Mpumalanga Trade and Investment Profile
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THE PLACE OF THE RISING SUN<br />
MPUMALANGA<br />
TRADE & INVESTMENT PROFILE<br />
MPUMALANGA IS OPEN FOR BUSINESS
WHY INVEST IN MPUMALANGA?<br />
• 68% of of l<strong>and</strong> area in in the province is used by agriculture<br />
• <strong>Mpumalanga</strong>’s three biggest sectors are manufacturing, mining <strong>and</strong> agriculture<br />
<strong>Mpumalanga</strong>’s diverse <strong>and</strong> resource-rich economy makes it one of the most<br />
attractive trade <strong>and</strong> investment destinations in South East Africa.<br />
A large, growing domestic market <strong>and</strong> excellent access, supported by worldclass<br />
infrastructure, to the East African <strong>and</strong> Indian Ocean markets through<br />
Maputo Port makes <strong>Mpumalanga</strong> an ideal investment location for export-driven<br />
manufacturing <strong>and</strong> production.<br />
<strong>Mpumalanga</strong> is one of South Africa’s most productive <strong>and</strong> important agricultural<br />
regions <strong>and</strong> through strategic investments in the <strong>Mpumalanga</strong> International<br />
Fresh Produce Market (MIFPM) <strong>and</strong> the Nkomazi Special Economic Zone (NSEZ)<br />
the province is set to become a major force in food production <strong>and</strong> distribution.<br />
<strong>Mpumalanga</strong>’s sophisticated <strong>and</strong> well-segmented tourism <strong>and</strong> hospitality<br />
sector in a post-Covid world is ripe for investment <strong>and</strong> expansion.<br />
<strong>Mpumalanga</strong>’s STRATEGIC LOCATION makes it<br />
a valuable transport <strong>and</strong> logistics hub<br />
<strong>Mpumalanga</strong><br />
UNIQUE SELLING PROPOSITION<br />
• Abundant resources: minerals <strong>and</strong> agricultural produce<br />
• Established manufacturing infrastructure: smelters,<br />
petrochemicals, food processing, paper, sugar<br />
• Strategic location, access to regional <strong>and</strong><br />
global markets<br />
• Tourism hotspots: the iconic Kruger National Park,<br />
world-class reserves, adventure tourism <strong>and</strong> 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 <strong>and</strong> investment<br />
A A province in in eastern<br />
South Africa, bordering<br />
the the nations of Swazil<strong>and</strong><br />
<strong>and</strong> Mozambique<br />
• Maputo Development Corridor enhances logistics<br />
• Preferential access to lucrative EU market<br />
• Proximity to South Africa’s economic heartl<strong>and</strong><br />
• Access to regional SADC market: 360-million population<br />
• Access to deepwater Port of Maputo<br />
Capital Capital City City Main Main major major towns towns<br />
Mbombela<br />
Ermelo<br />
(Nelspruit)<br />
eMalahleni<br />
Population Population Middelburg<br />
4.7-million<br />
4.5-million people<br />
Secunda<br />
Secunda<br />
people<br />
Airport Kruger <strong>Mpumalanga</strong> International Airport<br />
Airport Kruger <strong>Mpumalanga</strong> International Airport<br />
MPUMALANGA’S ECONOMY<br />
The provincial economy of of <strong>Mpumalanga</strong> is is exceptionally diverse.<br />
Established diverse. Established industries industries the province the include province Mining, include Stainless Mining,<br />
Steel, Stainless Petrochemicals, Steel, Petrochemicals, Pulp <strong>and</strong> Paper, Pulp <strong>and</strong> Ferro-Alloys, Paper, Ferro-Alloys, Energy<br />
Energy Generation, Tourism, Agriculture <strong>and</strong> Agro-Processing.<br />
Generation, Tourism, Agriculture <strong>and</strong> Agro-Processing.<br />
Companies in these sectors include global giants in their<br />
industries such as Sasol (energy <strong>and</strong> chemicals), Sappi<br />
(paper, packaging, pulp <strong>and</strong> forests), Samancor Chrome<br />
(ferrochrome), Sibanye-Stillwater <strong>and</strong> Glencore (mining).<br />
AGRICULTURE 3% MINING 20%<br />
AGRICULTURE 3% MINING 20%<br />
COMMUNITY<br />
SERVICE COMMUNITY 19%<br />
SERVICE 19%<br />
FINANCE<br />
FINANCE 14%<br />
14%<br />
TRANSPORT 6%<br />
TRANSPORT 6%<br />
