Mpumalanga Business 2018-19 edition

MPUMALANGA
BUSINESS
2018/19 EDITION
THE GUIDE TO BUSINESS AND INVESTMENT
IN MPUMALANGA PROVINCE
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MPUMALANGA

SASOL SECUNDA OPERATIONS
The core of Sasol’s Southern African Operations
Sasol is an international integrated chemicals and energy company. Through our
talented people, we use selected technologies to safely and sustainably source,
produce and market chemical and energy products competitively to create superior
value for our customers, shareholders and other stakeholders.
The company's Secunda Operations are the core of Sasol's Southern African Operations,
producing a wide range of petroleum products including diesel, petrol and jet fuel, as well
as chemical products which include ethylene, propylene and ammonia value chains.
The operations contribute to job creation, sustainable development and security of supply
in chemicals and energy. The site is host to the following entities: Sasol Mining, Secunda
Synfuels Operations, Secunda Chemicals Operations, Sasol Energy and Group Technology.
Sasol Mining operates ve coal mines in Mpumalanga that supply feedstock for the
Secunda Synfuels Operations complex. The coal is mainly used as gasication feedstock
and to generate electricity. Sasol Mining also exports coal from its Twistdraai Export Plant
to international power generation customers. As some of these mines are approaching the
end of their useful lives, new developments are underway to ensure continued supply
through the company's Mine replacement programme.
Secunda Synfuels Operations operates the world's largest coal-to-liquid manufacturing
facility, producing synthesis gas (syngas) through coal gasication and natural gas
reforming. The operating hub uses proprietary technology to convert syngas into
synthetic fuel components, pipeline gas and feedstock for producing chemicals.
Secunda Chemicals Operations is a large-scale integrated chemical product
manufacturing facility that produces and adds further value to the Sasol chemicals value
chains. Secunda Chemicals Operations also provides Sites Services, Infrastructure
Maintenance and Product Logistics Services for the Secunda site.
The Energy Business is key to Sasol's growth aspirations inside and outside South Africa,
manages the marketing and sales of all Sasol’s oil, gas and electricity products in Southern
Africa.
Group Technology manages Sasol's research and development, technology innovation
and management, engineering services and capital project management portfolios. The
function contributes towards Sasol's fuels and chemicals businesses to maintain growth
and sustainability through appropriate technological solutions and services.
As an active corporate citizen, Sasol invests meaningfully in communities close to its
operations with the main objective of sustainably contributing to the broader socioeconomic
development of the Mpumalanga province as well as South Africa.

For more information visit www.sasol.com.

CONTENTS
CONTENTS
Mpumalanga Business 2018/19 Edition.
Introduction
Foreword6
A unique guide to business and investment in Mpumalanga.
Mpumalanga Economic Growth Agency (MEGA) 12
Driving trade and investment in Mpumalanga.
Special features
Regional overview 8
A new World Heritage Site will boost regional tourism.
Investment incentives 16
A range of incentives are available to investors, companies,
entrepreneurs and co-operatives.
Establishing a business 18
South Africa has eased the barriers to doing business for
locals as well as international companies and individuals.
Mpumalanga’s major projects 20
Mpumalanga’s mega projects aim to attract investors in
a wide range of sectors.
Economic sectors
Agriculture and agri-processing 30
Macadamia nut production is expanding every year.
Mining33
The provincial government may start a mining company.
Forestry and paper 38
Sustainable resource management is a priority for timber
companies.
Oil and gas 40
A natural gas pipeline runs to Mpumalanga’s Special
Economic Zone.
MPUMALANGA BUSINESS 2018/19
2

CONTENTS
Water44
Nearly R2-billion is to be spent on bulk water and sanitation.
Manufacturing48
Highveld steel works lives again as an industrial park.
Transport and logistics 50
The Moloto Corridor is a key regional route.
Tourism52
A famous old bridge is the setting for the Kruger National
Park’s newest luxury accommodation.
Banking and financial services 54
All the major banks have agricultural divisions.
Development finance and SMME support 56
A small loan can make a big difference.
Education and training 58
The University of Mpumalanga is expanding.
Government
Mpumalanga Provincial Government 60
An overview of the Mpumalanga provincial government
departments.
Mpumalanga Local Government 61
An overview of Mpumalanga municipalities.
References
Sector contents 28
Index64
Maps
Mpumalanga municipal map. 62
ABOUT THE COVER:
Credit: Sasol. The Sasol Octene plant. The Sasol complex
at Secunda is one of the most significant features of the
Mpumalanga economy.
MPUMALANGA BUSINESS 2018/19 4

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FOREWORD
Mpumalanga Business
A unique guide to business, investment and tourism
in Mpumalanga.
The 2018/19 edition of Mpumalanga Business is the ninth issue of
this highly successful publication that since its launch in 2008
has established itself as the premier business and investment
guide for the province.
Mpumalanga has several investment and business opportunities
in a wide range of sectors. In addition to the regular articles providing
insight into each of the key economic sectors of the province, there
are special features on major projects in Mpumalanga and informative
articles on what incentives are available to investors and how to establish
a business in South Africa. The Mpumalanga Economic Growth Agency
(MEGA) outlines in this journal what lies in store for potential investors
in the province.
To complement the extensive local, national and international
distribution of the print edition, the full content can also be viewed
online at www.mpumalangabusiness.co.za. 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 as
well as our flagship South African Business title.
Chris Whales
Publisher, Global Africa Network Media
Email: chris@gan.co.za
CREDITS
Publisher: Chris Whales
Publishing director: Robert Arendse
Editor: John Young
Online editor: Christoff Scholtz
Art director: Brent Meder
Design: Tyra Martin
Production: Lizel Olivier
Ad sales: Sydwell Adonis, Joseph
Gumbo, Gavin van der Merwe,
Sam Oliver, Gabriel Venter,
Siyawamkela Sthunda, Vanessa
Wallace, Jeremy Petersen, Shiko
Diala and Reginald Motsoahae
Managing director: Clive During
Administration & accounts:
Charlene Steynberg and
Natalie Koopman
Distribution & circulation
Manager: Edward MacDonald
Printing: FA Print
DISTRIBUTION
Mpumalanga Business is distributed internationally on outgoing
and incoming trade missions; through the Mpumalanga
Economic Growth Agency (MEGA); at top national and international
events; through the offices of foreign representatives in
South Africa; as well as nationally and regionally via chambers
of commerce, tourism offices, trade and investment agencies,
airport lounges, provincial government departments, municipalities
and companies.
Member of the Audit Bureau of Circulations
PUBLISHED BY
Global Africa Network Media (Pty) Ltd
Company Registration No: 2004/004982/07
Directors: Clive During, Chris Whales
Physical address: 28 Main Road, Rondebosch 7700
Postal address: PO Box 292, Newlands 7701
Tel: +27 21 657 6200 | Fax: +27 21 674 6943
Email: info@gan.co.za | Website: www.gan.co.za
ISSN 2222-3274
COPYRIGHT | Mpumalanga Business is an independent publication
published by Global Africa Network Media (Pty) Ltd. Full copyright to
the publication vests with Global Africa Network Media (Pty) Ltd. No part
of the publication may be reproduced in any form without the written
permission of Global Africa Network Media (Pty) Ltd. .
PHOTO CREDITS | Pictures supplied Anglo American Coal, Artographers/
Graskop Gorge Lift Company, Barberton Makhonjwa Mountains Lands
World Heritage Site Project (BMML), Columbus Stainless, Chris Kirchoff/
Brand SA, Federale Stene, Highveld Industrial Park, MEGA, iStock, Raubex,
Sasol, SA Tourism, Thebe Tourism Group, TWK Agri.
MPUMALANGA BUSINESS 2017/18
6
DISCLAIMER | While the publisher, Global Africa Network Media (Pty)
Ltd, has used all reasonable efforts to ensure that the information contained
in Mpumalanga Business is accurate and up-to-date, the publishers
make no representations as to the accuracy, quality, timeliness, or
completeness of the information. Global Africa Network will not accept
responsibility for any loss or damage suffered as a result of the use of or
any reliance placed on such information.

A REGIONAL OVERVIEW OF
MPUMALANGA
A new World Heritage Site will boost regional tourism.
By John Young
The decision by UNESCO to afford World Heritage
Site status to the Makhonjwa Mountains
near Barberton will boost geological
tourism to the province and supports the
efforts of the province to diversify its offering. Major
projects to improve tourist experiences are underway
at the Graskop Gorge (where a transparent lift takes
tourists into the depths of the gorge), a skywalk is to
be built at God’s Window and a cable car is planned
for Three Rondavels.
The international body’s decision has also had the
effect of expanding the curriculum at the relatively
new University of Mpumalanga. On the basis of the
UNESCO ruling, UMP will offer geology as part of a BSc
in 2019, to supplement existing courses in education,
agriculture and hospitality.
Several investment projects aimed at providing
infrastructure in the tourism sector have been put
forward by the Mpumalanga Economic Growth
Agency (MEGA). Mpumalanga hosted the 2017
National World Tourism Day in September, an event
which was intended to move an already healthy economic
sector into an even bigger creator of wealth
and jobs. Heritage and cultural tourism are in the
spotlight because Mpumalanga is already a leader
in nature reserves and parks. There is a special focus
on BRICS countries and provincial authorities are investigating
a tourism airlift route between Moscow
and Mpumalanga.
Mpumalanga has rich and varied mineral resources
and fertile soil that supports diverse farming operations.
South Africa’s major power stations, three of
which are the biggest in the southern hemisphere,
are in Mpumalanga. The building of the new Kusile
power station is one of the biggest infrastructure
projects in the country’s history.
MPUMALANGA BUSINESS 2018/19 8

SPECIAL FEATURE
The province also hosts large companies in the
manufacturing sector, with internationally renowned
firms such as Sasol (pictured below, mining, synthetic
fuels and chemicals) and Xstrata (ferrochrome) having
large operations in the province. Columbus Stainless
in Middelburg is a major producer of stainless steel,
while Middelburg Ferrochrome, Thos Begbie and
the Nelspruit-based Manganese Metal Company are
among other important heavy industrial companies.
The province’s rich agricultural produce is used
by companies such as McCain, Nestlé and PepsiCo
and there are also pulp and paper plants (Sappi and
Mondi), fertiliser facilities and textile manufacturing
concerns. The decision by Sappi to start producing
dissolving wood pulp at its Ngodwana Mill has significantly
increased the manufacturing capacity of
the province. York Timbers is a leading forestry company
and the sugar mills and refinery of RCL Foods
(formerly TSB Sugar) are large contributors to the
provincial economy.
Sasol, the integrated oil, gas and chemicals
company, runs several plants at Secunda. Products
manufactured at the complex include synthetic fuel,
petroleum, paraffin, jet fuel, creosote, bitumen, diesel
and lubricants. The primary feedstock for syntheticfuel
production is coal, and the plant is in the heart
of Mpumalanga’s coalfields.
More than 80% of South Africa’s coal is sourced
in Mpumalanga, with the town of Emalahleni
(Witbank) being the centre of the industry. Other
minerals found in the province include gold,
Platinum Group Metals, chromite, zinc, cobalt,
copper, iron and manganese.
The southern half of the eastern limb of the
platinum-rich Bushveld Igneous Complex runs south
towards the towns of Lydenburg and Machadodorp.
Deposits of chromite, magnetite and vanadium in
this area are the basis of the ferro-alloy complex in
Witbank-Middelburg and Lydenburg. Nkomati Mine
is South Africa’s only pure nickel operation.
Beneficiation of minerals and agricultural
produce
The Nkomazi Special Economic Zone and the
International Fresh Produce Market are two major
initiatives which aim to drive economic growth,
boost value addition within the province and create
jobs. A major goal of the provincial government’s
Mpumalanga Economic Growth and Development
Path (MEGDP) is to expand the industrial base of
the provincial economy. The focus is on beneficiation,
agri-processing and value-chain development.
These projects are the subject of a separate article
elsewhere in this publication.
The biggest companies in Mpumalanga’s most
significant sectors have been investing heavily in
infrastructure and operations. Global energy and
chemicals company Sasol regularly spends tens
9 MPUMALANGA BUSINESS 2018/19

SPECIAL FEATURE
of millions on upgrades and improvements at its
Secunda complex. The Sasol Synfuels refinery is the
only commercial coal-to-liquid fuel plant in the world
and constitutes a key component in South Africa’s
oil and gas sector. In July 2017 Sasol announced that
the synfuel plant produced a record annual output.
Sasol Mining is also very active in the province:
just three projects with which it is currently engaged
are valued at more than R8-billion. Exxaro Resources
is investing R3.8-billion in a new mine at Belfast.
Another global giant, Sappi, has invested heavily
in the conversion of its massive Ngodwana Mill and
other companies in the paper and forestry field such
as Mondi and York Timbers make large contributions
to the province’s economic growth.
The restarting of the Evraz Highveld steel mill
in 2017 was particularly good news, after the
company went into business rescue two years
before. ArcelorMittal South Africa is supplying
feedstock to the mill and has an option to purchase.
However, operations will be reduced significantly,
whatever option is pursued. This has opened up
an opportunity on the property on which the steel
mill operated. It has been rebranded the Highveld
Industrial Park and is inviting manufacturers,
distributors and commercial enterprises to set
up shop in a well-resourced area with excellent
infrastructure and logistics links.
The Provincial Government of Mpumalanga has
been talking to several foreign countries about investments
in the province. An assembly plant for
Columbus Stainless runs the only stainless-steel mill
in Africa.
Minsk Tractor Works is one of the outcomes of this
activity, and several agreements relating to training
and trading have been signed. Russia, Belarus,
China and Oman are some of the countries that
Mpumalanga is engaged with.
Overseeing infrastructure development in the
province is the responsibility of the Department
of Public Works Roads and Transport, which must
ensure that various departments’ projects are
coordinated. When it comes to major projects, a
new unit will be established in the Office of the
Premier, the Provincial Project Management Unit.
A large investment is being made on the railways
that run to and through Mpumalanga. This includes
upgrading the commuter railway linkages to the
province from the province of neighbouring
Gauteng and building new railway lines to transport
coal through Swaziland and on to either Richards Bay
or Maputo in Mozambique.
Information and Communications Technology
(ICT) is another form of infrastructure that has been
receiving investment in recent times. A provincial
ICT Strategy has been developed to coordinate and
implement steps to improve ICT performance in
the province.
Geography
The Drakensberg escarpment sharply divides the
western grasslands at high altitude (Highveld) and
the subtropical component to the east, the Lowveld.
The central region of the province is mountainous,
with dramatic landscapes presenting exciting vistas
for visitors. The Lebombo Mountains rise in the east.
The southern and northern Highveld regions
produce large quantities of field crops such as barley,
soybeans, maize, grain and sorghum. Potatoes also
flourish in this area.
Most of the province receives summer rainfall,
often via thunderstorms. Frost is common on the
Highveld but is almost absent in the subtropical
regions where fruit, nuts and citrus thrive. Differences
in temperature and rainfall between the Highveld
and Lowveld can be considerable. One of the fastest
growing agricultural sectors is macadamia nuts. These
are cultivated in the Lowveld and are exported in ever-
MPUMALANGA BUSINESS 2018/19
10

SPECIAL FEATURE
growing volumes. The Nelspruit
district in the Lowveld is South
Africa’s second-biggest producer
of citrus fruit. The Graskop Gorge
Lift Company has built a dramatic
way to view the “Edge of the
Lowveld” (pictured).
Large parts of the province
are in the so-called Middleveld
comprising high-plateau grasslands.
Forestry operations are
found in central and southeastern
Mpumalanga, but the
heart of this important industry
is around Sabie in the east. The
Mpumalanga forestry sector is
one of the most important in
the country: 11% of the total land
area of Mpumalanga is covered
either by plantations or natural
forests. Large sugar operations
are found in the south-east of
the province.
The province has excellent
roads and railway connections
and is well served by airports,
airstrips and heliports. The Kruger
Mpumalanga International Airport
and Hoedspruit Airport are the
province’s two main airports.
The Maputo Development
Corridor is a transportation
corridor comprising road, rail,
border posts, port and terminal
facilities, running from
Pretoria in Gauteng through
Mpumalanga to the Port of
Maputo in Mozambique. The
corridor supports high volumes
of cross-border freight services.
Industry and tourism benefit
from the concentration of resources
and ease of transportation.
This international initiative
emphasises Mpumalanga’s
excellent location as a logistics
and transport hub.
11 MPUMALANGA BUSINESS 2018/19

