Growth Gateway: Mpumalanga economic landscape (summary)
Published 10 December 2025
Mpumalanga, historically dependent on coal-based industries, stands at the forefront of South Africa’s Just Energy Transition (JET). The province requires a strategic shift towards sustainable and diversified economic growth. This baseline assessment was prepared by the Growth Gateway programme and Boston Consulting Group. It maps the province’s current economic structure, which is dominated by mining, manufacturing, and coal-linked services, and explores emerging opportunities in green and non-green sectors.
The report identifies 9 active economic sectors and underscores the vulnerability of those tied to the coal value chain. It highlights the critical role of small, micro and medium enterprises (SMMEs), which are concentrated in trade, accommodation, and services supporting coal operations. It also examines the challenges they face in accessing finance and pivoting to new markets.
To address these, the report proposes 2 main strategies:
- pivot: which focuses on helping coal-dependent SMMEs transition into green or alternative sectors
- scale: which supports high-potential businesses to grow within priority markets
Green economy opportunities include renewable energy generation and transmission, green hydrogen production, electric vehicle component manufacturing, and climate-smart agriculture. Non-green opportunities span tourism, agro-processing, and industrial services. Four priority sectors – renewable energy, non-coal mining and beneficiation, green hydrogen, and water projects – are identified as focal points for investment, alongside tourism and industrial hubs.
The report also outlines systemic challenges such as funding gaps, risk appetite mismatches, and investment readiness barriers for SMMEs. It calls for targeted interventions including technical assistance, blended finance, and improved investor linkages to unlock Mpumalanga’s economic potential. By leveraging these opportunities, stakeholders can drive inclusive growth, create jobs, and ensure a just transition for communities historically reliant on coal.