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Gauteng Business 2017-18 edition

Gauteng Business 2017/18 is the ninth edition of this highly successful annual journal, that has established itself as the premier business and investment guide for the Gauteng province. Special features for 2017/18 include a focus on major new developments in the region’s metros, complemented by detailed overviews of the main economic sectors in South Africa’s most important provincial economy.

Gauteng Business 2017/18 is the ninth edition of this highly successful annual journal, that has established itself as the premier business and investment guide for the Gauteng province. Special features for 2017/18 include a focus on major new developments in the region’s metros, complemented by detailed overviews of the main economic sectors in South Africa’s most important provincial economy.

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GAUTENG<br />

BUSINESS<br />

<strong>2017</strong>/<strong>18</strong> EDITION<br />

THE GUIDE TO BUSINESS AND<br />

INVESTMENT IN GAUTENG PROVINCE<br />

JOIN JOIN US ONLINE<br />

US ONLINE<br />

WWW.GLOBALAFRICANETWORK.COM | WWW.GAUTENGBUSINESSGUIDE.CO.ZA<br />

WWW.NORTHWESTBUSINESS.CO.ZA<br />

| WWW.GAUTENGTBUSINESS.CO.ZA


Turbocharging<br />

the regional economy<br />

A new identity for the City of Ekurhuleni is being forged<br />

out of the towns and urban nodes surrounding Africa’s biggest<br />

and busiest airport, OR Tambo International Airport.<br />

The airport is the epicentre of Africa’s first Aerotropolis,<br />

which will set it apart from any other South African city<br />

and turbocharge the regional economy.<br />

The city has prime residential estates, glitzy entertainment<br />

venues, mega shopping malls, lively townships,<br />

historical villages, good schools, recreational facilities and<br />

wide-open spaces.<br />

Ekurhuleni is a digital city and is investing in digital<br />

infrastructure that will streamline the way it delivers services<br />

to the community, including smart grids, payment<br />

gateways, e-learning and e-health systems, and closedcircuit<br />

TVs to improve safety and security.<br />

Ekurhuleni has long been the manufacturing hub<br />

of the country and it is building on this history to create<br />

a smart city that will underpin the new economic<br />

growth trajectory. The city boasts a world-class transport<br />

network, telecommunications and energy grid, a<br />

youthful citizenry and strong financial position. Its connectivity<br />

across rail, road and air is significant – with the<br />

Gillooly’s Interchange being the busiest in the Southern<br />

hemisphere, and Germiston railway hub is one of the<br />

busiest on the continent.<br />

The City is being developed through a series<br />

of strategic mixed-used urban developments<br />

and transformational projects like the GreenReef<br />

Mega-project, S&J Industrial Estate, Glen Gory,<br />

Leeuwpoort Housing Development, TwentyOne Industrial<br />

Park, Carnival Junction, Lordsview Industrial Park and the<br />

Riverfields R21 development, taking shape along the<br />

R21 Albertina Sisulu Highway which links Ekurhuleni to<br />

Pretoria. And the City has the infrastructure to support<br />

investments like Prasa-Gibela, which will see the building<br />

and maintenance of 600 new trains for South Africa’s rail<br />

commuter network over the next two decades.<br />

Over and above this there are also a number of mega<br />

housing projects that are being planned, as well as the<br />

redevelopment of Germiston into an administrative headquarters<br />

for the City, with other precincts following a<br />

similar path. Partnership between the public and private<br />

sector will be important in enabling these developments.<br />

City planners are expanding the horizon that will<br />

see Ekurhuleni blossom into a prosperous region for all<br />

its citizens.


A city so good<br />

you’ll want to invest in it.<br />

live | play | invest<br />

Aerotropolis City<br />

The City of Ekurhuleni is home to OR Tambo International Airport, Africa’s biggest and<br />

busiest airport on the continent. The City is also considered the manufacturing hub<br />

of the country, which boasts a significant logistics corridor along the R21 highway and<br />

an extensive transport network across rail, road and air.<br />

Come invest in Ekurhuleni, the Aerotropolis City.


The Vision and Mission<br />

The Tshwane Economic Development Agency<br />

The Vision and Mission<br />

The Tshwane Economic Development Agency SOC Ltd<br />

(TEDA) is a municipal entity of the Tshwane Metropolitan<br />

Municipality (CoT).<br />

VISION<br />

TEDA strives to be a catalyst for economic growth and<br />

development to position the City of Tshwane as a globally<br />

competitive capital city.<br />

MISSION<br />

The mission of Tshwane Economic Development Agency<br />

is: To provide integrated and innovative economic<br />

development solutions through investment promotion<br />

and funding, programme management and property<br />

management.<br />

SERVICE OFFERINGS<br />

• Investment promotion and aftercare<br />

• Export development and promotion<br />

• Project management and development facilitation<br />

CITY OF TSHWANE – AFRICA’S LEADING<br />

CAPITAL CITY<br />

The City of Tshwane is a vibrant, diverse and modernising<br />

capital city. As the administrative seat of the South African<br />

government and the birthplace of South Africa’s democracy,<br />

it is home to over 130 foreign embassies and missions. The<br />

metro was established in 2000 and has a population of<br />

3.1-million.<br />

ECONOMIC OVERVIEW<br />

• GVA of R245.1-billion<br />

• Contributes 25% to the <strong>Gauteng</strong> economy<br />

• Accounts for 9% of the South African economy<br />

• Biggest Free WiFi rollout in Africa<br />

• Highest economic growth among all SA metros,<br />

averaging a growth rate of 3.9% per annum to 2015<br />

• Third-largest Metropolitan Municipality in the world in<br />

terms of land mass<br />

“LEVERAGING RESEARCH AND<br />

INNOVATION TO PROMOTE<br />

GROWTH.”<br />

WHY INVEST IN TSHWANE<br />

RESEARCH AND DEVELOPMENT HUB<br />

Tshwane has an impressive concentration of academic,<br />

research, technology and scientific institutes. An estimated<br />

60% of all research and development in South Africa is<br />

conducted in Tshwane by institutions such as Armscor, the<br />

Medical Research Council, the Council for Scientific and<br />

Industrial Research (CSIR), the Human Sciences Research<br />

Council and educational institutions such as the Tshwane<br />

University of Technology, the University of South Africa and<br />

the University of Pretoria.<br />

CENTRAL LOCATION<br />

Tshwane is strategically positioned in the centre of the most<br />

prosperous part of South Africa. Located a mere 30km from<br />

Africa`s financial hub, Sandton, and bordering three of South<br />

Africa`s provinces that lead directly into the SADC, Tshwane<br />

offers easy access to a growing market of over 250-million<br />

people in the fastest-growing regional economic bloc.


OUTSTANDING INFRASTRUCTURE<br />

Efficient supply of water, power and bulk infrastructure<br />

coupled with favourable climatic conditions and affordable<br />

industrial sites and office space make Tshwane very attractive<br />

to prospective investors.<br />

EASE OF DOING BUSINESS<br />

Recognising the importance of efficient and cost-effective<br />

business operations, the City of Tshwane is continuously<br />

looking at improving its business and investment climate.<br />

COMPETITIVE INDUSTRIES<br />

Tshwane’s reputation in automotive engineering is well<br />

established. Home to motoring giants Nissan, BMW, Ford and<br />

Tata, Tshwane accounts for 40% of South Africa’s automotive<br />

production. Highly regarded for its manufacturing,<br />

technology, electronics, defence design and construction<br />

sectors, Tshwane offers many business and investment<br />

opportunities in one of the city`s 16 mixed manufacturing<br />

industrial estates.<br />

Focus investment sectors<br />

Aerospace & Defence Technologies<br />

Tshwane is the key node in aerospace and defence<br />

technology development in South Africa. The foundation of<br />

the aerospace cluster is the Department of Defence and Air<br />

Force headquarters. Industry leaders such as Armscor, the<br />

CSIR, Denel Dynamics, Aerosud and Centurion Aerospace<br />

Village are key role-players in the cluster.<br />

access to transport infrastructure. The Automotive Industry<br />

Development Centre contains a conference centre and a<br />

retail centre. With a turnover of about R30bn in 2012 and<br />

contributes 3.3% to the City’s economy, the automotive and<br />

components industry constitutes about 25% of Tshwane’s<br />

manufacturing output.<br />

The Vision and Mission<br />

Agriculture & Agro-processing<br />

Although agriculture makes up an insignificant contribution<br />

to Tshwane’s GDP, Region 7 has some of the best farming land<br />

in <strong>Gauteng</strong>. TEDA has packaged investment opportunities<br />

including an envisaged cotton cluster and Agro-Processing<br />

Hub. The sector is strengthened by educational and research<br />

facilities such as Onderstepoort Veterinary Institute (VRI) and<br />

the Agricultural Research Council (ARC).<br />

The Vision and Mission<br />

Automotive & Components<br />

The automotive and components industry in South Africa is a<br />

major contributor to economic activity and export earnings,<br />

with the heart of the industry located in the City of Tshwane.<br />

This includes the Automotive Supplier Park (ASP) in Rosslyn<br />

(130ha) which is located close to key vehicle manufacturers<br />

including BMW, Ford, Nissan, Volvo and Tata, with excellent<br />

<strong>Business</strong> Process Outsourcing & Offshoring<br />

As the administrative as well an academic centre, the city’s<br />

knowledge and information industry is well-developed,<br />

which makes Tshwane an ideal location for BPO investments.<br />

An established BPO sector includes one of the largest shared<br />

services centre for the Barclays Africa operation The <strong>Gauteng</strong><br />

Growth and Development Agency is developing a BPO&O<br />

Park at Hammanskraal.<br />

Tourism<br />

The City of Tshwane attracts business, leisure as well as<br />

shopping, medical and sports tourism. The city also has and<br />

is further developing a range of major conference facilities<br />

and hotels. Cultural and heritage sites together with facilities<br />

such as nature reserves and parks add further variety. Two<br />

key project intended to further develop the sector are<br />

the Mandela Statue and a plan to build a theme park and<br />

waterfront at Cullinan/Bronkhorstspruit.<br />

Green Economy<br />

Tshwane aims to become a resilient, resource-efficient<br />

and leading low-carbon economy by 2030. This translates<br />

into opportunities, particularly in power and electricity<br />

generation, renewables (including solar and wind<br />

technologies), green component manufacturing, related<br />

downstream services and general greener production<br />

and transport practises, green agriculture and waste<br />

management opportunities, and ecotourism.<br />

Contact Details:<br />

5th Floor, Anker Building, 1279 Mike Crawford Road, Centurion CBD<br />

Tel: + 27 12 358 6552 | Email: pasekar@tshwane.gov.za | Website: www.teda.org.za<br />

www.teda.org.za


CONTENTS<br />

CONTENTS<br />

<strong>Gauteng</strong> <strong>Business</strong> <strong>2017</strong>/<strong>18</strong> Edition<br />

Introduction<br />

Foreword8<br />

A unique guide to business and investment in <strong>Gauteng</strong>.<br />

Special features<br />

Regional overview 10<br />

<strong>Gauteng</strong>’s metros are driving growth and investment.<br />

Unlocking the door for inner-city investment<br />

in Johannesburg 16<br />

High-rise, low-cost accommodation could be transformative.<br />

New city-like developments are springing<br />

up in <strong>Gauteng</strong> 20<br />

Infrastructure spending is on the increase.<br />

Going smart 26<br />

A partnership with a Danish city promises smart rewards<br />

for the City of Tshwane.<br />

South African economy at a glance 28<br />

Key statistics on the South African economy.<br />

Sector contents<br />

Agriculture44<br />

Good rains bring good news for <strong>Gauteng</strong> farmers.<br />

Mining46<br />

<strong>Gauteng</strong> is the home of mining and minerals research.<br />

Manufacturing48<br />

<strong>Gauteng</strong> leads the nation in manufacturing.<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

4


UIF SAVING JOBS<br />

THROUGH SOCIALLY<br />

RESPONSIBLE INVESTMENTS<br />

The National Development Plan is a blueprint serving as<br />

a guideline to government departments and state entities<br />

on how they can play a role in government wide efforts<br />

of creating decent work, reducing unemployment and<br />

poverty. The Unemployment Insurance Fund is among<br />

the leading state entities in the implementation of the<br />

provisions of the NDP to address the slow economic<br />

growth, unemployment and poverty in South Africa.<br />

The UIF social investment mandate ensures that,<br />

additional to earning good financial returns, investments<br />

must be supportive of long term economic, social and<br />

adhere to sustainable environmental outcomes. The<br />

investments must also yield a good social return for the<br />

country. These investments have sustained 6 860 jobs of<br />

which 3 024 are permanent, 3 836 are temporary/seasonal<br />

and 195 are new jobs created during the financial year<br />

ending in March 2016.<br />

UIF INVESTMENTS IN RENEWABLE ENERGY<br />

The UIF investments are contributing to the energy<br />

requirements of South Africa and the investments in the<br />

renewable energy sector provides a total capacity of 192<br />

megawatt of electricity of which 117 megawatt is solar<br />

energy and 27 megawatt is wind generated electricity.<br />

The De Aar project is a shining example of the UIF energy<br />

investments and this project produces 90 megawatt of<br />

electricity and was completed in April 2016. The solar plant<br />

in the area generates enough electricity to power 15 000<br />

houses. Another mainstay project is the Phakwe Group ran<br />

projects undertaken in the Northern and Eastern Cape.<br />

INVESTMENT IN FOOD SECURITY<br />

The UIF investments in this regard are undertaken under<br />

the banner of the UIF Agri-Fund in partnership with<br />

Futuregrowth and Day Breaker Poultry Project. The UIF<br />

Agri-Fund has invested in 4 farms situated in Mable Hall<br />

in Limpopo. One of the farms is a cash crop farm spanning<br />

450 hectares. The farm in the last financial year produced<br />

235 hectares of white maize, and cotton was planted in an<br />

area covering 28 hectares.<br />

A further three farms are located in the Saron area in the<br />

Western Cape. In this project a total of 178 hectares has<br />

been used to plant grapes, 37 hectares has been used to<br />

pant citrus fruit. Furthermore, there is potential to plant an<br />

additional 92 hectares of grapes. The Daybreaker Poultry<br />

project operates in <strong>Gauteng</strong>, Limpopo and Mpumalanga<br />

and the combined projects have facilities to grow 1.6<br />

million broiler chickens.<br />

INVESTMENTS IN HEALTH CARE FACILITIES<br />

The UIF concluded two investments in this regard that<br />

include a BEE hospital manager, Busamed to build a<br />

private hospital in Modderfontein and Fund Manager<br />

Razorite Heatlhcare that focus on the provision of<br />

affordable heathcare facilities that include rehabilitation<br />

and sub-acute centres.<br />

The Modderfontein hospital is a 220 hospital bed with subacute<br />

facilities. This hospital is under construction. While<br />

the RH Fund Manager has concluded seven investments<br />

that include:<br />

• Busamed with four hospital facilities<br />

• HealthMed with two facilities<br />

INVESTMENTS IN EDUCATION<br />

UIF has invested in three investments that play a role<br />

to unlock access to education. The investments were<br />

concluded with Eduloan – an organisation that provides<br />

financial support to tertiary students and South Point and<br />

Educor organisations that provide student accommodation.<br />

By March 2016, Eduloan had disbursed about R446 986.64<br />

benefiting 34 047 students, whiles South Point provided<br />

about 10 000 student with accommodation.<br />

UIF INVESTMENTS IN ENTERPRISE DEVELOPMENT<br />

The UIF has concluded two investments with the aim of<br />

supporting small and medium enterprises. In this regard<br />

the PIC on behalf of UIF has concluded investment deals<br />

with Musa Capital and TOSACO.<br />

The investments will support more than 250 SMMEs across<br />

various sectors inclusive of agriculture and affordable<br />

housing. Musa Capital for example has a supply chain of<br />

over 250 SMME’s that have facilitated the creation of 2 500<br />

jobs.<br />

TOSACO investments is planning to advance capital to<br />

young black entrepreneurs who aspire to own and manage<br />

Total Filling stations around the country.<br />

For more information:<br />

Call: 0800 843 843 or<br />

visit: www.labour.gov.za


CONTENTS<br />

Automotive and components 50<br />

The South African Auto Master Plan has been unveiled.<br />

Food and beverages 51<br />

<strong>Gauteng</strong>’s big market is attractive to producers.<br />

Tourism52<br />

Major new investments in tourism are under way.<br />

<strong>Business</strong> services 58<br />

South African consulting is a leader in Africa.<br />

Education and training 60<br />

The private sector is growing fast.<br />

ICT62<br />

Financial institutions are investing in ICT.<br />

Banking and financial services 63<br />

Newcomers are challenging the established players.<br />

Development finance and SMME support 68<br />

Public and private funding is available for entrepreneurs.<br />

Government<br />

<strong>Gauteng</strong> Provincial Government 78<br />

A guide to <strong>Gauteng</strong>’s provincial departments<br />

and their MECs.<br />

GAUTENG PROVINCE<br />

<strong>Gauteng</strong> Local Government 79<br />

A guide to metropolitan, district and local municipalities<br />

in <strong>Gauteng</strong> Province.<br />

N1<br />

Limpopo<br />

References<br />

North West<br />

Hammanskraal<br />

Mpumalan<br />

Sector contents 42<br />

Overview of the main economic sectors of <strong>Gauteng</strong>.<br />

N1<br />

Index80N4<br />

Map<br />

<strong>Gauteng</strong> provincial map. 15<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

6<br />

Cullinan<br />

PRETORIA Mamelodi<br />

Ekangala<br />

Zithobeni<br />

N4<br />

Centurion<br />

N4<br />

Atteridgeville<br />

Bronkhorstspruit<br />

Irene<br />

N1<br />

N14<br />

R21<br />

Magaliesburg<br />

Midrand<br />

Muldersdrift<br />

Tembisa<br />

Sandton Alexandra<br />

Krugersdorp Randburg Kempton Park<br />

Roodepoort<br />

Isando Benoni<br />

Edenvale<br />

N14 Randfontein<br />

N12<br />

JOHANNESBURG<br />

Kagiso<br />

Boksburg Daveyton<br />

Mohlakeng<br />

Germiston<br />

Wattville Brakpan<br />

Soweto<br />

Alberton<br />

Bekkersdal<br />

Reiger Park KwaThema<br />

Lenasia<br />

Katlehong<br />

N12<br />

Springs<br />

Westonaria<br />

Vosloorus<br />

N1 Tokoza Tsakane Duduza<br />

Nigel<br />

R59<br />

N3<br />

Heidelberg<br />

Evaton<br />

Ratanda<br />

Meyerton<br />

Sebokeng<br />

Boipatong Vereeneging<br />

Bophelong<br />

Vanderbijlpark Sharpeville<br />

Devon<br />

Mpumalang


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The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). Moving Forward is a trademark of The Standard Bank of South Africa Limited. SBSA 265006 07/17


FOREWORD<br />

<strong>Gauteng</strong> <strong>Business</strong><br />

A unique guide to business and investment in <strong>Gauteng</strong>.<br />

<strong>Gauteng</strong> <strong>Business</strong> <strong>2017</strong>/<strong>18</strong> is the ninth <strong>edition</strong> of this highly<br />

successful annual journal, that has established itself as<br />

the premier business and investment guide for the<br />

<strong>Gauteng</strong> province. Special features for <strong>2017</strong>/<strong>18</strong> include<br />

a focus on major new developments in the region’s metros, complemented<br />

by detailed overviews of the main economic sectors in<br />

South Africa’s most important provincial economy.<br />

The print journal is complemented by the ebook <strong>edition</strong> at<br />

www.gautengbusinessguide.co.za, and updates, business news<br />

and event listings can be found on the monthly <strong>Business</strong> South Africa<br />

e-newsletter, with a circulation of over 30 000.<br />

Global Africa Network Media (www.globalafricanetwork.com),<br />

the publisher of <strong>Gauteng</strong> <strong>Business</strong>, specialises in business-to-business<br />

print and electronic publications, producing a series of regionspecific,<br />

annual print journals. Every province in South Africa is<br />

covered by this unique range of journals and websites, complemented<br />

by a national business guidebook, South African <strong>Business</strong>.<br />

Chris Whales<br />

Publisher, Global Africa Network Media<br />

Email: chris@gan.co.za<br />

DISTRIBUTION<br />

<strong>Gauteng</strong> <strong>Business</strong> is distributed internationally on outgoing and<br />

incoming trade missions; to foreign offices in South Africa’s<br />

main trading partners; at top national and international events;<br />

through the offices of foreign representatives in South Africa;<br />

as well as nationally and regionally via chambers of commerce,<br />

tourism offices, trade and investment agencies, provincial government<br />

departments, municipalities, airport lounges and<br />

companies.<br />

CREDITS<br />

Publisher: Chris Whales<br />

Publishing director:<br />

Robert Arendse<br />

Editor: John Young<br />

Online editor: Christoff Scholtz<br />

Art director: Brent Meder<br />

Design: Colin Carter<br />

Production: Lizel Olivier<br />

Ad sales: Sydwell Adonis, Nigel<br />

Williams, Gavin van der Merwe,<br />

Sam Oliver, Gabriel Venter,<br />

Siyawamkela Sthunda, Vanessa<br />

Wallace, Jeremy Petersen and<br />

Reginald Motsoahae<br />

Managing director: Clive During<br />

Administration & accounts:<br />

Charlene Steynberg and<br />

Natalie Koopman<br />

Distribution & circulation<br />

manager: Edward MacDonald<br />

Printing: FA Print<br />

PUBLISHED BY<br />

Global Africa Network Media (Pty) Ltd<br />

Company Registration No: 2004/004982/07<br />

Directors: Clive During, Chris Whales<br />

Physical address: 28 Main Road, Rondebosch 7700<br />

Postal address: PO Box 292, Newlands 7701<br />

Tel: +27 21 657 6200 | Fax: +27 21 674 6943<br />

Email: info@gan.co.za | Website: www.gan.co.za<br />

Member of the Audit Bureau of Circulations ISSN 1990-6021<br />

COPYRIGHT | <strong>Gauteng</strong> <strong>Business</strong> is an independent publication published<br />

by Global Africa Network Media (Pty) Ltd. Full copyright to the<br />

publication vests with Global Africa Network Media (Pty) Ltd. No part<br />

of the publication may be reproduced in any form without the written<br />

permission of Global Africa Network Media (Pty) Ltd.<br />

PHOTO CREDITS | Zimile Consulting Engineeers, Scaw Metals, <strong>Gauteng</strong><br />

Tourism, Rebecca Hearfield, Paragon Architects, Andrew Bell, Anglo<br />

American, SciBono, Thinkstock, Wikimedia, and SA Tourism.<br />

DISCLAIMER | While the publisher, Global Africa Network Media (Pty)<br />

Ltd, has used all reasonable efforts to ensure that the information contained<br />

in <strong>Gauteng</strong> <strong>Business</strong> is accurate and up-to-date, the publishers<br />

make no representations as to the accuracy, quality, timeliness, or<br />

completeness of the information. Global Africa Network will not accept<br />

responsibility for any loss or damage suffered as a result of the use of or<br />

any reliance placed on such information.<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

8


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Standard Bank Private Banking and Wealth and Investment clients get free access to our<br />

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and the Vida e Caffé if you have 5 minutes for a quick cup of coffee and a snack before your flight or if you have<br />

time to unwind, indulge in a 5 course meal at the Library Lounge located between Gate D7 and D8.<br />

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trademark of The Standard Bank of South Africa Limited. SBSA271604/R 07/17


A REGIONAL OVERVIEW OF<br />

GAUTENG<br />

<strong>Gauteng</strong>’s metros are driving growth and investment.<br />

By John Young<br />

<strong>Gauteng</strong> province covers just 1.4% of South Africa’s land mass but it produces about a<br />

third of South Africa’s gross domestic product (GDP), and a remarkable 10% of that of<br />

the African continent. Whereas mining used to account for <strong>Gauteng</strong>’s dominance of the<br />

regional economy, the province is now a leader in a wide range of other sectors: finance,<br />

manufacturing, commerce, IT and media among them.


