Gauteng Business 2020/21 edition

GAUTENG
BUSINESS
SPECIAL FOCUS: INFRASTRUCTURE
INVESTMENT IN GAUTENG
2020/21 EDITION
THE GUIDE TO BUSINESS AND INVESTMENT
IN THE GAUTENG PROVINCE
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CONTENTS
CONTENTS
Gauteng Business 2020/21 Edition
Introduction
Foreword 5
A unique guide to business and investment in Gauteng.
Special features
Regional overview of Gauteng 6
Special Economic Zones and expanded infrastructure are
central elements to the strategies being devised to grow
the Gauteng economy.
Spatial planning and infrastructure
underpin Gauteng’s growth plans 10
GDP growth is directly related to infrastructure investment.
Builing mega-cities 16
Ambitious construction plans are afoot in Gauteng.
Economic sectors
Agriculture 26
A major starch business is changing hands.
Mining 27
AngloGold Ashanti has sold its last South African asset.
Energy 28
Companies are generating their own power.
Oil and gas 29
Various types of gas are available as fuels.
Transport and logistics 34
Achieving ambitious export goals will boost the logistics sector.
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CONTENTS
Manufacturing 36
The OR Tambo Aerotropolis is attracting manufacturing.
Tourism 38
Tourism operators are determined to rise again.
ICT 40
Financial services is leading the way in ICT investment.
Banking and financial services 41
Banks are looking at insurance and funeral policies.
Development finance and SMME support 44
Government pledges to spend R4-billion with SMMEs annually.
Education and training 46
Skills training is a public and private priority.
References
Key sector contents 24
Overviews of the main economic sectors of Gauteng.
Index 48
ABOUT THE COVER:
Arnold Petersen/iStock by Getty Images.
Sandton at night. With the Liberty Group
among the financiers, Sandton City shopping
centre, with 50 000m² of lettable space,
opened in 1973 and sparked fantastically fast
growth around it, transforming farmland to
the richest square mile in Africa. Several new
corporate headquarters have been built in
recent years in the town that drew its name
from two of its well-known suburbs, Sandown
and Bryanston.
GAUTENG BUSINESS 2020/21
4

Gauteng Business
A unique guide to business and investment in Gauteng.
FOREWORD
Credits
Publishing director:
Chris Whales
Editor: John Young
Managing director: Clive During
Online editor: Christoff Scholtz
Designer: Simon Lewis
Production: Lizel Olivier
Ad sales:
Gavin van der Merwe
Sam Oliver
Jeremy Petersen
Gabriel Venter
Vanessa Wallace
Shiko Diala
Administration & accounts:
Charlene Steynberg
Kathy Wootton
Printing: FA Print
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).
To complement the extensive local, national and international
distribution of the print edition, the full content can also be viewed
online at www.globalafricanetwork.com under e-books. Updated
information on Gauteng is also available through our monthly
e-newsletter, which you can subscribe to online at www.gan.co.za,
in addition to our complementary business-to-business titles that
cover all nine provinces as well as our flagship South African Business
title and the new addition to our list of titles, African Business, which
was launched in 2020. ■
Chris Whales
Publisher, Global Africa Network Media | Email: chris@gan.co.za
DISTRIBUTION
Gauteng Business is distributed internationally on outgoing
and incoming trade missions, through trade and investment
agencies; to foreign offices in South Africa’s main trading
partners around the world; at top national and international
events; through the offices of foreign representatives in
South Africa; as well as nationally and regionally via chambers
of commerce, tourism offices, airport lounges, provincial
government departments, municipalities and companies.
Member of the Audit Bureau
of Circulations
PUBLISHED BY
Global Africa Network Media (Pty) Ltd
Company Registration No: 2004/004982/07
Directors: Clive During, Chris Whales
Physical address: 28 Main Road, Rondebosch 7700
Postal address: PO Box 292, Newlands 7701
Tel: +27 21 657 6200 | Fax: +27 21 674 6943
Email: info@gan.co.za | Website: www.gan.co.za
ISSN 1990-0621
COPYRIGHT | Gauteng Business is an independent publication
published by Global Africa Network Media (Pty) Ltd. Full copyright to the
publication vests with Global Africa Network Media (Pty) Ltd. No part
of the publication may be reproduced in any form without the written
permission of Global Africa Network Media (Pty) Ltd.
PHOTO CREDITS | Arnold Petersen/iStock by Getty Images, ACSA,
Boogertman and Partners, Coega Development Corporation (CDC), Diesel
Electric Services, Commvault, CNG Holdings, 5M2T, Harmony, Knight
Piésold, Marriott International, Mark Hillary/Flickr, Gauteng Partnership
5
Fund (GPF), Johannesburg Development Agency (JDA), Tongaat Hulett,
Venter Consulting Engineers, Wits Business School.
DISCLAIMER | While the publisher, Global Africa Network Media (Pty)
Ltd, has used all reasonable efforts to ensure that the information
contained in Gauteng Business is accurate and up-to-date, the publishers
make no representations as to the accuracy, quality, timeliness, or
completeness of the information. Global Africa Network will not accept
responsibility for any loss or damage suffered as a result of the use of or
any reliance placed on such information.
GAUTENG BUSINESS 2020/21

A REGIONAL OVERVIEW OF
GAUTENG
Special Economic Zones and expanded infrastructure are
central elements to the strategies being devised to grow
the Gauteng economy.
By John Young
One of the plans to boost Gauteng,
“Growing Gauteng Together” (GGT
2030) prioritises the economy, jobs and
infrastructure, with the manufacturing
sector earmarked as a key driver.
Gauteng accounts for 45% of the South Africa’s
manufacturing capacity, so the province is wellplaced
to expand an already strong and diverse
sector. Manufacturing makes up 14.5% of formal
sector output in Gauteng, making it the fourthlargest
sector. One in nine jobs in the province are
created in the sector. According to the Gauteng
Growth Development Agency (GGDA), six out
of 10 foreign direct investment (FDI) projects in
Gauteng have flowed to the manufacturing sector
and its subsectors.
In the five years to 2019, the Gauteng City-
Region attracted 447 FDI projects valued at
R264-billion, which created more than 69 000
jobs (FDI Markets).
The GGDA is an implementing agency which
aims to facilitate business enablement, develop
small, medium and micro-enterprises (SMMEs)
and to promote investment and job creation.
Focussed support for these specific subsectors is
intended to spur other investments: automotive
sector, mineral beneficiation, capital equipment,
agro-processing, pharmaceuticals and tertiary
GAUTENG BUSINESS 2020/21
6

SPECIAL FEATURE
Tech SEZ (Tshwane), the Vaal SEZ (Sedibeng), and
the Tshwane Automotive SEZ.
The National Department of Trade, Industry and
Competition (dtic) is the lead agent in the creation of
SEZs, which are part of the national Industrial Policy
Action Plan (IPAP). SEZs are designed to attract
investment, create jobs and boost exports.
The Provincial Government of Gauteng
has identified 10 “high-growth” sectors where
it intends concentrating its efforts to build
infrastructure and to attract public and private
sector investment:
• Energy: new technologies and a diverse
Transportation and logistics.
• ICT, media and digital services.
• Tourism and hospitality.
• Agricultural value chain.
• Construction and infrastructure.
• Automotive, aerospace and defence.
• Financial services.
• Cultural and creative industries.
• Industrialisation of cannabis.
Credit: ACSA
services such as the BPO, ICT services, tourism
and the knowledge economy.
GGDA subsidiaries include The Innovation
Hub (technology), the Automotive Industry
Development Centre (AIDC), which manages
the Automotive Supplier Park (ASP) and InvestSA
Gauteng (red tape remover for investors).
The Johannesburg Development Agency
(JDA) plays a similar role as the City of
Johannesburg’s development agency. JDA’s
focus is on helping create resilient, sustainable
and liveable urban areas in identified transit
nodes and corridors. In 15 years, 387 projects
have been implemented.
Special Economic Zones (SEZs) are being
created and expanded across the province to
support manufacturers, providing them with the
necessary infrastructure and access to related
businesses. This has seen the expansion of the
OR Tambo International Airport (ORTIA) SEZ
(Ekurhuleni) and the establishment of the High-
These priorities were announced before the onset
of the Covid-19 global pandemic, so obviously
there will be some major adjustments, especially
with regard to tourism and hospitality which
has suffered major setbacks during the local and
international lockdowns.
It could be that the focus shifts more strongly
to another one of the priorities of local and regional
government, affordable housing. Much has been
done to provide housing since the dawn of the
democratic era in 1994, but much more needs
to be done in response to rapid urbanisation.
Gauteng Province has pledged to provide 100 000
service stands to qualifying Gauteng residents who
want to and are able build their own homes and
it wants an additional 250 000 people to be able
to recent “decent accommodation” over the next
five to 10 years. This is in addition to facilitating the
development of mega-cities, one to the west of
Lanseria and the other to the south of Vereeniging.
Vaal River City will span the Orange River and
eventually link up with Sasolburg in the Free State,
according to the blueprint.
Another housing initiative will see provincial
funds ring-fenced to formalise informal settlements
7 GAUTENG BUSINESS 2020/21

SPECIAL FEATURE
and to upgrade hostels into family units. All of
these programmes should provide a boost to the
construction and property sector and to small
businesses in both sectors.
15 Alice Lane Annex. Image: Andrew Bell/Paragon Architects
Overview of the province
Gauteng is South Africa’s smallest province in
terms of landmass but in every other respect it is
a giant. The province is the nation’s key economic
growth engine.
At 18 176km², the province makes up just 1.5%
of South Africa’s territory, but even that aspect
showed growth in 2018 when the territory
of Ekangala was formally transferred from
Mpumalanga Province to Gauteng Province.
Theland had previously been part of the
KwaNdebele homeland.
The 14.3-million people living in Gauteng in
2017 generated a gross domestic product of R1.59-
trillion, about a third of South Africa’s GDP (StatsSA).
Gauteng shares borders with four provinces, the
Free State, North West, Limpopo and
Mpumalanga. The southern border of
the province is the Vaal River and most of
the province is located on the Highveld.
The Witwatersrand, which runs through
Johannesburg, marks the continental
divide: rivers running to the north drain
into the Indian Ocean, rivers running
south drain into the Atlantic Ocean via
the Vaal into the Orange River. Gauteng
draws its water from a series of interconnected
river transfer systems. A major
source of water is the Lesotho Water
Highlands Project.
The Witwatersrand was the source of
the gold that drew so many thousands of
people to the area in the late 19th century
and was the origin of the word for South
Africa’s currency, the “rand”.
Gauteng is a leader in a wide range of economic
sectors: finance, manufacturing, commerce, IT and
media among them. The Bureau of Market Research
(BMR) has shown that Gauteng accounts for 35% of
total household consumption in South Africa.
The leading economic sectors are finance, real
estate and business, manufacturing, government
services and wholesale, retail, motor trade
and accommodation. The creative industries
(including advertising and the film sector) employ
upwards of 180 000 people and contribute more
than R3.3-billion to the provincial economy. This
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sector is seen as a driver of future growth.
In Johannesburg, financial services and
commerce predominate. The JSE, Africa’s largest
stock exchange, is in Sandton and several new stock
exchanges have recently received licences.
Tshwane (which includes Pretoria) is home
to many government services and is the base
of the automotive industry and many research
institutions. The Ekurhuleni metropole has the largest
concentration of manufacturing concerns, ranging
from heavy to light industry, in the country. The
western part of the province is concerned mainly
with mining and agriculture, while the south has a
combination of maize farming, tobacco production
and the heavy industrial work associated with steel
and iron-ore workings.
Individually, the biggest Gauteng cities
contribute to the national GDP as follows:
Johannesburg (15%), Tshwane (9%) and
Ekurhuleni (7%).
Gauteng is not just an important centre of
economic activity it is also an important launching
pad for local and international businesses to enter
Nelson Mandela Bridge at night. Image: SA Tourism
the African market. The country’s biggest airport,
OR Tambo International Airport, is at the core of the
province’s logistical network. Other airports include
Rand Airport (Germiston), Wonderboom (Pretoria)
Lanseria and Grand Central (Midrand).
The Gauteng Division of the High Court of
South Africa (which has seats in Pretoria and
Johannesburg) is a superior court with general
jurisdiction over the province. Johannesburg is also
home to the Constitutional Court, South Africa’s
highest court, and to a branch of the Labour Court
and the Labour Appeal Court.
The province has several outstanding universities,
and the majority of South Africa’s research takes place
at well-regarded institutions such as the Council for
Scientific and Industrial Research (CSIR), the South
African Bureau of Standards (SABS), Mintek, the
South African Nuclear Energy Corporation (NECSA),
the Human Sciences Research Council (HSRC) and
several sites where the work of the Agricultural
Research Council (ARC) is done. ■
9 GAUTENG BUSINESS 2020/21

