Gauteng Business 2022/23

The 2022/23 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.

The 2022/23 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.


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<strong>2022</strong>/<strong>23</strong> EDITION<br />








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<strong>Gauteng</strong> <strong>Business</strong> <strong>2022</strong> Edition<br />

Introduction<br />

Regional overview 8<br />

All of <strong>Gauteng</strong>’s metropolitan municipalities came under coalition<br />

governments after the local elections held in 2021. Voters are indicating<br />

they are fed up with corruption. It is at municipal level that citizens and<br />

businesses feel the effects of inefficiency and corruption and it is that<br />

sphere of government that needs the most work in the short term.<br />

Going green 11<br />

Dozens of <strong>Gauteng</strong> companies in multiple sectors are exploring<br />

ways to make their buildings more efficient, their processes less<br />

wasteful and their impact less harmful to the environment.<br />

Economic sectors<br />

Agriculture 20<br />

Hydroponic farms on rooftops are growing.<br />

Mining 21<br />

Tailings are proving lucrative in <strong>Gauteng</strong>.<br />

Energy 24<br />

Hydrogen fuel cells are attracting interest.<br />

Oil and gas 25<br />

An international investor is supporting a new LPG cylinder plant.<br />

Transport and logistics 28<br />

Roads and infrastructure spending is set to increase across the province.<br />

Manufacturing 32<br />

Corobrik’s new factory started producing product in 2021.<br />

Tourism 34<br />

Airlink has teamed up with successful international carriers.<br />

Construction and property 36<br />

Logistics is a growth sector for property companies.<br />

ICT 39<br />

Data centres are expanding and new ones are being built.<br />

Banking and financial services 40<br />

One of Johannesburg’s stock exchanges has moved.<br />

Education and training 41<br />

Tshwane University of Technology now<br />

offers asset maintenance.<br />

Development finance and<br />

SMME support 44<br />

Workspaces are available for makers<br />

in wood.<br />

References<br />

Key sector contents 18<br />

Overviews of the main economic<br />

sectors of <strong>Gauteng</strong>.<br />

GAUTENG BUSINESS <strong>2022</strong><br />




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

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

Credits<br />

Publishing director:<br />

Chris Whales<br />

Editor: John Young<br />

<strong>Business</strong> development<br />

manager: Shiko Diala<br />

Managing director: Clive During<br />

Online editor: Christoff Scholtz<br />

Designer: Tyra Martin<br />

Production: Aneeqah Solomon<br />

Ad sales:<br />

Gavin van der Merwe<br />

Sam Oliver<br />

Jeremy Petersen<br />

Gabriel Venter<br />

Vanessa Wallace<br />

Tahlia Wyngaard<br />

Administration & accounts:<br />

Charlene Steynberg<br />

Kathy Wootton<br />

Distribution and circulation<br />

manager: Edward MacDonald<br />

Printing: FA Print<br />

The <strong>2022</strong> edition of <strong>Gauteng</strong> <strong>Business</strong> is the 13th issue of this highly<br />

successful publication that has established itself as the premier<br />

business and investment guide for the <strong>Gauteng</strong> Province.<br />

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

the key economic sectors of the province, a special feature on the growth<br />

and significance of the green economy is included in this edition. Every sector<br />

from agriculture to transport and logistics is referenced, with several <strong>Gauteng</strong><br />

companies taking the lead in the field of creating a more sustainable future for<br />

themselves and for their clients.<br />

The fact that mining companies and others are starting to build facilities to<br />

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

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

precursor of what we can expect to see a lot more of in the future.<br />

The unexpected fall from power in the province’s three big metropolitan<br />

municipalities in 2021 of the political party that is in charge at provincial and national<br />

level, the African National Congress, is noted in the Regional Overview. Whether this<br />

presages a change beyond the borders of <strong>Gauteng</strong> in elections to come remains<br />

to be seen, but the huge budgets which now fall under the control of coalition<br />

governments in Johannesburg, Tshwane and Ekurhuleni will certainly serve to<br />

sharpen the focus of ANC election planners for national elections in 2024,<br />

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

of the print edition, the full content can also be viewed online at www.<br />

globalafricanetwork.com under e-books. Updated information on <strong>Gauteng</strong> is also<br />

available through our monthly e-newsletter, which you can subscribe to online at<br />

www.gan.co.za, in addition to our complementary business-to-business titles that<br />

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

new addition to our list of titles, African <strong>Business</strong>, which was launched in 2020. ■<br />

Chris Whales<br />

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


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

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

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

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

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

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

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

government departments, municipalities and companies.<br />

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

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

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

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

All of <strong>Gauteng</strong>’s metropolitan municipalities came under coalition<br />

governments after the local elections held in 2021. Voters are<br />

indicating they are fed up with corruption. It is at municipal level<br />

that citizens and businesses feel the effects of inefficiency and<br />

corruption and it is that sphere of government that needs the<br />

most work in the short term.<br />

By John Young<br />

The municipal elections held in South<br />

Africa in 2021 resulted in councillors in 66<br />

municipalities having to form coalitions<br />

to create majorities. Among these were<br />

<strong>Gauteng</strong>’s three metropolitan municipalities,<br />

Johannesburg, Tshwane and Ekurhuleni.<br />

These three cities represent, respectively,<br />

the economic centre of the national economy,<br />

the seat of the executive government and the<br />

manufacturing hub of the country. South Africa’s<br />

governing party, the African National Congress<br />

(ANC), the party of Nelson Mandela and the<br />

struggle for freedom from apartheid, recorded<br />

a vastly reduced vote count across the country.<br />

In the three <strong>Gauteng</strong> metros, the opposition<br />

Democratic Alliance was able to cobble together<br />

coalitions with five other parties to take over the<br />

mayoralties. These will not be stable coalitions –<br />

some of the ideological differences are big – but<br />

they have certainly put the ANC on notice that<br />

it can’t take things for granted in the run-up to<br />

national elections, which are due in 2024.<br />

If this strengthens the hand of the group<br />

within the ANC that wants to root out corruption,<br />

surely a big reason for the party losing support,<br />

then the country and the province will benefit.<br />

The country’s biggest opposition party, the<br />

Democratic Alliance, controls both the biggest<br />

metropolitan municipality and the provincial<br />

government in the Western Cape but the ANC<br />

still has a solid majority in the <strong>Gauteng</strong> provincial<br />

legislature. Various levels of government have<br />

departments called “Cooperative Governance”: with<br />

different parties in power at municipal and provincial<br />

level, that concept will be brought into play and the<br />

maturity of the political leaders will be tested.<br />

GAUTENG BUSINESS <strong>2022</strong><br />



Premier David Makhura has outlined the plans<br />

of the provincial government: “The development<br />

of single multi-tier Special Economic Zones (SEZ)<br />

is the primary anchor of our industrialisation<br />

agenda. It is our goal to have to have at least<br />

one zone in each district or metro, specialising in<br />

distinct sectors and industries in each corridor.”<br />

The National Department of Trade, Industry<br />

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

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

Industrial Policy Action Plan (IPAP). SEZs are<br />

designed to attract investment, create jobs and<br />

boost exports.<br />

About R3-billion has been invested in bulk<br />

infrastructure for the Tshwane Automotive SEZ<br />

with another R300-million to come on top of<br />

R4.3-billion from automotive suppliers and R15.8-<br />

billion from Ford Motor Company.<br />

The OR Tambo International Airport Industrial<br />

Development Zone (IDZ) opened in 2019 is<br />

focussed on jewellery manufacturing and agroprocessing.<br />

The IDZ’s four zones have attracted<br />

R1.5-billion in investments and the zone’s<br />

development is ongoing with other schemes<br />

such as the midfield cargo terminal and the<br />

development of the western commercial precinct.<br />

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

<strong>Gauteng</strong> Together” (GGT 2030), prioritises the<br />

economy, jobs and infrastructure, with the<br />

manufacturing sector earmarked as a key driver.<br />

Manufacturing strength<br />

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

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

to expand an already strong and diverse<br />

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

sector output in <strong>Gauteng</strong>, making it the fourth-largest<br />

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

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

Development Agency (GGDA), six out of 10 foreign<br />

direct investment (FDI) projects in <strong>Gauteng</strong> have<br />

flowed to the manufacturing sector and its subsectors.<br />

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

attracted 447 FDI projects valued at R264-billion,<br />

which created more than 69 000 jobs (FDI Markets).<br />

The GGDA is an implementing agency which<br />

aims to facilitate business enablement, develop<br />

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

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

Focussed support for these specific subsectors is<br />

intended to spur other investments: automotive<br />

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

agro-processing, pharmaceuticals and tertiary<br />

services such as BPO, ITC services, tourism and the<br />

knowledge economy.<br />

GGDA subsidiaries include The Innovation<br />

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

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

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

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

The Johannesburg Development Agency (JDA)<br />

plays a similar role as the City of Johannesburg’s<br />

development agency. JDA’s focus is on helping<br />

create resilient, sustainable and liveable urban<br />

areas in identified transit nodes and corridors. In<br />

15 years, 387 projects have been implemented.<br />

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

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

concentrating its efforts to build infrastructure and<br />

attract public and private sector investment:<br />

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

• Transportation and logistics<br />

• ICT, media and digital services<br />

• Tourism and hospitality<br />

• Agricultural value chain<br />

• Construction and infrastructure<br />

• Automotive, aerospace and defence<br />

• Financial services<br />

• Cultural and creative industries<br />

• Industrialisation of cannabis<br />

These priorities were announced before<br />

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

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

Tshwane House, the seat of municipal government and the<br />

council chamber. Credit: City of Tshwane<br />

9<br />

GAUTENG BUSINESS <strong>2022</strong>


especially with regard to tourism and hospitality<br />

which has suffered major setbacks during the<br />

local and international lockdowns.<br />

Overview of the province<br />

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

landmass but in every other respect it is a giant. The<br />

province is the nation’s key economic growth engine.<br />

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

of South Africa’s territory. The 14.3-million people<br />

living in <strong>Gauteng</strong> in 2017 generated a gross<br />

domestic product of R1.59-trillion, about a third of<br />

South Africa’s GDP. <strong>Gauteng</strong> recorded the highest<br />

provincial growth rate in 2019. The 0.6% rise was<br />

mainly driven by finance, real estate and business<br />

services, which is the dominant industry (StatsSA).<br />

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

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

Mpumalanga. The southern border of the province<br />

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

on the Highveld. The Witwatersrand, which runs<br />

through Johannesburg, marks the continental<br />

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

Indian Ocean, rivers running south drain into the<br />

Atlantic Ocean via the Vaal into the Orange River.<br />

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

river transfer systems. A major source<br />

of water is the Lesotho Water Highlands Project.<br />

The Witwatersrand was the source of the gold<br />

that drew so many thousands of people to the<br />

area in the late 19th century and was the origin<br />

of the word for South Africa’s currency, the “rand”.<br />

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

economic sectors: finance, manufacturing,<br />

commerce, IT and media among them. The<br />

Bureau of Market Research (BMR) has shown that<br />

<strong>Gauteng</strong> accounts for 35% of total household<br />

consumption in South Africa.<br />

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

estate and business, manufacturing, government<br />

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

accommodation. The creative industries (including<br />

advertising and the film sector) contribute<br />

significantly to the provincial economy.<br />

In Johannesburg, financial services and<br />

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

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

stock exchanges have recently received licences.<br />

<strong>Gauteng</strong> Premier David Makhura visited the Rosslyn plant of<br />

the Nissan Group of Africa to inspect the protocols that had<br />

been put in place to ensure the safety of works during the<br />

Covid-19 epidemic. Credit: Nissan<br />

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

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

automotive industry and many research institutions.<br />

The Ekurhuleni metropole has the largest<br />

concentration of manufacturing concerns, ranging<br />

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

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

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

combination of maize farming, tobacco production<br />

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

and iron-ore workings.<br />

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

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

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

Ekurhuleni (7%).<br />

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

of economic activity, it is also an important<br />

launching pad for local and international<br />

businesses to enter the African market. The<br />

country’s biggest airport, OR Tambo International<br />

Airport, is at the core of the province’s logistical<br />

network. Other airports include Rand Airport<br />

(Germiston), Wonderboom (Pretoria), Lanseria<br />

and Grand Central (Midrand).<br />

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

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

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

jurisdiction over the province. Johannesburg<br />

is also home to the Constitutional Court, South<br />

Africa’s highest court, and to a branch of the<br />

Labour Court and the Labour Appeal Court.<br />

The province has several outstanding<br />

universities, and the majority of South Africa’s<br />

research takes place at well-regarded institutions<br />

such as the Council for Scientific and Industrial<br />

Research (CSIR), the South African Bureau of<br />

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

Nuclear Energy Corporation (NECSA), the Human<br />

Sciences Research Council (HSRC) and several<br />

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

Council is done. ■<br />

GAUTENG BUSINESS <strong>2022</strong>

Going green<br />

Dozens of <strong>Gauteng</strong> companies in multiple sectors are exploring ways to<br />

