Mpumalanga Business 2018-19 edition

SPECIAL FEATURE of

SPECIAL FEATURE of millions on upgrades and improvements at its Secunda complex. The Sasol Synfuels refinery is the only commercial coal-to-liquid fuel plant in the world and constitutes a key component in South Africa’s oil and gas sector. In July 2017 Sasol announced that the synfuel plant produced a record annual output. Sasol Mining is also very active in the province: just three projects with which it is currently engaged are valued at more than R8-billion. Exxaro Resources is investing R3.8-billion in a new mine at Belfast. Another global giant, Sappi, has invested heavily in the conversion of its massive Ngodwana Mill and other companies in the paper and forestry field such as Mondi and York Timbers make large contributions to the province’s economic growth. The restarting of the Evraz Highveld steel mill in 2017 was particularly good news, after the company went into business rescue two years before. ArcelorMittal South Africa is supplying feedstock to the mill and has an option to purchase. However, operations will be reduced significantly, whatever option is pursued. This has opened up an opportunity on the property on which the steel mill operated. It has been rebranded the Highveld Industrial Park and is inviting manufacturers, distributors and commercial enterprises to set up shop in a well-resourced area with excellent infrastructure and logistics links. The Provincial Government of Mpumalanga has been talking to several foreign countries about investments in the province. An assembly plant for Columbus Stainless runs the only stainless-steel mill in Africa. Minsk Tractor Works is one of the outcomes of this activity, and several agreements relating to training and trading have been signed. Russia, Belarus, China and Oman are some of the countries that Mpumalanga is engaged with. Overseeing infrastructure development in the province is the responsibility of the Department of Public Works Roads and Transport, which must ensure that various departments’ projects are coordinated. When it comes to major projects, a new unit will be established in the Office of the Premier, the Provincial Project Management Unit. A large investment is being made on the railways that run to and through Mpumalanga. This includes upgrading the commuter railway linkages to the province from the province of neighbouring Gauteng and building new railway lines to transport coal through Swaziland and on to either Richards Bay or Maputo in Mozambique. Information and Communications Technology (ICT) is another form of infrastructure that has been receiving investment in recent times. A provincial ICT Strategy has been developed to coordinate and implement steps to improve ICT performance in the province. Geography The Drakensberg escarpment sharply divides the western grasslands at high altitude (Highveld) and the subtropical component to the east, the Lowveld. The central region of the province is mountainous, with dramatic landscapes presenting exciting vistas for visitors. The Lebombo Mountains rise in the east. The southern and northern Highveld regions produce large quantities of field crops such as barley, soybeans, maize, grain and sorghum. Potatoes also flourish in this area. Most of the province receives summer rainfall, often via thunderstorms. Frost is common on the Highveld but is almost absent in the subtropical regions where fruit, nuts and citrus thrive. Differences in temperature and rainfall between the Highveld and Lowveld can be considerable. One of the fastest growing agricultural sectors is macadamia nuts. These are cultivated in the Lowveld and are exported in ever- MPUMALANGA BUSINESS 2018/19 10

SPECIAL FEATURE growing volumes. The Nelspruit district in the Lowveld is South Africa’s second-biggest producer of citrus fruit. The Graskop Gorge Lift Company has built a dramatic way to view the “Edge of the Lowveld” (pictured). Large parts of the province are in the so-called Middleveld comprising high-plateau grasslands. Forestry operations are found in central and southeastern Mpumalanga, but the heart of this important industry is around Sabie in the east. The Mpumalanga forestry sector is one of the most important in the country: 11% of the total land area of Mpumalanga is covered either by plantations or natural forests. Large sugar operations are found in the south-east of the province. The province has excellent roads and railway connections and is well served by airports, airstrips and heliports. The Kruger Mpumalanga International Airport and Hoedspruit Airport are the province’s two main airports. The Maputo Development Corridor is a transportation corridor comprising road, rail, border posts, port and terminal facilities, running from Pretoria in Gauteng through Mpumalanga to the Port of Maputo in Mozambique. The corridor supports high volumes of cross-border freight services. Industry and tourism benefit from the concentration of resources and ease of transportation. This international initiative emphasises Mpumalanga’s excellent location as a logistics and transport hub. 11 MPUMALANGA BUSINESS 2018/19