SPECIAL FEATURE
Spatial planning and infrastructure
underpin Gauteng’s growth plans
GDP growth is directly related to infrastructure investment.
Credit: Coega Development Corporation
Infrastructure spending and areas dedicated to
specific kinds of manufacturing are intended
to drive economic growth in the Gauteng
Province.
Both concepts fall within broader national plans
to boost industrialisation through various kinds of
Special Economic Zones (SEZs) and infrastructural
initiatives. A number of national and provincial
planning frameworks inform the planning of
Gauteng’s economic future. These include the
National Development Plan, Growing Gauteng
Together (GGT 2030), Gauteng 2055 Vision and
the City of Johannesburg’s Growth Development
Strategy and Spatial Development Framework.
The Gauteng Provincial Government will
spend R60-billion on building and maintaining
infrastructure in the five years to 2025. The
provincial authorities further estimate that about
R100-billion will be spent on infrastructure
projects in the province by a variety of stateowned
enterprises (SOEs) and national
departments in the next decade. The overall
estimate for the injection of capital related to
infrastructure, including private initiatives, is
calculated at R760-billion in the period to 2030.
A 15-year Gauteng Infrastructure Master
Plan has been adopted but multiple sources
of funding are needed for the plan to succeed
in areas such as the provision of water,
logistics, broadband connectivity, public
transport, energy and the reshaping of cities to
accommodate citizens in a better way than was
the case under apartheid. A World Bank report
has shown that a 10% increase in infrastructure
spending results in a 1% growth in GDP.
Gauteng began laying the groundwork for
GAUTENG BUSINESS 2020/21
10

SPECIAL FEATURE
creating a research base for urban planning as
far back as 2008 when the Gauteng City-Region
Observatory (GCRO) was established. A partnership
between the University of Johannesburg (UJ), the
University of the Witwatersrand, Johannesburg
(Wits) and the Gauteng Provincial Government,
the GCRO does research on which planners can
base their projections.
A Township Economic Development Bill is to be
introduced in the provincial legislature to reduce
the amount of red tape faced by small businesses.
Growth strategies are to be integrated to ensure
that township SMMEs and black industrialists are
considered when programmes such as the focus
on 10 “high-growth sectors” are implemented. Youth
employment will be factored in to plans to support
those sectors.
Corridors and SEZs
Five corridors have been identified for development
purposes. Each has core existing economic activities
which will be supported and expanded. In addition,
new activities will be encouraged to diversify the
area’s economic potential and create jobs.
The Gauteng City-Region will have three fully
operating Special Economic Zones (SEZs) by
2025. These will be based in Ekurhuleni, Tshwane
and Sedibeng with an additional Special Agro-
Processing Zone located in the West Rand. The
province intends reviving 15 industrial parks and
creating 12 agri-parks and five agro-processing
facilities across the province.
By 2030, Gauteng will have the biggest inland
logistics hub and dry port in Africa – the Transnet
Tambo-Springs Logistics Gateway.
These area-based infrastructure and logistics
projects are expected to contribute to giving the
province a competitive edge in the 10 economic
sectors that have been identified as “high-growth”.
This in turn will create opportunities for small,
medium and micro-enterprises (SMMEs) and
township businesses.
The Tshwane Automotive Special Economic
Zone (TASEZ) (pictured) is a key project within the
Northern Corridor. It is a project of the Gauteng
Province, the Department of Trade, Industry
and Competition, and the City of Tshwane. The
implementing agent is the Coega Development
Corporation (CDC), the developer and operator of
the Coega Special Economic Zone (SEZ).
The TASEZ, branded as “Africa’s First Automotive
City”, has a mandate to promote economic
participation for SMMEs and create employment
in the region. Sectors targeted include security, ICT
maintenance, facility maintenance, construction,
automotive supply chain, marketing and
advertising, catering and events.
The benefits that arise from clustering of
businesses in related sectors is a key element of an
SEZ. Both the Nissan and BMW plants are expanding
and Ford is investing in Silverton. An Incubation
Centre for SMMEs has been launched at Nissan’s
assembly plant in Rosslyn. The facility supports
small enterprises through subsidised rental and
mentorship and training. Management of the centre
is done by the Automotive Industry Development
Centre (AIDC), a subsidiary of the Gauteng Growth
and Development Agency (GGDA). The Jobs Fund
contributes to financing the project.
Other focus sectors in this corridor include
agriculture and agro-processing, defence, the
aerospace and aviation industries together with
the innovation, research and development cluster
anchored around the Gauteng Innovation Hub,
universities and research institutes.
The OR Tambo SEZ is at the centre of the Eastern
Corridor, which underscores Ekurhuleni’s strengths
in manufacturing and logistics. The OR Tambo
SEZ has launched the biggest food processing
operation in the southern hemisphere (and the
world’s second-largest refrigeration plant). With
a special focus on export-oriented value-added
industry, the OR Tambo SEZ leverages its connection
to the country’s busiest airport. The focus of this SEZ
is on agro-processing, jewellery manufacturing and
mineral beneficiation as well as the development
of hydrogen fuel cell technology. This is another
subsidiary of the GGDA.
Other Eastern Corridor sectors include rail and
bus manufacturing (including the PRASA-Gibela
rail manufacturing hub in Nigel), defence and
aerospace and food and beverages.
The Western Corridor encompasses the
economy of the West Rand and has been targeted
11 GAUTENG BUSINESS 2020/21

SPECIAL FEATURE
Credit: Mark Hillary/Flickr
for the creation of new zones for development,
housing, and industry. The aim is to diversify away
from mining towards renewable energy, tourism,
bus manufacturing and agro-processing. The
release of 30 000 hectares of land by Sibanye Gold
has unlocked the potential for major investment
projects. A Smart City is envisaged for Lanseria
and the area to its west.
Where steel used to be the anchor industry in
the Southern Corridor, today the aim is to build
new industries through an SEZ that will cover
both sides of the Vaal River and thus extend into
the Free State Province. Among the investments
that will create impetus are the Savannah City
development, Vaal River City development, a
cargo airport and logistics hub, the AB InBev
investment project, the Gauteng Highlands
water project, the Vaal Marina development and
logistics and mining investments in the Lesedi
Local Municipality, which includes Heidelberg
and Nigel.
Metropolitan drivers
The Central Development Corridor revolves around
the City of Johannesburg as the hub the of financial
services, information and communication technology,
services and pharmaceutical sectors.
New investments are planned for the Joburg
Inner-City and the South, from Soweto, N12
which includes Masingita City, Southern Farms to
Orange Farm.
The City of Johannesburg has recently
completed a review of its policy of nodal
development with a view to creating a fairer
spatial framework for the city than that created
by the racist planning laws of the apartheid era.
As Member of the Mayoral Committee
Lawrence Khoza puts it, “Nowhere is the legacy
of our painful past expressed more vividly than
in the racially divided spatial character of South
Africa’s cities.”
Johannesburg has designated eight zones:
Inner-city: high-intensity use.
Metropolitan: mix of land uses which currently
includes Sandton and Rosebank and will expand
to include parts of Soweto.
General urban: designed to be transformative,
mix of economic and residential use.
Local economic development: interventions
planned to create economic opportunities in
areas with poor facilities (Zandspruit, Orange
Farm, parts of Soweto).
Suburban: lower density with local mixing of
land use (homes, offices, offices, shops).
Dark green: a limit of 8% coverage of buildings.
Peri-urban/agriculture: low density.
Another transformative initiative being
undertaken in Johannesburg is the use of
Transit-Oriented Development (TOD) to drive
investment and development. Implemented by
the Johannesburg Development Agency (JDA),
the TODs are another attempt to improve the lives
of people living in previously neglected areas.
GAUTENG BUSINESS 2020/21
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SPECIAL FEATURE
One such TOD is the Jabulani TOD in Soweto
where a seven-phase project is underway that
includes a multi-purpose hall, a library, counselling
facilities, sports facilities, offices and meeting rooms.
A pedestrian bridge over a railway line and new
roads underscore the transport element, with the
facilities near the Bus Rapid Transport (BRT) route
that runs through Soweto to central Johannesburg.
TODs are designed to attract further investment and
are supported by the Neighbourhood Development
Partnership Grant from National Treasury.
Other projects undertaken by the JDA range
from the upgrading of Constitution Hill, the Faraday
Station precinct, work on the Fashion District and
pavements of the inner city, renovation of the Drill
Hall and the big Newtown make-over.
Johannesburg has been the focus of a major
tax incentive initiative, the Urban Development
Zone (UDZ). The inner city of Johannesburg,
comprising just less than 18km², is the largest
UDZ in South Africa and it is expanding its
footprint in response to significant successes that
have been achieved.
The Johannesburg Social Housing Company
(Joshco) has plans to provide affordable rental
accommodation in 12 inner-city buildings that
were recently identified for that purpose. But the
main target for the UDZ is private investors.
The City of Johannesburg has identified the
following nodes for development:
• Carlton Precinct: Johannesburg’s tallest
building attracts tourists; undergoing revamp;
Sky Rink TV and film studio being developed;
conference centre planned.
• Park Station: intermodal node catering for
cars, buses, rail commuters and taxis; Gautrain
link to OR Tambo International Airport; wide
variety of users.
• Central park: JDA has worked on greening and
community engagement and wants the park to
be a symbol of the successful city.
• Doornfontein/Ellis Park railroad corridor:
planned retail hub and student village.
• Fordsburg: interior design focus; more offices
and accommodation can be built.
• Newtown: cultural precinct with the potential
to cater to students and university departments
with specialised offices and spaces.
• Hillbrow, Berea, Parktown, Bellvue,
Yeoville: creation of new public open
space; opportunities for office and hotel
developments.
National Infrastructure boost
An Investment and Infrastructure Office has
been created in the Presidency. It is headed
by the former Gauteng MEC for Economic
Development, Dr Kgosientso Ramokgopa. In 2020,
51 infrastructure projects with a total investment
value of more than R340-billion were gazetted.
Ten of the 18 affordable housing projects
listed are located in Gauteng. These include
Malibongwe Ridge, Green Creek, Mooikloof
Mega Residential City, Fochville Extension 11
and Germiston Ext 4 Social Housing Project. A
large project is underway in Tshwane, Salvokop
Precinct, to house government
departments and commercial
buildings.
The energy projects identified
by national government will
have an impact on Gauteng,
the country’s biggest consumer
of energy. Priorities include
embedded generation and
the huge water supply project,
Phase 2 of the Lesotho Highlands
Water Project, will create many
opportunities. ■
13 GAUTENG BUSINESS 2020/21

FOCUS
Selby Bus Rapid Transit depot
is taking shape
The Johannesburg Development Agency (JDA) is building infrastructure
to make the city more resilient, liveable and sustainable.
Selby BRT depot, which will service two Rea
Vaya BRT operating companies, will be utilised
for major and minor maintenance of
buses for maintaining in-service buses and
out-of-service buses. The centrally-located depot
will minimise dead mileage as well as minimise the
time lost by buses in traffic congestion between
depots and route starting points.
The JDA is a wholly-owned area-based
development agency of the City of Johannesburg
with an emphasis on the development of resilient,
sustainable and liveable urban areas in identified
transit nodes and corridors. This means that as an
area-based development agency, we are more
than just a project management agency or an
economic development agency.
The JDA operates within the context of the
spatial transformation of South African cities
to correct the spatial and systemic inequalities
created by past regimes of segregation. This
is the foremost goal of urban development
in the coming years. A more equitable, more
just city is one that extends access to a range
of opportunities and services to all of its
citizens. This is aligned to the City of Johannesburg’s
Growth and Development Strategy
(GDS) 2040.
One of the GDS 2040 outcomes is to
provide a resilient, liveable and sustainable
urban environment – underpinned by smart
infrastructure supportive of a low-carbon
economy. The JDA is currently revamping the
existing Selby bus depot in the Johannesburg
inner city, to turn it into a state-of-the-art Rea
Vaya Bus Rapid Transit (BRT) depot for Phase 1B
and Phase 1C operations.
The JDA, on behalf of the City of
Johannesburg’s Department of Transport, is
undertaking the construction of the Selby BRT
in three phases, namely phase 2A, phase 2B and
phase 2C.
The Selby BRT depot, which will service two
Rea Vaya BRT operating companies, will be utilised
for major and minor maintenance of buses by
maintaining in-service buses and out-of-service
buses. The centrally-located depot will minimise
dead mileage, as well as minimise the time lost by
buses in traffic congestion between depots and
route starting points.
An Intelligent Transport System monitors traffic via
multiple screens.
GAUTENG BUSINESS 2020/21
14

