Business Support Services

• The support-services sector is ready to grow with the provincial economy

Mining and agriculture are the bedrock of Mpumalanga’s economy. The strong manufacturing sector is dependent on the strength of the two primary drivers, but each of these important sectors also needs a wide range of business-support services to keep the wheels of the economy well oiled. Mpumalanga is well served in this regard.

Business-support services include those services that are not the primary concern of the business, but contribute significantly to the smooth running of every business operation. In many cases, especially with large operations such as in the mining, manufacturing and agriculture sectors, these services are outsourced to specialist service providers. Services include catering, security, cleaning services, stationery and air conditioning, software and hardware management, staffing, marketing and recruitment, postal and courier services, and accounting and bookkeeping.

Although the South African economy experienced slowdowns in 2009, prospects for the future remain robust. The decision of listed electrical wholesaler ARB to open an office in Nelspruit during this period is indicative of the confidence in the ability of events such as the 2010 Fifa World Cup and initiatives such as the Maputo Development Corridor to boost growth in the region. ARB stocks and distributes the essential materials required for electrification in the construction and mining industries. Security services are vital to any small or large business in South Africa, and in this regard a company such as Group 4 Securicor (G4S) provides the type of support that allows business to continue as normal. G4S operates nationwide and, with more than 15 000 employees, it has the most comprehensive operational footprint among security companies in South Africa’s nine provinces.

Another national company with a significant footprint in more than one Mpumalanga town is employment services provider Kelly Group. The Kelly Group is represented in several subsectors by nine companies such as Accountants on Call and Kelly Executive Secretary Appointments.

While G4S and Kelly represent large, nationwide service providers, much of the business-support services sector comprises small and medium enterprises. The sector lends itself especially to entrepreneurship and small business start-ups. An example of a successful case of a smaller business model rolling out into something more substantial is the case of Nothesa Cleaning Services. This company is a 100% black-female-owned company and has grown in recent years to the extent that it now employs more than 100 staff.

KEY CONTACTS
National Department of Trade and Industry (the dti): www.thedti.gov.za
PostNet Southern Africa: www.postnet.co.za
Services Seta: www.serviceseta.org.za
South African Post Office: www.postoffice.co.za