make their buildings more efficient, their processes less wasteful and their<br />

impact less harmful to the environment.<br />

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

Every sector has potential for growth and<br />

innovation towards a more sustainable<br />

future and companies in <strong>Gauteng</strong> are<br />

showing the way.<br />

The announcement in 2021 by President Cyril<br />

Ramaphosa that the threshold for companies to<br />

produce their own electricity without a licence<br />

would be increased from 1MW to 100MW was widely<br />

welcomed. To protect the grid, generation projects<br />

are still required to obtain a grid connection permit.<br />

Large companies had been lobbying for this<br />

change to the power landscape for a long time. Not<br />

only will the policy relieve pressure on national utility<br />

Eskom but it will serve as a catalyst for massive new<br />

investment. Most of this new capacity will be in the<br />

form of renewable energy.<br />

One example in <strong>Gauteng</strong> is Gold Fields, which<br />

is building a 40MW solar power station at its South<br />

Deep mine at a cost of R660-million. Daily Maverick<br />

reports that Roger Baxter, CEO of the Minerals<br />

Council, has said that South Africa’s mining industry<br />

is ready to build 2GW of renewable energy, valued at<br />

more than R30-billion.<br />

South African mining companies are also looking<br />

at green hydrogen and taking advantage of the fact<br />

that many of the minerals needed to fire the new, lowcarbon<br />

economy are found in South Africa. Mines and<br />

smelters are among the most obvious big consumers<br />

of electricity, but modern technology means that data<br />

centres and even shopping malls can now produce<br />

their own energy.<br />

One of the biggest examples of this is the Mall of<br />

Africa in Waterfall City, where most of the huge roof is<br />

covered by what is believed to be the world’s largest<br />

integrated rooftop PV/diesel hybrid project. Attacq<br />

Property Group has undertaken to build sustainably<br />

across its portfolio. The installation will save 8 034<br />

tons of CO2 annually and will result in 157 fewer coal<br />

trucks on the road per year. The PV plant was installed<br />

by Solareff, which owns a majority stake in GridCars.<br />

Vukile Property Fund has decided to equip all of<br />

the malls in its portfolio with rooftop solar panels.<br />

Among its properties are malls in Boksburg and<br />

Soweto. The company says that installations across<br />

the group have the capacity to generate 2 089MWh<br />

annually. Retrofitting of light fittings has also taken<br />

place to improve energy efficiency.<br />

Absa Bank has followed up on its decision<br />

to take its central Johannesburg campus off the<br />

national electricity grid. Investments in a 6 000-panel<br />

rooftop solar system (which cost R10-million), the<br />

synchronisation of gas and diesel generators and<br />

GAUTENG BUSINESS <strong>2022</strong>


sophisticated water and underfloor heating systems<br />

have all contributed to massive energy savings. The<br />

bank estimates that the power it generates is 70%<br />

cleaner than that provided by the national grid.<br />

The rooftop solar installation at Absa’s Pretoria<br />

office provides 17% of its electricity needs and the<br />

bank intends to continue rolling out solar solutions in<br />

addition to investigating battery solutions in pursuit<br />

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

Many energy-intensive companies and<br />

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

Johannesburg, the Northern Wastewater Treatment<br />

Works, the largest of six wastewater plants serving the<br />

city, has its own electricity source in a 1.1MW biogas<br />

plant. It produces electricity using cogeneration<br />

(combined heat and power) and is helping the city<br />

to reduce expenditure on its water treatment works,<br />

which used to run to R100-million per year.<br />

A landfill site at Robinson Deep in<br />

Johannesburg has started generating 3MW of gas.<br />

This is one of five renewable energy projects that<br />

Energy Systems SA is running in Johannesburg<br />

and is the first landfill gas generation project to fall<br />

under the REIPPPP.<br />

In agriculture, there is urban and hydroponic<br />

farming, improved soil maintenance, better use<br />

of water and recycling and organic methods. The<br />

agricultural sector is also another source<br />

of organic waste which is being used to<br />

provide power. With thousands of cattle<br />

farmed near big cities to provide beef<br />

and dairy products, biogas is a useful<br />

byproduct. The Bronkhorstspruit Biogas<br />

Plant, run by Bio2Watt, has an installed<br />

capacity of 4.6MW which it produces<br />

from annual feedstock of about 120 000<br />

tons of organic waste.<br />

The plant is located in the Tshwane<br />

Metropolitan area on the premises of<br />

Beefcor, one of South Africa’s largest<br />

feedlots. The company has plans to<br />

roll out small plants for farmers or agriprocessors<br />

who want to produce power<br />

for themselves.<br />

At the Cavalier abattoir in Cullinan,<br />

biowaste conversion company ibert<br />

provides about a quarter of the power<br />

that the abattoir needs to function, at a competitive<br />

rate. In the process, all of the facility’s biowaste is<br />

disposed of.<br />

In construction and property, the green<br />

movement is growing apace. Apart from green<br />

building certification (administered by the Green<br />

Building Council of SA), there is now an even<br />

higher standard which developers and architects<br />

are striving for, Living Building Challenge, in which<br />

a building goes beyond being net zero to being<br />

regenerative (ie, producing more water and power<br />

than it uses).<br />

A recent headline, “Govt launches drive to green<br />

state properties” indicates that the state is moving<br />

in the green direction too. The Department of<br />

Public Works and Infrastructure recently launched<br />

an Integrated Renewable Energy and Resource<br />

Efficiency Programme (iREREP).<br />

Transport and logistics<br />

Eskom has announced that all staff cars will be EV<br />

in future. Companies in the transport and logistics<br />

sectors are moving quickly to prepare for a greener<br />

future. Another recent headline announced, “Sasol<br />

and Imperial logistics partner to reduce carbon<br />

footprint”. In this regard, gas is seen as important<br />

in helping South Africa transition to renewables<br />

The solar PV rooftop system at the Mall of Africa was the largest in the<br />

southern hemisphere when it was installed. Credit: Waterfall City<br />

GAUTENG BUSINESS <strong>2022</strong><br />


Recycling is a big part of the circular economy. Credit: PAMSA<br />

and away from carbon fuels. Petroleum Agency<br />

South Africa (PASA) and Sasol and organisations<br />

like the Council for Geoscience are working in these<br />

areas and logistics fleets are looking to use gas as<br />

well. <strong>Gauteng</strong> fleet entities such as Bulk Hauliers<br />

International Transport (BHIT) and SAB (which<br />

runs a massive national fleet of trucks) have signed<br />

agreements for gas suppliers from Renergen, the<br />

company running a big gas project in the Free<br />

State. Glass manufacturer Consol has also signed<br />

with them and TotalEnergies will establish a national<br />

distribution network.<br />

Energy efficiency is a growing interest for<br />

government and the private sector. The Department<br />

of Energy has an Energy Efficiency Directorate and<br />

there are other organisations such as Southern<br />

African Energy Efficiency Confederation (SAEEC);<br />

South African National Energy Development Institute<br />

(SANEDI); Productivity SA and the National Cleaner<br />

Production Centre (NCPC).<br />

Water is one of the key sectors where saving,<br />

reuse, recycling, filtration, storage, efficiency (nonleaking<br />

pipes) and new solutions are vital to progress<br />

towards a greener future. Rand Water’s environmental<br />

brand, “Water Wise”, attempts to make users aware of<br />

the need to value water and to use it wisely.<br />

In terms of recycling and reuse, the packaging<br />

sector and many companies and industry<br />

associations connected to plastics, rubber and paper<br />

are trying to mitigate harmful side-effects arising<br />

from the manufacture and use of their products. One<br />

of the supporters of CleanCitySA, an organisation<br />

aiming to clean up Johannesburg, is Plastics SA.<br />

Fibre Circle (the producer responsibility<br />

organisation for the South African paper and<br />

paper packaging sector) is working on compliance<br />

with national government’s Extended Producer<br />

Responsibility (EPR). Fibre Circle aims to improve<br />

the recovery and recycling of paper and paper<br />

packaging and to develop products from recycled<br />

paper fibre that are commercially viable in their<br />

own right. It wants to get packaging products off<br />

the streets and away from landfills. The organisation<br />

reports that 46% of locally-produced paper<br />

products contain sustainably-sourced virgin fibre<br />

and that 54% of local paper products contain<br />

recycled fibre.<br />

The Paper Manufacturers Association of South<br />

Africa (PAMSA) reports that many paper and pulp<br />

mills are using byproducts from the chemical pulping<br />

process as a biomass fuel to drive the mills. Examples<br />

include tree residue and “black liquor”. ■<br />

13 GAUTENG BUSINESS <strong>2022</strong>


Controlled Marketing model encourages<br />

close relationships with customers<br />

Old Mutual Provincial General Manager: Sales and Distribution, Mathapelo<br />

Sipamla, discusses some of the challenges facing business in <strong>Gauteng</strong>.<br />

How many branches does Old Mutual have in <strong>Gauteng</strong>?<br />

There are 31 branches, of which 29 are field branches and two<br />

are in-house. We have a staff complement of 494, which includes<br />

advisers, junior and senior management and admin staff.<br />

How can customers stay in touch or transact remotely?<br />

Our Controlled Marketing model encourages close relationships<br />

with customers. Advisers need to ensure they are their customers’<br />

go-to person. Our advisers own cellphones and laptops that<br />

assist them. During lockdown, we rolled out remote selling that<br />

allows the customer to accept a sale remotely though USSD.<br />

Mathapelo Sipamla<br />


Mathapelo Sipamla has been with<br />

Old Mutual for the past 18 years,<br />

advancing through the ranks from<br />

being a financial adviser when she<br />

first joined in March 2004. She is a<br />

driven and results-orientated sales<br />

leader who has a proven record of<br />

accomplishment in all the roles she has<br />

held within the organisation. She has<br />

an MBA from Henley <strong>Business</strong> School.<br />

In April 2021 she was appointed as the<br />

Provincial General Manager: Sales and<br />

Distribution for <strong>Gauteng</strong>.<br />

How has your business been affected by the Covid-19<br />

pandemic and what have you noticed about the businesses<br />

that you serve?<br />

We have been affected immensely as we could not make<br />

our targets, but also our staff’s earning potential was<br />

affected because they could not get to enough customers<br />

in order to make their targets.<br />

Two things are noticeable about businesses in the area: many<br />

businesses could not cope with the strain imposed by the various<br />

lockdowns and had either to close shop or retrench employees.<br />

Some businesses lost employees who died from Covid-19.<br />

All of this ultimately means the market potential has<br />

decreased significantly. It remains a problem, as most<br />

companies are not willing to hire and replace the staff they<br />

lost to Covid-19.<br />

What are your main offerings to customers?<br />

We are in the long-term insurance space so we offer life cover,<br />

funeral plans, investments and retirement annuities.<br />

What processes are followed in supporting CSI projects?<br />

We encourage our advisers to adopt community projects<br />

and submit an application for which we can provide finance<br />

of up to R20 000. They must also submit proof that they<br />

take the time to be there physically to assist with whatever<br />

project they are driving. We are engaged in a large number<br />

of projects across the province. ■<br />

GAUTENG BUSINESS <strong>2022</strong><br />




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Promoting small business<br />

Colin Francis, Operations Manager for Seda <strong>Gauteng</strong>, outlines some of the<br />

programmes available to entrepreneurs, from business diagnostics to training.<br />