FOCUS
In 2013, the JDA developed the first depot
in Meadowlands in Soweto. The Selby BRT
depot is being revamped to be on par with the
Meadowlands depot, which is environmentally
friendly and custom-made for Rea Vaya buses.
Phase 2B, covering the construction of the
bus depot workshops and refuelling garages and
Phase 2C, which involves the construction of the
administration building, are currently underway.
The scope of work for Phase 2B includes
extensive alterations, refurbishments and additions
to an existing workshop building. This includes
the construction of a new refuelling building,
a new double-volume wash-bay building, two
new refuse buildings, a new gate house, civil
works, stormwater infrastructure, concrete paving
panels with layerworks, and mechanical and
electrical installations.
This construction also plays a role in job creation
and skills development, with 30% of the contract
value being awarded to SMMEs.
Environmentally-friendly features include lights
controlled by sensors, a robust, mild-steel sheeting
for the roof, cladding to help with climate control,
and a noise-wall barrier erected around the
premises. The roof structures will also allow direct
sunlight into the building to reduce the need for
artificial lighting. Water is recycled for reuse in the
buildings and the wash bay.
Work planned for Phase 2C includes the
redevelopment and refurbishment of an existing
administration building. This comprises demolition
works to various areas, the refurbishment of
workshop areas, construction of a new canteen
and gymnasium, the construction of new
offices, administration rooms, boardrooms and
storerooms, the construction of a new main foyer
and reception areas and the refurbishment of
courtyard spaces.
The construction of additional toilet blocks,
new lifts to aid accessibility, service ducts, new
pedestrian and vehicular access with security
offices, external works and the installation of
electrical and mechanical infrastructure will also
be undertaken.
Phase 2A, now complete,
entailed the construction
of the perimeter fence, bus
parking area platform, site
access road, main parking
area driveway upgrade and
the construction of the main
entrance road into the depot
(along the Pat Mbatha Road
intersection with Ignatius
Street).
Once completed, the
Selby BRT depot, which was
formerly used by Putco Bus
Company, will accommodate
up to 270 buses and feature an administration
building, maintenance building, washing and
refuelling bays and an Intelligent Transport System
(ITS) control centre. The administration block
features ablution facilities, a canteen, offices and
staff and visitors parking.
Contact details
Physical address: The Bus Factory No 3, Helen
Joseph Street Newtown, Johannesburg
Postal address: PO Box 61877, Marshalltown 2107
Tel: + 27 11 688 7851 | Fax: +27 11 688 7899
Email: info@jda.org.za | Web: www.jda.org.za
15 GAUTENG BUSINESS 2020/21

SPECIAL FEATURE
Building mega-cities
Ambitious construction plans are afoot in Gauteng.
Housing at Fleurhof Ext 2, sponsored by the Madulamoho Housing
Association. CREDIT: Gauteng Partnership Fund
The fourth quarter of 2020 and the first half of 2021 must
be growth periods for the construction and property sectors
– for the simple reason that they barely functioned
during the lockdown caused by the global pandemic.
South Africa is fortunate in that it is emerging from the
lockdown at the same time as summer days lengthen and the
national government is getting down to brass tacks with its
long-awaited infrastructure programme. With a dedicated unit
within the Presidency, a conference has been held and more than
200 hundred possible projects have been whittled down to 51
projects that have been gazetted.
By 2030 Gauteng will have two huge new cities, socially
diverse, digitally connected and ecologically responsible and
sustainable. That’s if the Provincial Government of Gauteng brings
to fruition its plans for the west (Lanseria to Haartbeespoort
Dam) and in the south, where Vaal River City will stretch from
Vereeniging to Sasolburg in the Free State.
In the 25 years since South Africa has been a democracy,
more than 1.2-million subsidised houses have been built by
government in Gauteng. Provincial government has pledged to
release 10 000 serviced stands as part of its Rapid Land Release
programme and it intends
finishing incomplete housing
projects in Alexandra, Evaton,
Kliptown, Bekkersdal and
Winterveldt.
Bodies such as the National
Housing Finance Corporation,
Indlu and Umastandi (social
capital entrepreneurs) are
working together with
provincial authorities to find
ways to formalise and monetise
the township market so that
sustainable incomes can be
generated and affordable
housing and rental stock
becomes more readily available.
An important concept for
developers in Johannesburg
is the tax incentive that
accompanies the Urban
Development Zone (UDZ).
The City of Johannesburg and
the South African Property
Owners Association (SAPOA)
have developed a database
for all UDZ properties.
Information about the owner
of the plot, the valuation and
zoning rights is available for
every stand.
Various “improvement
districts” have also been created,
for example the RID (Retail
Improvement District) where
businesses in a designated area
pay levies to secure improved
cleaning and security services.
The Johannesburg City
Improvement District Forum
shares information among
the CIDs. Expenditure by CIDs
GAUTENG BUSINESS 2020/21
16

SPECIAL FEATURE
collectively on supplementary
public space safety, cleaning and
maintenance is estimated to be
about R61-million annually.
The Gauteng Partnership
Fund (GPF) has attracted more
than R3.5-billion in private
sector funding for affordable
housing in the province since
2012. The Brickfields housing
and rental development in
Newtown was funded by the
GPF and implemented by
the Johannesburg Housing
Company (JHC) as one of the
first inner-city rejuvenation
projects. JHC is a leader in
converting bad buildings to
useable rental space.
The Johannesburg
Development Agency (JDA)
projects range broadly across
many areas within the city, and
include plans to use transport
hubs to improve the lives of
residents living in previously
neglected areas.
Private developer
Indluplace Properties
has purchased nine large
apartment blocks, taking
its total buildings in central
Johannesburg CBD, Berea and
Hillbrow to 23: 33% of the units
are bachelor pads, 22% are
two-bedroomed flats. The listed
company (its major shareholder
is Arrowhead) intends to
“aggressively grow its portfolio”
of high-yielding properties as it
believes the rental market has
huge potential.
Property developments
Quite what the future of office space will be remains to
be seen in the wake of Covid-19. Investment and pension
funds are heavily invested in commercial and residential
property so this is something that will be closely
monitored in the early 2020s.
The hugely successful Sandton model of office and
accommodation development is being replicated across
the province. Sandton’s 10 000 businesses and 300 000
residents are spoilt for accommodation choices, but
city-like developments are springing up in other parts of
Gauteng as well.
The newest is Castle Gate Lifestyle Centre, which is being
built in Pretoria as the first phase in a multi-use development
that will eventually comprise offices, medical facilities, a hotel
along with a retail centre and more than 1 000 residential
units. The R6-billion project is being undertaken by Atterbury
and the Carl Erasmus Trust.
The biggest is Menlyn Maine in the eastern suburbs of Pretoria.
Not only is this a huge multi-use project, it also aims to be South
Africa’s first “Green Precinct”. Professional services and consulting
firm PwC has chosen the Waterfall City estate near Midrand as
the site for its R1.5-billion headquarters, housing 3 500 employees
with a total of 40 000m² of lettable space. The building is owned
by Attacq and developed by Atterbury.
Rosebank’s popularity as an office node continues to
grow and Melrose Arch has proved a popular development,
but none of this has stopped Sandton continue to expand
and it remains first choice as the national base for several
large companies. Recent new headquarters have been
constructed for Discovery and Sasol.
The trend called “semigration” has been having a
downward effect on Gauteng’s residential property prices
for some time. Semigration refers to people moving within
the country – not quite emigrating – to the Western Cape.
Pam Golding Properties CEO Andrew Golding told the
Sunday Times in November 2019 that the Cape drought
had led to other areas such as the Garden Route and the
north coast of KwaZulu-Natal becoming more popular as
destinations. ■
17 GAUTENG BUSINESS 2020/21

10 REASONS
WHY YOU SHOULD INVEST IN SOUTH AFRICA
01.
HOT EMERGING
MARKET
Growing middle class, affluent consumer
base, excellent returns on investment.
02.
MOST DIVERSIFIED
ECONOMY IN AFRICA
South Africa (SA) has the most industrialised economy in Africa.
It is the region’s principal manufacturing hub and a leading
services destination.
LARGEST PRESENCE OF MULTINATIONALS
ON THE AFRICAN CONTINENT
SA is the location of choice of multinationals in Africa.
03.
Global corporates reap the benefits of doing business in
SA, which has a supportive and growing ecosystem as a
hub for innovation, technology and fintech.
05.
FAVOURABLE ACCESS TO
GLOBAL MARKETS
ADVANCED FINANCIAL SERVICES
& BANKING SECTOR
SA has a sophisticated banking sector with a major
footprint in Africa. It is the continent’s financial hub,
with the JSE being Africa’s largest stock exchange by
market capitalisation.
The African Continental Free Trade Area will boost
intra-African trade and create a market of over one
billion people and a combined gross domestic product
(GDP) of USD2.2-trillion that will unlock industrial
development. SA has several trade agreements in
place as an export platform into global markets.
YOUNG, EAGER LABOUR FORCE
09.
SA has a number of world-class universities and colleges
producing a skilled, talented and capable workforce. It
boasts a diversified skills set, emerging talent, a large pool
of prospective workers and government support for training
and skills development.
07.
04.
06.
08.
PROGRESSIVE
CONSTITUTION
& INDEPENDENT
JUDICIARY
SA has a progressive Constitution and an independent judiciary. The
country has a mature and accessible legal system, providing certainty
and respect for the rule of law. It is ranked number one in Africa for the
protection of investments and minority investors.
ABUNDANT NATURAL
RESOURCES
SA is endowed with an abundance of natural resources. It is the leading producer
of platinum-group metals (PGMs) globally. Numerous listed mining companies
operate in SA, which also has world-renowned underground mining expertise.
WORLD-CLASS
INFRASTRUCTURE
AND LOGISTICS
A massive governmental investment programme in infrastructure development
has been under way for several years. SA has the largest air, ports and logistics
networks in Africa, and is ranked number one in Africa in the World Bank’s
Logistics Performance Index.
10.
SA offers a favourable cost of living, with a diversified cultural, cuisine and
sports offering all year round and a world-renowned hospitality sector.
EXCELLENT QUALITY
OF LIFE
Page | 2
19
SOUTH AFRICAN BUSINESS 2020

