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Gauteng Business 2022

The Guide to Business and Investment in Gauteng Province

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GAUTENG

BUSINESS

2022 EDITION

THE GUIDE TO BUSINESS AND INVESTMENT

IN THE GAUTENG PROVINCE

JOIN US ONLINE

WWW.GLOBALAFRICANETWORK.COM | WWW.GAUTENGBUSINESSGUIDE.CO.ZA


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CONTENTS

Gauteng Business 2022 Edition

Introduction

Regional overview 8

All of Gauteng’s metropolitan municipalities came under coalition

governments after the local elections held in 2021. Voters are indicating

they are fed up with corruption. It is at municipal level that citizens and

businesses feel the effects of inefficiency and corruption and it is that

sphere of government that needs the most work in the short term.

Going green 11

Dozens of Gauteng companies in multiple sectors are exploring

ways to make their buildings more efficient, their processes less

wasteful and their impact less harmful to the environment.

Economic sectors

Agriculture 20

Hydroponic farms on rooftops are growing.

Mining 21

Tailings are proving lucrative in Gauteng.

Energy 24

Hydrogen fuel cells are attracting interest.

Oil and gas 25

An international investor is supporting a new LPG cylinder plant.

Transport and logistics 28

Roads and infrastructure spending is set to increase across the province.

Manufacturing 32

Corobrik’s new factory started producing product in 2021.

Tourism 34

Airlink has teamed up with successful international carriers.

Construction and property 36

Logistics is a growth sector for property companies.

ICT 39

Data centres are expanding and new ones are being built.

Banking and financial services 40

One of Johannesburg’s stock exchanges has moved.

Education and training 41

Tshwane University of Technology now

offers asset maintenance.

Development finance and

SMME support 44

Workspaces are available for makers

in wood.

References

Key sector contents 18

Overviews of the main economic

sectors of Gauteng.

GAUTENG BUSINESS 2022

4


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FOREWORD

Gauteng Business

A unique guide to business and investment in Gauteng.

Credits

Publishing director:

Chris Whales

Editor: John Young

Business development

manager: Shiko Diala

Managing director: Clive During

Online editor: Christoff Scholtz

Designer: Tyra Martin

Production: Aneeqah Solomon

Ad sales:

Gavin van der Merwe

Sam Oliver

Jeremy Petersen

Gabriel Venter

Vanessa Wallace

Tahlia Wyngaard

Administration & accounts:

Charlene Steynberg

Kathy Wootton

Distribution and circulation

manager: Edward MacDonald

Printing: FA Print

The 2022 edition of Gauteng Business is the 13th 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, a special feature on the growth

and significance of the green economy is included in this edition. Every sector

from agriculture to transport and logistics is referenced, with several Gauteng

companies taking the lead in the field of creating a more sustainable future for

themselves and for their clients.

The fact that mining companies and others are starting to build facilities to

generate power is significant for the country as a whole. Gold Fields’ 40MW solar

project at its South Deep mine is one of the first of its kind and it is certainly a

precursor of what we can expect to see a lot more of in the future.

The unexpected fall from power in the province’s three big metropolitan

municipalities in 2021 of the political party that is in charge at provincial and national

level, the African National Congress, is noted in the Regional Overview. Whether this

presages a change beyond the borders of Gauteng in elections to come remains

to be seen, but the huge budgets which now fall under the control of coalition

governments in Johannesburg, Tshwane and Ekurhuleni will certainly serve to

sharpen the focus of ANC election planners for national elections in 2024,

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

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 | Airlink; BHIT; City of Tshwane; Corobrik; DHL Global

Forwarding; Ford Motor Company of Southern Africa; Fortress REIT;

Futurecon; Goldfields; Harmony; JSE; Minerals Council SA; Nissan Group of

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

Africa; PAMSA; Pernod Ricard; Petra Diamonds; Steyn City; Teraco; Tshwane

University of Technology; Waterfall City; Wouldn’t It Be Cool (WIBC).

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.


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A REGIONAL OVERVIEW OF

GAUTENG

The diamond mine at Cullinan is renowned as a source of large, high-quality gem diamonds, including Type II stones, as

well as being the world’s most important source of very rare blue diamonds. Credit: Petra Diamonds

All of Gauteng’s metropolitan municipalities came under coalition

governments after the local elections held in 2021. Voters are

indicating they are fed up with corruption. It is at municipal level

that citizens and businesses feel the effects of inefficiency and

corruption and it is that sphere of government that needs the

most work in the short term.

By John Young

The municipal elections held in South

Africa in 2021 resulted in councillors in 66

municipalities having to form coalitions

to create majorities. Among these were

Gauteng’s three metropolitan municipalities,

Johannesburg, Tshwane and Ekurhuleni.

These three cities represent, respectively,

the economic centre of the national economy,

the seat of the executive government and the

manufacturing hub of the country. South Africa’s

governing party, the African National Congress

(ANC), the party of Nelson Mandela and the

struggle for freedom from apartheid, recorded

a vastly reduced vote count across the country.

In the three Gauteng metros, the opposition

Democratic Alliance was able to cobble together

coalitions with five other parties to take over the

mayoralties. These will not be stable coalitions –

some of the ideological differences are big – but

they have certainly put the ANC on notice that

it can’t take things for granted in the run-up to

national elections, which are due in 2024.

If this strengthens the hand of the group

within the ANC that wants to root out corruption,

surely a big reason for the party losing support,

then the country and the province will benefit.

The country’s biggest opposition party, the

Democratic Alliance, controls both the biggest

metropolitan municipality and the provincial

government in the Western Cape but the ANC

still has a solid majority in the Gauteng provincial

legislature. Various levels of government have

departments called “Cooperative Governance”: with

different parties in power at municipal and provincial

level, that concept will be brought into play and the

maturity of the political leaders will be tested.

GAUTENG BUSINESS 2022

8


SPECIAL FEATURE

Premier David Makhura has outlined the plans

of the provincial government: “The development

of single multi-tier Special Economic Zones (SEZ)

is the primary anchor of our industrialisation

agenda. It is our goal to have to have at least

one zone in each district or metro, specialising in

distinct sectors and industries in each corridor.”

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.

About R3-billion has been invested in bulk

infrastructure for the Tshwane Automotive SEZ

with another R300-million to come on top of

R4.3-billion from automotive suppliers and R15.8-

billion from Ford Motor Company.

The OR Tambo International Airport Industrial

Development Zone (IDZ) opened in 2019 is

focussed on jewellery manufacturing and agroprocessing.

The IDZ’s four zones have attracted

R1.5-billion in investments and the zone’s

development is ongoing with other schemes

such as the midfield cargo terminal and the

development of the western commercial precinct.

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.

Manufacturing strength

Gauteng accounts for 45% of 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 fourth-largest

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

services such as BPO, ITC 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.

The Provincial Government of Gauteng has

identified 10 “high-growth” sectors where it intends

concentrating its efforts to build infrastructure and

attract public and private sector investment:

• Energy: new technologies and a diverse energy mix

• 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

These priorities were announced before

the onset of the Covid-19 global pandemic, so

obviously there will be some major adjustments,

Tshwane House, the seat of municipal government and the

council chamber. Credit: City of Tshwane

9

GAUTENG BUSINESS 2022


SPECIAL FEATURE

especially with regard to tourism and hospitality

which has suffered major setbacks during the

local and international lockdowns.

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. 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. Gauteng recorded the highest

provincial growth rate in 2019. The 0.6% rise was

mainly driven by finance, real estate and business

services, which is the dominant industry (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) contribute

significantly to the provincial economy.

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.

Gauteng Premier David Makhura visited the Rosslyn plant of

the Nissan Group of Africa to inspect the protocols that had

been put in place to ensure the safety of works during the

Covid-19 epidemic. Credit: Nissan

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 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 is done. ■

GAUTENG BUSINESS 2022


Going green

Dozens of Gauteng companies in multiple sectors are exploring ways to

make their buildings more efficient, their processes less wasteful and their

impact less harmful to the environment.

