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2019/20 EDITION

MPUMALANGA BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN MPUMALANGA PROVINCE

OVERVIEW

Oil and gas Gas exploration and gas conversion are growing trends.

OVERVIEW

Manufacturing Highveld steel works lives again as an industrial park.

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grow the provincial economy of sectors. Beneficiation of timber biomass are two obvious areas in a sector that already boasts a

Mpumalanga’s Gross Domestic makes up 12% of South Africa’s oducts sector contributes about ises logging, saw-milling, wood acture. Pulp and paper are the r, wood chips and wattle extract. rtage of sawn timber with very in recent times due to concerns mber in South Africa is used in

te and topography for forests. of the industry, but commercial outh along the Swaziland border. d, with 4% of that being natural der in total hectares under forest

York Timbers celebrated its centenary in 2016. nternational chemicals and energy company Sasol has several large • An Agriculture and plants in Mpumalanga and plays a major role in the economy of the province. The company’s most recent upgrade of two polypropylene Forestry Technology Park manufacturing plants at Secunda has been completed at a cost of is planned.

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R1.1-billion. This follows shortly after a stabilisation scheme valued at R1.3-billion and is part of the global giant’s ongoing investment in its facilities. More than 900 jobs were created for the duration of the upgrading Development and Tourism project, which took place while production continued at the plant. (DEDET) will spend R3.9-million Polypropylene is used in packaging, automotive components and in the 2017/18 year on textiles statu-and demand is growing every year. Mpumalanga, Sasol’s assets are Sasol Mining, Secunda Synfuels tory compliance for this parkInand Operations, other parks, which will include an Secunda Chemicals Operations and Sasol Energy. Products manufactured at the Secunda complex include petroincubation element for SMEs. leum, paraffin, jet fuel, creosote, bitumen, diesel and lubricants. Gas byThe Mpumalanga Economic products include oxygen and acetylene, liquefied petroleum gas (LPG), andPath hydrogen and nitrogen. The primary feedstock for synthetic-fuel Growth and Development production is coal, and the plant is located in the heart of Mpumalanga’s (MEGDP) intends to expand the coalfield region.

industrial base of the provincial economy, with a focus on benefiMPUMALANGA BUSINESS 2017/18 ciation, agri-processing and value

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reative thinking kicked in when Highveld Steel’s troubles reached the tipping point in 2015. Aside from the business rescue process, which has allowed some production to restart, there is some irony in the that fact that the 1 000ha property has been re-purposed as a multi-purpose site for industry and commerce. Called the Highveld Industrial Park, this project has had the effect of promoting a diversity of manufacturing enterprises, something which has been a priority for economic planners for many years. Stockpiles of coal and vanadium are being sold off, but two iron plants and a steel plant offer fully-equipped metallurgical and steelSasol produced amaking record facilities, supported by environmental monitoring services and metallurgical volume of synfuel in 2017. and chemical laboratories. The private rail siding gives the park good connections and the fact • Tosaco Energy is searchthat Sasol can supply methane-rich natural gas and that two gas proing for gas at three sites. ducers (Air Liquide and African Oxygen) have plants in the park makes for an advantageous setting for industrial enterprise. The Eskom grid supplies 350mVA power supply directly. The park is near eMalahleni, next to the N4 highway and close to the N12 highway. The Sasol Synfuels refinery, In early 2018, the park had 21 tenants and many enquiries. Tenants which forms part of theinclude Sasolacomtraining centre funded by the Construction Sector Education Training Authority (CETA) and a mining equipment refurbishment plex at Secunda, is theand only comcompany. An agricultural college is planned. mercial coal-to-liquid fuel plant in The structural mill of Evraz Highveld Steel in Witbank was officially the world, and forms relaunched a vital part in June 2017 after ArcelorMittal South Africa signed a contract supply blooms and slabs for the mill to make into heavy of South Africa’s oil and gas tosec-

SECTOR INSIGHT

MP U MA L A NGA

tor. In July 2017 Sasol announced MPUMALANGA that the synfuel plant produced a BUSINESS 2018/19 record annual output. Sasol is spending about R12-billion on expanding the

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SECTOR INSIGHT

Most jobs in manufacturing are in food and timber.

structural steel. Evraz Highveld went into business rescue in 2015. The contract is for two years with an option to renew for another year. Alternately, ArcelorMittal may buy the mill after the two years. The presence of Ferrometals means that Mpumalanga is still an important place for metals and machinery manufacturing, but the turbulence in the steel sector has reminded everyone of the need to diversify. The chemicals and liquid fluids complex of Sasol at Secunda is a vital component of the province of Mpumalanga’s manufacturing sector. The


SASOL SECUNDA OPERATIONS

The core of Sasol’s Southern African Operations

Sasol is an international integrated chemicals and energy company. Through our talented people, we use selected technologies to safely and sustainably source, produce and market chemical and energy products competitively to create superior value for our customers, shareholders and other stakeholders. The company's Secunda Operations are the core of Sasol's Southern African Operations, producing a wide range of petroleum products including diesel, petrol and jet fuel, as well as chemical products which include ethylene, propylene and ammonia value chains. The operations contribute to job creation, sustainable development and security of supply in chemicals and energy. The site is host to the following entities: Sasol Mining, Secunda Synfuels Operations, Secunda Chemicals Operations, Sasol Energy and Group Technology. Sasol Mining operates ve coal mines in Mpumalanga that supply feedstock for the Secunda Synfuels Operations complex. The coal is mainly used as gasication feedstock and to generate electricity. Sasol Mining also exports coal from its Twistdraai Export Plant to international power generation customers. As some of these mines are approaching the end of their useful lives, new developments are underway to ensure continued supply through the company's Mine replacement programme. Secunda Synfuels Operations operates the world's largest coal-to-liquid manufacturing facility, producing synthesis gas (syngas) through coal gasication and natural gas reforming. The operating hub uses proprietary technology to convert syngas into synthetic fuel components, pipeline gas and feedstock for producing chemicals. Secunda Chemicals Operations is a large-scale integrated chemical product manufacturing facility that produces and adds further value to the Sasol chemicals value chains. Secunda Chemicals Operations also provides Sites Services, Infrastructure Maintenance and Product Logistics Services for the Secunda site. The Energy Business is key to Sasol's growth aspirations inside and outside South Africa, manages the marketing and sales of all Sasol’s oil, gas and electricity products in Southern Africa. Group Technology manages Sasol's research and development, technology innovation and management, engineering services and capital project management portfolios. The function contributes towards Sasol's fuels and chemicals businesses to maintain growth and sustainability through appropriate technological solutions and services. As an active corporate citizen, Sasol invests meaningfully in communities close to its operations with the main objective of sustainably contributing to the broader socioeconomic development of the Mpumalanga province as well as South Africa.


For more information visit www.sasol.com.


CONTENTS

CONTENTS Mpumalanga Business 2019/20 Edition.

Introduction Foreword6 A unique guide to business and investment in Mpumalanga. Mpumalanga Economic Growth Agency (MEGA) Driving trade and investment in Mpumalanga.

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Special features Regional overview  Diversifying and growing the manufacturing sector are priorities for the region.

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Investment incentives  A range of incentives are available to investors, companies, entrepreneurs and co-operatives.

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Industrial parks and Special Economic Zones Dedicated zones and good rates are encouraging manufacturing.

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Economic sectors Agriculture and agri-processing A second agri-hub will be completed this year.

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Forestry and paper Sawmills are generating energy.

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Oil and gas Sasol is a world leader in liquid fuels.

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Water A new dam is to be built on the Crocodile River.

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MPUMALANGA BUSINESS 2019/20

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Terms and Conditions apply. Handles/usernames are illustrative only. Any similarity to any other handle/username on any platform, or otherwise, is coincidental. Terms and Conditions apply. Handles/usernames are illustrative only. Any similarity to any other handle/username on any platform, or otherwise, is coincidental. Terms and Conditions apply. Handles/usernames are illustrative only. Any similarity to any other handle/username on any platform, or otherwise, is coincidental. Terms and Conditions apply. Handles/usernames are illustrative only. Any similarity to any other handle/username on any platform, or otherwise, is coincidental.


CONTENTS Mining40 Sasol’s R5.6-billion Impumelelo Colliery is producing coal. Manufacturing44 Government wants to promote township and rural manufacturing. Transport and logistics The first phase of the Moloto Corridor is complete.

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Tourism48 The Mpumalanga Liberation Route has been launched. Banking and financial services Digital banking is on the rise.

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Development finance and SMME support 52 Many small businesses operate in trade and accommodation. Education and training A new boarding school will assist rural children.

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References Sector contents

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Index56 

ABOUT THE COVER: Credit: Ugurhan/iStock by Getty Images. Tourism is a key sector in the economy of Mpumalanga. The Kruger National Park is a vital asset in an offering that includes adventure tourism, game viewing, heritage and natural history. Numbers of local and international visitors are rising steadily on the back of new products being rolled out in the province.

MPUMALANGA BUSINESS 2019/20

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INTERVIEW

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FOREWORD

Mpumalanga Business A unique guide to business, investment and tourism in Mpumalanga.

T

he 2019/20 edition of Mpumalanga Business is the tenth issue of this highly successful publication that since its launch in 2008 has established itself as the premier business and investment guide for the province. In addition to the regular articles providing insight into each of the key economic sectors of the province, there is a special focus on the new life given to an established site at the Highveld Industrial Park and the Nkomazi Special Economic Zone (NSEZ). A useful article on what incentives are available to investors is included, and the Mpumalanga Economic Growth Agency (MEGA) gives investors some perspectives on what is available in the province. Mpumalanga has several investment and business opportunities in a wide range of sectors. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.globalafricanetwork.com. Updated information on Mpumalanga is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title. Chris Whales Publisher, Global Africa Network Media • chris@gan.co.za

DISTRIBUTION Mpumalanga Business is distributed internationally on outgoing and incoming trade missions; through the Mpumalanga Economic Growth Agency (MEGA); 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, airport lounges, provincial government departments, municipalities and companies.

Publisher: Chris Whales Publishing director: Robert Arendse Editor: John Young Online editor: Christoff Scholtz Art director: Brent Meder Design: Tyra Martin Production: Lizel Olivier Ad sales: Gavin van der Merwe, Sam Oliver, Gabriel Venter, Vanessa Wallace, Jeremy Petersen, Shiko Diala and Sandile Koni. Managing director: Clive During Administration & accounts: Charlene Steynberg and Natalie Koopman Distribution & circulation Manager: Edward MacDonald Printing: FA Print

PUBLISHED BY Global Africa Network Media (Pty) Ltd Company Registration No: 2004/004982/07 Directors: Clive During, Chris Whales Physical address: 28 Main Road, Rondebosch 7700 Postal address: PO Box 292, Newlands 7701 Tel: +27 21 657 6200 | Fax: +27 21 674 6943 Email: info@gan.co.za | Website: www.gan.co.za ISSN 2222-3274

Member of the Audit Bureau of Circulations COPYRIGHT | Mpumalanga Business is an independent publication published by Global Africa Network Media (Pty) Ltd. Full copyright to the publication vests with Global Africa Network Media (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network Media (Pty) Ltd.

DISCLAIMER | While the publisher, Global Africa Network Media (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 | Highveld Industrial Park, iStock by Getty Images, SAB Foundation, Sappi, Sasol, Seda.

MPUMALANGA BUSINESS 2019/20

CREDITS

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MESSAGE

Mpumalanga: place of the rising sun

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pumalanga, which is in the northeast of South Africa and borders Mozambique and eSwatini, offers a strategic location to investors and export-oriented businesses. The Mpumalanga Economic Growth Agency – MEGA – is the official Economic Development Agency for the provincial government of Mpumalanga. MEGA offers a range of services to assist investors and exporters to take advantage of the many trade and investment opportunities in Mpumalanga Province. The provincial economy is highly diverse, with significant activity in mining, agriculture, stainlesssteel production, petrochemicals, pulp and paper, manufacturing and tourism. Mpumalanga’s position and resources make it a valuable transport and logistics hub. The Mpumalanga Economic Growth Agency (MEGA) facilitates investment in the province and is always keen to talk to potential investors.

good access to the markets of East Africa, the Indian Ocean rim and East Asia. The Mpumalanga International Fresh Produce Market (MIFPM) located in the provincial capital city of Mbombela is currently under construction. The MIFPM will serve farmers and customers from Mpumalanga Province, South Africa, regional markets in eSwatini and Mozambique and the global food market through the Port of Maputo. 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 African fruit and nuts. The MIFPM offers excellent investment opportunities for international companies in the food industry.

MEGA services We welcome potential investors in our province and go out of our way to make the process of starting a business easy. MEGA offers services in: • Foreign Trade Promotion • Investment Promotion • Funding • Property Management and Infrastructure Development. MEGA is focussed on customer needs and provides innovative solutions with a high level of service. We look forward to meeting you.