SPECIAL FEATURE<br />

The Bureau of Market Research (BMR) has shown<br />

that <strong>Gauteng</strong> accounts for 35% of total household<br />

consumption in South Africa.<br />

The leading economic sectors are finance, real<br />

estate and business (21% of provincial GDP), manufacturing<br />

(16.5%), government services (16.3%) and<br />

wholesale, retail, motor trade and accommodation<br />

(12.8%). The so-called creative industries (including<br />

advertising and the film sector) employ upwards<br />

of <strong>18</strong>0 000 people and contribute more than<br />

R3.3-billion to the provincial economy. The provincial<br />

government’s Economic Development Plan sees<br />

this sector as one of the key drivers of future growth.<br />

In the provincial capital, Johannesburg, financial<br />

services and commerce predominate. The JSE,<br />

Africa’s largest stock exchange, is situated in the<br />

heart of Johannesburg’s business district, Sandton.<br />

Tshwane (which includes Pretoria) is home to<br />

many government services and is the base of the<br />

automotive industry and many research institutions.<br />

The Ekurhuleni metropole has the largest concentration<br />

of manufacturing concerns, ranging from<br />

heavy to light industry, in the country. The western<br />

part of the province is concerned mainly with mining<br />

and agriculture, while the south has a combination<br />

of maize farming, tobacco production and<br />

the heavy industrial work associated with steel and<br />

iron-ore workings.<br />

<strong>Gauteng</strong> is not just an important centre of economic<br />

activity, it is also an important launching pad<br />

for local and international businesses to enter the<br />

African market. The country’s biggest airport, OR<br />

Tambo International Airport, is at the core of the<br />

province’s logistical network. Other airports include<br />

Rand Airport (Germiston), Wonderboom (Pretoria)<br />

Lanseria and Grand Central (Midrand).<br />

The Ekurhuleni Metropolitan Municipality plans<br />

on building an “aerotropolis” in partnership with the<br />

provincial government and private investors. The<br />

intention is to link the airports of OR Tambo and<br />

Lanseria and expand logistics capabilities.<br />

The <strong>Gauteng</strong> Division of the High Court of South<br />

Africa (which has seats in Pretoria and Johannesburg)<br />

is a superior court with general jurisdiction over<br />

the province. Johannesburg is also home to the<br />

Constitutional Court, South Africa’s highest court,<br />

and to a branch of the Labour Court and the Labour<br />

Appeal Court.<br />

The province has several outstanding universities,<br />

and the majority of South Africa’s research<br />

takes place at well-regarded institutions such as<br />

the Council for Scientific and Industrial Research<br />

(CSIR), the South African Bureau of Standards<br />

(SABS), Mintek, the South African Nuclear Energy<br />

Corporation (NECSA), the Human Sciences Research<br />

Council (HSRC) and several sites where the work<br />

of the Agricultural Research Council (ARC) is done.<br />

Geography<br />

The province is located in the Highveld region of<br />

South Africa, approximately 1 700 metres above<br />

sea-level. It is a landlocked province, surrounded<br />

by four other provinces.<br />

The Vaal River forms a natural border with the<br />

Free State, which lies south of <strong>Gauteng</strong>, while the<br />

North West province is located to the west, Limpopo<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

12


to the north and Mpumalanga to the east. The geography<br />

of <strong>Gauteng</strong> includes low parallel ridges,<br />

mountain ranges and undulating hills.<br />

Johannesburg is the capital of the <strong>Gauteng</strong><br />

province, while Pretoria is the administrative capital<br />

of South Africa. Other major urban areas include<br />

Roodepoort and Krugersdorp to the west of<br />

Johannesburg; and Germiston, Springs, Benoni and<br />

Brakpan to the east. Soweto, renowned as a focal<br />

point in the struggle against apartheid and home<br />

to more than two-million people, is situated south<br />

of Johannesburg.<br />

Investment<br />

<strong>Gauteng</strong> is a national leader in attracting foreign<br />

direct investment (FDI). In the period 2014-16, the<br />

province attracted R66-billion. The <strong>Gauteng</strong> Growth<br />

and Development Agency (GGDA) has a specialised<br />

subsidiary, the <strong>Gauteng</strong> Investment Centre, which<br />

acts as a “one-stop shop” for potential investors<br />

looking for advice and support.<br />

Efforts are also being made to improve the<br />

regional economy by identifying blockages and<br />

shortcomings. Researchers from the universities of<br />

Johannesburg and Pretoria (through the Gordon<br />

Institute of <strong>Business</strong> Sciences) are examining employment<br />

rates, empowerment policies and the<br />

SPECIAL FEATURE<br />

export value chain. At the same time, the <strong>Gauteng</strong><br />

Innovation Hub is leading a process to bring innovation<br />

and research to the fore in economic<br />

policy-making and planning. Partners include the<br />

Council for Scientific and Industrial Research (CSIR),<br />

the University of the Witwatersrand and the Vaal<br />

University of Technology.<br />

<strong>Gauteng</strong> City Region<br />

Provincial planning is increasingly being done along<br />

“<strong>Gauteng</strong> City Region” lines, whereby the primacy of<br />

economies of the cities and towns of the province<br />

is acknowledged.<br />

In June 2016, the <strong>Gauteng</strong> City Region Economic<br />

Indaba was attended by all the mayors of the region,<br />

the national Minister of Finance and was addressed<br />

the South African Deputy President. <strong>Gauteng</strong><br />

Premier David Makhura gave notice of “how we<br />

can unlock, jump-start and reignite a sustainable<br />

and inclusive growth trajectory for key sectors of<br />

our provincial economy”.<br />

Individually, the biggest <strong>Gauteng</strong> cities contribute<br />

to the national GDP as follows: Johannesburg<br />

(15%), Tshwane (9%) and Ekurhuleni (7%).<br />

At the indaba, the following development corridors<br />

of the City Region were identified, each with<br />

its own industries and comparative advantages:<br />

13 GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong>


SPECIAL FEATURE<br />

• City of Johannesburg, Central Development<br />

Corridor: provincial capital, finance, services,<br />

ICT and pharmaceutical industries, green and<br />

blue economy.<br />

• City of Ekurhuleni, Eastern Development Corridor:<br />

manufacturing, logistics and transport hub.<br />

• City of Tshwane, Northern Development Corridor:<br />

national administrative capital, automotive sector,<br />

research, development, innovation and knowledge-based<br />

economy, tourism, agri-processing.<br />

• West Rand District, Western Development<br />

Corridor: transitioning mining economy. A new<br />

diverse economy to be created around tourism<br />

(Maropeng World Heritage Site), agriculture and<br />

agri-processing, Lanseria Airport City, renewable<br />

energy industries.<br />

• Sedibeng District, Southern Development<br />

Corridor: steel industry in decline. A new economy<br />

to be based on entertainment and tourism (Vaal<br />

River City), logistics, agri-processing and urban<br />

agriculture.<br />

Opportunities for the private sector were mentioned<br />

in connection with several aspects of the<br />

City Region indaba, not least of which was the necessity<br />

for infrastructure investment. Neither the<br />

central government nor provincial and local government<br />

has sufficient resources to cover what the<br />

provincial government has estimated is needed<br />

in the <strong>Gauteng</strong> province in the 15 years to 2030 –<br />

R1.3-trillion. A 15-year <strong>Gauteng</strong> Infrastructure Master<br />

Plan has been adopted but it is hoped that multiple<br />

sources of funding will see the plan succeed in areas<br />

such as the provision of water, broadband connectivity,<br />

public transport, energy and the reshaping of cities to<br />

accommodate citizens in a better way than was the<br />

case under apartheid.<br />

A World Bank report has shown that a 10% increase<br />

in infrastructure spending results in a 1% growth<br />

in GDP.<br />

Ekurhuleni is putting considerable resources into<br />

infrastructure improvement. With a corridor-based<br />

masterplan, the aim is to promote industrial activity.<br />

The corridors (and focus areas) are:<br />

• Thami Mnyele: transport, BRT, M&T Development<br />

and Plumbago Industrial Park<br />

• OR Tambo Aerotropolis: creative sector, technology,<br />

research and development, logistics<br />

• Thelle Mogoerane: logistics, Carnival Junction, OR<br />

Tambo inland port, Prasa rolling stock manufacturing<br />

facility (Prasa has signed a R51-billion contract<br />

with Gibela consortium to deliver 600 trains).<br />

The city budget for 2016/17 has allocated<br />

R45-million for the revamping of four industrial<br />

parks in Labore and Wadeville. Other projects and<br />

investments include:<br />

• Riverfields mixed use estate<br />

• Green Reef Innovation District<br />

• Badenhorst Estate<br />

• Recapitalisation of the Springs Fresh Produce<br />

Market (R110-million)<br />

• Infrastructure to support agri-processing and distribution<br />

of agricultural products (R80-million)<br />

• R269-million over three years to Township<br />

Economy Strategy.<br />

The nine towns of Ekurhuleni are<br />

being connected by the new Bus<br />

Rapid Transit system (Harambee).<br />

The City of Johannesburg’s<br />

good credit record allowed it<br />

to borrow R3.3-billion for infrastructure<br />

expenditure in 2016. In<br />

2014/15 a surplus of R3.9-billion<br />

was achieved and the city spent<br />

94% of its capital budget, or R10.8-<br />

billion. In 10 years Johannesburg<br />

has raised more than R100-billion<br />

for infrastructure.<br />

Tshwane is planning a series of<br />

transformative infrastructure and<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

14


property developments, including expanding the<br />

Bus Rapid Transport System, Government Boulevard,<br />

Tshwane House, Times Square, the Nelson Mandela<br />

Development Corridor, the West Capital project and<br />

the African Gateway.<br />

Together with the three large metropolitan<br />

PROVINCEmunicipalities, <strong>Gauteng</strong> also has two district<br />

municipalities.<br />

Sedibeng District Municipality<br />

Towns: Sebokeng, Heidelberg, Sharpeville,<br />

Vereeniging, Vanderbijlpark<br />

Local municipalities are Emfuleni, Midvaal and<br />

Lesedi. The Vaal University of Technology and the<br />

North North-West WestUniversity’s Vaal campus are located in<br />

Sedibeng. The Emfuleni Local Municipality (including<br />

Evaton, Sharpeville, Vanderbijlpark Hammanskraal and Vlakplaas)<br />

is at the core of the Vaal Triangle, which in turn is<br />

at the GAUTENG heart PROVINCE of South Africa’s iron N1 and steel industry.<br />

Metal products, machinery and equipment are N1<br />

made here. ArcelorMittal has been a major employer<br />

in Vanderbijlpark since 1947.<br />

Cullinan<br />

PRETORIA Mamelodi<br />

N4<br />

N4<br />

Centurion<br />

N4<br />

Atteridgeville<br />

Bronkhorstspruit<br />

North WestIrene<br />

N1<br />

N14<br />

R21<br />

Hammanskraal<br />

Magaliesburg<br />

Midrand<br />

Muldersdrift<br />

Tembisa<br />

Sandton Alexandra<br />

N1<br />

Krugersdorp Randburg Kempton Park<br />

Roodepoort<br />

Isando Benoni<br />

Edenvale<br />

N14 Randfontein<br />

N12<br />

JOHANNESBURG<br />

Kagiso<br />

Boksburg DaveytonCullinan<br />

Mohlakeng<br />

Germiston<br />

Wattville PRETORIA Brakpan Mamelodi<br />

Soweto<br />

N4 Alberton<br />

N4<br />

Bekkersdal<br />

Reiger Park KwaThema<br />

Centurion<br />

Lenasia<br />

Katlehong<br />

N12<br />

Atteridgeville Springs<br />

Westonaria<br />

Vosloorus<br />

Irene<br />

N1 Tokoza Tsakane N1 Duduza<br />

N14<br />

R21 Nigel<br />

Magaliesburg<br />

R59<br />

Midrand<br />

Muldersdrift N3 Tembisa<br />

Sandton Alexandra Heidelberg<br />

Krugersdorp Randburg<br />

Evaton<br />

Ratanda Kempton Park<br />

Roodepoort<br />

Isando Benoni<br />

Edenvale<br />

N14 Randfontein Meyerton<br />

N12<br />

Sebokeng<br />

JOHANNESBURG<br />

Kagiso<br />

Boksburg Daveyton<br />

Vereeneging<br />

Mohlakeng<br />

Germiston<br />

Boipatong<br />

Wattville Brakpan<br />

Soweto<br />

Alberton<br />

Bekkersdal<br />

Reiger Park KwaThema<br />

Bophelong<br />

Lenasia<br />

Katlehong<br />

N12<br />

Springs<br />

Westonaria<br />

Vosloorus<br />

Vanderbijlpark Sharpeville N1 Tokoza Tsakane Duduza<br />

Nigel<br />

R59<br />

N3<br />

Heidelberg<br />

Evaton<br />

Ratanda<br />

N1<br />

Meyerton<br />

Sebokeng<br />

Boipatong Vereeneging<br />

Bophelong<br />

Vanderbijlpark Sharpeville<br />

Free State<br />

N1<br />

Free State<br />

N1<br />

Limpopo<br />

N<br />

SPECIAL FEATURE<br />

Heidelberg produces bacon and tobacco: Eskort<br />

and British American Tobacco are the two major<br />

companies in the area. The Midvaal area has agriculture<br />

and tourism as its two main economic activities<br />

and the city of Meyerton is the site of newly built,<br />

multi-million-rand Heineken brewery . The Klip River<br />

at Henley-on-Klip and the Vaal Dam are major tourist<br />

attractions, while ecotourism opportunities have the<br />

potential to grow. The Suikerbosrand Nature Reserve<br />

is a prime regional asset.<br />

West Rand District Municipality<br />

Towns: Randfontein, Roodepoort, Krugersdorp,<br />

Westonaria<br />

Local municipalities are Merafong City, Mogale City<br />

and West Rand City. Both the N12 and N14 highways<br />

pass through this area which allows for a great deal<br />

Mpumalanga<br />

of commuter traffic into the Johannesburg CBD.<br />

The West Rand is the area of <strong>Gauteng</strong> where mining<br />

has retained its strongest presence. Large-scale<br />

Limpopo commercial farming also takes place. Randfontein<br />

Local Municipality is where the world’s deepest<br />

Ekangala gold mine was dug. To the<br />

Zithobeni<br />

south, mining contributes<br />

75% to Westonaria Local<br />

Municipality’s economy. An<br />

Mpumalanga industrial park is planned to<br />

N12<br />

assist in the process of diversifying<br />

the economy.<br />

Mogale City Local<br />

Ekangala Municipality is very much<br />

Zithobeni<br />

N4<br />

the economic driver of the<br />

Bronkhorstspruit<br />

Devon<br />

district, including as it does<br />

N17<br />

the town of Krugersdorp.<br />

N12<br />

Krugersdorp has considerable<br />

manufacturing capacity<br />

and has a motor-sports racing<br />

Mpumalanga track that attracts international<br />

Devon<br />

N17 drag-racing events. Tourism<br />

in the district is mostly located<br />

within the surrounds of<br />

Mpumalanga<br />

Mogale City. Significant tourist<br />

attractions include the Cradle<br />

of Humankind, the Magalies<br />

Motorway<br />

Meander, the Sterkfontein<br />

Main Road<br />

N Railway<br />

caves and the Krugersdorp<br />

Game Reserve.<br />

N3<br />

Motorway<br />

Main Road<br />

Railway<br />

15 GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

.<br />

.


Unlocking the door for inner-city<br />

investment in Johannesburg<br />

High-rise, low-cost accommodation could be transformative.<br />

Sometimes fast, sometimes slow. Government-led<br />

at times, on other occasions initiated<br />

by private investors. That’s the story<br />

of the regeneration of Johannesburg’s<br />

inner city. It is a story that has had notable successes<br />

along the way, but progress has been sporadic and<br />

efforts have mostly been concentrated on quite<br />

small parts of the city.<br />

The Newtown urban renewal project included<br />

a focus on the arts at Mary Fitzgerald Square; the<br />

building of the Nelson Mandela Bridge in 2003 improved<br />

linkages and gave the city a cool symbol;<br />

the Johannesburg Development Agency installed<br />

156 public art works, cleaned up squares and installed<br />

street furniture. More recently, the Maboneng<br />

Precinct on the eastern edge of the CBD has become<br />

a busy mixed-use zone with a focus on the arts,<br />

design and entertainment.<br />

Now there is a drive to transform the central business<br />

district (CBD) in a concerted and coordinated<br />

way. The city’s new mayor, Herman Mashaba, said<br />

of Johannesburg in his “100 Days” address that, “It<br />

can become a model for a modern, post-apartheid,<br />

South African city. It has the ability to produce a<br />

vibrant socio-economic mix of high-rise, low-cost<br />

and affordable housing for our people.”<br />

Mashaba represents the Democratic Alliance<br />

which has been running Johannesburg as the leader<br />

of a coalition of parties since local government<br />

elections in 2016. A notable entrepreneur himself,<br />

Mashaba strongly believes that private businesses<br />

and developers are ready and willing to invest in<br />

downtown Johannesburg. “These are the people<br />

with the balance sheets that can turn this city into<br />

a construction site within a matter of months,”<br />

says Mashaba.<br />

The Premier of the <strong>Gauteng</strong> Province, David<br />

Makhura, is a member of the African National<br />

Congress which continues to be the majority party<br />

at provincial and national level. In his State of the<br />

Province address, Makhura said, “We are in agreement<br />

with Executive Mayor Herman Mashaba that<br />

the renewal of the Johannesburg inner city has to<br />

be undertaken urgently in partnership with the<br />

province, the city and the private sector.”<br />

Political agreement of this sort is rare, so the chances<br />

of success for Johannesburg are better than they<br />

would be in a fractious political climate.<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

16


When the ANC led<br />

the municipality, an<br />

Inner City Roadmap<br />

underpinned longterm<br />

planning for<br />

revitalising the CBD<br />

in response to a number<br />

of firms relocating<br />

their offices to<br />

Sandton, Rosebank<br />

and Randburg. A start<br />

was made via a number<br />

of measures: CCTV<br />

security cameras were<br />

installed, the bus rapid<br />

transport system<br />

(Rea Vaya) was introduced<br />

and a number<br />

of formerly derelict<br />

or hijacked buildings<br />

were converted<br />

to blocks of flats by<br />

the Johannesburg<br />

Housing Company (JHC).<br />

Mashaba has committed the municipality to<br />

cleaning up the city, improving billing for services,<br />

enforcing by-laws and speeding up bureaucratic<br />

processes so that investors don’t have to go from<br />

pillar to post to get something done. Reclaiming<br />

buildings from criminals masquerading as landlords<br />

is high on his agenda. Says Mashaba, “I will be assembling<br />

a team of human-rights lawyers to assist us to<br />

reclaim the inner city from criminals and slum-lords.<br />

“We are going to be the government that unlocks<br />

the door to the potential that our inner city holds<br />

for our people,” is Mashaba’s pledge.<br />

The mayor envisages the private sector putting<br />

R20-billion into projects every year. Among the<br />

things that are needed in central Johannesburg,<br />

and which private investors might provide, are rental<br />

accommodation for the so-called “Missing Middle”<br />

(people earning R3 000 to R8 000 per month) and<br />

low-rent office space to accommodate new companies<br />

and young professionals starting out.<br />

Mashaba’s vision is that Johannesburg can be<br />

“a place of home, work and play that becomes the<br />

thriving and inclusive heartbeat of our city”.<br />

Global trends<br />

SPECIAL FEATURE<br />

Making inner cities more liveable is a global trend.<br />

Flight from the cities in the second half of the 20th<br />

century saw factories relocate to industrial parks<br />

(or other countries) and offices and people move<br />

to suburbs. The move back to cities is spurred partly<br />

by the relative cheapness of property in CBDs,<br />

legislation encouraging inner-city investment and<br />

even a perception that suburbs are “boring”.<br />

Density is a key factor in modern urban planning.<br />

Mphethi Morojele of MMA Design Studio<br />

makes the point that “the more dense and integrated<br />

your city is the more money circulates,<br />

the more people have access to opportunity”.<br />

Morojele’s firm has worked on a number of public<br />

buildings and urban projects, including the Ellis<br />

Park Sports Precinct Parks. “Creating denser<br />

multi-functional environments is not only good<br />

for the quality of life of citizens but is also economically<br />

more efficient and ecologically sustainable,”<br />

says Morojele. “The economic argument<br />

is compelling.”<br />

Not only does a denser environment mean that<br />

service-sector businesses such as laundries and<br />

restaurants have more passing trade, but the provision<br />

of bulk services becomes much more costeffective<br />

for utility companies and municipalities.<br />

A dense urban environment also has the potential<br />

to overturn one of the worst aspects of<br />

apartheid – the fact that most South Africans<br />

were forced to live a long way from their place of<br />

work, causing them to spend a lot of money on<br />

transport, a situation that still exists today.<br />

Nudges and nodes<br />

The <strong>Gauteng</strong> Growth and Development Agency<br />

(GGDA) is one of several organisations other than the<br />

City of Johannesburg which has been encouraging<br />

development in the inner city.<br />

One of the most important nudges for developers<br />

has been the tax incentives that accompany<br />

the Urban Development Zone (UDZ). Initially<br />

pegged to expire in 2012, the UDZ concession has<br />

now been extended to 2020.<br />

17 GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong>


SPECIAL FEATURE<br />

Various “improvement districts” have also contributed,<br />

for example the RID (Retail Improvement<br />

District) where businesses in a designated area<br />

pay levies to secure improved cleaning and security<br />

services. The Johannesburg City Improvement<br />

District Forum shares information among the CIDs.<br />

Expenditure by CIDs collectively on supplementary<br />

public space safety, cleaning and maintenance<br />

is estimated to be about R 61-million annually.<br />

Investment in public space infrastructure from CIDs<br />

was more than R50-million over the last five years.<br />

The <strong>Gauteng</strong> Partnership Fund (GPF) has<br />

attracted about R3.5-billion in private-sector funding<br />

for affordable housing in the province since 2012.<br />

The Brickfields housing and rental development in<br />

Newtown was funded by the GPF and implemented<br />

by the Johannesburg Housing Company (JHC) as<br />

one of the first inner-city rejuvenation projects. JHC<br />

is a leader in converting bad buildings to useable<br />

rental space.<br />

The Johannesburg Development Agency (JDA)<br />

projects range from the upgrading of Constitution<br />

Hill, the Faraday Station precinct, work on the<br />

Fashion District and pavements of the inner city,<br />

renovation of the Drill Hall and the big Newtown<br />

make-over.<br />

Mayor Mashaba intends fast-tracking the delivery<br />

of title deeds to the beneficiaries of the city’s<br />

housing projects.<br />

Public spaces need to be included in urban regeneration<br />

planning, as do buildings for social purposes.<br />

When the Outreach Foundation Community<br />

Centre was built in Hillbrow in 2015, it was the first<br />

piece of social infrastructure to go up in the suburb<br />

since the 1970s. The design, a glass box in a light<br />

steel frame which seems to hover over the site, won<br />

architects Local Studio the Saint Goban architectural<br />

award and provides space for dance and computer<br />

classes and offices.<br />

The same architects also developed a public<br />

service centre on top of a renovated building for<br />

Urban Task Force, a private property development<br />

company. The building in Hillbrow, Mimosa Square,<br />

was a famous art deco building that had been<br />

hijacked by criminals.<br />

Private developer Indluplace Properties bought<br />

nine large apartment blocks in 2015, taking its total<br />

buildings in the central Johannesburg CBD, Berea and<br />

Hillbrow to 23: 33% of the units are bachelor pads,<br />

22% are two-bedroomed flats. The listed company (its<br />

major shareholder is Arrowhead) intends to “aggressively<br />

grow its portfolio” of high-yielding properties<br />

as it believes the rental market has huge potential.<br />

The developers of the Maboneng Precinct are<br />

also very upbeat. The Propertuity website states,<br />

“With Arts on Main as the catalyst, Maboneng has expanded<br />

east along Fox Street, and beyond Albertina<br />

Sisulu Road. Community projects like Trim Park and<br />

Common Ground offer spaces for the public to use<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

<strong>18</strong>


Goch St<br />

Hubert St<br />

Grafton Rd<br />

Ussher St<br />

Fortesque Rd<br />

Janie St<br />

Ford St<br />

Mordaunt St<br />

Browning St<br />

Grafton Rd<br />

Fortesque Rd<br />

Janie St<br />

Ford St<br />

Mordaunt St<br />

Browning St<br />

SPECIAL FEATURE<br />

ty (CIDs) Map<br />

t<br />

Rd<br />

WID<br />

Hi lside Rd<br />

Belgium St<br />

eyds St<br />

Civic<br />

Loveday St<br />

Loveday St<br />

WID<br />

ain str mall<br />

Vi lage Rd<br />

Produced: 2013/09/10<br />

Juta St<br />

Noord St<br />

CON HILL<br />

Kerk St<br />

Thorpe St<br />

De Korte St<br />

RID<br />

Fox St<br />

Loveday St<br />

Eloff St<br />

Joubert St<br />

Hoek St<br />

Eloff St<br />

Queens Rd<br />

De Villiers St<br />

and enjoy, while buildings have been re-developed<br />

into multi-purpose spaces.”<br />

The City of Johannesburg has identified the<br />

following nodes for development:<br />

• Carlton Precinct: Johannesburg’s tallest building<br />

attracts tourists; undergoing revamp; Sky Rink<br />

TV and film studio being developed; conference<br />

centre planned.<br />

• Park Station: intermodal node catering for cars,<br />

Mapping buses, by rail commuters Client and . taxis; Gautrain link to OR<br />

Tambo International Airport; wide variety of users.<br />

• Central park: JDA has JHB worked Inner City on (CIDs) greening Map and<br />

Princess Pl<br />

Noord St<br />

Wanderers St<br />

Empire Rd<br />

Gi lies St<br />

Park Dr<br />

Central Rd<br />

Lilian Rd<br />

May Rd<br />

Pioneer Rd<br />

Bonanza St<br />

andira urban<br />

services<br />

Gale Rd<br />

Berea North Proposed CID<br />

Von Brandis St<br />

Albert St<br />

Kruis St<br />

Ekhaya Neighbourhood<br />

Plein St<br />

President St<br />

CID<br />

Kruis St<br />

Salisbury St<br />

Legend<br />

Park La<br />

Esselen St<br />

Edith Cave l St<br />

High St<br />

Pritchard St<br />

Wemmer Jubilee Rd<br />

Jager St<br />

Avenue Rd<br />

Fountain Rd<br />

Delvers St<br />

High Rd<br />

Quartz St<br />

Clare Rd<br />

Kerk St<br />

Western Blvd<br />

Frederick St<br />

Smal St<br />

National Roads<br />

Main Roads<br />

Secondary Roads<br />

Railways<br />

Pine Ave<br />

Falklands Ave<br />

Rhodes Ave<br />

Yale Rd<br />

WITS<br />

Legae La Rona<br />

Quinn St<br />

Graf St<br />

Pim St<br />

Shaft St<br />

Seymour Ave<br />

Carr St<br />

Park Rd<br />

New Town<br />

Ellis Park Precint<br />

SWID<br />

Main str mall<br />

SWID<br />

RID<br />

CID<br />

community engagement and wants the park to<br />

be a symbol of the successful city.<br />

• Doornfontein/Ellis Park railroad corridor: planned<br />

retail hub and student village.<br />

• Fordsburg: interior design focus; more offices and<br />

accommodation can be built.<br />

• Newtown: cultural precinct with the potential<br />

to cater to students and university departments<br />

with specialised offices and spaces.<br />

• Hillbrow, Berea, Parktown, Bellvue, Yeoville: creation<br />

of new Streetspublic open CID = Central space; Improvement District. opportunities for<br />

