STLM Archives - Business Directory

Business Pledge new Jobs

Mr Moeketsi Mpotu, President of the Middelburg Chamber of Commerce and Industry (MCCI), and Steve Tshwete, Mayor of the Municipality, Cllr Masilela, met on Friday 22 September 2023 with a strong delegation from the mining, manufacturing, ICT, higher education, medical, and retail sectors strongly supporting the Steve Tshwete Municipality (STLM) delegation and delivering their message. This meeting was many years overdue and initiated the debate on the future of Steve Tshwete Municipality.

Mpotu introduced the debate by saying, “If we do nothing, we will end up remembering the golden days instead of embracing the future with focus and optimism.” He challenged business representatives to talk about what they need from STLM to create the thousand new jobs we need to boost our town’s economy.

Mr Chris Swartz of Twizza opened the debate, saying that if the town can bring the water quality back to what it used to be, they could create several hundred new jobs. He said that 60% of the country’s economic activity is within a 300 km radius and the city offers many opportunities for businesses and our economy to grow. The future water security not only for industry but also for our community is vital, and he urges STLM to secure the water from the mining sector.

Mr Sizwe Siyila of Samancor said that Middelburg Ferrochrome will be 60 years in Middelburg next year and plans to stay in the town for many more years. He assured the community of Samancor’ s support, but for our town to grow, we need a reliable electricity.

Mr Junior van Niekerk of Nashua said that the favourable environment in Middelburg has helped the company to expand to Ermelo and the Lowveld. He also said that they want to invest in a battery factory in town. An easy accessible investment support package will attract even more business to the area.

Mr Mike Tammadge of Middelburg Mall said that Middelburg Mall is one of the best malls in the company’s portfolio. However, he urged the municipality to work with other stakeholders to reduce crime in our town.

Mr Mondli Kl Kgalema, the chairperson of STLM LED, said the LED Forum is aware of community structures that threaten established businesses and the mining sector in particular. He urged all parties to use the STLM portal so that the community can access opportunities without the interference of vested interests.

Cllr Masilela, the Mayor of STLM, replied that he was encouraged by the commitment of the companies to create jobs. He summarized the SCADA system and said that the faster the system is up and running, the faster Middelburg will have less load shedding. The municipality acknowledged the comments on bureaucratic hurdles and delays in approving building plans. STLM will collaborate with MCCI and the business community to eliminate these obstacles.

Other members expressed their support for the town and the community they work and live in by contributing their input and pledging their support. The conclusion of the debate was that a fully functional municipality is necessary for the business community to ensure timely delivery of services and maintenance of infrastructure. Businesses will prosper and flourish with such a municipality. The breakfast was the first of many and members interested in attending the next event should contact Anna-Marth Ott at ceo@middelburginfo.com.

BRICS any value for Middelburg?

BRICS any value for Middelburg?

Several members, notably Anna-Marth Ott, attended various BRICS meetings. Ott attended an ABSA breakfast with the Confederation of Indian Industry delegation for the 2023 BRICS Summit.

Various members of the delegation already have businesses in South Africa and are interested in possible joint ventures and investments in the Steve Tshwete Municipality. The 2023 MCCI Business Guide circulated by Ott was well-received with great enthusiasm.

Some of the valuable information available at the Chamber is the DIRCO (Department of Industrial Relations and Cooperation) Quarterly Magazine UBUNTU, which ran a BRICS Special titled BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development, and Inclusive Multilateralism, BRICS and the World Order: A Beginners Guide (Note this is until 2019), XV BRICS Summit Johannesburg II Declaration, South African Reserve Bank (SARB) BRICS Joint Ministers of Finance and Central Bank Governors Statement under the South African Presidency, The Journal of BRICS Studies is envisioned as an open-access, peer-reviewed non-disciplinary academic journal focused on the critical and inter-sectoral study of subjects related to the BRICS, the agency of emerging powers and South-South cooperation.

Members interested in some contacts Ott made or the information regarding all the documents that are available, please contact Anna-Marth Ott at ceo@middelburginfo.com.

Energy SEZ for Middelburg

Energy SEZ for Middelburg

An inaugural meeting was held to discuss and formulate a way forward to implement an Energy Special Economic Zone for Middelburg on Wednesday 23 August 2023.

Mr Mnisi from the Department of Economic Development and Tourism (DEDET) led the discussions on why and how an SEZ will benefit our town. Representatives from the ESKOM JET office, the Mpumalanga Growth Agency, Mr Mandla Mnguni and other officials from the Steve Tshwete Municipal (STLM), the Mpumalanga Stainless Initiative, the Middelburg Chamber of Commerce and various other government organisations discuss the proposal, and were met with confidence.

Mnisi said a special eMalahleni Renewable Energy Development Zone (REDZ) has been declared, comprising Victor Khanye, Ekandustria, Emalahleni, Steve Tshwete, and Emakhazeni municipalities. Benefits of being part of a special economic zone:

15% corporate tax
Exemption from customs duties and VAT Free for companies in the SEZ
Tax incentives for employment
Accelerated depreciation for buildings

At the meeting on 23 August, a Technical Committee for the STLM SEZ was appointed to fast track the establishment of the zone. Any member interested in more information can contact Anna-Marth Ott for more details: ceo@middelburginfo.com.

Opportunities at MCCI

Opportunities at MCCI

The year’s municipal employee’s strikes, load shedding, and fuel costs have made it tough for business owners and managers. What has the local chamber done for its members?

It’s very difficult to keep everyone happy and provide great opportunities for the business community without the support of the larger business community. We have had a few people call out, “What are you doing for my business?” Become a member and attend our events and when the opportunity knocks, you will be ready.

It can also be very discouraging for staff when consultants who have received high-value grants or companies who are not members demand free support. What to do? If a thing is free, it has no value.

We create our own members-only opportunities. So join and you will have the chance to see and take advantage of the opportunities offered by the Chamber. Do not stand on the sidelines, be part of the solution.

We are getting our town back

The Middelburg Chamber of Commerce & Industry (MCCI) would like to thank all the parties that worked amicably together for Steve Tshwete Municipality’s (STLM) survival through the civil unrest and unlawful strikes.

It has been a trying year for the citizens of Middelburg; between the illegal strikes, load-shedding and the increase in lawlessness so staying positive was becoming very difficult. MCCI’s journey during this trying time was fascinating. First, we tried to communicate with the newly elected ANC Mayoral committee and SALGA with no results. We eventually met with the Mayoral Committee in March 2022, and after that meeting, the municipal situation deteriorated.

MCCI then met with the opposition parties of the Steve Tshwete Council, urging them to work together to benefit the town. In the meantime, our town infrastructure was damaged either through lack of maintenance or wanton, malicious damage. Seeing locked entrances when you want to keep your business sustainable is demoralising. The agreement between the citizens and municipal employees seemed to have broken down completely.

Thank you to Andre Brandmuller from Brandmullers Attorneys for being willing to brandish the big stick to try and get the municipality working. MCCI has congratulated Andre for winning the case against the STLM employees, the STLM and the Middelburg Police.

Thank you to the STLM Councillors for standing together when needed.

Thank you to the Middelburg Council of Churches, town elders and organised business that selflessly gave their time, sometimes twice weekly, to find a mediated resolution for the strike. Without the collective support of all, our town would not be recovering so fast.

Thank you to the businesses that continued to operate and looked at ways to grow their local businesses or attract investments into Middelburg.

As a solution to safeguard our town’s future, we propose the re-establishment of the Middelburg Peace Forum (the name to be finalised.) Through open and honest discussion, we can and will rebuild our town.

Organised business met with MM

Organised business met with MM
Members of the organised business community: the Middelburg Chamber of Commerce and Industry and NAFCOC, and the Hendrina Business Forum met with Mr. Mandla Nguni, the newly appointed Municipal Manager of the Steve Tshwete Local Municipality (STLM), and his team on Tuesday, 20 September 2022.

The STLM officials discussed the municipality’s 2040 growth plan. The good news is that STLM’s local economy has grown at the expected rate of 4.4%. But, warned that a doubling of the population is expected. This increase would put the infrastructure and access to water under strain without the necessary planning. The local unemployment rate will also become a significant problem without concerted action to attract manufacturing companies.

Mr. Nguni said the STLM is working hard to address all municipal services and infrastructure maintenance backlog. Issues such as protecting our electrical infrastructure are high on their agenda. He also reiterated that with the support of the organised business community, STLM will once again become the investment community of choice in Mpumalanga.

All business associations have pledged their support, and we are looking at a bright future for our town.

JET for Business: Opportunities?

JET for Business: Opportunities?
The Middelburg Chamber of Commerce and Industry hosted a congress on Wednesday, 28 September 2022, to discuss business opportunities in the Just Energy Transition (JET). MCCI President Que Naidoo opened the congress and stressed that the role of coal in the region cannot be dismissed. MCCI wanted the conversation and opportunities around JET to change from purely socio-economic development to business-oriented expansion.

Dr. Sibanda, CEO of Exilite, introduced the day. He said that we need to see JET as a system with interconnected parts. If you take out the parts of the system, the system loses its essence. One part cannot thrive if the other parts are not functioning. The economy has to adapt to the changes that are coming. We have assumed that the part of the system that concerns electricity supply has shown us that some parts of the country’s electricity supply system are not working.

Dhesigen Naidoo, Senior Advisor to the World Bank and responsible for climate adaptation in the South African President’s Climate Change Commission, spoke to the companies and they agreed to have further discussions with MCCI. How to finance renewable energy was presented by Rentia van Tonder, Head: Renewable Energy, Power & Infrastructure, Standard Bank. Wayne Glossop of Wartsila and Jean-Francois Pinharanda of Total Energy, Matola LNG Project, spoke about gas development and opportunities for JET. Is nuclear a viable part of the energy mix for JET, said Mxolisi Makhatini, Group Executive, Power and Industry, Nuclear Energy Corporation of South Africa.

We also looked at the accessibility of the grid, by Ronald Marais, Grid Planning from Eskom Transmission and how tariff changes could be calculated when you supply Eskom, and Feed in Tariff Changes – Shirley Salvoldi, Corporate Consultant, Electricity Pricing, and Eskom Distribution. These were very technical presentations, but they brought some clarity to the current situation.

Mike Teke, Chief Executive Officer, Seriti Resources, spoke about adapting the coal mining industry to a greener future. He began by highlighting the role that coal mining plays in the economy, that 93 000 direct jobs and 200 000 indirect jobs are associated with coal mining. He also said that Sereti is looking into wind energy in the Gert Sibande area and is also exploring other alternative energy generation. He urged everyone to take a balanced approach and explore the opportunities that are available.

At the end of the day, businesses and our members want reliable, affordable baseload power to grow our businesses and economy and keep jobs in the region. Thank you to Nashua and Standard Bank for your main sponsorships. Members interested in joining the next round of discussions can contact me at ceo@middelburginfo.com.

Comment on 14 June 2022 Municipal Strike

Comment on 14 June 2022 Municipal Strike

The lack of service delivery by Steve Tshwete Municipality is intolerable. Many of the services provided have not been adequately delivered since 25 March 2020, when the norm was to work (or not work) from home. Covid19 Lockdown has broken the municipality and created a culture of poor work performance.

The STLM leadership has given the strikers the power to ruin our town by giving in to their demands. Essential and vital services to the business community are not being provided. The current situation cannot be allowed to continue. Ignoring the complaints and demands of the businesses does not mean that the problems will miraculously disappear; no, the situation will worsen. The state of affairs creates an ideal environment for corruption and bribes. Also, why are the strikers allowed to use municipal vehicles as transport for the strike?

MCCI is asking the business community: are you satisfied? Will the problems be miraculously fixed once STLM is working again? Nowhere in business will a problem disappear if you ignore it, you have to work on the problem to solve it. Your silence means you agree with the municipalities decisions and lack of service. Significant future investments and developments are being hampered by the political gamesmanship of our STLM leadership and councillors.

Perhaps we should look at what STLM services can be outsourced to make the economy work? MCCI will ask the various political parties to meet with the Executive Committee to find a solution to make our city fully functional and attractive for investment.

The Illegality Of The Municipal Tariff Regulations Of Nersa.

The Illegality Of The Municipal Tariff Regulations Of Nersa

The filing period for the annual municipal electricity tariff increases is currently underway. The Middelburg Chamber of Commerce and Industry participates in the Association of Chamber of Commerce (ASAC) submission and subsequent legal action against the municipal tariff provisions. Below you will find a summary of the ASAC submission.

ASAC is, in this case, concerned with representing electricity consumers behind municipal boundaries. Municipalities purchased 42% of their electricity from Eskom in the 2020/21 financial year 1. Municipal industrial users consumed about half of this, or almost 20% of Eskom’s output. Including commercial use, we estimate that the municipal industry consumes up to 26% of Eskom’s power.

For example, the municipal industry includes almost the entire automotive industry (all Original Equipment Manufacturers (OEMs) and almost the entire supply base). A significant proportion of the country’s large-scale industry and almost all of its medium-scale industry is dependent on municipal supply and tariffs. Therefore, the municipal supply function and the setting of tariffs affect a large part of South Africa’s manufacturing economy and the associated jobs in these sectors. The total membership represents almost 1 million employed people.

To reiterate the arguments from previous submissions and relevant to the key issues surrounding the 2022/2023 Consultation Paper, Nersa has not changed its approach to tariff setting. Nersa appears intent on continuing down the path of its historically flawed approaches. Despite the apparent breach of the Electricity Regulation Act (ERA), Nersa allowed the erroneous increase in municipal tariff guidelines and benchmarks to continue for the 2021/2022 financial year.

In its decision, Nersa did not make any credible prediction that this method would not be used in the future. Some ASAC members have taken Nersa’s decision on the 2021/2022 municipal tariffs to court. The businesses were frustrated by the regulator’s unwillingness or inability to make positive changes to the municipal electricity supply Industry (ESI).

Members interested in receiving a copy of the ASAC submission should contact Anna-Marth Ott at ceo@middelburginfo.com.