Gauteng Business 2017-18 edition

christoffscholtz

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 EDITION

THE GUIDE TO BUSINESS AND

INVESTMENT IN GAUTENG PROVINCE

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Turbocharging

the regional economy

A new identity for the City of Ekurhuleni is being forged

out of the towns and urban nodes surrounding Africa’s biggest

and busiest airport, OR Tambo International Airport.

The airport is the epicentre of Africa’s first Aerotropolis,

which will set it apart from any other South African city

and turbocharge the regional economy.

The city has prime residential estates, glitzy entertainment

venues, mega shopping malls, lively townships,

historical villages, good schools, recreational facilities and

wide-open spaces.

Ekurhuleni is a digital city and is investing in digital

infrastructure that will streamline the way it delivers services

to the community, including smart grids, payment

gateways, e-learning and e-health systems, and closedcircuit

TVs to improve safety and security.

Ekurhuleni has long been the manufacturing hub

of the country and it is building on this history to create

a smart city that will underpin the new economic

growth trajectory. The city boasts a world-class transport

network, telecommunications and energy grid, a

youthful citizenry and strong financial position. Its connectivity

across rail, road and air is significant – with the

Gillooly’s Interchange being the busiest in the Southern

hemisphere, and Germiston railway hub is one of the

busiest on the continent.

The City is being developed through a series

of strategic mixed-used urban developments

and transformational projects like the GreenReef

Mega-project, S&J Industrial Estate, Glen Gory,

Leeuwpoort Housing Development, TwentyOne Industrial

Park, Carnival Junction, Lordsview Industrial Park and the

Riverfields R21 development, taking shape along the

R21 Albertina Sisulu Highway which links Ekurhuleni to

Pretoria. And the City has the infrastructure to support

investments like Prasa-Gibela, which will see the building

and maintenance of 600 new trains for South Africa’s rail

commuter network over the next two decades.

Over and above this there are also a number of mega

housing projects that are being planned, as well as the

redevelopment of Germiston into an administrative headquarters

for the City, with other precincts following a

similar path. Partnership between the public and private

sector will be important in enabling these developments.

City planners are expanding the horizon that will

see Ekurhuleni blossom into a prosperous region for all

its citizens.


A city so good

you’ll want to invest in it.

live | play | invest

Aerotropolis City

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

busiest airport on the continent. The City is also considered the manufacturing hub

of the country, which boasts a significant logistics corridor along the R21 highway and

an extensive transport network across rail, road and air.

Come invest in Ekurhuleni, the Aerotropolis City.


The Vision and Mission

The Tshwane Economic Development Agency

The Vision and Mission

The Tshwane Economic Development Agency SOC Ltd

(TEDA) is a municipal entity of the Tshwane Metropolitan

Municipality (CoT).

VISION

TEDA strives to be a catalyst for economic growth and

development to position the City of Tshwane as a globally

competitive capital city.

MISSION

The mission of Tshwane Economic Development Agency

is: To provide integrated and innovative economic

development solutions through investment promotion

and funding, programme management and property

management.

SERVICE OFFERINGS

• Investment promotion and aftercare

• Export development and promotion

• Project management and development facilitation

CITY OF TSHWANE – AFRICA’S LEADING

CAPITAL CITY

The City of Tshwane is a vibrant, diverse and modernising

capital city. As the administrative seat of the South African

government and the birthplace of South Africa’s democracy,

it is home to over 130 foreign embassies and missions. The

metro was established in 2000 and has a population of

3.1-million.

ECONOMIC OVERVIEW

• GVA of R245.1-billion

• Contributes 25% to the Gauteng economy

• Accounts for 9% of the South African economy

• Biggest Free WiFi rollout in Africa

• Highest economic growth among all SA metros,

averaging a growth rate of 3.9% per annum to 2015

• Third-largest Metropolitan Municipality in the world in

terms of land mass

“LEVERAGING RESEARCH AND

INNOVATION TO PROMOTE

GROWTH.”

WHY INVEST IN TSHWANE

RESEARCH AND DEVELOPMENT HUB

Tshwane has an impressive concentration of academic,

research, technology and scientific institutes. An estimated

60% of all research and development in South Africa is

conducted in Tshwane by institutions such as Armscor, the

Medical Research Council, the Council for Scientific and

Industrial Research (CSIR), the Human Sciences Research

Council and educational institutions such as the Tshwane

University of Technology, the University of South Africa and

the University of Pretoria.

CENTRAL LOCATION

Tshwane is strategically positioned in the centre of the most

prosperous part of South Africa. Located a mere 30km from

Africa`s financial hub, Sandton, and bordering three of South

Africa`s provinces that lead directly into the SADC, Tshwane

offers easy access to a growing market of over 250-million

people in the fastest-growing regional economic bloc.


OUTSTANDING INFRASTRUCTURE

Efficient supply of water, power and bulk infrastructure

coupled with favourable climatic conditions and affordable

industrial sites and office space make Tshwane very attractive

to prospective investors.

EASE OF DOING BUSINESS

Recognising the importance of efficient and cost-effective

business operations, the City of Tshwane is continuously

looking at improving its business and investment climate.

COMPETITIVE INDUSTRIES

Tshwane’s reputation in automotive engineering is well

established. Home to motoring giants Nissan, BMW, Ford and

Tata, Tshwane accounts for 40% of South Africa’s automotive

production. Highly regarded for its manufacturing,

technology, electronics, defence design and construction

sectors, Tshwane offers many business and investment

opportunities in one of the city`s 16 mixed manufacturing

industrial estates.

Focus investment sectors

Aerospace & Defence Technologies

Tshwane is the key node in aerospace and defence

technology development in South Africa. The foundation of

the aerospace cluster is the Department of Defence and Air

Force headquarters. Industry leaders such as Armscor, the

CSIR, Denel Dynamics, Aerosud and Centurion Aerospace

Village are key role-players in the cluster.

access to transport infrastructure. The Automotive Industry

Development Centre contains a conference centre and a

retail centre. With a turnover of about R30bn in 2012 and

contributes 3.3% to the City’s economy, the automotive and

components industry constitutes about 25% of Tshwane’s

manufacturing output.

The Vision and Mission

Agriculture & Agro-processing

Although agriculture makes up an insignificant contribution

to Tshwane’s GDP, Region 7 has some of the best farming land

in Gauteng. TEDA has packaged investment opportunities

including an envisaged cotton cluster and Agro-Processing

Hub. The sector is strengthened by educational and research

facilities such as Onderstepoort Veterinary Institute (VRI) and

the Agricultural Research Council (ARC).

The Vision and Mission

Automotive & Components

The automotive and components industry in South Africa is a

major contributor to economic activity and export earnings,

with the heart of the industry located in the City of Tshwane.

This includes the Automotive Supplier Park (ASP) in Rosslyn

(130ha) which is located close to key vehicle manufacturers

including BMW, Ford, Nissan, Volvo and Tata, with excellent

Business Process Outsourcing & Offshoring

As the administrative as well an academic centre, the city’s

knowledge and information industry is well-developed,

which makes Tshwane an ideal location for BPO investments.

An established BPO sector includes one of the largest shared

services centre for the Barclays Africa operation The Gauteng

Growth and Development Agency is developing a BPO&O

Park at Hammanskraal.

Tourism

The City of Tshwane attracts business, leisure as well as

shopping, medical and sports tourism. The city also has and

is further developing a range of major conference facilities

and hotels. Cultural and heritage sites together with facilities

such as nature reserves and parks add further variety. Two

key project intended to further develop the sector are

the Mandela Statue and a plan to build a theme park and

waterfront at Cullinan/Bronkhorstspruit.

Green Economy

Tshwane aims to become a resilient, resource-efficient

and leading low-carbon economy by 2030. This translates

into opportunities, particularly in power and electricity

generation, renewables (including solar and wind

technologies), green component manufacturing, related

downstream services and general greener production

and transport practises, green agriculture and waste

management opportunities, and ecotourism.

Contact Details:

5th Floor, Anker Building, 1279 Mike Crawford Road, Centurion CBD

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

www.teda.org.za


CONTENTS

CONTENTS

Gauteng Business 2017/18 Edition

Introduction

Foreword8

A unique guide to business and investment in Gauteng.

Special features

Regional overview 10

Gauteng’s metros are driving growth and investment.

Unlocking the door for inner-city investment

in Johannesburg 16

High-rise, low-cost accommodation could be transformative.

New city-like developments are springing

up in Gauteng 20

Infrastructure spending is on the increase.

Going smart 26

A partnership with a Danish city promises smart rewards

for the City of Tshwane.

South African economy at a glance 28

Key statistics on the South African economy.

Sector contents

Agriculture44

Good rains bring good news for Gauteng farmers.

Mining46

Gauteng is the home of mining and minerals research.

Manufacturing48

Gauteng leads the nation in manufacturing.

GAUTENG BUSINESS 2017/18

4


UIF SAVING JOBS

THROUGH SOCIALLY

RESPONSIBLE INVESTMENTS

The National Development Plan is a blueprint serving as

a guideline to government departments and state entities

on how they can play a role in government wide efforts

of creating decent work, reducing unemployment and

poverty. The Unemployment Insurance Fund is among

the leading state entities in the implementation of the

provisions of the NDP to address the slow economic

growth, unemployment and poverty in South Africa.

The UIF social investment mandate ensures that,

additional to earning good financial returns, investments

must be supportive of long term economic, social and

adhere to sustainable environmental outcomes. The

investments must also yield a good social return for the

country. These investments have sustained 6 860 jobs of

which 3 024 are permanent, 3 836 are temporary/seasonal

and 195 are new jobs created during the financial year

ending in March 2016.

UIF INVESTMENTS IN RENEWABLE ENERGY

The UIF investments are contributing to the energy

requirements of South Africa and the investments in the

renewable energy sector provides a total capacity of 192

megawatt of electricity of which 117 megawatt is solar

energy and 27 megawatt is wind generated electricity.

The De Aar project is a shining example of the UIF energy

investments and this project produces 90 megawatt of

electricity and was completed in April 2016. The solar plant

in the area generates enough electricity to power 15 000

houses. Another mainstay project is the Phakwe Group ran

projects undertaken in the Northern and Eastern Cape.

INVESTMENT IN FOOD SECURITY

The UIF investments in this regard are undertaken under

the banner of the UIF Agri-Fund in partnership with

Futuregrowth and Day Breaker Poultry Project. The UIF

Agri-Fund has invested in 4 farms situated in Mable Hall

in Limpopo. One of the farms is a cash crop farm spanning

450 hectares. The farm in the last financial year produced

235 hectares of white maize, and cotton was planted in an

area covering 28 hectares.

A further three farms are located in the Saron area in the

Western Cape. In this project a total of 178 hectares has

been used to plant grapes, 37 hectares has been used to

pant citrus fruit. Furthermore, there is potential to plant an

additional 92 hectares of grapes. The Daybreaker Poultry

project operates in Gauteng, Limpopo and Mpumalanga

and the combined projects have facilities to grow 1.6

million broiler chickens.

INVESTMENTS IN HEALTH CARE FACILITIES

The UIF concluded two investments in this regard that

include a BEE hospital manager, Busamed to build a

private hospital in Modderfontein and Fund Manager

Razorite Heatlhcare that focus on the provision of

affordable heathcare facilities that include rehabilitation

and sub-acute centres.

The Modderfontein hospital is a 220 hospital bed with subacute

facilities. This hospital is under construction. While

the RH Fund Manager has concluded seven investments

that include:

• Busamed with four hospital facilities

• HealthMed with two facilities

INVESTMENTS IN EDUCATION

UIF has invested in three investments that play a role

to unlock access to education. The investments were

concluded with Eduloan – an organisation that provides

financial support to tertiary students and South Point and

Educor organisations that provide student accommodation.

By March 2016, Eduloan had disbursed about R446 986.64

benefiting 34 047 students, whiles South Point provided

about 10 000 student with accommodation.

UIF INVESTMENTS IN ENTERPRISE DEVELOPMENT

The UIF has concluded two investments with the aim of

supporting small and medium enterprises. In this regard

the PIC on behalf of UIF has concluded investment deals

with Musa Capital and TOSACO.

The investments will support more than 250 SMMEs across

various sectors inclusive of agriculture and affordable

housing. Musa Capital for example has a supply chain of

over 250 SMME’s that have facilitated the creation of 2 500

jobs.

TOSACO investments is planning to advance capital to

young black entrepreneurs who aspire to own and manage

Total Filling stations around the country.

For more information:

Call: 0800 843 843 or

visit: www.labour.gov.za


CONTENTS

Automotive and components 50

The South African Auto Master Plan has been unveiled.

Food and beverages 51

Gauteng’s big market is attractive to producers.

Tourism52

Major new investments in tourism are under way.

Business services 58

South African consulting is a leader in Africa.

Education and training 60

The private sector is growing fast.

ICT62

Financial institutions are investing in ICT.

Banking and financial services 63

Newcomers are challenging the established players.

Development finance and SMME support 68

Public and private funding is available for entrepreneurs.

Government

Gauteng Provincial Government 78

A guide to Gauteng’s provincial departments

and their MECs.

GAUTENG PROVINCE

Gauteng Local Government 79

A guide to metropolitan, district and local municipalities

in Gauteng Province.

N1

Limpopo

References

North West

Hammanskraal

Mpumalan

Sector contents 42

Overview of the main economic sectors of Gauteng.

N1

Index80N4

Map

Gauteng provincial map. 15

GAUTENG BUSINESS 2017/18

6

Cullinan

PRETORIA Mamelodi

Ekangala

Zithobeni

N4

Centurion

N4

Atteridgeville

Bronkhorstspruit

Irene

N1

N14

R21

Magaliesburg

Midrand

Muldersdrift

Tembisa

Sandton Alexandra

Krugersdorp Randburg Kempton Park

Roodepoort

Isando Benoni

Edenvale

N14 Randfontein

N12

JOHANNESBURG

Kagiso

Boksburg Daveyton

Mohlakeng

Germiston

Wattville Brakpan

Soweto

Alberton

Bekkersdal

Reiger Park KwaThema

Lenasia

Katlehong

N12

Springs

Westonaria

Vosloorus

N1 Tokoza Tsakane Duduza

Nigel

R59

N3

Heidelberg

Evaton

Ratanda

Meyerton

Sebokeng

Boipatong Vereeneging

Bophelong

Vanderbijlpark Sharpeville

Devon

Mpumalang


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FOREWORD

Gauteng Business

A unique guide to business and investment in Gauteng.

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.

The print journal is complemented by the ebook edition at

www.gautengbusinessguide.co.za, and updates, business news

and event listings can be found on the monthly Business South Africa

e-newsletter, with a circulation of over 30 000.

Global Africa Network Media (www.globalafricanetwork.com),

the publisher of Gauteng Business, specialises in business-to-business

print and electronic publications, producing a series of regionspecific,

annual print journals. Every province in South Africa is

covered by this unique range of journals and websites, complemented

by a national business guidebook, South African Business.

Chris Whales

Publisher, Global Africa Network Media

Email: chris@gan.co.za

DISTRIBUTION

Gauteng Business is distributed internationally on outgoing and

incoming trade missions; to foreign offices in South Africa’s

main trading partners; at top national and international events;

through the offices of foreign representatives in South Africa;

as well as nationally and regionally via chambers of commerce,

tourism offices, trade and investment agencies, provincial government

departments, municipalities, airport lounges and

companies.

CREDITS

Publisher: Chris Whales

Publishing director:

Robert Arendse

Editor: John Young

Online editor: Christoff Scholtz

Art director: Brent Meder

Design: Colin Carter

Production: Lizel Olivier

Ad sales: Sydwell Adonis, Nigel

Williams, Gavin van der Merwe,

Sam Oliver, Gabriel Venter,

Siyawamkela Sthunda, Vanessa

Wallace, Jeremy Petersen and

Reginald Motsoahae

Managing director: Clive During

Administration & accounts:

Charlene Steynberg and

Natalie Koopman

Distribution & circulation

manager: Edward MacDonald

Printing: FA Print

PUBLISHED BY

Global Africa Network Media (Pty) Ltd

Company Registration No: 2004/004982/07

Directors: Clive During, Chris Whales

Physical address: 28 Main Road, Rondebosch 7700

Postal address: PO Box 292, Newlands 7701

Tel: +27 21 657 6200 | Fax: +27 21 674 6943

Email: info@gan.co.za | Website: www.gan.co.za

Member of the Audit Bureau of Circulations ISSN 1990-6021

COPYRIGHT | Gauteng Business is an independent publication published

by Global Africa Network Media (Pty) Ltd. Full copyright to the

publication vests with Global Africa Network Media (Pty) Ltd. No part

of the publication may be reproduced in any form without the written

permission of Global Africa Network Media (Pty) Ltd.

PHOTO CREDITS | Zimile Consulting Engineeers, Scaw Metals, Gauteng

Tourism, Rebecca Hearfield, Paragon Architects, Andrew Bell, Anglo

American, SciBono, Thinkstock, Wikimedia, and SA Tourism.

DISCLAIMER | While the publisher, Global Africa Network Media (Pty)

Ltd, has used all reasonable efforts to ensure that the information contained

in Gauteng Business is accurate and up-to-date, the publishers

make no representations as to the accuracy, quality, timeliness, or

completeness of the information. Global Africa Network will not accept

responsibility for any loss or damage suffered as a result of the use of or

any reliance placed on such information.

GAUTENG BUSINESS 2017/18

8


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A REGIONAL OVERVIEW OF

GAUTENG

Gauteng’s metros are driving growth and investment.

By John Young

Gauteng province covers just 1.4% of South Africa’s land mass but it produces about a

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

the African continent. Whereas mining used to account for Gauteng’s dominance of the

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

manufacturing, commerce, IT and media among them.


SPECIAL FEATURE

The Bureau of Market Research (BMR) has shown

that Gauteng accounts for 35% of total household

consumption in South Africa.

The leading economic sectors are finance, real

estate and business (21% of provincial GDP), manufacturing

(16.5%), government services (16.3%) and

wholesale, retail, motor trade and accommodation

(12.8%). The so-called creative industries (including

advertising and the film sector) employ upwards

of 180 000 people and contribute more than

R3.3-billion to the provincial economy. The provincial

government’s Economic Development Plan sees

this sector as one of the key drivers of future growth.

In the provincial capital, Johannesburg, financial

services and commerce predominate. The JSE,

Africa’s largest stock exchange, is situated in the

heart of Johannesburg’s business district, Sandton.

Tshwane (which includes Pretoria) is home to

many government services and is the base of the

automotive industry and many research institutions.

The Ekurhuleni metropole has the largest concentration

of manufacturing concerns, ranging from

heavy to light industry, in the country. The western

part of the province is concerned mainly with mining

and agriculture, while the south has a combination

of maize farming, tobacco production and

the heavy industrial work associated with steel and

iron-ore workings.

Gauteng is not just an important centre of economic

activity, it is also an important launching pad

for local and international businesses to enter the

African market. The country’s biggest airport, OR

Tambo International Airport, is at the core of the

province’s logistical network. Other airports include

Rand Airport (Germiston), Wonderboom (Pretoria)

Lanseria and Grand Central (Midrand).

The Ekurhuleni Metropolitan Municipality plans

on building an “aerotropolis” in partnership with the

provincial government and private investors. The

intention is to link the airports of OR Tambo and

Lanseria and expand logistics capabilities.

The Gauteng Division of the High Court of South

Africa (which has seats in Pretoria and Johannesburg)

is a superior court with general jurisdiction over

the province. Johannesburg is also home to the

Constitutional Court, South Africa’s highest court,

and to a branch of the Labour Court and the Labour

Appeal Court.

The province has several outstanding universities,

and the majority of South Africa’s research

takes place at well-regarded institutions such as

the Council for Scientific and Industrial Research

(CSIR), the South African Bureau of Standards

(SABS), Mintek, the South African Nuclear Energy

Corporation (NECSA), the Human Sciences Research

Council (HSRC) and several sites where the work

of the Agricultural Research Council (ARC) is done.

Geography

The province is located in the Highveld region of

South Africa, approximately 1 700 metres above

sea-level. It is a landlocked province, surrounded

by four other provinces.

The Vaal River forms a natural border with the

Free State, which lies south of Gauteng, while the

North West province is located to the west, Limpopo

GAUTENG BUSINESS 2017/18

12


to the north and Mpumalanga to the east. The geography

of Gauteng includes low parallel ridges,

mountain ranges and undulating hills.

Johannesburg is the capital of the Gauteng

province, while Pretoria is the administrative capital

of South Africa. Other major urban areas include

Roodepoort and Krugersdorp to the west of

Johannesburg; and Germiston, Springs, Benoni and

Brakpan to the east. Soweto, renowned as a focal

point in the struggle against apartheid and home

to more than two-million people, is situated south

of Johannesburg.

Investment

Gauteng is a national leader in attracting foreign

direct investment (FDI). In the period 2014-16, the

province attracted R66-billion. The Gauteng Growth

and Development Agency (GGDA) has a specialised

subsidiary, the Gauteng Investment Centre, which

acts as a “one-stop shop” for potential investors

looking for advice and support.

Efforts are also being made to improve the

regional economy by identifying blockages and

shortcomings. Researchers from the universities of

Johannesburg and Pretoria (through the Gordon

Institute of Business Sciences) are examining employment

rates, empowerment policies and the

SPECIAL FEATURE

export value chain. At the same time, the Gauteng

Innovation Hub is leading a process to bring innovation

and research to the fore in economic

policy-making and planning. Partners include the

Council for Scientific and Industrial Research (CSIR),

the University of the Witwatersrand and the Vaal

University of Technology.

