Manufacturing
National manufacturing output improved in the forth quarter of 2009.
• Food and forestry are the biggest employers in Mpumalanga.
In 2009, manufacturing represented 17.7% of Mpumalanga’s gross geographic product (GGP), a figure which is slightly lower than in previous years. This is because of an increase in mining activity and a downturn in steel production. The national figure for manufacturing in the first quarter of the year was 22% down on the previous year’s figure.
However, the fourth quarter of 2009 represented a big turnaround for the sector, with Statistics South Africa reporting that output increased by 10% over the same period in 2008.
Mpumalanga’s strong manufacturing sector is closely tied to the province’s abundant mineral and agricultural resources. Large processing plants take advantage of the sugar and forestry plantations in the eastern regions. Approximately 70% of jobs in the manufacturing sector are in food and forestry.
An advantage enjoyed by Mpumalanga is that it is close to South Africa’s most significant market, Johannesburg, and is well served by transport links. Roads and railways connect the province with the ports of Maputo, Richards Bay and Durban.
Several entrepreneurs are making progress in manufacturing enterprises, supported by Mpumalanga’s development agency and organisations such as the Small Enterprise Development Agency (Seda). Successful enterprises include charcoal-making, pottery, furniture and brick-making.
Standerton, situated in the southern part of the region, has textile manufacturing capacity in the form of Standerton Mills. It is also home to several plants that use local raw materials: Nestlé has a manufacturing plant (making infant cereal), Rainbow runs farms in the Carolina district and Early Bird is prominent.
Agri-processing forms the backbone of manufacturing in the Lowveld. Sappi’s paper mill at Ngodwana is one of the biggest in the country. Mondi (softwood sawmill at Sabie) and Sonae Novobord (board processing) also have large plants. Apart from timber and wood products, Nelspruit and White River have several furniture manufacturing concerns. Other enterprises include leather footwear and tobacco.
Sugar is the other major agricultural product supplying raw produce for manufacturing. Tsb Sugar runs two large mills and produces fruit juices through a subsidiary company. Nelspruit is the centre of the province’s foodprocessing cluster.
The south-eastern area has significant tracts of land under forest and Piet Retief in the Mkhondo Local Municipality is the site of a large pulp and paper plant run by Mondi.
Online resources
Consumer Goods Council of South Africa: www.cgcsa.co.za
Department of Trade and Industry: www.thedti.gov.za
Mpumalanga Economic Growth Agency: www.mega