Investment opportunities The recently designated Nkomazi Special Economic Zone (SEZ) is the first SEZ to be established in Mpumalanga Province. Located in the town of Komatipoort, adjacent to the border with Mozambique, the Nkomazi SEZ is to be developed as an agro-processing hub, supported by logistics and other related international trade services. The Nkomazi SEZ, though a generous tax incentive package, will seek to maximise the participation and development of local agriculture and small and medium-sized enterprises throughout the value chain – from primary agriculture to the production of high-value end products for export. The Maputo Development Corridor (MDC) is a Spatial Development Initiative linking Gauteng, Mpumalanga, the Nkomazi SEZ and the Port of Maputo in Mozambique. The MDC infrastructure supports logistics operations and gives investors and exporters

CONTACT DETAILS: Tel: +27 13 755 6328 Fax: +27 13 755 1756 Email: info@mega.gov.za Website: www.mega.gov.za

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MPUMALANGA BUSINESS 2019/20


A REGIONAL OVERVIEW OF

MPUMALANGA Diversifying and growing the manufacturing sector are priorities. By John Young

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pumalanga is at the centre of power generation in South Africa, through its coal-fired power stations. Despite concerns about fossil fuels and their effect on the environment, coal is going to be around for the foreseeable future. The provincial government is looking beyond coal towards a renewable energy future, especially where projects can be tackled by small businesses. There might be opportunities in micro-hydro or rooftop solar projects that will help to reduce dependence on the national grid while simultaneously promoting SMMEs. As it happens, a number of coal mines are receiving new investments and Sasol has just launched the third of its replacement mines. MPUMALANGA BUSINESS 2019/20

A major concern for provincial planners is to diversify the economy and to grow the manu f a c tur in g s e c to r. T h e Mp umalan ga Economic Growth and Development Path (MEGDP) identifies beneficiation, agri-processing and the development of value chains as priorities. Steel and associated manufacturing remains one of the province’s strong suits, but a number of initiatives are being pursued to promote beneficiation and other forms of manufacture through a clustering approach and through tax incentives in Special Economic Zones. These initiatives are covered in a separate article elsewhere in this publication. A R250-million Youth Development Fund is to be launched in Mpumalanga, aimed at township

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SPECIAL FEATURE

and rural businesses run by young people. The Provincial Government of Mpumalanga is looking to cooperate closely with some of the large companies in the province who actively support SMMEs through enterprise and supplier development programmes. The Premier has identified possible partners such as the Exxaro Enterprise Development Fund, the Anglo Zimele Development Fund (Youth Development Hub and the Youth Development Initiative), the Sasol Enterprise Development Fund, South32, Glencore and the South African Institute of Chartered Accountants (SAICA). Tourism is one of the brightest jewels in the crown of the Mpumalanga economy. International tourist arrivals rose from 1.5-million in 2017 to

1.6-million in 2018. The Mpumalanga Tourism and Parks Agency (MTPA) has stepped up its marketing efforts with the result that domestic tourist arrivals also rose from 2.2-million in 2017 to 2.9-million in 2018. All of these tourists spent R13.1-billion, thus contributing significantly to the provincial economy. The Kruger National Park remains the province’s most visited asset but the decision by UNESCO to afford World Heritage Site status to the Makhonjwa Mountains near Barberton will boost geological tourism to the province and supports the efforts of the province to diversify its offering. Major projects to improve tourist experiences are underway at the Graskop Gorge (where a transparent lift takes tourists into the depths of the

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MPUMALANGA BUSINESS 2019/20


SPECIAL FEATURE gorge), a skywalk is to be built at God’s Window and a cable car is planned for Three Rondavels. The international body’s decision has also had the effect of expanding the curriculum at the relatively new University of Mpumalanga. On the basis of the UNESCO ruling, UMP is offering geology as part of a BSc degree, to supplement existing courses in education, agriculture and hospitality. Several infrastructure investment projects in the tourism sector have been put forward by the Mpumalanga Economic Growth Agency (MEGA). To promote the province, the Mpumalanga Tourism and Parks Agency regularly participates in IMEX events in Frankfurt and Las Vegas, Africa’s Travel Indaba and WTM Africa. Heritage and cultural tourism are in the spotlight because Mpumalanga is already a leader in nature reserves and parks. There is a special focus on BRICS countries and provincial authorities are investigating a tourism airlift route between Moscow and Mpumalanga. The TRILAND partnership with Eswatini and Mozambique is another avenue, as is the collaboration with KwaZulu-Natal, Eswatini, Mozambique and the Seychelles. The latter project is called east3ROUTE Tourism Initiative and proclaims “Experience, Adventure, Scenery and Trade” between the participating provinces and countries. Mpumalanga has rich and varied mineral resources and fertile soil that supports diverse farming operations. The province hosts large companies in the manufacturing sector, with internationally renowned firms such as Sasol (synthetic fuels and chemicals) and Xstrata (ferrochrome) having large operations in the province. Columbus Stainless in Middelburg is a major producer of stainless steel, while Middelburg Ferrochrome, Thos Begbie and the Nelspruit-based Manganese Metal Company are among other important heavy industrial companies. 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 MPUMALANGA BUSINESS 2019/20

to start producing dissolving wood pulp at its Ngodwana Mill has significantly increased the manufacturing capacity of the province. York Timbers is a leading forestry company and the sugar mills and refinery of RCL Foods (formerly TSB Sugar) are large contributors to the provincial economy. Sasol, the integrated oil, gas and chemicals company, runs several plants at Secunda. Products manufactured at the complex include synthetic fuel, petroleum, paraffin, jet fuel, creosote, bitumen, diesel and lubricants. The primary feedstock for synthetic-fuel production is coal, and the plant is in the heart of Mpumalanga’s coalfields. More than 80% of South Africa’s coal is sourced in Mpumalanga, with the town of Emalahleni (Witbank) being the centre of the industry. Other minerals found in the province include gold, platinum group minerals, chromite, zinc, cobalt, copper, iron and manganese. The southern half of the eastern limb of the platinum-rich Bushveld Igneous Complex runs south towards the towns of Lydenburg and Machdoadorp. Deposits of chromite, magnetite and vanadium in this area are the basis of the ferro-alloy complex in Witbank-Middelburg and Lydenburg. Nkomati Mine is South Africa’s only pure nickel operation.

Investments The biggest companies in Mpumalanga’s most significant sectors have been investing heavily in infrastructure and operations. Global energy and chemicals company Sasol regularly spends tens of millions on upgrades and improvements at its Secunda complex. The Sasol Synfuels refinery is the only commercial coal-to-liquid fuel plant in the world and constitutes a key component in South Africa’s oil and gas sector. Sasol Mining is also very active in the province: three of its projects are valued at more than R8-billion and the third and final mine in its replacement mine project was launched in 2019. Exxaro Resources is investing R3.8-billion in a new mine at Belfast.

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SPECIAL FEATURE

Another global giant, Sappi, has invested Differences in temperature and rainfall between heavily in the conversion of its massive Ngodwana the Highveld and Lowveld can be considerable. Mill (pictured), and other companies the paper Oneresources. of the fastest growing agricultural sectors pumalanga has 40% of SouthinAfrica’s forestry and forestry fieldpresents such as Mondi and York Timbers macadamia This fact an opportunity to exploitis the sector’s nuts. These are cultivated in the make large contributions to the province’s Lowveld and are exported in ever-growing by-products in the biomass-to-energy field. The Focus on Forestry coneconomic growth. volumes. The Nelspruit district in the Lowveld The Zebra Pellets plant in Sabie is to be converted ference will target digital The restarting of the Evraz Highveld steel mill in is South Africa’s second biggest producer of by national utility Eskom into a torrefied pellet plant. The wood will solutions. 2017 was particularly good news, after the company citrus fruit, while vegetables of all sorts do well be provided to the plant (owned by the Industrial Development went into business rescue two years before. in this area too. Corporation) and then heated without the use of oxygen Large (torrefied) in 2019 by the Centre for the ArcelorMittal South Africa continued supplying parts of the province are in the so-called which creates to a coal-like product the carbon.Middleveld comprising Modernisation Forestr y feedstock the mill and in 2019without took up its option high-plateauofgrasslands. Plans to develop an Agriculture and Forestry Technology Park are Operations (CMO), the Institute to purchase the mill. The rest of the mill complex Forestry operations are found in central and beingproperty, drawn up by the Provincial Government of Mpumalanga. The for Commercial Forestry Research the rebranded Highveld Business Park, south-eastern Mpumalanga, but the heart of this Mpumalanga Economic and Development (MEGDP) (KZN University) and Nelson is now a thriving mixGrowth of engineering concerns, Path important industry is around Sabie in thethe east. The intends to expand the industrial base of the provincial economy, forestry Mandela University. manufacturers, distributors and commercial Mpumalanga sector is one of the most withenterprises a focus ontrading beneficiation, agri-processing value chain Forestry accounts for about in an established area withandimportant in the country: 11% of the total land area excellent infrastructure and logistics links. of Mpumalanga is8% covered either by plantations or development. of Mpumalanga’s gross forests. Large sugar operations are found When forestry managers, contractor and forestrynatural equipment domestic product. The sector in the south-east of the province. suppliers gather at the biannual Focus on Forestry conference in comprises logging, saw-milling, Geography The divide province wood has excellent roads andpulp railway White River in 2019, the theme will be “Bridging the digital product and and connections and is well served by airports, paper manufacture. Pulp and in the African forestry sector”. The Drakensberg escarpment divides airstripssector and heliports. Mpumalanga paper The areKruger the main exports, Sustainability is a key area for sharply companies in the the forestry at high altitude (Highveld) International Airport and Hoedspruit Airport are and western advancesgrasslands in the Internet of Things and AI are being keenly along with sawn lumber, wood and the subtropical component to the east, the the province’s two main airports. monitored for ways to enhance margins in an environmentally chips and wattle extract. Most Lowveld. The central region of the province The Maputo Development Corridor is a sawn timber in South Africa is sound way. is mountainous, with dramatic landscapes transportation corridor comprising road, rail, used the construction sector. The conference, which also looks at topics such as silviculture, presenting exciting vistas for visitors. The border posts, port and in terminal facilities, running Mpumalanga has the ideal fire management and forest engineering, alternates Lebombo Mountains rise in the east. frombetween Pretoria in Gauteng through Mpumalanga to climate and topography for Mpumalanga and KwaZulu-Natal and willregions be jointly The southern and northern Highveld theorganised Port of Maputo in Mozambique. The corridor produce large quantities of field crops such as supports high volumes of cross-border freight barley, soybeans, maize, grain and sorghum. services and aims to boost trade within and MPUMALANGA BUSINESS 2018/19 38 Potatoes also flourish in this area. beyond the region. Industry and tourism benefit Most of the province receives summer rainfall, from the concentration of resources and ease often via thunderstorms. Frost is common on the of transportation. This international initiative Highveld but is almost absent in the subtropical emphasises Mpumalanga’s excellent location as regions where fruit, nuts and citrus thrive. a logistics and transport hub.

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SECTOR INSIGHT

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MPUMALANGA BUSINESS 2019/20


South African investment incentives The South African government, particularly the Department of Trade and Industry, has a range of incentives available to investors, existing companies, entrepreneurs and co-operatives across many sectors.

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• Conceptualisation of the project –

outh Africa wishes to diversify its economy and incentives are an important part of the strategy to attract investors to the country. The Department of Trade and Industry (the dti) is the lead agency in the incentives programme, which aims to encourage local and foreign investment into targeted economic sectors, but the Industrial Development Corporation (IDC) is the most influential funder of projects across South Africa. There a variety of incentives available and these incentives can broadly be categorised according to the stage of project development: MPUMALANGA BUSINESS 2019/20

including feasibility studies and research and development (grants for R&D and feasibility studies, THRIP, Stp, etc) • Capital expenditure – involving the creation or expansion of the productive capacity of businesses (MCEP, EIP, CIP, FIG, etc) • Competitiveness enhancement – involving the introduction of efficiencies and whetting the competitive edge of established companies and commercial or industrial sectors (BBSDP, EMIA, CTCIP, etc)

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CONTINUING TO GROW THE WOMEN IN MINING At Exxaro, we pride ourselves in recognising that our strength lies with our people - including our female employees who are our greatest asset. We are steadfast in our quest to increase the inclusivity of women at all levels of our organisation, building on the 42% women representation on the Exxaro Resources Board and 33% females in top management.

www.exxaro.com


PROFILE • Some of the incentives are sector-specific, for example the Aquaculture Development and Enhancement Programme (ADEP), Clothing and Textile Competitiveness Improvement Programme (CTCIP) and the Tourism Support Programme (TSP).

• Co-operative Incentive Scheme, which is a 90:10

matching cash grant for registered primary co-operatives • Sector Specific Assistance Scheme, which is a reimbursable 80:20 cost-sharing grant that can be applied for by export councils, joint action groups and industry associations.

Manufacturing Incentives for SMMEs Key components of the incentive programme are the Manufacturing Incentive Programme (MIP) and the Manufacturing Competitiveness Enhancement Programme (MCEP). The initial MCEP, launched in 2012, was so successful that it was oversubscribed with almost 890 businesses receiving funding. A second phase of the programme was scheduled for launch in 2016. The grants are not handouts as the funding covers a maximum of 50% of the cost of the investment, with the remainder to be sourced elsewhere. The Enterprise Investment Programme (EIP) makes targeted grants to stimulate and promote investment, BEE and employment creation in the manufacturing and tourism sectors. Aimed at smaller companies, the maximum grant is R30-million. Specific tax deductions are permissible for larger companies investing in the manufacturing sector under Section 12i of the Income Tax Act.

