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South African Business 2023

A unique guide to business and investment in South Africa. Welcome to the 11th edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by a website at www. southafricanbusiness.co.za. A special feature in this journal focusses on the importance of partnerships as the way forward for the country’s growing number of Special Economic Zones. There are now SEZs in eight provinces and collaboration between the private sector and government and its agencies is proving a crucial element in pursuing the goal of industrializing the South African economy. These zones intended as catalysts for economic growth in established sectors and in stimulating new industries. Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provinces. The fact that South Africa’s law-enforcement agencies are arresting people alleged to have been involved in state capture and the Reserve Bank has started freezing assets in other matters leads the national overview because business can’t function properly without the rule of law. South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed online at www.globalafricanetwork.com. These unique titles are supported by a monthly business e-newsletter with a circulation of over 35 000. Journal of African Business joined the Global African Network stable of publications as an annual in 2020 and is now published quarterly.

A unique guide to business and investment in South Africa. Welcome to the 11th edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by a website at www. southafricanbusiness.co.za.

A special feature in this journal focusses on the importance of partnerships as the way forward for the country’s growing number of Special Economic Zones. There are now SEZs in eight provinces and collaboration between the private sector and government and its agencies is proving a crucial element in pursuing the goal of industrializing the South African economy. These zones intended as catalysts for economic growth in established sectors and in stimulating new industries.

Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provinces. The fact that South Africa’s law-enforcement agencies are arresting people alleged to have been involved in state capture and the Reserve Bank has started freezing assets in other matters leads the national overview because business can’t function properly without the rule of law.

South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed online at www.globalafricanetwork.com. These unique titles are supported by a monthly business e-newsletter with a circulation of over 35 000. Journal of African Business joined the Global African Network stable of publications as an annual in 2020 and is now published quarterly.

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OVERVIEW<br />

ICT<br />

Government’s latest mobile contract is shared by four companies.<br />

As of 2021, National Treasury has appointed four companies<br />

as service providers to government, through its new mobile<br />

communication services contract, known as RT15-2021. The<br />

contract covers all entities of the state and is expected to<br />

allow for significant cost saving through better controls.<br />

The contract, which was previously held by Vodacom, is<br />

now shared between Cell C, MTN, Telkom and Vodacom. The<br />

transversal contract is for uncapped data for different categories<br />

of employees and includes mobile devices for packages from<br />

all service providers. Nearly 450 organs of state participated in<br />

the previous contract. This included 38 national departments, 99<br />

provincial departments, 106 local government departments and<br />

207 other state institutions.<br />

<strong>South</strong> Africa has not only been home to many pioneering<br />

banking apps on mobile phones, but the country’s operators<br />

continue to offer unprecedented innovation and levels of<br />

service. Arthur Goldstuck noted these trends in September 2022,<br />

further pointing out that the Reserve Bank will also speed up<br />

EFTs between banks with the introduction of a Rapid Payments<br />

Programme. Bank Zero not only uses biometric authentication<br />

for logging in, but offers zero-cost banking. Both MTN and<br />

Vodacom are offering much more sophisticated apps than when<br />

they first ventured into fintech: MTN MoMo has diverse offerings<br />

and VodaPay encompasses payment, lending, insurance and<br />

cash for emergencies.<br />

Invicta Holdings, an investment holdings and management<br />

company, has expanded into the fibre field at a time when working<br />

from home has massively increased the demand for data. Invicta<br />

acquired Dartcom Group for R500-million, giving it a presence in the<br />

ONLINE RESOURCES<br />

<strong>Business</strong> Process Enabling SA: www.bpesa.org.za<br />

Independent Communications Authority: www.icasa.org.za<br />

Technology Innovation Agency: www.tia.org.za<br />

Credit: Caspir Camille<br />

Ruben on Unsplash<br />

SECTOR INSIGHT<br />

<strong>South</strong> <strong>African</strong> banking<br />

apps are world class.<br />

distribution of communication<br />

and renewable technologies<br />

and the manufacture of fibre<br />

optic cables (under licence<br />

from Japan). As <strong>South</strong> Africa<br />

joins the global trend towards<br />

online shopping and with the<br />

first networks rolling out 5G in<br />

2020, data centres are going up<br />

all over the country. The latest<br />

to join the trend is software<br />

company Oracle which has<br />

chosen Johannesburg as the<br />

headquarters of its <strong>African</strong> cloud<br />

region. All of the company’s<br />

cloud regions worldwide will be<br />

100% powered by renewable<br />

energy by 2025.<br />

Teraco stores data in<br />

Johannesburg, Durban and<br />

Cape Town. A second 30MW<br />

site is under construction in<br />

Brackenfell to complement the<br />

existing facility in Rondebosch.<br />

Africa Data Centre (ADC), part of<br />

the Liquid Telecom Group, has<br />

purchased a Tier IV data centre<br />

in Johannesburg, previously<br />

used by Standard Bank.<br />

The Council for Scientific<br />

and Industrial Research (CSIR)<br />

in Pretoria will host a new<br />

body aimed at preparing <strong>South</strong><br />

Africa for the Fourth Industrial<br />

Revolution (4IR), the <strong>South</strong><br />

<strong>African</strong> Affiliate Centre of the<br />

World Economic Forum. ■<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />

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