Gauteng Business 2019-20 edition

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The 2019/20 edition of Gauteng Business is the 11th issue of this highly successful publication that has established itself as the premier business and investment guide for the Gauteng Province.

In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on ambitious plans to re-imagine the central business district of Johannesburg, a trend in urban development that is growing across the province, and on the impact of renewable energy in urban settings. The Gauteng Growth and Development Agency outlines its priorities and showcases the success of the OR Tambo Special Economic Zone in these pages. Subscribe for monthly updates here: https://www.globalafricanetwork.com/subscribe/

GAUTENG

BUSINESS

2019/20 EDITION

THE GUIDE TO BUSINESS AND

INVESTMENT IN GAUTENG PROVINCE

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Gauteng Growth and

Development Agency

The Gauteng IDZ launches the world’s second-largest

refrigeration plant.

The world’s second-largest refrigeration

plant and the biggest food processing

operation in the southern hemisphere

was launched on 5 April 2019 at the OR

Tambo Special Economic Zone (SEZ). Among the

dignitaries in attendance were Premier of Gauteng

David Makhura, the DG of the Department of Trade

and Industry (the dti) Mr Lionel October, as well

as the CEO of Woolworths South Africa Ms Zyda

Rylands. Speaking at the launch event, Rylands

said, “I am very proud to be opening this worldclass

food production facility. In2food has been a

Woolies Food partner for more than 28 years and

this project was a natural extension of that relationship,

with the shared goals of driving innovation

and job creation.”

In2Foods Group’s choice of establishing its

state-of-the-art factory in the OR Tambo SEZ has

demonstrated that the government of Gauteng

has investor-friendly policies and systems to ensure

that public private partnerships (PPP) can deliver

the type of value that is required by foreign direct

investment initiatives. The project has a total

development value of R381-million, from In2Foods,

the dti and the Gauteng Provincial Government,

the latter who have entered into a long-term lease

on the land with the Airports Company of South

Africa. This investment will stimulate real economic

growth in Gauteng, creating over 600 direct jobs

and sustaining a further 5 000 jobs throughout the

agricultural value chain.

The dti played a major role in providing funding

for the project. The prime location of the OR Tambo

Special Economic Zone (SEZ), adjacent to the OR

Tambo International Airport, places In2Foods

Group at the heart of Africa’s best transport and

logistics hub.

Through its designated SEZ, the Gauteng

IDZ Development Company has access to

significant investment incentives packaged at

national government for investors and companies

located in an SEZ. In2Food’s new plant has

been developed to the quality specifications of

Woolworths, which it has been supplying food

products to for 28 years. In2Food will also be

exporting its products to other markets such as

the UK.

The GGDA, through its subsidiary, Gauteng

IDZ Company, has made significant strides

in attracting investments to the OR Tambo

SEZ, primarily focused in the aviation, agrofood

processing, jewellery, electronics and

pharmaceutical industries.

Skills development initiatives have been

introduced to allow for broad participation by

individuals and communities to take advantage

of investment growth in the OR Tambo SEZ.

“In the last five years, the province of Gauteng

attracted foreign direct investments to the tune

of R199-billion and created more than 30 000

jobs,” said Gauteng Premier David Makhura

during his 2019 budget speech.


Food factory

The In2Food Group factory is 22 708m² in size and

is located on 3.5ha of land located on the northern

precinct of the OR Tambo International Airport

Special Economic Zone.

Following a tour of the factory which dignitaries

and guests were treated to, Gauteng Premier David

Makhura remarked: “I am truly fascinated by what

it takes to put food together for Woolworths Food,

indeed we are proud of In2Food and the important

role you continue to play in job creation and economic

empowerment within South Africa’s borders.”

The In2food factory will also be the first

registered level five eco-friendly industrial site in

South Africa, as rated by the Green Building Council

of South Africa. The site includes sustainable

waste management processes, four boreholes,

water recycling and storage, and 8 000m² of solar

panels which produce 25% of the facility’s energy

requirements. Natural gas is used to run boilers, staff

kitchens, ablution facilities and geysers.

The Special Economic Zone was established

to support industrial development in the Gauteng

Province with a specific focus on export-oriented,

value-added industry, concentrated around OR

Tambo International Airport, in Ekurhuleni. Gauteng

was awarded a permit to develop the Industrial

Development (Special Economic) Zone at OR Tambo

International Airport in 2010. The SEZ is part of the

Ekurhuleni OR Tambo Aerotropolis, with a high development

concentration. The industrial development

zone offers ease of access to Africa’s consumers

through its connectivity capabilities. The OR Tambo

SEZ is located in or within close proximity to OR

Tambo International Airport, with high levels of security

to accommodate high-value inputs. A total of

82% of South Africa’s air cargo is transported through

OR Tambo International Airport.

Investors in the SEZ will, among others, enjoy

the following benefits:

• Reduced corporate tax from 28% to 15%

• Zero rating of VAT for goods purchased for

value addition in the zone

• Customs duty exemption for raw materials

or equipment used for production in

the SEZ

• Employment tax incentive for investors

operating in the zone

• Exemption from Value Added Tax for goods

produced in the zone for export.

About the GGDA

The GGDA Group aims to create an enabling

environment for growth-targeted investment

facilitation, strategic infrastructure development

and social transformation, thus positioning

Gauteng as a leading Global City Region.

The Gauteng province offers solid investment

opportunities with many competitive advantages:

• It is a gateway to Africa and the world, with

a considerable number of global companies

• Diversity of economic sectors

• Leading universities and research institutions

• A talented workforce (ranked 2nd in Africa by

WEF Competitiveness Index)

• Infrastructure

• Diplomatic missions

• Democratic governance

• It is home to a quarter of South Africa’s population

and generates 35% of the country’s GDP

• It has a global cost advantage when compared

with peers in terms of cost of land, cost of labour

and the exchange rate.

GGDA subsidiaries

Automotive Industry Development Centre, The

Innovation Hub, Gauteng Industrial Development

Zone, Constitutional Hill Development Company

and Invest SA Gauteng.

Contact details

Tebogo Mohajane, Marketing Manager

Tel: +27 11 085 2473

Email: tebogom@ggda.co.za

Website: www.ggda.co.za


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CONTENTS

CONTENTS

Introduction

Gauteng Business 2019/20 Edition

Foreword7

A unique guide to business and investment in Gauteng.

Special features

Regional overview 8

Inner-city regeneration and Special Economic Zones are

bolstering growth in Gauteng.

Upbeat about downtown 14

Property companies are investing in mixed-use precincts.

Powering cities with renewable energy 16

A shift in policy will promote small-scale generation.

Economic sectors

Agriculture26

Agri-processing facility launched in Gauteng IDZ.

Mining27

The Mandela Mining Precinct aims to boost the sector.

Oil and gas 28

Gauteng is joining the switch to gas.

Engineering32

Investments in railways and infrastructure are on the rise.

Transport and logistics 36

Development corridors promise increased traffic.

Manufacturing38

Incentives aim to stimulate the sector.

Automotive40

The major marques are investing in new models.

Pharmaceuticals42

A licence to make a biosimilar drug has been granted.

GAUTENG BUSINESS 2019/20

4


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CONTENTS

Education and training 43

New sectors are demanding new skills.

Tourism46

Casino competition is fierce.

Banking and financial services 50

New stock exchanges are attracting investors.

Development finance and SMME support 52

Nissan’s Rosslyn plant is hosting an incubator.

References

Sector contents 24

Overview of the main economic sectors of Gauteng.

Index56

ABOUT THE COVER

About the cover: Image by THEGIFT777/iStock by Getty Images. The

Nelson Mandela Bridge stretches southwards to Newtown over the

Braamfontein railyards. The Southern Life Centre looms over the

glass shard which is the old JSE building in the middle distance. The

Standard Bank Centre to the left held the title of the city’s tallest

building for just two years after it was built in 1968.

GAUTENG BUSINESS 2019/20

6


CREDITS

Publisher: Chris Whales

Publishing director:

Robert Arendse

Editor: John Young

Online editor: Christoff Scholtz

Art director: Brent Meder

Design: Tyra Martin

Production: Lizel Olivier

Ad sales: Sandile Koni, Shiko Diala,

Gavin van der Merwe,

Sam Oliver, Gabriel Venter,

Vanessa Wallace, Jeremy Petersen

Managing director: Clive During

Administration & accounts:

Charlene Steynberg and

Natalie Koopman

Distribution & circulation

manager: Edward MacDonald

Printing: FA Print

Gauteng Business

A unique guide to business and investment in Gauteng.

The 2019/20 edition of Gauteng Business is the 11th issue

of this highly successful publication that has established

itself as the premier business and investment guide for

the Gauteng Province.

In addition to the regular articles providing insight into each of

the key economic sectors of the province, there are special features

on ambitious plans to re-imagine the central business district of

Johannesburg, a trend in urban development that is growing across

the province, and on the impact of renewable energy in urban settings.

The Gauteng Growth and Development Agency outlines its priorities

and showcases the success of the OR Tambo Special Economic Zone

in these pages.

To complement the extensive local, national and international

distribution of the print edition, the full content can also be viewed

online at www.globalafricanetwork.com under e-books. Updated

information on Gauteng is also available through our monthly

e-newsletter, which you can subscribe to online at www.gan.co.za, in

addition to our complementary business-to-business titles that cover

all nine provinces as well as our flagship South African Business title.

Chris Whales

Publisher, Global Africa Network Media

Email: chris@gan.co.za

FOREWORD

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.

Member of the Audit Bureau of Circulations

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

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 | Both the cover image and the image that

introduces the Key Sectors section are by THEGIFT777/iStock by

Getty Images. Other images: Airports Company South Africa, C & G

Holdings, Gauteng Tourism, Gautrain, iStock by Getty Images, Nissan

SA, SA Tourism/Flickr, Sontonga Lofts, Waterfall City.

7

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 2019/20


SPECIAL FEATURE

A REGIONAL OVERVIEW OF

GAUTENG

Inner-city regeneration and Special Economic Zones are bolstering growth

in Gauteng.

By John Young

Gauteng is South Africa’s smallest province

in terms of landmass but in every other

respect it is a giant. The province is the

nation’s key economic growth engine.

At 18 176km², the province makes up just 1.5% of

South Africa’s territory, but even that aspect showed

growth in 2018 when the territory of Ekangala was

formally transferred from Mpumalanga Province to

Gauteng Province. The land had previously been

part of the KwaNdebele homeland.

The 14.3-million people living in Gauteng in 2017

generated a gross domestic product of R1.59-trillion,

about a third of South Africa’s GDP (StatsSA).