MPlJM/\1 /\
PLACE OF
THE lIN
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IJ Mpumalanga Economic Growth Agency
Tel: +27 (0) 13 755 6328
Fax: 013 755 1756
eMail: info@mega.gov.za
www.mega.gov.za
MPUMALANGA BUSINESS 2018/19

The provincial economy is highly diverse with signicant activity in mining,
agriculture, stainless-steel production, petrochemicals, pulp and paper,
manufacturing and tourism. Mpumalanga's position and resources make it a
valuable transport and logistics hub.
In addition to good infrastructure, abundant natural resources and fertile soils, the
province also boasts great scenic beauty, making it a desirable place in which to live
and work. The Mpumalanga Economic Growth Agency (MEGA) facilitates investment
in the province and is always keen to talk to potential investors.
Maputo Development Corridor
The Maputo Development Corridor (MDC) is a
Spatial Development Initiative linking Gauteng,
Mpumalanga, the Nkomazi SEZ and the Port
of Maputo in Mozambique. The MDC incorporates
road, rail, the SEZ, border posts, port
and terminal facilities along one of the most
industrialised strips in Southern Africa.
The longest part of the corridor runs through
Mpumalanga Province. Infrastructure along the
corridor has been upgraded and it provides
investors and exporters with good access to
the markets of East Africa, the Indian Ocean rim
and East Asia. The MDC forms part of a greater
transport axis that seeks to link the Atlantic
and Indian oceans via Southern Africa and a
network of corridors exists in the region.
Special Economic Zone
The Nkomazi Special Economic Zone (SEZ) is
positioned on the Maputo Development
Corridor in the border town of Komatipoort
(which straddles Mpumalanga Province and
Mozambique).
The SEZ covers numerous opportunities for
those with export-oriented businesses -
bonded warehouse, distribution centre,
container yard, truck stop and petrol depot.
Other identified opportunities in the SEZ
include mining services, mineral beneficiation,
agro-processing (which could leverage the
provincial citrus and sugar industries) and
activities relating to import, distribution and
local manufacture of automobiles. SEZs are a
key initiative of the South African government
and the Department of Trade and Industry
(the dti) is making a package of tax incentives
available to qualifying companies located in
approved SEZs.
SOUTH AFRICA
MIDDELBURG
LYDENBU
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KOMATIPOORT /
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MPUMALANGA ECONOMIC
GROWTH AGENCY
The Mpumalanga Economic Growth Agency (MEGA) is the official
Economic Development Agency of the Provincial Government
of Mpumalanga.
The Maputo Development Corridor (MDC) is a Spatial Development Initiative linking Gauteng,
Mpumalanga, the Nkomazi SEZ and the Port of Maputo in Mozambique. The MDC incorporates road, rail,
the SEZ, border posts, port and terminal facilities along one of the most industrialised strips in
Southern Africa.
The longest part of the corridor runs through Mpumalanga Province. Infrastructure along the corridor has
been upgraded and it provides investors and exporters with good access to the markets of East Africa, the
Indian Ocean rim and East Asia. The MDC forms part of a greater transport axis that seeks to link the Atlantic
and Indian oceans via Southern Africa and a network of corridors exists in the region. MEGA offers a range of
services relating to trade promotion, investment, funding and property management.
ti
Population:
4.1 million
0
Area covered
83 000km 2 .
Trade promotion
Export and import enquiries
Market information and contacts
Advice on customs duties and foreign trade documentary requirements
Market research
Information on regional trade issues and preferential trade agreements
Organising foreign trade and investment
Missions and exhibitions
Providing counselling and training to SMMEs regarding export issues
Advising local business on technical trade issues
Promoting and facilitating provincial access to Export Marketing and Investment Assistance Scheme
Promoting and facilitating provincial access to the Sector Specific Assistance Scheme (SSAS)
Investment promotion
Targeting investors via the media, the MEGA website, incoming and outgoing delegations, foreign
embassies, exhibitions, chambers of commerce and municipalities
Facilitating feasibility studies
Providing investment information, intelligence and research
Assisting with obtaining factory space and/or land
Advising on commercial statutory requirements
Facilitating joint ventures via the identification of local partners
Providing opportunities for emerging B-BBEE businesses
Assisting in identifying potential suppliers of raw materials and feedstock
Assisting with the lodging of investment incentive claims with the dti
MPUMALANGA BUSINESS 2018/19

Funding
MEGA funds SMMEs and businesses that specialise
in agro-processing, mining, energy, manufacturing,
construction, trade, transport, forestry,
services, government and community. Preference
is given to businesses owned by historically
disadvantaged individuals.
Property management
MEGA owns and manages a number of industrial
and commercial properties around the province.
The Property Development and Management
Programme is geared to build and maintain a
property portfolio that can:
• Generate income
• I lelp to achieve organisational sustainability
• ,acilitate employment creation
Our commitment
MEGA is focused on customer needs and provides
innovative solutions with a high level of service.
Don't hesitate to make contact if you are interested
in exploring some of the opportunities that
Mpumalanga offers.
Cor.1tact ir.1fo
Mega Head Office
ABSA Square Building, 20 Paul Kruger Street,
Mbombela, 1200, Mpumalanga, South Africa
Postal Address: PO Box 5838, Mbombela, 1200
Tel: +27 13 752 2440
eMail: trade-invest@mega.gov.za
[kandustria Office (Bronkhorstspruit)
215 Iridium St, Ekandustria, Bronkhorstspruit, 1028
lei:+ 27 13 933 3421
eMail: phineas.makgopela@mega.gov.za
Secunda Office
Office A, Secunda Town Centre, Rautenbach
Street, Secunda, 2302
Tel: +27 (0) 17 634 8458
cMail: nimrode.dlamini@mega.gov.za
Siyabuswa Office
Siyabuswa Shopping Centre, Main Road, Siyabuswa,
Dr JS Moroka Rural, 0472
lei: +27 13 973 1049
eMail: lazarus.mahlangu@mega.gov.za
Johannesburg Office
33 Scott Street,Waverley, Johannesburg,
South Africa
lei: +27 83 469 6899
cMail: liying.dong@mega.gov.za
The Mpumalanga Economic Growth Agency
(MEGA) facilitates investment in the
province and is always keen to talk to
potential investors.
//

South African
investment incentives
The South African government, particularly the Department of Trade and Industry,
has a range of incentives available to investors, existing companies,
entrepreneurs and co-operatives across many sectors.
South Africa wishes to diversify its economy
and incentives are an important part of
the strategy to attract investors to the
country. The Department of Trade and
Industry (the dti) is the lead agency in the incentives
programme, which aims to encourage local and
foreign investment into targeted economic sectors,
but the Industrial Development Corporation
(IDC) is the most influential funder of projects across
South Africa.
There a variety of incentives available and these
incentives can broadly be categorised according to
the stage of project development:
• Conceptualisation of the project –
including feasibility studies and research
and development (grants for R&D and
feasibility studies, THRIP, Stp, etc)
• Capital expenditure – involving the creation
or expansion of the productive capacity
of businesses (MCEP, EIP, CIP, FIG, etc)
• Competitiveness enhancement –
involving the introduction of efficiencies
and whetting the competitive edge of
established companies and commercial
or industrial sectors (BBSDP, EMIA,
CTCIP, etc)
MPUMALANGA BUSINESS 2018/19 16

SPECIAL FEATURE
• Some of the incentives are sector-specific, for
example the Aquaculture Development and
Enhancement Programme (ADEP), Clothing
and Textile Competitiveness Improvement
Programme (CTCIP) and the Tourism Support
Programme (TSP).
Manufacturing
Key components of the incentive programme are
the Manufacturing Incentive Programme (MIP) and
the Manufacturing Competitiveness Enhancement
Programme (MCEP). The initial MCEP, launched in
2012, was so successful that it was oversubscribed
with almost 890 businesses receiving funding. A
second phase of the programme was scheduled
for launch in 2016. The grants are not handouts
as the funding covers a maximum of 50% of the
cost of the investment, with the remainder to be
sourced elsewhere.
The Enterprise Investment Programme (EIP)
makes targeted grants to stimulate and promote
investment, BEE and employment creation in the
manufacturing and tourism sectors. Aimed at smaller
companies, the maximum grant is R30-million.
Specific tax deductions are permissible for larger
companies investing in the manufacturing sector
under Section 12i of the Income Tax Act.
Other incentives
Other incentives available to investors and existing
businesses in more than one sector include the:
• Technology and Human Resources for Industry
Programme (THRIP)
• Support Programme for Industrial Innovation
(SPII)
• Black Business Supplier Development Programme
(BBSDP), which is a cost-sharing grant offered to
black-owned small enterprises
• Critical Infrastructure Programme (CIP) that covers
between 10% and 30% of the total development
costs of qualifying infrastructure
• Co-operative Incentive Scheme, which is a 90:10
matching cash grant for registered primary
co-operatives
• Sector Specific Assistance Scheme, which is a
reimbursable 80:20 cost-sharing grant that can
be applied for by export councils, joint action
groups and industry associations.
Incentives for SMMEs
A lot of emphasis is placed on the potential role of
small, medium and micro enterprises in job creation
and a number of incentives are designed to promote
the growth of these businesses. These include:
• Small Medium Enterprise Development
Programme (SMEDP)
• Isivande Women’s Fund
• Seda Technology Programme (Stp).
• Seda is the Small Enterprise Development Agency,
an agency of the Department of Small Business
Development that exists to promote SMMEs.
Trade-related incentives
The Export Marketing and Investment Assistance
(EMIA) Scheme includes support for local businesses
that wish to market their businesses internationally
to potential importers and investors. The scheme
offers financial assistance to South Africans travelling
or exhibiting abroad as well as for inbound potential
buyers of South African goods.
ONLINE RESOURCES
Department of Trade and Industry:
www.thedti.gov.za
Industrial Development Corporation:
www.idc.co.za
Mpumalanga Economic Growth Agency:
www.mega.gov.za
Official South African government incentive
schemes: www.investmentincentives.co.za
17
MPUMALANGA BUSINESS 2018/19

Establishing a business in SA
South Africa has eased the barriers to doing business in South Africa for
locals as well as international companies and individuals.
South Africa has a sophisticated legal,
regulatory and banking system. Setting
up a business in South Africa is a relatively
straight-forward process with assistance
being offered by organisations such as the Department
of Trade and Industry and provincial investment
agencies like the Mpumalanga Economic Growth
Agency (MEGA).
South African law regulates the establishment
and conduct of businesses throughout the country.
Tax, investment incentives, regulations governing
imports, exports and visas are uniform throughout
the country. The particular environment varies from
province to province with regard to the availability
of human and natural resources, the infrastructure
and support services, business opportunities and
the quality of life.
In this respect, MEGA can offer specific advice
about the business environment in the province.
Business is regulated by the Companies Act and
the Close Corporation Act, which cover accounting
and reporting requirements. Under new legislation,
no new Close Corporations can be created but CCs
can convert to companies.
Registration of company
The company must be registered with the
Comp anies and Intellectual Properties Commission,
(CPIC) in Pretoria within 21 days of the company being
started. There are a range of administrative procedures
that need to be fulfilled.
Bank account
A business bank account must be opened in the
company’s name with a bank in South Africa.
Registration with the receiver of revenue
• As a Provisional Taxpayer
• As a VAT vendor
• For Pay As You Earn (PAYE) income tax payable
on money earned by employees
• For Standard Income Tax on Employees
Registration with the Department of Labour
Businesses employing staff will have to contact the
Department of Labour regarding mandatory contributions
to the Unemployment Insurance Fund (UIF).
Register with Compensation Commissioner for
Compensation Fund: Files with the Compensation
Fund (in the Department of Labour) for accident
insurance (Workmen’s Compensation).
Registration with the local authority
Relevant only to businesses dealing in fresh
foodstuffs or health matters.
Other procedures
• Checking exchange control procedures (note
that non-residents are generally not subject to
exchange controls except for certain categories
of investment)
• Obtaining approval for building plans
• Applying for industry and export incentives
MPUMALANGA BUSINESS 2018/19 18

SPECIAL FEATURE
• Applying for import permits and verifying import
duties payable
• Registering as an exporter if relevant and applying
for an export permit
Business entities
There are a variety of forms which businesses can
take, including private and public companies,
personal liability companies, non-profit companies,
state-owned companies and even branches of
foreign companies (or external companies).
Branches of foreign companies fall under
Section 23 of the Companies Act of 2008 and are
required to register as “external companies” with
the CIPC. An external company is not required to
appoint a local board of directors but must appoint
a person resident in South Africa who is authorised
to accept services of process and any notices
served on the company. It must also appoint a
registered local auditor and establish a registered
office in South Africa.
Patents, trademarks and copyrights
Trademarks (including service marks) are valid for an
initial period of 10 years and are renewable indefinitely
for further 10-year periods. Patents are granted
for 20 years, normally without an option to renew.
The holder of a patent or trademark must pay an annual
fee in order to preserve its validity. Patents and
trademarks may be licensed but where this involves
the payment of royalties to non-resident licensors,
prior approval of the licensing agreement must be
obtained from the dti. South Africa is a signatory to
the Berne Copyright Convention.
Permits for foreign nationals
Work permits
In considering whether or not to grant a work
permit, the Department of Home Affairs will first
evaluate the validity of the offer of employment
by conducting a number of checks to confirm the
following:
• Has the Department of Labour been contacted?
• Has the position been widely advertised?
• Is the prospective employer able to prove that
he or she has tried to find a suitably qualified
local employee prior to hiring a foreigner?
• Is the prospective employee appropriately qualified
and do they have the relevant experience?
Business permits
Foreign nationals who wish to establish their own
business or a partnership in South Africa must,
apart from having sufficient funds to support themselves
and their family, be able to invest at least
R2.5-million in the business.
The funds must originate overseas, be transferable
to South Africa and belong to the applicant
(ie emanate from the applicant’s own bank
account). The business must also create jobs for
South African citizens. After six months to a year,
proof will have to be submitted that the business
is employing South African citizens or permanent
residents, excluding family members of
the employer.
Applications for work permits for self-employment
can only be lodged at the South African
Consulate or Embassy in the applicant’s country of
origin. The processing fee is US$186. The applicant
would also have to lodge a repatriation guarantee
with the consulate/embassy equivalent to the price
of a one-way flight from South Africa back to his or
her country of origin.
This guarantee is refundable once the applicant
has either left South Africa permanently or obtained
permanent residence. Any application for
an extension of a business permit may be lodged
locally. The processing fee per passport holder is
R425. Some countries also need to pay R108 per
return visa.
A list of countries to which this applies is
available from the Department of Home Affairs.
MEGA assists investors in applying for the
relevant work permits to conduct their business.
What would MEGA do for you?
MEGA will help new businesses by assisting in
project appraisal and packaging, putting investors
in touch with relevant agencies and government
departments, alerting investors to
investment incentives and setting up joint ventures
where required.
A full description of the services offered by
MEGA is reflected elsewhere in this publication.
19 MPUMALANGA BUSINESS 2018/19

SPECIAL FEATURE
Zoning in on fresh produce
Mpumalanga’s mega-projects aim to attract investors in a wide
range of sectors.
• Vast mineral resources, which
fire the province’s many
coal-fired power stations
and underpin the ferro-alloy
complex around Middelburg,
where Columbus Stainless runs
the only stainless-steel mill in
Africa.
Several large private-sector investment projects are under
way in Mpumalanga. These include the ongoing upgrades
and conversions at the Ngodwana Mill by Sappi (forestry
and paper) and the various plants of Sasol at Secunda (petrochemicals
and liquid fuels), mining ventures in the coal sector (Anglo
American coal, Sasol, Exxaro and Nkomati Anthracite are all spending
heavily) and tourism (Thebe Tourism Group has multiple projects).
These projects illustrate the diversity of the provincial economy which
has large concerns in the sectors mentioned above and others in segments
as different as stainless steel, sugar, ferro-alloys and potato chips.
A provincial plan intends to use these strengths to further develop
labour-intensive manufacturing industries and to encourage the development
and localisation of supply chains. To achieve this, two major
projects are being implemented:
• the Nkomazi Special Economic Zone
• the Mpumalanga International Fresh Produce Market.
Both big projects leverage the province’s main strengths. These
include:
• Unique location and logistical advantages: Maputo Development
Corridor; Moloto Corridor; borders with Mozambique and Swaziland;
major highways and rail links; proximity to South African industrial
heartland and large population of Gauteng Province
• Mpumalanga generates 80% of South Africa’s energy and several
pipelines run through the province
• Extraordinary agricultural riches, which can be exported or used
in agri-processing
Nkomazi Special
Economic Zone
The Nkomazi Local Municipality
has designated land for the SEZ
which will be established in terms
of the Special Economic Zones
Act of 2014 (Act 16 of 2014). The act
defines an SEZ as “geographically
designated areas of the country
that are set aside for specifically
targeted economic activities
and supported through special
arrangements and systems”.
Infrastructure at an SEZ
supports the targeted sectors and
attracts foreign investors with a
strong focus on beneficiation of
local produce or materials. Skills
transfer is another stated aim
behind the SEZ programme.
Situated in the border
town of Komatipoort, this
multi-sector SEZ is the axis of
economic integration between
the provinces of Mpumalanga,
Gauteng and Limpopo and the
neighbouring states of Swaziland
MPUMALANGA BUSINESS 2018/19 20

