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Mpumalanga Business 2022-23

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The 2022/23 edition of Mpumalanga Business is the 13th issue of this successful publication that since its launch in 2008 has established itself as the premier business and investment guide for the province. With messages of welcome to potential investors from both the provincial premier and the MEC responsible for Economic Development and Tourism, 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 education and a series of brief news briefs about some of the most important sectors in the provincial economy.

SECTOR NEWS Water The

SECTOR NEWS Water The Loskop Bulk Water Project is to be accelerated. Loskop Dam. Credit: Middelburginfo More than 13 000 households in two water-scarce local municipalities in Mpumalanga will soon start receiving improved water services. The provincial government is working together with the National Department of Water and Sanitation (DWS) to accelerate the implementation of the Loskop Bulk Water Project. Work to be undertaken includes construction of abstraction works at the Loskop Dam, a treatment module, a 40km bulk pipeline, four booster pump stations and a storage reservoir. Among other projects that were undertaken in 2021, water supply and sanitation at 176 schools was upgraded. The installation of bulk services at Siyathuthuka Ext 12 has been prioritised. The Regional Bulk Infrastructure Grant is being used to fix the Embalenhle Bulk Sewer Line. The grant will be used to supply the treatment plant at Weltevreden and to accelerate the link from the Loskop Dam to the communities living in the Thembisile Hani Local Municipality. Progress towards the selection of a site for a City of Mbombela Dam is being made. In response to the Covid-19 crisis, the National Department of Water and Sanitation delivered 500 water tanks and 56 water trucks to several Mpumalanga municipalities. The Operations and Maintenance Division of Nafasi Water is responsible for large water treatments plants at Middelburg and eMalahleni. Nafasi is a rebranding of Aveng Water which was purchased by Infinity Partners for R95-million in 2019. The Middelburg Water Reclamation Plant (MWRP) produces no brine and avoids energy-intensive methods, a world-first for a mine water treatment plant. Phase 2 of the eMalahleni project produces ONLINE RESOURCES Inkomati-Usuthu Catchment Management Agency: www.iucma.co.za Komati Basin Water Authority: www.kobwa.co.za National Department of Water and Sanitation: www.dwa.gov.za SECTOR INSIGHT Water supply and sanitation at 176 schools was upgraded in 2021. drinking water after treating mine water from one of the collieries of Anglo American Thermal Coal. Acting on a disturbing report published by the Centre for Environmental Rights on the way some mining companies are using water, a provincial Environmental Management Committee has been appointed to conduct environmental impact analysis and assess climate change threats. NuWater was contracted to reduce waste at the water treatment plant for eMalahleni Municipality. An ultra-filtration technology was used to reduce waste from 20Ml/day. A joint project with Eskom related to rain-water harvesting will also create jobs. The Siyasebenza Job Creation Initiative is intended to create 900 jobs in the Nkangala District Municipality. The Imkomati-Usuthu Catchment Management Agency covers Mpumalanga, parts of Limpopo and part of the Kingdom of Swaziland and is responsible for water usage issues relating to the following river catchment areas: Sabie-Sand, Crocodile, Komati, Nwaswitsontso and Nwanedzi. The Komati Basin Water Authority (KOBWA) is an important agency in controlling water resources in the region. Formed out of a cooperation agreement between South African and Swaziland, the agency has built two large dams and is responsible for their upkeep. ■ MPUMALANGA BUSINESS 2022/23 48

Manufacturing Enaex has teamed up with Sasol. Enaex Africa, the new joint venture comprising Enaex and what used to be Sasol Explosives, will spend R16-million on a facility to assemble detonators in Secunda. The facility is intended to produce 800 000 detonators per annum. Enaex, a subsidiary of the Sigdo Koppers Group, is the controlling partner in the JV. A key objective of the provincial government’s Mpumalanga Economic Growth and Development Path (MEGDP) is to expand the industrial base of the provincial economy. To do this, policymakers are focusing on beneficiation, agro-processing and value chain development. From steel to chemicals, petroleum and stainless steel to paper and fruit juice, Mpumalanga makes a wide variety of products. There is a distinct geographical divide. Fuel, petroleum and chemical production occurs in the southern Highveld region clustered around Sasol’s plants. The Sasol chemicals and liquid fluids complex at Secunda is a vital component of Mpumalanga’s manufacturing sector. The northern Highveld area, including Middelburg and eMalahleni (Witbank), is home to ferro-alloy, steel and stainless-steel concerns. In the Lowveld, agricultural and forestry products are processed while Sappi’s giant mill is close to the company’s forests south-west of the provincial capital, Mbombela. PG Bison is in the process of spending more than R2-billion on increasing capacity at its Mkhondo plant. TSB Sugar runs two large mills and produces fruit juices through a subsidiary company. Nelspruit is the centre of the province’s foodprocessing cluster. Approximately 70% of jobs in the manufacturing sector are in food and forestry. Steelmaking is a key strategic industry for South Africa, representing 1.5% of the country’s GDP and accounting for about 190 000 jobs. According to the South African Iron and Steel Institute (SAISI), the South African steel industry value chain multiplies the value of local iron ore by a factor of four. The country produces about sixmillion tons annually, but costs are high and domestic demand is low. Middelburg-based Columbus Stainless is South Africa’s only producer of stainless-steel products. A significant portion of ONLINE RESOURCES Highveld Industrial Park: www.highveldindustrialpark.co.za Mpumalanga Economic Growth Agency: www.mega.gov.za South African Iron and Steel Institute: www.saisi.co.za SECTOR INSIGHT SECTOR NEWS Secunda is the site of a new assembly plant for detonators. A new joint venture will assemble detonators in Secunda. Credit: Enaex sales are domestic and export volumes are flexible, depending on local demand. A first national Furniture Sector Forum has been held, where government incentives and ideas about how to reduce the cost of expensive machinery through coownership and partnerships were shared. The forum was co-hosted by the South African Furniture Initiative (SAFI), Proudly South African, PG Bison and the Department of Trade, Industry and Competition (dtic). The dtic’s Agro Processing Support Scheme (APSS) includes furniture manufacture as a core sector for future growth and support. Average employment per manufacturer is 13 people per facility. Furntech White River is a part of the Seda Technology Programme of the Small Enterprise Development Agency (Seda). ■ 49 MPUMALANGA BUSINESS 2022/23

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