Mpumalanga Business 2013/14
The officially endorsed premier guide to business and investment in Mpumalanga province.
mpumalanga business the guide to business and investment in mpumalanga 2013/14 join us online www.mpumalangabusiness.co.za | www.frontiermarketnetwork.com Ehlanzeni FET College Transnet Engineering New name builds on established track record Transnet Rail Engineering has changed its name to Transnet Engineering to better reflect the increased scope of its activities. Previously a division that focused on engineering and maintenance work relating to rail transport, the organisation is now equipped to also handle the assembly and maintenance of ports equipment following the expansion of the divisionâ€™s businesses. Transnet Engineering currently has nine businesses. The future of Transnet Engineering is built on its proud history of servicing the engineering needs of the transport industry both within and beyond the borders of South Africa. www.transnet.net Coach Business Locomotive Business Wagons Business Wheels Business Ports Business Rolling Stock Business Rotating Machines Business Foundry Business Auxiliary Business contents contents Mpumalanga Business 2013/14 Edition page 38 Introduction Foreword9 Mpumalanga Business is a unique guide to business, investment and tourism in the province. A message from the Premier Premier David Mabuza highlights the key focus areas in Mpumalanga for the coming year. 10 Special features Regional overview of Mpumalanga Province Mpumalanga is reaching out to international investors. Sappi invests big in Mpumalanga manufacturing A specialised cellulose project aims to boost the global giantâ€™s market share. Exports drive growth The Port of Maputo is expanding rapidly. The Maputo Development Corridor The corridor runs through the most highly industrialised and productive regions of Southern Africa. Overview of the South African economy Key facts and figures on South Africaâ€™s demographics, economy, trade and investment. 14 22 26 30 32 Destination Mpumalanga Tourism38 Mpumalanga has impressive tourist destinations. mpumalanga Business 2013/14 2 South Africa is one of the world leaders in the production of Macadamia nuts. For high-quality South African macadamia nuts the following SAMAC processors can be contacted: Zetmac: Tel: +27 15 556 7700 firstname.lastname@example.org. Nutpro: Tel: +27 83 449 1743 email@example.com Emvest: Tel: +27 13 733 3030 firstname.lastname@example.org Tzamac: Tel: +27 15 307 6607 email@example.com. Ivory Macs: Tel: +27 13 710 0165 firstname.lastname@example.org Golden Macadamias: Tel: +27 13 733 5034 www.goldenmacadamias.com Mayo Macs Macadamias: Tel: +27 13 733 4600 email@example.com contents page 54 Economic sectors Agriculture and agri-processing Macadamia nuts are proving an excellent crop for export. 44 Sugar50 Small-scale farmers are delivering more sugar cane for production. Forestry and paper Extensive forestry plantations supply a sophisticated sector. Oil and gas Sasolâ€™s Secunda complex is an important national asset. 52 54 Mining57 Coal and gold miners are investing in Mpumalanga. Chemicals Investment in chemical-creating capacity is increasing. 62 Manufacturing63 Mpumalanga has a diverse manufacturing sector. Steel66 Mpumalanga steel is famous. page 63 Engineering71 There is a strong demand for engineers in the energy, chemical and mining sectors. Transport The Mpumalanga coal-haulage network is expanding. 74 mpumalanga Business 2013/14 4 contents page 78 Construction and property Hospitals and shopping malls are going up in Mpumalanga. 78 Energy82 New plants are adding power to Mpumalanga. Water84 Water provision to municipalities is being prioritised. Banking and financial services New approaches are making housing affordable. Development finance and SMME support Depressed rural areas are the focus of many small business initiatives. Education and training Several new institutions are adding to educational options for young people in Mpumalanga. 94 98 102 Government South African National Government An overview of South Africaâ€™s national government departments. Mpumalanga Provincial Government A guide to Mpumalanga Provinceâ€™s government departments and MECs. Mpumalanga Local Government A guide to metropolitan, district and local municipalities in the Mpumalanga Province. 112 118 126 References Sector contents 42 Index 128 Maps Mpumalanga locator map 18 Mpumalanga regional map 19 Mpumalanga municipalities127 mpumalanga Business 2013/14 6 All business, all the time Having spared no effort or expense in creating SAâ€™s most reliable business network, we strive for 99.999% uptime and guarantee back-up and availability of your business data. Whatever the size of your business, switch to Vodacom and rest assured that your connection and data will always be ready to work wherever you are and whenever you are there. Dial 082 1930 to speak to one of our consultants AMBROS/D35264/MC vodacom.co.za/business credits Production Publisher Chris Whales Editor Katie Reynolds Researcher and writer John Young Creative director Ian Jamieson DTP operator Colin Carter Production assistant Anjé Robberts Advertising Sales director Mark Leven-Marcon Regional sales manager Veronica Dean-Boschoff Key accounts representatives Christoff Scholtz, Dennis Motingwe, Jeremy Petersen, Debbie Bender-Overmeyer, Rashaad Essop and Shiko Diala Sales support Nadia Dicks Administration Managing director Clive During Financial controller Brett Watson Administration and accounts Charlene Steynberg, Natalie Koopman Distribution Lizé Fourie Printing CTP Distribution Mpumalanga Business is distributed internationally on outgoing and incoming trade missions, through the Mpumalanga Economic Growth Agency (MEGA); to 115 foreign offices in South Africa’s main trading partners around the world; at top national and international events; through the offices of foreign representatives in South Africa; as well as nationally and regionally via chambers of commerce, tourism offices, trade and investment agencies, provincial government departments, municipalities, companies, major stores and business-class lounges. Member of the Audit Bureau of Circulations Published by Global Africa Network (Pty) Ltd Company Registration No: 2004/004982/07 Directors: Clive During, Chris Whales, Richard Pembroke Physical address: 3rd Floor, Sunclare Building, 21 Dreyer Street, Claremont 7700, Cape Town, South Africa. Postal address: PO Box 44573, Claremont 7735, South Africa Tel: +27 21 657 6200 | Fax: +27 21 674 6943 | Email: firstname.lastname@example.org | Website: www.gan.co.za Copyright: Mpumalanga Business is an independent publication published by Global Africa Network (Pty) Ltd. Full copyright to the publication vests with Global Africa Network (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network (Pty) Ltd. Disclaimer: While the publisher, Global Africa Network (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in Mpumalanga Business is accurate and up-to-date, the publishers make no representations as to the accuracy, quality, timeliness, or completeness of the information. Global Africa Network will not accept responsibility for any loss or damage suffered as a result of the use of or any reliance placed on such information. Photo credits: Anglo American, Philip Mostert, Middleburg Mall, South African Tourism, Sasol, Geoff Brown of Planet KB, South African Wildlife College, Transnet Rail Engineering, Railways Africa, Cover photographs: (safari vehicle) Corbis, (tea plantation, steel rolls) Veer, (mangos) iStockPhoto, (lion) Dreamstime, (Sasol Secunda) Petrus Saayman. mpumalanga Business 2013/14 8 Foreword highlights mpumalanga Business page 22 A unique guide to business, investment and tourism in Mpumalanga. Sappi’s specialised cellulose project aims to boost the company’s market share. M page 26 Mpumalanga’s expor t regime is growing, thanks to a number of new initiatives and developments. page 30 The Maputo Development Corridor is taking the region’s transport infrastructure to a new level. page 38 Mpumalanga boasts some of the country’s most famous natural assets. pumalanga Business 2013/14 is the sixth edition of this highly successful publication that has since its launch in 2008 established itself as the premier business and investment guide to Mpumalanga Province. Endorsed and utilised by the Mpumalanga Economic Growth Agency (MEGA), Mpumalanga Business is unique as a business journal that focuses exclusively on Mpumalanga and that also carries full Audit Bureau of Circulations (ABC) certification, meaning its print run and circulation of 15 000 copies is independently audited and verified. A range of complementary online features have also been introduced to give participants in and readers of the journal a wider range of communication options. These include the website www. mpumalangabusiness.co.za, the Mpumalanga Business e-book and a live feed with up-to-date news and announcements. Global Africa Network (www.gan.co.za), the publisher of Mpumalanga Business, specialises in business-to-business print and electronic publications, producing a series of region-specific annual print journals. Every province in South Africa is now covered by this unique range of journals and websites, complemented by a national title, South African Business. In 2012, the online platform Frontier Market Network (www.frontiermarketnetwork.com) was launched – a business network for fast-growing ‘frontier’ markets. Global Africa Network thanks the dedicated sales team and the professional and committed writers, editors and designers who produced this edition of Mpumalanga Business. We thank the Office of the Premier, the Mpumalanga Provincial Government, MEGA and the companies and other organisations that supported this undertaking. Chris Whales Publisher, Global Africa Network Email: email@example.com www.mpumalangabusiness.co.za www.gan.co.za 9 mpumalanga Business 2013/14 message A message from the Premier Premier David Mabuza highlights the key focus areas in Mpumalanga for the coming year. tion of our resources to deliver structure to improve the lives of quality healthcare to the citizens Mpumalanga citizens. We would of the province. We are doing like support with technical exthis to ensure that our health- pertise and financial resources care system is able deliver qual- to complete all these projects ity healthcare to all, including the within a short space of time. poor and vulnerable sectors of our society. We will continue to increase preventive and promotive healthcare for school-going children in 50% of the quintile 1 and 2 Crime schools, through the Integrated The fight against crime and corSchool Health Programme. ruption remains a priority in the Health workers will visit schools work of government. In 2013/14 financial year, we to screen the learners for health conditions that pose barriers have decided on the following to learning. set of priorities: As part of this campaign, • Reducing contact crime by 4-7%, with major focus on Maternity Waiting Homes will be all hotspots in the province established in all district hospitals to close the gap of delays in • Expanding the integrated accessing maternity care during social crime prevention emergencies. initiatives on rural safety, We would like to call on all vulnerable groups, victimfamilies and communities to friendly facilities, school support the welfare of women safety and contact crime • Strengthening community and children. and institutional structures, The shortage of health professionals in critical areas of including mobilisation hospital operations continues to campaigns constrain the ability of our hospi- • Roll out a ‘365 days of No tals to deliver quality healthcare. Violence against Women I would like to call on all our and Children’ programme partners in the private sector to support government in the Corruption delivery of these infrastructure The ANC-led government conprojects so that we are able tinues to intensify its fight against to deliver quality health infra- fraud and corruption on all fronts. Fighting against crime and corruption A s people of this country, under the leadership of the ruling party, we entered into a social contract wherein we committed ourselves to walk together to our destiny. The province has committed to making great strides in the following areas: Improving the health profile We are investing a large propormpumalanga Business 2013/14 10 message According to the results of the houses at Klarinet in eMalahleni study conducted by the Public Local Municipality, including the Service Commission released provision of the bulk services. in August 2012, Mpumalanga Through our partnership with registered the highest success Absa we have managed to serate in terms of investigation and cure and transfer 80 bonded houses as part of the GAP closing of the reported cases. The provincial government, market. Through the Premier’s working in partnership with Special Housing Initiative, in law-enforcement agencies, partnership with the private responds to cases mostly sector, 147 houses were built for reported to the Presidential families living in abject poverty. Hotline and the Public Service Commission Anti-Fraud and Corruption Hotline. On average, we are handling approximately 20 cases per month. In the 2012/13 financial year Access to basic service by all alone, approximately 334 of- our people is of paramount ficials were charged for doing importance because we are a business with the provincial caring government. The 2011 government and municipalities. census indicates that, out of the 1 075 487 households, 87.4% have access to water, 61.3% to sanitation, 88.3% to electricity, and 44.3% have their refuse removed. Integrated human settlements For the upcoming financial embody our national vision of year, we have prioritised: promoting non-racialism and • To ensure that all our people have access to water prosperous communities. On services by the end of a number of targets that we 2013/14 financial year. have set for ourselves, we are saddened to report that we • To eradicate sanitation backlogs in all formal setare lagging behind. Fortunately, tlements and deal with the we have already started to state of all over-capitated address some of the weaknesses that were revealed by waste-water treatment our assessment report. This works. includes, among other things, • To accelerate refuse removal through the municipal strengthening the leadership of public works programme. the department, tightening administrative systems and pro- • To intensify the clean towns, cesses, particularly in the supplychain area. read more Despite these challenges, we have managed to build 1 027 Visit: www.mpumalanga.gov.za townships and villages programme. To extend electrification to the remaining households through partnership with the Department of Energy. • State of local government in the province As the provincial government, we have an obligation, through intergovernmental relations, to support this sphere of government so that the delivery of service to our people is efficient and effective. The majority of our municipalities are not healthy despite our support in relation to the implementation of the Turnaround Strategy. Our municipalities continue to struggle on the issues of planning, delivery of basic services, financial viability, leadership and management, and public participation. In our recent assessment of our municipalities, we have agreed, as a collective, to work even harder in our quest to turn local government around and change people’s experiences of services and governance. In conclusion, I wish to invite all the people of this province, young and old, black and white, affluent and poor, to walk with us, as the ruling party, in this difficult journey. Expanding access to basic services Integrated human settlements 11 mpumalanga Business 2013/14 focus Bridging the skills gap Ehlanzeni FET College offers programmes that specifically address the skills shortage in Mpumalanga and the country as a whole. Overview Ehlanzeni FET College is a government institution with six campuses. These campuses include Mapulaneng, Mthimba, Mlumati, Barberton, KaNyamazane and the former Nelspruit campus. Mthimba Campus specialises in primary agriculture with a total enrolment of about 350 students. The college offers National Certificate Vocational (NCV) level 2 â€“ 4 qualifications in fields such as: Primary Agriculture, Management, Tourism, Engineering and Related Designs, Electrical Infrastructure Construction, Hospitality, Civil Engineering, Office Administration Practice, and Information Communication Technology. The college is in partnership with the Department of Public Works, Roads and Transport to train Mpumalanga youth in the National Youth Service (NYS) for the Community House Building Certificate (NQF Level 2) using the Extended Public Works Programme. The college is also in partnership with the Japanese International Corporation Agency (JICA), the American Council of Education, the American Association of Community Colleges, the National Youth Development Agency and relevant Sector Education and Training Authorities (SETAs). the institution is up-to-date with training interventions. Addressing skills shortages The college is responsive to the needs of the province as all courses that are currently available at various campuses were selected based on the needs of the surrounding communities and research was undertaken to ascertain this. The college is in the process of establishing a research unit that will ensure that Financial assistance The college offers comprehensive bursaries to financially needy students; the bursary pays for tuition fees, accommodation and transport. Students need to apply and attach all obligatory documents. read more Visit: www.ehlanzenicollege.co.za mpumalanga Business 2013/14 12 Forging Ahead with Greater Determination The Mpumalanga Department of Education has recorded significant strides during the 2012/13 school year in areas of administration and implementation. These achievements include improvement of financial management that saw the department obtaining unqualified audit reports two years in succession which resonates well with the Government's vision; Towards 2014 Clean Audit. Accomplishment also include enhancement of leaner performance from 47.9% in 2009 to 70% in 2012 following an incident free and credible examination process. This year the Department intends to improve the results by 10% in all grades and there is already a declaration that there will be no school that will obtain results below 50% in the 2013 school year in all grades. What is encouraging is that there are already ongoing plans to ensure that this is achieved. For the 2013/14 financial year, the Mpumalanga Department of Education has planned to accelerate Early Childhood Development, Literacy and Numeracy promotion which will also have positive spins for Grade 12 improvement strategies. In addition special focus will be on the following programmes: • Grade 12 improvement strategies • Increase Maths & Science output • Enhancement of school management and governance • Improving school safety measures • Fast track Teacher Development • School Infrastructure Development • ICT Improvement • Promotion of school sport and cultural programmes and • Partnering with business in implementing effective Career Guidance Programmes. The Department is working around the clock to lobby all stakeholders including Business for purposeful partnership aimed at ensuring that the priorities mentioned above are realised in a meaningful manner. Sisonke Sifundzisa Sive TOLL FREE: 0800 203 116 Mrs MOC Mhlabane Head of Department Regional overview of MPUMALANGA Province Mpumalanga is reaching out to international investors. By John Young and Mozambique) are indicative of this trend. The Maputo Development Corridor is a major bi-national regional route linking Johannesburg with Maputo, and there is still a lot of related development that could take place in this sphere. Premier David Mabuza has made reference to the international dimension: ‘We will also exploit our memoranda of understanding with other countries abroad to promote trade and investment opportunities agreed upon. ‘Among others, one refers to countries such as Oman – our gateway to the markets of the Middle East with regard to agricultural commodities; Portugal – our partner in the development of the Sports Academy and many others.’ A memorandum of understanding was due to be signed in 2013 by the provincial government, the Mpumalanga Economic Growth Agency (MEGA) and the China Development Bank Corporation. There is an existing relationship between Mpumalanga and the German state of North Rhine-Westphalia. Acid mine drainage is a major issue for the province and the Germans have indicated that they might be able to offer expertise in this area. M pumalanga has two international borders (with Mozambique and Swaziland) and has four South African provinces as neighbours. Rich in agricultural produce and minerals, Mpumalanga is also home to the most popular section of the country’s most prized tourism asset, the Kruger National Park. A strong manufacturing sector – that will be substantially boosted by expansion projects currently being undertaken by Sappi and Sasol – completes the picture of a province with great investment potential. International partnerships are increasingly playing a role in the province’s affairs. A binational commission (the Komati Basin Water Authority) that oversees water issues with Swaziland and a recently signed tourism branding initiative known as Tri-lands (with Swaziland 14 15 special feature In the course of the 2013 State of the towards these economic objectives. These Province address, Premier Mabuza highlighted include the Mpumalanga Economic Growth some statistics that had been revealed by the and Development Path and the Mpumalanga national census in 2011: Infrastructure Development Master Plan. • 87.4% of Mpumalanga households have Among the key aspects for future growth access to water identified by the province’s leaders at economic • 61.3% have access to sanitation summits are: • 88.3% have acces to electricity • The establishment of a university • The population of four-million is a 20% in- • The establishment of a tertiary hospital crease since 2001 • The construction of an international • 130 000 fewer people were living in poverty convention centre • The repair and maintenance of the road in 2011 compared to 2010 system that supports the coal industry National government has identified beneficiation as a key strategic part of the country’s A special conference dealing with infrastructure growth path. Premier Mabuza has made it clear and tourism was held after the Soccer World that his province is keen to support the na- Cup where a number of local and foreign investional imperative. He said, ‘With regard to value tors were introduced to a variety of projects that, adding, more attention will be given to agri- if successful, will boost the local economy and processing and beneficiation. It is our convic- increase employment opportunities. tion that taking our raw material to the level of finished products will assist in unlocking more opportunities for small businesses both on the Geography and logistics upstream and downstream of the value chain.’ The provincial government has developed The geography of the province is defined by a number of strategic plans to plot the path the Drakensberg escarpment which forms the mpumalanga Business 2013/14 16 special feature dividing line between the Highveld (western grasslands at high altitude) and the subtropical areas at lower altitude to the east, the Lowveld. The central region of the province is mountainous, with some dramatic landscapes presenting exciting vistas for visitors. The Lebombo Mountains rise in the east. The area south of the capital city of Mbombela (Nelspruit), near Barberton, has some of the world’s oldest rocks forming the Crocodile River Mountains. 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. Large parts of the province are located in the so-called Middleveld comprising high-plateau grasslands. Forestry operations are found in central and south-eastern Mpumalanga, but the heart of this important industry is around Sabie. The province has excellent roads and railway connections and is well served by airports, airstrips and heliports. The Kruger Mpumalanga International Airport opened in 2002, but the old Nelspruit airport is still operational. Comair has regular flights into the province from Johannesburg. 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 and aims to boost trade within and beyond the region. 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. trical power. South Africa needs more power to drive its economy and so several of these power stations are being returned to service after a period of inactivity or are having their capacity increased. This is creating a demand for coal and resource companies are responding quickly to this need, investing in new equipment and opening new mines. More than 80% of South Africa’s coal is sourced in Mpumalanga, with the town of Witbank being the centre of the industry. Other minerals found in the province include gold, platinum, chromite, zinc, cobalt, copper, iron and manganese. Columbus Stainless in Middelburg is a major producer of stainless steel, while Middelburg Ferrochrome, Samancor, Evraz Highveld Steel and Vanadium and the Manganese Metal Company are among other important heavy industrial companies. After mining and quarrying (29.8% of provincial GDP), manufacturing, power generation, tourism and agriculture are the province’s other major sectors. Synthetic fuel is produced by Sasol at its liquid-fuel-from-coal plant at Secunda, in western Mpumalanga. This is now the only plant in the country using this process as the other plant, in the Free State, focuses on chemicals and other petroleum byproducts. Mpumalanga has a strong manufacturing sector, with internationally renowned companies such as Sasol (synthetic fuels and chemicals), Evraz (steel) and Xstrata (ferrochrome) having large operations in the province. The province’s rich agricultural produce is used by companies such as McCain, Nestlé and PepsiCo and there are also pulp and paper plants (Sappi and Mondi), fertiliser facilities and textile-manufacturing concerns. The decision by Sappi to start producing chemical cellulose at its Ngodwana Mill will significantly increase the manufacturing capacity of the province. The Kruger National Park is a major national asset and is home to the Big Five. The park receives more than a million visitors annually. Some of the most luxurious private game lodges in the world are located along the park’s edge. Mpumalanga boasts a range of natural attrac- Economy Mpumalanga’s 11 coal-fired power stations, mostly located near the extensive coalfields in the west, provide the bulk of South Africa’s elec- 17 mpumalanga Business 2013/14 special feature tions second to none: parks, reserves, botanical gardens, rivers and lakes, including the largest freshwater body in South Africa at Chrissiesmeer, near Ermelo. The Nelspruit district in the Lowveld is South Africa’s second-biggest producer of citrus fruit, while vegetables of all sorts do well in this area too. Further east and south, sugar is the major crop. 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. ZIMBABWE MOZAMBIQUE BOTSWANA Limpopo NAMIBIA Gauteng North West MPUMALANGA SWAZILAND KwaZuluKwaZuluNatal Natal Free State Northern Cape LESOTHO Eastern Cape Western Cape Nkangala District Municipality Towns: Middelburg, Delmas, Kriel, eMalahleni (Witbank), eMakhazeni (Belfast), Dullstroom, Emgwenya (Waterval Boven). This area straddles the north-west. Rural and traditional in the north-west where the king of the Ndebele is still revered, a coal-mining and steelproducing area in the industrial centre as well Ehlanzeni District Municipality as a trout-fishing triangle in the north-east. The district is at the centre of the fly-fishing sector that Towns: Mbombela (Nelspruit), Malelane, includes hatcheries and accommodation for tour- Hazyview, White River, Sabie, Lydenburg, ists. Just over a million people live in the district. Barberton. The urban centres are nodes of manufacturing in this region, which is also at the heart of Gert Sibande District Municipality Mpumalanga’s tourism offering. The Kruger National Park, the Blyde River Canyon, Bourke’s Towns: Bethal, Secunda, Standerton, Luck Potholes, God’s Window and other atErmelo, Volksrust, Mkhondo (Piet Retief), tractions make this a highly desirable place to Carolina. visit. Citrus, sugar and forestry are the major Power stations abound in this region which agricultural products, all being major contribustretches across the southern half of the prov- tors to export earnings. The Sappi paper mill at ince and is the home of the giant Sasol facili- Ngodwana is one of the biggest of its kind while ties at Secunda. The area is also on the top of TSB Sugar operates two large mills in the east. South Africa’s maize triangle and agriculture The population is about 1.5-million. and food processing are well-developed sectors. Sheep, chickens, sunflower and sorghum are just some of the areas’s many agricultural products. Nestlé has a processing plant at Standerton and Mondi has a pulp and paper facility in the south-east. About 900 000 people live in the Gert Sibande District Municipality. mpumalanga Business 2013/14 18 MPUMALANGA PROVINCE Mokopane POLOKWANE Limpopo R37 H7 R40 N1 Tzaneen Phalaborwa Thabazimbi Roedtan Mookgophong Hoedspruit Lebowa Kgomo Modimolle Bela-Bela Pilgrimâ€™s Rest Groblersdal Sabie R40 North West Lydenburg R37 Graskop Hazyview H10 Temba R25 R36 MOZAMBIQUE Brits N11 R33 Stoffberg Dullstroom White River N4 Cullinan Witbank R35 PRETORIA Middelburg Barberton Carolina Breyten N17 NELSPRUIT N4 Centurion N4 Machadodorp Belfast Waterval-Boven Komatipoort 19 Ogies Vandyksdrif R38 N14 N12 JOHANNESBURG Leandra Evander Ermelo Morgenzon Standerton R35 N11 N2 R50 R23 N17 Delmas Bethal N12 N1 Meyerton Gauteng Balfour R33 R65 N Amsterdam Sasolburg SWAZILAND Piet Retief Heilbron Vrede R34 N3 Frankfort Volksrust Wakkerstroom special feature mpumalanga Business 2013/14 Free State Main Road Railway Motorway KwaZulu-Natal N2 listings MEGA promotes SMMEs The Mpumalanga Economic Growth Agency (MEGA) has compiled a useful list of SMMEs in Mpumalanga, which it aims to promote and support. Big Sky Travel Contact: Eva Biyela Tel: +27 13 741 1539 Fax: 086 219 0143 Cell: +27 79 875 7623 Email: firstname.lastname@example.org Blue Skies Fresh Produce Contact: Andre Veldsman Tel & fax: +27 17 773 0780 Cell: +27 83 290 6713 Email: andre.veldsman@ blueskies.com Bogosi IT Solution cc Contact: Rob Moloto Fax: +27 13 741 5139 Cell: +27 82 092 5213 Email: email@example.com Cape Fruit Processors Contact: Maryna Boshoff Tel: +27 13 790 3015 Fax: +27 13 790 0072 Cell: +27 79 022 1657 Email: firstname.lastname@example.org Coppercraft Africa (Pty) Ltd Contact: Michael Bam Tel: +27 13 758 1194 Fax: +27 13 758 1184 Email: michael@ creativecopper.co.za Corrotherm Special Metals Africa (Pty) Ltd Contact: Owen Maroleni Tel: +27 13 246 9100 Fax: 086 659 4822 Cell: +27 82 447 0370 Email: email@example.com Cosmic Paints Contact: Israel Khoza Cell: +27 82 833 9337 Email: firstname.lastname@example.org Kudu Farms t/a Ivory Macadamia Contact: Giovanna Secco and Walter Givrivich Tel: +27 13 710 0149 Cell: +27 82 948 2888 or +27 82 967 6757 Email: email@example.com or firstname.lastname@example.org Loopspruit Winery Contact: Manie Grobler Tel: +27 13 930 7024 Fax: 086 610 8242 Cell: +27 82 938 5648 Email: email@example.com Macadamia Industries Contact: Debbie Reece Tel: +27 13 737 8703 Fax: 086 689 4912 Cell: +27 82 397 4318 Email: firstname.lastname@example.org Malcolm Ezindaleni Hydraulic & Engineering (MEHE) Contact: Ebrahim and Sumaiya Patel Tel: +27 13 246 2557 Fax: +27 13 246 2213 Cell: +27 82 442 6959 Email: email@example.com or Malcolm@mweb.co.za Maximacadamia t/a Maximacs Contact: Hermiena Lombaard Tel: +27 13 712 2768 Fax: 086 512 9935 Cell: +27 74 103 2325 Email: firstname.lastname@example.org Mphatlalatsane Cooking Oil Co-Op Ltd Contact: Oupa Njobe Tel & fax: +27 17 779 0059 Cell: +27 82 794 6408 Mthombeni Trading Contact: Mario Gonsalves Tel: +27 13 246 1034 Fax: +27 13 246 2106 Email: mario@ mthombenitrading.co.za Onderberg Verwerkingskooperasie Beperk â€“ Malelane Juice Contact: Nathalie Mandelkorn Tel: +27 13 790 1146 Fax: 086 635 7311 Cell: +27 83 628 1854 Email: email@example.com or firstname.lastname@example.org Sabie Valley Contact: Tim and Kim Buckland Tel: +27 13 737 8169 Fax: +27 13 737 8379 Cell: +27 82 751 3400 Email: email@example.com Salukana Beads and Sewing Contact: Sweetness Sithole Cell: +27 73 848 1149 Email: firstname.lastname@example.org Samkelisiwe Farming Contact: Phumzile Masuku and Skumbuzo Nkosi Tel: +27 76 726 4670 Fax: 086 554 4715 Cell: +27 76 733 2061 Email: samkelisiwefarming@ gmail.co.za Thekwane Estate Contact: Green Mbhalati Cell: +27 82 938 5581 Worx of Africa Contact: Peter Leschinsky Fax: +27 13 758 1143 Cell: +27 82 552 3109 Email: email@example.com mpumalanga Business 2013/14 20 listings Municipalities and managers The Mpumalanga Economic Growth Agency (MEGA) has compiled a useful list of local economic development managers stationed in the municipalities of Mpumalanga. Ehlanzeni District Municipality Tel: +27 13 759 8500 Fax: +27 13 755 3157 Bushbuckridge Local Municipality Ms Helen Nonyane Tel: +27 13 799 1851 Fax: +27 13 779 1865 Emakhazeni Local Municipality Mr Zakhele Ntimeni Tel: +27 13 253 1121 Fax: +27 13 253 2440 eMalahleni Local Municipality Mr Sipho Masuku Tel: +27 13 690 6911 Fax: +27 13 690 6207 Dipaleseng Local Municipality Mr Nkosana Bhembe Tel: +27 17 773 0055 Fax: +27 17 773 0169 Govan Mbeki Local Municipality Mr Sabelo Vilakazi Tel: +27 17 620 6000 Fax: +27 17 634 8019 Dr JS Moroka Local Municipality Mr Dennis Tladi Tel: +27 13 973 1101 Fax: +27 13 973 0974 Lekwa Local Municipality Mr Khosiwe Mahlangu Tel: +27 17 712 9600 Fax: +27 17 712 6808 Mbombela Local Municipality Mr Vincent Mabuza Tel: +27 13 759 2000 Fax: +27 13 759 2070 Mkhondo Local Municipality Ms Angel Dlomo Tel: +27 17 826 8100 Fax: 086 542 1173 Msukaligwa Local Municipality Mr Bongani Zwane Tel: +27 17 801 3500 Fax: +27 17 801 3851 Nkangala District Municipality Tel: +27 13 249 2000 Fax: +27 13 249 2087 Email: matimbabm@ nkangaladm.org.za Pixley Ka Seme Local Municipality Mr Oupa Mavuso Tel: +27 17 734 6100 Fax: +27 17 735 3004 Steve Tshwete Local Municipality Ms Beatrice Maleka Tel: +27 13 249 7000 Fax: +27 13 243 2550 Thaba Chweu Local Municipality Ms Cindy Cave Tel: +27 13 235 7300 Fax: +27 13 235 1108 Thembisile Local Municipality Ms Ntombi Ndaba Tel: +27 13 986 9100 Fax: +27 13 986 0995 Umjindi Local Municipality Mr Sthembiso Mbuyane Tel: +27 13 712 2121 Fax: +27 13 712 5120 Victor Khanye Local Municipality Mr Jeffrey Kgare Tel: +27 13 665 6000 Fax: +27 13 665 6060 Gert Sibande District Municipality Tel: +27 17 801 7102 Email: silas.nkonyane@ gsibande.gov.za Albert Luthuli Local Municipality Lucky Shabangu Tel: +27 17 843 4064 Fax: +27 17 843 4001 Email: shabangulg@ albertluthuli.gov.za 21 mpumalanga Business 2013/14 special feature Sappi invests big in Mpumalanga manufacturing A specialised cellulose project aims to boost the global giant’s market share. A s Sappi’s Ngodwana Mill in the heart of Mpumalanga approaches its 50th birthday, it is getting a massive make-over. The mill produced its first unbleached kraft pulp in 1966 and became one of the first plants in the world (in 1996) to install an ozone bleaching plant. This meant that elemental chlorine was eliminated from the process and chlorine levels in effluent were greatly reduced. The process of converting the plant to one capable of producing dissolving wood pulp had begun. The Ngodwana Mill has impressive capacity for producing unbleached kraft products. It annually produces 195 000 tons of unbleached kraft pulp, 230 000 tons of kraft linerboard, and 140 000 tons