Urban regeneration is a strong theme across

Gauteng. Provincial and municipal programmes aim

to stimulate township economies and integrate them

into the broader economy. All of the metropolitan

municipalities are engaged in reviving their inner

cities. Johannesburg’s efforts are the subject of an

article elsewhere in this publication. One of the City

of Tshwane’s projects involves the Salvokop Precinct

which lies between the city centre and Freedom Park.

The City of Tshwane is collaborating with the

Danish city of Aarhus. The Danes bring expertise in

sustainable urban planning and issues such as safe

non-motorised green transport, effective water and

storm-water management, and high-quality public

spaces are being introduced in conjunction with

planning for new buildings. The plan is to create a

mixed-use precinct comprising offices, residences,

retail outlets and restaurants. Heritage buildings are

also part of the project as national monuments and

the Freedom Park are nearby.

A study has shown that the area’s water reservoir

has potential for green hydro energy and a plan

is being developed to tackle water supplies and

management. The University of Pretoria is another

partner in the project.

Another strategy to increase economic

growth and attract investment is through Special

GAUTENG BUSINESS 2019/20

8


SPECIAL FEATURE

Economic Zones (SEZs). The OR Tambo SEZ, aligned

to the country’s busiest airport, is one of several

sites allocated by the South African government

to stimulate investment in targeted sectors. The

SEZ supports the development of businesses that

work in the beneficiation of precious metals and

minerals sector, with a focus on light, high-margin,

manufacturing of South African precious and semiprecious

metals. Export is encouraged. The site

has specific precincts in which various sectors are

given priority.

The National Department of Trade and Industry

(dti) is the lead agent in the creation of Special

Economic Zones, which are part of the national

Industrial Policy Action Plan (IPAP). SEZs are designed

to attract investment, create jobs and boost exports.

Development corridors have been identified to

channel investment into areas where it will make

a big impact and where returns on investment

will be good. The Albertina Sisulu Corridor is one

such initiative. Linked to the idea of creating an

“aerotropolis” around OR Tambo International

Airport (ORTIA), the corridor connects the airport

(in Ekurhuleni Metropolitan Municipality) with innercity

Johannesburg.

Various hubs along the route are being

developed with particular focus areas. These

include S&J Industrial Hub in Germiston, Bredell

Precinct (agriculture), Dries Niemand Precinct

(transport) and Kempton Park CBD Precinct

(economic).

The concept of a Gauteng City Region has been

embraced by planners in the province. Individually,

the biggest Gauteng cities contribute to the national

GDP as follows: Johannesburg (15%), Tshwane (9%)

and Ekurhuleni (7%).

The following development corridors of the City

Region have been identified, each with its own

industries and comparative advantages:

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, agriprocessing

9 GAUTENG BUSINESS 2019/20


SPECIAL FEATURE

Freedom Park in Pretoria commemorates South Africans who lost their lives in the struggle for freedom.

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.

At a meeting attended by all the mayors of the

region and the National Minister of Finance. 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”. Opportunities for the private

sector were mentioned in connection with several

aspects of the City Region indaba, including 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 terms of infrastructure in the

Gauteng province in the 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.

Two major Gauteng infrastructure projects will

benefit from the announcement that national

government is creating a R100-billion infrastructure

fund. The Gauteng Schools Project aims to build 110

new schools and the Kopanong Precinct project

will upgrade all provincial government buildings in

the City of Johannesburg. The combined budget

of these projects, both of which will be conducted

as public-private partnerships, is R14.8-billion. The

Gauteng Infrastructure Finance Agency (GIFA) has

a pipeline of 20 projects.

A World Bank report has shown that a 10%

increase in infrastructure spending results in a 1%

growth in GDP.

The network fibre of the province has been

extended to 1 500 kilometres with the community

given access through clinics, schools, libraries

and community centres. The aim is to have 100%

broadband connectivity in Gauteng by 2020.

Efforts are being made to improve the

regional economy by identifying blockages and

shortcomings. Researchers from the universities of

Johannesburg and Pretoria (through the Gordon

GAUTENG BUSINESS 2019/20

10


Gauteng Growth and

Development Agency

announces GGDA APPOINTS new CEO

NEW

GROUP CEO

PPOINTS NEW GROUP CEO

Gauteng aims to be a globally competitive city region.

Mosa Tshabalala, CEO

Ms Mosa Tshabalala

was appointed in May

Mosa Tshabalala 2019 by the board of

the Gauteng Growth

and INDUSTRY: Development Public Sector Finance and Economic Agency Development as its

Group Chief Executive Officer.

Having served as the Group Chief

Financial Officer for the Gauteng

Growth and Development Agency,

responsible for ensuring financial

and legislative compliance and as

a former board member of the

Automotive Industry Development

Centre (AIDC), Ms Tshabalala was a

perfect fit for the role.

Now at the helm of the GGDA,

she will drive the mandate to

grow the economy by positioning

Gauteng as a globally competitive

city region.

EDUCATION: BCom Accounting Degree, Accounting Honours Degree, Certificate in the Theory of Accounting –University of

Johannesburg (Former Rau), Chartered Accountant-CA [SA]

OCCUPATION: GGDA Group CEO, Entrepreneur, Business Woman , Non-executive Director, Youth development

PROFILE

The board of the Gauteng Growth and Development Agency has named Ms Mosa Tshabalala a

Executive Officer for one of the country’s key Provincial Investment Promotion Agency.

The former Chief Financial Officer for the GGDA Group topped the list of close to a dozen can

“The selection process which was carried out by the Board in assessing internal and externa

rigorous one. Ms Tshabalala’s business acumen and effective stewardship in the various role

in the Group left us with no doubt that she is the right leader to steer the GGDA in the right d

are delighted and proud to announce this appointment.” added the Group Chairperson of the

Mahlaule

Up until recently as the Group CFO, her focus was on ensuring financial and legislative comp

Gauteng Group of holding companies and ensuring that the Group is financially stable and

progressive in all respects.

The mandate of the GGDA is to spearhead and coordinate economic

development efforts for the entire Gauteng province, with emphasis on both

local and foreign direct investment.

The four subsidiaries tasked with the implementation of the mandate are:

• The Automotive Industry Development Centre (AIDC)

• The Innovation Hub (TIH)

Gauteng Industrial Development Zone

• The Constitution Hill Development Company (Conhill)

This financial expert's career spans over a number of sectors and has over the years include

both the public and private sectors.

The qualified Chartered Accountant has been elbow-deep in the workings of private sector a

large infrastructural projects, facilitation of foreign direct investments and domestic

investments. Shortly after she got her Honours Degree- BCom in Accounting from the now U

Johannesburg she went to work for Deloitte and Touche.

While at Deloitte she also had a stint working at the New York office- Financial Services audi

division-where she was assigned to work with the Consulting Business’s premium clients.

Later she moved on to a CFO position at a Johannesburg based business and entrepreneur in

organisation-Awethu Project Business Incubator- where she was responsible for strategical

company in the right direction.

Tshabalala helped establish an ARC Skills Africa base for the United Arab Emirates training

resulted in the growth of the company to the East and West Africa.

Similarly she has an impressive experience in the entrepreneurial space having first worked

business incubation and eventually venturing into the world of financial and business

consulting. Focusing on areas such as risk management, business strategy, capital raising a

development.

Based in Rosslyn in Tshwane, the AIDC owns and manages the Automotive

Supplier Park (ASP) and provides services to the automotive sector, including

automotive Original Equipment Manufacturers (OEMs). The AIDC

also provides assistance through automotive investment facilitation, skills

development and training, incubation programmes and supply chain development.

In short, the AIDC assists carmakers to stay in business, create

more jobs and enables new players to access the market.

The Innovation Hub (TIH), also based in Tshwane, is the first Science and

Technology Park of international standard in South Africa. It was established to

fast-track the development of smart industries – high technology sectors – in

Gauteng. As part of its role to be the catalyst for innovation and a knowledge

economy driver for the province, it has two key focus areas:

• Information and Communications Technology (ICT), biotechnology

• Renewable energies and low carbon economy technologies (a green

economy).

She has spent the last few years in Gauteng’s public sector working as the Group’s CFO resp

combined annual budget of over a R1 billion over the years.

The new CEO who brings in a wealth of experience and strategic management capabilities ha

the Boards of :

• Automotive Industry Development Centre as a Non- Executive Director (a subsidiary of GG

• Member of the Audit and Risk Committee- GGDA

She serves as a non-executive Director in other Boards such as Listamaiso (Pty) Limited- the

of the bus rapid transit system- Johannesburg- “Rea Vaya”.

Key to Tshabalala’s focus is ensuring that GGDA’s work and the volumes of investment that g

translate to real change in the lives of the people of the Province in terms of creation of jobs

catalytic impact on the economic activity of the region.

“I am honoured to have been trusted with this mammoth task. Our work as the GGDA Group

primarily the mindset of changing the face of Gauteng for better by fighting unemployment, i

empowering the people of this region.”

About the GGDA:

The GGDA Group aims to create an enabling environment for growth targeted investment fac

infrastructure development and social transformation, thus positioning Gauteng as a leadin

GGDA subsidiaries:

Automotive Industry Development Centre, The Innovation Hub, Gauteng Industrial Developm

Constitutional Hill Development Company and Invest SA Gauteng.

The Industrial Development Zone (IDZ) is conveniently located in close proximity

to the OR Tambo Airport, which is the African continent’s busiest international

airport. While it was established to support industrial development in Gauteng,

its specific focus is on mineral beneficiation and export-oriented industry.

The Invest SA Centre, strategically located in the Sandton business district,

provides a seamless service to prospective investors. It offers information and

research services and pre- and post-investment support services. It maintains

strategic partnerships with the Department of Trade and Industry (the dti), the

South African Revenue Service (SARS), Home Affairs and municipalities, among

other institutions.

The Constitutional Hill Development Company (Conhill) delivers heritage,

education and tourism programmes, and contributes to the revitalising of the

Johannesburg inner city.

11

GAUTENG BUSINESS 2019/20


SPECIAL FEATURE

Institute of Business Science) are examining

employment rates, empowerment policies and the

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.

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.

Overview of the province

Gauteng shares borders with four provinces, the Free

State, North West, Limpopo and Mpumalanga. The

southern border of the province is the Vaal River and

most of the province is located on the Highveld. The

Witwatersrand, which runs through Johannesburg,

marks the continental divide: rivers running to the

north drain into the Indian Ocean, rivers running south

drain into the Atlantic Ocean via the Vaal and Orange

Rivers. Gauteng draws its water from a series of interconnected

river transfer systems. A major source of

water is the Lesotho Water Highlands Project.

The Witwatersrand was the source of the gold

that drew so many thousands of people to the area

in the late 19th century and was the origin of the

word for South Africa’s currency, the “rand”.