A new source of power. Gold Fields is building a 40MW solar plant at its South Deep mine. Credit: Gold Fields

Every sector has potential for growth and

innovation towards a more sustainable

future and companies in Gauteng are

showing the way.

The announcement in 2021 by President Cyril

Ramaphosa that the threshold for companies to

produce their own electricity without a licence

would be increased from 1MW to 100MW was widely

welcomed. To protect the grid, generation projects

are still required to obtain a grid connection permit.

Large companies had been lobbying for this

change to the power landscape for a long time. Not

only will the policy relieve pressure on national utility

Eskom but it will serve as a catalyst for massive new

investment. Most of this new capacity will be in the

form of renewable energy.

One example in Gauteng is Gold Fields, which

is building a 40MW solar power station at its South

Deep mine at a cost of R660-million. Daily Maverick

reports that Roger Baxter, CEO of the Minerals

Council, has said that South Africa’s mining industry

is ready to build 2GW of renewable energy, valued at

more than R30-billion.

South African mining companies are also looking

at green hydrogen and taking advantage of the fact

that many of the minerals needed to fire the new, lowcarbon

economy are found in South Africa. Mines and

smelters are among the most obvious big consumers

of electricity, but modern technology means that data

centres and even shopping malls can now produce

their own energy.

One of the biggest examples of this is the Mall of

Africa in Waterfall City, where most of the huge roof is

covered by what is believed to be the world’s largest

integrated rooftop PV/diesel hybrid project. Attacq

Property Group has undertaken to build sustainably

across its portfolio. The installation will save 8 034

tons of CO2 annually and will result in 157 fewer coal

trucks on the road per year. The PV plant was installed

by Solareff, which owns a majority stake in GridCars.

Vukile Property Fund has decided to equip all of

the malls in its portfolio with rooftop solar panels.

Among its properties are malls in Boksburg and

Soweto. The company says that installations across

the group have the capacity to generate 2 089MWh

annually. Retrofitting of light fittings has also taken

place to improve energy efficiency.

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

GAUTENG BUSINESS 2022


SPECIAL FEATURE

sophisticated water and underfloor heating systems

have all contributed to massive energy savings. The

bank estimates that the power it generates is 70%

cleaner than that provided by the national grid.

The rooftop solar installation at Absa’s Pretoria

office provides 17% of its electricity needs and the

bank intends to continue rolling out solar solutions in

addition to investigating battery solutions in pursuit

of what it calls “net zero offices”.

Many energy-intensive companies and

institutions are generating their own power. In

Johannesburg, the Northern Wastewater Treatment

Works, the largest of six wastewater plants serving the

city, has its own electricity source in a 1.1MW biogas

plant. It produces electricity using cogeneration

(combined heat and power) and is helping the city

to reduce expenditure on its water treatment works,

which used to run to R100-million per year.

A landfill site at Robinson Deep in

Johannesburg has started generating 3MW of gas.

This is one of five renewable energy projects that

Energy Systems SA is running in Johannesburg

and is the first landfill gas generation project to fall

under the REIPPPP.

In agriculture, there is urban and hydroponic

farming, improved soil maintenance, better use

of water and recycling and organic methods. The

agricultural sector is also another source

of organic waste which is being used to

provide power. With thousands of cattle

farmed near big cities to provide beef

and dairy products, biogas is a useful

byproduct. The Bronkhorstspruit Biogas

Plant, run by Bio2Watt, has an installed

capacity of 4.6MW which it produces

from annual feedstock of about 120 000

tons of organic waste.

The plant is located in the Tshwane

Metropolitan area on the premises of

Beefcor, one of South Africa’s largest

feedlots. The company has plans to

roll out small plants for farmers or agriprocessors

who want to produce power

for themselves.

At the Cavalier abattoir in Cullinan,

biowaste conversion company ibert

provides about a quarter of the power

that the abattoir needs to function, at a competitive

rate. In the process, all of the facility’s biowaste is

disposed of.

In construction and property, the green

movement is growing apace. Apart from green

building certification (administered by the Green

Building Council of SA), there is now an even

higher standard which developers and architects

are striving for, Living Building Challenge, in which

a building goes beyond being net zero to being

regenerative (ie, producing more water and power

than it uses).

A recent headline, “Govt launches drive to green

state properties” indicates that the state is moving

in the green direction too. The Department of

Public Works and Infrastructure recently launched

an Integrated Renewable Energy and Resource

Efficiency Programme (iREREP).

Transport and logistics

Eskom has announced that all staff cars will be EV

in future. Companies in the transport and logistics

sectors are moving quickly to prepare for a greener

future. Another recent headline announced, “Sasol

and Imperial logistics partner to reduce carbon

footprint”. In this regard, gas is seen as important

in helping South Africa transition to renewables

The solar PV rooftop system at the Mall of Africa was the largest in the

southern hemisphere when it was installed. Credit: Waterfall City

GAUTENG BUSINESS 2022

12


Recycling is a big part of the circular economy. Credit: PAMSA

and away from carbon fuels. Petroleum Agency

South Africa (PASA) and Sasol and organisations

like the Council for Geoscience are working in these

areas and logistics fleets are looking to use gas as

well. Gauteng fleet entities such as Bulk Hauliers

International Transport (BHIT) and SAB (which

runs a massive national fleet of trucks) have signed

agreements for gas suppliers from Renergen, the

company running a big gas project in the Free

State. Glass manufacturer Consol has also signed

with them and TotalEnergies will establish a national

distribution network.

Energy efficiency is a growing interest for

government and the private sector. The Department

of Energy has an Energy Efficiency Directorate and

there are other organisations such as Southern

African Energy Efficiency Confederation (SAEEC);

South African National Energy Development Institute

(SANEDI); Productivity SA and the National Cleaner

Production Centre (NCPC).

Water is one of the key sectors where saving,

reuse, recycling, filtration, storage, efficiency (nonleaking

pipes) and new solutions are vital to progress

towards a greener future. Rand Water’s environmental

brand, “Water Wise”, attempts to make users aware of

the need to value water and to use it wisely.

In terms of recycling and reuse, the packaging

sector and many companies and industry

associations connected to plastics, rubber and paper

are trying to mitigate harmful side-effects arising

from the manufacture and use of their products. One

of the supporters of CleanCitySA, an organisation

aiming to clean up Johannesburg, is Plastics SA.

Fibre Circle (the producer responsibility

organisation for the South African paper and

paper packaging sector) is working on compliance

with national government’s Extended Producer

Responsibility (EPR). Fibre Circle aims to improve

the recovery and recycling of paper and paper

packaging and to develop products from recycled

paper fibre that are commercially viable in their

own right. It wants to get packaging products off

the streets and away from landfills. The organisation

reports that 46% of locally-produced paper

products contain sustainably-sourced virgin fibre

and that 54% of local paper products contain

recycled fibre.

The Paper Manufacturers Association of South

Africa (PAMSA) reports that many paper and pulp

mills are using byproducts from the chemical pulping

process as a biomass fuel to drive the mills. Examples

include tree residue and “black liquor”. ■

13 GAUTENG BUSINESS 2022


INTERVIEW

Controlled Marketing model encourages

close relationships with customers

Old Mutual Provincial General Manager: Sales and Distribution, Mathapelo

Sipamla, discusses some of the challenges facing business in Gauteng.

How many branches does Old Mutual have in Gauteng?

There are 31 branches, of which 29 are field branches and two

are in-house. We have a staff complement of 494, which includes

advisers, junior and senior management and admin staff.

How can customers stay in touch or transact remotely?

Our Controlled Marketing model encourages close relationships

with customers. Advisers need to ensure they are their customers’

go-to person. Our advisers own cellphones and laptops that

assist them. During lockdown, we rolled out remote selling that

allows the customer to accept a sale remotely though USSD.

Mathapelo Sipamla

BIOGRAPHY

Mathapelo Sipamla has been with

Old Mutual for the past 18 years,

advancing through the ranks from

being a financial adviser when she

first joined in March 2004. She is a

driven and results-orientated sales

leader who has a proven record of

accomplishment in all the roles she has

held within the organisation. She has

an MBA from Henley Business School.