Gauteng City Region

Provincial planning is increasingly being done along

Gauteng City Region” lines, whereby the primacy of

economies of the cities and towns of the province

is acknowledged.

In June 2016, the Gauteng City Region Economic

Indaba was attended by all the mayors of the region,

the national Minister of Finance and was addressed

the South African Deputy President. Gauteng

Premier David Makhura gave notice of “how we

can unlock, jump-start and reignite a sustainable

and inclusive growth trajectory for key sectors of

our provincial economy”.

Individually, the biggest Gauteng cities contribute

to the national GDP as follows: Johannesburg

(15%), Tshwane (9%) and Ekurhuleni (7%).

At the indaba, the following development corridors

of the City Region were identified, each with

its own industries and comparative advantages:

13 GAUTENG BUSINESS 2017/18


SPECIAL FEATURE

• City of Johannesburg, Central Development

Corridor: provincial capital, finance, services,

ICT and pharmaceutical industries, green and

blue economy.

• City of Ekurhuleni, Eastern Development Corridor:

manufacturing, logistics and transport hub.

• City of Tshwane, Northern Development Corridor:

national administrative capital, automotive sector,

research, development, innovation and knowledge-based

economy, tourism, agri-processing.

• West Rand District, Western Development

Corridor: transitioning mining economy. A new

diverse economy to be created around tourism

(Maropeng World Heritage Site), agriculture and

agri-processing, Lanseria Airport City, renewable

energy industries.

• Sedibeng District, Southern Development

Corridor: steel industry in decline. A new economy

to be based on entertainment and tourism (Vaal

River City), logistics, agri-processing and urban

agriculture.

Opportunities for the private sector were mentioned

in connection with several aspects of the

City Region indaba, not least of which was the necessity

for infrastructure investment. Neither the

central government nor provincial and local government

has sufficient resources to cover what the

provincial government has estimated is needed

in the Gauteng province in the 15 years to 2030 –

R1.3-trillion. A 15-year Gauteng Infrastructure Master

Plan has been adopted but it is hoped that multiple

sources of funding will see the plan succeed in areas

such as the provision of water, broadband connectivity,

public transport, energy and the reshaping of cities to

accommodate citizens in a better way than was the

case under apartheid.

A World Bank report has shown that a 10% increase

in infrastructure spending results in a 1% growth

in GDP.

Ekurhuleni is putting considerable resources into

infrastructure improvement. With a corridor-based

masterplan, the aim is to promote industrial activity.

The corridors (and focus areas) are:

• Thami Mnyele: transport, BRT, M&T Development

and Plumbago Industrial Park

• OR Tambo Aerotropolis: creative sector, technology,

research and development, logistics

• Thelle Mogoerane: logistics, Carnival Junction, OR

Tambo inland port, Prasa rolling stock manufacturing

facility (Prasa has signed a R51-billion contract

with Gibela consortium to deliver 600 trains).

The city budget for 2016/17 has allocated

R45-million for the revamping of four industrial

parks in Labore and Wadeville. Other projects and

investments include:

• Riverfields mixed use estate

• Green Reef Innovation District

• Badenhorst Estate

• Recapitalisation of the Springs Fresh Produce

Market (R110-million)

• Infrastructure to support agri-processing and distribution

of agricultural products (R80-million)

• R269-million over three years to Township

Economy Strategy.

The nine towns of Ekurhuleni are

being connected by the new Bus

Rapid Transit system (Harambee).

The City of Johannesburg’s

good credit record allowed it

to borrow R3.3-billion for infrastructure

expenditure in 2016. In

2014/15 a surplus of R3.9-billion

was achieved and the city spent

94% of its capital budget, or R10.8-

billion. In 10 years Johannesburg

has raised more than R100-billion

for infrastructure.

Tshwane is planning a series of

transformative infrastructure and

GAUTENG BUSINESS 2017/18

14


property developments, including expanding the

Bus Rapid Transport System, Government Boulevard,

Tshwane House, Times Square, the Nelson Mandela

Development Corridor, the West Capital project and

the African Gateway.

Together with the three large metropolitan

PROVINCEmunicipalities, Gauteng also has two district

municipalities.

Sedibeng District Municipality

Towns: Sebokeng, Heidelberg, Sharpeville,

Vereeniging, Vanderbijlpark

Local municipalities are Emfuleni, Midvaal and

Lesedi. The Vaal University of Technology and the

North North-West WestUniversity’s Vaal campus are located in

Sedibeng. The Emfuleni Local Municipality (including

Evaton, Sharpeville, Vanderbijlpark Hammanskraal and Vlakplaas)

is at the core of the Vaal Triangle, which in turn is

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

Metal products, machinery and equipment are N1

made here. ArcelorMittal has been a major employer

in Vanderbijlpark since 1947.

Cullinan

PRETORIA Mamelodi

N4

N4

Centurion

N4

Atteridgeville

Bronkhorstspruit

North WestIrene

N1

N14

R21

Hammanskraal

Magaliesburg

Midrand

Muldersdrift

Tembisa

Sandton Alexandra

N1

Krugersdorp Randburg Kempton Park

Roodepoort

Isando Benoni

Edenvale

N14 Randfontein

N12

JOHANNESBURG

Kagiso

Boksburg DaveytonCullinan

Mohlakeng

Germiston

Wattville PRETORIA Brakpan Mamelodi

Soweto

N4 Alberton

N4

Bekkersdal

Reiger Park KwaThema

Centurion

Lenasia

Katlehong

N12

Atteridgeville Springs

Westonaria

Vosloorus

Irene

N1 Tokoza Tsakane N1 Duduza

N14

R21 Nigel

Magaliesburg

R59

Midrand

Muldersdrift N3 Tembisa

Sandton Alexandra Heidelberg

Krugersdorp Randburg

Evaton

Ratanda Kempton Park

Roodepoort

Isando Benoni

Edenvale

N14 Randfontein Meyerton

N12

Sebokeng

JOHANNESBURG

Kagiso

Boksburg Daveyton

Vereeneging

Mohlakeng

Germiston

Boipatong

Wattville Brakpan

Soweto

Alberton

Bekkersdal

Reiger Park KwaThema

Bophelong

Lenasia

Katlehong

N12

Springs

Westonaria

Vosloorus

Vanderbijlpark Sharpeville N1 Tokoza Tsakane Duduza

Nigel

R59

N3

Heidelberg

Evaton

Ratanda

N1

Meyerton

Sebokeng

Boipatong Vereeneging

Bophelong

Vanderbijlpark Sharpeville

Free State

N1

Free State

N1

Limpopo

N

SPECIAL FEATURE

Heidelberg produces bacon and tobacco: Eskort

and British American Tobacco are the two major

companies in the area. The Midvaal area has agriculture

and tourism as its two main economic activities

and the city of Meyerton is the site of newly built,

multi-million-rand Heineken brewery . The Klip River

at Henley-on-Klip and the Vaal Dam are major tourist

attractions, while ecotourism opportunities have the

potential to grow. The Suikerbosrand Nature Reserve

is a prime regional asset.

West Rand District Municipality

Towns: Randfontein, Roodepoort, Krugersdorp,

Westonaria

Local municipalities are Merafong City, Mogale City

and West Rand City. Both the N12 and N14 highways

pass through this area which allows for a great deal

Mpumalanga

of commuter traffic into the Johannesburg CBD.

The West Rand is the area of Gauteng where mining

has retained its strongest presence. Large-scale

Limpopo commercial farming also takes place. Randfontein

Local Municipality is where the world’s deepest

Ekangala gold mine was dug. To the

Zithobeni

south, mining contributes

75% to Westonaria Local

Municipality’s economy. An

Mpumalanga industrial park is planned to

N12

assist in the process of diversifying

the economy.

Mogale City Local

Ekangala Municipality is very much

Zithobeni

N4

the economic driver of the

Bronkhorstspruit

Devon

district, including as it does

N17

the town of Krugersdorp.

N12

Krugersdorp has considerable

manufacturing capacity

and has a motor-sports racing

Mpumalanga track that attracts international

Devon

N17 drag-racing events. Tourism

in the district is mostly located

within the surrounds of

Mpumalanga

Mogale City. Significant tourist

attractions include the Cradle

of Humankind, the Magalies

Motorway

Meander, the Sterkfontein

Main Road

N Railway

caves and the Krugersdorp

Game Reserve.

N3

Motorway

Main Road

Railway

15 GAUTENG BUSINESS 2017/18

.

.


Unlocking the door for inner-city

investment in Johannesburg

High-rise, low-cost accommodation could be transformative.

Sometimes fast, sometimes slow. Government-led

at times, on other occasions initiated

by private investors. That’s the story

of the regeneration of Johannesburg’s

inner city. It is a story that has had notable successes

along the way, but progress has been sporadic and

efforts have mostly been concentrated on quite

small parts of the city.

The Newtown urban renewal project included

a focus on the arts at Mary Fitzgerald Square; the

building of the Nelson Mandela Bridge in 2003 improved

linkages and gave the city a cool symbol;

the Johannesburg Development Agency installed

156 public art works, cleaned up squares and installed

street furniture. More recently, the Maboneng

Precinct on the eastern edge of the CBD has become

a busy mixed-use zone with a focus on the arts,

design and entertainment.

Now there is a drive to transform the central business

district (CBD) in a concerted and coordinated

way. The city’s new mayor, Herman Mashaba, said

of Johannesburg in his “100 Days” address that, “It

can become a model for a modern, post-apartheid,

South African city. It has the ability to produce a

vibrant socio-economic mix of high-rise, low-cost

and affordable housing for our people.”

Mashaba represents the Democratic Alliance

which has been running Johannesburg as the leader

of a coalition of parties since local government

elections in 2016. A notable entrepreneur himself,

Mashaba strongly believes that private businesses

and developers are ready and willing to invest in

downtown Johannesburg. “These are the people

with the balance sheets that can turn this city into

a construction site within a matter of months,”

says Mashaba.

The Premier of the Gauteng Province, David

Makhura, is a member of the African National

Congress which continues to be the majority party

at provincial and national level. In his State of the

Province address, Makhura said, “We are in agreement

with Executive Mayor Herman Mashaba that

the renewal of the Johannesburg inner city has to

be undertaken urgently in partnership with the

province, the city and the private sector.”

Political agreement of this sort is rare, so the chances

of success for Johannesburg are better than they

would be in a fractious political climate.

GAUTENG BUSINESS 2017/18

16


When the ANC led

the municipality, an

Inner City Roadmap

underpinned longterm

planning for

revitalising the CBD

in response to a number

of firms relocating

their offices to

Sandton, Rosebank

and Randburg. A start

was made via a number

of measures: CCTV

security cameras were

installed, the bus rapid

transport system

(Rea Vaya) was introduced

and a number

of formerly derelict

or hijacked buildings

were converted

to blocks of flats by

the Johannesburg

Housing Company (JHC).

Mashaba has committed the municipality to

cleaning up the city, improving billing for services,

enforcing by-laws and speeding up bureaucratic

processes so that investors don’t have to go from

pillar to post to get something done. Reclaiming

buildings from criminals masquerading as landlords

is high on his agenda. Says Mashaba, “I will be assembling

a team of human-rights lawyers to assist us to

reclaim the inner city from criminals and slum-lords.

“We are going to be the government that unlocks

the door to the potential that our inner city holds

for our people,” is Mashaba’s pledge.

The mayor envisages the private sector putting

R20-billion into projects every year. Among the

things that are needed in central Johannesburg,

and which private investors might provide, are rental

accommodation for the so-called “Missing Middle”

(people earning R3 000 to R8 000 per month) and

low-rent office space to accommodate new companies

and young professionals starting out.

Mashaba’s vision is that Johannesburg can be

“a place of home, work and play that becomes the

thriving and inclusive heartbeat of our city”.

Global trends

SPECIAL FEATURE

Making inner cities more liveable is a global trend.

Flight from the cities in the second half of the 20th

century saw factories relocate to industrial parks

(or other countries) and offices and people move

to suburbs. The move back to cities is spurred partly

by the relative cheapness of property in CBDs,

legislation encouraging inner-city investment and

even a perception that suburbs are “boring”.

Density is a key factor in modern urban planning.

Mphethi Morojele of MMA Design Studio

makes the point that “the more dense and integrated

your city is the more money circulates,

the more people have access to opportunity”.

Morojele’s firm has worked on a number of public

buildings and urban projects, including the Ellis

Park Sports Precinct Parks. “Creating denser

multi-functional environments is not only good

for the quality of life of citizens but is also economically

more efficient and ecologically sustainable,”

says Morojele. “The economic argument

is compelling.”

Not only does a denser environment mean that

service-sector businesses such as laundries and

restaurants have more passing trade, but the provision

of bulk services becomes much more costeffective

for utility companies and municipalities.

A dense urban environment also has the potential

to overturn one of the worst aspects of

apartheid – the fact that most South Africans

were forced to live a long way from their place of

work, causing them to spend a lot of money on

transport, a situation that still exists today.

Nudges and nodes

The Gauteng Growth and Development Agency

(GGDA) is one of several organisations other than the

City of Johannesburg which has been encouraging

development in the inner city.

One of the most important nudges for developers

has been the tax incentives that accompany

the Urban Development Zone (UDZ). Initially

pegged to expire in 2012, the UDZ concession has

now been extended to 2020.

17 GAUTENG BUSINESS 2017/18


SPECIAL FEATURE

Various “improvement districts” have also contributed,

for example the RID (Retail Improvement

District) where businesses in a designated area

pay levies to secure improved cleaning and security

services. The Johannesburg City Improvement

District Forum shares information among the CIDs.

Expenditure by CIDs collectively on supplementary

public space safety, cleaning and maintenance

is estimated to be about R 61-million annually.

Investment in public space infrastructure from CIDs

was more than R50-million over the last five years.

The Gauteng Partnership Fund (GPF) has

attracted about R3.5-billion in private-sector funding

for affordable housing in the province since 2012.

The Brickfields housing and rental development in

Newtown was funded by the GPF and implemented

by the Johannesburg Housing Company (JHC) as

one of the first inner-city rejuvenation projects. JHC

is a leader in converting bad buildings to useable

rental space.

The Johannesburg Development Agency (JDA)

projects range from the upgrading of Constitution

Hill, the Faraday Station precinct, work on the

Fashion District and pavements of the inner city,

renovation of the Drill Hall and the big Newtown

make-over.

Mayor Mashaba intends fast-tracking the delivery

of title deeds to the beneficiaries of the city’s

housing projects.

Public spaces need to be included in urban regeneration

planning, as do buildings for social purposes.

When the Outreach Foundation Community

Centre was built in Hillbrow in 2015, it was the first

piece of social infrastructure to go up in the suburb

since the 1970s. The design, a glass box in a light

steel frame which seems to hover over the site, won

architects Local Studio the Saint Goban architectural

award and provides space for dance and computer

classes and offices.

The same architects also developed a public

service centre on top of a renovated building for

Urban Task Force, a private property development

company. The building in Hillbrow, Mimosa Square,

was a famous art deco building that had been

hijacked by criminals.

Private developer Indluplace Properties bought

nine large apartment blocks in 2015, taking its total

buildings in the central Johannesburg CBD, Berea and

Hillbrow to 23: 33% of the units are bachelor pads,

22% are two-bedroomed flats. The listed company (its

major shareholder is Arrowhead) intends to “aggressively

grow its portfolio” of high-yielding properties

as it believes the rental market has huge potential.

The developers of the Maboneng Precinct are

also very upbeat. The Propertuity website states,

“With Arts on Main as the catalyst, Maboneng has expanded

east along Fox Street, and beyond Albertina

Sisulu Road. Community projects like Trim Park and

Common Ground offer spaces for the public to use

GAUTENG BUSINESS 2017/18

18


Goch St

Hubert St

Grafton Rd

Ussher St

Fortesque Rd

Janie St

Ford St

Mordaunt St

Browning St

Grafton Rd

Fortesque Rd

Janie St

Ford St

Mordaunt St

Browning St

SPECIAL FEATURE

ty (CIDs) Map

t

Rd

WID

Hi lside Rd

Belgium St

eyds St

Civic

Loveday St

Loveday St

WID

ain str mall

Vi lage Rd

Produced: 2013/09/10

Juta St

Noord St

CON HILL

Kerk St

Thorpe St

De Korte St

RID

Fox St

Loveday St

Eloff St

Joubert St

Hoek St

Eloff St

Queens Rd

De Villiers St

and enjoy, while buildings have been re-developed

into multi-purpose spaces.”

The City of Johannesburg has identified the

following nodes for development:

• Carlton Precinct: Johannesburg’s tallest building

attracts tourists; undergoing revamp; Sky Rink

TV and film studio being developed; conference

centre planned.

• Park Station: intermodal node catering for cars,

Mapping buses, by rail commuters Client and . taxis; Gautrain link to OR

Tambo International Airport; wide variety of users.

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

Princess Pl

Noord St

Wanderers St

Empire Rd

Gi lies St

Park Dr

Central Rd

Lilian Rd

May Rd

Pioneer Rd

Bonanza St

andira urban

services

Gale Rd

Berea North Proposed CID

Von Brandis St

Albert St

Kruis St

Ekhaya Neighbourhood

Plein St

President St

CID

Kruis St

Salisbury St

Legend

Park La

Esselen St

Edith Cave l St

High St

Pritchard St

Wemmer Jubilee Rd

Jager St

Avenue Rd

Fountain Rd

Delvers St

High Rd

Quartz St

Clare Rd

Kerk St

Western Blvd

Frederick St

Smal St

National Roads

Main Roads

Secondary Roads

Railways

Pine Ave

Falklands Ave

Rhodes Ave

Yale Rd

WITS

Legae La Rona

Quinn St

Graf St

Pim St

Shaft St

Seymour Ave

Carr St

Park Rd

New Town

Ellis Park Precint

SWID

Main str mall

SWID

RID

CID

community engagement and wants the park to

be a symbol of the successful city.

• Doornfontein/Ellis Park railroad corridor: planned

retail hub and student village.

• Fordsburg: interior design focus; more offices and

accommodation can be built.

• Newtown: cultural precinct with the potential

to cater to students and university departments

with specialised offices and spaces.

• Hillbrow, Berea, Parktown, Bellvue, Yeoville: creation

of new Streetspublic open CID = Central space; Improvement District. opportunities for

Acronyms :

SWID = South Western Improvement District.

MMID = Main Marshall Improvement District.

RID = Retail Improvement District.

Legislated CID

office and hotel developments.

National Roads

Main Roads

Secondary Roads Voluntary Initiatives

Railways

Voluntary Intiatives in CID Establishment Process

Produced: 2013/09/10

¯

Acronyms :

SWID = South Western Improvement District.

Streets

CID = Central Improvement District.

MMID = Main Marshall Improvement District.

RID = Retail Improvement District.

