Mpumalanga Investment Prospectus 2022

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THE PLACE OF THE RISING SUN

MPUMALANGA INVESTMENT PROSPECTUS MPUMALANGA IS OPEN FOR BUSINESS


WHY INVEST IN MPUMALANGA? Companies in a wide range of sectors are already invested in Mpumalanga – and are ramping up the commitments with new investments Mpumalanga’s diverse and resource-rich economy makes it one of the most attractive trade and investment destinations in South East Africa. A large, growing domestic market and excellent access, supported by world-class infrastructure, to the East African and Indian Ocean markets through Maputo Port makes Mpumalanga an ideal investment location for export-driven manufacturing and production. Mpumalanga is one of South Africa’s most productive and important agricultural regions and through strategic investments in the Mpumalanga International Fresh Produce Market (MIFPM) and the Nkomazi Special Economic Zone (NSEZ) the province is set to become a major force in food production and distribution. Mpumalanga’s sophisticated and well-segmented tourism and hospitality sector in a post-Covid world is ripe for investment and expansion.

Mpumalanga

68% of land area in the province is used by agriculture

3

Mpumalanga’s three biggest sectors are

manufacturing, mining &

agriculture.

UNIQUE SELLING PROPOSITION

• Abundant resources: minerals and agricultural produce • Established manufacturing infrastructure: smelters, petrochemicals, food processing, paper, sugar • Strategic location and access to regional and global markets • Tourism hotspots: the iconic Kruger National Park, worldclass reserves, adventure tourism and new UNESCO World Heritage Site • Mpumalanga International Fresh Produce Market (MIFPM) • Nkomazi Special Economic Zone (NSEZ) • Newly established University of Mpumalanga • Support for Green Economy research and investment


Mpumalanga’s STRATEGIC LOCATION makes it a valuable transport and logistics hub Capital City Mbombela (Nelspruit)

A province in eastern South Africa, bordering the nations of Swaziland and Mozambique

Main major towns Ermelo eMalahleni Middelburg Secunda

• Maputo Development Corridor enhances logistics • Preferential access to lucrative EU market • Proximity to South Africa’s economic heartland • Access to regional SADC market: 360-million population • Access to deepwater Port of Maputo

Airport Kruger Mpumalanga International Airport Population 4.5-million people

MAPUTO DEVELOPMENT CORRIDOR The Maputo Development Corridor is South Africa’s leading Spatial Development Initiative (SDI), linking Mpumalanga Province, Gauteng Province and the Nkomazi Special Economic Zone with the deepwater Port of Maputo in Mozambique. This 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 Lydenburg

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. Sabie

SOUTH AFRICA

MOZAMBIQUE Komatipoort

Middelburg

Belfast Mbombela

MAPUTO JOHANNESBURG

Carolina

SWAZILAND


A journey to a prosperous and inclusive future Mpumalanga Premier Refilwe Mtshweni-Tsipane invites investors to share in the growth of Mpumalanga, together with the residents of a province rich in resources and talent. On behalf of the (MERRP), the Nkomazi Special Economic Provincial Government Zone (SEZ), the Mpumalanga International and the people of Mpumalanga I wish Fresh Produce Market (MIFPM) and many to welcome this opportunity for our more outlined in the following pages. province to present its policies and Private-public partnerships are bearing programmes, business opportunities, fruit in the tourism sector, as illustrated and private sector success stories. by the exciting Skywalk Project at God’s Despite what many consider an uncertain Window an d a hotel and conference global economic outlook, our province centre under construction in Middelburg. has embraced a post-Covid ascendance We are delighted to welcome direct with bountiful opportunities that can be flights to our province from Eurowings tapped into through entrepreneurship Discover, a division of Lufthansa. and collaboration. A Just Energy Transition Mpumalanga is the home and Climate Change of more than 4.68-million Working Group has been residents (7.8% of the established to guide policy national population), and is on these vital issues. the fifth-biggest regional Our province is aggressively economy in South Africa. pursuing the implementation It has a diverse and of strategies for economic resource-rich economy recovery from Covid-19 that that makes it one of the will also foster diversification most attractive trade and of its mineral-rich economy investment destinations and increase labour Premier Refilwe in South-East Africa. absorption in its key sectors. Mtshweni-Tsipane This publication is intended The provincial government, to expose potential together with districts, local investors and business communities to municipalities and state-owned enterprises, market opportunities in Mpumalanga has identified interventions that are aligned relating to identified sectors such as with the national Economic Reconstruction agriculture, manufacturing, mining, and Recovery Plan (ERRP). Mpumalanga has tourism and renewable energy. adapted elements of the plan to ensure We wish to welcome all interested relevance and effective implementation. parties to join us in an inclusive growth This will help our economy to grow and sustainable development journey as we actively build back in a more through innovative flagship projects efficient manner. We invite investors such as the Mpumalanga Economic to join us on this journey to a more Reconstruction and Recovery Plan prosperous and inclusive future.


