Gauteng Business 2020/21 edition

The 2020/21 edition of Gauteng Business is the 12th 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 infrastructure investment programmes and plans for the establishment of Special Economic Zones (SEZs) as a means to boost economic growth. Another feature on construction and property underlines the importance of spatial planning in the region’s future. Ambitious plans for the City of Johannesburg are outlined, both in the journal's editorial pages and by the Johannesburg Development Agency (JDA).

The 2020/21 edition of Gauteng Business is the 12th 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 infrastructure investment programmes and plans for the establishment of Special Economic Zones (SEZs) as a means to boost economic growth. Another feature on construction and property underlines the importance of spatial planning in the region’s future. Ambitious plans for the City of Johannesburg are outlined, both in the journal's editorial pages and by the Johannesburg Development Agency (JDA).


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<strong>2020</strong>/<strong>21</strong> EDITION<br />





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<strong>Gauteng</strong> <strong>Business</strong> <strong>2020</strong>/<strong>21</strong> Edition<br />

Introduction<br />

Foreword 5<br />

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

Special features<br />

Regional overview of <strong>Gauteng</strong> 6<br />

Special Economic Zones and expanded infrastructure are<br />

central elements to the strategies being devised to grow<br />

the <strong>Gauteng</strong> economy.<br />

Spatial planning and infrastructure<br />

underpin <strong>Gauteng</strong>’s growth plans 10<br />

GDP growth is directly related to infrastructure investment.<br />

Builing mega-cities 16<br />

Ambitious construction plans are afoot in <strong>Gauteng</strong>.<br />

Economic sectors<br />

Agriculture 26<br />

A major starch business is changing hands.<br />

Mining 27<br />

AngloGold Ashanti has sold its last South African asset.<br />

Energy 28<br />

Companies are generating their own power.<br />

Oil and gas 29<br />

Various types of gas are available as fuels.<br />

Transport and logistics 34<br />

Achieving ambitious export goals will boost the logistics sector.<br />

GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong><br />


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Manufacturing 36<br />

The OR Tambo Aerotropolis is attracting manufacturing.<br />

Tourism 38<br />

Tourism operators are determined to rise again.<br />

ICT 40<br />

Financial services is leading the way in ICT investment.<br />

Banking and financial services 41<br />

Banks are looking at insurance and funeral policies.<br />

Development finance and SMME support 44<br />

Government pledges to spend R4-billion with SMMEs annually.<br />

Education and training 46<br />

Skills training is a public and private priority.<br />

References<br />

Key sector contents 24<br />

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

Index 48<br />


Arnold Petersen/iStock by Getty Images.<br />

Sandton at night. With the Liberty Group<br />

among the financiers, Sandton City shopping<br />

centre, with 50 000m² of lettable space,<br />

opened in 1973 and sparked fantastically fast<br />

growth around it, transforming farmland to<br />

the richest square mile in Africa. Several new<br />

corporate headquarters have been built in<br />

recent years in the town that drew its name<br />

from two of its well-known suburbs, Sandown<br />

and Bryanston.<br />

GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong><br />


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

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


Credits<br />

Publishing director:<br />

Chris Whales<br />

Editor: John Young<br />

Managing director: Clive During<br />

Online editor: Christoff Scholtz<br />

Designer: Simon Lewis<br />

Production: Lizel Olivier<br />

Ad sales:<br />

Gavin van der Merwe<br />

Sam Oliver<br />

Jeremy Petersen<br />

Gabriel Venter<br />

Vanessa Wallace<br />

Shiko Diala<br />

Administration & accounts:<br />

Charlene Steynberg<br />

Kathy Wootton<br />

Printing: FA Print<br />

The <strong>2020</strong>/<strong>21</strong> <strong>edition</strong> of <strong>Gauteng</strong> <strong>Business</strong> is the 12th issue<br />

of this highly successful publication that has established<br />

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

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

In addition to the regular articles providing insight into each<br />

of the key economic sectors of the province, there are special<br />

features on infrastructure investment programmes and plans for<br />

the establishment of Special Economic Zones (SEZs) as a means<br />

to boost economic growth. Another feature on construction and<br />

property underlines the importance of spatial planning in the<br />

region’s future.<br />

Ambitious plans for the City of Johannesburg are outlined,<br />

both in the journal’s editorial pages and by the Johannesburg<br />

Development Agency (JDA).<br />

To complement the extensive local, national and international<br />

distribution of the print <strong>edition</strong>, the full content can also be viewed<br />

online at www.globalafricanetwork.com under e-books. Updated<br />

information on <strong>Gauteng</strong> is also available through our monthly<br />

e-newsletter, which you can subscribe to online at www.gan.co.za,<br />

in addition to our complementary business-to-business titles that<br />

cover all nine provinces as well as our flagship South African <strong>Business</strong><br />

title and the new addition to our list of titles, African <strong>Business</strong>, which<br />

was launched in <strong>2020</strong>. ■<br />

Chris Whales<br />

Publisher, Global Africa Network Media | Email: chris@gan.co.za<br />


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

and incoming trade missions, through trade and investment<br />

agencies; to foreign offices in South Africa’s main trading<br />

partners around the world; at top national and international<br />

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

South Africa; as well as nationally and regionally via chambers<br />

of commerce, tourism offices, airport lounges, provincial<br />

government departments, municipalities and companies.<br />

Member of the Audit Bureau<br />

of Circulations<br />


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

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

Directors: Clive During, Chris Whales<br />

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

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

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

ISSN 1990-06<strong>21</strong><br />

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

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

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

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

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

PHOTO CREDITS | Arnold Petersen/iStock by Getty Images, ACSA,<br />

Boogertman and Partners, Coega Development Corporation (CDC), Diesel<br />

Electric Services, Commvault, CNG Holdings, 5M2T, Harmony, Knight<br />

Piésold, Marriott International, Mark Hillary/Flickr, <strong>Gauteng</strong> Partnership<br />

5<br />

Fund (GPF), Johannesburg Development Agency (JDA), Tongaat Hulett,<br />

Venter Consulting Engineers, Wits <strong>Business</strong> School.<br />

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

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

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

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

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

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

any reliance placed on such information.<br />

GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong>



Special Economic Zones and expanded infrastructure are<br />

central elements to the strategies being devised to grow<br />

the <strong>Gauteng</strong> economy.<br />

By John Young<br />

One of the plans to boost <strong>Gauteng</strong>,<br />

“Growing <strong>Gauteng</strong> Together” (GGT<br />

2030) prioritises the economy, jobs and<br />

infrastructure, with the manufacturing<br />

sector earmarked as a key driver.<br />

<strong>Gauteng</strong> accounts for 45% of the South Africa’s<br />

manufacturing capacity, so the province is wellplaced<br />

to expand an already strong and diverse<br />

sector. Manufacturing makes up 14.5% of formal<br />

sector output in <strong>Gauteng</strong>, making it the fourthlargest<br />

sector. One in nine jobs in the province are<br />

created in the sector. According to the <strong>Gauteng</strong><br />

Growth Development Agency (GGDA), six out<br />

of 10 foreign direct investment (FDI) projects in<br />

<strong>Gauteng</strong> have flowed to the manufacturing sector<br />

and its subsectors.<br />

In the five years to 2019, the <strong>Gauteng</strong> City-<br />

Region attracted 447 FDI projects valued at<br />

R264-billion, which created more than 69 000<br />

jobs (FDI Markets).<br />

The GGDA is an implementing agency which<br />

aims to facilitate business enablement, develop<br />

small, medium and micro-enterprises (SMMEs)<br />

and to promote investment and job creation.<br />

Focussed support for these specific subsectors is<br />

intended to spur other investments: automotive<br />

sector, mineral beneficiation, capital equipment,<br />

agro-processing, pharmaceuticals and tertiary<br />

GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong><br />



Tech SEZ (Tshwane), the Vaal SEZ (Sedibeng), and<br />

the Tshwane Automotive SEZ.<br />

The National Department of Trade, Industry and<br />

Competition (dtic) is the lead agent in the creation of<br />

SEZs, which are part of the national Industrial Policy<br />

Action Plan (IPAP). SEZs are designed to attract<br />

investment, create jobs and boost exports.<br />

The Provincial Government of <strong>Gauteng</strong><br />

has identified 10 “high-growth” sectors where<br />

it intends concentrating its efforts to build<br />

infrastructure and to attract public and private<br />

sector investment:<br />

• Energy: new technologies and a diverse<br />

Transportation and logistics.<br />

• ICT, media and digital services.<br />

• Tourism and hospitality.<br />

• Agricultural value chain.<br />

• Construction and infrastructure.<br />

• Automotive, aerospace and defence.<br />

• Financial services.<br />

• Cultural and creative industries.<br />

• Industrialisation of cannabis.<br />

Credit: ACSA<br />

services such as the BPO, ICT services, tourism<br />

and the knowledge economy.<br />

GGDA subsidiaries include The Innovation<br />

Hub (technology), the Automotive Industry<br />

Development Centre (AIDC), which manages<br />

the Automotive Supplier Park (ASP) and InvestSA<br />

<strong>Gauteng</strong> (red tape remover for investors).<br />

The Johannesburg Development Agency<br />

(JDA) plays a similar role as the City of<br />

Johannesburg’s development agency. JDA’s<br />

focus is on helping create resilient, sustainable<br />

and liveable urban areas in identified transit<br />

nodes and corridors. In 15 years, 387 projects<br />

have been implemented.<br />

Special Economic Zones (SEZs) are being<br />

created and expanded across the province to<br />

support manufacturers, providing them with the<br />

necessary infrastructure and access to related<br />

businesses. This has seen the expansion of the<br />

OR Tambo International Airport (ORTIA) SEZ<br />

(Ekurhuleni) and the establishment of the High-<br />

These priorities were announced before the onset<br />

of the Covid-19 global pandemic, so obviously<br />

there will be some major adjustments, especially<br />

with regard to tourism and hospitality which<br />

has suffered major setbacks during the local and<br />

international lockdowns.<br />

It could be that the focus shifts more strongly<br />

to another one of the priorities of local and regional<br />

government, affordable housing. Much has been<br />

done to provide housing since the dawn of the<br />

democratic era in 1994, but much more needs<br />

to be done in response to rapid urbanisation.<br />

<strong>Gauteng</strong> Province has pledged to provide 100 000<br />

service stands to qualifying <strong>Gauteng</strong> residents who<br />

want to and are able build their own homes and<br />

it wants an additional 250 000 people to be able<br />

to recent “decent accommodation” over the next<br />

five to 10 years. This is in addition to facilitating the<br />

development of mega-cities, one to the west of<br />

Lanseria and the other to the south of Vereeniging.<br />

Vaal River City will span the Orange River and<br />

eventually link up with Sasolburg in the Free State,<br />

according to the blueprint.<br />

Another housing initiative will see provincial<br />

funds ring-fenced to formalise informal settlements<br />

7 GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong>


and to upgrade hostels into family units. All of<br />

these programmes should provide a boost to the<br />

construction and property sector and to small<br />

businesses in both sectors.<br />

15 Alice Lane Annex. Image: Andrew Bell/Paragon Architects<br />

Overview of the province<br />

<strong>Gauteng</strong> is South Africa’s smallest province in<br />

terms of landmass but in every other respect it is<br />

a giant. The province is the nation’s key economic<br />

growth engine.<br />

At 18 176km², the province makes up just 1.5%<br />

of South Africa’s territory, but even that aspect<br />

showed growth in 2018 when the territory<br />

of Ekangala was formally transferred from<br />

Mpumalanga Province to <strong>Gauteng</strong> Province.<br />

Theland had previously been part of the<br />

KwaNdebele homeland.<br />

The 14.3-million people living in <strong>Gauteng</strong> in<br />

2017 generated a gross domestic product of R1.59-<br />

trillion, about a third of South Africa’s GDP (StatsSA).<br />

<strong>Gauteng</strong> shares borders with four provinces, the<br />

Free State, North West, Limpopo and<br />

Mpumalanga. The southern border of<br />

the province is the Vaal River and most of<br />

the province is located on the Highveld.<br />

The Witwatersrand, which runs through<br />

Johannesburg, marks the continental<br />

divide: rivers running to the north drain<br />

into the Indian Ocean, rivers running<br />

south drain into the Atlantic Ocean via<br />

the Vaal into the Orange River. <strong>Gauteng</strong><br />

draws its water from a series of interconnected<br />

river transfer systems. A major<br />

source of water is the Lesotho Water<br />

Highlands Project.<br />

The Witwatersrand was the source of<br />

the gold that drew so many thousands of<br />

people to the area in the late 19th century<br />

and was the origin of the word for South<br />

Africa’s currency, the “rand”.<br />

<strong>Gauteng</strong> is a leader in a wide range of economic<br />

sectors: finance, manufacturing, commerce, IT and<br />

media among them. The Bureau of Market Research<br />

(BMR) has shown that <strong>Gauteng</strong> accounts for 35% of<br />

total household consumption in South Africa.<br />

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

estate and business, manufacturing, government<br />

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

and accommodation. The creative industries<br />

(including advertising and the film sector) employ<br />

upwards of 180 000 people and contribute more<br />

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


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sector is seen as a driver of future growth.<br />

