KEY SECTORS AGRICULTURE
KEY SECTORS AGRICULTURE Agriculture in Mpumalanga is responsible for 3% of the province’s gross value added by region (GVA-R) and can be divided into the following categories (see map, right). AGRICULTURE SUMMER CEREALS & LEGUMES MAIZE Maize meal SOYA Meal, Edible oil CANOLA Edible oil SUNFLOWER Edible oil TROPICAL & SUBTROPICAL FRUIT CANE SUGAR Sugar / confectionery CITRUS Juice & concentrate MANGOES Dried, frozen, juice & concentrates LITCHIS Dried, frozen, juice & concentrates AVOCADOES Avocado oil GUAVA Dried, frozen, juice & concentrates MACADAMIA NUTS Processed & confectionery Mpumalanga Province is one of South Africa’s most productive and important agricultural regions and plays a key role in the export profile of South Africa, primarily in fruit and nuts. The province’s economic diversity extends into the agriculture sector where the natural topography of the province divides this sector between the Highveld and Lowveld Regions. The Highveld Region in the west of the province is at an elevation of between 4 000 and 6 000 feet above sea level. This allows for the large-scale and commercial production of cereals and legumes like maize, soya, canola and sunflower. The subtropical region of the Mpumalanga Lowveld plays a key role in the agricultural export profile of the province, primarily in fruit and nuts. Mpumalanga Province is one of the world largest producers and exporters of citrus fruit. Duty-free exports of South African citrus to the USA under the African Growth and Opportunity Act (AGOA) reached a peak of 91 000 tons in 2020 (.9-million) and are expected to continue their strong annual growth as the USA is still considered a premium market. REGIONAL PRODUCE Highveld Lowveld HIGHVELD: Summer cereals and legumes: maize, soya, canola, sunflower. Animal products: bovine meat, swine, sheep and poultry. LOWVELD: Subtropical and citrus fruits, nuts and cane sugar. Mpumalanga Province is the world’s largest producer and exporter of macadamia nuts. The province earned 7-million in exports in 2019, -million of this to the US. There have been major new investments in processing facilities in Mpumalanga. Mpumalanga’s rich agricultural produce is utilised by companies such as McCain, Nestlé and PepsiCo. 9:1 Mpumalanga’s ratio of commercial farmers to small-scale farmers KEY SECTORS FORESTRY Forestry is a key driver for the development of Mpumalanga’s rural economy and a major provider of job opportunities. About 40% of SA’s sustainable forests are located in Mpumalanga Province. The industry comprises logging, saw-milling, wood products, wood board, pulp and paper as well as specialised cellulose. Specialised cellulose is a sought-after natural, renewable fibre with a wide range of uses in the textile, consumer goods, foodstuff and pharmaceutical industries and is produced in large quantities at Sappi Ngodwana. R9.5 billion Amount invested in the foresty industry PG Bison has recently invested R560-million in a new front-end dryer for its particleboard plant in Mkhondo (Piet Retief). The company is also building a new medium-density fibreboard (MDF) plant at its Mpumalanga plant. SAFCOL/Komatiland is the state forestry company with commercial and non-commercial operations covering a land area of 187 320ha. Sonae Arauco is a Portuguese investment. A new entrant, local BEE company the FX Group, is commissioning a greenfield particle board plant in Lothair in the Gert Sibande District. Mpumalanga has processing 39 out of 148 in South Africa plants MAIN EXPORTS PULP PAPER SPECIALISED CELLULOSE SAWN LUMBER WOOD CHIPS WATTLE EXTRACT MAJOR COMPANIES SAPPI SAFCOL SONAE ARAUCO PG BISON YORK TIMBERS FX GROUP
KEY SECTORS MINING, MINERALS AND ENERGY Mining is the province’s largest single sector, providing employment to 5.2% of the province’s workforce and making up 20% of gross value added by region (GVA-R). 83% of South Africa’s coal production Coal: 83% of South Africa’s coal production, 50% of national coal reserves, third-largest coal-exporting region in the world. Coal is the lifeblood of provincial economy, fuelling 11 Eskom power plants, which produce 80% of South Africa’s electricity. Coal is Mpumalanga’s single largest export product, shipping mainly to India and Pakistan. Other minerals: Gold mining takes place in Evander, Pilgrim’s Rest and Barberton. Gold is the second-largest export from the province. Platinum and chrome ore mining are located in the Steelpoort and Burgersfort areas in the north of the province and make up part of the Bushveld Igneous Complex. The mining services and technology industry is an important subsector in Mpumalanga. With over a century of commercial mining operations in the province, homegrown technologies are now exported around the globe. National utility Eskom will spend R3.3-billion on the revival of the Matla coal mine. Exxaro Resources will manage the project and do the mining while major companies such as DRA, Worley, Sandvik and WBHO will also be involved. Other companies engaged in expansion of life-of-mine projects are Pan African Resources and Evander (Elikhulu tailings), Exxaro Resources (Leeuwpan) and South32, which is spending about R4.3-billion at Klipspruit. Platinum is an important mineral for the modern economy. Two Rivers is a joint venture between Implats (46%) and African Rainbow Minerals which is located on the southern part of the eastern limb of the Bushveld Igneous Complex, 35km south-west of Burgersfort in Mpumalanga. Lydenburg is home to the Lion ferrochrome smelter that is a joint venture between Glencore and Merafe Resources. KEY SECTORS GREEN ECONOMY AND JET Mpumalanga has historically been at the heart of the South African energy and industrial complex and is still heavily reliant on the mining and burning of fossil fuels. The Mpumalanga Provincial Government has been proactive in exploring opportunities in the Green Economy and pursuing a just transition to a low-carbon economy which secures the future and livelihoods of workers and their communities. Achieving such a just transition would require an integration of economic opportunities in sectors outside of energy and mining. A Just Energy Transition (JET) to a Green Economy presents the following opportunities: • Renewable energy: solar, biomass, natural products • Gas and associated industries • Sustainable smart agriculture: environmentally-friendly agriculture and agricultural processing • Circular Green Economy: waste recycling, water reclamation, land rehabilitation • Soft infrastructure: reskilling and institutional capacity-building for a carbon-neutral future • Hard infrastructure: investment and expertise are needed in urban planning, water and waste management • Building technologies: greener and more energy-efficient • Transport and logistics: greener and more energy-efficient Mpumalanga has 11 MINERALS COAL Waste briquettes GOLD JEWELLERY CHROME PLATINUM IRON ORE VANADIUM MANGANESE GRANITE Building cladding & tombstone CLAY Porcelain & ceramics Electrical insulators 50% of South Africa’s national coal reserves ESKOM POWER plants Specific opportunities include: •There are plans for the decommissioning of 11 000MW of Eskom’s coal-fired capacity by 2030. Opportunities are presented by repurposing land. • The vast new fields of natural gas found off the coast of Mozambique could have a big impact on the Mpumalanga economy. • A Renewable Energy Development Zone (REDZ) is planned for eMalahleni / Witbank where coal jobs are at risk.