SPECIAL FEATURE
and Mozambique. The region is one of the most industrialised and
productive areas in Southern Africa and the Maputo Development
Corridor provides linkages west to the economic heartland of South
Africa and eastwards to the ports of Mozambique. Proximity to the
Mozambican port of Matola would support a dry port or logistics base.
The SEZ focus is on infrastructure and manufacturing: transport,
warehousing and logistics facilities, agri-processing, automotive support
platforms and infrastructure to support companies operating in
the mining and mineral sectors.
Options for investors include bonded warehouses, a distribution
centre, a container yard, truck stops and a petrol depot (with maintenance,
fitment, and repair facilities). Other opportunities include
phosphate for fertilisers, the production of ammonia and urea and
the beneficiation of fluorspar for downstream agri-chemicals and
fluorine production. Food processing and packaging for large retailers
is another option. Potential products to be made include subtropical
juice concentrate, lemon oil and lemon juice concentrate.
Mpumalanga International Fresh Produce Market
An International Fresh Produce Market (IFPM) is under construction
at Mbombela. To support the market, the Mpumalanga government
is establishing seven Agri-hubs to provide a stable supply of fresh
produce to the market. The 248ha site is in Mbombela, the provincial
capital. It is situated within the Maputo Development Corridor (MDC),
which is South Africa’s leading Spatial Development Initiative (SDI)
linking Mpumalanga, Gauteng Province and the Nkomazi Special
Economic Zone with the deep-water Port of Maputo in Mozambique.
Private investors are sought to be partners in building the top structure;
services are being laid on by the province.
The SEZ’s location enables access to the SADC market with 280-million
consumers, the EAC market with 140-million consumers and
preferential access to lucrative Asian and EU markets. The market will
serve farmers and customers from Mpumalanga, South Africa and
regional markets in Swaziland and Mozambique. The market will cater
for expected growth in the production of tropical and subtropical
crops and vegetables.
The potential is huge:
• Mpumalanga currently generates R950-million in turnover from
subtropical fruit. The sector employs about 13 000 people.
• The region exports more than 10-million cartons of avocadoes
every year.
A large proportion of South Africa’s grain, citrus, sugar and soft fruits
come from Mpumalanga. The province is one of the key exporters
of macadamia nuts, a subsector that is growing rapidly. The plan
intends for agri-processing in the
province to grow exponentially.
The tropical and subtropical
crops which thrive in
Mpumalanga include avocadoes,
bananas, citrus, ginger, granadillas,
guavas, litchis, macadamia
nuts, mangoes, papayas and
pineapples. Vegetables produced
are potatoes, tomatoes, pumpkins,
sweet corn, onions, sweet
potatoes, beetroot, carrots, green
peas, cauliflower, cabbage and
green beans.
The IFPM will provide trading
halls for fruit and vegetables, markets
for meat, fish, and flowers,
complementary cold-storage and
ripening facilities and pallet handling.
There will also be processing
facilities, an export hall and
bulk-breaking facilities for retail
outlets. There will be a customs
office and commercial services
such as banking and restaurants
will be available. A food bank is to
be established for NGOs.
Helping small-scale farmers
and co-operatives gain access to
new domestic and international
markets is among the aims of the
Fresh Produce Market.
21
MPUMALANGA BUSINESS 2018/19

SPECIAL FEATURE
Power stations like the Kendall Power Station produce fly ash as a byproduct. A beneficiation plant for
fly ash is an investment opportunity.
Infrastructure
The projected increase in platinum and chrome output in the
Steelpoort area at the border of Mpumalanga and Limpopo Provinces
is putting increasing strain on road and rail infrastructure. To address
infrastructure concerns, MEGA is now implementing the KUKA
Steelpoort Ropeway Ore Transporting Project which will act as a
means of transport of chrome and platinum ores from the mines to
the smelters.
The funding for all Ropeway Projects in Steelpoort area is likely to be
between R50-million and R350-million. The cost for the Lion Ropeway
Project is projected at R220-million. Aerial ropeways of over 100km
long can be constructed, consisting of a series of sections linked by
automatic transfer stations.
Manufacturing
Fly ash has become a problem for South Africa’s power utility Eskom
and it is selling some to cement manufacturers. The remainder is
buried or put in ash ponds. Fly ash is produced by coal-powered
power plants during the combustion of coal. The beneficiation of fly
ash in Mpumalanga, which houses most of Eskom’s power stations, is
becoming a lucrative economic opportunity. MEGA is seeking investors
to develop a fly ash beneficiation plant. The proposed plant would be
built in Emalahleni with an estimated cost of R17-million and the plant
size is projected at 500 tons per nine-hour production shift. Fly ash is
successfully used to enhance the quality and economy of concrete.
Other uses of fly ash include brickmaking, dam building and as a
cement extender during the manufacturing of cement.
Tourism
The province attracts over onemillion
tourists a year to the
natural wonders of the Bourke’s
Luck Potholes, God’s Window,
the Blyde River Canyon and the
Kruger National Park.
MEGA is seeking investors to
build an exclusive five-star hotel
and top-quality restaurant
located at the Bourke’s Luck
Potholes on the Highveld part
of Blyde River Canyon Nature
Reserve. There are also innovative
expansion plans for God’s
Window, a famous lookout point
on top of a 700m high cliff in the
Drakensburg Mountains overlooking
the Lowveld Escarpment
– one of Africa’s prime wildlife
and game reserves destinations.
MEGA is planning to build a “Sky
Walk” tourism attraction – an income
generating, cantilevered
glass walkway and viewing deck
suspended off the edge of the
God’s Window cliffs, giving 360°
panoramic views out and 700 metres
down through a glass floor.
MPUMALANGA BUSINESS 2018/19
22

Global Africa Network
Promoting business, trade and investment in SA’s nine provinces
www.gan.co.za
www.southafricanbusiness.co.za
www.easterncapebusiness.co.za
www.freestatebusiness.co.za
www.gautengbusinessguide.co.za
www.kwazulunatalbusiness.co.za
www.limpopobusiness.co.za
www.mpumalangabusiness.co.za
www.northerncapebusiness.co.za
www.northwestbusiness.co.za
www.westerncapebusiness.co.za
NETWORK MEDIA
Tel 021 657 6200
Email sales@gan.co.za
Web www.gan.co.za

FOCUS
Mpumalanga Stainless
Initiative
Columbus Stainless supports MSI to beneficiate
stainless steel.
Mpumalanga Stainless Initiative (MSI) was established
in 2001 and registered as a non-profit company on
24 December 1999. MSI is located in Middelburg, the home
of stainless steel and just a few kilometres from Columbus
Stainless (Pty) Ltd, Africa’s only producer of stainless steel flat products.
MSI has entrenched itself as the only technology-based business
incubator in the stainless steel sector that specialises in nurturing sustainable
small and medium-sized enterprises (SMEs) through stainless
steel. Columbus Steel has a vision of growing the economy through
stainless steel beneficiation.
This can be achieved through their mission of nurturing sustainable
SMEs and using their values of product innovation, service excellence
and integrity.
MSI is predominately targeting unemployed, struggling or dormant
stainless steel goods manufacturers who have work experience or are
running their businesses in the informal sector.
Assistance is also offered to graduates or entrepreneurs, who have
experience in manufacturing or engineering of stainless steel finished
products. One of the key objectives is also to assist people who have
an interest in starting a business and have the potential to create
employment opportunities for the community.
What MSI offers
MSI’s service offering centres on incubation services such as mentoring,
monitoring, evaluation and coaching.
We use shared infrastructure, technology and knowledge exchange
platforms to uplift SMEs in terms of:
• Legislative and governance compliance (SARS, CIPC).
• Linking the SME to funding and market networks like Columbus,
MEGA and other organisations.
• Financial management such as obtaining annual financial statements
and day-to-day invoicing.
• HR management such as assistance with recruitment of workers.
• Facility and technology access control. Gaining access to shared
machines to manufacture clients’ products.
• Operations and production management. On-time delivery of
quality products.
mpumalanga stainless initiative
• Quality management and
adherence to customer needs
and ISO9001.
• Design management,
ensuring compliance in terms
of patents, trademarks and
intellectual property (IP).
• Branding and helping to
create public awareness and
exposure for the product.
• Networking in terms of events,
workshops and expos.
The support generated through
the partnership with Columbus
Stainless (Pty) Ltd has allowed
small businesses to be showcased
in terms of procurement opportunities
and support services.
Active support
During the 2017/18 financial
year, Columbus supported MSI
SMEs to the value of R600 000
in procurement of manufactured
finished goods as well as
direct purchases of advanced
machines with the latest technology.
This was done through
Columbus Stainless’ Enterprise
and Supplier Development
programmes.
Columbus Stainless further
subsidised MSI in terms of operating
costs, personal protective
equipment, meeting
expenses and the training of
MPUMALANGA BUSINESS 2018/19
24

FOCUS
Solar drier manufactured by Madingoana Steel. Seen here is Jenny Nawa
from Feed a Child feeding vegetables to be dried in the feeder.
staff. Through the support given by Columbus Stainless a total of 12
jobs was created.
Additional support is given in terms of technical assistance, skills
development, quality assurance, networking platforms, events and
marketing for the benefit of the SMEs.
SME
Zovuya
Replica
JKHANG
Live TECH
Bailment
Golden Steel Engineering
APPLICATIONS:
Product
Stainless steel coaster sets, certificates and photo frames
for Columbus’ long-service award function.
Solar driers for Feed-A-Child. Laser-cut South America
stainless steel map.
Year-end gift steak pans for Columbus Stainless.
Carrols Café balustrades and stainless steel artistic trees.
Business card holders for Middelburg Chamber of
Commerce and Industry banquet gift.
Golf day trophies.
Applications for access to MSI services can be made by:
Tel: +27 (0)13 246 1528
Email: admin@mpstainless.co.za
Website: www.mpstainless.co.za
The road ahead sees
Columbus and MSI forging a
Service Level Agreement in
order to improve lead times
and the quality of goods
produced. MSI will also
continue to lobby for more
private sector involvement.
Columbus and MSI
urge all companies who
have a need for stainless
steel goods to involve MSI
and have custom-made
products made by SMEs.
This will help to grow
entrepreneurs, develop
skills and create jobs in our
community.
Partners
MSI is a member of the
Southern African Stainless
Steel Development
Association (SASSDA) and the
Southern African Technology
Business Technology
Incubation Association
(SABTIA).
Our stakeholders are
• Department of Small
Business Development
(DSBD) via the Small
Business Development
Agency (Seda) through
their Technology
Programme (STP)
• Mpumalanga Department
of Economic Development
and Tourism
• Steve Tshwete Local
Municipality
• Columbus Stainless (Pty)
Ltd.
25 MPUMALANGA BUSINESS 2018/19

ADVERTORIAL
Making it easier to do business with Nedbank
Whole-view Business Banking
Loderick Lubisi, Nedbank Provincial General Manager for Retail and
Business Banking for Mpumalanga, explains how Nedbank can help
business owners in the region.
on what’s most important to you – running your
business,’ says Lubisi.
In line with our new brand proposition encouraging
clients to see money differently, our Mpumalanga
agriteams are committed to providing key support,
as well as advisory and business services to all
roleplayers involved in the agrispace in both
provinces. We will share our financial expertise
and play a role in advancing profitable, sustainable
practices throughout the agricultural production and
consumption value chain.
There is good news for Mpumalanga
business owners and entrepreneurs seeking
a unique banking experience: Nedbank
Business Banking has business managers,
located across both provinces, specialising
in commercial industries as well as the
agricultural sector.
Lubisi says his team is ready to assist clients with
professional advice, industry-specific solutions
and a comprehensive range of financial products
and services.
‘At Nedbank Business Banking we believe that you
need a financial partner who not only understands
your circumstances and aspirations, but also provides
you with relevant solutions and a banking experience
that is hassle-free. This allows you to concentrate
We recognise that farmers today face many
challenges and that to remain competitive they
continually have to improve and adopt best practices
and new technologies.
‘We encourage you to see money differently with
Whole-view Business Banking’, says Lubisi.
‘We are also involved in a number of initiatives with
the public sector, ensuring that such partnerships
support provincial government goals in respect of job
creation and growing the economy,’ Lubisi concludes.
Should you be interested in taking your business to the
next level, please call Loderick Lubisi on
+27 (0)13 759 4910, send an email to
loderickl@nedbank.co.za or
visit www.nedbank.co.za.

ADVERTORIAL
Nedbank Business Bundle is a game changer
with savings and personalised services for
small enterprises
The new Business Bundle from Nedbank is a game changer for small
enterprises in Mpumalanga, offering the best value for money when
compared to rival offerings.
With the country’s challenging economic
environment, the Business Bundle not only
offers you personalised banking services,
but also critical tools to save – with up to
40% savings on monthly banking fees –
contributing directly to the bottomline at a
time when every cent counts.
In line with Nedbank’s new brand proposition to see
money differently, the Business Bundle resonates with
the bank’s commitment to do good by promoting
small enterprises.
‘As a bank for small businesses we are committed
to partnering with entrepreneurs to help grow their
businesses. As such, Nedbank is always looking at
ways in which we can help unlock the value of our
clients’ businesses. We support their business growth
journeys by providing practical tools to help them
run their businesses,’ says Loderick Lubisi, Nedbank
Provincial General Manager, Retail and Business
Banking for Mpumalanga.
‘Small businesses are the lifeblood of our economy.
Nedbank has, over the years, instituted various
interventions aimed at giving support to the smallbusiness
sector.’
Trust us to protect your business against
everyday risk
Stella Tedeschi, Regional Manager of Broker
Channels for Mpumalanga, says Nedbank
Insurance is not a one-size-fits-all business.
Nedbank Insurance has evolved into a business
that provides integrated insurance to individual
and business clients. Our offering comprises
comprehensive short-term insurance solutions,
life insurance solutions and investments.
Nedbank Insurance provides a comprehensive
offering of short-term products on behalf of
blue-chip insurers. Should you be interested in
expert advice on the type of cover that is exactly
right for your business needs, look no further.
Nedbank has a team of specialists ready to provide you with
information necessary to allow you to make an informed
decision. For more information call Stella Tedeschi on
+27 (0)12 436 7659, send an email to
stellat@nedbankinsurance.co.za,
or visit www.nedbank.co.za.
To see how Nedbank can help your small business reach its
goals call Loderick Lubisi on +27 (0)13 759 4910, send an
email to loderickl@nedbank.co.za or
visit www.nedbank.co.za/business.
Nedbank Ltd Reg No 1951/000009/06. Nedbank Ltd Reg Authorised No 1951/000009/06 financial
Authorised financial services services and registered and registered credit credit provider provider (NCRCP16).