What is the mandate of Seda <strong>Gauteng</strong>?<br />

The Small Enterprise Development Agency (Seda) is an agency of<br />

the Department of Small <strong>Business</strong> Development. It is mandated to<br />

implement government’s small business strategy; design and implement<br />

a standard and delivery network for small enterprise development and<br />

integrate government-funded small enterprise support agencies.<br />

Seda’s mission is to develop, support and promote small enterprises,<br />

ensuring their growth and sustainability in coordination and partnership<br />

with various role-players, including global partners, who make<br />

international best practices available to local entrepreneurs.<br />

Where are your regional branches located?<br />

Ekurhuleni, Kempton Park; Tshwane-Pretoria CBD; Johannesburg,<br />

Braamfontein.<br />

Colin Francis,<br />

Operations Manager<br />

What are the major challenges faced by small businesses?<br />

Access to finance and to business development services. Lack of market<br />

opportunities, poor infrastructure, overbearing legislation and lack of<br />

information.<br />

What impact has Covid-19 had on small business?<br />

Small businesses have been severely affected by Covid in that restrictions<br />

have hampered the potential for sales. Expensive data and digital<br />

platforms also stopped entrepreneurs from taking their businesses online.<br />

Many small businesses did not survive the hard lockdowns.<br />


After gaining a National Diploma<br />

in Extraction Metallurgy and<br />

Mining Technology from Technikon<br />

Witwatersrand, Colin graduated with<br />

a BTech from Unisa. After a spell as a<br />

learner metallurgist at Vaal Reefs, he<br />

worked for Columbus Stainless. He<br />

then branched out as a small business<br />

owner of a food company before<br />

becoming a Senior Industrial Advisor to<br />

the National Advisory Manufacturing<br />

Centre. He joined Seda in 2006 and was<br />

appointed in 2011 to his present position<br />

as Operations Manager, <strong>Gauteng</strong>.<br />

Has Seda run programmes to help SMMEs recover?<br />

Seda assisted the Department of Small <strong>Business</strong> Development and<br />

Sefa to roll out the <strong>Business</strong> Recovery Programme and the Covid<br />

Relief Programme.<br />

Where are the best opportunities in <strong>Gauteng</strong>?<br />

<strong>Gauteng</strong> is the economic powerhouse of the country and the sectors<br />

that flourish include the manufacturing, wholesale and retail, banking,<br />

services and ICT sectors. Due to the populous nature of the province,<br />

there are opportunities everywhere, from the numerous business parks<br />

to the business districts and the townships<br />

Does Seda encourage competitiveness and viability?<br />

Seda offers a wide range of services including business diagnostics,<br />

information dissemination and training.<br />

Does Seda assist women and youth?<br />

Seda assists all client on a needs basis. Seda partners with various<br />

stakeholders to ensure that these designated groups have access to<br />

tailormade programmes.

“We are agripreneurs,<br />

supplying equitably<br />

sourced and<br />

sustainably grown<br />

African Indigenous<br />

ingredients, including<br />

ancient grain and<br />

superfoods, connecting<br />

ethical producers with<br />

conscious consumers”<br />

Local Village (<strong>Gauteng</strong>)<br />

“Together Advancing Small Enterprise Development”<br />

Info Centre: 0860 103 703<br />

www.seda.org.za<br />

@Seda_dsbd<br />


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

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

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

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

production efficiency and vehicle quality. Credit: Ford Motor Company


Overviews of the main economic<br />

sectors of <strong>Gauteng</strong><br />

Agriculture 20<br />

Mining 21<br />

Energy 24<br />

Oil and gas 25<br />

Transport and logistics 28<br />

Manufacturing 32<br />

Tourism 34<br />

Construction and property 36<br />

ICT 39<br />

Banking and financial services 40<br />

Education and training 41<br />

Development finance and SMME support 44


Agriculture<br />

Hydroponic farms on rooftops are growing.<br />

The Urban Agriculture Initiative is a project of Wouldn’t It Be<br />

Cool (WIBC) and the Johannesburg Inner City Partnership.<br />

The project aims to establish an urban agricultural<br />

value chain in the inner-city with hydroponic farms on<br />

rooftops as the key element. WIBC piloted the concept with<br />

a young entrepreneur from Kagiso and implemented the first<br />

commercial farm in the project in 2017. Grant funding from Seda<br />

saw another 100 farms established. In Melville, Zakir Kathrada is<br />

growing rocket, baby spinach, gem lettuce and tomatoes on the<br />

roof of The Whippet Coffee, to whom he sells the produce. Urban<br />

farmer Puseletso Mamogale is shown in the picture on this page.<br />

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

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

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

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

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

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

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

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

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

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

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

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

accommodate 120 000 cattle. The feedmill processes 1 400 tons<br />

per day and the associated abattoir in Balfour in neighbouring<br />

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

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

company’s portfolio, which collectively processes 250 000 tons of<br />

animal feed annually. Kanhym Estates is the largest producer of<br />

pigs in the country. There are many poultry farm and production<br />

facilities in <strong>Gauteng</strong>. Companies include Astral Foods, RCL Foods<br />

and Daybreak Farms.<br />

The <strong>Gauteng</strong> Industrial Development Zone (GIDZ) located<br />

at OR Tambo International Airport has an agro-processing plant<br />

which is intended to encourage the export of high-value goods.<br />

The Provincial Government of <strong>Gauteng</strong> has set up Action Labs to<br />

focus on agriculture and agro-processing with a focus on land tenure<br />

issues and improving food security. If food producers can be linked to<br />


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

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

WIBC: http://wibc-w-live.azurewebsites.net/<br />


KLL Group has bought<br />

Tongaat Hulett’s<br />

starch assets.<br />

the value chain then township<br />

economies can benefit.<br />

In almost every aspect of the<br />

spatial planning being carried<br />

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

Government, agriculture<br />

and agro-processing are<br />

key components, either of<br />

Special Economic Zones (SEZ),<br />

industrial parks or agri-parks.<br />

Tongaat Hulett, best known<br />

as a sugar producer, has sold<br />

its starch business (with three<br />

milling plants in southern<br />

<strong>Gauteng</strong>) for R5.3-billion to the<br />

KLL Group, a wholly-owned<br />

subsidiary of Barloworld<br />

Logistics Africa. ■<br />

GAUTENG BUSINESS <strong>2022</strong><br />


Mining<br />

Tailings are proving lucrative in <strong>Gauteng</strong>.<br />



Harmony’s purchase of<br />

Mine Waste Solutions is<br />

paying off.<br />

<strong>Gauteng</strong> is home to many old mines which means that<br />

the province has to guard against many of the aftereffects<br />

of deep mining such as acid mine water and<br />

subsidence. The Council for Geoscience is actively<br />

engaged in research projects into such issues but the high prices<br />

that gold is attracting globally means that another byproduct of<br />

mining, tailings, has become more lucrative.<br />

Mine Waste Solutions, a tailings retreatment operation bought<br />

by Harmony from AngloGold Ashanti in 2020 and operated by<br />

subsidiary Chemwes, has performed well for the group. Production of<br />

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

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

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

AngloGold of Moab Khotsong, will result in it being the country’s<br />

biggest gold producer. With 350 000 new ounces coming from<br />

Mponeng, it could produce an annual total of 1.7-million ounces.<br />

A new company, Shallow Reefs Gold, has been created to pursue<br />

projects in the shallow reefs of the Witwatersrand Gold Basin. The<br />

company believes that the grade of the deposits makes for a good<br />

economic proposition, especially as the infrastructure required for<br />

shallow mining is much cheaper than for the deep mining that has<br />

characterised the sector in the past.<br />

Cullinan diamond mine is engaged in an expansion programme called<br />

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

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

of Mines. The School of Mining Engineering at Wits is the highest-ranked<br />

school at the university in terms of the QS World University Rankings.<br />


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

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

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

Credit: Harmony<br />

<strong>Gauteng</strong> is home to most of<br />

the research and training bodies<br />

associated with mining. Sibanye-<br />

Stillwater supports the Wits<br />

Mining Institute’s Digital Mining<br />

Laboratory (Digimine). AECI,<br />

the explosives and chemicals<br />

company, sponsors the Virtual<br />

Reality Mine Design Centre at<br />

the University of Pretoria.<br />

The Mandela Mining Precinct<br />

is a joint venture between three<br />

government departments and<br />

the Minerals Council South Africa<br />

which aims to develop research<br />

into mining and showcase the<br />

country’s manufacturing abilities.<br />

Mintek is an autonomous<br />

body based in Randburg which<br />

receives about 30% of its budget<br />

from the Department of Mineral<br />

Resources. The balance comes<br />

from joint ventures with private<br />

sector partners, or is earned<br />

in research and development<br />

income, the sale of services or<br />

products and from technology<br />

licensing agreements.<br />

Pretoria University has a<br />

Department of Mining Engineering,<br />

the University of South Africa offers<br />

three national diplomas in minerelated<br />

fields, the University of<br />

Johannesburg has mine-surveying<br />

courses and the Vaal and Tshwane<br />

Universities of Technology have<br />

engineering faculties. ■<br />

21<br />

GAUTENG BUSINESS <strong>2022</strong>


Cullinan Diamond Mine<br />

produces rare and<br />

exceptional “specials”<br />

The General Manager of the Cullinan Diamond Mine, Jaison Rajan, explains how<br />

infrastructure investment is extending the life of one of the world’s great mines.<br />