MANUFACTURING<br />
MANUFACTURING 15%<br />
15%<br />
ELECTRICITY 7%<br />
ELECTRICITY 7%<br />
CONSTRUCTION<br />
CONSTRUCTION 2%<br />
2%<br />
TRADE 14%<br />
TRADE 14%<br />
District GVA by by district<br />
38% 39% 34% 28% 27%<br />
Nkangala<br />
Gert<br />
Ehlanzeni<br />
Gert<br />
Sib<strong>and</strong>a Sib<strong>and</strong>a<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 <strong>and</strong> 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 Kruger airports <strong>Mpumalanga</strong> at Hoedspruit International <strong>and</strong> Mbombela Airport (KMIA) (Kruger in <strong>Mpumalanga</strong> Mbombela plus International many airfields Airport,<br />
KMIA) such as plus Middelburg. many airfields. Extensive Extensive freight freight rail network, rail network, busiest busiest in South in South Africa. Africa. N4 highway N4<br />
highway (Maputo (Maputo Corridor) Corridor) is an east-west is an east-west spine of spine a highly of a highly-developed road system. 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 m<strong>and</strong>ate is to foster the sustainable growth <strong>and</strong> development of <strong>Mpumalanga</strong>’s economy through<br />
its operational activities of <strong>Trade</strong> <strong>and</strong> <strong>Investment</strong> Promotion, Development Funding, Equity <strong>Investment</strong>s, <strong>and</strong><br />
Property <strong>and</strong> Infrastructure Development. The Agency remains accountable to the <strong>Mpumalanga</strong> Department of Economic<br />
Development <strong>and</strong> Tourism (DEDT). MEGA is the foreign investor’s or trader’s first point of contact for doing successful<br />
business in <strong>Mpumalanga</strong> Province. Through the <strong>Trade</strong> <strong>and</strong> <strong>Investment</strong> Promotion Division, the Agency provides a variety<br />
of services to potential investors <strong>and</strong> 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 <strong>and</strong> the agro-processing chain<br />
• advancing mineral beneficiation<br />
• implementing the Industrial Policy Action Plan (IPAP) effectively<br />
• unlocking the potential of SMMEs, cooperatives <strong>and</strong> township <strong>and</strong> rural enterprises<br />
• resolving the energy challenge<br />
• stabilising the labour market<br />
• upscaling private investment<br />
• investment in science <strong>and</strong> technology, water <strong>and</strong> sanitation, transport<br />
<strong>and</strong> broadb<strong>and</strong> connectivity<br />
The Maputo Development Corridor is South Africa’s leading<br />
Spatial Development Initiative (SDI), linking <strong>Mpumalanga</strong> Province,<br />
Gauteng Province <strong>and</strong> the Nkomazi Special Economic Zone with<br />
the deepwater Port of Maputo in Mozambique. This efficient<br />
corridor provides investors <strong>and</strong> exporters with good access to the<br />
export markets of South East Africa, the Indian Ocean Rim <strong>and</strong><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 />
<strong>and</strong> provides innovative solutions with a high level of service. Services include:<br />
• Foreign <strong>Trade</strong> Promotion<br />
• <strong>Investment</strong> Promotion<br />
• Funding<br />
• Property Management<br />
<strong>and</strong> Infrastructure<br />
Development<br />
MAPUTO DEVELOPMENT CORRIDOR<br />
Lydenburg<br />
rail, Special Economic Zone, border posts, port <strong>and</strong> terminal<br />
facilities. The corridor runs through the most highly industrialised<br />
<strong>and</strong> productive regions of Southern Africa. The Corridor has been<br />
extensively upgraded to international st<strong>and</strong>ards <strong>and</strong> links the<br />
industrial heartl<strong>and</strong> 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) <strong>and</strong> 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 <strong>and</strong><br />
important agricultural regions <strong>and</strong> plays a key role in the export profile of<br />
South Africa, primarily in fruit <strong>and</strong> 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 <strong>and</strong> Lowveld Regions.<br />
