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Mpumalanga Business 2024-25

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  • Investment
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  • Africa
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  • Forestry
  • Economy
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  • Mpumalanga
The 2024/25 edition of Mpumalanga Business is the 15th issue of this successful publication that since its launch in 2008 has established itself as the premier business and investment guide for the province. The CEO of the Mpumalanga Economic Growth Agency (MEGA) outlines the investment climate in a resource-rich province that is already attracting a wide variety of enterprises in sectors as diverse as wind-power generation and food processing. The latest news in all the most important sectors of the provincial economy is covered in a series of overviews covering events such as Sasol’s announcement that it will be scaling back on gas imports and, in the context of increased scrutiny of every sector’s green credentials, the establishment of the Sustainable African Forest Assurance Scheme (SAFAS) in the forestry article. The potential of wood provides a somewhat unusual focus for the manufacturing article, but sustainability is a theme that is always relevant. Major catalytic projects such as the Nkomazi Special Economic Zone (NSEZ) and the Mpumalanga International Fresh Produce Market (MIFPM) are examined in detail in the official Mpumalanga Investment Prospectus which is contained in these pages. Compiled by MEGA, the Prospectus outlines in detail many of the exciting investment opportunities on offer. 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, our flagship South African Business title and the new addition our list of publications, The Journal of African Business, which was launched in 2020.

WHY INVEST IN

WHY INVEST IN MPUMALANGA? • 68% of of land area in in the province is used by agriculture • Mpumalanga’s three biggest sectors are manufacturing, mining and agriculture Mpumalanga’s diverse and resource-rich economy makes it one of the most attractive trade and investment destinations in South East Africa. A large, growing domestic market and excellent access, supported by worldclass infrastructure, to the East African and Indian Ocean markets through Maputo Port makes Mpumalanga an ideal investment location for export-driven manufacturing and production. Mpumalanga is one of South Africa’s most productive and important agricultural regions and through strategic investments in the Mpumalanga International Fresh Produce Market (MIFPM) and the Nkomazi Special Economic Zone (NSEZ) the province is set to become a major force in food production and distribution. Mpumalanga’s sophisticated and well-segmented tourism and hospitality sector in a post-Covid world is ripe for investment and expansion. Mpumalanga’s STRATEGIC LOCATION makes it a valuable transport and logistics hub Mpumalanga UNIQUE SELLING PROPOSITION • Abundant resources: minerals and agricultural produce • Established manufacturing infrastructure: smelters, petrochemicals, food processing, paper, sugar • Strategic location, access to regional and global markets • Tourism hotspots: the iconic Kruger National Park, world-class reserves, adventure tourism and new UNESCO World Heritage Site • Mpumalanga International Fresh Produce Market (MIFPM) • Nkomazi Special Economic Zone (NSEZ) • The new University of Mpumalanga • Support for Green Economy research and investment A A province in in eastern South Africa, bordering the the nations of Swaziland and Mozambique • Maputo Development Corridor enhances logistics • Preferential access to lucrative EU market • Proximity to South Africa’s economic heartland • Access to regional SADC market: 360-million population • Access to deepwater Port of Maputo Capital Capital City City Main Main major major towns towns Mbombela Ermelo (Nelspruit) eMalahleni Population Population Middelburg 4.7-million 4.5-million people Secunda Secunda people Airport Kruger Mpumalanga International Airport Airport Kruger Mpumalanga International Airport MPUMALANGA’S ECONOMY The provincial economy of of Mpumalanga is is exceptionally diverse. Established diverse. Established industries industries the province the include province Mining, include Stainless Mining, Steel, Stainless Petrochemicals, Steel, Petrochemicals, Pulp and Paper, Pulp and Ferro-Alloys, Paper, Ferro-Alloys, Energy Energy Generation, Tourism, Agriculture and Agro-Processing. Generation, Tourism, Agriculture and Agro-Processing. Companies in these sectors include global giants in their industries such as Sasol (energy and chemicals), Sappi (paper, packaging, pulp and forests), Samancor Chrome (ferrochrome), Sibanye-Stillwater and Glencore (mining). AGRICULTURE 3% MINING 20% AGRICULTURE 3% MINING 20% COMMUNITY SERVICE COMMUNITY 19% SERVICE 19% FINANCE FINANCE 14% 14% TRANSPORT 6% TRANSPORT 6% MANUFACTURING MANUFACTURING 15% 15% ELECTRICITY 7% ELECTRICITY 7% CONSTRUCTION CONSTRUCTION 2% 2% TRADE 14% TRADE 14% District GVA by by district 38% 39% 34% 28% 27% Nkangala Gert Ehlanzeni Gert Sibanda Sibanda The province’s commercial farmers are among the most efficient in the world, exporting huge quantities of everything from citrus to macadamia nuts. Columbus Stainless is the only stainless-steel manufacturer on the continent. GOVERNANCE The province has three district municipalities and 17 local municipalities. Several agencies which promote the regional economy report to the Mpumalanga Provincial Government. Large parts of the province comprises extensive rural villages that form part of areas run by traditional authorities. TRANSPORT Two Kruger airports Mpumalanga at Hoedspruit International and Mbombela Airport (KMIA) (Kruger in Mpumalanga Mbombela plus International many airfields Airport, KMIA) such as plus Middelburg. many airfields. Extensive Extensive freight freight rail network, rail network, busiest busiest in South in South Africa. Africa. N4 highway N4 highway (Maputo (Maputo Corridor) Corridor) is an east-west is an east-west spine of spine a highly of a highly-developed road system. road system.