Sectoral strengths of of
South South African provinces
SECTORAL SECTORAL STRENGTHS STRENGTHS OF OF
SOUTH SOUTH AFRICA’S AFRICA’S PROVINCES PROVINCES
A wide A wide variety variety of investments of investments are available. are available.
FOCUS FOCUS
Mpumalanga: Mpumalanga:
Gauteng: Gauteng:
• Mining • Mining
• Financial • Financial and business and business services services
• Tourism • Tourism
• Information • Information and communications
and communications
• Forestry, • Forestry, paper and paper paper and paper
technology technology
products, products, wood and wood wood and wood
• Transport • Transport and logistics and logistics
products products
• Basic • iron Basic and iron steel, and steel steel, products steel products Limpopo: Limpopo: • Agriculture • Agriculture and agroprocessinprocessing
and agro-
• Fabricated • Fabricated metal products metal products • Mining • Mining
• Motor • vehicles, Motor vehicles, parts and parts accessories and accessories • Fertilisers • Fertilisers • Metal • products Metal products
• Appliances • Appliances
• Tourism • Tourism
• Machinery • Machinery and equipment and equipment • Agriculture • Agriculture
• Chemical • Chemical products, products, pharmaceuticals pharmaceuticals • Agro-processing • Agro-processing
• Agro-processing • Agro-processing • Energy, • including Energy, including
North West: North West:
renewables renewables (solar) (solar)
• Mining • Mining
• Agriculture • Agriculture and agro-processing
and agro-processing
KwaZulu-Natal: KwaZulu-Natal:
• Tourism • Tourism
• Transport • Transport and logistics and logistics
• Metal • products Metal products
• Tourism • Tourism
• Machinery • Machinery and equipment and equipment
• Motor • vehicles, Motor vehicles, parts and parts and
• Renewable • Renewable energy (solar) energy (solar)
accessories accessories
• Petrochemicals • Petrochemicals
• Aluminium • Aluminium
• Clothing • Clothing and textiles and textiles
• Machinery • Machinery and equipment and equipment
• Agriculture • Agriculture and agroprocessinprocessing
and agro-
Northern Northern Cape: Cape:
• Mining • Mining
• Forestry, • Forestry, pulp and pulp paper, and paper,
• Agriculture • Agriculture and agro-processing
and agro-processing
wood and wood wood and products wood products
• Fisheries • Fisheries and aquaculture and aquaculture
• Renewable • Renewable energy (solar, energy wind) (solar, wind)
• Jewellery • Jewellery manufacturing manufacturing
Eastern Eastern Cape: Cape:
Western Western Cape: Cape:
•
• Motor vehicles, parts and
Tourism •
• Motor vehicles, parts and
Tourism
accessories accessories
• Financial • Financial and business and business services services
•
• Forestry, wood and wood products
Transport •
• Forestry, wood and wood products
Transport and logistics and logistics
•
• Clothing and textiles
ICT• • Clothing and textiles
ICT
Free State: Free State:
•
• Pharmaceuticals
Agriculture •
• Pharmaceuticals
Agriculture and agro-processing
and agro-processing
• Agriculture • Agriculture and agro-processing
and agro-processing
•
• Leather and leather products
Fisheries •
• Leather and leather products
Fisheries and aquaculture and aquaculture
• Mining • Mining
•
• Tourism
Petrochemicals •
• Tourism
Petrochemicals
• Petrochemicals • Petrochemicals
•
• Renewable energy (wind)
Basic •
• Renewable energy (wind)
iron Basic and iron steel and steel
• Machinery • Machinery and equipment and equipment
• Clothing • Clothing and textiles and textiles
• Tourism • Tourism
• Renewable • Renewable energy (solar, energy wind) (solar, wind)
FOCUS
Source: Industrial Source: Industrial Development Development Corporation Corporation (IDC); The (IDC); Case The for Case
Source: Industrial Development Corporation (IDC)
Investing for Investing South in Africa, South Africa, Executive Executive Summary Summary
Source: Industrial Development Corporation (IDC)
(South African (South Investment African Investment Conference, Conference, 2018). 2018).
(South African Investment Conference, 2018).
Page | 40 Page | 40
19
23 23 SOUTH SOUTH GAUTENG
AFRICAN AFRICAN BUSINESS
BUSINESS BUSINESS 2020/21
2020 2020

ADVERTORIAL
see money differently
RELATIONSHIPS AND
UNDERSTANDING CLIENT
NEEDS ARE KEY, SAYS EXPERT
Pedro Rhode, Nedbank’s Provincial General Manager for Gauteng
East, explains how brand values built on the bank’s expertise can
benefit Nedbank clients, especially in what is now ‘the new normal’.
Our client-centred strategy and digital
innovation enabled us to continue
serving clients in the comfort of their
homes through the Covid-19 lockdown. It
brought convenience to clients and helped
them to comply with lockdown regulations,'
he says.
Rhode says that for small- and mediumsized
business clients, Nedbank continues to
deliver end-to-end solutions through a
dedicated business manager. ‘Our biggerpicture
business approach ensures that
we are able to take a holistic view of each
business by understanding the vision,
cashflow cycle, and transactional and
capital expenditure needs. This way, we
become trusted advisors to the business
owners who strive to grow their business.’
Small businesses often lack formalisation, as
shown by many not qualifying for Covid-19
assistance due to out-of-date records and
not meeting regulatory requirements.
Rhode says that Nedbank’s experts are
available to provide all the support small
businesses need, beyond affordable
banking solutions. ‘We offer value-added
services to get and keep your business
going, such as our free-to-join networking
‘
helps clients with debt
consolidation to ease their
financial difficulties …
’
portal, SimplyBiz.co.za, The Essential Guide
for Small-business Owners, business
registration services and free smallbusiness
seminars.’
Rhode adds that the current economic
climate has highlighted low financial literacy
levels among South Africans who find
themselves highly indebted. 'Nedbank Retail
Banking helps clients with debt consolidation
to ease their financial difficulties, and
financial literacy programmes and tailormade
solutions to empower them to save
and make better financial decisions for the
future.'
‘
Nedbank Retail Banking
To take your financial wellness to the next
level or for more information about Nedbank’s
specialised service offering, email
Pedro Rhode at pedror@nedbank.co.za or
visit www.nedbank.co.za/business.

ADVERTORIAL
see money differently
NEDBANK OFFERS
SPECIALIST SUPPORT
IN POST COVID-19
ENVIRONMENT
Brigitte Ryder, Nedbank’s Provincial
General Manager for Gauteng North,
says that Nedbank believes that
clients need a flexible, resilient financial
partner who understands their
circumstances and aspirations, and provides
relevant solutions and a banking experience
that is hassle-free.
Ryder says that, as South Africa progresses
through the various stages of Covid-19,
Nedbank is working through recovery
scenarios with its clients and prospective
clients while staying true to its brand promise,
which is to use its financial expertise to do
good for individuals, families, businesses and
communities in which it operates.
‘Through the Covid-19 pandemic, we have
elevated our client engagement and
extended tailor-made relief assistance to
many of our clients, equipping and enabling
them to benefit from the various digital and
remote solutions available. This ensures
uninterrupted transactional and
informational access while not
compromising on security,’ says Ryder.
Ryder says that Gauteng North Business
Banking has, over the years, established
‘
Through the Covid-19
pandemic, we have elevated
our client engagement and
extended tailor-made relief
assistance to many of our
clients …
’
itself as a leader in providing banking
solutions to various sectors. ‘These include
the professional services industry, which
values our bespoke funding, investment and
transactional solutions, large manufacturing
concerns covering various sub-sectors, and
the information technology industry. As a
result, we have been shielded from specific
industry slowdowns, while adding to the
financial and business acumen and ‘street
cred’ of our frontline sales and service staff.’
To find out more about how Nedbank can
partner with your business togrowa
greater South Africa, please email
Brigitte Ryder at brigitter@nedbank.co.za
or visit www.nedbank.co.za/business.

ADVERTORIAL
see money differently
SOLUTIONS AIMED AT
CREATING JOBS AND
GROWING THE ECONOMY
Nedbank’s Provincial General Manager for Gauteng West,
Mawande Shugu, explains how Nedbank is committed to
partnering with businesses and the youth for growth.
‘
Small businesses are the mainstay of
the economy. Nedbank has, over the
years, instituted various interventions
aimed at giving support to the smallbusiness
sector. Over and above our Small
Business Services solutions, we provide
small-business owners with support that
goes beyond banking – freeing up their time
to truly focus on running their businesses,’
he says.
Nedbank has built a solid reputation as a
bank for small businesses through initiatives
such as its free-to-join networking portal,
SimplyBiz.co.za, The Essential Guide for
Small-business Owners, business
registration services and free smallbusiness
seminars – all geared to support
small- and medium-sized enterprises.
Shugu is passionate about supporting
South Africa’s youth. ‘I believe it is important
for the business community to invest in our
youth as they are our future. Investing in this
market is crucial for the sustainability of any
business and requires an extensive investment
in agile technological development. At
Nedbank we pride ourselves in developing
products that provide lifestyle benefits and
offerings that enable the financial
‘
I believe it is important for
the business community to
invest in our youth as they
are our future …
’
aspirations of our youth market. For
example, our Unlock.Me Account offers a
zero monthly maintenance fee, with
additional lifestyle benefits perfect for
clients between the ages of 16 and 26,’
he says.
Shugu says that, through an evolving and
agile digital strategy supported by the
Nedbank Money app and the Nedbank
Contact Centre, Nedbank remains
committed to bringing convenience to its
clients by making essential banking services
available 24 hours, seven days a week.
If you wish to tap into our expertise to reach
your personal and business goals, please
email Mawande Shugu at
mawandes@nedbank.co.za or visit
www.nedbank.co.za.

ADVERTORIAL
see money differently
MONEY EXPERTS SERVING
THE TSHWANE BUSINESS
COMMUNITY
Mohammed Salim Kadoo, Nedbank’s Provincial General Manager for
Tshwane and North West, says that a deep commitment to partnership
is what underlies the team's personal and professional values.
‘
Our bigger-picture banking approach
enables us not only to provide you …
with the banking solutions you need,
but also to give you a holistic view of how
our products are connected to create a
framework that yields maximum impact
across every facet of your business and
beyond. We know that success in business is
about partnerships, so we put the building
of deep, lasting, value-adding relationships
at the centre of everything we do. This
means your goals are our goals, your vision
is our vision, and your success is our success
– while you rely on our additional support
that is most needed in times of change and
uncertainty,’ he says.
The bank caters for all industries, but the
Tshwane team has many clients in the
franchising and agricultural sectors. 'The
banking products and services tailored
specifically for these sectors and designed
to achieve overall business efficiency,
profitability and sustainability make Nedbank
one of the most franchise-friendly banks in
South Africa and one of the market-leading
banks in the agricultural space,' says Kadoo.
Nedbank’s highly competitive pricing is
structured to the needs and individual risk
‘
business efficiency, profitability
and sustainability make Nedbank
one of the most franchise-friendly
banks in South Africa …
’
profile and track record of each franchise
business. Products include point-of-sale
(POS) devices and Nedbank’s POSPlus
management system, e-commerce solutions
and cash acceptance devices, as well as a
broad spectrum of tailored financing options.
Nedbank understands that if the various
challenges faced by the agricultural sector
are not addressed, it will threaten economic
growth, food security, employment and
investment. To this end Nedbank has
developed innovative funding solutions
designed to support farmers with sustainable
farming interventions, ranging from water
efficiency mechanisms and cutting-edge
irrigation to renewable-energy financing.
If you are interested in taking your
business to the next level, please email
Mohammed Salim Kadoo at
mohammedk@nedbank.co.za or visit
www.nedbank.co.za/business.
Nedbank Ltd Reg No 1951/000009/06. Authorised financial
services and registered credit provider (NCRCP16).
SPO6013

KEY SECTORS
Overviews of the main economic sectors of Gauteng
Agriculture 26
Mining 27
Energy 28
Oil and gas 29
Transport and logistics 34
Manufacturing 36
Tourism 38
Information and communications
technology 40
Banking and
financial services 41
Development finance
and SMME support 44
Education and training 46
CREDIT: Boogertman and Partners

OVERVIEW
Agriculture
A major starch business is changing hands.
SECTOR INSIGHT
An alternative market
opened in double-quick
time in Midrand.
Tongaat Hulett, best known as a sugar producer, is selling
its starch business (with three milling plants in southern
Gauteng) to the KLL Group, a wholly-owned subsidiary of
Barloworld Logistics Africa. The Meyerton plant is pictured.
The R5.3-billion transaction was in doubt because of concerns
about the value of the business expressed by the buyer in the
context of Covid-19 but the Competition Tribunal in July 2020
approved the deal.
The temporary closure of the Tshwane Market due to the pandemic
brought a quick reaction from RSA Group and Freshling. Within 48 hours
a new facility in Midrand was up and running and on the first day, more
than 340 pallets of fresh produce were available for sale.
The Fresh Produce Market in Johannesburg is South Africa’s
biggest market. The region’s other metropolitan areas, Tshwane
and Ekurhuleni, also have busy markets. The Springs Fresh Produce
Market accounts for 3% of South African market share.
Gauteng’s agricultural sector is concentrated on producing
vegetables. There is commercial farming in the southern sector of
the province (part of South Africa’s maize triangle) and the farming
of cotton, groundnuts and sorghum is undertaken in areas near
Bronkhorstspruit (east) and Heidelberg (in the south).
The province is home to some of South Africa’s biggest
agricultural companies, including AFGRI. Africa’s largest feedlot for
cattle is located in Heidelberg: Karan Beef’s facility can accommodate
120 000 cattle. The feedmill processes 1 400 tons per day and the
associated abattoir in Balfour in neighbouring Mpumalanga
sometimes deals with 1 800 head of cattle per day.
The Kanhym Agrimill in Vereeniging is one of three in the
ONLINE RESOURCES
Agricultural Research Council: www.arc.agric.za
AgriSA: www.agrisa.co.za
Red Meat Producers’ Organisation: www.rpo.co.za
South African Poultry Association: www.sapoultry.co.za
company’s portfolio, which
collectively processes 250 000
tons of animal feed annually.
Kanhym Estates is the largest
producer of pigs in the country.
There are many poultry farm
and production facilities in
Gauteng. Companies include
Astral Foods, RCL Foods and
Daybreak Farms.
A R400-million agro-processing
plant was launched in 2019 in the
Gauteng Industrial Development
Zone (GIDZ). The GIDZ is located at
OR Tambo International Airport and
is intended to encourage exports of
high-value goods.
The Provincial Government
of Gauteng has set up Action
Labs to focus on agriculture
and agro-processing with a
focus on land tenure issues and
improving food security. If food
producers can be linked to the
value chain then township
economies can benefit.
In almost every aspect of the
spatial planning being carried
out by the Gauteng Provincial
Government, agriculture
and agro-processing are key
components, either of Special
Economic Zones (SEZ), industrial
parks or agri-parks. Plans for the
Western Corridor, for example,
include an agro-processing park
and logistics hub. ■
GAUTENG BUSINESS 2020/21
26