The Highveld Region in the west of the province is at<br />
an elevation of between 4 000 <strong>and</strong> 6 000 feet above<br />
sea level. This allows for the large-scale <strong>and</strong> commercial<br />
production of cereals <strong>and</strong> legumes like maize, soya,<br />
canola <strong>and</strong> 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 <strong>and</strong> nuts.<br />
<strong>Mpumalanga</strong> Province is one of the world’s largest<br />
producers <strong>and</strong> exporters of citrus fruit. Duty-free<br />
exports of South African citrus to the USA under the<br />
African Growth <strong>and</strong> Opportunity Act (AGOA) reached a<br />
value of $122.7-million in 2023 <strong>and</strong> are expected to<br />
continue their strong annual growth as the USA is still<br />
considered a premium market.<br />
REGIONAL PRODUCE<br />
Highveld<br />
Lowveld<br />
HIGHVELD: Summer cereals <strong>and</strong> legumes:<br />
maize, soya, canola, sunflower.<br />
Animal products: bovine meat, swine,<br />
sheep <strong>and</strong> poultry.<br />
LOWVELD: Subtropical <strong>and</strong> citrus fruits,<br />
nuts <strong>and</strong> cane sugar.<br />
<strong>Mpumalanga</strong> Province is the world’s largest<br />
producer <strong>and</strong> exporter of macadamia nuts.<br />
The province earned $232-million in exports in<br />
2023, $32-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 />
<strong>and</strong> 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<br />
<strong>Mpumalanga</strong>’s rural economy <strong>and</strong> a major provider<br />
of job opportunities. About 40% of SA’s sustainable<br />
forests are located in <strong>Mpumalanga</strong> Province.<br />
The industry comprises logging, saw-milling, wood products, wood board, pulp <strong>and</strong> 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 <strong>and</strong> pharmaceutical<br />
industries <strong>and</strong> 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 particle board 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/Komatil<strong>and</strong> is the state forestry<br />
company with commercial <strong>and</strong> non-commercial<br />
operations covering a l<strong>and</strong> area of 187 320ha.<br />
Sonae Arauco is an established investor <strong>and</strong> a<br />
local BEE company, the FX Group, has established<br />
a greenfield particle board plant in Lothair in the<br />
Gert Sib<strong>and</strong>e District.<br />
<strong>Mpumalanga</strong> has<br />
processing<br />
39<br />
out of 148 in South Africa<br />
plants<br />
MAIN EXPORTS<br />
PULP<br />
PAPER<br />
SPECIALISED CELLULOSE<br />
SAWN LUMBER<br />
WOOD CHIPS<br />
WATTLE EXTRACT<br />
MAJOR COMPANIES<br />
SAPPI<br />
SAFCOL<br />
SONAE ARAUCO<br />
PG BISON<br />
YORK TIMBERS<br />
FX GROUP
KEY SECTORS MINING, MINERALS AND ENERGY<br />
Mining is the province’s largest single sector, providing employment to 5.2% of the<br />
province’s workforce <strong>and</strong> making up 20% of gross value added by region (GVA-R).<br />
83%<br />
Other minerals: Gold mining takes place in Ev<strong>and</strong>er, Pilgrim’s Rest <strong>and</strong> Barberton. Gold is the<br />
of South<br />
Africa’s<br />
coal<br />
production<br />
<strong>Mpumalanga</strong> is the third-largest coal-exporting region in the world with 83% of South Africa’s<br />
coal production <strong>and</strong> 50% of national coal reserves. Coal is the lifeblood of the provincial<br />
economy, fuelling 11 Eskom power plants, which produce 80% of South Africa’s electricity.<br />
Coal is <strong>Mpumalanga</strong>’s single largest export product, shipping mainly to India <strong>and</strong> Japan.<br />
second-largest export from the province. Platinum <strong>and</strong> chrome ore mining are located in the Steelpoort<br />
<strong>and</strong> Burgersfort areas in the north of the province <strong>and</strong> make up part of the Bushveld Igneous Complex.<br />
The mining services <strong>and</strong> 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 <strong>and</strong> do the mining while major companies such as DRA, Worley, S<strong>and</strong>vik <strong>and</strong><br />