KEY SECTORS
Overviews of the main economic sectors of
Mpumalanga
Agriculture 30
Mining 33
Forestry and paper 38
Oil and gas 40
Water 46
Manufacturing 48
Transport and logistics 50
Tourism 52
Banking and financial services 54
Development finance and SMME support
56
Education and training 58

OVERVIEW
Agriculture and agri-processing
Macadamia nut production is expanding every year.
Agriculture is responsible for about 3.4% of Mpumalanga’s
Gross Domestic Product (GDP). Fruits, nuts and vegetables
are a major contributor to the provincial and national export
basket and there is still scope for expansion in this sector,
both in terms of lands planted and downstream beneficiation.
Big companies cultivate maize, sugar, timber, vegetables, fruit and
tea on a large scale and are active in the raising of poultry and cattle.
Large commercial farmers account for the bulk of crop and livestock
production.
The Provincial Government of Mpumalanga is building an
International Fresh Produce Market as a means of stimulating agricultural
production. The intention is that this will lead to increased
volumes supplying domestic and international markets.
Each of the province’s districts will have Agri-parks and the
Department of Rural Development has set up Farmer Production
Support Units in two municipalities so far, Bushbuckridge and Nkomazi.
A feedlot has been built at Mzinti and a R20-million packhouse in
Bushbuckridge is almost ready for use.
Other interventions include the re-commissioning of the
Bushbuckridge poultry abattoir and farmer support to soya and maize
farmers to supply the Lekwa Oilseed Crushing Plant in Standerton.
The Nooitgedacht Research Farm is being upgraded and the
possibility of reopening an agricultural college is being considered.
Marapyane Agricultural College, which is situated in the Dr JS Moroka
Municipality in Nkangala, would allow for a formal setting for the
transfer of skills.
SECTOR INSIGHT
Halls and Westfalia are two
of South Africa’s biggest
agri-businesses.
Crops
Macadamia nuts have grown in
popularity exponentially in recent
years. About 4 000 hectares
of new trees is added each year
across South Africa, with most of
that in Mpumalanga and neighbouring
Limpopo. The vast majority
of the nuts are exported,
with about 40% going to China.
There are about 450 farmers
growing the nuts and there are 14
cracking factories in South Africa.
The sector employs about 4 500
people, of which 1 500 are permanent
employees. Barberton and
Hazyview are two prime areas for
the nut.
MPUMALANGA BUSINESS 2018/19
30

OVERVIEW
The Mpumalanga Economic Growth Agency, MEGA, has equity in Hi-Veld Fruit Packers and
Tekwane Citrus.
Mpumalanga produces one-million tons of maize from 291 788ha.
About 53 000 tons of wheat and 33 000 tons of sorghum are produced
annually. Soya bean is another major crop: more than half of South Africa’s
soya bean crop is produced in Mpumalanga’s Highveld areas.
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.
Avocados, litchis, mangoes and bananas thrive in the province.
Hazyview is an important source of bananas, with 20% of South Africa’s
production originating in this district.
Deciduous fruits are cultivated in smaller quantities. The village of
Tonteldoos north of Dullstroom hosts an annual peach festival that includes
liquid marvels such as peach mampoer. About 15 000 tons of
table grapes are produced in the province annually and Mpumalanga
produces its own wine.
A specialist fruit that does well in the province is the marula. The marula
fruit makes a popular beer and is used in the production of a liqueur that
has done well on the international market. Potatoes and potato seed thrive
in Mpumalanga’s fertile soil, with one operation in the higher reaches of
the Drakensberg range producing more than 2 000 tons of seed every
year. Tomatoes, onions and cabbage are also farmed profitably.
Cotton is grown mostly under dryland conditions in Marble Hall. The
province has 1 500ha of dryland under cotton. Much of South Africa’s total
annual production of about 34-million kilograms of tobacco, especially
Virginia tobacco, takes place in the north-western parts of Mpumalanga,
and in neighbouring Limpopo.
Other crops produced for export in Mpumalanga include cut flowers,
pot plants and nursery plants.
Livestock
About 14% of the province’s land area is natural grazing land. Products
include beef, mutton, poultry, dairy and wool. Poultry-production
companies have large
facilities in the Standerton-
Volksrust area. The town of
Ermelo is the centre of one of
the country’s most important
sheep-farming districts.
The province is home to
one of South Africa’s largest
pig farms, Kanhym, near
Middelburg. Karan Beef has
recently built a large abattoir
in Balfour to service its massive
feedlot in neighbouring
Gauteng. Up to 1 800 head of
cattle can be processed every
day at the facility.
Sugar
Mpumalanga has the secondbiggest
sugar industry in
South Africa, after KwaZulu-
Natal.
TSB Sugar runs three mills
in the Lowveld region, two
of which have refining capacity,
and employs about
4 700 people. More than
1 400 farmers (commercial
and small-scale) deliver sugar
cane to the company. TSB
brands are Selati (sugar) and
Molatek (animal feed). TSB’s
31 MPUMALANGA BUSINESS 2018/19

OVERVIEW
three mills (including Pongola in northern KwaZulu-Natal) have been
able to maintain volumes because of extensive irrigation schemes.
The company was bought by RCL Foods in 2014.
TSB Sugar has been increasing the amount of cane it takes from
community trusts and small-scale growers. The proportion of land
used to harvest cane from small-scale growers on community land
has grown to 15%, with 64% coming from commercial farmers and
community trusts and 21% from TSB’s own land.
About 44 000ha in the province is under sugar cane. Commercial
farmers account for 27 000ha, emerging farmers for 9 500ha and TSB
Sugar has 7 800ha of its own.
Companies
Fresh fruit and nut supplier Halls has developed a countrywide reputation
since it was incorporated as a company in 1921. Halls’ Mpumalanga
operation (Mataffin) produces an avocado crop of about 1 300 tons,
37% of the company’s output. Europe buys most of Halls’ 1.6-million
cartons of exports (4kg equivalents) and this represents about 60% of
production. The company is one of South Africa’s biggest exporters of
litchis and total production is about 850 tons in a good year.
Halls cultivates 375ha of its own land and has another 1 400ha under
management. The Matsafeni Trust is the company’s biggest outgrower
and exports in the region of 300 000 cartons every year.
Westfalia is a diversified agricultural group which runs extensive
ONLINE RESOURCES
ARC-Institute for Tropical and Subtropical Crops:
www.arc.agric.co.za
Citrus Growers Association: www.cga.co.za
Fresh Produce Exporters’ Forum: www.fpef.co.za
Perishable Products Export Control Board: www.ppecb.com
operations in the province.
The group’s South African operations
regularly sell more than
five-million cartons of avocados
(50% of the country’s export
volume) and seven-million
cartons of mangoes. Westfalia
is a subsidiary of the Hans
Merensky Group and most of its
holdings are in the neighbouring
province of Limpopo.
Umbhaba Estates is one of
the biggest banana growers in
the province.
The drier Highveld region
with its cold winters supports
crops such as cereals, legumes
and nuts. There is extensive
irrigation in the Loskop Dam
area. Ermelo in the centre of
the province is one of South
Africa’s main centres of sheepfarming
and wool-production.
Standerton in the south-west is
a dairy centre and Piet Retief in
the south-east concentrates on
sugar and tropical fruit.
Subtropical fruit flourishes in
the Lowveld with the town of
Nelspruit being a major citrus
producer. Mangoes, avocados,
pecan and macadamia nuts,
bananas and papayas also thrive.
The Subtropical Fruit Growers’
Association represents about 400
avocado growers. Subtropical
fruit altogether has a combined
turnover of R950-million and
employs about 13 000 people.
Mixed farming and potatoes,
sweet potatoes and beans are
mostly found in the southern
and western parts of the province.
Between them, the highlying
areas of Mpumalanga and
the Free State account for 40%
of South Africa’s potatoes.
MPUMALANGA BUSINESS 2018/19
32

Mining
The provincial government may start a mining company.
OVERVIEW
Mafube coal mine is a JV between Anglo American Coal and Exxaro 30km west of Middelburg.
Mpumalanga’s coal-fired power stations have provided South
Africa with electricity for decades and continuing investment
in new projects will prolong that tradition for many years yet
to come, despite increased interest in renewable resources.
Nkomati Anthracite has been revived and is up and running after an
investment from Unicorn Capital Partners, formerly Sentula Mining. The
mine, which is in the south-eastern corner of the province, has proven
resources of 8.7-million tons and upwards of 400 jobs were created over
the last two years.
The high-grade anthracite that the mine will produce is suitable for
use by the ferro-metals industry because it has low phosphorus and
sulphur levels and high fixed carbon percentages.
The communities of Kwalugedlane, Matsamo and Mawewe have a
16.1% stake in the relaunched mine and the Mpumalanga Economic
Growth Agency (MEGA) holds 34%.
Coal giant Exxaro has committed R3.8-billion to its Belfast project, an
investment that will create 1 160 jobs and have an impact on the GDP
(over the life of the mine) of R39-billion, according to the Premier’s office.
Exxaro will establish an 80ha agri-village and spend R50-million to
accommodate the 32 households who are affected by this new mine.
Exxaro is also extending the life of its Leeuwpan Mine by another 10
years. The mine has 1 200 permanent employees.
In his 2018 State of the Province speech, then Premier David Mabuza
noted that mining contributes 25.9% of GDP and employs 53 000 people.
He further noted the sad closing of the Lily Mine (because of fatalities)
SECTOR INSIGHT
New safety measures include
Wi-Fi for underground
miners.
• Unicorn Capital Partners
has restarted Nkomati
Anthracite Mine.
and Glencore’s Optimum Colliery
and raised the possibility of developing
a diversified, state-owned
mining company. MEGA has been
tasked with investigating whether
it might be possible, looking at the
resources which the state already
holds (as seen in MEGA’s stake in
Nkomati Anthracite). Said Mabuza,
“We cannot have mining assets in
this province that are lying idle
and unproductive when unemployment
is this high. We have
to find innovative ways to revive
such mines.”
33 MPUMALANGA BUSINESS 2018/19

OVERVIEW
Isibonelo Mine is located near Kriel.
News
Two hundred employees at Anglo American Coal’s Zibulo Colliery are
walking around with devices that look like smartphones but might
save their lives. Instead of returning to the surface to report problems,
Wi-Fi is connecting miners and managers from underground to the
surface, from above to below and between workers underground at
different locations.
Pan African Resources increased its gold production by more than
a quarter in 2017 with the development of the Elikhulu Tailings Project
at Evander. At a cost of R1.8-billion, the project reduces the average
cost of the miner’s gold production and consolidates three tailings
dumps into one centralised location. Increasingly sophisticated technology
allows for more efficient extraction of remnants of gold from
old dumps and the new processing plant will deal with more than a
million tons of tailings.
Anglo American has announced it intends narrowing its focus to
diamonds, platinum and copper. The first big move came in April 2017
with the sale of Anglo’s thermal coal operations to Seriti, a black-owned
company lead by Mike Teke, the outgoing president of the Chamber
of Mines, recently rebranded as the Minerals Council South Africa.
Assets
Coal, platinum, gold and nickel are the province’s major mineral resources
and all are still in demand, even if coal and platinum have
experienced roller-coaster price fluctuations in recent times.
South Africa produces 75% of the world’s platinum, 80% of its
manganese, 73% of its chrome and 45% of its vanadium. Mpumalanga
has significant resources of each of these minerals, and several others.
Deposits of chromite, magnetite and vanadium are the basis of the
ferro-alloy complex in Witbank-
Middelburg (in Nkangala District
Municipality) and Lydenburg
(Mashishing). Nkomati Mine is
South Africa’s only pure-nickel
operation. The province’s coalfields
are in the south and west
of the province.
In terms of new mining legislation,
mining licences now include
a provision whereby some
of the resources mined must be
made available to local manufacturers.
The idea behind the
Mineral and Petroleum Resources
Development Act is to boost the
minerals beneficiation sector,
which, it is believed, will increase
employment levels and stimulate
economic growth. Uncertainty in
the steel sector has meant that
the plans of the Mpumalanga
Provincial Government to develop
a Mining and Metals Technology
Park have been put on hold.
Coal
Mpumalanga accounts for 83%
of South Africa’s coal production
and is the third-largest coal
exporting region in the world.
The coalfields of the province
feed nearby power stations. The
town of eMalahleni (Witbank), in
Nkangala District Municipality, is
at the centre of the coal industry.
In 2015 nearly 30% of national
power utility Eskom’s coal
(33.3-million tons) was supplied
by Exxaro. Exxaro’s purchase of
Total Coal South Africa (TCSA)
has significantly increased the
diversified miner’s capacity and
took to six the number of mines
the company has in Mpumalanga.
MPUMALANGA BUSINESS 2018/19
34

OVERVIEW
Seriti comprises Masimong Group Holdings (Teke’s company),
Community Investment Holdings Projects, Zungu Investments
Company and Thebe Investment Corporation. Seriti paid R2.3-billion
for the New Vaal, New Denmark and Kriel collieries (all of which are
tied to Eskom delivery contracts), as well as four closed collieries. Seriti
thus became the second-largest provider of thermal coal to Eskom,
supplying almost a quarter of the utility’s annual coal requirements.
State coal company AEMFC (African Exploration Mining & Finance
Corporation) runs a colliery at Vlakfontein near Ogies and is planning
to develop other projects.
South32 (formerly BHP Billiton) has four collieries and three processing
plants in the province. The company has 4 860 full-time employees
and 4 400 contractors.
Wescoal owns and manages the Khanyisa colliery which supplies
the Eskom power station at Kendall with coal and it has acquired
Keaton Energy.
ArmCoal is a black-owned coal company that arose out of a deal
between Xstrata Coal SA and African Rainbow Minerals Limited (51%).
ArmCoal was the vehicle used in the creation of the large open-cut
thermal coal mine at Goedgevonden.
has purchased the Everest mine
from Aquarius Platinum. Everest
is adjacent to Northam’s existing
Booysendal mine.
Northam expects to produce
460 000 ounces of platinum
group metals (PGM). A concentrator
and a chrome extraction
plant were included in the sale
price of R450-million.
Jubilee Platinum has sold its
Smelting and Refining business in
Middelburg to Siyanda Resources
for R110.5-million. Sylvania
Platinum now has seven PGM recovery
plants that extract chrome
from tailings on both sides of the
Bushveld Igneous Complex. The
company also has some shallow
mining projects.
Gold and platinum
Sibanye Gold’s list of acquisitions continues to grow. Formed as a
gold-mining company with one mine in the Free State, Sibanye has
rapidly been buying up platinum assets in South Africa and the US. In
Mpumalanga it has purchased the Burnstone gold mine near Balfour,
which it reports has a maiden gold reserve of 1.8-million ounces.
Stonewall Resources runs the TGME Project, near the towns of
Pilgrim’s Rest and Sabie. Stonewall has ambitious targets of going
beyond production of 40 000 ounces from this and other historic
mines in the area.
Having taken full control of its Barberton mines, Pan African improved
its BEE position (Shanduka Gold is a 23.8% shareholder) and set about
increasing its annual gold output to 100 000 ounces. Northam Platinum,
which has assets on both limbs of the Bushveld Igneous Complex,
ONLINE RESOURCES
Geological Society of South Africa: www.gssa.org.za
Minerals Council South Africa: www.mineralscouncil.org.za
Mining Qualifications Authority (MQA): www.mqa.org.za
National Department of Mineral Resources: www.dmr.gov.za
South African Institute of Mining and Metallurgy:
www.saimm.co.za
Ferrous metals
Lydenburg is home to the Lion
ferrochrome smelter that is a joint
venture between Glencore and
Merafe Resources. Feedstock is
primarily provided by mines run by
the same two companies, namely
Magareng, Helena and Thorncliffe.
Assmang, the joint venture
between ARM Ferrous and
the JSE-listed Assore, operates
a chrome mine (Dwarsrivier)
and a ferrochrome plant where
chrome alloys are made. Reduced
demand for stainless steel has
meant that some of the furnaces
at Machadodorp have shut down.
The Manganese Metal
Company (MMC) in Nelspruit is
the largest producer of pure electrolytic
manganese in the world.
MMC is owned by Samancor (51%)
and Bilston Investments owns the
balance.
35 MPUMALANGA BUSINESS 2018/19