In April 2021 she was appointed as the

Provincial General Manager: Sales and

Distribution for Gauteng.

How has your business been affected by the Covid-19

pandemic and what have you noticed about the businesses

that you serve?

We have been affected immensely as we could not make

our targets, but also our staff’s earning potential was

affected because they could not get to enough customers

in order to make their targets.

Two things are noticeable about businesses in the area: many

businesses could not cope with the strain imposed by the various

lockdowns and had either to close shop or retrench employees.

Some businesses lost employees who died from Covid-19.

All of this ultimately means the market potential has

decreased significantly. It remains a problem, as most

companies are not willing to hire and replace the staff they

lost to Covid-19.

What are your main offerings to customers?

We are in the long-term insurance space so we offer life cover,

funeral plans, investments and retirement annuities.

What processes are followed in supporting CSI projects?

We encourage our advisers to adopt community projects

and submit an application for which we can provide finance

of up to R20 000. They must also submit proof that they

take the time to be there physically to assist with whatever

project they are driving. We are engaged in a large number

of projects across the province. ■

GAUTENG BUSINESS 2022

14


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ombds 02.2022 c5193


INTERVIEW

Promoting small business

Colin Francis, Operations Manager for Seda Gauteng, outlines some of the

programmes available to entrepreneurs, from business diagnostics to training.

What is the mandate of Seda Gauteng?

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

the Department of Small Business Development. It is mandated to

implement government’s small business strategy; design and implement

a standard and delivery network for small enterprise development and

integrate government-funded small enterprise support agencies.

Seda’s mission is to develop, support and promote small enterprises,

ensuring their growth and sustainability in coordination and partnership

with various role-players, including global partners, who make

international best practices available to local entrepreneurs.

Where are your regional branches located?

Ekurhuleni, Kempton Park; Tshwane-Pretoria CBD; Johannesburg,

Braamfontein.

Colin Francis,

Operations Manager

What are the major challenges faced by small businesses?

Access to finance and to business development services. Lack of market

opportunities, poor infrastructure, overbearing legislation and lack of

information.

What impact has Covid-19 had on small business?

Small businesses have been severely affected by Covid in that restrictions

have hampered the potential for sales. Expensive data and digital

platforms also stopped entrepreneurs from taking their businesses online.

Many small businesses did not survive the hard lockdowns.

BIOGRAPHY

After gaining a National Diploma

in Extraction Metallurgy and

Mining Technology from Technikon

Witwatersrand, Colin graduated with

a BTech from Unisa. After a spell as a

learner metallurgist at Vaal Reefs, he

worked for Columbus Stainless. He

then branched out as a small business

owner of a food company before

becoming a Senior Industrial Advisor to

the National Advisory Manufacturing

Centre. He joined Seda in 2006 and was

appointed in 2011 to his present position

as Operations Manager, Gauteng.

Has Seda run programmes to help SMMEs recover?

Seda assisted the Department of Small Business Development and

Sefa to roll out the Business Recovery Programme and the Covid

Relief Programme.

Where are the best opportunities in Gauteng?

Gauteng is the economic powerhouse of the country and the sectors

that flourish include the manufacturing, wholesale and retail, banking,

services and ICT sectors. Due to the populous nature of the province,

there are opportunities everywhere, from the numerous business parks

to the business districts and the townships

Does Seda encourage competitiveness and viability?

Seda offers a wide range of services including business diagnostics,

information dissemination and training.

Does Seda assist women and youth?

Seda assists all client on a needs basis. Seda partners with various

stakeholders to ensure that these designated groups have access to

tailormade programmes.


“We are agripreneurs,

supplying equitably

sourced and

sustainably grown

African Indigenous

ingredients, including

ancient grain and

superfoods, connecting

ethical producers with

conscious consumers”

Local Village (Gauteng)

“Together Advancing Small Enterprise Development”

Info Centre: 0860 103 703

www.seda.org.za

@Seda_dsbd

Seda.dsbd


Expansion at Ford Motor Company’s Silverton assembly plant will add 1 200 jobs to Ford’s workforce and increase

annual installed production of the Ford Ranger to 200 000 units (up from 168 000). The plant also will manufacture

Volkswagen pickup trucks as part of the Ford-VW strategic alliance. An overall country investment of R15.8-billion

includes R10.3- billion to be spent on upgrades at Silverton to increase production volumes and drive improvements in

production efficiency and vehicle quality. Credit: Ford Motor Company


KEY SECTORS

Overviews of the main economic

sectors of Gauteng

Agriculture 20

Mining 21

Energy 24

Oil and gas 25

Transport and logistics 28

Manufacturing 32

Tourism 34

Construction and property 36

ICT 39

Banking and financial services 40

Education and training 41

Development finance and SMME support 44


OVERVIEW

Agriculture

Hydroponic farms on rooftops are growing.

The Urban Agriculture Initiative is a project of Wouldn’t It Be

Cool (WIBC) and the Johannesburg Inner City Partnership.

The project aims to establish an urban agricultural

value chain in the inner-city with hydroponic farms on

rooftops as the key element. WIBC piloted the concept with

a young entrepreneur from Kagiso and implemented the first

commercial farm in the project in 2017. Grant funding from Seda

saw another 100 farms established. In Melville, Zakir Kathrada is

growing rocket, baby spinach, gem lettuce and tomatoes on the

roof of The Whippet Coffee, to whom he sells the produce. Urban

farmer Puseletso Mamogale is shown in the picture on this page.

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 focussed 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

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.

The Gauteng Industrial Development Zone (GIDZ) located

at OR Tambo International Airport has an agro-processing plant

which is intended to encourage the export 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

ONLINE RESOURCES

Agricultural Research Council: www.arc.agric.za

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

WIBC: http://wibc-w-live.azurewebsites.net/

SECTOR INSIGHT

KLL Group has bought

Tongaat Hulett’s

starch assets.

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.

Tongaat Hulett, best known

as a sugar producer, has sold

its starch business (with three

milling plants in southern

Gauteng) for R5.3-billion to the

KLL Group, a wholly-owned

subsidiary of Barloworld

Logistics Africa. ■

GAUTENG BUSINESS 2022

20


Mining

Tailings are proving lucrative in Gauteng.

OVERVIEW

SECTOR INSIGHT

Harmony’s purchase of

Mine Waste Solutions is

paying off.

Gauteng is home to many old mines which means that

the province has to guard against many of the aftereffects

of deep mining such as acid mine water and

subsidence. The Council for Geoscience is actively

engaged in research projects into such issues but the high prices

that gold is attracting globally means that another byproduct of

mining, tailings, has become more lucrative.

Mine Waste Solutions, a tailings retreatment operation bought

by Harmony from AngloGold Ashanti in 2020 and operated by

subsidiary Chemwes, has performed well for the group. Production of

2 057kg (66 133oz) of gold in the nine months to June 2021 reflected

high productivity at a healthy average gold price of R729 882/kg.

Harmony Gold’s acquisition strategy, including the purchase from

AngloGold of Moab Khotsong, 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.

A new company, Shallow Reefs Gold, has been created to pursue

projects in the shallow reefs of the Witwatersrand Gold Basin. The

company believes that the grade of the deposits makes for a good

economic proposition, especially as the infrastructure required for

shallow mining is much cheaper than for the deep mining that has

characterised the sector in the past.

Cullinan diamond mine is engaged in an expansion programme called

the C-Cut Phase 1 project. Cullinan is famous for its rare blue diamonds.

The University of Witwatersrand started life as the South African School

of Mines. The School of Mining Engineering at Wits is the highest-ranked

school at the university in terms of the QS World University Rankings.

ONLINE RESOURCES

Council for Geoscience: www.geoscience.org.za

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

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

Credit: Harmony

Gauteng is home to most of

the research and training bodies

associated with mining. Sibanye-

Stillwater supports the Wits

Mining Institute’s Digital Mining

Laboratory (Digimine). 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 and showcase the

country’s manufacturing abilities.