OVERVIEW
Mining
AngloGold Ashanti has sold its last South African asset.
The sale in 2020 by AngloGold Ashanti of its Mponeng mine and
Mine Waste Solutions to Harmony Gold for $300-million (about
R4.4-billion) marks the end of an era.
Although the company’s headquarters will continue to be
in Johannesburg and it will be listed on the JSE, its mines are in Ghana,
the Americas and Australia. AngloGold Ashanti was the
successor to the mining company formed by Ernest
Oppenheimer in 1917.
Harmony Gold’s acquisition strategy, including the
purchase from AngloGold of Moab Khotsong mine in 2017,
will result in it being the country’s biggest gold producer.
With 350 000 new ounces coming from Mponeng, it could
produce an annual total of 1.7-million ounces.
Cullinan diamond mine produced 30% more in the
first half of 2019 than it did the year before. Run-of-mine
production increased to 785 444ct. The company is
engaged in an expansion programme called the C-Cut
Phase 1 project. Cullinan is famous for its rare blue diamonds.
The University of the Witwatersrand started life as the South African
School of Mines. The School of Mining Engineering at Wits is now one
of many at the university, but it is the highest ranked in terms of the QS
World University Rankings.
Gauteng is home to most of the research and training bodies
associated with mining. Sibanye-Stillwater is one of many companies
supporting research in the province: the Wits Mining Institute’s Digital
Mining Laboratory (Digimine) is the focus of its funding. AECI, the
explosives and chemicals company, sponsors the Virtual Reality Mine
Design Centre at the University of Pretoria.
The Mandela Mining Precinct is a joint venture between three
government departments and the Minerals Council South Africa
which aims to develop research into mining, showcase the country’s
manufacturing abilities and to continue to create jobs and wealth as ore
bodies are depleted.
Mintek is an autonomous body based in Randburg which receives
about 30% of its budget from the Department of Mineral Resources.
The balance comes from joint ventures with private-sector partners,
ONLINE RESOURCES
Council for Geoscience: www.geoscience.org.za
Minerals Council South Africa: www.mineralscouncil.org.za
Mintek: www.mintek.co.za
National Department of Mineral Resources: www.dmr.gov.za
SECTOR INSIGHT
Harmony Gold’s purchase
of Mponeng mine boosts
its overall volumes.
or is earned in research and
development income, the sale
of services or products and from
technology licensing agreements.
Pretoria University has
a Department of Mining
Engineering, the University of
South Africa offers three national
diplomas in mine-related fields,
the University of Johannesburg
has mine-surveying courses and
the Vaal and Tshwane universities
of technology have engineering
faculties.
The national government’s
Phakisa programme is to be
applied to mining. Intended
to fast-track solutions to
development problems, an
Operation Mining Phakisa Lab has
been set up to create concrete
plans. Similarly, the Provincial
Government of Gauteng has
initiated Action Labs in the
mining sector. ■
27 GAUTENG BUSINESS 2020/21

OVERVIEW
Energy
Companies are generating their own power.
SECTOR INSIGHT
Energy zones could boost
old mining areas.
Credit: Knight Piésold
Areas in the Gauteng province that can no longer rely on
the mining industry to drive their economies could become
focus zones for solar PV projects. Renewable Energy
Development Zones (REDZs) have been allocated in other
provinces (two for solar, one for wind) but the potential for REDZs
in Gauteng is huge, because vast amounts of energy are needed to
drive the country’s biggest economy.
These zones would be developed in line with the national
Integrated Resources Plan (IRP 2019) which the Gauteng Provincial
Government is hoping will enable it to unlock several renewable
energy projects. Other projects include promoting gas usage,
the development of hydrogen fuel-cell technology and the
recommissioning of power stations.
National power regulator, NERSA, has been asked by the National
Minister of Energy to consider granting licences to small-scale power
producers to sell any excess power. The likely granting of these
licences will open up the market and help small manufacturers to
cover the cost of installing generating capacity.
Many companies and institutions are generating their own power. In
Johannesburg, the Northern Wastewater Treatment Works (pictured) has
its own electricity source in a 1.1MW biogas plant. It produces electricity
using cogeneration, which is combined heat and power.
A landfill site at Robinson Deep in Johannesburg has started
generating 3MW of gas. This is the first of five renewable energy projects
that Energy Systems SA has lined up in Johannesburg. At the Cavalier
abattoir in Cullinan, biowaste conversion company ibert provides about
ONLINE RESOURCES
National Energy Regulator of South Africa: www.nersa.org.za
South African Photovoltaic Industry Association: www.sapvia.co.za
South African National Energy Development Institute:
www.sanedi.org.za
a quarter of the power that the
abattoir needs to function.
Absa Bank has followed
up on its decision to take its
central Johannesburg campus
off the national electricity grid.
Investments in a 6 000-panel
rooftop solar system (which cost
R10-million), the synchronisation
of gas and diesel generators
and sophisticated water and
underfloor heating systems
have all contributed to massive
energy savings.
The rooftop solar installation
at Absa’s Pretoria office provides
17% of its electricity needs and
the bank intends rolling out solar
solutions for another five offices
soon in addition to investigating
battery solutions in pursuit of
what it calls “net zero offices”.
One of the biggest roofs
in South Africa is to get one of
the largest solar installations.
Mall of Africa, a joint venture
by Attacq and Atterbury in
Waterfall City, Midrand, will
produce about 7 800 MWh/y
from panels on 45 000 m² of
roof space.
Vukile Property Fund has
decided to equip all of the malls
in its portfolio with rooftop
solar panels. Retrofitting of light
fittings has also taken place, to
improve energy efficiency. ■
GAUTENG BUSINESS 2020/21
28

OVERVIEW
Oil and gas
Various types of gas are available as fuels.
SECTOR INSIGHT
Rebranded Total petrol
stations will sell liquified
natural gas.
Renergen, which owns rights to a field of liquified natural gas
(LNG) in the Free State, has started taking orders for its product
from logistics companies. Bulk Hauliers International Transport
(BHIT) has signed an agreement to take LNG to fuel 50 of its
trucks, which should lead to lower operating and maintenance costs.
South African Breweries is another client.
The first two dedicated filling stations will be Total stations in
Johannesburg and Durban that will be rebranded in green. One station
is planned for Harrismith on the busy N3 highway which links the cities.
Delta Natural Gas (DNG) Energy announced in 2019 the rollout
of 400 natural gas refuelling sites across South Africa with a focus
on the taxi and logistics sectors. The first sites will be Johannesburg
and Tshwane.
The Provincial Government of Gauteng has announced that it wants
to take “decisive steps” to increase the availability and use of gas.
NGV Gas, a subsidiary of CNG Holdings, is promoting compressed
natural gas (CNG) as a versatile alternative across all sectors. Another
subsidiary, CNG Technology supplies equipment for filling stations and
distributions, converts petrol and diesel-powered vehicles and advises
companies on conversions.
The major economic sectors using gas are the metals sector and the
chemical, pulp and paper sector. Brick and glass manufacturers are also
big consumers. National policy is driving a switch to the use of gas. A
national Gas Utilisation Master Plan (GUMP) is being developed.
Transnet Pipelines has completed a sophisticated new multiproduct
pipeline (NMPP) between the coast and Gauteng which is
ONLINE RESOURCES
National Energy Regulator of South Africa: www.nersa.org.za
South African Oil & Gas Alliance: www.saoga.org.za
South African Petroleum Industry Association: www.sapia.co.za
bringing a range of products to
the manufacturing heartland
of South Africa. The company
operates a 3 800km network
of underground, high-pressure
petroleum and gas pipelines
throughout the eastern parts of
South Africa.
The country’s biggest supplier
of industrial heating fluids, FFS
Refiners, supplies this product
out of a plant at Chloorkop while
the company’s Evander site is
responsible for heavy fuel oils.
Evander also has a tank with
installed capacity of 8 500m³.
Egoli Gas has a pipeline
network that extends over
1 200km in and around
Johannesburg and the company
has 7 500 domestic, industrial
and commercial customers.
Vopak completed a new storage
terminal in Lesedi on the East
Rand in 2017 to receive product
from the NMPP. The company
that owns Egoli Gas, Reatile, has a
30% stake in Vopak and a stake in
CNG Holdings.
The regulator and promoter
of oil and gas exploration in South
Africa, Petroleum Agency South
Africa, has awarded coalbedmethane-gas
and natural
gas rights in the provinces on
Gauteng’s border, Free State and
KwaZulu-Natal. ■
29 GAUTENG BUSINESS 2020/21

a key
As stated in the National Development Plan (NDP), the government’s intention
is to “enable exploratory drilling to identify economically recoverable
coal seam and shale gas reserves, while environmental investigations will
continue to ascertain whether sustainable exploitation of these resources
is possible: “If gas reserves are proven and environmental concerns
player
alleviated, then development of these resources and gas-to power projects
should be fast-tracked.” The plan also calls for the need to incorporate a
greater share of gas in South Africa’s energy mix, through importing liquefied
natural gas (LNG), using shale gas if reserves prove commercial, and
developing infrastructure
for the import of
n a vital sector
LNG, mainly for power
production, over the
short to medium term.
South Africa’s oil and
gas exploration and
production sector offers
an excellent investment
Petroleum Agency SA plays an important role in developing South Africa’s gas
market by attracting qualified and competent companies to explore for gas in
the country, as well as monitoring and regulating their activities. In addition
to ensuring operators always comply with the law, a major area of focus is
increasing the inclusion of historically disadvantaged South African-owned
entities in the upstream industry. South Africa needs large discoveries of indigenous
gas as well as fair access to opportunities and social licence to develop
a healthy gas market.
Currently, natural gas supplies about just 3% of South Africa’s primary energy.
A significant challenge facing the development of a major gas market in South
Africa is the extreme dominance of coal as
a primary energy source, and industry’s historic
reliance on coal-generated electricity.
A lack of extensive gas transport and reticulation
infrastructure goes hand in hand
with this, while other challenges include
uncertainty about volumes of indigenous
gas available to industry; security of supply;
switching and conversion costs; gas pricing;
and negativity around the ongoing use of
fossil fuels. End users require certainty before
committing, while explorers look for a
guaranteed market. On a more positive note,
opportunities for gas lie in the realisation
of South Africa’s NDP and the Integrated

