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Gauteng Business 2023-24

The 2023/24 edition of Gauteng Business is the 14th 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 Special Economic Zones is included in this edition. SEZs are a major plank of industrial policy at national level and Gauteng is enthusiastically rolling out sector-specific zones in every district. The Vaal SEZ, which is preparing the way for ratification by national authorities, is the newest zone intended to boost development. All of the main economic sectors of the provincial economy are reviewed, ranging from agriculture, transport and logistics, energy and manufacturing through to education and training. Like the rest of the world, Gauteng is adapting to and innovating in the field of energy. 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 and Sibanye-Stillwater making land available on the West Rand for solar farms are indicators for the future. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.globalafricanetwork.com under e-books. Updated information on Gauteng is also available through our monthly e-newsletter, which you can subscribe to online at www.southafricanbusiness.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title and the new addition to our list of titles, The Journal of African Business, which was launched in 2020.

The 2023/24 edition of Gauteng Business is the 14th 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 Special Economic Zones is included in this edition. SEZs are a major plank of industrial policy at national level and Gauteng is enthusiastically rolling out sector-specific zones in every district. The Vaal SEZ, which is preparing the way for ratification by national authorities, is the newest zone intended to boost development.

All of the main economic sectors of the provincial economy are reviewed, ranging from agriculture, transport and logistics, energy and manufacturing through to education and training. Like the rest of the world, Gauteng is adapting to and innovating in the field of energy. 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 and Sibanye-Stillwater making land available on the West Rand for solar farms are indicators for the future.

To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.globalafricanetwork.com under e-books. Updated information on Gauteng is also available through our monthly e-newsletter, which you can subscribe to online at www.southafricanbusiness.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title and the new addition to our list of titles, The Journal of African Business, which was launched in 2020.

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GAUTENG<br />

BUSINESS<br />

THE GUIDE TO BUSINESS AND INVESTMENT<br />

IN THE GAUTENG PROVINCE<br />

<strong>2023</strong>/<strong>24</strong> EDITION<br />

JOIN US ONLINE<br />

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

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explosives products sold by<br />

Sasol are available at https://<br />

products.sasol.com.


CONTENTS<br />

<strong>Gauteng</strong> <strong>Business</strong> <strong>2023</strong>/<strong>24</strong> Edition<br />

Introduction<br />

Foreword 5<br />

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

Special features<br />

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

A move to Johannesburg by a De Beers’ division has strategic significance<br />

for the <strong>Gauteng</strong> economy, not least in supporting the idea of<br />

Special Economic Zones as sector accelerators.<br />

Special Economic Zones are multiplying 8<br />

<strong>Gauteng</strong> is investing in SEZs as a way of supporting specific sectors<br />

and boosting regional economies.<br />

Economic sectors<br />

Agriculture 20<br />

Agricultural innovators are solving problems.<br />

Mining 21<br />

Excellence in manufacturing is being rewarded.<br />

Energy 22<br />

Carbon capture research could transform industry.<br />

Oil and gas <strong>24</strong><br />

A shortage of engineers is being addressed.<br />

Banking and financial services 25<br />

Citibank is financing a major urban development.<br />

Transport and logistics 27<br />

Cellphone towers are solving traffic problems.<br />

Manufacturing 28<br />

Manufacturers are investing in new plants and offices.<br />

Tourism 30<br />

The Southern Sun brand has been revived.<br />

ICT 33<br />

Many companies choose <strong>Gauteng</strong> for their headquarters.<br />

Construction and property 34<br />

Green is cool.<br />

Development finance<br />

and SMME support 34<br />

Maponya Mall is lending a hand.<br />

Banking and financial<br />

services 25<br />

Citibank is financing a major urban<br />

development.<br />

Education and training 35<br />

A Robot and Sensor School has taken off.<br />

References<br />

Key sector contents 18<br />

Overviews of the main economic<br />

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

GAUTENG BUSINESS <strong>2023</strong>/<strong>24</strong><br />

4


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

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

FOREWORD<br />

Credits<br />

Publishing director:<br />

Chris Whales<br />

Editor: John Young<br />

Managing director: Clive During<br />

Online editor: Christoff Scholtz<br />

Designer: Tyra Martin<br />

Production: Yonella Ngaba<br />

Ad sales:<br />

Gavin van der Merwe<br />

Sam Oliver<br />

Gabriel Venter<br />

Vanessa Wallace<br />

Tahlia Wyngaard<br />

Graeme February<br />

Shiko Diala<br />

Administration & accounts:<br />

Charlene Steynberg<br />

Kathy Wootton<br />

Sharon Angus-Leppan<br />

Distribution and circulation<br />

manager: Edward MacDonald<br />

Printing: FA Print<br />

The <strong>2023</strong>/<strong>24</strong> edition of <strong>Gauteng</strong> <strong>Business</strong> is the 14th issue of this<br />

