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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 />

+27 13 492 5818

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