Gauteng is a leader in a wide range of economic

sectors: finance, manufacturing, commerce, IT and

media among them. 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 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. This

sector is seen as a driver of future growth.

In Johannesburg, financial services and

The Cradle of Humankind is a UNESCO World

Heritage Site.

commerce predominate. The JSE, Africa’s largest

stock exchange, is in Sandton and several new stock

exchanges have recently received licences.

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 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.

GAUTENG BUSINESS 2019/20

12


INTERVIEW

Supporting beneficiation

and manufacturing

Gauteng IDZ Company Chief Executive Officer Seipati

Mangadi reports on the OR Tambo SEZ.

Seipati Mangadi, CEO

The Special Economic Zone

mobilises industry in Gauteng

INTRODUCTION

Seipati Mangadi has held

the position of CEO of the

GIDZ (Gauteng Industrial

Development Zone) since

2013 and has witnessed the

growth her business unit has

contributed to the Gauteng

province. As one of the GGDA’s

four subsidiaries, the GIDZ was

created to support industrial

development in Gauteng. A key

project that fulfils this mandate

is the OR Tambo SEZ (Special

Economic Zone).

What is the sectoral focus of the SEZ?

Considering the competitive location of being in close proximity to OR Tambo

International Airport, the focus is on mineral beneficiation and on additive

manufacturing with localisation an important additional element. This is highvalue,

low-mass beneficiation. Many value chains are linked to industries that

use the airport. Ekurhuleni itself is the manufacturing hub of the country so

possible investors are here, infrastructure is in place to support this process.

Do you dovetail your plans with other bodies?

The primary rationale of being located in that area is to be a catalyst for the

broader aerotropolis economic strategy that Ekurhuleni has adopted. We

work directly with ACSA and the Metro to make sure that we have synergies

on the development that we attract. The Gauteng IDZ is a special purpose

vehicle of the Gauteng Growth and Development Agency (GGDA), which is

implementing economic development in the province.

Is the Jewellery Manufacturing Precinct (JMP) an example?

Absolutely. The Department of Mineral Resources has put forward a

beneficiation strategy and we have chosen to implement a part of that. We

chose jewellery beneficiation as a starting point.

How is the JMP progressing?

The design stage has been completed, we are just waiting for plans to be

approved then the next stage is to put it out to the market for a contractor

to come on board and develop. We have over 90% uptake in the pipeline. In

May 2020 we should be able to give beneficial occupation to the tenants. By

late 2020 there will be buildings for our tenants. The alumni of the existing

design studio in Germiston regularly scoop up awards in the industry.

What are your short- and medium-term plans?

Approximately R640-million will be spent on the first phase of OR Tambo

precinct which is 7.5 hectares in extent. The JMP (Southern Precinct) will be

live in 2020. Parallel to that we have started with the conceptualisation of the

second phase of OTR precinct, which is 29 hectares. There is definitely interest

to come into the SEZ, which starts with domestic direct investment. Then

the foreign direct investment will come. Every day we are fielding enquiries

from potential tenants.

13

GAUTENG BUSINESS 2019/20


SPECIAL FEATURE

Upbeat about downtown

Property companies are investing in mixed-use precincts.

The Johannesburg CBD is becoming more pedestrian-friendly.

Absa Tower Main, one of Johannesburg’s

biggest and most easily identifiable

buildings, is undergoing a revamp as

one of several ambitious inner-city

rejuvenation projects.

Some are purely private in nature, others

involve collaboration between developers, NGOs

and the City of Johannesburg and its agencies.

A thorough revamp of the Absa building

anchors a larger urban revival project that a

pedestrian-friendly connection along Fox

Street between the Absa campus and the

Mabobeng area. To be known as Jewel City,

the redevelopment covers six city blocks, five

of which have existing commercial buildings

on them.

The five commercial buildings will be

revamped, and a new residential building will

be erected, creating a mixed-use precinct with

20 000m² of commercial lettable space, 4 800m²

of retail space and 1 000 residential units.

The partnership created to deliver this project

is called the Divercity Urban Property Fund and

comprises Atterbury and iThemba Property.

The aim is for iThemba to create a further 1 800

housing units within a 2km walking distance of the

core of Jewel City, thus creating the kind of density

that makes for the easier delivery of services, a

bigger market for goods and services, and an allday

buzz that purely commercial or retail precincts

can’t provide.

Absa Towers Main itself will receive a major

upgrade in the course of its conversion to a mixeduse

building. Within its 30 storeys, there will be

restaurants and coffee shops, childcare facilities

and 520 flats in the “affordable” bracket. The space

around the building will be transformed into a

public park with public art works prominent and

links to public transport available. The total value of

the investment by Divercity is said to be R2-billion.

Another conscious effort to spark urban revival

received support in the way of R2.1-million from

GAUTENG BUSINESS 2019/20

14


SPECIAL FEATURE

the US Consulate-General. The Johannesburg

Inner City Partnership (JICP) submitted its plans

to to implement its “Makers Way” project in the

Bertrams and Lorentzville suburbs and won

approval for its public art project in 2018.

The JICP is involved in numerous partnerships

to improve the quality of life in the city.

These include working with the National

Association of Social Housing Organisations

(NASHO), companies and agencies in the tourism

and heritage sectors, urban agriculturalists, banks

and financial organisations such as TUHF (Trust for

Urban Housing) and AFHCO Holdings, a specialist

in inner-city affordable housing developments.

Multiple strategies

Converting industrial properties to housing is

another trend associated with the move to densify

and improve inner cities. In Braamfontein West, next

to the Sontonga Memorial Park, Plitvest and the

Izingwe Property Group in association with RichLabs

Architects are the developers of Sontonga Lofts. One

of the flats is pictured below.

Another active participant in encouraging development

in the inner city is the Gauteng Growth

and Development Agency (GGDA).

An important nudge for developers has

been the tax incentives that accompany the

Urban Development Zone (UDZ). The City of

Johannesburg and the South African Property

Owners Association (SAPOA), have developed a

database for properties that fall within the UDZ.

The owner of the plot, valuation and zoning

information is available for every stand. Building

information is available for some parts of the UDZ.

Various “improvement districts” have also been

created, for example the RID (Retail Improvement

District) where businesses in a designated area

pay levies to secure improved cleaning and

security services.

In April 2019 the City of Johannesburg awarded

tenders for 24 projects at 84 properties that

will see thousands of accommodation options

delivered for low-income rental.

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 Newton 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 usable 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.

Private developer Indluplace Properties has

purchased nine large apartment blocks, taking its

total buildings in 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.

Public spaces play a critical role in urban

regeneration planning, as do buildings that serve

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.

15 GAUTENG BUSINESS 2019/20


SPECIAL FEATURE

Powering cities with

renewable energy

A shift in policy will promote small-scale generation.

South Africa’s successful Renewable

Energy Independent Power Producer

Procurement Programme (REIPPPP) has

created large-scale solar and wind farms in

areas where there is lots of space, but the country’s

smallest province by landmass is also taking big

strides to procure energy from renewable sources.

Gauteng is the country’s most densely populated

area (with a population of over 14-million)

and contributes about a third of South Africa’s GDP

(R1.59-trillion in 2017). In a short space of time, an

entirely new sector has been created within the

South African economy through legislation that

invited local and foreign investors to bid for and then

build renewable energy generation plants. South

Africa’s National Development Plan (NDP) requires

20 000MW of renewable energy by 2030. That will

be achieved mainly through the REIPPPP.

Many companies and institutions are generating

their own power. In Johannesburg, the Northern

Wastewater Treatment Works, the largest of six

wastewater plants serving the city, has its own electricity

source in a 1.1MW biogas plant. It produces

electricity using cogeneration (combined heat and

power) and is helping the city to reduce expenditure

on its water treatment works, which used to run to

R100-million per year.

A landfill site at Robinson Deep in Johannesburg

has started generating 3MW of gas. This is the first

of five renewable energy projects that Energy

Systems SA is going to do in Johannesburg and is

the first landfill gas generation project to fall under

the REIPPPP.

Agriculture is another source of organic waste

which is being used to provide power. With

thousands of cattle farmed near big cities to provide

beef and dairy products, biogas is a useful byproduct.

The Bronkhorstspruit Biogas Plant, run by Bio2Watt,

has an installed capacity of 4.6MW which it produces

from annual feedstock of about 120 000 tons of

organic waste. The plant is located in the Tshwane

Metropolitan area on the premises of Beefcor, one

of South Africa’s largest feedlots. The image of the

feedlot and plant (below) is supplied by Danish

company Combigas who teamed up with Bosch

Projects to design, manufacture and install the plant.

The company has plans to roll out small plants

for farmers or agri-processors who want to produce

power for themselves.

National power regulator NERSA has been

asked by the National Minister of Mineral

Resources to consider granting licences to smallscale

power producers to sell any excess power.

The likely granting of these licences will open up

the market and help small manufacturers to cover

the cost of installing generating capacity.

GAUTENG BUSINESS 2019/20

16


SPECIAL FEATURE

At the Cavalier abattoir in Cullinan, biowaste

conversion company ibert provides about a quarter

of the power that the abattoir needs to function, at

a competitive rate. In the process, all of the facility’s

biowaste is disposed of.

Solar power

Absa Bank has followed up on its decision to take

its central Johannesburg campus off the national

electricity grid. Investments in a 6 000-panel rooftop

solar system (which cost R10-million), the synchronisation

of gas and diesel generators and sophisticated

water and underfloor heating systems have

all contributed to massive energy savings. The bank

estimates that the power it generates is 70% cleaner

than that provided by the national grid.

The rooftop solar installation at Absa’s Pretoria

office provides 17% of its electricity needs and the

bank intends rolling out solar solutions for another

five offices soon in addition to investigating battery

solutions in pursuit of what it calls “net zero offices”.

One of the biggest roofs in South Africa is to get

one of the largest solar installations. Mall of Africa

(pictured above), a joint venture by Attacq and

Atterbury in Waterfall City, Midrand, will produce about

7 800MWh/y from panels on 45 000m² of roof space.

Vukile Property Fund has decided to equip all of

the malls in its portfolio with rooftop solar panels.

Among its properties are malls in Boksburg and

Soweto. The company says that installations across

the group have the capacity to generate 1.274MW

of solar energy, generating about 2 089MWh annually.

Retrofitting of light fittings has also taken

place, to improve energy efficiency.

Local manufacturing

In 2016 the Department of Trade and Industry (dti)

established a Gas Industrialisation Unit (GIU) which

will make plans to exploit the huge fields of natural

gas off the coasts of Mozambique and Angola and

boost industrialisation in South Africa.