Mintek is an autonomous

body based in Randburg which

receives about 30% of its budget

from the Department of Mineral

Resources. The balance comes

from joint ventures with private

sector partners, or is earned

in research and development

income, the sale of services or

products and from technology

licensing agreements.

Pretoria University has a

Department of Mining Engineering,

the University of South Africa offers

three national diplomas in minerelated

fields, the University of

Johannesburg has mine-surveying

courses and the Vaal and Tshwane

Universities of Technology have

engineering faculties. ■

21

GAUTENG BUSINESS 2022


INTERVIEW

Cullinan Diamond Mine

produces rare and

exceptional “specials”

The General Manager of the Cullinan Diamond Mine, Jaison Rajan, explains how

infrastructure investment is extending the life of one of the world’s great mines.

Why is Cullinan Diamond Mine often referred to as an

“iconic” diamond mine?

Cullinan Diamond Mine has earned its status as a result of

it being probably the world’s most consistent supplier of

exceptional stones. One of the first, and arguably the bestknown,

was the Cullinan Diamond found at the mine in 1905.

This stone, at 3 106ct, is still the largest diamond ever found,

and jewels cut from it adorn the Royal Crown and Sceptre of

the United Kingdom.

Jaison Rajan, General Manager

BIOGRAPHY

Jaison Rajan is a mining engineer with

post-graduate Master’s qualifications

in both mineral economics and

business administration. He has

over 20 years industry experience,

having worked in various mineral

commodities including heavy

minerals, manganese, coal and

diamonds. He is an accredited

Professional Engineer with a Mine

Manager’s certificate of competency

(South Africa).

Are there are other stones from the mine that could lay

similar claims?

Indeed! Cullinan Diamond Mine is also the source of most of the

gem-quality Type II blue diamonds recovered and put to market.

These diamonds are extremely rare, which is vouched for by the

high prices per carat achieved when they are presented to the

market. A recently recovered 39.34ct Type IIb blue stone sold for

more than $40-million, which was the highest price that Petra

has achieved for a single stone. Apart from this stone, there have

been quite a number of other “specials”, both blue and white

stones of exceptional quality with regards to both colour and

clarity, many of which had been recovered by Petra since it took

ownership of the mine in 2008. This includes the Blue Moon of

Josephine, the Cullinan Dream and the Letlapa Tala Collection.

It was already an old mine when Petra took over; how much

life is left in it, and what is Petra doing to ensure its future?

The mine is still an exceptional resource with prospects of a

long life into the future. From what we currently know, the

resource still has a potential life upwards of 50 years, subject

to market and economic conditions. Realising the value and

potential, Petra embarked on an intensive capital investment

programme soon after acquiring it, including the further

development of underground resources (the so-called

“C-Cut”) and replacement of the old processing plant with a

new, cutting-edge treatment facility that will serve the mine

well into the future.

GAUTENG BUSINESS 2022

22


How does the mine’s location within a

metropole affect your planning?

It is a rather unique situation and does impact

on our approach. We accept and believe that the

operations of any mine, including ours, should

first and foremost benefit its most immediate

stakeholders, which are the communities in

which we operate. Giving effect to this has

many facets, which includes ensuring that we

recruit locally, providing local households with

a stable income, focussing on procurement of

local supply to boost local business, especially

SMMEs, while contributing to their development,

social investment programmes that are aimed

at effectively addressing the needs of our

communities and more. Our core operations

also have impacts on the community, such as

environmental impacts (the potential of dust,

noise and vibration) as well as the naturally

occurring scaling of the pit. All of these are

closely monitored, mitigating actions are taken

and we maintain open communication with the

community around these issues.

Apart from the mine, the town of Cullinan is also

somewhat of a tourism destination. What is the

mine’s involvement in that?

Cullinan is indeed a little town with a colourful

history, much of which relates to the mine, and

it is rightly a tourist favourite. From Cullinan

Diamond Mine’s side, we believe that tourism will

become an increasingly important contributor

to the local economy and we are therefore

supporting the private tourism industry in

various ways, not least of which is by being the

only underground mine allowing underground

tours as part of its tourism offering. This support

further extends to financial and promotional

contributions, and we are excited to see the

effect that these initiatives are having on the

growth of tourism in the town.

The Covid-19 pandemic has had a profound

impact on everything we do. How did it impact

Cullinan Diamond Mine?

When the news broke, Petra proactively put

controls in place to implement a Mandatory

Code of Practice for the prevention, mitigation

and management of Covid-19. This included

various controls for screening, social distancing,

sanitising and wearing of masks, which allowed

us to continue our operations at sustainable

levels soon after the initial lockdown. Realising

the impact of the pandemic on our communities,

much of our focus also went into distress relief

within our communities, in conjunction with

partners such as the City of Tshwane, through

the employee-funded Petra Hardship Fund

that contributed foodstuffs and other relief

materials. This included the distribution of

more than 700 food hampers and 500 cloth

masks to the community, assistance to health

workers, schools and the Tshwane Metro Police

with supplies such as surgical masks, sanitiser,

disinfectant and sterile gloves, all to the value of

more than R500 000. ■

23

GAUTENG BUSINESS 2022


OVERVIEW

Energy

Hydrogen fuel cells are attracting interest.

A

locally-developed stationary hydrogen fuel cell is the

subject of a test at the refinery of Impala Platinum

in Springs, east of Johannesburg. Engineering News

reported in 2021 that the first signs are positive.

Implats has donated 16ha for the project and is invested in

AP Ventures, a London-based company that invests

in companies that use platinum group metals to

promote the fight against climate change.

Gold Fields is on course to build a 40MW solar power

plant at its South Deep mine west of Johannesburg.

Harmony, which has several mines in Gauteng, is already

operating a 30MW solar plant in the neighbouring Free

State province.

Areas in the Gauteng province that can no longer

rely on the mining industry to drive their economies may

become focus zones for solar PV projects. Renewable

Energy Development Zones (REDZs) have been allocated

in other provinces but the potential for REDZs in Gauteng

is huge, because vast amounts of energy needed to drive

the country’s biggest economy.

These zones would be developed in line with the national

Integrated Resource 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.

In Johannesburg, the Northern Wastewater Treatment Works

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 in Johannesburg. At the

Cavalier abattoir in Cullinan, biowaste conversion company

ibert provides about 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 grid. Investments in

a 6 000-panel rooftop solar system (which cost R10-million),

ONLINE RESOURCES

National Energy Regulator of South Africa: www.nersa.org.za

South African National Energy Development Institute: www.sanedi.org.za

South African Photovoltaic Industry Association: www.sapvia.co.za

SECTOR INSIGHT

Ford Motor Company has a

plan to go off grid.

A 100kw natural gas baseload fuel cell powers the offices

of Minerals Council SA in Johannesburg.

Credit: MineralsCouncil SA

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”.

Ford is spending R135-million

on building a solar carport at its

Silverton plant that will produce

13.5MW. The project is part of a

bigger project to take the whole

plant off the grid, Project Blue Oval.

Ford is working with Uhuru Africa,

a joint venture between Uhuru

Energy and SolarAfrica Energy. ■

GAUTENG BUSINESS 2022

24


OVERVIEW

Oil and gas

An international investor is supporting a new LPG cylinder plant.

SECTOR INSIGHT

Glass manufacturer

Consol has signed a

new gas contract.

Credit: BHIT

A

new liquefied petroleum gas cylinder manufacturing

plant has attracted funding from J Sassoon

Group. Bluedrop Energy will build its LGP plant in

Johannesburg with technical assistance from an Israeli

company and Fluor. Bluedrop will also be an LPG wholesalerand

composite LPG cylinder manufacturer in Africa. The R300-million

committed by Sassoon to the Gauteng project is part of a much

bigger commitment the investment firm is making to invest

in South Africa more generally: a figure of $50-billion over five

years has been mooted.