Other incentives Other incentives available to investors and existing businesses in more than one sector include the: • Technology and Human Resources for Industry Programme (THRIP) • Support Programme for Industrial Innovation (SPII) • Black Business Supplier Development Programme (BBSDP), which is a cost-sharing grant offered to black-owned small enterprises • Critical Infrastructure Programme (CIP) that covers between 10% and 30% of the total development costs of qualifying infrastructure MPUMALANGABUSINESS BUSINESS2019/20 2019/20 MPUMALANGA

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A lot of emphasis is placed on the potential role of small, medium and micro enterprises in job creation and a number of incentives are designed to promote the growth of these businesses. These include: • Small Medium Enterprise Development Programme (SMEDP) • Isivande Women’s Fund • Seda Technology Programme (Stp). • Seda is the Small Enterprise Development Agency, an agency of the Department of Small Business Development that exists to promote SMMEs.

Trade-related incentives The Export Marketing and Investment Assistance (EMIA) Scheme includes support for local businesses that wish to market their businesses internationally to potential importers and investors. The scheme offers financial assistance to South Africans travelling or exhibiting abroad as well as for inbound potential buyers of South African goods.

ONLINE RESOURCES Department of Trade and Industry: www.thedti.gov.za Industrial Development Corporation: www.idc.co.za Mpumalanga Economic Growth Agency: www.mega.gov.za Official South African government incentive schemes: www.investmentincentives.co.za


PROFILE

Highveld Industrial Park Superb infrastructure on a well-located site is attracting tenants. provide a holistic rental solution to its clients; these range from high-end administration offices and conference rooms to heavy industrial workshops that contain overhead cranes with capacities of up to 250 tons. Sasol Gas supplies piped methane-rich gas through its distribution network directly to the Park, Air Liquide and Afrox operate their gas plants in the Industrial Park, which makes the setting for an industrial park even more advantageous. The Park receives a direct supply of water from the local municipal dam and undertakes its own purification on-site. The Eskom grid supplies the Park directly with 350MVA power, which allows the Park to function independently of the local municipality, thus not burdening its infrastructure but still supporting industry within the municipal boundaries.

s over space ustrial quare rty is uated

s are luding lime y and nance. ollowing the closure of Evraz Highveld Steel nd d unfurnished accommodation; also suitable for functions and

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and Vanadium Limited and the retrenchment of 1,700 employees in February 2016, Highveld ark? required a creative approach to save it from power stations being demolished and sold as scrap. Highveld 4 Industrial Park, as it is now known, was developed from on n the N12 the erstwhile steelworks and has been regenerated as he e N4 k a multi-purpose site for industry and commerce and is today home to a diverse group of enterprises, including es on site transport, manufacturing and engineering companies. Highveld Industrial Park started with only four tenants 2016 and has gone from strength to strength. In om the Eskomingrid 2019, it reached the 50-tenant mark, which was a ectly supplied August by Sasol site purification proud moment for the Industrial Park, given the position e services it was in less than four years ago. Highveld Industrial nd Laboratory support services Park’s tenants currently employ over 1,000 people es and boasts a wide variety of companies from various ontrol industries, including a dragline bucket refurbishment cal and Fire-fighting Fire company and rail siding operators which transport coal and ore from one of the largest private sidings owned ointment and view facilities available for rental. by Highveld, to Richards Bay and Maputo. Highveld Industrial Park: NOVO Energy recently launched a R130-million gas compression facility at the Industrial Park, which is the ialpark.co.za/ only one of its kind in Mpumalanga. Highveld Industrial ebook.com/highveldindustrialpark/ Park is also extremely proud of its ongoing and consistent support of SMMEs. By offering preferential rates to developing enterprises it has assisted in edin.com/company-beta/18156518/ edin.com/company shaping successful companies, ranging from recycling tube.com/channel/UCWXlGMO1n9UXYWDmnEGMsBA to fence installations. The park has a number of key assets that form the basis of its unique rental proposition that allows it to

Structural mill

Highveld Structural Mill is currently the jewel in the crown of Highveld Industrial Park. It is Africa’s only producer of heavy structural steel, as well as railway lines. The mill was officially relaunched in June 2017 after ArcelorMittal South Africa entered into a contract to supply blooms and slabs for the mill to roll into heavy structural steel. The contract was for a period of two years, with an option for ArcelorMittal to acquire the Structural Mill at the end of the period. On 31 July 2019, ArcelorMittal announced its intention to purchase the mill and a sale of business agreement was duly entered into, subject to certain conditions being met. This is a milestone, not only for Highveld Industrial Park, but for industry in South Africa, as it ensures that the country maintains its strategic steel manufacturing capability and supports jobs, while enabling export opportunities.

CONTACT DETAILS: Contact person: Andrea de Souza Physical address: Old Pretoria Road, Emalahleni,1035, South Africa Tel: +27 71 452 9678 Email: andrea@hipark.co.za Website: www.highveldindustrialpark.co.za

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2017/18 MPUMALANGA BUSINESS 2019/20


INTERVIEW

Building a robust economy in Mpumalanga Industrial Development Corporation Regional Manager Mashweu Matsiela explains how the IDC’s mandate helps to improve lives.

Mashweu Matsiela

BIOGRAPHY Mr Mashweu Matsiela has been the Regional Manager of the IDC’s Mpumalanga office since 2013. He is currently also the Acting Manager of the corporation’s Limpopo office. Having been awarded a British Council scholarship, Mr Matsiela pursued his tertiary education in Scotland where he obtained a BSc degree (Biological Sciences) from Stirling University. This was followed by an MBA qualification from the University of Pretoria, including a Graduate Diploma in Company Direction (GIMT). Mashweu also earned himself a distinction on the highly regarded Global Executive Development Programme (GIBS). MPUMALANGA BUSINESS 2019/20

What are the key goals of the IDC in Mpumalanga? In line with the IDC’s mandate, our goal is to provide financial and non-financial support to entrepreneurs, thereby creating jobs and empowering youth and women, as well as supporting black industrialists. What is your core business? On a daily basis, we screen and assess business plans for viability. Based on the economic merit thereof, the IDC can then decide on funding the project under consideration. The corporation provides funding in the form of loans, equity and guarantees, among others, to cater for the funding needs of start-ups, expansion of existing capacities as well as acquisitions. Our funding ranges from R1-million to R1-billion per project. The IDC also provides both pre- and post-investment business support as may be required for its clients, thereby ensuring that any gaps identified for the success of the funded entities are adequately addressed, thereby safeguarding the corporation’s investments. For example, if corporate governance within the funded entity is considered unacceptable, the IDC will, through its business support programme, ensure that appropriate interventions are implemented to address the gap as identified. Do you sometime hold equity for a long period? It depends on the strategic nature of the investment. These investments assist the IDC in fulfilling its developmental role where, for example, preference may be given to BEE parties at the time of disposal of shares in this regard, thereby enabling the corporation to achieve its empowerment and transformation agenda. Furthermore, dividends from these investments, along with interest income, contribute significantly towards the IDC’s internally generated funds. Do you fund projects when times are tough? Depending on the economic merit of the entity concerned, the IDC would provide funding because it is in our interest that these businesses remain viable and sustainable in the long run where they will

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INTERVIEW

continue to contribute meaningfully towards the success of the economy of South Africa through sustained employment opportunities, for example. In actual fact the IDC’s developmental role is more pronounced during tough economic conditions as the corporation is expected to play a countercyclical role in turning the economy around.

from these sectors which are expected to create a significant number of jobs, once implemented.

Where is the most growth coming from? Mainly from mining and manufacturing. Agriculture and tourism also present significant growth and transformation opportunities for the IDC as evidenced by the projects currently in our pipeline. We have seen a number of big projects coming forward

For further details contact IDC Mpumalanga Tel: +27 13 752 7724 Fax: +27 13 752 8139 Email: mashweum@idc.co.za Web: www.idc.co. za

Can you share with us some success stories? Some of the IDC’s success stories within Mpumalanga include F&K Hlakani Engineering which specialises in steel fabrication and engineering services. Through the IDC’s funding the company grew from humble What prompted the IDC to open a second office beginnings to become a key player that is highly in the province? regarded in the market. That decision was informed by the prevalence Another example of the IDC’s success in the provof economic activities in the “highveld” part of ince is Overlooked Colliery, a mining company which the province, mainly in Emalahleni and the sur- has also become a key player in the mining sector. rounding areas. Through this new office, which is The financial support assisted the BEE shareholder located in Emalahleni, the IDC would like to reach of Overlooked to buy the rest of the shares in the out to the rest of the province and thereby exploit company as well as to acquire another mine nearby. the business opportunities further afield in areas such as Mkhondo, Secunda, Ermelo, Delmas and Are there special provisions for women and Kwa-Mhlanga. young people in IDC programmes? Indeed, the IDC is committed towards youth and Which sectors are you supporting the most? women empowerment. The corporation has set The IDC provides funding across the various sectors itself specific targets in this regard where perthat fall under the corporation’s funding mandate, formance on these targets is measured accordeg tourism, mining, manufacturing and agriculture, ingly at the end of each financial year. Through all of which are some of the key economic sectors its Gro-E Youth Fund Scheme, the IDC provides within Mpumalanga. Please refer to the IDC website funding to youth-owned businesses at preferto see the sectors that the corporation supports. ential interest rates.

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MPUMALANGA BUSINESS 2019/20


SPECIAL FEATURE

Industrial parks and Special Economic Zones Dedicated zones and good rates are encouraging manufacturing.

A Forestry Industrial Technology Park at Sabie will increase the value derived from the province’s trees.

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outh African industrial planners are creating industrial parks and Special Economic Zones (SEZs) as a means to cluster together businesses that can benefit from proximity to one another and as a way to boost local manufacturing through incentives and tax rebates. The policy aims to attract new skills and develop new industries. Key goals behind the establishment of SEZs are: • to encourage industries to develop in clusters, leading to economies of scale, skills-sharing and easier access by suppliers • to create industrial infrastructure to promote investment • to promote cooperation between the public and private sectors • to use the zones as a launching pad for other developments.

Ebrahim Patel, Minister of Trade and Industry, meets trainees at the Highveld Industrial Park.

MPUMALANGA BUSINESS 2019/20 2017/18

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Apart from attracting foreign direct investment (FDI) and boosting employment, SEZs can also play a role in adding new sectors or sub-sectors to an economy. Various industrial parks (private or public) are pursuing similar goals. The emphasis in most of these initiatives is on beneficiation, mainly of minerals but also of agricultural products. South Africa’s most recent Industrial Policy Action Plan (IPAP) has a manufacturing focus, so beneficiation supports the diversification of the economy. A good example of the thinking on this subject is illustrated by the focus on forestry of the Mpumalanga Department of Economic Development and Tourism (DEDT). The department wants Mpumalanga to follow the example of Finland where every part of a tree is processed into products that have value. A memorandum of understanding signed by South Africa with Finland holds potential for Mpumalanga, as does the planned creation of a Forestry Industrial Technology Park at Sabie. DEDT has also asked the state forestry company, SAFCOL, to relocate its head offices to the province. SAFCOL is South Africa’s thirdlargest state-owned enterprise (SOE) and it had revenues in 2017/18 of R926-million.


FOCUS

Prime office and industrial space available Highveld Industrial Park offers unique variety in a prime location.

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ighveld Industrial Park has over 60,000m² of prime warehousing and workshop space available for rental, industrial workshops – from 420 to 3,500 square metres. Vacant property is also available for greenfield projects, situated on 650 hectares of prime land. The warehouses and workshops are suitable for diverse purposes, including steel fabrication, warehousing, heavy and light vehicle and machinery maintenance. Six office blocks offer furnished and unfurnished office space which are also suitable for functions and training.

• • •

Facilities: value-added services on-site • • • • • • •

Where is Highveld Industrial Park? • •

120km from Johannesburg on the N12 200km from Mbombela on the N4 Has an internal rail and road network.

Within 80km of eight Eskom power stations 90km from Pretoria via the N4

• •

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Diesel supply facility Electricity supplied directly from the Eskom grid Methane-rich natural gas directly supplied by Sasol Abundant raw water and on-site purification Round-the-clock maintenance services Specialised environmental and laboratory support services On-site rail siding Canteen and laundry facilities 24/7 security and access control Emergency services: medical and fire-fighting MPUMALANGA MPUMALANGA BUSINESS BUSINESS 2019/20


SPECIAL FEATURE Other technology parks in the pipeline are the Petro-Chemical Industrial Technology Park (Govan Mbeki Municipality), Mining and Metal Industrial Park (eMalahleni Municipality) and the Agricultural Industrial Park in Mbombela. A major government-led initiative in Mpumalanga is the Nkomazi SEZ which boasts geographic and logistical advantages and opportunities, given its proximity to the Mozambique border and the Mozambican port of Matola. Located in the town of Komatipoort, the SEZ will provide access to Mpumalanga’s neighbouring provinces Gauteng and Limpopo and the neighbouring states of Eswatini and Mozambique. An agri-hub within the SEZ will deal with the whole value chain from growing fruit through to processing, marketing and logistics. Having manufacturing facilities at the core of the hub will enable a variety of businesses to be established, both upstream (to supply the plant) and downstream (to deal with the products of the plant).

property was repurposed as an industrial park. Tenants have reacted enthusiastically to the new offering. The number of tenants grew by mid-2019 to over 40, having just topped 20 in early 2018. Tenants include a training centre funded by the Construction Sector Education and Training Authority (CETA), several engineering concerns and a mining equipment refurbishment company. The property’s developers were able to leverage all the advantages of the steel company’s site, which is well located in terms of its access to the industrial heartlands of two provinces, Mpumalanga and Gauteng. Two iron plants and a steel plant offer fully-equipped metallurgical and steel-making facilities, supported by environmental monitoring services and metallurgical and chemical laboratories. In addition, there are good rail and utility connections, water supply and purification facilities and a ready supply of gas from several sources. Sasol operates in Mpumalanga and supplies methane-rich natural gas, while industrial gas producers African Oxygen and Air Liquide both have plants on the premises. In 2019 Novo Energy opened a natural-gas compression facility within the park. Fed by the Sasol natural-gas pipeline, the plant operates all day, every day and supplies natural gas via its fleet of trucks to customers in a wide variety of sectors. Highveld Industrial Park has many types of workshops, storage areas and offices, together with canteens, parking areas, change rooms and a clinic.