PROFILE
Superfecta Trading
Electro-mechanical specialists.
Superfectca Trading is an electro-mechanical engineering
company with a national footprint and a record of successful
delivery of projects in all nine provinces. The company was
founded in 2002 and has extensive experience in medium- and
high-voltage products and related services.
Superfecta manufactures high-tension products under the TMA brand
and related services. TMA products include transformers, mini-substations
and switchgear. Superfecta also employs a team of mechanical experts. The
company prides itself on the supply, installation and maintenance of mechanical
work and boasts over 14 years of experience in the mechanical field.
Superfecta has strategically partnered with three internationally recognised
companies: Thomas C. Wilson (New York), Schneider Electric
(South Africa) and Jinshanmen Electrical Co. (China). The partnerships
have enhanced our performance and enabled us to be the providers of
the latest technology.
Ownership Status
100% black-owned registered company, with 55% of the shares owned
by women.
Our Vision
To be the leading electro-mechanical specialist in energy solutions across
Southern Africa. Superfecta aspires to excellence, innovation and transparency;
three prominent features that distinguish us in the marketplace
and uphold our vision.
Our Mission
To enable our clients to ensure reliable energy supply through cost-effective
and quality manufacturing, supply, installation and maintenance of infrastructure.
Superfecta strives to deliver the best solutions which are achieved with
strong partnerships and joint ventures
with local and international entities
that share our values and objectives.
We have a full complement of highly
skilled engineers, technical and administrative
staff. All efforts are geared
towards compliance with health and
safety standards.
Sectors
Superfecta works in a variety of sectors,
including but not limited to:
• mining
• provincial and local government
• utilities
• transport
• oil and gas.
Professional Services
Superfecta is a one-stop shop for all
transformer and transformer-related
work and we pride ourselves on delivering
a comprehensive and complete
service, including the supply of transformers
for:
• The mining industry
• Dry-type mining
• Distribution transformers
• Power transformers.
• All our transformers are SABS and
IEC compliant and operate at
MPUMALANGA NORTHERN CAPE BUSINESS 2018/19
36 48

higher efficiencies than any other on the market. Our turnaround
time is less than 60 days, which is a market-beater.
What gives Superfecta a competitive
edge in the industry is investment in
the latest systems and technologies. The
company invested millions of rands in an
integrated maintenance software called
Archibus. Our maintenance system goes
above and beyond the management
of the maintenance process and asset control by recognising that these
processes are just a small part of a full life cycle. The intellectual capability
of the system enables us to ensure that our customers are well taken care
of by indicating when the following maintenance schedules should take
place. We also provide our clients with 24/7/365 support.
Transformer oils undergo electrical
stresses while the transformer is in operation.
This, combined with the contamination
caused by the chemical interactions
with windings and other solid insulations,
gradually render it ineffective. Regular purification
is paramount. We periodically
test for electrical and chemical properties to make sure that the oil is suitable
for further use and provide the purification services needed to extend the
life of your transformer oil. This can be done online or offline.
Superfecta has played a significant role in the economic development
of South Africa, not only through employment, but also through infrastructure
development both in rural and urban areas. We pride ourselves
on having installed electricity in over 500 households in rural parts of
South Africa. The company has not only done an outstanding job but
raised the bar in successfully electrifying villages in the geographically
challenging landscape of KwaZulu-Natal.
With a professional team of mechanical technologists, Superfecta prides
itself on the supply, installation and maintenance of mechanical work. Our
services include, but are not limited to:
• Supply and installation of heat exchangers tubes, boiler tubes, steam
pipes and primary air heater
• Supply and replacement of pipe works (ash, sluice lines, etc)
CONTACT INFO
Physical address: 23 Catalunya Raceway Industrial Park,
Gosforth Park, Germiston, Johannesburg 1419
Telephone: +27 11 8693607
Fax: +27 11 825 0086
Email: info@superfectatrading.co.za
Website: www.superfectatrading.co.za
PROFILE
• Replacement and new installation
of steel pipe works
• Supply and installation of
pumps
• Supply and hire of tubetesting
machine, tube cleaners,
vacuum leak dictator, tube cutters,
expanding machine
• Mechanical engineering (pipe
fitting and rigging)
• Steel pipe jacking and fitting,
supply and install concrete
jacks, jacks under roads and
gas lines.
All industrial concerns require a
complex system of electrical networks
to function efficiently and
successfully. Superfecta both installs
and conducts repairs to high
tension electrical circuits.
We also oversee electrical reticulation
(urban and rural), electricity
meters (prepaid and smart meters)
and electricity works.
Clients
Superfecta is an ISO 9001:2008 certified
company that fully embraces
a Total Quality Management
philosophy in streamlining all
its business processes. Clients
include Rand Water, FNB, MTN,
Airports Company South Africa,
Total, Transnet, Passenger Rail
Agency of South Africa and
Eskom. Superfecta has done work
for the public works departments
of three provinces, the City of
Johannesburg and several other
municipalities.
49 37 NORTHERN MPUMALANGA CAPE BUSINESS 2018/19

OVERVIEW
Forestry and paper
Sustainable resource management is a priority for timber companies.
Mpumalanga has 40% of South Africa’s forestry resources.
This fact presents an opportunity to exploit the sector’s
by-products in the biomass-to-energy field.
The Zebra Pellets plant in Sabie is to be converted
by national utility Eskom into a torrefied pellet plant. The wood will
be provided to the plant (owned by the Industrial Development
Corporation) and then heated without the use of oxygen (torrefied)
which creates a coal-like product without the carbon.
Plans to develop an Agriculture and Forestry Technology Park are
being drawn up by the Provincial Government of Mpumalanga. The
Mpumalanga Economic Growth and Development Path (MEGDP)
intends to expand the industrial base of the provincial economy,
with a focus on beneficiation, agri-processing and value chain
development.
When forestry managers, contractor and forestry equipment
suppliers gather at the biannual Focus on Forestry conference in
White River in 2019, the theme will be “Bridging the digital divide
in the African forestry sector”.
Sustainability is a key area for companies in the forestry sector
and advances in the Internet of Things and AI are being keenly
monitored for ways to enhance margins in an environmentally
sound way.
The conference, which also looks at topics such as silviculture,
fire management and forest engineering, alternates between
Mpumalanga and KwaZulu-Natal and will be jointly organised
SECTOR INSIGHT
The Focus on Forestry conference
will target digital
solutions.
in 2019 by the Centre for the
Modernisation of Forestry
Operations (CMO), the Institute
for Commercial Forestry Research
(KZN University) and the Nelson
Mandela University.
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.
Mpumalanga has the ideal
climate and topography for
MPUMALANGA BUSINESS 2018/19
38

OVERVIEW
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.
York Timbers owns and operates five processing plants, including
the largest sawmill and plywood plants in South Africa, and it has
60 470 planted hectares. The company is considering investing in
biomass energy generation. The Industrial Development Corporation
(IDC) has a stake in York Timbers and a 42.6% share in Hans Merensky
Holdings, a company with timber and processing interests in three
provinces. Merensky is responsible for 20% of South Africa’s sawn
pine lumber.
The Mondi Group has extensive forestry holdings in the province
and has been working on introducing a higher degree of mechanisation
in its operations. Mondi has also instituted an ecosystem management
plan throughout its forestry operations with the intention of better
managing the impact its work has on the environment.
Although local demand is dwindling, the export market for pulp
and paper is strong. Pulp production figures have been on the rise
for several years and companies like Mondi are increasingly focusing
on pulp export because of better margins.
Big investment
Ongoing investment at Sappi’s giant Ngodwana Mill will contribute
R13-billion to the provincial economy over 20 years (Premier’s State
of the Province Address). Sappi has two large facilities in the province.
Ngodwana which produces its own energy, makes dissolving wood pulp.
About 70% of the mill’s product is exported. It produces paper grade
pulp together with newsprint, containerboard and dissolving wood pulp.
It is located near Sappi’s commercial forestry operations and produces
210 000 tons of dissolving wood pulp and 380 000 tons of paper (including
kraft linerboard). Sappi’s Lomati Sawmill in Barberton produces
ONLINE RESOURCES
Centre for the Modernisation of Forestry Operations:
www.cmogroup.net
Forestry South Africa: www.forestry.co.za
Institute for Commercial Forestry Research: www.icfr.ukzn.ac.za
National Department of Agriculture, Forestry and Fisheries:
www.daff.gov.za
South African Institute of Forestry: www.saif.org.za
Technical Association of the Pulp and Paper Industry of South
Africa: www.tappsa.co.za
kiln-dried Southern African pine
lumber from sawlogs supplied by
Sappi Forests.
In 2017 Sappi built a sugar extraction
demonstration plant at
Ngodwana. Findings from the
experiment will help to improve
the process of extracting biorenewable
chemicals. Sappi
is partnering with Valmet, a
Finnish company.
PG Bison has a board plant
in Piet Retief. Sonae Rauco runs
large plants at White River and
Panbult. Komatiland Forests,
a 100%-owned subsidiary of
state company SAFCOL, has big
plantations in several districts.
TWK is a R6-billion agricultural
company with its headquarters
in Mkhondo (Piet Retief).
Asset management company
Global Environment Fund created
Imvelo Forests and in 2015 the
company investigated using
thermal imaging to detect fires.
Among the other private timber
growers in the province are
Pull Scar Timber Co, and United
Forest Products.
The Community Conservation
Resilience Initiative (CCRI) has
been introduced to Mpumalanga,
on the basis that local communities
can play a big role in biodiversity
conservation and restoration.
The first two communities
to be part of CCRI are Mariepskop
and Houtbosloop Valley.
The Lowveld Botanical
Gardens in Nelspruit has more
than 650 of the 1 000 trees
indigenous to South Africa.
The Council for Scientific and
Industrial Research’s (CSIR)
forestry-research unit aims to
improve tree breeds.
39 MPUMALANGA BUSINESS 2018/19

OVERVIEW
Oil and gas
A natural gas pipeline runs through Mpumalanga’s Special Economic Zone.
About 60-million litres of liquid fuel is produced each day at
the coal-to-liquid plant run by Sasol at Secunda. A major
mine replacement programme is now complete and Sasol
has secured feedstock until the year 2050.
There is increased interest in gas as a source of energy although
the country currently only has one gas-to-liquids plant (in the
southern Cape). A national Gas Utilisation Master Plan (GUMP) is
being developed. In 2016 the Department of Trade and Industry (dti)
established a Gas Industrialisation Unit (GIU) which will make plans to
exploit the huge fields of natural gas off the coasts of Mozambique
and Angola and boost industrialisation in South Africa.
Much of the Mozambique resource is already piped to the industrial
heartland of South Africa and the promoters of the Nkomazi Special
Economic Zone believe that the fact that a natural gas pipeline passes
through the SEZ is a big selling point.
The Liquefied Natural Gas Independent Power Producer
Procurement Programme (LNG IPPPP) is part of the broader
programme of the Department of Energy which encourages private
investment in renewable energy, namely the Renewable Energy
Independent Power Producer Procurement Programme (REIPPPP).
The total allocated to gas-to-power in the national power plan is
3 726MW, of which 3 000MW is for LNG.
SECTOR INSIGHT
National government is
setting new gas policies.
The major economic sectors
using gas are the metals sector
and the chemicals, pulp and paper
sector. Brick and glass manufacturers
are also big consumers.
Transnet Pipelines runs a
3 800km network of underground,
high-pressure petroleum
and gas pipelines throughout
the eastern parts of South
Africa. The company’s sophisticated
new multi-product pipeline
(NMPP) between the coast
and Gauteng brings a range of
products to the manufacturing
heartland of South Africa.
MPUMALANGA BUSINESS 2018/19
40

OVERVIEW
International chemicals and energy company Sasol has several
large plants in Mpumalanga and plays a major role in the economy
of Mpumalanga.
In Mpumalanga Sasol’s assets are Sasol Mining, Secunda Synfuels
Operations, Secunda Chemicals Operations and Sasol Energy.
Products manufactured at the Secunda complex (pictured)
include petroleum, paraffin, jet fuel, creosote, bitumen, diesel and
lubricants. Gas by-products include oxygen and acetylene, liquefied
petroleum gas (LPG), and hydrogen and nitrogen. The primary
feedstock for synthetic-fuel production is coal, and the plant is in
the heart of Mpumalanga’s coalfield region.
Sasol is spending about R12-billion on expanding the capacity of
the synfuels plant and on installing an oxygen plant and more Sasol
Advanced Synfuel (SAS) reactors to convert gas feedstock to liquid fuel.
Sasol Gas is one of the four Sasol operations at Secunda, supplying
natural gas to Sasol Synfuels and buying Sasol Synfuels’ methane-rich
pipeline gas to sell to customers in Mpumalanga and KwaZulu-Natal.
Natural gas is an inexpensive alternative to coal. Although the
coal industry still has life in it (old fields are being rehabilitated and
new ones created – Sasol is itself spending R15-billion on opening
three) it is a finite resource.
Sasol will also likely be a key player when national government
delivers its new policy on the biofuel ethanol industry. Statutory
minimums for biodiesel in diesel and bioethanol in ethanol will
give certainty to producers and boost production levels across the
country. Sasol is already making 285 000kl of absolute alcohol in
ethanol from sugar fermentation annually at Secunda. The company’s
sophisticated technology for deriving liquids and gasses from coal
can easily be converted to biomass sources such as sugar.
Exploration
Sasol and the provincial government have commissioned an in-depth
technical feasibility study for a Petrochemical Technology Park to be
located in the province.
ONLINE RESOURCES
Central Energy Fund: www.cef.org.za
Independent Power Producers Programme:
www.ipp-projects.co.za
Petroleum Agency SA: www.petroleumagency.co.za
PetroSA: www.petrosa.co.za
South African National Energy Association: www.sanea.org.za
South African Oil & Gas Alliance: www.saoga.org.za
South African Petroleum Industry Association: www.sapia.co.za
Three natural gas exploration
permits were awarded to
Tosaco Energy in 2017 for the
area between Amersfoort and
Balfour in the western part of
the province. Tosaco Holdings
has a 25% stake in Total SA.
Testing in the sandstone-rich
area should be complete by
2019. Two methane-gas exploration
rights have been granted
to Highland Exploration in the
Evander area.
Petroleum Agency SA is
the state agency responsible
for promoting and regulating
exploration and production of
oil and gas in the country.
Many of the big mining and
manufacturing concerns in
Mpumalanga have long-term
contracts for the supply of gas
with big gas companies. Afrox
and Air Liquide are two of the
biggest, with the latter having
3 500 national customers, which
include Sappi and Sasol.
When it comes to liquid
petroleum gas, mostly used
in households (and normally
delivered by canisters), some
changes are coming for
consumers. The Competition
Commission wants to make the
sector more competitive and
aims to do this by reducing the
duration of contracts between
bulk sellers and refineries. (Mail
& Guardian). South Africa’s LPG
market is worth R1.5-billion per
annum and the country produces
300 000 tons of product. One
of the aims of the commission
is to make LPG cheaper and
more easily available to private
consumers, who currently make
up just 3% of the market.
41 MPUMALANGA BUSINESS 2018/19

OVERVIEW
Water
Nearly R2-billion is to be spent on bulk water and sanitation.
The Provincial Government of Mpumalanga is prioritising the
provision of water infrastructure projects. The Premier reported
in 2018 that the bulk of the R1.8-billion Municipal
Infrastructure Grant (MIG) will be spent on 149 water supply
and sanitation projects.
A joint project with Eskom related to rain water harvesting will also
create jobs. The Siyasebenza Job Creation Initiative is intended to create
900 jobs in the Nkangala District Municipality.
A total of 327 water infrastructure projects benefiting 350 259
households have been completed, with a further 165 sanitation projects
(benefiting 285 065 households) also finalised. To assist municipal
water provision, 582 boreholes have been drilled by the provincial
authorities.
A bulk water supply system connecting villages within the
Bushbuckridge area such as Hluvukani, Zoeknog and Tsakani has been
completed. The Blyde River Poort Dam (pictured above) supplies water
for irrigation and industry at Phalaborwa.
Many municipalities in Mpumalanga have struggled to provide water
for their citizens. Rand Water was asked to step in and supply clean
water in the Bushbuckridge area. This was followed by the national
government disbanding the Bushbuckridge Water Board and Rand
SECTOR INSIGHT
Rain harvesting is at the
centre of a job-creation
initiative.
Water taking over its operations.
The area of supply covers
Bushbuckridge and Mbombela
(Ehlanzeni District Municipality)
which has 15 water treatment
works, with a capacity of
245ml/day. Water is supplied to
1.5-million people in the areas.
The water treatment works include
three large works (Inyaka,
Hoxani and Kanyamazane) and
several smaller treatment works
(Thulamahashe, Acornhoek and
Edinburgh) supply local communities
with drinking water.
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44

