South African Business 2016 edition

The powerhouse of Africa

The powerhouse of Africa Mpumalanga offers a strategic location in the world market, along with modern infrastructure, sophisticated fi nancial markets and cutting-edge technology. The diverse, cost-effi cient mineral and agro-industry inputs, world-class telecommunications and information industry, rapid liberalization of trade and investment market and a government commitment to investment facilitation all combine to create an unparalleled quality of life in the Province. The South African Province of Mpumalanga’s diverse and resource-rich economy, coupled with its people’s indomitable spirit, makes it one of the most attractive Trade and Investment destinations in South-East Africa. Good access to East African and Indian Ocean Rim Markets Preferential access to the lucrative EU market Part of SADC – 280- million consumers Located next to Port of Maputo More than 80% of South Africa’s coal is sourced in Mpumalanga. Mpumalanga AN IDEAL POSITION Situated in the north-east of South Africa, Mpumalanga province shares a common border with the independent Republics of Mozambique and Swaziland and has a population of 4.1-million people and a total area of 83 000km 2 . In addition to its capital, Mbombela, the Province has a number of major cities including eMalahleni, Middleburg and Secunda which host some of the major industrial complexes of South Africa. The Gross Geographic Product (GGP) of the Mpumalanga Province is US-billion (2013). Mpumalanga’s position and resources make it a valuable transport and logistics hub The province’s three biggest sectors are manufacturing, mining and agriculture. COMMUNITY SERVICE 16% MINING 25% MPUMALANGA’S ECONOMIC DIVERSITY The economic diversity of Mpumalanga is supported by world-class infrastructure, which makes the Province a unique investment destination in South East Africa. Mpumalanga shares a border with 4 provinces and 2 independent countries TRADE 15% UTILITIES 5% CONSTRUCTION 3% AGRICULTURE 3% MANUFACTURING 13% FINANCE 12% TRANSPORT 6% 19 000 000 19m tons of cargo per year moves through the Maputo Corridor. . 0-rated Bulk cargo & transhipments are now zerorated in Mozambique. R4.9-billion The value of investment in Port of Maputo (160 SMMEs employed). . 2027 The year the investment contract in Maputo port is up for renewal. 11% Maputo Corridor truck traffi c increases at an annual rate of 10-11%. 90 000pa Number of trucks that cross the Lebombo border into Mozambique.

Economic diversity: Investment opportunities The Provincial economy of Mpumalanga is exceptionally diverse. Established industries in the Province include Mining, Stainless Steel, Petro-Chemicals, Pulp and Paper, Ferro-Alloys, Tourism and Agro-Processing, amongst others. A wide range of raw materials and feedstocks are available for benefi ciation. • Mpumalanga Province was the one of the main contributors to the national economy in 2014, together with Gauteng (34.6%), KwaZulu-Natal (15.9%) and the Western Cape (13.7%). • The major components of the economy are mining, manufacturing, agriculture (which includes forestry and fishing operations) and tourism (part of which is included in the trade sector). • A significant contributor to the economy is the power-generation industry that operates within the utilities sector and accounts for some 96% of the sector. Mpumalanga is the third-largest coal-exporting region in the world INVESTMENT OPPORTUNITIES SECTORS, INDUSTRIES AND PRODUCTS THAT CAN BE BENEFICIATED MANUFACTURING STAINLESS STEEL Cutlery Catering Equipments Surgical instruments Automotive components STEEL White & grey goods Pipes & tubes Wire PETRO-CHEMICALS Plastic products Recycling plastics Artifi cial rubber products Paint & vanish Inks & dyes FOOD PROCESSING Maize meal Machinery Frozen & dehydrated vegetables Preserves pickles & condiments Nuts PAPER Recycling SUGAR Confectionery MINING Machinery and services RENEWABLE ENERGY Solar and bio-fuel Biomass MINING COAL Waste briquettes GOLD JEWELLERY CHROME PLATINUM IRON ORE VANADIUM MANGANESE GRANITE Building cladding & tombstone CLAY Porcelain & ceramics Electrical insulators FORESTRY Beneficiation of timber products Builders hardware Furniture TOURISM Tourism infrastructure various grades of accommodation Infrastructure, hotels & lodges AGRICULTURE SUMMER CEREALS & LEGUMES MAIZE Maize meal SOYA Meal, Edible oil CANOLA Edible oil SUN FLOWER 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