In Johannesburg, financial services and<br />

commerce predominate. The JSE, Africa’s largest<br />

stock exchange, is in Sandton and several new stock<br />

exchanges have recently received licences.<br />

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

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

of the automotive industry and many research<br />

institutions. The Ekurhuleni metropole has the largest<br />

concentration of manufacturing concerns, ranging<br />

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

western part of the province is concerned mainly<br />

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

combination of maize farming, tobacco production<br />

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

and iron-ore workings.<br />

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

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

Johannesburg (15%), Tshwane (9%) and<br />

Ekurhuleni (7%).<br />

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

economic activity it is also an important launching<br />

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

Nelson Mandela Bridge at night. Image: SA Tourism<br />

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

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

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

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

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

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

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

Johannesburg) is a superior court with general<br />

jurisdiction over the province. Johannesburg is also<br />

home to the Constitutional Court, South Africa’s<br />

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

and the Labour Appeal Court.<br />

The province has several outstanding universities,<br />

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

at well-regarded institutions such as the Council for<br />

Scientific and Industrial Research (CSIR), the South<br />

African Bureau of Standards (SABS), Mintek, the<br />

South African Nuclear Energy Corporation (NECSA),<br />

the Human Sciences Research Council (HSRC) and<br />

several sites where the work of the Agricultural<br />

Research Council (ARC) is done. ■<br />

9 GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong>


Spatial planning and infrastructure<br />

underpin <strong>Gauteng</strong>’s growth plans<br />

GDP growth is directly related to infrastructure investment.<br />

Credit: Coega Development Corporation<br />

Infrastructure spending and areas dedicated to<br />

specific kinds of manufacturing are intended<br />

to drive economic growth in the <strong>Gauteng</strong><br />

Province.<br />

Both concepts fall within broader national plans<br />

to boost industrialisation through various kinds of<br />

Special Economic Zones (SEZs) and infrastructural<br />

initiatives. A number of national and provincial<br />

planning frameworks inform the planning of<br />

<strong>Gauteng</strong>’s economic future. These include the<br />

National Development Plan, Growing <strong>Gauteng</strong><br />

Together (GGT 2030), <strong>Gauteng</strong> 2055 Vision and<br />

the City of Johannesburg’s Growth Development<br />

Strategy and Spatial Development Framework.<br />

The <strong>Gauteng</strong> Provincial Government will<br />

spend R60-billion on building and maintaining<br />

infrastructure in the five years to 2025. The<br />

provincial authorities further estimate that about<br />

R100-billion will be spent on infrastructure<br />

projects in the province by a variety of stateowned<br />

enterprises (SOEs) and national<br />

departments in the next decade. The overall<br />

estimate for the injection of capital related to<br />

infrastructure, including private initiatives, is<br />

calculated at R760-billion in the period to 2030.<br />

A 15-year <strong>Gauteng</strong> Infrastructure Master<br />

Plan has been adopted but multiple sources<br />

of funding are needed for the plan to succeed<br />

in areas such as the provision of water,<br />

logistics, broadband connectivity, public<br />

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

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

the case under apartheid. A World Bank report<br />

has shown that a 10% increase in infrastructure<br />

spending results in a 1% growth in GDP.<br />

<strong>Gauteng</strong> began laying the groundwork for<br />

GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong><br />



creating a research base for urban planning as<br />

far back as 2008 when the <strong>Gauteng</strong> City-Region<br />

Observatory (GCRO) was established. A partnership<br />

between the University of Johannesburg (UJ), the<br />

University of the Witwatersrand, Johannesburg<br />

(Wits) and the <strong>Gauteng</strong> Provincial Government,<br />

the GCRO does research on which planners can<br />

base their projections.<br />

A Township Economic Development Bill is to be<br />

introduced in the provincial legislature to reduce<br />

the amount of red tape faced by small businesses.<br />

Growth strategies are to be integrated to ensure<br />

that township SMMEs and black industrialists are<br />

considered when programmes such as the focus<br />

on 10 “high-growth sectors” are implemented. Youth<br />

employment will be factored in to plans to support<br />

those sectors.<br />

Corridors and SEZs<br />

Five corridors have been identified for development<br />

purposes. Each has core existing economic activities<br />

which will be supported and expanded. In addition,<br />

new activities will be encouraged to diversify the<br />

area’s economic potential and create jobs.<br />

The <strong>Gauteng</strong> City-Region will have three fully<br />

operating Special Economic Zones (SEZs) by<br />

2025. These will be based in Ekurhuleni, Tshwane<br />

and Sedibeng with an additional Special Agro-<br />

Processing Zone located in the West Rand. The<br />

province intends reviving 15 industrial parks and<br />

creating 12 agri-parks and five agro-processing<br />

facilities across the province.<br />

By 2030, <strong>Gauteng</strong> will have the biggest inland<br />

logistics hub and dry port in Africa – the Transnet<br />

Tambo-Springs Logistics Gateway.<br />

These area-based infrastructure and logistics<br />

projects are expected to contribute to giving the<br />

province a competitive edge in the 10 economic<br />

sectors that have been identified as “high-growth”.<br />

This in turn will create opportunities for small,<br />

medium and micro-enterprises (SMMEs) and<br />

township businesses.<br />

The Tshwane Automotive Special Economic<br />

Zone (TASEZ) (pictured) is a key project within the<br />

Northern Corridor. It is a project of the <strong>Gauteng</strong><br />

Province, the Department of Trade, Industry<br />

and Competition, and the City of Tshwane. The<br />

implementing agent is the Coega Development<br />

Corporation (CDC), the developer and operator of<br />

the Coega Special Economic Zone (SEZ).<br />

The TASEZ, branded as “Africa’s First Automotive<br />

City”, has a mandate to promote economic<br />

participation for SMMEs and create employment<br />

in the region. Sectors targeted include security, ICT<br />

maintenance, facility maintenance, construction,<br />

automotive supply chain, marketing and<br />

advertising, catering and events.<br />

The benefits that arise from clustering of<br />

businesses in related sectors is a key element of an<br />

SEZ. Both the Nissan and BMW plants are expanding<br />

and Ford is investing in Silverton. An Incubation<br />

Centre for SMMEs has been launched at Nissan’s<br />

assembly plant in Rosslyn. The facility supports<br />

small enterprises through subsidised rental and<br />

mentorship and training. Management of the centre<br />

is done by the Automotive Industry Development<br />

Centre (AIDC), a subsidiary of the <strong>Gauteng</strong> Growth<br />

and Development Agency (GGDA). The Jobs Fund<br />

contributes to financing the project.<br />

Other focus sectors in this corridor include<br />

agriculture and agro-processing, defence, the<br />

aerospace and aviation industries together with<br />

the innovation, research and development cluster<br />

anchored around the <strong>Gauteng</strong> Innovation Hub,<br />

universities and research institutes.<br />

The OR Tambo SEZ is at the centre of the Eastern<br />

Corridor, which underscores Ekurhuleni’s strengths<br />

in manufacturing and logistics. The OR Tambo<br />

SEZ has launched the biggest food processing<br />

operation in the southern hemisphere (and the<br />

world’s second-largest refrigeration plant). With<br />

a special focus on export-oriented value-added<br />

industry, the OR Tambo SEZ leverages its connection<br />

to the country’s busiest airport. The focus of this SEZ<br />

is on agro-processing, jewellery manufacturing and<br />

mineral beneficiation as well as the development<br />

of hydrogen fuel cell technology. This is another<br />

subsidiary of the GGDA.<br />

Other Eastern Corridor sectors include rail and<br />

bus manufacturing (including the PRASA-Gibela<br />

rail manufacturing hub in Nigel), defence and<br />

aerospace and food and beverages.<br />

The Western Corridor encompasses the<br />

economy of the West Rand and has been targeted<br />

11 GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong>


Credit: Mark Hillary/Flickr<br />

for the creation of new zones for development,<br />

housing, and industry. The aim is to diversify away<br />

from mining towards renewable energy, tourism,<br />

bus manufacturing and agro-processing. The<br />

release of 30 000 hectares of land by Sibanye Gold<br />

has unlocked the potential for major investment<br />

projects. A Smart City is envisaged for Lanseria<br />

and the area to its west.<br />

Where steel used to be the anchor industry in<br />

the Southern Corridor, today the aim is to build<br />

new industries through an SEZ that will cover<br />

both sides of the Vaal River and thus extend into<br />

the Free State Province. Among the investments<br />

that will create impetus are the Savannah City<br />

development, Vaal River City development, a<br />

cargo airport and logistics hub, the AB InBev<br />

investment project, the <strong>Gauteng</strong> Highlands<br />

water project, the Vaal Marina development and<br />

logistics and mining investments in the Lesedi<br />

Local Municipality, which includes Heidelberg<br />

and Nigel.<br />

Metropolitan drivers<br />

The Central Development Corridor revolves around<br />

the City of Johannesburg as the hub the of financial<br />

services, information and communication technology,<br />

services and pharmaceutical sectors.<br />

New investments are planned for the Joburg<br />

Inner-City and the South, from Soweto, N12<br />

which includes Masingita City, Southern Farms to<br />

Orange Farm.<br />

The City of Johannesburg has recently<br />

completed a review of its policy of nodal<br />

development with a view to creating a fairer<br />

spatial framework for the city than that created<br />

by the racist planning laws of the apartheid era.<br />

As Member of the Mayoral Committee<br />

Lawrence Khoza puts it, “Nowhere is the legacy<br />

of our painful past expressed more vividly than<br />

in the racially divided spatial character of South<br />

Africa’s cities.”<br />

Johannesburg has designated eight zones:<br />

Inner-city: high-intensity use.<br />

Metropolitan: mix of land uses which currently<br />

includes Sandton and Rosebank and will expand<br />

to include parts of Soweto.<br />

General urban: designed to be transformative,<br />

mix of economic and residential use.<br />

Local economic development: interventions<br />

planned to create economic opportunities in<br />

areas with poor facilities (Zandspruit, Orange<br />

Farm, parts of Soweto).<br />

Suburban: lower density with local mixing of<br />

land use (homes, offices, offices, shops).<br />

Dark green: a limit of 8% coverage of buildings.<br />

Peri-urban/agriculture: low density.<br />

Another transformative initiative being<br />

undertaken in Johannesburg is the use of<br />

Transit-Oriented Development (TOD) to drive<br />

investment and development. Implemented by<br />

the Johannesburg Development Agency (JDA),<br />

the TODs are another attempt to improve the lives<br />

of people living in previously neglected areas.<br />

GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong><br />



One such TOD is the Jabulani TOD in Soweto<br />

where a seven-phase project is underway that<br />

includes a multi-purpose hall, a library, counselling<br />

facilities, sports facilities, offices and meeting rooms.<br />

A pedestrian bridge over a railway line and new<br />

roads underscore the transport element, with the<br />

facilities near the Bus Rapid Transport (BRT) route<br />

that runs through Soweto to central Johannesburg.<br />

TODs are designed to attract further investment and<br />

are supported by the Neighbourhood Development<br />

Partnership Grant from National Treasury.<br />

Other projects undertaken by the JDA range<br />

from the upgrading of Constitution Hill, the Faraday<br />

Station precinct, work on the Fashion District and<br />

pavements of the inner city, renovation of the Drill<br />

Hall and the big Newtown make-over.<br />

Johannesburg has been the focus of a major<br />

tax incentive initiative, the Urban Development<br />

Zone (UDZ). The inner city of Johannesburg,<br />

comprising just less than 18km², is the largest<br />

UDZ in South Africa and it is expanding its<br />

footprint in response to significant successes that<br />

have been achieved.<br />

The Johannesburg Social Housing Company<br />

(Joshco) has plans to provide affordable rental<br />

accommodation in 12 inner-city buildings that<br />

were recently identified for that purpose. But the<br />

main target for the UDZ is private investors.<br />

The City of Johannesburg has identified the<br />

following nodes for development:<br />

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

building attracts tourists; undergoing revamp;<br />

Sky Rink TV and film studio being developed;<br />

conference centre planned.<br />

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

cars, buses, rail commuters and taxis; Gautrain<br />

link to OR Tambo International Airport; wide<br />

variety of users.<br />

• Central park: JDA has worked on greening and<br />

community engagement and wants the park to<br />

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

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

planned retail hub and student village.<br />

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

and accommodation can be built.<br />

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

to cater to students and university departments<br />

with specialised offices and spaces.<br />

• Hillbrow, Berea, Parktown, Bellvue,<br />

Yeoville: creation of new public open<br />

space; opportunities for office and hotel<br />

developments.<br />

National Infrastructure boost<br />

An Investment and Infrastructure Office has<br />

been created in the Presidency. It is headed<br />

by the former <strong>Gauteng</strong> MEC for Economic<br />

Development, Dr Kgosientso Ramokgopa. In <strong>2020</strong>,<br />

51 infrastructure projects with a total investment<br />

value of more than R340-billion were gazetted.<br />

Ten of the 18 affordable housing projects<br />

listed are located in <strong>Gauteng</strong>. These include<br />

Malibongwe Ridge, Green Creek, Mooikloof<br />

Mega Residential City, Fochville Extension 11<br />

and Germiston Ext 4 Social Housing Project. A<br />

large project is underway in Tshwane, Salvokop<br />

Precinct, to house government<br />

departments and commercial<br />

buildings.<br />

The energy projects identified<br />

by national government will<br />

have an impact on <strong>Gauteng</strong>,<br />

the country’s biggest consumer<br />

of energy. Priorities include<br />

embedded generation and<br />

the huge water supply project,<br />

Phase 2 of the Lesotho Highlands<br />

Water Project, will create many<br />

opportunities. ■<br />

13 GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong>

FOCUS<br />

Selby Bus Rapid Transit depot<br />

is taking shape<br />

The Johannesburg Development Agency (JDA) is building infrastructure<br />

to make the city more resilient, liveable and sustainable.<br />

Selby BRT depot, which will service two Rea<br />

Vaya BRT operating companies, will be utilised<br />

for major and minor maintenance of<br />