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

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

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

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

Economic Zones is included in this edition. SEZs are a major plank of<br />

industrial policy at national level and <strong>Gauteng</strong> is enthusiastically rolling<br />

out sector-specific zones in every district. The Vaal SEZ, which is preparing<br />

the way for ratification by national authorities, is the newest zone intended<br />

to boost development.<br />

All of the main economic sectors of the provincial economy are<br />

reviewed, ranging from agriculture, transport and logistics, energy and<br />

manufacturing through to education and training. Like the rest of the<br />

world, <strong>Gauteng</strong> is adapting to and innovating in the field of energy. The<br />

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<br />

solar project at its South Deep mine and Sibanye-Stillwater making land<br />

available on the West Rand for solar farms are indicators for the future.<br />

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

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

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

<strong>Gauteng</strong> is also available through our monthly e-newsletter, which you can<br />

subscribe to online at www.gan.co.za, in addition to our complementary<br />

business-to-business titles that cover all nine provinces as well as our<br />

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

The Journal of African <strong>Business</strong>, which was launched in 2020. ■<br />

Chris Whales<br />

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

DISTRIBUTION<br />

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

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

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

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

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

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

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

government departments, municipalities and companies.<br />

Member of the Audit Bureau<br />

of Circulations<br />

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

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

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

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

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

PHOTO CREDITS | ArcelorMittal; CHIETA; BMW Group; Busmark; Ford<br />

South Africa; GREENinc Landscape Architecture and Urbanism; Hytera;<br />

Indlu Living; Maponya Mall; Montego Pet Nutrition; Petra Diamonds;<br />

PUBLISHED BY<br />

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

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

Directors: Clive During, Chris Whales<br />

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

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

Tel: +27 21 657 6200 | Fax: +27 21 674 6943<br />

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

ISSN 1990-0621<br />

Rahm Equipment; Redefine Properties; Riverfield Precinct; Sun<br />

International; The Innovation Hub; The Love Trust; University of Pretoria.<br />

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

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

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

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

timeliness, or completeness of the information. Global Africa Network<br />

will not accept responsibility for any loss or damage suffered as a result<br />

of the use of or any reliance placed on such information.


A REGIONAL OVERVIEW OF<br />

GAUTENG<br />

The Cullinan Mine is expecting its expansion project to start producing in 20<strong>24</strong>.<br />

A move to Johannesburg by a De Beers division has strategic<br />

significance for the <strong>Gauteng</strong> economy, not least in supporting<br />

