORK TIMBERS<br />
FX GROUP
KEY SECTORS MINING, MINERALS AND ENERGY<br />
Mining is the province’s largest single sector, providing employment to 5.2% of the<br />
province’s workforce and making up 20% of gross value added by region (GVA-R).<br />
83%<br />
of South<br />
Africa’s<br />
coal<br />
production<br />
Coal: 83% of South Africa’s coal production, 50% of national coal reserves, third-largest<br />
coal-exporting region in the world. Coal is the lifeblood of provincial economy, fuelling 11<br />
Eskom power plants, which produce 80% of South Africa’s electricity. Coal is <strong>Mpumalanga</strong>’s<br />
single largest export product, shipping mainly to India and Pakistan.<br />
Other minerals: Gold mining takes place in Evander, Pilgrim’s Rest and Barberton. Gold is the<br />
second-largest export from the province. Platinum and chrome ore mining are located in the Steelpoort<br />
and Burgersfort areas in the north of the province and make up part of the Bushveld Igneous Complex.<br />
The mining services and technology industry is an important subsector in <strong>Mpumalanga</strong>. With over a<br />
century of commercial mining operations in the province, homegrown technologies are now exported<br />
around the globe.<br />
National utility Eskom will spend R3.3-billion on the revival of the Matla coal mine. Exxaro Resources<br />
will manage the project and do the mining while major companies such as DRA, Worley, Sandvik and<br />
WBHO will also be involved.<br />
Other companies engaged in expansion of life-of-mine projects are Pan African Resources and<br />
Evander (Elikhulu tailings), Exxaro Resources (Leeuwpan) and South32, which is spending about<br />
R4.3-billion at Klipspruit.<br />
Platinum is an important mineral for the modern economy. Two Rivers is a joint venture between<br />
Implats (46%) and African Rainbow Minerals which is located on the southern part of the eastern<br />
limb of the Bushveld Igneous Complex, 35km south-west of Burgersfort in <strong>Mpumalanga</strong>.<br />
Lydenburg is home to the Lion ferrochrome smelter that is a joint venture between Glencore<br />
and Merafe Resources.<br />
KEY SECTORS GREEN ECONOMY AND JET<br />
<strong>Mpumalanga</strong> has historically been at the heart of the South<br />
African energy and industrial complex and is still heavily<br />
reliant on the mining and burning of fossil fuels.<br />
The <strong>Mpumalanga</strong> Provincial Government has been proactive in exploring opportunities<br />
in the Green Economy and pursuing a just transition to a low-carbon economy which<br />
secures the future and livelihoods of workers and their communities.<br />
Achieving such a just transition would require an integration of economic opportunities<br />
in sectors outside of energy and mining.<br />
A Just Energy Transition (JET) to a Green Economy presents the following opportunities:<br />
• Renewable energy: solar, biomass, natural products<br />
• Gas and associated industries<br />
• Sustainable smart agriculture: environmentally-friendly<br />
agriculture and agricultural processing<br />
• Circular Green Economy: waste recycling, water reclamation, land rehabilitation<br />
• Soft infrastructure: reskilling and institutional capacity-building for a<br />
carbon-neutral future<br />
• Hard infrastructure: investment and expertise are needed in urban<br />
planning, water and waste management<br />
• Building technologies: greener and more energy-efficient<br />
• Transport and logistics: greener and more energy-efficient<br />
<strong>Mpumalanga</strong> has<br />
11<br />
MINERALS<br />
COAL Waste briquettes<br />
GOLD JEWELLERY<br />
CHROME<br />
PLATINUM<br />
IRON ORE<br />
VANADIUM<br />
MANGANESE<br />
GRANITE Building cladding<br />
& tombstone<br />
CLAY Porcelain & ceramics<br />
Electrical insulators<br />
50%<br />
of South Africa’s<br />
national coal<br />
reserves<br />
ESKOM POWER<br />
plants<br />
Specific opportunities include:<br />
• There are plans for the decommissioning<br />
of 11 000MW of Eskom’s coal-fired capacity<br />
by 2030. Opportunities<br />
are presented by repurposing land.<br />
• The vast new fields of natural gas found off<br />
the coast of Mozambique could have a big<br />
impact on the <strong>Mpumalanga</strong> economy.<br />
• A Renewable Energy Development Zone<br />
(REDZ) is planned for eMalahleni / Witbank<br />
where coal jobs are at risk.
KEY SECTORS MANUFACTURING<br />
Three primary pillars of the manufacturing sector in <strong>Mpumalanga</strong> account for more than<br />
60% of the output of the manufacturing sector, which overall makes up 15% of gross<br />
value added, regional (GVA-R).<br />
MAIN EXPORTS<br />
STAINLESS STEEL<br />
Cutlery<br />
Catering equipment<br />
Surgical instruments<br />
Automotive components<br />
STEEL White & grey goods<br />
Pipes & tubes<br />
Wire<br />
PETROCHEMICALS<br />
Plastic products<br />
Recycling plastics<br />
Artificial rubber products<br />
Paint & vanish<br />
Inks & dyes<br />
FOOD PROCESSING<br />
Maize meal<br />
Machinery<br />
Frozen & dehydrated<br />
VEGETABLES Preserves,<br />
pickles & condiments<br />
Nuts<br />
PAPER Recycling<br />
SUGAR Confectionery<br />
MINING Machinery<br />
and services<br />
RENEWABLE ENERGY<br />
Solar and biofuel<br />
Biomass<br />
Fuel, petroleum and chemical products are manufactured at the Sasol Secunda plant in Secunda, Gert Sibande<br />
District. It is one of the world’s largest synthetic fuels facilities, producing 60-million litres of liquid fuel a day.<br />
Products produced include petroleum, paraffin, jet fuel, creosote, bitumen and waxes.<br />
The ferro-alloy and stainless-steel industries are based in the Nkangala District. Columbus Stainless in<br />
Middelburg is Africa’s only producer of stainless-steel flat products. Samancor Chrome (Ferrometals),<br />
the world’s second-largest ferrochrome producer, has two plants in <strong>Mpumalanga</strong>.<br />
Agro-processing is mainly based in the Lowveld Region and consists of manufacturing forestry products<br />
(pulp, paper and cellulose), sugar at the Selati RCL Foods plants in Nkomazi and processing subtropical fruit<br />
and nuts.<br />
The province’s flourishing macadamia nut industry has a number<br />
of large processing facilities based around the provincial capital<br />
Mbombela. Subtropical fruits like mango, banana, papaya and citrus<br />
are processed into juice concentrate or dried for export.<br />
There is a geographical divide in the manufacturing sector. Fuel,<br />
petroleum and chemical production occurs in the southern Highveld<br />
Region clustered around Sasol’s plants.<br />
The northern Highveld area, including Middelburg and eMalahleni<br />
(Witbank), is home to ferro-alloy, steel and stainless-steel concerns.<br />
Creative thinking kicked in when Highveld Steel’s troubles reached<br />
a tipping point. The 1 000ha property in Emalahleni has been<br />
re-purposed as a multi-purpose site for industry and commerce.<br />
Called the Highveld Industrial Park, the project promotes a wide<br />
range of manufacturing enterprises.<br />
In the Lowveld, agricultural and forestry products are processed<br />
while Sappi’s giant mill is close to the company’s forests south-west<br />
of the provincial capital, Mbombela.<br />
KEY SECTORS TOURISM<br />
The importance of tourism to the economy of <strong>Mpumalanga</strong> cannot be<br />
overstated. The effect of the Covid-19 pandemic has been strongly felt.<br />
<strong>Mpumalanga</strong> received only 340 000 international visitors in 2020, down from 1.6-million international visitors<br />
in 2019. The key source countries were Mozambique, eSwatini, the USA, Germany, France and the UK.<br />
Domestic tourism has steadily increased. The total tourist foreign direct spend (TTFDS) in <strong>Mpumalanga</strong><br />
for 2020 was R7.5-billion, down from over R21-billion in 2019. The sector accounts for 6% of gross value<br />
added by region (GVA-R).<br />
The announcement in 2022 by Eurowings Discover, a new division of Lufthansa, that it would start flying<br />
three times a week to Mbombela from Frankfurt, via Windhoek, will give a certain boost to tourist numbers<br />
.6<br />
MILLION<br />
Number of visitors<br />
ANNUALLY pre-COVID-19<br />
21billion<br />
Rand value of tourist<br />
spend in <strong>Mpumalanga</strong>…<br />
before COVID-19<br />
visiting <strong>Mpumalanga</strong>. The Kruger National Park is <strong>Mpumalanga</strong>’s most famous tourist asset and safaris and hunting<br />
are major tourist attractions. The Manyeleti Reserve, a 23 750-hectare game reserve sharing a fenceless border<br />
with the Kruger National Park, is operated and managed by the <strong>Mpumalanga</strong> Tourism and Parks Agency (MTPA).<br />
God’s Window and the Blyde River Canyon Reserve are other provincial treasures attracting investment.<br />
<strong>Business</strong> travel, including conferencing, adventure, heritage and cultural tourism, all hold huge growth potential<br />
in <strong>Mpumalanga</strong>, but require investment in infrastructure and product development.<br />
A hotel and conference centre project in Middelburg is making progress and should be completed in <strong>2023</strong>.
INVESTMENT OPPORTUNITIES TOURISM<br />
Selected Strategic High Impact Projects:<br />
BOURKE’S LUCK POTHOLES HOTEL<br />
This natural water wonder is a major tourism attraction in the<br />
<strong>Mpumalanga</strong> Lowveld. This project presents an investment<br />
opportunity for a five-star hotel and a top-quality restaurant.<br />
Feasibility study: completed<br />
Environmental Impact Assessment (EIA): commenced<br />
Model: Joint Venture (JV), Build-Operate-Transfer (BOT)<br />
Value: R100-million<br />
BLYDE RIVER CANYON<br />
CABLE CAR PROJECT<br />
The Blyde River Canyon is the largest and deepest<br />
green canyon in the world and offers a spectacular<br />
opportunity to build a cable car transporting tourists<br />
from the top of the canyon to the peninsula below.<br />
Feasibility study: completed<br />
EIA: commenced<br />
Model: JV, BOT<br />
Value: R500-million<br />
GOD’S WINDOW SKY WALK<br />
The project to build a “Sky Walk” – an income-generating<br />
tourism attraction off the edge of the 700m God’s Window<br />
cliffs – giving 360-degree panoramic views out and down<br />
through a glass floor.<br />
Feasibility study: completed<br />
EIA: commenced<br />
Investors: secured<br />
Model: JV, BOT<br />
Value: R100-million<br />
3.7km<br />
500+<br />
13<br />
Length of one of Eastgate Airport’s runways at<br />
Hoedspruit, which doubles as an airforce base.<br />
The other runway is 2.1km<br />
Bird species recorded in the Kruger National Park,<br />
including the Kori Bustard, Martial Eagle, Southern<br />
Ground Hornbill and Lappetfaced Vulture<br />
Nature reserves are run by the <strong>Mpumalanga</strong><br />
Tourism and Parks Agency and Kruger National<br />
Park is run by SANParks
INVESTMENT OPPORTUNITIES PRODUCE MARKET<br />
Selected Strategic High Impact Projects: <strong>Mpumalanga</strong> International Fresh Produce Market<br />
MEGA is establishing a R1.2-billion fresh produce market facility<br />
located in Mbombela, the <strong>Mpumalanga</strong> International Fresh Produce<br />
Market (MIFPM). To date the province has invested an estimated<br />
R540-million in the project.<br />
<strong>Mpumalanga</strong> is one of South Africa’s most productive and important<br />
agriculture regions. It is home to predominantly tropical and subtropical<br />
crops and vegetables owing to its conducive climate. The tropical and<br />
subtropical crops consist of avocado, banana, citrus, ginger, granadilla,<br />
guava, litchi, macadamia nut, mango, papaya and pineapple.<br />
The vegetables produced include potatoes, tomatoes, pumpkins,<br />
sweet corn, onions, sweet potatoes, beetroot, carrots, green peas,<br />
cauliflower, cabbages and green beans.<br />
Site: The site is in Mbombela on a <strong>24</strong>8ha plot less than 10km<br />
from the Central <strong>Business</strong> District. It is situated within the Maputo<br />
Development Corridor (MDC), linking <strong>Mpumalanga</strong>, Gauteng Province<br />
and the Nkomazi Special Economic Zone with the deepwater Port of<br />
Maputo in Mozambique.<br />
The market: The market will give local farmers access to local,<br />
regional and international fresh produce markets and will aid in<br />
ensuring food security for the region.<br />
The infrastructure of the MIFPM will attract international as well as<br />
the large domestic food retailers as a key processing and distribution<br />
point. It will also secure <strong>Mpumalanga</strong>’s position in the regional export<br />
market in fresh produce.<br />
The market will offer:<br />
• Open trading halls for fruit and vegetables<br />
• A meat, fish and flower market<br />
• Complementary cold storage, ripening facilities and pallet handling<br />
• Processing facilities<br />
• An export hall<br />
• Bulk-breaking facilities for retail outlets<br />
• Links with statutory organisations such as customs, PPEBC<br />
and EuroGap<br />
• Transport and logistics enterprises<br />
• Shared collation and pack house facilities for SMMEs<br />
• Commercial services including banks and restaurants<br />
• A food bank for NGOs<br />
Feasibility study: completed<br />
EIA: completed<br />
Bulk infrastructure: completed<br />
Top structures: underway<br />
Model: JV, BOT<br />
Value: R1-billion<br />
INVESTMENT OPPORTUNITIES NKOMAZI SEZ<br />
Selected Strategic High Impact Projects: Nkomazi Special Economic Zone<br />
The Nkomazi Special Economic Zone has been officially designated<br />
and MEGA has been appointed to establish the entity.<br />
SEZs are geographically designated areas set aside for specifically<br />
targeted economic activities that are supported through special<br />
tax incentives. An SEZ aims to be an economic development tool to<br />
promote rapid economic growth by using various support measures<br />
to attract targeted foreign and domestic investments and technology.<br />
The main goal is to support the implementation of South Africa’s<br />
industrial development programme.<br />
Strategically positioned in the border town of Komatipoort,<br />
the SEZ offers a multi-sector base of operations along the H<br />
Maputo Development Corridor which provides exporters with<br />
good access through Maputo Port to the export markets of<br />
South East Africa, the Indian Ocean Rim and Far East Asia.<br />
The Nkomazi SEZ will target investment from the<br />
agriculture, agro-processing, nutraceuticals and fertiliser<br />
production sectors, as having a strong focus on logistics and<br />
trade services.<br />
The NSEZ offers the investor a unique and incentivised<br />
base of operations on the Maputo Development Corridor<br />
running through the most highly industrialised and<br />
productive regions of Southern Africa.<br />
The Maputo Corridor is bound to develop even more as<br />
the Maputo harbour improves its handling and scheduling<br />
Recreation<br />
capacity. In the event that a second rail line to Maputo to complement<br />
the current rail link is developed, the shipment of mining products<br />
and agricultural produce to and from the Limpopo and <strong>Mpumalanga</strong><br />
provinces will increase. MPUMALANGA – NKOMA<br />
The NSEZ is set to provide One-Stop-Shop services, incentives,<br />
innovation platform, a competitive and transparent market<br />
environment, and timeous and efficient responses to investors’<br />
market requirements.<br />
Manufacturing<br />
Convenience Retail<br />
Accommodation<br />
Centralised Facilities<br />
Logistics
FOREIGN TRADE<br />
<strong>Mpumalanga</strong> is proving to be a key player in the local<br />
economy as well as internationally.<br />
TOP 10 EXPORTS 2022<br />
1. Ferro Alloys R 35 billion US$ 1.9 billion<br />
2. Coal R 16 billion US$ 913 million<br />
3. Stainless Steel R 9.1 billion US$ 504 million<br />
4. Platinum R 6.9 billion US$ 385 million<br />
5. Gold R 5.8 billion US$ 322 million<br />
6. Macadamia Nuts R 4.1 billion US$ 229 million<br />
7. Chrome Ore R 2.4 billion US$ 138 million<br />
8. Manganese R 2.3 billion US$ 129 million<br />
9. Fuel Wood R 1.5 billion US$ 85 million<br />
2022/03/23<br />
10. Citrus Fruit R 576 million US$ 32 million<br />
ZI SEZ<br />
TOP 10 EXPORT MARKETS 2022<br />
1. Mozambique R 21 billion US$ 1.6 billion<br />
2. China R 9.5 billion US$ 529 million<br />
3. United States R 8.5 billion US$ 471 million<br />
4. Japan R 5.9 billion US$ 331 million<br />
5. Korea R 5.5 billion US$ 308 million<br />
6. Netherlands R 5.2 billion US$ 291 million<br />
7. India R 3.8 billion US$ 210 million<br />
8. eSwatini R 3.2 billion US$ 180 million<br />
9. UAE R 3.2 billion US$ 178 million<br />
10. Indonesia R 2.4 billion US$ 135 million
THE PERFECT LAUNCH PAD FOR AFRICA<br />
The African Continental Free Trade Area could revolutionise African trade:<br />
<strong>Mpumalanga</strong> is the perfect launch pad for manufacturers and exporters.<br />
start of trading under the AfCFTA Agreement<br />
from the beginning of 2021. Further meetings<br />
have been held to take the process forward in<br />
terms of details and practical measures.<br />
The nations covered by AfCFTA have an<br />
estimated combined GDP of $2.5-trillion<br />
and a population of over 1.2-billion.<br />
In terms of population, it will be the largest free<br />
trade area in the world. The AfCFTA envisages the<br />
Instrument of ratification deposited<br />
Parliamentary approval received or pending<br />
AfCFTA Agreement signed<br />
AfCFTA Agreement not signed<br />
The African Continental Free Trade Area (AfCFTA) has been agreed<br />
on by almost all African nations and holds the potential to change<br />
the nature and size of trading on the continent in profound ways.<br />
<strong>Mpumalanga</strong> Province, as a strategically-positioned<br />
region with a dynamic manufacturing sector and excellent<br />
logistics and infrastructure, provides the perfect launch<br />
pad for investors looking to take advantage opportunities<br />
that will be created by the AfCFTA Agreement.<br />
The burgeoning African middle-class is a global trend that<br />
economists are carefully watching. As more sophisticated<br />
infrastructure is rolled out across Africa, having a base with<br />
good connections to ports and with good air, road and rail<br />
connectivity will be vital. <strong>Mpumalanga</strong> has all of that, and more.<br />
An Extraordinary Summit of the AU Assembly on the AfCFTA<br />
was held in December 2020. The Assembly approved the<br />
gradual elimination of tariff and non-tariff barriers<br />
to trade on the continent. In terms of export-driven<br />
manufacturing and production <strong>Mpumalanga</strong> is well<br />
positioned to take full advantage of the economic<br />
promise of the AfCFTA and attract investment, thereby<br />
helping to increase income levels and reduce poverty.<br />
<strong>Mpumalanga</strong> is served by the Maputo Development<br />
Corridor (MDC), which is South Africa’s leading Spatial Development<br />
Initiative (SDI), linking <strong>Mpumalanga</strong>, Gauteng Province and the<br />
Nkomazi Special Economic Zone with the deepwater Port of<br />
Maputo in Mozambique. This strategic location gives <strong>Mpumalanga</strong><br />
a particular advantage with respect to logistics and market access.<br />
Improving and increasing intra-African trade will change the<br />
way countries do business and include a much broader range<br />
of countries and products into the global market. Foreign direct<br />
investment is expected to grow rapidly, as investment opportunities<br />
such as those on offer in <strong>Mpumalanga</strong> attract the attention of<br />
international companies and institutions. New sectors, such as the<br />
Green Economy which <strong>Mpumalanga</strong> is actively preparing for, will<br />
grow exponentially on the back of a continental system of trade<br />
with fewer barriers and more connections than ever before.