buses for maintaining in-service buses and<br />

out-of-service buses. The centrally-located depot<br />

will minimise dead mileage as well as minimise the<br />

time lost by buses in traffic congestion between<br />

depots and route starting points.<br />

The JDA is a wholly-owned area-based<br />

development agency of the City of Johannesburg<br />

with an emphasis on the development of resilient,<br />

sustainable and liveable urban areas in identified<br />

transit nodes and corridors. This means that as an<br />

area-based development agency, we are more<br />

than just a project management agency or an<br />

economic development agency.<br />

The JDA operates within the context of the<br />

spatial transformation of South African cities<br />

to correct the spatial and systemic inequalities<br />

created by past regimes of segregation. This<br />

is the foremost goal of urban development<br />

in the coming years. A more equitable, more<br />

just city is one that extends access to a range<br />

of opportunities and services to all of its<br />

citizens. This is aligned to the City of Johannesburg’s<br />

Growth and Development Strategy<br />

(GDS) 2040.<br />

One of the GDS 2040 outcomes is to<br />

provide a resilient, liveable and sustainable<br />

urban environment – underpinned by smart<br />

infrastructure supportive of a low-carbon<br />

economy. The JDA is currently revamping the<br />

existing Selby bus depot in the Johannesburg<br />

inner city, to turn it into a state-of-the-art Rea<br />

Vaya Bus Rapid Transit (BRT) depot for Phase 1B<br />

and Phase 1C operations.<br />

The JDA, on behalf of the City of<br />

Johannesburg’s Department of Transport, is<br />

undertaking the construction of the Selby BRT<br />

in three phases, namely phase 2A, phase 2B and<br />

phase 2C.<br />

The Selby BRT depot, which will service two<br />

Rea Vaya BRT operating companies, will be utilised<br />

for major and minor maintenance of buses by<br />

maintaining in-service buses and out-of-service<br />

buses. The centrally-located depot will minimise<br />

dead mileage, as well as minimise the time lost by<br />

buses in traffic congestion between depots and<br />

route starting points.<br />

An Intelligent Transport System monitors traffic via<br />

multiple screens.<br />

GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong><br />


FOCUS<br />

In 2013, the JDA developed the first depot<br />

in Meadowlands in Soweto. The Selby BRT<br />

depot is being revamped to be on par with the<br />

Meadowlands depot, which is environmentally<br />

friendly and custom-made for Rea Vaya buses.<br />

Phase 2B, covering the construction of the<br />

bus depot workshops and refuelling garages and<br />

Phase 2C, which involves the construction of the<br />

administration building, are currently underway.<br />

The scope of work for Phase 2B includes<br />

extensive alterations, refurbishments and additions<br />

to an existing workshop building. This includes<br />

the construction of a new refuelling building,<br />

a new double-volume wash-bay building, two<br />

new refuse buildings, a new gate house, civil<br />

works, stormwater infrastructure, concrete paving<br />

panels with layerworks, and mechanical and<br />

electrical installations.<br />

This construction also plays a role in job creation<br />

and skills development, with 30% of the contract<br />

value being awarded to SMMEs.<br />

Environmentally-friendly features include lights<br />

controlled by sensors, a robust, mild-steel sheeting<br />

for the roof, cladding to help with climate control,<br />

and a noise-wall barrier erected around the<br />

premises. The roof structures will also allow direct<br />

sunlight into the building to reduce the need for<br />

artificial lighting. Water is recycled for reuse in the<br />

buildings and the wash bay.<br />

Work planned for Phase 2C includes the<br />

redevelopment and refurbishment of an existing<br />

administration building. This comprises demolition<br />

works to various areas, the refurbishment of<br />

workshop areas, construction of a new canteen<br />

and gymnasium, the construction of new<br />

offices, administration rooms, boardrooms and<br />

storerooms, the construction of a new main foyer<br />

and reception areas and the refurbishment of<br />

courtyard spaces.<br />

The construction of additional toilet blocks,<br />

new lifts to aid accessibility, service ducts, new<br />

pedestrian and vehicular access with security<br />

offices, external works and the installation of<br />

electrical and mechanical infrastructure will also<br />

be undertaken.<br />

Phase 2A, now complete,<br />

entailed the construction<br />

of the perimeter fence, bus<br />

parking area platform, site<br />

access road, main parking<br />

area driveway upgrade and<br />

the construction of the main<br />

entrance road into the depot<br />

(along the Pat Mbatha Road<br />

intersection with Ignatius<br />

Street).<br />

Once completed, the<br />

Selby BRT depot, which was<br />

formerly used by Putco Bus<br />

Company, will accommodate<br />

up to 270 buses and feature an administration<br />

building, maintenance building, washing and<br />

refuelling bays and an Intelligent Transport System<br />

(ITS) control centre. The administration block<br />

features ablution facilities, a canteen, offices and<br />

staff and visitors parking.<br />

Contact details<br />

Physical address: The Bus Factory No 3, Helen<br />

Joseph Street Newtown, Johannesburg<br />

Postal address: PO Box 61877, Marshalltown <strong>21</strong>07<br />

Tel: + 27 11 688 7851 | Fax: +27 11 688 7899<br />

Email: info@jda.org.za | Web: www.jda.org.za<br />

15 GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong>


Building mega-cities<br />

Ambitious construction plans are afoot in <strong>Gauteng</strong>.<br />

Housing at Fleurhof Ext 2, sponsored by the Madulamoho Housing<br />

Association. CREDIT: <strong>Gauteng</strong> Partnership Fund<br />

The fourth quarter of <strong>2020</strong> and the first half of 20<strong>21</strong> must<br />

be growth periods for the construction and property sectors<br />

– for the simple reason that they barely functioned<br />

during the lockdown caused by the global pandemic.<br />

South Africa is fortunate in that it is emerging from the<br />

lockdown at the same time as summer days lengthen and the<br />

national government is getting down to brass tacks with its<br />

long-awaited infrastructure programme. With a dedicated unit<br />

within the Presidency, a conference has been held and more than<br />

200 hundred possible projects have been whittled down to 51<br />

projects that have been gazetted.<br />

By 2030 <strong>Gauteng</strong> will have two huge new cities, socially<br />

diverse, digitally connected and ecologically responsible and<br />

sustainable. That’s if the Provincial Government of <strong>Gauteng</strong> brings<br />

to fruition its plans for the west (Lanseria to Haartbeespoort<br />

Dam) and in the south, where Vaal River City will stretch from<br />

Vereeniging to Sasolburg in the Free State.<br />

In the 25 years since South Africa has been a democracy,<br />

more than 1.2-million subsidised houses have been built by<br />

government in <strong>Gauteng</strong>. Provincial government has pledged to<br />

release 10 000 serviced stands as part of its Rapid Land Release<br />

programme and it intends<br />

finishing incomplete housing<br />

projects in Alexandra, Evaton,<br />

Kliptown, Bekkersdal and<br />

Winterveldt.<br />

Bodies such as the National<br />

Housing Finance Corporation,<br />

Indlu and Umastandi (social<br />

capital entrepreneurs) are<br />

working together with<br />

provincial authorities to find<br />

ways to formalise and monetise<br />

the township market so that<br />

sustainable incomes can be<br />

generated and affordable<br />

housing and rental stock<br />

becomes more readily available.<br />

An important concept for<br />

developers in Johannesburg<br />

is the tax incentive that<br />

accompanies the Urban<br />

Development Zone (UDZ).<br />

The City of Johannesburg and<br />

the South African Property<br />

Owners Association (SAPOA)<br />

have developed a database<br />

for all UDZ properties.<br />

Information about the owner<br />

of the plot, the valuation and<br />

zoning rights is available for<br />

every stand.<br />

Various “improvement<br />

districts” have also been created,<br />

for example the RID (Retail<br />

Improvement District) where<br />

businesses in a designated area<br />

pay levies to secure improved<br />

cleaning and security services.<br />

The Johannesburg City<br />

Improvement District Forum<br />

shares information among<br />

the CIDs. Expenditure by CIDs<br />

GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong><br />



collectively on supplementary<br />

public space safety, cleaning and<br />

maintenance is estimated to be<br />

about R61-million annually.<br />

The <strong>Gauteng</strong> Partnership<br />

Fund (GPF) has attracted more<br />

than R3.5-billion in private<br />

sector funding for affordable<br />

housing in the province since<br />

2012. The Brickfields housing<br />

and rental development in<br />

Newtown was funded by the<br />

GPF and implemented by<br />

the Johannesburg Housing<br />

Company (JHC) as one of the<br />

first inner-city rejuvenation<br />

projects. JHC is a leader in<br />

converting bad buildings to<br />

useable rental space.<br />

The Johannesburg<br />

Development Agency (JDA)<br />

projects range broadly across<br />

many areas within the city, and<br />

include plans to use transport<br />

hubs to improve the lives of<br />

residents living in previously<br />

neglected areas.<br />

Private developer<br />

Indluplace Properties<br />

has purchased nine large<br />

apartment blocks, taking<br />

its total buildings in central<br />

Johannesburg CBD, Berea and<br />

Hillbrow to 23: 33% of the units<br />

are bachelor pads, 22% are<br />

two-bedroomed flats. The listed<br />

company (its major shareholder<br />

is Arrowhead) intends to<br />

“aggressively grow its portfolio”<br />

of high-yielding properties as it<br />

believes the rental market has<br />

huge potential.<br />

Property developments<br />

Quite what the future of office space will be remains to<br />

be seen in the wake of Covid-19. Investment and pension<br />

funds are heavily invested in commercial and residential<br />

property so this is something that will be closely<br />

monitored in the early <strong>2020</strong>s.<br />

The hugely successful Sandton model of office and<br />

accommodation development is being replicated across<br />

the province. Sandton’s 10 000 businesses and 300 000<br />

residents are spoilt for accommodation choices, but<br />

city-like developments are springing up in other parts of<br />

<strong>Gauteng</strong> as well.<br />

The newest is Castle Gate Lifestyle Centre, which is being<br />

built in Pretoria as the first phase in a multi-use development<br />

that will eventually comprise offices, medical facilities, a hotel<br />

along with a retail centre and more than 1 000 residential<br />

units. The R6-billion project is being undertaken by Atterbury<br />

and the Carl Erasmus Trust.<br />

The biggest is Menlyn Maine in the eastern suburbs of Pretoria.<br />

Not only is this a huge multi-use project, it also aims to be South<br />

Africa’s first “Green Precinct”. Professional services and consulting<br />

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

the site for its R1.5-billion headquarters, housing 3 500 employees<br />

with a total of 40 000m² of lettable space. The building is owned<br />

by Attacq and developed by Atterbury.<br />

Rosebank’s popularity as an office node continues to<br />

grow and Melrose Arch has proved a popular development,<br />

but none of this has stopped Sandton continue to expand<br />

and it remains first choice as the national base for several<br />

large companies. Recent new headquarters have been<br />

constructed for Discovery and Sasol.<br />

The trend called “semigration” has been having a<br />

downward effect on <strong>Gauteng</strong>’s residential property prices<br />

for some time. Semigration refers to people moving within<br />

the country – not quite emigrating – to the Western Cape.<br />

Pam Golding Properties CEO Andrew Golding told the<br />

Sunday Times in November 2019 that the Cape drought<br />

had led to other areas such as the Garden Route and the<br />

north coast of KwaZulu-Natal becoming more popular as<br />

destinations. ■<br />

17 GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong>

10 REASONS<br />


01.<br />


MARKET<br />

Growing middle class, affluent consumer<br />

base, excellent returns on investment.<br />

02.<br />



South Africa (SA) has the most industrialised economy in Africa.<br />

It is the region’s principal manufacturing hub and a leading<br />

services destination.<br />



SA is the location of choice of multinationals in Africa.<br />

03.<br />

Global corporates reap the benefits of doing business in<br />

SA, which has a supportive and growing ecosystem as a<br />

hub for innovation, technology and fintech.<br />

05.<br />





SA has a sophisticated banking sector with a major<br />

footprint in Africa. It is the continent’s financial hub,<br />

with the JSE being Africa’s largest stock exchange by<br />

market capitalisation.<br />

The African Continental Free Trade Area will boost<br />

intra-African trade and create a market of over one<br />

billion people and a combined gross domestic product<br />

(GDP) of USD2.2-trillion that will unlock industrial<br />

development. SA has several trade agreements in<br />

place as an export platform into global markets.<br />


09.<br />

SA has a number of world-class universities and colleges<br />

producing a skilled, talented and capable workforce. It<br />

boasts a diversified skills set, emerging talent, a large pool<br />

of prospective workers and government support for training<br />

and skills development.<br />

07.<br />

04.<br />

06.<br />

08.<br />





SA has a progressive Constitution and an independent judiciary. The<br />

country has a mature and accessible legal system, providing certainty<br />

and respect for the rule of law. It is ranked number one in Africa for the<br />

protection of investments and minority investors.<br />



SA is endowed with an abundance of natural resources. It is the leading producer<br />

of platinum-group metals (PGMs) globally. Numerous listed mining companies<br />

operate in SA, which also has world-renowned underground mining expertise.<br />




A massive governmental investment programme in infrastructure development<br />

has been under way for several years. SA has the largest air, ports and logistics<br />

networks in Africa, and is ranked number one in Africa in the World Bank’s<br />

Logistics Performance Index.<br />

10.<br />

SA offers a favourable cost of living, with a diversified cultural, cuisine and<br />

sports offering all year round and a world-renowned hospitality sector.<br />


OF LIFE<br />

Page | 2<br />

19<br />

SOUTH AFRICAN BUSINESS <strong>2020</strong>

Sectoral strengths of of<br />

South South African provinces<br />



A wide A wide variety variety of investments of investments are available. are available.<br />


Mpumalanga: Mpumalanga:<br />

<strong>Gauteng</strong>: <strong>Gauteng</strong>:<br />

• Mining • Mining<br />

• Financial • Financial and business and business services services<br />

• Tourism • Tourism<br />

• Information • Information and communications<br />

and communications<br />

• Forestry, • Forestry, paper and paper paper and paper<br />

technology technology<br />

products, products, wood and wood wood and wood<br />

• Transport • Transport and logistics and logistics<br />

products products<br />

• Basic • iron Basic and iron steel, and steel steel, products steel products Limpopo: Limpopo: • Agriculture • Agriculture and agroprocessinprocessing<br />

and agro-<br />

• Fabricated • Fabricated metal products metal products • Mining • Mining<br />

• Motor • vehicles, Motor vehicles, parts and parts accessories and accessories • Fertilisers • Fertilisers • Metal • products Metal products<br />

• Appliances • Appliances<br />

• Tourism • Tourism<br />

• Machinery • Machinery and equipment and equipment • Agriculture • Agriculture<br />

• Chemical • Chemical products, products, pharmaceuticals pharmaceuticals • Agro-processing • Agro-processing<br />

• Agro-processing • Agro-processing • Energy, • including Energy, including<br />