A new era of investing in Mpumalanga There are many varied and exciting opportunities for investment in Mpumalanga. Department of Economic Development and Tourism MEC Vusi Mkhatshwa outlines the dynamic investment climate in the province. Mpumalanga Province is increasingly being seen as an investment destination of choice and we are working hard to market it as such. Quarterly investment roundtable discussions in each of the province’s three districts have been held and international visits are promoting the province’s qualities. The Investment Summit is a culmination of this process, but it will also continue beyond the Summit. The private sector has announced huge investments in the province, targeting projects in solar energy, wind energy, biomass, battery storage, gas, wood-bonding material, hybrid fuel rods, waste gas from ferrochrome, land rehabilitation, reclamation of mine water and sustainable agriculture. We are proud to announce that the Mpumalanga Green Cluster has been granted membership of the ICN (International Cleantech Network). This gives the province access to over 15 000 tech companies, providing opportunities for information, knowledge, technology and business exchange, further boosting Mpumalanga’s prospects for job creation and investment attraction. These sorts of structures and partnerships are relatively new and are a way to ensure that the best aspects of government, business and academia

can be applied towards development that unlocks jobs and investment. We see the Green Cluster as a key mechanism for the implementation of enabling investment in the Green Economy. Several energy projects have been launched. For example, investment commitments to the value of R75-billion in wind energy have been secured, which have the potential to create over 13 000 jobs. Municipalities are aware of the work that must be done to grow the Green Economy. In support of potential new investments and working with the Office of the Premier, our department has successfully hosted an Energy Summit at eMalahleni, with the objective to create pathways for a “Just Transition”. Rebooting the economy MEC Vusi to accommodate the Mkhatshwa Green Economy in a just way will create tremendous opportunities for creative investors in Mpumalanga. As an indication that we are on the right track, the Nkomazi Special Economic Zone already has an investment pipeline worth over R10-billion in the agroprocessing, green energy and logistics sectors. We invite other investors to join the new wave of investing in Mpumalanga!


THE PERFECT LAUNCH PAD FOR AFRICA The African Continental Free Trade Area could revolutionise African trade: Mpumalanga is the perfect launch pad for manufacturers and exporters. The African Continental Free Trade Area (AfCFTA) has been agreed on by almost all African nations and holds the potential to change the nature and size of trading on the continent in profound ways. Mpumalanga Province, as a strategically-positioned region with a dynamic manufacturing sector and excellent logistics and infrastructure, provides the perfect launch pad for investors looking to take advantage opportunities that will be created by the AfCFTA Agreement. The burgeoning African middle-class is a global trend that economists are carefully watching. As more sophisticated infrastructure is rolled out across Africa, having a base with good connections to ports and with good air, road and rail connectivity will be vital. Mpumalanga has all of that, and more. An Extraordinary Summit of the AU Assembly on the AfCFTA was held in December 2020. The Assembly approved the start of trading under the AfCFTA