Highveld Industrial Park An excellent example of a private initiative in the field of generating growth through the intelligent use of property is the Highveld Industrial Park in eMalahleni. Now a thriving industrial park, the site had been home to Evraz Highveld Steel and Vanadium. When that company went into business rescue the

MPUMALANGA BUSINESS 2019/20

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INTERVIEW

Diversity of tenants shows Highveld Industrial Park’s versatility CEO Johan Burger highlights the diverse range of services enjoyed by industrial and office tenants of Mpumalanga’s newest industrial park.

Johan Burger, CEO

Is there a clustering of enterprises taking place?

It was always the intention to create an Industrial Park that operates as a “one stop shop” where businesses are able to operate with ease and we are pleased to see these synergies developing between the tenants. The park offers a host of support services, some of which are offered by current tenants and others through inhouse expertise. This ranges from diesel supply, compressed natural gas supply, security services, onsite laboratory and environmental support services to emergency services.

with the high level of traffic and heavy operations including road infrastructure, on-site weighbridges, tipplers and cranes. The park is ideally situated in the heart of South Africa’s coal-producing region and within 80 kilometres of eight Eskom power stations. It is on the outskirts of eMalahleni situated next to the N4 highway and close to the N12. One of South Africa’s largest private sidings is directly linked to the Richards Bay and Maputo line and in the past two years coal, in excess of threemillion tons, has been moved through the site. What is your unique selling proposition? We are logistically well situated and able to provide the necessary support services to our clients on-site, which includes provision of security, maintenance and utilities. The current team are all ex-employees of Evraz Highveld and have specific skills, which range from environmental to engineering. We pride ourselves on the diverse nature of the businesses we have on-site and are able to accommodate with ease; no business is too big or too small. We have a number of facilities – ranging from offices to large heavy industrial workshops – and we can accommodate everything in between. How significant is the recent purchase by ArcelorMittal of Highveld Structural Mill?

This is a significant milestone as ArcelorMittal will be one of our anchor tenants at Highveld Industrial Park. However, this purchase is also important for the country as it secures a strategic steel manufacturing asset, which is the only one of its kind in Africa.

What are the logistical advantages the park enjoys?

Highveld Industrial Park has large-scale infrastructure to deal

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MPUMALANGA MPUMALANGA BUSINESS BUSINESS 2017/18 2019/20


Introducing the Mpumalanga Economic Regulator

Our approach

The Mpumalanga Economic Regulator (“MER”) is a newly established public entity, reporting to the Department of Economic Development and Tourism (“DEDT”) in Mpumalanga, charged with the mandate to provide for the regulation of the gambling and liquor industries in the Province and to provide for any other matters connected therewith.

We balance robust industry supervision to prevent and minimise harm associated with the abuse of alcohol and social impacts associated with problem gambling. This facilitates a regulatory environment which enables a diverse and vibrant industry and recognises the social and economic benefits around responsible industry development. We have leveraged on the gambling and liquor regulation to develop holistic approaches to these issues through enhancements in licensing, compliance, education and administration.

The entity was established on 16 October 2017, marking the beginning of a journey as a new provincial public entity, aiming to achieve a cohesive and streamlined approach to gambling and liquor regulation in the Mpumalanga Province. The establishment of the MER is a culmination of a merger between the Mpumalanga Gambling Board (“MGB”) and the Mpumalanga Liquor Authority (“MLA”).

We take a risk-based and intelligence led approach to ensure our resources are applied where the risk is greatest and to minimise the burden on responsible industry. We engage with stakeholders to appreciate current and emerging issues, to influence policy dialogue and to encourage positive compliance behaviours and best practice within the industries.


We are committed to ethical principles of honesty, transparency, integrity, non-discrimination, respect for human dignity, professionalism and accountability. We are accountable to our stakeholders for ensuring that the entity’s business is conducted in accordance with the highest standards of corporate governance, as well as ethical and moral behaviours.

SPECIAL FEATURE

We continuously monitor and review the regulatory environment for opportunities to improve regulatory efficiencies and effective enforcement of applicable legislation, as well as minimising harm caused by problem gambling and the abuse of alcohol. There are fundamental reforms on both the gambling and liquor regulation underway.

A snapshot of the regulatory environment in Mpumalanga •

Since 1994, South Africans have begun to enjoy newfound freedom to participate in all social spheres, including the age-old recreational activity, gambling. By legalising this form of entertainment, government ensured a decrease in criminality and clandestine behaviour that existed prior to the legislation of the sector.

Mpumalanga was the first province to establish a gambling regulator in South Africa, post the legalisation of gambling in 1994; and the first to introduce the legalised gambling in South Africa, i.e. casinos and limited payout machines (“LPMs”).

The MER and predecessor entities introduced various economic growth projects in the gambling industry; 3 licensed casinos and the fourth casino license which is still being considered, 2 route operators linked to 213 site operators, 8 bingo operators, 4 independent site operator licences, 37 betting outlets and 1 totalisator operator linked to 27 branches/agencies.

The industry acts as a catalyst to create a thriving urban hub around it, which includes malls, hotels and recreation facilities. Jobs are created, new enterprises emerge, and inevitably, other investors are attracted to the region. This type of symbiotic development of infrastructure works hand in hand with the tourism sector, contributing to the influx of visitors to a region.

Chief Executive Officer: Bheki Mlambo

In addition, industry operators are liable to pay levies and taxes, which contribute enormously to government’s social development commitments. The MER takes responsibility for ensuring that these finances are accurately tallied and collected.

On 01 April 2016, the MLA was de-linked from the DEDT, to become a stand-alone public entity, until the merger in October 2017. In terms of liquor licences, the entity and its predecessor entities has granted approximately 6000 liquor licences.

The entity is incredibly active in promoting the safe and responsible use of gambling and liquor as a form of entertainment. It’s no secret that gambling and liquor can become habit-forming and have the potential to affect not only families and their livelihoods, but the economy of a region negatively, which is something the MER takes very seriously.

It is the board’s mandate to adopt an honest and open policy when it comes to the potential negative side of these two industries, by educating people of all cultures and socio-economic backgrounds to gamble responsibly and drink responsibly.


ADVERTORIAL

SPECIAL FEATURE

Making it easier to do business with Nedbank Whole-view Business Banking™ Loderick Lubisi, Nedbank Provincial General Manager for Retail and Business Banking for Mpumalanga, explains how Nedbank can help business owners in the region.

on what’s most important to you – running your business,’ says Lubisi. In line with our new brand proposition encouraging clients to see money differently, our Mpumalanga agriteams are committed to providing key support, as well as advisory and business services to all roleplayers involved in the agrispace in both provinces. We will share our financial expertise and play a role in advancing profitable, sustainable practices throughout the agricultural production and consumption value chain. We recognise that farmers today face many challenges and that to remain competitive they continually have to improve and adopt best practices and new technologies.

There is good news for Mpumalanga business owners and entrepreneurs seeking a unique banking experience: Nedbank Business Banking has business managers, ‘We encourage you to see money differently with located across both provinces, specialising Whole-view Business Banking™’, says Lubisi. in commercial industries as well as the agricultural sector. ‘We are also involved in a number of initiatives with Lubisi says his team is ready to assist clients with professional advice, industry-specific solutions and a comprehensive range of financial products and services. ‘At Nedbank Business Banking we believe that you need a financial partner who not only understands your circumstances and aspirations, but also provides you with relevant solutions and a banking experience that is hassle-free. This allows you to concentrate

the public sector, ensuring that such partnerships support provincial government goals in respect of job creation and growing the economy,’ Lubisi concludes. Should you be interested in taking your business to the next level, please call Loderick Lubisi on +27 (0)13 759 4910, send an email to loderickl@nedbank.co.za or visit www.nedbank.co.za.

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ADVERTORIAL

Nedbank Business Bundle is a game changer with savings and personalised services for small enterprises

SPECIAL FEATURE

The new Business Bundle from Nedbank is a game changer for small enterprises in Mpumalanga, offering the best value for money when compared to rival offerings.

Trust us to protect your business against everyday risk

With the country’s challenging economic environment, the Business Bundle not only offers you personalised banking services, but also critical tools to save – with up to 40% savings on monthly banking fees – contributing directly to the bottomline at a time when every cent counts.

Stella Tedeschi, Regional Manager of Broker Channels for Mpumalanga, says Nedbank Insurance is not a one-size-fits-all business. Nedbank Insurance has evolved into a business that provides integrated insurance to individual and business clients. Our offering comprises comprehensive short-term insurance solutions, life insurance solutions and investments.

In line with Nedbank’s new brand proposition to see money differently, the Business Bundle resonates with the bank’s commitment to do good by promoting small enterprises.

Nedbank Insurance provides a comprehensive offering of short-term products on behalf of blue-chip insurers. Should you be interested in expert advice on the type of cover that is exactly right for your business needs, look no further.

‘As a bank for small businesses we are committed to partnering with entrepreneurs to help grow their businesses. As such, Nedbank is always looking at ways in which we can help unlock the value of our clients’ businesses. We support their business growth journeys by providing practical tools to help them run their businesses,’ says Loderick Lubisi, Nedbank Provincial General Manager, Retail and Business Banking for Mpumalanga.

Nedbank has a team of specialists ready to provide you with information necessary to allow you to make an informed decision. For more information call Stella Tedeschi on +27 (0)12 436 7659, send an email to stellat@nedbankinsurance.co.za, or visit www.nedbank.co.za.

‘Small businesses are the lifeblood of our economy. Nedbank has, over the years, instituted various interventions aimed at giving support to the smallbusiness sector.’ To see how Nedbank can help your small business reach its goals call Loderick Lubisi on +27 (0)13 759 4910, send an email to loderickl@nedbank.co.za or visit www.nedbank.co.za/business. 25

Nedbank Ltd Reg No 1951/000009/06. Authorised financial Nedbank Ltd Reg No 1951/000009/06 servicesservices and registered credit provider (NCRCP16). Authorised financial and registered credit provider (NCRCP16).


KEY SECTORS Overviews of the main economic sectors of Mpumalanga Agriculture 28 Forestry and paper

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Oil and gas

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Water 35 Mining 40 Manufacturing 44 Transport and logistics

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Tourism 48 Banking and financial services

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Development finance and SMME support

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Education and training

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Sasol’s operations at Secunda are among the most important manufacturing facilities in Mpumalanga province. Sasol Gas is one of the four Sasol operations at Secunda.


OVERVIEW

Agriculture and agri-processing A second agri-hub will be completed this year.

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mall-scale farmers and co-operatives are being given a chance to connect to the formal economy via agri-hubs which will also provide advice and equipment. An agri-hub at Mkhuhlu, east of Hazyview, has been established and another is set to be completed in 2019 at Mkhondo (Piet Retief). An International Fresh Produce Market is planned as a means of stimulating agricultural production, but the project has stalled. The new premier of the province has pledged that the first phase of the market’s top structure will begin in the 2019/20 financial year. The intention is that this facility will lead to increased volumes supplying domestic and international markets. Each of the province’s districts will have agri-hubs. The Department of Agriculture, Rural Development, Land and Environmental Affairs has set up Farmer Production Support Units in two municipalities, Bushbuckridge and Nkomazi. A feedlot has been built at Mzinti and a R20-million packhouse at Bushbuckridge. Other interventions include the re-commissioning of the Bushbuckridge poultry abattoir and support for soya and maize farmers to supply the Lekwa Oilseed Crushing Plant in Standerton. Existing programmes such as the Fortune 40 young farmers programme is to be strengthened with the addition of 35 new incubation farms. Big companies cultivate maize, sugar, timber, vegetables, fruit and tea on a large scale in the province and are active in the raising of poultry and cattle. Large commercial farmers account MPUMALANGA BUSINESS 2019/20

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SECTOR INSIGHT Astral Foods in Standerton has more than 2 400 employees. for the bulk of crop and livestock production. Astral Foods runs a poultry processing plant in Standerton which has 2 425 employees with a further 900 people further down the agricultural value chain dependent on the facility. Agriculture is responsible for about 3.4% of Mpumalanga’s Gross Domestic Product (GDP). Fruits, nuts and vegetables are major contributors to the provincial and national export basket and there is still scope for expansion in this sector, both in terms of lands planted and in terms of downstream beneficiation.