Why is Cullinan Diamond Mine often referred to as an<br />

“iconic” diamond mine?<br />

Cullinan Diamond Mine has earned its status as a result of<br />

it being probably the world’s most consistent supplier of<br />

exceptional stones. One of the first, and arguably the bestknown,<br />

was the Cullinan Diamond found at the mine in 1905.<br />

This stone, at 3 106ct, is still the largest diamond ever found,<br />

and jewels cut from it adorn the Royal Crown and Sceptre of<br />

the United Kingdom.<br />

Jaison Rajan, General Manager<br />


Jaison Rajan is a mining engineer with<br />

post-graduate Master’s qualifications<br />

in both mineral economics and<br />

business administration. He has<br />

over 20 years industry experience,<br />

having worked in various mineral<br />

commodities including heavy<br />

minerals, manganese, coal and<br />

diamonds. He is an accredited<br />

Professional Engineer with a Mine<br />

Manager’s certificate of competency<br />

(South Africa).<br />

Are there are other stones from the mine that could lay<br />

similar claims?<br />

Indeed! Cullinan Diamond Mine is also the source of most of the<br />

gem-quality Type II blue diamonds recovered and put to market.<br />

These diamonds are extremely rare, which is vouched for by the<br />

high prices per carat achieved when they are presented to the<br />

market. A recently recovered 39.34ct Type IIb blue stone sold for<br />

more than $40-million, which was the highest price that Petra<br />

has achieved for a single stone. Apart from this stone, there have<br />

been quite a number of other “specials”, both blue and white<br />

stones of exceptional quality with regards to both colour and<br />

clarity, many of which had been recovered by Petra since it took<br />

ownership of the mine in 2008. This includes the Blue Moon of<br />

Josephine, the Cullinan Dream and the Letlapa Tala Collection.<br />

It was already an old mine when Petra took over; how much<br />

life is left in it, and what is Petra doing to ensure its future?<br />

The mine is still an exceptional resource with prospects of a<br />

long life into the future. From what we currently know, the<br />

resource still has a potential life upwards of 50 years, subject<br />

to market and economic conditions. Realising the value and<br />

potential, Petra embarked on an intensive capital investment<br />

programme soon after acquiring it, including the further<br />

development of underground resources (the so-called<br />

“C-Cut”) and replacement of the old processing plant with a<br />

new, cutting-edge treatment facility that will serve the mine<br />

well into the future.<br />

GAUTENG BUSINESS <strong>2022</strong><br />


How does the mine’s location within a<br />

metropole affect your planning?<br />

It is a rather unique situation and does impact<br />

on our approach. We accept and believe that the<br />

operations of any mine, including ours, should<br />

first and foremost benefit its most immediate<br />

stakeholders, which are the communities in<br />

which we operate. Giving effect to this has<br />

many facets, which includes ensuring that we<br />

recruit locally, providing local households with<br />

a stable income, focussing on procurement of<br />

local supply to boost local business, especially<br />

SMMEs, while contributing to their development,<br />

social investment programmes that are aimed<br />

at effectively addressing the needs of our<br />

communities and more. Our core operations<br />

also have impacts on the community, such as<br />

environmental impacts (the potential of dust,<br />

noise and vibration) as well as the naturally<br />

occurring scaling of the pit. All of these are<br />

closely monitored, mitigating actions are taken<br />

and we maintain open communication with the<br />

community around these issues.<br />

Apart from the mine, the town of Cullinan is also<br />

somewhat of a tourism destination. What is the<br />

mine’s involvement in that?<br />

Cullinan is indeed a little town with a colourful<br />

history, much of which relates to the mine, and<br />

it is rightly a tourist favourite. From Cullinan<br />

Diamond Mine’s side, we believe that tourism will<br />

become an increasingly important contributor<br />

to the local economy and we are therefore<br />

supporting the private tourism industry in<br />

various ways, not least of which is by being the<br />

only underground mine allowing underground<br />

tours as part of its tourism offering. This support<br />

further extends to financial and promotional<br />

contributions, and we are excited to see the<br />

effect that these initiatives are having on the<br />

growth of tourism in the town.<br />

The Covid-19 pandemic has had a profound<br />

impact on everything we do. How did it impact<br />

Cullinan Diamond Mine?<br />

When the news broke, Petra proactively put<br />

controls in place to implement a Mandatory<br />

Code of Practice for the prevention, mitigation<br />

and management of Covid-19. This included<br />

various controls for screening, social distancing,<br />

sanitising and wearing of masks, which allowed<br />

us to continue our operations at sustainable<br />

levels soon after the initial lockdown. Realising<br />

the impact of the pandemic on our communities,<br />

much of our focus also went into distress relief<br />

within our communities, in conjunction with<br />

partners such as the City of Tshwane, through<br />

the employee-funded Petra Hardship Fund<br />

that contributed foodstuffs and other relief<br />

materials. This included the distribution of<br />

more than 700 food hampers and 500 cloth<br />

masks to the community, assistance to health<br />

workers, schools and the Tshwane Metro Police<br />

with supplies such as surgical masks, sanitiser,<br />

disinfectant and sterile gloves, all to the value of<br />

more than R500 000. ■<br />

<strong>23</strong><br />

GAUTENG BUSINESS <strong>2022</strong>


Energy<br />

Hydrogen fuel cells are attracting interest.<br />

A<br />

locally-developed stationary hydrogen fuel cell is the<br />

subject of a test at the refinery of Impala Platinum<br />

in Springs, east of Johannesburg. Engineering News<br />

reported in 2021 that the first signs are positive.<br />

Implats has donated 16ha for the project and is invested in<br />

AP Ventures, a London-based company that invests<br />

in companies that use platinum group metals to<br />

promote the fight against climate change.<br />

Gold Fields is on course to build a 40MW solar power<br />

plant at its South Deep mine west of Johannesburg.<br />

Harmony, which has several mines in <strong>Gauteng</strong>, is already<br />

operating a 30MW solar plant in the neighbouring Free<br />

State province.<br />

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

rely on the mining industry to drive their economies may<br />

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

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

in other provinces but the potential for REDZs in <strong>Gauteng</strong><br />

is huge, because vast amounts of energy needed to drive<br />

the country’s biggest economy.<br />

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

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

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

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

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

recommissioning of power stations.<br />

In Johannesburg, the Northern Wastewater Treatment Works<br />

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

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

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

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

projects that Energy Systems SA has in Johannesburg. At the<br />

Cavalier abattoir in Cullinan, biowaste conversion company<br />

ibert provides about a quarter of the power that the abattoir<br />

needs to function.<br />

Absa Bank has followed up on its decision to take its central<br />

Johannesburg campus off the national grid. Investments in<br />

a 6 000-panel rooftop solar system (which cost R10-million),<br />


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

South African National Energy Development Institute: www.sanedi.org.za<br />

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


Ford Motor Company has a<br />

plan to go off grid.<br />

A 100kw natural gas baseload fuel cell powers the offices<br />

of Minerals Council SA in Johannesburg.<br />

Credit: MineralsCouncil SA<br />

the synchronisation of gas<br />

and diesel generators and<br />

sophisticated water and<br />

underfloor heating systems<br />

have all contributed to massive<br />

energy savings.<br />

The rooftop solar installation<br />

at Absa’s Pretoria office provides<br />

17% of its electricity needs<br />

and the bank intends rolling<br />

out solar solutions for another<br />

five offices soon in addition to<br />

investigating battery solutions<br />

in pursuit of what it calls “net<br />

zero offices”.<br />

Ford is spending R135-million<br />

on building a solar carport at its<br />

Silverton plant that will produce<br />

13.5MW. The project is part of a<br />

bigger project to take the whole<br />

plant off the grid, Project Blue Oval.<br />

Ford is working with Uhuru Africa,<br />

a joint venture between Uhuru<br />

Energy and SolarAfrica Energy. ■<br />

GAUTENG BUSINESS <strong>2022</strong><br />



Oil and gas<br />

An international investor is supporting a new LPG cylinder plant.<br />


Glass manufacturer<br />

Consol has signed a<br />

new gas contract.<br />

Credit: BHIT<br />

A<br />

new liquefied petroleum gas cylinder manufacturing<br />

plant has attracted funding from J Sassoon<br />

Group. Bluedrop Energy will build its LGP plant in<br />

Johannesburg with technical assistance from an Israeli<br />

company and Fluor. Bluedrop will also be an LPG wholesalerand<br />

composite LPG cylinder manufacturer in Africa. The R300-million<br />

committed by Sassoon to the <strong>Gauteng</strong> project is part of a much<br />

bigger commitment the investment firm is making to invest<br />

in South Africa more generally: a figure of $50-billion over five<br />

years has been mooted.<br />

Glass manufacturer Consol, which has three plants in <strong>Gauteng</strong>,<br />

has signed a contract to buy liquid natural gas (LNG) from Renergen,<br />

the company that is developing a significant field in the neighbouring<br />

province of the Free State. Bespoke depots will be developed to cater<br />

to industrial clients such as Consol.<br />

Renergen is taking orders for its product from logistics companies<br />

such as Bulk Hauliers International Transport (BHIT) for 50 of its trucks<br />

(pictured), which should lead to lower operating and maintenance<br />

costs. South African Breweries is another client.<br />

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

400 natural gas refuelling sites across South Africa with a focus on the taxi<br />