WBHO will also be involved.<br />
Other companies engaged in expansion of life-of-mine projects are Pan African Resources <strong>and</strong><br />
Ev<strong>and</strong>er (Elikhulu tailings), Exxaro Resources (Leeuwpan) <strong>and</strong> 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%) <strong>and</strong> 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 />
<strong>and</strong> Merafe Resources.<br />
KEY SECTORS GREEN ECONOMY AND JET<br />
<strong>Mpumalanga</strong> has historically been at the heart of<br />
the South African energy <strong>and</strong> industrial complex <strong>and</strong><br />
is still heavily reliant on the mining <strong>and</strong> burning of<br />
fossil fuels.<br />
The <strong>Mpumalanga</strong> Provincial Government has been proactive in exploring opportunities<br />
in the Green Economy <strong>and</strong> pursuing a just transition to a low-carbon economy which<br />
secures the future <strong>and</strong> livelihoods of workers <strong>and</strong> their communities.<br />
• Building technologies: greener <strong>and</strong> more energy-efficient<br />
• Transport <strong>and</strong> logistics: greener <strong>and</strong> more energy-efficient<br />
• Established the <strong>Mpumalanga</strong> Green Energy Cluster Agency<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 />
Achieving such a just transition would require an integration of economic opportunities in sectors outside of energy <strong>and</strong> mining.<br />
A Just Energy Transition (JET) to a Green Economy presents th<br />
following opportunities:<br />
• Renewable energy: solar, biomass, natural products<br />
• Gas <strong>and</strong> associated industries<br />
• Sustainable smart agriculture: environmentally friendly<br />
agriculture <strong>and</strong> agricultural processing<br />
• Circular Green Economy: waste recycling, water reclamation, l<strong>and</strong> rehabilitation<br />
• Soft infrastructure: reskilling <strong>and</strong> institutional capacity-building for a<br />
carbon-neutral future<br />
• Hard infrastructure: investment <strong>and</strong> expertise are needed in urban<br />
planning, water <strong>and</strong> waste management<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 are presented by<br />
repurposing l<strong>and</strong>.<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<br />
for more than 60% of the output of the manufacturing sector, which overall<br />
makes up 15% of gross 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 />
& services<br />
RENEWABLE ENERGY<br />
Solar & biofuel<br />
Biomass<br />
Fuel, petroleum <strong>and</strong> chemical products are manufactured at the Sasol Secunda plant in Secunda, Gert Sib<strong>and</strong>e<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 <strong>and</strong> waxes.<br />
The ferro-alloy <strong>and</strong> 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 <strong>and</strong> consists of manufacturing forestry products<br />
(pulp, paper <strong>and</strong> cellulose), sugar at the Selati RCL Foods plants in Nkomazi <strong>and</strong> processing subtropical fruit<br />
<strong>and</strong> 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 <strong>and</strong> citrus<br />
are processed into juice concentrate or dried for export.<br />
There is a geographical divide in the manufacturing sector. Fuel,<br />
petroleum <strong>and</strong> chemical production occurs in the southern Highveld<br />
Region clustered around Sasol’s plants.<br />
The northern Highveld area, including Middelburg <strong>and</strong> eMalahleni<br />
(Witbank), is home to ferro-alloy, steel <strong>and</strong> 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 <strong>and</strong> commerce.<br />
Called the Highveld Industrial Park, the project promotes a wide<br />
range of manufacturing enterprises.<br />
In the Lowveld, agricultural <strong>and</strong> 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 Tourism Industry in the <strong>Mpumalanga</strong> Province<br />
is one of the most strategic sectors <strong>and</strong> has the<br />
potential to grow the economy <strong>and</strong> contribute to job<br />