At the end of the annual Windaba conference

in Cape Town in 2018, the South African

Wind Energy Association (SAWEA) issued a

Commitment Statement which noted that the

REIPPP has a “built-in demand for local procurement”,

not only offering business opportunities

to local companies, but also incentivising the

industry to identify and support emerging entrepreneurs.

This should have a positive spinoff

in Gauteng province, which is the centre of the

country’s manufacturing sector.

GAUTENG BUSINESS 2019/20

18


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.


KEY SECTORS

Overviews of the main economic

sectors of Gauteng.

Agriculture 26

Mining 27

Oil and gas 28

Engineering 32

Transport and logistics 36

Manufacturing 38

Automotive 40

Pharmaceuticals 42

Education and training 43

Tourism 46

Banking and financial services 50

Development finance and

SMME support 52


OVERVIEW

Agriculture

Agri-processing facility launched in OR Tambo SEZ.

A

R400-million agri-processing plant was launched in 2019

in the OR Tambo Special Economic Zone. The SEZ is

located at OR Tambo International Airport and is intended

to encourage exports of high-value goods.

The Provincial Government of Gauteng has set up Action Labs

to focus on agriculture and agri-processing with a focus on land

tenure issues and improving food security. If food producers can

be linked to the value chain then township economies can benefit.

Communities around a DRDGold tailings plant near Boksburg are

growing and selling agricultural produce as part of a programme

that was started in 2015. The gold recovery company teamed up with

Umsizi Sustainable Social Solutions to pass on skills to small-scale

farmers in Daveyton, Geluksdal and Tsakane. By the end of 2018,

some 90 enterprises were selling their products and the City of

Johannesburg has expressed interest in expanding the programme.

The Urban Agriculture Initiative of the Minerals Council South

Africa was launched in 2017. The roofs of buildings are used as

agricultural land, hosting various crops cultivated by aquaponics

and hydroponics. A pilot project on the top of the Chamber’s

building is producing basil. First National Bank’s canteen is supplied

with vegetables by its own rooftop farm. The Johannesburg Inner

City Partnership is driving the initiative.

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.

Gauteng’s agricultural sector is concentrated on producing

ONLINE RESOURCES

Agricultural Research Council: www.arc.agric.za

AgriSA: www.agriinfo.co.za

Gauteng Department of Agriculture and Rural Development:

www.gdard.gpg.gov.za

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

SECTOR HIGHLIGHTS

Mining companies are

promoting small-scale

farming.

vegetables. 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).

The province is home to

some of South Africa’s biggest

agricultural companies, including

AFGRI. 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 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. There are

many poultry farm and production

facilities in Gauteng. Companies

include Astral Foods, RCL Foods

and Daybreak Farms.

GAUTENG BUSINESS 2019/20

26


Mining

OVERVIEW

The Mandela Mining Precinct aims to boost the sector.

The University of Witwatersrand started life as the South African

School of Mines. The School of Mining Engineering at Wits is

now just one of many at the university, but it is the highest

ranked in terms of the QS World University Rankings. It has

also been improving its world ranking in recent years and stood at

13th in May 2019 (Mining Weekly).

Gauteng is home to most of the research and training bodies

associated with mining. Sibanye-Stillwater is one of many

companies supporting research in the province: the Wits Mining

Institute’s Digital Mining Laboratory (Digimine) is the focus of its

funding. AECI, the explosives and chemicals company, sponsors

the Virtual Reality Mine Design Centre at the University of Pretoria.

A new project was launched in 2018 to coordinate efforts in

the mining sector. A joint venture between three government

departments and the Minerals Council South Africa, the Mandela

Mining Precinct aims to develop research into mining, showcase

the country’s manufacturing abilities and to continue to create

jobs and wealth as ore bodies are depleted.

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 privatesector

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.

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.

The national government’s Phakisa programme is to be applied

to mining. Intended to fast-track solutions to development

ONLINE RESOURCES

Council for Geoscience: www.geoscience.org.za

Minerals Council South Africa: www.mineralscouncil.org.za

Mining Qualifications Authority: www.mqa.org.za

Mintek: www.mintek.co.za

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

SECTOR HIGHLIGHTS

Wits School of Mining is

moving up in world rankings.

problems, an Operation Mining

Phakisa Lab has been set up to

create concrete plans.

Similarly, the Provincial

Government of Gauteng

has initiated Action Labs in

the mining sector. These are

meetings where private and

public participants in the mining

sector and its value chain

discuss possible improvements,

partnerships and innovations.

One of the Action Labs‘

focus areas is to strengthen the

export of mining services and

mining equipment to SADC

countries, including the copper

belt. The creation and support

of mining sector SMMEs is

another important component

of the plan to create a broader

base for mining and mineral

beneficiation.

27 GAUTENG BUSINESS 2019/20


OVERVIEW

Oil and gas

Gauteng is joining the switch to gas.

The major economic sectors using gas are the metals sector

and the chemical, pulp and paper sector. Brick and glass

manufacturers are also big consumers. National policy is

driving a switch to the use of gas, rather than fossil fuels. A

national Gas Utilisation Master Plan (GUMP) is being developed and as

the province that is the biggest consumer of energy in South Africa,

Gauteng is leading the way.

The Liquefied Natural Gas Independent Power Producer Procurement

Programme (LNG IPPPP) is part of the broader programme of the

Department of Energy which encourages private investment in renewable

energy, namely the Renewable Energy Independent Power Producer

Procurement Programme (REIPPPP). The total allocated to gas-to-power

in the national power plan is 3 726MW, of which 3 000MW is for LNG.

In 2018, Delta Natural Gas Energy broke ground on the first of a

planned 400 LNG refuelling stations around South Africa. The taxi

and freight sectors are the first sectors being targeted. CNG Holdings

subsidiary NGV Gas has a compressed natural gas (CNG) public filling

station at Langlaagte, Johannesburg (pictured).

A new addition to South Africa’s pipeline network is a pipe to get

natural gas from Mozambique to Gauteng. SacOil’s R90-billion project

aims to deliver gas to Johannesburg and the nearby towns in 2020.

Transnet Pipelines has completed a sophisticated new multi-product

pipeline (NMPP) between the coast and Gauteng which is bringing a

range of products to the manufacturing heartland of South Africa. The

company operates a 3 800km network of underground, high-pressure

petroleum and gas pipelines throughout the eastern parts of South Africa.

ONLINE RESOURCES

Petroleum Agency SA: www.petroleumagencysa.com

South African Oil & Gas Alliance: www.saoga.org.za

Transnet Pipelines: www.transnetpipeipelines.net

SECTOR HIGHLIGHTS

Natural gas refuelling sites

are being established.

The country’s biggest supplier of

industrial heating fluids, FFS Refiners,

supplies this product out of a plant

at Chloorkop while the company’s

Evander site is responsible for heavy

fuel oils. Evander also has a tank with

installed capacity of 8 500m³.

Egoli Gas has a pipeline network

that extends over 1 200km in and

around Johannesburg and the

company has 7 500 domestic,

industrial and commercial

customers. Vopak completed a new

storage terminal in Lesedi on the

East Rand in 2017 to receive product

from the NMPP. The company that

owns Egoli Gas, Reatile, has a 30%

stake in Vopak.

The regulator and promoter

of oil and gas exploration in

South Africa, Petroleum Agency

South Africa, has been awarding

coalbed-methane-gas and

natural-gas rights in the provinces

on Gauteng’s border, Free State

and KwaZulu-Natal. The regulator

also controls offshore exploration

rights.

GAUTENG BUSINESS 2019/20

28


OVERVIEW

Engineering

Investments in railways and infrastructure are on the rise.

SECTOR HIGHLIGHTS

A Swiss company has

revived a rolling stock

manufacturing site.

The Boksburg site where DCD Rolling Stock used to make

rail wagons and fix locomotives is up and running again,

courtesy of TMH Africa, a part of the TMH Group, which has

head offices in Switzerland.

Lucchini South Africa recently received tax and training allowances

from the Department of Trade and Industry (dti) which helped it decide

to invest R200-million in a new forged wheel-making facility. Blank

railway wheels imported from Italy are completed at the Germiston

plant. Lucchini previously sold their wheels in South Africa through DCD

Ringrollers, themselves a maker of forged steel tyre products. Lucchini

has committed to increasing the amount of local content used in the

manufacturing process.

A R134-million project to expand the capacity of Elmcast Engineering’s

foundry is underway. The Springs facility supplies casted components

for the mining, automotive, electric motor and agricultural sectors.

Spending on infrastructure in Gauteng Province represents a major

opportunity for companies in the engineering sector. The Provincial

Government of Gauteng spent R30-billion on infrastructure between

2013 and 2016. A further R46-billion has been pledged for the years to

2019. In addition, Gauteng municipalities will spend R94-billion over

the next five years using their city budgets. Some 31 major housing

developments have been approved for the various development

ONLINE RESOURCES

Consulting Engineers South Africa: www.cesa.co.za

Engineering Council of South Africa: www.ecsa.co.za

Gauteng Department of Infrastructure Development:

www.gauteng.gov.za

South African Consulting Engineering Firms:

www.consultsa.co.za

corridors around Johannesburg.

These projects will attract public

and private money.

A study carried out by KMPG for the

province found that spending on

infrastructure resulted in additional

economic activity worth R26-billion

and created 92 000 direct jobs.

The University of Pretoria’s

Graduate School of Technology

Management (GSTM) offers

a range of degrees and short

courses in engineering-related

fields, including a Master’s in

Engineering Management.

Transnet Engineering (TE) is in

the process of changing its focus

from only providing engineering

services to other companies in

the Transnet group to becoming

a multi-faceted business.

The company is exploring

opportunities in Africa to provide

maintenance, repair and overhaul

services (MRO). As an original

equipment manufacturer (OEM)

with the ability to manufacture

locomotives, rail wagons and

coaches, TE is opening up a

wide range of markets not only

in South Africa but in Africa and

the rest of the world. The Trans-

Africa Locomotive is the first locally

designed locomotive produced

by TE in its Koedoespoort factory

where there are seven business

units, including a foundry.

GAUTENG BUSINESS 2019/20

32


Getting the job done, and getting it done right.

Maziya General Services is a fully black-owned and proudly South African construction company with

a diverse portfolio of projects undertaken in both the public and private sectors on a national level. The

company provides professional client-focused construction solutions. Maziya was established in 1999.

Maziya General Services strives to go above and beyond on every project and deliver on promises with

integrity, combining innovative construction methods and accountable project management to get the job

done and get it done right.

Vision

To become a trusted brand in the infrastructure

development ecosystem that delivers meaningful

value to all stakeholders.

Mission

To consistently deliver best-in-class solutions on

projects by leveraging off the skills of the staff, the

relationships with clients and constantly re-inventing

the business.