Acronyms :<br />

SWID = South Western Improvement District.<br />

MMID = Main Marshall Improvement District.<br />

RID = Retail Improvement District.<br />

Legislated CID<br />

office and hotel developments.<br />

National Roads<br />

Main Roads<br />

Secondary Roads Voluntary Initiatives<br />

Railways<br />

Voluntary Intiatives in CID Establishment Process<br />

Produced: 2013/09/10<br />

¯<br />

Acronyms :<br />

SWID = South Western Improvement District.<br />

Streets<br />

CID = Central Improvement District.<br />

MMID = Main Marshall Improvement District.<br />

RID = Retail Improvement District.<br />

Legislated CID<br />

Voluntary Initiatives<br />

Legae La Rona<br />

Berea North Proposed CID<br />

0 0,050,1 0,2<br />

Voluntary Intiatives in CID Establishment Process<br />

Kilometers<br />

CON HILL<br />

Girton Rd<br />

MAP COURTESY OF WWW.CIDFORUM.CO.ZA<br />

Yettah St<br />

Claim St<br />

Koch St<br />

Bruce St<br />

Quartz St<br />

Polly St<br />

MMID<br />

Melrose St<br />

Banket St<br />

Malherbe St<br />

Leyds St<br />

Bok St<br />

Noord St<br />

Park La<br />

Sydenham Rd<br />

Fashion District<br />

Troye St<br />

Cornelius St<br />

Heidelberg Rd<br />

Honey St<br />

Park La<br />

Hancock St<br />

Eendracht St<br />

Berea South Proposed CID<br />

Goud St<br />

Nugget St<br />

Fife Ave<br />

Prospect Rd<br />

Banket St<br />

Hadfield Rd<br />

End St<br />

End St<br />

Nugget St<br />

Goud St<br />

High St<br />

Barnato St<br />

Davies St<br />

Hi lbrow St<br />

Olivia Rd<br />

Sherwe l St<br />

York St<br />

END PARK<br />

End St<br />

Albert St<br />

Lily Ave<br />

Soper Rd<br />

Davies St<br />

End St<br />

Durban St<br />

Meikle St<br />

Doris St<br />

Currey St<br />

End St Ext<br />

Joel Rd<br />

Henri St<br />

Station St<br />

Alexander St<br />

Wolhuter St<br />

Pat Mbatha Bus & Taxiway<br />

Becker St<br />

Albany Rd<br />

Hoofd St<br />

Ameshoff St<br />

Stiemens St<br />

Braamfontein<br />

Becker St<br />

De Beer St<br />

New Doornfontein 1<br />

Phi lip<br />

Nind St<br />

York Ave<br />

Hadfield Rd<br />

Fox St<br />

Pearse St<br />

Height St<br />

Greene St<br />

Van Beek St<br />

Berea<br />

Staib St<br />

Hopkins St<br />

Yeo St<br />

Hendon St<br />

Percy St<br />

South St<br />

Beit St<br />

Lower Railway Rd<br />

West St<br />

Me le St<br />

Diagonal St<br />

We lington Rd<br />

Biccard St<br />

1st Pl<br />

Main Rd<br />

Hall St<br />

Maboneng CIDDarcy St<br />

Martin St<br />

Harley St<br />

Gordon Ter<br />

Kruger St<br />

Carr St<br />

Dora St<br />

Ove St<br />

Maritzburg St<br />

Webb St<br />

9th St<br />

Betty St<br />

Page St<br />

Saunders St<br />

Minors St<br />

Beit St<br />

8th St<br />

Kort St<br />

Auret St<br />

Juta St<br />

Highlands St<br />

Jules St<br />

Fraser<br />

Hi lside Rd<br />

Belgium St<br />

Leyds St<br />

Mi ler St<br />

Macintyre St<br />

Erin St<br />

Voorhout St<br />

Gous St<br />

Market St<br />

Madison<br />

Cavendish Rd<br />

Gus St<br />

Droste Cr<br />

Civic<br />

Loveday St<br />

Vi lage Rd<br />

Trump St<br />

Yeo St<br />

Becker St<br />

Juta St<br />

Hunter St<br />

Noord St<br />

Loveday St<br />

Mi lbourne Rd<br />

3rd St<br />

Liddle St<br />

Hans St<br />

2nd St<br />

Dawe St<br />

Kerk St<br />

Thorpe St<br />

De Korte St<br />

Fox St<br />

Loveday St<br />

Main St<br />

Wolhuter St<br />

Pope St<br />

Isipingo St<br />

Jo ly St<br />

1st St<br />

Andries St<br />

Fox St<br />

Marsha l St<br />

Eloff St<br />

Stott St<br />

Natal St<br />

Joubert St<br />

Hoek St<br />

Terrace Rd<br />

Eloff St<br />

Queens Rd<br />

De Villiers St<br />

Fuller St<br />

Clarence St<br />

Karl St<br />

Hanau St<br />

Stewart Dr<br />

Princess Pl<br />

Noord St<br />

Beelaerts St<br />

Ford St<br />

Wanderers St<br />

Ascot Rd<br />

Derby Rd<br />

Queen St<br />

Charles St<br />

Ford St<br />

Mordaunt St<br />

Pretoria St<br />

Von Brandis St<br />

Albert St<br />

Browning St<br />

Beatty St<br />

Kruis St<br />

Viljoen St<br />

Ekhaya Neighbourhood<br />

Plein St<br />

Jacoba St<br />

Corrie St<br />

Esselen St<br />

Pritchard St<br />

President St<br />

Kruis St<br />

Salisbury St<br />

Edith Cave l St<br />

Wemmer Jubilee Rd<br />

Faraday St<br />

Fred Droste Rd<br />

Border Rd<br />

Legend<br />

Park La<br />

De la Rey St<br />

Victoria Rd<br />

Frere Rd<br />

Carnavon St<br />

Bellevue St<br />

Hanau St<br />

Girder Rd<br />

Nourse St<br />

Grace St<br />

Jager St<br />

Delvers St<br />

Quartz St<br />

Koch St<br />

Kerk St<br />

Frederick St<br />

Smal St<br />

Claim St<br />

Stevenson<br />

Yettah St<br />

Lang St<br />

Kimberley Rd<br />

Bruce St<br />

1st St<br />

Quartz St<br />

Polly St<br />

Banket St<br />

Fashion District<br />

MMID<br />

Melrose St<br />

Marsha l St<br />

Park St<br />

Castle St<br />

Urania St<br />

Cornelius St<br />

Berg St<br />

Gi l St<br />

Clerke St<br />

Short St<br />

Eleanor St<br />

Cornelia St<br />

Albemarle St<br />

Fox St<br />

Boxer St<br />

Leyds St<br />

Bok St<br />

Noord St<br />

Troye St<br />

Heidelberg Rd<br />

Stone St<br />

1st Ave<br />

Long St<br />

Blenheim St<br />

Honey St<br />

Park La<br />

Hancock St<br />

Boom St<br />

High St<br />

Berea South Proposed CID<br />

Goud St<br />

Nugget St<br />

Fife Ave<br />

Prospect Rd<br />

Banket St<br />

Hadfield Rd<br />

End St<br />

End St<br />

Nugget St<br />

Goud St<br />

Barnato St<br />

Davies St<br />

Hi lbrow St<br />

York St<br />

Olivia Rd<br />

Sherwe l St<br />

END PARK<br />

End St<br />

End St<br />

Albert St<br />

Durban St<br />

Lily Ave<br />

Soper Rd<br />

Davies St<br />

Meikle St<br />

School St<br />

Doris St<br />

Currey St<br />

End St Ext<br />

Joel Rd<br />

Hopkins St<br />

Beit St<br />

Ellis Park Precint<br />

New Doornfontein 1<br />

Phi lip<br />

Nind St<br />

Height St<br />

York Ave<br />

Hadfield Rd<br />

Fox St<br />

Pearse St<br />

Greene St<br />

Lower Railway Rd<br />

Van Beek St<br />

Berea<br />

Staib St<br />

Yeo St<br />

Harley St<br />

Hendon St<br />

Percy St<br />

South St<br />

Gordon Ter<br />

Webb St<br />

Maboneng CID<br />

Kruger St<br />

Dora St<br />

Ove St<br />

Maritzburg St<br />

9th St<br />

Minors St<br />

Betty St<br />

Page St<br />

Saunders St<br />

Beit St<br />

8th St<br />

Auret St<br />

Highlands St<br />

Jules St<br />

Yeo St<br />

Becker St<br />

19 GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

Bridget Rd<br />

Long St<br />

Mi ler St<br />

Macintyre St<br />

Erin St<br />

Voorhout St<br />

Gous St<br />

Market St<br />

Madison<br />

Cavendish Rd<br />

Gus St<br />

Droste Cr<br />

Hunter St<br />

Liddle St<br />

Mi lbourne Rd<br />

3rd St<br />

Dawe St<br />

Hans St<br />

2nd St<br />

Main St<br />

Wolhuter St<br />

Pope St<br />

Isipingo St<br />

Jo ly St<br />

1st St<br />

Andries St<br />

Fox St<br />

Marsha l St<br />

Hanau St<br />

Natal St<br />

Terrace Rd<br />

Fuller St<br />

Clarence St<br />

Karl St<br />

Stewart Dr<br />

Beelaerts St<br />

Ford St<br />

Mordaunt St<br />

Ascot Rd<br />

Derby Rd<br />

Queen St<br />

Charles St<br />

Ford St<br />

Pretoria St<br />

Browning St<br />

Beatty St<br />

Border Rd<br />

Viljoen St<br />

Jacoba St<br />

Corrie St<br />

Fred Droste Rd<br />

De la Rey St<br />

Victoria Rd<br />

Frere Rd<br />

Carnavon St<br />

Bellevue St<br />

Hanau St<br />

Girder Rd<br />

Nourse St<br />

Grace St<br />

Lang St<br />

Kimberley Rd<br />

Eleanor St<br />

Cornelia St<br />

Marsha l St<br />

Park St<br />

Castle St<br />

¯<br />

0 0,050,1 0,2<br />

Kilometers<br />

Urania St<br />

Berg St<br />

Gi l St<br />

Clerke St<br />

Short St<br />

Albemarle St<br />

Fox St<br />

Stone St<br />

1st Ave<br />

1st St<br />

Boxer St<br />

Long St<br />

Bridget Rd<br />

Blenheim St<br />

Long St<br />

Boom St<br />

School St<br />

Trump St<br />

Stott St<br />

Faraday St<br />

Stevenson


New city-like developments are<br />

springing up in <strong>Gauteng</strong><br />

Infrastructure spending is on the increase.<br />

South African television viewers have been<br />

treated to nostalgia-tinged television advertisement<br />

which tells the story of how Sandton<br />

was transformed from farmland to the<br />

richest square mile in Africa, from a sparsely populated<br />

area north of Johannesburg to a bustling mixture of<br />

shops, offices, flats, entertainment complexes and<br />

hotels that is a key component of the city-region’s<br />

economy. With the Liberty Group among the financiers,<br />

Sandton City shopping centre, with 50 000m² of<br />

lettable space, opened in 1973 and sparked fantastically<br />

fast growth around it, mostly at the expense of<br />

Johannesburg’s central business district (CBD).<br />

A new wave of development is sweeping over<br />

Sandton again and the area’s 10 000 businesses and<br />

300 000 residents are spoilt for accommodation<br />

choices, but city-like developments are springing<br />

up in other parts of <strong>Gauteng</strong> as well, partly as a reaction<br />

to new trends in transport (the Gautrain and bus<br />

rapid transport) and partly in response to the concept<br />

of corridor development being pursued by the City<br />

of Johannesburg and the Provincial Government<br />

of <strong>Gauteng</strong>.<br />

Some of South Africa’s biggest companies are<br />

building new headquarters in Sandton. Sasol has<br />

constructed its new global head office to the latest<br />

green specifications and Paragon Architects<br />

created a 4 000m² roof garden encompassing<br />

four biomes. Discovery’s new group headquarters<br />

also follows green principles. The building’s three<br />

towers offer a total of 110 00m² lettable space,<br />

developed and jointly owned by Growthpoint<br />

Properties and Zenprop Property Holdings.<br />

Ironically, Liberty’s modern headquarters are in<br />

the centre of Johannesburg, but the rejuvenation<br />

of the inner city is the subject of a separate article.<br />

The Sandton model<br />

Something like the Sandton model is being replicated<br />

in other parts of <strong>Gauteng</strong> with existing<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

20


SPECIAL FEATURE<br />

estates aiming to bulk up and new developments<br />

setting impressively ambitious goals.<br />

The biggest is Menlyn Maine in the eastern<br />

suburbs of Pretoria. Not only is this a huge multiuse<br />

project, it also aims to be South Africa’s first<br />

“Green Precinct”. Overlooking the main project is<br />

Boogertman + Partners Architects.<br />

Everything about Menlyn Maine is on a grand<br />

scale. Covering 315 000m² in total, the area will<br />

comprise residential apartments, 35 000m² of retail<br />

space and a hotel precinct with three-, fourand<br />

five-star hotels, a conference centre, a casino<br />

and an 8 000-seater arena. Sun International’s<br />

Times Square and Casino is a R4.2-billion project.<br />

The Capital Hotel on the Central Square Piazza<br />

offers 150 hotel rooms and 50 apartments.<br />

Among the first occupants of office space<br />

will be the Public Investment Corporation (PIC),<br />

who are building new corporate headquarters at<br />

Menlyn Maine. Connections to the Gautrain and<br />

Tshwane’s expanding Bus Rapid Transport system<br />

are boosting the new development’s popularity,<br />

with all of the retail space already fully let before<br />

it is completed.<br />

Professional services and consulting firm PwC<br />

has chosen the Waterfall City estate near Midrand<br />

as the site for its new R1.5-billion headquarters.<br />

It will house 3 500 employees and have a total of<br />

40 000m² of lettable space. The striking design of<br />

PwC Tower (shown overleaf, top) was conceived<br />

by LYT Architecture. The building is owned by<br />

Attacq and developed by Atterbury.<br />

The same joint venture is also behind Deloitte’s<br />

<strong>Gauteng</strong> headquarters which will put Pretoria and<br />

Johannesburg staff (3 700 in all) under one roof<br />

at Waterfall City. Aevitas are the architects. Other<br />

corporate tenants to choose Waterfall City include<br />

Group Five, Cell C and Premier Foods.<br />

Services offered include a City Lodge, a Netcare<br />

hospital (in partnership with Phelang Bonolo<br />

Healthcare Group) and a Curro-owned tertiary<br />

body, the Embury Institute.<br />

A big feature of Waterfall City is the Mall of<br />

Africa, the Atterbury Group’s 131 000m² shopping<br />

centre with 300 shops and 6 500 parking bays.<br />

Randburg could become a new centre of<br />

development if plans to extend the Gautrain<br />

are carried through. Multichoice is one of the<br />

21 GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong>


SPECIAL FEATURE<br />

core businesses in the area, with a huge headoffice<br />

complex. Randburg Square has recently<br />

been converted from offices to <strong>18</strong>0 flats by Vukile<br />

Property Fund.<br />

This kind of conversion is becoming a trend,<br />

with office vacancies standing at 11% in early <strong>2017</strong><br />

across South Africa. The building of their own huge<br />

new corporate headquarters by big companies exacerbates<br />

this trend. Another property fund, Emira,<br />

plans to convert some of its Rosebank office space<br />

into accommodation. Even within the new Menlyn<br />

Maine development, planners are expecting to convert<br />

some of the residential accommodation being<br />

offered in the first phase to offices when demand<br />

picks up again.<br />

Less exclusive nodes of development (or new<br />

mini-cities) are in the works near Orange Farm south<br />

of Johannesburg (Savannah) and around the capital<br />

city of Tshwane.<br />

Tshwane’s West Capital Project will be a mixeduse<br />

development comprising retail outlets, health<br />

facilities, residential accommodation (including a<br />

student village) and commercial premises.<br />

The African Gateway project is planned for an<br />

80ha site near to the Centurion Gautrain station that<br />

will be tied in with designs for the government and<br />

Tshwane International Convention Centre precincts.<br />

Corridors<br />

Much of the development referred to above is<br />

taking place in terms of a broader framework of<br />

development. Johannesburg’s Freedom Corridors<br />

are designed to guide future development and<br />

break down the spatial framework that apartheid<br />

created. Central to the concept is the availability<br />

of public transport which will allow residents easy<br />

access to other parts of the city including public<br />

spaces and retail or entertainment nodes.<br />

The Wynberg-Alex-Marlboro corridor is earmarked<br />

for high-density residential development<br />

which will create markets for small businesses<br />

and tourism. Another corridor, the Orange Grove-<br />

Bramley-Waverley-Highlands North-Kew corridor,<br />

already has a large number of small businesses and<br />

automotive repair and trade shops so the plan is<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

22


SPECIAL FEATURE<br />

to build on that to develop the existing strengths<br />

of the area.<br />

The efficient and popular Gautrain is proving a<br />

magnet for development, with a number of property<br />

developers targeting Gautrain stations as the site for<br />

projects. The busiest stations are experiencing daily<br />

visits of up to 60 000 commuters and on popular lines<br />

at busy times it is standing room only. More wagons are<br />

on order and line expansions are under consideration.<br />

One estimate puts the number of annual work days<br />

saved for regular commuters at 3.5-million.<br />

The Bus Rapid Transport system (Rea Vaya) has the<br />

potential to be a similar catalyst but the system is not<br />

expanding as fast as developers would like.<br />

Plans for the creation of an “aerotropolis” in the<br />

Ekurhuleni Metropolitan Municipality based on OR<br />

Tambo International Airport have long been in the<br />

works and the broad outlines of the plan are well<br />

known. In response, private developers have been buying<br />

up land along key routes such as the R21 highway.<br />

Infrastructure<br />

The Provincial Government of <strong>Gauteng</strong> spent R30-<br />

billion on infrastructure between 2013 and 2016. A<br />

further R46-billion has been pledged for the three<br />

three years to 2019. In addition, <strong>Gauteng</strong> municipalities<br />

will spend R94-billion over the next five years using<br />

their city budgets.<br />

A study carried out by KMPG for the province found<br />

that spending on infrastructure resulted in additional<br />

economic activity worth R26-billion in the province<br />

and created 92 000 direct jobs.<br />

The following priorities have been identified:<br />

• public transport<br />

• broadband and free Wifi<br />

• water and sanitation<br />

• mega human settlements<br />

• new industrial nodes.<br />

The Johannesburg Roads Agency (JRA) will spend<br />

R19-million on fixing the city’s bridges, mostly by replacing<br />

bridge expansion joints, as part of its overall<br />

mandate of maintaining and building roads for the city.<br />

Speaking at the Infrastructure Funding Summit<br />

in May <strong>2017</strong>, <strong>Gauteng</strong> Premier David Makhura said<br />

that the <strong>Gauteng</strong> Infrastructure Master Plan put the<br />

figure of R1.8-trillion to the province’s infrastructure<br />

needs over a 15-year period. Makhura hoped that the<br />

private sector would come on board to help “reshape<br />

the spatial economy of the <strong>Gauteng</strong> City Region”.<br />

MAJOR ROUTE OVERHAUL<br />

<strong>Gauteng</strong>’s busy highways are in need of constant<br />

work as part of the vital infrastructure<br />

that supports the country’s most important<br />

economic hub.<br />

Complex designs are the order of the day for<br />

the rehabilitation of a section of the R511<br />

highway, a major route from Midrand towards<br />

the North West province. It also serves as a<br />

collector/distributor for the rural areas and<br />

towns along the route. The <strong>18</strong>-month, R150-<br />

million project attracted several prospective<br />

contractors who will work together with the<br />

company appointed to design the upgrade,<br />

Zimile Consulting Engineers. The project has<br />

attracted contractors of CIDB level 9CEPE due<br />

to the complexity of its nature. This project is<br />

one of the biggest projects Zimile has successfully<br />

designed.<br />

Work includes constructing crushed stone<br />

bases and lower sub-bases, importing upper<br />

sub-bases and sealing with asphalt. Rip and<br />

re-compact existing G7 subgrade to 150mm.<br />

If the engineer is not satisfied with the material,<br />

then the layer will be constructed of G6<br />

from commercial sources. Edge beams must<br />

be constructed and all road signs and markings<br />

must be reinstated and guardrails have to be<br />

replaced, realigned or repaired. The road reserve<br />

and drainage structures must be cleaned,<br />

reinstated and repaired. The contract was<br />

issued by the <strong>Gauteng</strong> Department of Roads<br />

and Transport.<br />

23 GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong>


PROFILE<br />

Zimile Consulting<br />

Engineers<br />

A broad range of skills are available to help deliver projects ranging from water resources<br />

to transportation and buildings.<br />

Zimile Consulting Engineers is a 100 % HDI womanowned<br />

multi-disciplinary consulting engineering<br />

and project and construction management<br />

firm. By embracing the dynamism that is in the<br />

built environment through technological advancement,<br />

Zimile Consulting Engineers seeks<br />

to offer value-adding and innovative engineering<br />

solutions.<br />

The company offers independent technologybased<br />

professional services in the built environment.<br />

The services offered range from concept<br />

development to project commission or an involvement<br />

at a particular stage of the project<br />

life cycle. It is an engineering consulting and<br />

management practice with competence in water<br />

resources development, property development,<br />

municipal infrastructure, buildings and structures,<br />

transportation infrastructure and environmental<br />

solutions.<br />

The company has its headquarters in <strong>Gauteng</strong> and<br />

has a strong presence nationally with major projects<br />

in the provinces of Limpopo, Mpumalanga, Northern<br />

Cape, KwaZulu-Natal and North West.<br />

Vision<br />

Zimile Consulting Engineers is committed to be<br />

the professional service provider of choice for engineering<br />

solutions within South Africa and ultimately<br />

Africa through inspired engineering drawn from:<br />

• Innovative thinking<br />

• Simple approach to problems<br />

• Proactive attitude and<br />

• Smart application to problem solving<br />

Shawn Gama, MD<br />

Mission<br />

Zimile Consulting<br />

Engineers undertakes<br />

to provide its<br />

clients and recipients<br />

of its services<br />

with engineering<br />

solutions which deliver<br />

infrastructure<br />

that will create a<br />

better every day for<br />

communities and<br />

the clients it serves.<br />

Objectives<br />

Zimile Consulting Engineers was established with<br />

the following prime objectives:<br />

• Deliver projects that are both economically<br />

feasible and technically viable.<br />

• Deliver projects that are recognised for their<br />

quality.<br />

• Employ basic and advanced design solutions in<br />

addressing client needs.<br />

• Be socially relevant to the community.<br />

• Use labour intensive methods where possible<br />

to create work on projects we are involved in.<br />

Resources and structure<br />

Zimile Consulting Engineers currently has the<br />

following personnel resources:<br />

Two professional registered engineers (PhD),<br />

two civil engineers, two civil technologists, three<br />

technicians, two civil technicians/trainees, one<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

24


PROFILE<br />

Construction Monitoring of, for example, offices,<br />

schools, recreation centres, community centres<br />

and housing complexes.<br />

The Kwa Jona Community Hall in Jozini.<br />

secretary. The resumes of our professional and<br />

commited staff are available on request.<br />

The company is structured to optimally maximise<br />

the resources available. Most of the staff members<br />

within our company are from the previously disadvantaged<br />

communities. The objective of Zimile<br />

Consulting Engineers is to meet the needs of the<br />

client by providing proficient and specialised consulting<br />

engineering services. Communication is<br />

of the utmost importance to achieve this and we<br />

therefore appoint a senior member of the company<br />

as a leader for each project.<br />

Where communities are affected, projects are<br />

structured to allow community input and participation<br />

in the planning, design and implementation<br />

stages. Job creation and training form part of<br />

the overall strategy.<br />

Professional services<br />

Zimile Consulting Engineers offers the following<br />

range of professional services and products. The<br />

company’s professional staff, local partners and<br />

shareholders have proven track records and considerable<br />

technical expertise and experience.<br />

Municipal Services<br />

Including Strategic and Master-Planning, Analysis<br />

and Optimisation, Scoping, Design, Documentation,<br />

Procurement, Contract Administration and<br />

Construction Monitoring.<br />

Buildings and Structures<br />

Including Analysis, Design, Documentation,<br />

Procurement, Contract Administration and<br />

Transportation Infrastructure<br />

Including Planning, Design, Documentation,<br />

Procurement, Contract Administration and<br />

Construction Monitoring of roads, public transport<br />

facilities, airports, railways and parking areas.<br />

Water Resources Development<br />

Including Situation Analysis, Resources Assessments,<br />

Requirements Evaluation, Hydrological Modelling,<br />

Hydraulic Analysis, System Analysis and Operations,<br />

Options Analysis and Development, Flood Studies,<br />

Demand Management, Planning and Development<br />

of bulk national and regional infrastructure.<br />

Waste Management<br />

Including Community Participation, Environmental<br />

management, Integrated Waste Management,<br />

Resource Optimisation, Environmental Audits and<br />

evaluating service levels.<br />

Labour Based Construction and Contractor<br />

Development<br />

Including Development of Construction Methods<br />

focussing on Poverty Relief, Local Employment<br />

Creation, Stimulation of Local Economic<br />

Development and Local Contractor Development.<br />

Project Management<br />

Including Client Liaison, Multi-disciplinary Teams<br />

Coordination, Project Cost Control, Risk Assessment<br />

and Management and Conflict Resolution.<br />

CONTACT INFO<br />

Head office: Suite F, First Floor, 41 Kyalami<br />

Boulevard, Kyalami <strong>Business</strong> Park, Midrand<br />

1682, Johannesburg<br />

Tel: +27 11 466 8576<br />

Cell: +27 81 566 3598<br />

Fax: +27 11 466 881<br />

Email: info@zimileeng.co.za<br />

Website: www.zimileeng.co.za<br />

25 GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong>


Going smart<br />

A partnership with a Danish city promises smart rewards for the City of Tshwane.<br />

Tshwane and the Danish city of Aarhus have<br />

established a partnership to get the most out<br />

of data and information technology. The plan<br />

is to make the cities as smart as they can be.<br />

As Carsten Lützen, an architect in the Danish<br />

city’s Centre for City Development and Mobility<br />

Planning says, “Wherever it makes sense to use<br />

smart technologies, we use it.” Key focus sectors<br />

are mobility, transport and energy.<br />

Makgorometje Makgata, Tshwane’s acting head<br />

of Economic Development and Spatial Planning,<br />

points out that smart city thinking is not necessarily<br />

the central idea, rather, “Whatever programmes<br />

you do, you ensure that you incorporate smart<br />

city planning. You look at the bigger picture, for<br />

example with the traffic congestion, you look at<br />

various modalities, how can you use technology<br />

to help you.”<br />

Lützen and Makgata met in Copenhagen recently,<br />

and discussed the options for cooperation<br />

between the two cities. The first step will be the<br />

formal signing of a memorandum of understanding<br />

and then more specific projects will be targeted.<br />

“One of our tasks,” says Lützen, “is to facilitate<br />

links between companies in our region and in the<br />

<strong>Gauteng</strong> region. Big companies like Kamstrup and<br />

Vestas are present in South Africa, but there is a huge<br />

potential for other companies to start up.” There<br />

are possibilities for partnerships and joint ventures<br />

between universities, architects, city planners and<br />

suppliers of services.<br />

“There might be various fields of cooperation in<br />

the future. We aim to facilitate whatever makes good<br />

sense to make people connected.”<br />

Makgata was in Denmark as part of an African<br />

delegation of urban planners and architects studying<br />

urban design. He was a guest of the Danish<br />

Embassy in Pretoria.<br />

During his time in Denmark, Makgata was introduced<br />

to the Danish Outdoor Lighting Laboratory<br />

(DOLL), a 1.5km² industrial park in Copenhagen that<br />

doubles as a living experiment in street lighting<br />

and technology applications. Private companies use<br />

space at the publicly-funded DOLL to experiment<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