creation. The importance of tourism to the economy of<br />
<strong>Mpumalanga</strong> cannot be overstated.<br />
Despite the lacklustre global economic growth <strong>and</strong> the decline in disposable<br />
income, foreign <strong>and</strong> domestic tourists have been steadily visiting <strong>Mpumalanga</strong>’s<br />
shores. Over 1.1-million international tourists visited <strong>Mpumalanga</strong> in 2023 with<br />
international tourists spending R3-billion in the province. The casino industry<br />
2<br />
BILLION<br />
Income from Kruger<br />
National Park<br />
has enjoyed great growth <strong>and</strong> shows signs of further<br />
potential for additional investment. <strong>Mpumalanga</strong><br />
boasts world-class parks <strong>and</strong> reserves, astonishing<br />
botanical gardens, rivers <strong>and</strong> lakes. Safaris are a<br />
major drawcard, <strong>and</strong> the Kruger National Park is the<br />
jewel in South Africa’s tourism crown which brings<br />
in R2-billion annually. Tourism subsectors such as<br />
business travel (including conference facilities),<br />
adventure, heritage <strong>and</strong> cultural tourism all hold huge<br />
growth potential.<br />
1.1<br />
International tourists<br />
in 2023<br />
million
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 <strong>and</strong> a top-quality restaurant.<br />
Feasibility study: completed<br />
Environmental Impact Assessment (EIA): commenced<br />
Model: Joint Venture (JV), Build-Operate-Transfer (BOT)<br />
BLYDE RIVER CANYON<br />
CABLE CAR PROJECT<br />
The Blyde River Canyon is the largest <strong>and</strong> deepest<br />
green canyon in the world <strong>and</strong> 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 />
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 <strong>and</strong> down<br />
through a glass floor.<br />
Feasibility study: completed<br />
EIA: commenced<br />
Investors: secured<br />
Model: JV, BOT<br />
3.6<br />
BILLION<br />
Age of volcanic <strong>and</strong> sedimentary rock<br />
at Barberton Makhonjwa Mountains, a<br />
UNESCO World Heritage Site.<br />
500+<br />
Bird species recorded in the Kruger<br />
National Park, including the Kori Bustard,<br />
Martial Eagle, Southern Ground Hornbill<br />
<strong>and</strong> Lappetfaced Vulture<br />
13<br />
Nature reserves are run by the<br />
<strong>Mpumalanga</strong> Tourism <strong>and</strong> Parks Agency<br />
<strong>and</strong> Kruger National Park is run by<br />
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 <strong>and</strong> important<br />
agriculture regions. It is home to predominantly tropical <strong>and</strong> subtropical<br />
crops <strong>and</strong> vegetables owing to its conducive climate. The tropical <strong>and</strong><br />
subtropical crops consist of avocado, banana, citrus, ginger, granadilla,<br />
guava, litchi, macadamia nut, mango, papaya <strong>and</strong> pineapple.<br />
The vegetables produced include potatoes, tomatoes, pumpkins,<br />
sweet corn, onions, sweet potatoes, beetroot, carrots, green peas,<br />
cauliflower, cabbages <strong>and</strong> green beans.<br />
Site: The site is in Mbombela on a 248ha plot less than 10km<br />
from the Central Business District. It is situated within the Maputo<br />
Development Corridor (MDC), linking <strong>Mpumalanga</strong>, Gauteng Province<br />
<strong>and</strong> 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 <strong>and</strong> international fresh produce markets <strong>and</strong> 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 <strong>and</strong> 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 <strong>and</strong> vegetables<br />
• A meat, fish <strong>and</strong> flower market<br />
• Complementary cold storage, ripening facilities <strong>and</strong> pallet h<strong>and</strong>ling<br />
• Processing facilities<br />
• An export hall<br />
• Bulk-breaking facilities for retail outlets<br />
• Links with statutory organisations such as customs, PPEBC<br />
<strong>and</strong> EuroGap<br />
• Transport <strong>and</strong> logistics enterprises<br />
• Shared collation <strong>and</strong> pack house facilities for SMMEs<br />