AfCFTA FAST FACTS<br />
Africa’s exports could increase by $560-billion and some<br />
experts predict that continental business and consumer<br />
spending could reach $6.7-trillion by 2030.<br />
$450<br />
BILLION<br />
AfCFTA could<br />
boost regional income<br />
by 7% or $450-billion<br />
(Source: the World Bank)<br />
AfCFTA could lift<br />
30<br />
-million<br />
people<br />
out of poverty, according<br />
to the World Bank<br />
AfCFTA<br />
could<br />
boost<br />
10%<br />
wages<br />
by up to<br />
* World Bank estimate<br />
ABOUT SADC<br />
South Africa is a member of one of Africa’s<br />
oldest regional organisations, the 16-member<br />
Southern African Development Community,<br />
(SADC). This enables duty-free trade within<br />
a growing market of more than 360-million<br />
people. All goods shipped under SADC<br />
Certificate of Origin receive duty-free status.<br />
Duty-free trade<br />
within a GROWING MARKET<br />
of more than<br />
360million<br />
people
Going green<br />
<strong>Mpumalanga</strong> is famously fertile, but it’s a different kind of green that is changing<br />
the energy landscape of South Africa’s biggest power producer.<br />
Seriti Green is to construct a giant windfarm complex in <strong>Mpumalanga</strong>.<br />
Credit: Appolinary Kalashnikova on Unsplash<br />
A<br />
wind farm under construction in <strong>Mpumalanga</strong> in the<br />
heart of coal-mining country is an outstanding example<br />
of thinking outside the box. The project will use renewable<br />
energy to provide power to coal mines.<br />
All over <strong>Mpumalanga</strong>, companies, agencies, government<br />
departments and researchers are finding ways to go green.<br />
The renewable energy subsidiary of coal-mining company<br />
Seriti Resources, Seriti Green, is to build a 150MW wind farm that<br />
will allow the company to receive 75% of the energy it needs to run<br />
its coal mines from renewable sources. This first phase of a larger<br />
project is expected to start producing power in 2025.<br />
Seriti Green acquired a majority share of renewable energy<br />
asset manager Windlab in December 2022 for R892-million. The<br />
wind farm will cost R4-billion, with R1.5-billion allocated to new<br />
grid infrastructure. The grid infrastructure will be partly owned by<br />
national utility Eskom.<br />
A power-purchase contract has been signed between the two<br />
Seriti entities, environmental authorisation has been granted by<br />
the Department of Forestry, Fisheries and the Environment and<br />
Standard Bank and RMB have signed the financing agreements.<br />
Seriti Green has its eyes on<br />
developing 3 000MW of wind<br />
and solar in the next ten years.<br />
Seriti’s first wind farm is part of a<br />
larger plan for the area between<br />
Bethal and Morgenzon in the<br />
Gert Sibande District Municipality,<br />
namely a 900MW renewable<br />
energy cluster comprising both<br />
wind and solar power.<br />
This will be known as the<br />
Ummbilla Emoyeni Renewable<br />
Energy Farm. Given the strategic<br />
importance of the coalfields and<br />
power stations of <strong>Mpumalanga</strong>, the<br />
Department of Public Works and<br />
Infrastructure has designated the<br />
project a Strategic Integrated Project.<br />
Once the larger project is<br />
fully developed, there will be<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong><br />
26
SPECIAL FEATURE<br />
111 turbines, each of which will require two days of scheduled<br />
maintenance every year. Venn stated that his company would invest<br />
between R20-billion and R30-billion into the greater Ermelo region<br />
over the next five years. It is in these statistics that it becomes clear<br />
that the transition to clean energy will indeed create new jobs.<br />
<strong>Mpumalanga</strong> advantage<br />
One of South Africa’s most successful investment projects, the<br />
Renewable Energy Independent Power Producer Procurement<br />
Programme (REIPPPP), suffered a setback in the period between<br />
2015 and 2021. It has since been relaunched and investors are<br />
queuing up to take a stake in greener energy but South Africa<br />
has now come up against the constraints of the national grid. In<br />
the most recent round of bidding for projects, the Northern Cape<br />
received fewer projects than it otherwise would have if the national<br />
grid was keeping up with increased generation potential of new<br />
projects. This gives <strong>Mpumalanga</strong> a comparative advantage.<br />
With most of South Africa’s power stations located in<br />
<strong>Mpumalanga</strong>, the issue of grid capacity does not arise.<br />
Eskom has been one of the first entities to react to this<br />
opportunity to build newer, greener facilities. In July 2022, Eskom<br />
announced 18 winnings bids from independent power producers<br />
(IPPs) for renewable projects on Eskom land, 4 000ha of which the<br />
utility has made available for this first phase. Eskom owns 36 000ha<br />
in the province. A total of 1 800MW will become available to the<br />
grid and it will be cheaper to transmit because the solar or wind<br />
plants will be right next to the existing Eskom transmission lines.<br />
Ten coal plants are due to be closed by 2040, with four<br />
<strong>Mpumalanga</strong> plants (Hendrina, Grootvlei, Camden and Komati) first<br />
in line. Eskom is undertaking studies to assess the potential impact<br />
on local communities of these closures. Options to get these plants<br />
producing energy again include gas, biomass and hydrogen but it<br />
is possible they might be used for something quite different. Eskom<br />
wants to be a net-zero company by 2050.<br />
The relaxation by national government of the rules regarding setting<br />
up a power plant of 100MW or less is well suited to the requirements of<br />
big timber-processing companies such as Sappi and PG Bison and all the<br />
large mining concerns that are active in <strong>Mpumalanga</strong>.<br />
Wind is viable<br />
The size and scope of Seriti Green’s project may come as a surprise<br />
to people who had written <strong>Mpumalanga</strong> off as a potential venue<br />
for wind power. There was no surprise for ENERTRAG South Africa,<br />
however, who have been testing the province’s wind resources<br />
since the company first arrived in the country in 2017.<br />
The data collected from multiple meteorological measurement<br />
masts (met masts) confirm that the province has enough wind to<br />
make wind farms viable. The<br />
wind may not be as strong as<br />
that experienced in coastal<br />
provinces, but it is steady.<br />
Peter Venn, Seriti Green’s CEO,<br />
told <strong>Business</strong> Day in <strong>2023</strong> that<br />
the very large turbines that his<br />
company will use will operate<br />
at a capacity of about 40%,<br />
significantly better than solar,<br />
which operates below 30%.<br />
ENERTRAG South Africa<br />
makes the point that the<br />
current environment is creating<br />
an active offtakers market<br />
among Energy Intensive Users<br />
(EIUs) and no place is better<br />
equipped to service that market<br />
and to facilitate wheeling than<br />
the <strong>Mpumalanga</strong> province,<br />
eMalahleni in particular.<br />
Wheeling is getting power<br />
from a generator to an enduser<br />
located in another area<br />
through existing distribution or<br />
transmission networks.<br />
A meteorological measurement<br />
mast for collecting wind data.<br />
Credit: ENERTRAG<br />
27<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong>
SPECIAL FEATURE<br />
Partnerships<br />
Arising out of COP26, South Africa was the first beneficiary of the<br />
feeling that arose that developed countries who had become rich<br />
by burning fossil fuels have a responsibility to help developing<br />
countries wean themselves off oil and gas. The Just Energy<br />
Transition Partnership is an agreement whereby Germany, France,<br />
the US, the UK and the European Union (the International Partners<br />
Group) will mobilise finance to help South Africa decarbonise.<br />
A Just Energy Transition Partnership Investment Plan (JET-IP) has<br />
subsequently been published and bodies such as the Presidential<br />
Climate Commission and National Treasury are engaged with the plan.<br />
Another international partnership was announced in June<br />
<strong>2023</strong> when the prime ministers of the Netherlands and Denmark<br />
visited South Africa to launch a $1-billion green hydrogen fund,<br />
SA-H2. Seeded with an initial amount of $250-million from Invest<br />
International, Netherlands, the fund is also supported by the<br />
Development Bank of Southern Africa, the Industrial Development<br />
Corporation and Sanlam.<br />
South Africa has already designated nine green hydrogen projects<br />
as Strategic Integrated Projects. HyShiFT is a project developing<br />
sustainable aviation fuels in Secunda, which is home to several Sasol<br />
plants. Sasol, South Africa’s biggest energy and chemicals company,<br />
is part of a consortium that includes Linde and ENERTRAG.<br />
While there is plenty of activity at national and international<br />
level, something green is also stirring at provincial level. The<br />
Provincial Government of <strong>Mpumalanga</strong> has established the<br />
<strong>Mpumalanga</strong> Green Cluster Agency to bring together government,<br />
academia and industry to create the environment for businesses to<br />
develop in a green economy.<br />
The Cluster is an initiative of the <strong>Mpumalanga</strong> Department<br />
of Economic Development and Tourism with the support of<br />
GreenCape and the Deutsche Gesellschaft für Internationale<br />
Zusammenarbeit (GIZ).<br />
Among the issues the Cluster is looking at are carbon capture<br />
and storage, hydrogen and clean aviation fuel. The published<br />
opportunity briefs (the first in a series that will be expanded)<br />
cover water, renewable energy and sustainable agriculture. Each<br />
of the reports looks at the funding environment within that<br />
subsector, together with a market overview, key developments and<br />
achievements, the most important participants already active in the<br />
sector, legislation and regulation and market opportunities.<br />
The Cluster is a member of the International Cleantech<br />
Network, a global network of more than 15 000 international green<br />
businesses. The <strong>Mpumalanga</strong> Green Cluster Board Chairperson is<br />
Dr Thembakazi Mali, the Senior Vice President for Research and<br />
Technology at Sasol.<br />
Impact Catalyst <strong>Mpumalanga</strong> was launched in November 2022.<br />
An initiative of two big resources companies, Anglo American<br />
and Exxaro, the Council<br />
for Scientific and Industrial<br />
Research (CSIR) and World<br />
Vision, Impact Catalyst aims<br />
to drive large-scale socioeconomic<br />
development<br />
initiatives through publicprivate<br />
partnerships.<br />
With <strong>Mpumalanga</strong> being<br />
a province with the largest<br />
number of South Africa’s<br />
power stations, the focus is<br />
naturally on issues such as<br />
decarbonisation and switching<br />
to cleaner energy but doing so<br />
in a way that promotes a Just<br />
Energy Transition.<br />
Impact Catalyst will align<br />
with the JET-IP and with<br />
Eskom’s JET plan. The provincial<br />
government’s MP 2945 Vision<br />
is similarly aligned with the<br />
broader national goals.<br />
Impact Catalyst <strong>Mpumalanga</strong><br />
will support the conversion of<br />
power generation infrastructure<br />
and sustainable mine closures<br />
while promoting environmental<br />
management for agricultural<br />
development and exploring<br />
re-industrialisation and<br />
manufacturing opportunities.<br />
Helping schools and<br />
communities get access to digital<br />
resources will also form part of<br />
the programme.<br />
Impact Catalyst was<br />
previously rolled out in Limpopo<br />
and the Northern Cape. ■<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong><br />
28<br />
Cleaner aviation fuel is the goal of<br />
a major project in Secunda. Credit:<br />
Pexels/Pixabay
INNOVATION - FORESIGHT - EXPERTISE<br />
Turning renewable sources into energy<br />
and ideas into reality.<br />
enertrag.co.za
SPECIAL FEATURE<br />
Establishing a business<br />
in South Africa<br />
South Africa has eased the barriers to doing business for locals as well as<br />
international companies and individuals.<br />
new legislation, no new Close Corporations can<br />
be created but CCs can convert to companies.<br />
Registration of company<br />
The company must be registered with the<br />
Companies and Intellectual Proper ties<br />
Commission (CPIC) in Pretoria within 21 days of<br />
the company being started. There are a range of<br />
administrative procedures that need to be fulfilled.<br />
With the transition to renewable energy well underway,<br />
several power stations due for closure are going to<br />
become the sites of solar farms as they are already<br />
Autobody repair is a thriving subsector. Credit: connected the transmission grid. Credit: SCATEC Seda<br />
South Africa has a sophisticated legal,<br />
regulatory and banking system. Setting<br />
up a business in South Africa is a relatively<br />
straightforward process with assistance<br />
being offered by organisations such as the<br />
Department of Trade, Industry and Competition<br />
and provincial investment agencies like the<br />
<strong>Mpumalanga</strong> Economic Growth Agency (MEGA).<br />
South African law regulates the establishment<br />
and conduct of businesses throughout the<br />
country. Tax, investment incentives, regulations<br />
governing imports, exports and visas are uniform<br />
throughout the country.<br />
The particular environment varies from<br />
province to province with regard to the<br />
availability of human and natural resources, the<br />
infrastructure and support services, business<br />
opportunities and the quality of life. In this<br />
respect, MEGA can offer specific advice about the<br />
business environment in the province.<br />
<strong>Business</strong> is regulated by the Companies Act<br />
and the Close Corporation Act, which cover<br />
accounting and reporting requirements. Under<br />
Bank account<br />
A business bank account must be opened in the<br />
company’s name with a bank in South Africa.<br />
Registration with the receiver of revenue<br />
• As a Provisional Taxpayer<br />
• As a VAT vendor<br />
• For Pay As You Earn (PAYE) income tax payable on<br />
money earned by employees<br />
• For Standard Income Tax on Employees<br />
Registration with the Department of Labour<br />
<strong>Business</strong>es employing staff will have to contact the<br />
Department of Labour regarding mandatory contributions<br />
to the Unemployment Insurance Fund<br />
(UIF). Register with Compensation Commissioner<br />
for Compensation Fund. Files with the Compensation<br />
Fund (in the Department of Labour) for<br />
accident insurance (Workmen’s Compensation).<br />
Registration with the local authority<br />
Relevant only to businesses dealing in fresh<br />
foodstuffs or health matters.<br />
Other procedures<br />
• Checking exchange control procedures (note<br />
that non-residents are generally not subject to<br />
exchange controls except for certain categories<br />
of investment).<br />
MPUMALANGA FREE STATE BUSINESS 2021 2022/23<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong><br />
2620<br />
30 46
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2021/22<br />
2018/19<br />
2018/19<br />
MPUMALANGA<br />
SPECIAL FEATURE<br />
• Obtaining approval for building plans<br />
• Applying for industry and export incentives<br />
• Applying for import permits and verifying import<br />
duties payable<br />
• Registering as an exporter if relevant and<br />
applying for an export permit.<br />
<strong>Business</strong> entities<br />
There are a variety of forms which businesses can<br />
take, including private and public companies,<br />
personal liability companies, non-profit companies,<br />
state-owned companies and even branches of<br />
foreign companies (or external companies).<br />
Branches of foreign companies fall under<br />
Section 23 of the Companies Act of 2008 and are<br />
required to register as “external companies” with<br />
the CIPC. An external company is not required<br />
to appoint a local board of directors but must<br />
appoint a person resident in South Africa who<br />
is authorised to accept services of process and<br />
any notices served on the company. It must also<br />
appoint a registered local auditor and establish a<br />
registered office in South Africa.<br />
Patents, trademarks and copyrights<br />
Trademarks (including service marks) are valid for<br />
an initial period of 10 years and are renewable<br />
indefinitely for further 10-year periods. Patents are<br />
granted for 20 years, normally without an option<br />
to renew. The holder of a patent or trademark<br />
must pay an annual fee in order to preserve its<br />
validity. Patents and trademarks may be licensed<br />
but where this involves the payment of royalties<br />
to non-resident licensors, prior approval of the<br />
licensing agreement must be obtained from<br />
the dtic. South Africa is a signatory to the Berne<br />
Copyright Convention.<br />
Permits for foreign nationals<br />
Work permits<br />
In considering whether or not to grant a work<br />
permit, the Department of Home Affairs will first<br />
evaluate the validity of the offer of employment<br />
by conducting a number of checks to confirm the<br />
following:<br />
• Has the Department of Labour been contacted?<br />
• Has the position been widely advertised?<br />
• Is the prospective employer able to prove that he<br />
or she has tried to find a suitably qualified local<br />
employee prior to hiring a foreigner?<br />
• Is the prospective employee appropriately<br />
qualified and do they have the relevant<br />
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<strong>Business</strong> permits<br />
Foreign nationals who wish to establish their own<br />
business or a partnership in South Africa must,<br />
apart from having sufficient funds to support<br />
themselves and their family, be able to invest at<br />
least R2.5-million in the business.<br />
FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND<br />
CORRUPTION The INCIDENTS funds TO THE FRAUD HOTLINE must 0800 212 154 originate overseas, be<br />