26


SPECIAL FEATURE<br />

among the 12km of road and bicycle lanes. Eighty<br />

separate experiments are under way at any one time,<br />

via 156 sensors placed around the industrial park.<br />

Testing for air quality, waste removal bins that<br />

send signals to headquarters when they are full,<br />

smart parking and intelligent lighting (that reduces<br />

intensity when no cars or bicycles are around) are<br />

among the ongoing trials.<br />

Makgata thinks this kind of experimental park is<br />

something that the City of Tswhane could replicate:<br />

“We want to use that concept to resolve urban issues.”<br />

Several of Tshwane’s automotive manufacturers like<br />

BMW have already said that they are receptive to<br />

the idea.<br />

A smart city network requires three layers of infrastructure.<br />

Firstly, it needs cables and sensors and<br />

places to put them. Fortunately, cities have lots of<br />

street light poles which can carry many cables, not<br />

just cables for the individual street light. Street furniture<br />

can also be used for this purpose. Secondly,<br />

there must be data platforms and networks that can<br />

interpret the data being collected at street level. Finally,<br />

smart cities must deliver smart urban services in the<br />

form of apps (to tell drivers where parking is available<br />

as shown in the photograph on this page of a DOLL<br />

manager reading parking space data) and other valueadded<br />

services.<br />

The system does not need very high power as<br />

the individual sensors would not be communicating<br />

all day: the smart waste bin might only send a<br />

message when it is full.<br />

Makgata sees potential for multiple uses in<br />

Tshwane: “On one platform you can have solutions<br />

for safety and security (including lighting),<br />

traffic management and other aspects. In waste<br />

management, instead of sticking to our schedule<br />

which says come on Monday but the bins are<br />

empty, we rather receive the signal when the bin<br />

is full. We can rearrange the traffic flow if there is<br />

an accident.”<br />

Tshwane plans to build four multi-storied parking<br />

stations on the outskirts of the inner city linked<br />

to the bus rapid transport (BRT) system. Up-todate<br />

data on car movements will help the city<br />

allocate busses.<br />

Aarhus is Denmark’s second-biggest city and is<br />

a renewable energy hub and research centre. The<br />

city hosts the head office of wind turbine company<br />

Vestas and already uses smart technology for traffic<br />

management. “In Aarhus when people arrive in the<br />

city by car, you can always find information about<br />

where to find free parking spaces,” says Lützen.<br />

He makes the point that a lot of smart city applications<br />

are invisible. “The whole traffic system,<br />

including the traffic lights, is coordinated in a<br />

smart way so you get the best flow via sensors in<br />

the roads.”<br />

Sophie Meritet, Affiliate Professor at the Paris<br />

Institute of Political Studies, argues that the particular<br />

dynamics of African cities must be taken<br />

into account when planning smart cities. African<br />

Cities quotes Meritet on Africa’s design priorities<br />

which should be “mobility and energy efficiency<br />

for cities, and this should be done by designing<br />

low-consumption urbanism”.<br />

The South African and Danish representatives<br />

agree that the focus must be on local issues.<br />

Makgata was impressed that at the DOLL laboratory:<br />

“Whatever they do, there is a focus on how you<br />

resolve urban management issues.” Lützen stresses<br />

that the Danes don’t want to impose any solutions.<br />

Rather, he says, the key question is, “Where can we<br />

make a positive change?”<br />

At national level, the Danish and South African<br />

governments have several agreements such as the<br />

Strategic Sector Cooperation on Water and the<br />

Environment. Renewable energy is another area<br />

of cooperation.<br />

27 GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong>


SPECIAL FEATURE<br />

South African economy at a glance<br />

Insight into the performance of the South African economy is provided through these<br />

graphical representations of key statistics.<br />

ZIMBABWE<br />

NAMIBIA<br />

BOTSWANA<br />

Limpopo<br />

0.9% (7.1%)<br />

MOZAMBIQUE<br />

North West<br />

-3.6% (6.5%)<br />

<strong>Gauteng</strong><br />

2.1%<br />

(34.3%)<br />

Mpumalanga<br />

2.7%<br />

(7.5%)<br />

SWAZI-<br />

LAND<br />

Northern Cape<br />

2.8% (2.1%)<br />

Free State<br />

1.8%<br />

(5%)<br />

LESOTHO<br />

KwaZulu-<br />

Natal<br />

2.3%<br />

(16.1%)<br />

Western Cape<br />

2.0% (13.6%)<br />

Eastern Cape<br />

1.0% (7.6%)<br />

SA GDP: Percentage of growth per province (2014) and percentage<br />

contribution to national GDP (figures in brackets).<br />

SOURCE: STATS SA WWW.STATSSA.GOV.ZA<br />

PROVINCE CAPITAL PREMIER POPULATION (2015) AREA GRP BILLION RAND<br />

Eastern Cape Bhisho<br />

Phumulo<br />

Masualle<br />

6 916 200 168 966km 2 R289.9<br />

Free State Bloemfontein<br />

Elias Sekgobelo<br />

"Ace" Magashule<br />

2 817 900 129 825km 2 R<strong>18</strong>9.1<br />

<strong>Gauteng</strong> Johannesburg David Makhura 13 200 300 <strong>18</strong> 178km 2 R1 305.6<br />

KwaZulu-<br />

Natal<br />

Pietermaritzburg Willies Mchunu 10 919 100 94 361km 2 R610.1<br />

Limpopo Polokwane<br />

Stanley<br />

Mathabatha<br />

5 726 800 125 754km 2 R271.5<br />

Mpumalanga Mbombela David Mabuza 4 283 900 76 495km 2 R284.2<br />

North West Mahikeng<br />

Supra<br />

Mahumapelo<br />

3 707 000 104 882km 2 R249.5<br />

Northern Cape Kimberley Sylvia Lucas 1 <strong>18</strong>5 600 372 889km 2 R79.9<br />

Western Cape Cape Town Helen Zille 6 200 100 129 462km ² R5<strong>18</strong>.1<br />

Snapshot of South Africa’s provinces<br />

SOURCE: INSTITUTE OF RACE RELATION’S SOUTH AFRICA SURVEY 2016 AS REPORTED ON BUSINESSTECH.CO.ZA<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

28


ADVERTORIAL<br />

Meet the Nedbank leadership<br />

team in <strong>Gauteng</strong><br />

In line with our new brand proposition, our leadership team and staff<br />

are made up of money experts whose goal is to help clients ‘see money<br />

differently’ and enable them to reach their goals.<br />

Dave Schwegmann<br />

Divisional Executive:<br />

Retail and <strong>Business</strong> Banking<br />

<strong>Gauteng</strong> North<br />

Brigitte Ryder Provincial<br />

General Manager<br />

<strong>Gauteng</strong> East<br />

Nozizwe Tshabuse<br />

Provincial General Manager<br />

<strong>Gauteng</strong> Central<br />

Linda Mbambo<br />

Provincial General Manager<br />

Tshwane & North West<br />

Mohammed (Salim) Kadoo<br />

Provincial General Manager<br />

At Nedbank we believe that money has the infinite<br />

capacity for good, if you understand the true<br />

nature of it.<br />

We know that money well managed can make a real<br />

difference in people’s lives.<br />

And we always take it seriously. For us, being ‘good<br />

with money’ means looking at it differently.<br />

Finding new and better ways to grow it, invest it,<br />

leverage it and manage it for the greater benefit of<br />

individuals, businesses and communities. We believe<br />

our real reason for being should be using our money<br />

expertise to do good, by inspiring you to make better<br />

choices with your money.<br />

We believe that when we apply our expertise and,<br />

more importantly, use it to help you see the effect your<br />

money can have, you will experience the difference<br />

between money being money and money making<br />

a difference.


ADVERTORIAL<br />

Making it easier to do business with<br />

Nedbank Whole-view <strong>Business</strong> Banking<br />

Brigitte Ryder, Nedbank Provincial General Manager of Retail and<br />

<strong>Business</strong> Banking, <strong>Gauteng</strong> North, says her team is ready to assist clients<br />

with a comprehensive range of financial products and services.<br />

Nedbank’s goal is to have all service offerings and<br />

departments under one roof, making it easier to<br />

deliver on its new brand proposition to ‘see money<br />

differently’. Nedbank recognises that you have a full<br />

range of banking needs that go beyond transacting<br />

and borrowing. That is why its dedicated team of<br />

specialists partner with you to give you a bird’s-eye<br />

view of your business and a different perspective on<br />

how your money needs to flow to meet your goals.<br />

Our expertise will help clients navigate<br />

challenges and meet their goals<br />

Brigitte Ryder prides herself on building<br />

relationships and understanding the needs<br />

of clients, saying that partnership- and<br />

relationship-based banking is a key driver<br />

of how Nedbank conducts its business<br />

to ensure clients benefit from its money<br />

expertise.<br />

‘We believe you need a financial partner who has a<br />

deeper understanding of your business – someone<br />

who offers innovative, relevant solutions and who<br />

gives you a banking experience that is hassle-free. As<br />

money experts, we are committed to doing good, so<br />

you can concentrate on what’s most important to you<br />

– running your business,’ says Ryder.<br />

We look forward to continuing our relationships with<br />

our valued existing clients, and to offering our value<br />

proposition to new clients as well. At the core of our<br />

offering in <strong>Gauteng</strong> North is a relationship-based<br />

model with a business manager dedicated to your<br />

business as your key point of entry to the bank. We<br />

encourage you to see money differently with Wholeview<br />

<strong>Business</strong> Banking from Nedbank, and to take<br />

advantage of our one-stop banking service.<br />

To take your business to the next level or to obtain more<br />

information about Nedbank’s specialised service offering<br />

call Brigitte Ryder on +27 (0)11 294 7520, send an<br />

email to brigitter@nedbank.co.za or visit<br />

www.nedbank.co.za.


ADVERTORIAL<br />

Our money experts are available to provide<br />

professional advice<br />

Nozizwe Tshabuse, Nedbank Provincial General Manager, <strong>Gauteng</strong><br />

East, explains how Nedbank can help business owners in the region.<br />

<strong>Business</strong> Banking are ready to assist you with<br />

professional advice, industry-specific solutions and a<br />

comprehensive range of financial products<br />

and services.<br />

At the core of Nedbank’s offering in the province is a<br />

relationship-based model with a business manager<br />

dedicated to your business as the key point of entry<br />

into the bank.<br />

There is good news for <strong>Gauteng</strong> business<br />

owners and entrepreneurs seeking a<br />

unique banking experience: Nedbank<br />

<strong>Business</strong> Banking has business managers<br />

located across the province specialising<br />

in commercial industries as well as the<br />

agricultural sector. Nedbank also offers<br />

innovative and relevant solutions to<br />

franchisees, incorporating customised<br />

lending solutions, transactional banking<br />

solutions and value-added services.<br />

Our tailored solutions take franchisees’ current<br />

and future goals into consideration, and aim to<br />

assist franchises in attaining the competitive edge<br />

needed to succeed. A dedicated business manager<br />

gives franchise owners the opportunity to have<br />

an experienced financial expert as a partner in<br />

your business. Our money experts at Nedbank<br />

‘We encourage you to see money differently with<br />

Whole-view <strong>Business</strong> Banking,’ explains Tshabuse.<br />

What does this mean for the client? It is an additional<br />

benefit of banking with Nedbank <strong>Business</strong> Banking<br />

and means that your business and your personal<br />

financial needs are managed in one place. ‘Because<br />

business owners and their businesses are very often<br />

financially dependent on each other, our client<br />

service teams now also offer individual banking<br />

solutions to you and your staff because we already<br />

know and understand your needs,’ says Tshabuse.<br />

With this in mind, Nedbank has seamless offerings for<br />

you, your employees and your household. Through<br />

Nedbank’s workplace banking offering, communities,<br />

including individual and business clients, are provided<br />

with access to products and services through a<br />

dedicated banker.<br />

Should you be interested in taking your business to the<br />

next level and improving staff engagement, please call<br />

Nozizwe Tshabuse on +27 (0)11 458 4405, send an<br />

email to nozizwet@nedbank.co.za or visit<br />

www.nedbank.co.za.


ADVERTORIAL<br />

Expertise in small business aimed at<br />

stimulating growth<br />

Linda Mbambo, Nedbank Provincial General Manager, <strong>Gauteng</strong> Central,<br />

explains how Nedbank is committed to partnering with businesses<br />

for growth.<br />

which provides key insights and trends on smallbusiness<br />

behaviour and the challenges that small<br />

businesses face; and the new Essential Guide for<br />

Small-business Owners, which helps small businesses<br />

understand and handle the complexities of starting<br />

and running a business. In addition, business<br />

registration services are available in branch through<br />

SwiftReg or by applying online through CIPC.<br />

‘Small businesses are the lifeblood of our<br />

economy. Nedbank has, over the years,<br />

instituted various interventions aimed at<br />

giving support to the small-business sector.<br />

Over and above our small-business services<br />

solutions, we provide small-business<br />

owners with support that goes beyond<br />

banking, freeing up their time to focus on<br />

running their businesses,’ says Mbambo.<br />

Nedbank has built a solid reputation as a bank for<br />

small businesses through initiatives such as Vote<br />

Small <strong>Business</strong>, which calls on everyone to make a<br />

conscious decision to support small businesses with<br />

their hearts, feet and wallets; the SimplyBiz.co.za<br />

platform where business owners can network and<br />

engage with other business owners, ask questions<br />

and spark discussions; the Small <strong>Business</strong> Index<br />

At Nedbank <strong>Business</strong> Banking we believe that you<br />

need a financial partner who understands your<br />

aspirations, offers relevant solutions and gives you<br />

a banking experience that is hassle-free. We are<br />

committed to doing good, so you can concentrate<br />

on what’s most important to you – running<br />

your business.<br />

Nedbank is making it easier to deliver on our new<br />

brand proposition – ‘see money differently’ – through<br />

our Whole-view <strong>Business</strong> Banking which provides us<br />

with a bird’s-eye view of your business and therefore<br />

enables us to offer solutions and services aimed<br />

at giving your business the edge in challenging<br />

economic times.<br />

Speak to the money experts at Nedbank <strong>Business</strong> Banking<br />

if you are interested in taking your business to the next<br />

level or want to find out more about our specialised<br />

service offering. Contact Linda Mbambo on<br />

+27 (0)11 671 7149, email the <strong>Business</strong> Banking team<br />

at business@nedbank.co.za or visit<br />

www.nedbank.co.za.


ADVERTORIAL<br />

New brand proposition encourages clients to<br />

‘see money differently’<br />

Mohammed (Salim) Kadoo, Nedbank Provincial General Manager,<br />

Tshwane and North West, explains how the new brand values build<br />

on the expertise of the bank to benefit clients.<br />

advertising and communication campaigns, as well<br />

as its products, services and channels. All these<br />

changes are designed to inspire clients and society to<br />

see money differently and partner with the bank to<br />

achieve their goals.<br />

Our new brand proposition is not just a marketing<br />

initiative, but a reflection of the continuing business<br />

evolution at Nedbank. As a bank we want to ensure<br />

that our clients experience our brand in a way that is<br />

aligned with our brand promise.<br />

Nedbank officially launched its new brand<br />

repositioning during the first day of the<br />

world’s largest design festival – the <strong>2017</strong><br />

Design Indaba on 1 March. The bank’s new<br />

tagline challenges clients and society to<br />

‘see money differently’.<br />

The new brand positioning is built on Nedbank’s<br />

purpose: to use financial expertise to enable<br />

individuals, families, businesses and society to do<br />

good. Our new brand proposition was born after<br />

almost two years of research and client engagement<br />

which revealed that people want to work with<br />

purpose-driven institutions they can trust. They<br />

want a professional financial partner that balances<br />

expertise with a genuine commitment to do good.<br />

The public will see a number of changes in the next<br />

few months as the bank evolves its corporate identity,<br />

It is common knowledge that we live in a volatile<br />

socioeconomic environment, so it is even more<br />

important for us to intensify our commitment to<br />

improve on our skill in enabling clients to navigate<br />

challenges and meet their goals.<br />

One of the solutions from Nedbank is Whole-view<br />

<strong>Business</strong> Banking, which provides a bird’s-eye view<br />

of clients’ businesses, and a different perspective on<br />

how their money needs to flow to meet their needs.<br />

With our expertise and insights we can help our<br />

clients to see money as we do, so that together we<br />

can cocreate unique solutions that can unlock the<br />

possibilities that will take their business to the<br />

next level.<br />

If you would like to explore further how <strong>Business</strong> Banking<br />

can help take your business to the next level, and for more<br />

information about Nedbank Retail and <strong>Business</strong> Banking<br />

Services, call Mohammed (Salim) Kadoo on<br />

+27 (0)12 436 7740 or send an email to<br />

mohammedk@nedbank.co.za.


ADVERTORIAL<br />

Trust us to protect your business against<br />

everyday risk<br />

Stella Tedeschi, Regional Manager of Broker Channels, <strong>Gauteng</strong>, explains<br />

why Nedbank Insurance is not a one-size-fits-all business.<br />

informed decisions – making sure that they have<br />

the appropriate cover and that the business or<br />

individual is not under- or over-insured. Advisors are<br />

equipped with a wealth of invaluable sector-specific<br />

experience and knowledge ensuring that cover is<br />

adequate for clients’ exposure to risk. Furthermore,<br />

insurance mitigates loss, secures financial stability,<br />

and promotes trade and commerce activities that<br />

play a role in economic growth and development.<br />

Therefore, insurance plays a crucial role in the<br />

sustainable growth of an economy.<br />

Nedbank Insurance has evolved into a<br />

business that provides integrated insurance<br />

to Nedbank’s individual and business<br />

clients. Our purpose is to provide certainty<br />

to our clients at a time when it matters most<br />

to them and ensure that we can be relied<br />

on to support them during challenging<br />

times in their business or personal lives. Our<br />

offering comprises comprehensive shortterm<br />

insurance solutions, life insurance<br />

solutions and investments.<br />

In recent times, it has become evident that the<br />

benefits of having a reputable insurance partner<br />

outweighs the disadvantages of not having<br />

appropriate cover. Our team of experts provides<br />

valuable advice that enables clients to make<br />

Nedbank Insurance provides a comprehensive<br />

offering of short-term products with blue-chip<br />

insurers. Our broad offering includes professional<br />

analysis and advice; appropriate product design<br />

and implementation, for example BizzInsure,<br />

our white-label product; ongoing portfolio<br />

management together with claims management<br />

and administration; and specialised cover, including<br />

goods in transit, public liability, personal accident and<br />

various motor insurance options.<br />

Should you be interested in expert advice for the type<br />

of business cover that is exactly right for your business<br />

needs, look no further. Nedbank has a team of specialists<br />

ready to provide you with information necessary to allow<br />

you to make an informed decision. For more information<br />

call Stella Tedeschi on +27 (0)12 436 7659, send an<br />

email to stellat@nedbankinsurance.co.za or visit<br />

www.nedbank.co.za.


ADVERTORIAL<br />

Nedbank <strong>Business</strong> Bundle is a game changer with<br />

savings and personalised services for<br />

small enterprises<br />

The new <strong>Business</strong> Bundle from Nedbank is a game changer for small<br />

enterprises, offering the best value for money when set against rivals,<br />

with exclusive benefits and personalised services for entrepreneurs.<br />

business Owners, available at www.nedbank.co.za.<br />

Through initiatives such as training and enterprise<br />

development, Nedbank invests heavily in small<br />

business, growing the economy and creating jobs.<br />

With the country’s challenging economic<br />

environment, the <strong>Business</strong> Bundle not only<br />

offers you personalised banking services,<br />

but also critical tools to save – with up to<br />

40% savings on monthly banking fees,<br />

contributing directly to the bottom line at a<br />

time when every cent counts.<br />

In line with Nedbank’s new brand proposition to<br />

‘see money differently’, the <strong>Business</strong> Bundle resonates<br />

with the bank’s commitment to using expertise for<br />

good in promoting small enterprises.<br />

To ensure that business owners are better equipped in<br />

understanding and handling the complexities of starting<br />

and running a business, Nedbank provides practical tips<br />

for entrepreneurs through the Essential Guide for Small-<br />

‘Our efforts in the small-business sector are<br />

underpinned by our Banking and Beyond philosophy<br />

that provides non-financial support such as Vote<br />

Small <strong>Business</strong>, which encourages consumers to keep<br />

small businesses in their communities top of mind<br />

when making their purchases. Banking and Beyond<br />

also includes other flagship initiatives, such as the<br />

small-business-driven SimplyBiz website<br />

(www.simplybiz.co.za), the Essential Guide for Smallbusiness<br />

Owners, CIPC registration and the Money<br />

Manager Accounting Tool,’ says Alan Shannon, head<br />

of Relationship Banking Sales.<br />

Shannon advises entrepreneurs to make a concerted<br />

effort to develop their financial acumen by making<br />

use of resources such as Nedbank’s Essential Guide<br />

for Small-business Owners and the SimplyBiz<br />

online portal.<br />

The <strong>Business</strong> Bundle is another way Nedbank ensures<br />

that clients ‘see money differently’ and use money as<br />

a tool to take their businesses to the next level.<br />

Call 0860 116 400, send an email to<br />

smallbusinessservices@nedbank.co.za or visit<br />

www.nedbank.co.za/business.<br />

Nedbank Ltd Reg No 1951/000009/06. Nedbank Ltd Reg Authorised No 1951/000009/06 financial<br />

Authorised financial services services and registered and registered credit credit provider provider (NCRCP16).


OLD MUTUAL ENABLING<br />

POSITIVE FUTURES<br />

IN GAUTENG<br />

Old Mutual South Africa (OMSA) is a significant participant in the South African economy and committed to enabling<br />

positive futures for all our stakeholders, especially our customers. We offer a range of financial services that span<br />

investment, life assurance, asset management, banking, healthcare and general insurance.<br />

To ensure that we have our fingers on the pulse of each of our nine provinces, Old Mutual has established leadership<br />

boards in each province to serve as links between the province and the business. These Provincial Management<br />

Boards, or PMBs, are your primary point of contact with us. Together we can ensure that Old Mutual makes a<br />

positive impact on the future of this province and its people.<br />

MEET ROSIE WILSON<br />

Chairperson of the <strong>Gauteng</strong> Provincial Management Board<br />

“<br />

I am so proud to represent my province and bring the<br />

business, communities and opportunities together so that<br />

we can share a great positive future.<br />

”<br />

As the <strong>Gauteng</strong> chairperson I undertake to:<br />

• Really know my province – the growth areas, investment and partnership opportunities and needs of<br />

my customers.<br />

• Make sure we as Old Mutual are operating responsibly as good corporate citizens and working<br />

together effectively with you, our regional stakeholders.<br />

• Help you make the right connections with our business to enable you to do great things.<br />

For more information, contact Rosie Wilson at GAUTENGPMB@oldmutual.com<br />

ombds 4.17.10479.02<br />

INVESTMENTS I SAVINGS I PROTECTION<br />

Old Mutual is a Licensed Financial Services Provider


OUR BEST ADVICE TO YOU IS:<br />

ADVICE MATTERS<br />

As custodians of the savings and<br />

investments of millions of South<br />

Africans, we know that ADVICE<br />

MATTERS when making financial<br />

decisions.<br />

How to choose the right financial adviser<br />

A good financial adviser is a professional who<br />

considers all your financial needs and goals, and has<br />

the knowledge, experience and support to give you<br />

Advice That Matters.<br />

1. Ask to see the adviser’s training credentials and FAIS<br />

accreditation.<br />

2. Choose a financial adviser who represents a<br />

respected financial institution.<br />

3. Look for a financial adviser who has access to a<br />

range of specialist support services.<br />

NEED HELP WITH RETIREMENT AND RISK<br />

COVER OPTIONS FOR YOUR EMPLOYEES?<br />

Old Mutual Corporate provides<br />

industry-leading retirement fund<br />

solutions, pre and post retirement<br />

investments, group death, disability,<br />

critical illness and funeral cover<br />

as well as financial education and<br />

consulting services to a broad range<br />

of public and private businesses and<br />

institutions, from small businesses to<br />

large corporates.<br />

This can also be accessed via<br />

Old Mutual SuperFund, which provides a comprehensive<br />

employee benefit solution that is flexible enough to meet<br />

the needs of all types of businesses and their employees.<br />

NEED A ONE-STOP-SHOP INTEGRATED<br />

FINANCIAL SERVICE?<br />

The Old Mutual Mass Foundation Cluster (MFC) has an<br />

integrated approach to financial services and offers<br />

customers solutions to meet their needs. This spans a<br />

transactional account called the Old Mutual Money<br />

Account, savings products, life and disability cover, as<br />

well as funeral cover, debt management solutions and<br />

short-term insurance. Our aim is to<br />

help our customers manage their<br />

finances and to plan and provide<br />

a better future for themselves and<br />

their loved ones.<br />

NEED DIRECT CAR & HOME INSURANCE?<br />

Old Mutual iWYZE offers affordable and reliable<br />

insurance cover to protect everything you’ve worked<br />

for. The wide range includes car insurance, home<br />

insurance as well as value-added products<br />

such as iWYZE Scratch<br />

& Dent and iWYZE<br />

Tyre & Rim Cover.<br />

iWYZE, the wise<br />

insurance choice.<br />

NEED FUNERAL COVER?<br />

With Old Mutual’s range of<br />

Funeral Plans (Care, Standard and<br />

Comprehensive+) customers can cover<br />

themselves, their spouse/partner,<br />

children, parents, parents-in-law and<br />

extended family members. We also<br />

have a plan for single parents to<br />

cover themselves and their dependent<br />

children without having to pay for a spouse they do not<br />

have.<br />

You can choose the amount of cover you need, who<br />

you’d like to cover and whether you’d like to add<br />

additional benefits. You can get funeral cover for up to<br />

R70 000.<br />

NEED HELP WITH SAVING FOR BOTH<br />

LONG AND SHORT TERM?<br />

To make it easy for customers to<br />

save from as little as R170 a month,<br />

Old Mutual offers the innovative<br />

2-IN-ONE SAVINGS PLANS.<br />

This product with its two pockets,<br />

allows customers to save for their long-term goals,<br />

like their children’s tertiary education, while they have<br />

access to their funds in emergencies.


