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Mpumalanga Business 2023-24

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  • Windenergy
  • Macadamia
  • Oilandgas
  • Agroforestry
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The 2023/24 edition of Mpumalanga Business is the 14th issue of this successful publication that since its launch in 2008 has established itself as the premier business and investment guide for the province. Introduced by a warm message of welcome to potential investors from the CEO of the Mpumalanga Economic Growth Agency (MEGA), this edition of the journal also contains the official Mpumalanga Investment Prospectus, a comprehensive survey of the province’s assets and the potential of the region. Major catalytic projects such as the Nkomazi Special Economic Zone (NSEZ) and the Mpumalanga International Fresh Produce Market (MIFPM) are examined in detail, outlining how producers, processors and logistics firms stand to benefit and where there is potential for investment. In addition to the Prospectus, the journal contains a special feature on how the province is leading the field in going green in various projects across several sectors. Sector overviews give up-to-date news on what is going on in the key sectors of the provincial economy, as well as giving a more general view of conditions pertaining to that sector.

OVERVIEW Agriculture The

OVERVIEW Agriculture The macadamia industry is growing fast. SECTOR INSIGHT 800 new hectares of avocados are planted annually. The South African macadamia industry expects to produce 83 556 tons in 2023, a better crop estimate than 2022 and much better than the 53 000 tons achieved in 2021. Fully 97% of the crop is exported. Thousands of new trees are being planted every year. In 2022, Mpumalanga was responsible for 37% of the country’s 6 235 new hectares. There are more than 65 000 hectares planted to macadamias in the country. Sophisticated machinery (pictured) is increasingly being used, and data usage is becoming vital for sustainability. Avocados are not as widespread, but the planting of 800 new hectares annually suggests that global markets are responding well to farms in Mpumalanga and elsewhere. The website of the South African Avocado Growers Association lists 25 companies that export the fruit. Mpumalanga accounts for about 21% of South Africa’s citrus production and a third of its export volumes, with Valencias being the province’s most popular varietal and Nelspruit being the centre of the sector. Litchis, mangoes and bananas also thrive in the province. Hazyview is an important source of bananas, with 20% of South Africa’s production originating there. The South African Subtropical Growers’ Association is an association of associations that manages the affairs of the following growers associations: South African Avocado (SAAGA), Litchi (SALGA) and Mango (SAMGA). South African agricultural exporters took a hit from the war that Russia began with Ukraine. In a normal year, the country exports five-million cartons of prunes and pears to Russia and more than double number of citrus cartons to the two combatant ONLINE RESOURCES Citrus Growers Association: www.cga.co.za Macadamias South Africa: www.samac.org.za South African Subtropical Growers’ Association: www.subtrop.co.za Credit: SAMAC nations. In addition, South Africa’s farmers import about 80% of fertiliser, much of it from Ukraine. An agro-processing facility is planned for the area near the Kruger Mpumalanga International Airport (KMIA) and private investors are being approached. The Fortune 40 programme is focussed on developing young entrepreneurs in farming. Twelve of the Fortune 40 farms have been linked to retailers such as Spar, Shoprite and Boxer and with wholesalers and agro-hubs. The goal is to have an agrohub in each of the province’s three districts. Small-scale farmers and co-operatives can connect to the formal economy via the hubs which will also provide advice and equipment. The Mkhuhlu agro-hub in Bushbuckridge, which forms part of the Provincial Government Nutrition Programme, is operational. A feasibility study is underway relating to the establishment of a hub in the Nkomazi Municipality. Phezukomkhono Mlimi is a provincial government assistance programme providing mechanisation and input support to small-scale and new farmers. Training courses are offered by the AgriSETA. Agriculture is responsible for about 3.4% of Mpumalanga’s Gross Domestic Product (GDP). ■ MPUMALANGA BUSINESS 2023/24 38

Forestry and paper An agroforestry project plans to convert unused land. Dry bamboo biomass is one of the products that private company Terragrn wants to produce in large quantities as part of its ambitious plans to restore and use large tracts of land in Mpumalanga (pictured). The company’s stated goal is to turn up to 200 000ha of unused land into a -billion sustainable land-management agroforestry project over the next 10 years. A 68ha pilot project is to be rolled on the land of the Manala Mgibe in association with the Community Property Association (CPA). Trying to create a “nature-based solution” to the worldwide problem of carbon emissions and the transition from fossil fuels, the project is targeting the agriculture and forestry sectors as a means of promoting employment and involving rural communities. 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. 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. One of the biggest operations in the forestry and paper sector in Mpumalanga is Sappi’s Ngodwana Mill. Although it has a big international footprint, Sappi’s biggest sales volumes are achieved in South Africa, making up nearly 50% of group sales. In ONLINE RESOURCES Forestry South Africa: www.forestry.co.za Sawmilling South Africa: www.timber.co.za Technical Association of the Pulp and Paper Industry of South Africa: www.tappi.org Credit: Terragrn SECTOR INSIGHT OVERVIEW Energy generation is being investigated. the six months to March 2023, South Africa also accounted for 39.5% of operating profit. The JSE-listed company has a valuation of R22.9-billion. 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. Forestry companies are looking into energy generation, including Sappi and AFCOL. Mpumalanga has 40% of South Africa’s forestry resources, which presents an opportunity to exploit the sector’s byproducts in the biomass-to-energy field. The Industrial Development Corporation (IDC) has a stake in Hans Merensky Holdings and York Timbers, which has planted out 40ha in high-value crops as the first phase of a diversification strategy. PG Bison, a subsidiary of KAP Industrial Holdings, is investing R560-million in a new front-end dryer for its particleboard plant in Mkhondo (Piet Retief ). The company is also building a new medium-density fibreboard (MDF) plant at its Mpumalanga plant, to complement its existing factory at Boksburg in Gauteng. ■ 39 MPUMALANGA BUSINESS 2023/24

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