Legislated CID

Voluntary Initiatives

Legae La Rona

Berea North Proposed CID

0 0,050,1 0,2

Voluntary Intiatives in CID Establishment Process

Kilometers

CON HILL

Girton Rd

MAP COURTESY OF WWW.CIDFORUM.CO.ZA

Yettah St

Claim St

Koch St

Bruce St

Quartz St

Polly St

MMID

Melrose St

Banket St

Malherbe St

Leyds St

Bok St

Noord St

Park La

Sydenham Rd

Fashion District

Troye St

Cornelius St

Heidelberg Rd

Honey St

Park La

Hancock St

Eendracht St

Berea South Proposed CID

Goud St

Nugget St

Fife Ave

Prospect Rd

Banket St

Hadfield Rd

End St

End St

Nugget St

Goud St

High St

Barnato St

Davies St

Hi lbrow St

Olivia Rd

Sherwe l St

York St

END PARK

End St

Albert St

Lily Ave

Soper Rd

Davies St

End St

Durban St

Meikle St

Doris St

Currey St

End St Ext

Joel Rd

Henri St

Station St

Alexander St

Wolhuter St

Pat Mbatha Bus & Taxiway

Becker St

Albany Rd

Hoofd St

Ameshoff St

Stiemens St

Braamfontein

Becker St

De Beer St

New Doornfontein 1

Phi lip

Nind St

York Ave

Hadfield Rd

Fox St

Pearse St

Height St

Greene St

Van Beek St

Berea

Staib St

Hopkins St

Yeo St

Hendon St

Percy St

South St

Beit St

Lower Railway Rd

West St

Me le St

Diagonal St

We lington Rd

Biccard St

1st Pl

Main Rd

Hall St

Maboneng CIDDarcy St

Martin St

Harley St

Gordon Ter

Kruger St

Carr St

Dora St

Ove St

Maritzburg St

Webb St

9th St

Betty St

Page St

Saunders St

Minors St

Beit St

8th St

Kort St

Auret St

Juta St

Highlands St

Jules St

Fraser

Hi lside Rd

Belgium St

Leyds St

Mi ler St

Macintyre St

Erin St

Voorhout St

Gous St

Market St

Madison

Cavendish Rd

Gus St

Droste Cr

Civic

Loveday St

Vi lage Rd

Trump St

Yeo St

Becker St

Juta St

Hunter St

Noord St

Loveday St

Mi lbourne Rd

3rd St

Liddle St

Hans St

2nd St

Dawe St

Kerk St

Thorpe St

De Korte St

Fox St

Loveday St

Main St

Wolhuter St

Pope St

Isipingo St

Jo ly St

1st St

Andries St

Fox St

Marsha l St

Eloff St

Stott St

Natal St

Joubert St

Hoek St

Terrace Rd

Eloff St

Queens Rd

De Villiers St

Fuller St

Clarence St

Karl St

Hanau St

Stewart Dr

Princess Pl

Noord St

Beelaerts St

Ford St

Wanderers St

Ascot Rd

Derby Rd

Queen St

Charles St

Ford St

Mordaunt St

Pretoria St

Von Brandis St

Albert St

Browning St

Beatty St

Kruis St

Viljoen St

Ekhaya Neighbourhood

Plein St

Jacoba St

Corrie St

Esselen St

Pritchard St

President St

Kruis St

Salisbury St

Edith Cave l St

Wemmer Jubilee Rd

Faraday St

Fred Droste Rd

Border Rd

Legend

Park La

De la Rey St

Victoria Rd

Frere Rd

Carnavon St

Bellevue St

Hanau St

Girder Rd

Nourse St

Grace St

Jager St

Delvers St

Quartz St

Koch St

Kerk St

Frederick St

Smal St

Claim St

Stevenson

Yettah St

Lang St

Kimberley Rd

Bruce St

1st St

Quartz St

Polly St

Banket St

Fashion District

MMID

Melrose St

Marsha l St

Park St

Castle St

Urania St

Cornelius St

Berg St

Gi l St

Clerke St

Short St

Eleanor St

Cornelia St

Albemarle St

Fox St

Boxer St

Leyds St

Bok St

Noord St

Troye St

Heidelberg Rd

Stone St

1st Ave

Long St

Blenheim St

Honey St

Park La

Hancock St

Boom St

High St

Berea South Proposed CID

Goud St

Nugget St

Fife Ave

Prospect Rd

Banket St

Hadfield Rd

End St

End St

Nugget St

Goud St

Barnato St

Davies St

Hi lbrow St

York St

Olivia Rd

Sherwe l St

END PARK

End St

End St

Albert St

Durban St

Lily Ave

Soper Rd

Davies St

Meikle St

School St

Doris St

Currey St

End St Ext

Joel Rd

Hopkins St

Beit St

Ellis Park Precint

New Doornfontein 1

Phi lip

Nind St

Height St

York Ave

Hadfield Rd

Fox St

Pearse St

Greene St

Lower Railway Rd

Van Beek St

Berea

Staib St

Yeo St

Harley St

Hendon St

Percy St

South St

Gordon Ter

Webb St

Maboneng CID

Kruger St

Dora St

Ove St

Maritzburg St

9th St

Minors St

Betty St

Page St

Saunders St

Beit St

8th St

Auret St

Highlands St

Jules St

Yeo St

Becker St

19 GAUTENG BUSINESS 2017/18

Bridget Rd

Long St

Mi ler St

Macintyre St

Erin St

Voorhout St

Gous St

Market St

Madison

Cavendish Rd

Gus St

Droste Cr

Hunter St

Liddle St

Mi lbourne Rd

3rd St

Dawe St

Hans St

2nd St

Main St

Wolhuter St

Pope St

Isipingo St

Jo ly St

1st St

Andries St

Fox St

Marsha l St

Hanau St

Natal St

Terrace Rd

Fuller St

Clarence St

Karl St

Stewart Dr

Beelaerts St

Ford St

Mordaunt St

Ascot Rd

Derby Rd

Queen St

Charles St

Ford St

Pretoria St

Browning St

Beatty St

Border Rd

Viljoen St

Jacoba St

Corrie St

Fred Droste Rd

De la Rey St

Victoria Rd

Frere Rd

Carnavon St

Bellevue St

Hanau St

Girder Rd

Nourse St

Grace St

Lang St

Kimberley Rd

Eleanor St

Cornelia St

Marsha l St

Park St

Castle St

¯

0 0,050,1 0,2

Kilometers

Urania St

Berg St

Gi l St

Clerke St

Short St

Albemarle St

Fox St

Stone St

1st Ave

1st St

Boxer St

Long St

Bridget Rd

Blenheim St

Long St

Boom St

School St

Trump St

Stott St

Faraday St

Stevenson


New city-like developments are

springing up in Gauteng

Infrastructure spending is on the increase.

South African television viewers have been

treated to nostalgia-tinged television advertisement

which tells the story of how Sandton

was transformed from farmland to the

richest square mile in Africa, from a sparsely populated

area north of Johannesburg to a bustling mixture of

shops, offices, flats, entertainment complexes and

hotels that is a key component of the city-region’s

economy. With the Liberty Group among the financiers,

Sandton City shopping centre, with 50 000m² of

lettable space, opened in 1973 and sparked fantastically

fast growth around it, mostly at the expense of

Johannesburg’s central business district (CBD).

A new wave of development is sweeping over

Sandton again and the area’s 10 000 businesses and

300 000 residents are spoilt for accommodation

choices, but city-like developments are springing

up in other parts of Gauteng as well, partly as a reaction

to new trends in transport (the Gautrain and bus

rapid transport) and partly in response to the concept

of corridor development being pursued by the City

of Johannesburg and the Provincial Government

of Gauteng.

Some of South Africa’s biggest companies are

building new headquarters in Sandton. Sasol has

constructed its new global head office to the latest

green specifications and Paragon Architects

created a 4 000m² roof garden encompassing

four biomes. Discovery’s new group headquarters

also follows green principles. The building’s three

towers offer a total of 110 00m² lettable space,

developed and jointly owned by Growthpoint

Properties and Zenprop Property Holdings.

Ironically, Liberty’s modern headquarters are in

the centre of Johannesburg, but the rejuvenation

of the inner city is the subject of a separate article.

The Sandton model

Something like the Sandton model is being replicated

in other parts of Gauteng with existing

GAUTENG BUSINESS 2017/18

20


SPECIAL FEATURE

estates aiming to bulk up and new developments

setting impressively ambitious goals.

The biggest is Menlyn Maine in the eastern

suburbs of Pretoria. Not only is this a huge multiuse

project, it also aims to be South Africa’s first

“Green Precinct”. Overlooking the main project is

Boogertman + Partners Architects.

Everything about Menlyn Maine is on a grand

scale. Covering 315 000m² in total, the area will

comprise residential apartments, 35 000m² of retail

space and a hotel precinct with three-, fourand

five-star hotels, a conference centre, a casino

and an 8 000-seater arena. Sun International’s

Times Square and Casino is a R4.2-billion project.

The Capital Hotel on the Central Square Piazza

offers 150 hotel rooms and 50 apartments.

Among the first occupants of office space

will be the Public Investment Corporation (PIC),

who are building new corporate headquarters at

Menlyn Maine. Connections to the Gautrain and

Tshwane’s expanding Bus Rapid Transport system

are boosting the new development’s popularity,

with all of the retail space already fully let before

it is completed.

Professional services and consulting firm PwC

has chosen the Waterfall City estate near Midrand

as the site for its new R1.5-billion headquarters.

It will house 3 500 employees and have a total of

40 000m² of lettable space. The striking design of

PwC Tower (shown overleaf, top) was conceived

by LYT Architecture. The building is owned by

Attacq and developed by Atterbury.

The same joint venture is also behind Deloitte’s

Gauteng headquarters which will put Pretoria and

Johannesburg staff (3 700 in all) under one roof

at Waterfall City. Aevitas are the architects. Other

corporate tenants to choose Waterfall City include

Group Five, Cell C and Premier Foods.

Services offered include a City Lodge, a Netcare

hospital (in partnership with Phelang Bonolo

Healthcare Group) and a Curro-owned tertiary

body, the Embury Institute.

A big feature of Waterfall City is the Mall of

Africa, the Atterbury Group’s 131 000m² shopping

centre with 300 shops and 6 500 parking bays.

Randburg could become a new centre of

development if plans to extend the Gautrain

are carried through. Multichoice is one of the

21 GAUTENG BUSINESS 2017/18


SPECIAL FEATURE

core businesses in the area, with a huge headoffice

complex. Randburg Square has recently

been converted from offices to 180 flats by Vukile

Property Fund.

This kind of conversion is becoming a trend,

with office vacancies standing at 11% in early 2017

across South Africa. The building of their own huge

new corporate headquarters by big companies exacerbates

this trend. Another property fund, Emira,

plans to convert some of its Rosebank office space

into accommodation. Even within the new Menlyn

Maine development, planners are expecting to convert

some of the residential accommodation being

offered in the first phase to offices when demand

picks up again.

Less exclusive nodes of development (or new

mini-cities) are in the works near Orange Farm south

of Johannesburg (Savannah) and around the capital

city of Tshwane.

Tshwane’s West Capital Project will be a mixeduse

development comprising retail outlets, health

facilities, residential accommodation (including a

student village) and commercial premises.

The African Gateway project is planned for an

80ha site near to the Centurion Gautrain station that

will be tied in with designs for the government and

Tshwane International Convention Centre precincts.

Corridors

Much of the development referred to above is

taking place in terms of a broader framework of

development. Johannesburg’s Freedom Corridors

are designed to guide future development and

break down the spatial framework that apartheid

created. Central to the concept is the availability

of public transport which will allow residents easy

access to other parts of the city including public

spaces and retail or entertainment nodes.

The Wynberg-Alex-Marlboro corridor is earmarked

for high-density residential development

which will create markets for small businesses

and tourism. Another corridor, the Orange Grove-

Bramley-Waverley-Highlands North-Kew corridor,

already has a large number of small businesses and

automotive repair and trade shops so the plan is

GAUTENG BUSINESS 2017/18

22


SPECIAL FEATURE

to build on that to develop the existing strengths

of the area.

The efficient and popular Gautrain is proving a

magnet for development, with a number of property

developers targeting Gautrain stations as the site for

projects. The busiest stations are experiencing daily

visits of up to 60 000 commuters and on popular lines

at busy times it is standing room only. More wagons are

on order and line expansions are under consideration.

One estimate puts the number of annual work days

saved for regular commuters at 3.5-million.

The Bus Rapid Transport system (Rea Vaya) has the

potential to be a similar catalyst but the system is not

expanding as fast as developers would like.

Plans for the creation of an “aerotropolis” in the

Ekurhuleni Metropolitan Municipality based on OR

Tambo International Airport have long been in the

works and the broad outlines of the plan are well

known. In response, private developers have been buying

up land along key routes such as the R21 highway.

Infrastructure

The Provincial Government of Gauteng spent R30-

billion on infrastructure between 2013 and 2016. A

further R46-billion has been pledged for the three

three years to 2019. In addition, Gauteng municipalities

will spend R94-billion over the next five years using

their city budgets.

A study carried out by KMPG for the province found

that spending on infrastructure resulted in additional

economic activity worth R26-billion in the province

and created 92 000 direct jobs.

The following priorities have been identified:

• public transport

• broadband and free Wifi

• water and sanitation

• mega human settlements

• new industrial nodes.

The Johannesburg Roads Agency (JRA) will spend

R19-million on fixing the city’s bridges, mostly by replacing

bridge expansion joints, as part of its overall

mandate of maintaining and building roads for the city.

Speaking at the Infrastructure Funding Summit

in May 2017, Gauteng Premier David Makhura said

that the Gauteng Infrastructure Master Plan put the

figure of R1.8-trillion to the province’s infrastructure

needs over a 15-year period. Makhura hoped that the

private sector would come on board to help “reshape

the spatial economy of the Gauteng City Region”.

MAJOR ROUTE OVERHAUL

Gauteng’s busy highways are in need of constant

work as part of the vital infrastructure

that supports the country’s most important

economic hub.

Complex designs are the order of the day for

the rehabilitation of a section of the R511

highway, a major route from Midrand towards

the North West province. It also serves as a

collector/distributor for the rural areas and

towns along the route. The 18-month, R150-

million project attracted several prospective

contractors who will work together with the

company appointed to design the upgrade,

Zimile Consulting Engineers. The project has

attracted contractors of CIDB level 9CEPE due

to the complexity of its nature. This project is

one of the biggest projects Zimile has successfully

designed.

Work includes constructing crushed stone

bases and lower sub-bases, importing upper

sub-bases and sealing with asphalt. Rip and

re-compact existing G7 subgrade to 150mm.

If the engineer is not satisfied with the material,

then the layer will be constructed of G6

from commercial sources. Edge beams must

be constructed and all road signs and markings

must be reinstated and guardrails have to be

replaced, realigned or repaired. The road reserve

and drainage structures must be cleaned,

reinstated and repaired. The contract was

issued by the Gauteng Department of Roads

and Transport.

23 GAUTENG BUSINESS 2017/18


PROFILE

Zimile Consulting

Engineers

A broad range of skills are available to help deliver projects ranging from water resources

to transportation and buildings.

Zimile Consulting Engineers is a 100 % HDI womanowned

multi-disciplinary consulting engineering

and project and construction management

firm. By embracing the dynamism that is in the

built environment through technological advancement,

Zimile Consulting Engineers seeks

to offer value-adding and innovative engineering

solutions.

The company offers independent technologybased

professional services in the built environment.

The services offered range from concept

development to project commission or an involvement

at a particular stage of the project

life cycle. It is an engineering consulting and

management practice with competence in water

resources development, property development,

municipal infrastructure, buildings and structures,

transportation infrastructure and environmental

solutions.

The company has its headquarters in Gauteng and

has a strong presence nationally with major projects

in the provinces of Limpopo, Mpumalanga, Northern

Cape, KwaZulu-Natal and North West.

Vision

Zimile Consulting Engineers is committed to be

the professional service provider of choice for engineering

solutions within South Africa and ultimately

Africa through inspired engineering drawn from:

• Innovative thinking

• Simple approach to problems

• Proactive attitude and

• Smart application to problem solving

Shawn Gama, MD

Mission

Zimile Consulting

Engineers undertakes

to provide its

clients and recipients

of its services

with engineering

solutions which deliver

infrastructure

that will create a

better every day for

communities and

the clients it serves.

Objectives

Zimile Consulting Engineers was established with

the following prime objectives:

• Deliver projects that are both economically

feasible and technically viable.

• Deliver projects that are recognised for their

quality.

• Employ basic and advanced design solutions in

addressing client needs.

• Be socially relevant to the community.

• Use labour intensive methods where possible

to create work on projects we are involved in.

Resources and structure

Zimile Consulting Engineers currently has the

following personnel resources:

Two professional registered engineers (PhD),

two civil engineers, two civil technologists, three

technicians, two civil technicians/trainees, one

GAUTENG BUSINESS 2017/18

24


PROFILE

Construction Monitoring of, for example, offices,

schools, recreation centres, community centres

and housing complexes.

The Kwa Jona Community Hall in Jozini.

secretary. The resumes of our professional and

commited staff are available on request.

The company is structured to optimally maximise

the resources available. Most of the staff members

within our company are from the previously disadvantaged

communities. The objective of Zimile

Consulting Engineers is to meet the needs of the

client by providing proficient and specialised consulting

engineering services. Communication is

of the utmost importance to achieve this and we

therefore appoint a senior member of the company

as a leader for each project.

Where communities are affected, projects are

structured to allow community input and participation

in the planning, design and implementation

stages. Job creation and training form part of

the overall strategy.

Professional services

Zimile Consulting Engineers offers the following

range of professional services and products. The

company’s professional staff, local partners and

shareholders have proven track records and considerable

technical expertise and experience.

Municipal Services

Including Strategic and Master-Planning, Analysis

and Optimisation, Scoping, Design, Documentation,

Procurement, Contract Administration and

Construction Monitoring.

Buildings and Structures

Including Analysis, Design, Documentation,

Procurement, Contract Administration and

Transportation Infrastructure

Including Planning, Design, Documentation,

Procurement, Contract Administration and

Construction Monitoring of roads, public transport

facilities, airports, railways and parking areas.

Water Resources Development

Including Situation Analysis, Resources Assessments,

Requirements Evaluation, Hydrological Modelling,

Hydraulic Analysis, System Analysis and Operations,

Options Analysis and Development, Flood Studies,

Demand Management, Planning and Development

of bulk national and regional infrastructure.

Waste Management

Including Community Participation, Environmental

management, Integrated Waste Management,

Resource Optimisation, Environmental Audits and

evaluating service levels.

Labour Based Construction and Contractor

Development

Including Development of Construction Methods

focussing on Poverty Relief, Local Employment

Creation, Stimulation of Local Economic

Development and Local Contractor Development.

Project Management

Including Client Liaison, Multi-disciplinary Teams

Coordination, Project Cost Control, Risk Assessment

and Management and Conflict Resolution.

CONTACT INFO

Head office: Suite F, First Floor, 41 Kyalami

Boulevard, Kyalami Business Park, Midrand

1682, Johannesburg

Tel: +27 11 466 8576

Cell: +27 81 566 3598

Fax: +27 11 466 881

Email: info@zimileeng.co.za

Website: www.zimileeng.co.za

25 GAUTENG BUSINESS 2017/18


Going smart

A partnership with a Danish city promises smart rewards for the City of Tshwane.

Tshwane and the Danish city of Aarhus have

established a partnership to get the most out

of data and information technology. The plan

is to make the cities as smart as they can be.

As Carsten Lützen, an architect in the Danish

city’s Centre for City Development and Mobility

Planning says, “Wherever it makes sense to use

smart technologies, we use it.” Key focus sectors

are mobility, transport and energy.

Makgorometje Makgata, Tshwane’s acting head

of Economic Development and Spatial Planning,

points out that smart city thinking is not necessarily

the central idea, rather, “Whatever programmes

you do, you ensure that you incorporate smart

city planning. You look at the bigger picture, for

example with the traffic congestion, you look at

various modalities, how can you use technology

to help you.”

Lützen and Makgata met in Copenhagen recently,

and discussed the options for cooperation

between the two cities. The first step will be the

formal signing of a memorandum of understanding

and then more specific projects will be targeted.

“One of our tasks,” says Lützen, “is to facilitate

links between companies in our region and in the

Gauteng region. Big companies like Kamstrup and

Vestas are present in South Africa, but there is a huge

potential for other companies to start up.” There

are possibilities for partnerships and joint ventures

between universities, architects, city planners and

suppliers of services.

“There might be various fields of cooperation in

the future. We aim to facilitate whatever makes good

sense to make people connected.”

Makgata was in Denmark as part of an African

delegation of urban planners and architects studying

urban design. He was a guest of the Danish

Embassy in Pretoria.

During his time in Denmark, Makgata was introduced

to the Danish Outdoor Lighting Laboratory

(DOLL), a 1.5km² industrial park in Copenhagen that

doubles as a living experiment in street lighting

and technology applications. Private companies use

space at the publicly-funded DOLL to experiment

GAUTENG BUSINESS 2017/18

26


SPECIAL FEATURE

among the 12km of road and bicycle lanes. Eighty

separate experiments are under way at any one time,

via 156 sensors placed around the industrial park.

Testing for air quality, waste removal bins that

send signals to headquarters when they are full,

smart parking and intelligent lighting (that reduces

intensity when no cars or bicycles are around) are

among the ongoing trials.

Makgata thinks this kind of experimental park is

something that the City of Tswhane could replicate:

“We want to use that concept to resolve urban issues.”

Several of Tshwane’s automotive manufacturers like

BMW have already said that they are receptive to

the idea.

A smart city network requires three layers of infrastructure.

Firstly, it needs cables and sensors and

places to put them. Fortunately, cities have lots of

street light poles which can carry many cables, not

just cables for the individual street light. Street furniture

can also be used for this purpose. Secondly,

there must be data platforms and networks that can

interpret the data being collected at street level. Finally,

smart cities must deliver smart urban services in the

form of apps (to tell drivers where parking is available

as shown in the photograph on this page of a DOLL

manager reading parking space data) and other valueadded

services.

The system does not need very high power as

the individual sensors would not be communicating

all day: the smart waste bin might only send a

message when it is full.

Makgata sees potential for multiple uses in

Tshwane: “On one platform you can have solutions

for safety and security (including lighting),

traffic management and other aspects. In waste

management, instead of sticking to our schedule

which says come on Monday but the bins are

empty, we rather receive the signal when the bin

is full. We can rearrange the traffic flow if there is

an accident.”

Tshwane plans to build four multi-storied parking

stations on the outskirts of the inner city linked

to the bus rapid transport (BRT) system. Up-todate

data on car movements will help the city

allocate busses.

Aarhus is Denmark’s second-biggest city and is

a renewable energy hub and research centre. The

city hosts the head office of wind turbine company

Vestas and already uses smart technology for traffic

management. “In Aarhus when people arrive in the

city by car, you can always find information about

where to find free parking spaces,” says Lützen.

He makes the point that a lot of smart city applications

are invisible. “The whole traffic system,

including the traffic lights, is coordinated in a

smart way so you get the best flow via sensors in

the roads.”

Sophie Meritet, Affiliate Professor at the Paris

Institute of Political Studies, argues that the particular

dynamics of African cities must be taken

into account when planning smart cities. African

Cities quotes Meritet on Africa’s design priorities

which should be “mobility and energy efficiency

for cities, and this should be done by designing

low-consumption urbanism”.

The South African and Danish representatives

agree that the focus must be on local issues.

Makgata was impressed that at the DOLL laboratory:

“Whatever they do, there is a focus on how you

resolve urban management issues.” Lützen stresses

that the Danes don’t want to impose any solutions.

Rather, he says, the key question is, “Where can we

make a positive change?”

At national level, the Danish and South African

governments have several agreements such as the

Strategic Sector Cooperation on Water and the

Environment. Renewable energy is another area

of cooperation.