the idea of Special Economic Zones as sector accelerators. The<br />

Vaal SEZ is the latest initiative to move forward, with the goal of<br />

revitalising the Vaal regional economy.<br />

By John Young<br />

Gold is what made Johannesburg but<br />

diamonds are in the news today. Gold<br />

mining continues in <strong>Gauteng</strong>, and new<br />

technologies are making it profitable to<br />

work on historic tailings, but the industry is now<br />

one of many rather than being the thing that<br />

defines the city or the province.<br />

<strong>Gauteng</strong> diamonds first made a big splash<br />

when the huge Cullinan diamond was discovered<br />

in 1905. It went on to become part of the crown<br />

jewels of the British monarch. Petra Diamonds<br />

recently approved another expansion project<br />

which will cost $173-million and is expected to start<br />

producing in 20<strong>24</strong> and reach steady state in 2026.<br />

As of January <strong>2023</strong>, De Beers Group’s<br />

Sightholder Sales business started operating out<br />

of Sky Park Industrial in Johannesburg, having<br />

been in Kimberely in the Northern Cape since<br />

diamonds were first discovered. Although the<br />

move has significance for the mining sector, De<br />

Beers’ choice is also a reflection of a long-term<br />

shift in the nature of the <strong>Gauteng</strong> economy<br />

that has for decades been moving away from<br />

resources and towards services.<br />

The move is also in line with the policies of<br />

national and provincial government to support<br />

Special Economic Zones (SEZs), in this case the<br />

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

The aim is to attract entities engaged in mineral<br />

beneficiation to the zone, with this cluster being<br />

conveniently located near to the OR Tambo<br />

International Airport.<br />

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

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

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

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

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

Three district municipalities across the<br />

south of <strong>Gauteng</strong> are to host to the Vaal Special<br />

Economic Zone (Vaal SEZ) which will have<br />

GAUTENG BUSINESS <strong>2023</strong>/<strong>24</strong><br />

6


SPECIAL FEATURE<br />

multiple sectors represented and be located<br />

at multiple sites. The area already has many<br />

industrial assets and infrastructure and is well<br />

served by transport routes. Among the targeted<br />

sectors are agro-processing, logistics, the lowcarbon<br />

economy, light manufacturing and the<br />

Blue Economy, taking advantage of the Vaal River.<br />

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

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

placed 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 and<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 />

The GGDA is an implementing agency which<br />

aims to facilitate business enablement, develop<br />

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

and promote investment and job creation.<br />

Focussed support for these specific<br />

subsectors is intended to spur other investments:<br />

automotive sector, mineral beneficiation, capital<br />

equipment, agro-processing, pharmaceuticals<br />

and tertiary services such as BPO, ITC services,<br />

tourism and the knowledge economy.<br />

GGDA subsidiaries include The Innovation<br />

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

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

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 />

Overview of the province<br />

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

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

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

growth engine.<br />

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

of South Africa’s territory. 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> is a leader in a wide range of economic<br />

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

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

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

total household consumption in South Africa.<br />

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

estate and business, manufacturing, government<br />

services and wholesale, retail, motor trade 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 />

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<br />

has a combination of maize farming, tobacco<br />

production and the heavy industrial work<br />

associated with steel 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 />

7<br />

GAUTENG BUSINESS <strong>2023</strong>/<strong>24</strong>


SPECIAL FEATURE<br />

Special Economic<br />

Zones are multiplying<br />

Ford Motor Company was an initiator of the Tshwane Automotive SEZ (TASEZ).<br />

<strong>Gauteng</strong> is investing in SEZs as a way of supporting specific<br />