Glass manufacturer Consol, which has three plants in Gauteng,

has signed a contract to buy liquid natural gas (LNG) from Renergen,

the company that is developing a significant field in the neighbouring

province of the Free State. Bespoke depots will be developed to cater

to industrial clients such as Consol.

Renergen is taking orders for its product from logistics companies

such as Bulk Hauliers International Transport (BHIT) for 50 of its trucks

(pictured), which should lead to lower operating and maintenance

costs. South African Breweries is another client.

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 distributors, converts petrol and diesel-powered vehicles

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

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.

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. 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 coalbed methane gas

and natural gas rights in the

provinces on Gauteng’s border,

Free State and KwaZulu-Natal. ■

25

GAUTENG BUSINESS 2022


FOCUS

Gas can boost the national

economy and start the country

on the path to zero emissions

Dr Phindile Masangane, the CEO of Petroleum Agency

South Africa, notes that recent gas discoveries could

support the country’s economic recovery and its

transition to a clean energy future.

Today the biggest threat to humanity is

climate change, and the biggest threat to

SA’s social stability is the high unemployment

rate.

As the global economy recovers from the

devastating effects of Covid-19, demand for oil and

gas has gone up significantly. If there was ever a

need for proof that oil and gas still drive the global

economy, recent statistics demonstrate the trend.

The world’s developed economies industrialised on

the back of oil and gas production and use. Now, just as

Africa is on the cusp of being a significant gas producer

and is making plans to use such gas for power

generation, industrialisation and economic growth,

the negative effects of greenhouse gas emissions on

the environment have become undeniable.

The urgency for action to mitigate the risk of

climate change is no longer debatable. Between

1990 and 2018 the top five emitters have

produced more than 50% of greenhouse gas

emissions. During the same period SA contributed

1% to global emissions. This is by no measure

insignificant, and as a responsible global citizen SA

must take steps to reduce its carbon footprint.

The UN Framework Convention on Climate

Change was established in 1992 to coordinate the

global response to mitigate the threat of climate

change, and specifically to get countries to commit

to policies and plans that will ensure that the

average global temperature rise is kept less than

1.5°C above pre-industrial levels.

The International Energy Agency (IEA) proposes

that to achieve this goal the world’s energy sector must

reach net zero emissions by 2050. In its global energy

net zero 2050 pathway the IEA acknowledges that

there is no single pathway to this goal, as developed

and developing countries face different socioeconomic

challenges and have contributed disproportionately to

greenhouse gas emissions to date.

What a number of environmental interest

groups seem to be ignoring in the IEA “Net Zero

by 2050” report is the acknowledgment that there

will be a differentiated approach to a clean energy

future, taking into consideration the cost of the

new clean energy technologies and the economic

consequences of transitioning for each country. The

IEA emphasises that each country must develop its

own pathway to a net zero emission future.

South Africa’s economy has been

predominantly powered by coal, which is also a

significant contributor to the country’s economy in

terms of GDP as well as employment.

In addition to coal, SA imports oil, gas and

petroleum products for its energy needs as the

upstream petroleum industry is still at a nascent

stage. The two recent world-class offshore gas

GAUTENG BUSINESS 2022

26


"

"

Mafikeng

"

"

"

"

"

"

Molteno

"

Klerksdorp

"

"

Welkom

"

Virginia

"

"

Aliwal North

"

"

Queenstown

"

"

"

Kroonstad

"

"

Indwe

"

" Maseru

"

"

"

" Lephalale

"

"

"

Elliot

"

"

"

Maclear "

Modimolle

"

Bela-Bela

"

"

Bethlehem

"

Frankfort

"

"

"

Evander

Umtata

"

Mokopane

"

"

"

"

Witbank

"

"

Secunda

Standerton

"

Harrismith

"

Polokwane

"

"

"

Tshipise

"

"

Makhado

"

"

Ermelo

Volksrust "

"

" Newcastle

Estcourt

"

"

Musina

"

Dannhauser

"

Utrecht

"

Pietermaritzburg

"

"

Vryheid

"

Port Shepstone

"

"

"

Phalaborwa

"

Mbabane

"

Pafuri

Nongoma

"

"

"

Richards Bay

St. Lucia

"

FOCUS

Renergen is currently the only onshore petroleum production

rights holder in South Africa. The company’s Virginia Gas

Project in the Free State is ramping up to phase two, based on

one of the richest helium concentrations in the world.

discoveries in the Outeniqua basin are the biggest

petroleum discoveries made in South Africa.

The development of these discoveries has the

potential to replace more than 2 300MW of dieselfired

electricity generation, thereby reducing the

carbon emissions by more than 50% while eliminating

sulphur oxide and nitrogen oxide emissions. Gas is

therefore an obvious bridge to a lower carbon future.

The Petroleum Agency SA awaits the licensee

of these gas discoveries submitting its production

right and environmental authorisation applications

when the exploration right expires, or earlier. The

agency expects the licensee to use world-class

technologies and standards to minimise the effects

of the gas and gas condensate production on the

environment, while maximising the in-country

benefit or local content from this development to

support SA’s economic recovery.

These discoveries could indeed support both

the country’s economic recovery and its transition

to a clean energy future.

Shale and biogenic gas prospects

Onshore exploration opportunities are represented

by unconventional resources such as shale gas in

the south-central Karoo, coalbed methane in the

coalfields of the east and northern sectors of the

country and biogenic gas in the Virginia and Evander

regions. However, geological analysis is showing

that there may well be significant potential for

conventional oil and gas resources onshore.

South Africa has a history of political stability

and the new UPRD bill [Upstream Petroleum

Resources Development Bill] will assist the

Agency in expediting exploration through close

management of acreage allocation and work

programmes. These positive factors create a

conducive environment for PASA to pursue

its mandate of attracting investment into the

upstream petroleum industry.

The draft bill provides greater policy certainty

and a stable environment for investment in

the South African oil and gas sector. It provides

security of tenure by combining the rights for the

exploration, development and production phase

under one permit.

As far as the issuing of exploration rights over

the last 18 months is concerned, a total of 21

exploration rights for both onshore and offshore

were issued during this period, including renewals

and new exploration rights.

As of December 2020, there is no longer a

moratorium on applications for rights onshore,

other than those for shale gas in a specified

area covering the central Karoo. Other onshore

applications continue to be received and processed

in terms of the MPRDA. The moratorium for shale

gas rights and new offshore applications remains

in place and is expected to be lifted with the

enactment of the hydraulic fracturing regulations

(for environmental management and water use)

for the shale gas extraction technologies. ■

Locality

Coal Field

SOUTH

Gas discovery

Provincial boundary

Karoo Basins

AFRICA

North West

Free State

Bloemfontein

LEPHALALE

BASIN

Waterberg

Free State

MAIN KAROO BASIN

Pretoria

Johannesburg

Gauteng

Lesotho

TULI BASIN

Mopane

Limpopo

SPRINGBOK FLATS BASIN

Witbank

Highveld

Tuli

Tshipise

TSHIPISE BASIN

Springbok Flats

Ermelo

Utrecht

Klip Rivier

Pafuri

KwaZulu-Natal

Mpumalanga

Kangwane

Swaziland

Vryheid

Nongoma

Somkele

Durban

Northern Cape

Eastern Cape

Molteno

Figure 32. Distribution of coal fields in the Karoo-aged basins in South Africa (digital geological data sourced from Council for Geoscience)

34


OVERVIEW

Transport and logistics

Roads and infrastructure spending is set to increase

across the province.

SECTOR INSIGHT

DHL Forwarding has invested

in new capacity.

The infrastructure associated with large housing estates such as Steyn City

is substantial, as are the roads that surround and serve the developments.

Credit: Steyn City

The Gauteng Department of Roads and Transport has a

pipeline of 67 projects with a combined value of R23-billion.

Of these projects, 13 – valued at R6.6-billion – are private

sector initiatives and the various road, construction and design

projects are expected to be implemented over the decade to 2031.

Among the private companies that will be involved in projects

are property companies Attacq Waterfall Investment, Steyn City and

Century Properties and mining company Cullinan.