transferable to South Africa and belong to the<br />
applicant (ie emanate from the applicant’s own<br />
CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154<br />
bank account). The business must also create<br />
jobs for South African citizens. After six months<br />
to a year, proof will have to be submitted that the<br />
business is employing South African citizens or<br />
permanent residents, excluding family members<br />
of the employer.<br />
Applications for work permits for selfemployment<br />
can only be lodged at the South<br />
African Consulate or Embassy in the applicant’s<br />
country of origin. The processing fee is US$186. The<br />
applicant would also have to lodge a repatriation<br />
guarantee with the consulate/embassy equivalent<br />
to the price of a one-way flight from South Africa<br />
back to his or her country of origin.<br />
This guarantee is refundable once the<br />
applicant has either left South Africa permanently<br />
or obtained permanent residence. Any application<br />
for an extension of a business permit may be<br />
lodged locally. The processing fee per passport<br />
holder is R425. Some countries also need to pay<br />
R108 per return visa.<br />
A list A list of of countries to to which this applies is<br />
available from from the the Department of of Home Affairs.<br />
MEGA MEGA assists assists investors in in applying for the<br />
relevant work permits to to conduct their business.<br />
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FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND<br />
What can MEGA do for you?<br />
MEGA will help new businesses by assisting in<br />
project appraisal and packaging, putting investors<br />
in touch with relevant agencies and government<br />
departments, alerting investors to investment<br />
incentives and setting up joint ventures where<br />
required. ■<br />
27<br />
MPUMALANGA FREE STATE BUSINESS BUSINESS 2022/23 2021<br />
47 31<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong>
SPECIAL FEATURE<br />
South African<br />
investment incentives<br />
The South African government, particularly the Department of Trade, Industry<br />
and Competition, has a range of incentives available to investors, existing<br />
companies, entrepreneurs and co-operatives across many sectors.<br />
The Provincial Government of <strong>Mpumalanga</strong> is rolling out infrastructure at the newly-recognised<br />
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<br />
Skukuza investors. bridge. Credit: The Tony Kruger Ferrar/UNESCO<br />
Shalati Development is in the Kruger National Image: Credit: Park. Seda Roger Bosch/Brand SA<br />
South Africa wishes to diversify its economy<br />
and incentives are an important part<br />
of the strategy to attract investors to<br />
the country.<br />
The Department of Trade, Industry and Competition<br />
(the dtic) is the lead agency in the<br />
incentives programme, which aims to encourage<br />
local and foreign investment into targeted<br />
economic sectors, but the Industrial Development<br />
Corporation (IDC) is the most influential funder of<br />
projects across South Africa.<br />
There are a variety of incentives available and<br />
these incentives can broadly be categorised<br />
according to the stage of project development:<br />
• Conceptualisation of the project – including<br />
feasibility studies and research and develop-<br />
ment (grants for R&D and feasibility studies,<br />
THRIP, Stp, etc)<br />
• Capital expenditure – involving the creation<br />
or expansion of the productive capacity of<br />
businesses (MCEP, EIP, CIP, FIG, etc)<br />
• Competitiveness enhancement – involving the<br />
introduction of efficiencies and whetting the<br />
competitive edge of established companies and<br />
commercial or industrial sectors (BBSDP, EMIA,<br />
CTCIP, etc)<br />
• Some of the incentives are sector-specific, for<br />
example the Aquaculture Development and<br />
Enhancement Programme (ADEP), Clothing<br />
and Textile Competitiveness Improvement<br />
Programme (CTCIP) and the Tourism Support<br />
Programme (TSP).<br />
MPUMALANGA MPUMALANGA BUSINESS BUSINESS2021/22 2022/23 <strong>2023</strong>/<strong>24</strong> 2020/21<br />
28 14 10
Manufacturing<br />
Key components of the incentive programme are<br />
the Manufacturing Incentive Programme (MIP) and<br />
the Manufacturing Competitiveness Enhancement<br />
Programme (MCEP). The initial MCEP, launched in<br />
2012, was so successful that it was oversubscribed<br />
with almost 890 businesses receiving funding.<br />
A second phase of the programme was launched<br />
in 2016. The grants are not handouts as the<br />
funding covers a maximum of 50% of the cost<br />
of the investment, with the remainder to be<br />
sourced elsewhere.<br />
The Enterprise Investment Programme (EIP)<br />
makes targeted grants to stimulate and promote<br />
investment, BEE and employment creation in the<br />
manufacturing and tourism sectors. Aimed at<br />
smaller companies, the maximum grant is R30-<br />
million. Specific tax deductions are permissible for<br />
larger companies investing in the manufacturing<br />
sector under Section 12i of the Income Tax Act.<br />
Other incentives<br />
Other incentives available to investors and existing<br />
businesses in more than one sector include the:<br />
• Technology and Human Resources for Industry<br />
Programme (THRIP)<br />
• Support Programme for Industrial Innovation (SPII)<br />
• Black <strong>Business</strong> Supplier Development Programme<br />
(BBSDP), which is a cost-sharing grant offered to<br />
black-owned small enterprises<br />
• Critical Infrastructure Programme (CIP) that covers<br />
between 10% and 30% of the total development<br />
costs of qualifying infrastructure<br />
• Co-operative Incentive Scheme, which is a<br />
90:10 matching cash grant for registered primary<br />
co-operatives<br />
• Sector Specific Assistance Scheme, which is a<br />
reimbursable 80:20 cost-sharing grant that can be<br />
applied for by export councils, joint action groups<br />
and industry associations.<br />
Incentives for SMMEs<br />
A lot of emphasis is placed on the potential role<br />
of small, medium and micro enterprises in job<br />
creation and a number of incentives are design-<br />
Many incentives are available to support small<br />
Investments businesses and in infrastructure startups. Established can attract businesses rebates. are<br />
The encouraged PG Bison Highveld are investing to Industrial support heavily smaller Park in hosts expanding entities factories manufacturing<br />
along their<br />
different supply Gladtidings capacity. chain. sectors. Credit: Interiors Credit: PG Bison CC. Seda Image: Seda<br />
ed to promote the growth of these businesses.<br />
These include:<br />
• Small Medium Enterprise Development<br />
Programme (SMEDP)<br />
• Isivande Women’s Fund<br />
• Seda Technology Programme (Stp).<br />
• Seda is the Small Enterprise Development Agency,<br />
an agency of the Department of Small <strong>Business</strong><br />
Development that exists to promote SMMEs.<br />
Trade-related incentives<br />
The Export Marketing and Investment Assistance<br />
(EMIA) Scheme includes support for local<br />
businesses that wish to market their businesses<br />
internationally to potential importers and<br />
investors. The scheme offers financial assistance<br />
to South Africans travelling or exhibiting abroad<br />
as well as for inbound potential buyers of South<br />
African goods. ■<br />
Online Resources<br />
Department of Trade, Industry and Competition:<br />
www.thedtic.gov.za<br />
Industrial Development Corporation:<br />
www.idc.co.za<br />
<strong>Mpumalanga</strong> Economic Growth Agency:<br />
www.mega.gov.za<br />
Official South African government incentive<br />
schemes: www.investmentincentives.co.za<br />
29 33 11 15 MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong> 2022/23 2020/21 2021/22
d trade with the biggest of the BRICS<br />
Two-way trade between the countries in<br />
s worth $39.1-billion. South Africa wants<br />
tourist numbers from China. South Africa<br />
the first country in the world to export<br />
China in 2017, to SPECIAL go with FEATURE existing exports<br />
ganese<br />
re, platinum<br />
ore<br />
and fruit and wine.<br />
208.2% 14.2%<br />
of 2018 were valued at R63.9-billion (Financial<br />
South African economy at glance<br />
LESOTHO<br />
Mail). The renewable energy Web: programme<br />
http://economic.ncape.gov.za<br />
Email: dedat@ncpg.gov.za<br />
Email: dedat@ncpg.gov.za<br />
South African economy at a glance<br />
are visiting South Africa in record numpe<br />
Town’s Air Access programme has<br />
ore SPECIAL FEATURE 149.1% 13.3%<br />
Eastern Cape<br />
17 SOUTH AFRICAN BUSINESS 2019<br />
8%<br />
Insight into the South African ecomomy. economy.<br />
Western Cape<br />
14%<br />
SPECIAL FEATURE Source: world exports.com<br />
South economy at a glance<br />
ZIMBABWE<br />
Percentage contribution of each province to national GDP.<br />
n direct<br />
e: StatsSA.com<br />
BOTSWANA<br />
Limpopo<br />
Insight into the South African ecomomy.<br />
7%<br />
Africa.<br />
: South African NAMIBIA mineral sales<br />
ng with<br />
cessful.<br />
d grape<br />
level is<br />
ed and<br />
017 and<br />
ICT and<br />
capital<br />
hat the<br />
irst half<br />
inancial<br />
ramme<br />
NAMIBIA<br />
Northern Cape<br />
2%<br />
Western Cape<br />
14%<br />
Northern Cape<br />
2%<br />
North West<br />
6%<br />
Percentage contribution of each province to national GDP.<br />
SOURCE: STATS SA WWW.STATSSA.GOV.ZA<br />
several more are in the pipeline.<br />
• New stock exchanges came on line in 2017 and<br />
more are expected.<br />
• Investment in infrastructure (especially ICT and<br />
railways) is strong. Nedbank’s report on capital<br />
expenditure in South Africa stated that the<br />
29 large projects announced in the first half<br />
177.9% 16.6%<br />
ral sales increased by 152.7%<br />
on-year in April 2021.<br />
BOTSWANA<br />
North West<br />
6%<br />
Free State<br />
5%<br />
Eastern Cape<br />
Free<br />
8%<br />
State<br />
5%<br />
Eastern Cape<br />
8%<br />
Gauteng<br />
35%<br />
<strong>Mpumalanga</strong><br />
7%<br />
ZIMBABWE<br />
SWAZI-<br />
LAND<br />
LimpopoKwaZulu-<br />
7% Natal<br />
16%<br />
LESOTHO<br />
Gauteng<br />
<strong>Mpumalanga</strong><br />
35%<br />
7%<br />
gest contributors % increase % contribution<br />
s 465.9% 103%<br />
LESOTHO<br />
ore 115.6% 19.5%<br />
d 40.9% 6.5%<br />
Western Cape<br />
14%<br />
secured tens of thousands of new seats on direct<br />
SS 2019 Trends Table: South African mining production<br />
flights to and from the city).<br />
• Companies are successfully trading into Africa.<br />
Source: Good Increased signs for world the economy by exports.com<br />
116.5% include: year-on-year • Niche in agricultural April markets 2021. are booming with<br />
Percentage contribution of each province to national GDP.<br />
ce: StatsSA.com<br />
• Several provincial governments and investment macadamia nuts being the most successful.<br />
SOURCE: STATS SA WWW.STATSSA.GOV.ZA<br />
agencies are establishing trade relations and Pecan nuts have done well and wine and grape<br />
study Largest programmes contributors with BRICS countries. State % increase exports to China % contribution<br />
are growing.<br />
visits to and from China immediately before and • Private education at school and tertiary level is<br />
after a major BRICS summit in 2018 gave an indication<br />
that Ramaphosa holds high hopes for • New banking licences have been issued and<br />
secured growing tens as of a thousands sector. of new seats on direct<br />
Trends Table: Platinum South Group African Metals mining 276.1% production<br />
flights to and from<br />
39.2%<br />
the city).<br />
increased trade with the biggest of the BRICS• Companies several more are successfully are in the pipeline. trading into Africa.<br />
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<br />
2017 was worth $39.1-billion. South Africa wants more are expected.<br />
• Several provincial governments and investment macadamia nuts being the most successful.<br />
to Gold grow tourist numbers from China. South Africa 177.9% •<br />
agencies are establishing trade relations and Pecan<br />
Investment<br />
nuts have<br />
16.6% in<br />
done<br />
infrastructure<br />
well and<br />
(especially<br />
wine and grape<br />
ICT and<br />
study<br />
became<br />
programmes<br />
the first<br />
with<br />
country<br />
BRICS<br />
in<br />
countries.<br />
the world<br />
State<br />
to export railways) is strong. Nedbank’s report on capital<br />
Largest contributors % increase exports to China % contribution<br />
are growing.<br />
beef to China in 2017, to go with existing exports expenditure in South Africa stated that the<br />
visits to and from China immediately before and • Private education at school and tertiary level is<br />
of<br />
Manganese<br />
iron ore, platinum<br />
ore<br />
and fruit and wine.<br />
208.2%<br />
29 large projects<br />
14.2%<br />
announced in the first half<br />
after a major BRICS summit in 2018 gave an indication<br />
that Ramaphosa holds high hopes for • New banking licences have been issued and<br />
growing as a sector.<br />
• Tourists are visiting South Africa in record numbers<br />
(Cape Group Town’s Air Metals Access programme 276.1% has Mail). The 39.2% renewable energy programme<br />
of 2018 were valued at R63.9-billion (Financial<br />
Platinum<br />
increased trade with the biggest of the BRICS several more are in the pipeline.<br />
nations. Iron Two-way oretrade between the countries in149.1% • New stock exchanges 13.3% came on line in 2017 and<br />
2017 was worth $39.1-billion. South Africa wants more are expected.<br />
to Gold grow tourist numbers from China. South Africa 177.9% • Investment 16.6% in infrastructure SOUTH AFRICAN (especially BUSINESS ICT and 2019<br />
became<br />
Source:<br />
the first<br />
StatsSA.com<br />
country in the world to export railways) is strong. Nedbank’s report on capital<br />
beef to China in 2017, to go with existing exports expenditure in South Africa stated that the<br />
of<br />
Manganese<br />
iron ore, platinum<br />
ore<br />
and fruit and wine.<br />
208.2%<br />
29 large projects<br />
14.2%<br />
announced in the first half<br />
• Tourists are visiting South Africa in record numbers<br />
(Cape Town’s Air Access programme has Mail). The renewable energy<br />
of 2018 were valued at R63.9-billion (Financial<br />
programme<br />
Iron ore<br />
Table: South African mineral 149.1% sales 13.3%<br />
Mineral sales increased by 152.7%<br />
Source: year-on-year StatsSA.comin April 2021.<br />
13th Fl, Cnr Stead & Physical: Knight Sts, Metlife Kimberley, Towers,<br />
8309<br />
13th Fl, Fl, Cnr Cnr Stead & & Knight Sts, Sts, Kimberley, 8309<br />
8300<br />
Postal: Private Tel: 053 Bag Bag 839 X6108, 4000 Kimberley, | Fax: 0538300<br />
832 8301 6805<br />
Free State<br />
Tel: Tel: 053 053 Web: 839 839 http://economic.ncape.gov.za<br />
4000 4000 | Fax: | Fax: 053 053 832 832 6805<br />
6805%<br />
Physical: Metlife Towers,<br />
13th Fl, Cnr Stead & Knight Sts, Kimberley, 8309<br />
Postal: Private Bag X6108, Kimberley, 8300<br />
NAMIBIA<br />
Tel: 053 839 4000 | Fax: 053 832 6805<br />
Web: http://economic.ncape.gov.za<br />
Email: dedat@ncpg.gov.za<br />
Postal: Private Bag X6108, Kimberley, 8300Gauteng<br />
35%<br />
North West<br />
6%<br />
MOZAMBIQUE<br />
SPECIAL FEATURE<br />
SWAZI-<br />
LAND<br />
KwaZulu-<br />
Natal<br />
16%<br />
17 SOUTH AFRICAN BUSINESS 2019<br />
SOURCE: STATS SA WWW.STATSSA.GOV.ZA<br />
Northern Cape<br />
2%<br />
secured tens of thousands of new seats on direct<br />
Trends Table: South African mining production<br />
flights to and from the city).<br />
• Companies are successfully trading into Africa.<br />
Good Increased signs for the economy by 116.5% include: year-on-year • Niche in agricultural April markets 2021. are booming with<br />
• Several provincial governments and investment macadamia nuts being the most successful<br />
agencies are establishing trade relations and Pecan nuts have done well and wine and grape<br />
study Largest programmes contributors with BRICS countries. State % increase exports to China % contribution<br />
are growing.<br />
visits to and from China immediately before and • Private education at school and tertiary level is<br />
after a major BRICS summit in 2018 gave an indication<br />
that Ramaphosa holds high hopes for • New banking licences have been issued and<br />
growing as a sector.<br />
Platinum Group Metals 276.1% 39.2%<br />
increased trade with the biggest of the BRICS several more are in the pipeline.<br />
nations. Two-way trade between the countries in • New stock exchanges came on line in 2017 and<br />
2017 was worth $39.1-billion. South Africa wants more are expected.<br />
to Gold grow tourist numbers from China. South Africa 177.9% • Investment 16.6% in infrastructure (especially ICT and<br />
became the first country in the world to export railways) is strong. Nedbank’s report on capita<br />
beef to China in 2017, to go with existing exports expenditure in South Africa stated that the<br />
of<br />
Manganese<br />
iron ore, platinum<br />
ore<br />
and fruit and wine.<br />
208.2%<br />
29 large projects<br />
14.2%<br />
announced in the first half<br />
• Tourists are visiting South Africa in record numbers<br />
(Cape Town’s Air Access programme has Mail). The renewable energy<br />
of 2018 were valued at R63.9-billion (Financia<br />
programme<br />
MOZAMBIQUE<br />
Iron ore 149.1% 13.3%<br />
Source: StatsSA.com<br />
Source: world exports.com<br />
Table: South African mineral sales<br />
Mineral sales increased by 152.7%<br />
year-on-year in April 2021.<br />
17 SOUTH AFRICAN BUSINESS 2019<br />
Iron Source: ore world exports.com115.6% 19.5%<br />
7%<br />
<strong>Mpumalanga</strong><br />
7%<br />
SWAZI-<br />
LAND<br />
KwaZulu-<br />
Natal<br />
16%<br />
Largest contributors % increase % contribution<br />
PGMs 465.9% 103%<br />
Gold 40.9% 6.5%<br />
Source: StatsSA.com<br />
Source: world exports.com<br />
2017/18<br />
2019/20<br />
2020/21 2018/19<br />
2018/19<br />
US ONLINE<br />
JOIN JOIN US U<br />
UE<br />
Source: world exports.com<br />
Largest contributors % increase % contribution<br />
Table: South African mineral sales<br />
Mineral PGMs sales increased by 152.7% 465.9% 103%<br />
year-on-year in April 2021.<br />
Iron ore 115.6% 19.5%<br />