of newsprint. After the conversion the mill will also annually produce 210 000 tons of dissolving wood pulp, also known as specialised cellulose. mpumalanga Business 2013/14 With Sappi’s focus now on increasing its production of specialised cellulose, the mill is undergoing a vast re-fit. The company and contracted private farmers grow about two-million tons of timber in the province to supply the mill with feedstock. The mill is south-west of Nelspruit. Go for cellulose Sappi’s launch of Project GoCell in 2011 has set in motion one of the biggest engineering projects in South Africa; the conversion of parts of the Ngodwana Mill into a facility that will make large quantities of specialised cellulose. The company is already one of the leading producers of specialised cellulose on 22 special feature the globe, supplying about 15% of the world demand, and the investments in Project GoCell, as well as a similar project at Sappi’s Cloquet Mill in the US (producing 210 000 tons and 330 000 tons per year respectively), will maintain Sappi’s position. These additions to the company’s capacity will take Sappi’s overall annual production to 1.3-million tons of specialised cellulose. Sappi specialised cellulose is primarily used in the manufacture of viscose for the textile industry. Other sectors where it is used are consumer goods, pharmaceutical and household products, and the food industry. Specialised cellulose is a natural product derived from a sustainable and renewable resource. Global demand for dissolving wood pulp is expected to grow at 6% per annum while the viscose market on which Sappi focuses is ex- pected to grow by around 8% per annum with the burgeoning Asian middle-class being the main driver. Asia is Sappi’s biggest market for specialised cellulose, and the company is projecting that the middle-class there will grow from 1.9-billion at the moment to about 2.7-billion by 2030. Sappi’s investment in specialised cellulose is helping to diversify Sappi’s product offering given the decline of coated paper in mature markets, although it is still growing steadily in emerging markets. read more Visit: www.frontiermarketnetwork.com/ article/594 mpumalanga Business 2013/14 23 interview Wood fibre... good for you and good for the planet Schalk Engelbrecht, general manager of Sappi Ngodwana Mill, explains that modernisation of the mill will enhance operational efficiency and reduce environmental impact. Tell us about Sappi’s new dissolving wood pulp (specialised cellulose) plant in Mpumalanga. Ngodwana Mill aims to start-up its newly established specialised cellulose plant mid-2013, and will produce 210 000 tons of product per annum. Specialised cellulose is an exciting natural product, produced from sustainable wood fibre sources. Although the majority of Ngodwana Mill’s specialised cellulose is produced for the textile industry for the manufacturing of viscose material, it is also widely used by the consumer goods, foodstuffs and pharmaceutical industries. The project will enhance the mill’s operational efficiency and improve the mill’s environmental footprint. By introducing new technology and processes, the mill effluent will be significantly reduced. The project will further reduce mill odour and through improved efficiencies the mill will burn 61 000 fewer tons of coal per year, which equates to 120 000 tons less CO2 emissions. Does the increasingly digital business world affect Sappi? We produce a wide range of products, such as pulp, paper and specialised cellulose solutions, which add value to daily life, create employment and generate significant economic benefits. Although demand for coated paper is declining in more mature markets, demand continues to grow in emerging economies. Sappi continues to optimise our paper business and to grow in the packaging and specialised markets in which the company operates. Our release papers serve the apparel, fashion and automotive industries, and in South Africa we also focus on packaging and tissue papers, which are used for household and industrial purposes. How does Sappi engage with local communities? Many of Sappi’s operations are located in rural areas and small towns where we are often the largest employer, and our corporate responsibility reflects this. We concentrate on education and literacy; supporting math, science and English language learning interventions; employee and community wellbeing; conservation and the environment; and we provide relevant local community support such as: providing fresh water, maintaining schools, establishing food gardens and undertaking community skills development programmes. Schalk Engelbrecht biography Schalk Willem Engelbrecht has a BSc Forestry, Honours in Business Administration and a Global Executive Development Management qualification. He started his career as a district forestry manager with the Department of Environmental Affairs in the Western Cape. In 1990, he joined Sappi, where he has held several management positions, including that of pulp and paper mill manager, inland logistics, commercial services, strategic fibre supply, regional manager of Sappi mining timber, sawmill and general manager of Sappi Tugela Mill. He was appointed general manager of Sappi Ngodwana Mill in mid-2008. mpumalanga Business 2013/14 24 Our products. Part of the fabric of Mpumalanga’s economy. And you thought Sappi only made paper? True, we are the world’s largest producer of coated fine paper. But we are also the world’s largest producer of specialised cellulose, a sustainable product made from a renewable resource – woodfibre. Aside from natural viscose fabrics used in garments, specialised cellulose is also the base ingredient of a multitude of products that are part of your everyday life. Curtains, towels, bedding, pillow stuffing, cosmetics, cellphone screens, tyre linings, sanitary and medical products... which is why we call specialised cellulose the wonder fibre. And it’s now being grown and manufactured by Sappi in South Africa and exported worldwide. www.sappi.com versatility special feature Exports drive growth The Port of Maputo is expanding rapidly. M pumalanga plays an important role Africa has positively affected the Nelspruit and in South Africa’s exports, both as a Komatipoort markets. producer and as a key player in the In 2011, MCLI won the platinum award at the logistics of the sector. annual Logistics Achiever Awards. The citation The Maputo Development Corridor is Africa’s praised the ‘world-class logistics corridor for the most advanced spatial development initiative benefit of the industry’. (SDI) comprising road and rail infrastructure, borIn 2011, the Lebombo border post handled der posts, and port and terminal facilities. Run trade volumes exceeding R25-billion (SARS). The by the Maputo Corridor Logistics Initiative (MCLI), value of imports and exports between South the corridor runs from just outside Pretoria in Africa and Swaziland grew by 27% between Gauteng, through Witbank, Middelburg and 2009 and 2012, reaching an annual figure of Nelspruit in Mpumalanga, and on to Maputo in R20-billion. Mozambique. The provincial capital of Nelspruit is only Estate agents in Mpumalanga credit the 220km from Maputo. In 2012, the Port of Maputo Mpumalanga Corridor for the improvement in the handled 15-million tons (mt) of cargo, threeproperty market. Pam Golding reports that in- million more than it did in 2011. The port expects creased trade between Mozambique and South to be handling 40mt by 2020. mpumalanga Business 2013/14 26 special feature The Maputo Port Development Company is- Dry Port. The Mpumalanga Economic Growth sued 12 tenders in just four months in 2012, with Agency (MEGA) is supporting this initiative to proa further 10 to follow in 2013. All of these form mote trade. The National Department of Trade part of the strategic development plan for the and Industry (dti) has registered the project under its Special Economic Zone (SEZ) programme. growing port. MEGA supports the province’s exporters by Regional cooperation was the key to the creation of the Maputo Sugar Terminal in Maputo giving them advice and giving small businesses Harbour. The terminal is jointly owned by the access to trade shows. Link-ups with the dti have sugar associations of South Africa, Mozambique, allowed SMMEs to attend the Dakar International Swaziland and Zimbabwe. Trade Fair, for example. The Matola Coal Terminal at the port is operMany Mpumalanga businesses are geared ated by Grindrod. Capacity currently stands at for export. Columbus Stainless, Africa’s only flatsix-million tons per year, but the company wants products producer, sends 75% of its products to increase this to 20-million tons to cope with into the world. It has 12 sales offices in Europe, the huge volumes of coal that South Africa and six in South America and several more in Asia. Botswana want to export. Eighty percent of the coal produced at Transnet Freight Rail (TFR) carries signifi- Xstrata’s new shaft at Spitzkop colliery will fire cant quantities of coal and other commodities European power stations, while four-million tons destined for export through Mpumalanga. If a per annum will be exported by Sasol’s new shaft proposed new line is built between Ermelo and at Twistdraai. The province of Mpumalanga is the Phuzumayo in Swaziland, more coal could be world’s third-biggest exporter of coal. delivered to Richards Bay on the existing line. Sappi’s plans to produce 210 000 tons of The new line would relieve the coal-line of as chemical cellulose at its Ngodwana Mill will further boost the company’s export profile. Other much as 15-million tons of general freight. Rail operators in Southern Africa are cooper- big manufacturers in the province, such as Sasol ating. The promotion of a North-South Corridor and Manganese Metal Company (the largest is one example, and a 2013 announcement that single manufacturer of electrolytic-manganese Botswana’s coal will be transported by TFR is metal in the world), are geared for export. another. The recent acceptance of South Africa into Trans African Concessions (Trac), which man- the BRICS group of nations (Brazil, Russian, ages the N4, is set to spend R1.8-billion on up- India, China, South Africa) holds great potential grades over the next 10 years on the major arte- for increased exports. rial of the Maputo Corridor. The cross-border toll Fruit represents 12% of South Africa’s agriroute also involves the roads agencies of South cultural export volumes and Mpumalanga is well Africa (SANRAL) and Mozambique (National represented in that regard. Agricultural exports account for 7% of the nation’s total exports. Roads Administration). Companies such as Halls and Westfalia speThe runway at Kruger Mpumalanga International Airport is more than 3 000m long cialise in the export of fruit and about 95% of and can accommodate 767 Boeings and Airbus the province’s macadamia crop goes to the US aeroplanes. The operators would like to handle and Europe. cargo, and this possibility is being examined. The provincial government of Mpumalanga is building a fresh produce market. The province read more is targeting Oman as a gateway to other Middle Eastern markets. Another new piece of export infrastructure Visit: http://info.frontiermarketnetwork.com/ under development is the Lebombo Border maputo-corridor 27 mpumalanga Business 2013/14 interview Linking investors and opportunities Boyce Mkhize, CEO of the Mpumalanga Economic Growth Agency, explains that SMMEs are the key driver of economic growth in the province. Boyce Mkhize How does MEGA link investors and entrepreneurs with relevant investment and development opportunities in the province? Entrepreneurs are linked with investors by MEGA in a number of ways, including: • Through partnerships in the form of joint venture operations • As suppliers of input material and services • As buyers/distributors of the investors’ finished products There are many instances where both local and foreign investors are looking for a joint venture partner at the final destination of the investment. This could be for various reasons, such as: • Accessing local markets through a joint venture • Sharing technology with a local partner • Gaining access to raw material through a joint venture operation How important are SMMEs in unlocking economic development in the province and the SADC region? It is well known and documented that the role of SMMEs in unlocking economic development is almost taking over as the engine of the economy. Good examples of this include: Italy, India, Bangladesh, Mexico and the southern region of Canada, as SMMEs in these areas supply to mega-stores in the US. There is no reason why this SMME model cannot be duplicated in Mpumalanga, South Africa and the SADC region. In the context of Mpumalanga, there are other opportunities for SMMEs to develop in all the major sectors and industries of the provincial economy. Some typical examples include: SMMEs in the agri-processing industry or the furniture industry of the manufacturing sector. Mpumalanga presents a particularly exciting environment for SMMEs to thrive due to its strategic location, with the Port of Maputo nearby and fertile land for agriculture. Citrus and forestry industries are among a few industries that are operational in Mpumalanga and have raw material to support a number of business initiatives. biography Boyce Mkhize is the CEO of MEGA. He has served as the CEO of the National Nuclear Regulator of South Africa and the Health Professions Council of South Africa. He also served in various portfolios within government as inter alia, chief of staff in Minister Skweyiya’s office, deputy director for transformation of the public service, and director of human resources. Prior to joining government, he was a human rights lawyer and also coordinated the constitution writing process for the Constitutional Assembly in KwaZuluNatal. He holds qualifications in law, human rights and business. mpumalanga Business 2013/14 28 interview A valuable commodity CEO of Columbus Stainless Dave Martin highlights the importance of stainless steel in Mpumalanga and the country as a whole. Please give a brief overview of Columbus Stainlessâ€™ export history and export regime for the future. We have a long history of exporting, with about 60-70% of our products sold to 70 countries worldwide. We thus have significant capacity available for local beneficiation, which is the key focus for our business. I believe we as a country need to beneficiate more of our abundant raw materials locally and over time ensure we are the conduit into the fast-expanding African economy. I am convinced Africa will be a major market hopefully within the next decade. Please highlight some of the companyâ€™s recent corporate social investment initiatives. Our focus in Middelburg has three key points. One is school education; we are a technically driven company and focus on mathematics and science, and we give support in those areas by means of career expos and career development, and also building assets like classrooms, libraries and science labs in previously disadvantaged areas to try to encourage students to pursue that line of study. The second thrust is small business development; we provide support to the business-linkage centre in Middelburg, and it in turn provides support to emerging entrepreneurs and black-owned companies trying to make inroads into the big corporates. The third focus is what we call the Middelburg Stainless Incubator, which is a number of workshops that can be used to make stainless-steel items, and a central workshop where they can rent time on the machines. What are the key focus points that will ensure the future of stainless steel in the country? The government infrastructure programme is very important to South Africa, and the stainless-steel industry. I think it would be a tragedy if stainless steel is imported from other countries and local stainless steel is not used to supply Transnet Engineering for its wagons, PRASA for its coaches, and solar energy panels, etc. The message we want to get across is that stainless steel is an extremely useful material, and invaluable in our daily lives. So the question is, how do we filter that enthusiasm into the community and the country as a whole? Dave Martin biography Dave Martin completed his schooling at Grey High School in Port Elizabeth and studied a BSc (Materials Engineering) at the University of Port Elizabeth, graduating in 1977. He started in the physical metallurgy laboratory at Southern Cross Steel in 1978 and followed a career in the plant operations before becoming GM Operations in 1991. Dave has been CEO of Columbus Stainless since 1998 and reports to Acerinox Group management in Madrid. 29 mpumalanga Business 2013/14 special feature The Maputo Development Corridor The Maputo Development Corridor, represented by the Maputo Corridor Logistics Initiative, comprises road, rail, border posts, port and terminal facilities. The corridor runs through the most highly industrialised and productive regions of Southern Africa. area/location Limpopo Phalaborwa Steelpoort Valley Middelburg and Witbank Lydenburg Sabie Nelspruit Belfast Machadodorp Carolina and Ermelo Secunda and Sasolburg Johannesburg Rustenburg and Britz Pretoria Swaziland products Citrus, forestry products and minerals Phosphate, copper and magnetite Ferro-alloys, chrome and forestry products Coal, minerals, steel and ferro-alloys Ferro-alloys Soft fruit and forestry products Sugar, bananas and forestry products, alloys, chemicals, citrus, soft fruit Granite and pulp Ferro-alloys and chrome Coal Chemicals and hazardous products Manufactured goods, explosives and finished steel Manufactured goods, cement, granite, minerals and ferro-alloys Vehicles and manufactured goods Sugar, citrus, minerals and forestry products Industries located on the Maputo Development Corridor mpumalanga Business 2013/14 30 special feature KEY facts Recent achievements Single electronic window in Mozambique is operational • A World Bank-funded report (backed by the MCLI and the Port of Maputo) gave evidence of the need for changes to transit regulations in Mozambique • Bulk cargo and transhipments are now zero-rated in Mozambique • The Maputo Corridor Logistics Initiative (MCLI) in numbers Ninth year of operation • Three-million tons of cargo in 2002; 15-million tons in 2012 • Investment in the Port of Maputo since the private-sector concession was awarded in 2002 amounts to $400-million (US) • The contract ends in 2027 and is valued at R4.9-billion, 720 contracts to the value of R304million awarded to 160 SMMEs during the initial construction phase • TRAC employs 71% female and 84% black staff and employs 300 people in South Africa and 100 people in Mozambique, predominantly from the communities through which the N4 Toll Route passes • Coal, chrome and magnetite constitute the biggest volumes of freight moving on the corridor • Truck traffic on the Maputo Corridor increases annually between 10% and 11% • Annually, in excess of 4.6-million people, 730 000 vehicles and 90 000 trucks cross the border at Lebombo into Mozambique • Firsts MCLI is the only private-sector corridor-management institution on the continent, with the South African National Department of Transport the only public-sector funder of the 10 funders of the organisation • MCLI has 170 members from Mozambique, South Africa and Swaziland, with a member in the UK and one in Holland • The Port of Maputo was the first port on the continent to be ISPS certified • Future plans A 24-hour one-stop border post at Lebombo/Ressano Garcia • Achieving a formal public-private partnership arrangement (more active participation of three corridor governments and private sector) • Continued investment in corridor infrastructure, and improvements in systems and procedures • Tracking the growth and economic impact of the corridor in a wider range of trade programmes through improved research • read more Visit: http://info.frontiermarketnetwork.com/maputo-corridor 31 mpumalanga Business 2013/14 special feature Overview of the South African economy Key facts and figures on South Africa’s demographics, economy, trade and investment. South Africa fact file Capital: Pretoria Population: 51.8 million Area: 1 220 813km2 GDP: R2 964-billion (2011) GDP growth: 3.1% (2011) Income per capita: R58 549 (2011) CPI: 6.1% y/y (April 2012) PPI: 6.6% y/y (April 2012) Unemployment: 25.5% (Q3 2012) Gini Index: 57.8 (2009 UN Report) Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 Q1 6.2 4.1 6.2 6.5 2.9 -6.3 4.0 4.6 2.7 Q2 Q3 5.7 7.4 6.7 3.1 4.5 -2.8 2.8 1.0 3.2 6.7 5.6 4.8 5.0 1.8 1.8 3.1 1.7 Q4 4.3 2.7 6.4 6.0 -1.7 3.5 4.5 3.2 Annual 4.6 5.3 5.6 5.5 3.6 -1.5 2.9 3.1 Gross domestic product South Africa’s real gross domestic product (GDP) growth slowed to a 2.7% increase on a quarteron-quarter seasonally adjusted annualised (q/q saa) basis – 2.1% year-on-year (y/y) in the first quarter of 2012 from 3.2% q/q saa (2.9% y/y) – in the fourth quarter of 2011 (Table 1). The largest industries, as measured by their nominal value added in the first quarter 2012, were finance, real estate and business services, making up 19.3% of the economy, and general government services making up 14.6%. The q/q saa changes in value added by the primary, secondary and tertiary sectors were -11.2%, 6.4%, and 3.0% respectively, during the first quarter of 2012. What is noteworthy, however, is that the mining sector – the number-one export industry in the country – declined by 16.8% q/q saa in the first quarter, due in part to a six-week illegal strike at Impala Platinum, the world’s second-largest platinum miner. Mpumalanga Business 2013/14 Table 1: GDP growth per quarter, 2003–2011. Source: Statistics South Africa Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 GDP (R-m) 1 020 007 1 168 699 1 260 693 1 415 273 1 571 082 1 767 422 2 016 185 2 262 502 2 398 155 2 661 434 2 964 261 GDP per capita (R) 22 899 25 831 27 631 30 297 33 176 36 844 41 525 46 072 48 318 53 088 58 549 Table 2: GDP and GDP per capita at current prices, 1998–2009. Sources: www.thedti.gov.za, www.reservebank.co.za, World Bank, Statistics SA 32 special feature Sector Agriculture, forestry and fishing Mining and quarrying Manufacturing Electricity and water Construction (contractors) Wholesale and retail trade, catering and accommodation Transport, storage and communications Finance and insurance, real estate and business services Personal services General government services Total value added at basic prices Taxes less subsidies on products GDP at market prices Source: statistics south africa Value in millions (R) 63 984 2 260 381 357 756 78 532 120 420 386 430 220 060 565 224 183 493 434 224 2 670 504 293 757 2 964 261 % Real change from 2010 -.04 0.2 2.4 1.3 0.8 4.4 3.3 3.5 2.4 3.9 3.0 4.4 3.1 % of GDP 2.2 8.8 12.1 2.6 4.1 13.0 7.4 19.1 6.2 14.6 90.1 9.9 100 Table 3: Breakdown of South Africa’s GDP at current prices, per sector, 2011. African Customs Union (non-SACU) trading partners in April 2012, after a deficit of R5.5-billion in March, taking the cumulative trade deficit in April 2011 to R36.5-billion, compared with R7.5-billion in the first four months of 2011. A record R17.4-billion deficit was set in January 2009, but as exports began to improve, so the deficits narrowed in 2009 to become surpluses in 2010. South Africa recorded its first annual trade surplus in seven years in 2010 of R4.8-billion, following a few stronger than expected surpluses on the trade account during the year. In 2012, however, the rise in the oil price in the first few months, coupled with a sharp reduction in platinum exports, saw the non-SACU foreign trade balance firmly in the red. The old myth that a weaker rand leads to more exports is once again disproved by the facts, as import growth was 23.5% in 2011, while export growth was 19.9% when the rand was weaker due to a R15-billion deficit. Prior to November 2011, when the rand had been stronger, export growth had exceeded import growth. In 2010, when the rand was strong because export growth of 14.9% exceeded import growth Trade: imports and exports South Africa’s international trade has risen sharply over the last 10 years (table 4). In 2004, the value of imports rose above that of exports. Tables 5 and 6 show the largest import and export sectors respectively, for April 2012. Important import sectors in April 2012 were machinery (R15.9-billion), mineral products – chiefly crude oil (R13-billion), transport equipment (R10.9-billion) and chemicals (R5.4-billion). On the export side, the most important sectors were mineral products, chiefly coal and iron ore (R14.8-billion), precious metals and diamonds (R10.2-billion), base metals (R7-billion) and transport equipment (R4.6-billion). Most of South Africa’s foreign trade takes place with Asia, the United States and Germany (tables 7 and 8). In 2011, China, the United States and Japan were, in descending order, the country’s top export markets, while top import-source countries were China, Germany and the US. South Africa recorded a trade deficit of R9.9-billion for its trade with non-Southern 33 Mpumalanga Business 2013/14 special feature Year Imports in R-m 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 147 356 187 608 216 033 275 427 258 839 306 927 351 665 465 040 561 194 727 632 541 173 585 219 722 637 Exports in R-m 165 555 210 373 251 330 314 102 275 581 296 246 331 405 396 529 491 253 663 099 513 864 590 207 707 511 Sector 1. Machinery, mechanical and electrical 2. Mineral products 3. Transport equipment 4. Chemical products 5. Base metals 6. Plastics, rubber 7. Textiles 8. Optical, medical, photographic 9. Foodstuffs, beverages 10.Vegetable products Total Value in R-m 15 903 12 991 10 880 5 420 3 190 2 591 1 726 1 579 1 433 1 045 62 028 Table 4: Annual value of South African non-SACU imports and exports, 1998–2011. Source: www.sars.gov.za. Table 5: South Africa’s top 10 import sectors, April 2012. Source: www.sars.gov.za of 8.1%, there was a R4.8-billion surplus, the first annual surplus since 2003. In the first four months of 2012, when the rand was substantially weaker than in the same period in 2011, exports only grew by 7.4% y/y, while imports surged by 20.6% y/y. In mid-2009, South Africa ranked 61 out of 121 countries, from 59th out of 118 in 2008 in the World Economic Forum’s Global Enabling Trade Report. But in 2010, it slipped to 72 out of 126 countries. It ranks above Zimbabwe (122), Ivory Coast (123), Kenya (105), Tanzania (97), Argentina (95) and India (84). Sector 1. Mineral products 2. Base metals 3. Vehicles, aircraft, vessels 4.Machinery, mechanical electrical 5. Chemical products 6. Vegetable products 7. Foodstuffs, beverages 8. Paper, pulp 9. Plastics, rubber 10. Animals, animal products Total Value in R-m 126 512 92 269 49 938 47 748 31 203 21 204 19 660 10 931 9 504 5 230 590 207 Foreign direct investment and public investment South Africa’s privately held business (PHB) owners’ intentions to grow through acquisition seem to align with expectations of BRICS (Brazil, Russia, India and China) countries in the upcoming 12 months, according to Grant Thornton’s 2011 International Business Report (IBR) on M&A activity. SA was invited to join the BRIC grouping in 2011. Mpumalanga Business 2013/14 Table 6: South Africa’s top export sectors, April 2012. Source: www.sars.gov.za South Africa also fared well in a number of other indices. It was ranked 45th out of 133 on the World Economic Forum’s Global Competitiveness Index for 2009/10, and improved to 54 out of 139 countries in 2010/11. It was 32nd out of 181 countries in the World …Continued on pg 36 34 profile Middelburg Chamber of Commerce and Industry The Middelburg Chamber of Commerce and Industry aims to promote Middelburg as an investment centre. Description of services • • • • • • • • • • • • • Busmid venues A comprehensive service offered for meetings and conferences in Middelburg, Mpumalanga. Busmid venues offer: • • • • Creating network opportunities Creating af fordable marketing and advertising oppportunities Access to technical and statistical information Member-to-member referrals Corporate supplier search Discounted certificates of origin Supplying of economic indicators Access to MCCI boardroom and auditorium at reduced rates Information and Tourism Centre Business Linkage Centre BBBEE certification Voucher system Commissioner of Oaths Fully equipped auditorium, boardroom and break-away room Air-conditioning Data projector available on request Ample parking The chamber offers a reliable, cost-effective option to simplify any conference and meeting planning process, including organisation of the event. For customised quotation, contact Natasja on +27 13 243 2253 or email secretary@ middelburginfo.com. Target market All businesses across all market segments. contact info Key contact people: Anna-Marth Ott, CEO Valerie Pienaar, Manager: Business Linkage Centre Francois van Niekerk, Marketing Manager Tel: +27 13 243 2253 Fax: +27 13 243 1293 Email: firstname.lastname@example.org Physical address: 292 Walter Sisulu Street, Busmid Building, Middelburg Postal address: PO Box 1152, Middelburg 1050 Website: www.middelburginfo.com Key facts and figures Year established: 1903 No of staff: 8 Major clients: Columbus Stainless, Twizza, Thos Begbie, Safika Oosthuizens, Middelburg Ferrochrome, Blue Ribbon, Absa, Standard Bank, Nedbank, Capitec Bank, FNB, Eskom, Optimum Colliey, Steve Tshwete Local Municipality Turnover: R2-million BBBEE status: Level 4 35 Northern Cape Business 2013/14 special feature Bank and International Finance Corporation’s Doing Business 2009 report, and 34 out of 183 in 2010. This study measures the time, cost and hassle for businesses to comply with legal and administrative requirements. South Africa was at number 35 in 2008. Public-sector infrastructure investment, the expansion of electricity generation and distribution capacity by electricity supplier Eskom, upgrades to ports and railways by state-owned enterprise Transnet, and major road-construction projects remain the major challenges for the economy, but government continues to invest strongly in all areas. The ratio of fixed capital investment to GDP rose consistently over the five years to the end of 2008, to reach 24.6%, just below the government’s target of 25%. A cut-back in both government and private-sector fixed investment saw the ratio drop to 18.9% in the fourth quarter of 2010, before starting a slow recovery. General government fixed investment had the first quarterly increase in the second quarter of 2011 after nine quarters of decline. Total fixed investment has now increased for eight consecutive quarters and should continue to support growth going forward. Consumer spending has been robust, even as households repaired their balance sheets. The last time household expenditure growth exceeded income growth on a q/q saa basis was back in the fourth quarter of 2007. The result of this, as well as a marked reduction in interest rates, was that the household debt to income ratio fell to 74.6% in the fourth quarter of 2011 from 75.6% in the third quarter of 2011 and a peak of 82.7% in the first quarter of 2008. The debt service ratio eased to 6.7% in the fourth quarter from 6.8% in the third quarter, and is now at levels last reached in 2005. Country 1. China 2. Germany 3. USA 4. Japan 5. Saudi Arabia 6. India 7. UK 8. Iran 9. Nigeria 10. Italy Value in R-m 103 174 77 396 56 944 34 377 32 294 29 220 28 965 27 121 22 655 19 574 Table 7: South Africa’s top 10 import source countries in 2011. Source: www.sars.gov.za Country 1. China 2. United States 3. Japan 4. Germany 5. UK 6. India 7. Switzerland 8. Netherlands 9. Zimbabwe 10. Mozambique Value in R-m 90 210 61 044 55 635 42 684 29 001 22 224 22 902 22 902 17 776 17 680 Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1 15.70 16.00 16.50 17.70 19.70 21.05 23.20 20.30 18.80 Q2 16.00 16.20 16.00 18.60 21.20 22.44 22.40 19.88 19.00 Q3 15.90 16.20 17.00 18.90 20.40 24.02 21.20 19.40 18.90 Q4 16.00 16.20 17.10 19.70 20.20 24.64 20.30 18.90 18.90 Table 8: South Africa’s top 10 export markets in 2010. Source: www.sars.gov.za Table 9: Ratio of gross fixed-capital formation to GDP. Source: www.reservebank.co.za Mpumalanga Business 2013/14 36 destination mpumalanga A guide to business and leisure travel services, conferencing and accommoDation in mpumalanga destination overview Tourism Mpumalanga has impressive tourist destinations. sector insight Radisson Blu’s third South African hotel is due to open in the Kruger National Park. • Mpumalanga has teamed up with Mozambique and Swaziland to promote the Tri-land brand. • In 2013, Radisson Blu opened its second hotel in Mozambique. • Tsogo Sun is spending R270-million on its Maputo hotel. Lisbon Falls near Graskop in Mpumalanga. he tourism sector in Mpumalanga is sophisticated and well segmented, with accommodation available to suit every pocket. The Kruger National Park (Kruger) and the private game lodges located adjacent to the park are the jewels in the province’s rich tourism crown, but subsectors such as business, adventure, heritage and cultural tourism have enormous potential. Mpumalanga has signed memorandums of understanding with its neighbours Mozambique and Swaziland to market the broader region under the Tri-land brand. Radisson Blu’s decision to open its third South African hotel in Kruger and its second Mozambican hotel (in February 2013) suggests that private investors see the sense in this kind of regional thinking. mpumalanga Business 2013/14 T Further evidence of growth is seen in the decision by Tsogo Sun to invest R270-million in its Maputo Southern Sun property. The 178-room hotel will gain 110 rooms and new conference facilities. International tourist numbers increased in 2011, with Mpumalanga being one of just three provinces to record increases in the post-World Cup period. Statistics South Africa reported that the arrivals in South Africa for the first six months of 2012 were 10.5% improved on the same period in 2011. Mpumalanga is South Africa’s third most-visited province. The National Department of Tourism has plans to increase the sector’s contribution to the national economy to R338- 38 photo: South african tourism destination overview Graceland Hotel Casino and Country Club in Secunda is administered by Peermont. billion by 2015, of which Tsogo Sun group runs six hotels with different brands (StayEasy R125-billion will be direct. and Southern Sun Hotels among them) catering to different markets. Where South Africa attracted Casinos in Nelspruit (Emnotweni) and Witbank (The Ridge) are 9.9-million foreign visitors run by Tsogo Sun, while Peermont administers the Graceland in 2009, the plan is to host Hotel Casino and Country Club in Secunda. 13.5-million by 2015. Forever Resorts has several types of resorts, lodges and The Mpumalanga Depart- camps at a number of locations including Loskop Dam, the Blyde ment of Economic Devel- River Canyon and Kruger. The four-star Forever Resorts Mount opment, Environment and Sheba (near Pilgrim’s Rest) won a Winners Welcome Award in Tourism (DEDET) supported 2011 in the accommodation category for lodges. 