NEED HELP WITH HOLISTIC FINANCIAL<br />

PLANNING AND SAVING?<br />

Old Mutual Personal Finance specialises in providing<br />

holistic financial planning - Advice That Matters. We<br />

offer a wide range of wealth creation and protection<br />

products. For example:<br />

OM Invest Tax-Free Savings Plan, which offers you<br />

tax-free growth without any restrictions on accessing<br />

your investment with a current annual allowance of<br />

R33 000. It’s flexible so you can choose how you<br />

want to invest – with lump sum payments or a minimum<br />

monthly investment of R350.<br />

And if you save between R30 000 and R33 000 at<br />

Old Mutual, you get up to half of your admin fees back<br />

depending on your underlying fund choice.<br />

NEED LIFE AND DISABILITY COVER?<br />

Old Mutual Personal Finance marketleading<br />

risk protection range offers<br />

solutions in respect of death, disability<br />

and the most comprehensive illness<br />

range with clear claim definitions,<br />

including GREENLIGHT.<br />

NEED TO PROTECT YOUR BUSINESS?<br />

Mutual & Federal are experts in<br />

agriculture, engineering and marine<br />

insurance. We offer a range of insurance<br />

solutions to protect your business against<br />

everything from fire and theft to business<br />

interruption and legal liability costs.<br />

NEED DEBT CONSOLIDATION AND<br />

TRANSACTIONAL BANKING?<br />

Through Old Mutual Finance you can gain access to:<br />

• My Money Plan, which enables<br />

you to consolidate your debt, and<br />

choose from a range of personal<br />

loans at a fixed interest rate.<br />

• Money Account, which links a transactional (SWIPE)<br />

account and an investment (SAVE) account so you<br />

automatically invest a set amount into a unit trust<br />

every time you make a purchase with your card.<br />

*(In association with Bidvest Bank Ltd)<br />

NEED HELP WITH INVESTING?<br />

Old Mutual Wealth is a fully integrated,<br />

advice-led wealth management<br />

business. We have a personalised<br />

and integrated approach to grow and<br />

preserve your wealth over time. Our<br />

specialist capabilities include Private Client Securities,<br />

Old Mutual Multi-Managers, Fiduciary Services and<br />

Offshore Investing.<br />

We partner with leading financial planners to provide<br />

you with a tailored lifetime wealth plan to help you<br />

achieve the best outcome in line with your objectives,<br />

goals and aspirations.<br />

NEED A FINANCIAL PARTNER THAT<br />

MAKES A POSITIVE IMPACT ON SOCIETY?<br />

Old Mutual is deeply committed to playing a significant<br />

role in building a strong and financially inclusive South<br />

Africa.<br />

As a responsible business committed to caring for our<br />

communities, the Old Mutual Foundation addresses<br />

socio-economic challenges through investing in:<br />

• Small business development and<br />

entrepreneurship<br />

• Youth unemployment through skills<br />

training<br />

• Strategic education initiatives<br />

• Caring for vulnerable communities<br />

In 2016 alone the Old Mutual Foundation invested<br />

R25 686 172 in various community projects across our<br />

nation (actual grant funding payments made during<br />

2016).<br />

In <strong>Gauteng</strong> the Old Mutual Foundation invested<br />

a total of R5 499 910 across its various community<br />

empowering portfolios in the region.<br />

Our staff are the hearts and hands of Old Mutual in the<br />

communities we operate in, and we support our staff<br />

volunteers through various programmes.<br />

In <strong>Gauteng</strong>, 77 organisations have received a total of<br />

R1 358 384 as a result of staff volunteering efforts.<br />

INVESTMENTS I SAVINGS I PROTECTION<br />

ombds 4.17.10479.02<br />

Old Mutual is a Licensed Financial Services Provider


OLD MUTUAL FOUNDATION CASE STUDIES IN<br />

GAUTENG<br />

Sparrow FET College is a Melville-based provider of skills training<br />

coupled with life skills and job readiness training. In 2015, the<br />

Foundation funded R500 000 to the organisation to provide<br />

accredited training to 20 youth in Fluid Hose Reeling, a scarce<br />

skill on many mines.<br />

The Maharishi Institute: R1 975 000 was funded by the Old Mutual Foundation for the purposes of expanding<br />

the for-profit call centre operation Invincible Outsourcing, which provides business processing services to large<br />

corporates. The 250-seat call centre is part of a self-funding sustainability strategy by the Maharishi Institute to<br />

generate income, which in turn allows underprivileged students free access to tertiary education. The students<br />

are also required to work in the call centre during their four-year BBA degree as part of their commitment to<br />

‘earning their education’, providing them with invaluable workplace and job readiness experience.<br />

The MASISIZANE FUND focuses on enterprise<br />

development and job creation to help alleviate poverty<br />

and improve food security in South Africa. This is<br />

achieved through encouraging entrepreneurship and<br />

capacity development and financing of micro, small<br />

and medium enterprises (SMMEs). Preference is given<br />

to SMMEs with 51% plus ownership by women, youth<br />

or people with disabilities.<br />

The Masisizane Fund disbursed R147m worth of funds<br />

in 2016 through soft loans in the three high-impact<br />

sectors and facilitated the creation of 862 jobs against<br />

a target of 625 jobs.<br />

In <strong>Gauteng</strong>, R21.1 million was disbursed, providing<br />

12 clients with soft loan financing, and facilitating<br />

173 jobs.<br />

MASISIZANE CASE STUDY IN GAUTENG<br />

CTU is a 100% black woman owned business that<br />

specializes in manufacturing hospital clothing,<br />

linen and medical accessories for <strong>Gauteng</strong> health<br />

institutions. The initial loan was used to acquire raw<br />

material to fulfil orders from the Department of Health<br />

<strong>Gauteng</strong> (DOHGP). A further revolving funding<br />

facility was given in 2014 to assist CTU to execute a<br />

12-month contract to supply linen to all <strong>Gauteng</strong> health<br />

institutions, which has been renewed for a further<br />

12 months. CTU currently employs 80 staff members of<br />

which 27 are permanently employed.<br />

WANT TO HELP BUILD THE PLATFORM<br />

FOR FINANCIAL INCLUSION?<br />

Financial education is the gateway to financial<br />

inclusion.<br />

The Old Mutual Financial Wellbeing programmes<br />

promote financial literacy and awareness across market<br />

segments in line with the Financial Sector Charter. We<br />

offer highly effective financial education and support<br />

programmes to help South Africans take control of their<br />

finances.<br />

Between 2007 and the end of 2016 more than 589 808<br />

people were reached through face-to-face workshops<br />

held for communities as well as employees in the public<br />

and private sector.<br />

In 2016 more than 88 000 individuals participated in<br />

our On the Money workshops nationally, with 24 674<br />

participating in our Fin360 programmes.<br />

In <strong>Gauteng</strong> 16 870 individuals were trained in our<br />

Old Mutual On the Money programme with 11 433<br />

having been trained in our Fin360 financial education<br />

programmes.<br />

For more information, contact Rosie<br />

Wilson at GAUTENGPMB@oldmutual.com


INTERVIEW<br />

Member-oriented<br />

scheme strengthened<br />

by high reserves<br />

Christo Becker, Principal Officer of Selfmed, shares some<br />

insights on the medical insurance industry.<br />

Christo Becker<br />

BIOGRAPHY<br />

After completing his studies in<br />

1996, Christo worked as a paramedic<br />

in Cape Town and Port<br />

Elizabeth (where he was seconded<br />

to run the Eastern Cape<br />

operation for Netcare911). He<br />

furthered his career in healthcare<br />

when he was appointed as<br />

hospital manager for a hospital<br />

in the Netcare Group. Christo<br />

went on to manage a number<br />

of other hospitals before joining<br />

Selfmed Medical Scheme as the<br />

Principal Officer in 2014.<br />

Please provide an overview of Selfmed, including the<br />

history and size of the organisation.<br />

Selfmed Medical Scheme was established more than 50 years ago and<br />

it is one of the older schemes in South Africa.<br />

Providing coverage for about 8 000 principal members and 13 500<br />

beneficiaries, we are one of the smaller schemes and we focus on providing<br />

individual attention to our members. Our size allows us to do this.<br />

Could you outline the different options?<br />

Members are able to choose one of five medical aid options:<br />

SelfNET – this entry-level product is our most affordable as it covers<br />

a narrow band of benefits.<br />

MedXX1 – a hospital plan that extends beyond the prescribed minimum<br />

benefits and pays out at 100% of scheme rates for covered<br />

in-hospital treatment and in-hospital doctor’s consultations.<br />

Selfsure – an option that provides in-hospital and out-of-hospital<br />

benefits and is a great choice for a family with young children.<br />

Med Elite – a broader hospital plan that covers additional conditions<br />

including greater coverage for oncology expenses, hip, knee and<br />

back operations.<br />

Selfmed 80% – 80% of bills relating to a wide range of conditions<br />

are covered.<br />

What is the solvency ratio of Selfmed and how does this<br />

compare to other medical aid schemes?<br />

Selfmed has a solvency ratio of 100.37%, which is way more than the<br />

25% mandatory requirement. We are one of the top schemes in the<br />

country in terms of our reserves.<br />

What differentiates your offerings from those of your<br />

competitors?<br />

Selfmed has a very strong member focus. As someone who has<br />

previously worked as a paramedic and a hospital manager, I’m<br />

passionate about healthcare. All of us share the passion and want<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

40


INTERVIEW<br />

to ensure our Selfmed members<br />

receive good healthcare.<br />

We are able to attend to requests<br />

for ex-gratia payments<br />

on a case-by-case basis and our<br />

members appreciate knowing<br />

that their health conditions are<br />

not compared to other people’s,<br />

but are evaluated individually.<br />

Furthermore, because our<br />

cash reserves are so high and<br />

our systems (administration, call<br />

centre and marketing, etc) are<br />

managed internally, members<br />

feel confident about the level of<br />

service we can provide.<br />

What is your view of the<br />

National Health Insurance<br />

(NHI) scheme and how do<br />

you think it will impact private<br />

healthcare in South<br />

Africa?<br />

We all support the idea that<br />

healthcare should be accessible<br />

to all, however, a number of issues<br />

weren’t addressed in the White<br />

Paper. These include what the basket of care will<br />

look like and who will provide the care.<br />

This is the first phase of a 14-year implementation<br />

period and it is likely that the parameters of the NHI<br />

will change during its implementation.<br />

A specific risk for private healthcare providers<br />

relates to the introduction of a one-payer system.<br />

I don’t think people are going to be happy to take<br />

the money they usually pay into a medical aid and<br />

pay it into a centralised state-run system.<br />

Given that the UK, with its lower unemployment<br />

rate and higher number of taxpayers and health<br />

professionals, struggles to deliver the desired level of<br />

care via its National Health Service, it is unlikely that<br />

that South Africa will have the reserves to roll out a<br />

system that will rival private healthcare.<br />

How does the South African healthcare<br />

system compare internationally?<br />

I believe that the private healthcare system in South<br />

Africa – private medical care and medical insurance –<br />

is equal to the best in the world. Many of our doctors<br />

and medical professionals go overseas for training or<br />

to attend medical conferences and we have some of<br />

the most advanced medical equipment in the world<br />

in our private hospitals. Furthermore, in countries like<br />

the USA, medical care is far more expensive than it<br />

generally is in South Africa.<br />

Ideally, representatives of the entire healthcare<br />

industry here should get together to discuss challenges<br />

and collaborate on viable ways to solve<br />

these so that quality healthcare can be made<br />

accessible to more people.<br />

Increased legislation, particularly legislation<br />

relating to prescribed minimum benefits, has<br />

meant that medical schemes are under increased<br />

pressure though.<br />

www.selfmed.co.za<br />

41 GAUTENG BUSINESS 2016


KEY SECTORS<br />

Overviews of the main economic<br />

sectors of <strong>Gauteng</strong>.<br />

Agriculture 44<br />

Mining 46<br />

Manufacturing 48<br />

Automotive and components 50<br />

Food and beverages 51<br />

Tourism 52<br />

<strong>Business</strong> services 58<br />

Education and training 60<br />

ICT 62<br />

Banking and financial services 63<br />

Development finance and<br />

SMME support 68


OVERVIEW<br />

Agriculture<br />

Good rains bring good news for <strong>Gauteng</strong> farmers.<br />

The Fresh Produce Market in Johannesburg is South Africa’s biggest<br />

market. The region’s other two metropolitan areas, Tshwane<br />

and Ekurhuleni, also have large markets to cater for the region’s<br />

large population. The Springs Fresh Produce Market accounts<br />

for 3% of South African market share which it intends increasing as it<br />

expands its facilities.<br />

<strong>Gauteng</strong> has a small landmass but in the agricultural sector, as in<br />

many other sectors, it punches above its weight. The province is home<br />

to some of South Africa’s largest agricultural companies, including<br />

AFGRI, a listed agriculture services and foods company, which specialises<br />

in animal feed production. Africa’s largest feedlot for cattle is<br />

located in Heidelberg: Karan Beef’s facility can accommodate 120 000<br />

cattle. The feedmill processes 1 400 tons per day and the associated<br />

abattoir in Balfour in neighbouring Mpumalanga sometimes deals with<br />

1 800 head of cattle per day. The 2 330ha Karan estate also includes a<br />

game farm and an eco-development.<br />

The Kanhym Agrimill in Vereeniging is one of three in the company’s<br />

portfolio, which collectively processes 250 000 tons of animal<br />

feed annually. Kanhym Estates is the largest producer of pigs in the<br />

country and the company’s Middelburg farm in Mpumalanga is geared<br />

to supply the <strong>Gauteng</strong> market.<br />

<strong>Gauteng</strong>’s agricultural sector is largely concentrated on producing<br />

vegetables for the huge cities that dominate the region. There is<br />

commercial farming in the southern sector of the province (part of<br />

South Africa’s maize triangle) and the farming of cotton, groundnuts<br />

and sorghum is undertaken in areas near Bronkhorstspruit (east) and<br />

Heidelberg (in the south).<br />

Fruit, dairy products, eggs, maize and grain are also produced in<br />

large volumes within the province.<br />

As the most populous region of South Africa, <strong>Gauteng</strong> consumes<br />

huge quantities of food. And South Africans eat more chickens than<br />

anything else. Poultry farm and production facilities abound in<br />

<strong>Gauteng</strong>. Astral Foods, RCL Foods and Daybreak Farms are among<br />

the biggest companies in the province.<br />

The poultry industry in South Africa has been in the spotlight<br />

with a change in the arrangements relating to import duties from<br />

the US. Cheaper imports from other areas such as the EU and Brazil<br />

SECTOR INSIGHT<br />

Woolworths and Massmart<br />

have small-grower support<br />

programmes<br />

• Maize crops are expected<br />

to top 15-million tons.<br />

were already putting pressure<br />

on local producers, but the decision<br />

in 2016 to allow a potential<br />

65 000 tons from the US into South<br />

Africa has led to several thousand<br />

workers being laid off.<br />

Good rains in the interior have<br />

decisively ended the drought in<br />

areas such as <strong>Gauteng</strong>. Farmers<br />

are expecting a bumper maize<br />

crop in <strong>2017</strong> of about 15-million<br />

tons, which will be enough to<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

44


OVERVIEW<br />

create a surplus to export. This<br />

is the biggest crop in more than<br />

25 years.<br />

Many agriculture-focused<br />

research institutions are based<br />

in the province. The Agricultural<br />

Research Council’s (ARC) national<br />

research facilities are in Pretoria,<br />

and include the Roodeplaat<br />

Vegetable and Ornamental Plant<br />

Institute and the Onderstepoort<br />

Veterinary Institute. In addition,<br />

the Forestry and Agricultural<br />

Biotechnology Institute (FABI)<br />

is located at the University<br />

of Pretoria.<br />

Provincial plans<br />

At the West Rand Economic<br />

Summit held in early <strong>2017</strong>, plans<br />

to prioritise agriculture and agriprocessing<br />

(amongst other sectors)<br />

in the West Rand were laid<br />

out. These include:<br />

• establishment of the<br />

Westonaria hydroponic Agripark<br />

(including the latest<br />

technology)<br />

• Merafong Flora Agri-park is<br />

completed (products include<br />

tomato, cucumber and green<br />

pepper)<br />

• investment in Isigayo Milling<br />

Plant in Randfontein.<br />

A broader province-wide<br />

agro-processing summit was<br />

held earlier, bringing together<br />

small-holder and commercial<br />

farmers, food retail companies,<br />

finance institutions and researchers.<br />

The summit was organised<br />

by the <strong>Gauteng</strong> Department<br />

of Economic Development,<br />

Environment, Agriculture and<br />

Rural Development.<br />

The provincial government is supporting 178 small-holder farmers<br />

through farmer support and development initiatives. An information<br />

technology programme is to be implemented in <strong>2017</strong>/<strong>18</strong>. This will<br />

focus on crop and livestock monitoring and is intended to increase<br />

productivity.<br />

The <strong>Gauteng</strong> City Region will roll out the deployment of information<br />

technology in the farming community in <strong>2017</strong>/<strong>18</strong>. This will present huge<br />

opportunities for farmers to monitor their crops/livestock and increase<br />

productivity. The R50-million programme encompasses:<br />

• <strong>Gauteng</strong> Agriculture Information System<br />

• Farm <strong>Business</strong> Analysis (DNA)<br />

• <strong>Gauteng</strong> Agriculture Economy Analysis (including market<br />

monitoring)<br />

• Smart Agriculture Feasibility.<br />

Even the city centre of Johannesburg is getting in on the drive to<br />

provide food security. The Johannesburg Development Agency (JDA)<br />

is promoting roof-top garden initiatives in downtown Johannesburg.<br />

Together with the Johannesburg Housing Company (JHC) and its<br />

subsidiary, Makhulong A Matala, JDA has funded three such projects.<br />

Massmart, the retail group now owned by US giant Walmart, invested<br />

R15-million in the five years to <strong>2017</strong> to create opportunities<br />

in its food chain for emerging farmers. Techno-Serve, a non-governmental<br />

organisation, oversees the programme. The Massmart Supplier<br />

Development Fund has enabled small farmers to have the security of<br />

a confirmed buyer for their products and many of them have grown<br />

their businesses substantially.<br />

Woolworths’ Enterprise and Supplier Development Programme<br />

gave Sophiatown-born Jimmy Botha the chance to become a successful<br />

farmer of baby spinach, rocket and basil. With advice from a supportive<br />

neighbour farmer (who was already supplying to Woolworths),<br />

Botha grew his farming business to the point where he now has<br />

42 full-time employees and 30 seasonal workers.<br />

CONTACT INFO<br />

Agricultural Economics Association of South Africa:<br />

www.aeasa.org.za<br />

Agricultural Research Council: www.arc.agric.za<br />

AgriSA: www.agriinfo.co.za<br />

<strong>Gauteng</strong> Department of Agriculture and Rural Development:<br />

www.gdard.gpg.gov.za<br />

Johannesburg Development Agency: www.jda.org.za<br />

National Department of Agriculture, Forestry and Fisheries:<br />

www.daff.gov.za<br />

South African Poultry Association: www.sapoultry.co.za<br />

45 GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong>


OVERVIEW<br />

Mining<br />

<strong>Gauteng</strong> is the home of mining and minerals research.<br />

SECTOR INSIGHT<br />

Petra’s expansion plans will<br />

see diamond production soar.<br />

• The Chamber of Mines is<br />

set for a major rebranding.<br />

• AngloGold is scaling back<br />

production in <strong>Gauteng</strong>.<br />

Boosting productivity<br />

The mining industry’s employer body is the Chamber of Mines. The<br />

Chamber’s address in Hollard Street, Marshalltown, Johannesburg,<br />

reflects the fact that the city of Johannesburg was founded on gold.<br />

A 400km gold reef stretching across most of <strong>Gauteng</strong> and<br />

some of the neighbouring provinces was for many years the backbone<br />

of South Africa’s mining industry. Gold production has generally<br />

been in decline for some years, with older mines such as AngloGold’s<br />

TauTau either closing unprofitable shafts or being put on care and<br />

maintenance (Kopanang). Global demand for gold has see-sawed in<br />

recent years.<br />

Cullinan, east of Pretoria, is the site of one of the greatest finds<br />

in diamond mining history. The eponymous diamond was cut into<br />

several smaller diamonds, including the 530-carat Great Star of Africa.<br />

Today, Petra Diamonds continues to mine Cullinan as one of its four<br />

South African projects.<br />

In the six months to December 2016, Petra Diamonds reported<br />

a 24% increase in production and a 48% improvement in overall<br />

revenue. At Cullinan the orebody contains a diamond resource of<br />

194 Mcts which is why Petra is expanding with a goal of annual production<br />

of 2.2 Mcts by 2019. A R1.6-billion processing plant is being built<br />

at Cullinan, with a throughput capacity of 6 Mtpa. Petra established a<br />

Women in Mining Committee in 2015. In 2016, 43% of intern positions<br />

were held by women and 58% of scholarships were taken up by girls<br />

from local schools.<br />

All miners have been trying to mine<br />

more efficiently. Mechanisation<br />

has not been a seamless success<br />

but the CEO of Anglo American<br />

told the African Mining Indaba<br />

in early <strong>2017</strong> that productivity<br />

improved by 40% since 2013.<br />

Mark Cutifani credited advanced<br />

analytics, the efficient use of data<br />

and integrated systems thinking<br />

for improved safety and reduced<br />

spending on maintenance.<br />

Anglo American was one of<br />

several South African companies<br />

to benefit from the uptick in global<br />

resource prices in <strong>2017</strong>. Shares<br />

in AngloGold doubled by the end<br />

of March <strong>2017</strong>, Sibanye’s stock<br />

improved by 124% and Harmony<br />

Gold did even better. South Deep<br />

did not do so well, but remains<br />

convinced that its mechanisation<br />

project will deliver.<br />

Because of improved prices in<br />

ferrochrome, Mogale Alloys has<br />

converted its furnaces from the<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

46


OVERVIEW<br />

production of silicomanganese<br />

to making ferrochrome. Mogale<br />

Alloys is based in Krugersdorp<br />

and owned by Afarak Mogale.<br />

West Wits Mining, an Australian<br />

junior miner, is hoping that it can<br />

mine productively in an area that<br />

has been the scene of excavations<br />

for more than a hundred years. It<br />

is calling its project the Soweto<br />

Cluster Gold Project, located between<br />

Roodepoort and Soweto.<br />

Research<br />

<strong>Gauteng</strong> is home to most of the<br />

research and training bodies associated<br />

with mining. AECI, the<br />

explosives and chemicals company<br />

which has been involved<br />

in mining in South Africa almost<br />

as long as there has been a mining<br />

industry, supports the Virtual<br />

Reality Mine Design Centre located<br />

at the University of Pretoria.<br />

Mintek is an autonomous body<br />

based in Randburg which receives<br />

about 30% of its budget from the<br />

Department of Mineral Resources.<br />

The balance comes from joint ventures<br />

with private-sector partners,<br />

or is earned in research and development<br />

income, the sale of<br />

services or products and from<br />

technology licensing agreements.<br />

An example of collaboration<br />

is Project AuTEK which has found<br />

a way of getting gold catalysts<br />

to play a role in improving fuel<br />

cell efficiency. Mintek teamed up<br />

with the Department of Science<br />

and Technology and AngloGold<br />

Ashanti.<br />

The University of the<br />

Witwatersrand School of Mining<br />

has two houses that are partfunded<br />

by mining houses and equipment suppliers including Xstrata,<br />

Lonmin, De Beers, Anglo Platinum and Sandvik.<br />

Pretoria University has a Department of Mining Engineering, the<br />

University of South Africa offers three national diplomas in minerelated<br />

fields, the University of Johannesburg has mine-surveying<br />

courses and the Vaal and Tshwane universities of technology have<br />

engineering faculties.<br />

Mine bodies<br />

In <strong>2017</strong> the Chamber of Mines announced that it would be undergoing<br />

a rebranding and examining its identity for the modern era. The<br />

Chamber’s new president, Exxaro Resources CEO Mxolisi Mgojo, will<br />

lead the chamber in identifying a new way of operating. A charter that<br />

has recently been developed, the Zambezi protocol, suggested ways<br />

of operating in Africa in a sustainable way that helps communities.<br />

Developed by the Brenthurst Foundation, the charter is likely to guide<br />

the rebranded chamber in its deliberations. Mgojo wants to see mines<br />

developing agriculture on land adjacent to projects.<br />

The Department of Trade and Industry (the dti) has set up two<br />

clusters to encourage innovation and collaboration amongst all the relevant<br />

parties in mining in South Africa. These are the Mining Equipment<br />

Manufacturers of South Africa and the South African Mineral Processing<br />

Equipment Cluster (SAMPEC), which falls under the South African<br />

Capital Equipment Export Council, a dti company. SAMPEC looks for<br />

opportunities for import replacement and local beneficiation along<br />

the value chain.<br />

A typical application in the mineral sector is the development of fuel<br />

cell technology. In a world looking for green solutions, South Africa’s<br />

abundant supply of platinum could be a big problem-solver, and a big<br />

earner for the country too.<br />

All of the bodies that oversee the South African mining industry<br />

are located in <strong>Gauteng</strong>.<br />

CONTACT INFO<br />

Chamber of Mines: www.chamberofmines.org.za<br />

Council for Geoscience: www.geoscience.org.za<br />

Department of Mineral Resources: www.dmr.gov.za<br />

Mining Qualifications Authority: www.mqa.org.za<br />

Mintek: www.mintek.co.za<br />

Southern African Institute of Mining and Metallurgy:<br />

www.saimm.co.za<br />

South African Minerals Processing Cluster:<br />

www.saceec.com/sampec<br />

47 GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong>


OVERVIEW<br />

Manufacturing<br />

<strong>Gauteng</strong> leads the nation in manufacturing.<br />

Manufacturing contributes 14% to <strong>Gauteng</strong>’s real economy<br />

output, and provides 40% of South Africa’s manufacturing<br />

overall. More than 600 000 people are employed in<br />

the sector, with metal products, food and beverages and<br />

chemicals being the biggest employers.<br />

Ekurhuleni Metropolitan Municipality has the greatest concentration<br />

of manufacturing enterprises, especially between Wadeville and<br />

Alrode, south-west of Alberton. Germiston is the country’s biggest rail<br />

junction and Transnet Engineering has invested hundreds of millions<br />

of rands in new equipment at its facility there. Nigel and Boksburg<br />

host Union Carriage and Wagon (UCW), DCD Rail and Lennings Rail<br />

Services, a division of Aveng.<br />

Packaging company Nampak has metals (cans), plastic, paper<br />

and glass operations at various locations including Industria West,<br />

Boksburg and Olifantsfontein. The glass plant in Germiston has nearly<br />

doubled its output (to 40 000 bottles per year) to cater for increased<br />

wine exports. The country’s biggest glass producer, Consol Glass, has<br />

facilities in Clayville, Wadeville and Nigel.<br />

Household products manufacturer Unilever represents an example<br />

of the lighter industrial capacity of the East Rand. Kellogg’s, Kimberly-<br />

Clark South Africa and Procter & Gamble all have significant manufacturing<br />

capacity in the area as well. Corrugated paper manufacturer<br />

Corruseal recently purchased the Enstra Mill in Springs from Sappi,<br />

giving it greater control of production.<br />

The southern portion of <strong>Gauteng</strong> around Vanderbijlpark and<br />

Vereeniging is synonymous with steel production. Flat iron is made<br />

at the large plants of ArcelorMittal. Scaw Metals’ chain-making factory<br />

in Vereeniging (McKinnon Chain) has invested R110-million in<br />

expanding and modernising its operations. Domestically, the main<br />

consumers of steel products are the mining, manufacturing, building<br />

and construction sectors, while a significant share is destined for<br />

the export market.<br />

There are as 35 aluminium processing firms in <strong>Gauteng</strong>, involved<br />

in both secondary processing to produce foils, cans, bars, rods and<br />

sheets, and final fabrication in the form of die-casting and sheet metal<br />

work. Within <strong>Gauteng</strong>, the automotive and packaging industries are<br />

the chief consumers of these products.<br />

SECTOR INSIGHT<br />

Lucchini’s new R200-million<br />

factory will produce forged<br />

wheels for the railways.<br />

• Scaw Metals is expanding<br />

chain production.<br />

AECI is a large manufacturing<br />

company with its roots in<br />

the mining industry. It comprises<br />

two principal divisions: AEL<br />

Mining Services (with a large factory<br />

site at Modderfontein south<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