North West: North West:<br />

renewables renewables (solar) (solar)<br />

• Mining • Mining<br />

• Agriculture • Agriculture and agro-processing<br />

and agro-processing<br />

KwaZulu-Natal: KwaZulu-Natal:<br />

• Tourism • Tourism<br />

• Transport • Transport and logistics and logistics<br />

• Metal • products Metal products<br />

• Tourism • Tourism<br />

• Machinery • Machinery and equipment and equipment<br />

• Motor • vehicles, Motor vehicles, parts and parts and<br />

• Renewable • Renewable energy (solar) energy (solar)<br />

accessories accessories<br />

• Petrochemicals • Petrochemicals<br />

• Aluminium • Aluminium<br />

• Clothing • Clothing and textiles and textiles<br />

• Machinery • Machinery and equipment and equipment<br />

• Agriculture • Agriculture and agroprocessinprocessing<br />

and agro-<br />

Northern Northern Cape: Cape:<br />

• Mining • Mining<br />

• Forestry, • Forestry, pulp and pulp paper, and paper,<br />

• Agriculture • Agriculture and agro-processing<br />

and agro-processing<br />

wood and wood wood and products wood products<br />

• Fisheries • Fisheries and aquaculture and aquaculture<br />

• Renewable • Renewable energy (solar, energy wind) (solar, wind)<br />

• Jewellery • Jewellery manufacturing manufacturing<br />

Eastern Eastern Cape: Cape:<br />

Western Western Cape: Cape:<br />

•<br />

• Motor vehicles, parts and<br />

Tourism •<br />

• Motor vehicles, parts and<br />

Tourism<br />

accessories accessories<br />

• Financial • Financial and business and business services services<br />

•<br />

• Forestry, wood and wood products<br />

Transport •<br />

• Forestry, wood and wood products<br />

Transport and logistics and logistics<br />

•<br />

• Clothing and textiles<br />

ICT• • Clothing and textiles<br />

ICT<br />

Free State: Free State:<br />

•<br />

• Pharmaceuticals<br />

Agriculture •<br />

• Pharmaceuticals<br />

Agriculture and agro-processing<br />

and agro-processing<br />

• Agriculture • Agriculture and agro-processing<br />

and agro-processing<br />

•<br />

• Leather and leather products<br />

Fisheries •<br />

• Leather and leather products<br />

Fisheries and aquaculture and aquaculture<br />

• Mining • Mining<br />

•<br />

• Tourism<br />

Petrochemicals •<br />

• Tourism<br />

Petrochemicals<br />

• Petrochemicals • Petrochemicals<br />

•<br />

• Renewable energy (wind)<br />

Basic •<br />

• Renewable energy (wind)<br />

iron Basic and iron steel and steel<br />

• Machinery • Machinery and equipment and equipment<br />

• Clothing • Clothing and textiles and textiles<br />

• Tourism • Tourism<br />

• Renewable • Renewable energy (solar, energy wind) (solar, wind)<br />

FOCUS<br />

Source: Industrial Source: Industrial Development Development Corporation Corporation (IDC); The (IDC); Case The for Case<br />

Source: Industrial Development Corporation (IDC)<br />

Investing for Investing South in Africa, South Africa, Executive Executive Summary Summary<br />

Source: Industrial Development Corporation (IDC)<br />

(South African (South Investment African Investment Conference, Conference, 2018). 2018).<br />

(South African Investment Conference, 2018).<br />

Page | 40 Page | 40<br />

19<br />



BUSINESS BUSINESS <strong>2020</strong>/<strong>21</strong><br />

<strong>2020</strong> <strong>2020</strong>


see money differently<br />




Pedro Rhode, Nedbank’s Provincial General Manager for <strong>Gauteng</strong><br />

East, explains how brand values built on the bank’s expertise can<br />

benefit Nedbank clients, especially in what is now ‘the new normal’.<br />

Our client-centred strategy and digital<br />

innovation enabled us to continue<br />

serving clients in the comfort of their<br />

homes through the Covid-19 lockdown. It<br />

brought convenience to clients and helped<br />

them to comply with lockdown regulations,'<br />

he says.<br />

Rhode says that for small- and mediumsized<br />

business clients, Nedbank continues to<br />

deliver end-to-end solutions through a<br />

dedicated business manager. ‘Our biggerpicture<br />

business approach ensures that<br />

we are able to take a holistic view of each<br />

business by understanding the vision,<br />

cashflow cycle, and transactional and<br />

capital expenditure needs. This way, we<br />

become trusted advisors to the business<br />

owners who strive to grow their business.’<br />

Small businesses often lack formalisation, as<br />

shown by many not qualifying for Covid-19<br />

assistance due to out-of-date records and<br />

not meeting regulatory requirements.<br />

Rhode says that Nedbank’s experts are<br />

available to provide all the support small<br />

businesses need, beyond affordable<br />

banking solutions. ‘We offer value-added<br />

services to get and keep your business<br />

going, such as our free-to-join networking<br />

‘<br />

helps clients with debt<br />

consolidation to ease their<br />

financial difficulties …<br />

’<br />

portal, SimplyBiz.co.za, The Essential Guide<br />

for Small-business Owners, business<br />

registration services and free smallbusiness<br />

seminars.’<br />

Rhode adds that the current economic<br />

climate has highlighted low financial literacy<br />

levels among South Africans who find<br />

themselves highly indebted. 'Nedbank Retail<br />

Banking helps clients with debt consolidation<br />

to ease their financial difficulties, and<br />

financial literacy programmes and tailormade<br />

solutions to empower them to save<br />

and make better financial decisions for the<br />

future.'<br />

‘<br />

Nedbank Retail Banking<br />

To take your financial wellness to the next<br />

level or for more information about Nedbank’s<br />

specialised service offering, email<br />

Pedro Rhode at pedror@nedbank.co.za or<br />

visit www.nedbank.co.za/business.


see money differently<br />



IN POST COVID-19<br />


Brigitte Ryder, Nedbank’s Provincial<br />

General Manager for <strong>Gauteng</strong> North,<br />

says that Nedbank believes that<br />

clients need a flexible, resilient financial<br />

partner who understands their<br />

circumstances and aspirations, and provides<br />

relevant solutions and a banking experience<br />

that is hassle-free.<br />

Ryder says that, as South Africa progresses<br />

through the various stages of Covid-19,<br />

Nedbank is working through recovery<br />

scenarios with its clients and prospective<br />

clients while staying true to its brand promise,<br />

which is to use its financial expertise to do<br />

good for individuals, families, businesses and<br />

communities in which it operates.<br />

‘Through the Covid-19 pandemic, we have<br />

elevated our client engagement and<br />

extended tailor-made relief assistance to<br />

many of our clients, equipping and enabling<br />

them to benefit from the various digital and<br />

remote solutions available. This ensures<br />

uninterrupted transactional and<br />

informational access while not<br />

compromising on security,’ says Ryder.<br />

Ryder says that <strong>Gauteng</strong> North <strong>Business</strong><br />

Banking has, over the years, established<br />

‘<br />

Through the Covid-19<br />

pandemic, we have elevated<br />

our client engagement and<br />

extended tailor-made relief<br />

assistance to many of our<br />

clients …<br />

’<br />

itself as a leader in providing banking<br />

solutions to various sectors. ‘These include<br />

the professional services industry, which<br />

values our bespoke funding, investment and<br />

transactional solutions, large manufacturing<br />

concerns covering various sub-sectors, and<br />

the information technology industry. As a<br />

result, we have been shielded from specific<br />

industry slowdowns, while adding to the<br />

financial and business acumen and ‘street<br />

cred’ of our frontline sales and service staff.’<br />

To find out more about how Nedbank can<br />

partner with your business togrowa<br />

greater South Africa, please email<br />

Brigitte Ryder at brigitter@nedbank.co.za<br />

or visit www.nedbank.co.za/business.


see money differently<br />




Nedbank’s Provincial General Manager for <strong>Gauteng</strong> West,<br />

Mawande Shugu, explains how Nedbank is committed to<br />

partnering with businesses and the youth for growth.<br />

‘<br />

Small businesses are the mainstay of<br />

the economy. Nedbank has, over the<br />

years, instituted various interventions<br />

aimed at giving support to the smallbusiness<br />

sector. Over and above our Small<br />

<strong>Business</strong> Services solutions, we provide<br />

small-business owners with support that<br />

goes beyond banking – freeing up their time<br />

to truly focus on running their businesses,’<br />

he says.<br />

Nedbank has built a solid reputation as a<br />

bank for small businesses through initiatives<br />

such as its free-to-join networking portal,<br />

SimplyBiz.co.za, The Essential Guide for<br />

Small-business Owners, business<br />

registration services and free smallbusiness<br />

seminars – all geared to support<br />

small- and medium-sized enterprises.<br />

Shugu is passionate about supporting<br />

South Africa’s youth. ‘I believe it is important<br />

for the business community to invest in our<br />

youth as they are our future. Investing in this<br />

market is crucial for the sustainability of any<br />

business and requires an extensive investment<br />

in agile technological development. At<br />

Nedbank we pride ourselves in developing<br />

products that provide lifestyle benefits and<br />

offerings that enable the financial<br />

‘<br />

I believe it is important for<br />

the business community to<br />

invest in our youth as they<br />

are our future …<br />

’<br />

aspirations of our youth market. For<br />

example, our Unlock.Me Account offers a<br />

zero monthly maintenance fee, with<br />

additional lifestyle benefits perfect for<br />

clients between the ages of 16 and 26,’<br />

he says.<br />

Shugu says that, through an evolving and<br />

agile digital strategy supported by the<br />

Nedbank Money app and the Nedbank<br />

Contact Centre, Nedbank remains<br />

committed to bringing convenience to its<br />

clients by making essential banking services<br />

available 24 hours, seven days a week.<br />

If you wish to tap into our expertise to reach<br />

your personal and business goals, please<br />

email Mawande Shugu at<br />

mawandes@nedbank.co.za or visit<br />



see money differently<br />




Mohammed Salim Kadoo, Nedbank’s Provincial General Manager for<br />

Tshwane and North West, says that a deep commitment to partnership<br />

is what underlies the team's personal and professional values.<br />

‘<br />

Our bigger-picture banking approach<br />

enables us not only to provide you …<br />

with the banking solutions you need,<br />

but also to give you a holistic view of how<br />

our products are connected to create a<br />

framework that yields maximum impact<br />

across every facet of your business and<br />

beyond. We know that success in business is<br />

about partnerships, so we put the building<br />

of deep, lasting, value-adding relationships<br />

at the centre of everything we do. This<br />

means your goals are our goals, your vision<br />

is our vision, and your success is our success<br />

– while you rely on our additional support<br />

that is most needed in times of change and<br />

uncertainty,’ he says.<br />

The bank caters for all industries, but the<br />

Tshwane team has many clients in the<br />

franchising and agricultural sectors. 'The<br />

banking products and services tailored<br />

specifically for these sectors and designed<br />

to achieve overall business efficiency,<br />

profitability and sustainability make Nedbank<br />

one of the most franchise-friendly banks in<br />

South Africa and one of the market-leading<br />

banks in the agricultural space,' says Kadoo.<br />

Nedbank’s highly competitive pricing is<br />

structured to the needs and individual risk<br />

‘<br />

business efficiency, profitability<br />

and sustainability make Nedbank<br />

one of the most franchise-friendly<br />

banks in South Africa …<br />

’<br />

profile and track record of each franchise<br />

business. Products include point-of-sale<br />

(POS) devices and Nedbank’s POSPlus<br />

management system, e-commerce solutions<br />

and cash acceptance devices, as well as a<br />

broad spectrum of tailored financing options.<br />

Nedbank understands that if the various<br />

challenges faced by the agricultural sector<br />

are not addressed, it will threaten economic<br />

growth, food security, employment and<br />

investment. To this end Nedbank has<br />

developed innovative funding solutions<br />

designed to support farmers with sustainable<br />

farming interventions, ranging from water<br />

efficiency mechanisms and cutting-edge<br />

irrigation to renewable-energy financing.<br />

If you are interested in taking your<br />

business to the next level, please email<br />

Mohammed Salim Kadoo at<br />

mohammedk@nedbank.co.za or visit<br />

www.nedbank.co.za/business.<br />

Nedbank Ltd Reg No 1951/000009/06. Authorised financial<br />

services and registered credit provider (NCRCP16).<br />



Overviews of the main economic sectors of <strong>Gauteng</strong><br />

Agriculture 26<br />

Mining 27<br />

Energy 28<br />

Oil and gas 29<br />

Transport and logistics 34<br />

Manufacturing 36<br />

Tourism 38<br />

Information and communications<br />

technology 40<br />

Banking and<br />

financial services 41<br />

Development finance<br />

and SMME support 44<br />

Education and training 46<br />

CREDIT: Boogertman and Partners


Agriculture<br />

A major starch business is changing hands.<br />


An alternative market<br />

opened in double-quick<br />

time in Midrand.<br />

Tongaat Hulett, best known as a sugar producer, is selling<br />

its starch business (with three milling plants in southern<br />

<strong>Gauteng</strong>) to the KLL Group, a wholly-owned subsidiary of<br />

Barloworld Logistics Africa. The Meyerton plant is pictured.<br />

The R5.3-billion transaction was in doubt because of concerns<br />

about the value of the business expressed by the buyer in the<br />

context of Covid-19 but the Competition Tribunal in July <strong>2020</strong><br />

approved the deal.<br />

The temporary closure of the Tshwane Market due to the pandemic<br />

brought a quick reaction from RSA Group and Freshling. Within 48 hours<br />

a new facility in Midrand was up and running and on the first day, more<br />

than 340 pallets of fresh produce were available for sale.<br />

The Fresh Produce Market in Johannesburg is South Africa’s<br />

biggest market. The region’s other metropolitan areas, Tshwane<br />

and Ekurhuleni, also have busy markets. The Springs Fresh Produce<br />

Market accounts for 3% of South African market share.<br />

<strong>Gauteng</strong>’s agricultural sector is concentrated on producing<br />

vegetables. There is commercial farming in the southern sector of<br />

the province (part of South Africa’s maize triangle) and the farming<br />

of cotton, groundnuts and sorghum is undertaken in areas near<br />

Bronkhorstspruit (east) and Heidelberg (in the south).<br />

The province is home to some of South Africa’s biggest<br />

agricultural companies, including AFGRI. Africa’s largest feedlot for<br />

cattle is located in Heidelberg: Karan Beef’s facility can accommodate<br />

120 000 cattle. The feedmill processes 1 400 tons per day and the<br />

associated abattoir in Balfour in neighbouring Mpumalanga<br />

sometimes deals with 1 800 head of cattle per day.<br />

The Kanhym Agrimill in Vereeniging is one of three in the<br />


Agricultural Research Council: www.arc.agric.za<br />

AgriSA: www.agrisa.co.za<br />

Red Meat Producers’ Organisation: www.rpo.co.za<br />

South African Poultry Association: www.sapoultry.co.za<br />

company’s portfolio, which<br />

collectively processes 250 000<br />

tons of animal feed annually.<br />

Kanhym Estates is the largest<br />

producer of pigs in the country.<br />

There are many poultry farm<br />

and production facilities in<br />

<strong>Gauteng</strong>. Companies include<br />

Astral Foods, RCL Foods and<br />

Daybreak Farms.<br />

A R400-million agro-processing<br />

plant was launched in 2019 in the<br />

<strong>Gauteng</strong> Industrial Development<br />

Zone (GIDZ). The GIDZ is located at<br />

OR Tambo International Airport and<br />

is intended to encourage exports of<br />

high-value goods.<br />

The Provincial Government<br />

of <strong>Gauteng</strong> has set up Action<br />

Labs to focus on agriculture<br />

and agro-processing with a<br />

focus on land tenure issues and<br />

improving food security. If food<br />

producers can be linked to the<br />

value chain then township<br />

economies can benefit.<br />

In almost every aspect of the<br />

spatial planning being carried<br />

out by the <strong>Gauteng</strong> Provincial<br />

Government, agriculture<br />

and agro-processing are key<br />

components, either of Special<br />

Economic Zones (SEZ), industrial<br />

parks or agri-parks. Plans for the<br />

Western Corridor, for example,<br />

include an agro-processing park<br />

and logistics hub. ■<br />

GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong><br />



Mining<br />

AngloGold Ashanti has sold its last South African asset.<br />

The sale in <strong>2020</strong> by AngloGold Ashanti of its Mponeng mine and<br />

