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Investing in Mpumalanga

Lying in the northeast of South Africa and bordering Mozambique and Swaziland, Mpumalanga boasts a healthy growth rate, consistently higher than the national average for the past two decades.

The province shares borders with Limpopo to the north, Gauteng to the west, the Free State to the southwest and KwaZulu-Natal to the southeast. The southern part of the magnificent Kruger National Park lies in the east of the province.

It has an established business sector, a well-developed infrastructure of roads, railways and telecoms, plentiful semi-skilled labour, a sophisticated commercial and financial business structure complemented by a full spectrum of professional services, good access to overseas markets, quality housing, and excellent medical, social and cultural facilities.

Modern industrial parks are found throughout the province and standard factory buildings are available, while custom-built factories can be constructed according to specification.

• Mpumalanga overview
• Mpumalanga provincial government

Mpumalanga Economic Growth Agency

The Mpumalanga Economic Growth Agency (Mega) promotes trade and investment in the province and helps new investors relocate there painlessly.

Set up by the provincial government, the agency is based in Nelspruit, with offices in Witbank and Johannesburg and offers a one-stop service to potential investors and exporters.

• Mpumalanga Economic Growth Agency

The Maputo Development Corridor

The Maputo Development Corridor, which links the province with Gauteng and the deepwater port of Maputo in Mozambique, heralds a new era of economic development and growth for the region. As the first international toll road in Africa, the corridor is set to attract investment and release the local economic potential of the landlocked parts of the country.

Projects planned for the corridor include:

• The upgrading of the rail link between South Africa and Mozambique.
• The dredging of the Maputo harbour to accommodate vessels of over 30 000 tons.
• The upgrading of dockside facilities in Maputo.
• The installation of a joint digital microwave telecommunications system.

The growth-generating potential of the corridor will not end here, as many of the long-term investment opportunities of the corridor will only be realised once the infrastructure is in place to support them.

Much of this infrastructure will be centred in Mpumalanga, making the province an attractive investment prospective.

• Maputo Development Corridor

Industry

Mpumalanga is rich in coal reserves, and home to South Africa's major coal-fired power stations - three of which are the biggest in the southern hemisphere. Witbank is the biggest coal producer in Africa, while Its is the site of the country's second oil-from-coal plant after Sasolburg.

Mpumalanga produces about 80% of the country's coal and remains the largest production region for forestry and agriculture. Mining, manufacturing and electricity contribute to 41.4% of the province's GDP, with the remainder from government services, agriculture, forestry and related industries. Mpumalanga is the fourth-biggest contributor to the South Africa's GDP.

One of the country's largest paper mills is situated at Ngodwana, close to its timber source. Middelburg produces steel and vanadium.

The best-performing sectors in the province include mining, manufacturing and services. Tourism and agriprocessing are potential growth sectors.

• Mpumalanga Manufacturing Advisory Centre

Tourism

Mpumalanga already rates as one of South Africa's most popular tourist destinations. Attractions range from game viewing and bird watching to scenic drives across the valleys and peaks of the vast Drakensberg escarpment. In the eastern region lies the southern half of the Kruger National Park, a nature reserve teeming with African wildlife in a total area roughly the size of Israel.

• Mpumalanga Tourism Authority
• Kruger National Park

Agriculture

An abundance of citrus and many other subtropical fruit - mangoes, avocados, litchis, bananas, pawpaws, granadillas and guavas - as well as nuts and a variety of vegetables are produced in Mpumalanga.

Nelspruit is the second-largest citrus-producing area in South Africa and is responsible for one third of the country's export in oranges. The Institute for Tropical and Subtropical Crops is located in the city.

Groblersdal is an important irrigation area, yielding crops such as citrus, cotton, tobacco, wheat and vegetables. Carolina-Bethal-Ermelo is mainly a sheep-farming area, but potatoes, sunflowers, maize and peanuts are also produced in the region.

• Download the Department of Trade and Industry's Provincial Economic Overview (1.8Mb .pdf file) here.

SAinfo reporter