48


OVERVIEW<br />

of Johannesburg) and Chemical<br />

Services, which presides over<br />

20 separate companies (including<br />

Senmin, the group’s mining<br />

chemicals company).<br />

Incentives<br />

The Manufacturing and<br />

Competitiveness Enhancement<br />

Programme (MCEP) of the national<br />

Department of Trade and<br />

Industry (dti) announced in <strong>2017</strong><br />

that it had disbursed a total of<br />

1 552 grants to the value of R5.8-<br />

billion which had resulted in<br />

230 000 jobs being “sustained”.<br />

Plastics, pharmaceuticals and<br />

chemicals received 31% of the<br />

money, metal fabrication, capital<br />

and real transport equipment<br />

28% and agri-processing 21%.<br />

Italian forged wheel manufacturer<br />

Lucchini received tax and<br />

training allowances from the dti<br />

which helped it decide to invest<br />

R200-million in a new forged<br />

wheel-making facility. Blank<br />

railway wheels imported from<br />

Italy will be completed at the<br />

Germiston plant. Lucchini previously<br />

sold its wheels in South<br />

Africa through DCD Ringrollers,<br />

itself a maker of forged steel tyre<br />

products. Lucchini has committed<br />

to increasing the local<br />

content in the manufacturing<br />

process.<br />

The Provincial Government<br />

of <strong>Gauteng</strong> has specific plans to<br />

bolster manufacturing capacity<br />

in the province’s western areas.<br />

Some of the projects include:<br />

• a bicycle manufacturing<br />

or assembling factory in<br />

Mohlakeng<br />

• continuing to buy busses for the province’s BRT system from the<br />

Busmark plant in Randfontein which manufactures and assembles<br />

buses. In 2016 a dual fuel bus was launched, with the bodies of the<br />

busses designed and built in Randfontein.<br />

• establishment of agri-parks: Westonaria hydroponic agri-park;<br />

Merafong Flora agri-park (tomatoes, cucumbers and green peppers);<br />

investment in Isigayo Milling Plant in Randfontein<br />

• revitalisation of industrial parks at Khutsong, Mohlakeng and<br />

Chamdor.<br />

The plan prioritises mining and mineral beneficiation, capital equipment<br />

and machinery, agriculture and agri-processing, tourism, retail<br />

and economic development in townships.<br />

Pharmaceuticals<br />

South Africa’s pharmaceutical sector is worth approximately R20-<br />

billion annually. Although there are more than 200 pharmaceutical<br />

firms in the country, large companies tend to dominate the field,<br />

with Aspen (34%) and Adcock Ingram (25%) the two key players, followed<br />

by Sanofi, Pharmaplan and Cipla Medpro. A number of large<br />

pharmaceutical firms have made significant investments in South<br />

Africa. Adcock Ingram, for instance, has invested heavily in its South<br />

African operation.<br />

The private sector accounts for 80% of pharmaceutical industry<br />

sales by value and 20% by volume, while this ratio is reversed in<br />

the case of the public sector. The public sector dispenses comparatively<br />

cheap pharmaceutical products to its users in public hospitals<br />

and healthcare centres within South Africa, whereas pharmaceutical<br />

products produced by the private sector in South Africa serve a<br />

niche market.<br />

Among the other big international brands active in <strong>Gauteng</strong> are<br />

Merck, which has a 55 000m² plant at Modderfontein, and Pfizer<br />

SA, which runs a laboratory in Sandton amongst its facilities in<br />

South Africa.<br />

CONTACT INFO<br />

Aluminium Federation of South Africa: www.afsa.org.za<br />

Centre for Advanced Manufacturing: www.cfam.co.za<br />

Chemical and Allied Industries’ Association: www.caia.co.za<br />

<strong>Gauteng</strong> Department of Economic Development:<br />

www.ecodev.gpg.gov.za<br />

Manufacturing Circle: www. manufacturingcircle.co.za<br />

National Department of Trade and Industry: www.thedti.gov.za<br />

49 GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong>


OVERVIEW<br />

Automotive and components<br />

The South African Auto Master Plan has been unveiled.<br />

In the context of policy uncertainty in some areas of the South African<br />

economy, and in the year of elections to the top positions within<br />

the country’s ruling party, it was significant that a South African Auto<br />

Master Plan was announced in early July <strong>2017</strong>, just a few days after<br />

the policy congress of the African National Congress.<br />

The Department of Trade and Industry, working together with the<br />

National Association of Automobile Manufacturers of South Africa, set targets<br />

for 2035 to increase production to 1% of world volumes (which would<br />

mean 1.4-million more vehicles made in SA), increasing local content<br />

and doubling employment and black-owned businesses in the sector.<br />

Some of the world’s largest motor vehicle brands (including BMW,<br />

Ford, Nissan and Tata) have manufacturing facilities in <strong>Gauteng</strong>. The<br />

province is also home to a thriving automotive components industry,<br />

together with several bus and truck assembly plants. These include<br />

Scania, TFM Industries and MAN Truck and Bus South Africa, as well<br />

as the Chinese truck manufacturer FAW, which owns an assembly<br />

plant in Isando. Bejing Automotive Works (BAW) assembles taxis at<br />

Springs and has committed (with its partners) to a new investment<br />

of R250-million.<br />

BMW is spending R6-billion on its facility at Rosslyn to gear up to<br />

produce the X3. It already has a high reputation as a maker of the<br />

3 Series. The Ford Motor Company of South Africa started producing<br />

the Everest SUV at Silverton in 2016. The Nissan/Renault plant at<br />

Rosslyn, Pretoria, produces the Renault Sondero hatchback, Nissan<br />

light commercial vehicles and the Tiida and Livina models. UD Trucks, a<br />

part of the Volvo group, announced in <strong>2017</strong> that they will assemble the<br />

CONTACT INFO<br />

Automotive Industry Development Centre: www.aidc.co.za<br />

Automotive Industry Export Council: www.aiec.co.za<br />

Automotive Supplier Park: www.supplierpark.co.za<br />

National Association of Automobile Manufacturers of South<br />

Africa: www.naamsa.co.za<br />

National Association of Automotive Component and Allied<br />

Manufacturers: www.naacam.co.za<br />

SECTOR INSIGHT<br />

UD Trucks will assemble<br />

the Croner heavy vehicle in<br />

Rosslyn.<br />

Croner heavy commercial vehicle<br />

at Rosslyn.<br />

Armoured cars are also<br />

produced in <strong>Gauteng</strong>. DCD<br />

Protected Mobility manufactures<br />

armoured cars in Boksburg,<br />

which are branded as Vehicle<br />

Mounted Mine Detectors. In<br />

nearby Benoni, BAE Systems<br />

OMC designs and manufactures<br />

protected vehicles.<br />

The Automotive Industry<br />

Development Centre (AIDC), the<br />

City of Tshwane (CoT) and Tshwane<br />

Economic Development Agency<br />

(TEDA) are collaborating on a strategic<br />

project to boost the sector<br />

with a focus on infrastructure.<br />

Incentives are available to<br />

firms and investors within the<br />

automotive industry. The national<br />

Department of Trade<br />

and Industry’s Automotive<br />

Investment Scheme (AIS) offers<br />

from 20-30% in non-taxable<br />

grants to qualifying investments.<br />

Such incentives are a key factor<br />

in encouraging firms within the<br />

automotive industry to upgrade<br />

or expand their facilities.<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

50


Food and beverages<br />

<strong>Gauteng</strong>’s big market is attractive to producers.<br />

OVERVIEW<br />

More than half of the companies operating in the food and<br />

beverage sector in South Africa are located in <strong>Gauteng</strong>,<br />

including Nestlé, Tiger Brands, Pioneer Foods, RCL, AVI<br />

and Astral. There are approximately 4 000 food-processing<br />

companies in the province, employing more than 100 000 people. The<br />

food and beverage sector experienced <strong>18</strong>% growth from 1996 to 2013.<br />

Nestlé operates four manufacturing plants in the province and<br />

has invested heavily in increasing production volumes over the last<br />

three years. Tiger Brands runs six plants in Germiston that produce a<br />

range of meat products, and the establishment of a new tomato sauce<br />

plant and pasta plant rank among the company’s recent investments<br />

in the province. McCain Foods, located in Springs, produces frozen<br />

vegetables for the <strong>Gauteng</strong> market.<br />

Although the South African poultry business as a whole has taken<br />

a knock because of the relaxation of import duties, the South African<br />

consumer still eats a lot of chicken. Earlybird Farm, one of Astral’s operations,<br />

processes 800 tons of chicken per day at its two factories in<br />

Olifantsfontein. RCL operates <strong>18</strong> farms and two feed mills in <strong>Gauteng</strong><br />

alone. Daybreak Farms, an AFGRI operation, is located in Springs and<br />

produces about 650 000 broilers every week.<br />

Several beverages in AVI’s portfolio (including Ciro) are produced<br />

at the group’s Kempton Park facilities.<br />

The South African beer market is growing by 1.5% per year.<br />

Three of the seven breweries operated by SAB in South Africa are<br />

in <strong>Gauteng</strong>. AB Inbev, SAB’s new owner, will spend R2.8-billion<br />

on new facilities in South Africa and recycling plants in <strong>Gauteng</strong>.<br />

Amalgamated Beverage Industries, a subsidiary of SAB, has plants<br />

in Midrand, Devland and Pretoria.<br />

CONTACT INFO<br />

Food Advisory Consumer Services: www.foodfacts.org.za<br />

National Agricultural Marketing Council: www.namc.co.za<br />

FoodBev SETA: www.foodbev.co.za<br />

South African Association for Food Science and Technology:<br />

www.saafost.org.za<br />

SECTOR INSIGHT<br />

Heineken is expanding its<br />

brewery.<br />

Heineken’s fairly new brewery<br />

at Sedibeng is already undergoing<br />

expansion, with cider production<br />

set to increase.<br />

Key players in the industry<br />

in South Africa include South<br />

Africa Breweries (SAB) (malt<br />

beer), United National Breweries<br />

(sorghum beer), Distell (spirits and<br />

flavoured alcoholic beverages, or<br />

FABs) and Brandhouse (malt beer,<br />

spirits and FABs).<br />

Investment opportunities in<br />

this sector include: production of<br />

ground-nuts, sunflowers, cotton<br />

and sorghum; soya beans, rooibos,<br />

beverages, fruit and vegetables;<br />

essential oil extraction from<br />

herbs and indigenous plants; expanding<br />

the “exotic” meat (kudu,<br />

ostrich and springbok) market,<br />

locally and globally; packaging of<br />

agri-processed goods; the Green<br />

Hub in the West Rand District<br />

Municipality will promote the<br />

growth of sustainable, green industries;<br />

research and development<br />

of organic food production,<br />

health foods and natural remedies;<br />

and small business opportunities<br />

within the brewing industry.<br />

51 GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong>


OVERVIEW<br />

Tourism<br />

Major new investments in tourism are under way.<br />

<strong>Gauteng</strong> is visited by more than half of the visitors to<br />

South Africa and is primarily known for business or<br />

retail tourism. The province aims to be a “Gateway to<br />

Africa” and the “Home of Champions”, a reference to the<br />

hosting of sporting events.<br />

Cultural and history tourism are very well catered for, with<br />

more than 60 museums and art galleries in the province, including<br />

the acclaimed Apartheid Museum. Other major facilities range<br />

from the Ditsong National Museum of Natural History (Transvaal<br />

Museum), Museum Africa in Johannesburg’s cultural Newtown<br />

precinct and the South African Military History Museum to the<br />

National Cultural History Museum.<br />

Kliptown in Soweto is the site of the signing of the Freedom<br />

Charter. An urban regeneration project has seen the development<br />

of the Walter Sisulu Square of Dedication. Constitution Hill is an old<br />

prison converted to house the country’s most important court,<br />

and several important old buildings have been restored around it.<br />

The provincial authorities have recently expanded infrastructure<br />

at the Maropeng Cradle of Humankind World<br />

Heritage Site to accommodate the increase in tourism<br />

numbers after the exciting discovery of Homo naledi.<br />

Paleology is the hot science of the moment and even more<br />

visitors are expected.<br />

SECTOR INSIGHT<br />

Marriott International will<br />

spend R1-billion on hotels at<br />

Melrose Arch.<br />

• Sun International’s Times<br />

Square and Casino in<br />

Tshwane is a R4.2-billion<br />

project.<br />

The nearby Sterkfontein caves,<br />

owned by the University of<br />

Witwatersrand, have long been<br />

a source of great archaeological<br />

finds. The university’s own Origins<br />

Centre in Johannesburg is well<br />

equipped and provides more fascinating<br />

insight into the origins of<br />

mankind through art and science.<br />

The centre hosts superb representations<br />

of Khoi and San rock art.<br />

Another site where South<br />

Africa’s history is on display is at<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

52


OVERVIEW<br />

Freedom Park, a sprawling complex<br />

of museums, open spaces<br />

and memorials on a hillside overlooking<br />

Pretoria in Tshwane.<br />

Craft markets at Rosebank,<br />

Bruma and many other places draw<br />

large numbers of visitors, and provide<br />

economic opportunities for<br />

a wide range of entrepreneurs in<br />

textiles, leather, traditional art and<br />

beadwork. The broader creative industries<br />

sector contributes more<br />

than R3.3-billion to the <strong>Gauteng</strong><br />

economy and employs <strong>18</strong>2 000<br />

people, according to the provincial<br />

government. This includes film and<br />

advertising studios.<br />

South Africa’s biggest international<br />

airport is OR<br />

Tambo International Airport in<br />

Ekurhuleni. Some R200-million<br />

was spent on extending and upgrading<br />

the runways and aprons<br />

prior to South Africa hosting the<br />

2010 World Cup football tournament.<br />

OR Tambo caters about<br />

20-million passengers every<br />

year, receives more than 105 000<br />

arriving air traffic movements and<br />

employs <strong>18</strong> 000 people.<br />

<strong>Gauteng</strong> is a continental leader<br />

in conferences and events. Most<br />

large hotels have conference facilities.<br />

The Johannesburg Tourism<br />

Company has a dedicated unit, the Johannesburg Convention Bureau,<br />

that assists companies in preparing bid documents and in supplying<br />

relevant information on telecommunications and IT services and the<br />

securing of visas for visiting international delegates.<br />

Large venues in Johannesburg are:<br />

• Johannesburg Expo Centre, Nasrec. Capacity: 15 000<br />

• Coca-Cola Dome, Randburg. Capacity: 14 000<br />

• Standard Bank Arena, New Doornfontein. Capacity: 6 300<br />

• Sandton Convention Centre, Sandton: Capacity: 4 500<br />

CITY STRESSING<br />

We all know the benefits of stress. Stress is a driving force, it gives<br />

us clarity and energises us to focus on what must be accomplished.<br />

Stress is most beneficial when we have a low baseline stress level,<br />

with occasional spikes, but can impact our physical and mental<br />

health negatively when it remains elevated for too long.<br />

In our modern world our stresses have changed, they have become<br />

more complicated and take longer to resolve. Fewer stresses<br />

can be solved with physical activity, and our sedentary lifestyle,<br />

combined with poor diets (for good health never eat food with its<br />

own ad), and higher body fat percentages, is leading to persistent<br />

low-grade inflammation.<br />

This persistent low-grade inflammation in turn triggers or contributes<br />

to what we now call lifestyle diseases: heart disease,<br />

auto-immune disorders, depression, diabetes, cancer, chronic<br />

pain and neuro-degenerative diseases.<br />

A few tips on how to reduce lifestyle-induced inflammation:<br />

Lose excess weight<br />

Fat is a store of inflammatory agents which starts having a<br />

negative impact for body fat of over about 25% (too little fat is<br />

also bad – be sensible)<br />

Eat Omega-3 fatty acids<br />

These foods help to directly reduce inflammatory responses. Oily<br />

fish, walnuts and spinach are all good sources<br />

Exercise<br />

Physical activity helps your liver to metabolise fat, and release<br />

anti-inflammatory chemicals<br />

Stretch<br />

Extending inflamed muscles reduces inflammation almost<br />

immediately<br />

Take low-dose aspirin<br />

Check with your doctor first.<br />

Anette Kruger is Managing Director of Hoogland Health Hydro, a<br />

holistic wellness centre in <strong>Gauteng</strong>’s largest private game reserve.<br />

53 GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong>


OVERVIEW<br />

The city of Ekurhuleni successfully hosted Airport Cities: World<br />

Conference and Exhibition in 2013 as part of the city’s plan to establish<br />

an aerotropolis around OR Tambo International Airport. The Tshwane<br />

Events Centre and the CSIR International Convention and Exhibition<br />

Centre are among Pretoria’s most used venues. The OR Tambo Building<br />

of the Department of International Affairs and Cooperation (Dirco)<br />

won architectural awards and hosts conferences and meetings of the<br />

Pan-African African Parliament.<br />

Hotels<br />

A huge new multi-use development is taking shape in Pretoria’s eastern<br />

suburb of Menlyn. Sun International’s Times Square and Casino is a<br />

R4.2-billion project which will be the second biggest in the country<br />

with 60 tables and 2 000 slot machines. The Capital Hotel has 150 hotel<br />

rooms and 50 apartments.<br />

The apartment component points to a trend that is growing in<br />

the South African hospitality industry. The Legacy Group was one<br />

of the first to introduce apartments to the hotel development mix,<br />

when it added the Davinci Hotel on Nelson Mandela Square to its<br />

portfolio just before South Africa hosted the Soccer World Cup in<br />

2010. The Legacy collection includes the Michelangelo Hotel and<br />

Michelangelo Towers. The Davinci was designed with 166 hotel<br />

rooms, 54 apartments in the upper reaches, with a further four<br />

luxurious penthouses above that.<br />

The number of hotel rooms in Sandton alone increased by 40% in<br />

response to expected demand from the international tournament.<br />

Reduced occupancies in the period after the World Cup tournament<br />

has led to some consolidation in the sector with large brands buying<br />

up smaller groups but independent hotels such as the Indaba Hotel,<br />

Spa and Conference Centre continue to attract guests.<br />

CONTACT INFO<br />

City of Tshwane: www.tshwane.gov.za/tourism<br />

Cradle of Humankind: www.maropeng.co.za<br />

Dinokeng: www.dinokeng.co.za<br />

Ekurhuleni Municipality: www.ekurhuleni.gov.za/tourism<br />

Gallagher Convention Centre: www.gallagher.co.za<br />

<strong>Gauteng</strong> Tourism Authority: www.gauteng.net<br />

Johannesburg Tourism and Convention Bureau:<br />

www.joburgtourism.com<br />

Sandton Convention Centre: www.saconvention.co.za<br />

South African Tourism: www.southafrica.net<br />

South African Tourism Services: www.satsa.com<br />

Another significant move in<br />

the hotel sector is the decision<br />

by Marriott International to develop<br />

Marriott branded hotels in<br />

Johannesburg and Cape Town.<br />

After acquiring the Protea brand<br />

in 2014, Marriott introduced<br />

“Protea Hotel by Marriott” as<br />

the model but the decision in<br />

2016 to use the mother brand<br />

for new hotels suggests an increased<br />

commitment to the local<br />

market. In partnership with<br />

the Amdec group, the group will<br />

spend about R1-billion on the<br />

Marriott Hotel Melrose Arch (150<br />

rooms) and Marriott Executive<br />

Apartments Johannesburg<br />

Melrose Arch (200 flats).<br />

Buying into Protea Hotels<br />

has given Marriott access not<br />

only to the South African market,<br />

but to many other African<br />

countries. Between Tshwane and<br />

Johannesburg (and in the nearby<br />

Magaliesberg mountains), Protea<br />

by Marriott has no fewer than 17<br />

hotels across three brands: Fire<br />

and Ice, Protea; Protea Hotels<br />

and African Pride Hotels, the<br />

premier brand.<br />

Tsogo Sun has 36 hotels and<br />

three casinos in <strong>Gauteng</strong>. The hotels<br />

range across several brands<br />

covering four market segments,<br />

and they include a handful of<br />

stand-alone hotels such as the<br />

Palazzo (at Montecasino) and<br />

54 on Bath (a boutique hotel<br />

in Rosebank). Sun Square,<br />

Southern Sun Hotels, Southern<br />

Sun Resorts, Garden Court<br />

and Stayeasy are among the<br />

group’s brands.<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

54


CONFERENCE<br />

BANQUETS<br />

LUXURY SUITES<br />

EPSOM BISTRO<br />

CHIEF’S BOMA<br />

MOWANA SPA<br />

INDABA HOTEL, SPA & CONFERENCE CENTRE<br />

YOUR AFRICAN DESTINATION IN JOHANNESBURG<br />

Just north of the fast-paced business world of Sandton lies the 258 bedroom Indaba Hotel, Spa &<br />

Conference Centre. It is a compelling blend of business-like efficiency and relaxed country<br />

atmosphere within close proximity of the International Airport making the Indaba perfect for groups<br />

and leisure travellers.<br />

The hotel features 24 multi-purpose conference venues ranging from Executive Boardrooms to large<br />

Banquet Venues seating up to 500 people. Boasting 2 world class restaurants and the renowned<br />

MOWANA Spa, the Indaba Hotel is sure to meet your business and leisure requirements.<br />

Phone: +27 11 840 6600 | Email: indaba@indabahotel.co.za<br />

Website: www.indabahotel.co.za


Coupled with easy and convenient access to all main highways, O.R Tambo International Airport and<br />

a mere 15km from Lanseria International Airport, the hotel features an impressive selection of some 24<br />

multi-purpose conference venues that can accommodate up to 2 000 delegates in total, with<br />

banqueting facilities for up to 500 people.<br />

With two restaurants on property, there is no need to leave the comfort of the hotel to enjoy world<br />

class cuisine. Our 300 seater Chief’s Boma Restaurant caters for all tastes with over 120 Africaninspired<br />

dishes ranging from North African Moroccan cuisine to Koeksisters and Melktert from the<br />

Cape - and with a “Shisa Nyama” grill boasting a variety of game meats, everyone is sure to find<br />

their favourite.<br />

Well-known for the lavish full South African Breakfast buffet which is served daily from 06h30 to<br />

10h30, the Epsom Terrace Restaurant also boasts an evening Grill Menu which will delight even<br />

the most demanding gourmet’s exacting standards. A traditional Carvery Lunch with live<br />

music can be enjoyed every Sunday - Bookings essential for this popular family outing.<br />

For the ultimate pamper, the MOWANA SPA is a wellness sanctuary set in the tranquil bushveld<br />

gardens of the Indaba Hotel. Our commitment to service excellence and Staff Empowerment<br />

through training and mentoring will ensure that your needs are met and your expectations exceeded<br />

as you enjoy a Day of African Rejuvenation with the “Mowana Makoya Journey” or indulge<br />

your senses with the “Mowana Time-Out Pamper”.<br />

The Indaba Hotel - 15 minutes from Sandton ... a million miles away.