Mine Waste Solutions to Harmony Gold for $300-million (about<br />

R4.4-billion) marks the end of an era.<br />

Although the company’s headquarters will continue to be<br />

in Johannesburg and it will be listed on the JSE, its mines are in Ghana,<br />

the Americas and Australia. AngloGold Ashanti was the<br />

successor to the mining company formed by Ernest<br />

Oppenheimer in 1917.<br />

Harmony Gold’s acquisition strategy, including the<br />

purchase from AngloGold of Moab Khotsong mine in 2017,<br />

will result in it being the country’s biggest gold producer.<br />

With 350 000 new ounces coming from Mponeng, it could<br />

produce an annual total of 1.7-million ounces.<br />

Cullinan diamond mine produced 30% more in the<br />

first half of 2019 than it did the year before. Run-of-mine<br />

production increased to 785 444ct. The company is<br />

engaged in an expansion programme called the C-Cut<br />

Phase 1 project. Cullinan is famous for its rare blue diamonds.<br />

The University of the Witwatersrand started life as the South African<br />

School of Mines. The School of Mining Engineering at Wits is now one<br />

of many at the university, but it is the highest ranked in terms of the QS<br />

World University Rankings.<br />

<strong>Gauteng</strong> is home to most of the research and training bodies<br />

associated with mining. Sibanye-Stillwater is one of many companies<br />

supporting research in the province: the Wits Mining Institute’s Digital<br />

Mining Laboratory (Digimine) is the focus of its funding. AECI, the<br />

explosives and chemicals company, sponsors the Virtual Reality Mine<br />

Design Centre at the University of Pretoria.<br />

The Mandela Mining Precinct is a joint venture between three<br />

government departments and the Minerals Council South Africa<br />

which aims to develop research into mining, showcase the country’s<br />

manufacturing abilities and to continue to create jobs and wealth as ore<br />

bodies are depleted.<br />

Mintek is an autonomous body based in Randburg which receives<br />

about 30% of its budget from the Department of Mineral Resources.<br />

The balance comes from joint ventures with private-sector partners,<br />


Council for Geoscience: www.geoscience.org.za<br />

Minerals Council South Africa: www.mineralscouncil.org.za<br />

Mintek: www.mintek.co.za<br />

National Department of Mineral Resources: www.dmr.gov.za<br />


Harmony Gold’s purchase<br />

of Mponeng mine boosts<br />

its overall volumes.<br />

or is earned in research and<br />

development income, the sale<br />

of services or products and from<br />

technology licensing agreements.<br />

Pretoria University has<br />

a Department of Mining<br />

Engineering, the University of<br />

South Africa offers three national<br />

diplomas in mine-related fields,<br />

the University of Johannesburg<br />

has mine-surveying courses and<br />

the Vaal and Tshwane universities<br />

of technology have engineering<br />

faculties.<br />

The national government’s<br />

Phakisa programme is to be<br />

applied to mining. Intended<br />

to fast-track solutions to<br />

development problems, an<br />

Operation Mining Phakisa Lab has<br />

been set up to create concrete<br />

plans. Similarly, the Provincial<br />

Government of <strong>Gauteng</strong> has<br />

initiated Action Labs in the<br />

mining sector. ■<br />

27 GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong>


Energy<br />

Companies are generating their own power.<br />


Energy zones could boost<br />

old mining areas.<br />

Credit: Knight Piésold<br />

Areas in the <strong>Gauteng</strong> province that can no longer rely on<br />

the mining industry to drive their economies could become<br />

focus zones for solar PV projects. Renewable Energy<br />

Development Zones (REDZs) have been allocated in other<br />

provinces (two for solar, one for wind) but the potential for REDZs<br />

in <strong>Gauteng</strong> is huge, because vast amounts of energy are needed to<br />

drive the country’s biggest economy.<br />

These zones would be developed in line with the national<br />

Integrated Resources Plan (IRP 2019) which the <strong>Gauteng</strong> Provincial<br />

Government is hoping will enable it to unlock several renewable<br />

energy projects. Other projects include promoting gas usage,<br />

the development of hydrogen fuel-cell technology and the<br />

recommissioning of power stations.<br />

National power regulator, NERSA, has been asked by the National<br />

Minister of Energy to consider granting licences to small-scale power<br />

producers to sell any excess power. The likely granting of these<br />

licences will open up the market and help small manufacturers to<br />

cover the cost of installing generating capacity.<br />

Many companies and institutions are generating their own power. In<br />

Johannesburg, the Northern Wastewater Treatment Works (pictured) has<br />

its own electricity source in a 1.1MW biogas plant. It produces electricity<br />

using cogeneration, which is combined heat and power.<br />

A landfill site at Robinson Deep in Johannesburg has started<br />

generating 3MW of gas. This is the first of five renewable energy projects<br />

that Energy Systems SA has lined up in Johannesburg. At the Cavalier<br />

abattoir in Cullinan, biowaste conversion company ibert provides about<br />


National Energy Regulator of South Africa: www.nersa.org.za<br />

South African Photovoltaic Industry Association: www.sapvia.co.za<br />

South African National Energy Development Institute:<br />

www.sanedi.org.za<br />

a quarter of the power that the<br />

abattoir needs to function.<br />

Absa Bank has followed<br />

up on its decision to take its<br />

central Johannesburg campus<br />

off the national electricity grid.<br />

Investments in a 6 000-panel<br />

rooftop solar system (which cost<br />

R10-million), the synchronisation<br />

of gas and diesel generators<br />

and sophisticated water and<br />

underfloor heating systems<br />

have all contributed to massive<br />

energy savings.<br />

The rooftop solar installation<br />

at Absa’s Pretoria office provides<br />

17% of its electricity needs and<br />

the bank intends rolling out solar<br />

solutions for another five offices<br />

soon in addition to investigating<br />

battery solutions in pursuit of<br />

what it calls “net zero offices”.<br />

One of the biggest roofs<br />

in South Africa is to get one of<br />

the largest solar installations.<br />

Mall of Africa, a joint venture<br />

by Attacq and Atterbury in<br />

Waterfall City, Midrand, will<br />

produce about 7 800 MWh/y<br />

from panels on 45 000 m² of<br />

roof space.<br />

Vukile Property Fund has<br />

decided to equip all of the malls<br />

in its portfolio with rooftop<br />

solar panels. Retrofitting of light<br />

fittings has also taken place, to<br />

improve energy efficiency. ■<br />

GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong><br />



Oil and gas<br />

Various types of gas are available as fuels.<br />


Rebranded Total petrol<br />

stations will sell liquified<br />

natural gas.<br />

Renergen, which owns rights to a field of liquified natural gas<br />

(LNG) in the Free State, has started taking orders for its product<br />

from logistics companies. Bulk Hauliers International Transport<br />

(BHIT) has signed an agreement to take LNG to fuel 50 of its<br />

trucks, which should lead to lower operating and maintenance costs.<br />

South African Breweries is another client.<br />

The first two dedicated filling stations will be Total stations in<br />

Johannesburg and Durban that will be rebranded in green. One station<br />

is planned for Harrismith on the busy N3 highway which links the cities.<br />

Delta Natural Gas (DNG) Energy announced in 2019 the rollout<br />

of 400 natural gas refuelling sites across South Africa with a focus<br />

on the taxi and logistics sectors. The first sites will be Johannesburg<br />

and Tshwane.<br />

The Provincial Government of <strong>Gauteng</strong> has announced that it wants<br />

to take “decisive steps” to increase the availability and use of gas.<br />

NGV Gas, a subsidiary of CNG Holdings, is promoting compressed<br />

natural gas (CNG) as a versatile alternative across all sectors. Another<br />

subsidiary, CNG Technology supplies equipment for filling stations and<br />

distributions, converts petrol and diesel-powered vehicles and advises<br />

companies on conversions.<br />

The major economic sectors using gas are the metals sector and the<br />

chemical, pulp and paper sector. Brick and glass manufacturers are also<br />

big consumers. National policy is driving a switch to the use of gas. A<br />

national Gas Utilisation Master Plan (GUMP) is being developed.<br />

Transnet Pipelines has completed a sophisticated new multiproduct<br />

pipeline (NMPP) between the coast and <strong>Gauteng</strong> which is<br />


National Energy Regulator of South Africa: www.nersa.org.za<br />

South African Oil & Gas Alliance: www.saoga.org.za<br />

South African Petroleum Industry Association: www.sapia.co.za<br />

bringing a range of products to<br />

the manufacturing heartland<br />

of South Africa. The company<br />

operates a 3 800km network<br />

of underground, high-pressure<br />

petroleum and gas pipelines<br />

throughout the eastern parts of<br />

South Africa.<br />

The country’s biggest supplier<br />

of industrial heating fluids, FFS<br />

Refiners, supplies this product<br />

out of a plant at Chloorkop while<br />

the company’s Evander site is<br />

responsible for heavy fuel oils.<br />

Evander also has a tank with<br />

installed capacity of 8 500m³.<br />

Egoli Gas has a pipeline<br />

network that extends over<br />

1 200km in and around<br />

Johannesburg and the company<br />

has 7 500 domestic, industrial<br />

and commercial customers.<br />

Vopak completed a new storage<br />

terminal in Lesedi on the East<br />

Rand in 2017 to receive product<br />

from the NMPP. The company<br />

that owns Egoli Gas, Reatile, has a<br />

30% stake in Vopak and a stake in<br />

CNG Holdings.<br />

The regulator and promoter<br />

of oil and gas exploration in South<br />

Africa, Petroleum Agency South<br />

Africa, has awarded coalbedmethane-gas<br />

and natural<br />

gas rights in the provinces on<br />

<strong>Gauteng</strong>’s border, Free State and<br />

KwaZulu-Natal. ■<br />

29 GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong>

a key<br />

As stated in the National Development Plan (NDP), the government’s intention<br />

is to “enable exploratory drilling to identify economically recoverable<br />

coal seam and shale gas reserves, while environmental investigations will<br />

continue to ascertain whether sustainable exploitation of these resources<br />

is possible: “If gas reserves are proven and environmental concerns<br />

player<br />

alleviated, then development of these resources and gas-to power projects<br />

should be fast-tracked.” The plan also calls for the need to incorporate a<br />

greater share of gas in South Africa’s energy mix, through importing liquefied<br />

natural gas (LNG), using shale gas if reserves prove commercial, and<br />

developing infrastructure<br />

for the import of<br />

n a vital sector<br />

LNG, mainly for power<br />

production, over the<br />

short to medium term.<br />

South Africa’s oil and<br />

gas exploration and<br />

production sector offers<br />

an excellent investment<br />

Petroleum Agency SA plays an important role in developing South Africa’s gas<br />

market by attracting qualified and competent companies to explore for gas in<br />

the country, as well as monitoring and regulating their activities. In addition<br />

to ensuring operators always comply with the law, a major area of focus is<br />

increasing the inclusion of historically disadvantaged South African-owned<br />

entities in the upstream industry. South Africa needs large discoveries of indigenous<br />

gas as well as fair access to opportunities and social licence to develop<br />

a healthy gas market.<br />

Currently, natural gas supplies about just 3% of South Africa’s primary energy.<br />

A significant challenge facing the development of a major gas market in South<br />

Africa is the extreme dominance of coal as<br />

a primary energy source, and industry’s historic<br />

reliance on coal-generated electricity.<br />

A lack of extensive gas transport and reticulation<br />

infrastructure goes hand in hand<br />

with this, while other challenges include<br />

uncertainty about volumes of indigenous<br />

gas available to industry; security of supply;<br />

switching and conversion costs; gas pricing;<br />

and negativity around the ongoing use of<br />

fossil fuels. End users require certainty before<br />

committing, while explorers look for a<br />

guaranteed market. On a more positive note,<br />

opportunities for gas lie in the realisation<br />

of South Africa’s NDP and the Integrated

Resource Plan (IRP). Both call for indigenous hydrocarbons – conventional<br />

and unconventional – and independent power production to play an<br />

increasing role in the nation’s energy mix.<br />

The national power utility also intends to replace coal-fired power stations<br />

with gas-fired counterparts, in line with the vision of the NDP. The advent<br />

of gas-fired power stations will represent a ready, indigenous market for<br />

operators that make discoveries of gas in South Africa, ensuring it will be far<br />

easier to monetise smaller discoveries that may otherwise have remained<br />

undeveloped. As custodian, Petroleum Agency SA ensures that companies<br />

applying for gas rights are vetted to make sure they are financially qualified<br />

and technically capable. Applicants also need to have a good track<br />

record in terms of oil and gas exploration activity, as well as regard for<br />

the environment. This applies to both local and foreign companies. Oil and<br />

gas exploration requires enormous capital outlay and can represent a risk<br />

to workers, communities and the environment. Applicants are therefore<br />

required to prove their capabilities and safety record and<br />

must carry insurance for environmental rehabilitation.<br />


In addition, all planned activities can only be carried out<br />

after completion of an environmental impact assessment<br />

and under an approved environmental management<br />

plan, after consultation with the public as well<br />

as interested and affected parties. Explorers are also<br />

required to contribute to skills development through the<br />

agency’s Upstream Training Trust. Oil and gas exploration<br />

in South Africa is regulated in terms of the Mineral<br />

and Petroleum Resources Development Act (MPRDA) of<br />

2002, which stipulates that applicants for production<br />

rights are required to submit social and labour plans<br />

(SLPs) to assist in transforming the industry, promoting<br />

employment and advancing social and economic welfare in South Africa.<br />

Applicants must develop and implement, where applicable, comprehensive<br />

SLPs that cover human resources-development programmes, community<br />

development, housing and living conditions, and employment equity. In<br />

addition to the MPRDA, other acts also regulate the sector – including<br />

the National Environmental Management Act, the Royalties Act, the<br />

Mining Titles Registration Act and the National Water Act. These acts and<br />

regulations have served the upstream industry well and are all in line with<br />

international standards.<br />

Minister of Mineral Resources Gwede Mantashe and President Cyril<br />

Ramaphosa have recently stated that oil and gas exploration and production<br />

activities should have their own standalone legislation, separate from<br />

that applicable to hard mineral mining. This legislation is being drafted and<br />

the Agency is part of the team at the Department of Mineral Resources<br />

working on it. In today’s world, oil and gas remain the most critical of energy<br />

resources, and Petroleum Agency SA is in full support of those entering<br />

the South African oil and gas exploration and production industries. The<br />

Agency is fully committed to ensuring that our government and policy-makers<br />

sustain the sector for the benefit of all involved and will do everything<br />

in its power to advance the industry.<br />


A diverse upstream industry con-<br />

tributing to energy security through<br />

sustainable growth in exploration<br />

and development of oil and gas.<br />


To promote, facilitate and regulate<br />

exploration and sustainable devel-<br />

opment of oil and gas contributing<br />

to energy security in South Africa.<br />


Petroleum Agency SA was established in<br />

1999 by Ministerial directive and is<br />

mandated through the Mineral and<br />

Petroleum Resources Development Act,<br />

2002 (Act No.28 of 2002) together with<br />

the National Environmental Management<br />

Act, 1998 (Act No.107 of 1998).<br />

These Acts provide for Petroleum Agency<br />

SA to evaluate and promote oil and gas<br />

potential exploration and production<br />

activities in South Africa, to regulate oil<br />

and gas exploration and the production<br />

industry and to archive all geotechnical<br />

data produced through oil and gas<br />

exploration. The Agency acts as an<br />

advisor to the government on issues<br />

regarding oil and gas exploration and<br />

production and carries out special<br />

projects at the request of the Minister.