Resource Plan (IRP). Both call for indigenous hydrocarbons – conventional
and unconventional – and independent power production to play an
increasing role in the nation’s energy mix.
The national power utility also intends to replace coal-fired power stations
with gas-fired counterparts, in line with the vision of the NDP. The advent
of gas-fired power stations will represent a ready, indigenous market for
operators that make discoveries of gas in South Africa, ensuring it will be far
easier to monetise smaller discoveries that may otherwise have remained
undeveloped. As custodian, Petroleum Agency SA ensures that companies
applying for gas rights are vetted to make sure they are financially qualified
and technically capable. Applicants also need to have a good track
record in terms of oil and gas exploration activity, as well as regard for
the environment. This applies to both local and foreign companies. Oil and
gas exploration requires enormous capital outlay and can represent a risk
to workers, communities and the environment. Applicants are therefore
required to prove their capabilities and safety record and
must carry insurance for environmental rehabilitation.
SOCIAL AND LABOUR PLANS
In addition, all planned activities can only be carried out
after completion of an environmental impact assessment
and under an approved environmental management
plan, after consultation with the public as well
as interested and affected parties. Explorers are also
required to contribute to skills development through the
agency’s Upstream Training Trust. Oil and gas exploration
in South Africa is regulated in terms of the Mineral
and Petroleum Resources Development Act (MPRDA) of
2002, which stipulates that applicants for production
rights are required to submit social and labour plans
(SLPs) to assist in transforming the industry, promoting
employment and advancing social and economic welfare in South Africa.
Applicants must develop and implement, where applicable, comprehensive
SLPs that cover human resources-development programmes, community
development, housing and living conditions, and employment equity. In
addition to the MPRDA, other acts also regulate the sector – including
the National Environmental Management Act, the Royalties Act, the
Mining Titles Registration Act and the National Water Act. These acts and
regulations have served the upstream industry well and are all in line with
international standards.
Minister of Mineral Resources Gwede Mantashe and President Cyril
Ramaphosa have recently stated that oil and gas exploration and production
activities should have their own standalone legislation, separate from
that applicable to hard mineral mining. This legislation is being drafted and
the Agency is part of the team at the Department of Mineral Resources
working on it. In today’s world, oil and gas remain the most critical of energy
resources, and Petroleum Agency SA is in full support of those entering
the South African oil and gas exploration and production industries. The
Agency is fully committed to ensuring that our government and policy-makers
sustain the sector for the benefit of all involved and will do everything
in its power to advance the industry.
OUR VISION
A diverse upstream industry con-
tributing to energy security through
sustainable growth in exploration
and development of oil and gas.
OUR MISSION
To promote, facilitate and regulate
exploration and sustainable devel-
opment of oil and gas contributing
to energy security in South Africa.
ABOUT PETROLEUM AGENCY SA
Petroleum Agency SA was established in
1999 by Ministerial directive and is
mandated through the Mineral and
Petroleum Resources Development Act,
2002 (Act No.28 of 2002) together with
the National Environmental Management
Act, 1998 (Act No.107 of 1998).
These Acts provide for Petroleum Agency
SA to evaluate and promote oil and gas
potential exploration and production
activities in South Africa, to regulate oil
and gas exploration and the production
industry and to archive all geotechnical
data produced through oil and gas
exploration. The Agency acts as an
advisor to the government on issues
regarding oil and gas exploration and
production and carries out special
projects at the request of the Minister.

OVERVIEW
Transport and logistics
Achieving ambitious export goals will boost the logistics sector.
SECTOR INSIGHT
An African free trade
agreement is certain to
increase transport volumes.
Plans to expand exports in a variety of sectors will rest heavily
on the transport and logistics sector being up to the task of
handling increased volumes.
A total of 82% of South Africa’s air cargo is transported
through OR Tambo International Airport and Gauteng has several
cargo and freight handling facilities well-equipped to deal with rail
and road deliveries and despatches.
A specific goal of the Provincial Government of Gauteng is to
make the Transnet Tambo-Springs Logistics Gateway the biggest
inland logistics hub and dry port in Africa by 2030.
The Tambo-Springs Gateway near Katlehong is an inter-modal
facility which can transfer containers from rail or road to storage
facilities and ultimately to the customer. Existing freight rail lines run
through the site and link it to the seaports of Durban, Cape Town and
Ngqura (Port Elizabeth). The aim with this new facility is to improve
efficiency. It is run by the Tambo Springs Development Company.
The intention is to add to the port:
• a logistics park (transportation, processing, manufacture,
warehousing and distribution).
• a business park with a retail element.
• a residential component.
• an agro-industrial section.
At an Innovation in Transport Seminar held in 2019, the provincial
government stressed the importance of digital competence (“smart
mobility”) in the transport sector as ever-more complex transactions
take place across international borders. This will only grow as the
effect of the African Continental Trade Agreement (AfCTA), signed
in 2019, comes into effect, allowing for greater and freer trade across
the continent.
The health of the transport
and logistics networks of the
province is key to any economic
growth plans. The provincial
government has identified
logistics hubs, the road network,
intermodal facilities, rolling
stock, and buses and taxis as
key components of the drive
to transform, modernise and
reindustrialise the regional
economy.
Road infrastructure projects
are intended to bring in other
major investments and connect
new economic nodes such as
the Tambo Springs Logistics
Gateway, the planned new
megacities (Vaal River City
and Lanseria), the new Special
Economic Zones with current
economic nodes and existing
townships. In the short term, 18
major roads will be rehabilitated,
upgraded and constructed,
especially in Sedibeng and the
West Rand.
The concept of a Gauteng
City Region is key to much
of the planning for the area’s
economic future. Infrastructure
development is underway
along corridors, each of which
has a specific focus and it is
instructive that each of them
has a transport and/or logistics
element.
GAUTENG BUSINESS 2020/21
34

OVERVIEW
The corridors and focus areas are:
• Thami Mnyele: transport, BRT, M&T Development and Plumbago
Industrial Park.
• OR Tambo Aerotropolis: creative sector, technology, research and
development and logistics.
• Thelle Mogoerane: logistics, Carnival Junction, OR Tambo inland
port, Prasa rolling stock manufacturing facility run by Gibela Rail
Consortium.
The OR Tambo International Airport Special Economic Zone (ORTIA
SEZ) has diversified beyond the existing Jewellery Manufacturing
Precinct in the shape of a R400-million agro-processing plant.
The concept of an aerotropolis is for the airport to become a
hub of economic activity in the same way that cities anchor various
economic sectors that grow up around the centre.
Airports
OR Tambo International Airport caters for more than 20-million
passengers every year.
Lanseria Airport has grown in importance with kulula, FlySafair
and Mango using the airport located to the north of Johannesburg.
It is a convenient landing point for travellers bound for regional
centres like Rustenburg in the North West.
Four airlines continued to offer flights during the Covid-19
lockdown: FlySafair, Airlink, Cemair and Mango. Three airlines went
into business rescue: SAA, SA Express and Comair (which is a British
Airways franchisee and runs the low-cost kulula brand).
Gauteng has several smaller airports that host mostly
commercial aircraft:
• Rand Airport in Germiston.
• Grand Central Airport in Midrand.
• Wonderboom Airport in Pretoria North.
• Waterkloof Air Force base, south of Pretoria.
The Commercial Aviation Manufacturing Association South
Africa (CAMASA) reports that 50 companies are active in the
sector, employing more than 3 000 people in highly skilled
jobs. Almost all the activity is around Johannesburg and Cape
ONLINE RESOURCES
Airports Company South Africa: www.acsa.co.za
Road Freight Association of South Africa: www.rfa.co.za
South African Association of Freight Forwarders: saaff.org.za
South African National Road Agency: www.sanral.co.za
Tambo Springs Logistics Gateway: www.tambosprings.co.za
Town and the sector (which
encompasses aero-structures
and systems, manufacturing,
design and engineering) is
responsible for R3-billion in
exports every year.
Rail
The Gautrain, a high-speed
train linking the centre of
Johannesburg, Sandton, ORTIA
and Pretoria, has been successful
in terms of its original brief.
But the Gautrain is expensive
and not designed to cater for
mass public transportation.
A feasibility study has been
completed on the expansion
of the Gautrain and its full
integration into the public
transport system. New areas
that will be covered according
to the plan include Mamelodi
in Tshwane, Boksburg in
Ekurhuleni, Randburg-Lanseria
in Johannesburg, Mogale City
and Syferfontein in the West
Rand and Roodepoort/Jabulani.
The Gautrain has reactivated
property development in
many areas around its stations
and made sites near stations
attractive to developers and
investors.
Transnet Rail Engineering
(TRE) has a major presence in
Gauteng and the metropolitan
lines that ferry commuters
are run by the Passenger
Rail Agency (PRASA). The
Wits Metrorail system serves
Johannesburg and its surrounds.
Park Station, in the north of the
central business district, is the
largest station in Africa and acts
as the metropolitan hub. ■
35 GAUTENG BUSINESS 2020/21

OVERVIEW
Manufacturing
The OR Tambo Aerotropolis is attracting manufacturing.
The Eastern Corridor of Gauteng, centred on the metropole
of Ekurhuleni, is consolidating its leading position in
manufacturing by leveraging the advantages of hosting
the OR Tambo International Airport and related Special
Economic Zones and industrial parks.
Ekurhuleni Metropolitan Municipality has the greatest
concentration of manufacturing enterprises, especially between
Wadeville and Alrode, south-west of Alberton. Germiston is the
country’s biggest rail junction and Transnet Engineering has invested
hundreds of millions of rands in new equipment at its facility there.
The Provincial Government of Gauteng has tabled plans to
bolster manufacturing capacity in the province’s western areas. The
priorities are mining and mineral beneficiation, capital equipment
and machinery, agriculture and agro-processing, tourism, retail
and economic development in townships. The industrial parks at
Babelegi, GaRankuwa and Ekandustria are to be renovated.
Manufacturing contributes 14% to Gauteng’s real economy
output and provides 40% of South Africa’s manufacturing overall.
Manufacturing related to the mining industry, historically the
lynchpin of the Gauteng economy, is still important.
Employer organisations like the Manufacturing Circle and
government at national and provincial levels are engaging in
initiatives to grow the sector, including incentives such as the
Manufacturing and Competitiveness Enhancement Programme
(MCEP) of the Department of Trade, Industry and Competition (dtic).
Sectors that have received support include plastics,
pharmaceuticals, chemicals, metal fabrication, transport equipment
and agri-processing. The Support Programme for Industrial
Innovation (SPII), run by the Industrial Development Corporation
(IDC) on behalf of the dtic, promotes technology development.
Another IDC initiative has allocated R23-billion over three
years to support the Black Industrialist Programme to help existing
entrepreneurs grow their businesses.
Venter Consulting Engineers, manufacturer of precision
engineering equipment, recently attracted the attention of Italian
company Danieli and won a contract to create two sophisticated
globoid gear sets. Also called the hour-glass gear, this technology
allows for an increased number of teeth that are simultaneously in
mesh and improves the conditions of force transmission. A handful of
firms globally are in a position to make these gears, which can stand
massive amounts of stress.
SECTOR INSIGHT
A precision engineering firm
is gearing up for international
contracts.
Packaging company Nampak,
which in 2019 celebrated its 50th
year as a listed company on the
JSE, has metals, plastic, paper
and glass operations at various
locations. It is the market leader
in beverage cans. The country’s
biggest glass producer, Consol
Glass, has facilities in Clayville,
Wadeville and Nigel.
Household products
manufacturer Unilever
represents an example of the
lighter industrial capacity of the
East Rand. Kellogg’s, Kimberly-
Clark South Africa and Procter
& Gamble all have significant
manufacturing capacity in
the area. Corrugated paper
manufacturer Corruseal has
purchased the Enstra Mill in
Springs from Sappi, giving it
greater control of production.
The southern portion of
Gauteng around Vanderbijlpark
and Vereeniging is synonymous
with steel production. Flat iron
is made at the large plants
of ArcelorMittal. Scaw Metals
has a chain-making factory in
Vereeniging.
There are 35 aluminium
processing firms in Gauteng,
involved in both secondary
processing to produce foils,
GAUTENG BUSINESS 2020/21
36

