MIDDELBURG – The Nkangala Economic Development Agency (NEDA) is investing R11,3 million in a brick manufacturing plant in Emakhazeni and a chemical manufacturing project in Thembisile Hani as part of efforts to create jobs and stimulate economic growth in a district with an unemployment rate of 37,5%.
The projects, valued at R10 million and R1,3 million respectively, are among NEDA’s first major investments and are aimed at creating employment, supporting small, medium and micro enterprises (SMMEs) and reducing reliance on external suppliers.
The agency adopted the projects during a two-day strategic planning session held at the Nkangala District Municipality headquarters in Middelburg on 23 and 24 April 2026. During the session, NEDA resolved to focus on high-impact catalytic projects while leaving Local Economic Development (LED) functions to local municipalities.
The brick manufacturing plant in Emakhazeni will supply affordable bricks for housing developments, township establishment and municipal infrastructure projects across the district’s six local municipalities.
At least 15 people are already employed at the plant, with additional employment opportunities expected in production, logistics, sales and maintenance. Local SMMEs will also be prioritised to supply materials such as sand and cement, as well as transport services.
The chemical manufacturing plant in Thembisile Hani, which is nearing completion, will produce, supply and distribute water treatment chemicals to strengthen municipal water security, support local industrial development and reduce dependence on suppliers from outside the district.
The project is also expected to create employment and business opportunities in manufacturing and distribution.
Speaking during the State of the District Address on 05 August, Executive Mayor Thomas Ngwenya said NEDA was established as the Nkangala District Municipality’s special-purpose vehicle to attract investment, implement catalytic projects and develop sustainable revenue streams.
He said the agency was created to fulfil the municipality’s commitment to promoting inclusive economic growth, creating employment, supporting SMMEs and cooperatives, attracting investment, expanding manufacturing and ensuring township and rural communities participate meaningfully in the economy.
Ngwenya said NEDA’s operations were temporarily placed on hold while the municipality addressed concerns raised by the National Treasury regarding its institutional and revenue model. Following consultations, the interim board resumed its work.
By the 2024/25 financial year, the agency was fully operational, having appointed a chief executive officer, chief financial officer and two general administration interns.
NEDA also prepared its first annual financial statements for the year ending 30 June 2025 and received an unqualified audit opinion. The district municipality also produced its first consolidated financial statements incorporating the agency.
The agency has since partnered with the Nkangala District Municipality’s Planning and Economic Development Department, the Mpumalanga Tourism and Parks Agency, the Regional Tourism Organisation and local tourism organisations.
With more than one in three people in Nkangala unemployed, Ngwenya said manufacturing would play a key role in rebuilding the district’s economy.
“These projects speak directly to our mandate of decisive action to grow the economy. We cannot talk about fixing local government without fixing unemployment. NEDA’s brick and chemical plants are about building industries that employ our people and keep money circulating in the district,” he said.
Ngwenya said the district’s R282,424 million infrastructure programme for the 2026/27 financial year would create immediate demand for bricks and water treatment chemicals, while NEDA would link the projects to skills development initiatives and SMME supply chains.
“Infrastructure gives development its physical form, but people give development its purpose. NEDA’s job is to make sure our people are the ones building it,” he said.
