A REGIONAL OVERVIEW OF
A REGIONAL OVERVIEW OF MPUMALANGA PROVINCE The lift at Graskop Gorge is proving a great attraction. Three decades on from the dawn of democracy, Mpumalanga is poised to lead a new phase in energy generation. By John Young The general elections of 2024 prompted reflections in many spheres on three decades since the first democratic elections were held. In March 2024, Mpumalanga Premier Refilwe Mtsweni-Tsipane’s State of the Province address listed many consequential changes that have occurred in Mpumalanga in that timeframe: • population increased from 3.3-million to 5.1-million • Gross Domestic Product (GDP) grew from R46-billion to R530-billion • off very low levels, 87% of households have access to piped clean water • 93% have access to adequate sanitation • more than 94% of residents have access to electricity Mtsweni-Tsipane, who was succeeded as provincial premier by fellow ANC member Mandla Ndlovu, was elected by the government of national unity (GNU) as the new chairperson of the National Council of Provinces (NCOP). More change is coming to the province in the next 30 years. Mpumalanga is often thought of as the Coal Province or the Power Station Province. These are fair assessments, given the number of coal mines and coal-fired power stations the province hosts. Of course, Mpumalanga is also the province where six of the nine gates are located that allow access to the Kruger National Park, one of South Africa’s greatest tourism assets. Stainless steel, gold, chemicals, dairy and beef, agriculture in many varieties, huge forestry MPUMALANGA BUSINESS 2024/25 8 PHOTO: MTPA
SPECIAL FEATURE plantations and processing plants – these are also distinctive characteristics of the “Place of the Rising Sun”. The sun is a great source of energy, but for Mpumalanga, it is wind power that is in full flow. The South African Wind Energy Association (SAWEA) published a “Winter Energy Outlook” in May 2024 in which it noted that South Africa now has wind power capacity of 2GW, potentially powering approximately 3.6-million households annually. Two major projects, one in Mpumalanga and one on behalf of companies that will use green power in the province, are highlighted in the SAWEA document: Seriti Green’s Ummbila Emoyeni wind farm in Mpumalanga, which will generate 155MW as part of the project’s initial phase of a broader 900MW renewable energy cluster, and the Impofu cluster of wind farms in the Eastern Cape which will generate a combined 336MW to supply two major industrial companies, Sasol and Air Liquide. These projects bring a combined 491MW and R13.5-billion investment. The country’s wind project development pipeline currently stands at 32GW, and with Mpumalanga now joining the ranks of provinces offering wind farms, that pipeline is sure to grow. These and other renewable energy projects will not only provide power but also help the province and the country along the road to a cleaner, more environmentally friendly economy. In pursuit of that goal, the Provincial Government of Mpumalanga has established the Mpumalanga Green Cluster Agency to bring together government, academia and industry to create the environment for businesses to develop in a green economy. The Cluster, an initiative of the Mpumalanga Department of Economic Development and Tourism with the support of GreenCape and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), has joined the International Cleantech Network, a group that has 15 000 businesses affiliated to it across the globe. National utility Eskom is also moving into the new era, partly through a process whereby the entity will be broken into three more competitive units, but more immediately through the announcement of 18 winning bids from Students at the University of Mpumalanga enjoy excellent facilities. independent power producers (IPPs) for renewable projects on Eskom land, 4 000ha of which the utility has made available for this first phase. Eskom owns 36 000ha in the province. A total of 1 800MW will become available to the grid and it will be cheaper to transmit because the solar or wind plants will be right next to the existing Eskom transmission lines. A Mine Water Coordinating Body (MWCB) has successfully been launched to help manage the after-effects of the closure of mines and power stations. The bad results of one such water leakage are dealt with in the Mining Overview. Many of Mpumalanga’s coal-fired power stations are either in the process of being closed or will shortly be shut down and the same is true of some coal mines that have reached the end of their lives. Eskom, together with mining houses Exxaro, Glencore and Thungela Resources, formed the MWCB to address environmental and socioeconomic challenges that might arise. Issues such as water also fall under the ambit of a broader mine-industry related coalition known as the Impact Catalyst which has been launched in Mpumalanga. Investment options Several infrastructure investment projects in the tourism sector have been put forward by the Mpumalanga Economic Growth Agency (MEGA). PHOTO: UMP 9 MPUMALANGA BUSINESS 2024/25
