DEPT. OF ENERGY DEPT. OF ENERGY WOESA WOESA Busines Business s Opportu Opportunities nities in t in the he Energy Energy Sector Sector WORK WORKSH0P SH0P Bundu Lodge, Nelspruit 27 th - 28 th August 2014
OFFICIAL ECONOMIC DEVELOPMENT AGENCY FOR THE PROVINCE OF MPUMALANGA TRADE AN TRADE AND D INVE INVEST STMEN MENT T PR PROMO OMOTIO TION N
MEGA Structure:- • Infrastructure Development & Projects • Property Development & Management • Housing • Business Development • Trade and Investment Promotion
MEGA Structure… • Trade and Investment Division ► Investment Promotion – attracting FDI and LDI to the Province ► Foreign Trade Promotion – developing and promoting export trade from the Province
Trade and Investment Division MPUMALANGA PROVINCE ECONOMIC OVERVIEW
Comparative Comparative GDP GDP Mpumalanga Province – USD 23 billion 6 % of South Africa’s GDP - USD 384 billion (2012) • Mozambique 14 billion • Tanzania 28 billion • Zambia 21 billion • Jamaica 15 billion • Iceland 18 billion • Bolivia 27 billion • Paraguay 25 billion Source IHS Global Insight and The World Bank
Mpumalanga Mpumalanga A Div A Diverse Econ erse Economy omy Agriculture Mining 3% 18% Manufacturing 25% Electricity 13% Construction Trade 14% 7% Transport 11% 6% 3% Finance Com Service Gross Value Added by Region: 2012 Source: Global Insight
Economic Economic Divers Diversity ity Mpumalanga host to:
Mpu Mpumalang malanga a Manu Manufacturing facturing • 14 percent of GGP • Petro-chemical industries - SASOL • Chrome-alloy and steel plants • Sugar, paper, pulp and saw mills • Investment Opportunities
Mpuma Mpumalanga langa Mining Mining • 25 percent of GGP • 76 percent of South Africa’s coal production • 50 percent of the national coal reserves • Gold, iron ore, chrome, magnetite vanadium, etc:
Mpuma Mpumalanga langa Tour Tourism ism • 8 percent of GGP • In addition to the Internationally known Kruger Park there are 71 private game parks and reserves • Attracting in access of one million foreign visitors annually
Mpuma Mpumalanga langa Electr Electricity icity • 6 percent of GGP • Host to 12 of ESKOMS 21 power stations • 80 percent of South Africa’s electricity • Two new power stations planned
Mpuma Mpumalanga langa Agricultur Agriculture & Fo & Forestr restry • 3 percent of GGP • Summer cereals and legumes • Subtropical and citrus fruit • Soft and hard wood – 40% of SA’s forestry
World-Class Infrastructure • Maputo Development Corridor • Road and Rail links • Maputo Port • Kruger Mpumalanga International Airport (KMIA)
Mpumalanga Province Foreign Direct Investments Name of Sector Country of Origin Investment Great Basin Gold Gold mining USA/ Canada Phillips Mining Machinery USA Nova Board /Sonae Timber Board Portugal McCain Foods Food Processing Canada Blue Skies Food Processing United Kingdom Sumo Coal Coal Mining Turkey Kangara Coal Mining Spain Jindal Mining Coal Mining India Pestana Tourism Portugal
Mpumalanga Province Exports: 1999 – 2013 1999: R2bn 2012: R12bn
ZAR : USD Exchange Rate: 2000 – 2014
Mpumalanga Province Exports Value : 2009 - 2013 2009: R7.5 bn 2010: R10.9 bn 2011: R12.5 bn 2012: R12.0 bn 2013: R12.0 bn
Export Markets 2013
Exports by District
Mpumalanga Province OUR MAJOR EXPORT PRODUCTS ► Macadamia Nuts ► Ferro-alloys ► Avo, Guava, Litchis ► Coal ► Arts & Crafts ► Iron and Steel ► Wood ► Manganese ► Vegetables ► Citrus Fruit ► Flowers and Foliage ► Fruit Juice Concentrate ► Sugar ► Pulp and Paper ► Chemical Products
Mpumalanga Province Trade Profile Top op 10 10 Exp Expor ort t Mar Markets ets for Mpuma or Mpumalang langa a in in 2013 2013 1 Netherlands R 2,079,012,295 2 Mozambique R 2,021,627,955 3 United States R 1,357,322,193 4 Japan R 1,170,282,310 5 China R 1,149,934,511 6 India R 657,391,069 7 Hong Kong R 496,760,302 8 Zimbabwe R 469,033,411 9 Angola R 222,146,544 10 Canada R 211,927,508
Mpumalanga Province Trade Profile OUR MAJOR EXPORT PRODUCTS 2013 H270112: Coal R 2,958,070,707 1 H811100: Manganese R 1,299,231,836 2 H170199: Sugar R 979,930,882 3 4 H080262: Macadamia Nuts R 911,293,176 H720292: Ferro-Vanadium R 712,130,040 5 H440122: Wood Chips R 492,362,462 6 H282010: Manganese Dioxide R 391,306,912 7 H282530: Vanadium Oxides R 259,659,967 8 H080510: Oranges R 196,152,928 9 10 H080540: Grapefruit R 127,266,394