OVERVIEW
Expenditure in Bushbuckridge and Mbombela over the period 2015-
2020 is expected to be R600-million.
This is part of a broader national strategy whereby bigger boards
such as Rand Water are growing their footprint, replacing the smaller
local boards which lack the skills or resources to carry out their mandate.
Rand Water, which historically served greater Johannesburg, now
serves an area which includes Gauteng, Limpopo (Greater Groblersdal
and Great Mable Hall), North West (Rustenburg and Madibeng areas),
Mpumalanga and the Northern Free State (boundary of the Upper Vaal
Water Management Area). The national Minister of Water and Sanitation
is the shareholder, representing the government of South Africa.
The Komati Basin Water Authority (KOBWA) is an important agency
in controlling water resources in the region. Formed out of a cooperation
agreement between South African and Swaziland, the agency has
built two large dams and is responsible for their upkeep.
In terms of the National Water Resource Strategy, catchment area
management agencies have been established to oversee water resource
management on a regional basis. The National Water Act stipulates
that water resource management functions, excluding those that
have national and strategic implications, will be carried out by CMAs.
The Imkomati-Usuthu Catchment Management Agency covers
Mpumalanga, parts of Limpopo and part of the Kingdom of Swaziland
and is responsible for water usage issues relating to the following river
catchment areas: Sabie-Sand, Crocodile, Komati, Nwaswitsontso and
Nwanedzi.
Among the responsibilities of a CMA are checking that water is
being used lawfully, allocating resources to parties along a river (farmers,
municipalities or businesses), long-term planning, dam safety and
checking on the quality of water.
The small town of Wilge on the western edge of Mpumalanga near
the border with Gauteng will soon be receiving water from Eskom’s
Kendal Power Station. The utility’s scientists aim to use chlorine dioxide
rather than chlorine gas to produce potable water. Tests have shown
that the treated water has a better colour and the water meets the
standards set down by the South African Bureau of Standards (SABS).
ONLINE RESOURCES
De Hoop Dam: www.dwa.gov.za/ORWRDP/DeHoop/index.asp
Inkomati-Usuthu Catchment Management Agency:
www.iucma.co.za
Komati Basin Water Authority: www.kobwa.co.za
National Department of Water and Sanitation: www.dwa.gov.za
Rand Water: www.randwater.co.za
Trans Caledon Tunnel Authority: www.tcta.co.za
Water Institute of South Africa: www.wisa.org.za
The completion of the De
Hoop Dam means that people
living in municipalities can now
expect bulk water delivery. The
Trans Caldeon Tunnel Authority
(TCTA) is responsible for seeing
that bulk water supplies are laid
on but making the local connections
and physically delivering
the water is up to municipalities
and water boards.
The De Hoop Dam is
the centrepiece in the large
Olifants River Water Resource
Development Project
(ORWRDP) which is transforming
the water environment for
industrial, commercial and private
users. As the catchment
area for this huge scheme is to
the north of Mpumalanga, the
spinoff effect on the province
is significant.
The Olifants River System
(and associated systems
such as the Blyde Irrigation
Scheme) feeds the region
that is South Africa’s greatest
producer of citrus and subtropical
fruits.
The TCTA has also delivered
the Komati Water Supply
Augmentation Project: an extra
57-million m³ of water every
year is now available for the the
Duvha and Matla power stations
in the Witbank area, and
other water users.
To make sure that its big
Saiccor Mill receives enough of
a steady supply of water, Sappi
has raised the wall level of the
Comrie Dam. Across its global
operations, Sappi claims to return
93% of the water it uses
back into the environment
once it has been cleaned.
45 MPUMALANGA BUSINESS 2018/19

PROFILE
Komati Basin Water
Authority
Celebrating over 25 years of excellence in trans-boundary
water management.
Driekoppies Dam.
The Komati Basin Water Authority (KOBWA) is a bi-national
organisation formed through the Treaty on the Development
and Utilisation of Water Resources of the Komati River Basin.
The Agreement was signed by the Kingdom of eSwatini
(Swaziland) and the Republic of South Africa in 1992. As an implementing
agent of the joint project of both countries, the organisation was
tasked with designing, constructing, operating and maintaining two
dams and associated infrastructure. This resulted in the construction
of the Driekoppies Dam (pictured above) in Schoemansdal, South
Africa (1993 to 1998), and the Maguga Dam in eSwatini (1998 to 2001).
Over the last 25 years, KOBWA
has fostered sound transboundary
relations between
the Republic of South Africa and
Swaziland and achieved many
successes which include:
• completing the construction
of the Driekoppies Dam and
Maguga Dam, which included
community empowerment
in terms of skills and employment
opportunities
• efficient water infrastructure
management
• efficient water resource
management
• sharing technical information
with stakeholders such as
the Komati Joint Operations
Forum (KJOF) on a monthly
basis
• engaging communities in
water and environment
management awareness
campaigns through social
engagements such as football
• successful management of
drought cycles, including the
recent severe El Nino spell
experienced in 2014-2016.
KOBWA also completed the
access road to the Driekoppies
Dam (shown, right) and constructed
houses such as the
Fish Eagle Bend in Malalane
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46

PROFILE
to accommodate professionals and technicians
working at the dam site during the construction
of the Driekoppies Dam. When these dams were
built, households were successfully relocated and
resettled.
Building communities
With the expertise of KOBWA personnel, three
portable water purification plants were installed
at Buffelspruit, Block-C and Gomora. These water
plants augment water supply to these areas,
reducing the frequency of water outages.
As part of its Corporate Social Responsibility
programme, KOBWA has seen schools, nongovernmental
organisations and community-based
organisations benefitting through the provision of
water and sanitation-related amenities to improve
the lives and social status of the communities.
KOBWA, as an organisation rooted in communities,
involved communities in both countries as part of
the 25th anniversary celebrations through Corporate
Social Initiative projects. At sports tournaments,
community members were also educated about
KOBWA’s role in trans-boundary water management.
Communities that border the Driekoppies Dam
(Schulzendal, Buffelspruit, Jeepes Reef, Middelplas,
Schoemansdal and Driekoppies) were engaged in
a soccer tournament at the Driekoppies Stadium. A
one-day stakeholder soccer and netball tournament
was held in Piggs Peak in eSwatini with the
involvement of stakeholders of both countries to
enhance and strengthen stakeholder relationship
between the two countries.
In future, KOBWA is looking forward to sustainable
trans-boundary water resources development
and management for water security for the two
countries and the entire region, as water is life.
Driekoppies access road.
CONTACT DETAILS:
Head office
Maguga Dam, PO Box 678, Piggs Peak, H108, eSwatini
Tel: +268 437 1463/4
Fax: +268 437 1460
Email: maguga.office@kobwa.co.za
Water management office
Driekoppies Dam, PO Box 518, Malalane, 1320, South Africa
Tel: +27 (0)13 781 0317
Fax: +27 (0)13 781 0320
Email: driekoppies.office@kobwa.co.za
Website: www.kobwa.co.za
47 MPUMALANGA BUSINESS 2018/19

OVERVIEW
Manufacturing
Highveld steel works lives again as an industrial park.
Creative thinking kicked in when Highveld Steel’s troubles
reached the tipping point in 2015. Aside from the business
rescue process, which has allowed some production to restart,
there is some irony in the that fact that the 1 000ha
property has been re-purposed as a multi-purpose site for industry and
commerce. Called the Highveld Industrial Park, this project has had the
effect of promoting a diversity of manufacturing enterprises, something
which has been a priority for economic planners for many years.
Stockpiles of coal and vanadium are being sold off, but two iron
plants and a steel plant offer fully-equipped metallurgical and steelmaking
facilities, supported by environmental monitoring services and
metallurgical and chemical laboratories.
The private rail siding gives the park good connections and the fact
that Sasol can supply methane-rich natural gas and that two gas producers
(Air Liquide and African Oxygen) have plants in the park makes
for an advantageous setting for industrial enterprise. The Eskom grid
supplies 350mVA power supply directly. The park is near eMalahleni,
next to the N4 highway and close to the N12 highway.
In early 2018, the park had 21 tenants and many enquiries. Tenants
include a training centre funded by the Construction Sector Education
and Training Authority (CETA) and a mining equipment refurbishment
company. An agricultural college is planned.
The structural mill of Evraz Highveld Steel in Witbank was officially
relaunched in June 2017 after ArcelorMittal South Africa signed a
contract to supply blooms and slabs for the mill to make into heavy
SECTOR INSIGHT
Most jobs in manufacturing
are in food and timber.
structural steel. Evraz Highveld
went into business rescue in
2015. The contract is for two
years with an option to renew
for another year. Alternately,
ArcelorMittal may buy the mill
after the two years.
The presence of Ferrometals
means that Mpumalanga is still
an important place for metals
and machinery manufacturing,
but the turbulence in the steel
sector has reminded everyone of
the need to diversify.
The chemicals and liquid
fluids complex of Sasol at
Secunda is a vital component of
the province of Mpumalanga’s
manufacturing sector. The
MPUMALANGA BUSINESS 2018/19
48

OVERVIEW
company has two propylene manufacturing plants and recently
completed two major investments aimed at improving flows and
expanding production. This was done in two phases from 2012.
Propylene is an input for polypropylene which is used in packaging,
automotive components and textiles. The market is growing in South
Africa at 4% per annum, roughly the same rate as the global market.
Plans
The provincial government has declared that it is determined “to turn
Mpumalanga into a manufacturing hub for South Africa and the rest
of the continent”. To that end, partnerships with Russia, China and Italy
have been established to improve local knowledge of technology and
to become globally competitive.
This strategy could be said to have paid off when it was announced
that Minsk Tractor Works is to establish an assembly plant in the
province.
Belarus and Oman are two of the other countries that Mpumalanga
is engaged with. A key objective of the provincial government’s
Mpumalanga Economic Growth and Development Path (MEGDP) is
to expand the industrial base of the provincial economy. To do this,
policy-makers are focusing on beneficiation, agri-processing and value
chain development.
Samancor Chrome (which runs Ferrometals) is the second-largest
ferrochrome producer in the world with three plants, two of which are
in Mpumalanga: eMalahleni (Witbank) and Middelburg.
Most manufacturing in the province takes place in the Highveld
where there is access to chrome, steel and coal. In Middelburg, Thos
Begbie makes a variety of products at its heavy engineering works.
Graphite Freezeline Solutions opened a new graphite facility within
the Begbie property in 2018.
Middelburg-based Columbus Stainless is a major supplier of
stainless-steel products to the domestic and international market.
About 25% of the company’s production is sold domestically.
The Manganese Metal Company in Nelspruit is the largest producer
ONLINE RESOURCES
Highveld Industrial Park: www.highveldindustrialpark.co.za
Middelburg Chamber of Commerce and Industry:
www.middelburg info.com
Mpumalanga Economic Growth Agency: www.mega.gov.za
National Department of Trade and Industry: www.thedti.gov.za
South African Iron and Steel Institute: www.saisi.co.za
Southern Africa Stainless Steel Development Association:
www.sassda.co.za
of pure electrolytic manganese
metal in the world. Delta EMD,
in the same town, is one of the
biggest producers of electrolytic
manganese dioxide, a material
used in the manufacture of alkaline
batteries.
Agri-processing
The Lowveld area supports food
and beverage enterprises and
timber processing. Approximately
70% of jobs in the manufacturing
sector are in food and forestry.
A large agri-processing fruit
hub is planned for the province.
Located in the Nkomazi Special
Economic Zone, the proposed
hub, with an estimated value of
R10-billion, would deal with the
whole value chain from growing
fruit through to processing, marketing
and logistics. Having manufacturing
facilities at the core of
the hub will enable a variety of
businesses to be established,
both upstream (to supply the
plant) and downstream (to deal
with the products of the plant).
Standerton has textilemanufacturing
capacity in the
form of Standerton Mills. It is also
home to several plants that use
local raw materials: Nestlé has
an infant-cereal manufacturing
plant, RCL runs farms in the
Carolina district and Early Bird is
prominent. McCain and PepsiCo
(Simba) have plants that use the
province’s plentiful potato crop.
TSB Sugar runs two large mills
and produces fruit juices through
a subsidiary company. Nelspruit is
the centre of the province’s foodprocessing
cluster.
49 MPUMALANGA BUSINESS 2018/19

OVERVIEW
Transport and logistics
The Moloto Corridor is a key regional route.
SECTOR INSIGHT
The Mpumalanga
International Fresh Produce
Market offers many logistics
opportunities.
Roadworks underway between Ogies and Kriel. (Photo: Raubex)
In June 2018, the National Department of Transport held an information
session in Mpumalanga to explain to SMMEs how they can
take advantage of opportunities in the infrastructure sector. Deputy
Minister of Transport Sindisiwe Chikunga made presentations together
with representatives from the South African National Roads
Agency Limited (Sanral), Air Traffic Navigation Services (ATNS) and
Airports Company South Africa (ACSA).
Sanral has presented its long-term vision, Horizon 2030, as part
of its contribution to the National Development Plan 2030. Road
improvements which have boosted the transport infrastructure of
Mpumalanga recently include the upgrades to the R570 (linking
Malelane on the N4 to Swaziland), the N11 (Hendrina–Middelburg)
and part of the vital R573 Moloto Road, which carries huge volumes of
traffic to Gauteng and Limpopo. Sanral’s three-year plan for the R573
allocates R1-billion to the project.
A clause in Sanral’s contract with big companies to work on the R573
ensured that small companies were involved. Raubex Construction
consequently formed a joint venture with Biz Afrika, Khuluphala
Tradings and Themolo Business Enterprise.
The R573 forms part of the Moloto Corridor. In the long term
the aim is to create a coordinated road and rail corridor including
rapid rail facilities. With about 50 000 motor vehicles currently using
the route every day, it represents one of the busiest parts of South
Africa’s road network. The plan to
upgrade the corridor is one of 18
national Strategic Infrastructure
Projects (SIPs). Not only will the
corridor provide better linkages
between the provinces and boost
development along the route but
improve access to the mineral
reserves of the Waterberg region.
The Maputo Development
Corridor is Africa’s most advanced
spatial development initiative
(SDI) comprising road and rail
infrastructure, border posts, and
port and terminal facilities. Run
by the Maputo Development
Corridor Logistics Initiative (MCLI),
the corridor runs from just outside
Pretoria in Gauteng, through
Witbank, Middelburg and
Nelspruit in Mpumalanga, and
on to Maputo in Mozambique.
The already successful Maputo
Development Corridor will soon
receive a further boost with the
upgrading of the Komatiepoort
Dry Port into a Special Economic
Zone. The National Department
of Trade and Industry (dti) has
designated the Mpumalanga
Economic Growth Agency
(MEGA) as the lead agent to develop
the SEZ.
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OVERVIEW
Another infrastructural development that will boost trade is
Transnet’s Swaziland Rail Link (SwaziLink) project. A 146km railway
line between Lothair in Mpumalanga and Sidvokodvo in Swaziland
will allow for better movement of freight between the countries and
provide a possible alternative route for freight through to Richards Bay.
Fresh produce
The road and rail networks of the province carry large volumes of coal
and delicate fruits and vegetables for export.
This is set to grow exponentially as the Mpumalanga International
Fresh Produce Market (MIFPM) within the SEZ expands capacity. The
groundwork has been done for the market and services are being
installed. Private partners are being consulted to provide cold storage,
packaging and warehouse facilities and agri-processing plants to
convert the province’s many fruits and vegetable products into juices,
jams and soups. Logistics will form a major part of the MIFPM offering,
especially given the strategic location of the SEZ.
The Mpumalanga rail system generates more freight traffic than any
other province in South Africa and is of great strategic value. Transnet
Freight Rail is the main operator and the chief freight movements are
coal, fuel, chemicals, timber, iron and chrome ore, fruit, maize, animal
feed, wholesale and retail goods, steel, building supplies, fertiliser and
consumer goods. The port of Maputo in Mozambique is an attractive
option for freight. The coal terminal at Richards Bay in KwaZulu-Natal
receives the majority of the coal that is mined in the province.
A new rail siding is being built to service the Majuba Power
Station. The 68km single heavy-haul track will be a private line that
is projected to cost in the region of R5-billion and create between
3 500 and 5 000 jobs.
Private rail operators Sheltam service the coal-mining and
ferrochrome-metal industries from regional headquarters in Witbank.
The company runs systems, hauls raw materials and rebuilds and
refurbishes locomotives.
ONLINE RESOURCES
Kruger Mpumalanga International Airport: www.kmiairport.co.za
Maputo Corridor Logistics Initiative: www.mcli.co.za
Middelburg Airfield: http://middelburgaeroclub.com
Mpumalanga Department of Public Works, Roads and Transport:
http://dpwrt.mpg.gov.za
Railroad Association of South Africa: www.rra.co.za
South African National Roads Agency Ltd: www.sanral.co.za
A grader in action at
Komatipoort.
Air
Nelspruit Kruger Mpumalanga
International Airport (KMIA) is the
province’s main airport, serving
both the capital and being a
convenient entry point to the
southern part of Kruger National
Park. Airlink has direct flights to
and from Johannesburg, Cape
Town, Durban and Livingstone
in Zimbabwe.
Hoedspruit Eastgate Airport is
a popular destination for travellers
on their way to private game
lodges and is also near the Orpen
Gate of Kruger Park. SA Express
and Cemair fly to Hoedspruit from
Johannesburg and Cape Town.
Middelburg Airfield is one of
the larger alternate airports in
the province, boasting a 1.9km
runway that can accommodate
a 737. The annual Middelburg
Air Show is held in June. Many
game lodges have airstrips and
helipads. SA Red Cross Air Mercy
Service operates out of the old
Nelspruit airport just south of
the city.
51 MPUMALANGA BUSINESS 2018/19