Largest Goldcontributors % increase 40.9% % 6.5% contribution<br />
PGMs Source: StatsSA.com 465.9% 103%<br />
Iron ore 115.6% 19.5%<br />
Source: world exports.com<br />
Credit: Columbus Stainless
WWW.NORTHERNCAPEBUSINESS.CO.ZA<br />
ONLINE JOIN S US ONLINE<br />
WWW.GLOBALAFRICANETWORK.COM | WWW.NORTHERNCAPEBU<br />
| | 10 REASONS<br />
WHY YOU SHOULD INVEST IN SOUTH AFRICA<br />
01.<br />
HOT EMERGING<br />
MARKET<br />
Growing middle class, affluent consumer<br />
base, excellent returns on investment.<br />
02.<br />
MOST DIVERSIFIED<br />
ECONOMY IN AFRICA<br />
South Africa (SA) has the most industrialised economy in Africa.<br />
It is the region’s principal manufacturing hub and a leading<br />
services destination.<br />
LARGEST PRESENCE OF MULTINATIONALS<br />
ON THE AFRICAN CONTINENT<br />
SA is the location of choice of multinationals in Africa.<br />
03.<br />
Global corporates reap the benefits of doing business in<br />
SA, which has a supportive and growing ecosystem as a<br />
hub for innovation, technology and fintech.<br />
05.<br />
FAVOURABLE ACCESS TO<br />
GLOBAL MARKETS<br />
ADVANCED FINANCIAL SERVICES<br />
& BANKING SECTOR<br />
SA has a sophisticated banking sector with a major<br />
footprint in Africa. It is the continent’s financial hub,<br />
with the JSE being Africa’s largest stock exchange by<br />
market capitalisation.<br />
The African Continental Free Trade Area will boost<br />
intra-African trade and create a market of over one<br />
billion people and a combined gross domestic product<br />
(GDP) of USD2.2-trillion that will unlock industrial<br />
development. SA has several trade agreements in<br />
place as an export platform into global markets.<br />
07.<br />
YOUNG, EAGER LABOUR FORCE<br />
09.<br />
SA has a number of world-class universities and colleges<br />
producing a skilled, talented and capable workforce. It<br />
boasts a diversified skills set, emerging talent, a large pool<br />
of prospective workers and government support for training<br />
and skills development.<br />
04.<br />
06.<br />
08.<br />
PROGRESSIVE<br />
CONSTITUTION<br />
& INDEPENDENT<br />
JUDICIARY<br />
SA has a progressive Constitution and an independent judiciary. The<br />
country has a mature and accessible legal system, providing certainty<br />
and respect for the rule of law. It is ranked number one in Africa for the<br />
protection of investments and minority investors.<br />
ABUNDANT NATURAL<br />
RESOURCES<br />
SA is endowed with an abundance of natural resources. It is the leading producer<br />
of platinum-group metals (PGMs) globally. Numerous listed mining companies<br />
operate in SA, which also has world-renowned underground mining expertise.<br />
WORLD-CLASS<br />
INFRASTRUCTURE<br />
AND LOGISTICS<br />
A massive governmental investment programme in infrastructure development<br />
has been under way for several years. SA has the largest air, ports and logistics<br />
networks in Africa, and is ranked number one in Africa in the World Bank’s<br />
Logistics Performance Index.<br />
10.<br />
SA offers a favourable cost of living, with a diversified cultural, cuisine and<br />
sports offering all year round and a world-renowned hospitality sector.<br />
EXCELLENT QUALITY<br />
OF LIFE<br />
Page | 2<br />
19<br />
SOUTH AFRICAN BUSINESS 2020
KEY SECTORS<br />
Overviews of the main economic<br />
sectors of <strong>Mpumalanga</strong><br />
Agriculture 38<br />
Forestry and paper 39<br />
Mining 42<br />
Oil and gas 48<br />
Manufacturing 50<br />
Transport and logistics 54<br />
Tourism 56<br />
ICT 58<br />
Education and training 60<br />
Banking and financial services 62<br />
Development finance and SMME support 64
Sappi’s Ngodwana Mill plays a big role in <strong>Mpumalanga</strong>’s economy. A key part of the manufacturing<br />
sector for many years, it is also the site of a 25MW biomass energy project. The company contributes<br />
about R5-billion to the regional economy. Credit: Sappi
OVERVIEW<br />
Agriculture<br />
The macadamia industry is growing fast.<br />
SECTOR INSIGHT<br />
800 new hectares of<br />
avocados are planted<br />
annually.<br />
The South African macadamia industry expects to<br />
produce 83 556 tons in <strong>2023</strong>, a better crop estimate<br />
than 2022 and much better than the 53 000 tons<br />
achieved in 2021. Fully 97% of the crop is exported.<br />
Thousands of new trees are being planted every year. In 2022,<br />
<strong>Mpumalanga</strong> was responsible for 37% of the country’s 6 235 new<br />
hectares. There are more than 65 000 hectares planted to macadamias<br />
in the country. Sophisticated machinery (pictured) is increasingly<br />
being used, and data usage is becoming vital for sustainability.<br />
Avocados are not as widespread, but the planting of 800 new<br />
hectares annually suggests that global markets are responding well to<br />
farms in <strong>Mpumalanga</strong> and elsewhere. The website of the South African<br />
Avocado Growers Association lists 25 companies that export the fruit.<br />
<strong>Mpumalanga</strong> accounts for about 21% of South Africa’s citrus production<br />
and a third of its export volumes, with Valencias being the province’s<br />
most popular varietal and Nelspruit being the centre of the sector.<br />
Litchis, mangoes and bananas also thrive in the province.<br />
Hazyview is an important source of bananas, with 20% of South<br />
Africa’s production originating there.<br />
The South African Subtropical Growers’ Association is an<br />
association of associations that manages the affairs of the following<br />
growers associations: South African Avocado (SAAGA), Litchi (SALGA)<br />
and Mango (SAMGA). South African agricultural exporters took a hit<br />
from the war that Russia began with Ukraine. In a normal year, the<br />
country exports five-million cartons of prunes and pears to Russia and<br />
more than double number of citrus cartons to the two combatant<br />
ONLINE RESOURCES<br />
Citrus Growers Association: www.cga.co.za<br />
Macadamias South Africa: www.samac.org.za<br />
South African Subtropical Growers’ Association: www.subtrop.co.za<br />
Credit: SAMAC<br />
nations. In addition, South Africa’s<br />
farmers import about 80% of<br />
fertiliser, much of it from Ukraine.<br />
An agro-processing facility<br />
is planned for the area near the<br />
Kruger <strong>Mpumalanga</strong> International<br />
Airport (KMIA) and private<br />
investors are being approached.<br />
The Fortune 40 programme<br />
is focussed on developing young<br />
entrepreneurs in farming. Twelve<br />
of the Fortune 40 farms have<br />
been linked to retailers such as<br />
Spar, Shoprite and Boxer and with<br />
wholesalers and agro-hubs.<br />
The goal is to have an agrohub<br />
in each of the province’s<br />
three districts. Small-scale farmers<br />
and co-operatives can connect to<br />
the formal economy via the hubs<br />
which will also provide advice<br />
and equipment. The Mkhuhlu<br />
agro-hub in Bushbuckridge,<br />
which forms part of the<br />
Provincial Government Nutrition<br />
Programme, is operational. A<br />
feasibility study is underway<br />
relating to the establishment of a<br />
hub in the Nkomazi Municipality.<br />
Phezukomkhono Mlimi<br />
is a provincial government<br />
assistance programme providing<br />
mechanisation and input support<br />
to small-scale and new farmers.<br />
Training courses are offered by the<br />
AgriSETA. Agriculture is responsible<br />
for about 3.4% of <strong>Mpumalanga</strong>’s<br />
Gross Domestic Product (GDP). ■<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong><br />
38
Forestry and paper<br />
An agroforestry project plans to convert unused land.<br />
Dry bamboo biomass is one of the products that private<br />
company Terragrn wants to produce in large quantities as<br />
part of its ambitious plans to restore and use large tracts of<br />
land in <strong>Mpumalanga</strong> (pictured). The company’s stated goal<br />
is to turn up to 200 000ha of unused land into a $2-billion sustainable<br />
land-management agroforestry project over the next 10 years.<br />
A 68ha pilot project is to be rolled on the land of the Manala<br />
Mgibe in association with the Community Property Association<br />
(CPA). Trying to create a “nature-based solution” to the worldwide<br />
problem of carbon emissions and the transition from fossil fuels,<br />
the project is targeting the agriculture and forestry sectors as a<br />
means of promoting employment and involving rural communities.<br />
<strong>Mpumalanga</strong> has the ideal climate and topography for<br />
forests. Sabie and Graskop represent the hub of the industry, but<br />
commercial forests are also found to the east and south along the<br />
Swaziland border. About 11% of the land mass is forested, with<br />
4% of that being natural forest. The province is the national leader<br />
in total hectares under forest (514 000ha) and in export earnings.<br />
Forestry accounts for about 8% of <strong>Mpumalanga</strong>’s gross<br />
domestic product. The sector comprises logging, saw-milling,<br />
wood product and pulp and paper manufacture. Pulp and paper<br />
are the main exports, along with sawn lumber, wood chips and<br />
wattle extract. Most sawn timber in South Africa is used in the<br />
construction sector.<br />
One of the biggest operations in the forestry and paper<br />
sector in <strong>Mpumalanga</strong> is Sappi’s Ngodwana Mill. Although it has<br />
a big international footprint, Sappi’s biggest sales volumes are<br />
achieved in South Africa, making up nearly 50% of group sales. In<br />
ONLINE RESOURCES<br />
Forestry South Africa: www.forestry.co.za<br />
Sawmilling South Africa: www.timber.co.za<br />
Technical Association of the Pulp and Paper Industry of<br />
South Africa: www.tappi.org<br />
Credit: Terragrn<br />
SECTOR INSIGHT<br />
OVERVIEW<br />
Energy generation is being<br />
investigated.<br />
the six months to March <strong>2023</strong>,<br />
South Africa also accounted<br />
for 39.5% of operating profit.<br />
The JSE-listed company has<br />
a valuation of R22.9-billion.<br />
Sappi’s other large facility<br />
in the province, the Lomati<br />
Sawmill in Barberton, produces<br />
kiln-dried Southern African<br />
pine lumber from sawlogs<br />
supplied by Sappi Forests.<br />
Forestry companies<br />
are looking into energy<br />
generation, including Sappi<br />
and AFCOL. <strong>Mpumalanga</strong> has<br />
40% of South Africa’s forestry<br />
resources, which presents an<br />
opportunity to exploit the<br />
sector’s byproducts in the<br />
biomass-to-energy field.<br />
The Industrial Development<br />
Corporation (IDC) has a stake<br />
in Hans Merensky Holdings<br />
and York Timbers, which has<br />
planted out 40ha in high-value<br />
crops as the first phase of a<br />
diversification strategy.<br />
PG Bison, a subsidiary<br />
of KAP Industrial Holdings,<br />
is investing R560-million in<br />
a new front-end dryer for<br />
its particleboard plant in<br />
Mkhondo (Piet Retief ). The<br />
company is also building a new<br />
medium-density fibreboard<br />
(MDF) plant at its <strong>Mpumalanga</strong><br />
plant, to complement its<br />
existing factory at Boksburg in<br />
Gauteng. ■<br />
39 MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong>
Sappi paves the way for a sustainable<br />
future in <strong>Mpumalanga</strong><br />
Unlocking the power of trees.<br />
The <strong>Mpumalanga</strong> province owes much<br />
of its vitality to the investment from<br />
local industry. For decades, the global<br />
renewable resource company, Sappi, has<br />
been a driving force contributing to the lifeblood<br />
that sustains the local economy and communities<br />
while boosting the province’s growth.<br />
With its commercial plantations and<br />
manufacturing facilities, Sappi’s operations are<br />
instrumental in driving prosperity within the<br />
province. It contributes ZAR5.5-billion to the local<br />
economy annually and provides livelihoods for<br />
thousands of people.<br />
While fortifying the present, Sappi also has<br />
its sights set on a brighter tomorrow. Embracing<br />
the concept of a biobased circular economy, it<br />
champions responsible forestry practices and<br />
extracts sustainable alternatives from woodfibre<br />
to reduce the reliance on fossil-based materials.<br />
Through innovative approaches, Sappi unlocks the<br />
power of trees, cultivating purpose and value from<br />
every by-product and resource it employs.<br />
A positive foothold<br />
At the heart of its operations in <strong>Mpumalanga</strong><br />
lies Ngodwana Mill, a key player in the province’s<br />
economic landscape. This manufacturing entity<br />
produces unbleached chemical pulp, mechanical<br />
pulp kraft linerboard and dissolving pulp to meet<br />
domestic and international demand. In Barberton,<br />
Lomati Sawmill provides structural lumber for, among<br />
others, the building, furniture and packaging industries.<br />
Sappi also manages vast forestry plantations in<br />
the province, of which approximately one-third is<br />
unplanted and conserved for biodiversity. This includes<br />
the management of four conservation sites – the<br />
Ngodwana River Valley, Mount Morgan, Oosterbeek<br />
and Angle Ridge Nature Reserves.<br />
Sappi’s various international certifications ensure<br />
that its performance is monitored and that operations<br />
comply with global best practice across a range of<br />
environmental, safety and quality criteria. These external<br />
assessments and independent third-party certifications<br />
give stakeholders confidence that reported performance<br />
indicators are reliable, accurate and pertinent.<br />
Empowering local communities<br />
The company’s impact also reaches well beyond<br />
economic and environmental interests.<br />
Honouring its commitment to a better, sustainable<br />
future, Sappi holds a share in a 25MW biomass energy<br />
project set to alleviate the demand on the national<br />
grid. This endeavour goes beyond corporate interests<br />
and actively involves one of Sappi’s host communities,<br />
who have been granted a stake in the project. By<br />
including local community members as partners, Sappi<br />
is fostering a sense of ownership and shared prosperity.<br />
Another example of community empowerment is<br />
the Ngodwana Skills Centre and Learning Hub which<br />
provides skills training and trade testing programmes<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong><br />
40
FOCUS<br />
One-third of Sappi’s huge forestry plantations in <strong>Mpumalanga</strong> are<br />
unplanted and conserved for biodiversity. Lothair is in the south-east of the<br />
province, in an area of wetland lakes which is famous for its birdlife.<br />
for apprentices, post-apprentices and engineersin-training.<br />
Moreover, community members have<br />
access to courses in basic life and hand skills, as<br />
well as specific trades like painting, electrical work,<br />
plumbing, bricklaying and cement work.<br />
By equipping local people with practical skills,<br />
Sappi is enhancing employability and fostering<br />
entrepreneurship. The company is also actively<br />
involved in about 37 enterprise supplier development<br />
programmes, employing over 300 people – all of<br />
which nurture a resilient local economy.<br />
Community engagement is another<br />
cornerstone of the company’s presence in the<br />
province. The Sappi Abashintshi programme<br />
uses a social mobilisation and asset-based<br />
community development (ABCD) approach to<br />
uplift and empower the youth. Deployed across<br />
several communities throughout the region,<br />
the programme stands as a shining example of<br />
bringing about positive change at grassroots level.<br />
Over the years, the programme has resulted<br />
in hundreds of small businesses that have either<br />
been started up or rejuvenated – ranging from<br />
brickmaking projects, poultry and pig farms to<br />
crèches and home industries, while also providing<br />
welcome respite for the youth during its annual<br />
sponsored holiday programme.<br />
Promoting education, health and wellbeing<br />
Education counts among the key social impact<br />
priorities. Expanding the talent pool in critical<br />
areas, Sappi is nurturing the future leaders and<br />
innovators of <strong>Mpumalanga</strong>.<br />
The importance of Early Childhood<br />
Development (ECD) is recognised as a foundation<br />
for building capacity, and in <strong>Mpumalanga</strong>, Sappi<br />
has developed an ECD Centre of Excellence at the<br />
Sappi Elandshoek community in partnership with<br />
Penreach. ECD practitioners are being taught to<br />
implement programmes at each of their sites to<br />
promote the child’s holistic development. Currently,<br />
130 centres and about 1 000 children benefit<br />
from this programme in <strong>Mpumalanga</strong>, with many<br />
thousands more having benefited over the years.<br />
Sappi furthermore has a vested interest in the<br />
health and wellbeing of its surrounding communities.<br />
Employees are also encouraged to get active in their<br />
communities. One example was the establishment<br />
of the Sisonke Food Security project at Lomati Mill<br />
(pictured), an initiative that gives back to employees,<br />
builds trust and supports the broader community<br />
by transforming a barren piece of land into a fertile<br />
vegetable patch to ensure food security within and<br />
around the mill, all year round.<br />
With its wide-ranging investments in<br />
manufacturing, the environment, skills training and<br />
community upliftment, this company is a prime<br />
example of how industry can drive positive change<br />
in a province and in the lives of its people.<br />
As a responsible corporate citizen, Sappi sets<br />
an inspiring example for others to follow, and its<br />
contributions continue to make a lasting impact<br />
and difference in this region. ■<br />
The Sisonke Food Project: Zeus and Mphume point to<br />
success in bringing food security to the community.<br />
41 MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong>
OVERVIEW<br />
Mining<br />
Energy and efficiency are key for the province’s miners.<br />
SECTOR INSIGHT<br />
Impact Catalyst <strong>Mpumalanga</strong><br />
has been launched.<br />
Gold mining in Barberton. Credit: Pan African Resources<br />
Gold miner Pan African Resources has secured financing<br />
for the development of its new assets in Gauteng<br />