56 small, medium and miSeveral private game farms are strung along the edge of the cro enterprises in participat- Kruger National Park and beyond. Some of the more luxurious ing in the Emerging Tourism destinations, such as the Sabi Sabi Game Reserve, are ranked Entrepreneur of the Year among the best in the world. Awards (ETEYA) and the MpuWhere private game lodges share boundaries with Kruger, malanga Tourism Agency saw fences between the lodges and the huge game reserve have been to it that 75 unemployed young taken down, allowing animals an even greater area in which to people received training as roam. This greatly enhances the chances of guests at the lodges Tourism Ambassadors. seeing more game. In addition, 520 Tourism The two Singita lodges in Kruger are part of the Relais & ChaSafety Monitors were hired teaux group and are distinguished by their breathtaking locations. in 2013 to assist visitors and The 15-suite Singita Lebombo hangs over a sheer cliff overlooking to work with police where the N’wanetsi River near the eastern boundary of Kruger. Singita necessary. Sweni is even more exclusive – with only six luxury suites on stilts – and this lodge overlooks the Sweni River. Londolozi Private Game Reserve is in the middle of the Sabi Hotels, lodges and resorts Sand Game Reserve and claims the best leopard viewing in Africa. The reserve is divided into four camps, none of which has The Protea Hotel group has more than 12 accommodation units. Londolozi comprises 14 000 six hotels in the province. The hectares (ha) within the Sabi Sands 56 000ha area. photo: Peermont Casinos and Resorts 39 mpumalanga Business 2013/14 destination overview Kruger is an iconic destination that hosts more than a million visitors annually. Its varied terrain of 20 000 square kilometres allows plenty of room for the Big Five to roam and hundreds of other kinds of animals too. The park contributes about R2-billion to the national economy, according to the Cape Times. It provides 1 932 direct jobs and about 10 000 indirect jobs in the area. The dry northern part of the park is more remote while the southern part of the park is the most visited section. Kruger offers 15 different conference venues, and is able to Outdoor activities abound. accommodate between 20 and 400 delegates in a wide range of rooms, halls and outdoor venues. Most of the venues offer accommodation options, as well as leisure activities including game Festivals and events viewing, hiking and various team-building activities. The Protea group has hotels at Kruger Gate, Hazyview and White River, the last of which, ‘The Winkler’, offers motivational Many of the province’s festivals and group bonding activities such as outdoor paintball exercises. and events are tremendously A new plan to build a major conference centre – Skukuza popular, attracting visitors from Conference Lodge – aims to attract new markets to Kruger. The other provinces. These include park as a whole often experiences 80% occupancy rates, and so festivals held in Dullstroom, with the planned new conference centre due to hold up to 5 000 the Sabie Forest Fair, the Lowveld Show and the InniBos delegates, new accommodation has to be built. The new plan envisages a hotel replacing six tourist chalets. The Arts Festival. The Sasol Rally has a long anticipated cost of the project is R164-milllion. Another R125-million project on the banks of the Crocodile River tradition and the forested will see a Radisson Blu Safari Resort open inside the boundaries areas around Sabie, Graskop of the Kruger Park. The target market for this new development is and White River make for ideal South Africa’s emerging black middle-class. A South African Na- rallying conditions. Time tritional Parks (SANParks) document reports that the annual spending als are held in Nelspruit, with power of this group in 2009 was R237-billion. Research has shown the Mbombela stadium being that this group wants full-service resort-type accommodation. the central point of activities. The building of new venues within the park has naturally Ermelo is the hub for the Rally attracted some criticism but SANParks states that it has no of South Africa, which takes intention of harming its own good record of upholding the highest place in May. These and other environmental ethics. events make up the annual calendar of rallying events, the Sasol South African Rally Championship. Each of these Mpumalanga towns receives an economic boost when drivers and their teams arrive to prepare for each stage. Number of slot machines: 1 104 Cyclists are also well caMoney wagered: R2.6-billion tered for in Mpumalanga. The Gross gambling revenue: R146-million provincial government is hopLevies: R10-million ing to leverage the sporting SOURCE: Mpumalanga Gambling Board profile gained for the province SLOT MACHINE NUMBERS For the period 1 April – 30 June 2012 mpumalanga Business 2013/14 40 destination overview by the 2010 Soccer World Cup to make Mpumalanga even more well known as a sporting destination. The Chile national team made their camp for the tournament at one of Mpumalanga’s upmarket venues, Ingwenyamane Lodge. A specific spinoff from the World Cup is that a Sports Academy will be established in the province. An initiative of the provincial government, it will be built on land in the Emakhazeni Local Municipality and will be supported by experts from Portugal. Ka Seme was a leading educationist who became the leader of the African National Congress in the 1930s. Cultural tourism in the Nkangala district is being promoted as a way of uplifting communities, but there are many opportunities to expand this across the province, especially as the diverse cultures of the Swazi, Ndebele, Pedi, Tsonga, Afrikaans, English and Zulu people are all present in Mpumalanga. A film office is also to be set up as part of the drive to turn the province’s rich cultural heritage to good account for job creation and the development of a film industry in Mpumalanga. A joint marketing initiative with Thompsons Holidays plans to further increase visitor numbers. Provincial parks and game reserves have received investment injections, with Manyeleti near the Kruger Park and Songimvelo south of Barberton receiving priority. The latter park is the focus of a transfrontier project connecting Songimvelo with its Swazi counterpart, Malolotja. MEC for Economic Development, Environment and Tourism Norman Mokoena said in his 2011/12 budget speech that the province’s growth plan ‘puts tourism and the creative industries and culture sector at the core of our job creation efforts and is a critical driver’. A R186-million investment in the expansion of The Ridge Casino in eMalahleni created 75 new jobs with a further 2 449 temporary jobs having been created for the duration of the building work. Additions to the associated StayEasy Hotel boosted the region’s hotel room capacity by 135 rooms. Gambling is an important revenue earner for provincial government, and the granting of a 40-machine site operator licence in 2010 to Taba-Gare Lydenburg was an important event. Apart from gambling, the Mashishing entertainment centre caters for children with a games arcade and it has restaurants, shops and kiosks. Tourism strategy The provincial government of Mpumalanga has 15 priority investment projects, all of which have been showcased to potential investors at a dedicated conference. These include: • A cable car for transporting tourists over a part of the Blyde River Canyon • A cantilevered glass walkway at God’s Window at Blyde River Canyon • An amusement park at Loskop Another important provincial initiative relates to the establishment of a Provincial Heritage Liberation Route, incorporating sites important to the struggle for democracy in South Africa’s history. A statue commemorating Dr Pixley Ka Isaka Seme was erected in the local municipality that bears his name in Daggakraal, Volkrust, in April 2012. online resources Mpumalanga Gambling Board: www.mgb.org.za Mpumalanga Tourism & Parks Agency: www.mpumalanga.com National Department of Tourism: www.tourism.gov.za Peace Parks Foundation: www.peaceparks.org South Africa.info: www.safrica.info South African National Parks: www.sanparks.co.za South African Tourism: www.southafrica.net South African Tourism Services Association: www.satsa.com Tourism Enterprise Partnership: www.tep.co.za 41 mpumalanga Business 2013/14 contents key sectors Overview of the main economic sectors of Mpumalanga. Tourism38 Agriculture and agri-processing 44 Sugar50 Forestry and paper Oil and gas 52 54 Mining58 Chemicals 62 Manufacturing63 Steel66 Engineering71 Transport74 Construction and property 78 Energy82 Water84 Banking and financial services Development finance and SMME support Education and training Business organisations National Government Mpumalanga Provincial Government Mpumalanga Local Government 94 98 102 70 112 118 126 KWAZULU-NATAL Business 2013/14 overview Agriculture and agri-processing Macadamia nuts are proving an excellent crop for export. The agricultural sector accounts for 3.3% of Mpumalanga’s gross domestic product. M pumalanga 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. Big companies cultivate maize, sugar, timber, vegetables, fruit and tea on a large scale and are active in the raising of poultry and cattle. Large commercial farmers account for the bulk of crop and livestock production. Macadamia nuts have grown in popularity as a crop for export exponentially in recent years. The sector accounts for 3.3% of the gross domestic product (GDP) of the province and for nearly 12% of employment. Separate overviews of the sugar and forestry sectors appear elsewhere in this publication. The provincial government of Mpumalanga has instituted a support programme for farmers in terms of its Comprehensive Rural Development Programme (CRDP). The Masibuyele Esibayeni Programme distributed 2 000 animals in the course of 2011/12 in order to improve the breeding stock throughout the province. There is also a crop-massification programme. mpumalanga Business 2013/14 sector insight Small-scale farmers are to be contracted to supply the school nutrition scheme. • A new satellite campus for agricultural studies has opened. • The Masibuyele Esibayeni Programme distributed 2 000 animals to improve the province’s breeding stock. Companies Westfalia is a diversified agricultural group that runs extensive operations in the 44 overview province. The group’s South in Mpumalanga. British American Tobacco South Africa (BATSA) African operations sold more has about 65% of the legal domestic cigarette market and its than five-million cartons of factory in Heidelberg (in neighbouring Gauteng) makes about avocados (50% of the coun- 26-billion cigarettes every year. In 2011, South Africa produced try’s export volume) and seven- about 15-million kilograms of tobacco. million cartons of mangoes in While downstream production facilities exist in the province, 2011. Westfalia is a subsidiary much more can be done to beneficiate the region’s rich natural of the Hans Merensky Group resources: fruit-juice blending, sugar byproducts, processing of and most of its holdings are sauces, oils, confectioneries, canned products and cattle feed. in the neighbouring province Excellent returns on investment are anticipated given the close of Limpopo. proximity of the province to the economic heartland of South Umbhaba Estates is one Africa to the west and the international port of Maputo to the east. of the biggest banana growThe drier Highveld region with its cold winters supports crops ers in the province. An idea such as cereals, legumes and nuts. There is extensive irrigation of the size of the operation in the Loskop Dam area. Ermelo in the centre of the province is can be gauged from the fact one of South Africa’s main centres of sheep farming and wool that Umbhaba runs its own production. Standerton in the south-west is a dairy centre and Piet rigs and trailers – 36 of them Retief in the south-east concentrates on sugar and tropical fruit. – and four 70-seater buses for Subtropical fruit flourishes in the Lowveld with the town of staff transport. Nelspruit being a major citrus producer. Mangoes, avocados, Fresh fruit and nut supplier pecan and macadamia nuts, bananas and papayas also thrive. Halls has developed a coun- The Subtropical Fruit Growers’ Association represents about 400 trywide reputation since it was avocado growers. Subtropical fruit altogether has a combined incorporated as a company turnover of R950-million and employs about 13 000 people. in 1921. In 2012, Halls’ MpuMixed farming and potatoes, sweet potatoes and beans are malanga operation (Mataffin) mostly found in the southern and western parts of the province. produced an avocado crop of Between them, the high-lying areas of Mpumalanga and the Free about 1 300 tons, 37% of the State account for 40% of South Africa’s potatoes. company’s output. Nelspruit is the location of one of South Africa’s premier reEurope buys most of Halls’ search institutions, The Agricultural Research Council – Institute 1.6-million cartons of exports for Tropical and Sub-Tropical Crops (ARC – ITSC) in Nelspruit is (4kg equivalents) and this rep- a leader in the field of research. Specialising in crop varieties and resents about 60% of produc- research into the origin and cure of diseases, the ITSC has had tion. The company was South a number of successes with avocados (new root stock), coffee Africa’s second-biggest ex- yields and banana cultivars. porter of litchis in 2011/12 and The Lowveld Agricultural College offers a range of diplomas total production is about 850 in Nelspruit. A new satellite facility is being developed in the tons in a good year. Nkangala District Municipality on the site of the old Marapyane Halls cultivates 375 hectares College of Education near Siyabuswa. The college offers three(ha) and has another 1 400ha year diplomas and two-year certificate courses in crop production under management. The Mat- and animal husbandry. Some students go on to study further safeni Trust is the company’s aspects of agriculture at North-West University. biggest outgrower and exports The Buhle Farmers’ Academy near Delmas runs successful in the region of 300 000 cartons training for existing farmers. Trainers like Mposa Agricultural every year. Consultants provide SETA-accredited courses and the academy About a quarter of South Af- claims that just 8% of its graduates have remained subsistence rica’s tobacco crop is cultivated farmers, with 53% producing at a commercial level. Funders 45 mpumalanga Business 2013/14 overview include Monsanto Fund (the US), the Maize Trust, Standard Bank, Tongaat Hulett Starch and Omnia. Macadamias Mpumalanga has more than two-million macadamia trees. Growing conditions for this popular nut are ideal in the Lowveld region, and the area’s farmers have been quick to respond to growing global demand for macadamias. The value of the sector in 2011 was given as R850million by the South African Macadamia Growers’ Association. About half the country’s trees are in Mpumalanga, with Limpopo being the other big grower. The main growing area is between Hazyview and Barberton. About 95% of annual production is exported, primarily to the US, Europe and Asia. There are about 450 farmers growing the nuts and there are 14 cracking factories in South Africa. The sector employs Crops Grain Mpumalanga produces one-million tons of maize from 291 788 hectares. About 53 000 tons of wheat and 33 000 tons of sorghum are produced annually. Soya beans More than half of South Africa’s soya-bean crop is produced in Mpumalanga’s Highveld areas. National annual production levels are between 400 000 and 500 000 tons of soya bean but the potential for producing much more exists, particularly in the light of moves within the alternative energy field to use soya bean as a feedstock. Fruit Subtropical fruits are farmed in large quantities. Mpumalanga accounts for about 21% of South Africa’s citrus production and a third of its export volumes, with Valencias being the province’s most popular varietal and Nelspruit being the centre of the sector. Avocados, litchis, mangoes and bananas thrive in the province. Hazyview is an important source of bananas, with 20% of South Africa’s production originating in this district. About 110 000 tons of avocados are produced in South Africa every year, with a high proportion of those coming from Mpumalanga. About 45% of the crop is exported. Deciduous fruits are cultivated in smaller quantities. The village of Tonteldoos north of Dullstroom hosts an annual peach festival that includes liquid marvels such as peach mampoer. About 15 000 tons of table grapes are produced in the province annually and Mpumalanga produces its own wine. A specialist fruit that does well in the province is the marula. The marula fruit makes a popular beer and is used in the production of Amarula Cream, a liqueur that has done well on the international market. The one-day Brondal Avocado Festival held in Nelspruit is a good showcase of the region’s many varieties. Nelspruit’s Lowveld Agricultural Show in late July is a major date on the agricultural calendar. The province’s Highveld regions have good crops of navels and Valencias (Marble Hall), pomegranates (Burgersfort), kiwi fruit (Lydenburg), melons (Bronkhorstspruit), prickly pears or cactus pears and raspberries (Belfast) and blueberries (Carolina). mpumalanga Business 2013/14 46 profile Mposa Agricultural Consultants The aim of Mposa Agricultural Consultants is to facilitate the formation and development of a self-reliant and integrated black farming community. Mission To be an alternative means of developing farming in black farming communities through theory and hands-on training, by highly experienced national and international instructors, so as to improve the farming business sector within black communities in Southern Africa. Mposa Agricultural Consultants (MAC) *(Agriseta Accredited) is important to South African communities as it has adopted the concept of recognising the skills and knowledge within the community, and using them to promote and develop a better farming programme for clients. Farmer capacity-building programmes have been found to be the best source of creating jobs. MAC has realised that an academic education qualification does not bring the answer to poverty and starvation, but a supportive mind with a sound farming business background does. • • • • • • • negotiation, conflict resolution and leadership skills) To train farmers in fencing To coordinate farmer training, and provide support services to groups and individuals To bring awareness to the importance of the overall development of agriculture in South Africa To encourage emerging, small-scale and low external input farmers to engage in farming activities as part of the country’s economic growth To train farmers in business management and business plan development To train farmers in co-operative development To train farmers in marketing of quality food to the national and international markets Aspirations To own a farming academy that will deal in theory and practical training of farmers in farm machinery use, tractor driving, dry-land crop, livestock, poultry and vegetable farming, throughout South Africa. Major objectives • • • • • • To facilitate the development of a good institutional framework To train project members in constitution writing To facilitate the registration of co-ops and related business/entities To train members in how to run meetings and facilitate exchanges To train individuals and farmer groups in theory and practical skills To train farmers in life skills (communication, contact info Key contact person Alphons Dube Cell: +27 82 714 8011 Fax: 086 633 7374 Postal address: PO Box 2320, Middelburg 1050 Email: email@example.com 47 mpumalanga Business 2013/14 overview about 4 500 people, of which Dairy and poultry do well in the southern parts of the province. 1 500 are permanent employees. A number of poultry-production companies have large facilities in The South African Sub- the Standerton-Volksrust area. The town of Ermelo is the centre tropical Growers’ Association of one of the country’s most important sheep-farming districts, manages the business of four with the export of wool greatly benefiting the province and country. growers’ associations, including The province is home to one of South Africa’s largest pig farms, macadamia growers. Kanhym, near Middelburg. Karan Beef recently built a large abattoir in Balfour to service its massive feedlot in neighbouring Tobacco Gauteng. Up to 1 800 head of cattle can be processed every Much of South Africa’s total day at the facility. annual production of about Goats are an important source of protein and milk for many 34-million kilograms of to- of the rural population and the raising of goats is widespread, bacco, especially Virginia to- especially in traditional areas. bacco, takes place in the northwestern parts of Mpumalanga, and in neighbouring Limpopo. Crops Several of Mpumalanga’s tobacco farmers have switched Vegetables to table grapes or citrus in Potatoes and potato seed thrive in Mpumalanga’s fertile soil, with recent years. one operation in the higher reaches of the Drakensberg range producing more than 2 000 tons of seed every year. Tomatoes, Flowers and plants onions and cabbage are also farmed profitably. Crops produced for export in Mpumalanga include cut Cotton flowers, pot plants and nurs- Mpumalanga is a relatively minor producer in South African terms, ery plants. Snaps, lisianthus but there are areas of the province where the crop is important. and delphiniums are among It is grown mostly under dryland conditions in Marble Hall. The the flowers that thrive. The province has 1 500 hectares of dryland under cotton. Yellow Arum Lily Festival is held annually in November in Roossenekal. Gerberas and online resources tulips are also cultivated in large quantities in this area with Agricultural Economics Association of South Africa: Hadeco being a major supplier www.aeasa.org.za ARC-Institute for Tropical and Subtropical Crops: of bulbs and cut flowers. The www.arc.agric.co.za annual Tulip Festival in spring Citrus Growers Association: www.cga.co.za on Hadeco’s bulb farm is a Deciduous Fruit Producers Trust: www.dfpt.co.za major attraction in the eMakhaFresh Produce Exporters’ Forum: www.fpef.co.za zeni (Belfast) region. Mpumalanga Department of Agriculture, Rural Development and Land Administration: www.mpu.gov.za National Department of Agriculture, Forestry and Fisheries: Livestock www.daff.gov.za Perishable Products Export Control Board: www.ppecb.com About 14% of the province’s South African Cactus Pear Association: www.cactuspear.co.za land area is natural grazing South African Macadamia Growers’ Association: www.samac.org.za land. Products include beef, South African Subtropical Growers’ Association: www.subtrop.net mutton, poultry, dairy and wool. mpumalanga Business 2013/14 48 FREE MEMBERSHIP OF FRONTIER MARKET NETWORK The Frontier Market Network is the largest online business community focused on investment and business generation in fast-growing markets. GET CONNECTED. JOIN TODAY. Membership is FREE and beneﬁts include: • • access to a database of investment and business opportunities access to the latest market intelligence including market updates, country and regional proﬁles, news and analysis and research reports • connection to a network of over 120 000 people, companies and service providers operating in frontier markets access to a range of services required to complete transactions such as legal, research or due diligence services • Register at www.frontiermarketnetwork.com to begin your membership overview Sugar Small-scale farmers are delivering more sugar cane for production. M pumalanga has the second-biggest sugar industry in South Africa, after KwaZulu-Natal. Tsb Sugar runs three mills, two of which have refining capacity, and employs about 4 700 people. More than 1 400 farmers (commercial and small-scale) deliver sugar cane to the company. A wholly owned subsidiary of Remgro, Tsb Sugar has been increasing the amount of cane it takes from community trusts and small-scale growers. In 2011, the proportion of land used to harvest cane from small-scale growers on community land grew to 15%, with 64% coming from commercial farmers and community trusts and 21% from Tsb’s own land (BDLive). While national production figures have been on the decline, Tsb’s three mills (including Pongola in northern KwaZulu-Natal) crushed marginally more sugar cane in 2011/12 than they did the year before (5.1-million tons against 4.9-million tons). The expenditure of R6.5-billion in Mozambique will greatly increase Tsb’s land holdings and its refining capacity. Tsb currently has milling capacity for 5.7-million tons of cane per year. The Selati retail sugar brand is one of the most popular in the country. The sugar retail label is Selati and Tsb also runs an animal feed factory, Molatek. About 44 000 hectares in the province is under sugar cane. Commercial farmers account for 27 000 hectares, emerging farmers for 9 500 hectares and Tsb Sugar had 8 500 hectares of its own. Most of the Tsb land has been transferred to claimant communities and Tsb currently owns 2 000 hectares under cane. Large areas of land planted with cane have been transferred to claimant beneficiaries while some land is still subject to conflicting claims between claimant communities. sector insight Tsb Sugar will spend R6.5-billion on new operations in Mozambique. Year 2008/09 2009/10 2010/11 2011/12 Tons produced in south africa 2 260 244 2 178 543 1 909 236 1 822 488 Saleable sugar production. SOURCE: SA Cane Growers’ Association. online resources South African Cane Growers’ Association: www.sacanegrowers.co.za South African Sugar Association: www.sugar.org.za South African Sugar Industry and Sustainable Development: www.sugarindustrydev.co.za Sugar Milling Research Institute: www.smri.org One such claim was settled in 2010 with the sale by Crookes Brothers Limited of its Komati Estate to the state for R200-million. The company is currently running the irrigated estate on a lease. The Akwandze Fund, an initiative of the Liguguletfu Cooperative and Tsb Sugar, makes loans for small-scale farmers. Liguguletfu came into existence with small investments from each of the co-op’s 889 members, which eventually amounted to R5-million in share equity. Tsb Sugar matched this rand-for-rand. Farmers must join a savings scheme to belong, and Akwandze now has 1 200 customers. mpumalanga Business 2013/14 50 profile Tsb Sugar Holdings Tsb Sugar Holdings is committed to contributing to empowerment, economic growth and development of communities. Tsb is one of the largest sugar producers in South Africa, producing approximately 30% of South Africa’s total sugar output. from byproducts of the sugar-manufacturing process. The company supports approximately 1 800 commercial and small-scale growers who supply 80% of the sugar cane to its factories from Founded in 1965, it is a wholly owned subsidiary 55 000 hectares of irrigated land. Tsb has been of Remgro, which is listed on the Johannesburg actively engaged in the land-reform process, and Stock Exchange. Tsb is located in what is com- currently 62% of the cane area in Nkomazi is under monly described as the ‘northern irrigated’ region land-reform beneficiaries. of the South African sugar industry and is engaged Tsb Sugar Holdings consists of South African and in sugar-cane agriculture, sugar manufacturing, international operations. Its South African holdings, marketing, sales and distribution. held through Tsb Sugar RSA, include Shubombo Agricultural Services (which has a 50% stake in Tsb operates three sugar mills: Malalane, Komati three farming service companies), Quality Sugars and Pongola, with the Malalane and Pongola mills and Akwandze Agricultural Finance (Pty) Ltd, a each having a refinery and a packaging plant. 50:50 partnership with Liguguletfu Co-operative Tsb’s total production capacity stands at approxi- Ltd. Its international subsidiaries, held through mately 700 000 tons of sugar per annum.Tsb’s Tsb’s investment holding company, Tsb Sugar head office is located at Malelane, approximately International (Pty) Ltd, comprise: Booker Tate, The 60km east of the town of Nelspruit. The com- Royal Swaziland Sugar Corporation and Mananga pany’s main production takes place in the area Sugar Packers. between the Kruger National Park to the north, Swaziland to the south and Mozambique to the east, where the Malalane and Komati sugar mills contact info are located. Pongola Mill is situated in the northern region of KwaZulu-Natal and lies close to the Key contact people: southern border of Swaziland. John du Plessis, CEO Vusi Khoza, General Manager Corporate Affairs Tsb markets its sugar under the Selati brand to Tel: +27 13 791 1154 Tel: +27 13 791 1000 industrial and retail customers through its majorityEmail: firstname.lastname@example.org owned subsidiary, Quality Sugars. Tsb’s animal Website: www.tsbsugar.co.za feeds division, Molatek, produces animal feeds 51 mpumalanga Business 2013/14 overview Forestry and paper Extensive forestry plantations supply a sophisticated sector. sector insight York Timbers half-year income rose above R1-billion in 2012. • Mondi is implementing a forestry ecosystem management plan. • York Timbers is budgeting R1-billion for expansion. Global paper giants Sappi and Mondi have extensive plantation holdings and mill operations in the province, while Komatiland Forests, a 100%-owned subsidiary of state company SAFCOL, has big plantations in several districts. TWK is a R6-billion agricultural company with its headquarters in Mkhondo (Piet Retief). Pr i vate r a i l o p e r ato r Sheltam specialises in transporting paper and pulp, and has extensive operations in Mpumalanga. Sappi is restructuring its South African operation, which includes the closing of a paper plant in the Eastern Cape. ork Timbers is reporting increases in production volumes, revenue and profit. This Sabie-based company, together with large global brands Sappi and Mondi, are the largest companies operating in the forestry and paper sector, which accounts for 8% of Mpumalanga’s gross geographic product. The province has South Africa’s biggest sawmill and its largest panel and board plant, together with the biggest integrated pulp and paper mill in Africa. The forestry sector comprises logging, saw-milling, wood product and pulp and paper manufacture. Pulp and paper are the main industry exports, along with sawn lumber, wood chips and wattle extract. The major export markets are the Far East, Europe and the UK. York Timbers has 61 000 planted hectares, five sawmills and Forestry a plywood plant. In the half-year to June 2012, the company recorded turnover of R1.1-billion, increased production volumes in T h e S ou th Af r ic a n fo rplywood (8%) and lumber products (14%), with a resultant profit estry industry is valued at R40-billion per year. The return of R138-million. York Timbers is planning to spend about R1-billion on the National Depar tment of Agriculture, Forestr y and upgrade of its Sabie plant. mpumalanga Business 2013/14 Y 52 photo: Sven Musica overview Fisheries reports that South Some areas have been set aside to cater for biodiversity and Africa has a shortage of sawn endangered species. timber and that this problem Sappi Forests’ purchase in 2010 of the 14 500-hectare is set to get worse. Timber Sjonajona plantation takes the paper and pulp manufacturer’s volumes are down quite sub- plantation ownership in Mpumalanga up to 229 000 hectares, of stantially from 2008 when 19- which 143 400 hectares is planted. million tons (mt) were harvestThe Industrial Development Corporation has a stake in York ed, but, after dropping to 15mt Timbers and a 42.6% share in Hans Merensky Holdings, a in 2010, the figure rose again company with timber and processing interests in three provinces. Merensky is responsible for 20% of South Africa’s sawn in 2011 to 16mt. T h e f o r e s t r y s e c to r pine lumber. accounts for 12.3% of the naThe commercial-forest sector offers attractive business option’s agricultural GDP (almost portunities for small-scale entrepreneurs, particularly small-scale back to the high figure of 13% growers, contractors and sawmillers. The pulp and paper industry in 2004/05) while the forestry- is ideal for recycling. Forested areas lend themselves to beeproducts sector continues to keeping and honey-making. contribute about 1% to naPG Bison has a sawmill in Empuluzi. Mondi’s softwood sawmill tional GDP (0.8% in 2010/11), in Sabie is South Africa’s largest of its type. Sonae Novoboard’s as it has done for many years panel and board plant is likewise impressively big. (Forestry South Africa). The biannual Sabie Forest Fair is a major event on the forestry Mpumalanga has the ideal calendar and the social calendar of the region. climate and topography for forests. Sabie and Graskop represent the hub of the in- Pulp and paper dustry, but commercial forests are also found to the east and Wood from the Sjonajona plantation will help Sappi achieve south along the Swaziland self-sufficiency at its massive Ngodwana Mill, which has annual border. About 11% of the land capacity to produce 140 000 tons of newsprint and 240 00 tons mass is forested, with 4% of of kraft linerboard and white-top linerboard. Although local demand is dwindling, the export market for that being natural forest. The province is the national leader pulp and paper from South Africa remains strong. Pulp producin total hectares under forest tion figures have been on the rise since 2007 and companies (514 000) and export earnings. like Mondi are increasingly focusing on pulp export because of The Low veld Botanical better margins. Gardens in Nelspruit has more than 650 of the 1 000 trees indigenous to South Africa. online resources The Council for Scientific and Industrial Research’s Forestry South Africa: www.forestry.co.za (CSIR) forestry-research unit National Department of Agriculture, Forestry and Fisheries: aims to improve tree breeds. www.daff.gov.za Mondi has instituted an Paper Manufacturers of South Africa: www.thepaperstory.co.za ecosystem-management plan South African Institute of Forestry: www.saif.org.za throughout its forestry operaTechnical Association of the Pulp and Paper Industry of South Africa: tions with the intention of betwww.tappsa.co.za ter managing the impact its Wood Foundation: www.thewoodfoundation.co.za work has on the environment. 53 mpumalanga Business 2013/14 overview Oil and gas Sasol’s Secunda complex is an important national asset. he Sasol Synfuels refinery, which forms part of the Sasol complex at Secunda, is the only commercial coal-to-liquid fuel plant in the world, and forms a vital part of South Africa’s oil and gas sector. Sasol wants to regularly produce 7.3-million tons of synthetic fuel, but levels have been just below that for the last two years. Sasol is an integrated oil, gas and chemicals company. Several of the company’s divisions have plants at Secunda: synfuels, oil, gas, nitro and polymers. Products manufactured at the Secunda complex include petroleum, paraffin, jet fuel, creosote, bitumen, diesel and lubricants. Gas byproducts include oxygen and acetylene, liquefied petroleum gas (LPG), and hydrogen and nitrogen. The primary feedstock for synthetic-fuel production is coal, and the plant is located in the heart of Mpumalanga’s coalfield region. Sasol is spending about R12-billion on expanding the capacity of the syn-fuels plant and on installing an oxygen plant and more Sasol Advanced Synfuel (SAS) reactors to convert gas feedstock to liquid fuel. Overall production will increase by about 3% by 2014. The first phase of another project, to run a new multi-product pipeline from Secunda to the Natref refinery at Sasolburg, will cost about R970-million. T Transnet Pipelines has launched a huge new multi-product pipeline. sector insight Air Liquide is building a R400million unit to service Evraz Highveld Steel & Vanadium. • Transnet Pipelines’ new multi-product pipeline has begun pumping fuel. Many of the big mining and manufacturing concerns in Mpumalanga have long-term contracts for the supply of gas with big gas companies. Evraz Highveld Steel & Vanadium terminated its long association with Afrox, which has closed its air-separation plant. Afrox Gas Sasol Gas is one of the four Sasol operations at Secunda, supplying natural gas to Sasol Synfuels and buying Sasol Synfuels’ methane-rich pipeline gas to sell to customers in Mpumalanga and KwaZulu-Natal. Natural gas is an inexpensive alternative to coal. Although the coal industry still has life in it (old fields are being rehabilitated and new ones created) it is a finite resource and South Africa’s growing energy requirements demand that alternatives must be explored. Petroleum Agency SA is the state agency responsible for promoting and regulating exploration and production of oil and gas in the country. Two methane-gas exploration rights have been granted to Highland Exploration in the Evander area in Mpumalanga. mpumalanga Business 2013/14 54 image: transnet engineering (NMPP) in January 2012, launching a new era for the transportation of fuels to the Highveld. The old pipeline was inaugurated in 1965. The NMPP will be able to carry about 26-billion litres of fuel every year. Refined products such as jet fuel, sulphur diesel and both kinds of octane petrol will be carried. Three pumping stations for the new line are located within the province and the cost of the project is R23.4-billion. The petroleum network has intake stations at both Durban refineries, while the gas pipeline runs from Secunda inland to Durban. The final phase of the project is now expected to be complete in 2015. A proposed pipeline from Maputo to Kendal through Mpumalanga has been delayed, partly due to the global Petroleum pipelines financial situation and to several environmental-impact South Africa has four major assessments that are taking pipeline networks: crude oil, longer than planned. gas, jet fuel and multi-product. Transnet Pipelines carried These pipelines pass through 18-billion litres (bl) of various Mpumalanga and are connect- fuels in 2010/11, and 16.7bl in ed to the refinery at Secunda. 