Mpumalanga Province Trade Profile TOP PRODUCTS 2013 NETHERLANDS H270112: Coal 663,714,998 H811100: Manganese 442,291,881 H720292: Ferro-Vanadium 392,198,446 H282530: Vanadium Oxides 108,443,810 H080262: Macadamia Nuts Shelled 75,092,140 H080440: Avocados 71,023,921
Mpumalanga Province Trade Profile TOP PRODUCTS 2013 USA H811100: Manganese 416,270,684 H282010: Manganese Dioxide 310,706,225 H080262: Macadamia Nuts Shelled 161,894,567 H282530: Vanadium Oxides 110,514,499 H720851: Flat Rolled Steel 89,870,510 H284920: Silicon Carbide 67,615,539
Mpumalanga Province Trade Profile TOP PRODUCTS 2013 JAPAN H440122: Wood Chips 459,673,230 H811100: Manganese 301,685,385 H720292: Ferro-Vanadium 284,361,485 H080540: Grapefruit 44,526,553 H200600: Dried Fruit 15,989,155 H080262: Macadamia Nuts - Shelled 14,727,409
Mpumalanga Province Trade Profile TOP PRODUCTS 2013 CHINA H270112: Coal 1,089,298,282 H440122: Wood Chips 32,689,232 H080510: Oranges 10,667,340 H811100: Manganese 6,353,701 H080540: Grapefruit 1,637,768 H970500: Collections and Collectors Pieces 1,419,493
MOZAMBIQUE TOP PRODUCTS 2013 HS CODE PRODUCT RANDS H170199: Refined Sugar 421,563,119 H020714: Frozen Chicken 86,789,646 H110313: Maize 82,198,870 H080510: Oranges 60,272,057 H440310: Poles - Treated 42,515,288 H040711: Eggs 40,370,797 H200931: Fruit Juices 33,937,274 H020130: Beef Cuts - Boneless 32,638,695 H040310: Yogurt 31,066,163 H440710: Lumber 28,695,222 H040120: Milk 27,731,347 H040210: Milk Powder 23,803,720 H210690: Food Preparations 23,683,540 H220300: Beer 23,542,274 H870899: Motor Vehicle Parts 23,148,318
Mpum Mpumalang alanga's a's Export Export to Africa to Africa 15 15 year years
African Export Markets
SADC Export Markets
SADC Free Trade Area (FTA) • Provides for duty free trade between 15 SADC Members excluding DRC, Angola and Seychelles • A growing market of 280 million people • All goods must be shipped under a SADC Cert of Origin to receive duty free status
Trilateral Free Trade Agreement (T-FTA) • Negotiations are underway to establish a grand African FTA • Will group the current COMESA, SADC and EAC blocs into one integrated market. • 26 countries with a combined population of nearly 700 million people .
Maputo Development Corridor- our backbone to economic diversity Main T owns Urban Nodes Primary Corridor Secondary Corridor Area Mozambique Middelburg Pretoria Nelspruit Maputo Johannesburg Witbank Swaziland
Why the MDC is NB! 1) East Africa
Why the MDC is NB for Trade! 2) Indian Ocean Rim
Trad Trade e Promo Promotion tion & & Tra Trade de Develop Development ment in Mp in Mpumala umalanga nga • MEGA • SEDA • DEDET • DTI
Trade Trade Promotion Promotion v v Trade Trade Development Development Trade Trad e Deve Developme lopment nt Trad Trade e Prom Promotion otion Closely interrelated and mutually dependent. • Trade Promotion cannot be effective unless supported by trade development. • Trade development serves no purpose unless export ready firms are supported to break into foreign markets.
NEW NEW! National National Export Exporter Developmen er Development t Progr Programme amme (NEDP) (NEDP) Global Global Expor Exporter ter Pass asspor port t Pr Prog ogramme amme A Training aining Con ontinuu tinuum m with ith DTI TI Of Offering erings s & & Par artne tners Global Exporter Start-up Exporter Export Ready Export Aware Explorer Domestic Enterprise 44
Our Clients:- 1. 1.Aspiring Aspiring Export Exporters ers Create Export Capacity To convert interest and enthusiasm into actual export capacity. 2. 2. Potential Potential Exporters Exporters Actual Export Sales To convert dormant export capacity into actual export sales. 3. 3. Current Expo Current Exporter rters Increased Competitiveness To increase international competitiveness resulting in new and expanded export market.
Trade Promotion Services Matrix
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