sectors and boosting regional economies.<br />

The <strong>Gauteng</strong> City Region is a big driver of<br />

the South African economy, with particular<br />

strengths in manufacturing, retail, industrial<br />

production, real estate and finance.<br />

Five corridors for concentrated economic<br />

growth have been identified and within those<br />

areas, Special Economic Zones have either been<br />

inaugurated or are to be rolled out. At the same<br />

time, there are plans to link these developments<br />

with initiatives to revive or boost the economies<br />

of townships and to focus in a more general<br />

sense on 10 high-growth sectors.<br />

As defined by the National Department of Trade,<br />

Industry and Competition (dtic), Special Economic<br />

Zones (SEZs) are geographically designated areas<br />

of a country set aside for specifically targeted<br />

economic activities, supported through special<br />

arrangements (that may include laws) and systems<br />

that are often different from those that apply in the<br />

rest of the country.<br />

South Africa’s Industrial Policy Action Plan,<br />

IPAP, identifies SEZs as key contributors to<br />

economic development. They are growth engines<br />

towards government’s strategic objectives of<br />

industrialisation, regional development and<br />

employment creation. The purpose of the<br />

SEZ programme is to: expand the strategic<br />

industrialisation focus to cover diverse regional<br />

development needs and context; provide a clear,<br />

predictable and systemic planning framework<br />

for the development of a wider array of SEZs to<br />

support industrial policy objectives like the IPAP<br />

and National Development Plan (NDP); clarify<br />

and strengthen governance arrangements;<br />

expand the range and quality of support<br />

measure beyond provision of infrastructure; and<br />

provide a framework for a predictable financing<br />

framework to enable long-term planning. The<br />

same principles apply to various Industrial Parks<br />

which are either being built or revived.<br />

Apart from attracting foreign direct<br />

investment (FDI) and boosting employment, SEZs<br />

can be instrumental in adding new sectors or<br />

subsectors to an economy. An obvious candidate<br />

in that category is renewable energy which<br />

needs manufactured components such as solar<br />

panels and towers for wind turbines.<br />

Incentives include tax breaks from the South<br />

African Revenue Service, subsidised interest rates<br />

from the Industrial Development Corporation (IDC),<br />

GAUTENG BUSINESS <strong>2023</strong>/<strong>24</strong><br />

8<br />

PHOTO: Ford


SPECIAL FEATURE<br />

of the GGT2030 economic development strategy.<br />

The plan aims to facilitate foreign and domestic<br />

investors to expand economic infrastructure<br />

development throughout the greater <strong>Gauteng</strong><br />

community nodal zones located in the five<br />

economic corridors of the province.<br />

subsidies for employees earning below a certain<br />

level, training grants from the dtic and discounts<br />

from national electricity utility Eskom. The SEZ is also<br />

a customs-controlled area. The SEZs are located in a<br />

municipality and for the SEZ programme to succeed,<br />

municipalities must be part of the planning, design<br />

and implementation of these spatial development<br />

catalysts. The local government sector is, therefore,<br />

an important stakeholder in the drive to build<br />

sustainable and successful SEZs.<br />

The NDP is a broad-strokes plan that seeks<br />

to coordinate development in a range of<br />

sectors and promotes ambitious infrastructural<br />

projects. South Africa’s most recent IPAP has a<br />

manufacturing focus, and this is also the area on<br />

which SEZ are concentrating.<br />

<strong>Gauteng</strong> has enthusiastically embraced the<br />

idea of SEZs as drivers of growth.<br />

Growing <strong>Gauteng</strong> Together 2030, or GGT2030,<br />

is the blueprint for the recovery of provincial<br />

economy. The programme supporting SEZs falls<br />

squarely within that broader framework and is<br />

being implemented by the <strong>Gauteng</strong> Growth and<br />

Development Agency (GGDA).<br />

At the core of the GGT2030 is ensuring<br />

that economic interventions are implemented<br />

to modernise and industrialise high-growth<br />

sectors in <strong>Gauteng</strong>. The SEZ programme is part<br />

OPERATIONAL SEZs<br />

Tshwane SEZ<br />

Tshwane Automotive SEZ (TASEZ) was initiated<br />

by the Ford Motor Company to help expand its<br />

automotive footprint in South Africa through<br />

the attraction of its global suppliers into the<br />

country. This ambition was further enhanced by<br />

the <strong>Gauteng</strong> government’s plan of developing a<br />

new Automotive City in Tshwane, and aligns with<br />

the SA Automotive Masterplan 2035, which sets<br />

targets to increase localisation.<br />

TASEZ is the outcome of partnerships between<br />

the dtic, the <strong>Gauteng</strong> Provincial Government, the<br />

City of Tshwane and the Ford Motor Company<br />

of Southern Africa. The Automotive Industry<br />

Development Centre (AIDC), a subsidiary company<br />

of the GGDA, has been tasked to deliver TASEZ on<br />

behalf of the <strong>Gauteng</strong> Provincial Government.<br />

As of December 2022, 10 automotive component<br />

manufacturing companies that have been set up<br />

at TASEZ were in full production. More than 4 618<br />

temporary construction jobs had been created while<br />

Phase One will add 2 088 permanent skilled jobs.<br />

OR Tambo SEZ<br />

The OR Tambo International Airport (ORTIA) IDZ<br />

officially opened in March 2019. It aims to develop<br />

Busmark is an established manufacturer in<br />

the West Rand.<br />

9 GAUTENG BUSINESS <strong>2023</strong>/<strong>24</strong>


SPECIAL FEATURE<br />

The OR Tambo International Airport (ORTIA) IDZ<br />

was launched in 2019.<br />

land around the airport to stimulate economic<br />

development. ORTIA supports the beneficiation<br />

of precious metals and minerals sector, with a<br />

focus on light, high-margin, export-oriented<br />

manufacturing of South African precious and<br />

semi-precious metals. The multi-site development<br />

at ORTIA consists of several industry-specific<br />

precincts and will be developed in phases.<br />

Jewellery manufacturing companies are locating<br />