Agreement from the beginning of 2021. Further meetings have been held to take the process forward in terms of details and practical measures. The nations covered by AfCFTA have an estimated combined GDP of $2.5-trillion and a population of over 1.2-billion. In terms of population, it will be the largest free trade area in the world. The AfCFTA envisages the gradual elimination of tariff and non-tariff barriers to trade on the continent. In terms of export-driven manufacturing and production Mpumalanga is well positioned to take full advantage of the economic promise of the AfCFTA and attract investment, thereby helping to increase income levels and reduce poverty. Mpumalanga is served by the Maputo Development Corridor (MDC), which 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 Mozambique. This strategic location gives Mpumalanga a particular advantage with respect to logistics and market access. Improving and increasing intra-African trade will change the way countries do business and include a much broader range of countries and products into the global market. Foreign direct investment is expected to grow rapidly, as investment opportunities such as those on offer in Mpumalanga attract the attention of international companies and institutions. New sectors, such as the Green Economy which Mpumalanga is actively preparing for, will grow exponentially on the back of a continental system of trade with fewer barriers and more connections than ever before.


AfCFTA FAST FACTS Africa’s exports could increase by $560-billion and some experts predict that continental business and consumer spending could reach $6.7-trillion by 2030.

$450 BILLION

AfCFTA could

boost regional income by 7% or $450-billion (Source: the World Bank)

AfCFTA could lift

30

-million people

out of poverty, according to the World Bank

10%

AfCFTA could boost wages by up to

* World Bank estimate

ABOUT SADC South Africa is a member of one of Africa’s oldest regional organisations, the 16-member Southern African Development Community, (SADC). This enables duty-free trade within a growing market of more than 360-million people. All goods shipped under SADC Certificate of Origin receive duty-free status.

Duty-free trade

within a GROWING MARKET

360

of more than

million people


ABOUT MEGA The Mpumalanga Economic Growth Agency (MEGA) is the official Economic Development Agency for the Mpumalanga Provincial Government. MEGA’s primary mandate is to foster the sustainable growth and development of Mpumalanga’s economy through its operational activities of Trade and Investment Promotion, Development Funding, Equity Investments, and Property and Infrastructure Development. The Agency remains accountable to the Mpumalanga Department of Economic Development and Tourism (DEDT). MEGA is the foreign investor’s or trader’s first point of contact for doing successful business in Mpumalanga Province. Through the Trade and Investment Promotion Division, the Agency provides a variety of services to potential investors and trading partners. MEGA services MEGA staff will go out of their way to make the process of investing in Mpumalanga or starting a business in the province easy. MEGA is focussed on customer needs and provides innovative solutions with a high level of service. Services include: • Foreign Trade Promotion • Investment Promotion • Funding • Property Management and Infrastructure Development Planning the way forward National government has articulated a Nine-Point Plan which seeks to prioritise projects that will tackle key economic issues. MEGA is aligned with the plan, which include issues relevant to growing the provincial economy: • revitalise agriculture and the agro-processing chain • advancing mineral beneficiation • implementing the Industrial Policy Action Plan (IPAP) effectively • unlocking the potential of SMMEs, cooperatives and township and rural enterprises • resolving the energy challenge • stabilising the labour market • upscaling private investment • investment in science and technology, water and sanitation, transport and broadband connectivity


MPUMALANGA’S ECONOMY The provincial economy of Mpumalanga is exceptionally diverse. Established industries in the province include Mining, Stainless Steel, Petrochemicals, Pulp and Paper, FerroAlloys, Energy Generation, Tourism, Agriculture and Agro-Processing, among others. Companies in these sectors include global giants in their industries such as Sasol (energy and chemicals), Sappi (paper, packaging, pulp and forests), Samancor Chrome (ferrochrome), Sibanye-Stillwater and Glencore (mining). The province’s commercial farmers are among the most efficient in the world, exporting huge quantities of everything from citrus to macadamia nuts. Columbus Stainless is the only stainless-steel manufacturer on the continent.

AGRICULTURE 3%

COMMUNITY SERVICE 19%

ELECTRICITY 7%

FINANCE 14% TRANSPORT 6%

38% 34% 28% Ehlanzeni

MANUFACTURING 15%

CONSTRUCTION 2%

District GVA by district

Nkangala

MINING 20%

Gert Sibanda

TRADE 14%

Governance The province has three district municipalities and 17 local municipalities. Several agencies which promote the regional economy report to the Mpumalanga Provincial Government. Large parts of the province comprises extensive rural villages that form part of areas run by traditional authorities.

