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Mpumalanga Business 2024-25

  • Text
  • Investment
  • Business
  • Africa
  • Southafrica
  • Forestry
  • Economy
  • Mining
  • Manufacturing
  • African
  • Sector
  • Economic
  • Tourism
  • Province
  • 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.

KEY SECTORS

KEY SECTORS MANUFACTURING Three primary pillars of the manufacturing sector in Mpumalanga account for more than 60% of the output of the manufacturing sector, which overall makes up 15% of gross value added, regional (GVA-R). MAIN EXPORTS STAINLESS STEEL Cutlery Catering equipment Surgical instruments Automotive components STEEL White & grey goods Pipes & tubes Wire PETROCHEMICALS Plastic products Recycling plastics Artificial rubber products Paint & vanish Inks & dyes FOOD PROCESSING Maize meal Machinery Frozen & dehydrated VEGETABLES Preserves, pickles & condiments Nuts PAPER Recycling SUGAR Confectionery MINING Machinery & services RENEWABLE ENERGY Solar & biofuel Biomass Fuel, petroleum and chemical products are manufactured at the Sasol Secunda plant in Secunda, Gert Sibande District. It is one of the world’s largest synthetic fuels facilities, producing 60-million litres of liquid fuel a day. Products produced include petroleum, paraffin, jet fuel, creosote, bitumen and waxes. The ferro-alloy and stainless-steel industries are based in the Nkangala District. Columbus Stainless in Middelburg is Africa’s only producer of stainless-steel flat products. Samancor Chrome (Ferrometals), the world’s second-largest ferrochrome producer, has two plants in Mpumalanga. Agro-processing is mainly based in the Lowveld Region and consists of manufacturing forestry products (pulp, paper and cellulose), sugar at the Selati RCL Foods plants in Nkomazi and processing subtropical fruit and nuts. The province’s flourishing macadamia nut industry has a number of large processing facilities based around the provincial capital, Mbombela. Subtropical fruits like mango, banana, papaya and citrus are processed into juice concentrate or dried for export. There is a geographical divide in the manufacturing sector. Fuel, petroleum and chemical production occurs in the southern Highveld Region clustered around Sasol’s plants. The northern Highveld area, including Middelburg and eMalahleni (Witbank), is home to ferro-alloy, steel and stainless-steel concerns. Creative thinking kicked in when Highveld Steel’s troubles reached a tipping point. The 1 000ha property in eMalahleni has been re-purposed as a multi-purpose site for industry and commerce. Called the Highveld Industrial Park, the project promotes a wide range of manufacturing enterprises. In the Lowveld, agricultural and forestry products are processed while Sappi’s giant mill is close to the company’s forests south-west of the provincial capital, Mbombela. KEY SECTORS TOURISM The Tourism Industry in the Mpumalanga Province is one of the most strategic sectors and has the potential to grow the economy and contribute to job creation. The importance of tourism to the economy of Mpumalanga cannot be overstated. Despite the lacklustre global economic growth and the decline in disposable income, foreign and domestic tourists have been steadily visiting Mpumalanga’s shores. Over 1.1-million international tourists visited Mpumalanga in 2023 with international tourists spending R3-billion in the province. The casino industry 2 BILLION Income from Kruger National Park has enjoyed great growth and shows signs of further potential for additional investment. Mpumalanga boasts world-class parks and reserves, astonishing botanical gardens, rivers and lakes. Safaris are a major drawcard, and the Kruger National Park is the jewel in South Africa’s tourism crown which brings in R2-billion annually. Tourism subsectors such as business travel (including conference facilities), adventure, heritage and cultural tourism all hold huge growth potential. 1.1 International tourists in 2023 million

INVESTMENT OPPORTUNITIES TOURISM Selected Strategic High Impact Projects: BOURKE’S LUCK POTHOLES HOTEL This natural water wonder is a major tourism attraction in the Mpumalanga Lowveld. This project presents an investment opportunity for a five-star hotel and a top-quality restaurant. Feasibility study: completed Environmental Impact Assessment (EIA): commenced Model: Joint Venture (JV), Build-Operate-Transfer (BOT) BLYDE RIVER CANYON CABLE CAR PROJECT The Blyde River Canyon is the largest and deepest green canyon in the world and offers a spectacular opportunity to build a cable car transporting tourists from the top of the canyon to the peninsula below. Feasibility study: completed EIA: commenced Model: JV, BOT GOD’S WINDOW SKY WALK The project to build a “Sky Walk” – an income-generating tourism attraction off the edge of the 700m God’s Window cliffs – giving 360-degree panoramic views out and down through a glass floor. Feasibility study: completed EIA: commenced Investors: secured Model: JV, BOT 3.6 BILLION Age of volcanic and sedimentary rock at Barberton Makhonjwa Mountains, a UNESCO World Heritage Site. 500+ Bird species recorded in the Kruger National Park, including the Kori Bustard, Martial Eagle, Southern Ground Hornbill and Lappetfaced Vulture 13 Nature reserves are run by the Mpumalanga Tourism and Parks Agency and Kruger National Park is run by SANParks

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