Values

People: strive to become an employer of choice

by attracting and retaining skilled talent. Integrity:

ensure that actions resonate with accepted best

practice governance standards and ethics.

Client focus: solutions are tailor-made to satisfy the

needs of clients. Learning and innovation: lifelong

learning and the continuous improvement.

Accountability: take responsibility for actions

and strive to build win-win relationships.

Safety Statement

The company places a premium on the safety and

well-being of staff by ensuring that they have the

required tools, skills, competencies and attributes

to conduct their work safely.

Markets

An aggressive diversification strategy has made

Maziya General Services a stand-out company.

Multiple projects have been successfully completed

in the following disciplines:

• municipal service installation and maintenance

(bulk water and sewer reticulation)

• building infrastructure construction

• telecommunication infrastructure installation

and maintenance

• electrical infrastructure installation

and maintenance

• rail construction and maintenance

Status

Level 2 BBBEE company

ISO 9001:2015 certified

Grade 9 GB PE: General building works

Grade 9 CE PE: Civil engineering works

Various grade 8 PE for mechanical engineering

works, fencing, demolition of buildings and

engineering infrastructure, electrical engineering

works (building and infrastructure) and wet services

and plumbing.

Contact: Motheo Nong, Compliance Manager: +27 82 810 7103 • Tony Slabbert, Business Development Manager: +27 76 522 7527

National Contact Centre, Africa • Tel: +27 11 766 1751/4

Head office, Africa, 56 3rd Street, Booysen Reserve, Johannesburg

Western Cape office, Unit 10, Reactor Road, Triangle Farm, Bellville


PROFILE

Power Factor

Engineering Services

Providing reliable, cost-effective solutions.

Gallery…FOSKOR Services 132KV CB REPLAC

Power Factor Engineering Services is a

dynamic and experienced electrical

engineering consultancy and electrical

contractor based in Midrand (Gauteng)

with regional office in Phalaborwa (Limpopo).

Power Factor Engineering Services has proven

to be reliable with a reputation for providing

viable, durable and cost-effective solutions to

meet challenging project requirements throughout

Africa. The company plans to grow by tapping

into strategic business partnerships with wellestablished

key role-players.

Sectors

Our dedicated team of experts specialises in

mining, FMCG, fabrications, control automation and

industrial markets.

Vision

To provide engineering service solutions to all

strategic African markets and globally. To provide

engineering services of exceptional excellence

through diversified operations, integrated systems,

infrastructure development and digital innovation. To

stand out as a capable, experienced and innovative

leader within the electrical engineering field.

• Engineering, including load flow studies and

electrical protection grading (E tap software)

and earthing system design

• Electrical consulting including electrical

plant audits, demand side management and

electrical draughting

• Installations including low- and mediumvoltage

switchgear retrofits, high-voltage

switchgears and transformers, industrial and

process plant E&I, mining and beneficiation

plants E&I and on-site maintenance and

testing

• Workshops and manufacturing including,

motor control centre panels, power

distribution boards, PLCs and RIO panels and

medium-voltage primary switchgear panels

• System integration and products including

GAUTENG BUSINESS 2019/20

34


PROFILE

project integration and management, automation

of plants and processes, complete MV and LV

reticulation systems, industrial instrumentation

system and renewable energy solutions

• Electrical products supply

M & SEPHAKU CEMENT

TENANCE…

Completed projects

Recent completed projects indicate the wide scope

of work undertaken:

• Re-draughting of motor control centre

electrical schematics

• Power flow analysis studies

• Switchgear commissioning and testing (525V)

• ​Circuit breaker upgrade and maintenance

• Switchgear upgrade (LV)

• Switchgear maintenance (11kV)

Clients

Foskor Mine, Eskom, Esso Petroleum (Chad), Transnet

Richards Bay, Lothlorien Waste Paper, Marula

Platinum Mine.

Current projects

• Protection relays replacement and upgrades • Outdoor circuit breaker refurbishment for

FOSKOR 11KV DEAD TANK

• Outdoor circuit breaker replacement Service

DESIGN,MANUFACTURING,

and Foskor Offering……

Mine (132kV)

refurbishment INSTALLATION (132kV) AND COMMISIONING

• Outdoor Dog Box refurbishment (11kV)

Engineering

• Load flow studies-E tap software

• Electrical Protection Grading-E tap Software

• Earthing system design

• Power factor Correction

• Electrical, instrumentation & Control systems

• System Design & Commissioning

• Shutdown ,LV&MV switchgear maintenance

Electrical Consulting

• Electrical Plant audits

• Demand side Management

• Electrical Draughting

• Documentation

• Control system Designs

• Load flow studies

• Power factor Corrections

Moto

Powe

PLC’

Med

Bus b

Cust

LV

M

Tr

V

O

P

R

CONTACT DETAILS

Installations

• Low & Medium Voltage Switchgear retrofits

• High voltage switchgears and transformers

• Industrial and Process plant E&I

• Mining & beneficiation plants E&I

• Onsite Maintenance & Testing

Head Office: Unit 8, Bronze Micro Park, Brons

Crescent, Gauteng Business Park, Olifantsfontein

0166

Office: +27 12 754 6792

Mobile: +27 62 973 6997

Fax: 086 558 2375

Email: info@powerfactoreng.com

Website: www.powerfactoreng.com

Limpopo office: 1234 Main Rd, Lulekani Section,

Phalaborwa

Telephone: +27 72 644 5087

Email: andrew@powerfactoreng.com






35 GAUTENG BUSINESS 2019/20


OVERVIEW

Transport and

logistics

Development corridors promise increased traffic.

SECTOR HIGHLIGHTS

An aerotropolis is planned.

• Gautrain expansion is

planned.

Corridor developments and the creation of an aerotroplis

around Africa’s busiest airport will help to shape the

transport and logistics sector in Gauteng for years to come.

The concept of a Gauteng City Region is key to

much of the planning for the area’s economic future. Infrastructure

development is underway along corridors, each of which has a

specific focus.

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 and logistics

• Thelle Mogoerane: logistics, Carnival Junction, OR Tambo inland

port, Prasa rolling stock manufacturing facility run by Gibela

Rail Consortium which is due to deliver 600 trains valued at

R51-billion.

The Tambo Springs inland port and logistics gateway has been

established near Katlehong as an inter-modal facility which can transfer

containers from rail or road to storage facilities and ultimately to the

customer. Existing freight rail lines run through the site and link it to

the seaports of Durban, Cape Town and Ngqura (Port Elizabeth). The

aim with this new facility is to improve efficiency. It is run by the Tambo

Springs Development Company.

The intention is to add to the port:

• a logistics park with

transportation, processing,

manufacture, warehousing

and distribution

• a business park with a retail

element

• a residential component

• an agri-industrial section.

The OR Tambo International Airport

Special Economic Zone (ORTIA

SEZ) has diversified beyond the

existing Jewellery Manufacturing

Precinct in the shape of a R400-

million agri-processing plant.

The concept of an aerotropolis is

for the airport to become a hub of

economic activity in the same way

that cities anchor various economic

sectors that grow up around the

centre. Ekurhuleni’s economy is

primarily driven by manufacturing,

mining and agriculture. With a

strategic location next to the OR

Tambo International Airport and

identified aerotropolis corridors, future

investment in the following sectors is

anticipated: manufacturing, aviation

and aerospace, transportation and

logistics.

GAUTENG BUSINESS 2019/20

36


OVERVIEW

Ekurhuleni is hoping not only to be the national centre for logistics

and to boost its already impressive manufacturing capacity by

building more infrastructure and freight hubs, but it intends the

aerotropolis to play a role in helping to consolidate the integration

of the nine town councils that went into making up the metropole.

Airports

OR Tambo International Airport caters for more than 20-million passengers

every year and handled nearly 415 000 tons of cargo via 14

different cargo carriers in 2017.

Lanseria Airport is growing in importance with kulula, FlySafair

and Mango flying in and out of the airport located to the north of

Johannesburg. It is a convenient landing point for travellers bound

for regional centres like Rustenburg in the North West. Lanseria

moved nearly two-million passengers in 2017 and plans to double

that figure by 2022.

Gauteng has several smaller airports that host mostly commercial

aircraft:

• Rand Airport in Germiston

• Grand Central Airport in Midrand

• Wonderboom Airport in Pretoria North

• Waterkloof Air Force base, south of Pretoria.

The Commercial Aviation Manufacturing Association South Africa

(CAMASA) states that 50 companies are active in the sector, employing

more than 3 000 people in highly skilled jobs. Almost all the activity

is around Johannesburg and Cape Town and the sector (which

encompasses aero-structures and systems, manufacturing, design

and engineering) is responsible for R3-billion in exports every year.

Rail

The Gautrain, a high-speed train linking the centre of Johannesburg,

Sandton, ORTIA and Pretoria, has been massively successful in terms

of its original brief. The Gauteng Management Agency 2017/2018

ONLINE RESOURCES

Airports Company South Africa: www.acsa.co.za

Commercial Aviation Manufacturing Association South Africa:

www.camasa.co.za

Road Freight Association of South Africa: www.rfa.co.za

South African Association of Freight Forwarders: saaff.org.za

South African National Road Agency: www.sanral.co.za

annual report noted that a peak

of 1.4-million passengers per

month was reached in May 2017

and that average punctuality of

98.60% had been achieved for all

trips scheduled.

But the Gautrain is expensive

and not designed to cater for

mass public transportation.

A feasibility study has been

completed on the expansion

of the Gautrain and its full

integration into the public

transport system. New areas

that will be covered in the

project, which will take place

over two decades, will include

Mamelodi in Tshwane, Boksburg

in Ekurhuleni, Randburg-Laseria

in Johannesburg, Mogale City

and Syferfontein in the West

Rand and Roodepoort/Jabulani.

The Gautrain has also reactivated

property development

in many areas around its stations

and made sites near stations very

attractive to developers and

investors.

Transnet Rail Engineering

(TRE) has a major presence in

Gauteng and the metropolitan

lines that ferry commuters are

run by the Passenger Rail Agency

(PRASA). The Wits Metrorail

system serves Johannesburg

and its surrounds. Park Station,

in the north of the central

business district, is the largest

station in Africa and acts as the

metropolitan hub.

37 GAUTENG BUSINESS 2019/20


OVERVIEW

Manufacturing

Incentives aim to stimulate the sector.

The Manufacturing Circle reported in 2018 that the

manufacturing sector, in which Gauteng Province is

preeminent, contributes 13% of South Africa’s GDP,

significantly down from 24% in 1980. The sector employs

1.8-million people. For every direct manufacturing job, another 3.8

indirect jobs are created.