Transport Two airports at Hoedspruit (Eastgate Airport) and Mbombela (Kruger Mpumalanga International Airport, KMIA) plus many airfields. Extensive freight rail network, busiest in South Africa. N4 highway (Maputo Corridor) is an east-west spine of highly-developed road system. Lydenburg N11

PRETORIA N4

Sabie

R36

R37 N4

Belfast

Middelburg

N4

MOZAMBIQUE Komatipoort

Mbombela

N12

R40

JOHANNESBURG N17

N2

Ermelo

Carolina N17

Barberton

SWAZILAND

MAPUTO


KEY SECTORS AGRICULTURE Agriculture in Mpumalanga is responsible for 3% of the province’s gross value added by region (GVA-R) and can be divided into the following categories (see map, right).

REGIONAL PRODUCE

Lowveld

Mpumalanga Province is one of South Africa’s most productive and important agricultural regions and plays a key role in the export profile of South Africa, primarily in fruit and nuts. The province’s economic diversity extends into the agriculture sector where the natural topography of the province divides this sector between the Highveld and Lowveld Regions.

9:1

Highveld

Highveld Region: Summer cereals and legumes: maize, soya, canola, sunflower. Animal products: bovine meat, swine, sheep and poultry. Lowveld Region: Subtropical and citrus fruits, nuts and cane sugar.

The Highveld Region in the west of the province is at an elevation Mpumalanga’s ratio of of between 4 000 and 6 000 feet above sea level. This allows for commercial farmers to the large-scale and commercial production of cereals and legumes small-scale farmers like maize, soya, canola and sunflower. The subtropical region of the Mpumalanga Lowveld plays a key role AGRICULTURE in the agricultural export profile of the province, primarily in fruit and nuts. SUMMER CEREALS & LEGUMES Mpumalanga Province is one of the world largest producers and exporters MAIZE Maize meal of citrus fruit. Duty-free exports of South African citrus to the USA under the SOYA Meal, Edible oil African Growth and Opportunity Act (AGOA) reached CANOLA Edible oil SUNFLOWER Edible oil a peak of 91 000 tons in 2020 ($94.9-million) and TROPICAL & are expected to continue their strong annual growth SUBTROPICAL FRUIT CANE SUGAR Sugar / as the USA is still considered a premium market. confectionery Mpumalanga Province is the world’s largest producCITRUS Juice & concentrate MANGOES Dried, frozen, er and exporter of macadamia nuts. The province juice & concentrates earned $207-million in exports in 2019, $76-million LITCHIS Dried, frozen, juice & concentrates of this to the US. There have been major new AVOCADOES Avocado oil investments in processing facilities in Mpumalanga. GUAVA Dried, frozen, juice & concentrates Mpumalanga’s rich agricultural produce is utilised MACADAMIA NUTS Processed & confectionery by companies such as McCain, Nestlé and PepsiCo. $94.9-million

4 000ha

70

The value of the duty-free exports of South African citrus to the USA under AGOA in 2020, a record 91 000 tons

Of macadamia nut trees are newly planted in South Africa every year, mostly in Mpumalanga and neighbouring Limpopo

Seats on each of the six staff buses, together with 50 trucks and refrigerated trailers, run by banana farmers Umbhaba Estates


KEY SECTORS FORESTRY Forestry is a key driver for the development of Mpumalanga’s rural economy and a major provider of job opportunities. About 40% of SA’s sustainable forests are located in Mpumalanga Province. The industry comprises logging, saw-milling, wood products, wood board, pulp and paper as well as specialised cellulose.

Mpumalanga has

39 plants processing

out of 148 in South Africa

Specialised cellulose is a sought-after natural, renewable fibre with a wide range of uses in the textile, consumer goods, foodstuff and pharmaceutical industries and is produced in large quantities at Sappi Ngodwana. PG Bison has recently invested R560-million in a new front-end dryer for its particleboard plant in Mkhondo (Piet Retief). The company is also building a new medium-density fibreboard (MDF) plant at its Mpumalanga plant. SAFCOL/Komatiland is the state forestry company with commercial and non-commercial operations covering a land area of 187 320ha.

