Appreciation is expressed to all government departments and private sector groupings who directly contributed to this document or who agreed to the use of strategic information.

It is the intention of the governments of Mozambique and South Africa, through appropriate institutional arrangements and together with the private sector, to continually review and update these lists and profiles (in all sectors) - as part of a broader programme of support to the Maputo Development Corridor.

This report provides, in respect of the South African part of the corridor, key sectoral overviews, lists of projects in the key sectors and more comprehensive profiles of strategic projects.

The economic sectors considered in this report are, respectively, Agriculture/Forestry, Mining, Manufacturing, Tourism and Infrastructure. These represent the key sectors in terms of their current contribution to the economy and in terms of potential. This does not imply that other sectors are unimportant, and indeed the ongoing planning process in the Maputo Development Corridor will be embracing these other economic sectors, notably Construction, Finance and the Services sectors.

The project list and profiles presented in each of the key economic sectors, are not exhaustive but are designed to give the reader a clear appreciation of current projects/programmes, key investment opportunities and areas of potential which have been partly explored or which are considered worthy of exploration.

SECTION 1: AGRICULTURE AND FORESTRY

SECTION 2: MINING

SECTION 3: MANUFACTURING

SECTION 4: TOURISM

SECTION 5: INFRASTRUCTURE

1. AGRICULTURE AND FORESTRY

1.1.1. Agriculture

Agriculture is a key base for socio-economic growth in the wider region. It contributes to food security and a stable rural community and, through linkages, impacts in the broader economy.

The Mpumalanga province produces fifteen per cent of the total agricultural output of South Africa. Maize, sugar, citrus, tobacco, bananas, potatoes, beef, mutton, pork, milk and chickens provide an income of R4 billion per year for the province.

Agriculture earns, through the export of citrus, avocados, litchis and sugar, some R300 million in direct foreign exchange. This figure excludes savings made from crops produced and consumed locally, which might otherwise have been imported.

The per capita output and output per land area for Mpumalanga is markedly higher than the rest of South Africa due to the generous endowment of arable soils and due to climate variety which suits a wide range of agricultural products. The largely rain-fed Highveld farming areas constitute one of South Africa’s largest sustainable farming areas, whilst the Lowveld farming areas will be increasingly dependent upon improved water management systems.

The Phalaborwa sub-corridor, which is part of the Northern Province, contains a vibrant agricultural sector with high income orchard farming in the Hoedspruit, Lower Letaba and Letsitele areas and large cattle/game farming ventures in the Timbivati/Hoedspruit/Gravelotte areas. Opportunities exist for further agro-tourism and small agro industries. The export of citrus (Valencias) and mangoes will benefit from the Maputo Harbour.

Throughout the corridor area there are clear opportunities to increase production and to add value to primary processing. The opening of the port of Maputo will contribute substantially to this. It will be crucial however to address improved access to farmer support services for small scale farmers, develop sustainable land tenure policies and effect improved water management systems.

1.1.2. Forestry

The contribution of forestry to National GDP is 2,5 per cent or R5 329 million. The plantation areas in the Mpumalanga and Northern provinces represent 26,4 per cent of the total plantation area for South Africa (1990 figures).

Timber finds a ready market locally and abroad for wood, poles, crates, firewood, charcoal, matches, etc.

In addition to the 65,000 people employed in the South African plantation industry, an estimated 55,000 people are employed in the primary processing industry (from log to plank, to woodchips, to pulp or to pole), and an additional estimated 100,000 self employed people, such as harvesting contractors, work in the forestry industry up to the secondary processing level.

The rationale to support forestry ventures should therefore be to strengthen appropriate rural enterprises which provide long term permanent employment opportunities and which encourage other satellite or secondary enterprises on site within the constraints of sustainable and cost effective water use. New policy formulation for the forestry sector is to commence soon.

1.2 PROJECT LIST

The following list identifies key projects/programmes at various different stages, in both the Mpumalanga province and Northern province sections of the corridor. These are :-

1.2.1 Category A : Projects/programmes recently completed or already in implementation. That these are complete or in implementation, does not preclude the possibility for further investment/equity participation, either in expansions or financial restructuring.

1.2.2 Category B : Projects/programmes fully prepared and specifically or actively seeking, or which may benefit from investment/equity participation.

1.2.3 Category C : Potential projects/programmes in the process of being prepared and which may be seeking, or which may benefit from investment/equity participation.

1.2.4 Category D : Possible projects/programmes for consideration.

D) Possible projects for consideration.
 

D) Possible projects for consideration.
 

D) Possible projects for consideration.
 

D) Possible projects for consideration.
 

D) Possible projects for consideration.
 

D) Possible projects for consideration.
 

D) Possible projects for consideration.
 

D) Possible projects for consideration.
 

D) Possible projects for consideration.
 

A) Projects recently completed or in implementation. B) Projects prepared and seeking investment/equity. C) Projects planned and requiring further preparation..

D) Possible projects for consideration.

1.3 PROJECT LOCATION

The map which follows, shows the spatial location of all projects in the aforementioned list.

The numbers on the map correspond to the reference numbers given to projects in the list.

1.4 ANALYSIS OF TRENDS

The corridor area (SA side) contains three main agricultural/forestry areas:
 
• The highveld area which is largely rain-fed and which contains well established commercial farming enterprises. Changes in this area relate to change commodity prices, mechanisation and altered marketing systems in South Africa.
• The escarpment area, best suited to sheep/cattle and to forestry. Tourism has emerged strongly in these areas, mixing with agriculture/forestry uses.
• Lowveld areas, where climate and water come together to create opportunities.

The key changes and initiatives in this sector, as indicated in the project list, are occurring largely in the lowveld area, and are concerned both with promoting opportunities in former homeland areas, and with more extensive operations in the fully commercial sector.

The most significant trend in this lowveld area, is the shift from traditional food (grain) crops to higher value orchard crops. The reopening of the port of Maputo is significantly in support of this shift, and presents further secondary manufacturing opportunities.

Sustainability remains a key concern, particularly with regard to water. This suggests improved R&D (already substantially developed around crops/types), improved technologies and improved water management (at the wider regional scale)

1.5 PROJECT PROFILES

The following profiles present additional information in respect of all category "B" and "C" projects in the project list.

Further information in respect of these projects can be obtained through the contact person named.