2011/12, a figure that should The first litres of diesel fuel rise again to 17.7bl in 2012/13 ran along Transnet Pipelines’ as a result of the completion of new multi-product pipeline the first phase of the NMPP. has six distribution points in Mpumalanga. French company Air Liquide will supply the steel producer with gas for 20 years. This will entail building a R400-million air-separation unit on the Evraz site at eMalahleni (Witbank). The unit will process 770 tons of oxygen every day. Air Liquide’s 3 500 national customers include Sappi and Sasol and the company employs about 700 people. Eskom’s innovative underground coal-gasification (UCG) project puts the power utility at the forefront of exploring ways of using coal in a more environmentally responsible way. UCG is a process whereby coal is converted into a synthetic power-generating gas underground. online resources Petroleum Agency SA: www.petroleumagency.co.za PetroSA: www.petrosa.co.za Sasol: www.sasol.com South African National Energy Association: www.sanea.org.za South African Oil and Gas Alliance: www.offshoreafrica.co.za South African Petroleum Industry Association: www.sapia.co.za Transnet Pipelines: www.transnetpipelines.net 55 PETROLEUM AGENCY SA Petroleum Agency SA promotes and regulates ecologically sustainable exploration for and production of oil and gas in South Africa Description of business Petroleum Agency SA is a government agency mandated through the Mineral and Petroleum Resources Development Act (Act 28 of 2002) to promote and regulate exploration for and production of oil and gas in South Africa as well as to archive all geological and geophysical data related to such activities. The Agency reports to the ministry of Mineral Resources headed by Minister Susan Shabangu. Description of Services Through its designation in terms of the Mineral and Petroleum Resources Development Act, Petroleum Agency SA acts on behalf of the South African government. The Agency's services include the regulation of oil and gas exploration and production through contracting qualified exploration companies and monitoring performance in terms of technical work programmes, adherence to environmental management plans and attention to social and labour issues. The Agency also attempts to attract investment in exploration for oil and gas offshore and onshore South Africa through the evaluation of potential hydrocarbon resources and presentations of technical information and interpretations at national and international exhibitions, direct interaction with potential explorers and advertisements. Further services include the archiving of all geotechnical data and information produced through exploration and production efforts, and the facilitation of further exploration through the provision of this data to current and prospective explorers. The Agency also advises government on any issues relevant to oil and gas exploration and production in the country. Mpumalanga The growing interest in unconventional petroleum resources since 2004 has broadened the Agency's focus from offshore conventional hydrocarbon exploration to include onshore exploration for coalbed methane, shale gas and deep biogenic gas within the Karoo basins. In the coalfields of the northern provinces of Mpumalanga, Limpopo and North West, coalbed methane is potentially an important future source of energy. Historically, in South Africa's coal mining operations, methane gas discharge from coal has been a safety hazard and the primary cause of mine explosions. There is therefore the potential to create a symbiotic and synergistic relationship between exploration for coal and the exploitation of coalbed methane. If development of this resource is proven to be economically feasible in these regions it will have significant implications for their economic growth and development. Target Markets Domestic and international oil and gas exploration and production companies interested in exploring for conventional and unconventional oil and gas resources. Contact Details Key contact people: Mthozami Xiphu, CEO Lindiwe Mekwe, GM: Regulation Ntsiki Van Averbeke, GM: Promotion Tel: +27 21 938 3500 Fax: +27 21 938 3520 Email: email@example.com Physical address: 7 Mispel Road, Bellville, 7530 Postal address: P O Box 5111, Tygervalley, 7536 Website: www.petroleumagencysa.com overview Mining Coal and gold miners are investing in Mpumalanga. Mafube colliery is a 50/50 joint venture between Thermal Coal and Exxaro. I photo: anglo american n 2011, the mining industry in Mpumalanga created 19 000 new jobs, according to the provincial government. Growing demand for coal is persuading existing miners to invest in new shafts and to increase capacity, and the mining sector as a whole is attracting new investors. Eskom told South Africa’s parliament in 2013 that hundreds of millions of tons of coal are needed in the short and medium term to ensure stable electricity supply. Sixty percent of the utility’s supply comes from companies that have coal mines near to power stations (Exxaro, Anglo Coal and BHP Billiton) and these companies supply on a ‘cost plus’ basis. Short-term contracts are more expensive for Eskom, but these are growing in importance because the ‘cost plus’ suppliers have not been able to hit their targets. The province’s mineral resources are varied and several of the biggest diversified mining companies have multiple operations in Mpumalanga. Coal, platinum, gold and nickel are the province’s major mineral resources and all are in demand. South Africa no longer enjoys world dominance in gold production – both China and the US produce more ounces – but sector insight A R3.5-billion shaft has been opened at Sasol’s Twistdraai colliery. • Sephaku Cement has raised R1.95-billion to fund its building programme. • Anglo Coal SA opened the R4.2-billion Inyosi Zibulo Colliery in 2012. • The Burnstone gold mine is on the market. • Stonewall Resources plans to revamp Pilgrim’s Rest gold mines. it does produce 75% of the world’s platinum, 80% of its manganese, 73% of its chrome mpumalanga Business 2013/14 57 overview and 45% of its vanadium. Mpumalanga has significant resources of each of these minerals, and several others. Thaba Chueu Mining (a subsidiary of Spanish company Grupo FerroAtlantica) purchased the SamQuarz silica mine near Delmas in 2011 from Petmin. The mine, which produced more than a million tons of silica and chert in 2010/11, was sold for R259-million. The southern half of the eastern limb of the platinum-rich Bushveld Igneous Complex runs through the town of Burgersfort and south towards Lydenburg and Machadodorp. Deposits of chromite, magnetite and vanadium in this area are the basis of the ferroalloy complex in WitbankMiddelburg and Lydenburg. Nkomati Mine is South Africa’s only pure-nickel operation. The province’s coalfields are in the south and west of the province. At national level, the mining and mineral sector accounts for 60% of the country’s exports and employs about 500 000 people (National Department of Mineral Resources). In terms of new mining legislation working its way through the national parliament, new mining licences will include a provision whereby some of the resources mined must be made available to local manufacturers. The idea behind the Mineral and Petroleum Re source s D eve lopme nt Act is to boost the mineralsbeneficiation sector, which, mpumalanga Business 2013/14 it is believed, will increase employment levels and stimulate economic growth. The first ‘pilot commodity value chain’ has been developed by the National Department of Mineral Resources and applies to the iron and steel industry. Future value-chain strategies will be developed for energy (coal, uranium), catalytic converters, jewellery and pigment production. Coal In November 2012, Anglo American Thermal Coal and Eskom agreed that the miner would provide the massive new Kusile power station with coal for 40 years. Anglo’s planned New Largo mine will be built in synch with developments at Kusile. The first lots of coal for the power station will come from Anglo’s R4.2-billion Inyosi Zibulo Colliery, which opened in Ogies in 2012. Mpumalanga accounts for 83% of South Africa’s coal production and is the third-largest coal-exporting region in the world. The coalfields of the province feed a number of power stations situated nearby. The town of eMalahleni (Witbank), in Nkangala District Municipality, is at the centre of the coal industry. The new shaft at Sasol’s Twistdraai colliery, Thubelisha, will add 10.6-million tons to the company’s current production volumes of about 40-million tons, when it is operating at full steam in 2018. About 3.8-million tons will go towards the manufacture of synthetic fuels at Sasol’s Secunda plant and about four-million tons will be exported. The 3.5-billion expenditure on Thubelisha is part of a eight-year plan to invest R14-billion in replacing or extending the life of old mines. Another company planning to revive an old mine is Sentula Mining: its Nkomati mine is to be brought back into production. Nkomati is part-owned by the Mpumalanga Economic Growth Agency (MEGA). BHP Billiton Energy Coal SA (Becsa) has three existing collieries in the province and is engaged in rolling out two more big projects. These entail doubling capacity at Klipspruit and improving efficiencies at Middelburg to such an extent that it will extend the life of the mine by 10 years. Former coal traders Wescoal became coal producers in 2010, and are increasing their exposure to mining. Wescoal is applying for several new coal-mining rights in Mpumalanga. This includes the company’s sites at Silverbank, Vlaklaagte and Verblyden, and at Vlakvarkfontein, from where it hopes to supply Eskom with coal. Anglo Coal is in a joint venture with black empowerment company Exxaro to run the Mafube Colliery east of Middelburg. Coal is sold to the nearby Arnot power station and the mine has a production target of six million tons. 58 overview Coal of Africa Limited (CoAL) is developing a project at Mooiplaats, in the Ermelo coalfields in the eastern Highveld, which Platinum group metals will serve the Eskom power facility at Camden. Production is cur- (PGMs) rently at 30 000 tons per month and is expected to reach 3.2-million South Africa supplied 4.5tons per annum by 2014. ArmCoal is a black-owned coal company that arose out of a deal million ounces of the six-million between Xstrata Coal SA and African Rainbow Minerals Limited needed by the world in 2010, (51%). ArmCoal was the vehicle used in the creation of the large according to marketing agency Johnson Matthey. open-cut thermal coal mine at Goedgevonden. The Two Rivers Platinum Exxaro has six coal mines in Mpumalanga and the company produces 45.2-million tons per annum of power station, steam and Mine is located near where coking coal. Grootegeluk is the world’s largest coal-beneficiation platinum was first discovered complex. The company has been focusing more clearly on coal in the 1920s. African Rainbow Minerals (ARM), South Africa’s in recent months, rather than mineral sands and other minerals. biggest black-empowered mineral-resources company, Ferrous metals has a 55% share in the project, with Impala Platinum Holdings Assmang, the joint venture between ARM Ferrous and the JSE- (Implats) holding the balance. listed Assore, operates a chrome mine (Dwarsrivier) and a ferJubilee Platinum is building rochrome plant where chrome alloys are made (Machadodorp) in a platinum-concentrate smeltMpumalanga. The mine has been converted from an operation run ing furnace at its Middelburg by a contractor to an owner-operator mine. Reduced demand for site. As the exclusive licence stainless steel in the recession meant that some of the furnaces holder of the rights to Mintek’s ConRoast, Jubilee will use that at Machadodorp had to shut down. The Manganese Metal Company (MMC) in Nelspruit is the technique as it is well suited to largest producer of pure electrolytic manganese in the world. treating concentrate with high MMC is owned by Samancor (51%) and Bilston Investments chrome content. Aquarius South Africa acowns the balance. quired the Blue Ridge platinum group metals project Nickel south-east of Groblersdal in the course of 2009. Most of the R3.9-billion that has been committed to the upgrade In 2011, Aquarius continued project of the Nkomati operation of ARM Platinum and Norilsk to follow its aggressive acquisition of PGM resources. First Nickel Africa has been spent. A full nickel off-take agreement was entered into in the course it paid about $109-million for of 2010 with Metal Trade Overseas (MTO). A 375 000-ton- Afarak Platinum and then purper-annum concentrator plant has been built, allowing for greater chased some of the rights to volumes to be milled. Production levels are rising on the back of the Booysendal project from increased global demand. Northam. The rights to mine Niger Uranium Limited has entered into a joint venture with at Booysendal, which is adSouthern African Nickel Limited (San) to explore nickel opportuni- jacent to Aquarius’ Everest ties near Burgersfort in Mpumalanga. Exploration is going to be property near Lydenburg, done for the joint venture by Pangea Exploration. cost R1.2-billion with a life expectancy of 50 years. 59 mpumalanga Business 2013/14 overview Gold Great Basin Gold applied for business rescue in 2012, and its subsidiary, Southgold Exploration, owner of the gold mine Burnstone, was asking for creditor protection. Burnstone has six-million ounces of proven and probable reserves. A Business Day headline in March 2013 announced ‘Wits Gold preparing bid for Burnstone’. Wits Gold mines an asset at Balfour. Old mines around Pilgrim’s Rest are the subject of a bid by junior miner Stonewall Resources to boost its current gold output of 11 000 ounces per year. It aims to reach 40 000 ounces by starting mining again at a string of mines: it has prospecting rights on 43 old mines. Chinese company Shandong Qixing Iron Tower has put in a bid to buy the Australian company for $140-million. There is renewed interest in the Barberton Greenstone Belt. Having listed on the Australian stock exchange, Vantage Goldfields is going underground at its existing project at Lily and has bought Barbrook because it has a processing plant. This plant has been renamed Central Metallurgical Complex. Galaxy and Gold Hill mine currently produce 20 000 ounces of gold per year. The Galaxy company is using new technology to get the ore body out of the sulphide minerals in which it is embedded. In 2009, Pan African took full mpumalanga Business 2013/14 control of Barberton Mines, allowing the company to improve its BEE position and increasing its annual gold output to 100 000 ounces. The company announced in 2010 that new finds at Royal Sheba will extend the life of Barbarton Mines by another 15 years. Cement Sephaku Cement is building a 1.2-million-ton cement-grinding plant in the Delmas area. In 2012, the company announced that it had secured R1.9-billion in debt financing for its two major projects: a cement-production plant is being constructed at Aganang in the North West Province. Clinker for the Delmas plant will come from Aganang and flyash will be sourced from the Sephaku classification plant at the Kendal Power Station, located about 35km to the east of Delmas. Fly-ash is an extender in the final cement product. This development is partly a response to increased activity in the power sector (Eskom’s build programme) but the company is also very upbeat about the country’s housing sector and the national government’s infrastructure programme. The company was responsible for a 1.2-million-ton fly-ash-beneficiation plant at the Kendal power plant. Iron ore Motjoli Resources announced in April 2011 that it plans to develop a large iron-ore project near the south-eastern Mpumalanga town of Mkhondo (Piet Retief). Subsidiary Mkhombi Mining says that the Cascade Iron Ore project has a defined resource base of onebillion tons, and that another billion may be found after detailed exploration. Developing the project would cost about R11-billion and funding still has to be found. Sales of iron ore to China have taken off in recent years, and ArcelorMittal’s steel-production plant at Newcastle – which produces 1.6-million tons of steel annually – is nearby in northern KwaZulu-Natal. online resources Aluminium Federation of South Africa: www.afsa.org.za Chamber of Mines South Africa: www.bullion.org.za Geological Society of South Africa: www.gssa.org.za Mining Qualifications Authority: www.mqa.org.za Mintek: www.mintek.co.za National Department of Mineral Resources: www.dmr.gov.za South African Mining Development Association: www.samda.co.za 60 profile Verder Pumps South Africa Verder Pumps SA was established in 2002 and has since grown to become a leading pump supplier throughout South Africa and sub-Saharan Africa. Description of business Verder Pumps SA (VPSA) has a reputation for providing reliable, cost-effective, efficient and long-lasting pumping solutions. VPSA specialises in the supply of positive-displacement pumps to a variety of industries, including mining, water and wastewater treatment, chemical processing, food processing, agriculture and many more. costs, low downtime for maintenance and minimal o p e r ati o n a l downtime. Mag drive centrifugal pumps Verdermag – a leak-free pump The Verdermag pumps offer a flow range from 0.3 to 300m3/h between -29˚C and 120˚C, and maximum operating pressure of 21 bar – ideal for pumping heavy-duty chemical applications and capable of handling solids and volatile liquids. The sealless design guarantees a leak-fee operation. Some of the product features are zero leakage and less wear and tear. Screw-channel pumps HUS – no clogging guaranteed HUS screw-channel pumps are excellent pumps for media containing long fibres. The design guarantees a blockage-free operation. Some of the product features are low maintenance cost and dry or submerged pumping. Pumps Peristaltic pumps Verderflex peristaltic pumps offer unrivalled performance in a tough and uncompromising environment. Some of their key features are no rotor breakage, unique hose design and no bearings, thus no replacement of expensive parts. Verderflex – a tough pump Ideal for handling abrasive liquids and slurries with a high solid content. Verderflex Dura – a reliable pump Combines the compactness of a close-coupled pump with all the benefits of the traditional longcoupled pump. Air-operated double diaphragm pumps Verderair – a versatile pump The Verderair (VA) double diaphragm pumps’ flow ranges from 0.1 up to 1 050 litres per minute and pressures up to 8.4 bar. The air-valve design guarantees a non-stalling operation, even at low pressure and does not need any lubrication. The pump can handle very abrasive products and it can run dry indefinitely without damage. Some of the benefits of the Verderair are reduced maintenance contact info Key contact people: Hannes Liebenberg, Sales Engineer Laetitia Moller, Marketing Manager Keith Gass, Managing Director Tel: +27 11 704 7500 Fax: +27 11 704 7515 Email: firstname.lastname@example.org Website: www.verder.co.za 61 mpumalanga Business 2013/14 overview Chemicals Investment in chemical-creating capacity is increasing. he huge Sasol complex at Secunda forms the base of Mpumalanga’s chemical industry. At the complex, Sasol makes a range of products for fertilisers, explosives and polymers. Sasol Solvents operates 12 plants. Kynoch makes fertiliser in Middelburg and Schoeman Estates has a plant in Marble Hall. Middelburg-based Solchem Industrial and Mining Chemicals is a specialist in making degreasers for mining and industrial applications. The Fluor Training Centre in Secunda is accredited by the Chemical Industries Education and Training Authority (CHIETA). T Sasol is spending Sasol Nitro opened a new limestone ammonium nitrate (LAN) plant in Secunda in October 2012. The investment by Sasol Nitro, a division of Sasol Chemical Industries, forms part of the group’s capital expenditure of R18.8-billion in South Africa in the 2012 financial year. Production of LAN fertiliser granules will increase to 400 000 tons per year. LAN is the preferred source of nitrogen fertiliser for agricultural products and crops. The new plant’s technology will ensure better quality granules. online resources Chemical and Allied Industries’ Association: www.caia.co.za Mpumalanga Economic Growth Agency: www.mega.gov.za National Department of Trade and Industry: www.thedti.gov.za Plastics SA: www.plasticsinfo.co.za South African Chemical Institute: www.saci.co.za South African Institution of Chemical Engineers: www.saiche.co.za mpumalanga Business 2013/14 62 image: sasol and geoff brown of planet kb The large Sasol complex is a vital part of the economy of the town of Secunda. Sasol Synfuels is one of the biggest plants and is the world’s only fuel-from-coal site operating on a commercial basis. The sulphuric acid bought by Synfuels is made into crystalline ammonium sulphate by the addition of ammonia. The Sasol explosives factory makes a full range of commercial explosives, including specialist products used in underground mining. Three plants operate under the Sasol Polymers business unit: a polypropylene plant, a plant that separates ethylene and ethane, and a combined ethylene cracking and separation plant. Sasol Solvents has 12 production facilities, most of which are involved in making products that can be sold. The process units make ethyl acetate, high purity ethanol and n-propanol. The carbo-tar facility has an integrated delayer coker and calciner and makes raw tar and carbon products. overview Manufacturing Mpumalanga has a diverse manufacturing sector. M pumalanga processes and manufactures many things, but the provincial government wants to do more with its produce. To this end, an Industrial Plan and the Mpumalanga Trade and Investment Strategy will guide planning. The essential points are to increase employment and add value to the agricultural and mineral products of the region. An example of this is the recent investment by Noble Resources in a seed-crushing plant in the Gert Sibande District Municipality. About R350-million will be spent, resulting in 150 direct jobs. A community-based water-bottling plant in Donkerhoek (Mkhondo Local Municipality) is to be commercialised. Manufacturing accounts for 15% of Mpumalanga’s gross geographic product (GGP). The Manganese Metal Company in Nelspruit is the largest producer of pure electrolytic manganese metal in the world. Delta EMD, in the same town, is one of the biggest producers of electrolytic manganese dioxide, a material used in the manufacture of alkaline batteries. With successful mines, a huge synthetic-fuel complex and major sugar and forestry operations, there is plenty of scope for downstream manufacturing. The area around Middelburg has a number of plants specialising in chrome alloy and steel. Three hundred businesses belong to the Middelburg Chamber of Commerce & Industry, which supports members through the publication of business guides, electronic communications and has a strong focus on emerging business. Approximately 70% of jobs in the manufacturing sector are in food and forestry. Standerton has textile-manufacturing capacity in the form of Standerton Mills. It is also home to several plants that use local raw materials: Nestlé has an infant-cereal manufacturing sector insight Noble Resources is building a R350-million seed-crushing plant. • A new industrial park has been opened on the N4 at Middelburg. online resources Middelburg Chamber of Commerce & Industry: www.middelburg info.com Mpumalanga Economic Growth Agency: www.mega.gov.za National Department of Trade and Industry: www.thedti.gov.za plant, Rainbow runs farms in the Carolina district and Early Bird is prominent. McCain and PepsiCo (Simba) have plants that use the province’s plentiful potato crop. Africa Silks Weavery in Graskop employs 70 people to create luxury silk items. Apart from timber and wood products, Nelspruit and White River have several furnituremanufacturing concerns. TSB Sugar runs two large mills and produces fruit juices through a subsidiary company. Nelspruit is the centre of the province’s food-processing cluster. Hops Hollow Brewery is located at Lydenburg. Piet Retief in the Mkhondo Local Municipality is the site of a large pulp and paper plant run by Mondi. 63 mpumalanga Business 2013/14 profile Columbus Stainless The key to unlocking Mpumalanga’s resource wealth. Columbus Stainless manufactures stainless-steel flat products in Middelburg in the Mpumalanga Province. As the only producer of stainless steel in Africa and the largest in the southern hemisphere, it produces 85% of all stainless-steel flat products used in South Africa and still exports 70% of its production capacity. Stainless steel has a very long life cycle, due to its corrosion resistance. Even at the end of its lifetime, it remains endlessly recyclable and is therefore very environment friendly and sustainable. The chrome–stainless link Stainless steel, in its most basic form, is produced by melting iron scrap and adding between 110kg and 180kg of chrome for each ton of stainless steel produced. Columbus also offers a unique trademarked stainless steel, namely 3CR12, which is used worldwide in the manufacturing of rail cars, min- The chrome provides the corrosion resistance – ing equipment, bus frames and other industrial the essence of stainless steel – by adding a thin, applications where carbon steel would be used, invisible, self-healing chrome-oxide layer to all but offers a much longer and more economic exposed surfaces of the steel. lifespan than carbon steel. Columbus contributes ±9% of the GDP of Mpumalanga and 0.65% (first semester 2011) of the GDP of South Africa while employing around 2 500 people, including permanent staff, apprentices, contractors, temporary workers and trainees. Downstream industries making use of stainless steel manufactured by Columbus contribute a further 0.14% to the South African GDP, while providing employment to approximately 29 000 people and supporting a further estimated 175 000 people. Around 70% of all stainless steel produced by Columbus Stainless is sold in the export market, generating a constant inflow of US dollars, euros and other foreign currencies into the country and the province – indicating the potential and market demand for further value adding in South Africa. The economic reality • • • South Africa owns around 72% of the world’s chromite reserves but produces less than 40% of the world’s ferrochrome. The eastern leg of the Bushveld Igneous Complex, the source of most of South Africa’s chromite ore, is situated in Mpumalanga, yet the province has the second-highest level of unemployment in the country and a poverty rate of 42%. The South African ferrochrome industry is rapidly losing market share against its Chinese competitors, who purchase South African chrome ore in order to produce ferrochrome and in turn compete with our local ferrochrome manufacturers. The only way to change this situation is to optimally use the resources available to the province by using it wisely to ensure maximum wealth creation for the province over the long term. mpumalanga Business 2013/14 64 profile How to unlock the chrome advantage By using chrome to produce stainless steel instead of exporting it in the form of ore, the selling price of the product is around 12 times higher, creating 12 times more GDP for South Africa and allowing the creation of more employment per ton of ore. The money invested to convert the chrome ore into stainless steel is all spent inside South Africa, and mainly in Mpumalanga. Columbus Stainless needs support from the government – at municipal, provincial as well as national level in order to maximise the potential of the chrome value chain in Mpumalanga. Examples of government support that will strengthen and enable the chrome value chain include: • • • • • The dti should ensure that import duties on stainless steel are fair. A level of import protection comparable to that in practice by the BRICS trading partners is therefore proposed to ensure that specific growth aspects of the local economy are encouraged. Investment incentives to stimulate growth in the chrome value chain should be considered urgently. The true benefits of beneficiation lie in the multiplication effect of value adding – the more beneficiated a product is, the higher the multiplication effect on both GDP and employment generation. It is therefore proposed that investment incentives for value-added manufactured goods manufactured from stainless steel be implemented. Columbus supports government’s recently unveiled Local Procurement Accord, which commits business, labour and government to increase local procurement. In terms of this accord and the Preferential Procurement Policy Framework Act, certain products have been designated that will • • require a minimum level of local content. Unfortunately, locally produced stainless steel is currently grouped together with carbon steel by the dti and as such it is exempt from qualifying as a local product. This grouping does not make economic sense, since stainless steel participates in a completely different environment, faces a very different set of challenges and has entirely different advantages for South Africa, specifically in the area of chrome beneficiation, which is irrelevant to carbon steel. It is therefore proposed that locally produced stainless steel be removed from the exempt classification, be classified as unconnected from carbon steel and be designated as a local product. The Departments of Public Works and Human Settlements, as well as the provincial and local municipal structures should put in place a framework encouraging the use of locally produced stainless steel for fencing, roofing, sinks, geysers, water pipes, etc in their standard tender enquiries. The bold decision to jump-start the precision strip industry in South Africa by investing in a stainless steel precision strip mill in Mpumalanga should be seriously considered, taking into account its potential as a catalyst for associated industries. The IDC should be recognised as a Designated Public Entity in terms of the Broad-Based Black Economic Empowerment Act. This will enable Columbus, which is 24% owned by the IDC, to achieve a fair BBBEE rating. contact info Key contact person Ramona Mudali Tel: +27 13 247 9111 Fax: +27 13 246 1681 Email: email@example.com Physical address: Hendrina Rd, Middelburg 1050 65 mpumalanga Business 2013/14 overview Steel Mpumalanga steel is famous. L arge-scale mining operations in Mpumalanga of coal, granite, iron ore, vanadium and manganese support the manufacture of stainless steel, chemicals and petrochemicals. The Middelburg/Witbank area has a strong chrome alloy and steel-manufacturing focus. Plants in the area include: • Middelburg Ferrochrome • Evraz Highveld Steel and Vanadium Limited • Colombus Stainless • Ferrometals, a division of Samancor Chrome Samancor Chrome is the second-largest ferrochrome producer in the world with three plants, two of which are in Mpumalanga: eMalahleni (Witbank) and Middelburg. Evraz Highveld focuses on producing steel-and vanadiumbearing slag. The company has a mine at Mapoch and a production complex at eMalahleni that comprises an iron plant, a steel plant, and flat and structural product mills. News reports in March 2013 gave notice that the Russian owners of Evraz Highveld, Evraz, intended selling their 85% share in the company to a local group of black businessmen and women. The BEE group is known as Nemascore and the price for the deal is R2.9-billion. Evraz Highveld’s production volumes for steel and vanadium were down in 2012 and the company reported a headline earnings loss of R1-billion to December 2012. Middelburg-based Columbus Stainless supplies stainlesssteel products to the domestic and international market. About 25% of the company’s production is sold domestically. The South African market for stainless steel in 2011 was about 150 000 tons, of which Columbus Stainless supplied approximately 80%. The Industrial Development Corporation (IDC), a state-owned investment entity, owns 24% of Columbus Stainless with the majority share held by Acerinox SA of Spain. sector insight Evraz Highveld’s Russian owners are selling. • C o lumb us St ainl e s s supplies 80% of South African demand. The steel works and ferrochrome plants of Witbank and Middelburg attract downstream manufacturing concerns, such as the province’s only stainless-steel-tube producer, Mpumatech Stainless Tube. Sasol’s synfuel complex similarly stimulates the service industry sector. Neven Matthews, which makes oxygen and thermic-lance tubes, is an example of a company in that sector. Xstrata Alloys’ Lydenburg plant produces granulated and lumpy ferrochrome. Assmang has a ferrochrome smelter in eNtokozweni (Machadodorp). In the Secunda area, Sasol runs synthetic fuels and chemicalprocessing plants. Thos Begbie Holdings has four Middelburg-based companies operating in the beneficiation sector: they produce ferro alloys, recover metals from slag dumps and ore, and manufacture piping from special metals and nickel alloys. online resources Mpumalanga Stainless Initiative: www.mpstainless.co.za South African Iron and Steel Institute: www.saisi.co.za Southern Africa Stainless Steel Development Association: www.sassda.co.za mpumalanga Business 2013/14 66 interview Setting SMMEs on a path to success Thulo Majoe, General Manager of the Mpumalanga Stainless Initiative, explains the role of the organisation in supporting emerging SMMEs in the stainless steel fabrication sector. Thulo Majoe Please give an overview of the services that MSI provides in the province. MSI is a business incubator that establishes, develops and supports stainless steel fabricating entrepreneurs. The incubation model of MSI has four stages: basic business skills training, technical training, entrepreneurship training and post-incubation support. MSI offers its clients physical premises in the form of 60m2 cubicles for rental at highly subsidised rates, plus a fully equipped stainless steel fabricating workshop that works on a job-card system, and that is also offered at subsidised rates to emerging SMMEs. How long has MSI been in existence, and what were the factors that led to its creation? MSI was established in 2001 as an initiative of Middelburg local community structures with the aim of creating an entity that would advance and promote beneficiation of locally produced stainless steel. All the three spheres of government contributed, including funding the buildings, acquisition of workshop machinery and equipment, funding operations, etc. The key stakeholders included: Steve Tshwete Local Municipality, the Mpumalanga Department of Economic Development and the National Department of Trade and Industry. Seda continues to be the main sponsor of MSI. What is the long-term vision of the organisation? MSI sees itself growing beyond the borders of Mpumalanga Province; opening branches across South Africa and continuing to establish, develop and support stainless steel fabricating SMMEs. MSI is planning to establish a dedicated production plant, which will form the core of its post-incubation programme. The incubator is aiming at making a significant contribution towards attainment of beneficiation, import substitution and exporting of manufactured stainless steel products by SMMEs supported through its programmes. biography Thulo Majoe is the CEO of MSI, and occupied the same position at a number of other s21 companies. He is a BCom graduate, and has extensive experience developing and providing support for SMMEs, income-generating community-based projects and related local economic development programmes. Thulo is a director of a local SMME support entity and he also serves as the secretary general of local branch of NAFCOC. Thulo currently stays in Middelburg, Mpumalanga, with his family. 