A feasibility study is underway to examine extending the

Gauteng Rapid Rail Integrated Network. The current network has

10 stations spread over 80km and the extension would add 146km

and 19 new stations.

The estimated R2-billion that was due to be spent on adding to the

Gautrain’s rolling stock has been put on hold because of Covid-19. The

long-term plans to expand the Gautrain network are still on course.

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.

DHL Global Forwarding has spent R126.5-million on a new

facility in the Skyparks Business Estate, located next to OR Tambo

International Airport. The

new floorspace of 13 000m²

(most of which is warehouse

space) doubles the company’s

current footprint.

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 intermodal

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:

GAUTENG BUSINESS 2022

28


OVERVIEW

• a logistics park (transportation, processing, manufacture,

warehousing and distribution)

• a business park with a retail element

• a residential component

• an agro-industrial section.

The Provincial Government of Gauteng is stressing 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 Free Trade Area (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) and 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 OR Tambo International Airport Special Economic

Zone (ORTIA SEZ) has diversified beyond the existing Jewellery

Manufacturing Precinct in the shape of a R400-million agroprocessing

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.

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 Roads Agency: www.sanral.co.za

Credit: DHL Global Forwarding

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

Town and the sector (which

encompasses aero-structures

and systems, manufacturing,

design and engineering) is

responsible for R3-billion in

exports every year. ■

29 GAUTENG BUSINESS 2022


Automotive Aftermarket Business

Support Scheme

Overview

The automotive aftermarket business support scheme supports and develops small and independent

automotive aftermarket enterprises, including informal businesses located in townships and villages.

The scheme was developed in response to the increased demand for services from the motor industry,

insurance companies and uninsured vehicle owners, and has a bias towards businesses located in

townships and rural areas.

Objectives

The objectives of the scheme are to:

• Support motor body repairers (panel beaters) to operate accredited small or independent panel beating

(motor body repairs) businesses

• Support motor and other mechanics to operate authorised service centres

• Support small and independent auto-spares shops to operate profitable spare parts centres

• Support the formalisation of informal automotive entrepreneurs into formal fitment centres.

Support Support

Financial Financial support support

• Maximum • Maximum of R500 of R500 000 000 (R400 (R400 000 000 equipment equipment and and R100 R100 000 000 working working capital) capital) for motor for motor body body

repairers, repairers, mechanics, mechanics, and and auto auto spares spares shops shops and and auto auto fitment fitment centres centres

• The • The R500 R500 000 000 will will be provided be provided by the by commercial the commercial banks banks with with a guarantee a guarantee from from sefa. sefa. Non-financial Non-financial

support support

• Diagnostic • Diagnostic assessment assessment of the of business the business (this (this will will inform inform the interventions the interventions to be to completed) be completed)

Among Among others others these these may may include: include:

• Automotive • Automotive workshop workshop service service management management training training and and support. support.

BusinessBusiness management management support support and and mentorship mentorship through through the Unemployed the Unemployed Graduate Graduate Scheme, Scheme, or or

SEDA SEDA Business Business Advisors Advisors and/ and/ or services or services of business of business professionals professionals

• Facilitate • Facilitate access access to market to market in both in both the private the private and and public public sectors, sectors, for vehicles for vehicles to be to serviced be serviced at at

participating participating service/ service/ motor motor body body repair/ repair/ fitment fitment centres centres


Qualifying criteria

Every application will be assessed in terms of the following criteria:

• Must register on the National SMME database at https://smmesa.gov.za/

• Must be an informal or micro-business or cooperative

• Registered as a legal entity with the Companies and Intellectual Property Commission and South

African Revenue Service

• 100% South African ownership

• 70% of employees must be South African

• Valid South African identity documents

• Minimum trading period (six months)

• Must have a valid business bank account (including newly opened)

• Willing to participate in the revolving credit facility as organised by the Department of Small Business

Development or any of its agencies through a participating bank

• Must be operating in a township or village

• The business operating premise (including the home premise) must hold or be willing to be assisted to

acquire an Occupational Health and Safety Act compliance certificate

Who can apply?

All auto mechanics, such as motor mechanics, heavy equipment mechanics, tractor, and forklift

mechanics, as well as diesel fitters, panel beaters, glaziers, tyre and glass fitment centres, auto spares

shops.

Application process

How to apply:

1. Complete the Automotive Aftermarkets Support online application form

2. Complete all the mandatory fields

3. Upload the required supporting documents

4. Submit your application online to trep@sefa.org.za

To find out more about the scheme and contact details to Seda Branches visit www.sefa.org.za \

www.seda.org.za

You can also contact Seda Information Centre at: Tel: 0860 103 703 or Email: info@seda.org.za


OVERVIEW

Manufacturing

Corobrik’s new factory started producing product in 2021.

SECTOR INSIGHT

Several Metair subsidiaries will

benefit from Ford’s expansion.

Ford’s expansion project at Silverton will create jobs along the value

chain. Credit: Ford Motor Company

A

new factory in Carltonville produced its first bricks in

2021. The R800-million Corobrik Kwastina factory has

reduced costs in the manufacturing process by 50%

and consumes 70% less gas than previous methods.

At full capacity, Kwastina will be able to produce 100-million

bricks per year.

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.

Original equipment manufacturer Ford announced a $1-billion

investment in South Africa in 2021. Expanded production (to

installed capacity of 200 000 units) at the company’s Gauteng plant

will create 1 200 direct jobs and

a further 10 000 jobs along the

supply chain.

In response to Ford’s

investment, auto component

and battery manufacturer

Metair will establish a new

logistics facility at Silverton.

Several Metair subsidiaries,

including Hesto Harnesses,

Unitrade, Automould and

Lumotech, have signed

agreements to supply Ford with

a wide range of products.

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 R6.1-billion by BMW at

Rosslyn and 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. These include

Scania, TFM Industries and

MAN Truck and Bus South

Africa, as well as the Chinese

GAUTENG BUSINESS 2022

32


OVERVIEW

truck manufacturer FAW, which owns an assembly plant in Isando.

Beijing Automotive Works (BAW) assembles taxis at Springs.

Armoured cars are produced by the Paramount Group. DCD

Protected Mobility manufactures armoured cars in Boksburg, which

are branded as Vehicle Mounted Mine Detectors. In nearby Benoni,

BAE Systems OMC designs and manufactures protected vehicles.

The Eastern Corridor of Gauteng, centred on the metropole

of Ekurhuleni, is consolidating its 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.

Aeroton is the site of SEW-EURODRIVE’s new head office and

factory which will bring under one roof several of the company’s

activities which were previously in different parts of the country.

The R200-million development is about three times larger than the

existing head office premises, located in the same suburb.

The Provincial Government of Gauteng 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.

Packaging company Nampak 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

ArcelorMittal plant. 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, 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.

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: Corobrik

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 among its facilities in

South Africa. ■

33 GAUTENG BUSINESS 2022


OVERVIEW

Tourism

Airlink has teamed up with successful international carriers.

SECTOR INSIGHT

Growing Gauteng Together

(GGT2030) plans to boost

the tourism sector.

Airlink, which ended its franchise agreement after SAA went

into business rescue, has signed deals with Qatar Airways,

Emirates and United Airlines, giving travellers on those successful

international carriers easy access to a wide range of

Southern African destinations and St Helena.

Single-ticket arrangements and one-stop baggage check-ins

will facilitate easier travel in a difficult time. Airlink also has a service

that connects travellers with certain game lodges. Airlink boasts an

on-time performance consistently better than 95%.

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 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 has split its casino and hotel operations 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.

ONLINE RESOURCES

Cradle of Humankind: www.maropeng.co.za

Gauteng Tourism Authority: www.gauteng.net

Johannesburg Tourism Company: www.joburgtourism.com

SunSquare, Southern Sun

Hotels, Southern Sun Resorts,

Garden Court and StayEasy are

among the group’s brands.

Marriott International has

retained 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 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. ■

GAUTENG BUSINESS 2022

34


Cullinan South Africa

Cullinan is a small town in the Gauteng province of South Africa. It is

located 30 km (19 mi) east of the city of Pretoria along the diamond

route.