province and remains on course to ramp up mining at<br />
the Fairview and Royal Sheba operations, which form<br />
part of the Barberton complex.<br />
The acquisition of the liquidated Mintails operations in 2022 will<br />
increase Pan African’s production by about 50 000oz once steady<br />
production is reached at the end of 20<strong>24</strong>. The company currently<br />
has production capacity in excess of 200 000oz of gold per annum.<br />
R400-million of a R2.5-billion funding arrangement was released by<br />
Rand Merchant Bank in March <strong>2023</strong>.<br />
Loadshedding in <strong>2023</strong> slowed the process of getting the<br />
Barberton operations running at optimum levels. The company<br />
reported in May that it had lost 10 000oz worth of production<br />
because of power cuts. Tests are proving that the decision to<br />
extend deep mining at Barberton was correct. Pan African reports<br />
“potential high-grade extensions to the orebodies at Fairview, Royal<br />
Sheba and Consort mines”.<br />
Mining contributes 25.9% of the province’s gross domestic<br />
product and employs more than 53 000 people. <strong>Mpumalanga</strong><br />
accounts for 83% of South Africa’s coal production and is the thirdlargest<br />
coal exporting region in<br />
the world. Although renewable<br />
energy is catching on in South<br />
Africa, there is no prospect of<br />
<strong>Mpumalanga</strong>’s coal-fired power<br />
stations being mothballed soon.<br />
The CEO of the World Coal<br />
Association, Michelle Manook,<br />
told the 2022 Mining Indaba that<br />
coal still has an important role<br />
to play in the world’s mineral<br />
mix. Despite the country’s plan<br />
to reduce coal’s contribution to<br />
electricity generation to 43% in<br />
2030 (from the current percentage<br />
around 70%), Manook argued that<br />
a just transition would pay greater<br />
attention to the number of jobs<br />
that the coal industry supplies.<br />
She said that coal-fired power<br />
plants employ 130 000 people and<br />
implied that the renewable sector<br />
would not easily replace those.<br />
South Africa still has many<br />
billions of tons of coal in the<br />
ground. Council for Geoscience<br />
CEO Mosa Mabuza reports<br />
that research is ongoing into<br />
finding ways to capture carbon<br />
produced at coal-burning power<br />
stations.<br />
A major problem facing<br />
South Africa’s mining, according<br />
to Minerals Council South<br />
Africa, is the inability of state<br />
utility Transnet to transport bulk<br />
minerals to the country’s ports<br />
in sufficient quantities to meet<br />
demand. If the Richards Bay Coal<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong><br />
42
OVERVIEW<br />
Terminal had operated at full capacity in 2021, an additional R47-<br />
billion would have been generated in exports.<br />
Afrimat, previously listed on the JSE in the “Construction<br />
and Building Materials” section, has changed its classification<br />
to “General Mining”, a recognition of the company’s ambitious<br />
buying programme in the Northern Cape and <strong>Mpumalanga</strong>. With<br />
construction and building now contributing just 20% to operating<br />
profit, Afrimat is active in anthracite and iron ore and will further<br />
expand into phosphates, rare earth elements and vermiculite.<br />
Among its new acquisitions, Afrimat now controls the Nkomati<br />
Anthracite mine in <strong>Mpumalanga</strong>. The mine, which is in the southeastern<br />
corner of the province, has proven resources of 8.7-million<br />
tons and upwards of 400 jobs were created over the last two years.<br />
Local communities have a 16.1% stake in the relaunched mine and<br />
the <strong>Mpumalanga</strong> Economic Growth Agency (MEGA) holds 34%.<br />
Platinum<br />
Platinum is an important mineral for the modern economy. Two<br />
Rivers is a joint venture between Implats (46%) and African Rainbow<br />
Minerals which is located on the southern part of the eastern limb<br />
of the Bushveld Igneous Complex, 35km south-west of Burgersfort<br />
in <strong>Mpumalanga</strong>. Northam Platinum, which has assets on both limbs<br />
of the Bushveld Igneous Complex, has purchased the Everest mine<br />
from Aquarius Platinum. Everest is adjacent to Northam’s existing<br />
Booysendal mine.<br />
Jubilee Platinum has sold its Smelting and Refining business<br />
in Middelburg to Siyanda Resources. Sylvania Platinum now has<br />
seven PGM recovery plants that extract chrome from tailings on<br />
both sides of the Bushveld Igneous Complex.<br />
Lydenburg is home to the Lion ferrochrome smelter that is a<br />
joint venture between Glencore and Merafe Resources. Assmang,<br />
the joint venture between ARM Ferrous and the JSE-listed Assore,<br />
operates a chrome mine (Dwarsrivier) and a ferrochrome plant<br />
where chrome alloys are made.<br />
Energy and transition plans<br />
Another part of Pan African Resources’ plan to improve efficiencies<br />
was to build a renewable energy plant at Elikhulu. A 10MW solar plant,<br />
which produces 30% of the facility’s needs, started operating in 2021.<br />
ONLINE RESOURCES<br />
Council for Geoscience: www.geoscience.org.za<br />
Minerals Council South Africa: www.mineralscouncil.org.za<br />
National Department of Mineral Resources and Energy: www.dmre.gov.za<br />
South African Institute of Mining and Metallurgy: www.saimm.co.za<br />
By mid-2022, the company<br />
reported a monthly saving of<br />
$145 000 per month. Exxaro,<br />
one of the biggest mining<br />
companies in <strong>Mpumalanga</strong>, has<br />
a subsidiary, Cennergi, that builds<br />
and manages renewable energy<br />
plants. Two wind farms have been<br />
built in the Eastern Cape and the<br />
plan is now to build plants near<br />
Exxaro mining sites.<br />
The ambitious renewable<br />
energy plans of Seriti Green,<br />
subsidiary of coal-miner Seriti<br />
Resources, are outlined in a<br />
Special Feature elsewhere in<br />
this journal.<br />
Impact Catalyst <strong>Mpumalanga</strong><br />
has been launched in<br />
<strong>Mpumalanga</strong>, having previously<br />
operated in two of South Africa’s<br />
other big mining provinces,<br />
Limpopo and the Northern Cape.<br />
Impact Catalyst aims<br />
to drive large-scale socioeconomic<br />
development<br />
initiatives through publicprivate<br />
partnerships and a<br />
big focus in <strong>Mpumalanga</strong> is<br />
going to be the transition to<br />
green energy. An initiative of<br />
Anglo American and Exxaro,<br />
the Council for Scientific and<br />
Industrial Research (CSIR) and<br />
World Vision, Impact Catalyst<br />
will assist with mine and power<br />
station closures, ensuring that<br />
they are done in a way that<br />
protects the environment and,<br />
where possible, setting up<br />
manufacturing or agricultural<br />
opportunities for local<br />
communities. ■<br />
43<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong>
INTERVIEW<br />
Mapping for safety and<br />
economic growth<br />
Dr Taufeeq Dhansay, Manager of the Minerals and Energy Geoscience Mapping<br />
Programme, explains how important geoscientific mapping can be for every<br />
aspect of society and gives a progress report on the Council for Geoscience’s<br />
carbon capture research.<br />
Dr Taufeeq Dhansay, Manager,<br />
Council for Geoscience<br />
BIOGRAPHY<br />
After earning a bachelor’s degree in<br />
Geosciences from the University of<br />
Cape Town, Taufeeq spent time at<br />
the International Institute for Applied<br />
Systems Analysis in Austria on his way<br />
to a Master’s, where his focus was<br />
geothermal energy. Another overseas<br />
experience was at the Structural<br />
Geology and Tectonics Research Group<br />
at Jena University in Germany. Nelson<br />
Mandela University awarded Taufeeq a<br />
PhD in Geosciences in 2017.<br />
In recent mapping, what have you found in <strong>Mpumalanga</strong>?<br />
<strong>Mpumalanga</strong> is very rich is terms of its geological variety. You<br />
find some of the earth’s oldest rocks that tell you about how<br />
the earth evolved and formed. Many international scientists<br />
visit the province to investigate these rocks, some that are<br />
more than four-billion years old. You also find some of the<br />
youngest rocks, so that variety from the oldest to youngest<br />
means that you have the entire history of the earth’s processes<br />
within the province. Some of these processes include how<br />
various minerals systems formed and evolved.<br />
This implies that it is a very rich province in terms of its natural<br />
resources. This includes, coal, gold, platinum and other types<br />
of critical minerals that are needed to sustain future energy like<br />
renewable resources and batteries.<br />
Now we are looking at integrated research. What happens as<br />
we shift away from coal in the province? Does it mean that the coal<br />
was the only drawcard of the province in terms of its economy? We<br />
are finding that the answer is no.<br />
Is coal the province’s only resource?<br />
There are other mineral resources that can also be looked at. That<br />
is a primary focus at the moment. More than two thirds of the<br />
province’s economy is now reliant on coal so this brings into<br />
context the idea of the just transition.<br />
We are asking what geoscience can tell us about a transition<br />
in terms of sustainability.<br />
Coexistence between mining and agriculture only<br />
happens if you understand the geology. We have to maintain<br />
the integrity of the groundwater in such a way that you can<br />
have mining and agriculture existing perfectly in harmony.<br />
We are finding that this is possible. Secondly, if you can<br />
identify an area where you might find a fossil fuel on the<br />
surface like coal, then you can dig a bit deeper and find<br />
gas. Deeper still and you might find gold. That means that<br />
in terms of the valuation and the investment potential, the<br />
land is looked at differently, both for the GDP and for the<br />
sustainability of life in the province.<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong><br />
44
The geological profile beneath Leandra, <strong>Mpumalanga</strong>.<br />
If you draw a cross-section through <strong>Mpumalanga</strong>,<br />
within the top four kilometres we have found a<br />
number of mineral resources and natural resources<br />
such as groundwater. Secondly, this is a good natural<br />
laboratory where you can study and look into the<br />
issue of sustainability.<br />
<strong>Mpumalanga</strong> is also the site of your Carbon<br />
Capture Utilisation Storage (CCUS) project. How<br />
is that progressing?<br />
<strong>Mpumalanga</strong> has the highest CO2 emissions<br />
in the country, which is no surprise because<br />
this is where we have the bulk of the coal-fired<br />
energy plants.<br />
We were challenged as scientists to look at the<br />
issue. We have to transition towards a low-carbon<br />
economy. This is known. If tomorrow you had to<br />
turn off coal what would happen to the 150 000<br />
people directly employed by the coal industry? The<br />
challenge is how to manage this transition in a way<br />
that actually enables sustainability. This is where the<br />
just transition comes in.<br />
Council for Geoscience scientists logging<br />
borehole core from <strong>Mpumalanga</strong>.<br />
The problem is CO2, carbon dioxide.<br />
Technologies exist where you can capture the carbon<br />
dioxide. You do not release the carbon dioxide into<br />
the atmosphere. Carbon dioxide has many uses.<br />
There are a number of things that you can do with<br />
the carbon dioxide. Many industrial processes require<br />
carbon dioxide: we drink sparkling water, we drink<br />
fizzy cooldrinks. Those products use carbon dioxide,<br />
for example.<br />
We had assumed that South Africa’s larger<br />
storage potential for carbon dioxide was generally<br />
near-shore, so we were looking at coastal provinces<br />
and offshore. That’s because the relevant rocks<br />
are very spongy, or absorbent of CO2. Now we<br />
have gone back to <strong>Mpumalanga</strong> and we have<br />
looked underground to find if there are additional<br />
geological areas where you can viably and safely<br />
store the CO2. This is what we have found. We<br />
have recently published a paper that shows these<br />
rocks could very likely support the injection and<br />
sequestration of CO2.<br />
Would the gas disappear or would it stay there<br />
forever?<br />
The idea would be that we take the gas and convert<br />
it into a solid. When CO2 reacts with certain metals,<br />
it forms a new mineral that just has the carbon<br />
incorporated. By the way, this actually happens<br />
in nature. We stop the gas from going into the<br />
atmosphere, and put it in the ground. It reacts<br />
naturally with other types of minerals which are very<br />
reactive and then it forms a new mineral and it stays<br />
in the ground forever. That is the principle.<br />
How far advanced are you along that road?<br />
The first step is that we have identified the<br />
potential reservoirs. Everything comes down to<br />
45 MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong>
INTERVIEW<br />
The hyperspectral core scanner in use at the Council for Geoscience National Core Library.<br />
making this financially viable so it is important to<br />
mention that these areas are below the current<br />
coal fields. You would not need to transport the<br />
CO2 very far to be stored.<br />
The type of storage is quite critical. At a depth<br />
of about 1km you find saline aquifers. That holds<br />
the type of water that you can’t necessarily use for<br />
anything. If you pump the CO2 into that salty water,<br />
the CO2 slowly reacts with the salt in the water but<br />
it can take up to thousands of years before the CO2<br />
becomes immobile. However, if you store the CO2 in<br />
the type of rocks that we are looking at, that reaction<br />
can theoretically happen much quicker. The sooner<br />
you convert the gaseous CO2 into a solid CO2, the<br />
sooner it is rendered immobile. Then it cannot move<br />
around and get back into the atmosphere.<br />
What effect would these processes have on the<br />
environment?<br />
A lot of our work so far has been specifically on<br />
environmental monitoring. This is a critical point.<br />
Before we actually develop this technology, we<br />
are doing a significant amount of environmental<br />
research to make sure that we can understand the<br />
baseline environmental conditions on the ground.<br />
We want to get a footprint of the area – the flora, the<br />
fauna, the chemistry of the groundwater, the amount of<br />
groundwater there is – all of that information.<br />
Are CGS staff excited about the CCUS project?<br />
Yes. It is a very big project. The principle is that it’s<br />
a challenge. There are a lot of different opinions<br />
around the transition. Some say we are not moving<br />
fast enough. Others say we are moving too fast.<br />
This is the nice thing about being pragmatic – a<br />
fundamental scientist if you like – being practical and<br />
finding solutions that will be sustainable.<br />
Our technology for renewables is still developing;<br />
we are not there entirely yet. It’s a big challenge and<br />
we need to buy ourselves some time. For the first<br />
time in a long time, the issue is being looked at<br />
directly by scientists, not necessarily only by policymakers.<br />
We have to guide them, we need to show<br />
what is possible, scientifically and empirically. How<br />
do you present empirical data that has passed peer<br />
review? That is the principle that we are focusing on.<br />
The carbon capture project is a large, integrated<br />
project. The project is funded both by the South<br />
African Government and the World Bank and the<br />
entire project budget is about $23-million.<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong><br />
46
INTERVIEW<br />
We have to be very unbiased in terms of the<br />
type of research we do. We will be doing full<br />
Environmental and Social Impact Assessments (ESIAs)<br />
before we do any type of sub-surface investigation.<br />
Our data portal is available to the public online.<br />
At the CGS you will find somebody who is<br />
working on hydrogeology, while another person is an<br />
environmental geologist, who might be interested in<br />
what this is going to do for the environment.<br />
What is the nature of new mapping CGS is doing?<br />
The first thing to touch on is that what we are doing is<br />
very much geoscientific mapping, not just geological.<br />
The second thing is that the scale is very important.<br />
We have generally mapped to a scale of 1:250 000,<br />
so that means if a hill is less than 250 metres, it will<br />
not appear on the geological map. We have shifted<br />
to the 1:50 000 scale. South Africa was only covered<br />
to 4% in terms of 1:50 000-scale maps. After about<br />
five years, we are now moving up to a figure of 12%.<br />
People often think that mapping is for minerals<br />
only. What other functions does it have?<br />
We have not exclusively focused on minerals. We’ve<br />
been able to identify certain zones and certain<br />
geological features where specific types of geohazards<br />
are concentrated. We are researching that<br />
further to mitigate possible natural disasters or loss<br />
of human life.<br />
The recent landslides in KwaZulu-Natal are an<br />
example. Many of the landslides are due to specific<br />
geomorphology and geological controls. If we<br />
don’t have the map resolution required, we can’t<br />
necessarily create the necessary mitigation scenarios.<br />
The same is true in Gauteng. A large portion of<br />
Gauteng is built on dolomite, the type of rock that<br />
forms sinkholes. The state spends a lot of money on<br />
infrastructural development and the risks can be<br />
mitigated if we understand the geology.<br />
There are many areas in the country where the<br />
dams are not efficient in supporting farming, so we<br />
look at groundwater resources. To understand those<br />
resources, you need to understand the geology of<br />
very specific structures, essentially pathways that<br />
allow the water to flow. The other aspect that is<br />
not necessarily being considered is the surface of<br />
the earth. This is where all of our food comes from.<br />
In areas where we want agricultural sustainability,<br />