27 GAUTENG BUSINESS 2017/18


SPECIAL FEATURE

South African economy at a glance

Insight into the performance of the South African economy is provided through these

graphical representations of key statistics.

ZIMBABWE

NAMIBIA

BOTSWANA

Limpopo

0.9% (7.1%)

MOZAMBIQUE

North West

-3.6% (6.5%)

Gauteng

2.1%

(34.3%)

Mpumalanga

2.7%

(7.5%)

SWAZI-

LAND

Northern Cape

2.8% (2.1%)

Free State

1.8%

(5%)

LESOTHO

KwaZulu-

Natal

2.3%

(16.1%)

Western Cape

2.0% (13.6%)

Eastern Cape

1.0% (7.6%)

SA GDP: Percentage of growth per province (2014) and percentage

contribution to national GDP (figures in brackets).

SOURCE: STATS SA WWW.STATSSA.GOV.ZA

PROVINCE CAPITAL PREMIER POPULATION (2015) AREA GRP BILLION RAND

Eastern Cape Bhisho

Phumulo

Masualle

6 916 200 168 966km 2 R289.9

Free State Bloemfontein

Elias Sekgobelo

"Ace" Magashule

2 817 900 129 825km 2 R189.1

Gauteng Johannesburg David Makhura 13 200 300 18 178km 2 R1 305.6

KwaZulu-

Natal

Pietermaritzburg Willies Mchunu 10 919 100 94 361km 2 R610.1

Limpopo Polokwane

Stanley

Mathabatha

5 726 800 125 754km 2 R271.5

Mpumalanga Mbombela David Mabuza 4 283 900 76 495km 2 R284.2

North West Mahikeng

Supra

Mahumapelo

3 707 000 104 882km 2 R249.5

Northern Cape Kimberley Sylvia Lucas 1 185 600 372 889km 2 R79.9

Western Cape Cape Town Helen Zille 6 200 100 129 462km ² R518.1

Snapshot of South Africa’s provinces

SOURCE: INSTITUTE OF RACE RELATION’S SOUTH AFRICA SURVEY 2016 AS REPORTED ON BUSINESSTECH.CO.ZA

GAUTENG BUSINESS 2017/18

28


ADVERTORIAL

Meet the Nedbank leadership

team in Gauteng

In line with our new brand proposition, our leadership team and staff

are made up of money experts whose goal is to help clients ‘see money

differently’ and enable them to reach their goals.

Dave Schwegmann

Divisional Executive:

Retail and Business Banking

Gauteng North

Brigitte Ryder Provincial

General Manager

Gauteng East

Nozizwe Tshabuse

Provincial General Manager

Gauteng Central

Linda Mbambo

Provincial General Manager

Tshwane & North West

Mohammed (Salim) Kadoo

Provincial General Manager

At Nedbank we believe that money has the infinite

capacity for good, if you understand the true

nature of it.

We know that money well managed can make a real

difference in people’s lives.

And we always take it seriously. For us, being ‘good

with money’ means looking at it differently.

Finding new and better ways to grow it, invest it,

leverage it and manage it for the greater benefit of

individuals, businesses and communities. We believe

our real reason for being should be using our money

expertise to do good, by inspiring you to make better

choices with your money.

We believe that when we apply our expertise and,

more importantly, use it to help you see the effect your

money can have, you will experience the difference

between money being money and money making

a difference.


ADVERTORIAL

Making it easier to do business with

Nedbank Whole-view Business Banking

Brigitte Ryder, Nedbank Provincial General Manager of Retail and

Business Banking, Gauteng North, says her team is ready to assist clients

with a comprehensive range of financial products and services.

Nedbank’s goal is to have all service offerings and

departments under one roof, making it easier to

deliver on its new brand proposition to ‘see money

differently’. Nedbank recognises that you have a full

range of banking needs that go beyond transacting

and borrowing. That is why its dedicated team of

specialists partner with you to give you a bird’s-eye

view of your business and a different perspective on

how your money needs to flow to meet your goals.

Our expertise will help clients navigate

challenges and meet their goals

Brigitte Ryder prides herself on building

relationships and understanding the needs

of clients, saying that partnership- and

relationship-based banking is a key driver

of how Nedbank conducts its business

to ensure clients benefit from its money

expertise.

‘We believe you need a financial partner who has a

deeper understanding of your business – someone

who offers innovative, relevant solutions and who

gives you a banking experience that is hassle-free. As

money experts, we are committed to doing good, so

you can concentrate on what’s most important to you

– running your business,’ says Ryder.

We look forward to continuing our relationships with

our valued existing clients, and to offering our value

proposition to new clients as well. At the core of our

offering in Gauteng North is a relationship-based

model with a business manager dedicated to your

business as your key point of entry to the bank. We

encourage you to see money differently with Wholeview

Business Banking from Nedbank, and to take

advantage of our one-stop banking service.

To take your business to the next level or to obtain more

information about Nedbank’s specialised service offering

call Brigitte Ryder on +27 (0)11 294 7520, send an

email to brigitter@nedbank.co.za or visit

www.nedbank.co.za.


ADVERTORIAL

Our money experts are available to provide

professional advice

Nozizwe Tshabuse, Nedbank Provincial General Manager, Gauteng

East, explains how Nedbank can help business owners in the region.

Business Banking are ready to assist you with

professional advice, industry-specific solutions and a

comprehensive range of financial products

and services.

At the core of Nedbank’s offering in the province is a

relationship-based model with a business manager

dedicated to your business as the key point of entry

into the bank.

There is good news for Gauteng business

owners and entrepreneurs seeking a

unique banking experience: Nedbank

Business Banking has business managers

located across the province specialising

in commercial industries as well as the

agricultural sector. Nedbank also offers

innovative and relevant solutions to

franchisees, incorporating customised

lending solutions, transactional banking

solutions and value-added services.

Our tailored solutions take franchisees’ current

and future goals into consideration, and aim to

assist franchises in attaining the competitive edge

needed to succeed. A dedicated business manager

gives franchise owners the opportunity to have

an experienced financial expert as a partner in

your business. Our money experts at Nedbank

‘We encourage you to see money differently with

Whole-view Business Banking,’ explains Tshabuse.

What does this mean for the client? It is an additional

benefit of banking with Nedbank Business Banking

and means that your business and your personal

financial needs are managed in one place. ‘Because

business owners and their businesses are very often

financially dependent on each other, our client

service teams now also offer individual banking

solutions to you and your staff because we already

know and understand your needs,’ says Tshabuse.

With this in mind, Nedbank has seamless offerings for

you, your employees and your household. Through

Nedbank’s workplace banking offering, communities,

including individual and business clients, are provided

with access to products and services through a

dedicated banker.

Should you be interested in taking your business to the

next level and improving staff engagement, please call

Nozizwe Tshabuse on +27 (0)11 458 4405, send an

email to nozizwet@nedbank.co.za or visit

www.nedbank.co.za.


ADVERTORIAL

Expertise in small business aimed at

stimulating growth

Linda Mbambo, Nedbank Provincial General Manager, Gauteng Central,

explains how Nedbank is committed to partnering with businesses

for growth.

which provides key insights and trends on smallbusiness

behaviour and the challenges that small

businesses face; and the new Essential Guide for

Small-business Owners, which helps small businesses

understand and handle the complexities of starting

and running a business. In addition, business

registration services are available in branch through

SwiftReg or by applying online through CIPC.

‘Small businesses are the lifeblood of our

economy. Nedbank has, over the years,

instituted various interventions aimed at

giving support to the small-business sector.

Over and above our small-business services

solutions, we provide small-business

owners with support that goes beyond

banking, freeing up their time to focus on

running their businesses,’ says Mbambo.

Nedbank has built a solid reputation as a bank for

small businesses through initiatives such as Vote

Small Business, which calls on everyone to make a

conscious decision to support small businesses with

their hearts, feet and wallets; the SimplyBiz.co.za

platform where business owners can network and

engage with other business owners, ask questions

and spark discussions; the Small Business Index

At Nedbank Business Banking we believe that you

need a financial partner who understands your

aspirations, offers relevant solutions and gives you

a banking experience that is hassle-free. We are

committed to doing good, so you can concentrate

on what’s most important to you – running

your business.

Nedbank is making it easier to deliver on our new

brand proposition – ‘see money differently’ – through

our Whole-view Business Banking which provides us

with a bird’s-eye view of your business and therefore

enables us to offer solutions and services aimed

at giving your business the edge in challenging

economic times.

Speak to the money experts at Nedbank Business Banking

if you are interested in taking your business to the next

level or want to find out more about our specialised

service offering. Contact Linda Mbambo on

+27 (0)11 671 7149, email the Business Banking team

at business@nedbank.co.za or visit

www.nedbank.co.za.


ADVERTORIAL

New brand proposition encourages clients to

‘see money differently’

Mohammed (Salim) Kadoo, Nedbank Provincial General Manager,

Tshwane and North West, explains how the new brand values build

on the expertise of the bank to benefit clients.

advertising and communication campaigns, as well

as its products, services and channels. All these

changes are designed to inspire clients and society to

see money differently and partner with the bank to

achieve their goals.

Our new brand proposition is not just a marketing

initiative, but a reflection of the continuing business

evolution at Nedbank. As a bank we want to ensure

that our clients experience our brand in a way that is

aligned with our brand promise.

Nedbank officially launched its new brand

repositioning during the first day of the

world’s largest design festival – the 2017

Design Indaba on 1 March. The bank’s new

tagline challenges clients and society to

‘see money differently’.

The new brand positioning is built on Nedbank’s

purpose: to use financial expertise to enable

individuals, families, businesses and society to do

good. Our new brand proposition was born after

almost two years of research and client engagement

which revealed that people want to work with

purpose-driven institutions they can trust. They

want a professional financial partner that balances

expertise with a genuine commitment to do good.

The public will see a number of changes in the next

few months as the bank evolves its corporate identity,

It is common knowledge that we live in a volatile

socioeconomic environment, so it is even more

important for us to intensify our commitment to

improve on our skill in enabling clients to navigate

challenges and meet their goals.

One of the solutions from Nedbank is Whole-view

Business Banking, which provides a bird’s-eye view

of clients’ businesses, and a different perspective on

how their money needs to flow to meet their needs.

With our expertise and insights we can help our

clients to see money as we do, so that together we

can cocreate unique solutions that can unlock the

possibilities that will take their business to the

next level.

If you would like to explore further how Business Banking

can help take your business to the next level, and for more

information about Nedbank Retail and Business Banking

Services, call Mohammed (Salim) Kadoo on

+27 (0)12 436 7740 or send an email to

mohammedk@nedbank.co.za.


ADVERTORIAL

Trust us to protect your business against

everyday risk

Stella Tedeschi, Regional Manager of Broker Channels, Gauteng, explains

why Nedbank Insurance is not a one-size-fits-all business.

informed decisions – making sure that they have

the appropriate cover and that the business or

individual is not under- or over-insured. Advisors are

equipped with a wealth of invaluable sector-specific

experience and knowledge ensuring that cover is

adequate for clients’ exposure to risk. Furthermore,

insurance mitigates loss, secures financial stability,

and promotes trade and commerce activities that

play a role in economic growth and development.

Therefore, insurance plays a crucial role in the

sustainable growth of an economy.

Nedbank Insurance has evolved into a

business that provides integrated insurance

to Nedbank’s individual and business

clients. Our purpose is to provide certainty

to our clients at a time when it matters most

to them and ensure that we can be relied

on to support them during challenging

times in their business or personal lives. Our

offering comprises comprehensive shortterm

insurance solutions, life insurance

solutions and investments.

In recent times, it has become evident that the

benefits of having a reputable insurance partner

outweighs the disadvantages of not having

appropriate cover. Our team of experts provides

valuable advice that enables clients to make

Nedbank Insurance provides a comprehensive

offering of short-term products with blue-chip

insurers. Our broad offering includes professional

analysis and advice; appropriate product design

and implementation, for example BizzInsure,

our white-label product; ongoing portfolio

management together with claims management

and administration; and specialised cover, including

goods in transit, public liability, personal accident and

various motor insurance options.

Should you be interested in expert advice for the type

of business cover that is exactly right for your business

needs, look no further. Nedbank has a team of specialists

ready to provide you with information necessary to allow

you to make an informed decision. For more information

call Stella Tedeschi on +27 (0)12 436 7659, send an

email to stellat@nedbankinsurance.co.za or visit

www.nedbank.co.za.


ADVERTORIAL

Nedbank Business Bundle is a game changer with

savings and personalised services for

small enterprises

The new Business Bundle from Nedbank is a game changer for small

enterprises, offering the best value for money when set against rivals,

with exclusive benefits and personalised services for entrepreneurs.

business Owners, available at www.nedbank.co.za.

Through initiatives such as training and enterprise

development, Nedbank invests heavily in small

business, growing the economy and creating jobs.

With the country’s challenging economic

environment, the Business Bundle not only

offers you personalised banking services,

but also critical tools to save – with up to

40% savings on monthly banking fees,

contributing directly to the bottom line at a

time when every cent counts.

In line with Nedbank’s new brand proposition to

‘see money differently’, the Business Bundle resonates

with the bank’s commitment to using expertise for

good in promoting small enterprises.

To ensure that business owners are better equipped in

understanding and handling the complexities of starting

and running a business, Nedbank provides practical tips

for entrepreneurs through the Essential Guide for Small-

‘Our efforts in the small-business sector are

underpinned by our Banking and Beyond philosophy

that provides non-financial support such as Vote

Small Business, which encourages consumers to keep

small businesses in their communities top of mind

when making their purchases. Banking and Beyond

also includes other flagship initiatives, such as the

small-business-driven SimplyBiz website

(www.simplybiz.co.za), the Essential Guide for Smallbusiness

Owners, CIPC registration and the Money

Manager Accounting Tool,’ says Alan Shannon, head

of Relationship Banking Sales.

Shannon advises entrepreneurs to make a concerted

effort to develop their financial acumen by making

use of resources such as Nedbank’s Essential Guide

for Small-business Owners and the SimplyBiz

online portal.

The Business Bundle is another way Nedbank ensures

that clients ‘see money differently’ and use money as

a tool to take their businesses to the next level.

Call 0860 116 400, send an email to

smallbusinessservices@nedbank.co.za or visit

www.nedbank.co.za/business.

Nedbank Ltd Reg No 1951/000009/06. Nedbank Ltd Reg Authorised No 1951/000009/06 financial

Authorised financial services services and registered and registered credit credit provider provider (NCRCP16).


OLD MUTUAL ENABLING

POSITIVE FUTURES

IN GAUTENG

Old Mutual South Africa (OMSA) is a significant participant in the South African economy and committed to enabling

positive futures for all our stakeholders, especially our customers. We offer a range of financial services that span

investment, life assurance, asset management, banking, healthcare and general insurance.

To ensure that we have our fingers on the pulse of each of our nine provinces, Old Mutual has established leadership

boards in each province to serve as links between the province and the business. These Provincial Management

Boards, or PMBs, are your primary point of contact with us. Together we can ensure that Old Mutual makes a

positive impact on the future of this province and its people.

MEET ROSIE WILSON

Chairperson of the Gauteng Provincial Management Board


I am so proud to represent my province and bring the

business, communities and opportunities together so that

we can share a great positive future.


As the Gauteng chairperson I undertake to:

• Really know my province – the growth areas, investment and partnership opportunities and needs of

my customers.

• Make sure we as Old Mutual are operating responsibly as good corporate citizens and working

together effectively with you, our regional stakeholders.

• Help you make the right connections with our business to enable you to do great things.

For more information, contact Rosie Wilson at GAUTENGPMB@oldmutual.com

ombds 4.17.10479.02

INVESTMENTS I SAVINGS I PROTECTION

Old Mutual is a Licensed Financial Services Provider


OUR BEST ADVICE TO YOU IS:

ADVICE MATTERS

As custodians of the savings and

investments of millions of South

Africans, we know that ADVICE

MATTERS when making financial

decisions.

How to choose the right financial adviser

A good financial adviser is a professional who

considers all your financial needs and goals, and has

the knowledge, experience and support to give you

Advice That Matters.

1. Ask to see the adviser’s training credentials and FAIS

accreditation.

2. Choose a financial adviser who represents a

respected financial institution.

3. Look for a financial adviser who has access to a

range of specialist support services.

NEED HELP WITH RETIREMENT AND RISK

COVER OPTIONS FOR YOUR EMPLOYEES?

Old Mutual Corporate provides

industry-leading retirement fund

solutions, pre and post retirement

investments, group death, disability,

critical illness and funeral cover

as well as financial education and

consulting services to a broad range

of public and private businesses and

institutions, from small businesses to

large corporates.

This can also be accessed via

Old Mutual SuperFund, which provides a comprehensive

employee benefit solution that is flexible enough to meet

the needs of all types of businesses and their employees.

NEED A ONE-STOP-SHOP INTEGRATED

FINANCIAL SERVICE?

The Old Mutual Mass Foundation Cluster (MFC) has an

integrated approach to financial services and offers

customers solutions to meet their needs. This spans a

transactional account called the Old Mutual Money

Account, savings products, life and disability cover, as

well as funeral cover, debt management solutions and

short-term insurance. Our aim is to

help our customers manage their

finances and to plan and provide

a better future for themselves and

their loved ones.

NEED DIRECT CAR & HOME INSURANCE?

Old Mutual iWYZE offers affordable and reliable

insurance cover to protect everything you’ve worked

for. The wide range includes car insurance, home

insurance as well as value-added products

such as iWYZE Scratch

& Dent and iWYZE

Tyre & Rim Cover.

iWYZE, the wise

insurance choice.

NEED FUNERAL COVER?

With Old Mutual’s range of

Funeral Plans (Care, Standard and

Comprehensive+) customers can cover

themselves, their spouse/partner,

children, parents, parents-in-law and

extended family members. We also

have a plan for single parents to

cover themselves and their dependent

children without having to pay for a spouse they do not

have.

You can choose the amount of cover you need, who

you’d like to cover and whether you’d like to add

additional benefits. You can get funeral cover for up to

R70 000.

NEED HELP WITH SAVING FOR BOTH

LONG AND SHORT TERM?

To make it easy for customers to

save from as little as R170 a month,

Old Mutual offers the innovative

2-IN-ONE SAVINGS PLANS.

This product with its two pockets,

allows customers to save for their long-term goals,

like their children’s tertiary education, while they have

access to their funds in emergencies.


NEED HELP WITH HOLISTIC FINANCIAL

PLANNING AND SAVING?

Old Mutual Personal Finance specialises in providing

holistic financial planning - Advice That Matters. We

offer a wide range of wealth creation and protection

products. For example:

OM Invest Tax-Free Savings Plan, which offers you

tax-free growth without any restrictions on accessing

your investment with a current annual allowance of

R33 000. It’s flexible so you can choose how you

want to invest – with lump sum payments or a minimum

monthly investment of R350.

And if you save between R30 000 and R33 000 at

Old Mutual, you get up to half of your admin fees back

depending on your underlying fund choice.

NEED LIFE AND DISABILITY COVER?

Old Mutual Personal Finance marketleading

risk protection range offers

solutions in respect of death, disability

and the most comprehensive illness

range with clear claim definitions,

including GREENLIGHT.

NEED TO PROTECT YOUR BUSINESS?

Mutual & Federal are experts in

agriculture, engineering and marine

insurance. We offer a range of insurance

solutions to protect your business against

everything from fire and theft to business

interruption and legal liability costs.

NEED DEBT CONSOLIDATION AND

TRANSACTIONAL BANKING?

Through Old Mutual Finance you can gain access to:

• My Money Plan, which enables

you to consolidate your debt, and

choose from a range of personal

loans at a fixed interest rate.

• Money Account, which links a transactional (SWIPE)

account and an investment (SAVE) account so you

automatically invest a set amount into a unit trust

every time you make a purchase with your card.

*(In association with Bidvest Bank Ltd)

NEED HELP WITH INVESTING?

Old Mutual Wealth is a fully integrated,

advice-led wealth management

business. We have a personalised

and integrated approach to grow and

preserve your wealth over time. Our

specialist capabilities include Private Client Securities,

Old Mutual Multi-Managers, Fiduciary Services and

Offshore Investing.

We partner with leading financial planners to provide

you with a tailored lifetime wealth plan to help you

achieve the best outcome in line with your objectives,

goals and aspirations.

NEED A FINANCIAL PARTNER THAT

MAKES A POSITIVE IMPACT ON SOCIETY?

Old Mutual is deeply committed to playing a significant

role in building a strong and financially inclusive South

Africa.

As a responsible business committed to caring for our

communities, the Old Mutual Foundation addresses

socio-economic challenges through investing in:

• Small business development and

entrepreneurship

• Youth unemployment through skills

training

• Strategic education initiatives

• Caring for vulnerable communities

In 2016 alone the Old Mutual Foundation invested

R25 686 172 in various community projects across our

nation (actual grant funding payments made during

2016).

In Gauteng the Old Mutual Foundation invested

a total of R5 499 910 across its various community

empowering portfolios in the region.

Our staff are the hearts and hands of Old Mutual in the

communities we operate in, and we support our staff

volunteers through various programmes.

In Gauteng, 77 organisations have received a total of

R1 358 384 as a result of staff volunteering efforts.

