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Sprovincial focusA regional overview ofMpumalanga ProvinceThree decades on from the dawn of democracy, Mpumalanga is poised to lead a new phase in energy generation.By John YoungTThe general elections of 2024 prompted reflections in many sphereson three decades since the first democratic elections were held. InMarch 2024, Mpumalanga Premier Refilwe Mtsweni-Tsipane’s Stateof the Province address listed many consequential changes that haveoccurred in Mpumalanga in that timeframe:• Population increased from 3.3-million to 5.1-million• Gross Domestic Product (GDP) grew from R46-billion toR530-billion• Off very low levels, 87% of households have access to pipedclean water• 93% have access to adequate sanitation• More than 94% of residents have access to electricityMtsweni-Tsipane, who was succeeded as provincial premier by fellowANC member Mandla Ndlovu, was elected by the Governmentof National Unity (GNU) as the new chairperson of the NationalCouncil 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 powerstation province. These are fair assessments, given the number ofcoal mines and coal-fired power stations the province hosts.Of course, Mpumalanga is also the province where six of the ninegates are located that allow access to the Kruger National Park, oneof South Africa’s greatest tourism assets.Stainless steel, gold, chemicals, dairy and beef, agriculture in manyvarieties, huge forestry plantations and processing plants – these arealso distinctive characteristics of the “Place of the Rising Sun”.The sun is a great source of energy, but for Mpumalanga, it iswind power that is in full flow. The South African Wind EnergyAssociation (SAWEA) published a “Winter Energy Outlook” inMay 2024 in which it noted that South Africa now has wind powercapacity of 2GW, potentially powering approximately 3.6-millionhouseholds annually.Two major projects, one in Mpumalanga and one on behalf ofcompanies that will use green power in the province, are highlightedin the SAWEA document: Seriti Green’s Ummbila Emoyeni windfarm in Mpumalanga, which will generate 155MW as part of theproject’s initial phase of a broader 900MW renewable energy cluster,and the Impofu cluster of wind farms in the Eastern Cape whichwill generate a combined 336MW to supply two major industrialcompanies, Sasol and Air Liquide. These projects bring a combined491MW and R13.5-billion investment.The country’s wind project development pipeline currently standsat 32GW, and with Mpumalanga now joining the ranks of provincesoffering wind farms, that pipeline is sure to grow.These and other renewable energy projects will not only providepower but also help the province and the country along the road toa cleaner, more environmentally friendly economy.34 | Service magazine
provincial focusSManyeleti Nature Reserve.In pursuit of that goal, the Provincial Government of Mpumalangahas established the Mpumalanga Green Cluster Agency to bringtogether government, academia and industry to create theenvironment for businesses to develop in a green economy.The Cluster, an initiative of the Mpumalanga Department ofEconomic Development and Tourism with the support of GreenCapeand the Deutsche Gesellschaft for Internationale Zusammenarbeit(GIZ), has joined the International Cleantech Network, a group thathas 15 000 businesses affiliated to it across the globe.National utility Eskom is also moving into the new era throughthe announcement of 18 winning bids from independent powerproducers (IPPs) for renewable projects on Eskom land, 4 000haof which the utility has made available for this first phase. Eskomowns 36 000ha in the province. A total of 1 800MW will becomeavailable to the grid and it will be cheaper to transmit becausethe solar or wind plants will be right next to the existing Eskomtransmission lines.A Mine Water Coordinating Body (MWCB) has successfullybeen launched to help manage the after-effects of the closure ofmines and power stations. Many of Mpumalanga’s coal-fired powerstations are either in the process of being closed or will shortly beshut down and the same is true of some coal mines that have reachedthe end of their lives. Eskom, together with mining houses Exxaro,Glencore and Thungela Resources, formed the MWCB to addressenvironmental and socioeconomic challenges that might arise.Issues such as water also fall under the ambit of a broader mineindustryrelated coalition known as the Impact Catalyst which hasbeen launched in Mpumalanga.Investment optionsSeveral infrastructure investment projects in the tourism sectorhave been put forward by the Mpumalanga Economic GrowthAgency (MEGA). There is a special focus on BRICS countries andthe province has welcomed more than one new flight to KrugerMpumalanga International Airport since 2022, including Safair andthe tourist division of Lufthansa, Eurowings Discover.In the Nkangala District Municipality, a public-private partnershipis due to deliver a hotel and conference centre in the town ofMiddelburg in the Steve Tshwete Local Municipality. This followsthe opening of a Safari Hotel by Radisson in Hoedspruit, on theedge of the Kruger National Park.Elsewhere, mining and timber companies are making largeinvestments in increased production or in extending the life ofmines. A major concern for provincial planners is to diversify theeconomy and to grow the manufacturing sector.The Mpumalanga Economic Growth and Development Path(MEGDP) identifies beneficiation, agro-processing and thedevelopment of value chains as priorities. Various industrial parksare planned which will focus on agriculture and forestry, mining andmetals and petrochemicals. An International Fresh Produce Marketin Nelspruit and the planned Nkomazi Special Economic Zone areother priorities.Steel and associated manufacturing remains one of the province’sstrong suits and Mpumalanga has rich and varied mineral resourcesand fertile soil that support diverse farming operations, agroprocessingand forestry. The province also hosts large companies inthe manufacturing sector such as Middelburg Ferrochrome and theManganese Metal Company.The province’s rich agricultural produce is used by companiessuch as McCain, Nestlé and PepsiCo and there are also pulp andpaper plants (Sappi and Mondi), with PG Bison greatly increasingits production capacity at its Mkhondo particle board plant after twoinvestment injections of R600-million (on a press and forming line)and R560-million (on a front-end dryer).York Timbers is another forestry company and the sugar mills andrefinery of RCL Foods (formerly TSB Sugar) along with fertiliserfacilities and textile manufacturing concerns are all contributors tothe provincial economy.The southern half of the eastern limb of the platinum-richBushveld Igneous Complex runs south towards the towns ofLydenburg and Machadodorp. Deposits of chromite, magnetite andvanadium in this area are the basis of the ferro-alloy complex inWitbank-Middelburg and Lydenburg.The town of eMalahleni is the centre of the coal industry. Otherminerals found in the province include gold, platinum groupminerals, chromite, zinc, cobalt, copper, iron and manganese.Middelburg is home to Columbus Stainless, South Africa’s onlyproducer of stainless steel, and several big engineering works. It isabout 130km from Pretoria and less than three hours’ drive from theMalelane Gate of the Kruger National Park.The Kruger National Park remains the province’s most-visited assetbut the decision by UNESCO to afford World Heritage Site statusto the Makhonjwa Mountains near Barberton will boost geologicaltourism to the province and supports the efforts of the province todiversify its offerings. Major projects to improve tourist experiencesare underway at the Graskop Gorge (where a transparent lift takestourists into the depths of the gorge), a Skywalk is to be built at God’sWindow and a cable car is planned for Three Rondavels. SSudwala Caves.Service magazine | 35