Transport and logistics<br />

Achieving ambitious export goals will boost the logistics sector.<br />


An African free trade<br />

agreement is certain to<br />

increase transport volumes.<br />

Plans to expand exports in a variety of sectors will rest heavily<br />

on the transport and logistics sector being up to the task of<br />

handling increased volumes.<br />

A total of 82% of South Africa’s air cargo is transported<br />

through OR Tambo International Airport and <strong>Gauteng</strong> has several<br />

cargo and freight handling facilities well-equipped to deal with rail<br />

and road deliveries and despatches.<br />

A specific goal of the Provincial Government of <strong>Gauteng</strong> is to<br />

make the Transnet Tambo-Springs Logistics Gateway the biggest<br />

inland logistics hub and dry port in Africa by 2030.<br />

The Tambo-Springs Gateway near Katlehong is an inter-modal<br />

facility which can transfer containers from rail or road to storage<br />

facilities and ultimately to the customer. Existing freight rail lines run<br />

through the site and link it to the seaports of Durban, Cape Town and<br />

Ngqura (Port Elizabeth). The aim with this new facility is to improve<br />

efficiency. It is run by the Tambo Springs Development Company.<br />

The intention is to add to the port:<br />

• a logistics park (transportation, processing, manufacture,<br />

warehousing and distribution).<br />

• a business park with a retail element.<br />

• a residential component.<br />

• an agro-industrial section.<br />

At an Innovation in Transport Seminar held in 2019, the provincial<br />

government stressed the importance of digital competence (“smart<br />

mobility”) in the transport sector as ever-more complex transactions<br />

take place across international borders. This will only grow as the<br />

effect of the African Continental Trade Agreement (AfCTA), signed<br />

in 2019, comes into effect, allowing for greater and freer trade across<br />

the continent.<br />

The health of the transport<br />

and logistics networks of the<br />

province is key to any economic<br />

growth plans. The provincial<br />

government has identified<br />

logistics hubs, the road network,<br />

intermodal facilities, rolling<br />

stock, and buses and taxis as<br />

key components of the drive<br />

to transform, modernise and<br />

reindustrialise the regional<br />

economy.<br />

Road infrastructure projects<br />

are intended to bring in other<br />

major investments and connect<br />

new economic nodes such as<br />

the Tambo Springs Logistics<br />

Gateway, the planned new<br />

megacities (Vaal River City<br />

and Lanseria), the new Special<br />

Economic Zones with current<br />

economic nodes and existing<br />

townships. In the short term, 18<br />

major roads will be rehabilitated,<br />

upgraded and constructed,<br />

especially in Sedibeng and the<br />

West Rand.<br />

The concept of a <strong>Gauteng</strong><br />

City Region is key to much<br />

of the planning for the area’s<br />

economic future. Infrastructure<br />

development is underway<br />

along corridors, each of which<br />

has a specific focus and it is<br />

instructive that each of them<br />

has a transport and/or logistics<br />

element.<br />

GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong><br />



The corridors and focus areas are:<br />

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

Industrial Park.<br />

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

development and logistics.<br />

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

port, Prasa rolling stock manufacturing facility run by Gibela Rail<br />

Consortium.<br />

The OR Tambo International Airport Special Economic Zone (ORTIA<br />

SEZ) has diversified beyond the existing Jewellery Manufacturing<br />

Precinct in the shape of a R400-million agro-processing plant.<br />

The concept of an aerotropolis is for the airport to become a<br />

hub of economic activity in the same way that cities anchor various<br />

economic sectors that grow up around the centre.<br />

Airports<br />

OR Tambo International Airport caters for more than 20-million<br />

passengers every year.<br />

Lanseria Airport has grown in importance with kulula, FlySafair<br />

and Mango using the airport located to the north of Johannesburg.<br />

It is a convenient landing point for travellers bound for regional<br />

centres like Rustenburg in the North West.<br />

Four airlines continued to offer flights during the Covid-19<br />

lockdown: FlySafair, Airlink, Cemair and Mango. Three airlines went<br />

into business rescue: SAA, SA Express and Comair (which is a British<br />

Airways franchisee and runs the low-cost kulula brand).<br />

<strong>Gauteng</strong> has several smaller airports that host mostly<br />

commercial aircraft:<br />

• Rand Airport in Germiston.<br />

• Grand Central Airport in Midrand.<br />

• Wonderboom Airport in Pretoria North.<br />

• Waterkloof Air Force base, south of Pretoria.<br />

The Commercial Aviation Manufacturing Association South<br />

Africa (CAMASA) reports that 50 companies are active in the<br />

sector, employing more than 3 000 people in highly skilled<br />

jobs. Almost all the activity is around Johannesburg and Cape<br />


Airports Company South Africa: www.acsa.co.za<br />

Road Freight Association of South Africa: www.rfa.co.za<br />

South African Association of Freight Forwarders: saaff.org.za<br />

South African National Road Agency: www.sanral.co.za<br />

Tambo Springs Logistics Gateway: www.tambosprings.co.za<br />

Town and the sector (which<br />

encompasses aero-structures<br />

and systems, manufacturing,<br />

design and engineering) is<br />

responsible for R3-billion in<br />

exports every year.<br />

Rail<br />

The Gautrain, a high-speed<br />

train linking the centre of<br />

Johannesburg, Sandton, ORTIA<br />

and Pretoria, has been successful<br />

in terms of its original brief.<br />

But the Gautrain is expensive<br />

and not designed to cater for<br />

mass public transportation.<br />

A feasibility study has been<br />

completed on the expansion<br />

of the Gautrain and its full<br />

integration into the public<br />

transport system. New areas<br />

that will be covered according<br />

to the plan include Mamelodi<br />

in Tshwane, Boksburg in<br />

Ekurhuleni, Randburg-Lanseria<br />

in Johannesburg, Mogale City<br />

and Syferfontein in the West<br />

Rand and Roodepoort/Jabulani.<br />

The Gautrain has reactivated<br />

property development in<br />

many areas around its stations<br />

and made sites near stations<br />

attractive to developers and<br />

investors.<br />

Transnet Rail Engineering<br />

(TRE) has a major presence in<br />

<strong>Gauteng</strong> and the metropolitan<br />

lines that ferry commuters<br />

are run by the Passenger<br />

Rail Agency (PRASA). The<br />

Wits Metrorail system serves<br />

Johannesburg and its surrounds.<br />

Park Station, in the north of the<br />

central business district, is the<br />

largest station in Africa and acts<br />

as the metropolitan hub. ■<br />

35 GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong>


Manufacturing<br />

The OR Tambo Aerotropolis is attracting manufacturing.<br />

The Eastern Corridor of <strong>Gauteng</strong>, centred on the metropole<br />

of Ekurhuleni, is consolidating its leading position in<br />

manufacturing by leveraging the advantages of hosting<br />

the OR Tambo International Airport and related Special<br />

Economic Zones and industrial parks.<br />

Ekurhuleni Metropolitan Municipality has the greatest<br />

concentration of manufacturing enterprises, especially between<br />

Wadeville and Alrode, south-west of Alberton. Germiston is the<br />

country’s biggest rail junction and Transnet Engineering has invested<br />

hundreds of millions of rands in new equipment at its facility there.<br />

The Provincial Government of <strong>Gauteng</strong> has tabled plans to<br />

bolster manufacturing capacity in the province’s western areas. The<br />

priorities are mining and mineral beneficiation, capital equipment<br />

and machinery, agriculture and agro-processing, tourism, retail<br />

and economic development in townships. The industrial parks at<br />

Babelegi, GaRankuwa and Ekandustria are to be renovated.<br />

Manufacturing contributes 14% to <strong>Gauteng</strong>’s real economy<br />

output and provides 40% of South Africa’s manufacturing overall.<br />

Manufacturing related to the mining industry, historically the<br />

lynchpin of the <strong>Gauteng</strong> economy, is still important.<br />

Employer organisations like the Manufacturing Circle and<br />

government at national and provincial levels are engaging in<br />

initiatives to grow the sector, including incentives such as the<br />

Manufacturing and Competitiveness Enhancement Programme<br />

(MCEP) of the Department of Trade, Industry and Competition (dtic).<br />

Sectors that have received support include plastics,<br />

pharmaceuticals, chemicals, metal fabrication, transport equipment<br />

and agri-processing. The Support Programme for Industrial<br />

Innovation (SPII), run by the Industrial Development Corporation<br />

(IDC) on behalf of the dtic, promotes technology development.<br />

Another IDC initiative has allocated R23-billion over three<br />

years to support the Black Industrialist Programme to help existing<br />

entrepreneurs grow their businesses.<br />

Venter Consulting Engineers, manufacturer of precision<br />

engineering equipment, recently attracted the attention of Italian<br />

company Danieli and won a contract to create two sophisticated<br />

globoid gear sets. Also called the hour-glass gear, this technology<br />

allows for an increased number of teeth that are simultaneously in<br />

mesh and improves the conditions of force transmission. A handful of<br />

firms globally are in a position to make these gears, which can stand<br />

massive amounts of stress.<br />


A precision engineering firm<br />

is gearing up for international<br />

contracts.<br />

Packaging company Nampak,<br />

which in 2019 celebrated its 50th<br />

year as a listed company on the<br />

JSE, has metals, plastic, paper<br />

and glass operations at various<br />

locations. It is the market leader<br />

in beverage cans. The country’s<br />

biggest glass producer, Consol<br />

Glass, has facilities in Clayville,<br />

Wadeville and Nigel.<br />

Household products<br />

manufacturer Unilever<br />

represents an example of the<br />

lighter industrial capacity of the<br />

East Rand. Kellogg’s, Kimberly-<br />

Clark South Africa and Procter<br />

& Gamble all have significant<br />

manufacturing capacity in<br />

the area. Corrugated paper<br />

manufacturer Corruseal has<br />

purchased the Enstra Mill in<br />

Springs from Sappi, giving it<br />

greater control of production.<br />

The southern portion of<br />

<strong>Gauteng</strong> around Vanderbijlpark<br />

and Vereeniging is synonymous<br />

with steel production. Flat iron<br />

is made at the large plants<br />

of ArcelorMittal. Scaw Metals<br />

has a chain-making factory in<br />

Vereeniging.<br />

There are 35 aluminium<br />

processing firms in <strong>Gauteng</strong>,<br />

involved in both secondary<br />

processing to produce foils,<br />

GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong><br />



cans, bars, rods and sheets, with final<br />

fabrication in the form of die-casting<br />

and sheet metal work. Within <strong>Gauteng</strong>,<br />

the automotive and packaging<br />

industries are the chief consumers of<br />

these products.<br />

AECI is a large manufacturing<br />

company with its roots in the mining<br />

industry. It comprises two principal<br />

divisions: AEL Mining Services (with<br />

a large factory site at Modderfontein<br />

south of Johannesburg) and Chemical<br />

Services, which presides over 20<br />

separate companies (including Senmin,<br />

the group’s mining chemicals company).<br />

More than half of the companies<br />

operating in the food and beverage<br />

sector in South Africa are in <strong>Gauteng</strong>,<br />

including Nestlé, Tiger Brands, Pioneer<br />

Foods, RCL, AVI and Astral. There are<br />

approximately 4 000 food-processing<br />

companies in the province, employing<br />

more than 100 000 people.<br />

Although there are more than 200 pharmaceutical firms in<br />

the country, large companies dominate the field, with Aspen<br />

Pharmacare (34%) and Adcock Ingram (25%) the two key players,<br />

followed by Sanofi, Pharmaplan and Cipla Medpro. Among the<br />

other big international brands active in <strong>Gauteng</strong> are Merck, which<br />

has a 55 000m² plant at Modderfontein, and Pfizer SA, which runs a<br />

laboratory in Sandton amongst its facilities in South Africa.<br />

All of <strong>Gauteng</strong>’s large automobile manufacturers are investing<br />