OVERVIEW

two of which have refining capacity, and employs about 4 700 people. More than 1 400 Macadamia nuts have grown in popularity exponentially in recent years. farmers (commercial and smallAbout 4 000 hectares of new trees is added each year across South Africa, scale) deliver sugar cane to the with most of that in Mpumalanga and neighbouring Limpopo. The vast company. TSB brands are Selati majority of the nuts are exported, with about 40% going to China. (sugar) and Molatek (animal feed). There are about 450 farmers growing the nuts and there are 14 cracking factories in South Africa. The sector employs about 4 500 people, of which 1 500 are permanent employees. Barberton and Hazyview are two prime Companies areas for the nut. Mpumalanga produces one-million tons of maize from 291 788ha. About Fresh fruit and nut supplier Halls 53 000 tons of wheat and 33 000 tons of sorghum are produced annually. cultivates 375ha of its own land Soya bean is another major crop: more than half of South Africa’s soya bean and has another 1 400ha under crop is produced in Mpumalanga’s Highveld areas. management. Its crops include Mpumalanga accounts for about 21% of South Africa’s citrus production avocados and litchis. and a third of its export volumes, with Valencia’s being the province’s most Westfalia is a diversified popular varietal and Nelspruit being the centre of the sector. agricultural group which runs Avocados, litchis, mangoes and bananas thrive in the province. Hazyview extensive operations in the is an important source of bananas, with 20% of South Africa’s production province. The group’s South originating there. African operations regularly sell Deciduous fruits are cultivated in smaller quantities. About 15 000 tons more than five-million cartons of of table grapes are produced in the province annually and Mpumalanga avocados (50% of the country’s produces its own wine. export volume) and sevenA specialist fruit that does well in the province is the marula. The marula million cartons of mangoes. fruit makes a popular beer and is used in the production of a liqueur that Umbhaba Estates is one of the has done well on the international market. biggest banana growers in the Cotton is grown mostly under dryland conditions in Marble Hall. The province. province has 1 500ha of dryland under cotton. Much of South Africa’s total The drier Highveld region annual production of about 34-million kilograms of tobacco, especially with its cold winters supports Virginia tobacco, takes place in the north-western parts of Mpumalanga, and crops such as cereals, legumes in neighbouring Limpopo. Other crops produced for export in Mpumalanga and nuts. There is extensive include cut flowers, pot plants and nursery plants. irrigation in the Loskop Dam Mpumalanga has the second-biggest sugar industry in South Africa, area. Ermelo is one of South after KwaZulu-Natal. TSB Sugar runs three mills in the Lowveld region, Africa’s main centres of sheep farming and wool production. Subtropical fruit flourishes in ONLINE RESOURCES the Lowveld with the town of Citrus Growers Association: www.cga.co.za Nelspruit being a major citrus Fresh Produce Exporters’ Forum: www.fpef.co.za producer. Mixed farming and Macadamias South Africa: www.samac.org.za potatoes, sweet potatoes and South African Cane Growers’ Association: beans are mostly found in the www.sacanegrowers.co.za southern and western parts of South African Subtropical Growers’ Association: the province. www.subtrop.net

Crops

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MPUMALANGA BUSINESS 2019/20


OVERVIEW

Forestry and paper Sawmills are generating energy.

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ustainability is the modern watchword but finding a way to use resources for people is also popular. The MTO Group, which has 39 900ha of plantation under management in the Lowveld, teamed up in 2018 with mountain-bike enthusiasts of White River and Nelspruit to develop a set of trails through the hilly landscape of the area. One of the biggest operations in the forestry and paper sector in Mpumalanga is Sappi’s Ngodwana mill. The mill produces 330 000 tons of paper pulp for its own consumption, 250 000 tons of dissolving wood pulp (DWP) and 380 000 tons of paper (newsprint and kraft linerboard used for packaging) annually. Exports account for 70% of the mill’s product. Ongoing investment at Ngodwana Mill will contribute R13billion to the provincial economy over 20 years. Sappi’s other large facility in the province, the Lomati Sawmill in Barberton, produces kiln-dried Southern African pine lumber from sawlogs supplied by Sappi Forests. The mill generates its own energy through co-generation (steam and electricity from renewable and other sources). In 2017 Sappi built a sugar extraction demonstration plant at Ngodwana. Findings from the experiment will help to improve the process of extracting bio-renewable chemicals. Sappi is partnering with Valmet, a Finnish company. Other forestry companies are looking into energy generation, including AFCOL. Mpumalanga has 40% of South Africa’s forestry resources. This fact presents an opportunity to exploit the sector’s byproducts in the biomass-to-energy field. The Zebra Pellets plant in Sabie is to be converted by national utility Eskom into a torrefied pellet plant. The wood will be provided to the plant (owned by the Industrial Development Corporation) and then heated without the use of oxygen (torrified) which creates a coal-like product without the carbon. MPUMALANGA BUSINESS 2019/20

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SECTOR INSIGHT The MTO Group plants 18 trees every minute. Forestry accounts for about 8% of Mpumalanga’s gross domestic product. The sector comprises logging, saw-milling, wood product and pulp and paper manufacture. Pulp and paper are the main exports, along with sawn lumber, wood chips and wattle extract. Most sawn timber in South Africa is used in the construction sector. Mpumalanga has the ideal climate and topography for forests. Sabie and Graskop represent the hub of the industry, but commercial forests are also found to the east and south along the Swaziland border. About 11% of the land mass is forested, with 4% of that being natural forest. The province is the national leader in total hectares under forest (514 000ha) and in export earnings. Plans to develop an Agriculture and Fores tr y


OVERVIEW

Technology Park are being drawn up by the Provincial Government of Mpumalanga. The Mpumalanga Economic Growth and Development Path (MEGDP) intends to expand the industrial base of the provincial economy, with a focus on beneficiation, agri-processing and value chain development. When forestry managers, contractor and forestry equipment suppliers gathered at the biannual Focus on Forestry conference in White River in 2019, the theme was “Bridging the digital divide in the African forestry sector”. Sustainability is a key area for companies in the forestry sector and advances in the Internet of things and AI are being keenly monitored for ways to enhance margins in an environmentally sound way. York Timbers owns and operates five processing plants, including the including the largest sawmill and plywood plants in South Africa and it has 60 470 planted hectares. The company is considering investing in biomass energy generation. The Industrial Development Corporation (IDC) has a stake in York Timbers and a 42.6% share in Hans Merensky Holdings, a company with timber and processing interests in three provinces. Merensky is responsible for 20% of South Africa’s sawn pine lumber. The Mondi Group has extensive forestry holdings in the province and has been working on introducing a higher degree of mechanisation in its operations. Mondi has also instituted an ecosystem management

ONLINE RESOURCES Forestry South Africa: www.forestry.co.za Institute for Commercial Forestry Research: www.icfr.ukzn.ac.za South African Institute of Forestry: www.saif.org.za Technical Association of the Pulp and Paper Industry of South Africa: www.tappsa.co.za

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plan throughout its forestry operations with the intention of better managing the impact its work has on the environment. Although local demand is dwindling, the export market for pulp and paper is strong. Pulp production figures have been on the rise for several years and companies like Mondi are increasingly focusing on pulp export because of better margins. PG Bison has a board plant in Piet Retief. Sonae Rauco runs large plants at White River and Panbult. 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). Asset management company Global Environment Fund created Imvelo Forests and in 2015 the company investigated using thermal imaging to detect fires. Among the other private timber growers in the province are Pull Scar Timber Co, and United Forest Products. MPUMALANGA BUSINESS 2019/20


OVERVIEW

SECTOR INSIGHT

ONLINE RESOURCES

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OVERVIEW

Oil and gas Sasol is a world leader in liquid fuels.

SECTOR INSIGHT A biomass project has started at Sappi’s Ngodwana mill.

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nternational chemicals and energy company Sasol has several large plants in Mpumalanga and plays a major role in the economy of Mpumalanga. 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. Sasol will be a key player when national government finalises policy on biofuels. Statutory minimums for biodiesel in diesel and bioethanol in ethanol will give certainty to producers and boost production levels. Sasol is already making 285 000kl of absolute alcohol in ethanol from sugar fermentation annually. About 60-million litres of liquid fuel is produced each day at the coal-to-liquid plant run at Secunda. Sasol has finished its mine replacement programme and feedstock is secure until the year 2050. There is increased interest in gas as a source of energy in South Africa although the country currently only has one gasto-liquids plant.

ONLINE RESOURCES

ONLINE RESOURCES

Independent Power Producers Programme: www.ipp-projects.co.za Petroleum Agency SA: www.petroleumagency.co.za PetroSA: www.petrosa.co.za

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Much of the large gas resource of Mozambique is piped to the industrial heartland of South Africa and the promoters of the SECTOR INSIGHT Nkomazi Special Economic Zone believe that the fact that a natural gas pipeline passes through the SEZ is a big selling point. The Liquefied Natural Gas Independent Power Producer Procurement Programme (LNG IPPPP) is part of the broader programme of the National Department of Energy which encourages private investment in renewable energy, namely the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The total allocated to gas-to-power in the national power plan is 3 726MW, of which 3 000MW is for LNG. Another part of the REIPPPP is alternative sources such as the conversion of biomass to energy. At Sappi’s Ngodwana mill, a 25MW project is underway. Tr ansn e t Pip e lin e s r uns a 3 800km network of underground, high-pressure petroleum and gas pipelines throughout the eastern parts of South Africa. The company’s sophisticated multi-product pipeline (NMPP) between the coast and Gauteng transports a range of liquid products.


OVERVIEW

Water A new dam is to be built on the Crocodile River.

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apid growth in the Ehlanzeni District Municipality has led the Provincial Government of Mpumalanga to decide to build a new dam on the Crocodile River in the City of Mbombela. Citizens of the Thembisile Hani Municipality will get more immediate relief from water shortages with the construction of a treatment plant on the Moses River. Acting on a disturbing report published by the Centre for Environmental Rights on the way some mining companies are using water, a provincial Environmental Management Committee has been appointed to conduct environmental impact analysis and assess climate change threats. NuWater was contracted to reduce waste at the water treatment plant for Emalahleni Municipality. An ultra-filtration technology was used to reduce waste from 20Ml/day. A total of 327 water infrastructure projects benefiting 350 259 households have been completed, with a further 165 sanitation projects finalised. A bulk water supply system connecting villages within the Bushbuckridge area has been completed. National government has subsequently disbanded the Bushbuckridge Water Board and Rand Water has taken over its operations. A joint project with Eskom related to rain-water harvesting will also create jobs. The Siyasebenza Job Creation Initiative is intended to create 900 jobs in the Nkangala District Municipality. The Komati Basin Water Authority (KOBWA) is an important agency

ONLINE RESOURCES De Hoop Dam: www.dhcw.co.za Inkomati-Usuthu Catchment Management Agency: www.iucma.co.za Komati Basin Water Authority: www.kobwa.co.za National Department of Water and Sanitation: www.dws.gov.za

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SECTOR INSIGHT An Environmental Management Committee has been established. in controlling water resources in the region. Formed out of a cooperation agreement between South African and Swaziland, the agency has built two large dams and is responsible for their upkeep. The Imkomati-Usuthu Catchment Management Agency covers Mpumalanga, parts of Limpopo and part of the Kingdom of Swaziland and is responsible for water usage issues relating to the following river catchment areas: Sabie-Sand, Crocodile, Komati, Nwaswitsontso and Nwanedzi. T h e D e H o o p D a m is t h e centrepiece in the large Olifants River Water Resource Development Project (ORWRDP) which is transforming the water environment for industrial, commercial and private users. As the catchment area for this huge scheme is to the north of Mpumalanga, the spinoff effect on the province is significant.

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FOCUS

Driekoppies Dam is the perfect event venue The Komati Basin Water Authority makes the dam available for events, sports tournaments and recreational use.

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he stunning beauty of the Driekoppies Dam and its surrounds has made it possible for the Komati Basin Water Authority (KOBWA) to convert the dam into a suitable site for commercial and private recreational use. This means that at a very low fee, the public can explore and discover the scenic beauty and entertainment attractions of the Driekoppies Dam. In order to make the information about KOBWA’s trans-boundary nature more appealing, KOBWA uses the edutainment approach by hosting educational tours around the dam and sports tournaments. MPUMALANGA BUSINESS 2019/20

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Here, people can be educated about KOBWA in a relaxed, enabling environment and this is accommodated at the Driekoppies Dam. The Driekoppies Dam is a popular venue for music shows and private events such as picnics, braais, family fun days, baby showers, and weddings. This is


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because of its spacious entertainment area which overlooks the exquisite dam. Regulars are young entrepreneurs from areas surrounding the dam who host Sunday Sessions and the Food Market. It also offers a venue for traditional authorities wishing to host cultural activities and traditional meetings. Bike rallies and fishing tournaments by various associations are also held at the dam. KOBWA puts safety at the forefront of all planning. There is an implementable Emergency Preparedness Plan that involves every segment of society, from government agencies to traditional authorities at community level. This ensures that entertaining at the dam is not a risk. The Driekoppies Dam is readily available for young people who live in the Nkomazi area as a way to promote entrepreneurship among young people. With so many interesting things to do, especially on weekends, the Driekoppies Dam is the perfect destination for any event.