Cullinan earned its place in history with the discovery of the Cullinan

diamond in 1905, the largest rough gem diamond ever found at 3,106

carats. The Cullinan Diamond Mine is also renowned as a source of large,

high­quality gem diamonds, including Type II stones, as well as being the

world’s most important source of very rare blue diamonds.

Visit Cullinan by booking a tour through the following touring

operators:

Premier Diamond Tours: pdtours@iafrica.com

Cullinan Tours: www.cullinan­tours.co.za

Fundani Tourism: peterson@fundanitours.co.za

Cullinan Tourism & History CC: info@cullinantourismandhistory.co.za

Coordinates: 25°40ʹ22ʺS 28°31ʹ15ʺE

Visit Cullinan

www.petradiamonds.com

35 GAUTENG BUSINESS 2022


OVERVIEW

Construction and property

Logistics is a growth sector for property companies.

SECTOR INSIGHT

A light-frame steel hospital

has been constructed.

Fortress REIT took a big step in 2021 towards establishing its

Eastport Logistics Park as a significant logistics hub with the

signing of an agreement with Pick n Pay to jointly develop the

park which is located near to OR Tambo International Airport

on the busy R21 highway.

Once subdivisions and land transfers have been completed, the

supermarket chain will own 60% of the 36ha site while Fortress will

fund the expansion of facilities that will take place on the site over

time. This partnership with Pick n Pay is another step in Fortress

Logistics’ strategy of developing and owning two-thirds of its

portfolio in logistics. The park is due to be completed in 2023.

Logistics, often taken for granted in normal times, became an

even more important component of the supply chain during the

global lockdown and in the months that followed, with the second

half of 2021 characterised by blockages and delays.

Hammanskraal is the site of the construction of South Africa’s

first light-frame steel hospital. The need for speed in construction

of health facilities in the face of the Covid-19 outbreak made

the method adopted perfect for the purpose. Two companies

cooperated on the project (pictured), Concor Construction and

Futurecon. The thermal efficiency of the walls will help to reduce

the cost of maintaining the building.

An innovative scheme to build a new township in Gauteng

is backed by a retirement fund. The Transport Sector Retirement

Fund is building an integrated settlement in the Sedibeng District

Municipality south of Johannesburg. The R2.7-billion development

includes a shopping centre and will include a mix of housing types.

A large housing project south-east of Tshwane has been

designated a Strategic Integrated Project (SIP) which means that all of

the external bulk services will be

supplied by the Department of

Public Works and Infrastructure.

Balwin Properties will develop

the residential component of

Mooikloof Mega City and the

educational, commercial and

filling station erven will be sold

to a third party. The intention

is to build about 16 000

apartments, with the potential

to increase to 50 000. The

property is on Garsfontein Drive.

Another SIP is Malibongwe

Ridge, a mixed-use development

that is a joint venture between

the City of Johannesburg and

the Gauteng Department of

Human Settlements. Located

next to Cosmos City, housing for

5 500 families is expected to cost

R2.55-billion to develop.

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

Hartbeespoort 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,

GAUTENG BUSINESS 2022

36

Continued on p38


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engineering.

MPAMOT (formerly known as Malani Padayachee

& Associates, or MPA) is a 100% black womenowned

and managed consulting engineering

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Mrs Malani Padayachee-Saman (right) is the chief

executive officer, and Mrs Ipeleng Mkhari (left) is

MPAMOT’s chair of the board of directors.

MPAMOT Group and our subsidiaries, MPAMOT

Africa and MPAMOT Lesotho, have nearly 200 staff

members, with offices in Gauteng, the Western

Cape, KwaZulu Natal, Lesotho and various site

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clients across Africa, bringing comprehensive

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As a consultancy with multinational links, we have

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For more information, kindly visit our website

www.mpamot.com or email info@mpamot.com


OVERVIEW

Pick n Pay and Fortress REIT are developing the Eastport Logistics Park.

Credit: Fortress

more than 1.2-million subsidised houses have been built by

government entities 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

ONLINE RESOURCES

Construction Industry Development Board: www.cidb.org.za

Gauteng Partnership Fund: www.gpf.co.za

Johannesburg Development Agency: www.jda.org.za

Johannesburg Social Housing Company: www.joshco.co.za

SA Reit Association: www.sareit.co.za

services. The Johannesburg City

Improvement District Forum

shares information among

the CIDs. Expenditure by CIDs

collectively on supplementary

public space safety, cleaning and

maintenance is estimated to be

about 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

Newton was funded by the

GPF and implemented by

the Johannesburg Housing

Company (JHC) as one of the

first inner-city rejuvenation

projects. JHC is a leader in

converting bad buildings to

usable rental space.

The Johannesburg

Development Agency (JDA)

projects range from the

upgrading of Constitution Hill,

the Faraday Station precinct,

work on the Fashion District

and pavements of the inner city,

renovation of the Drill Hall and

the Newtown upgrade.

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 twobedroomed

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. ■

GAUTENG BUSINESS 2022

38


Information and

communications technology

Data centres are expanding and new ones are being built.

OVERVIEW

The biggest data centre on African soil is under construction

in Ekurhuleni. Teraco Data Environments secured a R2.5-billion

loan in 2021 to build the 50 000m² JB4 data centre on 6ha. The

centre will have 38MW of critical power load. The company

has five other centres, two of which are in Gauteng. Johannesburg is

also one of two South African cities to host a Microsoft

Azure data centre.

With several global companies choosing to station

their South African headquarters in Gauteng, the

province is well connected. More than 1 500km 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 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 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”.

The Council for Scientific and Industrial Research (CSIR) in

Pretoria hosts a new body aimed at preparing South Africa

ONLINE RESOURCES

eKasiLabs: www.theinnovationhub.com

Independent Communications Authority: www.icasa.org.za

Technology Innovation Agency: www.tia.org.za

SECTOR INSIGHT

The CSIR has launched a

4IR body.

Teraco’s Isando campus, JB3. Credit: Teraco

for the Fourth Industrial

Revolution (4IR), the South

African Affiliate Centre of the

World Economic Forum.

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. Several incentives

relevant to companies and

educational bodies in the ICT

sector are available from the

Department of Trade, Industry

and Competition (dtic). ■

39 GAUTENG BUSINESS 2022


OVERVIEW

Banking and financial services

One of Johannesburg’s stock exchanges has moved.

SECTOR INSIGHT

Nedbank has listed a

green bond.

The flurry of new activity in the financial sector has slowed.

Several new banks and exchanges have been launched in

South Africa since 2017, most of them in Johannesburg.

One of the stock exchanges, 4AX, has rebranded as the Cape

Town Stock Exchange and moved to that city while ZAR X had its licence

suspended in August 2021 by the Financial Sector Conduct Authority

(FSCA) because of concerns related to liquidity and capital adequacy.

Of the other new exchanges, Equity Express Securities Exchange (EESE)

trades in Black Economic Empowerment (BEE) and A2X had 56 listings and

a market cap of close to R4-trillion in October 2021, when Tiger Brands

announced that it would do a secondary listing on the exchange.

The decision by pharmaceutical giant Aspen Pharmacare

to conduct a secondary 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.

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.

The JSE is the world’s 19th-biggest exchange and about 344

companies are listed on the JSE or AltX, the JSE-owned exchange for

smaller companies.

In December 2021 Nedbank listed a R1.09-billion green bond

on the JSE, whose proceeds will be used to fund green residential

developments. The bond is floated in the JSE’s Sustainability Segment,

which serves as a platform for raising capital for green, social and

sustainable investment projects. The bond brings the number of

ONLINE RESOURCES

Credit: Unsplash

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

sustainability instruments listed

to 35, with a total issued amount

of over R17-billion.

The launch by Sanlam

Investments of a Sustainable

Infrastructure Fund is a sign of the

times. The South African state has

promised a huge infrastructure

drive but in the context of climate

change caused by the use of fossil

fuels, the investment community

is increasingly putting emphasis

on sustainability. Sanlam Group

will invest R6-billion in the fund

and aims to attract a further R5-

billion from institutional investors.