R9.5 billion

MAIN EXPORTS PULP PAPER SPECIALISED CELLULOSE SAWN LUMBER WOOD CHIPS WATTLE EXTRACT MAJOR COMPANIES SAPPI SAFCOL SONAE ARAUCO PG BISON YORK TIMBERS FX GROUP

Sonae Arauco is a Portuguese investment. A new entrant, local BEE company the FX Group, is commissioning a greenfield particle board plant in Lothair in the Gert Sibande District.

Amount invested in the foresty industry

40%

R560-million

Of South Africa’s sustainable forests are located PG Bison’s recent investment in a new front-end in Mpumalanga and it leads the nation in hectares dryer for its particleboard plant in Mkhondo planted and export earnings (Piet Retief)

18 Softwood saw-log plantations run in three provinces by Komatiland Forests, a subsidiary of state-owned enterprise SAFCOL


KEY SECTORS MINING, MINERALS

AND ENERGY

Mining is the province’s largest single sector providing employment to 5.2% of the province’s workforce and making up 20% of gross value added by region (GVA-R).

83%

Coal: 83% of South Africa’s coal production, 50% of national coal reserves, third-largest coal-exporting region in the world. Coal is the lifeblood of provincial economy, fuelling 11 Eskom power plants, which produce 80% of South Africa’s electricity. Coal is of South Africa’s Mpumalanga’s single coal production largest export product, shipping mainly to India and Pakistan.

MINERALS COAL Waste briquettes GOLD JEWELLERY CHROME PLATINUM IRON ORE VANADIUM MANGANESE GRANITE Building cladding & tombstone CLAY Porcelain & ceramics Electrical insulators

50% of South Africa’s national coal reserves

Other minerals: Gold mining takes place in Evander, Pilgrim’s Rest and Barberton. Gold is the second-largest export from the province.Platinum and chrome ore mining is located in the Steelpoort and Burgersfort areas in the north of the province and make up part of the Bushveld Igneous Complex. The mining services and technology industry is an important subsector in Mpumalanga. With over a century of commercial mining operations in the province, homegrown technologies are now exported globally. National utility Eskom will spend R3.3-billion on the revival of the Matla coal mine. Exxaro Resources will manage the project and do the mining while major companies such as DRA, Worley, Sandvik and WBHO will also be involved. Other companies engaged in expansion of life-of-mine projects are Pan African Resources and Evander (Elikhulu tailings), Exxaro Resources (Leeuwpan) and South32, which is spending about R4.3-billion at Klipspruit. Platinum is an important mineral for the modern economy. Two Rivers is a joint venture between Implats (46%) and African Rainbow Minerals which is located on the southern part of the eastern limb of the Bushveld Igneous Complex, 35km south-west of Burgersfort in Mpumalanga. Lydenburg is home to the Lion ferrochrome smelter that is a joint venture between Glencore and Merafe Resources.

R3.8-billion

69 000

16

To be spent by Exxaro on its Belfast coal mine, one of five assets in Mpumalanga

People were employed in the mining industry in Mpumalanga in 2021 (StatsSA)

Platinum group metals (PGMs) projects are underway in the province, home to part of the eastern limb of the Bushveld Igneous Complex


KEY SECTORS GREEN

ECONOMY AND JET

Mpumalanga has historically been at the heart of the South African energy and industrial complex and is still heavily reliant on the mining and burning of fossil fuels. The Mpumalanga Provincial Government has been proactive in exploring opportunities in the Green Economy and pursuing a just transition to a low-carbon economy which secures the future and livelihoods of workers and their communities. Achieving such a just transition would require an integration of economic opportunities in sectors outside of energy and mining.