OVERVIEW
cans, bars, rods and sheets, with final
fabrication in the form of die-casting
and sheet metal work. Within Gauteng,
the automotive and packaging
industries are the chief consumers of
these products.
AECI is a large manufacturing
company with its roots in the mining
industry. It comprises two principal
divisions: AEL Mining Services (with
a large factory site at Modderfontein
south of Johannesburg) and Chemical
Services, which presides over 20
separate companies (including Senmin,
the group’s mining chemicals company).
More than half of the companies
operating in the food and beverage
sector in South Africa are in Gauteng,
including Nestlé, Tiger Brands, Pioneer
Foods, RCL, AVI and Astral. There are
approximately 4 000 food-processing
companies in the province, employing
more than 100 000 people.
Although there are more than 200 pharmaceutical firms in
the country, large companies dominate the field, with Aspen
Pharmacare (34%) and Adcock Ingram (25%) the two key players,
followed by Sanofi, Pharmaplan and Cipla Medpro. Among the
other big international brands active in Gauteng are Merck, which
has a 55 000m² plant at Modderfontein, and Pfizer SA, which runs a
laboratory in Sandton amongst its facilities in South Africa.
All of Gauteng’s large automobile manufacturers are investing
in new model production. Nissan is spending R3-billion on
production of the Navara pick-up vehicle. Other major investments
include R3-billion by Ford at Silverton, R6.1-billion by BMW at
Rosslyn, R260-million by BMW on an expanded campus at Midrand.
UD Trucks, a part of the Volvo group, will assemble the Croner
heavy commercial vehicle at Rosslyn.
Gauteng is also home to a strong automotive components
industry, together with several bus and truck assembly plants.
ONLINE RESOURCES
Centre for Advanced Manufacturing: www.cfam.co.za
Chemical and Allied Industries’ Association: www.caia.co.za
Gauteng Department of Economic Development:
www.ecodev.gpg.gov.za
Manufacturing Circle: www.manufacturingcircle.co.za
CREDIT: Venter Consulting Engineers
These include Scania, TFM
Industries and MAN Truck and
Bus South Africa, as well as the
Chinese truck manufacturer
FAW, which owns an assembly
plant in Isando. Beijing
Automotive Works (BAW)
assembles taxis at Springs.
Armoured cars are also
produced. The Paramount
Group has signed a contract
to supply the United Arab
Emirates with its latest
armoured personnel carrier, the
Mbombe 4. Paramount South
Africa has been created to work
in the local market.
DCD Protected Mobility
manufactures armoured cars in
Boksburg, which are branded
as Vehicle Mounted Mine
Detectors. In nearby Benoni,
BAE Systems OMC designs
and manufactures protected
vehicles. ■
37 GAUTENG BUSINESS 2020/21

OVERVIEW
Tourism
Tourism operators are determined to rise again.
Credit: Marriott International
When the Marriott International hotel group closed three
of its South African hotels during the Covid-19 lockdown,
Tsogo Sun Hotels, which owns a controlling stake in all
three hotels, stepped up its commitment by agreeing to
bring them into its portfolio, keep them open and run them.
One of these hotels is the The Mount Grace in the Magaliesberg
which was developed by the Brand family and was the sister hotel to
The Grace in Rosebank. Tsogo bought and restored The Grace in 2015
and it currently operates as 54 on Bath. The Tsogo group believes that
demand for conferencing, weddings and shorter family getaways
will grow and that The Mount Grace, with its close proximity to
Johannesburg, is in a good position to respond to those markets.
Tsogo Sun Holdings split its casino and hotel operations in 2019
in order to unlock value in the two sectors. With a market cap of
R25-billion, Tsogo is the country’s biggest hotel group. It has 36
hotels and three casinos in Gauteng. The hotel brands cover four
market segments, and they include a handful of stand-alone hotels
such as the Palazzo (at Montecasino) and the boutique hotel in
Rosebank. SunSquare, Southern Sun Hotels, Southern Sun Resorts,
Garden Court and StayEasy are among the group’s brands.
SECTOR INSIGHT
Tsogo Sun Hotel took over The
Mount Grace during lockdown.
The move by Marriott
International into the South
African market was seen as
significant, and it retains most
of its properties. In partnership
with the Amdec Group, Marriott
spent about R1-billion on the
Marriott Hotel Melrose Arch and
Marriott Executive Apartments
Johannesburg Melrose Arch.
Buying into Protea Hotels
has also given Marriott access to
other African countries.
Although all projections
about the tourism sector and
GAUTENG BUSINESS 2020/21
38

OVERVIEW
its potential for growth and for job creation were short-circuited by
the Covid-19 pandemic, the fact remains that the sector can grow
quickly and it is a good job creator.
Growing Gauteng Together (GGT2030) is a plan of action
formulated by the Gauteng Provincial Government which intends to
transform, modernise and industrialise the provincial economy. The
expansion of the tourism sector is seen as one of the key methods of
achieving those goals. This was emphasised when the 2020 State of
the Province Address included Tourism and Hospitality as one of 10
“high-growth” sectors.
In June 2020, as part of preparation for the reopening of the
sector, the Gauteng Tourism Authority (GTA) launched its first
webinar in a four-part series of targeted engagements. It was agreed
that local tourism would have to take up the slack that occurred with
the collapse of international arrivals and that safety protocols were
vital to restoring confidence.
Virtual tours have been taken up by heritage operators such as
Constitution Hill and Liliesleaf Farm and this option is likely to grow
as people in other countries seek out a South African experience free
from any worries.
Founder and CEO of the heritage site honouring the South
African liberation movement, Nicholas Wolpe, said, “There are
now over 1 400 hours of archive material that we will be taking
online and through virtual tours and information banks that can be
accessed off-site.”
The CEO of Emerald Resorts, Mark Hands, commented, “We are
repackaging our strategy for visitors to include more digital offerings
as we will have to limit physical numbers as social distancing may
well be with us into 2022 to manage infections brought about by
large groups of people.”
A strong theme at the webinar was solidarity. “We have to adapt
to the new normal even as it is unknown at the moment,” said Fezile
Ngqobe, acting CEO for GTA. “What we do know is that as a sector, we
are all in this together.”
The Legacy Group was one of the first to introduce apartments
to the hotel development mix in South Africa when it added the
Davinci Hotel on Nelson Mandela Square to its portfolio just before
South Africa hosted the soccer World Cup in 2010. The effects of the
Covid-19 pandemic may lead to this trend growing within other
hotel groups.
The Legacy collection includes the Michelangelo Hotel and
Michelangelo Towers. The Davinci was designed with 166 hotel
ONLINE RESOURCES
Cradle of Humankind: www.maropeng.co.za
Gauteng Tourism Authority: www.gauteng.net
Johannesburg Tourism Company: www.joburgtourism.com
rooms, 54 apartments in the
upper reaches, with a further
four luxurious penthouses
above that.
Culture and history
Heritage tourism is a strong
component of the tourism
offering in Gauteng. The
Cradle of Humankind is a
UNESCO World Heritage
Site and attracts thousands
of visitors every year to the
interactive visitor’s centre at
Maropeng. The Sterkfontein
Caves have extraordinary
displays, showing the origins
of humanity through artefacts
such as the 2.1-million-yearold
skull known as Mrs Ples.
The Origins Centre at the
University of the Witwatersrand
provides insights into the
origins of mankind through art
and science. The Centre hosts
superb representations of Khoi
and San rock art.
History relating to the
struggle against apartheid
centres on attractions such
as the moving exhibitions
housed at the Apartheid
Museum and the history of
the battle for human rights
and democracy embodied in
Constitution Hill.
Kliptown in Soweto is
the site of the signing of the
Freedom Charter. Another
site where South Africa’s
history is on display is at
Freedom Park, a sprawling
complex of museums, open
spaces and memorials on a
hillside overlooking Pretoria in
Tshwane. ■
39 GAUTENG BUSINESS 2020/21

OVERVIEW
Information and
communications technology
Financial services is leading the way in ICT investment.
The biggest investors in new technology are banks and other
players in the financial sector, where technology is rapidly
lowering the barriers to entry for new businesses. This trend
is illustrated by the rapid development of new exchanges
which are based on sophisticated ICT hardware and software.
One of the provincial government’s stated goals is to get several
ICT initiatives to work together. If the work of the Innovation Hub,
several Ekasi laboratories, the Tshimologong precinct, universities and
research institutes could be integrated, a more powerful ecosystem
would be the result.
A High-Tech
Special Economic Zone
(SEZ) is another idea that
is being pursued. Making
broadband connectivity
and free Wi-Fi available
Actonville Primary School in Benoni has received
a donation of laptops from data protection and
management company Commvault.
to poor households in
the province is another
task. Gauteng’s Premier
will appoint a Digital
Transformation Advisory Panel to assist in driving these initiatives.
Various large spatial plans for the province include an element
whereby these new cities or settlements will be built as “smart cities”.
Johannesburg is now one of two South African cities to host a
Microsoft Azure data centre.
The Industrial Development Corporation (IDC) estimates that
spending on cloud services in South Africa will reach R11.5-billion
by 2022, nearly three times its level in 2017 (Tech Central). This trend
could generate more than 100 000 new jobs.
The Council for Scientific and Industrial Research (CSIR) in Pretoria
hosts a new body aimed at preparing South Africa for the Fourth
Industrial Revolution (4IR), the South African Affiliate Centre of the
World Economic Forum.
With several global companies choosing to station their
South African headquarters in Gauteng, the province is well
ONLINE RESOURCES
eKasiLabs: www.theinnovationhub.com
Independent Communications Authority: www.icasa.org.za
Technology Innovation Agency: www.tia.org.za
SECTOR INSIGHT
Smart cities are planned.
connected. More than 1 500
kilometres of network fibre has
been connected throughout
the province, with 1 066 sites
such as schools, health facilities,
libraries and community centres
giving community members
and entrepreneurs the chance
to be connect with the digital
world. A Gauteng Growth and
Development Agency (GGDA)
subsidiary, the Innovation Hub,
has a programme called eKasiLabs
which supports entrepreneurs
and young people with good
business ideas.
The “Tshepo 1 Million”
campaign links the provincial
government with the successful
Harambee Youth Employment
Accelerator and more than 40 large
companies. Both Johannesburg
and Tshwane have free Wifi
networks with Tshwane’s covering
780 zones in places such as libraries,
educational institutions and clinics.
The Small Enterprise Development
Agency (Seda) runs
the SoftstartBTI ICT incubator
in Midrand and Tuksnovation, a
high-tech incubator, at Pretoria
University.
Private mobile communications
company Vodacom has
pledged to spend R50-billion
on network infrastructure in rural
areas. ■
GAUTENG BUSINESS 2020/21
40

Banking and financial
services
Banks are looking at insurance and funeral policies.
OVERVIEW
The financial-services industry contributes 21% to Gauteng’s
gross domestic product.
The revitalised African Bank, which was put under
curatorship in 2014 by the Reserve Bank, is making a play
for new customers with an interesting offering that does not rely
so much on digital wizardry as on presenting the customer with
enhanced banking facilities.
African Bank has created an account that allows up to five
additional accounts to be created in the name of the main
account. Fees are only charged for drawing cash or at the time of
a transaction. There are no monthly fees for any of the accounts
which can be either for saving or transactional. Each user has his
or her own card and monies can be moved between accounts,
ideal for families.
Sanlam has entered two partnerships in the insurance market.
African Rainbow Life has launched life cover policies in the low and
middle-income market, in association with Sanlam and African
Rainbow Capital. Sanlam is also in a venture with Capitec. Financial
Mail quoted Capitec CEO Gerrie Fourie in 2019 saying that the bank
was selling 3 000 funeral policies a day.
In 2017 Tyme Digital received a licence to run a bank. By
early 2019, TymeBank was available in 500 Pick n Pay and Boxer
stores and more than 50 000 customers around South Africa
had an account.
Second to market among the country’s new banks was
Discovery Bank, which officially launched in March 2019. Discovery
Bank applies the behavioural model it uses in its health business to
reward good financial behaviour.
The decision by pharmaceutical giant Aspen Pharmacare
to conduct a second listing on one of South Africa’s newest
exchanges, A2X, suggests good timing by the people behind the
latest trend in the country’s financial services sector.
SECTOR INSIGHT
Discovery Bank is using
the behavioural model
pioneered by its health
business.
A2X has attracted nearly
20 companies in a wide range
of sectors in less than two
years, with a primary focus
on secondary listings. Patrice
Motsepe’s African Rainbow
Capital is an investor in A2X.
Of the four new exchanges,
Equity Express Securities
Exchange (EESE) trades in Black
Economic Empowerment
(BEE) while ZARX and 4AX are
targeting companies that are
not listed elsewhere. ZARX has
agricultural holding companies
like TWK and Senwes among
its first clients. The newcomers
all promise to use the latest
technology to make trading
simpler, quicker and cheaper.
The JSE is the world’s 19thbiggest
exchange and nearly 400
companies are listed on the JSE
or AltX, the JSE-owned exchange
for smaller companies. ■
ONLINE RESOURCES
Association for Savings and Investment South Africa: www.asisa.org.za
Chartered Institute of Government Finance, Audit and Risk Officers: www.cigfaro.co.za
Financial Sector Conduct Authority: www.fsca.co.za
41
GAUTENG BUSINESS 2020/21

