MBOMBELA – The Mpumalanga government has allocated R1.4 billion to economic development and tourism in the 2026/27 financial year, with major investments planned for tourism recovery, business development, industrial growth and renewable energy projects.
Economic Development and Tourism MEC Jesta Sidell tabled the department's R1,406,635,000 budget for the 2026/27 financial year in the Mpumalanga Provincial Legislature on 11 June 2026.
She described the budget as a roadmap to transform the economy and ensure growth benefits communities across Mpumalanga.
“This is not just about hope,” Sidell told the House. “Every rand has been planned for job creation, fixing our economy, and making sure no area is left behind.”
Tourism receives biggest share
Tourism received the largest allocation of the budget, amounting to R574.9 million.
Most of that funding — R563.5 million — will be transferred to the Mpumalanga Tourism and Parks Agency (MTPA). The agency will use the funds to rehabilitate nature reserves and tourism facilities damaged by floods, while also to revitalise ageing infrastructure and introduce new tourism products to increase visitor numbers.
Sidell said tourism remains the province's "golden egg". Mpumalanga is currently ranked second in South Africa for international tourist arrivals, and the department aims to maintain that position.
A total of R981.8 million will be transferred to the department's entities and agencies.
Budget allocations
Programme 1: Administration – R146.9 million
This allocation will fund personnel, operational requirements and administrative functions to ensure the department operates effectively.
Programme 2: Integrated Economic Development – R358.5 million
Of this amount, R281.5 million will be transferred to the Mpumalanga Economic Growth Agency (MEGA) to support business development and economic growth.
An additional R3.1 million has been allocated to the Mpumalanga Tourism Youth Fund to support youth participation in the tourism sector.
Programme 3: Trade and Sector Development – R135.5 million
This includes:
• R80 million for the Nkomazi Special Economic Zone to attract investment, industrial development and job creation.
• R2.3 million for the Mpumalanga Stainless Steel Initiative.
• R743,000 for Furntech.
• R21 million for the Mpumalanga Green Cluster Agency to support renewable energy and green economy projects.
Programme 4: Business Regulation and Governance – R165 million
Of this amount, R136.7 million will be transferred to the Mpumalanga Economic Regulator (MER).
According to Sidell, MER generated approximately R2 billion in revenue during the previous financial year, compared to R1.5 billion the year before. The regulator also conducted more than 6,800 inspections at liquor outlets and acted against illegal gambling operations.
Sidell warned that proposed national taxes on online gambling could negatively affect provincial revenue streams.
She said the proposal could remove up to 42.5% of gambling income before operational costs are deducted, reducing funding available for local development initiatives.
Programme 5: Economic Planning – R25.5 million
The allocation will be used to review and update the province's economic growth and trade development plans.
Focus on green energy and industrial growth
The department plans to host a Mpumalanga Energy Investment Roundtable aimed at attracting additional investment into solar, wind and other renewable energy projects.
The initiative forms part of broader efforts to diversify the provincial economy and support job creation within the renewable energy sector.
Agriculture, mining, manufacturing, tourism and the green economy remain the province's key economic sectors.
The department is also reviewing its economic growth strategy to strengthen industrial development and boost exports.
“To the people of Mpumalanga, ‘The Place of the Rising Sun,’ the sun is rising once more,” Sidell said.
“We are rebuilding. We are recovering. We are opening the doors of the economy for everyone.”