A Just Energy Transition (JET) to a Green Economy presents the following opportunities: • Renewable energy: solar, biomass, natural products • Gas and associated industries • Sustainable smart agriculture: environmentally-friendly agriculture and agricultural processing • Circular Green Economy: waste recycling, water reclamation, land rehabilitation • Soft infrastructure: reskilling and institutional capacity-building for a carbon-neutral future • Hard infrastructure: investment and expertise are needed in urban planning, water and waste management • Building technologies: greener and more energy-efficient 25MW

One

Mpumalanga has

11 plants ESKOM POWER

• Transport and logistics: greener and more energy-efficient Specific opportunities include: • There are plans for the decommissioning of 11 000MW of Eskom’s coal-fired capacity by 2030. Opportunities are presented by repurposing land. • The vast new fields of natural gas found off the coast of Mozambique could have a big impact on the Mpumalanga economy. • A Renewable Energy Development Zone (REDZ) is planned for eMalahleni / Witbank where coal jobs are at risk. 18

The biomass energy plant at Sappi’s Ngodwana Pilot site of Carbon Capture, Utilisation and Storage Winning bids from an auction among independent Mill started producing in March 2022 and can get (CCUS) project near power stations and chemicals power producers (IPPs) to use Eskom land to through 35 tons per hour of biomass complex, run by Council for Geoscience generate 1 800MW of renewable energy


KEY SECTORS MANUFACTURING Three primary pillars of the manufacturing sector in Mpumalanga account for more than 60% of the output of the manufacturing sector, which overall makes up 15% of gross value added, regional (GVA-R). Fuel, petroleum and chemical products are manufactured at the Sasol Secunda plant in Secunda, Gert Sibande District. It is one of the world’s largest synthetic fuels facilities, producing 60-million litres of liquid fuel a day. Products produced include petroleum, paraffin, jet fuel, creosote, bitumen and waxes. The ferro-alloy and stainless-steel industries are based in the Nkangala District. Columbus Stainless in Middelburg is Africa’s only producer of stainless-steel flat products. Samancor Chrome (Ferrometals), the world’s second-largest ferrochrome producer, has two plants in Mpumalanga.

MAIN EXPORTS STAINLESS STEEL Cutlery Catering equipment Surgical instruments Automotive components STEEL White & grey goods Pipes & tubes Wire PETROCHEMICALS Plastic products Recycling plastics Artificial rubber products Paint & vanish Inks & dyes FOOD PROCESSING Maize meal Machinery Frozen & dehydrated VEGETABLES Preserves, pickles & condiments Nuts PAPER Recycling SUGAR Confectionery MINING Machinery and services RENEWABLE ENERGY Solar and biofuel Biomass

90 000

Agro-processing is mainly based in the Lowveld Region and consists of manufacturing forestry products (pulp, paper and cellulose), sugar at the Selati RCL Foods plants in Nkomazi and processing subtropical fruit and nuts. The province’s flourishing macadamia nut industry has a number of large processing facilities based around the provincial capital Mbombela. Subtropical fruits like mango, banana, papaya and citrus are processed into juice concentrate or dried for export. There is a geographical divide in the manufacturing sector. Fuel, petroleum and chemical production occurs in the southern Highveld Region clustered around Sasol’s plants. The northern Highveld area, including Middelburg and eMalahleni (Witbank), is home to ferro-alloy, steel and stainless-steel concerns. Creative thinking kicked in when Highveld Steel’s troubles reached a tipping point. The 1 000ha property in Emalahleni has been re-purposed as a multi-purpose site for industry and commerce. Called the Highveld Industrial Park, the project promotes a wide range of manufacturing enterprises. In the Lowveld, agricultural and forestry products are processed while Sappi’s giant mill is close to the company’s forests south-west of the provincial capital, Mbombela. 200

Five

Square feet (8 361m²) of floor space at McCain’s Textile machines work 24-hour days overseen by Small business incubators run by Seda in food-processing plant in Delmas where French 500 employees at Standerton Mills making yarns Mpumalanga in renewable energy, furniture, fries are made and fabrics floriculture, agriculture and stainless steel

1


KEY SECTORS TOURISM The importance of tourism to the economy of Mpumalanga cannot be overstated. The effect of the Covid-19 pandemic has been strongly felt. Mpumalanga received only 340 000 international visitors in 2020, down from 1.6-million international visitors in 2019. The key source countries were Mozambique, eSwatini, the USA, Germany, France and the UK.

