South African Business 2016

Page 183

The Maputo Development Corridor (MDC)

The MDC is South Africa’s leading Spatial Development Initiative (SDI) linking Mpumalanga, Gauteng Province and the Nkomazi Special Economic Zone with the deepwater Port of Maputo in fast-growing Mozambique. TOP EXPORTS Coal Macadamia Nuts Cane Sugar Ferro-alloys Manganese Wood Citrus Fruit

The efficient corridor provides investors and exporters with good access to the export markets of South East Africa, the Indian Ocean Rim and Far East Asia. The Maputo Development Corridor comprises road, rail, special economic zone, border posts, port and terminal facilities. The corridor runs through the most highly industrialised and productive regions of Southern Africa. The Corridor has been extensively upgraded to international standards and links the industrial heartland of South Africa to its nearest port in Maputo, Mozambique, which is one of the fastest-growing countries in South East Africa.

GAUTENG

Pretoria

MPUMALANGA

eMalahleni

Joburg AMERICAS 2 046m

Mbombela

Middleburg OCEANIA 80m

TOP EXPORT MARKETS 2014 1 - Mozambique R2.8 bn 2 - India R1.9 bn 3 - Netherlands R1.8 bn 4 - United States R1.7 bn 5 - Japan R1.3 bn 6 - Swaziland R1.2 bn 7 - Hong Kong R0.8 bn

MOZAMBIQUE

Nkomazi SEZ

Komatipoort

Maputo

FOREIGN MARKETS

Africa & Middle East Asia & Australasia Europe & the Americas

Lebombo

MPUMALANGA’S FOREIGN TRADE ASIA 6 099m

EUROPE EUROPE 33 559m 559m

Mpumalanga has a strong industrial export base, a consequence of the abundant primary resources and the secondary-sector opportunities which have developed as a result. Mpumalanga has been well integrated into the global trading system for generations and enjoys strong, established relationships with numerous countries in Africa, Europe, Asia and the Americas and expanding South-South and BRICS trade. The vast range of commodities and products produced in the province provides for great opportunity for diversification of traded goods, as well as creating scope for attracting new trading partners. 16

Mpumalanga’s Export Growth

EXPORTS IN R-BILLIONS

14 12 10 8

AFRICA 6 203m

Mpumalanga’s Regional Export Markets

6 4 2

6.3

5.8

6.9

11.8

7.5

10.1

11.9

12.9

14 .1

17.9

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

0

SADC FREE TRADE AREA (FTA)

TRILATERAL FREE TRADE AGREEMENT (T-FTA)

• Provides for duty-free trade between 15 SADC members, excluding DRC, Angola and Seychelles.

• Negotiations are underway to establish a grand African FTA.

• All goods shipped under SADC Certificate of Origin receive duty-free status. • A growing market for over 280-million people.

• Will group the current COMESA, SADC and EAC blocs into one integrated market. • 26 countries with a combined population of nearly 700-million people.


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