you need to understand the geology of those<br />
areas. Similarly, you cannot build a large solar plant<br />
on soil that might sustain agriculture. We want<br />
to avoid sterilising the ground and ruling out the<br />
possibilities of groundwater or minerals.<br />
Tell us more about groundwater.<br />
We have been very successful in identifying<br />
significant groundwater resources, especially in the<br />
Karoo. We have been able to find, test and research<br />
many groundwater aquifers that can sustain<br />
groundwater resources in those areas.<br />
And what are the new maps showing in terms of<br />
mineral resources?<br />
We have focused on specific areas where we<br />
anticipate there to be some investment in<br />
exploration. Some of the mineral resources<br />
we are also looking at in terms of our<br />
developmental needs. We have to look for the<br />
type of minerals needed to sustain renewable<br />
energy, including batteries.<br />
A number of mineral resources can support<br />
battery development. Specifically, mobile devices<br />
have lithium ion batteries and some of our mapping<br />
has discovered that South Africa has quite a<br />
significant quantity of lithium that can possibly be<br />
extracted and researched.<br />
Where is lithium found?<br />
It is mostly in the Northern Cape and it is also found<br />
in KwaZulu-Natal. We also found lots of vanadium,<br />
which is a critical metal needed for larger-format<br />
batteries. So mapping goes far beyond mining, it’s<br />
vital to every aspect of the economy.<br />
Development hinges on earth science. We<br />
need to understand the earth. When we map, we<br />
try as hard as possible to look as deep as possible.<br />
Humans generally interact with the top five<br />
kilometres of the earth. We have gold mines that<br />
touch four kilometres. If you go to any province<br />
the geology you see just below your feet is not<br />
necessarily the geology that you will see at a<br />
kilometre below your feet. The Karoo might be dry<br />
but if you had to go down several hundred meters<br />
you would find significant natural resources to<br />
sustain socioeconomic development, such as<br />
water and minerals. ■<br />
47 MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong>
OVERVIEW<br />
Oil and gas<br />
Sasol partnerships point to a new path.<br />
SECTOR INSIGHT<br />
PASA has issued natural gas<br />
exploration permits.<br />
Aviation is responsible for 3% of global carbon emissions. Solutions are<br />
being worked on in <strong>Mpumalanga</strong>. Credit: Lawrence Hookham on Unsplash<br />
International chemicals and energy company Sasol has several<br />
large plants in <strong>Mpumalanga</strong> and it has been the dominant<br />
national player in these sectors for decades.<br />
With more than 30 000 employees and a presence in 30<br />
countries, the decisions Sasol make have a big impact on society.<br />
A series of partnerships entered into by Sasol illustrate that the<br />
company has decided that the energy future has to be different to<br />
the present.<br />
Subsidiary company Sasol ecoFT is producing sustainable<br />
fuels and chemicals from green hydrogen and sustainable carbon<br />
sources via the Power-to-Liquids process and using the Fischer-<br />
Tropsch technology (FT) which has helped set the company apart<br />
in its field.<br />
In 2010 Sasol flew the world’s first passenger aircraft using<br />
fully-synthetic jet fuel and it has been investigating solutions ever<br />
since. Sasol is part of a consortium based at its Secunda operations<br />
called HyShiFT with Linde, Enertrag and HydRegen, a spinoff<br />
company from the Department<br />
of Chemistry of the University of<br />
Oxford. The project aims to invest<br />
in about 500MW of renewable<br />
energy that will supply a<br />
200MW electrolyser for green<br />
hydrogen production, resulting<br />
in approximately 45 000 tons a<br />
year of sustainable aviation fuel<br />
(SAF).<br />
In 2021, agreements<br />
were signed with Toyota and<br />
the Industrial Development<br />
Corporation (IDC) relating to<br />
green hydrogen and Sasol joined<br />
the Hydrogen Council.<br />
With the IDC, Sasol aims<br />
to develop a green hydrogen<br />
market in South Africa, develop<br />
policy guidelines, support pilot<br />
projects and investigate funding<br />
options for the nascent sector.<br />
One such pilot project is to<br />
develop the N3 highway, South<br />
Africa’s busiest road, into a green<br />
corridor for long-haul trucks<br />
powered by hydrogen. Toyota is<br />
building the trucks in Japan for<br />
use on the route.<br />
In 2022 the Green Fuels<br />
Hamburg consortium and Sasol<br />
ecoFT agreed to work together<br />
and the company signed a<br />
Memorandum of Understanding<br />
(MoU) with German aircraft<br />
manufacturer Deutsche Aircraft<br />
to work on technology for<br />
sustainable aviation fuel using<br />
green hydrogen.<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong><br />
48
OVERVIEW<br />
In <strong>2023</strong> Sasol ecoFT and Topsoe signed an MoU to establish<br />
a 50/50 Joint Venture (JV) to develop SAFs. The JV will develop,<br />
build, own and operate ventures producing SAF based on Sasol’s<br />
FT technology and Topsoe’s SAF technologies. The two companies<br />
have been technology partners for more than two decades.<br />
Gas future<br />
Products manufactured at the Sasol complex in Secunda include<br />
synthetic fuel, petroleum, paraffin, jet fuel, creosote, bitumen, diesel<br />
and lubricants. The primary feedstock for synthetic-fuel production<br />
is coal, and the plant is in the heart of <strong>Mpumalanga</strong>’s coalfields.<br />
Sasol Gas is one of the four operations at Secunda, supplying<br />
natural gas to Sasol Synfuels and buying Sasol Synfuels’ methanerich<br />
pipeline gas to sell to customers in <strong>Mpumalanga</strong> and KwaZulu-<br />
Natal. The octene plant makes octene, a hydrocarbon molecule<br />
which is used in agrochemicals, plasticisers and synthetic lubricants.<br />
Sasol announced in 2021 the sale of its 30% stake in the Romco<br />
natural gas pipeline that links Mozambique and South Africa. As<br />
part of a global sell-off of assets to reduce debt, Sasol expects to<br />
earn more than R5-billion from the transaction. The company will<br />
continue to be the pipeline’s operator and maintains a 20% stake in<br />
the venture.<br />
The Romco pipeline could carry far more gas in the future as<br />
there have been big finds of new gas off the coast of Mozambique<br />
which could be shipped as liquefied natural gas (LNG) to Maputo<br />
and continue from there to the Sasol plant at Secunda. The<br />
province is already equipped with energy and fuel infrastructure<br />
and expertise.<br />
The Liquefied Natural Gas Independent Power Producer<br />
Procurement Programme (LNG IPPPP) is part of the broader<br />
programme of the National Department of Mineral Resources and<br />
Energy which encourages private investment in renewable energy,<br />
namely the Renewable Energy Independent Power Producer<br />
Procurement Programme (REIPPPP). The total allocated to gas-topower<br />
in the national power plan is 3 726MW, of which 3 000MW is<br />
for LNG.<br />
The REIPPPP has seen investment into this totally new sector of<br />
more than R200-billion since 2012 and South Africa is now home to<br />
112 independent power projects, whereas just 13 years ago there<br />
were fewer than 40 in Sub-Saharan Africa.<br />
ONLINE RESOURCES<br />
HyShiFT: www.hyshift.org<br />
Independent Power Producer Programme: www.ipp-projects.co.za<br />
Petroleum Agency South Africa: www.petroleumagencysa.com<br />
PetroSA: www.petrosa.co.za<br />
Three natural gas exploration<br />
permits have been awarded to<br />
Tosaco Energy for the sandstonerich<br />
area between Amersfoort and<br />
Balfour in the western part of the<br />
province by Petroleum Agency<br />
South Africa (PASA). PASA regulates<br />
exploration and production<br />
activities and acts as the custodian<br />
of the national petroleum<br />
exploration and production<br />
database. Tosaco Holdings has<br />
a 25% stake in Total SA. Two<br />
methane-gas exploration rights<br />
have been granted to Highland<br />
Exploration in the Evander area.<br />
The promoters of the<br />
Nkomazi Special Economic<br />
Zone believe that the fact that<br />
the pipeline passes through<br />
the SEZ is a big selling point.<br />
An alternative would be for the<br />
LNG to be shipped to Richards<br />
Bay before being piped north.<br />
Many of the big mining<br />
and manufacturing concerns in<br />
<strong>Mpumalanga</strong> have long-term<br />
contracts for the supply of gas<br />
with big gas companies. Afrox<br />
and Air Liquide are two of the<br />
biggest, with the latter having<br />
3 500 national customers,<br />
including Sappi and Sasol.<br />
Air Liquide is to start<br />
operating 16 air separation<br />
units (ASUs) as a result of an<br />
R8-billion purchase from Sasol.<br />
The company’s fleet now<br />
comprises 17 ASUs in Secunda,<br />
with the 16 units having the<br />
capacity to produce 42 000<br />
tons per day of oxygen. ■<br />
49<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong>
OVERVIEW<br />
Manufacturing<br />
New sectors are arising from the green economy.<br />
SECTOR INSIGHT<br />
<strong>Mpumalanga</strong> is home to<br />
multiple steel and timber mills.<br />
COFCO International’s Standerton Mill is the country’s biggest<br />
soy-crushing facility. Credit: COFCO<br />
The assembly of solar-voltaic panels, building bases and towers<br />
for wind turbines and making equipment required for<br />
batteries – these are all areas where there might be potential<br />
for new manufacturing jobs as <strong>Mpumalanga</strong>’s economy<br />
starts to transition to renewable energy.<br />
Containerised mini-grids are being already being assembled<br />
in the workshops of the Komati Power Station, which was<br />
decommissioned in 2022. Because the site is serviced by the<br />
transmission grid, it will also be converted into a generation site<br />
for 150MW of solar, 70MW of wind and 150MW of storage batteries,<br />
which will create the potential for other manufacturing enterprises<br />
to locate there. Camden Power Station (pictured), near the town of<br />
Ermelo and also scheduled for decommissioning, could be the site<br />
of similar activities.<br />
The <strong>Mpumalanga</strong> Provincial Government is working with the<br />
Presidential Climate Commission, the Climate Investment Fund and the<br />
World Bank to find ways to diversify the local economy. A key objective<br />
of the <strong>Mpumalanga</strong> Economic Growth and Development Path<br />
(MEGDP) is to expand the industrial base of the provincial economy.<br />
From steel to chemicals, petroleum and stainless steel to paper and fruit<br />
juice, <strong>Mpumalanga</strong> makes a wide variety of products. Fuel, petroleum<br />
and chemical production occurs<br />
in the southern Highveld region<br />
clustered around Sasol’s plants.<br />
The Sasol chemicals and liquid<br />
fluids complex at Secunda is a<br />
vital component of <strong>Mpumalanga</strong>’s<br />
manufacturing sector. Also in the<br />
southern section is the town of<br />
Standerton which hosts several<br />
large manufacturing plants.<br />
Chief among these are a chickenprocessing<br />
facility and two mills,<br />
one for textiles and the other for<br />
crushing soy.<br />
Astral Foods’ Goldi processing<br />
plant has its own breeding<br />
and hatching operation and<br />
a processing capacity of<br />
approximately 1.8-million broilers<br />
per week. The company has won<br />
a court order to compel the local<br />
municipality to supply services<br />
after Astral’s production levels<br />
were disrupted by intermittent<br />
water and electricity supply.<br />
Goldi is the largest employer in<br />
Standerton.<br />
Standerton Mills designs,<br />
manufactures and finishes yarn<br />
and woven industrial fabrics.<br />
The company, which was<br />
established in 1947, integrates<br />
aspects of manufacturing<br />
across a variety of technical<br />
fabrics and yarn, offering a<br />
stand-alone or fully integrated<br />
end-to-end service which<br />
includes designing, spinning,<br />
twisting, weaving and coating.<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong> 50
COFCO International’s soy-crushing plant in Standerton has 120<br />
employees and is the biggest facility of its kind in South Africa. The<br />
company has more than 11 000 employees worldwide and is active<br />
on all continents. Feedstock for the plant comes from partner farms<br />
and third parties to produce oil and soy meal for animal feed. Work<br />
on efficiency and other improvements at the plant has led to a<br />
doubling in volumes processed.<br />
Standerton falls within the Maize Triangle that touches four<br />
provinces. Within that area COFCO operates a 30 000-hectare<br />
contract farming operation which provides soybeans to the<br />
Standerton facility and maize for domestic consumption.<br />
The northern Highveld area, including Middelburg and<br />
eMalahleni (Witbank), is home to ferro-alloy, steel and stainlesssteel<br />
concerns.<br />
In the Lowveld, agricultural and forestry products are<br />
processed while Sappi’s giant mill is close to the company’s forests<br />
south-west of the provincial capital, Mbombela. Timber firm and<br />
board manufacturer PG Bison is in the process of spending more<br />
than R2-billion on increasing capacity at its Mkhondo plant.<br />
TSB Sugar runs two large mills and produces fruit juices through<br />
a subsidiary company. Nelspruit is the centre of the province’s foodprocessing<br />
cluster. Approximately 70% of jobs in the manufacturing<br />
sector are in food and forestry.<br />
Steelmaking is a key strategic industry for South Africa,<br />
representing 1.5% of the country’s GDP and accounting for<br />
about 190 000 jobs. According to the South African Iron and<br />
Steel Institute (SAISI), the South African steel industry value<br />
chain multiplies the value of local iron ore by a factor of four.<br />
Middelburg-based Columbus Stainless is South Africa’s only<br />
producer of stainless-steel products.<br />
The dtic’s Agro Processing Support Scheme (APSS) includes<br />
furniture manufacture as a core sector for future growth and<br />
ONLINE RESOURCES<br />
Highveld Industrial Park: www.highveldindustrialpark.co.za<br />
<strong>Mpumalanga</strong> Economic Growth Agency: www.mega.gov.za<br />
South African Furniture Initiative: www.furnituresa.org.za<br />
South African Iron and Steel Institute: www.saisi.co.za<br />
support. Average employment<br />
per manufacturer is 13 people<br />
per facility. Furntech White<br />
River is a part of the Seda<br />
Technology Programme of the<br />
Small Enterprise Development<br />
Agency (Seda).<br />
The Furniture Sector Forum<br />
has become an annual event,<br />
the fourth of which was held in<br />
2022. At the event, government<br />
incentives and ideas about<br />
how to reduce the cost of<br />
expensive machinery through<br />
co-ownership and partnerships<br />
are shared, together with other<br />
strategic ideas. The first forum<br />
was co-hosted by the South<br />
African Furniture Initiative<br />
(SAFI), Proudly South African,<br />
PG Bison and the Department<br />
of Trade, Industry and<br />
Competition (dtic). A national<br />
Furniture Industry Master Plan<br />
(FIMP) was adopted in 2021,<br />
which subsequently led to the<br />
reorganising of SAFI into seven<br />
chambers.<br />
Enaex Africa, the new joint<br />
venture comprising Enaex<br />
and what used to be Sasol<br />
Explosives, will spend R16-<br />
million on a facility to assemble<br />
detonators in Secunda. The<br />
facility is intended to produce<br />
800 000 detonators per annum.<br />
Enaex, a subsidiary of the<br />
Sigdo Koppers Group, is the<br />
controlling partner in the JV. ■<br />
51<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong>
FOCUS<br />
Columbus Stainless<br />
Choosing the right metal for the future.<br />
Columbus Stainless, based in Middleburg,<br />
<strong>Mpumalanga</strong>, is a subsidiary of the<br />
Spanish group of companies, Acerinox<br />
SA, and Africa’s only producer of stainlesssteel<br />
flat products (coils, plates and sheets), with<br />
global distribution networks to final customers,<br />
stockists, engineering shops and mines.<br />
The company supports the livelihoods of<br />
1 250 employees and 600 contractors and we<br />
create in the region of 150 job opportunities<br />
annually for young trainees. Through its BBBEE<br />
programme, Columbus Stainless actively<br />
promotes doing business with small, medium<br />
and micro enterprises (SMMEs) owned or<br />
controlled by black entrepreneurs that are able to<br />
supply quality products and services in a timely<br />
and competitive fashion.<br />
We are proud to have contributed to the<br />
supply and development of stainless steel for<br />
close to six decades and will continue to support<br />
the growth in Africa’s manufacturing industry<br />
through sound technical advice and premium<br />
customer service.<br />
Products<br />
For most projects, current economic constraints<br />
require a balance between materials of<br />
construction selected and ultimate cost savings.<br />
The selection of stainless steel in this economy<br />
becomes the obvious choice. Stainless steel is<br />
a versatile metal of construction – its corrosion<br />
resistance and elegant appearance offers longevity<br />
and low maintenance in service. The added<br />
advantage is that stainless steel is also considered<br />
an environmentally-sustainable material of choice,<br />
since it is 100% recyclable and is produced using<br />
predominantly recycled materials. The future of<br />
manufacturing is indeed Stainless.<br />
Columbus Stainless produces the three main<br />
families of stainless steel, namely Austenitic,<br />
Ferritic and Duplex grades, which are suitable<br />
for most applications including agro-processing,<br />
food-processing equipment, mining and power<br />
generation – including nuclear, chemical,<br />
automotive and manufacturing industries.<br />
Ferritic Stainless Steel: Commonly known as<br />
plain chromium steels. Typical examples include<br />
grades 430, used for applications like cutlery,<br />
cookware and architectural applications like wall<br />