67 mpumalanga Business 2013/14 profile Mpumalanga Stainless Initiative Mpumalanga Stainless Initiative was established in 2001 for the purpose of establishing and developing SMMEs in stainless steel fabrication through a business incubator. Localisation and beneficiation of stainless steel is crucial for Middelburg and its surrounding areas due to the fact that a stainless-steel manufacturer that is based in Middelburg, Columbus Stainless, is the only integrated stainless-steel manufacturer on the continent. This also feeds into broad national strategies and mandates, as contained in the National Development Plan, New Growth Path, IPAP and National Industrialisation Framework. a business incubator is currently on a growth and expansion path and is looking for partners in enterprise development who are interested in an entity that can give them mileage and full points for their BBBEE scorecards. Stainless Man (Pty) Ltd In 2003, the Mpumalanga Economic Department commissioned Blue Print (a consulting company) and Global Marketing to analyse the markets and develop a marketing strategy for the stainless-steel industry. The intervention led to the identification of the stainless-steel pall ring to be supplied to Sasol in Secunda. In 2005, Global Marketing presented the opportunity to the Mpumalanga Stainless Steel Cluster. Three companies clustered for the project, and Mpumalanga Stainless Initiative (MSI) was the major role-player that carried out the research and development for the manufacturing of the pall rings. The department funded the research and development of the pall ring for Sasol in Secunda, and a company by the name of Stainless Man was incorporated. The department and MSI signed a memorandum of understanding for the amount of R250 000, allocated for research and development. MSI then purchased the required presses and commissioned Tshumisano (Department of Science and Technology Initiative) together with Tshwane University of Technology’s Institute of Advanced Tooling and the CSIR to carry out the tool design and development. Description of services MSI is a business incubator and offers an incubation programme of up to three years maximum, targeting start-ups, existing informal traders and potentially high-impact recruits. The services of MSI can be summarised into: • Space rental in highly subsidised cubicles • Machine rental from a well-equipped workshop • Facilitation of skills-development programmes: both business, technical and entrepreneurship skills • Post-incubation support Competitive stainless steel fabricating SMMEs manufacture/fabricate a variety of stainless-steel products ranging from industrial trolleys, tool boxes, tea trollies, hot-dog trollies, portable braai stands, steak pans, window frames, door frames, in/out trays, waste-paper bins, flower bins, etc. Target markets Emerging stainless steel fabricating SMMEs are primary target clients of the incubator. MSI as mpumalanga Business 2013/14 68 profile In 2006, after the negotiation with Sasol, the vendor registration was approved and the Sasol team was sent to inspect the facilities. Stainless Man was then given an initial order to supply 80m3 of CMR3 stainless-steel pall rings. Five employees from the Middelburg community (including three women) were employed to carry out the production but only 6m3 was manufactured before the tool started giving problems, resulting in high rejects. The production had to be halted and the Tshwane University of Technology had to come with a solution. In 2010, it was then found that a bigger tonnage press was needed to run the final stage, therefore MSI approached Vuna Mining and Coal of Africa for funding to purhase a new 100-ton press. The tool was officially handed over in November 2010 by the CEO of Coal of Africa and the chairperson for Vuna Mining. From this stage, production began to run smoothly and on a more continuous basis. The Sasol order was delivered in full at the end of April 2013 and the project is scouting for new orders from Sasol and other users of mini cascade rings, which are used by refineries during their shut-downs. the installation of 5x32KW units in Mpumalanga. Unfortunately Eskom had no in-house funding mechanism for small-scale power generation, so the project was put on hold while funding sources were sought. In June 2012, Eskom announced that under its Standard Offer Programme (SOP) it had introduced a funding mechanism for small-scale power generation. Under the SOP, RRT letters of intent with a number of a variety of end-users are in place for the replacement of grid electricity with electricity supplied by SKYRAI biomass gasifiers and generators It is envisaged that a cluster will be created using the entrepreneurs located at the MSI, who will supply components to SKYRAI for assembly. SKYRAI will be part of the cluster. Besides supplying the gasifiers/generators to the general market as per the marketing plan; entrepreneurs identified by the NYDA will be trained as Energy Entrepreneursâ„˘ at MSI. These entrepreneurs will generate and sell electricity to rural communities, farmers and other organisations in need of electricity. In addition, and as a complementary project to the SKYRAI project, the entrepreneurs will be trained in the production and sale of biomass. More than 80% of components of the SKYRAI biomass generators are made out of stainless steel. Biomass gasifier project The SKYRAI biomass gasifier/generator project was launched in October 2011 at MSI in Middelburg, by the honourable Mayor of the Steve Tshwete Local Municipality, Cllr Mike Masina. SKYRAI is the brand name for the gasifier/generator and is owned by Rich Rewards Trading 636 (Pty) Ltd (RRT). The project is incubated at MSI. Since its launch, RRT has worked closely with Eskomâ€™s Strategic Youth Development Initiative (SYDI) and the Mpumalanga branch of the National Youth Development Agency (NYDA), as SYDI and NYDA recognised the job-creation potential of the SKYRAI technology. In April 2012, SKYRAI put together, at the request of SYDI, a feasibility study for contact info Key contact people: Thulo Majoe, General Manager Sydney Chauke, Administrator Jackie Palani, Chairperson of the Board Tel: +27 13 246 1528 Fax: +27 86 274 6176 Email: firstname.lastname@example.org Email: email@example.com Physical address: 57 Zuid Street, Old Showgrounds, Middelburg Postal address: PO Box 15154, Middelburg 1050 Website: www.mpstainless.co.za 69 mpumalanga Business 2013/14 listings Business organisations These chambers of commerce are a helpful first port of call for anyone wishing to do business in Mpumalanga. Dullstroom Business Chamber Postal address: PO Box 309, Dullstroom 1110 Tel: +27 82 895 593 Fax: 086 516 3889 (SA only) Email: firstname.lastname@example.org Website: www.dullstroomchamber.co.za Lowveld Chamber of Business and Tourism Physical address: cnr N4 and R40, Crossing Centre, Nelspruit 1201 Postal address: PostNet Suite 33, Private Bag X11326, Nelspruit 1200 Tel: +27 13 755 1988 Fax: +27 13 753 2986 Email: email@example.com or firstname.lastname@example.org Website: www.lcbt.co.za or www.lowveldtourism.com Ermelo Business Association Physical address: Highveldt Visitorâ€™s Centre, Church Street, Ermelo 2350 Postal address: PostNet Suite 484, Private Bag X9013, Ermelo 2350 Tel: +27 82 575 5785 Email: email@example.com Website: www.ermelobusiness.com Middelburg Chamber of Commerce Physical address: 292 Walter Sisulu Street, Middelburg 1050 Postal address: PO Box 1152, Middelburg 1050 Tel: +27 13 243 2253 Fax: +27 13 243 1923 Email: firstname.lastname@example.org Website: www.middelburginfo.com Komatipoort Business Chamber Physical address: No 21 Spar Square, Rissik Street, Komatipoort 1340 Postal address: PO Box 652, Komatipoort 1340 Tel: +27 13 793 7783 Fax: +27 13 793 7504 Email: email@example.com or firstname.lastname@example.org Website: www.komatipoort.com Witbank Chamber of Business Physical address: 22 Hofmeyer Street, Witbank 1035 Postal address: PO Box 2180, Witbank 1035 Tel: +27 13 690 2288 Fax: +27 13 656 3812 Email: email@example.com Website: www.witbankchamber.co.za Kriel Chamber of Business Physical address: Shop 58C, Megamark Mall, Bronwyn Street, Kriel 2271 Postal address: PO Box 3260, Kriel 2271 Tel: +27 17 648 5750 Fax: +27 17 648 5750 Email: firstname.lastname@example.org mpumalanga Business 2013/14 70 overview Engineering There is a strong demand for engineers in the energy, chemical and mining sectors. C ontracts signed by Concor Engineering with Eskom (for the erection of workshops and the fabrication of steel-flue cans at the Kusile power plant building site), and with Sasol to work on its Secunda facilityâ€™s coal tar filtration plant, are typical of the type of engineering work done by engineers in Mpumalanga. The other big employer of engineers is the mining sector, with several coal mines opening new shafts. The sugar and forestry industries also need technical expertise, and Mpumalanga is home to several large-scale processing plants that require high-end engineering skills: for example, the manganese works in Nelspruit and the ferrochrome plants at Middelburg and Machadodorp. Middelburg-based Malcom-Ezindaleni Hydraulics & Engineering was a winner at the inaugural SA Premier Business Awards in 2012, an initiative of the National Department of Trade and Industry (dti). The company specialises in CNC (computernumerical-control) turning, milling and machine overhauls. Hydra Arc is a Secunda group of companies that has grown as the oil and gas and chemicals industry has grown around it. Sappi has signed an electrification and instrumentation contract worth about R70-million with power and automation group ABB to implement its GoCell Project. A joint venture comprising Group Five, Stefanutti Stocks, WBHO and Basil Read is tackling the civil-engineering work on the massive Kusile Power Station contract. Work began on this R2.9-billion contract in 2009. The Cosira Group and Alstom S&E are contracted to supply the boilers. Bateman Engineering sector insight Malcom-Ezindaleni Hydraulics & Engineering won a 2012 SA Premier Business Award. â€˘ A B B has signed a R70-million contract with Sappi. online resources Consulting Engineers South Africa: www.cesa.co.za Engineering Council of South Africa: www.ecsa.co.za South African Federation of Civil Engineering Contractors: www.safcec.org.za South African Institution of Civil Engineering: www.saice.org.za Southern African Institute for Industrial Engineering: www.saiie.co.za Steel and Engineering Industries Federation of South Africa: www.seifsa.co.za Group is carrying out materials handling on the site. Bateman was sold to Italian group Tenova for R1.2-billion in 2011. Apart from the Kusile contract, Bateman is very involved in mining in Mpumalanga. Mechanical and electrical work on the Rob Ferreira Hospital and the Mpumalanga Legislature was provided by Royal HaskoningDHV, a firm of consulting engineers. N e ls p r u i t m e c h a n i c a lengineering company Steval Engineering is working on the contract to build a new gold mine at Burnstone. Teams of engineers and artisans from Transnet Engineering are employed to allow locomotives and wagons to keep delivering large quantities of Mpumalanga coal to Richards Bay. 71 mpumalanga Business 2013/14 profile Transnet Engineering Transnet Engineering, (formerly known as Transnet Rail Engineering), an operating division of Transnet SOC Limited, is the backbone of South Africa’s railway industry. Transnet Engineering (TE) has nine productfocused businesses, 132 depots, six factories and about 13 000 employees countrywide. The organisation is dedicated to inservice maintenance, repair, upgrade, conversion and manufacture of freight wagons, mainline and suburban coaches, diesel and electric locomotives as well as wheels, rotating machines, rolling stock equipment, port maintenance, castings, auxiliary equipment and services. An African focus While the focus of TE’s activities is mainly on the South African market, investment in research and development to service the specific requirements of Africa and the rest of the world has led to an ever-expanding range of rolling stock products and a comprehensive list of satisfied customers. The proximity of the coastal plants to major ports facilitates the movement of products to and from overseas markets. The organisation’s competency is based on its sound knowledge of the technologies embedded in its products, supported by ongoing research and development and exceptional product application experience. turing, maintenance and assembly of various types of locomotives. Dedicated staff operating from depots and factories close to the main rail freight corridors maintain a fleet of 2 200 locomotives per annum, ensuring high levels of reliability and availability. During upgrades, tractive effort is increased through the addition of microprocessor-wheel-slip control – enhancing fleet-revenue-generation potential. Wagon business: provides heavy maintenance, general overhauls, modifications, upgrades, maintenance and new builds. TE is an original equipment manufacturer (OEM) of wagons. The wagon business is a major supplier of new wagons to the heavy-haul coal and iron-ore fleets with tare ratios as high as 5:1. Other wagon types supplied are cement, car carriers, intermodal and fuel tankers. TE’s business units Transnet Engineering has four customer-facing businesses, with five internal-support operational businesses: Locomotive business: does heavy refurbishment, general overhauls, upgrades, manufacMpumalanga Business 2013/14 72 profile Coach business: performs heavy maintenance of coaches, general overhauls, modifications and upgrades. Modernisation of South Africaâ€™s large DC suburban fleet is one of the businessâ€™ main markets, and its modular upgrade designs extend the economic lifespan of the sets. During upgrades, passenger and driver ergonomics are enhanced wherever possible, while safety and operating performance are increased. Designs include dining, lounge and kitchen cars, sleeper and sitter coaches, and power units. Ports business: the ports business is not new, as TE has been maintaining and manufacturing straddle carriers for Transnet Port Terminals (TPT) for years. The ports business is now positioned to maintain all ports and terminal equipment and machinery. The long-term view is to get this business involved in the assembly of all new port equipment. The internal support operational businesses are: Rotating machines: refurbishes and maintains all the rotating components that are found in rolling With its greatest assets being its people and stock, such as traction motors. This business their skills, Transnet Engineering is committed to is now involved in the assembly of new traction many initiatives, such as the talent management motors for the 43 class locomotives. All traction programme, relationship building, performance motors are qualified and load-tested to full capac- management, transformation, a comprehensive ity on back-to-back motor test facilities. Electrical lifestyle well-being programme, as well as engiwork includes repair and manufacture of motor neering bursaries and apprenticeship training field coils, complete rebuilding, rewinding and to name but a few. repair of armatures, and the repair and calibration The organisation takes seriously its moral and of instrumentation. legal duty to ensure the health and safety of Rolling stock equipment: manufactures parts and all employees. This obligation also extends to sub-assemblies for locomotives, coaches and clients, the communities in which it operates wagons. Processes involve laser cutting, bend- and the protection of the environment. ing, welding, forging and fabrication of carbon and stainless steels. It also repairs and upgrades components to extend the lifespan of rolling stock. This includes refurbishing of brake valves and cylcontact info inders, couplers, pantographs and the overhaul of diesel engines, turbo-chargers and compressors. Tel: +27 12 391 1304 Fax: +27 12 391 1371 Wheel business: the assembly of new wheels Email: email@example.com as well as the refurbishment and maintenance Website: www.transnet.net of the existing fleet of wheels. The main activities comprise wheel re-profiling, machining of axles, centres and tyres, fitting of wheel bearings, driving gears and motor suspension tubes, as well as centre re-tyreing, journal burnishing and crack detection through ultra-sonic testing from factories and depots on the main cargo routes. Foundry: TE has two foundries, in Pretoria and Bloemfontein. They manufacture castings to support the refurbishment programme of TE. Auxiliary business: offers both products and services for rail cargo as well as ISO container refurbishing and wagon cleaning. It supplies newly manufactured, repaired and washed tarpaulins and accessories; product diversity extends to cargo canopies, scotches, lashing chains, road trailer tarpaulins, boat covers, tents and other PVC material products, trimming and cargo protection equipment. Committed to the future 73 mpumalanga Business 2013/14 overview Transport The Mpumalanga coal-haulage network is expanding. sector insight Trade between Swaziland and South Africa has reached R20-billion per year. • R1.8-billion will be spent on the N4 Maputo Corridor. • South Africa provides 82% of the volume of transit exports out of the Port of Maputo. Nelspruit in Mpumalanga, and on to Maputo in Mozambique. The Port of Maputo is handling ever-increasing quantities of cargo (see special feature), but this could grow exponentially if many of the planned regional rail-network upgrades happen. About 82% of the port’s transit exports come from South Africa. A possible link between Ermelo and Swaziland is among these initiatives. In 2012, imports and exports between South Africa and Swaziland totalled R20-billion. The company that runs the N4 as a toll-road, Trans Africa Concessions (Trac), says that heavy-vehicle traffic on the road has increased by20% every year since 2009. Trac is due to spend R1.8-billion on the 570km international highway with contracts for the 2012/13 financial year encompassing expansion (R600-million) and rehabilitation (R300-million). Mpumalanga’s rail system is of key strategic value. M pumalanga’s position as a gateway to the growing Port of Maputo in Mozambique gives it a uniquely important position in the logistics sector. With the power-generation and mining industries playing such important roles in the Mpumalanga economy, preserving the road and rail network that feeds them is vital. About R500-million has been set aside by the provincial government for the rehabilitation and reconstruction of the coalhaulage network, but with the estimated total cost in the region of R6-billion, the commitment made by Eskom to provide nearly R1-billion over three years is welcome. Some of South Africa’s most strategically important infrastructure is located in Mpumalanga. Liquid-fuel pipelines, power stations and key road connections are an important part of South Africa’s communications and power network. The Maputo Development Corridor is Africa’s most advanced spatial development initiative (SDI) comprising road and rail infrastructure, border posts, and port and terminal facilities. Run by the Maputo Corridor Logistics Initiative (MCLI), the corridor runs from just outside Pretoria in Gauteng, through Witbank, Middelburg and mpumalanga Business 2013/14 74 photo: railways africa overview Rail The Mpumalanga rail system generates more freight traffic than any other province in South Africa and is of great strategic value. Transnet Freight Rail is the main operator and the chief freight movements are coal, fuel, chemicals, timber, iron and chrome ore, fruit, maize, animal feed, wholesale and retail goods, steel, building supplies, fertiliser and consumer goods. The Port of Maputo in Mozambique is an attractive option for freight. The coal terminal at Richards Bay in KwaZulu-Natal receives the majority of the coal that is mined in the province. A new rail siding is being built to service the Majuba Power Station. The 68km single heavyhaul track will be a private line that is projected to cost in the region of R5-billion and create between 3 500 and 5 000 jobs. Private rail operator Sheltam services the coal mining and ferrochrome-metal industries from regional headquarters in Witbank. The company runs systems, hauls raw materials, and rebuilds and refurbishes locomotives. ing Mpumalanga with Limpopo in the north, via Middelburg, and KwaZulu-Natal in the south, via Volksrust. The N17 runs east out of Johannesburg to Bethal. The South African National Roads Agency (SANRAL) is raising R12-billion to improve national roads. Roads take a heavy pounding in the parts of Mpumalanga that have the highest volumes of mining and industrial activity. The 2012/13 maintenance budget of the Mpumalanga Department of Public Works, Roads and Transport is R530million. An estimated R9.3-billion is required to bring all the provinceâ€™s roads up to a high standard. The province is responsible for 13 825km of roads, 5 403km of which is surfaced. A further 1 000km of national roads pass through the province. The department has 827 traffic officers and 362 vehicles. The provincial authorities are upgrading gravel roads to hard surfaces, providing better mobility and access in rural communities (culverts, sidewalks, bus shelters and the provision of bicycles and animal-drawn carts) and scholar transport. Air British Airways flies six times a week from Johannesburg into Kruger Mpumalanga International Airport (KMIA). Airlink offers flights to Johannesburg and other foreign destinations such as Livingstone. SAA has a service to KMIA. Middelburg Aerodrome is one of the larger alternate airports in the province, boasting a 1.9km runway that can accommodate a 737. Many game lodges have airstrips and helipads. SA Red Cross Air Mercy Service operates out of the old Nelspruit airport just south of the city. Road The N4 highway runs eastwest through the province and is the main arterial and backbone of the Maputo Corridor. The R36 is a major north-south route, passing through Ermelo and connect- online resources Kruger Mpumalanga International Airport: www.kmiairport.co.za Maputo Corridor Logistics Initiative: www.mcli.co.za Mpumalanga Department of Public Works, Roads and Transport: http://dpwrt.mpg.gov.za Railroad Association of South Africa: www.rra.co.za Sheltam: www.sheltam.com South African Civil Aviation Authority: www.caa.co.za South African National Roads Agency (SANRAL): www.sanral.co.za 75 mpumalanga Business 2013/14 focus Always there for customers In 2012, BB Truck & Tractor was appointed the new sole accredited UD Trucks dealer for the Middelburg/Witbank area in Mpumalanga. the dealership offers on-site financing, 24-hour parts availability, roadside assistance, maintenance contracts as well as managed maintenance services. In a highly competitive market, Willie believes the key differentiator is the level of service provided to customers, no matter the size of their fleet. ‘We are committed to reducing downtime on customers’ vehicles through various strategies that include a high level of parts availability and offering support whenever our customers need it,’ said Willie. In order to provide customers with a level of service that adheres to stringent world standards, staff at the dealership are constantly trained and empowered to stay abreast of the latest developments within the industry. The training enables staff to solve problems faster and assist customers in finding the right solution in the shortest space of time. ‘Our main focus is building lasting business relationships with our customers. The more we understand their business, the more we are able to provide a service that match their requirements and ultimately offers them the most profitable transport solution,’ said Willie. U D Trucks Middelburg, as the dealership is known, provides full sales, service and parts support to UD Trucks customers in the region. ‘We are committed to provide customers with quality sales and aftermarket support, whenever they need it,’ said Willie Linde, principal dealer of UD Trucks Middelburg. BB Truck & Tractor, which has been in operation since 1959, also has existing UD Trucks dealerships and service centres in Polokwane, Musina and Ellisras (Lephalale). Over the years, the group has become renowned for its commitment to customer service and quality support. ‘As one of UD Trucks Southern Africa’s long-established dealerships, BB Truck & Tractor places great emphasis on building long-term relationships with our customers and providing ongoing support throughout a product’s lifecycle,’ said Willie. ‘The UD Trucks range offers customers versatility, quality and ultimate dependability, and above all, appropriate technology for the often challenging South African operating conditions.’ UD Trucks Middelburg offers customers a complete commercial vehicle service, from sales to service and a range of genuine parts. In addition, the dealership also offers expert consultancy services to ensure customers buy the right truck for the job at hand. And adding even more value to customers’ businesses, read more Visit: www.bbtruckiveco.co.za mpumalanga Business 2013/14 76 overview Construction and property Hospitals and shopping malls are going up in Mpumalanga. The 43 000-square-metre Middelburg Mall regional shopping centre in Mpumalanga. O utside of the major infrastructure undertakings such as the expansion projects of Sasol and Sappi and various coal mines, there are a number of sectors that are growing. Public expenditure on schools and housing, shopping malls, and private development boosted by the Maputo Corridor are all reasons for optimism for the construction and property sector. The provincial government of Mpumalanga has a R3.9-billion infrastructure budget for 2013/14 alone, with eight hospitals due to be demolished and reconstructed and a number of school classrooms to be built. Many schools have been constructed and more are planned while other projects recently completed include the R97-million Disaster Management Centre and a R191-million Provincial Archive building. The new focus on providing communities with varied facilities, rather than simply ‘housing’, also presents opportunities for contractors. In line with national government policies, Mpumalanga’s provincial government is rolling out a human settlement policy that aims to provide sustainable housing through the strategy known as Breaking New Ground. mpumalanga Business 2013/14 sector insight The provincial government’s 2013/14 infrastructure budget is R3.9-billion. • The R500-million Middelburg Mall opened in 2012. • FLSmidth is building a supercentre to supports its activities. • Sasol has showcased ash as a building material. The Turnkey Group has won a Govan Mbeki Human Settlements award for best informal settlement upgrade in eMalahleni (Witbank). The Klarinet project has seen 1 027 houses built and a photo: middelburg mall 78 overview provincial government partner- the facility will help contractors to register and allow them to keep ship with Absa has delivered track of their applications. 80 houses in the gap marThe Sakh’abakhi Contractor Development Programme has ket (bigger houses than RDP been successful to a degree but it has been difficult to find houses, but the people who projects where these contractors can move from one CIDB level can afford these houses can to the next. normally not afford a traditional home loan). In October 2012, Sasol un- Property veiled a new technology that will go some way to helping There is growing interest in residential property in the eastreduce the cost of building ern half of the province from Mozambican nationals. With the classrooms and cheaper hous- Maputo Corridor making movement between South Africa and es. Sasol has shown how ash Mozambique that much easier (and all of the traffic passing can be used in construction. through Mpumalanga), areas such as Komatipoort and nearby New retail malls such as the Marloth Park are proving popular for purchases and rentals. R500-million Middelburg Mall Nelspruit and White River are other towns experiencing this (April 2012) and Nelspruit’s phenomenon. Pam Golding Properties states that homes in the R600-million I’Langa Mall greater Nelspruit area have nearly doubled in value in five years. (2010) have boosted the secThe area north of Nelspruit, to White River, is a favoured destor, while the refurbishment and tination for new developments, especially with a new and more expansion of others like the reliable source of water having been arranged. Five new residential Highveld and Riverside malls developments are being planned, according to Engineering News. has also helped. The steady New and revitalised coal mines have helped boost property growth in the tourism and values in Belfast, according to RealNet. The rental market in leisure market is supporting particular is doing well, with investors showing great interest in this trend. the town. RealNet has four estate agents working in Belfast with The first supercentre for plans to open five satellite offices. FLSmidth in Africa is being Further north, the town of Lydenburg has also experienced a built for the engineering group rise in property values, boosted by the revitalisation of platinum in Delmas. The facility will mining, especially in the neighbouring province of Limpopo. Towns serve as a ‘major aftermarket such as Burgersfort and Steelpoort are growing very quickly. A hub’ (Engineering News) and National Department of Water Affairs official has been quoted will comprise offices, training saying that Steelpoort will become ‘a second Rustenburg’, a facilities, a workshop, storage reference to that town’s platinum-fuelled boom. areas and a mobile plant workshop. The main building contractor for the project is Grid online resources Line Construction. Construction Industry Development Board: www.cidb.org.za The province’s first ConMaster Builders South Africa: www.mbsa.org.za struction Contact Centre Mpumalanga Department of Human Settlements: (CCC) was launched in Nelhttp://dpwrt.mpg.gov.za/index.html spruit in 2009. An initiative of National Department of Public Works: www.publicworks.gov.za the Construction Industry DeSA Institute of Architects: www.saia.org.za velopment Board (CIDB) and SA Institute of Valuers: www.saiv.org.za the national and provincial SA Property Owners Association: www.sapoa.org.za Departments of Public Works, 79 mpumalanga Business 2013/14 focus Making tomorrow, today Halls Properties has been a real catalyst for regional economic growth. group has made a number of significant land donations to both government and the community. Examples include the land for the provincial government complex in Riverside, land for the Botanical Gardens and a 150-hectare donation to the Phumulani Village Association for the settlement of past and current employees. Halls continues to be involved in the community it works in through its corporate social investment programme, which is mainly aimed at education and enterprise development initiatives, such as the Basisa Enterprise development initiative, started recently to provide an opportunity to unemployed youth from the Mataffin settlement. Halls is also working closely with MRTT to start a skills development initiative with its neighbours, the Matsafeni community. Riverside Park, Mpumalangaâ€™s premier mixed-use node. H alls Properties has and continues to inject and attract hundreds of millions of rands into the Mpumalanga regional economy in Nelspruit through its suite of successful developments in the Lowveld. The main focus of its endeavours has been Riverside Park, which has grown into Mpumalangaâ€™s premier regional mixed-use node with a wide range of retail, office, leisure, residential and automotive developments. Halls Properties is currently also working towards bringing new land onto the market for residential development in the Mataffin precinct and at Boschrand Heights adjacent to Penryn College. The company is presently developing the first phase of the Mataffin Macadamia lifestyle and assisted-living estate in the historic Mataffin village, together with its joint venture partner Lagerwey Construction. Halls Propertiesâ€™ attitude to land use is that land is a valuable, non-renewable resource that must be managed for the benefit of future generations. More than just a developer As part of the Halls Group, Halls Properties has a well-established track record regarding working with government and the community to facilitate development. Given its land holdings, the Committed to the future An iconic Lowveld family business for more than 120 years, the only things old-fashioned about Halls in 2013 are the company values and a commitment to building a longterm future through creating shared value. read more Visit: www.hallsproperties.co.za mpumalanga Business 2013/14 80 focus Halls Properties Halls Properties, the property development arm of the Halls Group, invests in education, environmental awareness and enterprise development for a brighter tomorrow. L ong before terms such as corporate social responsibility, citizenship and shared value were part of the corporate lexicon, HL Hall & Sons was already applying the principles of investing in and supporting its local Lowveld community. Good citizenship is part of the Halls Group’s DNA. Halls has a long heritage of involvement in the Lowveld community. The company’s farm clinic has treated more than a million patients, and Halls donated the land for the city’s famous Botanical Gardens, and for the establishment of the Mpumalanga Provincial Government offices. Its environmental programmes have created awareness of and appreciation for the web of life within its own employee ranks, as well as the wider community. ‘Education has been singled out as the arena in which we can make the most meaningful contribution to the well-being of individuals and the nation. The bulk of our annual CSI spend is dedicated to supporting education at schools in our neighbouring communities,’ says James Aling, managing director of HL Hall & Sons Properties (Pty) Ltd. Efforts include everything from basic assistance such as purchasing eco-friendly Wonderbags for school feeding programmes, to providing scholarships to Cyril Clark matric pupils. Halls has partnered with Penreach, the award-winning school development programme that works to improve the quality of teaching and learning in Mpumalanga. In excess of 350 000 learners benefit directly from Penreach annually. On Saturday mornings, as part of the Pipeline out of Poverty project, learners from Cyril Clark Secondary School are transported to the Penreach programme for expert tuition in maths and science – and it’s Halls that makes this weekly journey on the road to improved year-end results possible. Halls Properties strongly believes in empowering communities to manage their space and destiny. In this regard, the company was the founder of the Riverside Park Precinct Association (a not-for-profit entity) set up to manage and promote the Riverside Park precinct as a registered City Improvement District (CID). Halls Properties has sponsored a number of events aimed at increasing read more Visit: www.hallsproperties.co.za 81 awareness about the environment, cleaning and managing the communities we live in. To this end, Halls Properties, together with Mbombela Local Municipality and the Phumulani community, supported and sponsored a clean-up day in the Phumulani community. More recently, Halls Properties again partnered with Mbombela Local Municipality and co-sponsored a World Earth Day event with 30 schools in the area to increase awareness about the necessity of taking care of our natural surroundings. Halls Properties also believes that enabling and supporting individuals through enterprise development initiatives based on commercial principles is one sure way of making an enduring difference. The Basisa enterprise development initiative, consisting of a group of previously unemployed individuals, is now a tight-knit team rendering landscaping and cleaning services to Halls. ‘We subscribe to the principle of doing good while doing well,’ says James. ‘Every life touched and transformed is a stone that causes many positive ripples in society’s pond, so to speak.’ mpumalanga Business 2013/14 overview Energy New plants are adding power to Mpumalanga. Kendal Power Station in Mpumalanga is among the largest coal-fired power stations in the world. he provincial government of Mpumalanga has conducted a pre-feasibility study into building a hydroelectric plant at Nkomazi, a sign that South Africaâ€™s biggest producer of coal-fired power is looking at alternative ways of generating energy. Independent power producers have expressed interest in the project and with a number of strong-running rivers and steep ravines in the province, water power certainly has potential. The first two rounds of the national process to allocate renewable-energy project bids focused mainly on solar and wind power, so the three Cape provinces received most of the bids. When the quotas for hydro power and biomass come to be filled, Mpumalanga may well be in line for more than one project. An Integrated Renewable Energy Potential map for the province is to be developed. Most of the nationâ€™s power stations are in Mpumalanga. Three previously mothballed power stations have been re opened. Camden, near Ermelo, was the first to come back on stream, with 1 520MW being added to the grid. Komati and Grootvlei are on stream again and will eventually be contributing 800MW. Arnot and Kriel have been upgraded while the refurbishment of Matla power station is underway. The massive Duvha power mpumalanga Business 2013/14 T sector insight York Timbers and Assmang are building cogeneration plants. â€˘ The provincial government is promoting a hydroelectric scheme in Nkomazi. station has a capacity of 3 450 megawatts. The new coal-fired power station being constructed at Kusile near Delmas in the eMalahleni municipality will add 4 800MW to the grid when complete. Several delays have pushed back the date when power can first be expected: latest indications are 82 overview that it will come on stream in December 2014. National government has reduced the target for the penetration of biofuels in the country’s liquid-fuel supply. The new figure of 6% by 2020 is about half what analysts and entrepreneurs in the field had been hoping for. The national strategy still holds great potential for Mpumalanga. Sugar cane and sugar beet are recommended as the best feedstocks for bioethanol while soya beans, sunflower and canola are seen as the best for producing biodiesel. All but one of these plants, canola, is already well established in Mpumalanga (and global giant Monsanto has applied for permission to plant genetically modified canola near Witbank). Mpumalanga is a leader in soya-bean production and permission has been granted for the establishment of a soya-oil extraction plant at Secunda, but the actual building of the plant has not yet begun. Some crops that are attracting researchers are cassava, sorghum and jatropha. The Mpumalanga Provincial Government has planted several thousand hectares of soya beans and sunflowers, distributed tractors and linked farmers in projects to the National Marketing Council to ensure that their products would find buyers. The Sipulazi Biofuel Cooperative has received R1.9-million from the National Development Agency to start planting and harvesting soya beans for biofuel. The National Department of Agriculture, Forestry and Fisheries and the SA Renaissance Farmers’ Trust are set to partner with the co-op in the venture. More than 100 farmers aim to supply 60 000 tons of soya beans. CGC & GF Green Energy SA is creating biomass pellets from wood waste in the Sabie region and exporting them to Europe. A scientific research project known as Hydrogen SA (HySA) is investigating the use of this powerful but volatile element as an energy source. Hydrogen and platinum, widely found in Mpumalanga, are used in the manufacture of fuel cells. Private power York Timbers, in the course of the R1-billion upgrade of its Sabie processing facility, will build a cogeneration plant that will produce about 15MW of electricity every year. Anglo American has plans to build a 450MW power station near Witbank to supply its platinum mines with electricity. Assmang is among several resources companies looking into establishing cogeneration plants. The ferroalloy producer intends building a 20MW plant to serve its smelter at Machadodorp. Another big Mpumalanga company, Evraz Highveld, is doing feasibility studies on creating its own power for use in its eMalahleni plant. Evraz produces steel and vanadium. Other Eskom is investing in a solarpower pilot project at its Kendal power station. Power company ABB has been contracted to build a solar photovoltaic power plant with a 620-kilowatt capacity that will be used to run some of the power station’s functions. The Combined Cycle Gas Turbines at Sasol’s Secunda complex in Mpumalanga have been generating power since July 2010 and can generate up to 280MW from natural gas. online resources Eskom: www.eskom.co.za National Department of Energy: www.energy.gov.za National Development Agency: www.nda.org.za National Hydrogen and Fuel Cells Technologies Research, Development and Innovation Strategy (HySA): www.hydrogen.qsens.net Sustainable Energy Africa: www.sustainable.org.za Sustainable Energy Society of Southern Africa: www.sessa.org.za 83 mpumalanga Business 2013/14 overview Water Water provision to municipalities is being prioritised. The expansion project at the eMalahleni water-treatment plant. M any municipalities in Mpumalanga have been struggling for some time to provide water for their citizens. In the 2013 State of the Province address, Premier David Mabuza promised that the provincial government would spend R30-million on water and sanitation in the financial year. Major projects to be undertaken include linking the town of Kriel to the Komati Water Scheme Augmentation Project, a 24km bulk pipeline at Acornhoek, a new water-treatment plant to service Bushbuckridge, and a pipeline to Delmas from Bloemendal. The Komati Water Supply Augmentation Project is being developed by the Trans-Caledon Tunnel Authority (TCTA) to provide water for the Duvha and Matla power stations in the Witbank area. A giant project that will transform the water-supply system in the eastern part of the country has been under construction for several years. The Olifants River Water Resource Development Project (ORWRDP) is an ongoing project in the eastern half of Limpopo that mpumalanga Business 2013/14 sector insight The Komati Water Supply Augmentation Project will service two power stations near Witbank. â€˘ Sasol intends improving its water-use intensity by 5%. will transform and control water usage for the maximum benefit of industrial, commercial and private users. As the catchment area for this huge scheme falls to the north of Mpumalanga, the spinoff effect on the province will be significant. The biggest part of the project is the De Hoop Dam on the 84 photo: Philip Mostert Vision A leading water services utility. Mission To provide water services towards improved quality of life. Goals Bushbuckridge Water has set the following strategic objectives in order to achieve its mandate within the context of government policies and priorities: • To provide water services • To provide water supply infrastructure services • To optimise stakeholder interaction • To ensure business development (existing and new business) • To promote effective water resource management • To ensure internal business excellence Values The organisation committed to uphold the following core values as to pursue its vision and mission: • Committed • Integrity • Considerate • Collaborative • Customer focused • Proactive • Continuous learning Portfolio of services • Abstract and treat raw water to potable water quality standards • Distribute potable water in bulk to consumers • Proper management of water resources • Water conservation and demand management • Local government support and management • Participate in planning and development • The provision of multi-disciplinary consulting services Contact details Customer call line: 0860 121 297 Tel: 013 750 0399 Fax: 013 750 0406 Email: firstname.lastname@example.org Head office: 8 Chief Mgiyeni Khumalo Drive, White River 1240 Website: www.bushbuckridgewater.co.za overview Steelport River, a tributary of which are thirsty activities. Old mines in particular present problems the Olifants River in Limpopo in that they can pollute groundwater. This means that Mpumalanga Province. has to conserve its waters, build more dams and commission new The Olifants River System water-treatment plants. (and associated systems such The R300-million water-reclamation plant built by Anglo Coal as the Blyde Irrigation Scheme) South Africa and BHP Billiton Energy at eMalahleni has proved such feeds the region that is South a success that the UN Conference on Climate Change (COP17) Africaâ€™s greatest producer of singled it out for praise. citrus and subtropical fruits. About 30-million litres of water are treated every day, with the The importance of a steady bulk of the potable water going to the eMalahleni Local Municipality supply of water to the mining and the balance going to the mines and coal-washing plants of sector (in the area south and the two companies. east of Polokwane and down Energy company Sasol is committed to improving its water-use into Mpumalanga) cannot be intensity by 5% by 2015 from the baseline of 2010. This will be calculated at its Secunda synthetic-fuel plant in terms of cubic metres overstated. Another large project rele- per ton of product. In addition, the company is working with the vant to Mpumalanga that has Govan Mbeki Local Municipality to help residents of the township been undertaken by TCTA, of eMbalenhle to conserve water. the state entity responsible The Komati Basin Water Authority (KOBWA) covers the major for financing and implement- rivers of the eastern Lowveld, the Lomati and Komati. KOBWA is a ing bulk raw-water infrastruc- bi-national agency with Swaziland and South Africa, each supplying ture, is the Vaal River Eastern three members to the commission. Phase One of the Komati River Subsection Augmentation Basin Development Project entailed building dams in South Africa Project ( VRESAP). T his (Driekoppies) and Swaziland (Maguga). R2.7-billion project transfers About 137-million litres of water are supplied on a daily basis to water from the Vaal Dam about 1.2-million people in the Bushbuckridge and Mbombela local to an area near Secunda in municipalities by Bushbuckridge Water. The company runs 11 waterMpumalanga. Eskom and treatment plants, two river schemes and a sewage-treatment plant. Sasol then extract water Ehlanzeni District Municipality has a water and sanitation unit. from the Trichardtsfontein The White River Water Augmentation Scheme has improved water and Bosjesspruit dams for supplies in the White River area. their plants that have recently Rand Water currently provides water to all but one of the local expanded their production municipalities in the Nkangala District Municipality (western region) capacity. and one of the local municipalities in the Gert Sibande District Four large rivers run Municipality in the southern part of the province. through Mpumalanga: Usutu, Crocodile, Sabie-Sand and Komati, but most of them are online resources stressed, being asked to deliver water for industry and huBushbuckridge Water Board: www.bushbuckridgewater.co.za man settlements beyond their De Hoop Dam: www.dhcw.co.za capacity. The catchment areas Inkomati Catchment Management Agency: www.inkomaticma.co.za are Olifants, Nkomazi, Usutu Komati Basin Water Authority: www.kobwa.co.za and Upper Vaal. National Department of Water Affairs: www.dwa.gov.za The provinceâ€™s three biggest Trans-Caledon Tunnel Authority: www.tcta.co.za industries are forestry, mining Water Institute of South Africa: www.wisa.org.za and power generation, all of mpumalanga Business 2013/14 86 profile Komati Basin Water Authority The Komati Basin Water Authority aims to stimulate and enable development within the Komati Basin. The Driekoppies Dam in Mpumalanga supplies irrigation water for agriculture projects in the area. Vision To be an international centre of excellence in integrated transboundary water resource development and management. of the project commenced in 1993 with the construction of the Driekoppies Dam in Mpumalanga. The dam started storing water in 1997. In 1998, the construction of Maguga Dam began and storage of water started in 2001. Mission To stimulate and facilitate development within the Komati Basin and avail its services to other basins in line with the party-states development strategies. The Komati Basin Water Authority (KOBWA) is a binational project of the governments of the Republic of South Africa and the Kingdom of Swaziland. It is a result of the treaty on the development and utilisation of the water resources of the Komati River Basin, signed in 1992. After this agreement, development Strategic objectives • • • Managing the water harvested by the dams in an effective and efficient manner Phasing out ‘resettlement function’ and making the transition to its new role in ‘risk management, quality and socioeconomic development’ Effectively liaising with all stakeholders to promote strong relationships, collaboration and cooperation mpumalanga Business 2013/14 87 profile • Ensuring sound and effective human resources, financial and administrative management of KOBWA to meet internationally accepted corporate governance requirements • Constructing ablution facilities and providing water tanks for Intfutfuko yabo Gogo (Schulzendal), the Methodist Church in Middleplaas, Sisini Primary School and Tinhlonhla High School KOBWA has contributed to development in the Komati Basin by supporting: • An increase in usable water that allowed for a total of about 13 200 hectares of new irrigated KOBWA is headed by a chief executive officer land and increased capacity of Malelane and under whom there are three senior managMhlume mills and the construction of a new ers that manage three departments, namely: Corporate Support Services, Water Resources, mill near Komatipoort • Supplying Mozambique with the agreed and Environment and Development. share of water at height assurance, thus Corporate Support Services promoting international cooperation • Ensuring water supply to Malelane, This department is responsible for the implementation of sound corporate governance principles, Schoemansdaal, Tonga and Piggs Peak • Creating opportunities for tourism, recrea- provision of financial and administrative support tion and commercial enterprise along the services, human resources and information reservoirs management. • A multi-million-rand nursery that is currently under construction at Middelplaas Water Resources Management (Phindulwandle). This nursery will benefit Water Resources Management ensures that the traditional healers who live around the area physical structure of the dams remains intact of Driekoppies Dam through proper maintenance and monitoring. Operational structure The Gomora Water Project in the Nkomazi Local Municipality. mpumalanga Business 2013/14 88 profile In order to achieve this, the public is encouraged to update an Emergency Preparedness Plan (EPP) so that human, social, economic and environmental losses are minimised. It also implements operating rules for the management of the river system that include: water resources, availability assessment and water reticulation. The two governments have engaged the Komati Basin Water Authority as an implementing agent by utilising its expertise in the Komati Basin. In Mpumalanga, mobile water projects have been installed to augment water supply and also for purifying raw water. Communities that are benefiting from these projects are: Buffelspruit, Gomora and Block-B in the Nkomazi Local Municipal area in Mpumalanga. Block-B water, which augments water supply to Block-B residents. The water project in Gomora A section of the Phindulwandle Nursery. aims to augment water supply to residences. The water source left better off than they were prior to project imfor this area is the Driekoppies Dam. During periods of high demand, there were plementation. The corporate social responsibility shortages of water and the construction of this (CSR) projects aim to ensure that communities in plant aimed to ensure that the community is the basin still benefit from the project by improving assured of a constant supply of water. access to water and improved sanitation. The aim of the Buffelspruit Water Project is to treat raw water before it is routed to domestic outlets. Previously, residents were supplied with untreated, raw water. Environment and Development This department is concerned with environmental and social issues that are related to the implementation of the project. These include the resettlement of affected homesteads at both dams to ensure that people affected by the project are contact info Tel: +27 13 781 0317/9 Fax: +27 13 781 0320 Email: email@example.com Postal address: PO Box 518, Malelane 1320 Website: www.kobwa.co.za 89 mpumalanga Business 2013/14 profile Inkomati Catchment Management Agency Water for all in Inkomati. The Inkomati Catchment Management Agency (ICMA) is the first of nine catchment management agencies to be formed by the government of South Africa. The agency was formed in order to be responsible for the protection, conservation, development and management of the water resources in South Africa at the water management area (WMA) level. The central objective of the ICMA is to ensure that water is used to support equitable and sustainable social and economic transformation and development in South Africa. • Mission The ICMA’s mission is of a pioneering catchment management system that empowers stakeholders to engage in consensual and adaptive decision making, to achieve reform, and to promote persistent social, economic and environmental justice across the Inkomati catchment area. • • The ICMA manages the resources adaptively, cooperatively and progressively to achieve social, economic and environmental justice, and promote healthy living Values The ICMA acknowledges the interdependence of its responsibilities for caring for the resource and there is explicit recognition of the diversity achieved by what individual/group contributes to promoting equity, efficiency, and sustainability as defined in the National Water Act Decisions, actions and outcomes are subject to performance evaluation against measurable goals, indicators and timeframes The ICMA strives for a trusting, transparent and corruption-free system of catchment management that is cognisant of existing • The ICMA supports the cooperative management of the Inkomati basin as an internationally shared water source The decision-making environment of the ICMA, including delegated functions, enables collaborative action towards equity, sustainability and efficiency in a continually evolving socioeconomic system • • mpumalanga Business 2013/14 90 profile agreements and promotes fairness before the law, environment and economic development Management is adaptive, open to critique and outcomes-driven, with solutions being practical, achievable and implementable The ICMA practises problem-solving that embraces: °° Ethics of Ubuntu ( humanity is defined by how others experience our behaviour), Simunye (we are one) and Bathe Pele (people first) °° C o n s e n s u s - d r i v e n stakeholder participation Decisions within its mandate are made and are justified on the basis of the best available social, technical, economic, environmental and governance knowledge Requirements to be addressed by the ICMA Some of the duties of the agency are to ensure that: • Water resource reserves and quality is maintained • The national water resource strategy is supported • Strategies, objectives, plans, guidelines and procedures are formulated in order for the agency to best protect, use, develop and manage the water resources within its water management area • Water allocation plans are produced in order to set out principles for the allocation and distribution of water in the nation • Allow the public to participate in managing the water resources within its management area • Needs and expectations of existing and potential water users are met • Support for the national water resource strategy is rendered The ICMA has been set out as the main pioneering agency in this effort to ensure that the current and future water needs of the people of South Africa are secured. This initiative also aims to ensure that the people of South Africa are educated regarding water issues to ensure a maximum and effective application of the limited water resources in our nation. • • • Founding principles of the ICMA Sustainability In order to ensure ecological and socioeconomic sustainability for the future of the nation, water resources have to be carefully managed. Equity Ensuring that water is equally distributed to all citizens of South Africa beginning with those that were historically denied of this basic human need, while taking into account neighbouring countries sharing the same rivers with the people of South Africa. Efficiency/optimal use Ensuring that the scarce commodity of water is allocated to broad effective use in order to support a diverse, robust and stable economy. The ICMA draws its mandate from the National Water Act (No 36 of 1998) that requires water to be equally distributed to all as a human right. The government has resorted to implementing strategic agencies that will ensure management and distribution of water is efficiently and effectively done for the benefit of all South African citizens. contact info Sylvia, Manager: Marketing and Communications Tel: +27 13 753 9000 Postal address: PO Box X11214, Nelspruit 1200 Email: firstname.lastname@example.org Website: http://inkomaticma.co.za 91 mpumalanga Business 2013/14 interview Managing water resources is key Dr Thomas Gyedu Ababio, acting CEO of the Inkomati Catchment Management Agency, gives insight into the role that the organisation plays in ensuring all community members have access to clean water. Dr Thomas Gyedu Ababio Please give a general overview of the Inkomati Catchment Management Agency, with particular focus on its operations in Mpumalanga. The National Department of Water Affairs established the Inkomati Catchment Managment Agency (ICMA) in 2005, and launched it in 2006. We have a vision to have water for all in Inkomati, which means we are trying to provide water for all in the Inkomati WMA and even the rural areas. We are not in charge of water services, but we manage the water resources. We encourage participation so that we involve all the stakeholders in water resource management. We also have the water resource protection section of the ICMA. They look at new developments and ascertain their impact on water resources, so that we can protect people from mine development and the increased pollution that goes with it. The ICMA also has the river operations system that looks at the water quantity, reliability and how we should distribute it so that everyone gets a share. We have established a model that ensures that if an amount of water is given to users, the environment does not suffer. In the low season, we restrict certain areas before others, but we donâ€™t do it unilaterally. We also have a division called water resources planning and coordination. They look at the planning and deal with our Catchment Management Strategy (CMS). We also have another division called water utilisation, which looks at water use. So in Mpumalanga, we try to manage water resources on behalf of Water Affairs, as an agent. How does the organisation attract and retain the most skilled people for its staff complement? When the ICMA was established, there was a clause that stated that people would be transferred from the Department of Water Affairs to the ICMA. Then the transfers started and we realised that our remuneration package was a bit lower than that of Water Affairs. So we had to restrategise in such a way that we biography Dr Thomas Gyedu Ababio has a PhD in Water Quality from the University of Port Elizabeth (now NMMU). He began his career as a catchment coordinator for water, and managed the Rand Water resources in the Vaal Dam. He was there for six years. Thomas is the recipient of the PMR Golden Arrow Award for his work in the water industry. For 10 years, he was the Manager of Water Resources at the Kruger National Park. Thomas joined the ICMA in April 2013 and is the acting chief executive officer. mpumalanga Business 2013/14 92 interview (WUA). In the past, the Irrigation Board was comprised of white males, but now we want everybody who is using this water to be part of the association. Is the ICMA actively looking for investors? What would the investors have to gain? Injaka Dam, Sabie river sub-catchment. could retain the necessary employees and attract more. Does the company offer any skills development programme to the community as well as its staff? We do. For the community, we have the institution and the participation sections of the ICMA. They do capacity-building, so that when we talk about water resource management, people know what it means. We hold catchment forums where people engage and participate. We have people who come and lecture, and we take the participants on field trips. We have bursary scheme for staff who want or need further training. Please highlight some upcoming events and developments in the 2013/14 period. The one is the Catchment Management Strategy. The Minister gazetted it, and we have been given a timeline to solicit comments from stakeholders. It expired on 16th April, so now we are going to consolidate all the comments and implement the strategy fully. The key focus of the CMS is the verification and validation system that is ongoing, to make sure the right people are using the water and in the right amounts. By the end of the year we will be finished with the verification, and move on to the water allocation plan. You cannot allocate water if you are not sure who is using the water and how much is available at that location. The capacity-building is ongoing in that regard. Another development is transforming the Irrigation Board into a Water User Association Yes. A good example is the twinning agreement with the water authorities from the Netherlands. They provide a form of training, and when they are here to visit, they look at the way we do our public participation. We learn transboundary water management from authorities in the Netherlands and in Germany, and we then return to South Africa and implement it. They come here and learn about public participation, so the relationships are mutually beneficial. Another example is that the foreign water authorities are organising a conference in September because they are interested in our strategic management. Conferences like these are investments in our employees (capacity building). We welcome investment depending on the scope and objective. Please highlight some of the challenges facing the ICMA. One of the challenges was the formation of the Irrigation Board and then the establishment of new User Associations. The people on the Board have been there for a long time, so there has been some resistance from them as they own the infrastructure and the assets. If new members wish to join, they must contribute. If we have assets, we share them, if we have liabilities, we share them. The HDIs need money so that they can hire somebody to help run the WUA for them, if it is a WUA for emerging farmers who do not have the necessary skills. The second challenge is pollution from the municipality, agriculture, and the mines. The municipal pollution is a biggest challenge, but we have arranged to meet with them at a strategic level in order to be part of their planning process. From that point, we will be able to advise them. mpumalanga Business 2013/14 93 overview Banking and financial services New approaches are making housing affordable. he percentage of South Africans who use banks is steadsector insight ily increasing. The Finscope 2010 survey found that 77% of adults (more than 25-million people) are ‘financially Absa and MEDO are teachincluded’ and that 63% of that group use formal banking ing financial skills to young entrepreneurs. services. This is in sharp contrast to the 2003 figure of about 50%. • Standard Bank has secured The four major national retail banks (Absa, Standard Bank, First the provincial government National Bank and Nedbank) are well represented in Mpumalanga, banking contract. with branches in all major towns and cities and extensive ATM • Absa DevCo and three tiers networks reaching far into the rural areas. of government are working Capitec Bank is rapidly closing in on the Big Four, as its prestogether on the Klarinet ence in 43 branches in 10 towns in Mpumalanga shows. Ridge housing scheme. Financial literacy is an important part of the requirements for running a business, an issue that a joint project of Absa and the Mpumalanga Micro Enterprise Development Organisation (MEDO) dedicated units such as Absa is addressing. Sixty young entrepreneurs in the Steve Tshwete Agribusiness. Local Municipality received training in financial-management Another source of funding skills in the 2012 year. for farmers is the Land and With agriculture being such an important part of the provincial Agricultural Development economy, each of the Big Four has specialists in the province and Bank of South Africa (Land mpumalanga Business 2013/14 T 94 overview Bank), a development-finance smartphones and tablets. Introduced in 2012, the device turns institution that falls under the phones into terminals. In 2012, Absa took over Edcon’s card Ministry of Finance. portfolio, massively increasing the bank’s reach (Edcon brands In 2011, a Land Bank re- include Edgars, CNA and Jet). port Addressing Challenges of Absa’s Entry Level and Inclusive Banking (Elib) branches have Financing Emerging Farmers proved very popular, accounting for an increasingly high percentcalled for a restructuring of the age of the bank’s loans, despite still representing quite a small way in which emerging farm- number of actual branches. ers are supported. The report In 2012, Nedbank launched Approve-it™, which allows cusfound that 43% of the farmers tomers to accept or reject an internet transaction by cellphone. FNB has a wide range of cellphone-banking options and in financed by the bank over the previous decade had suc- 2012 it launched a Facebook application whereby cellphone ceeded. The report found that vouchers can be posted on the social-networking site. The eWallet financial institutions are ‘not application converts the voucher into cash or airtime. very responsive’ to farmers’ Standard Bank’s community-banking initiative offers a low-cost conditions and that support cellphone-banking service. Retailers can act as agents for the packages were vital in helping bank, even in very remote rural areas. Shops such as Shoprite, farms to become viable. Pep and Spar are connected, as are certain spazas. Standard Bank has a new Another area where banks are growing new markets is in black economic empowerment affordable housing. Absa Property Development (Absa DevCo) has entered a agricultural fund designed to support emerging farmers. The partnership with municipal, provincial and national government R500-million fund is designed to help provide mixed housing in the R1.6-billion Klarinet Ridge to connect farmers who have project in the eMalahleni municipality. The lead agency is the National Department of Human received farms in land reform projects to agri-businesses Settlements. Housing options range from subsidised housing, rental and sectional-title flats and bonded homes. The intenthat will buy their produce. Standard Bank reported tion is that a sustainable community with relevant amenities in September 2012 that it has be created, rather than a sterile development comprising only signed up 20% of the coun- ‘matchbox’ houses. try’s local and district municiAbsa DevCo is backed by private investments, and is a joint palities and it does the banking landowner as well as the project’s developer. for three provinces, including Mpumalanga. New customers, new technology All of the big banks are competing to attract new customers and they are using the latest technology to get the edge in a growing market. Absa’s partnership with Thumbzup allows shops to accept card payments with online resources Auditor-General of South Africa: www.agsa.co.za Banking Association South Africa: www.banking.org.za Financial Services Board: www.fsb.co.za Institute of Bankers in South Africa: www.iob.co.za Insurance Institute of South Africa: www.iisa.co.za Land and Agricultural Development Bank of South Africa : www.landbank.co.za Office of the Ombudsman for Banking Services: www.obssa.co.za Public Investment Corporation: www.pic.gov.za South African Reserve Bank: www.resbank.co.za 95 mpumalanga Business 2013/14 interview Franchising is key to economic growth Andre Rosslee, Head of Sector Solutions at Absa Retail and Business Banking, gives advice to individuals hoping to buy into a franchise. Please give an overview of Absa’s franchise offerings, with particular focus on Mpumalanga Province. Andre Rosslee biography Andre Rosslee is a qualified food technologist and completed an MBA through the University of Wales. He has obtained a number of manufacturing, marketing, management, HACCP and ISO qualifications. Andre worked in a wide range of disciplines within the manufacturing and wholesale and retail sectors, ranging from the regulatory through to marketing, sales and distribution environment. Andre is also a member of a number of industry associations. For franchiserelated enquiries, contact Absa on +27 11 350 8000 or send an email to email@example.com. mpumalanga Business 2013/14 Absa offers franchise customers a range of market-leading operational, lending and investment products. Our solutions are aimed at optimising banking value, reducing risks and enhancing cost efficiencies. Among our operational products are cash management and payment solutions, merchant services, electronic banking, business insurance, commercial asset finance and commercial international banking. Successful businesses view their bank as more than a means of finance: your banker, supported by our franchise specialists, is a valuable business partner who can not only recommend the right banking solutions for your needs, but can offer business-specific advice as well. Whether a single unit or multi-unit franchise owner, Absa has the solutions to suit the business. What tips would you give a franchisee planning to apply for funding? Do your homework and preparation thoroughly. Be realistic with the cash flow and financial projections. This should be based on actual figures achieved by existing franchisees. Demonstrate your ability to manage staff, finances, marketing initiatives and the day-to-day running of the business. Franchising isn’t a ‘get rich quick’ scheme and requires the same amount of effort and time as any business to make it successful. Be prepared to work hard and ensure that you have the support of your family. To what do you attribute your Absa’s success within the franchising sector? Absa recognises the vital role played by the franchise industry in creating wealth and employment opportunities. We believe in partnering with our franchise clients and have established a dynamic team with the aim of intimately understanding the industry and using this knowledge to deliver the most competitive products and innovative solutions. 