and logistics sectors. The first sites will be Johannesburg and Tshwane.<br />

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

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

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

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

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

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


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

South African Oil & Gas Alliance: www.saoga.org.za<br />

South African Petroleum Industry Association: www.sapia.co.za<br />

and advises companies on<br />

conversions.<br />

The major economic sectors<br />

using gas are the metals sector<br />

and the chemical, pulp and<br />

paper sector. Brick and glass<br />

manufacturers are also big<br />

consumers. National policy is<br />

driving a switch to the use of gas.<br />

A national Gas Utilisation Master<br />

Plan (GUMP) is being developed.<br />

The country’s biggest<br />

supplier of industrial heating<br />

fluids, FFS Refiners, supplies<br />

this product out of a plant<br />

at Chloorkop while the<br />

company’s Evander site is<br />

responsible for heavy fuel oils.<br />

Evander also has a tank with<br />

installed capacity of 8 500m³.<br />

Egoli Gas has a pipeline<br />

network that extends over<br />

1 200km in and around<br />

Johannesburg and the company<br />

has 7 500 domestic, industrial<br />

and commercial customers. The<br />

company that owns Egoli Gas,<br />

Reatile, has a 30% stake in Vopak<br />

and a stake in CNG Holdings.<br />

The regulator and promoter<br />

of oil and gas exploration<br />

in South Africa, Petroleum<br />

Agency South Africa, has<br />

awarded coalbed methane gas<br />

and natural gas rights in the<br />

provinces on <strong>Gauteng</strong>’s border,<br />

Free State and KwaZulu-Natal. ■<br />

25<br />

GAUTENG BUSINESS <strong>2022</strong>

FOCUS<br />

Gas can boost the national<br />

economy and start the country<br />

on the path to zero emissions<br />

Dr Phindile Masangane, the CEO of Petroleum Agency<br />

South Africa, notes that recent gas discoveries could<br />

support the country’s economic recovery and its<br />

transition to a clean energy future.<br />

Today the biggest threat to humanity is<br />

climate change, and the biggest threat to<br />

SA’s social stability is the high unemployment<br />

rate.<br />

As the global economy recovers from the<br />

devastating effects of Covid-19, demand for oil and<br />

gas has gone up significantly. If there was ever a<br />

need for proof that oil and gas still drive the global<br />

economy, recent statistics demonstrate the trend.<br />

The world’s developed economies industrialised on<br />

the back of oil and gas production and use. Now, just as<br />

Africa is on the cusp of being a significant gas producer<br />

and is making plans to use such gas for power<br />

generation, industrialisation and economic growth,<br />

the negative effects of greenhouse gas emissions on<br />

the environment have become undeniable.<br />

The urgency for action to mitigate the risk of<br />

climate change is no longer debatable. Between<br />

1990 and 2018 the top five emitters have<br />

produced more than 50% of greenhouse gas<br />

emissions. During the same period SA contributed<br />

1% to global emissions. This is by no measure<br />

insignificant, and as a responsible global citizen SA<br />

must take steps to reduce its carbon footprint.<br />

The UN Framework Convention on Climate<br />

Change was established in 1992 to coordinate the<br />

global response to mitigate the threat of climate<br />

change, and specifically to get countries to commit<br />

to policies and plans that will ensure that the<br />

average global temperature rise is kept less than<br />

1.5°C above pre-industrial levels.<br />

The International Energy Agency (IEA) proposes<br />

that to achieve this goal the world’s energy sector must<br />

reach net zero emissions by 2050. In its global energy<br />

net zero 2050 pathway the IEA acknowledges that<br />

there is no single pathway to this goal, as developed<br />

and developing countries face different socioeconomic<br />

challenges and have contributed disproportionately to<br />

greenhouse gas emissions to date.<br />

What a number of environmental interest<br />

groups seem to be ignoring in the IEA “Net Zero<br />

by 2050” report is the acknowledgment that there<br />

will be a differentiated approach to a clean energy<br />

future, taking into consideration the cost of the<br />

new clean energy technologies and the economic<br />

consequences of transitioning for each country. The<br />

IEA emphasises that each country must develop its<br />

own pathway to a net zero emission future.<br />

South Africa’s economy has been<br />

predominantly powered by coal, which is also a<br />

significant contributor to the country’s economy in<br />

terms of GDP as well as employment.<br />

In addition to coal, SA imports oil, gas and<br />

petroleum products for its energy needs as the<br />

upstream petroleum industry is still at a nascent<br />

stage. The two recent world-class offshore gas<br />

GAUTENG BUSINESS <strong>2022</strong><br />


"<br />

"<br />

Mafikeng<br />

"<br />

"<br />

"<br />

"<br />

"<br />

"<br />

Molteno<br />

"<br />

Klerksdorp<br />

"<br />

"<br />

Welkom<br />

"<br />

Virginia<br />

"<br />

"<br />

Aliwal North<br />

"<br />

"<br />

Queenstown<br />

"<br />

"<br />

"<br />

Kroonstad<br />

"<br />

"<br />

Indwe<br />

"<br />

" Maseru<br />

"<br />

"<br />

"<br />

" Lephalale<br />

"<br />

"<br />

"<br />

Elliot<br />

"<br />

"<br />

"<br />

Maclear "<br />

Modimolle<br />

"<br />

Bela-Bela<br />

"<br />

"<br />

Bethlehem<br />

"<br />

Frankfort<br />

"<br />

"<br />

"<br />

Evander<br />

Umtata<br />

"<br />

Mokopane<br />

"<br />

"<br />

"<br />

"<br />

Witbank<br />

"<br />

"<br />

Secunda<br />

Standerton<br />

"<br />

Harrismith<br />

"<br />

Polokwane<br />

"<br />

"<br />

"<br />

Tshipise<br />

"<br />

"<br />

Makhado<br />

"<br />

"<br />

Ermelo<br />

Volksrust "<br />

"<br />

" Newcastle<br />

Estcourt<br />

"<br />

"<br />

Musina<br />

"<br />

Dannhauser<br />

"<br />

Utrecht<br />

"<br />

Pietermaritzburg<br />

"<br />

"<br />

Vryheid<br />

"<br />

Port Shepstone<br />

"<br />

"<br />

"<br />

Phalaborwa<br />

"<br />

Mbabane<br />

"<br />

Pafuri<br />

Nongoma<br />

"<br />

"<br />

"<br />

Richards Bay<br />

St. Lucia<br />

"<br />

FOCUS<br />

Renergen is currently the only onshore petroleum production<br />

rights holder in South Africa. The company’s Virginia Gas<br />

Project in the Free State is ramping up to phase two, based on<br />

one of the richest helium concentrations in the world.<br />

discoveries in the Outeniqua basin are the biggest<br />

petroleum discoveries made in South Africa.<br />

The development of these discoveries has the<br />

potential to replace more than 2 300MW of dieselfired<br />

electricity generation, thereby reducing the<br />

carbon emissions by more than 50% while eliminating<br />

sulphur oxide and nitrogen oxide emissions. Gas is<br />

therefore an obvious bridge to a lower carbon future.<br />

The Petroleum Agency SA awaits the licensee<br />

of these gas discoveries submitting its production<br />

right and environmental authorisation applications<br />

when the exploration right expires, or earlier. The<br />

agency expects the licensee to use world-class<br />

technologies and standards to minimise the effects<br />

of the gas and gas condensate production on the<br />

environment, while maximising the in-country<br />

benefit or local content from this development to<br />

support SA’s economic recovery.<br />

These discoveries could indeed support both<br />

the country’s economic recovery and its transition<br />

to a clean energy future.<br />

Shale and biogenic gas prospects<br />

Onshore exploration opportunities are represented<br />

by unconventional resources such as shale gas in<br />

the south-central Karoo, coalbed methane in the<br />

coalfields of the east and northern sectors of the<br />

country and biogenic gas in the Virginia and Evander<br />

regions. However, geological analysis is showing<br />

that there may well be significant potential for<br />

conventional oil and gas resources onshore.<br />

South Africa has a history of political stability<br />

and the new UPRD bill [Upstream Petroleum<br />

Resources Development Bill] will assist the<br />

Agency in expediting exploration through close<br />

management of acreage allocation and work<br />

programmes. These positive factors create a<br />

conducive environment for PASA to pursue<br />

its mandate of attracting investment into the<br />

upstream petroleum industry.<br />

The draft bill provides greater policy certainty<br />

and a stable environment for investment in<br />

the South African oil and gas sector. It provides<br />

security of tenure by combining the rights for the<br />

exploration, development and production phase<br />

under one permit.<br />

As far as the issuing of exploration rights over<br />

the last 18 months is concerned, a total of 21<br />

exploration rights for both onshore and offshore<br />

were issued during this period, including renewals<br />

and new exploration rights.<br />

As of December 2020, there is no longer a<br />

moratorium on applications for rights onshore,<br />

other than those for shale gas in a specified<br />

area covering the central Karoo. Other onshore<br />

applications continue to be received and processed<br />

in terms of the MPRDA. The moratorium for shale<br />

gas rights and new offshore applications remains<br />

in place and is expected to be lifted with the<br />

enactment of the hydraulic fracturing regulations<br />

(for environmental management and water use)<br />

for the shale gas extraction technologies. ■<br />

Locality<br />

Coal Field<br />

SOUTH<br />

Gas discovery<br />

Provincial boundary<br />

Karoo Basins<br />

AFRICA<br />

North West<br />

Free State<br />

Bloemfontein<br />


BASIN<br />

Waterberg<br />

Free State<br />


Pretoria<br />

Johannesburg<br />

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

Lesotho<br />


Mopane<br />

Limpopo<br />


Witbank<br />

Highveld<br />

Tuli<br />

Tshipise<br />


Springbok Flats<br />

Ermelo<br />

Utrecht<br />

Klip Rivier<br />

Pafuri<br />

KwaZulu-Natal<br />

Mpumalanga<br />

Kangwane<br />

Swaziland<br />

Vryheid<br />

Nongoma<br />

Somkele<br />

Durban<br />

Northern Cape<br />

Eastern Cape<br />

Molteno<br />

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



Transport and logistics<br />

Roads and infrastructure spending is set to increase<br />

across the province.<br />


DHL Forwarding has invested<br />

in new capacity.<br />

The infrastructure associated with large housing estates such as Steyn City<br />

is substantial, as are the roads that surround and serve the developments.<br />

Credit: Steyn City<br />

The <strong>Gauteng</strong> Department of Roads and Transport has a<br />

pipeline of 67 projects with a combined value of R<strong>23</strong>-billion.<br />

Of these projects, 13 – valued at R6.6-billion – are private<br />

sector initiatives and the various road, construction and design<br />

projects are expected to be implemented over the decade to 2031.<br />

Among the private companies that will be involved in projects<br />

are property companies Attacq Waterfall Investment, Steyn City and<br />

Century Properties and mining company Cullinan.<br />

A feasibility study is underway to examine extending the<br />

<strong>Gauteng</strong> Rapid Rail Integrated Network. The current network has<br />

10 stations spread over 80km and the extension would add 146km<br />

and 19 new stations.<br />

The estimated R2-billion that was due to be spent on adding to the<br />

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

long-term plans to expand the Gautrain network are still on course.<br />

Transnet Rail Engineering (TRE) has a major presence in<br />

<strong>Gauteng</strong> and the metropolitan lines that ferry commuters are run<br />

by the Passenger Rail Agency (PRASA). The Wits Metrorail system<br />

serves Johannesburg and its surrounds. Park Station, in the north of<br />

the central business district, is the largest station in Africa and acts<br />

as the metropolitan hub.<br />

DHL Global Forwarding has spent R126.5-million on a new<br />

facility in the Skyparks <strong>Business</strong> Estate, located next to OR Tambo<br />

International Airport. The<br />

new floorspace of 13 000m²<br />

(most of which is warehouse<br />

space) doubles the company’s<br />

current footprint.<br />

A total of 82% of South<br />

Africa’s air cargo is transported<br />

through OR Tambo International<br />

Airport and <strong>Gauteng</strong> has several<br />

cargo and freight handling<br />

facilities well-equipped to deal<br />

with rail and road deliveries and<br />

despatches.<br />

A specific goal of the<br />

Provincial Government of<br />

<strong>Gauteng</strong> is to make the Transnet<br />

Tambo-Springs Logistics<br />

Gateway the biggest inland<br />

logistics hub and dry port in<br />

Africa by 2030.<br />

The Tambo-Springs Gateway<br />

near Katlehong is an intermodal<br />

facility which can transfer<br />

containers from rail or road to<br />

storage facilities and ultimately<br />

to the customer. Existing freight<br />

rail lines run through the site<br />

and link it to the seaports of<br />

Durban, Cape Town and Ngqura<br />

(Port Elizabeth). The aim with<br />

this new facility is to improve<br />

efficiency. It is run by the<br />

Tambo Springs Development<br />

Company. The intention is to<br />

add to the port:<br />

GAUTENG BUSINESS <strong>2022</strong><br />



• a logistics park (transportation, processing, manufacture,<br />

warehousing and distribution)<br />

• a business park with a retail element<br />

• a residential component<br />

• an agro-industrial section.<br />

The Provincial Government of <strong>Gauteng</strong> is stressing the<br />

importance of digital competence (“smart mobility”) in the<br />

transport sector as ever-more complex transactions take place<br />

across international borders. This will only grow as the effect of the<br />

African Continental Free Trade Area (AfCTA), signed in 2019, comes<br />

into effect, allowing for greater and freer trade across the continent.<br />

The health of the transport and logistics networks of the province<br />

is key to any economic growth plans. The provincial government<br />

has identified logistics hubs, the road network, intermodal facilities,<br />

rolling stock, and buses and taxis as key components of the drive to<br />

transform, modernise and reindustrialise the regional economy.<br />

Road infrastructure projects are intended to bring in other major<br />

investments and connect new economic nodes such as the Tambo<br />

Springs Logistics Gateway, the planned new megacities (Vaal River<br />

City and Lanseria) and the new Special Economic Zones with<br />

current economic nodes and existing townships. In the short term,<br />

18 major roads will be rehabilitated, upgraded and constructed,<br />

especially in Sedibeng and the West Rand.<br />

The OR Tambo International Airport Special Economic<br />

Zone (ORTIA SEZ) has diversified beyond the existing Jewellery<br />

Manufacturing Precinct in the shape of a R400-million agroprocessing<br />

plant.<br />

The concept of an aerotropolis is for the airport to become a<br />

hub of economic activity in the same way that cities anchor various<br />

economic sectors that grow up around the centre.<br />

Airports<br />

OR Tambo International Airport caters for more than 20-million<br />

passengers every year.<br />

Lanseria Airport has grown in importance with kulula, FlySafair<br />

and Mango using the airport located to the north of Johannesburg.<br />


Airports Company South Africa: www.acsa.co.za<br />

Road Freight Association of South Africa: www.rfa.co.za<br />

South African Association of Freight Forwarders: saaff.org.za<br />

South African National Roads Agency: www.sanral.co.za<br />

Credit: DHL Global Forwarding<br />

It is a convenient landing point<br />

for travellers bound for regional<br />

centres like Rustenburg in the<br />

North West.<br />

Four airlines continued to<br />

offer flights during the Covid-19<br />

lockdown: FlySafair, Airlink,<br />

Cemair and Mango. Three<br />

airlines went into business<br />

rescue: SAA, SA Express and<br />

Comair (which is a British<br />

Airways franchisee and runs the<br />

low-cost kulula brand).<br />

<strong>Gauteng</strong> has several smaller<br />

airports that host mostly<br />

commercial aircraft:<br />

• Rand Airport in Germiston<br />

• Grand Central Airport in<br />

Midrand<br />

• Wonderboom Airport in<br />

Pretoria North<br />

• Waterkloof Air Force base,<br />

south of Pretoria.<br />

The Commercial Aviation<br />

Manufacturing Association<br />

South Africa (CAMASA) reports<br />

that 50 companies are active in<br />

the sector, employing more than<br />

3 000 people in highly skilled<br />

jobs. Almost all the activity is<br />

around Johannesburg and Cape<br />

Town and the sector (which<br />

encompasses aero-structures<br />

and systems, manufacturing,<br />

design and engineering) is<br />

responsible for R3-billion in<br />

exports every year. ■<br />

29 GAUTENG BUSINESS <strong>2022</strong>

Automotive Aftermarket <strong>Business</strong><br />

Support Scheme<br />

Overview<br />

The automotive aftermarket business support scheme supports and develops small and independent<br />

automotive aftermarket enterprises, including informal businesses located in townships and villages.<br />

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

insurance companies and uninsured vehicle owners, and has a bias towards businesses located in<br />

townships and rural areas.<br />

Objectives<br />

The objectives of the scheme are to:<br />

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

(motor body repairs) businesses<br />

• Support motor and other mechanics to operate authorised service centres<br />

• Support small and independent auto-spares shops to operate profitable spare parts centres<br />

• Support the formalisation of informal automotive entrepreneurs into formal fitment centres.<br />

Support Support<br />

Financial Financial support support<br />

• 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<br />

repairers, repairers, mechanics, mechanics, and and auto auto spares spares shops shops and and auto auto fitment fitment centres centres<br />

• 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<br />

support support<br />

• 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)<br />

Among Among others others these these may may include: include:<br />

• Automotive • Automotive workshop workshop service service management management training training and and support. support.<br />

• <strong>Business</strong> • <strong>Business</strong> management management support support and and mentorship mentorship through through the Unemployed the Unemployed Graduate Graduate Scheme, Scheme, or or<br />

SEDA SEDA <strong>Business</strong> <strong>Business</strong> Advisors Advisors and/ and/ or services or services of business of business professionals professionals<br />

• 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<br />

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

Qualifying criteria<br />

Every application will be assessed in terms of the following criteria:<br />

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

• Must be an informal or micro-business or cooperative<br />

• Registered as a legal entity with the Companies and Intellectual Property Commission and South<br />

African Revenue Service<br />

• 100% South African ownership<br />

• 70% of employees must be South African<br />

• Valid South African identity documents<br />

• Minimum trading period (six months)<br />

• Must have a valid business bank account (including newly opened)<br />

• Willing to participate in the revolving credit facility as organised by the Department of Small <strong>Business</strong><br />

Development or any of its agencies through a participating bank<br />

• Must be operating in a township or village<br />

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

acquire an Occupational Health and Safety Act compliance certificate<br />

Who can apply?<br />

All auto mechanics, such as motor mechanics, heavy equipment mechanics, tractor, and forklift<br />

