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You are commenting using your Google account. You are commenting using your Twitter account. You are commenting using your Facebook account. Land in Mbombela has been bought and registered for the required use as the Mpumalanga International Fresh Produce Market. The ha site is near rail and road links and private investors are sought to be partners in building the top structure; services are being laid on by the province.
The aim is to make the Fresh Produce Market excellent in every way, including cold chain protection and in terms of ripening facilities. Access to such facilities will improve market access for every type of Mpumalanga farmer, but in particular it will open up new opportunities for small-scale farmers who had previously not had access to such facilities.
Helping these farmers and co-operatives gain access to new domestic and international markets is among the aims of the Fresh Produce Market. The province is one of the key exporters of macadamia nuts, a subsector that is growing at a remarkably fast pace. But there is relatively little agri-processing that takes place in the province, with most of the products being exported in their raw state.
The Fresh Produce Market can accommodate investors who want to start factories to manufacture products such as juice, or packaging firms. Transport infrastructure The Moloto Development Corridor refers to rail and road links running west-to-east from Gauteng Province into Mpumalanga. The movement of increased numbers of commuters will obviously also create opportunities for selling things, and so the project is inviting retail firms to get involved.
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Better access along the corridor will also improve access for companies in the manufacturing sector and there will be opportunities in the housing sector as well. The very efficient Gautrain in neighbouring Gauteng Province has shown that good rail links drive property development because commuters are attracted to the idea of getting to and from work quickly.
The economic benefits of the improved rail link will be especially felt in the local municipalities of Thembisile Hani and Dr JS Moroka. With a good road in place, conditions for traders and manufacturers along the corridor will be very favourable. Almost all the roads in the province are maintained by the provincial government. MEGA proposes a system of concessions to be granted to private developers who would take responsibility for a section of road: the developer would provide funding for the planning, construction and maintenance of the roads for the duration of the concession.
Mining has also been going on for many years with the result that the water table has risen and acidic mine water damage is widespread. Partners are sought to address the acid mine water problem, using the latest technology. Health infrastructure Providing healthcare to citizens is a core function of provincial government. Nearly Rmillion will be spent in the next three years by Mpumalanga on renovating and building new primary healthcare facilities.
The province hopes to find investors to build another three new hospitals.
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Medical staff in such facilities would be from the Department of Health but all non-core activities would be provided by the private company, including management of the hospital. A related scheme aims for the development of a healthcare park to accommodate a range of healthrelated companies and service providers. Serviced land has been allocated for this project. Mpumalanga itself has good rainfall but there are not enough dams to take advantage of that blessing.
So strong has been the demand for housing in Thekwane in the Mbombela Municipality that planners want to develop a fully-formed town to accommodate it.
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A phased development would see a private developer work with MEGA, who would assist with all landuse issues and planning approval. The plan envisages a mix of residential, commercial and public land-use. Across the province, there is a housing backlog of The provincial government owns many parcels of land throughout the province that are suitable for housing developments and seeks investors who are willing to build mixed-use developments that includes low-cost housing and rental stock.
This may mean that higher income-generating units have to be incorporated into the broader development office spaces, retail, etc but affordable housing must form part of the package. Mpumalanga is already a much-visited area. The famous Kruger National Park, several exclusive private game reserves and many areas of great natural beauty ensure that Mpumalanga is a must-see destination for most international visitors.
Further leveraging these advantages could bring greater economic development to the province. To that end, MEGA has identified several priority projects that have been packaged to appeal to international investors: Blyde River Tourism Cluster More than a million visitors every year look into this awe-inspiring canyon, but they seldom stay for long. This project aims to give the visitor something to do and a closer look at the canyon via a cable car trip to Blyde Lake. A related hotel and restaurant development and a skywalk for another, adventurous, way of looking are all part of the proposal, which could be parcelled out to a number of investors.
Energy Mpumalanga is one of the most important provinces in South Africa in terms of power generation, but coal-fired power stations cannot be the only solution. To that end, the national government has started a programme to get private investors to build renewable energy plants to provide to the national grid. The Boschejskop Hydro Dam project would achieve two goals — alleviate the water shortage in the provincial capital of Mbombela and provide MW of power.
A private investor would be asked to do the feasibility study and then finance and construct the facilities with two future revenue streams in prospect: a water off-take agreement with Mbombela and the sale of electricity to the national power utility Eskom.
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Other projects suitable for public-private partnership include the construction of a solar park to power the Nkomazi Special Economic Zone and a wind power plant to be built at Sabie and Lydenburg. Concessions are on offer to private operators who can install, operate and maintain such a system. The provincial government will sign a power purchase agreement PPA with the concessionaire.
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Space is also available for the construction of a related hotel and multi-purpose recreational facilities. Visitors to the Kruger National Park can fly into the Kruger Mpumalanga International Airport, which is on the outskirts of Mbombela, and the town is located near to Swaziland and Mozambique, both tourist destinations of their own. Mandela Iconic Eye Mbombela aims to build a statue to pay tribute to Nelson Mandela, an icon of the struggle against apartheid and the first president of democratic South Africa. The statue is planned for a hill overlooking the town, and will be accompanied by a tourist wheel, a cable car, restaurants and a conference facility.
The value of the whole project has been estimated at R2. 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. 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. 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.
The initial MCEP, launched in , was so successful that it was oversubscribed with almost businesses receiving funding. A second phase of the programme was scheduled for launch in 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 Rmillion. Specific tax deductions are permissible for larger companies investing in the manufacturing sector under Section 12i of the Income Tax Act.
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. 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.
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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 with the local authority Relevant only to businesses dealing in fresh foodstuffs or health matters. There are a range of administrative procedures that need to be fulfilled.
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. The business must also create jobs for South African citizens. This guarantee is refundable once the applicant has either left South Africa permanently or obtained permanent residence.