21billion Rand value of tourist spend in Mpumalanga… before COVID-19

White crested hawk Domestic tourism has steadily increased. The total tourist foreign direct spend (TTFDS) in Mpumalanga for 2020 was R7.5-billion, down from over R21-billion in 2019. The sector accounts for 6% of gross value added, by region (GVA-R). The announcement in 2022 by Eurowings Discover, a new division of Lufthansa, that it would start flying three times a week to Mbombela from Frankfurt, via Windhoek, will give a certain boost to tourist numbers visiting Mpumalanga. The Kruger National Park is Mpumalanga’s most famous tourist asset and safaris and hunting are major tourist attractions. The Manyeleti Reserve, a 23 750-hectare game reserve sharing a fenceless border with the Kruger National Park, is operated and managed by the Mpumalanga Tourism and Parks Agency (MTPA). God’s Window and the Blyde River Canyon Reserve are other provincial treasures attracting investment. Business travel, including conferencing, adventure, heritage and cultural tourism, all hold huge growth potential in Mpumalanga, but require investment in infrastructure and product development. A hotel and conference centre project in Middelburg is Number of visitors making progress and should be completed in 2023.

1.6 MILLION

ANNUALLY pre-COVID-19 3.7km

500+

13

Length of one of Eastgate Airport’s runways at Hoedspruit, which doubles as an airforce base. The other runway is 2.1km

Bird species recorded in the Kruger National Park, including the Kori Bustard, Martial Eagle, Southern Ground Hornbill and Lappetfaced Vulture

Nature reserves are run by the Mpumalanga Tourism and Parks Agency and Kruger National Park is run by SANParks


INVESTMENT OPPORTUNITIES TOURISM Selected Strategic High Impact Projects: BOURKE’S LUCK POTHOLES HOTEL This natural water wonder is a major tourism attraction in the Mpumalanga Lowveld. This project presents an investment opportunity for a five-star hotel and a top-quality restaurant.

Feasibility study: completed Environmental Impact Assessment (EIA): commenced Model: Joint Venture (JV), Build-Operate-Transfer (BOT) Value: R100-million

BLYDE RIVER CANYON CABLE CAR PROJECT The Blyde River Canyon is the largest and deepest green canyon in the world and offers a spectacular opportunity to build a cable car transporting tourists from the top of the canyon to the peninsula below.

Feasibility study: completed EIA: commenced Model: JV, BOT Value: R500-million

GOD’S WINDOW SKY WALK The project to build a “Sky Walk”, an incomegenerating tourism attraction off the edge of the 700m God’s Window cliffs, giving 360-degree panoramic views out and down through a glass floor.

Feasibility study: completed EIA: commenced Investors secured Model: JV, BOT Value: R100-million


INVESTMENT OPPORTUNITIES PRODUCE

MARKET

Selected Strategic High Impact Projects: MPUMALANGA INTERNATIONAL FRESH PRODUCE MARKET MEGA is establishing a R1.2-billion fresh produce market facility located in Mbombela, the Mpumalanga International Fresh Produce Market (MIFPM). To date the province has invested an estimated R540-million in the project. Mpumalanga is one of South Africa’s most productive and important agriculture regions. It is home to predominantly tropical and subtropical crops and vegetables owing to its conducive climate. The tropical and subtropical crops consist of avocado, banana, citrus, ginger, granadilla, guava, litchi, macadamia nut, mango, papaya and pineapple. The vegetables produced include potatoes, tomatoes, pumpkins, sweet corn, onions, sweet potatoes, beetroot, carrots, green peas, cauliflower, cabbages and green beans.