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

shops.<br />

Application process<br />

How to apply:<br />

1. Complete the Automotive Aftermarkets Support online application form<br />

2. Complete all the mandatory fields<br />

3. Upload the required supporting documents<br />

4. Submit your application online to trep@sefa.org.za<br />

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

www.seda.org.za<br />

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


Manufacturing<br />

Corobrik’s new factory started producing product in 2021.<br />


Several Metair subsidiaries will<br />

benefit from Ford’s expansion.<br />

Ford’s expansion project at Silverton will create jobs along the value<br />

chain. Credit: Ford Motor Company<br />

A<br />

new factory in Carltonville produced its first bricks in<br />

2021. The R800-million Corobrik Kwastina factory has<br />

reduced costs in the manufacturing process by 50%<br />

and consumes 70% less gas than previous methods.<br />

At full capacity, Kwastina will be able to produce 100-million<br />

bricks per year.<br />

Manufacturing contributes 14% to <strong>Gauteng</strong>’s real economy<br />

output and provides 40% of South Africa’s manufacturing overall.<br />

Manufacturing related to the mining industry, historically the<br />

lynchpin of the <strong>Gauteng</strong> economy, is still important.<br />

Employer organisations like the Manufacturing Circle and<br />

government at national and provincial levels are engaging in<br />

initiatives to grow the sector, including incentives such as the<br />

Manufacturing and Competitiveness Enhancement Programme<br />

(MCEP) of the Department of Trade, Industry and Competition (dtic).<br />

Sectors that have received support include plastics,<br />

pharmaceuticals, chemicals, metal fabrication, transport equipment<br />

and agri-processing. The Support Programme for Industrial<br />

Innovation (SPII), run by the Industrial Development Corporation<br />

(IDC) on behalf of the dtic, promotes technology development.<br />

Original equipment manufacturer Ford announced a $1-billion<br />

investment in South Africa in 2021. Expanded production (to<br />

installed capacity of 200 000 units) at the company’s <strong>Gauteng</strong> plant<br />

will create 1 200 direct jobs and<br />

a further 10 000 jobs along the<br />

supply chain.<br />

In response to Ford’s<br />

investment, auto component<br />

and battery manufacturer<br />

Metair will establish a new<br />

logistics facility at Silverton.<br />

Several Metair subsidiaries,<br />

including Hesto Harnesses,<br />

Unitrade, Automould and<br />

Lumotech, have signed<br />

agreements to supply Ford with<br />

a wide range of products.<br />

All of <strong>Gauteng</strong>’s large<br />

automobile manufacturers are<br />

investing in new model production.<br />

Nissan is spending R3-billion on<br />

production of the Navara pick-up<br />

vehicle. Other major investments<br />

include R6.1-billion by BMW at<br />

Rosslyn and R260-million by<br />

BMW on an expanded campus at<br />

Midrand. UD Trucks, a part of the<br />

Volvo group, will assemble the<br />

Croner heavy commercial vehicle<br />

at Rosslyn.<br />

<strong>Gauteng</strong> is also home<br />

to a strong automotive<br />

components industry, together<br />

with several bus and truck<br />

assembly plants. These include<br />

Scania, TFM Industries and<br />

MAN Truck and Bus South<br />

Africa, as well as the Chinese<br />

GAUTENG BUSINESS <strong>2022</strong><br />



truck manufacturer FAW, which owns an assembly plant in Isando.<br />

Beijing Automotive Works (BAW) assembles taxis at Springs.<br />

Armoured cars are produced by the Paramount Group. DCD<br />

Protected Mobility manufactures armoured cars in Boksburg, which<br />

are branded as Vehicle Mounted Mine Detectors. In nearby Benoni,<br />

BAE Systems OMC designs and manufactures protected vehicles.<br />

The Eastern Corridor of <strong>Gauteng</strong>, centred on the metropole<br />

of Ekurhuleni, is consolidating its position in manufacturing by<br />

leveraging the advantages of hosting the OR Tambo International<br />

Airport and related Special Economic Zones and industrial parks.<br />

Ekurhuleni Metropolitan Municipality has the greatest<br />

concentration of manufacturing enterprises, especially between<br />

Wadeville and Alrode, south-west of Alberton. Germiston is the<br />

country’s biggest rail junction and Transnet Engineering has invested<br />

hundreds of millions of rands in new equipment at its facility there.<br />

Aeroton is the site of SEW-EURODRIVE’s new head office and<br />

factory which will bring under one roof several of the company’s<br />

activities which were previously in different parts of the country.<br />

The R200-million development is about three times larger than the<br />

existing head office premises, located in the same suburb.<br />

The Provincial Government of <strong>Gauteng</strong> plans to bolster<br />

manufacturing capacity in the province’s western areas. The<br />

priorities are mining and mineral beneficiation, capital equipment<br />

and machinery, agriculture and agro-processing, tourism, retail and<br />

economic development in townships.<br />

Packaging company Nampak has metals, plastic, paper and<br />

glass operations at various locations. It is the market leader in<br />

beverage cans. The country’s biggest glass producer, Consol Glass,<br />

has facilities in Clayville, Wadeville and Nigel.<br />

Household products manufacturer Unilever represents<br />

an example of the lighter industrial capacity of the East Rand.<br />

Kellogg’s, Kimberly-Clark South Africa and Procter & Gamble all have<br />

significant manufacturing capacity in the area. Corrugated paper<br />

manufacturer Corruseal has purchased the Enstra Mill in Springs<br />

from Sappi, giving it greater control of production.<br />

The southern portion of <strong>Gauteng</strong> around Vanderbijlpark and<br />

Vereeniging is synonymous with steel production. Flat iron is made at the<br />

ArcelorMittal plant. Scaw Metals has a chain-making factory in Vereeniging.<br />

There are 35 aluminium processing firms in <strong>Gauteng</strong>, involved in<br />

both secondary processing to produce foils, cans, bars, rods and sheets,<br />

with final fabrication in the form of die-casting and sheet metal work.<br />

Within <strong>Gauteng</strong>, the automotive and packaging industries are the chief<br />

consumers of these products.<br />


Centre for Advanced Manufacturing: www.cfam.co.za<br />

Chemical and Allied Industries’ Association: www.caia.co.za<br />

<strong>Gauteng</strong> Department of Economic Development: www.ecodev.gpg.gov.za<br />

Manufacturing Circle: www.manufacturingcircle.co.za<br />

Credit: Corobrik<br />

AECI is a large manufacturing<br />

company with its roots in the<br />

mining industry. It comprises two<br />

principal divisions: AEL Mining<br />

Services (with a large factory<br />

site at Modderfontein south of<br />

Johannesburg) and Chemical<br />

Services, which presides over 20<br />

separate companies (including<br />

Senmin, the group’s mining<br />

chemicals company).<br />

More than half of the<br />

companies operating in<br />

the food and beverage<br />

sector in South Africa are in<br />

<strong>Gauteng</strong>, including Nestlé,<br />

Tiger Brands, Pioneer Foods,<br />

RCL, AVI and Astral. There are<br />

approximately 4 000 food<br />

processing companies in the<br />

province, employing more<br />

than 100 000 people.<br />

Although there are more<br />

than 200 pharmaceutical<br />

firms in the country, large<br />

companies dominate the field,<br />

with Aspen Pharmacare (34%)<br />

and Adcock Ingram (25%)<br />

the two key players, followed<br />

by Sanofi, Pharmaplan and<br />

Cipla Medpro. Among the<br />

other big international brands<br />

active in <strong>Gauteng</strong> are Merck,<br />

which has a 55 000m² plant<br />

at Modderfontein, and Pfizer<br />

SA, which runs a laboratory in<br />

Sandton among its facilities in<br />

South Africa. ■<br />

33 GAUTENG BUSINESS <strong>2022</strong>


Tourism<br />

Airlink has teamed up with successful international carriers.<br />


Growing <strong>Gauteng</strong> Together<br />

(GGT2030) plans to boost<br />

the tourism sector.<br />

Airlink, which ended its franchise agreement after SAA went<br />

into business rescue, has signed deals with Qatar Airways,<br />

Emirates and United Airlines, giving travellers on those successful<br />

international carriers easy access to a wide range of<br />

Southern African destinations and St Helena.<br />

Single-ticket arrangements and one-stop baggage check-ins<br />

will facilitate easier travel in a difficult time. Airlink also has a service<br />

that connects travellers with certain game lodges. Airlink boasts an<br />

on-time performance consistently better than 95%.<br />

When the Marriott International hotel group closed three of<br />

its South African hotels during the Covid-19 lockdown, Tsogo Sun<br />

Hotels, which owns a controlling stake in all three hotels, stepped<br />

up its commitment by agreeing to bring them into its portfolio,<br />

keep them open and run them.<br />

One of these hotels is the The Mount Grace in the Magaliesberg<br />

which was developed by the Brand family and was the sister<br />

hotel to The Grace in Rosebank. Tsogo bought and restored The<br />

Grace and it currently operates as 54 on Bath. The Tsogo group<br />

believes that demand for conferencing, weddings and shorter<br />

family getaways will grow and that The Mount Grace, with its close<br />

proximity to Johannesburg, is in a good position to respond to<br />

those markets.<br />

Tsogo Sun Holdings has split its casino and hotel operations to<br />

unlock value in the two sectors. With a market cap of R25-billion,<br />

Tsogo is the country’s biggest hotel group. It has 36 hotels and<br />

three casinos in <strong>Gauteng</strong>. The hotel brands cover four market<br />

segments, and they include a handful of stand-alone hotels such as<br />

the Palazzo (at Montecasino) and the boutique hotel in Rosebank.<br />


Cradle of Humankind: www.maropeng.co.za<br />

<strong>Gauteng</strong> Tourism Authority: www.gauteng.net<br />

Johannesburg Tourism Company: www.joburgtourism.com<br />

SunSquare, Southern Sun<br />

Hotels, Southern Sun Resorts,<br />

Garden Court and StayEasy are<br />

among the group’s brands.<br />

Marriott International has<br />

retained most of its properties.<br />

In partnership with the Amdec<br />

Group, Marriott spent about<br />

R1-billion on the Marriott<br />

Hotel Melrose Arch and<br />

Marriott Executive Apartments<br />

Johannesburg Melrose Arch.<br />

Buying into Protea Hotels has<br />

also given Marriott access to<br />

other African countries.<br />

Although all projections<br />

about the tourism sector and its<br />

potential for growth and for job<br />

creation were short-circuited<br />

by the Covid-19 pandemic, the<br />

fact remains that the sector can<br />

grow quickly and it is a good<br />

job creator.<br />

Growing <strong>Gauteng</strong> Together<br />

(GGT2030) is a plan of action<br />

formulated by the <strong>Gauteng</strong><br />

Provincial Government<br />

which intends to transform,<br />

modernise and industrialise<br />

the provincial economy. The<br />

expansion of the tourism<br />

sector is seen as one of the key<br />

methods of achieving those<br />

goals. This was emphasised<br />

when the 2020 State of the<br />

Province Address included<br />

Tourism and Hospitality as one<br />

of 10 “high-growth” sectors. ■<br />

GAUTENG BUSINESS <strong>2022</strong><br />


Cullinan South Africa<br />

Cullinan is a small town in the <strong>Gauteng</strong> province of South Africa. It is<br />

located 30 km (19 mi) east of the city of Pretoria along the diamond<br />

route.<br />

Cullinan earned its place in history with the discovery of the Cullinan<br />

diamond in 1905, the largest rough gem diamond ever found at 3,106<br />

carats. The Cullinan Diamond Mine is also renowned as a source of large,<br />

high­quality gem diamonds, including Type II stones, as well as being the<br />

world’s most important source of very rare blue diamonds.<br />

Visit Cullinan by booking a tour through the following touring<br />

operators:<br />

Premier Diamond Tours: pdtours@iafrica.com<br />

Cullinan Tours: www.cullinan­tours.co.za<br />

Fundani Tourism: peterson@fundanitours.co.za<br />

Cullinan Tourism & History CC: info@cullinantourismandhistory.co.za<br />

Coordinates: 25°40ʹ22ʺS 28°31ʹ15ʺE<br />

Visit Cullinan<br />

www.petradiamonds.com<br />

35 GAUTENG BUSINESS <strong>2022</strong>


Construction and property<br />

Logistics is a growth sector for property companies.<br />


A light-frame steel hospital<br />

has been constructed.<br />

Fortress REIT took a big step in 2021 towards establishing its<br />

Eastport Logistics Park as a significant logistics hub with the<br />

signing of an agreement with Pick n Pay to jointly develop the<br />

park which is located near to OR Tambo International Airport<br />

on the busy R21 highway.<br />

Once subdivisions and land transfers have been completed, the<br />

supermarket chain will own 60% of the 36ha site while Fortress will<br />

fund the expansion of facilities that will take place on the site over<br />

time. This partnership with Pick n Pay is another step in Fortress<br />

Logistics’ strategy of developing and owning two-thirds of its<br />

portfolio in logistics. The park is due to be completed in 20<strong>23</strong>.<br />