Employer organisations like the Manufacturing Circle and

government at national and provincial levels are engaging in initiatives

to grow the sector. Chief among these are the incentives such as

the Manufacturing and Competitiveness Enhancement Programme

(MCEP) of the Department of Trade and Industry (dti). The dti is the

state’s lead promoter of the sector.

Sectors that have received support include plastics, pharmaceuticals,

chemicals, metal fabrication, transport equipment and agri-processing.

The Support Programme for Industrial Innovation (SPII), run by the

Industrial Development Corporation (IDC) on behalf of the dti,

promotes technology development.

Another IDC initiative has allocated R23-billion over three years

to support the Black Industrialist Programme to help existing

entrepreneurs grow their businesses.

The Provincial Government of Gauteng has tabled plans to

bolster manufacturing capacity in the province’s western areas. The

priorities are mining and mineral beneficiation, capital equipment

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

economic development in townships.

Manufacturing contributes 14% to Gauteng’s real economy output

and provides 40% of South Africa’s manufacturing overall. Manufacturing

SECTOR HIGHLIGHTS

Packaging company Nampak

celebrated a half-century on

the JSE in 2019.

related to the mining industry,

historically the lynchpin of the

Gauteng economy, is still important.

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.

New technology has been

embraced by some innovative

manufacturers. Desert Wolf’s

Skunk Riot Control Chopper is an

unmanned light aerial vehicles

(UAV) that has proved popular

in the world market. Desert Wolf

operates out of Pretoria.

GAUTENG BUSINESS 2019/20

38


OVERVIEW

Packaging company Nampak, which in 2019 celebrated its 50th

year as a listed company on the JSE, has metals, plastic, paper and

glass operations at various locations including Industria West,

Boksburg and Olifantsfontein. It is the market leader in beverage

cans. 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. Corrugated paper manufacturer

Corruseal has purchased the Enstra Mill in Springs from Sappi, giving

them 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.

Steel has been experiencing a volatile few years, with reduced

demand for from China severely reducing production volumes in

South Africa. The Steel and Engineering Industries Federation of

Southern Africa (Seifsa) noted small increases in output in the broader

manufacturing sector in the first three months of 2019, despite what it

described as “a difficult operating environment”. Steel makes up 28%

of manufacturing in the country.

There are as 35 aluminium processing firms in Gauteng, involved

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

sheets, with 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.

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 of Johannesburg)

and Chemical Services, which presides over 20 separate companies

(including Senmin, the group’s mining chemicals company).

ONLINE RESOURCES

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

Gauteng Department of Economic Development:

www.ecodev.gpg.gov.za

Manufacturing Circle: www.manufacturingcircle.co.za

Steel and Engineering Industries Federation of Southern Africa:

www.seifsa.co.za

More than half of the

companies operating in the food

and beverage sector in South

Africa are 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. South

African Breweries is spending

R2.8-billion on expanding two

of its three Gauteng breweries.

Heineken’s brewery at Sedibeng

has already been expanded

since it opened in 2010.

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 took a knock

because of the relaxation of

import duties, chicken is still a

popular South African choice.

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 in Springs,

produces about 650 000

broilers every week.

GAUTENG BUSINESS 2019/20


OVERVIEW

Automotive and

components

The major marques are investing in new models.

All of Gauteng’s large automobile manufacturers are

investing in new model production. The most recent

outlay announced in April 2019 was by Nissan, which will

use its Rossyln plant to produce the Navara pick-up vehicle.

A second shift of workers will be needed to cover the new vehicle

(adding to the two bakkies already made at the site) and the total

investment will be R3-billion.

Other major investments include:

• R3-billion by Ford at Silverton, to produce the Ford Ranger

(which broke its own export records in 2018, with 68 364 units)

• R6.1-billion by BMW at Rosslyn for the manufacture of the new

BMW X3 model

• R260-million by BMW on an expanded campus at Midrand,

comprising head office, financial services, centres for training

and IT, a restaurant and a gym

• UD Trucks, a part of the Volvo group, will assemble the Croner

heavy commercial vehicle at Rosslyn.

Gauteng is also home to a strong 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. Beijing Automotive Works (BAW) assembles taxis at Springs

and has committed (with its partners) to investment of R250-million.

Armoured cars are also produced in Gauteng. The Paramount

Group has signed a contract to supply the United Arab Emirates with its

latest armoured personnel carrier, the Mbombe 4. In 2019 the defence

and aerospace group also announced the creation of Paramount South

ONLINE RESOURCES

Automotive Industry Development Centre: www.aidc.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 HIGHLIGHTS

The Paramount Group has

established a South African

subsidiary.

Africa so that it can participate in

the local market.

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 and the 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

(dti), working together with the

National Association of Automobile

Manufacturers of South Africa, has

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 blackowned

businesses in the sector.

GAUTENG BUSINESS 2019/20

40


National Metrology

Institute of South Africa

FOCUS

The science of measurement.

The National Metrology Institute of

South Africa (NMISA) underpins all

accurate measurements for South

Africa and the region, contributing to

the overall quality of life, trade and regulatory

environments. NMISA is responsible for ensuring

measurement equivalence with the global system

of measurement, the International System of

Units (SI). NMISA contributes to all government

key priorities and the 12 national outcomes, and

has aligned its key programmes to the Industrial

Policy Action Plan (IPAP) priority sectors and the

NSI goals with a special focus on:

• Units, National Measurement System (NMS)

and measurement capabilities (shortening

the traceability chain for Africa, revised SI)

• Reference materials (feed and food safety,

African specific matrix, etc)

• Manufacturing competitiveness (advanced

manufacturing, agro-processing and

beneficiation)

• Green economy (environmental monitoring

and cleaner production)

• Energy efficiency (accurate measurement

and development of energy-saving

technologies)

• Quality of life (medical diagnostics and

treatment, law enforcement, environmental

health and safety)

• Advanced measurement solutions (in support

of national priority programmes such as the

Square Kilometre Array (SKA), infrastructure

development)

• Commercialisation (business development,

logistics)

• Regional integration (advancement of conformity

assessment, AfCFTA, connection of the national

and regional metrology system internationally)

All NMS maintenance and product development

are captured under research programmes. Once the

product has matured and is ready to be offered to

industry as a service, the projects are captured under

the Commercial Services programme. These projects

then include dissemination services associated with

traceability to the NMS that generate revenue.

In cases where industry is not able to provide a

measurement service or calibration, this service is then

offered by NMISA (pending resources and affordability). If a

measurement service is not routine and includes innovation

or advanced interpretation, the service is captured under

the research programmes for development until such

service can be offered to industry.

The NMISA is part of the Department of Trade and

Industry’s (the dti) family of Technical Infrastructure

(TI) Institutes. Together the TI is responsible for the

measurement standards and sciences, procedures

and regulations as well as accreditation that gives

confidence in goods and products and allows for

successful prosecution in cases of non-compliance.

CONTACT DETAILS

Telephone: +27 12 841 4152

Email: info@nmisa.org

Website: www.nmisa.org

41

GAUTENG BUSINESS 2019/20


OVERVIEW

Pharmaceuticals

A licence to make a biosimilar drug has been granted.

SECTOR HIGHLIGHTS

Pharmacy Direct has spent

R100-million on a warehouse

upgrade.

South Africa has one of the world’s biggest HIV/Aids

programmes. The National Department of Health’s

Centralised Chronic Medicines Dispensing and Distribution

programme aims to reach six-million patients on treatment

by 2021. It is currently serving 4.4-million patients.

In mid-2018 Pharmacy Direct, an Afrocentric business based

in Centurion, spent R100-million on upgrading a warehouse for

distributing medicines to state patients. This sector is likely to grow

if the state goes ahead with plans for National Health Insurance. The

NHI intends to create a single fund that will buy services on behalf of

all South Africans.

The National Association of Pharmaceutical Manufacturers (NAPM)

has re-branded as Generic and Biosimilar Medicines of Southern Africa.

A new field opened up in the pharmaceutical industry when the

South African Health Products Regulatory Authority (SAHPRA) gave

ONLINE RESOURCES

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

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

Generic and Biosimilar Medicines of Southern Africa:

http://gbmsa.or

National Health Insurance: www.health.gov.za/index.php/nhi

the go-ahead for the production of

a biosimilar drug in July 2018, the

first time this has been allowed in

South Africa. Teva Pharmaceutical

Industries became the first

company to win a licence with

their version of Amgen’s filgrastim,

a white blood cell booster.

South Africa’s pharmaceutical

sector is worth approximately R20-

billion annually. Although there are

more than 200 pharmaceutical

firms in the country, large

companies dominate the field,

with Aspen Pharmacare (34%)

and Adcock Ingram (25%) the two

key players, followed by Sanofi,

Pharmaplan and Cipla Medpro.

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. Adcock

Ingram is building a new steriles

plant for ophthalmic products at

its Clayville facility.

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.

GAUTENG BUSINESS 2019/20

42


Education and training

OVERVIEW

New sectors are demanding new skills.

The renewable energy sector is the fastest-growing new

sector in South Africa. In response to the need for skilled

personnel, Knowledge Pele, a subsidiary of Pele Green Energy,

has launched the Knowledge Pele Academy in Kramerville,

Johannesburg. The academy aims to promote skills and entrepreneurial

development in rural, peri-urban and township communities.

Courses for the academy are designed in response to information

coming out of the relevant Sector Education and Training Authority

(SETA). Offerings range from artisan training programmes and

learnerships to short courses and workshops.

The Workplace Integrated Learning (WIL) project of the Energy and

Water SETA (EWSETA) will form part of the Knowledge Pele Academy

programme, in support of the Technical Vocational Education and

Training (TVET) colleges that are tasked with rolling it out.

TVET colleges are concentrating on 13 trade areas, including

bricklayers, millwrights, boilermakers and riggers. R16.5-billion has

been allocated by national government to skills development and

infrastructure over the medium term. Gauteng has eight TVET colleges.

Zigna Training is another company which closely follows SETA

requirements. In training students in operational hygiene and safety,

the company adheres to standards set by the Health and Welfare

Sector Education and Training Authority (HWSETA).

The National Skills Authority (NSA) works with SETAs in carrying

out the National Skills Development Strategy (NSDS). Gauteng won

the NSA’s 2017 gold award for artisan skills development. The Human

Resource Development Council of South Africa (HRDCSA) is an overarching

body working on skills development and training.

Tertiary

Well-regarded research units, top-ranked business schools and many

universities, universities of technology and colleges are located in

Gauteng. The mayor of Ekurhuleni has called for his city to have its

own tertiary institution.

ONLINE RESOURCES

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

National Department of Higher Education and Training:

www.dhet.gov.za

National Research Foundation: www.nrf.ac.za

SECTOR HIGHLIGHTS

A Workplace Integrated

Learning programme has

been introduced.