Investments will be made in

housing, transport, health,

water, waste, communication,

conventional energy and

renewable energy, a fast-growing

sector with enormous potential.

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. Naspers

Foundry is one of several investment

funds looking for opportunities

in the financial sector. Insurance

technology is of particular interest,

together with credit services and

payment systems. ■

GAUTENG BUSINESS 2022 40


OVERVIEW

Education and training

Tshwane University of Technology now offers asset maintenance.

The Tshwane Institute for Continuing Education (TICE),

a subsidiary of Tshwane University of Technology

Enterprise Holdings (TUTEH), has signed a partnership

with Optimal Assets Maintenance Solutions, a physical

asset management engineering and consultancy company.

The partnership will create short learning programmes in

asset maintenance and research projects will be undertaken

together. TICE offers skills development, continuing education

and professional development through research.

TUTEH, a wholly-owned company of the Tshwane University of

Technology (TUT), exists to generate and grow additional streams

of income for the university, separate from government subsidies,

student fees, donations and bequests.

In response to 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 high-growth 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.

A focus on water and energy underpins the newly-established

Knowledge Pele Academy in Kramerville, Johannesburg.

Independent power producer Pele Green Energy aims to develop

skills and entrepreneurship in rural, peri-urban 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.

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 overarching

body working on skills development and training.

ONLINE RESOURCES

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

National Research Foundation: www.nrf.ac.za

TUT Enterprise Holdings: www.tutenterprise.co.za

SECTOR INSIGHT

TVET colleges are

concentrating on 13

trade areas.

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.

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. ■

41

GAUTENG BUSINESS 2022


Commerce and Industry

Promoting and representing businesses in the economic powerhouse.

Promoting and representing businesses What is the geographic in the economic footprint powerhouse.

of the Chamber?

The areas we cover are: Randburg, Sandton, Fourways, Midrand

What and is Lanseria. the geographic footprint of the Chamber?

The areas we cover are: Randburg, Sandton, Fourways, Midrand

and What Lanseria. are the key functions of the Chamber?

Primarily to promote business, to facilitate introductions, to be the

What voice are of the business key functions at municipal, of the provincial Chamber? and government levels, in

Primarily defending to promote business business, areas to of facilitate poor decision-making introductions, to or be unintended the

voice consequences of business at of municipal, various acts provincial that and are government passed. We levels, also facilitate in

defending

opportunities

business

into

in

the

areas

SADC

of poor

regions

decision-making

and work very

or

closely

unintended

with many

consequences of various acts that are passed. We also facilitate

embassies regarding trade and tourism.

opportunities into the SADC regions and work very closely with many

embassies regarding trade and tourism.

What does the Chamber do to support SMMEs?

What One does of the the Chamber’s do primary to support focus SMMEs? areas is the development of

One SMMEs, of the finding Chamber’s opportunities primary focus for areas them, is business the development enhancement of in

SMMEs, training, finding helping opportunities with business for them, plans, business company enhancement registrations, in giving

Linda Blackbeard

training, direction helping to ideas with that business entrepreneurs plans, company might registrations, have. Teaching giving them

Linda Blackbeard

direction to form to joint ideas ventures that entrepreneurs with other might small have. businesses Teaching and them have an

to opportunity form joint ventures then to tender with other for work. small We businesses promote our and local have businesses an

opportunity being awarded then to work tender in our for work. areas. We promote our local businesses

being awarded work in our areas.

Does the RCCI interact with government?

Does the RCCI interact with government?

RCCI is affiliated to the only national chamber body, South African

RCCI is affiliated to the only national chamber body, South African

Chamber of Commerce & Industry (SACCI). Through SACCI important

Chamber of Commerce & Industry (SACCI). Through SACCI important

issues

issues

are

are

dealt

dealt

with

with

directly

directly

at government

at government

level.

level.

We are

We

also

are

heard

also

at

heard at

provincial provincial level level and and the the Chamber Chamber works works with with the City the of City Johannesburg, of Johannesburg,

Trade Trade and and Investment Investment SA SA as well as well as various as various national national government government

departments responsible for economic for economic development. development.

Are Are there particular challenges?

BIOGRAPHY

Randburg Chamber would would love love to embrace to embrace more more businesses. businesses. There is There is

so so much much opportunity around around and and we could we could facilitate facilitate more if more businesses if businesses

Linda Blackbeard ran her own own joined. joined. The The more more businesses businesses stand stand together together with their with local their chamber local chamber of of

interior design and hospitality

commerce, commerce, the the stronger stronger our our voice voice will be will at be municipal, at municipal, provincial provincial and and

company before taking up the government level.

company before taking up the government level.

reigns as CEO of the RCCI. She

reigns as CEO of the RCCI. She

is the SACCI Chamber Forum What does the future hold?

is

Chairlady

the SACCI

and

Chamber

a member

Forum

of Our

What

Electronic

does the

Certificate

future

of

hold?

Origin programme for export saves time

Chairlady the South African and Chamber member of of and Our is designed Electronic for Certificate South African of markets. Origin programme Businesses and for members export saves can time

the Commerce South African and Industry Chamber board of look and forward is designed to renewed for South focus, African positive markets. opportunities, Businesses and facilitation and members in can

Commerce of directors. and She Industry was awarded board the look SADC forward region to for renewed business focus, growth positive and opportunity. opportunities, and facilitation in

of the directors. Pan African She Award was in awarded 2018 in the SADC region for business growth and opportunity.

the recognition Pan African of her Award achievements in 2018 in Contact details

recognition in the Continental of her achievements

Lifetime Physical Contact address: details Unit G8 Atrium Terraces, 272 Oak Avenue,

in Achiever the Continental sector, CEO Global Lifetime Most Randburg, Physical Gauteng address: 2194. Unit Tel: G8 086 Atrium 101 9218 Terraces, | Fax: 086 212 2724407

Oak Avenue,

Achiever Influential sector, Women CEO in Global Business Most & Email: Randburg, admin@rcci.co.za Gauteng

49

2194. | Website: Tel: 086 www.rcci.co.za 101 9218 | Fax: 086 212 4407

Influential Government Women 2018 Awards. in Business & Email: admin@rcci.co.za | Website: www.rcci.co.za

Government 2018 Awards.

49

GAUTENG BUSINESS 2022 42


Randburg Chamber, which was founded in 1959,


OVERVIEW

Development finance

and SMME support

Workspaces are available for makers in wood.

Five workshops are to be established in Gauteng to assist 100

artisans with space to work with wood and to give them

connections to established businesses who might contract them.

Wine and spirits seller Pernod Ricard is teaming up

with the Gauteng Department of Economic Development to try

to create 1 000 new jobs through access to machinery and to a

virtual showroom where makers can display their creations to

prospective online clients. The City of Ekurhuleni Municipality has

also donated a warehouse in Thokoza. One of the beneficiaries is

Hosea Matlou (pictured), a self-taught carpenter and woodwork

instructor who designs and makes furniture, picture frames and

mirrors out of Hosea Studios.

Pernod Ricard ran a campaign (Phakamisa ispirit) over

the festive season to raise money for artisans to attend

SETA-accredited courses covering business management,

manufacturing, technology and accounting.

Equipment manufacturer Smith Capital Equipment has

received a grant from Isuzu Motors SA to help it make a cherry

picker. The company, which makes a range of aerial platforms, is

receiving the money as part of the motor company’s enterprise

development programme.

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.

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

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

SECTOR INSIGHT

Isuzu Motors SA is

supporting a local

equipment manufacturer.

support through subsidised

rental and mentorship and

training. The Automotive

Industry Development

Centre (AIDC), a subsidiary

of the Gauteng Growth and

Development Agency (GGDA),

manages the centre.

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 Small Enterprise

Development Agency (Seda)

is a subsidiary of the DSBD

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. ■

GAUTENG BUSINESS 2022

44


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