to the ORTIA IDZ, contributing to a sustainable and<br />

diversified mining-beneficiation value chain. OR<br />

Tambo International is responsible for 84% of all<br />

air-cargo traffic in ACSA’s network, giving the IDZ a<br />

competitive boost through its proximity to the airport.<br />

The Jewellery Manufacturing Precinct is located in<br />

ORTIA Precinct 1. Each precinct has been designed<br />

to foster cohesion supporting circular and sustainable<br />

development practices. De Beers has chosen to locate<br />

its relocated operations adjacent to the IDZ.<br />

Other sectors being encouraged to set up at the<br />

IDZ include diamond beneficiation, agro-processing,<br />

pharmaceuticals, advanced manufacturing and<br />

capital equipment. Logistics remains a key sector<br />

and anchor tenants are being asked to consider<br />

expanding their portfolio of investments.<br />

COMING ON STREAM<br />

Vaal SEZ<br />

The Vaal SEZ Master Plan has been completed<br />

and the SEZ designation application to the dtic<br />

has been finalised.<br />

Green-energy generation is one of the most<br />

important sectors that will be focused on within<br />

the Vaal SEZ, which will act as a catalyst to boost<br />

economic growth in the Vaal region. Other<br />

sectors of interest include green hydrogen, green<br />

steel, greenhouse farming and agro-processing,<br />

aerospace and defence parts and component<br />

manufacturing and gateway logistics.<br />

All four local municipalities in Sedibeng<br />

District Municipality have made land available<br />

for this SEZ and local investors made several<br />

commitments at the Sedibeng Investment<br />

Conference for a project which is anticipated will<br />

significantly boost the Vaal regional economy<br />

through multi-site, multi-sector projects<br />

throughout the region.<br />

Excellent infrastructure, closeness to markets<br />

and close links to several tertiary institutions give<br />

the Vaal SEZ a competitive edge.<br />

PLANNING PHASE<br />

The following SEZs are in the planning process,<br />

which includes preparation of the paperwork to<br />

apply for designations to the dtic. The timeframe<br />

for these projects is two to three years.<br />

West Rand SEZ<br />

With many of the mines that underpinned the<br />

West Rand’s economy for so long reaching the<br />

end of their lives, alternatives are needed. The<br />

provincial government and mining houses are<br />

working on various options for closed mines, but<br />

the West Rand SEZ is being designed to promote<br />

investment in new fields. These include urban<br />

agriculture, green hydrogen and solar power. At<br />

the same time, the Busmark manufacturing plant<br />

in Randfontein remains a pillar of that sector and<br />

it could be a central tenant of such an SEZ.<br />

High Tech SEZ<br />

The High Tech SEZ is part of the broader Lanseria<br />

Smart City project. President Cyril Ramaphosa<br />

has referred to the proposed Lanseria Smart City<br />

project as South Africa’s first post-apartheid city.<br />

It is envisaged as a hub for the digital technology<br />

and services corridor, which in turn is to be<br />

anchored by the new High Tech SEZ. ■<br />

GAUTENG BUSINESS <strong>2023</strong>/<strong>24</strong><br />

10<br />

PHOTO: ACSA


10 REASONS<br />

WHY YOU SHOULD INVEST IN SOUTH AFRICA<br />

01.<br />

HOT EMERGING<br />

MARKET<br />

Growing middle class, affluent consumer<br />

base, excellent returns on investment.<br />

02.<br />

MOST DIVERSIFIED<br />

ECONOMY IN AFRICA<br />

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

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

services destination.<br />

LARGEST PRESENCE OF MULTINATIONALS<br />

ON THE AFRICAN CONTINENT<br />

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

03.<br />

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

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

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

05.<br />

FAVOURABLE ACCESS TO<br />

GLOBAL MARKETS<br />

ADVANCED FINANCIAL SERVICES<br />

& BANKING SECTOR<br />

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

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

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

market capitalisation.<br />

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

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

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

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

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

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

YOUNG, EAGER LABOUR FORCE<br />

09.<br />

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

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

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

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

and skills development.<br />

07.<br />

04.<br />

06.<br />

08.<br />

PROGRESSIVE<br />

CONSTITUTION<br />

& INDEPENDENT<br />

JUDICIARY<br />

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

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

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

protection of investments and minority investors.<br />

ABUNDANT NATURAL<br />

RESOURCES<br />

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

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

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

WORLD-CLASS<br />

INFRASTRUCTURE<br />

AND LOGISTICS<br />

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

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

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

Logistics Performance Index.<br />

10.<br />

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

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

EXCELLENT QUALITY<br />

OF LIFE<br />

Page | 2<br />

19<br />

SOUTH AFRICAN BUSINESS 2020


FOCUS<br />

Reigniting industrialisation<br />

in the Vaal Region<br />

The Vaal Special Economic Zone (Vaal SEZ) is showing excellent<br />

progress on the path to being formally designated, bringing<br />

closer its potential to boost growth and job creation.<br />

The Vaal SEZ’s vision states that, “By 2030,<br />

an industrialised, globally competitive,<br />

export-driven, manufacturing-biased<br />

regional economy,” will exist. The Vaal<br />

SEZ is connected to other national and provincial<br />

initiatives in <strong>Gauteng</strong>, including Growing <strong>Gauteng</strong><br />