Africa (1993 to 1998) and Maguga Dam in Eswatini (1998 to 2003). The two dams were constructed mainly to provide assurance of water supply to the irrigators in both member states. Tourism is one of the spinoffs of the development of the Driekoppies and Maguga dams. There has been an increase in recreational activities in both dams.

About KOBWA The Komati Basin Water Authority (KOBWA) is a bi-national company formed in 1992 through the Treaty of the Development and Utilisation of the Water Resources of the Komati River Basin. The treaty was signed by the Government of the Kingdom of Eswatini and the Government of the Republic of South Africa. The authority was tasked with designing, constructing, operating and maintaining two dams and associated infrastructure. This resulted in the construction of Driekoppies Dam in Schoemansdal South

CONTACT DETAILS Physical address: Komati Basin Water Authority Driekoppies Dam Tel: +27 13 781 0317/8/9 Fax: +27 13 781 0320 Email: driekoppies.office@kobwa.co.za Website: www.kobwa.co.za

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Water Quality Testing Laboratory sets high standards The Gert Sibande District Municipality’s Water Quality Testing Laboratory is the only SANAS-accredited government-owned facility in Mpumalanga Province.

Technicians from GSDM Water Quality Testing Laboratory during an awareness programme to schools.

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he Water Quality Testing Laboratory is situated on the N17 corridor in Ermelo. This location is bounded by the Ekurhuleni Metro of the Gauteng Province to the west, Sedibeng District Municipality of the Northern Free State to the south-west, Ehlanzeni District Municipality to the north-east, Nkangala District Municipality to the north, Amajuba District Municipality to the south-east and eSwatini to the east. The District Municipality’s Water Quality Testing Laboratory is the only SANAS-accredited, government-owned facility in Mpumalanga Province and is evidence of Gert Sibande District Municipality’s vision to be “A community-driven district of excellence and development”. This is also in line with the National Development Plan (NDP) vision 2030 which is “To ensure that all South Africans have access to clean running water in their homes”. The Water Quality Laboratory is an accredited MPUMALANGA BUSINESS 2019/20

facility meeting the requirements of the ISO/ IEC 17025:2005. The centrality and the strategic location of this facility ensures easy accessibility by all stakeholders within the district and the neighbouring districts.

Services Informed by the need to improve water quality in the district, the laboratory was established in 2011 to guarantee safe drinking water provided to millions of citizens within the district according to section 9 (1) of the Water Services Act No. 108 of 1997. The facility provides chemical analysis, microbiological analysis and physical analysis. These services are available to all stakeholders and customers, including local municipalities and industries. The price list for water quality testing offered is available on request.

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In addition, the Gert Sibande Water Quality Testing Laboratory promotes water quality and care for water in communities through active involvement in awareness programmes offered by local municipalities in the district. It also promotes careers in science by providing opportunities to students in the form of in-service training. The laboratory boasts the provision and delivery of superior laboratory services and aims to promote and support development and culture of scientific learning. The Gert Sibande Laboratory regards its clients as valuable stakeholders whose interests are a priority for the laboratory. Office hours Monday to Thursday: 07h30 to 13h00, 13h30 to 16h30 Friday: 07h30 to 14h00

Accredited Water Quality Testing Laboratory situated in Ermelo, Mpumalanga.

CONTACT DETAILS Physical address: Cnr N17 Bethal and Nespan Roads, Cassim Park Postal address: PO Box 1748, Ermelo 2350 Tel: +27 17 801 7143 Email: laboratoryservices@gsibande.gov.za Website: www.gsibande.gov.za Facebook: @gertsibandedm Twitter: @GertSibandeDM Coordinates: S26 31’ 25.73” E29 58’ 19.25

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OVERVIEW

Mining Sasol’s R5.6-billion Impumelelo Colliery is producing coal.

SECTOR INSIGHT Mineworkers at Arnot mine have become majority shareholders.

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fter Exxaro Coal Mpumalanga’s transfer of its 50% stake in the Arnot coal mine to mineworkers at no cost, the workers received a further 5% “free-carry” because of the specifications of Mining Charter III. The mine thus becomes South Africa’s first majority worker-owned mine. Wescoal is the other shareholder and operator of the mine. Wescoal’s profits doubled in 2018 to R202-million, proof that the coal miner’s acquisition and expansion strategy is paying off. The company, which runs three mines and four processing plants in Mpumalanga, has a resource base of about 300Mt. Although renewable energy is catching on in South Africa, there is no prospect of Mpumalanga’s coal-fired power stations being mothballed soon. Nkomati Anthracite has been revived after an investment from Unicorn Capital Partners, formerly Sentula Mining. The mine, which is in the south-eastern corner of the province, has proven resources of 8.7-million tons and upwards of 400 jobs were created over the last two years. Local communities have a 16.1% stake in the relaunched mine MPUMALANGA BUSINESS 2019/20

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and the Mpumalanga Economic Growth Agency (MEGA) holds 34%. Coal giant Exxaro, which runs five mines in the province, has committed R3.8-billion to its Belfast project, an investment that will create 1 160 jobs and have an impact on the GDP (over the life of the mine) of R39-billion. Exxaro is also extending the life of its Leeuwpan Mine by another 10 years. Mpumalanga accounts for 83% of South Africa’s coal production and is the third-largest coalexporting region in the world. The opening in April 2019 of Sasol’s Impumelelo Colliery south-west of Secunda was the final phase of an investment in new coal mines to replace three coal mines that had reached the end of their lives. Sasol produces 40-million tons of coal annually. Impumelelo, which will produce 8.5-million tons per year, cost R5.6-billion to build. Anglo American has sold its thermal coal operations to Seriti, which is therefore the secondlargest provider of thermal coal to Eskom, supplying almost a quarter of the utility’s annual coal requirements.


OVERVIEW State coal company AEMFC (African Exploration Mining & Finance Corporation) runs a colliery at Vlakfontein near Ogies and is planning to develop other projects. South32 has four collieries and three processing plants in the province. The company has 4 860 full-time employees and 4 400 contractors. ArmCoal is a black-owned coal company that arose out of a deal between Xstrata Coal SA and African Rainbow Minerals Limited (51%). ArmCoal was the vehicle used in the creation of the large open-cut thermal coal mine at Goedgevonden.

Contribution to regional economy Mining’s contribution to provincial GDP is 25.9% of GDP and the sector employs 53 000 people. Most of the province’s mining companies are involved in training. The Colliery Training College (CTC) in Emalahleni is owned by a consortium of companies: Exxaro, Glencore, Kanga Coal, South32 and Izimbiwa Coal. Historically the centre was for mining only, but now it offers a broad range of artisan training, including auto electrician, fitting and turning and millwrights. CTC has been recognised as a leader in artisan training by the National Skills Authority. Coal, platinum, gold and nickel are the province’s major mineral resources and all are still in demand, even if coal and platinum have experienced roller-coaster price fluctuations. South Africa produces 75% of the world’s platinum, 80% of its manganese, 73% of its chrome and 45% of its vanadium. Deposits of chromite, magnetite and vanadium are the basis of the ferro-alloy complex in Witbank-Middelburg (in the District Municipality of Nkangala) and Lydenburg (Mashishing). Nkomati Mine is South Africa’s only pure-nickel operation. The province’s coalfields are in the south and west of the province. Stillwater Sibanye is the new owner of the Burnstone gold mine near Balfour. Stonewall Resources runs the TGME Project, near the towns of Pilgrims Rest and Sabie. Stonewall has ambitious targets of going beyond production of 40 000 ounces from this and other historic mines in the area.

ONLINE RESOURCES Colliery Training College: www.ctctraining.org Minerals Council South Africa: www.mineralscouncil.org.za National Department of Mineral Resources and Energy: www.dmr.gov.za South African Institute of Mining and Metallurgy: www.saimm.co.za

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Having taken full control of its Barberton mines, Pan African improved its BEE position (Shanduka Gold is a 23.8% shareholder) and set about increasing its annual gold output to 100 000 ounces. Platinum is an important mineral for the modern economy. Two Rivers is a joint venture between Implats (46%) and African Rainbow Minerals. The operation is on the southern part of the eastern limb of the Bushveld Igneous Complex, south-west of Burgersfort. Northam Platinum, which has assets on both limbs of the Bushveld Igneous Complex, has purchased the Everest mine from Aquarius Platinum. Everest is adjacent to Northam’s existing Booysendal mine. Jubilee Platinum has sold its Smelting and Refining business in Middelburg to Siyanda Resources for R110.5-million. Sylvania Platinum now has seven PGM recovery plants that extract chrome from tailings on both sides of the Bushveld Igneous Complex. Lydenburg is home to the Lion ferrochrome smelter that is a joint venture between Glencore and Merafe Resources. Assmang, the joint venture between ARM Ferrous and the JSE-listed Assore, operates a chrome mine (Dwarsrivier) and a ferrochrome plant where chrome alloys are made. The Manganese Metal Company (MMC) in Nelspruit is the largest producer of pure electrolytic manganese in the world. MMC is owned by Samancor (51%) and Bilston Investments owns the balance. MPUMALANGA BUSINESS 2019/20


INTERVIEW

Fast making strides in mining Mpumalanga Business spoke with two trailblazing miners who work at Exxaro’s Leeuwpan Coal Mine, Johanne Struwig and Bontle Mtshengu. Plant Manager Struwig was a finalist in the Top Young Achiever of the Year category of the 2019 Standard Bank Top Women of the Year awards, while Engineering Manager Mtshengu won the award in the category, Top Gender Empowered Organisation: Resources. How did you choose mining as a career?

Bontle Mtshengu

BM: Born in a rural small village called Cassel in the Northern Cape, my mother was a teacher in a primary school and my dad a truck operator in one of the mines. I found myself in a boarding school 700km away from home and coincidentally landed in a class with technical subjects in Grade 9. I fell in love with subjects like technical drawing and electricity. Mining became a natural choice when I was given an opportunity to do in-service training in one of the mining houses and thereafter received a bursary. JS: I think the mining industry chose me. I initially studied in the chemistry field. After I got a bursary from Exxaro, I started to work in mining and fell in love with operations and the culture. When did you know this was a good choice?

BIOGRAPHY Bontle’s 18-year journey in mining has encompassed iron ore, minerals sands, gold, platinum and now coal. Her promotion in 2017 to Engineering Manager, where she now leads a team of more than 200, made her the first female to hold that post in Exxaro. She started her career as a mechanical technician and worked her way up to become an engineer. She has a Government Certificate of Competency (GCC) mines and works, and a diploma in mechanical engineering and is studying for a BTech. MPUMALANGA BUSINESS 2019/20

BM: I eventually got exposed to maintenance management environment and truly fell in love with that. The training I received was remarkable. When I acquired the government certificate of competency (GCC) is when I knew I had made a good choice: having that legal appointment and seeing one’s contribution to the industry is the most satisfying feeling. JS: On Leeuwpan mine, I have had the opportunity to be involved in value chain operations from a technical point of view as well as business. I fell in love with the adrenaline of operations, the pride of mobilising people and overcoming a very challenging environment. Did you encounter obstacles on your mining career path?

BM: Most women were recruited into positions and left there to fend for themselves. Basic needs like sanitary facilities, personal protective equipment (PPE) and safety underground were not available for women. Men were not made ready for this change. It was a shock to everyone. JS: I was privileged that Leeuwpan created a positive environment for my development. I had to learn through tough mistakes how to develop emotional intelligence. I started out trying to conform and it was only after I showed my own identity and being OK with that, that I really flourished.

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INTERVIEW What has helped you the most along the way?

BM: Ensuring that I’m competent at what I do, always asking questions and continuously learning new things. Certain people I met along the way, currently my two leaders (Mangaliso Sethethi and Baltimore Miles) and my mentor (Hemuna Bhola) have been playing a vital role in my development. JS: The most important building block of my career was mentoring. Through these mentoring relationships I found my rhythm allowing me to dance to beat of my own drum. How did you feel to be nominated for the awards?

Johanne Struwig

BM: This was a very humbling experience; this award means a lot for me. It means my contribution is recognised. However, this also comes with a vast responsibility to pave a way for young upcoming women to ensure they don’t go through the same experience I went through. JS: It was probably one of the proudest moments of my life. I am truly humbled and want to thank Mangaliso Sethethi (LPN BU manager) for believing in me and making me believe in myself. Is the current mining environment better for women?

BIOGRAPHY With a Bachelor’s degree in Chemical Engineering, Johanne was the first women (and youngest) Plant Manager to be appointed by Exxaro Resources at the Leeuwpan Coal operation. With a speciality in mineral processing, she also has diplomas in management and training in risk management. She previously worked as a metallurgical engineer and has been applying metallurgical principles to optimise coal beneficiation strategies. As a leader, Johanne has always built solid relationships with internal and external stakeholders.

BM: The industry has made significant strides in executing transformation and promoting gender. A gap still exists in converting women in technical positions to senior and board management levels. More work must be done to create a space that is more accommodating to everyone, a space where diversity is embraced and a place where our differences make us strong. JS: I suppose it is. Over the past 10 years, women went from being tolerated to being accepted and even respected. Women are not appointed for the sake of statistics but as decision-makers and change-drivers in core positions. However, the way women approach the mining environment has also evolved. Women are more confident, which allows them to really show their competence. LPN specifically has also embraced diversity to the fullest and proved the value it adds to a business. What should be prioritised to empower women?