Logistics, often taken for granted in normal times, became an<br />

even more important component of the supply chain during the<br />

global lockdown and in the months that followed, with the second<br />

half of 2021 characterised by blockages and delays.<br />

Hammanskraal is the site of the construction of South Africa’s<br />

first light-frame steel hospital. The need for speed in construction<br />

of health facilities in the face of the Covid-19 outbreak made<br />

the method adopted perfect for the purpose. Two companies<br />

cooperated on the project (pictured), Concor Construction and<br />

Futurecon. The thermal efficiency of the walls will help to reduce<br />

the cost of maintaining the building.<br />

An innovative scheme to build a new township in <strong>Gauteng</strong><br />

is backed by a retirement fund. The Transport Sector Retirement<br />

Fund is building an integrated settlement in the Sedibeng District<br />

Municipality south of Johannesburg. The R2.7-billion development<br />

includes a shopping centre and will include a mix of housing types.<br />

A large housing project south-east of Tshwane has been<br />

designated a Strategic Integrated Project (SIP) which means that all of<br />

the external bulk services will be<br />

supplied by the Department of<br />

Public Works and Infrastructure.<br />

Balwin Properties will develop<br />

the residential component of<br />

Mooikloof Mega City and the<br />

educational, commercial and<br />

filling station erven will be sold<br />

to a third party. The intention<br />

is to build about 16 000<br />

apartments, with the potential<br />

to increase to 50 000. The<br />

property is on Garsfontein Drive.<br />

Another SIP is Malibongwe<br />

Ridge, a mixed-use development<br />

that is a joint venture between<br />

the City of Johannesburg and<br />

the <strong>Gauteng</strong> Department of<br />

Human Settlements. Located<br />

next to Cosmos City, housing for<br />

5 500 families is expected to cost<br />

R2.55-billion to develop.<br />

By 2030 <strong>Gauteng</strong> will have<br />

two huge new cities, socially<br />

diverse, digitally connected<br />

and ecologically responsible<br />

and sustainable. That’s if the<br />

Provincial Government of<br />

<strong>Gauteng</strong> brings to fruition its<br />

plans for the west (Lanseria to<br />

Hartbeespoort Dam) and in<br />

the south, where Vaal River City<br />

will stretch from Vereeniging to<br />

Sasolburg in the Free State.<br />

In the 25 years since South<br />

Africa has been a democracy,<br />

GAUTENG BUSINESS <strong>2022</strong><br />

36<br />

Continued on p38

Providing skills and<br />

expertise in consulting<br />

engineering.<br />

MPAMOT (formerly known as Malani Padayachee<br />

& Associates, or MPA) is a 100% black womenowned<br />

and managed consulting engineering<br />

and development company, with more than 24<br />

years of experience in the infrastructure and built<br />

environment.<br />

Mrs Malani Padayachee-Saman (right) is the chief<br />

executive officer, and Mrs Ipeleng Mkhari (left) is<br />

MPAMOT’s chair of the board of directors.<br />

MPAMOT Group and our subsidiaries, MPAMOT<br />

Africa and MPAMOT Lesotho, have nearly 200 staff<br />

members, with offices in <strong>Gauteng</strong>, the Western<br />

Cape, KwaZulu Natal, Lesotho and various site<br />

offices. We offer a vast range of services to our<br />

clients across Africa, bringing comprehensive<br />

capability and proficiency while supplying a great<br />

depth of knowledge and service in this rapidlydeveloping<br />

sector.<br />

As a consultancy with multinational links, we have<br />

the ability to draw on a range of international skills<br />

and insights from our global network. MPAMOT’s<br />

ability to apply broad-ranging expertise and<br />

experience gives us a decisive edge in analysing<br />

problems and coming up with creative, sustainable<br />

solutions with added value on projects.<br />

Our dedicated energy, infrastructure, transport and<br />

advisory teams provide a wide resource pool of<br />

expertise covering many aspects of engineering,<br />

technology and project management.<br />

MPAMOT’s highly skilled, experienced and<br />

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to local, regional and global clients:<br />


• Building structures<br />

• Industrial buildings<br />

• Civil/structural building services<br />

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• PPCM<br />


• Highways<br />

• Bridges<br />

• Pavements<br />

• Transport planning<br />

ENERGY<br />

• Transmission and distribution<br />

• System studies<br />

• Thermal<br />

• Renewable energy<br />

• Wind and photo-voltaic<br />

• Environmental and social<br />


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• Technical advisory<br />

• Water advisory<br />

• Digital advisory<br />

• Development impact<br />

• Employment creation<br />

For more information, kindly visit our website<br />

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


Pick n Pay and Fortress REIT are developing the Eastport Logistics Park.<br />

Credit: Fortress<br />

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

government entities in <strong>Gauteng</strong>. Provincial government has<br />

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

Release programme and it intends finishing incomplete housing<br />

projects in Alexandra, Evaton, Kliptown, Bekkersdal and Winterveldt.<br />

Bodies such as the National Housing Finance Corporation,<br />

Indlu and Umastandi (social capital entrepreneurs) are working<br />

together with provincial authorities to find ways to formalise and<br />

monetise the township market so that sustainable incomes can<br />

be generated and affordable housing and rental stock becomes<br />

more readily available.<br />

An important concept for developers in Johannesburg is the<br />

tax incentive that accompanies the Urban Development Zone<br />

(UDZ). The City of Johannesburg and the South African Property<br />

Owners Association (SAPOA) have developed a database for all UDZ<br />

properties. Information about the owner of the plot, the valuation<br />

and zoning rights is available for every stand.<br />

Various “improvement districts” have also been created, for<br />

example the RID (Retail Improvement District) where businesses in a<br />

designated area pay levies to secure improved cleaning and security<br />


Construction Industry Development Board: www.cidb.org.za<br />

<strong>Gauteng</strong> Partnership Fund: www.gpf.co.za<br />

Johannesburg Development Agency: www.jda.org.za<br />

Johannesburg Social Housing Company: www.joshco.co.za<br />

SA Reit Association: www.sareit.co.za<br />

services. The Johannesburg City<br />

Improvement District Forum<br />

shares information among<br />

the CIDs. Expenditure by CIDs<br />

collectively on supplementary<br />

public space safety, cleaning and<br />

maintenance is estimated to be<br />

about R61-million annually.<br />

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

Fund (GPF) has attracted more<br />

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

sector funding for affordable<br />

housing in the province since<br />

2012. The Brickfields housing<br />

and rental development in<br />

Newton was funded by the<br />

GPF and implemented by<br />

the Johannesburg Housing<br />

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

first inner-city rejuvenation<br />

projects. JHC is a leader in<br />

converting bad buildings to<br />

usable rental space.<br />

The Johannesburg<br />

Development Agency (JDA)<br />

projects range from the<br />

upgrading of Constitution Hill,<br />

the Faraday Station precinct,<br />

work on the Fashion District<br />

and pavements of the inner city,<br />

renovation of the Drill Hall and<br />

the Newtown upgrade.<br />

Private developer Indluplace<br />

Properties has purchased nine<br />

large apartment blocks, taking<br />

its total buildings in central<br />

Johannesburg CBD, Berea and<br />

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

are bachelor pads, 22% are twobedroomed<br />

flats. The listed<br />

company (its major shareholder<br />

is Arrowhead) intends to<br />

“aggressively grow its portfolio”<br />

of high-yielding properties as it<br />

believes the rental market has<br />

huge potential. ■<br />

GAUTENG BUSINESS <strong>2022</strong><br />


Information and<br />

communications technology<br />

Data centres are expanding and new ones are being built.<br />


The biggest data centre on African soil is under construction<br />

in Ekurhuleni. Teraco Data Environments secured a R2.5-billion<br />

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

centre will have 38MW of critical power load. The company<br />

has five other centres, two of which are in <strong>Gauteng</strong>. Johannesburg is<br />

also one of two South African cities to host a Microsoft<br />

Azure data centre.<br />

With several global companies choosing to station<br />

their South African headquarters in <strong>Gauteng</strong>, the<br />

province is well connected. More than 1 500km of<br />

network fibre has been connected throughout the<br />

province, with 1 066 sites such as schools, health<br />

facilities, libraries and community centres giving<br />

community members and entrepreneurs the chance to<br />

be connect with the digital world. A <strong>Gauteng</strong> Growth<br />

and Development Agency (GGDA) subsidiary, The Innovation Hub,<br />

has a programme called eKasiLabs which supports entrepreneurs<br />

and young people with good business ideas.<br />

The biggest investors in new technology are banks and<br />

other players in the financial sector, where technology is rapidly<br />

lowering the barriers to entry for new businesses. This trend is<br />

illustrated by the rapid development of new exchanges which are<br />

based on sophisticated ICT hardware and software.<br />

One of the provincial government’s stated goals is to get<br />

several ICT initiatives to work together. If the work of The<br />

Innovation Hub, several eKasi laboratories, the Tshimologong<br />

precinct, universities and research institutes could be integrated,<br />

a more powerful ecosystem would be the result.<br />

A High-Tech Special Economic Zone (SEZ) is another idea that<br />

is being pursued. Making broadband connectivity and free Wi-<br />

Fi available to poor households in the province is another task.<br />

<strong>Gauteng</strong>’s Premier will appoint a Digital Transformation Advisory<br />