cladding, hand rails and balustrades.<br />
Utility Ferritic Stainless Steel: 3CR12® is a<br />
world-renowned low-cost utility ferritic stainless<br />
steel developed by Columbus Stainless and is<br />
used in structural applications. This material<br />
bridges the gap between coated carbon steels<br />
and the traditional higher alloyed stainless-steel<br />
grades. Due to excellent properties in wetabrasion<br />
conditions, 3CR12® is used successfully<br />
in the mining industry to fabricate ore-handling<br />
equipment, conveyor-belt systems and ore<br />
wagons. Applications in the agro-processing<br />
industries include handling and processing<br />
equipment, handrails, floor gratings and walkways.<br />
3CR12® has seen great success and longevity in<br />
roofing and cladding applications, even in highly<br />
corrosive ammonia-containing environments<br />
like chicken farms, piggeries and other livestock<br />
holding facilities.<br />
Austenitic Stainless Steel: These steels are<br />
alloyed with chromium and nickel for improved<br />
corrosion resistance, fabricability and exhibit<br />
good strength properties both in cryogenic<br />
temperatures (for example, cold storage<br />
containers) and high temperatures (ovens, stoves<br />
and cookware). Common grades include 304<br />
and 316, which are used extensively in the food-<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong> 52
FOCUS<br />
processing industry, demanding high hygienic<br />
properties. Typically used in agriculture and<br />
abattoirs (including dairy processing and meathandling<br />
equipment, food and beverage storage<br />
tanks); catering and hospitality (cooking utensils,<br />
food-processing equipment, cold storage and<br />
healthcare industries for medical equipment and<br />
surgical tools); mining and chemical industry<br />
(cathode plates, processing tanks).<br />
Duplex Stainless Steel: These grades exhibit<br />
high strength, good resistance to stress corrosion<br />
cracking and superior corrosion resistance. Popular<br />
grades include lean duplex 2304 and standard<br />
duplex grade 2205. Successful applications<br />
are in the paper and pulp industries, chemical,<br />
petrochemical and mining industries for various<br />
processing equipment and storage tanks. Due<br />
to their superior corrosion resistance these steels<br />
can withstand harsh marine environments. Our<br />
duplex stainless steel grade 2205 has been used<br />
and qualified in South African nuclear applications.<br />
Outlasting harsh conditions<br />
Case study: 3CR12 railway electrification<br />
masts in Gqeberha<br />
Corrosion is the natural, gradual deterioration<br />
of metals reacting with their environment,<br />
compromising the useful properties of metals and<br />
structures, including their strength and structural<br />
integrity. In the ambient environment, metal alloys<br />
tend to revert back to their natural stable states.<br />
Carbon steels, for example, are made up of iron<br />
and a combination of other alloying elements.<br />
Without any additional surface protection, they<br />
tend to form a layer of rust (iron-oxide) which is<br />
brittle and exfoliates, exposing a new fresh layer<br />
of steel to be attacked. This cycle continues with<br />
devastating effects to equipment and structures<br />
due to resultant loss in through-thickness and<br />
inevitably causing perforation. Stainless steels have<br />
a unique advantage in that a thin, self-repairing<br />
protective layer forms on the surface of the steel.<br />
This chromium oxide passive layer gives the steel<br />
its characteristic corrosion-resisting properties in<br />
most environments. The steel must contain at least<br />
10.5% chromium for this passive layer to form.<br />
There are many modes of corrosion;<br />
atmospheric corrosion is one of the most<br />
widespread causes of metallic degradation. It<br />
occurs as a reaction of a metal to its immediate<br />
environment. It is generally predictable and<br />
measurable, and therefore can be designed into<br />
a structure by adding thickness factor. Examples<br />
of successful use of stainless steel in a corrosive<br />
environment are the railway electrification masts<br />
in Gqeberha. The line runs from the harbour<br />
along the coast to the North End, moving inland.<br />
During high tide and windy conditions, the masts<br />
are constantly exposed to sea spray. The metal of<br />
construction used is utility ferritic stainless steel<br />
grade 3CR12®. Installed in 1982, these masts<br />
have seen very aggressive coastal environmental<br />
conditions. But after 40-plus years in operation, the<br />
structure is still in pristine condition, with minimal<br />
thickness reduction experienced. This proves<br />
that the longevity of the product and minimal<br />
maintenance are critical attributes to consider<br />
when selecting materials of construction.<br />
Stainless steels are known for their superior<br />
corrosion resistance and are mainly used in the<br />
bare mill finish without the need for additional<br />
protective coating systems to enhance corrosion<br />
protection – hence cementing them as the lowlife-cycle-cost<br />
metals of choice.■
OVERVIEW<br />
Transport and logistics<br />
The Maputo Corridor is performing well for logistics companies<br />
SECTOR INSIGHT<br />
Major bridge and road projects<br />
are underway.<br />
The Karino Exchange. Credit: Sanral<br />
The performance of the Maputo Corridor has enabled one of<br />
South Africa’s biggest logistical carriers to continue to post<br />
good financial results. With the N3 highway between Johannesburg<br />
and Durban often congested and delays at the<br />
ports of Richards Bay and Durban, Super Group reports that the route<br />
through <strong>Mpumalanga</strong> to Mozambique is functioning well for its trucks.<br />
In comparison with December 2019, group revenue increased<br />
by 54.4%, with non-South African operations contributing 51% to<br />
that figure. Super Group operates in 21 countries.<br />
Trans Africa Concessions (TRAC), the toll road company, will<br />
spend R<strong>24</strong>8-million on expanding capacity on the bridge over<br />
the Crocodile River and creating an upgraded roads junction<br />
at the Montrose interchange. Two new bridges will be built to<br />
provide access over the Elands Valley section of the road. The<br />
Motheo Group, in a joint venture with WBHO, has been working<br />
on the N4 for TRAC, which has also parcelled out some work to<br />
Raubex Construction.<br />
The Karino Interchange project on the N4 which provides a<br />
link between Mbombela, Kanyamazane, the N4 and access to the<br />
Kruger <strong>Mpumalanga</strong> International Airport has also been completed<br />
and is operational.<br />
The South African National<br />
Roads Agency (Sanral) will spend<br />
R9-billion on road infrastructure in<br />
<strong>Mpumalanga</strong>. The agency, which<br />
is responsible for national roads, is<br />
concentrating on the upgrading<br />
of the N2 between Ermelo in<br />
<strong>Mpumalanga</strong> and KwaZulu-Natal<br />
and the R40 between Hazyview<br />
and Bushbuckridge.<br />
In addition to the Karino<br />
interchange, Sanral is working<br />
on various other projects in the<br />
province, such as the Moloto<br />
Road that connects the provinces<br />
of Gauteng, <strong>Mpumalanga</strong> and<br />
Limpopo. On internal roads within<br />
the province, severe damage was<br />
caused by Tropical Storm Eloise.<br />
The Tekwane South Bridge on<br />
the D2296 collapsed but it is now<br />
back in full operation.<br />
A road that has been<br />
identified as a provincial priority<br />
is the P216/1 from Secunda to<br />
eMbalenhle, which we will be<br />
constructed by the provincial<br />
government in the <strong>2023</strong>/<strong>24</strong><br />
financial year. A bridge from<br />
Emalahleni city centre to Pine<br />
Ridge, Clarinet, Siyanqoba and<br />
Verena will improve safety and<br />
traffic flow.<br />
Volume of traffic<br />
It has not just been heavy rains<br />
that have put a strain on the<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong><br />
54
OVERVIEW<br />
roads. The heavy traffic that feeds coal mines and power stations is<br />
another source of stress. The Provincial Government of <strong>Mpumalanga</strong><br />
has purchased mechanised pothole-patching vehicles in response to<br />
this problem. It is expected that many jobs will also be created in this<br />
attempt to improve the strategic road infrastructure network, which<br />
includes tourism routes.<br />
Sanral has announced a three-year project which will provide<br />
work for small contractors in and around the City of Mbombela.<br />
More than R26-million has been allocated to subcontracting which<br />
will cover things like litter and minor works, minor maintenance,<br />
vegetation and bush clearing.<br />
There is more freight rail traffic in <strong>Mpumalanga</strong> than in any<br />
other province. This is principally because of the transport of coal,<br />
but there are also large volumes of chrome, ferrochrome, forestry<br />
products, chemicals, liquid fuels and general freight.<br />
The Balfour North to Volksrust section of the Gauteng to<br />
Durban mainline carries the largest volumes, most of which is<br />
long-haul freight passing through the province. Despite these high<br />
rail volumes, a huge amount of mineral product is transported by<br />
truck around and out of the province. This puts immense pressure<br />
on <strong>Mpumalanga</strong>’s roads network, particularly in the Gert Sibande<br />
District and the Nkangala District.<br />
The statistics relating to coal haulage in <strong>Mpumalanga</strong> are<br />
stupendous. In one 12-hour period, 34 198 tons of general freight<br />
were recorded for the section of the N4 highway between Nelspruit<br />
and Komatipoort.<br />
Mactransco’s website states that its trucks serving Tshikondeni<br />
Coal Mine travel 3.7-million kilometres per year, working all day for<br />
six days a week. The fleet of ABF Legend Logistics, a Super Group<br />
company, contains more than 200 super-link coal haulage trucks<br />
while another company in the group, SG Coal, claims to have one<br />
of the biggest fleets of coal haulage trucks in Africa. Coal Tipper<br />
Resources operates out of Bethal.<br />
Air access<br />
Eurowings Discover was<br />
launched in July 2021 as a<br />
long-haul leisure airline, not to<br />
be confused with the low-cost<br />
airline, Eurowings. In May 2022<br />
the airline had 16 aircraft.<br />
Airlink, which has 36<br />
destinations in nine African<br />
countries, is the other airline<br />
that regularly flies into KMIA.<br />
Fastjet connects KMIA to<br />
Victoria Falls, Zimbabwe.<br />
From there, Fastjet links that<br />
destination to the country’s<br />
two major cities, Harare and<br />
Bulawayo. KMIA serves an<br />
average of 260 000 per annum.<br />
Hoedspruit Eastgate<br />
Airport is a popular destination<br />
for travellers on their way to<br />
private game lodges and is<br />
also near the Orpen Gate of<br />
Kruger Park. SA Express flies to<br />
Hoedspruit from Johannesburg<br />
and Cape Town.<br />
Middelburg Airfield is one of<br />
the larger alternate airports in<br />
the province, boasting a 1.9km<br />
runway that can accommodate<br />
a 737. The annual Middelburg<br />
Air Show is held in June. Many<br />
game lodges have airstrips<br />
and helipads. SA Red Cross Air<br />
Mercy Service operates out of<br />
the old Nelspruit airport south<br />
of the city. ■<br />
Eurowings Discover, a new division of Lufthansa, announced in<br />
2022 that it would start flying three times a week to Mbombela<br />
from Frankfurt, via Windhoek, in November.<br />
By landing at Kruger <strong>Mpumalanga</strong> International Airport (KMIA),<br />
German tourists will have quick access to the Kruger National Park.<br />
ONLINE RESOURCES<br />
Kruger <strong>Mpumalanga</strong> International Airport: www.kmiairport.co.za<br />
Maputo Corridor Logistics Initiative: www.mcli.co.za<br />
Railroad Association of South Africa: www.rra.co.za<br />
South African National Roads Agency Ltd: www.sanral.co.za<br />
55<br />
The African-themed terminal<br />
buildings at Kruger <strong>Mpumalanga</strong><br />
International Airport always make an<br />
impression. Credit: KMIA
OVERVIEW<br />
Tourism<br />
A multi-pronged domestic promotion effort is underway.<br />
SECTOR INSIGHT<br />
The Southern Sun brand has<br />
risen again.<br />
Cultural and heritage tourism are markets with huge<br />
potential. Credit: MTPA<br />
The <strong>Mpumalanga</strong> Tourism and Parks Agency (MTPA) ran<br />
an energetic winter campaign through the months of<br />
June and July <strong>2023</strong>, aimed at encouraging domestic<br />
tourists to experience the province’s many attractions.<br />
Partly based on the fact that <strong>Mpumalanga</strong> is relatively warmer<br />
than many other parts of the country at that time, the campaign<br />
was part of a broader campaign that has seen marketing efforts<br />
ramped up.<br />
Social media and radio were employed. As Mduduzi Vilakazi,<br />
Acting CEO of the MTPA, said, “Our objective with this campaign is<br />
to grow the domestic trips and regional arrivals to the destination.<br />
We want to create awareness of <strong>Mpumalanga</strong>’s hidden gems, the<br />
less-visited tourism offerings as well as promote affordable family<br />
packages to some of our nature reserves.”<br />
Another plank of the province’s marketing drive involved<br />
persuading national broadcaster SABC to host its Metro FM awards<br />
in <strong>Mpumalanga</strong> for three years, highlighting the arts and cultural<br />
offerings in the province.<br />
The focus has not been exclusively domestic, however.<br />
The new flight from Frankfurt, Germany, to Kruger <strong>Mpumalanga</strong><br />
International Airport (KMIA) had delivered 182 tourists to the<br />
province at the time of the State of the Province address by the<br />
Provincial Premier in February <strong>2023</strong>.<br />
The flight had only been announced by Eurowings Discover,<br />
a new division of Lufthansa, in 2022 and the first flight landed in<br />
November of that year. Eurowings Discover was launched in July<br />
2021 as a long-haul leisure airline. In May 2022 the airline had 16<br />
aircraft. Flying three times a week<br />
to Mbombela from Frankfurt via<br />
Windhoek, it gives much more<br />
direct access to the Kruger<br />
National Park than had previously<br />
been the case for international<br />
tourists, who always used to have<br />
to go through Johannesburg.<br />
Plans are underway to<br />
collaborate with the airline and<br />
with South African Tourism to<br />
conduct a city-to-city tour in<br />
Europe to make more tourists<br />
aware of <strong>Mpumalanga</strong>’s offering.<br />
The Provincial Government<br />
of <strong>Mpumalanga</strong> is looking for<br />
more private partners to invest<br />
in projects to boost an already<br />
active sector that has several<br />
superb tourism assets, ranging<br />
from about 70 parks and reserves<br />
to bird-watching, music festivals,<br />
car rallies and casinos.<br />
A total of R475-million in<br />
public and private investments<br />
has so far been raised for the<br />
Skywalk project at God’s Window<br />
in the Blyde River Canyon<br />
Nature Reserve. The community<br />
that owns the land will be a<br />
shareholder. The aim is to attract<br />
between 45 000 to 60 000<br />
tourists to the Panorama tourism<br />
route. The project is expected to<br />
be completed in March 2025.<br />
Another PPP project is the<br />
development of a cable car<br />
linking the Drierondavels viewing<br />
site with Swadini Dam.<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong><br />
56
OVERVIEW<br />
It’s not only the Big Five that attract attention. Waterbuck at Sabi<br />
Sand Nature Reserve. Credit: Julie Olivier<br />
The Kruger National Park is <strong>Mpumalanga</strong>’s most famous tourism<br />
asset and it falls under South African National Parks (SANParks).<br />
Other notable landmarks include the Blyde River Canyon and the<br />
Makhonjwa Mountains, which have been declared a World Heritage<br />
Site by the United Nations Educational‚ Scientific and Cultural<br />
Organization (UNESCO). During her <strong>2023</strong> State of the Province<br />
Address, Premier Refilwe Mtshweni-Tsipane referenced a number<br />
of additions that will go into making the site more accessible to<br />
academics and casual tourists alike: an education centre, geo-sites<br />
and geo-trails are all planned.<br />
Although the province already caters for motor-rally enthusiasts,<br />
cyclists, runners, walkers, fishers, horse-riders, tree-gliders, abseilers,<br />
white-water rafters and rock-climbers, there is still potential for more<br />
investment in the ecotourism and adventure tourism subsectors.<br />
Hotels<br />
As of May 2022, Tsogo Sun Hotels again adopted the Southern<br />
Sun brand. With the fairly recent acquisition of the Hazyview Sun,<br />
ONLINE RESOURCES<br />
<strong>Mpumalanga</strong> Gaming Board: www.mgb.org.za<br />
<strong>Mpumalanga</strong> Tourism and Parks Agency: www.mtpa.co.za<br />
South African National Parks: www.sanparks.co.za<br />
South African Tourism Services Association: www.satsa.com<br />
the group has a total of seven<br />
properties in the province,<br />
ranging from two StayEasys to<br />
Southern Sun Emnotweni in<br />
Nelspruit.<br />
Tsogo Sun, as distinct from<br />
Tsogo Sun Hotels which is no<br />
more, has interests in casinos<br />
and gaming and runs two<br />
hotels in Witbank (eMalahleni),<br />
The Ridge Hotel and the<br />
RidgePoint Hotel.<br />
Protea Hotels by Marriott<br />
has two properties in<br />
<strong>Mpumalanga</strong>, Protea Hotel<br />
Kruger Gate and Nelspruit. At<br />
White River, Premier Hotel The<br />
Winkler is 20 minutes’ drive<br />
from the Numbi Gate of the<br />
Kruger National Park.<br />
Forever Resorts has a big<br />
presence in the province,<br />
catering to caravanners,<br />
campers and holiday-makers<br />
wanting to stay in chalets.<br />
There is also a four-star Forever<br />
Resorts Mount Sheba.<br />
The Graceland Hotel Casino<br />
and Country Club is a Peermont<br />
resort in Secunda.<br />
The hotel and conference<br />
centre project in Middelburg<br />
is making progress and should<br />
be completed in <strong>2023</strong>. The<br />