BM: Companies need to develop clear strategies that focus on development and empowerment of women within businesses. This could include retention, fast-tracking programmes and executive mentorship programmes. Women also need to embrace the challenge and use the opportunity to empower themselves and others. JS: Growing and making a difference in the mining industry requires confidence, it requires women to be authentic. It requires us to be strong under pressure. It also requires us to remain women because that is what makes all the difference. As female leaders we have the responsibility to teach this to every lady that wants to make it in this industry through mentoring and coaching.

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OVERVIEW

Manufacturing Government wants to promote township and rural manufacturing.

SECTOR INSIGHT FLSmidth has doubled the size of its Delmas facility.

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pumalanga has a diverse manufacturing sector. The Lowveld area supports food and beverage enterprises and timber processing. 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 plant, RCL 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. TSB Sugar runs two large mills and produces fruit juices through a subsidiary company. Nelspruit is the centre of the province’s foodprocessing cluster. The presence of Ferrometals (a Samancor company) in Emalahleni means that Mpumalanga is an important place for metals and machinery manufacturing. It produces charge chrome and is one of the largest ferrochome plants in the world. Joint ventures such as Crometals (Pty) Ltd, Poschrome (Pty) Ltd and Elkem Ferroveld operate from the site. Most manufacturing in the province takes place in the Highveld where there is access to chrome, steel and coal. In the course of an upgrade, FLSmidth has also doubled the size of its MPUMALANGA BUSINESS 2019/20

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Delmas Supercentre to 10 500m². The company makes equipment for materials handling and mineral processing. The centre also hosts a training facility and handles repairs for customers. In Middelburg, Thos Begbie makes a variety of products at its heavy engineering works. Graphite Freezeline Solutions opened a new graphite facility within the Begbie property in 2018. Thos Begbie has announced an expansion into Zambia, where it will service and repair furnace components. Middelburg-based Columbus Stainless is a major supplier of stainless-steel products to the domestic and international market. About 25% of the company’s production is sold domestically. 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. The chemicals and liquid fluids complex of Sasol at Secunda is a vital component of


OVERVIEW

Mpumalanga’s manufacturing sector. The company has two propylene manufacturing plants and recently completed two major investments aimed at improving flows and expanding production. Propylene is an input for polypropylene which is used in packaging, automotive components and textiles. The market is growing in South Africa at 4% per annum, roughly the same rate as the global market. A large agri-processing fruit hub is planned for the province. Located in the Nkomazi Special Economic Zone, the proposed hub, with an estimated value of R10-billion, would deal with the whole value chain from growing fruit through to processing, marketing and logistics. Having manufacturing facilities at the core of the hub will enable a variety of businesses to be established, both upstream (to supply the plant) and downstream (to deal with the products of the plant). Creative thinking kicked in when Highveld Steel’s troubles reached the tipping point in 2015. Aside from the business rescue process, which has allowed some production to restart, there is some irony in the that fact that the 1 000ha property has been repurposed as a multi-purpose site for industry and commerce. Called the Highveld Industrial Park, this project has had the effect of promoting a diversity of manufacturing enterprises, something which has been a priority for economic planners for many years. Stockpiles of coal and vanadium are being sold off, but two iron plants and a steel plant offer fully-equipped metallurgical and steelmaking facilities, supported by environmental monitoring services and metallurgical and chemical laboratories. The structural mill of Evraz Highveld Steel in Witbank was officially relaunched in June 2017 after ArcelorMittal South Africa signed a contract to supply blooms and slabs for the mill to make into heavy structural steel. Evraz Highveld went into business rescue in 2015. ArcelorMittal has now exercised its right to purchase the mill outright.

Future plans The provincial government has declared that it is determined “to turn Mpumalanga into a manufacturing hub for South Africa and the rest of the continent”. To that end, partnerships with Russia, China and Italy have been established to improve local knowledge of technology and

to become globally competitive. This strategy could be said to have paid off when it was announced that Minsk Tractor Works is to establish an assembly plant in the province. Belarus and Oman are two of the other countries with which Mpumalanga is engaged with. A key objective of the provincial government’s Mpumalanga Economic Grow th and Development Path (MEGDP) is to expand the industrial base of the provincial economy. To do this, policy-makers are focusing on beneficiation, agriprocessing and value chain development. Samancor Chrome (which runs Ferrometals) is the secondlargest ferrochrome producer in the world with three plants, two of which are in Mpumalanga: eMalahleni (Witbank) and Middelburg. A Social Enterprise Development Programme has been designed by the Provincial Government of Mpumalanga to help township and rural manufacturing businesses grow in the steel fabrication sector. This will include finished products such as door frames, window frames and concrete products like paving bricks, building bricks and blocks.

ONLINE RESOURCES Highveld Industrial Park: www.highveldindustrialpark.co.za Mpumalanga Economic Growth Agency: www.mega.gov.za South African Iron and Steel Institute: www.saisi.co.za

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OVERVIEW

Transport and logistics The first phase of the Moloto Corridor is nearly complete.

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new flight has been added to SA Airlink’s connections between Mpumalanga and Cape Town. In addition to the regular early-morning flights out of Nelspruit Kruger Mpumalanga International Airport (KMIA) with a lateafternoon return flight, an early-morning Saturday flight has been added. This leaves Nelspruit KMIA at 7h40 and arrives in Cape Town at 10h05 and is targeted at the leisure traveller. Nelspruit KMIA is the province’s main airport, serving both the capital and being a convenient entry point to the southern part of the Kruger National Park. Airlink has direct flights to and from Johannesburg, Cape Town, Durban and Livingstone in Zimbabwe. Hoedspruit Eastgate Airport is a popular destination for travellers on their way to private game lodges and is also near the Orpen Gate of the Kruger National Park. SA Express flies to Hoedspruit from Johannesburg and Cape Town. Middelburg Airfield is one of the larger alternate airports in the province, boasting a 1.9km runway that can accommodate a 737. The annual Middelburg Air Show is held in June. 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. Coal haulage puts immense pressure on Mpumalanga’s roads network, particularly in the Gert Sibande District and the Nkangala District. Road improvement plans aim to simultaneously fix rural roads and make better connections between rural and urban areas. The South African National Roads Agency (Sanral) has presented its long-term vision, Horizon 2030, as part of its contribution to the National Development Plan 2030. Road improvements which have boosted MPUMALANGA BUSINESS 2019/20

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SECTOR INSIGHT SA Airlink has a new flight to Cape Town. the transport infrastructure of Mpumalanga recently include the upgrades to the R570 (linking Malelane on the N4 to Swaziland), the N11 (Hendrina-Middelburg) and part of the vital R573 Moloto Road, which carries huge volumes of traffic to Gauteng and Limpopo. Sanral’s three-year plan for the R573 allocates R1-billion to the project. A clause in Sanral’s contract with big companies to work on the R573 ensures that small companies are involved. Raubex Construc tion has formed a joint venture with Biz Afrika, Khuluphala Tradings and Themolo Business Enterprise. The R573 forms part of the Moloto Corridor, which connects


OVERVIEW

the province with Gauteng . The long-term aim is to create a coordinated road and rail corridor including rapid rail facilities. With about 50 000 motor vehicles currently using the route every day, it represents one of the busiest parts of South Africa’s road network. The plan to upgrade the corridor is one of 18 national Strategic Infrastructure Projects (SIPs). Not only will the corridor provide better linkages between the provinces and boost development along the route but improve access to the mineral reserves of the Waterberg region. The first phase of the Moloto Corridor Development Programme, which involves the upgrading of road infrastructure is nearly complete. Accidents have been reduced as a result of the R3.7billion first phase. 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 Development Corridor Logistics Initiative (MCLI), the corridor runs from just outside Pretoria in Gauteng, through Witbank, Middelburg and Nelspruit in Mpumalanga, and on to Maputo in Mozambique. The Maputo Development Corridor will receive a further boost with the upgrading of the Komatiepoort Dry Port into a Special Economic Zone. The National Department of Trade, Industry and Competition (the dtic) has designated the Mpumalanga Economic Growth Agency (MEGA) as the lead agent to develop the SEZ.

Rail Another infrastructural development that will boost trade is Transnet’s planned Swaziland Rail Link (SwaziLink) project. A 146km railway line between Lothair in Mpumalanga and Sidvokodvo in Swaziland will

ONLINE RESOURCES Kruger Mpumalanga International Airport: www.kmiairport.co.za Maputo Corridor Logistics Initiative: www.mcli.co.za Middelburg Airfield: http://middelburgaeroclub.com Railroad Association of South Africa: www.rra.co.za South African National Roads Agency Ltd: www.sanral.co.za

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allow for better movement of freight between the countries and provide a possible alternative route for freight through to Richards Bay. 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 heavy-haul 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. MPUMALANGA BUSINESS 2019/20


OVERVIEW

Tourism The Mpumalanga Liberation Heritage Route has been launched.

SECTOR INSIGHT Training programmes are empowering rural communities.

K

ruger National Park is Mpumalanga’s most famous tourism asset. Other notable landmarks include God’s Window and the Blyde River Canyon but the province’s newest asset is ancient. A three-billion-year-old micro-fossil found in the Makhonjwa Mountains near Barberton and the border with Swaziland is thought to be the oldest sign of life on the planet. Now the Makhonjwa Mountains, themselves somewhere between 3.2-billion and 3.6-billion years old, have been declared a World Heritage Site by the United Nations Educational‚ Scientific and Cultural Organisation (UNESCO). The tourist offering near Barberton has been branded the Genesis Route. This brings to 10 the number of World Heritage Sites in South Africa and opens up the possibility of a new type of niche tourism for Mpumalanga. Funds for conservation of the area will be made available from the World Heritage Fund. Visitors to Graskop Gorge can now drop 50m into the gorge via a glass elevator which was built by Enza Construction. The R25-million Graskop Gorge Tourism Attraction Centre contains a 200-seater restaurant, an overhanging veranda, a ticket office, curio shops and an area for informal traders to sell their wares. Although the province already caters for motor-rally enthusiasts, cyclists, runners, walkers, fishers, horse-riders, tree-gliders, abseilers, white-water rafters and rock climbers, there is still potential for more MPUMALANGA BUSINESS 2019/20

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investment in the ecotourism and adventure tourism subsectors. Another option for tourists was recently added to the province’s portfolio, the Mpumalanga Liberation Heritage Route. Twenty-five young women from rural areas are receiving training in hospitality as part of the Hazyview Project, an offshoot of the Travel and Tourism Excellence Academy. The programme is jointly sponsored by Amadeus, a travel technology company, Economic Development Solutions and the Thebe Tourism Group. Hazyview is near the Kruger National Park and the students are expected to be employed at a new hotel at Skukuza when they graduate. The Good Work Foundation (GWF) is running the programme at its Hazyview Digital Campus, in partnership with the South Africa College of Tourism. The province has plans to attract international tourists from nearby and from far away. The tourist authorities of Swaziland and Mozambique have agreed to explore the possibilities of joint marketing through the TriLand Brand Initiative.


OVERVIEW The provincial government department responsible for tourism is exploring opportunities via the BRICS initiative. It believes that visitor numbers from Russia could increase dramatically if a direct flight were introduced between Moscow and Mpumalanga. Thebe Tourism has three projects in the province, the Kruger Shalati (a luxury train on the Selati Bridge), the Blyde Canyon Community Project and a proposed development for Lisbon Estate which is adjacent to the Kruger National Park. The Lisbon development is projected to comprise two hotels, retail, hospitality and dining facilities and staff housing associated with the Lisbon Estate. At Blyde River Canyon, Thebe has signed an agreement with local communities with land claims in the Blyde River Canyon Nature Reserve which will involve them as shareholders in the new developments. God’s Window is to receive a Skywalk, the facilities at Bourke’s Luck Potholes will be rejuvenated, a cable car project is planned for Three Rondavels and another hotel is planned to boost accommodation options in the area. All of these projects have been registered with National Treasury as public-private partnerships. They are regarded as priority projects by the provincial government. The Provincial Government of Mpumalanga is looking for more private partners to invest in a range of ambitious projects to boost an already active sector that has several superb tourism assets, ranging from the iconic Kruger National Park (one of about 70 parks and reserves) to bird-watching, music festivals, car rallies and casinos. The provincial investment agency, MEGA, has packaged many tourism investment opportunities. The underlying principle in each

Bourke’s Luck Potholes

ONLINE RESOURCES Mpumalanga Gaming Board: www.mgb.org.za Mpumalanga Tourism & Parks Agency: www.mtpa.co.za South African National Parks: www.sanparks.co.za South African Tourism: www.southafrica.net South African Tourism Services Association: www.satsa.com

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case is a form of public-private partnership where the agency would assist in getting land-use and other legal requirements, and perhaps in seeing that basic infrastructure was laid on, then the developer would build and manage a tourism facility. A transaction adviser has been appointed to flesh out these proposals for investable tourism products. An example of infrastructure investment from the government’s side is the upgrading of the Manyeleti Resort. Other provincial plans regarding tourism involve promoting the province as a convention venue. A Convention Bureau has been established and the city of Mbombela is being encouraged to build a large centre. Forever Resorts has a big presence in the province, catering to many caravans and campers and holiday-makers wanting to stay in chalets. There is also a four-star Forever Resorts Mount Sheba. The Graceland Hotel Casino and Country Club is a Peermont resort in Secunda. Tsogo Sun has six hotels in the province, ranging from two StayEasys to Southern Sun The Ridge, which is attached to the Ridge Casino in Witbank (Emalahleni). Tsogo runs a further two resorts in Hazyview (Sabi River Sun Resort) and White River (Pine Lake Resort). Protea Hotels by Marriott has three properties in Mpumalanga, including Protea Hotel Kruger Gate, Nelspruit and Hazyview. At White River, Premier Hotel The Winkler is 20 minutes’ drive from the Numbi Gate of the Kruger National Park. MPUMALANGA BUSINESS 2019/20


OVERVIEW

Banking and financial services Digital banking is on the rise.