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.

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.

43

GAUTENG BUSINESS 2019/20


eople of Mpumalanga, and Limpopo.

tional PROFILE Hygiene & Safety Learners from NKANGALA TVET College, e

Zigna Training

d Induction programme in Witbank campus

Enhancing the quality of training.

Zigna Training is an accredited

provider of high-quality education

and training in the health and

welfare sector. The company has

extensive experience in training, learning

material development and implementation

of Learnerships and is committed to

maintaining high standards.

Background

Zigna Training is the first woman- and blackowned

training provider to be accredited for

a variety of courses. Zigna Training is a fullyaccredited

Skills Development Provider (SDP)

with the Health and Welfare SETA (HWSETA).

Founder and Managing Director Diana

Ndlhovu became the first African woman to

be a clinical social worker in the public sector

before branching out into the private sector.

The company has 13 years of extensive

experience in training, learning material

development and implementation of

Learnerships.

The Zigna training head office is in Springs

(Gauteng) and there are training facilities in

Nelspruit (Mpumalanga) and at Makweng-

Turfloop in Limpopo.

Vision

To become the most needed training and development

service provider nationally and internationally in the

Health and Social Development sector. To improve

service delivery and make an economic impact in the

lives of the people.

Mission

To enhance the quality of training of learners by

providing the learning environment for Health and Social

Development through comprehensive learner-centred

education for empowerment, growth and effective

application of information.

Zigna motto

For standard quality service.

Zigna slogan

Zip and work with speed.

Qualifications

Zigna Training is accredited with Education and Training

Quality Assurance (ETQA) and the Health and Welfare

GAUTENG BUSINESS 2019/20

44


ZIGNA TRAINING OHS class makes a mark at ESKOM WITBANK

PROFILE

Sector Education and Training Authority (HWSETA)

for FETC: Community Health Work NQF Level 4, FETC

Social Auxiliary Work NQF Level 4, NC Occupational

Hygiene and ZIGNA Safety NQF MOTTO Level 3.

Zigna Training is further accredited with the

Quality Council for Trade and Occupation (QCTO)

for Occupational Qualification: Health Promotion

Officer NQF Level 3. Social Auxiliary Worker NQF

Level 5 and OC Child and Youth Care Worker NQF

Level 5.

“FOR STANDARD QUALITY SERVICE”

ZIGNA SLOGAN

HWSETA-accredited skills

programmes:

“ ZIP AND WORK WITH SPEED”

• Primary healthcare in the communities

• Emergency first aid CPR and firefighting

• Home-based care and palliative care

• Understanding child and youth care work

• Advanced HIV and Aids counselling

• Counselling in risk behaviour

• Workplace safety implementation

• SHE representative, safety and practitioner

• Health and safety officer

These programmes form the core of the company

in Mpumalanga, Limpopo, KwaZulu-Natal,

Gauteng and North West. Zigna also runs various

non-accredited training programmes in areas such

as leadership and management and organisational

development.

Some major clients

Seriti, Mpumalanga Department of Health and

Social Services, Limpopo Department of Health

and Social Services, Nkangala TVET College,

national departments of Rural Development and

Land Reform and Public Works, Eskom Witbank,

Xstrata Coal, Glencore.

raining to 4 800 youths in FETC IN SOCIAL AUXILIARY WORK and

LARY HEALTH CARE and 150 NC in COMMUNITY HEALTH CARE

l Auxiliary Work and Community NKANGALA-ZIGNA Health Work TRAINING Graduation learners Ceremony funded by Dept of Rural Development attending work

arners have CONTACT successfully DETAILS got permanent employment in Mpumalanga

lth & Social Services through the commitment of the Provinces by

Key contact people:

ND Ndhlovu, Managing Director

Physical address:

Head office, Gauteng: Cnr 5th Avenue and

4th Street, Springs CBD, Ekurhuleni 1559

Tel: +27 61 407 7024 / +27 82 672 3654

Fax: 086 239 3559

Email: admin@zignatrainingonline.co.za

Limpopo satellite: Makweng-Turfloop

Tel: +27 61 415 2645 and +27 72 248 4230

Mpumalanga satellite: Nelspruit

Tel: +27 61 459 3229 and +27 82 672 3654

Fax: 086 239 3559

Email: diana@zignatrainingonline.co.za

Website: www.zignatrainingonline.co.za

aries and learnership. In turn the learners had to commit to serve the

langa, and Limpopo.

& Safety Learners from NKANGALA TVET College, enjoyed their

gramme in Witbank campus

Zigna OHS students on site at Eskom Witbank.

45

GAUTENG BUSINESS 2019/20


OVERVIEW

Tourism

Casino competition is fierce.

A

casino resort on the banks of the Vaal River has changed

hands. A hotel group has decided to list its hotel and casino

assets separately. Meanwhile, the Time Square Casino is part

of a massive investment by Sun International that is going

to take some time to pay off.

With over 2 000 slot machines and 60 casino tables, the Time

Square Casino is part of the Menlyn Maine precinct in Pretoria East

and connected to the larger complex that includes a hotel and an

events arena that reportedly cost more than R4-billion. Maslow hotels

at Menlyn and in Sandton are part of the Sun International brand.

Sun International also has a smaller casino in Brakpan, Carnival City,

while Tsogo Sun runs Montecasino and Gold Reef City in Johannesburg

and Silver Star Casino in Krugersdorp.

Tsogo Sun Holdings split its casino and hotel operations in 2019

in order to unlock value in the two sectors. With a market cap of

R25-billion, Tsogo is the country’s biggest hotel group. It 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). SunSquare, Southern Sun

Hotels, Southern Sun Resorts, Garden Court and StayEasy are among

the group’s brands.

SECTOR HIGHLIGHTS

Tsogo Hotels is listing on the

JSE as a separate entity.

Peermont Hotels, Casinos and

Resorts has added the Emerald

Resort & Casino to its portfolio of

properties. Peermont purchased

the Vanderbijlpark property from

US company Caesars Entertainment

Corporation, which brings to 11 the

number of casino resorts it runs on

the sub-ontinent.

Located on the Vaal River,

Emerald Resort has a water park,

a game park, a spa and several

restaurants. Peermont’s suite

of four hotels in the Emperor’s

Palace complex next to OR Tambo

International Airport, also houses

GAUTENG BUSINESS 2019/20

46


OVERVIEW

a large casino where players have access to 1 724 slot machines

and 67 tables.

Location is vital in all decision-making related to property

developments. In Gauteng today, location relative to the Gautrain

has become important. So much so that the 216-room Radisson Blu

Gautrain Hotel even has the word in its name. The Sandton hotel was

a winner 2017 in the World Luxury Hotel Awards in the categories,

Luxury Business Hotel and Luxury Hotel and Conference Centre. The

nearby Radisson Blu Hotel, Sandton, won the Luxury City Hotel Award.

The Legacy Group was one of the first to introduce apartments

to the hotel development mix in South Africa 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.

Another significant move in the hotel sector is the decision

by Marriott International to develop Marriott branded hotels in

Johannesburg and Cape Town. In partnership with the Amdec group,

the group spent 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 Magaliesberg mountains),

Protea by Marriott has 17 hotels across three brands: Fire and Ice, Protea;

Protea Hotels and African Pride Hotels, the premier brand.

Culture and history

Heritage tourism is a strong component of the tourism offering in

Gauteng. The Cradle of Humankind is a UNESCO World Heritage

ONLINE RESOURCES

Cradle of Humankind: www.maropeng.co.za

Gauteng Tourism Authority: www.gauteng.net

Johannesburg Tourism Company: www.joburgtourism.com

Site and attracts thousands

of visitors every year to the

interactive visitor’s centre at

Maropeng. The Sterkfontein

Caves have recently revealed

astonishing finds, showing

the origins of humanity

through artefacts such as

the 2.1-million-year-old skull

known as Mrs Ples.

The Origins Centre at the

University of Witwatersrand

provides more fascinating

insights into the origins of

mankind through art and

science. The Centre hosts superb

representations of Khoi and San

rock art.

History relating to the

struggle against apartheid

centres on attractions such as

the moving exhibitions housed

at the Apartheid Museum and the

history of the battle for human

rights and democracy embodied

in Constitution Hill.

Kliptown in Soweto is

the site of the signing of the

Freedom Charter. Another site

where South Africa’s history is

on display is at Freedom Park, a

sprawling complex of museums,

open spaces and memorials on

a hillside overlooking Pretoria in

Tshwane.

Cultural and history tourism

are further catered for by more

than 60 other museums and art

galleries in the province. These

include the Ditsong National

Museum of Natural History

(Transvaal Museum), Museum

Africa in Johannesburg’s cultural

Newtown precinct, the South

African Military History Museum

and the National Cultural History

Museum.

47 GAUTENG BUSINESS 2019/20


INDABA HOTEL, SPA & CONFERENCE CENTRE

YOUR AFRICAN DESTINATION IN JOHANNESBURG

Just north of the fast paced business world of Sandton in the upmarket residential suburb of Fourways, lies

the 258 bedroom Indaba Hotel, Spa & Conference Centre. It is a compelling blend of business-like

convenience and efficiency, with a relaxed and warm country atmosphere.

Coupled with easy and convenient access to all main highways, OR 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 guests.

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 tasted with over 120 African inspired dished 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 sizzled to your specification, everyone is sure to find their favourite.

Well known for the lavish full South African Breakfast Buffet, the Epsom Terrace Restaurant also boasts an

evening Bistro Menu which will delight even the most demanding gourmet’s exacting standards. A

traditional Carvery Lunch with live music can be enjoyed every Sunday with limited outdoor seating

available for those who prefer dining al fresco – after all, Jo’burg really has the best weather in South Africa.

INDABA HOTEL, SPA & CONFERENCE CENTRE

C/O WILLIAM NICOL DRIVE & PIETER WENNING ROAD, FOURWAYS

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


Take a wander through the 17 hectares of lush bushveld gardens and you will find the Mowana Spa - a

wellness sanctuary which will revive your senses, rejuvenate your body and soothe your soul. The Mowana

Spa, which takes its name from the majestic Baobab Tree of African Lore and Legend, offers wellness

journeys based on the recognized healing energy of Tribal Massaging.

Signature Pamper Journeys include the decadent Mowana Full Day African Rejuvenation Spa pamper

which is an indulgent spa experience including breakfast, lunch, complimentary beverages and six

revitalizing treatments; the romantic Mowana African Skies Night Spa pamper with includes dinner,

complimentary beverages and 3 relaxing treatments; and the indulgent Mowana African Escape Spa &

Stay Pamper Journey for the ultimate decadent relaxation.

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 Pampering at Mowana Spa.