OVERVIEW<br />

<strong>Business</strong> services<br />

South African consulting is a leader in Africa.<br />

SECTOR INSIGHT<br />

Consultants advise on a<br />

broad range of issues.<br />

• American and European<br />

firms have offices in<br />

South Africa.<br />

ONLINE RESOURCES<br />

Chartered Institute of Management Consultants:<br />

www.cimcglobal.org<br />

Institute of Management Consultants and Master Coaches of<br />

South Africa: www.imcsa.org.za<br />

South African Institute for Management: www.saim.co.za<br />

Management consulting is an industry that has a history dating<br />

back to the early 1900s. Companies such as McKinsey<br />

and Co and Booz and Hamilton were formed in 1930 and<br />

were based in America. It was only in the early 1980s that<br />

management consulting started developing in South Africa. In the<br />

early 1990s the sector experienced a boom, particularly after the first<br />

democratic elections. Most of the management consulting companies<br />

originating in America and Europe opened offices in South Africa.<br />

These companies were used to align other companies with international<br />

operating standards.<br />

Management consulting is defined by Barkas and Wilkenson as “the<br />

provision of objective and independent advice by qualified people in<br />

order to identify or analyse management problems or opportunities”.<br />

The range of services offered by consultants varies widely but<br />

typically seeks to expose clients to the best practices prevalent in an<br />

industry. Services include process measurement, change management,<br />

development of strategies, analyses of operational efficiency<br />

and customer experience, coaching, assistance with the implementation<br />

of new technology, business<br />

process mapping and business<br />

process reengineering.<br />

The Southern African management<br />

consulting market was estimated<br />

to be worth R15.6-billion<br />

in 2014 (Source: Information<br />

Services). South Africa represents<br />

about 75% of Africa’s consulting<br />

market, but growth in the sector<br />

has been somewhat quicker<br />

in other parts of Africa in recent<br />

years. The management consulting<br />

market reflects the broader<br />

outlines of the South African<br />

economy in this respect.<br />

Today, many small management<br />

consulting companies<br />

offer consulting to a niche set<br />

of customers. Companies such<br />

as PricewaterhouseCoopers,<br />

Deloitte, Accenture, McKinsey<br />

& Company, Bain & Company<br />

and EY are amongst the biggest<br />

consulting firms operating in<br />

South Africa.<br />

With thanks to Draw the Line<br />

<strong>Business</strong> Solutions.<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

58


Assisting businesses to<br />

do business better<br />

Management consulting firm offers a wide range<br />

of services and a strong focus on delivering quality.<br />

FOCUS<br />

From many years working in various organisations the owner<br />

has come to realise the importance of having good quality<br />

processes, procedures, policies, well-designed forms and technology.<br />

All of these enablers lead to an organisation operating<br />

in a structured manner and providing excellent customer service as<br />

well as being highly effective and efficient. Through investment in<br />

organisations who have the skill set to, any company can yield a high<br />

return through using their resources optimally.<br />

We assist businesses with services such as <strong>Business</strong> Process Reengineering,<br />

<strong>Business</strong> Process Mapping, <strong>Business</strong> Analysis, Process<br />

Measurement, Enterprise Architectural Design, Project Management,<br />

Change Management, Testing, Implementation and Customer<br />

Experience Analysis.<br />

Vision<br />

To be recognised as a leading, independent Management Consulting<br />

company in Africa.<br />

Values<br />

Care – We take care of our employees. Our employees care for our customers.<br />

We take care of our environment and our community by assisting<br />

through volunteering and supporting organisations in need of assistance.<br />

Respect – We treat everyone with respect.<br />

Integrity – We are honest and act ethically when we deal with our<br />

customers and our fellow employees. We want to build our reputation<br />

through our behaviour.<br />

Focus on Delivery – We focus on delivering high-quality service and<br />

products to our customers.<br />

Learning and Sharing – We learn by actively taking part in projects.<br />

We share what we learn and we train our staff so that they are empowered<br />

to be able to move.<br />

Building Relationships – We build relationships with our customers and<br />

with our peers by being friendly and polite.<br />

Customer Service Excellence – We provide our customers with service<br />

that makes them smile. We strive to solve their problems effectively and<br />

efficiently.<br />

Ursula Henry<br />

Mission<br />

To delight our customers in everything<br />

we do. To continually<br />

strive to assist businesses with<br />

improving their effectiveness<br />

and efficiency so that businesses<br />

can do more. To be aware of our<br />

environment. To build lasting relationships<br />

with all businesses in<br />

all industries. To employ people<br />

who are passionate about making<br />

a difference.<br />

CONTACT INFO<br />

Owner: Ursula Henry<br />

Cell: 082 330 0517<br />

Email: ursula.henry@<br />

drawthelinebusiness<br />

solutions.co.za<br />

Website: www.drawtheline<br />

businesssolutions.co.za<br />

59 GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong>


OVERVIEW<br />

Education and training<br />

The private sector is growing fast.<br />

SECTOR INSIGHT<br />

<strong>Gauteng</strong> schools are set to<br />

receive 1 200 laboratories<br />

and 470 libraries.<br />

• Curro will open two<br />

tertiary campuses in<br />

20<strong>18</strong>.<br />

Well-regarded research units, top-ranked business<br />

schools and a large number of universities, universities<br />

of technology and colleges are located in <strong>Gauteng</strong>,<br />

making the province a hub of educational excellence.<br />

The new mayor of Ekurhuleni has called for his city to have its own<br />

tertiary institution as well.<br />

Three of South Africa’s top five business schools are in <strong>Gauteng</strong>:<br />

the Wits <strong>Business</strong> School, the University of South Africa’s (Unisa’s)<br />

Graduate School of <strong>Business</strong> Leadership and the Gordon Institute of<br />

<strong>Business</strong> Science, on the Sandton campus of the University of Pretoria.<br />

Eighty percent of the 1 230 lecturers and researchers at the<br />

University of the Witwatersrand (Wits) have post-graduate degrees,<br />

and 27 A-rated scientists work there. The university offers studies in<br />

more than 40 schools in five faculties.<br />

Pretoria hosts the head office of distance university Unisa, which<br />

has almost a quarter of a million students. The University of Pretoria<br />

(UP) is renowned for research. One of the most famous faculties is<br />

veterinary science, which is located at Onderstepoort. The indoor<br />

compact antenna test range housed in the Department of Electrical,<br />

Electronic and Computer Engineering at UP is the only one in the<br />

southern hemisphere. UP also has<br />

a chair in electronic defence research<br />

(with the CSIR), the Exxaro<br />

chair in Energy Efficiency and the<br />

South African National Energy<br />

Development Institute Hub.<br />

The University of<br />

Johannesburg (UJ) is a comprehensive<br />

institution offering diplomas<br />

and degrees through a<br />

mix of vocational and academic<br />

programmes. The Tshwane<br />

University of Technology (TUT)<br />

and the Vaal University of<br />

Technology (VUT) have several<br />

campuses. TUT’s 50 000 students<br />

attend classes on six campuses<br />

in four provinces. The main campus<br />

of VUT is in Vanderbijlpark.<br />

Altogether, there are more than<br />

3 300 educational institutions<br />

in <strong>Gauteng</strong>.<br />

The provincial government<br />

has set a target for 2019 of<br />

spending R1-billion on higher<br />

education bursaries.<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

60


OVERVIEW<br />

Schools<br />

The provincial government of<br />

<strong>Gauteng</strong> announced in <strong>2017</strong><br />

that since 2014 it has built 43 new<br />

schools, including classrooms<br />

with ICT facilities in existing<br />

schools. To 2019, a further 34 new<br />

schools will be erected, together<br />

with 1 200 laboratories and more<br />

than 470 school libraries.<br />

A particular library will be<br />

built because of the dedication<br />

of some young community activists.<br />

When protesters burnt<br />

down the township’s library in<br />

2015, members of the Mohlakeng<br />

Youth Movement decided that<br />

books were still needed so<br />

they started the Mohlakeng<br />

Underground Library, operating<br />

from a shack. The project has<br />

grown to become a literacy project<br />

and assistance is also offered<br />

with homework. The provincial<br />

government and the Rand West<br />

City Municipality will jointly ensure<br />

that a new library is built for<br />

the community by June 2019.<br />

Pupil numbers suggest that<br />

even more schools need to be<br />

built: in 2016 <strong>Gauteng</strong> schools<br />

accepted two-million pupils.<br />

A growing trend is towards<br />

private schooling. Some of the<br />

new private schools are small<br />

and modest but the sector is also<br />

attracting investors and the two<br />

biggest brands are growing fast.<br />

JSE-listed ADvTECH has 24<br />

schools across five brands (from<br />

primary to high school) and nine<br />

tertiary colleges in the province.<br />

Schools include Trinity House<br />

and Crawford College while<br />

the tertiary offering includes an<br />

The administration building at Pretoria University.<br />

advertising school (Vega), a chef’s academy (Capsicum) and a<br />

Varsity College.<br />

Curro Holdings is also listed on the JSE and is rapidly growing<br />

its portfolio of schools. In <strong>Gauteng</strong>, Curro already has 34 schools.<br />

Branching out into the tertiary sector is next on the agenda, and this<br />

will happen partly through acquisitions, such as that of Curro Embury<br />

College. The tertiary division will list separately. Two tertiary campuses<br />

will open in Johannesburg and Pretoria in early 2008.<br />

A funding agreement with Old Mutual Investment Group SA<br />

(OMIGSA) and the Public Investment Corporation (PIC) will see Curro<br />

roll out 11 low-fee independent schools in the years to 2019. These<br />

will be called Meridian Independent Schools.<br />

CONTACT INFO<br />

Council of Higher Education: www.che.ac.za<br />

<strong>Gauteng</strong> Department of Education: www.education.gpg.gov.za<br />

National Department of Basic Education: www.education.gov.za<br />

National Department of Higher Education and Training:<br />

www.dhet.gov.za<br />

National Department of Science and Technology: www.dst.gov.za<br />

National Research Foundation: www.nrf.ac.za<br />

Southern African Regional Universities Association:<br />

www.sarua.org<br />

61 GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong>


OVERVIEW<br />

ICT<br />

Financial institutions are investing in ICT.<br />

<strong>Gauteng</strong> is a leader in the ICT sector. With several global<br />

companies choosing to station their South African headquarters<br />

in <strong>Gauteng</strong>, the province is well connected.<br />

Spending on ICT in South Africa is expected to reach<br />

R266-billion in <strong>2017</strong>, according to market analyst Gartner, quoted in<br />

ITWeb. Software spending is driving growth. Among the biggest<br />

spenders on ICT are banks and other financial institutions. The Big<br />

Four banks spent R30-billion in the year to June 2016, with Standard<br />

Bank laying out R14-billion in that period (Tech Central).<br />

The new mayor of Johannesburg, Herman Mashaba, recently announced<br />

that, “We will be aggressively expanding the rollout of our<br />

free Wifi network across the city.” The City of Tshwane’s free service<br />

TshWi-Fi is available in 780 zones such as libraries, educational<br />

institutions, clinics and libraries.<br />

Premier David Makhura announced in <strong>2017</strong> that more than 1 500km<br />

of network fibre has been rolled out in <strong>Gauteng</strong> since 2014. A total of<br />

3 000 access sites should be connected by 2020.<br />

The Small Enterprise Development Agency (Seda) runs the<br />

SoftstartBTI ICT incubator in Midrand and Tuksnovation, a high-tech<br />

incubator, at Pretoria University. Seda is an agency of the National<br />

Department of Small <strong>Business</strong> Development, and gives non-financial<br />

support to entrepreneurs.<br />

The National Electronic Media Institute of South Africa (NEMISA)<br />

was originally created to create skills for the broadcasting environment,<br />

but it is now being integrated with eSkills Network and the Institute<br />

for Satellite and Software Applications (ISSA) to form Ikamva National<br />

e-Skills Institute (iNeSI). The focus is on developing e-skills capacity<br />

in South Africa by creating partnerships that guide e-skills initiatives.<br />

The head office is in Johannesburg.<br />

CONTACT INFO<br />

Department of Trade and Industry: www.dti.gov.za<br />

Technology Innovation Agency: www.tia.org.za<br />

Ikamva National e-Skills Institute: www.enesi.org.za<br />

Independent Communications Authority: www.icasa.org.za<br />

State Information Technology Agency: www.sita.co.za<br />

SECTOR INSIGHT<br />

Johannesburg and Tshwane<br />

have free Wifi zones.<br />

The Universal Service and<br />

Access Agency of South Africa<br />

(USAASA) is providing connectivity<br />

for schools in five provinces,<br />

and smart devices have been<br />

distributed to schools.<br />

A number of incentives relevant<br />

to companies and educational<br />

bodies in the ICT sector are available<br />

from the Department of Trade<br />

and Industry (dti). These include:<br />

• The Technology and Human<br />

Resources for Industry<br />

Programme (THRIP): companies<br />

and educational institutions<br />

working to improve<br />

technology; 50/50 cost sharing<br />

grant to a maximum of<br />

R8-million<br />

• Technology Development<br />

Fund: the Technology<br />

Innovation Agency makes up<br />

to R50-million available for up<br />

to 10 years<br />

• Technology Venture Capital:<br />

managed by the Industrial<br />

Development Corporation;<br />

commercialisation of innovative<br />

products, processes and<br />

technologies.<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

62


Banking and financial services<br />

Newcomers are challenging the established players.<br />

OVERVIEW<br />

SECTOR INSIGHT<br />

Three new banks and three<br />

new stock exchanges will<br />

offer more choice.<br />

• Gap insurance is an<br />

innovative new product.<br />

Stock exchanges<br />

<strong>Gauteng</strong> is the heart of South Africa’s banking and financial<br />

services industry. Africa’s largest stock exchange and<br />

the head offices of many banks and investment houses<br />

are located in <strong>Gauteng</strong>. The financial-services industry<br />

contributes 21% to the province’s gross domestic product.<br />

So large are the operations of <strong>Gauteng</strong>’s banks that some of them<br />

have campuses in downtown Johannesburg, rather than offices. As they<br />

grow bigger still they are building in Sandton and beyond. Standard<br />

Bank recently completed a R2.5-billion office complex in Sandton and<br />

Discovery’s international headquarters in the same suburb is said to be<br />

the continent’s biggest single-phase office development.<br />

South Africa is an ideal stepping stone into Africa and several international<br />

concerns have head offices in Johannesburg. These include<br />

Bank of China, Bank of Taiwan, Citibank, Deutsche Bank AG and HSBC<br />

Bank. Add to that the Reserve Bank and the JSE, Africa’s largest stock<br />

exchange, and one has a sense of the importance of this sector.<br />

The JSE is the world’s 19th biggest<br />

exchange and nearly 400<br />

companies are listed on the<br />

JSE or AltX, the JSE-owned exchange<br />

for smaller companies.<br />

Other investment options that<br />

are available through the JSE are<br />

Yield X (interest rate and currency<br />

instruments), the South African<br />

Futures Exchange (SAFEX) and<br />

the Bond Exchange of South<br />

Africa (BESA).<br />

In <strong>2017</strong> several new exchanges<br />

won regulatory approval, with<br />

ZAR X winning the nod from the<br />

Financial Services Board (FSB)<br />

against objections by the established<br />

JSE and another new<br />

exchange, 4AX. Shortly after winning<br />

its court case, ZAR X started<br />

trading in Senwesbel, the holding<br />

company of one of South Africa’s<br />

biggest agricultural trading companies,<br />

Senwes. There is no trading<br />

in derivatives or high-frequency<br />

trading on this exchange.<br />

63 GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong>


OVERVIEW<br />

A2X will offer secondary listings<br />

platform for JSE-listed companies<br />

and aims to cut costs for investors.<br />

African Rainbow Capital (started<br />

by Patrice Motsepe) is an investor<br />

in A2X.<br />

4 Africa Exchange (4AX) expects<br />

to start trading in the second<br />

half of the year. 4AX will focus on<br />

companies with market capitalisation<br />

of up to R8-billion. Agricultural<br />

trading company NWK is a shareholder<br />

in this venture.<br />

The newcomers all promise<br />

to use the latest technology to<br />

make trading simpler, quicker<br />

and cheaper.<br />

Banks<br />

No fewer than three new banks<br />

are set to make their debuts<br />

on the South African market.<br />

On top of that, life insurer MMI<br />

Holdings is entering a partnership<br />

with African Bank to enable it to<br />

start taking deposits and loaning<br />

money. It intends to create a<br />

R10-billion loan book.<br />

All the new banks come<br />

from state enterprises: Ithala,<br />

Postbank and a Human<br />

Settlements Development Bank.<br />

The Ithala Development Finance<br />

Corporation is an enterprise<br />

funder in KwaZulu-Natal that has<br />

applied for a banking licence.<br />

In 2016 Postbank (part of the<br />

South African Post Office, SAPO)<br />

received a first-level licence.<br />

Once a board of directors has<br />

been appointed and a company<br />

formed, the Reserve Bank is likely<br />

to grant the full licence. The current<br />

Postbank focusses on taking<br />

deposits and savings accounts.<br />

Postbank has secured a R3.7-billion loan to enable it to open its own<br />

loan book.<br />

Three state entities are merging to create the new Human<br />

Settlements Development Bank: the National Housing Finance<br />

Corporation, the Housing Loan Fund and the National Urban<br />

Reconstruction and Housing Agency. The focus will be on financing<br />

housing for poorer households and for large state-funded housing<br />

projects. Part of the drive is to integrate cities better and to combat the<br />

legacy of the spatial divide that apartheid left behind. Private sector<br />

investment will be sought.<br />

For many decades, South Africa had a retail banking Big Four –<br />

Standard Bank, Nedbank, Absa/Barclays and First National Bank. All of<br />

them have a strong presence in the province, but they have recently<br />

been joined by Capitec Bank as a major player in the retail market.<br />

Banks are working hard to offer products to the previously unbanked.<br />

Nedbank has partnerships with shops such as Boxer Stores<br />

and Pick n Pay where customers can have access to financial services<br />

in previously unserviced areas and also on all days of the week such<br />

as public holidays and Sundays.<br />

Standard Bank’s community-banking initiative offers a low-cost<br />

cellphone-banking service. Retailers can act as agents for the bank,<br />

even in very remote rural areas. Shops such as Shoprite, Pep and Spar<br />

are connected, as are certain spazas.<br />

Merchant banking and investment banking are the most competitive<br />

sectors with companies such as BoE Private Clients, Rand Merchant<br />

Bank and Investec prominent. Investec, a company which engages with<br />

capital markets, private banking and asset management, is dual-listed<br />

in Johannesburg and London.<br />

The insurance market has become more varied over time, with a<br />

greater variety of products now available to more market segments,<br />

including middle-income earners. A typical example of a specific product<br />

that is responding to new realities is Old Mutual’s iWYZE medical<br />

gap cover, designed to pay the difference between what a medical aid<br />

scheme is willing to pay and what the hospital or doctor is charging.<br />

CONTACT INFO<br />

Auditor-General South Africa: www.agsa.co.za<br />

Banking Association South Africa: www.banking.org.za<br />

Financial Services Board: www.fsb.co.za<br />

Insurance Institute of South Africa: www.iisa.co.za<br />

Insurance South Africa: www.insurance.za.org<br />

JSE Limited: www.jse.co.za<br />

Post Bank: www.postbank.co.za<br />

South African Institute for Chartered Accountants:<br />

www.saica.co.za<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

64


Green<br />

shoots<br />

give hope for growth<br />

Research done by Standard Bank’s Commercial Banking<br />

division points to some positive medium-term indicators<br />

for the provincial economy.<br />

South Africa’s national economy is under significant<br />

pressure, with the outlook for jobs and<br />

growth uncertain, but green shoots in the economic<br />

heartland of <strong>Gauteng</strong> show that a growth<br />

rate of close to 2% can be achieved over the next<br />

five years.<br />

Standard Bank’s Commercial Banking division has<br />

conducted extensive research into the sectors and<br />

geographic trends in the <strong>Gauteng</strong> regional economy,<br />

providing key insights into major trends that<br />

will matter for business activity going forward.<br />

It was announced in the February Budget that the<br />

South African economy, which grew by an estimated<br />

0.5% in 2016, is expected to grow by 1.3%<br />

in <strong>2017</strong> and 2% in 20<strong>18</strong> as economic conditions<br />

strengthen. But that was before ratings agencies<br />

downgraded the country’s sovereign debt to junk,<br />

leading to much weaker prospects and cuts in<br />

GDP outlooks by many analysts.<br />

However, the Standard Bank research – which<br />

comes after the downgrades were announced<br />

– shows that all sectors in <strong>Gauteng</strong> are expected<br />

to perform well in a forecast period of 2016-21,<br />

with the exception of the mining sector (which is<br />

anticipated to further contract by -1.4%).<br />

“The slowdown in mining-based returns and<br />

prospects will continue to bite, but promising<br />

results are earmarked to come from remaining<br />

sectors of the economy which resonates with anticipated<br />

growth projections at a national scale,”<br />

65 GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong>


PROFILE<br />

says David Pike, Standard Bank<br />

Head: Commercial Banking<br />

for <strong>Gauteng</strong>.<br />

The data shows that the growth<br />

rate achieved over the five years<br />

to 2016 of 2% can be maintained<br />

over the next five years despite<br />

all the challenges.<br />

While manufacturing grew just<br />

0.6% in <strong>Gauteng</strong> from 2011-16,<br />

it is expected to rise by 1.4% in<br />

the upcoming period to 2021.<br />

Another surprise is that while<br />

the electricity, gas and water<br />

sector fell 1.5% five years ago,<br />

it is expected to lift by 1.3%<br />

now. And while agriculture<br />

declined 1% from 2011-16, it is<br />

expected to advance by 2.1%<br />

over the corresponding fiveyear<br />

period.<br />

“There will certainly be significant<br />

challenges ahead,<br />

especially from the consumer<br />

perspective and we forecast<br />

wholesale, retail trade, catering<br />

and accommodation to rise 1.8%<br />

in <strong>Gauteng</strong> from 2.4% in the prior five years and for construction<br />

to drop from 2.8% to 1.9% in the upcoming period,” says Mr Pike.<br />

<strong>Business</strong>es in the region should not rush in with their eyes wide<br />

shut and would need to ensure they are well placed to take<br />

advantage of the growth shoots that do exist.<br />

Green shoots in the economic heartland of<br />

<strong>Gauteng</strong> show that a growth rate of close<br />

to 2% can be achieved over the<br />

next five years.<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

66


PROFILE<br />

<strong>Gauteng</strong> is a driver for the national<br />

economy – it is estimated in a<br />

Brand South Africa report to contribute<br />

an estimated 34% to the<br />

national economy despite only<br />

occupying 1.4% of the country’s<br />

land area.<br />

“Notably, if <strong>Gauteng</strong> can achieve<br />

1.9% growth over the next five<br />

years, our current forecast is for<br />

the national economy to also<br />

achieve 1.9%,” says Mr Pike.<br />

Entrepreneurs, investors and<br />

businesses all have a fabulous<br />

opportunity – but having the<br />

knowledge at their fingertips<br />

will be key.<br />

“Our deep dive into these statistics has picked up some significant<br />

trends that all businesses need to be aware of. Each sector and geography<br />

has its unique dynamics but if you break it down you can<br />

truly understand what is likely to happen. Just look at agriculture<br />

in Pretoria, for example: our research shows that activity fell 3.5%<br />

in the previous five years but is now forecast to increase by 1.8% in<br />

the following five years,” says Mr Pike.<br />

“It is no use getting despondent<br />

and thinking profits cannot be<br />

made or expansion cannot be<br />

achieved. With the right partners<br />

by your side with the right strategic<br />

intent, amazing success can<br />

still be achieved over the next<br />

five years,” Mr Pike concludes.<br />

Website: standardbank.co.za<br />

With the right partners by your side with<br />

the right strategic intent, amazing success<br />

can still be achieved over the next<br />

five years.


OVERVIEW<br />

Development finance and<br />

SMME support<br />

Public and private funding is available for entrepreneurs.<br />

National government has created an agency to spur the development<br />

of SMMEs, the Small Enterprise Finance Agency (Sefa),<br />

which falls under the Industrial Development Corporation. The<br />

IDC provides finance across a range of sectors from agriculture<br />

to tourism.<br />

The Small Enterprise Development Agency (Seda) is an agency of the<br />

National Department of Small <strong>Business</strong> Development, and gives nonfinancial<br />

support to entrepreneurs through training, assistance with filling<br />

in forms, marketing and creating business plans. It helps small businesses<br />

draft applications for loan finance. Several of Seda’s technology incubators<br />

are in <strong>Gauteng</strong>.<br />

The Masisizane Fund offers loan financing at good rates and training<br />

through its <strong>Business</strong> Accelerator programme. As a non-profit initiative of<br />

the Old Mutual Group, the fund focusses on the cash flow of potential<br />

businesses rather than insisting on security in the form of property or<br />

something similar.<br />

All the major banks have SMME offerings. Standard Bank’s Community<br />

Investment Fund (CIF) initiative extends loans to informal businesses. The<br />

CIF has distributed more than R7-million to more than 630 businesses<br />

through its six funds in three provinces.<br />

Nedbank has an enterprise-development product that supports businesses<br />

with a turnover up to R35-million with at least 25% black ownership.<br />

The Shanduka Black Umbrellas incubator helps entrepreneurs convert<br />

their good ideas to sustainable business practice. DRA Minerals is putting<br />

R3.8-million into the programme over two years.<br />

Anglo American Zimele, which runs four enterprise development<br />

and investment funds, helps start and expand SMMEs. Since the<br />

CONTACT INFO<br />

<strong>Gauteng</strong> Growth and Development Agency: www.ggda.co.za<br />

Industrial Development Corporation: www.idc.co.za<br />

National Empowerment Fund: www.nefcorp.co.za<br />

Small Enterprise Development Agency: www.seda.co.za<br />

Small Enterprise Finance Agency: www.sefa.org.za<br />

Unemployment Insurance Fund: www.labour.gov.za<br />

SECTOR INSIGHT<br />

The <strong>Gauteng</strong> Provincial<br />

Government spent R6-billion<br />

in townships in 2016.<br />

introduction of enterprise hubs,<br />

the number of projects has grown<br />

very quickly and Zimele has processed<br />

more than R500-million in<br />

loans and two applications are received<br />

every day. One of Zimele’s<br />

small business hubs operates out<br />

of Vanderbijlpark.<br />

The <strong>Gauteng</strong> Provincial<br />

Government spent R6-billion in<br />

townships in 2016, in a deliberate<br />

attempt to get those areas into<br />

the mainstream economy. A total<br />

of 2 800 township enterprises are<br />

now selling goods or services to<br />

the government.<br />

The goal of the provincial<br />

government, with its partners<br />

Harambee Youth Employment<br />

Accelerator and various private<br />

sector companies such<br />

as Microsoft, is to reach half-amillion<br />

young people through<br />

the Tshepo 500 000 programme<br />

by 2019.<br />

The City of Johannesburg has<br />

established seven SMME hubs<br />

where office space, Wifi and<br />

advice and training are available.<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

68


Language barriers.<br />

9.8 million injury<br />

free man-hours.<br />

Minimal infrastructure.<br />

Political instability.<br />

A 7.2 Mtpa gold plant<br />

delivered 3 months<br />

ahead of schedule.<br />

Impossible?<br />

Not for DRA.<br />

Kibali Gold in the DRC produces 600 000 oz of gold every year. Acknowledging the community,<br />

4000 homes were saved and relocated. Started in 2012, completed in 2014, three<br />

months ahead of schedule with exceptional safety statistics, under budget for our client.<br />