Panel to assist in driving these initiatives.<br />

Various large spatial plans for the province include an element<br />

whereby these new cities or settlements will be built as “smart cities”.<br />

The Council for Scientific and Industrial Research (CSIR) in<br />

Pretoria hosts a new body aimed at preparing South Africa<br />


eKasiLabs: www.theinnovationhub.com<br />

Independent Communications Authority: www.icasa.org.za<br />

Technology Innovation Agency: www.tia.org.za<br />


The CSIR has launched a<br />

4IR body.<br />

Teraco’s Isando campus, JB3. Credit: Teraco<br />

for the Fourth Industrial<br />

Revolution (4IR), the South<br />

African Affiliate Centre of the<br />

World Economic Forum.<br />

The “Tshepo 1 Million”<br />

campaign links the provincial<br />

government with the<br />

successful Harambee Youth<br />

Employment Accelerator and<br />

more than 40 large companies.<br />

Both Johannesburg and<br />

Tshwane have free Wifi<br />

networks with Tshwane’s<br />

covering 780 zones in places<br />

such as libraries, educational<br />

institutions and clinics.<br />

The Small Enterprise<br />

Development Agency (Seda) runs<br />

the SoftstartBTI ICT incubator in<br />

Midrand and Tuksnovation, a<br />

high-tech incubator, at Pretoria<br />

University. Several incentives<br />

relevant to companies and<br />

educational bodies in the ICT<br />

sector are available from the<br />

Department of Trade, Industry<br />

and Competition (dtic). ■<br />

39 GAUTENG BUSINESS <strong>2022</strong>


Banking and financial services<br />

One of Johannesburg’s stock exchanges has moved.<br />


Nedbank has listed a<br />

green bond.<br />

The flurry of new activity in the financial sector has slowed.<br />

Several new banks and exchanges have been launched in<br />

South Africa since 2017, most of them in Johannesburg.<br />

One of the stock exchanges, 4AX, has rebranded as the Cape<br />

Town Stock Exchange and moved to that city while ZAR X had its licence<br />

suspended in August 2021 by the Financial Sector Conduct Authority<br />

(FSCA) because of concerns related to liquidity and capital adequacy.<br />

Of the other new exchanges, Equity Express Securities Exchange (EESE)<br />

trades in Black Economic Empowerment (BEE) and A2X had 56 listings and<br />

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

announced that it would do a secondary listing on the exchange.<br />

The decision by pharmaceutical giant Aspen Pharmacare<br />

to conduct a secondary listing on one of South Africa’s newest<br />

exchanges, A2X, suggests good timing by the people behind the<br />

latest trend in the country’s financial services sector.<br />

A2X has attracted nearly 20 companies in a wide range of sectors<br />

in less than two years, with a primary focus on secondary listings.<br />

Patrice Motsepe’s African Rainbow Capital is an investor in A2X.<br />

The JSE is the world’s 19th-biggest exchange and about 344<br />

companies are listed on the JSE or AltX, the JSE-owned exchange for<br />

smaller companies.<br />

In December 2021 Nedbank listed a R1.09-billion green bond<br />

on the JSE, whose proceeds will be used to fund green residential<br />

developments. The bond is floated in the JSE’s Sustainability Segment,<br />

which serves as a platform for raising capital for green, social and<br />

sustainable investment projects. The bond brings the number of<br />


Credit: Unsplash<br />

Association for Savings and Investment South Africa: www.asisa.org.za<br />

Chartered Institute of Government Finance, Audit and Risk Officers:<br />

www.cigfaro.co.za<br />

Financial Sector Conduct Authority: www.fsca.co.za<br />

sustainability instruments listed<br />

to 35, with a total issued amount<br />

of over R17-billion.<br />

The launch by Sanlam<br />

Investments of a Sustainable<br />

Infrastructure Fund is a sign of the<br />

times. The South African state has<br />

promised a huge infrastructure<br />

drive but in the context of climate<br />

change caused by the use of fossil<br />

fuels, the investment community<br />

is increasingly putting emphasis<br />

on sustainability. Sanlam Group<br />

will invest R6-billion in the fund<br />

and aims to attract a further R5-<br />

billion from institutional investors.<br />

Investments will be made in<br />

housing, transport, health,<br />

water, waste, communication,<br />

conventional energy and<br />

renewable energy, a fast-growing<br />

sector with enormous potential.<br />

Sanlam has entered two<br />

partnerships in the insurance<br />

market. African Rainbow Life has<br />

launched life-cover policies in the<br />

low and middle-income market, in<br />

association with Sanlam and African<br />

Rainbow Capital. Sanlam is also in<br />

a venture with Capitec. Naspers<br />

Foundry is one of several investment<br />

funds looking for opportunities<br />

in the financial sector. Insurance<br />

technology is of particular interest,<br />

together with credit services and<br />

payment systems. ■<br />

GAUTENG BUSINESS <strong>2022</strong> 40


Education and training<br />

Tshwane University of Technology now offers asset maintenance.<br />

The Tshwane Institute for Continuing Education (TICE),<br />

a subsidiary of Tshwane University of Technology<br />

Enterprise Holdings (TUTEH), has signed a partnership<br />

with Optimal Assets Maintenance Solutions, a physical<br />

asset management engineering and consultancy company.<br />

The partnership will create short learning programmes in<br />

asset maintenance and research projects will be undertaken<br />

together. TICE offers skills development, continuing education<br />

and professional development through research.<br />

TUTEH, a wholly-owned company of the Tshwane University of<br />

Technology (TUT), exists to generate and grow additional streams<br />

of income for the university, separate from government subsidies,<br />

student fees, donations and bequests.<br />

In response to demand for a more skilled workforce, the<br />

Provincial Government of <strong>Gauteng</strong> has promised by 2025 to<br />

establish in every district at least two schools of specialisation<br />

linked to the 10 high-growth sectors that have been identified.<br />

Public libraries and community centres will become places where<br />

online courses in artisan and digital skills will be readily available.<br />

A focus on water and energy underpins the newly-established<br />

Knowledge Pele Academy in Kramerville, Johannesburg.<br />

Independent power producer Pele Green Energy aims to develop<br />

skills and entrepreneurship in rural, peri-urban and township<br />

communities. The KP Academy has formulated energy and water<br />

SETA-approved courses and runs artisan training programmes,<br />

learnerships, short courses and workshops.<br />

Technical and Vocational Education and Training (TVET)<br />

colleges are concentrating on 13 trade areas, including<br />

bricklayers, millwrights, boilermakers and riggers. <strong>Gauteng</strong> has<br />

eight TVET colleges.<br />

The National Skills Authority (NSA) works with Sector<br />

Education Training Authorities (SETAs) in carrying out the National<br />

Skills Development Strategy (NSDS). The Human Resource<br />

Development Council of South Africa (HRDCSA) is an overarching<br />

body working on skills development and training.<br />


<strong>Gauteng</strong> Department of Education: www.education.gpg.gov.za<br />

National Research Foundation: www.nrf.ac.za<br />

TUT Enterprise Holdings: www.tutenterprise.co.za<br />


TVET colleges are<br />

concentrating on 13<br />

trade areas.<br />

Tertiary<br />

Three of South Africa’s top<br />

five business schools are in<br />

<strong>Gauteng</strong>: the Wits <strong>Business</strong><br />

School, the University of<br />

South Africa’s (Unisa’s)<br />

Graduate School of <strong>Business</strong><br />

Leadership and the Gordon<br />

Institute of <strong>Business</strong> Science,<br />

on the Sandton campus of the<br />

University of Pretoria.<br />

Eighty percent of the 1 <strong>23</strong>0<br />

lecturers and researchers at the<br />

University of the Witwatersrand<br />

(Wits) have post-graduate<br />

degrees, and 27 A-rated scientists<br />

work there. The university offers<br />

studies in more than 40 schools<br />

in five faculties.<br />

Pretoria hosts the head office<br />

of distance university Unisa.<br />

The University of Pretoria (UP)<br />

is renowned for research. One<br />

of the most famous faculties<br />

is veterinary science, which is<br />

located at Onderstepoort. The<br />

University of Johannesburg (UJ)<br />

is a comprehensive institution<br />

offering diplomas and degrees<br />

through a mix of vocational<br />

and academic programmes.<br />

The Tshwane University of<br />

Technology (TUT) and the Vaal<br />

University of Technology (VUT)<br />

have several campuses. ■<br />

41<br />

GAUTENG BUSINESS <strong>2022</strong>

Commerce and Industry<br />

Promoting and representing businesses in the economic powerhouse.<br />

Promoting and representing businesses What is the geographic in the economic footprint powerhouse.<br />

of the Chamber?<br />

The areas we cover are: Randburg, Sandton, Fourways, Midrand<br />

What and is Lanseria. the geographic footprint of the Chamber?<br />

The areas we cover are: Randburg, Sandton, Fourways, Midrand<br />

and What Lanseria. are the key functions of the Chamber?<br />

Primarily to promote business, to facilitate introductions, to be the<br />

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

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

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

defending<br />

opportunities<br />

business<br />

into<br />

in<br />

the<br />

areas<br />

SADC<br />

of poor<br />

regions<br />

decision-making<br />

and work very<br />

or<br />

closely<br />

unintended<br />

with many<br />

consequences of various acts that are passed. We also facilitate<br />

embassies regarding trade and tourism.<br />

opportunities into the SADC regions and work very closely with many<br />

embassies regarding trade and tourism.<br />

What does the Chamber do to support SMMEs?<br />

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

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

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

Linda Blackbeard<br />

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

Linda Blackbeard<br />

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

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

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

being awarded work in our areas.<br />

Does the RCCI interact with government?<br />

Does the RCCI interact with government?<br />

RCCI is affiliated to the only national chamber body, South African<br />

RCCI is affiliated to the only national chamber body, South African<br />

Chamber of Commerce & Industry (SACCI). Through SACCI important<br />

Chamber of Commerce & Industry (SACCI). Through SACCI important<br />

issues<br />

issues<br />

are<br />

are<br />

dealt<br />

dealt<br />

with<br />

with<br />

directly<br />

directly<br />

at government<br />

at government<br />

level.<br />

level.<br />

We are<br />

We<br />

also<br />

are<br />

heard<br />

also<br />

at<br />

heard at<br />

provincial provincial level level and and the the Chamber Chamber works works with with the City the of City Johannesburg, of Johannesburg,<br />

Trade Trade and and Investment Investment SA SA as well as well as various as various national national government government<br />

departments responsible for economic for economic development. development.<br />

Are Are there particular challenges?<br />


Randburg Chamber would would love love to embrace to embrace more more businesses. businesses. There is There is<br />

so so much much opportunity around around and and we could we could facilitate facilitate more if more businesses if businesses<br />

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<br />

interior design and hospitality<br />

commerce, commerce, the the stronger stronger our our voice voice will be will at be municipal, at municipal, provincial provincial and and<br />

company before taking up the government level.<br />

company before taking up the government level.<br />

reigns as CEO of the RCCI. She<br />

reigns as CEO of the RCCI. She<br />

is the SACCI Chamber Forum What does the future hold?<br />

is<br />

Chairlady<br />

the SACCI<br />

and<br />

Chamber<br />

a member<br />

Forum<br />

of Our<br />

What<br />

Electronic<br />

does the<br />

Certificate<br />

future<br />

of<br />

hold?<br />

Origin programme for export saves time<br />

Chairlady the South African and Chamber member of of and Our is designed Electronic for Certificate South African of markets. Origin programme <strong>Business</strong>es and for members export saves can time<br />

the Commerce South African and Industry Chamber board of look and forward is designed to renewed for South focus, African positive markets. opportunities, <strong>Business</strong>es and facilitation and members in can<br />

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<br />

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

the recognition Pan African of her Award achievements in 2018 in Contact details<br />

recognition in the Continental of her achievements<br />

Lifetime Physical Contact address: details Unit G8 Atrium Terraces, 272 Oak Avenue,<br />

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

Oak Avenue,<br />

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

49<br />

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

Influential Government Women 2018 Awards. in <strong>Business</strong> & Email: admin@rcci.co.za | Website: www.rcci.co.za<br />

Government 2018 Awards.<br />

49<br />

GAUTENG BUSINESS <strong>2022</strong> 42

Randburg Chamber, which was founded in 1959,


Development finance<br />

and SMME support<br />

Workspaces are available for makers in wood.<br />

Five workshops are to be established in <strong>Gauteng</strong> to assist 100<br />

artisans with space to work with wood and to give them<br />

connections to established businesses who might contract them.<br />

Wine and spirits seller Pernod Ricard is teaming up<br />

with the <strong>Gauteng</strong> Department of Economic Development to try<br />

to create 1 000 new jobs through access to machinery and to a<br />

virtual showroom where makers can display their creations to<br />

prospective online clients. The City of Ekurhuleni Municipality has<br />

also donated a warehouse in Thokoza. One of the beneficiaries is<br />

Hosea Matlou (pictured), a self-taught carpenter and woodwork<br />

instructor who designs and makes furniture, picture frames and<br />

mirrors out of Hosea Studios.<br />

Pernod Ricard ran a campaign (Phakamisa ispirit) over<br />

the festive season to raise money for artisans to attend<br />

SETA-accredited courses covering business management,<br />

manufacturing, technology and accounting.<br />

Equipment manufacturer Smith Capital Equipment has<br />

received a grant from Isuzu Motors SA to help it make a cherry<br />

picker. The company, which makes a range of aerial platforms, is<br />

receiving the money as part of the motor company’s enterprise<br />

development programme.<br />

In a drive to spur economic development in <strong>Gauteng</strong>’s<br />

townships, a Township Economic Development Bill will do away<br />

with restrictive bylaws. At the same time, taxi ranks are going to<br />

be rezoned and developed to allow for the growth of retail outlets<br />

and services such as mechanics and panel-beaters.<br />

<strong>Gauteng</strong> has 14 registered co-operative banking institutions<br />

serving over 16 000 member-owners, with over R100-million in savings<br />

and R150-million in assets. The township market of about 250 000<br />

township households holds enormous potential for collective buying.<br />

The <strong>Gauteng</strong> Growth and Development Agency (GGDA) is<br />

linking large companies with small businesses at Special Economic<br />

Zones (SEZs). The aim is to create a pipeline for SMMEs and to<br />

entrench localisation in sectors such as the automotive industry.<br />

The Incubation Centre at Nissan’s assembly plant in Rosslyn<br />

north of Pretoria hosts eight new businesses at a time. They receive<br />


<strong>Gauteng</strong> Growth and Development Agency: www.ggda.co.za<br />

National Empowerment Fund: www.nefcorp.co.za<br />

Small Enterprise Development Agency: www.seda.co.za<br />


Isuzu Motors SA is<br />

supporting a local<br />

equipment manufacturer.<br />

support through subsidised<br />

rental and mentorship and<br />

training. The Automotive<br />

Industry Development<br />

Centre (AIDC), a subsidiary<br />

of the <strong>Gauteng</strong> Growth and<br />

Development Agency (GGDA),<br />

manages the centre.<br />

About half of South<br />

Africa’s formal SMMEs operate<br />

in <strong>Gauteng</strong> and more than<br />

half are in the wholesale<br />

and retail sector and the<br />

accommodation sector. The<br />

next most popular sectors<br />

are community, social and<br />

personal services.<br />

The Small Enterprise<br />

Development Agency (Seda)<br />

is a subsidiary of the DSBD<br />

and gives non-financial<br />

support to entrepreneurs<br />

through training, assistance<br />

with filling in forms, marketing<br />

and creating business plans. It<br />

helps small businesses draft<br />

applications for loan finance.<br />

Several of Seda’s technology<br />

incubators are in <strong>Gauteng</strong>. ■<br />

GAUTENG BUSINESS <strong>2022</strong><br />


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