96 Franchise Absa is committed to the growth and prosperity of the South African economy and recognises the vital role played by the Franchise industry in creating wealth and employment opportunities. We believe in partnering with our franchise clients and to this end have established a dynamic team focused on the franchise industry with the aim of intimately understanding the industry and using this knowledge to deliver the most competitive products and innovative solutions. With more than 15 yearsâ€™ experience in the franchise industry, the team has established a credible track record amongst South Africaâ€™s top franchise companies and through an extensive network of Relationship Executives backed by our Franchise Industry Specialists, Absa provides our clients with the best the bank has to offer. For more information please contact us on 011 350 9727 or at firstname.lastname@example.org Absa Bank Ltd. Reg No 1986/004794/06. Authorised Financial Services Provider. Registered Credit Provider. Reg No NCRCP7. overview Development finance and SMME support Depressed rural areas are the focus of many small business initiatives. sector insight A total of 191 co-operatives are registered in the province. • The National Development Agency has funded projects worth R45-million in Mpumalanga. • Seda secured R3.3-million from the private sector to support co-operatives. • T h e Mpumalanga Stainless Initiative supports entrepreneurs. The NEF’s Strategic Projects Fund has a five-year pipeline of R30-billion. The focus of this fund is large projects, but small enterprises will benefit from ith so many rural people living in poverty, it is in related contracts. these areas that national and provincial government National government has is looking to support start-up businesses and co- more recently created a new operatives. The Comprehensive Rural Development agency to spur the development Programme is often at the centre of these initiatives. of SMMEs, the Small Enterprise A number of rural initiatives in 2012 were led by the Mpumalanga Finance Agency (sefa). Economic Growth Agency (MEGA). The new agency falls under The Mpumalanga Department of Economic Development and the Industrial Development Tourism (DEDT) reported in 2012 that the National Development Corporation (IDC), one of the Agency (NDA) had made funding to the value of R45-million avail- biggest and most significant able for projects in the province. The NDA’s main mandate is to agencies in economic development in the country. help eradicate poverty. The Small Enterprise The provincial government of Mpumalanga will soon introduce Development Agency (Seda), a Co-operatives Preferential Procurement Policy. At national level, the launch in 2011 of the Enterprise Development which falls under the IDC, is Fund (EDF) by the National Empowerment Fund (NEF) was a actively supporting co-operapositive step in providing more funding for start-up businesses. tives. Where there are no Seda Norah Nthako, principal of Dinor Catering, one of the small businesses that services Greenside Colliery. W mpumalanga Business 2013/14 98 photo: Anglo american overview offices, 14 information kiosks have been established and the agency managed to find R3.3-million in support from private companies for various co-operative activities. Seda assists new businesses in drawing up business plans and gaining access to finance, helps train entrepreneurs in running a business and helps companies gain access to markets. There are five branch offices of Seda in Mpumalanga and a further four sites that form part of the Seda Technology Programme (Stp): • Mpumalanga AgriSkills Development and Training, Nelspruit • Sugar Cane Incubator, Malelane • Mpumalanga Stainless Initiative, Middelburg • Timbali, Nelspruit The Timbali initiative coordinates the growing programmes of a number of small farmers and helps to get products to market. The main focus of the IDC in Mpumalanga is mining, wood and paper. Investments in the province of R1.5-billion have created approximately 12 000 jobs. Pipeline projects worth R169-million are soon to come on stream, with R23-million already allocated for the construction of the eMalahleni Private Hospital in Witbank. About 100 jobs will be created at the hospital. The IDC has a regional office in Nelspruit and supported the establishment of the Umjindi Development Agency. An investment of R31.5-million is supporting a sustainable tourism project in Hazyview and the IDC has a 29.8% share in York Timbers Holdings. The signing of an agreement in 2009 between the IDC and Brazil’s development bank, BNDES, holds great potential for Mpumalanga sugar-cane growers because of the focus on the development of bio-ethanol from cane. Columbus Stainless is the key private partner in the Mpumalanga Stainless Initiative (MSI) whereby entrepreneurs are guided and given access to services to help them start businesses in the stainless-steel industry. This is an initiative of Seda and has the support of MEGA. The Middelburg Chamber of Commerce and Industry is a big supporter of small business. In 2012, it trained more than 300 SMMEs in general business practices, more than 200 were trained in computer-literacy skills and 15 SMMEs were professionally mentored. Anglo American Zimele, which runs four enterprise development and investment funds, helps start and expand small, medium and micro enterprises. The initiative received a huge shot in the arm two years ago when a system of hubs was established, with managers assigned to each hub. Since then the number of projects has grown very quickly and Zimele has processed about R500-million in loans, and two applications are received every day. The Thermal Coal Hub has five Mpumalanga centres already established with another two due to open in 2011, and the Platinum Hub has two centres located in the province. The Mondi Zimele Hub in Piet Retief considers businesses in the supply chain and forestry. Zimele is supporting a bottled-water business that employs seven people at the eMalahleni water-reclamation plant. online resources Development Bank of Southern Africa: www.dbsa.org Industrial Development Corporation: www.idc.co.za Land and Agricultural Development Bank of South Africa: www.landbank.co.za Middelburg Chamber of Commerce & Industry: www.middelburg info.com Mpumalanga Economic Growth Agency: www.mega.gov.za Mpumalanga Stainless Initiative: www.mpstainless.co.za National Department of Trade and Industry: www.thedti.gov.za National Development Agency: www.nda.org.za Small Enterprise Development Agency: www.seda.org.za Small Enterprise Finance Agency: www.sefa.org.za 99 mpumalanga Business 2013/14 interview Key projects boost economy Mashweu Matsiela, the IDC’s Regional Manager: Mpumalanga, explains the role the organisation plays in developing key projects in the province. Please give relevant examples of projects in key sectors in the province. Mashweu Matsiela biography Mashweu Matsiela has held various positions at the IDC prior to his appointment as Regional Manager: Mpumalanga, including Senior Account Manager: Metals SBU, Senior Post Investment Associate at the Post Investment Monitoring Department, Account Manager at Franchising SBU, Manager: Equity Investments, Account Manager: Agro-Industries and Business Analyst: Agro-Industries. Mashweu has a number of post-graduate qualifications, including an MBA from the University of Pretoria. Some of the projects in Mpumalanga are: Forestry, sawmilling and wood products: Sitha Ka Msithi Farming & Projects (eMkhondo), York Timber (Sabie), Elegant Line Trading (Sabie), Interactive Trading (eMkhondo), Sandveld Saagmeule (Mbombela), White River Saw Mills (White River), Zebrapellets (Sabie) • Mining: Pembani Coal (Carolina), Sudor Coal (Bethal), Diesel Power Opencast Mining (eMalahleni), Genet Mining (eMalahleni) • Manufacture of metals, metal products and machinery: Tunica Trading (Malelane), Bethesda Omheinings (eMalahleni), Columbus Stainless (Middelburg), Quality Steel Engineering (Mbombela), Tubular Construction Projects (Klatinet), Ceneco Consulting (eMalahleni), Holder Distributors (eMalahleni) • Healthcare: eMalahleni Private Hospital (eMalahleni) • ICT: Xuma Technologies (networking-based contracts with Thembisile Municipality) • Tourism: The Wineglass Hotel (Mbombela) and Amani Lodge & Conference Centre (Mashishing) • In which of Mpumalanga’s economic sectors do you feel the IDC’s intervention is needed the most? Mainly in economic sectors that have a high job-creation potential such as agri-processing, mining and tourism, all of which are key sectors within Mpumalanga. The province is well endowed with arable agricultural land, mining resources and tourism activities. It is important for the IDC to invest in these sectors as they have a high potential for job creation and foreign-exchange earnings. The high developmental impact resulting from investments in these sectors would benefit the rest of Mpumalanga, including rural areas, as these sectors cut across the province. mpumalanga Business 2013/14 100 overview Education and training Several new institutions are adding to educational options for young people in Mpumalanga. sector insight A Mathematics, Science and Technology Academy is being established. • The first cohort of trainee teachers is studying at Siyabuswa campus. • Nelspruit has an impressive new Scout Centre. of programmes. The Mpumalanga Regional Training Trust (MRTT) is a Section 21 company very active in skills training. It has several sites in the province, including a Hospitality and Tourism Academy at Karino just outside Nelspruit. The MRTT’s constructiontraining facility is accredited as a Construction Centre of Excellence and offers courses in brick-laying, plumbing, carpentry and other constructionrelated skills. The Fluor Training Centre in Secunda offers training in fields such as fitting, welding, pipefitting and other building trades. Over the years, more than 30 000 people have studied at the centre, which is accredited with the Metal and Engineering Industries Training Board (merSETA), the Construction Education & Training Authority (CETA), and the Chemical Industries Education and Training Authority (CHIETA). …Continued on pg 104 The Southern African Wildlife College offers certificates and courses. he provincial government of Mpumalanga has committed to build, in the 2013/14 financial year, an academy for Mathematics, Science and Technology. This will be linked to 100 schools through four district hubs and will provide support for teachers and pupils. This is just one of many new initiatives that are taking place in the province to boost education. The National Department of Higher Education and Training has confirmed that a university will be established in Mpumalanga with the first intake due to start lessons in 2014. The first group of teacher trainees has started studying at the Siyabuswa campus. National Higher Education and Training Minister Dr Blade Nzimande is quoted by the Mpumalanga Mirror as stating that there would be a ‘conversion of the college into a campus of the new university, focusing initially on training new teachers’. The Marapyane Agricultural College has been opened and 120 students have enrolled. A multi-million-rand building has gone up in Nelspruit designed to equip young people with skills and help them learn good values. The Umckaloaba Foundation has sponsored the building of a new Scout Centre that will benefit more than 2 000 scouts. The German state of North Rhine-Westphalia is linked with Mpumalanga and the foundation’s work forms part of this connection. With the need to train more people a national priority, organisations in Mpumalanga are undertaking a number mpumalanga Business 2013/14 T 102 photo: south african wildlife college Mrs Reginah Mhaule, MEC for Education overview The Southern African WildProvider Skill Numbers life College, offering Higher Mpumalanga Regional Hospitality and 1 240 school and Advanced Certificates in Training Trust Tourism, Technical, leavers Wildlife Management as well Entrepreneurship as short courses in conservaProvincial government Scarce-skill bursaries 200 tion, is a joint World Widelife Eskom Scarce-skill bursaries 116 Fund South Africa (WWF-SA) Provincial government Artisans 90 per CRDP and Peace Parks Foundation municipality* initiative. These certificates are offered in the Higher Education Skills plans field. The college is located near (*Comprehensive Rural Development Programme) the Orpen Gate on the edge of SOURCE: State of the Province Address, February 2012 the Kruger National Park. Unisa, the Tshwane Univer- Priorities sity of Technology and the Vaal University of Technology cur- The priorities of the Mpumalanga Department of Education are to rently have satellite campuses expand early childhood development programmes, to promote in the province. skills development, especially through FET colleges, and to conJust over 36 000 students tinue to invest in school infrastructure. Technical schools are to be upgraded and laboratories are to be are enrolled at the province’s three further education and constructed at selected schools that focus on mathematics and training (FET) colleges: Gert science, the Dinaledi schools. A total of 832 254 pupils in primary and secondary schools are Sibande (five campuses), Nkangala and Ehlanzeni, which has beneficiaries of the school nutrition programme and 1 604 schools seven campuses, including the in the province are in the ‘no-fee school’ category. headquarters in Nelspruit. A number of small farm schools are being closed as part of a Ehlanzeni FET College of- province-wide plan to introduce boarding facilities for rural chilfers 10 National Certificate (Vo- dren. About 500 pupils, many of whom are the children of labour cational) programmes includ- tenants in the Ehlanzeni district, have been accommodated in a ing ICT, finance, economics bigger school. and accounting, engineering Mpumalanga has 332 Adult Basic Education and Training (Abet) and related design and tour- centres catering to approximately 25 000 adult students. ism. There are also a number of shorter skills courses on offer: automotive repairs and online resources maintenance, computer skills, Association for the Development of Education in Africa: entrepreneurship, municipal www.adeanet.org administration and communiEhlanzeni FET College: www.ehlanzenifet.co.za cations management. Gert Sibande FET College: www.gscollege.co.za Nkangala FET College ofMpumalanga Department of Education: fers Civil Engineering and www.mpumalanga.gov.za/education Building Construction at its Mpumalanga Regional Training Trust: www.rttrust.co.za CN Mahlangu campus and National Department of Basic Education: www.education.gov.za Electrical Infrastructure ConNkangala FET: www.nkangalafet.edu.za struction at three of its camSouthern African Wildlife College: www.wildlifecollege.org.za puses, among its seven NCV Umckaloabo Foundation: www.umckaloabo-stiftung.de academic programmes. mpumalanga Business 2013/14 104 Ehlanzeni FET College Striving towards excellence in education & training There are currently 10 NC (V) programmes on offer: • • • • • • • • • • • • • • • • Management Information technology and communication Primary agriculture Hospitality Finance, economics and accounting Hospitality Engineering and related design Electrical infrastructure construction Civil engineering and building construction Business management Financial accounting Public management Public relations Electrical engineering Mechanical engineering Civil engineering Skills programmes: • • • • • • Nated programmes on offer: • • Management Human resource management Automotive repairs and maintenance Computer practice Economic and legal environment Entrepreneurship Municipal administration Communications management Central Office Tel: +27 13 752 7105 Fax: +27 13 752 4902 Physical address: 29 Bell Street, Nelspruit 1200 Postal address: Private Bag X 11297, Nelspruit 1200 Website: www.ehlanzenicollege.co.za Barberton Campus Tel: +27 13 712 6640 Fax: +27 13 712 7544 KaNyamazane Campus Tel: +27 13 794 3767 Fax: +27 13 794 1389 Mapulaneng Campus Tel: +27 13 795 5069 Fax: +27 13 795 5357 Mlumati Campus Tel: +27 13 785 0022 Fax: +27 13 785 0214 Mthimba Campus Tel: +27 13 798 3531 Fax: +27 13 798 3535 Nelspruit Campus Tel: +27 13 741 3016 Fax: +27 13 741 3017 profile Ehlanzeni FET College Ehlanzeni FET College is striving towards excellence in education and training. Dr Mlangeni (chief executive officer of Ehlanzeni FET college) with graduate. In order to open the doors of learning and cul- Mlumati, Barberton and KaNyamazane ture and contribute to economic growth, a new Technical Colleges. Mthimba Campus speciallandscape for FET colleges had to be shaped. ises in primary agriculture, with a total enrolment It represents a significant and decisive breach of about 350 students. from the old education system of technical vocational education and training (TVET). The college has successfully delivered many learnership and internship programmes in partIn the new democratic society, vocational edu- nership with companies and SETAs. The college cation necessitated a different vision to create a is also ISO 9001: 2008 certificated to ensure that coordinated, accessible and responsive system. high quality standards are maintained. Equity, redress, access and provision of quality education and training became the agenda for The college is also working in partnership with the the FET colleges. This led to the merger of the Chemical Industries Education & Training Authority 152 colleges in South Africa into 50, a process (CHIETA) to ensure that communities in rural areas that gave birth to Ehlanzeni FET College. become aware of skills development. The aim of the partnership is to provide skills-development Ehlanzeni FET College is a government institu- opportunities for the Ehlanzeni community and tion with six campuses. These campuses include equip them with skills that will prepare them for the the former Nelspruit, Mapulaneng, Mthimba, job market. mpumalanga Business 2013/14 106 profile Students gather at the 2011 graduation day. Inclusive education The college has always catered to physically challenged students; these students attend the regular classes with the other students. Various partnerships entail the dual development and delivery of high-quality programmes and services that are relevant and responsive to the needs of the specific client’s skills and training needs. Interpreters have been employed to interpret dur- The unit applied for funding from the National ing the lessons. The interpreters also do office Skills Fund (NSF), which was approved. The fundadministration. After assessing the performances ing will assist in learnerships, internships and of this intake, programmes may be increased in skills programmes. the following years. This is an indication that the college truly subscribes to the notion of inclusive education. The purpose of Ehlanzeni FET College is to provide programme-based vocational and occupational training within the further education and training The college heeded the call from government band in order to respond to the human resource, to become responsive in addressing the skills economic and development needs of South Africa. needs in South Africa. As a result, the college has established an extended learning unit to respond to the National Skills Development Strategy that is constantly addressing the needs of the economy In collaboration with its stakeholders, Ehlanzeni FET College is committed to: in order to sustain its projected growth path. • Unlocking lifelong learning opportunities The college’s extended learning unit was started • Producing responsible and economically active citizens with the purpose of addressing occupational training, whereas the rest of the college fo- • O f fe r in g re s p o ns i ve a n d f l ex ib l e cuses on learnership skills programmes and programmes • Optimal utilisation of resources partnerships. Purpose Extended learning unit Mission 107 mpumalanga Business 2013/14 profile Engineering and related design students at work. National Qualifications Framework (NQF). The In striving towards a positive, inviting and condu- qualification is designed to provide both theory cive teaching and learning environment marked and practical experience in all vocational fields. by excellence, Ehlanzeni FET College commits The practical component of study may be offered itself to the following values: in the workplace environment. Students have the opportunity to experience work situations during • Equity and redress the period of study. • Tolerance • Multilingualism There are currently 10 NC (V) programmes on offer: • Openness and transparency • Management • Confidentiality • Information technology and communication • Accountability • Primary agriculture • Consultation • Hospitality • Courtesy • Finance, economics and accounting • Hospitality • Engineering and related design • Electrical infrastructure construction The National Department of Education introduced • Civil engineering and building construction the National Certificate (Vocational) at public FET colleges in 2007. The NC (V) offers programmes Nated programmes on offer: of study in a variety of vocational fields. The pro- • Management grammes are intended to respond directly to • Human resource management the priority skill demands of the South African • Business management • Financial accounting economy. • Public management The NC (V) is offered at levels 2, 3, and 4 of the • Public relations Values National Certificate (Vocational) mpumalanga Business 2013/14 108 profile • • • Electrical engineering Mechanical engineering Civil engineering ISO status Ehlanzeni FET College is ISO 9001:2008 certified, which informs the quality of service delivery and courses offered by the college. Obtaining the Alpha accredition is not only viewed as something to boast about to external parties, but a real tool that enhances the quality of client service at Ehlanzeni FET College. Skills programmes: Automotive repairs and maintenance • Computer practice • Economic and legal environment • Entrepreneurship • Municipal administration • Communications management • Partners • • • • • Bursaries To date, a total of 2 889 students have benefitted from DHET bursary scheme. The scheme is administered by National Student Financial Aid Scheme (NSFAS). The scheme covers tuition fees, accommodation and transport. Japanese International Corporation Agency (JICA) American Council of Education American Association of Community Colleges National Youth Development Agency Relevant Sector Education and Training Authorities (SETAs). Job placement Internships The college placed 10 students who completed NCV Level 4 for a period of 12 months. The purpose of the internship is to allow students to practice what they studied in a real work situation. Workplace Based Experience (WBE) 120 Level 4 students were placed in different companies for 10 days to gain exposure at workplace. Students doing Primary Agriculture, Office Administration, Electrical Infrastructure Construction, Management and Engineering and Related Design were all placed in various companies. Permanent employment Student Support Services (SSS) facilitated permanent employment of students in companies. The companies approach the college for CVs and SSS provide relevant CVs which are kept at the college database. contact info Central Office Tel: +27 13 752 7105 Fax: +27 13 752 4902 Physical address: 29 Bell Street, Nelspruit 1200 Postal address: Private Bag X 11297, Nelspruit 1200 Website: www.ehlanzenicollege.co.za Nelspruit Campus Tel: +27 13 741 3016 Fax: +27 13 741 3017 Mthimba Campus Tel: +27 13 798 3531 Fax: +27 13 798 3535 Mapulaneng Campus Tel: +27 13 795 5069 Fax: +27 13 795 5357 Mlumati Campus Tel: +27 13 785 0022 Fax: +27 13 785 0214 KaNyamazane Campus Tel: +27 13 794 3767 Fax: +27 13 794 1389 Barberton Campus Tel: +27 13 712 6640 Fax: +27 13 712 7544 109 mpumalanga Business 2013/14 profile The National Institute for Higher Education: Mpumalanga The National Institute for Higher Education: Mpumalanga is committed to ensuring that young people in the Mpumalanga Province have access to quality higher education. The mandate of the National Institute for Higher Education (NIHE), as reflected in the Higher Education Act (Act 101 of 1997, as amended), is reflected below: • Coordinate the regional provision of higher education • Ensure the coherent provision of higher education through programme collaboration with public higher education institutions operating in the Mpumalanga Province • Advise the Minister on matters relating to the coordination of the provision of higher education in the Mpumalanga Province • Perform any other duty that may be prescribed The NIHE operates as a public entity within the provisions of the Public Finance Management Act, and derives its mandate from the Higher Education Act, as amended. • • • • • The provision of non-academic support services at the recently established Teacher Education Campus in Siyabuswa Provision of support to the New Universities Project Team Provision of support to the Programmes Qualification Mix (PQM) teams on the development of the qualification programmes for the new university in Mpumalanga Coordinate the provision of career-related guidance services to high school learners Manage the higher education and training information management database Target markets • • • • • • High schools in the province The provincial government departments Local government Higher education and training sector Business and industry The general public Description of services The NIHE: Mpumalanga provides a number of higher education related services. The following are, among others, some of the services rendered by the institute: • Coordinate research projects that focus on higher education development in the province • Support the Mpumalanga Provincial Government Departments with training and development projects and/or programmes mpumalanga Business 2013/14 contact info Key contact people: James Thrush, Executive Director – Corporate Governance Tel: +27 13 752 5992 Fax: +27 13 752 5295 Address: 10 Nel Street, Nelspruit, Mpumalanga Email: email@example.com Website: www.nihemp.ac.za 110 interview Addressing developmental needs through education Professor Connie Mokadi highlights the strategic goals of the National Institute for Higher Education: Mpumalanga for the coming year. Connie Mokadi What are the strategic goals of the Institute? To facilitate the coherent provision of higher education programmes that are responsive to the human resource development needs of the Mpumalanga Province, and a seamless provision of a support service that is effective, efficient and economical for achieving the institutional mandate. Please tell us about any upcoming events or developments on the Institute’s calendar for 2013/14. • • • biography Professor Connie Mokadi is the chief executive officer of the National Insititute for Higher Education: Mpumalanga. She is a former vice chancellor and principal of Technikon Witwatersrand, and former pro-vice chancellor of the University of Johannesburg. • • The recruitment of students for the 2014 academic year at Siyabuswa Campus commenced in May 2013. The recruitment process is a joint exercise between the NIHE, the University of Johannesburg, the Mpumalanga Department of Education and the National Department of Basic Education. The NIHE is planning for a Higher Education Seminar to be held at the Siyabuswa Campus in June 2013. The seminar will focus on Teacher Education as a profession. It also seeks to create a platform for practitioners, policy-makers, teacher formations, stakeholders and students to engage on this subject. The NIHE has organised workshops for the educators and principals registered through the University of South Africa (Unisa) for the Dinaledi Schools Development Programmes. The workshops will take place from 24 through to 27 June 2013. More information will be communicated in due course. The NIHE will be coordinating the registration of 40 adult basic education and training (Abet) educators from the Gert Sibande District Municiplaity for a Higher Certificate in Adult Basic Education through Unisa during the June/July 2013 registration period. The NIHE has planned to hold the annual sessions of the Vulindlela Forum during the 2013 financial year. 111 mpumalanga Business 2013/14 listings South African National Government An overview of South Africa’s national government departments. S outh Africa is a constitutional democracy with a three-tier system of government and an independent judiciary. The three tiers of government – national, provincial and local – all have legislative and executive authority in their own spheres, and are defined in the Constitution as ‘distinctive, interdependent and interrelated’. Legislative authority is vested in parliament, which is situated in Cape Town and consists of two houses, the National Assembly and the National Council of Provinces. Parliament is bound by the Constitution and must act within its limits. The president, elected by the National Assembly from among its members, is the executive head of state and leads the cabinet. The president may not serve more than two five-year terms in office. The cabinet consists of the president, the deputy president and ministers. State institutions created to support constitutional democracy are the Public Protector; the Human Rights Commission; the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities; the Commission for Gender Equality; the AuditorGeneral and the Electoral Commission. Performance, Monitoring and Evaluation in the Presidency Minister: Collins Chabane Physical address: Room 116, 2nd Floor, West Wing, Union Buildings, Government Avenue, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5331/4 Fax: 012 321 8870 Email: firstname.lastname@example.org Website: www.thepresidency.gov.za The Presidency President: Jacob Gedleyihlekisa Zuma Deputy President: Kgalema Motlanthe Departments in the Presidency National Planning Commission Minister: Trevor Manuel Physical address: Room 242, 2nd Floor, East Wing, Union Buildings, Government Avenue, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5200 Fax: +27 12 300 5795 Email: email@example.com Website: www.thepresidency.gov.za mpumalanga Business 2013/14 National Government Departments Dept of Agriculture, Forestry and Fisheries Minister: Tina JoematPettersson Physical address: No 20, Agriculture Place, Block DA, 1st Floor, cnr Beatrix Street and Soutpansberg Road, Arcadia, Pretoria Postal address: Private Bag X250, Pretoria Tel: +27 12 319 7319 Fax: +27 12 321 8558 Email: firstname.lastname@example.org Website: www.daff.gov.za 112 listings Department of Arts and Culture Minister: Paul Mashatile Physical address: 10th Floor, Kingsley Centre, 481 Church str, cornernr Steve Biko & Pretorius streets, Arcadia, Pretoria 0001 Postal address: Private Bag X899, Pretoria 0001 Tel: +27 12 441 3006 Fax: +27 12 440 4485 Email: email@example.com Website: www.dac.gov.za Department of Basic Education Minister: Angelina Motshekga Physical address: Sol Plaatje House, 222 Struben Street, Pretoria 0001 Postal address: Private Bag X895, Pretoria 0001 Tel: +27 12 357 3000 Fax: +27 12 323 5989 Email: firstname.lastname@example.org Website: www.education.gov.za Department of Communications Minister: Dina Pule Physical address: Block 3, Nkululeko House, 33 Iparioli Office Park, 399 Duncan Street, Hatfield, Pretoria 0001 Postal address: Private Bag X860, Pretoria 0001 Tel: +27 12 427 8292 Fax: +27 12 362 6915 Email: email@example.com Website: www.doc.gov.za Department of Cooperative Governance and Traditional Affairs Minister: Richard Baloyi Physical address: 87 cnr Hamilton and Proes streets, Arcadia, Pretoria 0001 Postal address: Private Bag X804, Pretoria 0001 Tel: +27 12 334 0705 Fax: +27 12 326 4478 Email: firstname.lastname@example.org Website: www.cogta.gov.za Department of Correctional Services Minister: Sibusiso Ndebele Physical address: 123 Poyntons Building, West Block, cnr Schubart and Church streets, Pretoria 0001 Postal address: Private Bag X136, Pretoria 0001 Tel: +27 12 307 2934/2884 Fax: +27 12 323 4111 Email: email@example.com Website: www.dcs.gov.za Department of Defence and Military Veterans Minister: Nosiviwe MapisaNqakula Physical address: cnr Delmas Avenue & Nossob streets, Erasmuskloof, Pretoria Postal address: Private Bag X427, Pretoria 0001 Tel: +27 12 355 6101 Fax: +27 12 347 0118 Email: firstname.lastname@example.org Website: www.dod.mil.za Department of Economic Development Minister: Ebrahim Patel Physical address: Block A, 3rd Floor, 77 the dti Campus, cnr Meintjies & Esselen streets, Sunnyside, Pretoria Postal address: Private Bag X149, Pretoria 0001 Tel: +27 12 394 1006 Fax: +27 12 394 0255 Email: email@example.com Website: www.economic.gov.za Department of Energy Minister: Elizabeth Peters Physical address: Travenna Office Campus, 75 Meintjies & Schoeman str, Pretoria Postal address: Private Bag X646, Pretoria 0001 Tel: +27 12 444 4265 Fax: +27 12 444 4505 Email: firstname.lastname@example.org Website: www.energy.gov.za 113 mpumalanga Business 2013/14 listings Department of Environmental Affairs Minister: Edna Molewa Physical address: North Tower, Fedsure Forum Building, cnr Pretorius and Lilian Ngonyi streets, Pretoria Postal address: Private Bag X447, Pretoria 001 Tel: +27 12 336 8733 Fax: +27 12 336 7817 Email: email@example.com Website: www.environment.gov.za Department of Health Minister: Aaron Motsoaledi Physical address: 20th Floor, Civitas Building, cnr Struben and Andries streets, Pretoria Postal address: Private Bag X399, Pretoria 0001 Tel: +27 12 395 8085/81 Fax: +27 12 395 9165 Email: firstname.lastname@example.org Website: www.doh.gov.za Department of Higher Education and Training Minister: Blade Nzimande Physical address: Sol Plaatje House, 123 Schoeman Street, Pretoria Postal address: Private Bag X893, Pretoria 0001 Tel: +27 12 312 5555 Fax: +27 12 323 5618 Email: email@example.com Website: www.dhet.gov.za Department of Home Affairs Minister: Grace Naledi Mandisa Pandor Physical address: FSI Building, 909 Arcadia Street, Hatfield, 0083 Postal address: Private Bag X741, Pretoria 0001 Tel: +27 12 432 6622 Fax: +27 12 432 6637 Email: firstname.lastname@example.org Website: www.home-affairs.gov.za mpumalanga Business 2013/14 Department of Human Settlements Minister: Tokyo Sexwale Physical address: Govan Mbeki House, 240 Walker Street, Sunnyside, Pretoria Postal address: Private Bag X644, Pretoria 0001 Tel: +27 12 421 1310 Fax: +27 12 341 8513 Email: email@example.com Website: www.dhs.gov.za Department of International Relations and Cooperation Minister: Maite Mashabane Physical address: OR Tambo Building, 460 Soutpansberg Road, Rietondale, Pretoria Postal address: Private Bag X152, Pretoria 0001 Tel: +27 12 351 0431 Fax: +27 12 323 1502 Email: firstname.lastname@example.org Website: www.dirco.gov.za Department of Justice and Constitutional Development Minister: Jeffrey Radebe Physical address: Salu