DRAglobal.com<br />

Extraordinary Possibilities


<strong>2017</strong> marks the tenth anniversary of the Masisizane Fund.<br />

Established as an initiative of Old Mutual South Africa in<br />

2007 following the closure of the Unclaimed Shares Trust,<br />

the Fund has made good inroads in fulfilling their mandate<br />

to contribute meaningfully to employment creation, poverty<br />

eradication, the reduction of inequality, economic growth<br />

and attraction of investments.<br />

In 2016, loans to the value of R26.3 million were approved<br />

for the <strong>Gauteng</strong> region alone, creating 201 jobs. 65.8% of<br />

these loans were given to male owned businesses, 29.7%<br />

to female owned and 4.5% to youth owned businesses.<br />

The Masisizane Fund offers tailored integrated and flexible<br />

financial and non-financial solutions including financial<br />

education, capacity development and mentoring support.<br />

“We take time to fully understand each enterprise’s needs,<br />

challenges and characteristics. The understanding and the<br />

partnerships it creates with small business owners adds<br />

value and offers innovative enterprise<br />

finance models aimed at ensuring<br />

long-term enterprise growth,<br />

sustainability and development<br />

impact” says Nandi Gaqa,<br />

Provincial Manager,<br />

Central Region.<br />

Nandipa Gaqa,<br />

Provincial Manager<br />

Central Region<br />

A Masisizane Client Competition was<br />

launched in the second half of 2016<br />

to celebrate outstanding achievements<br />

by our clients. This competition<br />

comprises of five provincial events<br />

followed by a national event in July<br />

<strong>2017</strong> where we will celebrate our<br />

10th anniversary and announce<br />

the overall national winner of the<br />

competition.<br />

CTU Manufacturing Co-operative<br />

(CTU) left the 2016 <strong>Gauteng</strong><br />

competition with three of the five<br />

awards. CTU Manufacturing Cooperative<br />

won the Best Female<br />

Owned <strong>Business</strong>, Best Employer of the<br />

Year and <strong>Business</strong> of the Year awards.<br />

CTU was registered in 2009 and is<br />

a business 100% owned by black<br />

women. The business is managed by<br />

Nonhlanhla Mphachoe and Busisiwe<br />

Bhengu who are seasoned business<br />

women and operates from premises<br />

in Doornfontein in downtown<br />

Johannesburg. CTU specialises in<br />

manufacturing hospital clothing,<br />

linen and medical accessories. Their<br />

range includes bed sheets, night<br />

dresses, theatre gowns, lab coats,<br />

pillow cases, maternity tops, towelling<br />

gowns and pyjamas amongst others.<br />

The business has sustained and built a


MASISIZANE FUND<br />

reputation for itself over years due to<br />

the directors’ ability to execute orders.<br />

CTU initially received a loan from<br />

the Masisizane Fund in 2013 to<br />

purchase the raw material required<br />

to execute orders. In 2014, the loan<br />

was approved for a revolving facility<br />

to enable CTU to execute a 12 month<br />

contract. As a result of this funding,<br />

CTU could increase its revenue and<br />

more than double its number of<br />

employees, sewing machines and<br />

profitability. Achievements like these<br />

make CTU a truly worthy winner of<br />

these three awards.<br />

The remaining awards were won<br />

by GTL Food Manufacturing &<br />

Distribution (Pty) Ltd for Entrepreneur<br />

of the Year and The Coffee Stop<br />

Shop Rivonia for Best Youth Owned<br />

<strong>Business</strong>.<br />

Busisiwe Bhengu and Nonhlanhla Mphachoe in the factory at CTU.<br />

Zizipho Nyanga, CEO Masisizane, Lorato Phalatse and Mlulami Manjezi, both<br />

Board Members of Masisizane, Nonhlanhla Mphachoe and Busisiwe Bhengu,<br />

directors of CTU and Tumi Sefolo, Sector Head Franchising at Masisizane.<br />

The Masisizane Fund can be contacted at:<br />

Kokstad Flagship Office 039 727 3100 NDlamini2@oldmutual.com<br />

Eastern Cape 043 704 0116 PMlilo@oldmutual.com<br />

<strong>Gauteng</strong> (incl. North West, Free State) 011 217 1746 NBoqo@oldmutual.com<br />

Western Cape 021 509 5074 ASnyders@oldmutual.com<br />

KwaZulu-Natal 031 335 0402 SNkosi4@oldmutual.com<br />

Limpopo (Incl. Mpumalanga) 015 287 4279 BSemenya@oldmutual.com<br />

OMBDS 01.<strong>2017</strong> L10097<br />

An initiative of the<br />

Group<br />

Old Mutual is a Licensed Financial Services Provider


PROFILE<br />

The Small Enterprise<br />

Development Agency<br />

(Seda)<br />

“Together Advancing Small Enterprise Development.”<br />

The Small Enterprise Development Agency (Seda)<br />

is the implementing agency of the Department of<br />

Small <strong>Business</strong> Development (DSBD) responsible for<br />

providing non-financial support to small, medium<br />

micro enterprises as well as aspiring entrepreneurs<br />

in South Africa. Since its inception in 2005, Seda has<br />

been assisting small businesses which possess the<br />

highest potential for job creation and empowerment.<br />

Notwithstanding this, Seda continues to give<br />

the very best support and service to all entrepreneurs<br />

and businesses requiring assistance.<br />

Seda has designed and developed a number of High<br />

Impact Programmes (HIPs) targeted at addressing<br />

the needs of small and medium businesses. The<br />

success of the programmes depends to some extent<br />

on establishing sufficient value-adding partnerships<br />

with like-minded entities. The acquisition of<br />

additional resources will invariably result in a higher<br />

impact in business development and greater impact<br />

within the region.<br />

Seda <strong>Gauteng</strong> offers to its prospective partners<br />

11 years of operations experience, and an established<br />

network comprising three branches:<br />

Johannesburg Branch, Tshwane Branch and<br />

Ekurhuleni Branch as well as six co-location points<br />

in the Tshwane District located in Atteridgeville,<br />

Olievenhoutbosch, Mamelodi, Sekampaneng,<br />

Bronkhorstpruit and Mabopane. Inherent in the<br />

organisational culture is the drive towards finding<br />

new and cost-effective ways of improving small<br />

businesses and the environment within which<br />

they operate. Some of Seda <strong>Gauteng</strong> choice<br />

offerings are:<br />

Last Drop Juice Pty Ltd.<br />

Supplier Development Programme<br />

(SDP)<br />

This programme aim to strengthen the performance<br />

of supplier firms by enabling them to acquire the<br />

skills and capacities they need to make them compete<br />

locally and globally. Supplier Development<br />

presents several advantages to the buying firm as<br />

well as to suppliers and these yield benefits to the<br />

economy. The goals of this programme include<br />

the capacitation of SMEs to have the ability to do<br />

business with corporate-sector entities, provide a<br />

platform to access potential business opportunities<br />

provided by big enterprises, improve growth<br />

and diversification through procurement and, lastly,<br />

facilitate localised supply chain.<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

72


PROFILE<br />

Export Development<br />

Programme<br />

This programme aims to develop<br />

and generate export-ready small<br />

enterprises that are globally competitive<br />

and able to grow markets<br />

both locally and internationally.<br />

The programme is designed to<br />

help small enterprises in South<br />

Africa to acquire and apply practical<br />

skills in developing their ex-<br />

Li Real Estate.<br />

port capabilities. It consists of the<br />

following components: export<br />

assessment, export training, export development<br />

and promotional support.<br />

Women Enterprise Coaching<br />

Programme<br />

The focus of this programme is to assemble a<br />

group of women-owned enterprises and take<br />

them through coaching by business coaches. These<br />

coaches provides guidance, advice, support and<br />

encouragement and help women business owners<br />

to manage and grow their businesses in areas such<br />

as sales, marketing and team-building.<br />

Manufacturing Support Programme<br />

The programme was developed in line with national<br />

government’s Industrial Policy Action Plan (IPAP) and<br />

the New Growth Path. Furthermore, the programme<br />

is explicitly responding to the specific current challenges,<br />

needs, skills and capabilities of the country’s<br />

SMEs in the manufacturing sector; it assists manufacturers<br />

to be competitive and provides backward and<br />

forward linkages. The objective of the programme<br />

is to assist SMEs in equipment upgrade (through<br />

partners); productivity improvement; increasing<br />

competitiveness, improvement of processes (in all<br />

spheres of the business); and strengthening their<br />

business growth and performance.<br />

CONTACT INFO<br />

Where to find Seda <strong>Gauteng</strong><br />

Provincial Office: Mr Colin Leshou,<br />

Provincial Manager<br />

Physical address: No 33 Hoofd Street,<br />

Forum5, 2nd Floor, Braamfontein<br />

Tel: CONTACT +27 11 408 INFO 6520<br />

Email: cleshou@seda.org.za<br />

Joburg Branch: Thabo Sibeko, Branch Manager<br />

Physical address: No 33 Hoofd Street,<br />

Forum5, 2nd Floor, Braamfontein<br />

Tel: +27 11 408 6500<br />

Email: tsibeko@seda.org.za<br />

Tshwane Branch: Caren Coetzee,<br />

Branch Manager<br />

Physical address: 536 Francis Baard, Arcadia<br />

Tel: +27 12 400 8892<br />

Email: ccoetzee@seda.org.za<br />

Ekurhuleni Branch: Thabang Mpalami, Branch<br />

Manager<br />

Physical address: The <strong>Business</strong> Place,<br />

Cnr Monument and Voortrekker roads,<br />

Kempton Park<br />

Tel : +27 11 973 9640<br />

Email: tmpalami@seda.org.za<br />

73 GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong>


INTERVIEW<br />

Randburg Chamber<br />

of Commerce and<br />

Industry<br />

Promoting and representing businesses in the<br />

economic powerhouse.<br />

Linda Blackbeard, RCCI CEO<br />

What is the geographic footprint of the Chamber?<br />

The areas we cover are: Randburg, Sandton, Fourways, Lanseria and<br />

Midrand.<br />

What are the key functions of the Chamber?<br />

The key functions of the Chamber are primarily to promote business,<br />

to facilitate introductions, to be the voice of business in the municipal<br />

local and government levels, in defending business in areas of poor<br />

decision-making or unintended consequences of various acts that<br />

are passed.<br />

BIOGRAPHY<br />

Linda Blackbeard ran her own<br />

interior design and hospitality<br />

businesses before taking up<br />

the task of CEO of the RCCI.<br />

Having started as a receptionist,<br />

she quickly moved through the<br />

ranks and gained experience<br />

in marketing, sales and function<br />

coordination with a large<br />

corporate and then two hotel<br />

groups. Her hospitality business<br />

took her to Zimbabwe, Botswana,<br />

Mozambique and Malawi.<br />

Linda serves on a number of forums,<br />

including being an elected<br />

council member of the South<br />

African Chamber of Commerce<br />

and Industry.<br />

What does the Chamber do to support SMMEs?<br />

One of the Chamber’s main focus areas is the development of SMMEs,<br />

finding opportunities for them, business enhancement with regards<br />

to training, helping with business plans, company registrations, giving<br />

direction to ideas that entrepreneurs might have and actually building<br />

them up so that they can run businesses of their own. Teaching<br />

them to form joint ventures with other small businesses to actually<br />

grow and have an opportunity then to tender for works that may be<br />

available through City of Johannesburg. We promote our local businesses<br />

getting the work that needs to be done here. We are trying<br />

to focus on supporting businesses, especially our small businesses<br />

within our space.<br />

Does the RCCI interact with the municipal government<br />

on issues relevant to business?<br />

The Chamber is represented at the Johannesburg <strong>Business</strong> Forum,<br />

which is a platform to speak at a municipal level with regard to things<br />

like potholes, Pikitup, service delivery, electricity, power outages, etc. We<br />

also sit in the Community Policy Forum Committees and we are active<br />

partners on the committees of LDAC (Local Drug Action Committee),<br />

which is the local organisation driving crime prevention, so we look at<br />

all areas of safety and security for the people within the area.<br />

LINDA BLACKBEARD COURTESY OF OCDMP, A DIVISION OF OWONDO CORPORATE<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong> 74


INTERVIEW<br />

Are your members drawn from very different<br />

sectors, or is there a concentration on<br />

types of businesses?<br />

If you’re a registered business you need to be a member<br />

of the Chamber, there is no particular industry<br />

sector. As long as it’s a company and business with<br />

integrity and it is legal, we will support you and try<br />

to help you wherever we can.<br />

Would it be correct to say that the area<br />

covered by the RCCI has some of the<br />

country’s most dynamic businesses?<br />

The areas we cover form the economic powerhouse<br />

of South Africa. I cannot stress strongly enough that<br />

the actual business hub of Sandton alone is responsible<br />

for decision-making (on signing powers and<br />

approval) of a large number of business transactions<br />

taking place across the country.<br />

Are there particular challenges?<br />

There are challenges, Randburg Chambers is – for<br />

the age of the Chamber – not very well known. Our<br />

biggest battle is to create the awareness that we’re<br />

serious about wanting to help you, serious about<br />

moving you forward, connecting you, engaging on<br />

platforms that bring service to the businesses. By<br />

that I mean: are we sitting on the right committees?<br />

Are we connected to the right people at the City of<br />

Johannesburg? Are we dealing at the right levels of<br />

government? Do we have the correct connectivity<br />

to be able to assist you in the areas of your need?<br />

These are questions we continually ask to improve<br />

our offering. Most of all it’s the members who need<br />

to dictate the integrity of our benefits list and not the<br />

people sitting in the chambers. The businesses out<br />

there need to tell us what their needs are. This way<br />

we can provide a better service for them.<br />

What does the future hold?<br />

With all the amazing initiatives planned and in the<br />

process of actioning - including our unique digital<br />

custom-designed Certificate of Origin programme<br />

for export. <strong>Business</strong>es and members can look forward<br />

to renewed focus, positive opportunities, and<br />

facilitation in the SADC region for business growth<br />

and opportunity. We are also proposing a name<br />

change to incorporate the very large area we now<br />

service.<br />

CONTACT INFO<br />

Physical address: Unit G8 Atrium Terraces,<br />

272 Oak Avenue, Randburg, <strong>Gauteng</strong> 2194<br />

Tel: 086 101 92<strong>18</strong><br />

Fax: 086 212 4407<br />

Email: admin@rcci.co.za<br />

Website: www.rcci.co.za<br />

75 GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong>


INTERVIEW<br />

Advancing economic<br />

transformation<br />

<strong>Gauteng</strong> Black Management Forum Provincial<br />

Chairperson, Langalethu Manqele, outlines<br />

the BMF’s goals.<br />

Langalethu Manqele,<br />

Black Management<br />

Forum <strong>Gauteng</strong> Provincial<br />

Chairperson<br />

BIOGRAPHY<br />

Langalethu Manqele is the<br />

Manager in Equities & Equity<br />

Derivatives at the Johannesburg<br />

Stock Exchange (JSE),<br />

having previously worked for<br />

Nedbank CIB Markets as a<br />

Senior Manager. Langa chairs<br />

the Editorial Committee of the<br />

African Leader, a bi-annual<br />

publication of the BMF. He is a<br />

member of the dti B-BBEE Advisory<br />

Council Sub-Committee<br />

on the Preferential Procurement<br />

Policy Framework Act. He holds<br />

Bachelors Degrees in International<br />

Finance and Investments,<br />

from CIDA City Campus.<br />

What are the main objectives of the Black Management<br />

Forum (BMF)?<br />

The BMF is a thought leadership and a business lobby organisation<br />

focused on the development of managerial leadership and advancement<br />

of socio-economic transformation in South Africa. The BMF<br />

serves as the leading voice of professionals and executives – primarily<br />

black people – in corporate South Africa on matters of workplace transformation.<br />

Our focus has evolved over time to encompass economic<br />

development and trade policy with a strong focus on the creation of<br />

black-owned and managed enterprises.<br />

Are there particular focus areas?<br />

The BMF in <strong>Gauteng</strong> is currently tackling three areas. The first one is an<br />

Enterprise and Supplier Development through a “Routes to Markets”<br />

strategy. At a policy level, we have partnered with the Centre for<br />

Competition and Economic Development (CCRED) to review and<br />

make recommendations on Competition, Trade and Industrial Policy.<br />

The second area is that of Capital Markets; this is our response to the<br />

challenge of capital and therefore of B-BBEE Equity Ownership. We are<br />

in talks with the JSE and the other newly formed small stock exchange,<br />

ZARX. We are negotiating MoUs with both exchanges that will commit<br />

them to helping emerging black businesses raise expansion capital<br />

and, in the process, create more black-owned and managed listing<br />

sponsors and stock-broking firms.<br />

The third and final area of focus is Employment Equity. This is targeted<br />

at arresting the decline of black executives as reported by the<br />

Jack Hammer Report in 2015 and the latest Report of the Commission<br />

of Employment Equity.<br />

What are some of your most recent achievements?<br />

We recently held a successful Policy Conference on the role of industrial,<br />

competition and trade policy in the achievement of inclusive growth.<br />

The dti and the European Union have endorsed the BMF to receive<br />

EUR100 000 funding through the EU-SA Dialogue Facility Fund to<br />

conduct research on the Impact of Foreign Direct Investments from<br />

the EU in South Africa.<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

76


Making a big difference to<br />

a small enterprise<br />

PROFILE<br />

Training at Work benefited from Standard Bank support.<br />

Training at Work is a training and consulting private company established<br />

in 2001. In 2006 the company was converted from a closed<br />

corporate to a limited private company. The company is 100% woman<br />

owned by Patricia Chiloane. Training at Work employs nine full-time<br />

administrative staff members with more on a contract basis.<br />

The Standard difference<br />

Banking advice and support can make a<br />

big difference to a small business starting<br />

out, as Patricia Chiloane, Managing Director<br />

of Training at Work, testifies. “The Small<br />

Enterprise team taught me to have a separate<br />

business account with the personal account,”<br />

she remembers. “I was also advised<br />

about the importance of audited financials<br />

and management accounts in order to keep<br />

business sustainable.<br />

Patricia Chiloane,<br />

Managing Director of<br />

Training at Work.<br />

“They even introduced me to the private banking section. I was told if<br />

I need anything to support the business, I must not hesitate to contact<br />

my business banker.”<br />

When times were tough, Patricia was able to continue to build the<br />

business even though cash flow was a problem. To this day, Training at<br />

Work continues to grow. “We have never said no to business because<br />

of a lack of finance,” says Patricia. An overdraft facility allowed the<br />

young company instead to take on “any challenge because the bank<br />

was there financially”.<br />

“The bank went further by providing us with the <strong>Business</strong> Banking<br />

services. Today we make all banking transaction in the comfort of our<br />

offices. We don’t have to go and queue for long hours; instead the<br />

business banker will come and assist us from our office.<br />

“We appreciate the support of our bank and we hope more SMMEs can<br />

take the opportunity and use it to grow their small business.”<br />

<strong>Business</strong> offering<br />

Training at Work offers<br />

Management, <strong>Business</strong>, Artisanal,<br />

and IT Programmes to young people,<br />

employees and management.<br />

Training programmes help school<br />

leavers, employers, employees<br />

and the unemployed to better<br />

themselves through education<br />

and training, so that they can improve<br />

their social and/or economic<br />

condition.<br />

The consulting service is targeted<br />

at employers, non-government organisations<br />

and governmental bodies.<br />

This service includes: companyspecific<br />

skills programmes, training<br />

workshops and learnerships, custom<br />

training material (accredited<br />

and non-accredited), training programmes<br />

evaluations, impact studies<br />

and surveys, and HR consulting<br />

and competency audits. Training at<br />

Work is accessible throughout the<br />

country through mobile training,<br />

including in rural areas.<br />

Contact information<br />

Address: 15 Leonie Street,<br />

Cnr Rifle Range, Winchester<br />

Hills, Johannesburg<br />

Tel: +27 11 433 93<strong>18</strong><br />

Email:<br />

info@trainingatwork.co.za<br />

Website:<br />

www.trainingatwork.co.za<br />

77 GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong>


LISTING<br />

<strong>Gauteng</strong> Provincial Government<br />

A guide to <strong>Gauteng</strong>’s provincial departments and their MECs.<br />

Office of the Premier<br />

Premier: David Makhura<br />

Physical address: East Wing, 13th Floor, <strong>Gauteng</strong> Provincial Government<br />

Building, 30 Simmonds Street, Johannesburg 2001<br />

Tel: +27 11 355 6000<br />

Fax: +27 11 836 9334<br />

Website: www.gautengonline.gov.za<br />

Department of Agriculture<br />

and Rural Development<br />

MEC: Lebogang Maile<br />

Physical address: Diamond Corner Building, 68 Eloff Street,<br />

Johannesburg 2001<br />

Tel: +27 11 240 2500 | Fax: +27 11 240 2619<br />

Website: www.gdard.gpg.gov.za<br />

Department of Community Safety<br />

MEC: Sizakele Nkosi-Malobane<br />

Physical address: 64 Pritchard Street, Johannesburg 2001<br />

Tel: +27 11 689 3600 | Fax: +27 11 689 3660<br />

Website: www.gautsafety.gpg.gov.za<br />

Department of Cooperative Governance<br />

and Traditional Affairs<br />

MEC: Mr Paul Mashatile<br />

Physical address: 63 Fox Street, Johannesburg 2001<br />

Tel: +27 11 355 4884<br />

Website: www.cogta.gpg.gov.za<br />

Department of Economic Development<br />

MEC: Lebogang Maile<br />

Physical address: Matlotlo House, 94 Main Street, Johannesburg 2001<br />

Tel: +27 11 355 8000 | Fax: +27 11 834 1972<br />

Website: www.ecodev.gpg.gov.za<br />

Department of Education<br />

MEC: Panyaza Lesufi<br />

Physical address: 111 Commissioner Street, Johannesburg 2001<br />

Tel: +27 11 355 0000 | Fax: +27 11 355 0542<br />

Website: www.education.gpg.gov.za<br />

Department of e-Government<br />

MEC: Barbara Creecy<br />

Physical address: Imbumba House, 75 Fox Street, Johannesburg 2107<br />

Tel: +27 11 689 6000 | Fax: +27 11 355 2112<br />

Website: www.egov.gpg.gov.za<br />

Department of Health<br />

MEC: Dr Gwen Ramokgopa<br />

Physical address: Pixley Ka Isaka Seme Street​, Marshalltown,<br />

Johannesburg 2001​<br />

Tel: +27 11 355 3000 | Fax: +27 11 355 3811<br />

Website: www.health.gpg.gov.za<br />

Department of Human Settlements<br />

MEC: Paul Mashatile<br />

Physical address: Bank of Lisbon, 37 Sauer & Albertina Streets,<br />

Marshalltown 2107<br />

Tel: +27 11 355 4000 | Fax: +27 11 355 4000<br />

Website: www.gdhs.gpg.gov.za<br />

Department of Infrastructure Development<br />

MEC: Jacob Mamabolo<br />

Physical address: The Corner House, Cnr Commissioner & Sauer<br />

Streets, Marshalltown 2107<br />

Tel: +27 11 355 5855 | Fax: +27 11 355 5012<br />

Website: www.did.gpg.gov.za<br />

Department of Roads and Transport<br />

MEC: Dr Ismail Vadi<br />

Physical address: 13th Floor, Sage Life Building, 41 Simmonds Street,<br />

Johannesburg 2001<br />

Tel: +27 11 355 7000<br />

Website: www.roadsandtransport.gpg.gov.za<br />

Department of Social Development<br />

MEC: Nandi Mayathula-Khoza<br />

Physical address: Thusanong Building, 11th Floor, 69 Commissioner<br />

Street, Johannesburg 2001<br />

Tel: +27 11 355 7600 | Fax: +27 11 355 7753<br />

Website: www.socdev.gpg.gov.za<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

78


LISTING<br />

Department of Sport, Arts, Culture<br />

and Recreation<br />

MEC: Faith Mazibuko<br />

Physical address: 35 Rissik Street, Surrey House, Johannesburg 2001<br />

Tel: +27 11 355 2500 | Fax: +27 11 355 2505<br />

Website: www.sacr.gpg.gov.za<br />

Treasury<br />

MEC: Barbara Creecy<br />

Physical address: 75 Fox Street, Imbumba House,<br />

Johannesburg 2107<br />

Tel: +27 11 227 9000<br />

Web: www.treasury.gpg.gov.za<br />

<strong>Gauteng</strong> Local Government<br />

A guide to metropolitan, district and local municipalities in <strong>Gauteng</strong> Province.<br />

CITY OF JOHANNESBURG<br />

METROPOLITAN MUNICIPALITY<br />

Physical address: Metropolitan Centre, 1st Floor, Council Chamber Wing,<br />

158 Loveday Street, Braamfontein<br />

Tel: +27 11 407 7557<br />

Fax: +27 11 339 5704<br />

Website: www.joburg.org.za<br />

CITY OF TSHWANE<br />

METROPOLITAN MUNICIPALITY<br />

Physical address: Nunitoria Building, cnr Madiba and Lilian Ngoyi<br />

streets, Pretoria<br />

Tel: +27 12 358 4900 | Fax: 086 732 5458 (SA only)<br />

Website: www.tshwane.gov.za<br />

EKURHULENI METROPOLITAN<br />

MUNICIPALITY<br />

Physical address: Cnr Queen and Cross streets, Germiston<br />

Tel: +27 11 999 0906 | Fax: +27 11 999 1564<br />

Website: www.ekurhuleni.gov.za<br />

SEDIBENG DISTRICT MUNICIPALITY<br />

Physical address: Cnr Beaconsfield and Leslie streets, Vereeniging<br />

Tel: +27 16 450 3017<br />

Fax: +27 16 421 3<strong>18</strong>2<br />

Website: www.sedibeng.gov.za<br />

Emfuleni Municipality<br />

Tel: +27 16 950 5452<br />

Fax: +27 16 950 5001<br />

Website: www.emfuleni.gov.za<br />

Lesedi Municipality<br />

Tel: +27 16 340 4314<br />

Fax: 086 601 9837 (SA only)<br />

Website: www.lesedilm.co.za<br />

Midvaal Municipality<br />

Tel: +27 16 360 7400<br />

Fax: +27 16 362 2794<br />

Website: www.midvaal.gov.za<br />

WEST RAND DISTRICT MUNICIPALITY<br />

Physical address: Cnr Sixth and Park streets, Randfontein<br />

Postal address: Private Bag X033, Randfontein 1760<br />

Tel: +27 11 411 5000<br />

Fax: +27 11 693 7833<br />

Website: www.wrdm.gov.za<br />

Merafong City Municipality<br />

Tel: +27 <strong>18</strong> 788 9500<br />

Fax: +27 <strong>18</strong> 787 2146<br />

Website: www.merafong.gov.za<br />

Mogale City Municipality<br />

Tel: +27 11 951 2000<br />

Fax: +27 11 953 4571<br />

Website: www.mogalecity.gov.za<br />

Rand West City Muncipality<br />

Tel: +27 11 411 0000<br />

Fax: +27 11 693 1736<br />

Website: www.randwestcity.co.za<br />

79 GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong>


LISTING<br />

INDEX<br />

Black Management Forum (BMF).............................................................................................................................................76<br />

DRA Projects........................................................................................................................................................................................ 69<br />

Draw the Line <strong>Business</strong> Solutions.......................................................................................................................................... 59<br />

Ekurhuleni Metropolitan Municipality................................................................................................................................ IFC<br />

Hoogland Health Hydro............................................................................................................................................................. . 55<br />

Indaba Hotel, Spa & Conference Centre ............................................................................................................................. 56<br />

Masisizane Fund................................................................................................................................................................................ 70<br />

Nedbank....................................................................................................................................................................................... 29 - 35<br />

Old Mutual.................................................................................................................................................................................. 36 - 39<br />

Randburg Chamber of Commerce and Industry (RCCI).................................................................................... ....... 74<br />

Selfmed........................................................................................................................................................................................ 40, OBC<br />

Small Enterprise Development Agency (Seda) .............................................................................................................. 72<br />

Standard Bank................................................................................................................................................. 7, 9, 65 - 67, 77, IBC<br />

Tshwane Economic Development Agency (TEDA) ....................................................................................................... 2<br />

Unemployment Insurance Fund (UIF)...................................................................................................................................... 5<br />

Zimile Consulting Engineers ..................................................................................................................................................... 24<br />

GAUTENG BUSINESS <strong>2017</strong>/<strong>18</strong><br />

80


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