Together (GGT2030) which aims to create linkages<br />

and the integration of the host province’s growth<br />

strategies with the local economic development<br />

strategies of the host municipalities to national<br />

economic initiatives.<br />

Where the Vaal SEZ is unique is that various<br />

satellite hubs will work out from a central<br />

hub like spokes in a wheel, thus exploiting<br />

the existing strengths of particular sites and<br />

spreading economic benefits across the area<br />

more widely. The Vaal SEZ is to be created<br />

within the Sedibeng District Municipality, which<br />

already has several attractive assets for wouldbe<br />

investors.<br />

Targeted investment strategy<br />

There is a strong case for investors to join and benefit<br />

from a green energy-fuelled reindustrialisation of the<br />

Vaal region. This will transform this industrial basin<br />

into the country’s preeminent hub for low-carbon<br />

manufacturing and renewable energy production.<br />

• High-impact investments into the food,<br />

agriculture and agro-industries value chain<br />

• Investment in gateway logistics (air, road, rail,<br />

river) to exploit the locational advantages of<br />

the Sedibeng District<br />

• Investment in the Blue Economy and the<br />

Tourism Sector using the advantages of the<br />

Vaal River<br />

• Building a Smart City along the Vaal River to<br />

enable SEZ development and to drive urban<br />

regeneration<br />

• Building strong local linkages between township/rural<br />

economies with the value chains that<br />

the Vaal SEZ will develop and strengthen<br />

Moving forward: Progress on the road to Vaal SEZ status<br />

Investor presentations: the<br />

Sedibeng Investor Conference<br />

and the SMME Conference were<br />

held, informing the investor<br />

community about the plans for<br />

the Vaal SEZ, in 2021.<br />

Land allocations made: local<br />

municipalities have allocated<br />

land which will be converted<br />

into Land Lease Agreements.<br />

SEZ Masterplan<br />

completed:<br />

June 2022.<br />

GAUTENG BUSINESS <strong>2023</strong><br />

12


oost economic growth and create jobs in the Vaal r<br />

Lesedi<br />

Masterplan adopted<br />

The 289-page Masterplan for the SEZ includes<br />

sections relating to energy, infrastructure, the<br />

policy environment and socio-economic impact,<br />

legal and governance issues, risk management,<br />

environmental and spatial considerations,<br />

investment approach, stakeholder management<br />

and the financial plan.<br />

The area<br />

Three local municipalities make up the Sedibeng<br />

District Municipality. Midvaal is the most rural<br />

of the three local municipalities, with urban<br />

development concentrated along routes R59<br />

and R82 in the north-western parts. Midvaal<br />

has strong regional linkages to major economic<br />

cores. These include routes R59 and R82 and the<br />

Vereeniging-Germiston railway line. The major<br />

urban concentration of Lesedi Local Municipality<br />

is located in Heidelberg/Ratanda nodes, along the<br />

N3 freeway at its intersection with Provincial Route<br />

R42, east of the Suikerbosrand Nature Reserve.<br />

Heidelberg is the seat of the municipality. Emfuleni<br />

in the west is home to the towns synonymous<br />

with steel, Vanderbijlpark and Vereeniging, and<br />

the Sasol petrochemical complex to the south of<br />

Sedibeng in the Free State Province.<br />

The Sedibeng District, host of the proposed Vaal SEZ, comprises three<br />

local municipalities and is strategically located both in terms of highways<br />

and railways and in relation to three economically-powerful<br />

metropolitan municipalities, Johannesburg, Ekurhuleni and Tshwane.<br />

INVESTOR VALUE PROPOSITION<br />

Key outcom<br />

Enabling framework<br />

Strong government support, robust legal and<br />

• The Va<br />

infrastru<br />

regulatory framework. Strong commercial and • It will p<br />

significant economic and social returns, including decarbo<br />

A<br />

incentives and<br />

considerable<br />

rebates.<br />

amount of planning has • To beco<br />

already gone into the concept which ties • To be a<br />

in to development goals and frameworks anchor S<br />

Locational at benefit local, regional and national level.<br />

• To achie<br />

South Africa’s economic hub, sound logistics society,<br />

networks The area and infrastructure.<br />

jobs for<br />

The three local municipalities which make up the<br />

Infrastructure Sedibeng District services Municipality are predominantly rural. Process<br />

One-stop Midvaal shop is the most services rural of and the three the local Vaal municipalities, SEZ’s Shared The Vaal S<br />

with urban development concentrated along routes end of Jun<br />

Services and investor access to serviced land and<br />

R59 and R82 in the north-western parts of the municipal been com<br />

funding options.<br />

area. Midvaal has strong regional linkages to major A pipelin<br />

economic cores.<br />

establishe<br />

Management Lesedi is also capability primarily rural, with the major urban be initiate<br />