in new model production. Nissan is spending R3-billion on<br />

production of the Navara pick-up vehicle. Other major investments<br />

include R3-billion by Ford at Silverton, R6.1-billion by BMW at<br />

Rosslyn, R260-million by BMW on an expanded campus at Midrand.<br />

UD Trucks, a part of the Volvo group, will assemble the Croner<br />

heavy commercial vehicle at Rosslyn.<br />

<strong>Gauteng</strong> is also home to a strong automotive components<br />

industry, together with several bus and truck assembly plants.<br />


Centre for Advanced Manufacturing: www.cfam.co.za<br />

Chemical and Allied Industries’ Association: www.caia.co.za<br />

<strong>Gauteng</strong> Department of Economic Development:<br />

www.ecodev.gpg.gov.za<br />

Manufacturing Circle: www.manufacturingcircle.co.za<br />

CREDIT: Venter Consulting Engineers<br />

These include Scania, TFM<br />

Industries and MAN Truck and<br />

Bus South Africa, as well as the<br />

Chinese truck manufacturer<br />

FAW, which owns an assembly<br />

plant in Isando. Beijing<br />

Automotive Works (BAW)<br />

assembles taxis at Springs.<br />

Armoured cars are also<br />

produced. The Paramount<br />

Group has signed a contract<br />

to supply the United Arab<br />

Emirates with its latest<br />

armoured personnel carrier, the<br />

Mbombe 4. Paramount South<br />

Africa has been created to work<br />

in the local market.<br />

DCD Protected Mobility<br />

manufactures armoured cars in<br />

Boksburg, which are branded<br />

as Vehicle Mounted Mine<br />

Detectors. In nearby Benoni,<br />

BAE Systems OMC designs<br />

and manufactures protected<br />

vehicles. ■<br />

37 GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong>


Tourism<br />

Tourism operators are determined to rise again.<br />

Credit: Marriott International<br />

When the Marriott International hotel group closed three<br />

of its South African hotels during the Covid-19 lockdown,<br />

Tsogo Sun Hotels, which owns a controlling stake in all<br />

three hotels, stepped up its commitment by agreeing to<br />

bring them into its portfolio, keep them open and run them.<br />

One of these hotels is the The Mount Grace in the Magaliesberg<br />

which was developed by the Brand family and was the sister hotel to<br />

The Grace in Rosebank. Tsogo bought and restored The Grace in 2015<br />

and it currently operates as 54 on Bath. The Tsogo group believes that<br />

demand for conferencing, weddings and shorter family getaways<br />

will grow and that The Mount Grace, with its close proximity to<br />

Johannesburg, is in a good position to respond to those markets.<br />

Tsogo Sun Holdings split its casino and hotel operations in 2019<br />

in order to unlock value in the two sectors. With a market cap of<br />

R25-billion, Tsogo is the country’s biggest hotel group. It has 36<br />

hotels and three casinos in <strong>Gauteng</strong>. The hotel brands cover four<br />

market segments, and they include a handful of stand-alone hotels<br />

such as the Palazzo (at Montecasino) and the boutique hotel in<br />

Rosebank. SunSquare, Southern Sun Hotels, Southern Sun Resorts,<br />

Garden Court and StayEasy are among the group’s brands.<br />


Tsogo Sun Hotel took over The<br />

Mount Grace during lockdown.<br />

The move by Marriott<br />

International into the South<br />

African market was seen as<br />

significant, and it retains most<br />

of its properties. In partnership<br />

with the Amdec Group, Marriott<br />

spent about R1-billion on the<br />

Marriott Hotel Melrose Arch and<br />

Marriott Executive Apartments<br />

Johannesburg Melrose Arch.<br />

Buying into Protea Hotels<br />

has also given Marriott access to<br />

other African countries.<br />

Although all projections<br />

about the tourism sector and<br />

GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong><br />



its potential for growth and for job creation were short-circuited by<br />

the Covid-19 pandemic, the fact remains that the sector can grow<br />

quickly and it is a good job creator.<br />

Growing <strong>Gauteng</strong> Together (GGT2030) is a plan of action<br />

formulated by the <strong>Gauteng</strong> Provincial Government which intends to<br />

transform, modernise and industrialise the provincial economy. The<br />

expansion of the tourism sector is seen as one of the key methods of<br />

achieving those goals. This was emphasised when the <strong>2020</strong> State of<br />

the Province Address included Tourism and Hospitality as one of 10<br />

“high-growth” sectors.<br />

In June <strong>2020</strong>, as part of preparation for the reopening of the<br />

sector, the <strong>Gauteng</strong> Tourism Authority (GTA) launched its first<br />

webinar in a four-part series of targeted engagements. It was agreed<br />

that local tourism would have to take up the slack that occurred with<br />

the collapse of international arrivals and that safety protocols were<br />

vital to restoring confidence.<br />

Virtual tours have been taken up by heritage operators such as<br />

Constitution Hill and Liliesleaf Farm and this option is likely to grow<br />

as people in other countries seek out a South African experience free<br />

from any worries.<br />

Founder and CEO of the heritage site honouring the South<br />

African liberation movement, Nicholas Wolpe, said, “There are<br />

now over 1 400 hours of archive material that we will be taking<br />

online and through virtual tours and information banks that can be<br />

accessed off-site.”<br />

The CEO of Emerald Resorts, Mark Hands, commented, “We are<br />

repackaging our strategy for visitors to include more digital offerings<br />

as we will have to limit physical numbers as social distancing may<br />

well be with us into 2022 to manage infections brought about by<br />

large groups of people.”<br />

A strong theme at the webinar was solidarity. “We have to adapt<br />

to the new normal even as it is unknown at the moment,” said Fezile<br />

Ngqobe, acting CEO for GTA. “What we do know is that as a sector, we<br />

are all in this together.”<br />

The Legacy Group was one of the first to introduce apartments<br />

to the hotel development mix in South Africa when it added the<br />

Davinci Hotel on Nelson Mandela Square to its portfolio just before<br />

South Africa hosted the soccer World Cup in 2010. The effects of the<br />

Covid-19 pandemic may lead to this trend growing within other<br />

hotel groups.<br />

The Legacy collection includes the Michelangelo Hotel and<br />

Michelangelo Towers. The Davinci was designed with 166 hotel<br />


Cradle of Humankind: www.maropeng.co.za<br />

<strong>Gauteng</strong> Tourism Authority: www.gauteng.net<br />

Johannesburg Tourism Company: www.joburgtourism.com<br />

rooms, 54 apartments in the<br />

upper reaches, with a further<br />

four luxurious penthouses<br />

above that.<br />

Culture and history<br />

Heritage tourism is a strong<br />

component of the tourism<br />

offering in <strong>Gauteng</strong>. The<br />

Cradle of Humankind is a<br />

UNESCO World Heritage<br />

Site and attracts thousands<br />

of visitors every year to the<br />

interactive visitor’s centre at<br />

Maropeng. The Sterkfontein<br />

Caves have extraordinary<br />

displays, showing the origins<br />

of humanity through artefacts<br />

such as the 2.1-million-yearold<br />

skull known as Mrs Ples.<br />

The Origins Centre at the<br />

University of the Witwatersrand<br />

provides insights into the<br />

origins of mankind through art<br />

and science. The Centre hosts<br />

superb representations of Khoi<br />

and San rock art.<br />

History relating to the<br />

struggle against apartheid<br />

centres on attractions such<br />

as the moving exhibitions<br />

housed at the Apartheid<br />

Museum and the history of<br />

the battle for human rights<br />

and democracy embodied in<br />

Constitution Hill.<br />

Kliptown in Soweto is<br />

the site of the signing of the<br />

Freedom Charter. Another<br />

site where South Africa’s<br />

history is on display is at<br />

Freedom Park, a sprawling<br />

complex of museums, open<br />

spaces and memorials on a<br />

hillside overlooking Pretoria in<br />

Tshwane. ■<br />

39 GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong>


Information and<br />

communications technology<br />

Financial services is leading the way in ICT investment.<br />

The biggest investors in new technology are banks and other<br />

players in the financial sector, where technology is rapidly<br />

lowering the barriers to entry for new businesses. This trend<br />

is illustrated by the rapid development of new exchanges<br />

which are based on sophisticated ICT hardware and software.<br />

One of the provincial government’s stated goals is to get several<br />

ICT initiatives to work together. If the work of the Innovation Hub,<br />

several Ekasi laboratories, the Tshimologong precinct, universities and<br />

research institutes could be integrated, a more powerful ecosystem<br />

would be the result.<br />

A High-Tech<br />

Special Economic Zone<br />

(SEZ) is another idea that<br />

is being pursued. Making<br />

broadband connectivity<br />

and free Wi-Fi available<br />

Actonville Primary School in Benoni has received<br />

a donation of laptops from data protection and<br />

management company Commvault.<br />

to poor households in<br />

the province is another<br />

task. <strong>Gauteng</strong>’s Premier<br />

will appoint a Digital<br />

Transformation Advisory Panel to assist in driving these initiatives.<br />

Various large spatial plans for the province include an element<br />

whereby these new cities or settlements will be built as “smart cities”.<br />

Johannesburg is now one of two South African cities to host a<br />

Microsoft Azure data centre.<br />

The Industrial Development Corporation (IDC) estimates that<br />

spending on cloud services in South Africa will reach R11.5-billion<br />

by 2022, nearly three times its level in 2017 (Tech Central). This trend<br />

could generate more than 100 000 new jobs.<br />

The Council for Scientific and Industrial Research (CSIR) in Pretoria<br />

hosts a new body aimed at preparing South Africa for the Fourth<br />

Industrial Revolution (4IR), the South African Affiliate Centre of the<br />

World Economic Forum.<br />

With several global companies choosing to station their<br />

South African headquarters in <strong>Gauteng</strong>, the province is well<br />


eKasiLabs: www.theinnovationhub.com<br />

Independent Communications Authority: www.icasa.org.za<br />

Technology Innovation Agency: www.tia.org.za<br />


Smart cities are planned.<br />

connected. More than 1 500<br />

kilometres of network fibre has<br />

been connected throughout<br />

the province, with 1 066 sites<br />

such as schools, health facilities,<br />

libraries and community centres<br />

giving community members<br />

and entrepreneurs the chance<br />

to be connect with the digital<br />

world. A <strong>Gauteng</strong> Growth and<br />

Development Agency (GGDA)<br />

subsidiary, the Innovation Hub,<br />

has a programme called eKasiLabs<br />

which supports entrepreneurs<br />

and young people with good<br />

business ideas.<br />

The “Tshepo 1 Million”<br />

campaign links the provincial<br />

government with the successful<br />

Harambee Youth Employment<br />

Accelerator and more than 40 large<br />

companies. Both Johannesburg<br />

and Tshwane have free Wifi<br />

networks with Tshwane’s covering<br />

780 zones in places such as libraries,<br />

educational institutions and clinics.<br />

The Small Enterprise Development<br />

Agency (Seda) runs<br />

the SoftstartBTI ICT incubator<br />

in Midrand and Tuksnovation, a<br />

high-tech incubator, at Pretoria<br />

University.<br />

Private mobile communications<br />

company Vodacom has<br />

pledged to spend R50-billion<br />

on network infrastructure in rural<br />

areas. ■<br />

GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong><br />


Banking and financial<br />

services<br />

Banks are looking at insurance and funeral policies.<br />


The financial-services industry contributes <strong>21</strong>% to <strong>Gauteng</strong>’s<br />

gross domestic product.<br />

The revitalised African Bank, which was put under<br />

curatorship in 2014 by the Reserve Bank, is making a play<br />

for new customers with an interesting offering that does not rely<br />

so much on digital wizardry as on presenting the customer with<br />

enhanced banking facilities.<br />

African Bank has created an account that allows up to five<br />

additional accounts to be created in the name of the main<br />

account. Fees are only charged for drawing cash or at the time of<br />

a transaction. There are no monthly fees for any of the accounts<br />

which can be either for saving or transactional. Each user has his<br />

or her own card and monies can be moved between accounts,<br />

ideal for families.<br />

Sanlam has entered two partnerships in the insurance market.<br />

African Rainbow Life has launched life cover policies in the low and<br />

middle-income market, in association with Sanlam and African<br />

Rainbow Capital. Sanlam is also in a venture with Capitec. Financial<br />

Mail quoted Capitec CEO Gerrie Fourie in 2019 saying that the bank<br />

was selling 3 000 funeral policies a day.<br />

In 2017 Tyme Digital received a licence to run a bank. By<br />

early 2019, TymeBank was available in 500 Pick n Pay and Boxer<br />

stores and more than 50 000 customers around South Africa<br />

had an account.<br />

Second to market among the country’s new banks was<br />

Discovery Bank, which officially launched in March 2019. Discovery<br />

Bank applies the behavioural model it uses in its health business to<br />

reward good financial behaviour.<br />

The decision by pharmaceutical giant Aspen Pharmacare<br />

to conduct a second listing on one of South Africa’s newest<br />

exchanges, A2X, suggests good timing by the people behind the<br />

latest trend in the country’s financial services sector.<br />


Discovery Bank is using<br />

the behavioural model<br />

pioneered by its health<br />

business.<br />

A2X has attracted nearly<br />

20 companies in a wide range<br />

of sectors in less than two<br />

years, with a primary focus<br />

on secondary listings. Patrice<br />

Motsepe’s African Rainbow<br />

Capital is an investor in A2X.<br />

Of the four new exchanges,<br />

Equity Express Securities<br />

Exchange (EESE) trades in Black<br />

Economic Empowerment<br />

(BEE) while ZARX and 4AX are<br />

targeting companies that are<br />

not listed elsewhere. ZARX has<br />

agricultural holding companies<br />

like TWK and Senwes among<br />

its first clients. The newcomers<br />

all promise to use the latest<br />

technology to make trading<br />

simpler, quicker and cheaper.<br />

The JSE is the world’s 19thbiggest<br />

exchange and nearly 400<br />

companies are listed on the JSE<br />

or AltX, the JSE-owned exchange<br />

for smaller companies. ■<br />


Association for Savings and Investment South Africa: www.asisa.org.za<br />

Chartered Institute of Government Finance, Audit and Risk Officers: www.cigfaro.co.za<br />

Financial Sector Conduct Authority: www.fsca.co.za<br />

41<br />

GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong>

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Development finance and<br />