• Commercial services including banks <strong>and</strong> 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 />
<strong>and</strong> 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 <strong>and</strong> domestic investments <strong>and</strong> 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 <strong>and</strong> Far East Asia.<br />
The Nkomazi SEZ will target investment from the<br />
agriculture, agro-processing, nutraceuticals <strong>and</strong> fertiliser<br />
production sectors, as having a strong focus on logistics <strong>and</strong><br />
trade services.<br />
The NSEZ offers the investor a unique <strong>and</strong> incentivised<br />
base of operations on the Maputo Development Corridor<br />
running through the most highly industrialised <strong>and</strong><br />
productive regions of Southern Africa.<br />
The Maputo Corridor is bound to develop even more as<br />
the Maputo harbour improves its h<strong>and</strong>ling <strong>and</strong> 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 />
<strong>and</strong> agricultural produce to <strong>and</strong> from the Limpopo <strong>and</strong> <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 <strong>and</strong> transparent market<br />
environment, <strong>and</strong> timeous <strong>and</strong> efficient responses to investors’<br />
market requirements.<br />
Manufacturing<br />
Convenience Retail<br />
Accommodation<br />
Centralised Facilities<br />
Logistics
2023/07/27 15:06<br />
FOREIGN TRADE<br />
<strong>Mpumalanga</strong> is proving to to be be a a key player in in the the local<br />
economy as well as internationally.<br />
TOP 10 EXPORTS 2022 2023<br />
1. Ferro Alloys<br />
R40.6-billion R 35 US$ 1.9 billion<br />
2. Coal<br />
R9.53-billion R 16 US$ 913 million<br />
3. Gold Stainless Steel R7.79-billion R 9.1 US$ 504 million<br />
4. Stainless Platinum Steel R5.18-billion R 6.9 US$ 385 million<br />
5. 5. Platinum Gold<br />
R5.02-billion<br />
R 5.8 billion US$ 322 million<br />
6. 6. Macadamia Nuts Nuts<br />
R4.17-billion<br />
R 4.1 billion US$ 229 million<br />
7.<br />
7.<br />
Chrome<br />
Chrome<br />
Ore<br />
Ore<br />
R3.73-billion<br />
R 2.4 billion US$ 138 million<br />
8.<br />
8.<br />
Manganese<br />
Manganese<br />
R1.97-billion<br />
R 2.3 billion US$ 129 million<br />
9. Fuel Wood<br />
9. Fuel Wood<br />
R1.02-billion<br />
R 1.5 billion US$ 85 million<br />
10. Citrus Fruit 2022/03/23<br />
2022/03/23 R808-million<br />
ZI SEZ<br />
ZI SEZ<br />
10. Citrus Fruit R 576 million US$ 32 million<br />
TOP 10 EXPORT MARKETS 2023<br />
TOP 10 EXPORT MARKETS 2022<br />
1. Mozambique R24.1-billion<br />
1. Mozambique R 21 billion US$ 1.6 billion<br />
2. China R15.5-billion<br />
2. China R 9.5 billion US$ 529 million<br />
3. Japan<br />
R6.5-billion<br />
3. United States R 8.5 billion US$ 471 million<br />
4. United States R5.3-billion<br />
4. Japan R 5.9 billion US$ 331 million<br />
5. Swazil<strong>and</strong><br />
R3.5-billion<br />
5. Korea R 5.5 billion US$ 308 million<br />
6. United Arab Emirates R3.4-billion<br />
6. Netherl<strong>and</strong>s R 5.2 billion US$ 291 million<br />
7. Netherl<strong>and</strong>s<br />
R3.1-billion<br />
7. India R 3.8 billion US$ 210 million<br />
8. India<br />
R2.8-billion<br />
8. eSwatini R 3.2 billion US$ 180 million<br />
9. Republic of Korea R2.5-billion<br />
9. UAE R 3.2 billion US$ 178 million<br />
10. UK R2.1-billion<br />
10. Indonesia R 2.4 billion US$ 135 million<br />
MTIP photo credits. Cover: Top three: Ryan Baker/Pexels; Forestry South Africa; Sasol: bottom four: SA Tourism/Flickr; University of <strong>Mpumalanga</strong>; <strong>Mpumalanga</strong> Tourism<br />
<strong>and</strong> Parks Agency (MTPA); Enza Construction. Body: cutting wood (Ludwig Sevenster); chimney at night (Sasol); tourism opportunities (MTPA); market variety (Jacopo<br />
Maiarelli on Unsplash); furnace (Anglo American); macadamias (SCTIE); timber (Ludwig Sevenster); coal (Thungela Resources); citrus exports (Citrus Growers Association);<br />
truck (Nelson Gono on Unsplash); port (TNPA); fruit pickers (Chris Kirchoff/ Br<strong>and</strong> SA); red peppers (Omotayo Tajudeen on Unsplash). Outside back cover: Sasol.