INVESTMENTS I SAVINGS I PROTECTION

ombds 4.17.10479.02

Old Mutual is a Licensed Financial Services Provider


OLD MUTUAL FOUNDATION CASE STUDIES IN

GAUTENG

Sparrow FET College is a Melville-based provider of skills training

coupled with life skills and job readiness training. In 2015, the

Foundation funded R500 000 to the organisation to provide

accredited training to 20 youth in Fluid Hose Reeling, a scarce

skill on many mines.

The Maharishi Institute: R1 975 000 was funded by the Old Mutual Foundation for the purposes of expanding

the for-profit call centre operation Invincible Outsourcing, which provides business processing services to large

corporates. The 250-seat call centre is part of a self-funding sustainability strategy by the Maharishi Institute to

generate income, which in turn allows underprivileged students free access to tertiary education. The students

are also required to work in the call centre during their four-year BBA degree as part of their commitment to

‘earning their education’, providing them with invaluable workplace and job readiness experience.

The MASISIZANE FUND focuses on enterprise

development and job creation to help alleviate poverty

and improve food security in South Africa. This is

achieved through encouraging entrepreneurship and

capacity development and financing of micro, small

and medium enterprises (SMMEs). Preference is given

to SMMEs with 51% plus ownership by women, youth

or people with disabilities.

The Masisizane Fund disbursed R147m worth of funds

in 2016 through soft loans in the three high-impact

sectors and facilitated the creation of 862 jobs against

a target of 625 jobs.

In Gauteng, R21.1 million was disbursed, providing

12 clients with soft loan financing, and facilitating

173 jobs.

MASISIZANE CASE STUDY IN GAUTENG

CTU is a 100% black woman owned business that

specializes in manufacturing hospital clothing,

linen and medical accessories for Gauteng health

institutions. The initial loan was used to acquire raw

material to fulfil orders from the Department of Health

Gauteng (DOHGP). A further revolving funding

facility was given in 2014 to assist CTU to execute a

12-month contract to supply linen to all Gauteng health

institutions, which has been renewed for a further

12 months. CTU currently employs 80 staff members of

which 27 are permanently employed.

WANT TO HELP BUILD THE PLATFORM

FOR FINANCIAL INCLUSION?

Financial education is the gateway to financial

inclusion.

The Old Mutual Financial Wellbeing programmes

promote financial literacy and awareness across market

segments in line with the Financial Sector Charter. We

offer highly effective financial education and support

programmes to help South Africans take control of their

finances.

Between 2007 and the end of 2016 more than 589 808

people were reached through face-to-face workshops

held for communities as well as employees in the public

and private sector.

In 2016 more than 88 000 individuals participated in

our On the Money workshops nationally, with 24 674

participating in our Fin360 programmes.

In Gauteng 16 870 individuals were trained in our

Old Mutual On the Money programme with 11 433

having been trained in our Fin360 financial education

programmes.

For more information, contact Rosie

Wilson at GAUTENGPMB@oldmutual.com


INTERVIEW

Member-oriented

scheme strengthened

by high reserves

Christo Becker, Principal Officer of Selfmed, shares some

insights on the medical insurance industry.

Christo Becker

BIOGRAPHY

After completing his studies in

1996, Christo worked as a paramedic

in Cape Town and Port

Elizabeth (where he was seconded

to run the Eastern Cape

operation for Netcare911). He

furthered his career in healthcare

when he was appointed as

hospital manager for a hospital

in the Netcare Group. Christo

went on to manage a number

of other hospitals before joining

Selfmed Medical Scheme as the

Principal Officer in 2014.

Please provide an overview of Selfmed, including the

history and size of the organisation.

Selfmed Medical Scheme was established more than 50 years ago and

it is one of the older schemes in South Africa.

Providing coverage for about 8 000 principal members and 13 500

beneficiaries, we are one of the smaller schemes and we focus on providing

individual attention to our members. Our size allows us to do this.

Could you outline the different options?

Members are able to choose one of five medical aid options:

SelfNET – this entry-level product is our most affordable as it covers

a narrow band of benefits.

MedXX1 – a hospital plan that extends beyond the prescribed minimum

benefits and pays out at 100% of scheme rates for covered

in-hospital treatment and in-hospital doctor’s consultations.

Selfsure – an option that provides in-hospital and out-of-hospital

benefits and is a great choice for a family with young children.

Med Elite – a broader hospital plan that covers additional conditions

including greater coverage for oncology expenses, hip, knee and

back operations.

Selfmed 80% – 80% of bills relating to a wide range of conditions

are covered.

What is the solvency ratio of Selfmed and how does this

compare to other medical aid schemes?

Selfmed has a solvency ratio of 100.37%, which is way more than the

25% mandatory requirement. We are one of the top schemes in the

country in terms of our reserves.

What differentiates your offerings from those of your

competitors?

Selfmed has a very strong member focus. As someone who has

previously worked as a paramedic and a hospital manager, I’m

passionate about healthcare. All of us share the passion and want

GAUTENG BUSINESS 2017/18

40


INTERVIEW

to ensure our Selfmed members

receive good healthcare.

We are able to attend to requests

for ex-gratia payments

on a case-by-case basis and our

members appreciate knowing

that their health conditions are

not compared to other people’s,

but are evaluated individually.

Furthermore, because our

cash reserves are so high and

our systems (administration, call

centre and marketing, etc) are

managed internally, members

feel confident about the level of

service we can provide.

What is your view of the

National Health Insurance

(NHI) scheme and how do

you think it will impact private

healthcare in South

Africa?

We all support the idea that

healthcare should be accessible

to all, however, a number of issues

weren’t addressed in the White

Paper. These include what the basket of care will

look like and who will provide the care.

This is the first phase of a 14-year implementation

period and it is likely that the parameters of the NHI

will change during its implementation.

A specific risk for private healthcare providers

relates to the introduction of a one-payer system.

I don’t think people are going to be happy to take

the money they usually pay into a medical aid and

pay it into a centralised state-run system.

Given that the UK, with its lower unemployment

rate and higher number of taxpayers and health

professionals, struggles to deliver the desired level of

care via its National Health Service, it is unlikely that

that South Africa will have the reserves to roll out a

system that will rival private healthcare.

How does the South African healthcare

system compare internationally?

I believe that the private healthcare system in South

Africa – private medical care and medical insurance –

is equal to the best in the world. Many of our doctors

and medical professionals go overseas for training or

to attend medical conferences and we have some of

the most advanced medical equipment in the world

in our private hospitals. Furthermore, in countries like

the USA, medical care is far more expensive than it

generally is in South Africa.

Ideally, representatives of the entire healthcare

industry here should get together to discuss challenges

and collaborate on viable ways to solve

these so that quality healthcare can be made

accessible to more people.

Increased legislation, particularly legislation

relating to prescribed minimum benefits, has

meant that medical schemes are under increased

pressure though.

www.selfmed.co.za

41 GAUTENG BUSINESS 2016


KEY SECTORS

Overviews of the main economic

sectors of Gauteng.

Agriculture 44

Mining 46

Manufacturing 48

Automotive and components 50

Food and beverages 51

Tourism 52

Business services 58

Education and training 60

ICT 62

Banking and financial services 63

Development finance and

SMME support 68


OVERVIEW

Agriculture

Good rains bring good news for Gauteng farmers.

The Fresh Produce Market in Johannesburg is South Africa’s biggest

market. The region’s other two metropolitan areas, Tshwane

and Ekurhuleni, also have large markets to cater for the region’s

large population. The Springs Fresh Produce Market accounts

for 3% of South African market share which it intends increasing as it

expands its facilities.

Gauteng has a small landmass but in the agricultural sector, as in

many other sectors, it punches above its weight. The province is home

to some of South Africa’s largest agricultural companies, including

AFGRI, a listed agriculture services and foods company, which specialises

in animal feed production. Africa’s largest feedlot for cattle is

located in Heidelberg: Karan Beef’s facility can accommodate 120 000

cattle. The feedmill processes 1 400 tons per day and the associated

abattoir in Balfour in neighbouring Mpumalanga sometimes deals with

1 800 head of cattle per day. The 2 330ha Karan estate also includes a

game farm and an eco-development.

The Kanhym Agrimill in Vereeniging is one of three in the company’s

portfolio, which collectively processes 250 000 tons of animal

feed annually. Kanhym Estates is the largest producer of pigs in the

country and the company’s Middelburg farm in Mpumalanga is geared

to supply the Gauteng market.

Gauteng’s agricultural sector is largely concentrated on producing

vegetables for the huge cities that dominate the region. There is

commercial farming in the southern sector of the province (part of

South Africa’s maize triangle) and the farming of cotton, groundnuts

and sorghum is undertaken in areas near Bronkhorstspruit (east) and

Heidelberg (in the south).

Fruit, dairy products, eggs, maize and grain are also produced in

large volumes within the province.

As the most populous region of South Africa, Gauteng consumes

huge quantities of food. And South Africans eat more chickens than

anything else. Poultry farm and production facilities abound in

Gauteng. Astral Foods, RCL Foods and Daybreak Farms are among

the biggest companies in the province.

The poultry industry in South Africa has been in the spotlight

with a change in the arrangements relating to import duties from

the US. Cheaper imports from other areas such as the EU and Brazil

SECTOR INSIGHT

Woolworths and Massmart

have small-grower support

programmes

• Maize crops are expected

to top 15-million tons.

were already putting pressure

on local producers, but the decision

in 2016 to allow a potential

65 000 tons from the US into South

Africa has led to several thousand

workers being laid off.

Good rains in the interior have

decisively ended the drought in

areas such as Gauteng. Farmers

are expecting a bumper maize

crop in 2017 of about 15-million

tons, which will be enough to

GAUTENG BUSINESS 2017/18

44


OVERVIEW

create a surplus to export. This

is the biggest crop in more than

25 years.

Many agriculture-focused

research institutions are based

in the province. The Agricultural

Research Council’s (ARC) national

research facilities are in Pretoria,

and include the Roodeplaat

Vegetable and Ornamental Plant

Institute and the Onderstepoort

Veterinary Institute. In addition,

the Forestry and Agricultural

Biotechnology Institute (FABI)

is located at the University

of Pretoria.

Provincial plans

At the West Rand Economic

Summit held in early 2017, plans

to prioritise agriculture and agriprocessing

(amongst other sectors)

in the West Rand were laid

out. These include:

• establishment of the

Westonaria hydroponic Agripark

(including the latest

technology)

• Merafong Flora Agri-park is

completed (products include

tomato, cucumber and green

pepper)

• investment in Isigayo Milling

Plant in Randfontein.

A broader province-wide

agro-processing summit was

held earlier, bringing together

small-holder and commercial

farmers, food retail companies,

finance institutions and researchers.

The summit was organised

by the Gauteng Department

of Economic Development,

Environment, Agriculture and

Rural Development.

The provincial government is supporting 178 small-holder farmers

through farmer support and development initiatives. An information

technology programme is to be implemented in 2017/18. This will

focus on crop and livestock monitoring and is intended to increase

productivity.

The Gauteng City Region will roll out the deployment of information

technology in the farming community in 2017/18. This will present huge

opportunities for farmers to monitor their crops/livestock and increase

productivity. The R50-million programme encompasses:

Gauteng Agriculture Information System

• Farm Business Analysis (DNA)

Gauteng Agriculture Economy Analysis (including market

monitoring)

• Smart Agriculture Feasibility.

Even the city centre of Johannesburg is getting in on the drive to

provide food security. The Johannesburg Development Agency (JDA)

is promoting roof-top garden initiatives in downtown Johannesburg.

Together with the Johannesburg Housing Company (JHC) and its

subsidiary, Makhulong A Matala, JDA has funded three such projects.

Massmart, the retail group now owned by US giant Walmart, invested

R15-million in the five years to 2017 to create opportunities

in its food chain for emerging farmers. Techno-Serve, a non-governmental

organisation, oversees the programme. The Massmart Supplier

Development Fund has enabled small farmers to have the security of

a confirmed buyer for their products and many of them have grown

their businesses substantially.

Woolworths’ Enterprise and Supplier Development Programme

gave Sophiatown-born Jimmy Botha the chance to become a successful

farmer of baby spinach, rocket and basil. With advice from a supportive

neighbour farmer (who was already supplying to Woolworths),

Botha grew his farming business to the point where he now has

42 full-time employees and 30 seasonal workers.

CONTACT INFO

Agricultural Economics Association of South Africa:

www.aeasa.org.za

Agricultural Research Council: www.arc.agric.za

AgriSA: www.agriinfo.co.za

Gauteng Department of Agriculture and Rural Development:

www.gdard.gpg.gov.za

Johannesburg Development Agency: www.jda.org.za

National Department of Agriculture, Forestry and Fisheries:

www.daff.gov.za

South African Poultry Association: www.sapoultry.co.za

45 GAUTENG BUSINESS 2017/18


OVERVIEW

Mining

Gauteng is the home of mining and minerals research.

SECTOR INSIGHT

Petra’s expansion plans will

see diamond production soar.

• The Chamber of Mines is

set for a major rebranding.

• AngloGold is scaling back

production in Gauteng.

Boosting productivity

The mining industry’s employer body is the Chamber of Mines. The

Chamber’s address in Hollard Street, Marshalltown, Johannesburg,

reflects the fact that the city of Johannesburg was founded on gold.

A 400km gold reef stretching across most of Gauteng and

some of the neighbouring provinces was for many years the backbone

of South Africa’s mining industry. Gold production has generally

been in decline for some years, with older mines such as AngloGold’s

TauTau either closing unprofitable shafts or being put on care and

maintenance (Kopanang). Global demand for gold has see-sawed in

recent years.

Cullinan, east of Pretoria, is the site of one of the greatest finds

in diamond mining history. The eponymous diamond was cut into

several smaller diamonds, including the 530-carat Great Star of Africa.

Today, Petra Diamonds continues to mine Cullinan as one of its four

South African projects.

In the six months to December 2016, Petra Diamonds reported

a 24% increase in production and a 48% improvement in overall

revenue. At Cullinan the orebody contains a diamond resource of

194 Mcts which is why Petra is expanding with a goal of annual production

of 2.2 Mcts by 2019. A R1.6-billion processing plant is being built

at Cullinan, with a throughput capacity of 6 Mtpa. Petra established a

Women in Mining Committee in 2015. In 2016, 43% of intern positions

were held by women and 58% of scholarships were taken up by girls

from local schools.

All miners have been trying to mine

more efficiently. Mechanisation

has not been a seamless success

but the CEO of Anglo American

told the African Mining Indaba

in early 2017 that productivity

improved by 40% since 2013.

Mark Cutifani credited advanced

analytics, the efficient use of data

and integrated systems thinking

for improved safety and reduced

spending on maintenance.

Anglo American was one of

several South African companies

to benefit from the uptick in global

resource prices in 2017. Shares

in AngloGold doubled by the end

of March 2017, Sibanye’s stock

improved by 124% and Harmony

Gold did even better. South Deep

did not do so well, but remains

convinced that its mechanisation

project will deliver.

Because of improved prices in

ferrochrome, Mogale Alloys has

converted its furnaces from the

GAUTENG BUSINESS 2017/18

46


OVERVIEW

production of silicomanganese

to making ferrochrome. Mogale

Alloys is based in Krugersdorp

and owned by Afarak Mogale.

West Wits Mining, an Australian

junior miner, is hoping that it can

mine productively in an area that

has been the scene of excavations

for more than a hundred years. It

is calling its project the Soweto

Cluster Gold Project, located between

Roodepoort and Soweto.

Research

Gauteng is home to most of the

research and training bodies associated

with mining. AECI, the

explosives and chemicals company

which has been involved

in mining in South Africa almost

as long as there has been a mining

industry, supports the Virtual

Reality Mine Design Centre located

at the University of Pretoria.

Mintek is an autonomous body

based in Randburg which receives

about 30% of its budget from the

Department of Mineral Resources.

The balance comes from joint ventures

with private-sector partners,

or is earned in research and development

income, the sale of

services or products and from

technology licensing agreements.

An example of collaboration

is Project AuTEK which has found

a way of getting gold catalysts

to play a role in improving fuel

cell efficiency. Mintek teamed up

with the Department of Science

and Technology and AngloGold

Ashanti.

The University of the

Witwatersrand School of Mining

has two houses that are partfunded

by mining houses and equipment suppliers including Xstrata,

Lonmin, De Beers, Anglo Platinum and Sandvik.

Pretoria University has a Department of Mining Engineering, the

University of South Africa offers three national diplomas in minerelated

fields, the University of Johannesburg has mine-surveying

courses and the Vaal and Tshwane universities of technology have

engineering faculties.

Mine bodies

In 2017 the Chamber of Mines announced that it would be undergoing

a rebranding and examining its identity for the modern era. The

Chamber’s new president, Exxaro Resources CEO Mxolisi Mgojo, will

lead the chamber in identifying a new way of operating. A charter that

has recently been developed, the Zambezi protocol, suggested ways

of operating in Africa in a sustainable way that helps communities.

Developed by the Brenthurst Foundation, the charter is likely to guide

the rebranded chamber in its deliberations. Mgojo wants to see mines

developing agriculture on land adjacent to projects.

The Department of Trade and Industry (the dti) has set up two

clusters to encourage innovation and collaboration amongst all the relevant

parties in mining in South Africa. These are the Mining Equipment

Manufacturers of South Africa and the South African Mineral Processing

Equipment Cluster (SAMPEC), which falls under the South African

Capital Equipment Export Council, a dti company. SAMPEC looks for

opportunities for import replacement and local beneficiation along

the value chain.

A typical application in the mineral sector is the development of fuel

cell technology. In a world looking for green solutions, South Africa’s

abundant supply of platinum could be a big problem-solver, and a big

earner for the country too.

All of the bodies that oversee the South African mining industry

are located in Gauteng.

CONTACT INFO

Chamber of Mines: www.chamberofmines.org.za

Council for Geoscience: www.geoscience.org.za

Department of Mineral Resources: www.dmr.gov.za

Mining Qualifications Authority: www.mqa.org.za

Mintek: www.mintek.co.za

Southern African Institute of Mining and Metallurgy:

www.saimm.co.za

South African Minerals Processing Cluster:

www.saceec.com/sampec

47 GAUTENG BUSINESS 2017/18


OVERVIEW

Manufacturing

Gauteng leads the nation in manufacturing.

Manufacturing contributes 14% to Gauteng’s real economy

output, and provides 40% of South Africa’s manufacturing

overall. More than 600 000 people are employed in

the sector, with metal products, food and beverages and

chemicals being the biggest employers.

Ekurhuleni Metropolitan Municipality has the greatest concentration

of manufacturing enterprises, especially between Wadeville and

Alrode, south-west of Alberton. Germiston is the country’s biggest rail

junction and Transnet Engineering has invested hundreds of millions

of rands in new equipment at its facility there. Nigel and Boksburg

host Union Carriage and Wagon (UCW), DCD Rail and Lennings Rail

Services, a division of Aveng.

Packaging company Nampak has metals (cans), plastic, paper

and glass operations at various locations including Industria West,

Boksburg and Olifantsfontein. The glass plant in Germiston has nearly

doubled its output (to 40 000 bottles per year) to cater for increased

wine exports. The country’s biggest glass producer, Consol Glass, has

facilities in Clayville, Wadeville and Nigel.

Household products manufacturer Unilever represents an example

of the lighter industrial capacity of the East Rand. Kellogg’s, Kimberly-

Clark South Africa and Procter & Gamble all have significant manufacturing

capacity in the area as well. Corrugated paper manufacturer

Corruseal recently purchased the Enstra Mill in Springs from Sappi,

giving it greater control of production.

The southern portion of Gauteng around Vanderbijlpark and

Vereeniging is synonymous with steel production. Flat iron is made

at the large plants of ArcelorMittal. Scaw Metals’ chain-making factory

in Vereeniging (McKinnon Chain) has invested R110-million in

expanding and modernising its operations. Domestically, the main

consumers of steel products are the mining, manufacturing, building

and construction sectors, while a significant share is destined for

the export market.

There are as 35 aluminium processing firms in Gauteng, involved

in both secondary processing to produce foils, cans, bars, rods and

sheets, and final fabrication in the form of die-casting and sheet metal

work. Within Gauteng, the automotive and packaging industries are

the chief consumers of these products.

SECTOR INSIGHT

Lucchini’s new R200-million

factory will produce forged

wheels for the railways.

• Scaw Metals is expanding

chain production.

AECI is a large manufacturing

company with its roots in

the mining industry. It comprises

two principal divisions: AEL

Mining Services (with a large factory

site at Modderfontein south

GAUTENG BUSINESS 2017/18

48


OVERVIEW

of Johannesburg) and Chemical

Services, which presides over

20 separate companies (including

Senmin, the group’s mining

chemicals company).

Incentives

The Manufacturing and

Competitiveness Enhancement

Programme (MCEP) of the national

Department of Trade and

Industry (dti) announced in 2017

that it had disbursed a total of

1 552 grants to the value of R5.8-

billion which had resulted in

230 000 jobs being “sustained”.

Plastics, pharmaceuticals and

chemicals received 31% of the

money, metal fabrication, capital

and real transport equipment

28% and agri-processing 21%.

Italian forged wheel manufacturer

Lucchini received tax and

training allowances from the dti

which helped it decide to invest

R200-million in a new forged

wheel-making facility. Blank

railway wheels imported from

Italy will be completed at the

Germiston plant. Lucchini previously

sold its wheels in South

Africa through DCD Ringrollers,

itself a maker of forged steel tyre

products. Lucchini has committed

to increasing the local

content in the manufacturing

process.