R350-million luxury facility<br />
in the Steve Tshwete Local<br />
Municipality is a public-private<br />
partnership. Akani Properties,<br />
a black-owned property<br />
development company, will<br />
work with the Radisson Hotel<br />
Group to deliver the 150-bed<br />
hotel and convention centre.<br />
More than 100 new<br />
job opportunities have<br />
been created so far on the<br />
project, and more than 20<br />
local contractors have been<br />
engaged. ■<br />
57 MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong>
OVERVIEW<br />
ICT<br />
A <strong>Mpumalanga</strong> coal mine is using 5G.<br />
SECTOR INSIGHT<br />
ICT is a critical research<br />
theme at the University of<br />
<strong>Mpumalanga</strong>.<br />
ONLINE RESOURCES<br />
Seda Technology Programme: www.seda.org.za<br />
State Information Technology Agency: www.sita.co.za<br />
Universal Service and Access Agency of South Africa: www.usaasa.org.za<br />
Canyon Coal’s Phalanndwa Colliery, pictured, is South Africa’s<br />
first smart mine. Located near Delmas, the mine produced<br />
1.7-million tons of run-of-mine coal in 2022.<br />
Together with Minetec Smart Mining, Huawei and MTN<br />
are partnering to keep the mine and plant connected and monitored<br />
using high-speed broadband, through the site’s 5G connectivity.<br />
The same partners are working together in Limpopo on a platinum<br />
mine and it is expected that many more mines will follow these pilot<br />
projects in trying to make the country’s mining sector safer and<br />
more automated.<br />
ICT has been chosen as one of the University of <strong>Mpumalanga</strong>’s<br />
six critical research themes. Operating under the title of Information<br />
and Communication Technology for Development (ICT4D), it intends<br />
to present easy adoption and use of ICT resources for the betterment<br />
of people’s day-to-day activities. Sub-themes are ICT in education,<br />
cybersecurity, Internet of Things and data analytics.<br />
The university offers a Diploma in ICT in Applications<br />
Development, a three-year course carrying 360 credits and a levelsix<br />
qualification. Three years<br />
after starting to offer free WiFi<br />
in its operating areas, Glencore<br />
Coal and partner Project Isizwe<br />
celebrated estimated savings in<br />
data costs of more than R100-<br />
million. Having started with 10<br />
hotspots in Ogies and Phola in<br />
the eMalahleni Municipality, the<br />
initiative was expanded to the<br />
Steve Tshwete and Emakhazeni<br />
municipalities where 30 hotspots<br />
now function. Communities are<br />
consuming more than 28 000GB<br />
of data for free every month.<br />
Project Isizwe is a non-profit<br />
organisation that partners with<br />
Internet Service Providers to<br />
provide equitable Internet access.<br />
The MTN SA Foundation<br />
supports several schools in<br />
<strong>Mpumalanga</strong> as part of MTN’s<br />
Back to School campaigns. Eleven<br />
schools have multi-media centres,<br />
each with 20 computer desks,<br />
chairs and teacher stations. The<br />
computer laboratories have one<br />
server, a multifunctional printer,<br />
an interactive whiteboard, a<br />
data projector, a router and<br />
data connectivity to MTN for<br />
<strong>24</strong> months. The province’s<br />
new boarding school, Izimbali<br />
Combined MST, also has a<br />
40-seater laboratory courtesy of<br />
the MTN SA Foundation. ■<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong><br />
58
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OVERVIEW<br />
Education and training<br />
Digital skills are coming to <strong>Mpumalanga</strong>.<br />
SECTOR INSIGHT<br />
<strong>Mpumalanga</strong> has three<br />
TVET colleges.<br />
The CEOs of SAFCOL, Tsepo Monaheng, and CHIETA,<br />
Yershen Pillay, recently signed an MoU.<br />
As part of a programme to spread skills to young people living<br />
in rural areas, an eco-friendly SMART Skills Centre is to<br />
be built in Sabie. The timber structure results from a partnership<br />
between the Chemical Industries Education and<br />
Training Authority (CHIETA) and the South African Forest Company<br />
Limited (SAFCOL).<br />
CHIETA aims to provide digital technology and online learning<br />
to help young people compete in the job market. Among the<br />
forestry-related skills that the centre will focus on are drone<br />
operators, but it will also respond to national skills needs such as<br />
fitters and turners. SAFCOL will cover the cost of erecting the ecofriendly<br />
wooden structure and CHIETA will supply the equipment.<br />
The development of the Komati Training Facility to facilitate the<br />
reskilling and retraining of Eskom employees and members of the<br />
community has begun. Eskom has signed a partnership agreement<br />
with the South African Renewable Energy Technology Centre<br />
(SARETEC) of the Cape Peninsula University of Technology and the<br />
Global Energy Alliance for People and Planet (GEAPP) to develop<br />
the training facility.<br />
Four new primary schools have been completed in areas where<br />
the population has been growing, namely Magogeni, Mpumelelo,<br />
New Klarinet and Mbatini. A further five schools, including<br />
Mkhondo Boarding School, are set for completion in the course of<br />
<strong>2023</strong>. Designs for Long-Tom Secondary and Rockdale Extension <strong>24</strong><br />
are being finalised and construction will begin in <strong>2023</strong>/<strong>24</strong>.<br />
The Funza Lushaka Bursary Scheme will be used to encourage<br />
Grade 12 matriculants to consider pursuing Grade R teaching as<br />
part of a scheme to strengthen<br />
Early Childhood Development.<br />
The Ephraim Mogale Bursary<br />
Scheme supported 1 370<br />
students in different universities<br />
within the country and the<br />
<strong>Mpumalanga</strong> Department<br />
of Education supported 221<br />
students at various level in the<br />
Federal Republic of Russia.<br />
Tertiary progress<br />
On a hill north of the Crocodile<br />
River a complex of buildings is<br />
taking shape as home to the<br />
province’s first university. By<br />
building on existing institutions<br />
such as teacher training colleges,<br />
the University of <strong>Mpumalanga</strong><br />
has progressively offered more<br />
courses and taken on more<br />
students. The official launch was<br />
in October 2013 and by 2020,<br />
the university was offering 26<br />
qualifications to 4 200 students.<br />
The university currently offers<br />
48 programmes in three faculties:<br />
Education; Agriculture and<br />
Natural Sciences; and Economics<br />
and <strong>Business</strong> Sciences. There are<br />
plans to add new programmes<br />
at both undergraduate and<br />
postgraduate levels and<br />
to establish the faculty of<br />
Humanities and Social Sciences<br />
and the School of Law. By 20<strong>24</strong>,<br />
the plan is to offer approximately<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong><br />
60
70 qualifications to over 8 000 students. That is the<br />
year in which the university’s first doctoral graduates<br />
will be capped. Research relevant to the needs of the<br />
province can now be done at local level. Issues such<br />
as acid mine water leaking from abandoned mining<br />
sites and new applications for products in the timber<br />
industry are among the kinds of research that will<br />
boost economic productivity in <strong>Mpumalanga</strong>, and<br />
lead to better socio-economic conditions for citizens.<br />
University of <strong>Mpumalanga</strong> students have<br />
distinguished themselves in competitions run by<br />
ENACTUS, an international organisation that works with leaders in<br />
business and higher education to mobilise university students to<br />
make a difference in their communities while developing the skills<br />
to become socially responsible business leaders. <strong>Mpumalanga</strong><br />
students have won first place in categories such as LED Challenge,<br />
Triple Bottom Sustainability and Community Development.<br />
Among the anchor sponsors are Barloworld, Ford, Harmony Gold,<br />
MTN and Nedbank.<br />
Training institutions<br />
<strong>Mpumalanga</strong> has three Technical and Vocational Education and<br />
Training (TVET) colleges, with an enrolment of over 36 000. UNISA,<br />
the Tshwane University of Technology and the Vaal University of<br />
Technology also have satellite campuses in the province.<br />
The TVET colleges are located in each of the province’s three<br />
District Municipalities: Gert Sibande (four campuses and a skills<br />
academy), Nkangala and Ehlanzeni, which has six campuses, a skills<br />
centre and a satellite campus.<br />
Ehlanzeni TVET College offers 10 National Certificate<br />
(Vocational) programmes including ICT, Finance, Economics and<br />
Accounting, Engineering and Related Design and Tourism. There<br />
are also a number of shorter skills courses on offer.<br />
Nkangala TVET College offers Civil Engineering and Building<br />
Construction at its CN Mahlangu campus and Electrical<br />
Infrastructure Construction at three of its five campuses, among<br />
its seven NCV academic programmes. The <strong>Mpumalanga</strong> Regional<br />
ONLINE RESOURCES<br />
<strong>Mpumalanga</strong> Department of Education:<br />
www.mpumalanga.gov.za/education<br />
Sasol bursaries: www.sasolbursaries.com<br />
Southern African Wildlife College: www.wildlifecollege.org.za<br />
University of <strong>Mpumalanga</strong>: www.ump.ac.za<br />
The University of <strong>Mpumalanga</strong> is building<br />
impressive facilities.<br />
Training Trust (MRTT) is a<br />
Section 21 company active<br />
in skills training. The Fluor<br />
Training Centre in Secunda<br />
offers training in fields such as<br />
fitting, welding, pipefitting and<br />
other building trades.<br />
The Southern African<br />
Wildlife College, offering<br />
diploma and short courses in<br />
conservation, is a joint World<br />
Wide Fund for Nature South<br />
Africa (WWF-SA) and Peace<br />
Parks Foundation initiative.<br />
The college is located near the<br />
Orpen Gate on the edge of the<br />
Kruger National Park.<br />
Sasol is a major supporter<br />
of research and training in<br />
the province. A group of<br />
<strong>Mpumalanga</strong> teachers has<br />
had the opportunity to train<br />
as master teachers for Robotics<br />
and Coding, courtesy of Sasol.<br />
The Sasol Foundation<br />
has also donated multimedia<br />
resources for teachers and<br />
pupils in Science, Technology,<br />
Engineering and Mathematics<br />
(STEM). Awards for students<br />
who achieve in science and<br />
mathematics are regularly<br />
given and Sasol supports<br />
many students on bursaries at<br />
universities and colleges. The<br />
Sasol SGS Global Learning SHE<br />
Academy is located in Evander. ■<br />
61 MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong>
OVERVIEW<br />
Banking and financial<br />
services<br />
Banking while shopping is becoming commonplace.<br />
Being able to do one’s banking at somewhere that is not a<br />
bank is not a new concept. However, TymeBank, one of the<br />
newer entrants onto the South African banking scene, is<br />
taking the concept of “retail banking” to another level. Having<br />
run banking kiosks within retailers such as Pick n Pay and Boxer for<br />
several years, TymeBank has signed a deal with TFG, a group that has<br />
a big presence in the <strong>Mpumalanga</strong>. There are no fewer than <strong>24</strong> Exact<br />
stores in <strong>Mpumalanga</strong>, from Acorn Plaza to Witbank.<br />
What used to be known as the Foschini Group has 34 brands,<br />
including Markhams, Totalsports, Jet and Dial a Bed, and 30-million<br />
customers. In the short term, TymeBank will have access to 600 TFG<br />
kiosks, taking the bank’s total in South Africa to 1 450.<br />
Another relatively new bank is Capitec. Investment holding<br />
company PSG has reduced its holding in Capitec Bank from 32% to<br />
4%, earning about R4-billion by selling those shares.<br />
Discovery Bank officially launched in March 2019 and is<br />
experiencing rapid growth with deposits of R3.7-billion. Discovery<br />
Bank is applying the behavioural model it uses in its health business<br />
to reward good financial behaviour.<br />
In 2022, financial services group Old Mutual received permission<br />
from the prudential authority of the South African Reserve Bank to<br />
apply for a banking licence. The bank will spend R1.75-billion on<br />
setting up the bank and intends to launch in 20<strong>24</strong>.<br />
Ubank, with a history of catering to mineworkers, was found<br />
by the South African Reserve Bank to have an unacceptable capital<br />
adequacy ratio in May 2022 and was consequently placed under<br />
curatorship. Teba Trust Fund, which owns Ubank, was actively<br />
seeking a strategic investor when the curatorship was announced.<br />
The administrators of the fund are the National Union of Mineworkers<br />
(NUM) and Minerals Council SA. One of the banks being courted was<br />
the South African arm of Nigeria’s Access Bank Group and Minerals<br />
Council SA remains positive about the future of the bank.<br />
Despite the collapse of VBS Mutual Bank in 2018, the appetite for<br />
mutual banks is strong, given the nature of the South African market.<br />
ONLINE RESOURCES<br />
Financial Sector Conduct Authority: www.fsca.co.za<br />
Public Investment Corporation: www.pic.gov.za<br />
South African Reserve Bank: www.resbank.co.za<br />
SECTOR INSIGHT<br />
Old Mutual has permission to<br />
start a bank.<br />
The Young Women in <strong>Business</strong><br />
Network (YWBN) has been<br />
granted a mutual bank licence<br />
and Bank Zero also intends to use<br />
the mutual model.<br />
South Africa’s four big retail<br />
banks (Nedbank, Absa, Standard<br />
Bank and First National Bank)<br />
have a solid presence in the major<br />
towns in the province.<br />
Agriculture is an important<br />
focus area for banks, and most<br />
have specialised divisions.<br />
Piet Retief-based TWK Agri<br />
offers financing and insurance<br />
together with the usual suite of<br />
agricultural services. Afgri, one of<br />
the country’s biggest agricultural<br />
companies, offers financial<br />
services (financing and insurance)<br />
under the brand Unigro. ■<br />
Credit: Seda<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong><br />
62
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RSA GOVERNMENT
OVERVIEW<br />
Development finance and<br />
SMME support<br />
The transition to a green economy may bring opportunities.<br />
With the transition to a greener economy a key trend,<br />
the Provincial Government of <strong>Mpumalanga</strong> wants<br />
to leverage the coming change in the economic<br />
landscape to benefit small businesses.<br />
In partnership with the Presidential Climate Commission, the Climate<br />
Investment Fund and the World Bank, opportunities are being explored<br />
for SMMEs and co-operatives to participate in the green economy.<br />
The Premier’s Youth Development Fund allocated R92.3-million to<br />
36 companies in the financial year to February <strong>2023</strong> in sectors such as<br />
agriculture, manufacturing, mining and transport and logistics. Since it was<br />
launched, the fund has disbursed R140-million to businesses in each one of<br />
the province’s 17 local municipalities. In order to further spread the reach of<br />
the fund, roadshows are to be held in rural areas.<br />
The provincial government is committed to allocating 30% of the<br />
provincial procurement budget to enterprises owned by women, youth<br />
and people with disabilities.<br />
Research done by the Small Enterprise Development Agency (Seda)<br />
shows that a high percentage of SMMEs in <strong>Mpumalanga</strong> are in the trade<br />
and accommodation sector. Whereas the national figure is about 43%, in<br />
<strong>Mpumalanga</strong> it is closer to 50%. Seda supports several incubators in the<br />
province: Furntech, furniture manufacturing, White River; Mobile Agro-<br />
Skills Development & Training (MASDT), agricultural training, Nelspruit;<br />
<strong>Mpumalanga</strong> Stainless Initiative (MSI), stainless-steel processing, Middelburg<br />
(with Columbus Stainless); Timbali floriculture, Nelspruit; Ehlanzeni TVET<br />
College Rapid Incubator Renewable Technologies, Nelspruit. TVET stands<br />
for technical and vocational education training.<br />
The Gert Sibande Centre for Entrepreneurship in Evander hosts a Rapid<br />
Incubator in partnership with Seda. The aim is to promote and develop<br />
young entrepreneurs in the province. The Centre was established in 2015<br />
through a partnership between the Gert Sibande TVET College, the DSBD<br />
and the University of Johannesburg.<br />
Entrepreneurship Development is one of the subjects on offer at 90 Youth<br />
Development Centres which are being established. Sappi’s extensive supply<br />
chain allows for a varied and extensive enterprise supplier development<br />
ONLINE RESOURCES<br />
Gert Sibande TVET College: www.gscollege.edu.za<br />
<strong>Mpumalanga</strong> Economic Growth Agency: www.mega.gov.za<br />
<strong>Mpumalanga</strong> Stainless Initiative: www.mpstainless.co.za<br />
Small Enterprise Development Agency: www.seda.org.za<br />
SECTOR INSIGHT<br />
TechnoServe helps tomato<br />
growers meet higher standards.<br />
programme which supports 37<br />
companies, which in turn employ<br />
more than 300 people.<br />
Other companies supporting<br />
SMMEs through their buying chain<br />
include Woolworths and Anglo<br />
American. Woolworths funds<br />
TechnoServe to ensure that small<br />
tomato growers can grow produce<br />
that will meet the demanding<br />
standards of the retailer, and to help<br />
them expand production.<br />
Premier Refilwe Mtshweni-<br />
Tsipane has paid tribute to<br />
private companies for providing<br />
employment opportunities to<br />
local people and for continuing<br />
to support small and emerging<br />
businesses. Bursary programmes<br />
and training programmes were also<br />
acknowledged. The companies<br />
mentioned were Sasol, Exxaro,<br />
Eskom, Sappi, Columbus Stainless,<br />
Samancor, RCL foods, Mondi, Safcol,<br />
Glencore, Standard Bank, Absa Bank,<br />
Nedbank and First National Bank. ■<br />
MPUMALANGA BUSINESS <strong>2023</strong>/<strong>24</strong> 64
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