Gauteng Business 2017-18 edition

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
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