The Indaba Hotel and Mowana Spa are also PROUDLY GREEN ensuring responsible tourism and minimising

carbon foot print through extensive recycling of waste products, water-wise gardening, greening

conference initiatives, better material choices, minimising power usage and buying local - after all, a better

place to live is a better place to visit.

The Indaba Hotel is sure to meet all your business and leisure requirements. We look forward to welcoming

you to our oasis in the City.

15 MINUTES FROM SANDTON ... A MILLION MILES AWAY


OVERVIEW

Banking and financial services

New stock exchanges are attracting investors.

The decision by pharmaceutical giant Aspen Pharmacare to

conduct a second listing on one of South Africa’s newest

exchanges, A2X, suggests that the timing of the people

behind the latest trend in the country’s financial services

sector was spot on.

A2X has attracted nearly 20 companies in a wide range of sectors in

less than two years, with a primary focus on secondary listings. Patrice

Motsepe’s African Rainbow Capital is an investor in A2X.

Of the four new exchanges, Equity Express Securities Exchange

(EESE) trades in Black Economic Empowerment (BEE) while ZARX

and 4AX are targeting companies that are not listed elsewhere. ZARX

has agricultural holding companies like TWK and Senwes among its

first clients.

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. The JSE also offers other investment options.

In 2017 Tyme Digital received a licence to run a bank. By early 2019,

TymeBank was available in 500 Pick n Pay and Boxer stores and more

than 50 000 customers had a TymeBank account. Tyme stands for

Take Your Money Everywhere and refers to the fact that the bank does

not have a branch network. The bank is targeting the lower-income

segment and promises speedy transaction and approval times.

African Rainbow Capital began as the venture’s BEE partner but in

2018 bought out the Commonwealth Bank of Australia. The banking

licence is the first to be issued since Capitec was granted a licence by

the South African Reserve Bank in 1999.

Second to market among the country’s new banks was Discovery

Bank, which officially launched in March 2019. Discovery Bank will apply

the behavioural model it uses in its health business to reward good

financial behaviour. The Discovery group is already a giant on the JSE

(market value of R83-billion) with a wide range of products and services

that give it access to millions of customers.

Life insurer MMI Holdings is entering a partnership with African Bank

to enable it to start taking deposits and loaning money.

Gauteng’s Treasury has completed a feasibility study on establishing

a provincial state bank. This would enable funding to be made available

ONLINE RESOURCES

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

Chartered Institute of Government Finance, Audit and Risk

Officers: www.cigfaro.co.za

GAUTENG BUSINESS 2019/20

50

SECTOR HIGHLIGHTS

Pick n Pay shoppers can use

TymeBank in stores.

for the many infrastructure projects

that are planned in the medium and

long-term for Gauteng, together with

making loans available for the SMME

and township enterprise sectors.

For many decades, South

Africa had a retail banking Big

Four – Standard Bank, Nedbank,

Absa 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. It

merits inclusion in a new retail “Big

Five”, with Standard Bank, Absa, FNB

and Nedbank. In terms of assets,

the five biggest banks are Standard

Bank, FirstRand (which owns FNB),

Absa (part of Barclays Group Africa),

Nedbank and Investec. According

to the Reserve Bank, this group had

89% of market share in 2015.

The Chartered Institute of

Government Finance, Audit and

Risk Officers (CIGFARO) advises

institutions, trains it members

in public finance and promotes

the interests of professionals in

the public sector. It also develops

and assesses qualifications and

advises tertiary institutions on the

requirements for courses.

The financial-services industry

contributes 21% to the province’s

gross domestic product. Africa’s

largest stock exchange and the

head offices of many banks and

investment houses in Gauteng.


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OVERVIEW

Development finance and

SMME support

Nissan’s Rosslyn plant is hosting an incubator.

An Incubation Centre has been launched at Nissan’s assembly

plant in Rosslyn, north of Pretoria. The facility supports small

enterprises through subsidised rental and mentorship

and training. Management of the centre is done by the

Automotive Industry Development Centre (AIDC), a subsidiary of the

Gauteng Growth and Development Agency (GGDA). The Jobs Fund

contributes to financing the project.

The City of Johannesburg runs seven SMME hubs where office space,

WiFi and advice and training are available for small business operators.

About half of South Africa’s formal SMMEs operate in Gauteng

and more than half are in the wholesale and retail sector and the

accommodation sector. The next most popular sectors are community,

social and personal services.

Public procurement from township enterprises by provincial and

municipal governments in Gauteng increased in 2017 to R17-billion,

up from just R600-million in 2014. This expenditure has allowed many

township businesses to enter the formal economy and for them to

become more sustainable.

Gauteng has 14 registered co-operative banking institutions serving

over 16 000 member-owners, with over R100-million in savings and

R150-million in assets. A partnership between the Italian co-operative

movement and the Provincial Government of Gauteng aims to form

consumer co-operatives in the wholesale and retail sectors. The township

market of about 250 000 township households holds enormous potential

for collective buying.

The National Department of Small Business Development (DSBD) has

several programmes to assist SMMEs and co-operatives. These include:

• The Black Business Supplier Development Programme, a costsharing

grant to promote competitiveness

• The Co-operative Incentive Scheme, a 100% grant.

ONLINE RESOURCES

Gauteng Growth and Development Agency: www.ggda.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

SECTOR HIGHLIGHTS

The City of Johannesburg runs

seven SMME hubs.

The Small Enterprise Development

Agency (Seda) is a subsidiary of the

DSDB and gives non-financial 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 National Gazelles is a national

SMME accelerator jointly funded by

Seda and the DSBD. Businesses can

receive up to R1-million for training,

productivity advice, business skills

development and the purchase

of equipment. The Industrial

Development Corporation (IDC)

supports SMMEs either by disbursing

loans or by taking minority shares in

enterprises and giving advice.

The National Department of

Labour has a programme to support

people with disabilities, the Sheltered

Employment Factories initiative.

The Enterprise Investment

Programme (EIP) of the National

Department of Trade and Industry (dti)

is another support programme. The

Shanduka Black Umbrellas incubator

helps entrepreneurs convert their

good ideas to sustainable business

practice.

GAUTENG BUSINESS 2019/20

52


SAVE THE DATE

FUTURE EVENTS

East london icc

AUDIT&RISK

INDABA

10-12

april

2019

PUBLIC SECTOR

FINANCE GRAP

SEMINAR

8-9 JULY 2019

EKURHULENI

7-9 OCTOBER 2019

CIGFARO

ANNUAL

CONFERENCE

dURBAN icc


INTERVIEW

Randburg Chamber of

Commerce and Industry

Promoting and representing businesses in the economic

powerhouse.

What is the geographic footprint of the Chamber?

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

Linda Blackbeard, RCCI CEO

BIOGRAPHY

Linda Blackbeard ran her own

interior design and hospitality

company before taking up the

reigns as CEO of the RCCI. She

is the SACCI Chamber Forum

Chairlady and a member of

the South African Chamber of

Commerce and Industry board

of directors. She was awarded

the Pan African Award in 2018

in recognition of her achievement

as the Continental Lifetime

Achiever sector, CEO

Global Most Influential Women

in Business & Government

2018 Awards.

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 at municipal, provincial

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

or unintended consequences of various acts that are passed. We

also facilitate opportunities into the SADC regions and work very closely

with many embassies regarding trade and tourism.

What does the Chamber do to support SMMEs?

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

finding opportunities for them, business enhancement in 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 sustainable 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 the

City of Johannesburg. We promote our local businesses being awarded

the work that needs to be done in our areas instead of using outsiders.

Does the RCCI interact with the government on issues

relevant to business?

RCCI is one of the chambers in RSA who are affiliated to the only National

Chamber body – South African Chamber of Commerce & Industry (SACCI).

Through SACCI important issues are dealt with directly at government level.

Any chambers affiliated to SACCI in RSA, and who are represented on the

SACCI National Chamber Forum, are able to bring important issues affecting

business to the attention of the SACCI Board. RCCI has two directors on the

SACCI Board. We are also heard at provincial level and endeavour to work with

the CoJ and their relevant business sector committees as the local voice of

business in our various areas of representation.

The Chamber works with the City of Johannesburg, Trade and

Investment SA as well as various national government departments responsible

for economic development. Our goals are to support the city

with its vision. We sit on 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,

GAUTENG BUSINESS 2019/20

54


INTERVIEW

so we look at all areas of safety and security for the

people within our area.

Are your members drawn from 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; all legitimate industry sectors are

entitled to become members of our chamber. We will

support you and try to help you wherever we can. Our

members are from all business and industry sectors.

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. We are also the media hub of the country.

Are there particular challenges?

Randburg Chamber, which is 60 years old in 2019,

would love to embrace more businesses in our area.

There is so much opportunity around and we could facilitate

so much more if businesses joined our chamber

movement. We are delighted with the way our current

directors and their teams are covering the web, social

media, Facebook, LinkedIn and events. Things are very

positive in our neck of the woods and we need all

businesses to participate with us, so we can work more

together in these tough times. The more businesses

stand together with their local chamber of commerce,

the stronger our voice will be at municipal, provincial

and government level. The way of doing business

has changed and the Chamber is moving with the

times. We are represented on the right committees,

we are connected to the right people at the City of

Johannesburg, we are dealing at the right levels of

government though SACCI (South African Chamber of

Commerce & Industry) to whom we are affiliated. They

are the only national chamber body in South Africa.

Do we have the correct connectivity to be able

to assist local businesses in their areas of need? We

continually ask this question to improve our offering.

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?

Our Electronic Certificate of Origin programme for

export is available. This saves the member so much

time and is designed in South Africa especially for

our markets. Businesses and members can look forward

to renewed focus, positive opportunities, and

facilitation in the SADC region for business growth

and opportunity.

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


INDEX

INDEX

BCX........................................................................................................................................................................................................2, 51

Chartered Institute of Government Finance, Auditing and Risk Officers (CIGFARO)...............................53

CompCare Wellness Medical Scheme....................................................................................................................IBC, OBC

Gauteng Growth and Development Agency (GGDA).............................................................................. IFC, 11, 13

Indaba Hotel, Spa & Conference Centre..............................................................................................................................48

Maziya General Services................................................................................................................................................................33

National Metrology Institute of South Africa (NMISA)........................................................................................17, 41

Nedbank.......................................................................................................................................................................................... 19-23

Petroleum Agency South Africa...............................................................................................................................................29

Power Factor Engineering............................................................................................................................................................34

Randburg Chamber of Commerce and Industry (RCCI)...........................................................................................54

RN Software............................................................................................................................................................................................ 5

Transnet Pipelines.............................................................................................................................................................................30

Zigna Training......................................................................................................................................................................................44

GAUTENG BUSINESS 2019/20

56

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