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OVERVIEW
Development finance and
SMME support
Government pledges to spend R4-billion with SMMEs annually.
Credit: 5M2T.
In a drive to spur economic development in Gauteng’s
townships, a Township Economic Development Bill will do away
with restrictive bylaws. At the same time, taxi ranks are going
to be rezoned and developed to allow for the growth of retail
outlets and services such as mechanics and panel-beaters.
Data company 5M2T (Five minutes to town) has started offering
sophisticated information about the township market. From how
many spazas in Soweto have refrigeration units (4 700) to brand
loyalty, 5M2T covers 60 000 spazas, salons, barbers and other
informal trade outlets in an “in-market audit”.
Gauteng has 14 registered co-operative banking institutions
serving over 16 000 member-owners, with over R100-million in
savings and R150-million in assets. The township market of about
250 000 township households holds enormous potential for
collective buying.
The Gauteng Growth and Development Agency (GGDA) is
linking large companies with small businesses at Special Economic
Zones (SEZs). The aim is to create a pipeline for SMMEs and to
entrench localisation in sectors such as the automotive industry.
The Incubation Centre at Nissan’s assembly plant in Rosslyn
north of Pretoria hosts eight new businesses at a time. They receive
support through subsidised rental and mentorship and training.
The Automotive Industry Development Centre (AIDC), a subsidiary
of the Gauteng Growth and Development Agency (GGDA),
SECTOR INSIGHT
A Township Economic
Development Bill aims to
reduce red tape.
manages the centre. The Jobs
Fund contributes to financing
the project.
The City of Johannesburg
runs seven SMME hubs where
office space, WiFi and advice
and training are available for
small business operators.
About half of South Africa’s
formal SMMEs operate in
Gauteng and more than half
are in the wholesale and retail
sector and the accommodation
sector. The next most popular
sectors are community, social
and personal services.
The Provincial Government
of Gauteng has pledged to
GAUTENG BUSINESS 2020/21
44

OVERVIEW
spend R4-billion per annum on goods and services through 2 000
township businesses. Over the five years to 2025, there will also be
support for 500 co-operatives and for 50 emerging black farmers
and 20 black agro-processors to scale up their businesses.
The National Department of Small Business Development
(DSBD) has several programmes to assist SMMEs and co-operatives.
These include:
• The Black Business Supplier Development Programme, a costsharing
grant to promote competitiveness
• The Co-operative Incentive Scheme, a 100% grant.
The Small Enterprise Development Agency (Seda) is a subsidiary
of the DSDB and gives non-financial support to entrepreneurs
through training, assistance with filling in forms, marketing and
creating business plans. It helps small businesses draft applications
for loan finance. Several of Seda’s technology incubators
are in Gauteng.
The National Gazelles is a national SMME accelerator jointly
funded by Seda and the DSBD.
Businesses can receive up to R1-million for training, productivity
advice, business skills development and the purchase of equipment
on the Gazelles programme. The Industrial Development
Corporation (IDC) supports SMMEs either by disbursing loans or by
taking minority shares in enterprises and giving advice.
The National Department of Labour has a programme to
support people with disabilities, the Sheltered Employment
Factories initiative.
The Enterprise Investment Programme (EIP) of the National
Department of Trade, Industry and Competition (dtic) is another
support programme. The Shanduka Black Umbrellas incubator helps
entrepreneurs convert their good ideas to sustainable business practice.
Private sector
Agribusiness and agro-processing are among the sectors that are
targeted by the Masisizane Fund for loan financing. The others are
franchising/commercial and supply chain/manufacturing. Training
is offered through a Business Accelerator Programme. As a nonprofit
initiative of the Old Mutual Group, the fund focusses on the
cash flow of potential businesses rather than insisting on security
in the form of property.
ONLINE RESOURCES
Gauteng Growth and Development Agency: www.ggda.co.za
National Empowerment Fund: www.nefcorp.co.za
Small Enterprise Development Agency: www.seda.co.za
All the major banks have
SMME offerings. Standard
Bank’s Community Investment
Fund (CIF) initiative extends
loans to informal businesses.
The CIF has distributed more
than R7-million to more than
630 businesses through its six
funds in three provinces.
Nedbank has an enterprisedevelopment
product that
supports businesses with a
turnover up to R35-million
with at least 25% black
ownership.
Private companies also
support SMMEs through their
buying chain. Woolworths
is funding TechnoServe to
ensure that small tomato
growers can grow produce
that will meet the demanding
standards of the retailer,
and to help them expand
production. A regular supplier
to Woolworths, Qutom, assists
with the project.
The Shanduka Black
Umbrellas incubator helps
entrepreneurs convert their
good ideas to sustainable
business practice. DRA Minerals
is putting R3.8-million into the
programme over two years.
Anglo American Zimele,
which runs four enterprise
development and investment
funds, helps start and
expand SMMEs. Since the
introduction of enterprise
hubs, the number of projects
has grown very quickly and
Zimele has processed more
than R500-million in loans and
two applications are received
every day. One of Zimele’s
small business hubs operates
out of Vanderbijlpark. ■
45
GAUTENG BUSINESS 2020/21

OVERVIEW
Education and training
Skills training is a public and private priority.
Wits Business School
In response to a demand for a more skilled workforce, the Provincial
Government of Gauteng has promised by 2025 to establish in every
district at least two schools of specialisation linked to the 10 highgrowth
sectors that have been identified.
Public libraries and community centres will become places
where online courses in artisan and digital skills will be readily
available. The possibilities of two large institutions being harnessed
in the creation of a university-based economic complex are being
explored in Sedibeng where the Vaal University of Technology and a
campus of the North-West University are already major contributors
to the district.
The rapid expansion which characterised the early stages of the
development of the Curro Group has been halted by Covid-19 but the
private education company has still committed itself to expenditure
of R1-billion in 2020. This money will be spent on expanding existing
infrastructure. Curro will continue to acquire schools and focus on
newer brands such as DigiEd and Curro Private Colleges, which offer
vocational courses.
A focus on water and energy underpins the newly-established
Knowledge Pele Academy in Kramerville, Johannesburg. Independent
SECTOR INSIGHT
Curro Group will spend
R1-billion in 2020.
power producer Pele Green
Energy aims to develop skills and
entrepreneurship in rural, periurban
and township communities.
The KP Academy has formulated
energy and water SETA-approved
courses and runs artisan training
programmes, learnerships, short
courses and workshops.
Technical and Vocational
Education and Training (TVET)
colleges are concentrating on 13
trade areas, including bricklayers,
millwrights, boilermakers and
riggers. Gauteng has eight TVET
colleges.
C
M
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CM
MY
CY
CMY
K
GAUTENG BUSINESS 2020/21
46

OVERVIEW
The National Skills Authority (NSA) works
with Sector Education Training Authorities
(SETAs) in carrying out the National Skills
Development Strategy (NSDS). The Human
Resource Development Council of South Africa
(HRDCSA) is an over-arching body working on skills
development and training.
Tertiary
Three of South Africa’s top five business schools are
in Gauteng: the Wits Business School, the University
of South Africa’s (Unisa’s) Graduate School of
Business Leadership and the Gordon Institute of
Business Science, on the Sandton campus of the
University of Pretoria.
Eighty percent of the 1 230 lecturers and
researchers at the University of the Witwatersrand
(Wits) have post-graduate degrees, and 27 A-rated
scientists work there. The university offers studies in
more than 40 schools in five faculties.
Pretoria hosts the head office of distance
university Unisa, which has almost a quarter of a
million students. The University of Pretoria (UP) is
renowned for research. One of the most famous
faculties is veterinary science, which is located at
Onderstepoort.
The University of Johannesburg (UJ) is a comprehensive
institution offering diplomas and degrees
through a mix of vocational and academic
programmes. The Tshwane University of Technology
(TUT) and the Vaal University of Technology
(VUT) have several campuses. ■
ONLINE RESOURCES
Council of Higher Education: www.che.ac.za
Gauteng Department of Education: www.education.gpg.gov.za
National Research Foundation: www.nrf.ac.za
UFSBS-FM BS survey 8026.pdf 1 2020/06/19 13:50
UFSBS-FM BS survey 8026.pdf 1 2020/06/19 13:50
UFS Business School
UFSBS-FM BS survey 8026.pdf 1 2020/06/19 13:50
Management Development | Leadership Development
UFSBS-FM BS survey 8026.pdf /06/19 13:50
1 2020/06/19 13:50
UFSBS-FM BS survey 8026.pdf 1 2020/06/19 13:50
UFSBS-FM BS survey 8026.pdf 1 2020/06/19 13:50
UFSBS-FM BS survey 8026.pdf 2020/06/19 13:50
UFSBS-FM BS survey 8026.pdf 1 2020/06/19 13:50
UFSBS-FM BS survey 8026.pdf 1 2020/06/19 13:50
Executive Development | Advanced Project Management
Various short learning programmes
Available online and as inhouse programmes countrywide
Contact Ansie Barnard
T: 051 401 3204 | C: 082 900 1080 | barnardam@ufs.ac.za | www.ufs.ac.za/bus |
| UFSUV | UFSweb | UFSweb |
47 GAUTENG BUSINESS 2020/21

INDEX
INDEX
Africa Biomass Company (ABC) ...................................................................................................................... 3, 8
Chartered institute of Government Finance,
Auditing and Risk Officers (CIGFARO) ....................................................................................................... OBC
Johannesburg Development Agency (JDA) ..................................................................................... 14-15
Metropolitan ................................................................................................................................................IFC, 42-43
Nedbank .................................................................................................................................................................. 20-23
Petroleum Agency South Africa ................................................................................................................ 32-33
Randburg Chamber of Commerce and Industry (RCCI) ..................................................................IBC
Transnet Pipelines .............................................................................................................................................. 30-31
UFS Business School ...............................................................................................................................................47
GAUTENG BUSINESS 2020/21
48

Randburg Chamber of
Commerce and Industry
Promoting and representing businesses in the economic powerhouse.
INTERVIEW
What is the geographic footprint of the Chamber?
The areas we cover are: Randburg, Sandton, Fourways, Midrand
and Lanseria.
Linda Blackbeard, CEO
BIOGRAPHY
Linda Blackbeard ran her own
interior design and hospitality
company before taking up the
reins as CEO of the RCCI. She is
the SACCI Chamber Forum chairlady
and a member of the South
African Chamber of Commerce and
Industry board of directors. She was
awarded the Pan African Award
in 2018 in recognition of her
achievements in the Continental
Lifetime Achiever sector, CEO Global
Most Influential Women in Business
& Government 2018 Awards.
What are the key functions of the Chamber?
Primarily to promote business, to facilitate introductions, to be the voice
of business at municipal, provincial and government levels, in defending
business in areas of poor decision-making or unintended consequences
of various acts that are passed. We also facilitate opportunities into the
SADC regions and work very closely with many embassies regarding
trade and tourism.
What does the Chamber do to support SMMEs?
One of the Chamber’s primary focus areas is the development of SMMEs,
finding opportunities for them, business enhancement in training,
helping with business plans, company registrations, giving direction
to ideas that entrepreneurs might have. Teaching them to form joint
ventures with other small businesses and have an opportunity then to
tender for work. We promote our local businesses being awarded work
in our areas.
Does the RCCI interact with government?
RCCI is affiliated to the only national chamber body, South African
Chamber of Commerce & Industry (SACCI). Through SACCI important
issues are dealt with directly at government level. We are also heard at
provincial level and the Chamber works with the City of Johannesburg,
Trade and Investment SA as well as various national government
departments responsible for economic development.
Are there particular challenges?
Randburg Chamber would love to embrace more businesses. There is
so much opportunity around and we could facilitate more if businesses
joined. The more businesses stand together with their local chamber of
commerce, the stronger our voice will be at municipal, provincial and
government level.
What does the future hold?
Our Electronic Certificate of Origin programme for export saves time and
is designed for South African markets. Businesses and members can look
forward to renewed focus, positive opportunities, and facilitation in the
SADC region for business growth and opportunity. www.rcci.co.za

CPD
CONTiNUOUS PROFESSiONAL DEVELOPMENT
“ Attending CIGFARO Training
and webinars has allowed me to
earn CPD points while
participating in Technical
discussions to help improve my
professional capacity. This is a
great time to be associated with
a SAQA recognised Professional
Body. ”
Ms Zanele Malaza
(PGFO), CFO City of
Mbombela
CONTACT US: