MEDIA RELEASE

The Executive Council (Cabinet) at its meeting in Piet Retief on Wednesday July 20, 2005 was informed that the Premier’s Economic Advisory Committee has recommended a study to profile industrial sectors in the province. This process will lead to the formulation of an industrial strategy, and the identification of those sectors that will be successfully presented for investment promotion.

To fast track industrial development in the province two basic types of industrial clusters were identified. These are vertically integrated clusters made up of industries that are linked through buyer-seller relationship. The second one is the horizontally integrated clusters, these include industries which have a common market for the end products; use a common technology or labour force skills; or require similar natural resources. Currently there is the Stainless Steel Cluster in Middleburg whose main raw material is stainless steel, producing cutlery, car rims and other products.

The Cabinet also approved the procuring of accommodation from graded establishments with effect from November 1 2005. In the interim period before that date the Department of Economic Development and Planning will be consulting with product owners to facilitate the grading of their products.

Cabinet emphasized the grading of accommodation, particularly from historically disadvantaged entrepreneurs in view of the FIFA World Cup in 2010. The National Grading Council has set itself a target of 65% of accommodation establishments to be graded by 2007. There are 472 accommodation establishments in Mpumalanga province and as of December 2004 only 197 had been graded.

Issued by the Communication Chief Directorate
Office of the Premier
NELSPRUIT

Contact Lebona Mosia at 082 5616465/+27 13 7662244 lmosia@nel. Mpu.gov.za

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