The market will offer: • Open trading halls for fruit and vegetables • A meat, fish and flower market • Complementary cold storage, ripening facilities and pallet handling • Processing facilities • An export hall • Bulk-breaking facilities for retail outlets • Links with statutory organisations such as customs, PPEBC and EuroGap • Transport and logistics enterprises • Shared collation and pack house facilities for SMMEs • Commercial services including banks and restaurants • A food bank for NGOs

Site: The site is in Mbombela on a 248ha plot less than 10km from the Central Business District. It is situated within the Maputo Development Corridor (MDC), linking Mpumalanga, Gauteng Province and the Nkomazi Special Economic Zone with the deepwater Port of Maputo in Mozambique. The market: The market will give local farmers access to local, regional and international fresh produce markets and will aid in ensuring food security for the region. The infrastructure of the MIFPM will attract international as well as the large domestic food retailers as a key processing and distribution point. It will also secure Mpumalanga’s position in the regional export market in fresh produce.

Feasibility study: completed EIA: completed Bulk infrastructure: completed Top structures: underway Model: JV, BOT Value: R1-billion


MPUMALANGA – NKOMA

INVESTMENT OPPORTUNITIES NKOMAZI

SEZ

Selected Strategic High Impact Projects:H NKOMAZI SPECIAL ECONOMIC ZONE

H

Manufacturing

The Nkomazi Special Economic Zone has Recreation been officially designated and MEGA has Centralised Facilities been appointed to establish the entity. SEZs are geographically designated Convenience Retail Logistics areas set aside for specifically targeted economic activities that are supported through special tax incentives. An SEZ Accommodation aims to be an economic development tool to promote rapid economic growth by using various support measures to attract targeted foreign and domestic investments and technology. The main goal is to support the implementation of South Africa’s industrial development programme. 2022/03/23 Strategically positioned in the border town of Komatipoort, the SEZ MPUMALANGA offers a multi-sector – FOREIGN T base of operations along the Maputo Development Corridor which provides exporters with Distance to: ► Johannesburg good access through Maputo Port to the export markets of South East Africa, the Indian – 449km MPUMALANGA – NKOMAZI SEZ ► Mbombela – 103km Ocean Rim and Far East Asia. ► Maputo – 99km ► Mbabane – 186km The Nkomazi SEZ will target investment from the agriculture, agro-processing, nutraceuticals and fertiliser production sectors, as having a strong focus on logistics and trade services. The NSEZ offers the investor a unique and incentivised base of operations on the Maputo Development Corridor running through the most highly industrialised and productive regions of Southern Africa. The Maputo Corridor is bound to develop even more as the Maputo harbour improves its handling and scheduling capacity. In the event that a second rail line to Maputo to complement the current rail link is developed, the shipment of mining products and agricultural produce to and from the Limpopo and MPUMALANGA – FOREIGN TRADE Mpumalanga provinces will increase. The NSEZ is set to provide One-Stop-Shop services, incentives, innovation platform, a competitive and transparent market environment, and timeous and efficient responses to investors’ market requirements. Distance to: ► Johannesburg – 449km ► Mbombela – 103km ► Maputo – 99km ► Mbabane – 186km


FOREIGN TRADE Mpumalanga is proving to be a key player in the local economy as well as internationally. TOP EXPORTS 2021 Ferroy-alloys R33-billion

($2.2-billion)

Stainless steel R8.9-billion

($593.3-million)

Platinum R8.7-billion

($580-million)

Gold R7.3-billion

($486.7-million)

Macadamia nuts R4.2-billion

($280-million)

Coal R3.7-billion

($246.7-million)

Chrome ore R2.2-billion

($146.7-million)

Manganese R1.2-billion

($80-million)

Fuel wood R1-billion

($66.7-million)

Citrus fruit R604-million

($40.3-million)

TOP 10 EXPORT MARKETS 2021 UAE R9.9-billion

($664-million)

People’s Republic of China R9.8-billion

($663.3-million)

USA R8-billion

($533.3-million)

Mozambique R7.4-billion

($493.3-million)

Japan R5.5-billion

($366.6-million)

Korea R3.8-billion

($253.3-million)

Netherlands R3.3-billion

($220-million)

eSwatini R3-billion

($200-million)

Indonesia R2.9-billion

($193.3-million)

United Kingdom R2.7-billion

($180-million)