ABOUT MEGA The Mpumalanga Economic Growth Agency (MEGA) is the official Economic Development Agency for the Mpumalanga Provincial Government. MEGA’s primary mandate is to foster the sustainable growth and development of Mpumalanga’s economy through its operational activities of Trade and Investment Promotion, Development Funding, Equity Investments, and Property and Infrastructure Development. The Agency remains accountable to the Mpumalanga Department of Economic Development and Tourism (DEDT). MEGA is the foreign investor’s or trader’s first point of contact for doing successful business in Mpumalanga Province. Through the Trade and Investment Promotion Division, the Agency provides a variety of services to potential investors and trading partners. PLANNING THE WAY FORWARD National government has articulated a Nine-Point Plan which seeks to prioritise projects that will tackle key economic issues. MEGA is aligned with the plan, which include issues relevant to growing the provincial economy: • revitalise agriculture and the agro-processing chain • advancing mineral beneficiation • implementing the Industrial Policy Action Plan (IPAP) effectively • unlocking the potential of SMMEs, cooperatives and township and rural enterprises • resolving the energy challenge • stabilising the labour market • upscaling private investment • investment in science and technology, water and sanitation, transport and broadband connectivity The Maputo Development Corridor is South Africa’s leading Spatial Development Initiative (SDI), linking Mpumalanga Province, Gauteng Province and the Nkomazi Special Economic Zone with the deepwater Port of Maputo in Mozambique. This efficient corridor provides investors and exporters with good access to the export markets of South East Africa, the Indian Ocean Rim and Far East Asia. The Maputo Development Corridor comprises road, SOUTH AFRICA MEGA SERVICES MEGA staff will go out of their way to make the process of investing in Mpumalanga or starting a business in the province easy. MEGA is focussed on customer needs and provides innovative solutions with a high level of service. Services include: • Foreign Trade Promotion • Investment Promotion • Funding • Property Management and Infrastructure Development MAPUTO DEVELOPMENT CORRIDOR Lydenburg rail, Special Economic Zone, border posts, port and terminal facilities. The corridor runs through the most highly industrialised and productive regions of Southern Africa. The Corridor has been extensively upgraded to international standards and links the industrial heartland of South Africa to its nearest port in Maputo, Mozambique, which is one of the fastest-growing countries in South East Africa. Sabie MOZAMBIQUE Middelburg Belfast Mbombela Komatipoort JOHANNESBURG Carolina SWAZILAND MAPUTO

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