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Mpumalanga Business 2019/20 edition

  • Text
  • Africa
  • Transport
  • Water
  • Gas
  • Processing
  • Mining
  • Incentives
  • Sectors
  • Business
  • Investment
  • Parks
  • Forestry
  • Manufacturing
  • Highveld
  • Tourism
  • Sasol
  • Province
  • Economic
  • Industrial
  • Mpumalanga
The 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. 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

PROFILE • Some of the

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). Manufacturing 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 • 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. Incentives for SMMEs 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 MPUMALANGA BUSINESS 2019/20 14

Highveld Industrial Park Superb infrastructure on a well-located site is attracting tenants. PROFILE over pace strial uare ty is ated are uding lime and ance. Following the closure of Evraz Highveld Steel d unfurnished accommodation; also suitable for functions and and Vanadium Limited and the retrenchment of 1,700 employees in February 2016, Highveld rk? required a creative approach to save it from ower stations being demolished and sold as scrap. Highveld the N12 Industrial Park, as it is now known, was developed from N4 the erstwhile steelworks and has been regenerated as a multi-purpose site for industry and commerce and is today home to a diverse group of enterprises, including s on site transport, manufacturing and engineering companies. Highveld Industrial Park started with only four tenants m the Eskom in grid 2016 and has gone from strength to strength. In ctly supplied August by Sasol 2019, it reached the 50-tenant mark, which was a ite purification proud moment for the Industrial Park, given the position services it was in less than four years ago. Highveld Industrial d Laboratory support services Park’s tenants currently employ over 1,000 people s and boasts a wide variety of companies from various ntrol industries, including a dragline bucket refurbishment al and Fire-fighting company and rail siding operators which transport coal and ore from one of the largest private sidings owned intment and view facilities available for rental. by Highveld, to Richards Bay and Maputo. ighveld Industrial NOVO Park: Energy recently launched a R130-million gas alpark.co.za/ compression facility at the Industrial Park, which is the only one of its kind in Mpumalanga. Highveld Industrial book.com/highveldindustrialpark/ Park is also extremely proud of its ongoing and consistent support of SMMEs. By offering preferential din.com/company-beta/18156518/ rates to developing enterprises it has assisted in shaping successful companies, ranging from recycling ube.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 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. 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 15 MPUMALANGA BUSINESS 2019/20 2017/18

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