Polish delegation eager to invest in the province

MBOMBELA – The MEC for finance, economic development and tourism,
Mr Sikhumbuzo Eric Kholwane, has urged foreign companies to invest in Mpumalanga, sighting the abundance of investment opportunities available.

Speaking during a meeting with a business delegation from Poland’s Region of Wielkopolska at the Mercure Hotel in Mbombela on Thursday, Kholwane said, “Mpumalanga boasts of a variety of business and investment opportunities in various sectors which are supported by world-class infrastructure.

Mpumalanga, just like the rest of South Africa, continues to face the triple challenges of poverty, unemployment and inequality. In order to address these challenges, we must implement economic growth initiatives such as trade and investment promotion. The province is thus any investor’s dream destination,” explained Kholwane.

Investment opportunities available in Mpumalanga are in the manufacturing sector such as in steel, stainless steel, petro-chemicals, food and agro-processing, paper, sugar and timber. In mining they range from coal, gold and chrome to vanadium, granite, and various clays.

Similarly, the agriculture sector presents trade and investment opportunities through the cultivation and processing of a variety of cash crops such as corn, sunflower seed and canola in addition to a range of fruit and vegetables.
In renewal energy, an abundance of opportunities exist in this emerging green energy sector such as:

• production of smokeless stoves which use ethanol gel – the green energy source which could replace paraffin given the high incidents of paraffin-caused fires and deaths
• production of solar panels and -water heaters
• establishment of charcoal producing plants using agricultural, forestry and municipal waste;
• supply of clean technology equipment to Eskom’s Kusile Power Station. (The power station will be South Africa’s first to use the flu gas desulphurisation method)
• establishment of a LED lights production plant.
Kholwane added that the level of trade between Mpumalanga and Poland is growing, though the balance is in favour of Poland. The total export to Poland grew from 25,24 per cent in 2011 to 37,57 per cent in 2013, whereas the total import grew from 11,22 per cent in 2011 to 54,83 per cent in 2013.

The top five export products to Poland in 2013 were:

1. Textiles and textile articles
2. Mineral products
3. Machinery and mechanical appliances; electrical equipment; parts thereof
4. Live animals, animal product and
5. Raw hides and skins, leather, fur skins and articles thereof; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut.

On the other hand, the top five import products from Poland in 2013 were:

1. Machinery and mechanical appliances, electrical equipment and parts thereof;
2. Base metals and articles of base metal
3. Vehicles, aircraft, vessels and associated transport equipment
4. Articles of stone, plaster, cement, mica or similar materials and
5. Optical, photographic, cinematographic measuring, checking, precision, medical and surgery instruments.

The Polish delegation was led by the deputy marshall of the Wielkpolska region, Mr Mateusz Klemenski, who shared Kholwane’s sentiments by indicating that his country once had the similar problem of high unemployment. He said by investing and SMMEs and cooperatives, quite a number of jobs were created and consequently the unemployment rate has decreased drastically in Poland.

The Polish business delegation has committed to invest in Mpumalanga, and has indicated they are looking for partners in the following investment areas:

1. Household appliances
2. Food products, soft and natural drinks
3. Electronic and electrical appliances
4. Trading and processing in spices and herbs
5. Transportation (such as buses and coaches)
6. Doors and window making
7. Legal fraternity (law firms).