The Provincial Government

of Gauteng has specific plans to

bolster manufacturing capacity

in the province’s western areas.

Some of the projects include:

• a bicycle manufacturing

or assembling factory in

Mohlakeng

• continuing to buy busses for the province’s BRT system from the

Busmark plant in Randfontein which manufactures and assembles

buses. In 2016 a dual fuel bus was launched, with the bodies of the

busses designed and built in Randfontein.

• establishment of agri-parks: Westonaria hydroponic agri-park;

Merafong Flora agri-park (tomatoes, cucumbers and green peppers);

investment in Isigayo Milling Plant in Randfontein

• revitalisation of industrial parks at Khutsong, Mohlakeng and

Chamdor.

The plan prioritises mining and mineral beneficiation, capital equipment

and machinery, agriculture and agri-processing, tourism, retail

and economic development in townships.

Pharmaceuticals

South Africa’s pharmaceutical sector is worth approximately R20-

billion annually. Although there are more than 200 pharmaceutical

firms in the country, large companies tend to dominate the field,

with Aspen (34%) and Adcock Ingram (25%) the two key players, followed

by Sanofi, Pharmaplan and Cipla Medpro. A number of large

pharmaceutical firms have made significant investments in South

Africa. Adcock Ingram, for instance, has invested heavily in its South

African operation.

The private sector accounts for 80% of pharmaceutical industry

sales by value and 20% by volume, while this ratio is reversed in

the case of the public sector. The public sector dispenses comparatively

cheap pharmaceutical products to its users in public hospitals

and healthcare centres within South Africa, whereas pharmaceutical

products produced by the private sector in South Africa serve a

niche market.

Among the other big international brands active in Gauteng are

Merck, which has a 55 000m² plant at Modderfontein, and Pfizer

SA, which runs a laboratory in Sandton amongst its facilities in

South Africa.

CONTACT INFO

Aluminium Federation of South Africa: www.afsa.org.za

Centre for Advanced Manufacturing: www.cfam.co.za

Chemical and Allied Industries’ Association: www.caia.co.za

Gauteng Department of Economic Development:

www.ecodev.gpg.gov.za

Manufacturing Circle: www. manufacturingcircle.co.za

National Department of Trade and Industry: www.thedti.gov.za

49 GAUTENG BUSINESS 2017/18


OVERVIEW

Automotive and components

The South African Auto Master Plan has been unveiled.

In the context of policy uncertainty in some areas of the South African

economy, and in the year of elections to the top positions within

the country’s ruling party, it was significant that a South African Auto

Master Plan was announced in early July 2017, just a few days after

the policy congress of the African National Congress.

The Department of Trade and Industry, working together with the

National Association of Automobile Manufacturers of South Africa, set targets

for 2035 to increase production to 1% of world volumes (which would

mean 1.4-million more vehicles made in SA), increasing local content

and doubling employment and black-owned businesses in the sector.

Some of the world’s largest motor vehicle brands (including BMW,

Ford, Nissan and Tata) have manufacturing facilities in Gauteng. The

province is also home to a thriving automotive components industry,

together with several bus and truck assembly plants. These include

Scania, TFM Industries and MAN Truck and Bus South Africa, as well

as the Chinese truck manufacturer FAW, which owns an assembly

plant in Isando. Bejing Automotive Works (BAW) assembles taxis at

Springs and has committed (with its partners) to a new investment

of R250-million.

BMW is spending R6-billion on its facility at Rosslyn to gear up to

produce the X3. It already has a high reputation as a maker of the

3 Series. The Ford Motor Company of South Africa started producing

the Everest SUV at Silverton in 2016. The Nissan/Renault plant at

Rosslyn, Pretoria, produces the Renault Sondero hatchback, Nissan

light commercial vehicles and the Tiida and Livina models. UD Trucks, a

part of the Volvo group, announced in 2017 that they will assemble the

CONTACT INFO

Automotive Industry Development Centre: www.aidc.co.za

Automotive Industry Export Council: www.aiec.co.za

Automotive Supplier Park: www.supplierpark.co.za

National Association of Automobile Manufacturers of South

Africa: www.naamsa.co.za

National Association of Automotive Component and Allied

Manufacturers: www.naacam.co.za

SECTOR INSIGHT

UD Trucks will assemble

the Croner heavy vehicle in

Rosslyn.

Croner heavy commercial vehicle

at Rosslyn.

Armoured cars are also

produced in Gauteng. DCD

Protected Mobility manufactures

armoured cars in Boksburg,

which are branded as Vehicle

Mounted Mine Detectors. In

nearby Benoni, BAE Systems

OMC designs and manufactures

protected vehicles.

The Automotive Industry

Development Centre (AIDC), the

City of Tshwane (CoT) and Tshwane

Economic Development Agency

(TEDA) are collaborating on a strategic

project to boost the sector

with a focus on infrastructure.

Incentives are available to

firms and investors within the

automotive industry. The national

Department of Trade

and Industry’s Automotive

Investment Scheme (AIS) offers

from 20-30% in non-taxable

grants to qualifying investments.

Such incentives are a key factor

in encouraging firms within the

automotive industry to upgrade

or expand their facilities.

GAUTENG BUSINESS 2017/18

50


Food and beverages

Gauteng’s big market is attractive to producers.

OVERVIEW

More than half of the companies operating in the food and

beverage sector in South Africa are located in Gauteng,

including Nestlé, Tiger Brands, Pioneer Foods, RCL, AVI

and Astral. There are approximately 4 000 food-processing

companies in the province, employing more than 100 000 people. The

food and beverage sector experienced 18% growth from 1996 to 2013.

Nestlé operates four manufacturing plants in the province and

has invested heavily in increasing production volumes over the last

three years. Tiger Brands runs six plants in Germiston that produce a

range of meat products, and the establishment of a new tomato sauce

plant and pasta plant rank among the company’s recent investments

in the province. McCain Foods, located in Springs, produces frozen

vegetables for the Gauteng market.

Although the South African poultry business as a whole has taken

a knock because of the relaxation of import duties, the South African

consumer still eats a lot of chicken. Earlybird Farm, one of Astral’s operations,

processes 800 tons of chicken per day at its two factories in

Olifantsfontein. RCL operates 18 farms and two feed mills in Gauteng

alone. Daybreak Farms, an AFGRI operation, is located in Springs and

produces about 650 000 broilers every week.

Several beverages in AVI’s portfolio (including Ciro) are produced

at the group’s Kempton Park facilities.

The South African beer market is growing by 1.5% per year.

Three of the seven breweries operated by SAB in South Africa are

in Gauteng. AB Inbev, SAB’s new owner, will spend R2.8-billion

on new facilities in South Africa and recycling plants in Gauteng.

Amalgamated Beverage Industries, a subsidiary of SAB, has plants

in Midrand, Devland and Pretoria.

CONTACT INFO

Food Advisory Consumer Services: www.foodfacts.org.za

National Agricultural Marketing Council: www.namc.co.za

FoodBev SETA: www.foodbev.co.za

South African Association for Food Science and Technology:

www.saafost.org.za

SECTOR INSIGHT

Heineken is expanding its

brewery.

Heineken’s fairly new brewery

at Sedibeng is already undergoing

expansion, with cider production

set to increase.

Key players in the industry

in South Africa include South

Africa Breweries (SAB) (malt

beer), United National Breweries

(sorghum beer), Distell (spirits and

flavoured alcoholic beverages, or

FABs) and Brandhouse (malt beer,

spirits and FABs).

Investment opportunities in

this sector include: production of

ground-nuts, sunflowers, cotton

and sorghum; soya beans, rooibos,

beverages, fruit and vegetables;

essential oil extraction from

herbs and indigenous plants; expanding

the “exotic” meat (kudu,

ostrich and springbok) market,

locally and globally; packaging of

agri-processed goods; the Green

Hub in the West Rand District

Municipality will promote the

growth of sustainable, green industries;

research and development

of organic food production,

health foods and natural remedies;

and small business opportunities

within the brewing industry.

51 GAUTENG BUSINESS 2017/18


OVERVIEW

Tourism

Major new investments in tourism are under way.

Gauteng is visited by more than half of the visitors to

South Africa and is primarily known for business or

retail tourism. The province aims to be a “Gateway to

Africa” and the “Home of Champions”, a reference to the

hosting of sporting events.

Cultural and history tourism are very well catered for, with

more than 60 museums and art galleries in the province, including

the acclaimed Apartheid Museum. Other major facilities range

from the Ditsong National Museum of Natural History (Transvaal

Museum), Museum Africa in Johannesburg’s cultural Newtown

precinct and the South African Military History Museum to the

National Cultural History Museum.

Kliptown in Soweto is the site of the signing of the Freedom

Charter. An urban regeneration project has seen the development

of the Walter Sisulu Square of Dedication. Constitution Hill is an old

prison converted to house the country’s most important court,

and several important old buildings have been restored around it.

The provincial authorities have recently expanded infrastructure

at the Maropeng Cradle of Humankind World

Heritage Site to accommodate the increase in tourism

numbers after the exciting discovery of Homo naledi.

Paleology is the hot science of the moment and even more

visitors are expected.

SECTOR INSIGHT

Marriott International will

spend R1-billion on hotels at

Melrose Arch.

• Sun International’s Times

Square and Casino in

Tshwane is a R4.2-billion

project.

The nearby Sterkfontein caves,

owned by the University of

Witwatersrand, have long been

a source of great archaeological

finds. The university’s own Origins

Centre in Johannesburg is well

equipped and provides more fascinating

insight into the origins of

mankind through art and science.

The centre hosts superb representations

of Khoi and San rock art.

Another site where South

Africa’s history is on display is at

GAUTENG BUSINESS 2017/18

52


OVERVIEW

Freedom Park, a sprawling complex

of museums, open spaces

and memorials on a hillside overlooking

Pretoria in Tshwane.

Craft markets at Rosebank,

Bruma and many other places draw

large numbers of visitors, and provide

economic opportunities for

a wide range of entrepreneurs in

textiles, leather, traditional art and

beadwork. The broader creative industries

sector contributes more

than R3.3-billion to the Gauteng

economy and employs 182 000

people, according to the provincial

government. This includes film and

advertising studios.

South Africa’s biggest international

airport is OR

Tambo International Airport in

Ekurhuleni. Some R200-million

was spent on extending and upgrading

the runways and aprons

prior to South Africa hosting the

2010 World Cup football tournament.

OR Tambo caters about

20-million passengers every

year, receives more than 105 000

arriving air traffic movements and

employs 18 000 people.

Gauteng is a continental leader

in conferences and events. Most

large hotels have conference facilities.

The Johannesburg Tourism

Company has a dedicated unit, the Johannesburg Convention Bureau,

that assists companies in preparing bid documents and in supplying

relevant information on telecommunications and IT services and the

securing of visas for visiting international delegates.

Large venues in Johannesburg are:

• Johannesburg Expo Centre, Nasrec. Capacity: 15 000

• Coca-Cola Dome, Randburg. Capacity: 14 000

• Standard Bank Arena, New Doornfontein. Capacity: 6 300

• Sandton Convention Centre, Sandton: Capacity: 4 500

CITY STRESSING

We all know the benefits of stress. Stress is a driving force, it gives

us clarity and energises us to focus on what must be accomplished.

Stress is most beneficial when we have a low baseline stress level,

with occasional spikes, but can impact our physical and mental

health negatively when it remains elevated for too long.

In our modern world our stresses have changed, they have become

more complicated and take longer to resolve. Fewer stresses

can be solved with physical activity, and our sedentary lifestyle,

combined with poor diets (for good health never eat food with its

own ad), and higher body fat percentages, is leading to persistent

low-grade inflammation.

This persistent low-grade inflammation in turn triggers or contributes

to what we now call lifestyle diseases: heart disease,

auto-immune disorders, depression, diabetes, cancer, chronic

pain and neuro-degenerative diseases.

A few tips on how to reduce lifestyle-induced inflammation:

Lose excess weight

Fat is a store of inflammatory agents which starts having a

negative impact for body fat of over about 25% (too little fat is

also bad – be sensible)

Eat Omega-3 fatty acids

These foods help to directly reduce inflammatory responses. Oily

fish, walnuts and spinach are all good sources

Exercise

Physical activity helps your liver to metabolise fat, and release

anti-inflammatory chemicals

Stretch

Extending inflamed muscles reduces inflammation almost

immediately

Take low-dose aspirin

Check with your doctor first.

Anette Kruger is Managing Director of Hoogland Health Hydro, a

holistic wellness centre in Gauteng’s largest private game reserve.

53 GAUTENG BUSINESS 2017/18


OVERVIEW

The city of Ekurhuleni successfully hosted Airport Cities: World

Conference and Exhibition in 2013 as part of the city’s plan to establish

an aerotropolis around OR Tambo International Airport. The Tshwane

Events Centre and the CSIR International Convention and Exhibition

Centre are among Pretoria’s most used venues. The OR Tambo Building

of the Department of International Affairs and Cooperation (Dirco)

won architectural awards and hosts conferences and meetings of the

Pan-African African Parliament.

Hotels

A huge new multi-use development is taking shape in Pretoria’s eastern

suburb of Menlyn. Sun International’s Times Square and Casino is a

R4.2-billion project which will be the second biggest in the country

with 60 tables and 2 000 slot machines. The Capital Hotel has 150 hotel

rooms and 50 apartments.

The apartment component points to a trend that is growing in

the South African hospitality industry. The Legacy Group was one

of the first to introduce apartments to the hotel development mix,

when it added the Davinci Hotel on Nelson Mandela Square to its

portfolio just before South Africa hosted the Soccer World Cup in

2010. The Legacy collection includes the Michelangelo Hotel and

Michelangelo Towers. The Davinci was designed with 166 hotel

rooms, 54 apartments in the upper reaches, with a further four

luxurious penthouses above that.

The number of hotel rooms in Sandton alone increased by 40% in

response to expected demand from the international tournament.

Reduced occupancies in the period after the World Cup tournament

has led to some consolidation in the sector with large brands buying

up smaller groups but independent hotels such as the Indaba Hotel,

Spa and Conference Centre continue to attract guests.

CONTACT INFO

City of Tshwane: www.tshwane.gov.za/tourism

Cradle of Humankind: www.maropeng.co.za

Dinokeng: www.dinokeng.co.za

Ekurhuleni Municipality: www.ekurhuleni.gov.za/tourism

Gallagher Convention Centre: www.gallagher.co.za

Gauteng Tourism Authority: www.gauteng.net

Johannesburg Tourism and Convention Bureau:

www.joburgtourism.com

Sandton Convention Centre: www.saconvention.co.za

South African Tourism: www.southafrica.net

South African Tourism Services: www.satsa.com

Another significant move in

the hotel sector is the decision

by Marriott International to develop

Marriott branded hotels in

Johannesburg and Cape Town.

After acquiring the Protea brand

in 2014, Marriott introduced

“Protea Hotel by Marriott” as

the model but the decision in

2016 to use the mother brand

for new hotels suggests an increased

commitment to the local

market. In partnership with

the Amdec group, the group will

spend about R1-billion on the

Marriott Hotel Melrose Arch (150

rooms) and Marriott Executive

Apartments Johannesburg

Melrose Arch (200 flats).

Buying into Protea Hotels

has given Marriott access not

only to the South African market,

but to many other African

countries. Between Tshwane and

Johannesburg (and in the nearby

Magaliesberg mountains), Protea

by Marriott has no fewer than 17

hotels across three brands: Fire

and Ice, Protea; Protea Hotels

and African Pride Hotels, the

premier brand.

Tsogo Sun has 36 hotels and

three casinos in Gauteng. The hotels

range across several brands

covering four market segments,

and they include a handful of

stand-alone hotels such as the

Palazzo (at Montecasino) and

54 on Bath (a boutique hotel

in Rosebank). Sun Square,

Southern Sun Hotels, Southern

Sun Resorts, Garden Court

and Stayeasy are among the

group’s brands.

GAUTENG BUSINESS 2017/18

54


CONFERENCE

BANQUETS

LUXURY SUITES

EPSOM BISTRO

CHIEF’S BOMA

MOWANA SPA

INDABA HOTEL, SPA & CONFERENCE CENTRE

YOUR AFRICAN DESTINATION IN JOHANNESBURG

Just north of the fast-paced business world of Sandton lies the 258 bedroom Indaba Hotel, Spa &

Conference Centre. It is a compelling blend of business-like efficiency and relaxed country

atmosphere within close proximity of the International Airport making the Indaba perfect for groups

and leisure travellers.

The hotel features 24 multi-purpose conference venues ranging from Executive Boardrooms to large

Banquet Venues seating up to 500 people. Boasting 2 world class restaurants and the renowned

MOWANA Spa, the Indaba Hotel is sure to meet your business and leisure requirements.

Phone: +27 11 840 6600 | Email: indaba@indabahotel.co.za

Website: www.indabahotel.co.za


Coupled with easy and convenient access to all main highways, O.R Tambo International Airport and

a mere 15km from Lanseria International Airport, the hotel features an impressive selection of some 24

multi-purpose conference venues that can accommodate up to 2 000 delegates in total, with

banqueting facilities for up to 500 people.

With two restaurants on property, there is no need to leave the comfort of the hotel to enjoy world

class cuisine. Our 300 seater Chief’s Boma Restaurant caters for all tastes with over 120 Africaninspired

dishes ranging from North African Moroccan cuisine to Koeksisters and Melktert from the

Cape - and with a “Shisa Nyama” grill boasting a variety of game meats, everyone is sure to find

their favourite.

Well-known for the lavish full South African Breakfast buffet which is served daily from 06h30 to

10h30, the Epsom Terrace Restaurant also boasts an evening Grill Menu which will delight even

the most demanding gourmet’s exacting standards. A traditional Carvery Lunch with live

music can be enjoyed every Sunday - Bookings essential for this popular family outing.

For the ultimate pamper, the MOWANA SPA is a wellness sanctuary set in the tranquil bushveld

gardens of the Indaba Hotel. Our commitment to service excellence and Staff Empowerment

through training and mentoring will ensure that your needs are met and your expectations exceeded

as you enjoy a Day of African Rejuvenation with the “Mowana Makoya Journey” or indulge

your senses with the “Mowana Time-Out Pamper”.

The Indaba Hotel - 15 minutes from Sandton ... a million miles away.


OVERVIEW

Business services

South African consulting is a leader in Africa.

SECTOR INSIGHT

Consultants advise on a

broad range of issues.

• American and European

firms have offices in

South Africa.

ONLINE RESOURCES

Chartered Institute of Management Consultants:

www.cimcglobal.org

Institute of Management Consultants and Master Coaches of

South Africa: www.imcsa.org.za

South African Institute for Management: www.saim.co.za

Management consulting is an industry that has a history dating

back to the early 1900s. Companies such as McKinsey

and Co and Booz and Hamilton were formed in 1930 and

were based in America. It was only in the early 1980s that

management consulting started developing in South Africa. In the

early 1990s the sector experienced a boom, particularly after the first

democratic elections. Most of the management consulting companies

originating in America and Europe opened offices in South Africa.

These companies were used to align other companies with international

operating standards.

Management consulting is defined by Barkas and Wilkenson as “the

provision of objective and independent advice by qualified people in

order to identify or analyse management problems or opportunities”.

The range of services offered by consultants varies widely but

typically seeks to expose clients to the best practices prevalent in an

industry. Services include process measurement, change management,

development of strategies, analyses of operational efficiency

and customer experience, coaching, assistance with the implementation

of new technology, business

process mapping and business

process reengineering.

The Southern African management

consulting market was estimated

to be worth R15.6-billion

in 2014 (Source: Information

Services). South Africa represents

about 75% of Africa’s consulting

market, but growth in the sector

has been somewhat quicker

in other parts of Africa in recent

years. The management consulting

market reflects the broader

outlines of the South African

economy in this respect.

Today, many small management

consulting companies

offer consulting to a niche set

of customers. Companies such

as PricewaterhouseCoopers,

Deloitte, Accenture, McKinsey

& Company, Bain & Company

and EY are amongst the biggest

consulting firms operating in

South Africa.

With thanks to Draw the Line

Business Solutions.

GAUTENG BUSINESS 2017/18

58


Assisting businesses to

do business better

Management consulting firm offers a wide range

of services and a strong focus on delivering quality.

FOCUS

From many years working in various organisations the owner

has come to realise the importance of having good quality

processes, procedures, policies, well-designed forms and technology.

All of these enablers lead to an organisation operating

in a structured manner and providing excellent customer service as

well as being highly effective and efficient. Through investment in

organisations who have the skill set to, any company can yield a high

return through using their resources optimally.

We assist businesses with services such as Business Process Reengineering,

Business Process Mapping, Business Analysis, Process

Measurement, Enterprise Architectural Design, Project Management,

Change Management, Testing, Implementation and Customer

Experience Analysis.

Vision

To be recognised as a leading, independent Management Consulting

company in Africa.

Values

Care – We take care of our employees. Our employees care for our customers.

We take care of our environment and our community by assisting

through volunteering and supporting organisations in need of assistance.

Respect – We treat everyone with respect.

Integrity – We are honest and act ethically when we deal with our

customers and our fellow employees. We want to build our reputation

through our behaviour.

Focus on Delivery – We focus on delivering high-quality service and

products to our customers.

Learning and Sharing – We learn by actively taking part in projects.

We share what we learn and we train our staff so that they are empowered

to be able to move.

Building Relationships – We build relationships with our customers and

with our peers by being friendly and polite.