E

mbalenhle has a new Ubank branch. Situated at the Mall@ Emba, the branch will serve customers from Secunda and other areas such as those that used to bank at a branch at the Kinross mine, which has been closed. In line with modern trends towards digital banking, the new Ubank branch has internal and external facing digital walls. The screens promote new products and campaigns, give customers information and provide financial education. A feature that is designed to support local artists is the Feature Wall. All of the big retail banks (Nedbank, Absa, Standard Bank, Capitec and First National Bank) are present in the province’s major towns. Agriculture is an important focus area for banks, and most have specialised divisions such as Nedbank Agribusiness. TWK Agri offers financing and insurance together with the usual suite of agricultural services. Afgri, one of the country’s biggest agricultural companies, offers financial services (financing and insurance) under the brand Unigro. It has another service called Gro Capital Financial Services which offers more complicated products. Another source of funding for farmers is the Land and Agricultural Development Bank of South Africa (Land Bank), a developmentfinance institution that falls under the Ministry of Finance. Standard Bank has a new black economic empowerment agricultural fund designed to support emerging farmers. The R500-million fund is designed to connect farmers who have received farms in land reform projects to agri-businesses that will buy their produce. The first new banking licence in nearly two decades was issued in 2017, to TymeDigital. The bank has no physical branches although Tyme’s Money Transfer product, which it launched in 2016, is available at Boxer and Pick n Pay. The banking licence is the first to be issued since Capitec was granted a licence by the South African Reserve Bank in 1999.

ONLINE RESOURCES Financial Services Board: www.fsb.co.za Post Bank: www.postbank.co.za Public Investment Corporation: www.pic.gov.za

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SECTOR INSIGHT New banking licences have been granted.

In a province with a high proportion of rural citizens such as Mpumalanga, the prospect of Postbank being upgraded to a full-service bank is positive news. The current Postbank focusses on taking deposits and savings accounts. Postbank has secured a R3.7-billion loan to enable it to open its own loan book. The large geographical footprint of the Post Office will make the bank easily accessible to even remote parts of the country. Banks are working hard to offer products to the previously unbanked. Nedbank has partnerships with shops such as Boxer Stores and Pick n Pay where customers can have access to financial services in previously unserviced areas.


OVERVIEW

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OVERVIEW

Development finance and SMME support Many small businesses operate in trade and accommodation.

S

upport for the small business sector is not always easy to measure. Advice and mentoring are important but it’s in turnover figures where concrete results can be seen. Bushbuckridge entrepreneur Freddy Sibuyi (pictured) took full advantage of the advice and support that Tholoana Enterprise Programme of the SAB Foundation had to offer. Turnover of Freddy and Sons Maintenance and Engineering jumped from a little over R602 000 to more than R2.2-million and he added 10 employees to his original staff complement of five. The SAB Foundation has provided over R6-million in grant funding and business support to 60 entrepreneurs in Mpumalanga. Collective turnover has increased by 324% and 121 new jobs have been created. Research done by the Small Enterprise Development Agency (Seda) shows that a high percentage of SMMEs in Mpumalanga are in the trade and accommodation sector. Whereas the national figure is about 43%, in Mpumalanga it is closer to 50%. Seda supports several incubators in the province: Furntech, furniture manufacturing, White River; Mobile Agri-Skills Development & Training (MASDT), agricultural training, Nelspruit; Mpumalanga Stainless Initiative (MSI), stainless steel processing, Middelburg (with Columbus Stainless); Timbali floriculture, Nelspruit; Ehlanzeni TVET College Rapid Incubator Renewable Technologies, Nelspruit. Seda is a subsidiary of the National Department of Small Business Development (DSBD). Seda is not a financial agency, focussing rather on training and administrative support, although the agency will help SMMEs get in touch with financial bodies. Sappi’s long-term Ngodwana mill project will spend more than R600-million on procuring goods and supplies from broad-based black economic empowered companies, of which R51-million will go to SMMEs. Other companies supporting SMMEs through their buying chain include Woolworths and Anglo American. Woolworths is funding

ONLINE RESOURCES Mpumalanga Economic Growth Agency: www.mega.gov.za Mpumalanga Stainless Initiative: www.mpstainless.co.za Small Enterprise Development Agency: www.seda.org.za

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TechnoServe to ensure that small tomato growers can grow produce that will meet the demanding standards of the retailer, and to help them expand production. Anglo American’s Zimele runs four enterprise development and investment funds. Zimele runs hubs related to the supply chains of platinum, thermal coal and, with Mondi, forestry. The Mpumalanga Economic Growth Agency (MEGA) is the implementing agent of the provincial government’s SMME support policy.An agreement has been signed with Standard Bank to launch an SME Fund with a capitalisation of R500-million.


PROFILE

Kruger Lowveld Chamber of Business and Tourism The voice of business in Ehlanzeni.

A

s the official representative body of business and tourism in the Kruger Lowveld (Ehlanzeni District), our main mandates are to promote the region as a tourism and investment destination, to provide a diverse suite of networking and marketing opportunities for our members, and to represent and speak on behalf of the business and tourism community of our area. We do this by building and maintaining meaningful relationships with all spheres of government as well as like-minded organisations, and by acting as liaison between these entities and the business community. KLCBT’s president is Mr Oupa Pilane (pictured).

Area of operation The Kruger Lowveld covers the Ehlanzeni District of Mpumalanga, including the following local municipalities: City of Mbombela, Thaba Chweu, Nkomazi and Bushbuckridge, as well as the southern part of Kruger National Park and the surrounding private nature reserves.

Member benefits Listing on website, Pay-to-Play participation in various marketing services and projects, weekly newsletter, invitations to all KLCBT events, advocacy and representations made by KLCBT on behalf of members, access to preferential arrangements negotiated by KLCBT with service providers, brochure display at Crossing Centre office, various sponsorship options, access to tender information. We are actively involved in the following advocacy campaigns: Service delivery: Public participation in various forums where government engages with stakeholders regarding budgets, planning and legislation.

CONTACT DETAILS Physical address: KLCBT House, Crossing Centre, Nelspruit Postal address: Private Bag X 11326, Nelspruit 1200 Tel: +27 13 755 1988 Fax: +27 13 753 2986 Email: business@klcbt.co.za and tourism@klcbt.co.za Website: www.klcbt.co.za

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Promote home-grown businesses through education processes, research, maintaining a database, lobbying for stricter regulations on large shopping chains, engaging large chains to buy local and to spend their CSI budgets locally. Local Economic Development: We are assisting with incubation in seven main corridors, mainly adding additional tourism products. Anti-corruption: Several successful initiatives reduced roadside corruption. Water: Bulk-water supply faces a future crisis and lobbying for the increase of storage capacity is beginning to show success. Roads and public attractions: Require upgrades and investment. Safety and security: A concern for all regions in SA. MPUMALANGA MPUMALANGABUSINESS BUSINESS2019/20 2017/18


OVERVIEW

Education and training A new boarding school will assist rural children.

SECTOR INSIGHT 85 students are studying in Russia.

T

he opening of the Thaba Chweu Boarding School in the Ehlanzeni District will make access to education easier for rural children who would otherwise have to travel long distances. Two new schools will also be completed in 2019, in the City of Mbombela and in eMalahleni. The Provincial Government of Mpumalanga has teamed up with the Manufacturing, Engineering and Related Services Sector SETA to send 85 students to Russia. The SETA will pay for 35 students in areas that have been identified as critical, namely medicine, civil engineering, veterinary science, aviation/aeronautical studies and information technology. Sasol offers an all-inclusive bursary for students in engineering, science and accounting. The bursary also has performance-based awards and allowances for things like laptops and calculators. Sasol has also committed to taking on qualified apprentices from the Hydra Arc academy in Secunda. The University of Mpumalanga enrolled 3 220 students in 2019, a marked increase on humble beginnings in 2014 when the university

ONLINE RESOURCES Mpumalanga Department of Education: www.mpumalanga.gov.za/education Sasol bursaries: www.sasolbursaries.com Southern African Wildlife College: www.wildlifecollege.org.za University of Mpumalanga: www.ump.ac.za

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started life with 167 students. The university has added bachelor’s degrees in arts and commerce to its initial offering of academic courses in education and agriculture and a diploma in hospitality. Geology will soon be offered as part of a BSc. T he main campus is at Mbombela with satellites at Siyabuswa (a former education college) and KaNyamazane, which hosts hospitality studies. Mpumalanga has thre e Te chni c al an d Vo c ati o nal Education and Training (TVET) Colleges, with an enrolment of over 36 000. UNISA, the Tshwane University of Technology and the Vaal University of Technology also have satellite campuses in the province. The Mpumalanga Regional Training Trust (MRTT) is a Section 21 company with several sites in the province, including a Hospitality and Tourism Academy at Karino outside Nelspruit. The trust’s construction-training facility is accredited as a Construction Centre of Excellence. The Southern African Wildlife College is located near the Orpen Gate on the edge of the Kruger National Park.


PROFILE

Gert Sibande District Municipality A community-driven district of excellence and development.

Vision GSDM is customer focussed. The vision is the municipality’s point of reference throughout each financial year in all the municipality’s plans, programmes and activities. The vision ensures that the District operates within its powers of function which is to support and coordinate local municipalities.

Mission

L

ed by Executive Mayor Councillor Muzi Chirwa, with its offices located in Ermelo right at the hear t of the distric t, Ger t Sibande District Municipality (GSDM) is the largest of the three districts in Mpumalanga Province at 31 841 km², covering 4 0 % o f t h e M p u m a la n g a Province’s land mass. According to Stats SA (2016 Community Survey), Gert Sibande’s population increased from 1 043 194 in 2011 to 1 135 409 people in 2016. This makes the GSDM the smallest district in terms of population among the three districts in the province. Seven local municipalities make up the District Municipality, which is traversed by several major roads including the N11, the N17 and the N3, the main road connecting Gauteng with the coast.

To support and coordinate our local municipalities to provide excellent services and development. Some of the district’s major towns are Balfour, Carolina, Ermelo, Evander, Secunda, Standerton, Wakkerstroom and Mkhondo (Piet Retief). The District is gradually growing its reputation for its range of innovative initiatives such as the establishment of the water quality laboratory, purchase of the pothole patching truck, supporting the development of cooperatives and its excellence in rendering municipal health services.

CONTACT DETAILS Physcal address: Corner Joubert and Oosthuise Streets, Ermelo, South Africa Postal address: PO Box 1748, Ermelo 2350 Tel: +27 17 801 7000 Fax: +27 17 811 1207 Email: records@gsibande.gov.za Website: www.gsibande.gov.za

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MPUMALANGA MPUMALANGABUSINESS BUSINESS2019/20 2017/18


INDEX

INDEX Exxaro Resources������������������������������������������������������������������������������������������������������������������������������� 13, 42 Gert Sibande District Municipality........................................................................................... 38, 55 Highveld Industrial Park ...........................................................................................................15,19, 21 Industrial Development Corporation (IDC)............................................................................... 16 Komati Basin Water Authority (KOBWA)...................................................................................... 36 Komati Lowveld Chamber of Business and Tourism (KLCBT).........................................53 Mpumalanga Economic Growth Agency (MEGA).........................................................7, OBC Mpumalanga Economic Regulator (MER) ................................................................................. 22 MTN�����������������������������������������������������������������������������������������������������������������������������������������������������������������������3 Nedbank��������������������������������������������������������������������������������������������������������������������������������������������� 5, 24, 51 SA Airlink .......................................................................................................................................................IBC Sasol������������������������������������������������������������������������������������������������������������������������������������������������������������������IFC Transnet Pipelines������������������������������������������������������������������������������������������������������������������������������������� 32

MPUMALANGA BUSINESS 2019/20

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OVERVIEW

Forestry

Demand for sawn timbe

F

orestry is ideally suite Mpumalanga in dow and energy generat where there is great considerable infrastructure. Forestry accounts for ab Product. At national level, t agricultural GDP while the fo 1% to national GDP. The sec product and pulp and pap main exports, along with saw The country is experienc few new permits having be about water availability. Mo the construction sector. Mpumalanga has the id Sabie and Graskop represen forests are also found to the e About 11% of the land mass forest. The province is the na (514 000) and in export earn

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Mpumalanga Business 2019/20  

Mpumalanga has several investment and business opportunities in a wide range of sectors. In addition to the regular articles providing insig...

Mpumalanga Business 2019/20  

Mpumalanga has several investment and business opportunities in a wide range of sectors. In addition to the regular articles providing insig...

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