THE PERFECT LAUNCH PAD FOR AFRICA<br />
The African Continental Free <strong>Trade</strong> Area could revolutionise African trade:<br />
<strong>Mpumalanga</strong> is the perfect launch pad for manufacturers <strong>and</strong> exporters.<br />
CREDIT: TRALAC<br />
The African Continental Free <strong>Trade</strong> Area (AfCFTA) has been agreed<br />
on by almost all African nations <strong>and</strong> holds the potential to change<br />
the nature <strong>and</strong> 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 <strong>and</strong> excellent<br />
logistics <strong>and</strong> 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 <strong>and</strong> with good air, road <strong>and</strong> rail<br />
connectivity will be vital. <strong>Mpumalanga</strong> has all of that, <strong>and</strong> more.<br />
The operational phase of the AfCFTA was launched during the<br />
12th Extraordinary Session of the Assembly of the Union on the<br />
AfCFTA in Niamey, Niger, on 7 July 2019. Start of trading became<br />
officially legal under the AfCFTA Agreement as of 1 January 2021.<br />
On 7 October 2022, the AfCFTA Secretariat launched the<br />
AfCFTA Guided <strong>Trade</strong> Initiative in Accra to allow for commercially<br />
meaningful trade under the agreement to commence for eight<br />
participating countries: Cameroon, Egypt, Ghana, Kenya,<br />
Mauritius, Rw<strong>and</strong>a, Tanzania <strong>and</strong> Tunisia, representing the five<br />
regions of Africa. This initiative was used to pilot the operational,<br />
institutional, legal <strong>and</strong> trade policy environment under the AfCFTA.<br />
As at August 2023, 47 of the 54 signatories (87%) had<br />
deposited their instruments of AfCFTA ratification (ordered by<br />
date): Ghana, Kenya, Rw<strong>and</strong>a, Niger, Chad, Eswatini, Guinea,<br />
Côte d’Ivoire, Mali, Namibia, South Africa, Congo, Djibouti,<br />
Mauritania, Ug<strong>and</strong>a, Senegal, Togo, Egypt, Ethiopia, Gambia,<br />
Sahrawi Arab Democratic Republic, Sierra Leone, Zimbabwe,<br />
Burkina Faso, São Tomé & Príncipe, Equatorial Guinea, Gabon,<br />
Mauritius, Central African Republic, Angola, Lesotho, Tunisia,<br />
Cameroon, Nigeria, Malawi, Zambia, Algeria, Burundi, Seychelles,<br />
Tanzania, Cabo Verde, Democratic Republic of the Congo,<br />
Morocco, Guinea-Bissau, Botswana, Comoros <strong>and</strong> Mozambique.<br />
In January 2023 South African President Cyril<br />
Ramaphosa officiated over the first official trade shipment<br />
under the agreement, out of the Port of Durban.
AfCFTA FAST FACTS<br />
Africa’s exports could increase by $560-billion <strong>and</strong> some<br />
experts predict that continental business <strong>and</strong> 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
TRADE & INVESTMENT<br />
• FACILITATING INTERNATIONAL TRADE<br />
• PROMOTING FOREIGN INVESTMENT<br />
• EMPOWERING BUSINESS SUCCESS<br />
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