Customer Service Excellence – We provide our customers with service

that makes them smile. We strive to solve their problems effectively and

efficiently.

Ursula Henry

Mission

To delight our customers in everything

we do. To continually

strive to assist businesses with

improving their effectiveness

and efficiency so that businesses

can do more. To be aware of our

environment. To build lasting relationships

with all businesses in

all industries. To employ people

who are passionate about making

a difference.

CONTACT INFO

Owner: Ursula Henry

Cell: 082 330 0517

Email: ursula.henry@

drawthelinebusiness

solutions.co.za

Website: www.drawtheline

businesssolutions.co.za

59 GAUTENG BUSINESS 2017/18


OVERVIEW

Education and training

The private sector is growing fast.

SECTOR INSIGHT

Gauteng schools are set to

receive 1 200 laboratories

and 470 libraries.

• Curro will open two

tertiary campuses in

2018.

Well-regarded research units, top-ranked business

schools and a large number of universities, universities

of technology and colleges are located in Gauteng,

making the province a hub of educational excellence.

The new mayor of Ekurhuleni has called for his city to have its own

tertiary institution as well.

Three of South Africa’s top five business schools are in Gauteng:

the Wits Business School, the University of South Africa’s (Unisa’s)

Graduate School of Business Leadership and the Gordon Institute of

Business Science, on the Sandton campus of the University of Pretoria.

Eighty percent of the 1 230 lecturers and researchers at the

University of the Witwatersrand (Wits) have post-graduate degrees,

and 27 A-rated scientists work there. The university offers studies in

more than 40 schools in five faculties.

Pretoria hosts the head office of distance university Unisa, which

has almost a quarter of a million students. The University of Pretoria

(UP) is renowned for research. One of the most famous faculties is

veterinary science, which is located at Onderstepoort. The indoor

compact antenna test range housed in the Department of Electrical,

Electronic and Computer Engineering at UP is the only one in the

southern hemisphere. UP also has

a chair in electronic defence research

(with the CSIR), the Exxaro

chair in Energy Efficiency and the

South African National Energy

Development Institute Hub.

The University of

Johannesburg (UJ) is a comprehensive

institution offering diplomas

and degrees through a

mix of vocational and academic

programmes. The Tshwane

University of Technology (TUT)

and the Vaal University of

Technology (VUT) have several

campuses. TUT’s 50 000 students

attend classes on six campuses

in four provinces. The main campus

of VUT is in Vanderbijlpark.

Altogether, there are more than

3 300 educational institutions

in Gauteng.

The provincial government

has set a target for 2019 of

spending R1-billion on higher

education bursaries.

GAUTENG BUSINESS 2017/18

60


OVERVIEW

Schools

The provincial government of

Gauteng announced in 2017

that since 2014 it has built 43 new

schools, including classrooms

with ICT facilities in existing

schools. To 2019, a further 34 new

schools will be erected, together

with 1 200 laboratories and more

than 470 school libraries.

A particular library will be

built because of the dedication

of some young community activists.

When protesters burnt

down the township’s library in

2015, members of the Mohlakeng

Youth Movement decided that

books were still needed so

they started the Mohlakeng

Underground Library, operating

from a shack. The project has

grown to become a literacy project

and assistance is also offered

with homework. The provincial

government and the Rand West

City Municipality will jointly ensure

that a new library is built for

the community by June 2019.

Pupil numbers suggest that

even more schools need to be

built: in 2016 Gauteng schools

accepted two-million pupils.

A growing trend is towards

private schooling. Some of the

new private schools are small

and modest but the sector is also

attracting investors and the two

biggest brands are growing fast.

JSE-listed ADvTECH has 24

schools across five brands (from

primary to high school) and nine

tertiary colleges in the province.

Schools include Trinity House

and Crawford College while

the tertiary offering includes an

The administration building at Pretoria University.

advertising school (Vega), a chef’s academy (Capsicum) and a

Varsity College.

Curro Holdings is also listed on the JSE and is rapidly growing

its portfolio of schools. In Gauteng, Curro already has 34 schools.

Branching out into the tertiary sector is next on the agenda, and this

will happen partly through acquisitions, such as that of Curro Embury

College. The tertiary division will list separately. Two tertiary campuses

will open in Johannesburg and Pretoria in early 2008.

A funding agreement with Old Mutual Investment Group SA

(OMIGSA) and the Public Investment Corporation (PIC) will see Curro

roll out 11 low-fee independent schools in the years to 2019. These

will be called Meridian Independent Schools.

CONTACT INFO

Council of Higher Education: www.che.ac.za

Gauteng Department of Education: www.education.gpg.gov.za

National Department of Basic Education: www.education.gov.za

National Department of Higher Education and Training:

www.dhet.gov.za

National Department of Science and Technology: www.dst.gov.za

National Research Foundation: www.nrf.ac.za

Southern African Regional Universities Association:

www.sarua.org

61 GAUTENG BUSINESS 2017/18


OVERVIEW

ICT

Financial institutions are investing in ICT.

Gauteng is a leader in the ICT sector. With several global

companies choosing to station their South African headquarters

in Gauteng, the province is well connected.

Spending on ICT in South Africa is expected to reach

R266-billion in 2017, according to market analyst Gartner, quoted in

ITWeb. Software spending is driving growth. Among the biggest

spenders on ICT are banks and other financial institutions. The Big

Four banks spent R30-billion in the year to June 2016, with Standard

Bank laying out R14-billion in that period (Tech Central).

The new mayor of Johannesburg, Herman Mashaba, recently announced

that, “We will be aggressively expanding the rollout of our

free Wifi network across the city.” The City of Tshwane’s free service

TshWi-Fi is available in 780 zones such as libraries, educational

institutions, clinics and libraries.

Premier David Makhura announced in 2017 that more than 1 500km

of network fibre has been rolled out in Gauteng since 2014. A total of

3 000 access sites should be connected by 2020.

The Small Enterprise Development Agency (Seda) runs the

SoftstartBTI ICT incubator in Midrand and Tuksnovation, a high-tech

incubator, at Pretoria University. Seda is an agency of the National

Department of Small Business Development, and gives non-financial

support to entrepreneurs.

The National Electronic Media Institute of South Africa (NEMISA)

was originally created to create skills for the broadcasting environment,

but it is now being integrated with eSkills Network and the Institute

for Satellite and Software Applications (ISSA) to form Ikamva National

e-Skills Institute (iNeSI). The focus is on developing e-skills capacity

in South Africa by creating partnerships that guide e-skills initiatives.

The head office is in Johannesburg.

CONTACT INFO

Department of Trade and Industry: www.dti.gov.za

Technology Innovation Agency: www.tia.org.za

Ikamva National e-Skills Institute: www.enesi.org.za

Independent Communications Authority: www.icasa.org.za

State Information Technology Agency: www.sita.co.za

SECTOR INSIGHT

Johannesburg and Tshwane

have free Wifi zones.

The Universal Service and

Access Agency of South Africa

(USAASA) is providing connectivity

for schools in five provinces,

and smart devices have been

distributed to schools.

A number of incentives relevant

to companies and educational

bodies in the ICT sector are available

from the Department of Trade

and Industry (dti). These include:

• The Technology and Human

Resources for Industry

Programme (THRIP): companies

and educational institutions

working to improve

technology; 50/50 cost sharing

grant to a maximum of

R8-million

• Technology Development

Fund: the Technology

Innovation Agency makes up

to R50-million available for up

to 10 years

• Technology Venture Capital:

managed by the Industrial

Development Corporation;

commercialisation of innovative

products, processes and

technologies.

GAUTENG BUSINESS 2017/18

62


Banking and financial services

Newcomers are challenging the established players.

OVERVIEW

SECTOR INSIGHT

Three new banks and three

new stock exchanges will

offer more choice.

• Gap insurance is an

innovative new product.

Stock exchanges

Gauteng is the heart of South Africa’s banking and financial

services industry. Africa’s largest stock exchange and

the head offices of many banks and investment houses

are located in Gauteng. The financial-services industry

contributes 21% to the province’s gross domestic product.

So large are the operations of Gauteng’s banks that some of them

have campuses in downtown Johannesburg, rather than offices. As they

grow bigger still they are building in Sandton and beyond. Standard

Bank recently completed a R2.5-billion office complex in Sandton and

Discovery’s international headquarters in the same suburb is said to be

the continent’s biggest single-phase office development.

South Africa is an ideal stepping stone into Africa and several international

concerns have head offices in Johannesburg. These include

Bank of China, Bank of Taiwan, Citibank, Deutsche Bank AG and HSBC

Bank. Add to that the Reserve Bank and the JSE, Africa’s largest stock

exchange, and one has a sense of the importance of this sector.

The JSE is the world’s 19th biggest

exchange and nearly 400

companies are listed on the

JSE or AltX, the JSE-owned exchange

for smaller companies.

Other investment options that

are available through the JSE are

Yield X (interest rate and currency

instruments), the South African

Futures Exchange (SAFEX) and

the Bond Exchange of South

Africa (BESA).

In 2017 several new exchanges

won regulatory approval, with

ZAR X winning the nod from the

Financial Services Board (FSB)

against objections by the established

JSE and another new

exchange, 4AX. Shortly after winning

its court case, ZAR X started

trading in Senwesbel, the holding

company of one of South Africa’s

biggest agricultural trading companies,

Senwes. There is no trading

in derivatives or high-frequency

trading on this exchange.

63 GAUTENG BUSINESS 2017/18


OVERVIEW

A2X will offer secondary listings

platform for JSE-listed companies

and aims to cut costs for investors.

African Rainbow Capital (started

by Patrice Motsepe) is an investor

in A2X.

4 Africa Exchange (4AX) expects

to start trading in the second

half of the year. 4AX will focus on

companies with market capitalisation

of up to R8-billion. Agricultural

trading company NWK is a shareholder

in this venture.

The newcomers all promise

to use the latest technology to

make trading simpler, quicker

and cheaper.

Banks

No fewer than three new banks

are set to make their debuts

on the South African market.

On top of that, life insurer MMI

Holdings is entering a partnership

with African Bank to enable it to

start taking deposits and loaning

money. It intends to create a

R10-billion loan book.

All the new banks come

from state enterprises: Ithala,

Postbank and a Human

Settlements Development Bank.

The Ithala Development Finance

Corporation is an enterprise

funder in KwaZulu-Natal that has

applied for a banking licence.

In 2016 Postbank (part of the

South African Post Office, SAPO)

received a first-level licence.

Once a board of directors has

been appointed and a company

formed, the Reserve Bank is likely

to grant the full licence. The current

Postbank focusses on taking

deposits and savings accounts.

Postbank has secured a R3.7-billion loan to enable it to open its own

loan book.

Three state entities are merging to create the new Human

Settlements Development Bank: the National Housing Finance

Corporation, the Housing Loan Fund and the National Urban

Reconstruction and Housing Agency. The focus will be on financing

housing for poorer households and for large state-funded housing

projects. Part of the drive is to integrate cities better and to combat the

legacy of the spatial divide that apartheid left behind. Private sector

investment will be sought.

For many decades, South Africa had a retail banking Big Four –

Standard Bank, Nedbank, Absa/Barclays and First National Bank. All of

them have a strong presence in the province, but they have recently

been joined by Capitec Bank as a major player in the retail market.

Banks are working hard to offer products to the previously unbanked.

Nedbank has partnerships with shops such as Boxer Stores

and Pick n Pay where customers can have access to financial services

in previously unserviced areas and also on all days of the week such

as public holidays and Sundays.

Standard Bank’s community-banking initiative offers a low-cost

cellphone-banking service. Retailers can act as agents for the bank,

even in very remote rural areas. Shops such as Shoprite, Pep and Spar

are connected, as are certain spazas.

Merchant banking and investment banking are the most competitive

sectors with companies such as BoE Private Clients, Rand Merchant

Bank and Investec prominent. Investec, a company which engages with

capital markets, private banking and asset management, is dual-listed

in Johannesburg and London.

The insurance market has become more varied over time, with a

greater variety of products now available to more market segments,

including middle-income earners. A typical example of a specific product

that is responding to new realities is Old Mutual’s iWYZE medical

gap cover, designed to pay the difference between what a medical aid

scheme is willing to pay and what the hospital or doctor is charging.

CONTACT INFO

Auditor-General South Africa: www.agsa.co.za

Banking Association South Africa: www.banking.org.za

Financial Services Board: www.fsb.co.za

Insurance Institute of South Africa: www.iisa.co.za

Insurance South Africa: www.insurance.za.org

JSE Limited: www.jse.co.za

Post Bank: www.postbank.co.za

South African Institute for Chartered Accountants:

www.saica.co.za

GAUTENG BUSINESS 2017/18

64


Green

shoots

give hope for growth

Research done by Standard Bank’s Commercial Banking

division points to some positive medium-term indicators

for the provincial economy.

South Africa’s national economy is under significant

pressure, with the outlook for jobs and

growth uncertain, but green shoots in the economic

heartland of Gauteng show that a growth

rate of close to 2% can be achieved over the next

five years.

Standard Bank’s Commercial Banking division has

conducted extensive research into the sectors and

geographic trends in the Gauteng regional economy,

providing key insights into major trends that

will matter for business activity going forward.

It was announced in the February Budget that the

South African economy, which grew by an estimated

0.5% in 2016, is expected to grow by 1.3%

in 2017 and 2% in 2018 as economic conditions

strengthen. But that was before ratings agencies

downgraded the country’s sovereign debt to junk,

leading to much weaker prospects and cuts in

GDP outlooks by many analysts.

However, the Standard Bank research – which

comes after the downgrades were announced

– shows that all sectors in Gauteng are expected

to perform well in a forecast period of 2016-21,

with the exception of the mining sector (which is

anticipated to further contract by -1.4%).

“The slowdown in mining-based returns and

prospects will continue to bite, but promising

results are earmarked to come from remaining

sectors of the economy which resonates with anticipated

growth projections at a national scale,”

65 GAUTENG BUSINESS 2017/18


PROFILE

says David Pike, Standard Bank

Head: Commercial Banking

for Gauteng.

The data shows that the growth

rate achieved over the five years

to 2016 of 2% can be maintained

over the next five years despite

all the challenges.

While manufacturing grew just

0.6% in Gauteng from 2011-16,

it is expected to rise by 1.4% in

the upcoming period to 2021.

Another surprise is that while

the electricity, gas and water

sector fell 1.5% five years ago,

it is expected to lift by 1.3%

now. And while agriculture

declined 1% from 2011-16, it is

expected to advance by 2.1%

over the corresponding fiveyear

period.

“There will certainly be significant

challenges ahead,

especially from the consumer

perspective and we forecast

wholesale, retail trade, catering

and accommodation to rise 1.8%

in Gauteng from 2.4% in the prior five years and for construction

to drop from 2.8% to 1.9% in the upcoming period,” says Mr Pike.

Businesses in the region should not rush in with their eyes wide

shut and would need to ensure they are well placed to take

advantage of the growth shoots that do exist.

Green shoots in the economic heartland of

Gauteng show that a growth rate of close

to 2% can be achieved over the

next five years.

GAUTENG BUSINESS 2017/18

66


PROFILE

Gauteng is a driver for the national

economy – it is estimated in a

Brand South Africa report to contribute

an estimated 34% to the

national economy despite only

occupying 1.4% of the country’s

land area.

“Notably, if Gauteng can achieve

1.9% growth over the next five

years, our current forecast is for

the national economy to also

achieve 1.9%,” says Mr Pike.

Entrepreneurs, investors and

businesses all have a fabulous

opportunity – but having the

knowledge at their fingertips

will be key.

“Our deep dive into these statistics has picked up some significant

trends that all businesses need to be aware of. Each sector and geography

has its unique dynamics but if you break it down you can

truly understand what is likely to happen. Just look at agriculture

in Pretoria, for example: our research shows that activity fell 3.5%

in the previous five years but is now forecast to increase by 1.8% in

the following five years,” says Mr Pike.

“It is no use getting despondent

and thinking profits cannot be

made or expansion cannot be

achieved. With the right partners

by your side with the right strategic

intent, amazing success can

still be achieved over the next

five years,” Mr Pike concludes.

Website: standardbank.co.za

With the right partners by your side with

the right strategic intent, amazing success

can still be achieved over the next

five years.


OVERVIEW

Development finance and

SMME support

Public and private funding is available for entrepreneurs.

National government has created an agency to spur the development

of SMMEs, the Small Enterprise Finance Agency (Sefa),

which falls under the Industrial Development Corporation. The

IDC provides finance across a range of sectors from agriculture

to tourism.

The Small Enterprise Development Agency (Seda) is an agency of the

National Department of Small Business Development, and gives nonfinancial

support to entrepreneurs through training, assistance with filling

in forms, marketing and creating business plans. It helps small businesses

draft applications for loan finance. Several of Seda’s technology incubators

are in Gauteng.

The Masisizane Fund offers loan financing at good rates and training

through its Business Accelerator programme. As a non-profit initiative of

the Old Mutual Group, the fund focusses on the cash flow of potential

businesses rather than insisting on security in the form of property or

something similar.

All the major banks have SMME offerings. Standard Bank’s Community

Investment Fund (CIF) initiative extends loans to informal businesses. The

CIF has distributed more than R7-million to more than 630 businesses

through its six funds in three provinces.

Nedbank has an enterprise-development product that supports businesses

with a turnover up to R35-million with at least 25% black ownership.

The Shanduka Black Umbrellas incubator helps entrepreneurs convert

their good ideas to sustainable business practice. DRA Minerals is putting

R3.8-million into the programme over two years.

Anglo American Zimele, which runs four enterprise development

and investment funds, helps start and expand SMMEs. Since the

CONTACT INFO

Gauteng Growth and Development Agency: www.ggda.co.za

Industrial Development Corporation: www.idc.co.za

National Empowerment Fund: www.nefcorp.co.za

Small Enterprise Development Agency: www.seda.co.za

Small Enterprise Finance Agency: www.sefa.org.za

Unemployment Insurance Fund: www.labour.gov.za

SECTOR INSIGHT

The Gauteng Provincial

Government spent R6-billion

in townships in 2016.

introduction of enterprise hubs,

the number of projects has grown

very quickly and Zimele has processed

more than R500-million in

loans and two applications are received

every day. One of Zimele’s

small business hubs operates out

of Vanderbijlpark.

The Gauteng Provincial

Government spent R6-billion in

townships in 2016, in a deliberate

attempt to get those areas into

the mainstream economy. A total

of 2 800 township enterprises are

now selling goods or services to

the government.

The goal of the provincial

government, with its partners

Harambee Youth Employment

Accelerator and various private

sector companies such

as Microsoft, is to reach half-amillion

young people through

the Tshepo 500 000 programme

by 2019.

The City of Johannesburg has

established seven SMME hubs

where office space, Wifi and

advice and training are available.

GAUTENG BUSINESS 2017/18

68


Language barriers.

9.8 million injury

free man-hours.

Minimal infrastructure.

Political instability.

A 7.2 Mtpa gold plant

delivered 3 months

ahead of schedule.

Impossible?

Not for DRA.

Kibali Gold in the DRC produces 600 000 oz of gold every year. Acknowledging the community,

4000 homes were saved and relocated. Started in 2012, completed in 2014, three

months ahead of schedule with exceptional safety statistics, under budget for our client.

DRAglobal.com

Extraordinary Possibilities


2017 marks the tenth anniversary of the Masisizane Fund.

Established as an initiative of Old Mutual South Africa in

2007 following the closure of the Unclaimed Shares Trust,

the Fund has made good inroads in fulfilling their mandate

to contribute meaningfully to employment creation, poverty

eradication, the reduction of inequality, economic growth

and attraction of investments.

In 2016, loans to the value of R26.3 million were approved

for the Gauteng region alone, creating 201 jobs. 65.8% of

these loans were given to male owned businesses, 29.7%

to female owned and 4.5% to youth owned businesses.

The Masisizane Fund offers tailored integrated and flexible

financial and non-financial solutions including financial

education, capacity development and mentoring support.

“We take time to fully understand each enterprise’s needs,

challenges and characteristics. The understanding and the

partnerships it creates with small business owners adds

value and offers innovative enterprise

finance models aimed at ensuring

long-term enterprise growth,

sustainability and development

impact” says Nandi Gaqa,

Provincial Manager,

Central Region.

Nandipa Gaqa,

Provincial Manager

Central Region

A Masisizane Client Competition was

launched in the second half of 2016

to celebrate outstanding achievements

by our clients. This competition

comprises of five provincial events

followed by a national event in July

2017 where we will celebrate our

10th anniversary and announce

the overall national winner of the

competition.

CTU Manufacturing Co-operative

(CTU) left the 2016 Gauteng

competition with three of the five

awards. CTU Manufacturing Cooperative

won the Best Female

Owned Business, Best Employer of the

Year and Business of the Year awards.

CTU was registered in 2009 and is

a business 100% owned by black

women. The business is managed by

Nonhlanhla Mphachoe and Busisiwe

Bhengu who are seasoned business

women and operates from premises

in Doornfontein in downtown

Johannesburg. CTU specialises in

manufacturing hospital clothing,

linen and medical accessories. Their

range includes bed sheets, night

dresses, theatre gowns, lab coats,

pillow cases, maternity tops, towelling

gowns and pyjamas amongst others.

The business has sustained and built a


MASISIZANE FUND

reputation for itself over years due to

the directors’ ability to execute orders.