OVERVIEW
Tourism
A famous old bridge is the setting for the Kruger National
Park’s newest luxury accommodation.
A
hotel on a train on a bridge in a game reserve – it sounds
like the beginning of an exciting children’s story. The Kruger
Shalati Development is the Thebe Tourism Group’s latest
accommodation offering in the Kruger National Park,
Mpumalanga’s prime tourism asset.
Guests will stay in a stationery train on the Selati Bridge which will
give them great views over the Sabie River, famous for its buffalo and
hippo sightings.
Thebe Tourism has two other current projects in the province, the
Blyde Canyon Community Project and proposed developments for
Lisbon Estate which is adjacent to the Kruger National Park. The Lisbon
development (not far from Skukuza Camp) is projected to comprise
two hotels, retail, hospitality and dining facilities and staff housing
associated with the Lisbon Estate.
At Blyde Canyon, Thebe has signed an agreement with local
communities with land claims in the Blyde River Canyon Nature Reserve
which will involve them as shareholders in the new developments. God’s
Window is to receive a Skywalk, the facilities at Bourke’s Luck Potholes will
be rejuvenated, a cable car project is planned for Three Rondavels and
another hotel is planned to boost accommodation options in the area.
SECTOR INSIGHT
The Makhonjwa Mountains
are the world’s newest World
Heritage Site.
• A glass lift into Graskop
Gorge offers unparalleled
views.
All of these projects have been
registered with National Treasury
as public-private partnerships.
They are regarded as priority
projects by the provincial
government. The Provincial
Government of Mpumalanga is
looking for more private partners
to invest in a range of ambitious
projects to boost an already
active sector that has several
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OVERVIEW
superb tourism assets, ranging from the iconic Kruger National Park
(one of about 70 parks and reserves) to bird-watching, music festivals,
car rallies and casinos.
The provincial investment agency, MEGA, has packaged many
tourism investment opportunities. The underlying principle in each
case is a form of public-private partnership where the agency would
assist in getting land-use and other legal requirements, and perhaps in
seeing that basic infrastructure was laid on, then the developer would
build and manage a tourism facility.
A transaction adviser has been appointed to flesh out these
proposals for investable tourism products. An example of infrastructure
investment from the government’s side is the upgrading of the
Manyeleti Resort, which is ongoing.
Other provincial plans regarding tourism involve promoting the
province as a convention venue (a Convention Bureau has been established
and the City of Mbombela is being encouraged to build a
large centre), adopting a strategy to attract international air links and
promoting links with foreign tourism authorities. On the final point,
Mpumalanga has started a partnership with the Ural Association of
Tourism in Russia whereby 10 tour operators from Mpumalanga visited
Yekaterinburg and a delegation from the Sverdlovsk region visited
the province.
New niches in old rocks
A three-billion-year-old micro-fossil found in the Makhonjwa Mountains
near Barberton and the border with Swaziland is thought to be the
oldest sign of life on the planet. Now the Makhonjwa Mountains,
themselves somewhere between 3.2-billion and 3.6-billion years
old, have been declared a World Heritage Site by the United Nations
Educational‚ Scientific and Cultural Organisation (UNESCO). The tourist
offering near Barberton has been branded the Genesis Route.
This brings to 10 the number of World Heritage Sites in South
Africa and opens up the possibility of a new type of niche tourism for
ONLINE RESOURCES
Graskop Gorge Lift Company:
http://graskopgorgeliftcompany.co.za
Lilizela Tourism Awards: www.lilizela.co.za
Mpumalanga Gaming Board: www.mgb.org.za
Mpumalanga Tourism & Parks Agency: www.mtpa.co.za
South African National Parks: www.sanparks.co.za
South African Tourism: www.southafrica.net
South African Tourism Services Association: www.satsa.com
Mpumalanga. In addition, funds
for conservation of the area will
be made available from the World
Heritage Fund.
Visitors to Graskop Gorge can
now drop 50m into the gorge
via a glass elevator which was
completed by Enza Construction
towards the end of 2017. Once
the R25-million Graskop Gorge
Tourism Attraction Centre is
complete (in the course of
2018), there will be a 200-seater
restaurant, an overhanging
veranda, a ticket office, space for
three curio shops and an area for
informal traders to sell their wares.
Although the province already
caters for motor-rally enthusiasts,
cyclists, runners, walkers, fishers,
horse-riders, tree-gliders, abseilers,
white-water rafters and rock
climbers, there is still tremendous
potential for more investment in
the ecotourism and adventure
tourism subsectors.
Tsogo Sun has six hotels
in the province, ranging from
two StayEasys to Southern Sun
The Ridge, which is attached
to the Ridge Casino in Witbank
(Emalahleni). The Graceland
Hotel Casino and Country Club
in Secunda is a Peermont resort.
Protea Hotels by Marriott also
has six properties in Mpumalanga,
including Protea Hotel Kruger Gate
and Hazyview. At White River,
Premier Hotel The Winkler is just
20 minutes’ drive from the Numbi
Gate of the Kruger National Park.
Forever Resorts has a big presence
in the province, catering to
many caravans and campers and
holiday-makers wanting to stay
in chalets. There is also a four-star
Forever Resorts Mount Sheba.
53 MPUMALANGA BUSINESS 2018/19

OVERVIEW
Banking and financial
services
All the major banks have agricultural divisions.
Agricultural financing is a growing sector.
Agriculture is a vital part of the Mpumalanga economy and so
it is logical that each of the big retails banks has specialists
in the province and dedicated units.
TWK Agri, a modern agricultural company which grew
out of a wattle growers and timber association, offers financing and
insurance together with the usual suite of agricultural services. Afgri,
one of the country’s biggest agricultural companies, offers financial
services (financing and insurance) under the brand Unigro. It has
another service called Gro Capital Financial Services which offers
more complicated products such as trade finance, foreign exchange
and currency and interest rate hedging
All of the big retail banks (Nedbank, Absa, Standard Bank, Capitec
and First National Bank) have a solid presence in the major towns in
the province. Agriculture is an important focus area for banks and
most have specialised divisions such as Nedbank Agribusiness. Focus
areas for this unit are agronomy (grain, oil seeds, sugar and cotton),
livestock (including game farming), horticulture (fruit and vegetables,
for example), and secondary agriculture which covers agricultural
processing and storage.
Another source of funding for farmers is the Land and Agricultural
SECTOR INSIGHT
Several new banking licences
are in the pipeline.
Development Bank of South Africa
(Land Bank), a developmentfinance
institution that falls under
the Ministry of Finance. Standard
Bank has a new black economic
empowerment agricultural fund
designed to support emerging
farmers. The R500-million fund is
designed to connect farmers who
have received farms in land reform
projects to agri-businesses that will
buy their produce.
The Masisizane Fund makes loan
financing available in sectors such
MPUMALANGA BUSINESS 2018/19
54

OVERVIEW
as agriculture and agri-processing), commercial, supply chain and
manufacturing. It also offers training and technical support and funding
to help businesses to comply with legislation.
Changes
The first new banking licence in nearly two decades was issued in 2017,
to TymeDigital by Commonwealth Bank SA. The bank will have no
physical branches although Tyme’s Money Transfer product, which it
launched in 2016, is available at Boxer and Pick n Pay. African Rainbow
Capital is the venture’s BEE partner. The banking licence is the first to
be issued since Capitec was granted a licence by the South African
Reserve Bank in 1999.
Life insurer MMI Holdings is also entering a partnership with African
Bank to enable it to start taking deposits and loaning money. It intends
to establish a R10-billion loan book.
In a province with a high proportion of rural citizens such as
Mpumalanga, the prospect of Postbank being upgraded to a fullservice
bank is positive news. The current Postbank focusses on taking
deposits and savings accounts. Postbank has secured a R3.7-billion
loan to enable it to open its own loan book. The large geographical
footprint of the Post Office will make the bank easily accessible to even
remote parts of the country.
Two other state-owned enterprises are looking to create banks,
The Ithala Development Finance Corporation is an enterprise funder
in KwaZulu-Natal that has applied for a banking licence. At national
level, there is a plan to create a Human Settlements Development
Bank. This would entail merging three entities: the National Housing
Finance Corporation, the Housing Loan Fund and the National
Urban Reconstruction and Housing Agency.
The focus will be on financing housing for poorer households
and for large state-funded housing projects. Part of the drive is to
integrate cities better and to combat the legacy of the spatial divide
ONLINE RESOURCES
Auditor-General of South Africa: www.agsa.co.za
Banking Association South Africa: www.banking.org.za
Financial Services Board: www.fsb.co.za
Post Bank: www.postbank.co.za
Public Investment Corporation: www.pic.gov.za
The Land and Agricultural Development Bank of South Africa:
www.landbank.co.za
that apartheid left behind. Privatesector
investment will be sought.
For many decades, South
Africa had a retail banking Big
Four – Standard Bank, Nedbank,
Absa/Barclays and First National
Bank. All of them have continue
to have a strong presence in the
province, but Capitec Bank has
now also become a major player
in the retail market.
Banks are working hard to
offer products to the previously
unbanked. Nedbank has
partnerships with shops such
as Boxer Stores and Pick n Pay
where customers can have access
to financial services in previously
unserviced areas and also on all
days of the week such as public
holidays and Sundays. Nedbank
also has Approve-it, which allows
customers to accept or reject an
Internet transaction by cellphone.
Standard Bank’s communitybanking
initiative offers a lowcost
cellphone-banking service.
Retailers can act as agents for the
bank, even in very remote rural
areas. Shops such as Shoprite, Pep
and Spar are connected, as are
certain spazas.
The insurance market has
become more varied over time,
with a greater variety of products
now available to more market
segments, including middleincome
earners. A typical example
of a specific product that is
responding to new realities is Old
Mutual’s iWYZE medical gap cover,
designed to pay the difference
between what a medical aid
scheme is willing to pay and what
the hospital or doctor is charging.
55 MPUMALANGA BUSINESS 2018/19

OVERVIEW
Development finance and
SMME support
A small loan can make a big difference.
SECTOR INSIGHT
Several new banking licences
are in the pipeline.
Research done by the Small Enterprise Development
Agency (Seda) shows that a high percentage of SMMEs in
Mpumalanga are in the trade and accommodation sector.
Whereas the national figure is about 43%, in Mpumalanga
it is closer to 50%. In the third quarter of 2017, Seda calculated that
the growth year-on-year of SMMEs being created reached 21% in
the province.
Seda has a number of incubators which it supports in the province:
• Furntech, furniture manufacturing, White River
• Mobile Agri-Skills Development & Training (MASDT), agricultural
training, Nelspruit
• Mpumalanga Stainless Initiative (MSI), stainless steel processing,
Middelburg (with Columbus Stainless)
• Timbali floriculture, Nelspruit
• Ehlanzeni TVET College Rapid Incubator Renewable Technologies,
Nelspruit.
Seda is a subsidiary of the national
Department of Small Business
Development (DSBD) and is one
of the most active agencies in
supporting entrepreneurs. Seda
is not a financial agency, focussing
rather on training and administrative
support, although the agency
will help SMMEs get in touch with
financial bodies.
When a small Witbank
company approached Seda to
help it become more competitive
in the field of ventilation
structures, air crossing tunnel
structures and explosion barriers,
it became clear that the pressing
need was for Peneul Nathi Trading
(pictured) to purchase its own
corrugated iron manufacturing
machine.
Seda helped the entrepreneurs
draw up a business plan for a
loan which was presented to
the Sasol Siyakha Enterprise and
Suppliers Development Trust. A
loan of R4.9-million was granted,
and the machine was bought.
Turnover increased by 48% and
an additional 25 employees were
added to the staff.
Sappi’s long-term Ngodwana
mill project will spend more than
MPUMALANGA BUSINESS 2018/19
56

OVERVIEW
R600-million on procuring goods and supplies from broad-basedblack-economic-empowered
companies, of which R51-million will
go to SMMEs.
Other companies supporting SMMEs through their buying chain
include Woolworths and Anglo American. Woolworths is funding
TechnoServe to ensure that small tomato growers can grow produce
that will meet the demanding standards of the retailer, and to help
them expand production. A regular supplier to Woolworths, Qutom,
assists with the project.
Provincial government
The Mpumalanga Economic Growth Agency (MEGA) is the implementing
agent of the provincial government’s SMME support policy.
An agreement has been signed by Standard Bank and MEGA to
launch an SME Fund with a capitalisation of R500-million. In addition
to a general commitment from the provincial government to purchase
from SMMEs, township enterprises or co-operatives where possible,
MEGA has received loan applications for R72.7-million. Rural enterprises
feature strongly in the loan book profile, and there is significant support
for women and youth-owned businesses.
MEGA has also overseen the rehabilitation of industrial premises in
former homelands and formed partnerships with financial institutions
for funding.
A Social Enterprise Model is being introduced to try to link small
enterprises with infrastructure projects. Planners want to see local
businesses building the roads and public buildings in the areas where
those facilities are sited. MEGA has been allocated R10-million to assist
SMMEs and co-operatives to make the most of opportunities that
this model will create. The construction sector has huge potential for
SMMEs, with products such as bricks, doors, tiles, trusses, concrete
pipes and similar products providing opportunities for growth.
Research is being conducted on the agricultural or manufacturing
sectors across the province to guide future interventions to support
SMMEs and co-operatives.
ONLINE RESOURCES
Gazelles: www.nationalgazelles.org.za
Mpumalanga Economic Growth Agency: www.mega.gov.za
Mpumalanga Stainless Initiative: www.mpstainless.co.za
National Department of Small Business Development:
www.dsbd.gov.za
Small Enterprise Development Agency: www.seda.org.za
The provincial government
plans to use state buying power
to buy goods and services
produced and supplied by
township and rural SMMEs and
co-operatives. The plan includes
buying food from co-operatives
to supply the school nutrition
programme and the provincial
traffic college.
Examples of township
businesses supported by the
Department of Economic
Development and Tourism
(DEDET) are an agreement with
Sumitomo Rubber SA (Dunlop)
to promote local tyre enterprises
and financial support for
the commissioning of a sanitary
towel plant by the Ntirhisano
Sanitary Worker Co-operative
in Bushbuckridge (and support
for business development and
access to market).
The National Gazelles is
a national SMME accelerator
jointly funded by Seda and the
DSBD. The aim is to identify and
support SMMEs with growth
potential across priority sectors
aligned with the National
Development Plan and Seda’s
strategy. Businesses can receive
up to R1-million for training,
productivity advice, business
skills development and the
purchase of equipment.
The Industrial Development
Corporation (IDC) is a strong
supporter of SMMEs either by
disbursing loans or by taking
minority shares in enterprises
and giving advice. The
Development Bank of Southern
Africa (DBSA) is another major
funder of public projects.
57 MPUMALANGA BUSINESS 2018/19