Independent concentration management located in Heidelberg/Ratanda body, cooperation nodes, priority inv<br />

between along the dedicated N3 freeway at bodies, its intersection local, with regional Provincial and<br />

national Route government.<br />

R42, east of the Suikerbosrand Nature Reserve.<br />

The SEZ<br />

by the end<br />

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

28<br />

MoU signed with North<br />

West University and Vaal<br />

University of Technology to<br />

collaborate on revitalisation and<br />

industrialisation of Vaal Region,<br />

February <strong>2023</strong>.<br />

Appointment of<br />

engineering consultancy:<br />

to establish townships and<br />

to conduct Environmental<br />

Impact Assessment, Q1 of<br />

FY <strong>2023</strong>/<strong>24</strong>.<br />

Application for official<br />

designation as SEZ: <strong>Gauteng</strong><br />

MEC, approved; sent to<br />

Ministers of Finance and Trade,<br />

Industry and Competition, Q1<br />

of FY <strong>2023</strong>/<strong>24</strong>.<br />

13<br />

GAUTENG BUSINESS <strong>2023</strong>


FOCUS<br />

Smart mobility solutions<br />

Gas can boost the national<br />

economy and start the country<br />

operations in <strong>Gauteng</strong>.<br />

on the path to zero emissions<br />

The CSIR is helping find solutions for transport systems and<br />

CSIR research group leader for transport infrastructure management,<br />

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

Khangwelo Muronga, says his team helps enable South Africa to migrate to<br />

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

swifter, more efficient and smarter mobility.<br />

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

transition to a clean energy future.<br />

modes of transportation, especially the minibus<br />

1% taxis to that global transport emissions. about This 80% is of by the no public. measure<br />

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

must Transport take steps infrastructure<br />

to reduce its carbon footprint.<br />

Almost The UN everyone Framework uses Convention roads and bridges on Climate on a<br />

Change regular was basis, established making them in 1992 the to most coordinate significant the<br />

global transportation response to medium mitigate the in emerging threat of climate nations<br />

change, like South and specifically Africa. Roads to get are countries crucial for to boosting commit<br />

to economic policies and development plans that and will ensure raising that people’s the<br />

average standards global of temperature living. Roads rise provide is kept access less than for<br />

1.5°C people above to pre-industrial marketplaces, levels. workplaces, hospitals,<br />

clinics, The International educational Energy facilities, Agency sports (IEA) venues, proposes and<br />

that holiday to achieve destinations. this goal the The world’s CSIR energy has a sound sector must trackrecord<br />

net in zero providing emissions smart-mobility by 2050. In its global solutions energy to<br />

Smart transportation requires the reach<br />

integration of modern technologies into net assist zero with 2050 road pathway infrastructure the IEA acknowledges management. that<br />

Today transportation the biggest infrastructures. threat to humanity These is there Among is no these single solutions pathway to are: this goal, as developed<br />

climate include change, cloud and computing, the biggest threat wireless to and • developing The maintenance-reporting countries face different solution socioeconomic<br />

communication, SA’s social stability location-based is the high unemployment<br />

vision, rate. and more. In <strong>Gauteng</strong>, the greenhouse • The traffic gas control emissions centre to date. management systems<br />

services, challenges • The Struman and have bridge contributed and structures disproportionately solutionto<br />

computer<br />

CSIR As has the been global collaborating economy recovers with the from <strong>Gauteng</strong> the What a number of environmental interest<br />

devastating Department effects of Roads of Covid-19, and Transport demand to for address oil and groups The seem <strong>Gauteng</strong> to be ignoring Department in the of IEA Roads “Net Zero and<br />

gas road has maintenance gone up significantly. issues. The organisation If there was has ever also a by Transport’s 2050” report Road is the maintenance acknowledgment reporting that system there<br />

need developed for proof a system that oil that and allows gas still the drive general the global public will was be created a differentiated the request approach of the to a MEC clean for energy Roads,<br />

economy, to report recent potholes statistics and demonstrate traffic lights, the improving trend. future, Transport taking and into Infrastructure, consideration the Honourable<br />

cost of the<br />

overall The world’s road conditions developed and economies easy of industrialised mobility. on new Jacob clean Mamabolo. energy technologies The CSIR created and the economic a solution<br />

the back Smart of oil and mobility gas production encompasses and use. Now, various just as consequences for reporting of on transitioning normal road for maintenance each country. The and<br />