CTU initially received a loan from

the Masisizane Fund in 2013 to

purchase the raw material required

to execute orders. In 2014, the loan

was approved for a revolving facility

to enable CTU to execute a 12 month

contract. As a result of this funding,

CTU could increase its revenue and

more than double its number of

employees, sewing machines and

profitability. Achievements like these

make CTU a truly worthy winner of

these three awards.

The remaining awards were won

by GTL Food Manufacturing &

Distribution (Pty) Ltd for Entrepreneur

of the Year and The Coffee Stop

Shop Rivonia for Best Youth Owned

Business.

Busisiwe Bhengu and Nonhlanhla Mphachoe in the factory at CTU.

Zizipho Nyanga, CEO Masisizane, Lorato Phalatse and Mlulami Manjezi, both

Board Members of Masisizane, Nonhlanhla Mphachoe and Busisiwe Bhengu,

directors of CTU and Tumi Sefolo, Sector Head Franchising at Masisizane.

The Masisizane Fund can be contacted at:

Kokstad Flagship Office 039 727 3100 NDlamini2@oldmutual.com

Eastern Cape 043 704 0116 PMlilo@oldmutual.com

Gauteng (incl. North West, Free State) 011 217 1746 NBoqo@oldmutual.com

Western Cape 021 509 5074 ASnyders@oldmutual.com

KwaZulu-Natal 031 335 0402 SNkosi4@oldmutual.com

Limpopo (Incl. Mpumalanga) 015 287 4279 BSemenya@oldmutual.com

OMBDS 01.2017 L10097

An initiative of the

Group

Old Mutual is a Licensed Financial Services Provider


PROFILE

The Small Enterprise

Development Agency

(Seda)

“Together Advancing Small Enterprise Development.”

The Small Enterprise Development Agency (Seda)

is the implementing agency of the Department of

Small Business Development (DSBD) responsible for

providing non-financial support to small, medium

micro enterprises as well as aspiring entrepreneurs

in South Africa. Since its inception in 2005, Seda has

been assisting small businesses which possess the

highest potential for job creation and empowerment.

Notwithstanding this, Seda continues to give

the very best support and service to all entrepreneurs

and businesses requiring assistance.

Seda has designed and developed a number of High

Impact Programmes (HIPs) targeted at addressing

the needs of small and medium businesses. The

success of the programmes depends to some extent

on establishing sufficient value-adding partnerships

with like-minded entities. The acquisition of

additional resources will invariably result in a higher

impact in business development and greater impact

within the region.

Seda Gauteng offers to its prospective partners

11 years of operations experience, and an established

network comprising three branches:

Johannesburg Branch, Tshwane Branch and

Ekurhuleni Branch as well as six co-location points

in the Tshwane District located in Atteridgeville,

Olievenhoutbosch, Mamelodi, Sekampaneng,

Bronkhorstpruit and Mabopane. Inherent in the

organisational culture is the drive towards finding

new and cost-effective ways of improving small

businesses and the environment within which

they operate. Some of Seda Gauteng choice

offerings are:

Last Drop Juice Pty Ltd.

Supplier Development Programme

(SDP)

This programme aim to strengthen the performance

of supplier firms by enabling them to acquire the

skills and capacities they need to make them compete

locally and globally. Supplier Development

presents several advantages to the buying firm as

well as to suppliers and these yield benefits to the

economy. The goals of this programme include

the capacitation of SMEs to have the ability to do

business with corporate-sector entities, provide a

platform to access potential business opportunities

provided by big enterprises, improve growth

and diversification through procurement and, lastly,

facilitate localised supply chain.

GAUTENG BUSINESS 2017/18

72


PROFILE

Export Development

Programme

This programme aims to develop

and generate export-ready small

enterprises that are globally competitive

and able to grow markets

both locally and internationally.

The programme is designed to

help small enterprises in South

Africa to acquire and apply practical

skills in developing their ex-

Li Real Estate.

port capabilities. It consists of the

following components: export

assessment, export training, export development

and promotional support.

Women Enterprise Coaching

Programme

The focus of this programme is to assemble a

group of women-owned enterprises and take

them through coaching by business coaches. These

coaches provides guidance, advice, support and

encouragement and help women business owners

to manage and grow their businesses in areas such

as sales, marketing and team-building.

Manufacturing Support Programme

The programme was developed in line with national

government’s Industrial Policy Action Plan (IPAP) and

the New Growth Path. Furthermore, the programme

is explicitly responding to the specific current challenges,

needs, skills and capabilities of the country’s

SMEs in the manufacturing sector; it assists manufacturers

to be competitive and provides backward and

forward linkages. The objective of the programme

is to assist SMEs in equipment upgrade (through

partners); productivity improvement; increasing

competitiveness, improvement of processes (in all

spheres of the business); and strengthening their

business growth and performance.

CONTACT INFO

Where to find Seda Gauteng

Provincial Office: Mr Colin Leshou,

Provincial Manager

Physical address: No 33 Hoofd Street,

Forum5, 2nd Floor, Braamfontein

Tel: CONTACT +27 11 408 INFO 6520

Email: cleshou@seda.org.za

Joburg Branch: Thabo Sibeko, Branch Manager

Physical address: No 33 Hoofd Street,

Forum5, 2nd Floor, Braamfontein

Tel: +27 11 408 6500

Email: tsibeko@seda.org.za

Tshwane Branch: Caren Coetzee,

Branch Manager

Physical address: 536 Francis Baard, Arcadia

Tel: +27 12 400 8892

Email: ccoetzee@seda.org.za

Ekurhuleni Branch: Thabang Mpalami, Branch

Manager

Physical address: The Business Place,

Cnr Monument and Voortrekker roads,

Kempton Park

Tel : +27 11 973 9640

Email: tmpalami@seda.org.za

73 GAUTENG BUSINESS 2017/18


INTERVIEW

Randburg Chamber

of Commerce and

Industry

Promoting and representing businesses in the

economic powerhouse.

Linda Blackbeard, RCCI CEO

What is the geographic footprint of the Chamber?

The areas we cover are: Randburg, Sandton, Fourways, Lanseria and

Midrand.

What are the key functions of the Chamber?

The key functions of the Chamber are primarily to promote business,

to facilitate introductions, to be the voice of business in the municipal

local and government levels, in defending business in areas of poor

decision-making or unintended consequences of various acts that

are passed.

BIOGRAPHY

Linda Blackbeard ran her own

interior design and hospitality

businesses before taking up

the task of CEO of the RCCI.

Having started as a receptionist,

she quickly moved through the

ranks and gained experience

in marketing, sales and function

coordination with a large

corporate and then two hotel

groups. Her hospitality business

took her to Zimbabwe, Botswana,

Mozambique and Malawi.

Linda serves on a number of forums,

including being an elected

council member of the South

African Chamber of Commerce

and Industry.

What does the Chamber do to support SMMEs?

One of the Chamber’s main focus areas is the development of SMMEs,

finding opportunities for them, business enhancement with regards

to training, helping with business plans, company registrations, giving

direction to ideas that entrepreneurs might have and actually building

them up so that they can run businesses of their own. Teaching

them to form joint ventures with other small businesses to actually

grow and have an opportunity then to tender for works that may be

available through City of Johannesburg. We promote our local businesses

getting the work that needs to be done here. We are trying

to focus on supporting businesses, especially our small businesses

within our space.

Does the RCCI interact with the municipal government

on issues relevant to business?

The Chamber is represented at the Johannesburg Business Forum,

which is a platform to speak at a municipal level with regard to things

like potholes, Pikitup, service delivery, electricity, power outages, etc. We

also sit in the Community Policy Forum Committees and we are active

partners on the committees of LDAC (Local Drug Action Committee),

which is the local organisation driving crime prevention, so we look at

all areas of safety and security for the people within the area.

LINDA BLACKBEARD COURTESY OF OCDMP, A DIVISION OF OWONDO CORPORATE

GAUTENG BUSINESS 2017/18 74


INTERVIEW

Are your members drawn from very different

sectors, or is there a concentration on

types of businesses?

If you’re a registered business you need to be a member

of the Chamber, there is no particular industry

sector. As long as it’s a company and business with

integrity and it is legal, we will support you and try

to help you wherever we can.

Would it be correct to say that the area

covered by the RCCI has some of the

country’s most dynamic businesses?

The areas we cover form the economic powerhouse

of South Africa. I cannot stress strongly enough that

the actual business hub of Sandton alone is responsible

for decision-making (on signing powers and

approval) of a large number of business transactions

taking place across the country.

Are there particular challenges?

There are challenges, Randburg Chambers is – for

the age of the Chamber – not very well known. Our

biggest battle is to create the awareness that we’re

serious about wanting to help you, serious about

moving you forward, connecting you, engaging on

platforms that bring service to the businesses. By

that I mean: are we sitting on the right committees?

Are we connected to the right people at the City of

Johannesburg? Are we dealing at the right levels of

government? Do we have the correct connectivity

to be able to assist you in the areas of your need?

These are questions we continually ask to improve

our offering. Most of all it’s the members who need

to dictate the integrity of our benefits list and not the

people sitting in the chambers. The businesses out

there need to tell us what their needs are. This way

we can provide a better service for them.

What does the future hold?

With all the amazing initiatives planned and in the

process of actioning - including our unique digital

custom-designed Certificate of Origin programme

for export. Businesses and members can look forward

to renewed focus, positive opportunities, and

facilitation in the SADC region for business growth

and opportunity. We are also proposing a name

change to incorporate the very large area we now

service.

CONTACT INFO

Physical address: Unit G8 Atrium Terraces,

272 Oak Avenue, Randburg, Gauteng 2194

Tel: 086 101 9218

Fax: 086 212 4407

Email: admin@rcci.co.za

Website: www.rcci.co.za

75 GAUTENG BUSINESS 2017/18


INTERVIEW

Advancing economic

transformation

Gauteng Black Management Forum Provincial

Chairperson, Langalethu Manqele, outlines

the BMF’s goals.

Langalethu Manqele,

Black Management

Forum Gauteng Provincial

Chairperson

BIOGRAPHY

Langalethu Manqele is the

Manager in Equities & Equity

Derivatives at the Johannesburg

Stock Exchange (JSE),

having previously worked for

Nedbank CIB Markets as a

Senior Manager. Langa chairs

the Editorial Committee of the

African Leader, a bi-annual

publication of the BMF. He is a

member of the dti B-BBEE Advisory

Council Sub-Committee

on the Preferential Procurement

Policy Framework Act. He holds

Bachelors Degrees in International

Finance and Investments,

from CIDA City Campus.

What are the main objectives of the Black Management

Forum (BMF)?

The BMF is a thought leadership and a business lobby organisation

focused on the development of managerial leadership and advancement

of socio-economic transformation in South Africa. The BMF

serves as the leading voice of professionals and executives – primarily

black people – in corporate South Africa on matters of workplace transformation.

Our focus has evolved over time to encompass economic

development and trade policy with a strong focus on the creation of

black-owned and managed enterprises.

Are there particular focus areas?

The BMF in Gauteng is currently tackling three areas. The first one is an

Enterprise and Supplier Development through a “Routes to Markets”

strategy. At a policy level, we have partnered with the Centre for

Competition and Economic Development (CCRED) to review and

make recommendations on Competition, Trade and Industrial Policy.

The second area is that of Capital Markets; this is our response to the

challenge of capital and therefore of B-BBEE Equity Ownership. We are

in talks with the JSE and the other newly formed small stock exchange,

ZARX. We are negotiating MoUs with both exchanges that will commit

them to helping emerging black businesses raise expansion capital

and, in the process, create more black-owned and managed listing

sponsors and stock-broking firms.

The third and final area of focus is Employment Equity. This is targeted

at arresting the decline of black executives as reported by the

Jack Hammer Report in 2015 and the latest Report of the Commission

of Employment Equity.

What are some of your most recent achievements?

We recently held a successful Policy Conference on the role of industrial,

competition and trade policy in the achievement of inclusive growth.

The dti and the European Union have endorsed the BMF to receive

EUR100 000 funding through the EU-SA Dialogue Facility Fund to

conduct research on the Impact of Foreign Direct Investments from

the EU in South Africa.

GAUTENG BUSINESS 2017/18

76


Making a big difference to

a small enterprise

PROFILE

Training at Work benefited from Standard Bank support.

Training at Work is a training and consulting private company established

in 2001. In 2006 the company was converted from a closed

corporate to a limited private company. The company is 100% woman

owned by Patricia Chiloane. Training at Work employs nine full-time

administrative staff members with more on a contract basis.

The Standard difference

Banking advice and support can make a

big difference to a small business starting

out, as Patricia Chiloane, Managing Director

of Training at Work, testifies. “The Small

Enterprise team taught me to have a separate

business account with the personal account,”

she remembers. “I was also advised

about the importance of audited financials

and management accounts in order to keep

business sustainable.

Patricia Chiloane,

Managing Director of

Training at Work.

“They even introduced me to the private banking section. I was told if

I need anything to support the business, I must not hesitate to contact

my business banker.”

When times were tough, Patricia was able to continue to build the

business even though cash flow was a problem. To this day, Training at

Work continues to grow. “We have never said no to business because

of a lack of finance,” says Patricia. An overdraft facility allowed the

young company instead to take on “any challenge because the bank

was there financially”.

“The bank went further by providing us with the Business Banking

services. Today we make all banking transaction in the comfort of our

offices. We don’t have to go and queue for long hours; instead the

business banker will come and assist us from our office.

“We appreciate the support of our bank and we hope more SMMEs can

take the opportunity and use it to grow their small business.”

Business offering

Training at Work offers

Management, Business, Artisanal,

and IT Programmes to young people,

employees and management.

Training programmes help school

leavers, employers, employees

and the unemployed to better

themselves through education

and training, so that they can improve

their social and/or economic

condition.

The consulting service is targeted

at employers, non-government organisations

and governmental bodies.

This service includes: companyspecific

skills programmes, training

workshops and learnerships, custom

training material (accredited

and non-accredited), training programmes

evaluations, impact studies

and surveys, and HR consulting

and competency audits. Training at

Work is accessible throughout the

country through mobile training,

including in rural areas.

Contact information

Address: 15 Leonie Street,

Cnr Rifle Range, Winchester

Hills, Johannesburg

Tel: +27 11 433 9318

Email:

info@trainingatwork.co.za

Website:

www.trainingatwork.co.za

77 GAUTENG BUSINESS 2017/18


LISTING

Gauteng Provincial Government

A guide to Gauteng’s provincial departments and their MECs.

Office of the Premier

Premier: David Makhura

Physical address: East Wing, 13th Floor, Gauteng Provincial Government

Building, 30 Simmonds Street, Johannesburg 2001

Tel: +27 11 355 6000

Fax: +27 11 836 9334

Website: www.gautengonline.gov.za

Department of Agriculture

and Rural Development

MEC: Lebogang Maile

Physical address: Diamond Corner Building, 68 Eloff Street,

Johannesburg 2001

Tel: +27 11 240 2500 | Fax: +27 11 240 2619

Website: www.gdard.gpg.gov.za

Department of Community Safety

MEC: Sizakele Nkosi-Malobane

Physical address: 64 Pritchard Street, Johannesburg 2001

Tel: +27 11 689 3600 | Fax: +27 11 689 3660

Website: www.gautsafety.gpg.gov.za

Department of Cooperative Governance

and Traditional Affairs

MEC: Mr Paul Mashatile

Physical address: 63 Fox Street, Johannesburg 2001

Tel: +27 11 355 4884

Website: www.cogta.gpg.gov.za

Department of Economic Development

MEC: Lebogang Maile

Physical address: Matlotlo House, 94 Main Street, Johannesburg 2001

Tel: +27 11 355 8000 | Fax: +27 11 834 1972

Website: www.ecodev.gpg.gov.za

Department of Education

MEC: Panyaza Lesufi

Physical address: 111 Commissioner Street, Johannesburg 2001

Tel: +27 11 355 0000 | Fax: +27 11 355 0542

Website: www.education.gpg.gov.za

Department of e-Government

MEC: Barbara Creecy

Physical address: Imbumba House, 75 Fox Street, Johannesburg 2107

Tel: +27 11 689 6000 | Fax: +27 11 355 2112

Website: www.egov.gpg.gov.za

Department of Health

MEC: Dr Gwen Ramokgopa

Physical address: Pixley Ka Isaka Seme Street​, Marshalltown,

Johannesburg 2001​

Tel: +27 11 355 3000 | Fax: +27 11 355 3811

Website: www.health.gpg.gov.za

Department of Human Settlements

MEC: Paul Mashatile

Physical address: Bank of Lisbon, 37 Sauer & Albertina Streets,

Marshalltown 2107

Tel: +27 11 355 4000 | Fax: +27 11 355 4000

Website: www.gdhs.gpg.gov.za

Department of Infrastructure Development

MEC: Jacob Mamabolo

Physical address: The Corner House, Cnr Commissioner & Sauer

Streets, Marshalltown 2107

Tel: +27 11 355 5855 | Fax: +27 11 355 5012

Website: www.did.gpg.gov.za

Department of Roads and Transport

MEC: Dr Ismail Vadi

Physical address: 13th Floor, Sage Life Building, 41 Simmonds Street,

Johannesburg 2001

Tel: +27 11 355 7000

Website: www.roadsandtransport.gpg.gov.za

Department of Social Development

MEC: Nandi Mayathula-Khoza

Physical address: Thusanong Building, 11th Floor, 69 Commissioner

Street, Johannesburg 2001

Tel: +27 11 355 7600 | Fax: +27 11 355 7753

Website: www.socdev.gpg.gov.za

GAUTENG BUSINESS 2017/18

78


LISTING

Department of Sport, Arts, Culture

and Recreation

MEC: Faith Mazibuko

Physical address: 35 Rissik Street, Surrey House, Johannesburg 2001

Tel: +27 11 355 2500 | Fax: +27 11 355 2505

Website: www.sacr.gpg.gov.za

Treasury

MEC: Barbara Creecy

Physical address: 75 Fox Street, Imbumba House,

Johannesburg 2107

Tel: +27 11 227 9000

Web: www.treasury.gpg.gov.za

Gauteng Local Government

A guide to metropolitan, district and local municipalities in Gauteng Province.

CITY OF JOHANNESBURG

METROPOLITAN MUNICIPALITY

Physical address: Metropolitan Centre, 1st Floor, Council Chamber Wing,

158 Loveday Street, Braamfontein

Tel: +27 11 407 7557

Fax: +27 11 339 5704

Website: www.joburg.org.za

CITY OF TSHWANE

METROPOLITAN MUNICIPALITY

Physical address: Nunitoria Building, cnr Madiba and Lilian Ngoyi

streets, Pretoria

Tel: +27 12 358 4900 | Fax: 086 732 5458 (SA only)

Website: www.tshwane.gov.za

EKURHULENI METROPOLITAN

MUNICIPALITY

Physical address: Cnr Queen and Cross streets, Germiston

Tel: +27 11 999 0906 | Fax: +27 11 999 1564

Website: www.ekurhuleni.gov.za

SEDIBENG DISTRICT MUNICIPALITY

Physical address: Cnr Beaconsfield and Leslie streets, Vereeniging

Tel: +27 16 450 3017

Fax: +27 16 421 3182

Website: www.sedibeng.gov.za

Emfuleni Municipality

Tel: +27 16 950 5452

Fax: +27 16 950 5001

Website: www.emfuleni.gov.za

Lesedi Municipality

Tel: +27 16 340 4314

Fax: 086 601 9837 (SA only)

Website: www.lesedilm.co.za

Midvaal Municipality

Tel: +27 16 360 7400

Fax: +27 16 362 2794

Website: www.midvaal.gov.za

WEST RAND DISTRICT MUNICIPALITY

Physical address: Cnr Sixth and Park streets, Randfontein

Postal address: Private Bag X033, Randfontein 1760

Tel: +27 11 411 5000

Fax: +27 11 693 7833

Website: www.wrdm.gov.za

Merafong City Municipality

Tel: +27 18 788 9500

Fax: +27 18 787 2146

Website: www.merafong.gov.za

Mogale City Municipality

Tel: +27 11 951 2000

Fax: +27 11 953 4571

Website: www.mogalecity.gov.za

Rand West City Muncipality

Tel: +27 11 411 0000

Fax: +27 11 693 1736

Website: www.randwestcity.co.za

79 GAUTENG BUSINESS 2017/18


LISTING

INDEX

Black Management Forum (BMF).............................................................................................................................................76

DRA Projects........................................................................................................................................................................................ 69

Draw the Line Business Solutions.......................................................................................................................................... 59

Ekurhuleni Metropolitan Municipality................................................................................................................................ IFC

Hoogland Health Hydro............................................................................................................................................................. . 55

Indaba Hotel, Spa & Conference Centre ............................................................................................................................. 56

Masisizane Fund................................................................................................................................................................................ 70

Nedbank....................................................................................................................................................................................... 29 - 35

Old Mutual.................................................................................................................................................................................. 36 - 39

Randburg Chamber of Commerce and Industry (RCCI).................................................................................... ....... 74

Selfmed........................................................................................................................................................................................ 40, OBC

Small Enterprise Development Agency (Seda) .............................................................................................................. 72

Standard Bank................................................................................................................................................. 7, 9, 65 - 67, 77, IBC

Tshwane Economic Development Agency (TEDA) ....................................................................................................... 2

Unemployment Insurance Fund (UIF)...................................................................................................................................... 5

Zimile Consulting Engineers ..................................................................................................................................................... 24

GAUTENG BUSINESS 2017/18

80


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