This initial process is being funded by the Development Bank of Southern Africa (DBSA), says KMIA business development manager Irvin Phenyane.

The R300-million-plus project is a public–private partnership (PPP) between the Mpumalanga provincial government, the Mbombela local municipality, the DBSA and KMIA, in an effort to develop the region, explains Phenyane.

A cargo facility will have the potential to lower the costs of exporting and importing goods, being close to the N4 Maputo corridor. (KMIA is situated next to the Kruger Park.) A number of commodities are exported from Mpumalanga, including tobacco, citrus and subtropical fruits, vegetables, flowers, plants, sugar,  nuts, tea, coffee, wool and crafts.

There is no timeframe available as to when construction on the project will start, as this will largely be determined by the business model, Phenyane explains.

In another effort to boost Mpumalanga’s economy, an aviation growth fund – a second PPP project – has been launched.

The aim of this fund is to counter a rather peculiar problem: it is often cheaper to fly from Cape Town to Europe than it is to fly from Cape Town to KMIA.

Phenyane says this problem is structural in nature.

The government owns 80% of Airports Company South Africa and all of the national carrier, South African Airways, and also controls the Civil Aviation Authority.

Phenyane says it seems as if the government sometimes speaks with a forked tongue when it talks about developing regional economies; Acsa and SAA – in effect the  government – promote Johannesburg as a central flying hub.

"It is a confused system." The government’s many irons in the fire ensure "the playing field  is not level for the privately-owned KMIA," says Phenyane.

"We reminded the Mpumalanga government that its duty is to grow the economy. We have engaged the government and the result is the  premier’s aviation incentive fund," says Phenyane.

"Simply put, it aims to attract more airlines to KMIA." The incentive fund is a collaborative effort between the tourism value-chain, including hotels, airlines and KMIA, and the Mpumalanga provincial government. It aims to grow the region’s economy by increasing tourist numbers.

The parties have all poured money into the incentive fund, or offered reduced costs – aimed at creating special fly-in deals for tourists.

Phenyane says KMIA has already managed to secure deals with two airlines (in addition to the current domestic airlines and charter companies landing at KMIA), which are set to start flying directly to the airport later this year.

"We are actively packaging and marketing the destination," says Phenyane.

Global technology group ABB, which invested R350-million in the development and construction of KMIA, owns 90% of the airport, while the local Mbuyane community owns the remaining 10%. While ABB has offered a percentage of the airport for sale,  preferably to an empowerment buyer, no deal has yet been struck.

The airport opened its doors 27 months ago, taking over all  the commercial traffic from the smaller airports in the region; at Skukuza, in the Kruger park, and at Nelspruit, 22 km from the new airport.

Although Mpumalanga attracts around 4-million visitors a year, only 5% arrive by air.

Phenyane says the number of passengers, currently around 150 000 a year, is growing at 10% a month, despite the cost problem.