OVERVIEW
Education and training
The University of Mpumalanga is expanding.
SECTOR INSIGHT
The Colliery Training College
has won a national award.
• The University of
Mpumalanga will spend
R600-million per year on new
buildings.
In 2017 the University of Mpumalanga built a library, a residence,
executive offices, a hall and an administration building. (Photo:
Federale Stene.)
The University of Mpumalanga began in 2014 with 167 students
and no facilities to speak of. It intends enrolling 3 220 students
in 2019 and has already expanded its academic courses beyond
education, agriculture and a diploma in hospitality to
include bachelor’s degrees in arts and commerce. Geology will soon be
offered as part of a BSc. This is in response to the decision by UNESCO
to declare the Barberton Makhonjwa Mountains a World Heritage Site.
Students from the university punched above their weight in a 2017
national competition organised by Enactus, an NGO that encourages
students to develop entrepreneurial ideas that will help the world.
The UMP team secured seven prizes in total, including first prizes in
Local Economic Development and in the MTN SA Foundation ICT
Challenge Award. The latter award was for the development of an
online ICT system to assist the City of Mbombela to monitor and
regulate informal trading.
The main campus is at Mbombela (the former College of Agriculture)
with satellites at Siyabuswa (a former education college) and
KaNyamazane, which will host hospitality studies.
Another Mpumalanga educational institution in the awards is the
Colliery Training College, which was named by the National Skills
Authority as the best artisan development programme in South Africa,
2014-2016. Although the college is funded by the major coal companies
such as Exxaro, South32 and Anglo American Thermal Coal, the college
is not limited to the coal industry.
Many of the biggest investors
in the province support education
initiatives. These include Sappi’s
donation of several classrooms
to Khanyisile Primary School
near Barberton and programmes
for pupils and teachers at
Entabamhlophe Combined
School in Elandshoek near the
company’s mill at Ngodwana.
More than 800 000 pupils in
primary and secondary schools
are beneficiaries of the provincial
department of education’s school
nutrition programme and 1 604
schools in the province are in the
‘‘no-fee school’’ category.
Bursaries
Several big employers in
Mpumalanga support further
education through bursaries.
Sasol offers an all-inclusive bursary
for students in engineering,
science and accounting. The bursary
also has performance-based
awards and allowances for things
like laptops and calculators. Top
performers are often asked to
join Sasol.
MPUMALANGA BUSINESS 2018/19
58

OVERVIEW
Sasol has also committed to taking on qualified apprentices from
the Hydra Arc academy in Secunda, another reputable training centre.
Four-year bursaries at 10 institutions of higher learning have
been provided to 60 Mpumalanga students by Eskom and GE Steam
Power. The R30-million scheme is focussed on technicians, scientists
and engineers.
The provincial government intends increasing from R200-million
that it currently spends on tertiary bursaries. In 2018 there were 1 017
recipients studying across South Africa with a further 100 studying
medicine, veterinary science, education (maths and science) and
engineering in Russia.
An inter-departmental Bursary Committee, with input from private
companies, will be formed to ensure that the best candidates are
selected and properly supported.
Training
The signing of a treaty with the Belarus region of Mogilev means that
Mpumalanga students will study at the Belarussian State Agricultural
Academy in agri-industry fields such as agronomy, biotechnology
and aquaculture.
An agreement between MEGA and Minsk Tractor Works to build an
assembly plant in Mpumalanga will not only mean work and income,
but it will also create opportunities for training.
Mpumalanga has three Technical and Vocational Education and
Training (TVET) Colleges, with an enrolment of over 36 000. UNISA,
the Tshwane University of Technology and the Vaal University of
Technology also have satellite campuses in the province.
The three TVET colleges are: Gert Sibande (four campuses and a
skills academy), Nkangala and Ehlanzeni, which has six campuses, a
skills centre and a satellite campus.
Ehlanzeni TVET College offers 10 National Certificate (Vocational)
programmes including ICT, Finance, Economics and Accounting,
Engineering and Related Design, and Tourism. Several shorter skills
courses are offered: automotive repairs and maintenance, computer
practice, entrepreneurship, municipal administration and
communications management.
ONLINE RESOURCES
Mpumalanga Department of Education:
www.mpumalanga.gov.za/education
Sasol bursaries: www.sasolbursaries.com
Southern African Wildlife College: www.wildlifecollege.org.za
University of Mpumalanga: www.ump.ac.za
Nkangala TVET College
has Civil Engineering and
Building Construction at its CN
Mahlangu campus and Electrical
Infrastructure Construction
at three of its five campus,
among its seven NCV academic
programmes.
The Mpumalanga Regional
Training Trust (MRTT) is a Section
21 company very active in skills
training. It has several sites in the
province, including a Hospitality
and Tourism Academy at Karino
just outside Nelspruit.
The MRTT’s constructiontraining
facility is accredited
as a Construction Centre of
Excellence and offers courses
in brick-laying, plumbing, carpentry
and other constructionrelated
skills.
The Southern African Wildlife
College, offering diploma and
short courses in conservation, is a
joint World Wide Fund for Nature
South Africa (WWF-SA) and Peace
Parks Foundation initiative. The
college is located near the Orpen
Gate on the edge of the Kruger
National Park.
Eskom’s Generation
Learnership programme has
absorbed 644 graduates into
permanent employment with a
further 88 undergoing training.
Provincial government’s other
skills initiatives include the New
Venture Creation programme
(youth start-up skills), the Graduate
Placement Programme and the
Artisan Development Programme
with the Mining Qualifications
Authority. There is a plan to develop
a Skills Development Hub
in Emalahleni, in partnership with
the private sector.
59 MPUMALANGA BUSINESS 2018/19

LISTING
Mpumalanga
Provincial Government
A guide to Mpumalanga Province’s government departments.
Visit www.mpumalanga.gov.za
Office of the Premier
Premier: Refilwe Mtsweni
Physical address: 2nd Floor, Building 2, 7 Government Boulevard,
Riverside Park Extension 2, Mbombela 1200
Postal address: Private Bag X11291, Mbombela 1200
Tel: +27 13 766 0000 | Fax: +27 13 766 2494
Email: premier@prem.mpu.gov.za
Website: www.mpumalanga.gov.za/otp1/
Department of Agriculture, Rural
Development, Land and
Environmental Affairs
MEC: Vusumuzi Shongwe
Physical address: 2nd Floor, Building 6, 7 Government Boulevard,
Riverside Park Extension 2, Mbombela 1200
Postal address: Private Bag X11219, Mbombela 1200
Tel: +27 13 766 6067/8 | Fax: +27 13 766 8429
Department of Community Safety, Security
and Liaison
MEC: Petrus Ngomana
Physical address: 2nd Floor, Building 4, 7 Government Boulevard,
Riverside Park Extension 2, Mbombela 1200
Postal address: Private Bag X11269, Mbombela 1200
Tel: +27 13 766 4082 | Fax: +27 13 766 4616 / 4600
Department of Cooperative Governance and
Traditional Affairs
MEC: Speedy Mashilo
Physical address: Upper Ground Floor, Building 6, 7 Government
Boulevard, Riverside Park Extension 2, Mbombela 1200
Postal address: Private Bag X11304, Mbombela 1200
Tel: +27 13 766 6087 | Fax: +27 13 766 8441/2
Website: http://cgta.mpg.gov.za
Department of Culture, Sport and Recreation
MEC: Thandi Shongwe
Physical address: 2nd Floor, Building 5, 7 Government Boulevard,
Riverside Park Extension 2, Mbombela 1200
Postal address: Private Bag X11316, Mbombela 1200
Tel: +27 13 766 5032
Fax: +27 13 766 5591
Department of Economic Development
and Tourism
MEC: Eric Kholwane
Physical address: 1st Floor, Building 4, 7 Government Boulevard,
Riverside Park Extension 2, Mbombela 1200
Postal address: Private Bag X11215, Mbombela 1200
Tel: +27 13 766 4004
Fax: +27 13 766 4613
Website: www.dedtmpumalanga.gov.za
Department of Education
MEC: Sibusiso Malaz
Physical address: Building 5, 7 Government Boulevard, Riverside Park
Extension 2, Mbombela 1200
Postal address: Private Bag X11341, Mbombela 1200
Tel: +27 13 755 5000
Fax: +27 13 766 5577
Website: www.mpumalanga.gov.za/education/
Department of Health
MEC: Gillion Mashego
Physical address: 2nd Floor, Building 3, 7 Government Boulevard,
Riverside Park Extension 2, Mbombela 1200
Postal address: Private Bag X11285, Mbombela 1200
Tel: +27 13 766 3754
Fax: +27 13 766 3475
Website: www.mpuhealth.gov.za
MPUMALANGA BUSINESS 2018/19 60

LISTING
Department of Human Settlements
MEC: Speedy Mashilo
Physical address: Building 7, 7 Government Boulevard, Riverside Park,
Mbombela 1200
Postal address: Private Bag X11328, Mbombela 1200
Tel: +27 13 766 6088
Fax: +27 13 766 8441
Website: http://dhs.mpg.gov.za/
Department of Public Works,
Roads and Transport
MEC: Sasekani Manzini
Physical address: 7 Government Boulevard, Riverside Government
Complex Building, Mbombela 1200
Postal address: Private Bag X 1302, Mbombela 1200
Tel: +27 13 766 6696 / 6979
Fax: +27 13 766 8453 / 8471
Website: http://dpwrt.mpg.gov.za
MEC: Busi Shiba
Physical address: Son Joy Building, Boulevard Street, Riverside Park,
Mbombela 1200
Postal address: Private Bag X11285, Mbombela 1200
Tel: +27 13 766 3428
Fax: +27 13 766 3456/7
Website: www.dsdmpu.gov.za
Provincial Treasury
MEC: Sikhumbuzo Kholwane
Physical address: Upper Ground Floor, Building 4,
7 Government Boulevard, Riverside Park
Extension 2, Mbombela 1200
Postal address: Private Bag X11205, Mbombela 1200
Tel: +27 13 766 3250
Fax: +27 13 766 3459
Website: http://treasury.mpg.gov.za
Department of Social Development
Mpumalanga Local Government
A guide to district and local municipalities in Mpumalanga.
EHLANZENI DISTRICT MUNICIPALITY
Physical address: 8 Van Niekerk Street, Nelspruit 1201
Postal address: PO Box 3333, Nelspruit 1200
Tel: +27 13 759 8500
Fax: +27 13 759 8539
Website: www.ehlanzeni.gov.za
Bushbuckridge Local Municipality
Tel: +27 13 799 1851
Fax: +27 13 799 1865
Website: www.bushbuckridge.gov.za
City of Mbombela Local Municipality
Tel: +27 13 759 9111
Fax: +27 13 759 2070
Website: www.mbombela.gov.za
Nkomazi Local Municipality
Tel: +27 13 790 0245 | Fax: +27 13 790 0886
Website: www.nkomazi.gov.za
Thaba Chweu Local Municipality
Tel: +27 13 235 7300
Fax: +27 13 235 1108
Website: www.tclm.co.za
GERT SIBANDE DISTRICT MUNICIPALITY
Physical address: Cnr Joubert and Oosthuise streets, Ermelo 2350
Postal address: PO Box 1748, Ermelo 2350
Tel: +27 17 801 7000
Fax: +27 17 811 1207
Website: www.gsibande.gov.za
Chief Albert Luthuli Local Municipality
Tel: +27 17 843 4000
Fax: +27 17 843 4001
Website: www.albertluthuli.gov.za
Dipaleseng Local Municipality
Tel: +27 17 773 0055 | Fax: +27 17 773 0169
Website: www.dipaleseng.gov.za
61
MPMALANGA BUSINESS 2018/19

LISTING
Govan Mbeki Local Municipality
Tel: +27 17 620 6000 | Fax: +27 17 634 8019
Website: www.govanmbeki.gov.za
Lekwa Local Municipality
Tel: +27 17 712 9600 | Fax: +27 17 712 6808
Website: www.lekwalm.gov.za
Mkhondo Local Municipality
Tel: +27 17 826 8100 | Fax: +27 17 826 3129
Website: www.mkhondo.gov.za
Msukaligwa Local Municipality
Tel: 086 116 7852 | Fax: +27 17 801 3851
Website: www.msukaligwa.gov.za
Pixley Ka Isaka Seme Local Municipality
Tel: +27 17 734 6100 | Fax: 086 630 2209
Website: www.pixleykaseme.gov.za
NKANGALA DISTRICT MUNICIPALITY
Physical address: 2A Walter Sisulu Street, Middleburg 1055
Postal address: PO Box 437, Middleburg 1050
Tel: +27 13 249 2000 | Fax: +27 13 249 2056
Website: www.nkangaladm.org.za
Dr JS Moroka Local Municipality
Tel: +27 13 973 1101 | Fax: +27 13 973 0974
Website: www.moroka.gov.za
Emakhazeni Local Municipality
Tel: +27 13 253 7600
Fax: +27 13 253 2440
Website: www.emakhazeni.gov.za
eMalahleni Local Municipality
Tel: +27 13 690 6911 | Fax: +27 13 690 6207
Website: www.emalahleni.gov.za
Steve Tshwete Local Municipality
Tel: +27 13 249 7000
Fax: +27 13 243 2550
Website: www.stlm.gov.za
Thembisile Hani Local Municipality
Tel: +27 13 986 9100 | Fax: +27 13 986 0995
Website: www.thembisilehanilm.gov.za
Victor Khanye Local Municipality
Tel: +27 13 665 6000 | Fax: +27 13 665 2913
Website: www.victorkhanyelm.gov.za
MUNICIPALITIES IN MPUMALANGA
Limpopo
Bushbuckridge
North West
Dr JS Moroka
Thembisile
Nkangala
Emakhazeni
Thaba Chweu
Mbombela
Ehlanzeni
Nkomazi
Mozambique
Gauteng
Victor Khanye
eMalahleni
Steve Tshwete
Chief Albert Luthuli
N
Dipaleseng
Govan Mbeki
Msukaligwa
Gert Sibande
Swaziland
Lekwa
Free State
Pixley Ka Seme
Mkhondo
Metropolitan/District Municipality Boundary
Local Municipality Boundary
District Municipality
Amajuba
Local Municipality
uMlalazi
MPUMALANGA BUSINESS 2018/19 62

INTERVIEW
Advocating for a just
economic society
The Provincial Secretary of the Black Management Forum
Mpumalanga, Mawela Ndlamlenze, explains how a
transformation master plan has been created.
Mawela Ndlamlenze
BIOGRAPHY
Mawela Ndlamlenze is from
Ermelo and has a qualification
within the Internal Audit
profession. He works in the
Risk Management Section of
the Govan Mbeki Municipality
where he also serves on the
Audit Committee and the Risk
Management Committee. Having
served various non-profit
organisations, Mawela has various
business initiatives under
his company Wishful Dreams
Investment.
Please outline the main objectives of the Black Management Forum.
The forum is committed to advocate for a just economic society for
the collective advancement of primarily black people in the social and
economic mainstream including:
• to train and develop primarily black professionals to be effective
business and management leaders
• to ensure appropriate recruitment and advancement of black people
into business organisations to achieve an equitable dispensation
• to link public, private and academic institutions into an effective
network to support interdisciplinary communications, management
innovation and professional development among black people
• to encourage professionals to play an active role in the broader
South African community by participating in community outreach.
What is your current focus?
BMF Mpumalanga is focusing on corporate social investment by companies
in local communities; business skills development through relationships
with private organisations and state organs; mentorship; creating
dialogue platforms through events that cover pertinent social issues;
and canvassing for employment for our members, especially in senior
positions within the private sector.
What are some of the challenges facing business in Mpumalanga?
The challenges our members face are access to market, access to funding,
government legislation not being favourable to SMMEs and private
policy that is structured in a way to disempower SMMEs.
What are some of your most recent achievements?
The recent achievement for BMF Mpumalanga is the facilitation between
the BMF, civil society, labour unions and government in the development
of the transformation master plan which seeks to outline key deliverables
for transformation.
How is the relationship between the BMF and civil society, labour
unions and government?
We are reviving and strengthening all these relationships, including the
alignment with other black professional bodies.
63 MPUMALANGA BUSINESS 2018/19

INDEX
INDEX
Black Management Forum (BMF).................................................................................................... 63
Columbus Stainless ............................................................................................................................ 7, 24
Komati Basin Water Authority (KOBWA)...................................................................................... 46
Mpumalanga Economic Growth Agency (MEGA)............................................12, 14, OBC
MTN.......................................................................................................................................................................3
Nedbank............................................................................................................................................5, 26, IBC
Sasol..................................................................................................................................................................IFC
Superfecta Trading................................................................................................................................... 36
Transnet Pipelines..................................................................................................................................... 42
MPUMALANGA BUSINESS 2018/19 64

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