SMME support<br />

Government pledges to spend R4-billion with SMMEs annually.<br />

Credit: 5M2T.<br />

In a drive to spur economic development in <strong>Gauteng</strong>’s<br />

townships, a Township Economic Development Bill will do away<br />

with restrictive bylaws. At the same time, taxi ranks are going<br />

to be rezoned and developed to allow for the growth of retail<br />

outlets and services such as mechanics and panel-beaters.<br />

Data company 5M2T (Five minutes to town) has started offering<br />

sophisticated information about the township market. From how<br />

many spazas in Soweto have refrigeration units (4 700) to brand<br />

loyalty, 5M2T covers 60 000 spazas, salons, barbers and other<br />

informal trade outlets in an “in-market audit”.<br />

<strong>Gauteng</strong> has 14 registered co-operative banking institutions<br />

serving over 16 000 member-owners, with over R100-million in<br />

savings and R150-million in assets. The township market of about<br />

250 000 township households holds enormous potential for<br />

collective buying.<br />

The <strong>Gauteng</strong> Growth and Development Agency (GGDA) is<br />

linking large companies with small businesses at Special Economic<br />

Zones (SEZs). The aim is to create a pipeline for SMMEs and to<br />

entrench localisation in sectors such as the automotive industry.<br />

The Incubation Centre at Nissan’s assembly plant in Rosslyn<br />

north of Pretoria hosts eight new businesses at a time. They receive<br />

support through subsidised rental and mentorship and training.<br />

The Automotive Industry Development Centre (AIDC), a subsidiary<br />

of the <strong>Gauteng</strong> Growth and Development Agency (GGDA),<br />


A Township Economic<br />

Development Bill aims to<br />

reduce red tape.<br />

manages the centre. The Jobs<br />

Fund contributes to financing<br />

the project.<br />

The City of Johannesburg<br />

runs seven SMME hubs where<br />

office space, WiFi and advice<br />

and training are available for<br />

small business operators.<br />

About half of South Africa’s<br />

formal SMMEs operate in<br />

<strong>Gauteng</strong> and more than half<br />

are in the wholesale and retail<br />

sector and the accommodation<br />

sector. The next most popular<br />

sectors are community, social<br />

and personal services.<br />

The Provincial Government<br />

of <strong>Gauteng</strong> has pledged to<br />

GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong><br />



spend R4-billion per annum on goods and services through 2 000<br />

township businesses. Over the five years to 2025, there will also be<br />

support for 500 co-operatives and for 50 emerging black farmers<br />

and 20 black agro-processors to scale up their businesses.<br />

The National Department of Small <strong>Business</strong> Development<br />

(DSBD) has several programmes to assist SMMEs and co-operatives.<br />

These include:<br />

• The Black <strong>Business</strong> Supplier Development Programme, a costsharing<br />

grant to promote competitiveness<br />

• The Co-operative Incentive Scheme, a 100% grant.<br />

The Small Enterprise Development Agency (Seda) is a subsidiary<br />

of the DSDB and gives non-financial support to entrepreneurs<br />

through training, assistance with filling in forms, marketing and<br />

creating business plans. It helps small businesses draft applications<br />

for loan finance. Several of Seda’s technology incubators<br />

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

The National Gazelles is a national SMME accelerator jointly<br />

funded by Seda and the DSBD.<br />

<strong>Business</strong>es can receive up to R1-million for training, productivity<br />

advice, business skills development and the purchase of equipment<br />

on the Gazelles programme. The Industrial Development<br />

Corporation (IDC) supports SMMEs either by disbursing loans or by<br />

taking minority shares in enterprises and giving advice.<br />

The National Department of Labour has a programme to<br />

support people with disabilities, the Sheltered Employment<br />

Factories initiative.<br />

The Enterprise Investment Programme (EIP) of the National<br />

Department of Trade, Industry and Competition (dtic) is another<br />

support programme. The Shanduka Black Umbrellas incubator helps<br />

entrepreneurs convert their good ideas to sustainable business practice.<br />

Private sector<br />

Agribusiness and agro-processing are among the sectors that are<br />

targeted by the Masisizane Fund for loan financing. The others are<br />

franchising/commercial and supply chain/manufacturing. Training<br />

is offered through a <strong>Business</strong> Accelerator Programme. As a nonprofit<br />

initiative of the Old Mutual Group, the fund focusses on the<br />

cash flow of potential businesses rather than insisting on security<br />

in the form of property.<br />


<strong>Gauteng</strong> Growth and Development Agency: www.ggda.co.za<br />

National Empowerment Fund: www.nefcorp.co.za<br />

Small Enterprise Development Agency: www.seda.co.za<br />

All the major banks have<br />

SMME offerings. Standard<br />

Bank’s Community Investment<br />

Fund (CIF) initiative extends<br />

loans to informal businesses.<br />

The CIF has distributed more<br />

than R7-million to more than<br />

630 businesses through its six<br />

funds in three provinces.<br />

Nedbank has an enterprisedevelopment<br />

product that<br />

supports businesses with a<br />

turnover up to R35-million<br />

with at least 25% black<br />

ownership.<br />

Private companies also<br />

support SMMEs through their<br />

buying chain. Woolworths<br />

is funding TechnoServe to<br />

ensure that small tomato<br />

growers can grow produce<br />

that will meet the demanding<br />

standards of the retailer,<br />

and to help them expand<br />

production. A regular supplier<br />

to Woolworths, Qutom, assists<br />

with the project.<br />

The Shanduka Black<br />

Umbrellas incubator helps<br />

entrepreneurs convert their<br />

good ideas to sustainable<br />

business practice. DRA Minerals<br />

is putting R3.8-million into the<br />

programme over two years.<br />

Anglo American Zimele,<br />

which runs four enterprise<br />

development and investment<br />

funds, helps start and<br />

expand SMMEs. Since the<br />

introduction of enterprise<br />

hubs, the number of projects<br />

has grown very quickly and<br />

Zimele has processed more<br />

than R500-million in loans and<br />

two applications are received<br />

every day. One of Zimele’s<br />

small business hubs operates<br />

out of Vanderbijlpark. ■<br />

45<br />

GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong>


Education and training<br />

Skills training is a public and private priority.<br />

Wits <strong>Business</strong> School<br />

In response to a demand for a more skilled workforce, the Provincial<br />

Government of <strong>Gauteng</strong> has promised by 2025 to establish in every<br />

district at least two schools of specialisation linked to the 10 highgrowth<br />

sectors that have been identified.<br />

Public libraries and community centres will become places<br />

where online courses in artisan and digital skills will be readily<br />

available. The possibilities of two large institutions being harnessed<br />

in the creation of a university-based economic complex are being<br />

explored in Sedibeng where the Vaal University of Technology and a<br />

campus of the North-West University are already major contributors<br />

to the district.<br />

The rapid expansion which characterised the early stages of the<br />

development of the Curro Group has been halted by Covid-19 but the<br />

private education company has still committed itself to expenditure<br />

of R1-billion in <strong>2020</strong>. This money will be spent on expanding existing<br />

infrastructure. Curro will continue to acquire schools and focus on<br />

newer brands such as DigiEd and Curro Private Colleges, which offer<br />

vocational courses.<br />

A focus on water and energy underpins the newly-established<br />

Knowledge Pele Academy in Kramerville, Johannesburg. Independent<br />


Curro Group will spend<br />

R1-billion in <strong>2020</strong>.<br />

power producer Pele Green<br />

Energy aims to develop skills and<br />

entrepreneurship in rural, periurban<br />

and township communities.<br />

The KP Academy has formulated<br />

energy and water SETA-approved<br />

courses and runs artisan training<br />

programmes, learnerships, short<br />

courses and workshops.<br />

Technical and Vocational<br />

Education and Training (TVET)<br />

colleges are concentrating on 13<br />

trade areas, including bricklayers,<br />

millwrights, boilermakers and<br />

riggers. <strong>Gauteng</strong> has eight TVET<br />

colleges.<br />

C<br />

M<br />

Y<br />

CM<br />

MY<br />

CY<br />

CMY<br />

K<br />

GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong><br />



The National Skills Authority (NSA) works<br />

with Sector Education Training Authorities<br />

(SETAs) in carrying out the National Skills<br />

Development Strategy (NSDS). The Human<br />

Resource Development Council of South Africa<br />

(HRDCSA) is an over-arching body working on skills<br />

development and training.<br />

Tertiary<br />

Three of South Africa’s top five business schools are<br />

in <strong>Gauteng</strong>: the Wits <strong>Business</strong> School, the University<br />

of South Africa’s (Unisa’s) Graduate School of<br />

<strong>Business</strong> Leadership and the Gordon Institute of<br />

<strong>Business</strong> Science, on the Sandton campus of the<br />

University of Pretoria.<br />

Eighty percent of the 1 230 lecturers and<br />

researchers at the University of the Witwatersrand<br />

(Wits) have post-graduate degrees, and 27 A-rated<br />

scientists work there. The university offers studies in<br />

more than 40 schools in five faculties.<br />

Pretoria hosts the head office of distance<br />

university Unisa, which has almost a quarter of a<br />

million students. The University of Pretoria (UP) is<br />

renowned for research. One of the most famous<br />

faculties is veterinary science, which is located at<br />

Onderstepoort.<br />

The University of Johannesburg (UJ) is a comprehensive<br />

institution offering diplomas and degrees<br />

through a mix of vocational and academic<br />

programmes. The Tshwane University of Technology<br />

(TUT) and the Vaal University of Technology<br />

(VUT) have several campuses. ■<br />


Council of Higher Education: www.che.ac.za<br />

<strong>Gauteng</strong> Department of Education: www.education.gpg.gov.za<br />

National Research Foundation: www.nrf.ac.za<br />

UFSBS-FM BS survey 8026.pdf 1 <strong>2020</strong>/06/19 13:50<br />

UFSBS-FM BS survey 8026.pdf 1 <strong>2020</strong>/06/19 13:50<br />

UFS <strong>Business</strong> School<br />

UFSBS-FM BS survey 8026.pdf 1 <strong>2020</strong>/06/19 13:50<br />

Management Development | Leadership Development<br />

UFSBS-FM BS survey 8026.pdf /06/19 13:50<br />

1 <strong>2020</strong>/06/19 13:50<br />

UFSBS-FM BS survey 8026.pdf 1 <strong>2020</strong>/06/19 13:50<br />

UFSBS-FM BS survey 8026.pdf 1 <strong>2020</strong>/06/19 13:50<br />

UFSBS-FM BS survey 8026.pdf <strong>2020</strong>/06/19 13:50<br />

UFSBS-FM BS survey 8026.pdf 1 <strong>2020</strong>/06/19 13:50<br />

UFSBS-FM BS survey 8026.pdf 1 <strong>2020</strong>/06/19 13:50<br />

Executive Development | Advanced Project Management<br />

Various short learning programmes<br />

Available online and as inhouse programmes countrywide<br />

Contact Ansie Barnard<br />

T: 051 401 3204 | C: 082 900 1080 | barnardam@ufs.ac.za | www.ufs.ac.za/bus |<br />

| UFSUV | UFSweb | UFSweb |<br />

47 GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong>

INDEX<br />

INDEX<br />

Africa Biomass Company (ABC) ...................................................................................................................... 3, 8<br />

Chartered institute of Government Finance,<br />

Auditing and Risk Officers (CIGFARO) ....................................................................................................... OBC<br />

Johannesburg Development Agency (JDA) ..................................................................................... 14-15<br />

Metropolitan ................................................................................................................................................IFC, 42-43<br />

Nedbank .................................................................................................................................................................. 20-23<br />

Petroleum Agency South Africa ................................................................................................................ 32-33<br />

Randburg Chamber of Commerce and Industry (RCCI) ..................................................................IBC<br />

Transnet Pipelines .............................................................................................................................................. 30-31<br />

UFS <strong>Business</strong> School ...............................................................................................................................................47<br />

GAUTENG BUSINESS <strong>2020</strong>/<strong>21</strong><br />


Randburg Chamber of<br />

Commerce and Industry<br />

Promoting and representing businesses in the economic powerhouse.<br />


What is the geographic footprint of the Chamber?<br />

The areas we cover are: Randburg, Sandton, Fourways, Midrand<br />

and Lanseria.<br />

Linda Blackbeard, CEO<br />


Linda Blackbeard ran her own<br />

interior design and hospitality<br />

company before taking up the<br />

reins as CEO of the RCCI. She is<br />

the SACCI Chamber Forum chairlady<br />

and a member of the South<br />

African Chamber of Commerce and<br />

Industry board of directors. She was<br />

awarded the Pan African Award<br />

in 2018 in recognition of her<br />

achievements in the Continental<br />

Lifetime Achiever sector, CEO Global<br />

Most Influential Women in <strong>Business</strong><br />

& Government 2018 Awards.<br />

What are the key functions of the Chamber?<br />

Primarily to promote business, to facilitate introductions, to be the voice<br />

of business at municipal, provincial and government levels, in defending<br />

business in areas of poor decision-making or unintended consequences<br />

of various acts that are passed. We also facilitate opportunities into the<br />

SADC regions and work very closely with many embassies regarding<br />

trade and tourism.<br />

What does the Chamber do to support SMMEs?<br />

One of the Chamber’s primary focus areas is the development of SMMEs,<br />

finding opportunities for them, business enhancement in training,<br />

helping with business plans, company registrations, giving direction<br />

to ideas that entrepreneurs might have. Teaching them to form joint<br />

ventures with other small businesses and have an opportunity then to<br />

tender for work. We promote our local businesses being awarded work<br />

in our areas.<br />

Does the RCCI interact with government?<br />

RCCI is affiliated to the only national chamber body, South African<br />

Chamber of Commerce & Industry (SACCI). Through SACCI important<br />

issues are dealt with directly at government level. We are also heard at<br />

provincial level and the Chamber works with the City of Johannesburg,<br />

Trade and Investment SA as well as various national government<br />

departments responsible for economic development.<br />

Are there particular challenges?<br />

Randburg Chamber would love to embrace more businesses. There is<br />

so much opportunity around and we could facilitate more if businesses<br />

joined. The more businesses stand together with their local chamber of<br />

commerce, the stronger our voice will be at municipal, provincial and<br />

government level.<br />

What does the future hold?<br />

Our Electronic Certificate of Origin programme for export saves time and<br />

is designed for South African markets. <strong>Business</strong>es and members can look<br />

forward to renewed focus, positive opportunities, and facilitation in the<br />

SADC region for business growth and opportunity. www.rcci.co.za

CPD<br />


“ Attending CIGFARO Training<br />

and webinars has allowed me to<br />

earn CPD points while<br />

participating in Technical<br />

discussions to help improve my<br />

professional capacity. This is a<br />

great time to be associated with<br />

a SAQA recognised Professional<br />

Body. ”<br />

Ms Zanele Malaza<br />

(PGFO), CFO City of<br />

Mbombela<br />


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