Building, 28th Floor, cnr Thabo Sehume and Francis Board streets, Pretoria 0001 Postal address: Private Bag X276, Pretoria 0001 Tel: +27 12 406 4669 Fax: +27 12 315 1749 Email: email@example.com Website: www.justice.gov.za Department of Labour Minister: Mildred Oliphant Physical address: 215 Laboria House, cnr Schoeman and Paul Kruger streets, Pretoria Postal address: Private Bag X117, Pretoria 0001 Tel: +27 12 392 9620 Fax: +27 12 320 1942 Email: firstname.lastname@example.org Website: www.labour.gov.za 114 listings Department of Mineral Resources Minister: Susan Shabangu Physical address: 4th Floor, Block 2C, Trevenna Campus, cnr Meintjies and Schoeman streets, Sunnyside Postal address: Private Bag X59, Pretoria 0001 Tel: +27 12 444 3999 Fax: +27 12 444 3145 Email: email@example.com Website: www.dmr.gov.za Department of Police Minister: Nathi Mthethwa Physical address: Wachthuis Building, 7th Floor, 231 Pretorius Street, Pretoria Postal address: Private Bag X463, Pretoria 0001 Tel: +27 12 393 2800 Fax: +27 12 393 2819 Email: firstname.lastname@example.org Website: www.saps.gov.za Department of Public Enterprises Minister: Malusi Gigaba Physical address: Suite 401, 1090 Infotech Building, Arcadia Street, Hatfield, Pretoria Postal address: Private Bag X15, Hatfield 0028 Tel: +27 12 431 1098 Fax: +27 12 431 1039 Email: email@example.com Website: www.dpe.gov.za Department of Public Service and Administration Minister: Lindiwe Sisulu Physical address: Batho Pele House, 116 Proes Str, Pretoria Postal address: Private Bag X916, Pretoria 0001 Tel: +27 12 336 1063 Fax: +27 12 326 7802 Email: firstname.lastname@example.org Website: www.dpsa.gov.za Department of Public Works Minister: Thembelani (Thulas) Nxesi Physical address: 6th Floor, AVN Building, cnr Skinner and Andries streets, Pretoria Postal address: Private Bag X229, Pretoria 0001 Tel: +27 12 406 1967 Fax: +27 12 310 5182 Email: email@example.com Website: www.publicworks.gov.za Department of Rural Development and Land Reform Minister: Gugile Nkwinti Physical address: 3rd Floor, Old Building, 184 Jacob Mare and Paul Kruger streets, Pretoria Postal address: Private Bag X833, Pretoria 0001 Tel: +27 12 312 8911 Fax: +27 12 323 3306 Email: firstname.lastname@example.org Website: www.ruraldevelopment.gov.za Department of Science and Technology Minister: Derek Hanekom Physical address: 3rd Floor, Building No 53, CSIR Campus, Meiring Naude Road, Brummeria, Pretoria Postal address: Private Bag X727, Pretoria 0001 Tel: +27 12 843 6798 Fax: +27 12 349 1041/8 Email: email@example.com Website: www.dst.gov.za Department of Social Development Minister: Bathabile Olive Dlamini Physical address: HSRC Building, North Wing, 134 Pretorius Street, Pretoria Postal address: Private Bag X901, Pretoria 0001 Tel: +27 12 312 7479 Fax: +27 12 321 2502 Website: www.dsd.gov.za 115 mpumalanga Business 2013/14 listings Department of State Security Minister: Siyabonga Cyprian Cwele Physical address: Bogare Building, 2 Atterbury Road, Menlyn, Pretoria Postal address: PO Box 1037, Menlyn 0077 Tel: +27 12 367 0700/57/91 Fax: +27 12 367 0749 Website: www.nia.dov.za Department of Sport and Recreation South Africa Minister: Fikile Mbalula Physical address: Regent Building, cnr Queen and Vermeulen streets, Pretoria Postal address: Private Bag X896, Pretoria 0001 Tel: +27 12 304 5000 Fax: +27 12 323 0795 Website: www.srsa.gov.za Department of Tourism Minister: Marthinus van Schalkwyk Physical address: 10th Floor, North Tower, Fedsure Forum Building, cnr Pretorius and Van Der Walt streets, Pretoria Postal address: Private Bag X424, Pretoria 0001 Tel: +27 12 310 3611 Fax: +27 12 322 0082 Email: firstname.lastname@example.org Website: www.tourism.gov.za Department of Trade and Industry Minister: Rob Davies Physical address: Block A, 3rd Floor, the dti Campus, cnr Meintjies and Esselen streets, Sunnyside, Pretoria Postal address: Private Bag X274, Pretoria 0001 Tel: +27 12 394 1568 Fax: +27 12 394 0337 Email: email@example.com Website: www.thedti.gov.za mpumalanga Business 2013/14 Department of Transport Minister: Benedict Martins Physical address: Room 4111, Forum Building, cnr Struben and Bosman streets, Pretoria Postal address: Private Bag X193, Pretoria 0001 Tel: +27 12 309 3860 Fax: +27 12 328 3194 Email: firstname.lastname@example.org Website: www.transport.gov.za Department of Water Affairs Minister: Edna Molewa Physical address: 1035 Sedibeng Building, 185 Schoeman street, Pretoria 0001 Postal address: Private Bag X313, Pretoria 0001 Tel: +27 12 336 8733 Fax: +27 12 336 7817 Email: email@example.com Website: www.dwa.gov.za Department of Women, Youth, Children and People with Disabilities Minister: Lulu Xingwana Physical address: 36 Hamilton street, Arcadia, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 359 0011 Fax: 086 676 3390 (SA only) Email: firstname.lastname@example.org Website: thepresidency.gov.za National Treasury Minister: Pravin Jamnadas Gordhan Physical address: 40 Church Square, Pretoria Postal address: Private Bag X115, Pretoria 0001 Tel: +27 12 315 5372 Fax: +27 12 323 3262 Email: email@example.com Website: www.treasury.gov.za 116 listings Government Communication and Information System (GCIS) Physical address: Tshedimosetso House, 1035 Francis Baard Street, Hadfield Pretoria Postal address: Private Bag X745, Pretoria 0001 Tel: +27 12 314 2127 Fax: +27 12 325 2030 Email: firstname.lastname@example.org Website: www.gcis.gov.za Independent Complaints Directorate (ICD) Physical address: CT Forum Building, 114 Vermeulen Street, Pretoria Postal address: Private Bag X941, Pretoria 0001 Tel: +27 12 399 0000 Fax: +27 12 399 0204 Email: email@example.com Website: www.icd.gov.za Public Service Commission Physical address: Commission House, cnr Hamilton and Ziervogel streets, Arcadia, Pretoria Postal address: Private Bag X121, Pretoria 0001 Tel: +27 12 352 1000 Fax: +27 12 325 8382 Email: firstname.lastname@example.org Website: www.psc.gov.za Police Civilian Secretariat Physical address: 217 Pretorius Street, Vanerkom Building, Pretoria Postal address: Private Bag X922, Pretoria 0001 Tel: +27 12 393 2520 Fax: +27 12 393 2538 Email: email@example.com or firstname.lastname@example.org Website: www.nationalsecretariat.gov.za South African Revenue Service Physical address: Lehae la Sars Building, 299 Bronkhorst Street, New Muckleneuk, Pretoria Postal address: Private Bag X923, Pretoria 0001 Tel: +27 12 317 2000 Fax: +27 10 208 5005 Website: www.sars.gov.za Statistics South Africa Physical address: The De Bruyn Park, 170 Andries Street, Pretoria Postal address: Private Bag X44, Pretoria 0001 Tel: +27 12 310 8911 Fax: +27 12 310 8500 Email: email@example.com Website: www.statssa.gov.za National coat of arms The national coat of arms was adopted on 27 April 2000. It is constructed in two circles, which are described as the circle of foundation and the circle of ascendance. the world’s largest land mammal, Loxodonta Africana, which is found in South Africa. Motto – Taken from the language of the now extinct / Xam Bushmen, the motto translated means ‘people who are different come together’ or ‘diverse people unite’. Circle of foundation Shield – The two Khoisan figures on the shield are taken from a Bushman rock painting known as the Linton stone, and represent the common humanity and heritage of South Africans. Depicted in an attitude of greeting, the figures symbolise unity. Spear and knobkierie – Together, these objects symbolise defence and authority, but the flat angle at which they lie symbolises peace. Wheat – The ears of wheat, as emblems of fertility, represent germination, growth and the development of potential, as well as nourishment and agriculture. Elephant tusks – Elephants symbolise wisdom, strength, power, authority, moderation and eternity, and the use of tusks is a tribute to Circle of ascendance Protea – Protea cynaroides is the national flower of South Africa and is symbolic of the beauty of the country and flowering of the nation’s potential. Secretary bird – Characterised in flight, the secretary bird represents growth and speed, and is a symbol of divine majesty and protection. Rising sun – The sun is an emblem of energy and rebirth, a source of light and life appropriate for a country characterised by sunshine and warmth. 117 mpumalanga Business 2013/14 listings Mpumalanga Provincial Government A guide to Mpumalanga Provinceâ€™s government departments and MECs. www.mpumalanga.gov.za Postal address: Private Bag X11269, Nelspruit 1200 Tel: +27 13 766 4091 Fax: +27 13 766 4616 Email: firstname.lastname@example.org Website: www.mpumalanga.gov.za/safety_ and_security/home.asp Office of the Premier Premier: David Dabede Mabuza Physical address: 2nd Floor, Building 2, 7 Government Boulevard, Riverside Park Extension 2, Nelspruit 1201 Postal address: Private Bag X11291, Nelspruit 1200 Tel: +27 13 766 2027 Fax: +27 13 766 2494 Email: email@example.com Website: www.mpumalanga.gov.za Department of Cooperative Governance and Traditional Affairs MEC: Madala Masuku Physical address: Upper Ground Floor, Building 6, 7 Government Boulevard, Riverside Park Extension 2, Nelspruit 1201 Postal address: Private Bag X11304, Nelspruit 1200 Tel: +27 13 766 6321 Fax: +27 13 766 8438 Email: firstname.lastname@example.org Website: http://cgta.mpg.gov.za Department of Agriculture, Rural Development and Land Administration MEC: Violet Sizani Sinela Physical address: 2nd Floor, Building 6, 7 Government Boulevard, Riverside Park Extension 2, Nelspruit 1201 Postal address: Private Bag X11219, Nelspruit 1200 Tel: +27 13 766 6074 Fax: +27 13 766 8437 Email: email@example.com Website: http://dardla.mpg.gov.za/ Department of Culture, Sport and Recreation MEC: Sibongile Manana Physical address: 2nd Floor, Building 5, 7 Government Boulevard, Riverside Park Extension 2, Nelspruit 1201 Postal address: Private Bag X11316, Nelspruit 1200 Tel: +27 13 766 5078 Fax: +27 13 766 5588 Email: firstname.lastname@example.org Website: www.mpumalanga.gov.za/dcsr/ Department of Community Safety, Security and Liaison MEC: Vusi Shongwe Physical address: 2nd Floor, Building 4, 7 Government Boulevard, Riverside Park Extension 2, Nelspruit 1201 mpumalanga Business 2013/14 118 listings Department of Economic Development, Environment and Tourism MEC: Yvonne Nkwenkwezi Phosa Physical address: 1st Floor, Building 4, 7 Government Boulevard, Riverside Park Extension 2, Nelspruit 1201 Postal address: Private Bag X11215, Nelspruit 1200 Tel: +27 13 766 4554 Fax: +27 13 766 4617 Email: email@example.com Website: www.mpumalanga.gov.za/dedet/ Department of Health and Social Development MEC: Dr Clifford Mkasi Physical address: 2nd Floor, Building 3, 7 Government Boulevard, Riverside Park Extension 2, Nelspruit 1201 Postal address: Private Bag X11285, Nelspruit 1200 Tel: +27 13 766 3098 Fax: +27 13 766 3475 Email: firstname.lastname@example.org Website: www.mpumalanga.gov.za/dept/ health_social_development.htm Department of Education Department of Human Settlements MEC: Reginah Mhaule Physical address: Building 5, 7 Government Boulevard, Riverside Park Extension 2, Nelspruit 1201 Postal address: Private Bag X11341, Nelspruit 1200 Tel: +27 13 766 5385 Fax: +27 13 766 5590 Email: email@example.com Website: www.mpumalanga.gov.za/education/ MEC: Andries Gamede Physical address: Building 7, 7 Government Boulevard, Riverside Park Extension 2, Nelspruit 1201 Postal address: Private Bag X11328, Nelspruit 1200 Tel: +27 13 766 6607 Fax: +27 13 766 8461 Email: firstname.lastname@example.org Website: http://dhs.mpg.gov.za/ Department of Finance MEC: Mdala Masuko Physical address: Upper Ground Floor, Building 4, 7 Government Boulevard, Riverside Park Extension 2, Nelspruit 1201 Postal address: Private Bag X11205, Nelspruit 1200 Tel: +27 13 766 4597 Fax: +27 13 766 4625 Email: email@example.com Website: http://finance.mpu.gov.za/ Department of Public Works, Roads and Transport MEC: Dikeledi Mahlangu Physical address: 1st Floor, Building 7, 7 Government Boulevard, Riverside Park Extension 2, Nelspruit 1201 Postal address: Private Bag X11310, Nelspruit 1200 Tel: +27 13 766 6811 Fax: +27 13 766 8462 Email: firstname.lastname@example.org Website: http://dpwrt.mpg.gov.za/ 119 mpumalanga Business 2013/14 focus The province in brief A snapshot look at the key points made by Premier David Mabuza in his 2013 State of the Province address. Mpumalanga’s economic profile • • • • • • • • • • • Mpumalanga’s poverty rate decreased from 45.6% in 2010 to 41.6 % in 2011 Families living in households earning below the poverty income decreased from 1.72-million in 2010 to 1 .59-million in 2011 Mpumalanga has a population of approximately four-million The population increased by 20% from 3.3-million over the past 10 years 69.4% of the population constitutes the youth cohort of zero to 34 years of age The fourth quarter of 2012 showed an unemployment rate of 29.4%, the third-highest of the nine provinces More than 75% of the unemployed are youth between 15 to 34 years of age The youth unemployment rate is 43% Despite the shrinkage of economic growth between 2010 and 2011, the provincial economy managed to create 36 000 jobs between the fourth quarter of 2010 and the fourth quarter of 2012 The economic growth rate of Mpumalanga was at 2.3% in 2012 and is expected to grow to 3.1% in 2013 and to top 4.5% in 2016 • • In 2013/14, the province will strengthen the capacity of the Mpumalanga Aids Council under the leadership of the Premier The shortage of health professionals in critical areas of hospital operations continues to constrain the ability of hospitals to deliver quality healthcare Unavailability of essential medicines in some hospitals continues to be a serious challenge Mpumalanga’s human settlements profile • Mpumalanga’s health profile • • • • • • • Appointed three district clinical specialist teams to respond to the challenge of maternal mortality Adopted the Campaign for the Accelerated Reduction of Maternal and Child Mortality in Africa in order to implementbasic interventions that promote the health of women and children Maternity waiting homes in all district hospitals to close the gap in delays in accessing maternity care during emergencies To respond to HIV and Aids challenges, and strengthen the implementation of national and provincial HIV, STI and TB strategic plan for 2012 to 2016 Promote relationships with traditional leaders to fight spread of HIV and Aids Promote male circumcision and ensure that more than 500 000 circumcisions are performed per year • • Complete all the incomplete houses within a 100day time limit Move with speed to finalise the outstanding work on the establishment of integrated human settlements in Klarinet, Emakhazeni, Dipaliseng and Thaba Chweu Focus on spatial planning and integrated development planning for Umjindi, Nkomazi, Msukaligwa and Mbombela Speed up and finalise the implementation of the people housing programme (PHP) in all the CRDP municipalities mpumalanga Business 2013/14 120 focus Education plans Plans to improve education in 2013-2014: • Comprehensive improvement plan intended to provide targeted support to schools that performed below 50% • Prioritise the provision of ECD infrastructure to improve the quality of infrastructure, especially in rural areas • Attention will also be given to the training of ECD practitioners to ensure they have the requisite qualifications and skills • Prioritise improving pupil performance in mathematics, science and technology • Establishing a mathematics, science and technology academy in the province. This academy will have four satellite hubs that are linked to 100 schools in the four districts • Continue to focus on creating opportunities for ‘out of school youth’ to have access to training and skills development opportunities. Through MRTT, the province will focus on skills programmes in hospitality and tourism as well as the technical and entrepreneurial fields • The awarding of 209 new external bursaries in critical and scarce skills in health, education, engineering and finance will result in many successes • To grow the scarce and critical skills base of the province, the relevant departments will continue to form strategic partnerships with the private sector. We are happy to announce that Eskom has offered 201 bursaries to students who have enrolled in the engineering and accounting fields Crime • • • • • • • In Mpumalanga, contact crime was reduced by 7% over the past two years In the same period, violent crime was reduced by 1.1% Unfortunately, property-related crimes increased by 3.2% The province witnessed an incident-free festive season. The same applied during the Orange Africa Cup of Nations Interventions introduced to reduce crime include capacitybuilding of human capital, change management and the revamping of border management The province has identified core focus areas as follows: stock theft, immigration, public participation, social crimes and crime against tourists 520 tourism safety monitors have been deployed throughout the entire province Priorities for the province’s municipalities in 2013/14 • • • • • • • The implementation of bulk water and sanitation infrastructure for the Mbombela, Nkomazi, Bushbuckridge, Mkhondo, Chief Albert Luthuli, Emalahleni, Dr JS Moroka and Thembisile Hani municipalities through MEGA Providing support in the expansion of access to basic services and eliminating backlogs Implementation of integrated municipal support plan Enhancing financial viability Implementing the Community Works Programme, including the programme on clean towns, townships and villages Support programmes for operation clean audit in all municipalities Improving public participation to close the social distance between public representatives and communities read more Visit: www.mpumalanga.gov.za 121 mpumalanga Business 2013/14 profile Department of Human Settlements The departmentâ€™s mission is to facilitate the creation of integrated sustainable human settlements. INTEGRATION: Klarinet Integrated Human Settlements Project at eMalaheni Local Municipality. The departmentâ€™s broadened mandate entails the development of human settlements in an integrated and sustainable manner. Emphasis is on the creation of integrated settlements, delivery of low-cost houses, mixed-typologies, and other required social and economic amenities such as community halls, health and education facilities. The outcome-based approach emphasises improved coordination of activities across the spheres for common objectives. The departmentâ€™s outputs include the upgrading of informal settlements, improvement of access to basic services, improved property market, and more efficient land utilisation. Types of housing subsidies Consolidation Subsidy Designed for beneficiaries who already have a previously subsidised and serviced plot and now qualify for a subsidy to build a top structure. The applicant must have the title deed for serviced land that was given under a previous subsidy, but the land has no top structure. Neither the applicant, nor the spouse, should own another property. Average household income must be less than R3 500. Individual Subsidy It provides qualifying beneficiaries with access to housing subsidies to acquire ownership of improved residential properties (stand and house) or to acquire a house-building contract that is not part of approved housing subsidy projects. Vision Sustainable integrated human settlements mpumalanga Business 2013/14 122 profile Individual housing subsidies Credit and Non-Credit Linked R0 â€“ R3 500 Mr SM Mtsweni, Head of Department Mr MA Gamede (MPL) MEC: Human Settlements Available to individual households who wish to apply for a housing subsidy to purchase an existing house or to purchase a vacant stand and enter into a building contract for the construction of a house. The latter subsidy option may only be awarded to those households who have entered into a loan agreement with a financial institution. Enhanced Extended Discount Benefit Scheme The latter option is only available to beneficiaries who will access housing credit. Project Linked Subsidy A beneficiary can use the subsidy to buy a residential unit together with land on which it stands in a municipal project. It is not a cash payout, but is paid directly to the municipality that is building the housing. Institutional Subsidy The subsidy is available to qualifying institutions to enable them to create affordable housing stock for persons who qualify for housing subsidies. This housing subsidy mechanism provides capital for the construction of housing units in respect of qualifying beneficiaries who do not earn more than R3 500. Discount Benefit Scheme The scheme promotes home ownership among tenants of state-financed rental stock. In terms of this scheme, tenants receive a maximum discount of up to R7 500 on the selling price of the property. Rural Subsidies It is available to beneficiaries who only enjoy functional tenure rights to the land they occupy. This land belongs to the state and is governed by traditional authorities. The subsidies are only available on a project basis and beneficiaries are supported by implementing agents. Assist persons to acquire state-financed rental housing, existing sales debtors to settle the balance on purchase prices of properties acquired from the public sector, or to repay publicly financed credit that had been used for housing purposes. The programme entails discounting of an amount up to the prevailing housing subsidies on the loan/purchase price/purchase price balance of the properties in question. Social and Economic Facilities Facilitates the development of primary, public, social and economic facilities, which are normally funded and maintained by municipalities, in cases where municipalities are unable to provide such facilities within existing and new housing areas as well as within informal settlement upgrading projects. Accreditation of Municipalities Enables municipalities to plan, manage and administer the National Housing Programmes. It also provides systems support to the municipalities. Operational Capital Budget Regulates the application of a certain percentage of the voted provincial housing funding allocation to support the implementation and manage approved national and provincial housing programmes projects and priorities. It could be utilised for the appointment of external expertise by the Provincial Housing Departments to augment capacity, required for delivery at scale and assist in enhancing the implementation of the national and provincial housing programmes and projects. mpumalanga Business 2013/14 123 profile Phase 2: Housing Construction Comprises the house construction phase for qualifying housing subsidy beneficiaries and the sale of stands to non-qualifying beneficiaries and to commercial interests, etc. Peopleâ€™s Housing Process (PHP) Assists households to access housing subsidies (consolidation, project-linked, institutional or rural subsidies) with technical, financial, logistical and administrative support to build their own homes. Housing Chapters of Integrated Development Plans (IDPs) Informal Settlement Ppgrading Incremental housing programmes Facilitates the structured upgrading of informal Provides guidelines for the development of hous- settlements. It applies to in situ upgrading of ing plans in the integrated development planning informal settlements as well as where communiprocess and suggests an approach to the for- ties are to be relocated for a variety of reasons. mulation of housing chapters of municipal IDPs. Also entails extensive community consultation and participation, emergency basic services Rectification of Pre-1994 Housing Stock provision, permanent services provision and Facilitates the improvement of certain state- security of tenure. financed residential properties created through a state housing programme during the pre-1994 Consolidation Subsidies housing dispensation. Made available to a beneficiary who has already received assistance through government to acquire a serviced residential site under the pre-1994 housing schemes. It is applicable to Farm Worker Assistance serviced sites that were obtained on the basis Provides houses to qualifying households work- of ownership, leasehold or deed of grant and ing and residing on farms. This housing develop- must be utilised to construct or upgrade a top ment is done on land donated by farm owners for structure on the relevant property. this purpose or on land owned by CPAs. Emergency Housing Assistance Integrated Residential Development Provides temporary assistance in the form of seProgramme cure access to land and/or basic municipal serProvides for planning and development of integrated housing projects. Projects can be planned and developed in phases and provides for a holistic development orientation. Phase 1: Land, Services and Township Proclamation vices and/or shelter. The assistance is provided to beneficiaries who have for reasons beyond their control, found themselves in an emergency housing situation where their existing shelter has been destroyed or damaged, their prevailing situation posed an immediate threat to their health, life and safety or where they have been evicted or faced imminent eviction. It is only applicable in emergency situations of exceptional housing need. Entails planning, land acquisition, township establishment and the provision of serviced residential and other land uses to ensure a sustainable community. mpumalanga Business 2013/14 124 profile Social and Rental Housing Programmes Institutional Subsidies Targeted at housing institutions that provide tenure arrangements alternative to immediate ownership (such as rental, instalment sale, share block or co-operative tenure) to subsidy beneficiaries. Social Housing Seeks to provide rental or cooperative housing options for low-income persons at a level of scale and built form that requires institutional management and which is to be provided by accredited social housing institutions and in designated restructuring zones. Community Residential Units Projects/initiatives Creation of New Sustainable Human Settlements In pursuing the noble dream of developing integrated human settlements, the department will focus on outstanding work at eMalahleni, Dipaleseng and Thaba Chweu Local Municipalities. Several portions of land at various municipalities will be developed for integrated human settlements. These multi-year projects will take into account critical issues of planning, environment and improved beneficiary identification and management. The department will move with speed to finalise the development of the Mpumalanga Human Settlements Master Plan. Comprehensive Rural Development Facilitates the provision of secure, stable rental Programme (CRDP) tenure for the lowest income persons who are The province has a rural development strategy that not able to be accommodated in the formal pri- aims to tackle poverty through job creation, skills vate rental and social housing market. It provides and economic development. In continuing the a coherent framework for dealing with the many ideals of the programme, the department plans different forms of existing public-sector residen- to deliver over 5 000 units through the People’s tial accommodation. The CRU programme also Housing Process at all CRDP municipalities. Supprovides options in Phase 4 of the ‘Informal ported by other departments and stakeholders, co-operatives within the areas will continue to Settlement Upgrading Programme’. take part in this massive programme. Rural Housing Programme Rural subsidy (informal land rights): Used to extend the benefits of the Housing Subsidy Scheme to individuals living in areas referred to as ‘rural’ where they enjoy functional security of tenure as opposed to legal security of tenure. Only individuals whose informal land rights are uncontested and who comply with the qualification criteria will be granted such rural subsidies. Rental Housing Tribunal The Tribunal is vested with certain rights and obligations in terms of the Rental Housing Act 1999 No 50 and its regulations, to receive complaints lodged by either landlords or tenants, resolve disputes between tenants and landlords and appoint mediators and conduct hearings. contact info Key personnel: Honourable Mr MA Gamede (MEC) Mr SM Mtsweni: Head of Department Key contact people: Mr SEB Matsebula: Chief Financial Officer Mr WT Madileng: Chief Director: Corporate Services Mr FL Ngobe: Director: Communications Tel: +27 13 766 6088/6978 Fax: +27 13 766 8441/2 Email: email@example.com Website: dhs.mpg.gov.za 125 mpumalanga Business 2013/14 listings Mpumalanga Local Government A guide to district and local municipalities in Mpumalanga. Ehlanzeni District Municipality Mayor, Letta Shongwe Physical address: 8 Van Niekerk Street, Nelspruit 1201 Postal address: PO Box 3333, Nelspruit 1200 Tel: +27 13 759 8500 Fax: +27 13 759 8539 Email: firstname.lastname@example.org Website: www.ehlanzeni.org.za Local municipalities encompassed Bushbuckridge Municipality Tel: +27 13 799 1851 Fax: +27 13 799 1865 Email: email@example.com Website: www.bushbuckridge.gov.za Mbombela Municipality Tel: +27 13 759 2000 Fax: +27 13 759 2070 Email: firstname.lastname@example.org Website: www.mbombela.gov.za Nkomazi Municipality Tel: +27 13 790 0245 Fax: +27 13 790 0886 Email: email@example.com Website: www.nkomazimun.co.za Thaba Chweu Municipality Tel: +27 13 235 7300 Fax: +27 13 235 1108 Email: firstname.lastname@example.org Website: www.thabachweu.gov.za Umjindi Municipality Tel: +27 13 712 2121 Fax: +27 13 712 5120 Email: email@example.com Website: www.umjindi.gov.za mpumalanga Business 2013/14 Gert Sibande District Municipality Acting Mayor, M Mhladathi Physical address: Cnr Joubert and Oosthuise streets, Ermelo 2350 Postal address: PO Box 1748, Ermelo 2350 Tel: +27 17 801 7000 Fax: +27 17 811 1207 Email: firstname.lastname@example.org Website: www.gsibande.gov.za Local municipalities encompassed Albert Luthuli Municipality Tel: +27 17 843 4000 Fax: +27 17 843 4001 Email: email@example.com Website: www.albertluthuli.gov.za Dipaleseng Municipality Tel: +27 17 773 0055 Fax: +27 17 773 0169 Email: firstname.lastname@example.org Website: www.dipaleseng.gov.za Govan Mbeki Municipality Tel: +27 17 620 6000 Fax: +27 17 634 8019 Email: email@example.com Website: www.govanmbeki.gov.za Lekwa Municipality Tel: +27 17 712 9600 Fax: +27 17 712 6808 Email: firstname.lastname@example.org Website: www.lekwamunicipality.org.za Mkhondo Municipality Tel: +27 17 826 8100 Fax: 086 542 1173 (SA only) Email: email@example.com Website: www.mkhondo.gov.za 126 listings Msukaligwa Municipality Tel: +27 17 801 3500 Fax: +27 17 801 3851 Email: firstname.lastname@example.org Website: www.msukaligwa.gov.za Pixley Ka Seme Municipality Tel: +27 17 734 6100 Fax: 086 630 2209 Email: email@example.com Website: http://pixleykaseme.local.gov.za Dr JS Moroka Municipality Tel: +27 13 973 1101 Fax: +27 13 973 0974 Email: firstname.lastname@example.org Website: www.moroka.gov.za Emakhazeni Municipality Tel: +27 13 253 1121 Fax: +27 13 253 2440 Email: email@example.com Website: www.emakhazenilm.co.za eMalahleni Municipality Nkangala District Municipality Mayor, KS Mashilo Tel: +27 13 249 2000 Fax: +27 13 249 2056 Email: firstname.lastname@example.org Website: www.nkangaladm.org.za Local municipalities encompassed Delmas Municipality Tel: +27 13 665 6000 Fax: +27 13 665 2913 Email: email@example.com Website: www.delmasmunic.co.za Tel: +27 13 690 6911 Fax: +27 13 690 6207 Email: firstname.lastname@example.org Website: www.emalahleni.gov.za Steve Tshwete Municipality Tel: +27 13 249 7000 Fax: +27 13 243 2550 Email: email@example.com Website: www.stevetshwetelm.gov.za Thembisile Hani Municipality Tel: +27 13 986 9100 Fax: +27 13 986 0995 Email: firstname.lastname@example.org Website: www.thembisilehlm.gov.za MUNICIPALITIES IN MPUMALANGA Limpopo Dr JS Moroka Bushbuckridge Mozambique North West Thembisile Thaba Chweu Ehlanzeni Nkangala eMalahleni Delmas Steve Tshwete Mbombela Emakhazeni Umjindi Nkomazi Gauteng Albert Luthuli N Swaziland Govan Mbeki Msukaligwa Dipaleseng Lekwa Gert Sibande Mkhondo Free State Pixley Ka Seme District Municipality Local Municipality Local Municipality Boundary Metropolitan/District Municipality Boundary Amajuba uMlalazi 127 mpumalanga Business 2013/14 index index Absa Business Banking��������������������������������������������������������������������������������������������������������������96 BB Truck & Tractor����������������������������������������������������������������������������������������������������������������������76 Bushbuckridge Water�����������������������������������������������������������������������������������������������������������������85 Columbus Stainless (Pty) Ltd������������������������������������������������������������������������������������������������29, 64 Ehlanzeni FET College������������������������������������������������������������������������������������������������ 12, 105, 106 Frontier Market Network�������������������������������������������������������������������������������������������������������������49 Global Africa Network�������������������������������������������������������������������������������������������������������������������9 HL Hall & Sons Properties (Pty) Ltd��������������������������������������������������������������������������������������������80 Industrial Development Corporation (IDC)���������������������������������������������������������������������������������100 Inkomati Catchment Management Agency���������������������������������������������������������������������������90, 92 Komati Water Basin Authority (KOBWA)���������������������������������������������������������������������������������������� 87 Maputo Corridor Logistics Initiative (MCLI)���������������������������������������������������������������������������������30 Middelburg Chamber of Commerce & Industry (MCCI)��������������������������������������������������������������35 Mposa Agricultural Consultants (Pty) Ltd������������������������������������������������������������������������������������ 47 Mpumalanga Department of Education������������������������������������������������������������������������������ 13, 103 Mpumalanga Department of Human Settlements��������������������������������������������������������������������� 122 Mpumalanga Economic Growth Agency (MEGA)������������������������������������������������������� 20, 28, OBC Mpumalanga Stainless Initiative�������������������������������������������������������������������������������������������� 67, 68 National Institute of Higher Education (NIHE)���������������������������������������������������������������������������� 110 Office of the Premier: Mpumalanga������������������������������������������������������������������������������������ 10, 120 Petroleum Agency South Africa��������������������������������������������������������������������������������������������������56 Sappi������������������������������������������������������������������������������������������������������������������������������������������ 24 Sasol�������������������������������������������������������������������������������������������������������������������������������������������55 South African Subtropical Growers’ Association��������������������������������������������������������������������������3 Transnet Engineering������������������������������������������������������������������������������������������������������������IFC, 72 Transnet Pipelines�����������������������������������������������������������������������������������������������������������������5, IBC Tsb Sugar������������������������������������������������������������������������������������������������������������������������������������ 51 Verder Pumps����������������������������������������������������������������������������������������������������������������������������� 61 Vodacom�������������������������������������������������������������������������������������������������������������������������������������� 7 mpumalanga Business 2013/14 128