Africa interconnected is the cusp of technological being a significant components<br />

gas producer IEA construction emphasises that each enables country the must maintenance<br />

develop its<br />

and is transportation making plans infrastructure. to use such gas This for includes power own teams pathway to provide to a net real-time zero emission updates future. on their<br />

generation, gasoline and industrialisation electric vehicles, and economic non-motorised growth, daily South activity, Africa’s this included economy the creation has been of the<br />

the mobility negative options effects of such greenhouse as car-sharing gas emissions and on predominantly PotholeFixGP application.<br />

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

the ride-sharing environment programmes, have become undeniable. and on-demand significant contributor to the country’s economy in<br />

ridesharing The urgency services. for action It to also mitigate includes the risk other of terms PotholeFixGP of GDP as well as employment.<br />

climate forms of change transportation is no longer like debatable. bicycles, Between scooters, The In CSIR addition created to coal, the PotholeFixGP SA imports oil, application, gas and<br />

1990 autonomous and 2018 vehicles, the top and five trains. emitters The concept have petroleum which can products be downloaded for its energy from the needs appropriate as the<br />

produced of smart more mobility than 50% extends of greenhouse to designing gas upstream mobile app petroleum stores to industry supplement is still this at a solution. nascent It<br />

emissions. infrastructure During with the dedicated same period lanes SA contributed<br />

for specific stage. was designed The two to recent function world-class on Apple offshore and Android gas<br />

GAUTENG BUSINESS 2022 <strong>2023</strong><br />

26 14


"<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 />

smartphones. The approach makes it possible<br />

for the general public to report on traffic lights<br />

and potholes on the road system. After reviewing<br />

the complaints from the public, the appropriate<br />

maintenance teams will then attend to the reported<br />

issues and rectify any anomalies either as filling of<br />

any reported potholes or traffic lights malfunction.<br />

Smart Mobility Solutions System – Struman<br />

Renergen The is CSIR currently created the only the onshore structure petroleum management<br />

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 system, in expediting namely Struman exploration and/or through Bridge close<br />

management Management system of acreage as a tool allocation to help and authorities work<br />

programmes. analyse the information These positive gathered factors during create the a<br />

conducive inspections environment of road infrastructure. for PASA to A certified pursue<br />

its structures mandate inspector of attracting who investment visits the places into the of<br />

upstream interest can petroleum conduct industry. the inspections physically,<br />

or The it can draft be bill done provides by sending greater policy a drone certainty to the<br />

and locations a stable to record environment video and for take investment pictures in of<br />

the South structure. African The oil skilled and gas inspector sector. It can provides utilise<br />

security these subsequently of tenure by to combining examining the the rights state for of the<br />

exploration, structures and development then advising and on production remedial actions. phase<br />

under The method one permit. allows government agencies to cut<br />

expenditures As far as the on issuing time-consuming of exploration and rights specialised over<br />

the services last 18 and months also allows is concerned, for prioritisation a total of 21 of<br />

exploration structures that rights need for both immediate onshore attention and offshore and<br />

were those issued that require during this routine period, maintenance. 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 />

LEPHALALE<br />

BASIN<br />

Waterberg<br />

About the CSIR<br />

Pretoria<br />

Lesotho<br />

TULI BASIN<br />

Mopane<br />

Limpopo<br />

SPRINGBOK FLATS BASIN<br />

Tshipise<br />

Springbok Flats<br />

Mpumalanga<br />

Johannesburg<br />

Witbank<br />

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

The Council for Scientific and Industrial The<br />

North West<br />

Swaziland<br />

Highveld<br />

Ermelo<br />

and development organisation established<br />

Utrecht<br />

Vryheid<br />

undertakes directed, Free State multidisciplinary Klip Rivier Nongoma research<br />

MAIN KAROO BASIN<br />

Somkele<br />

and technological innovation that contributes<br />

Free State<br />

Bloemfontein<br />

to the improved quality of life of South<br />

KwaZulu-Natal<br />

Africans.<br />

Tuli<br />

TSHIPISE BASIN<br />

Pafuri<br />

Kangwane<br />

The CSIR is a world-class African research<br />

through an Act of Parliament in 1945. The CSIR<br />

Durban<br />

15<br />

Northern Cape<br />

Eastern Cape<br />

Molteno<br />

GAUTENG BUSINESS <strong>2023</strong><br />

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

34


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A new Body Shop forms part of Ford South Africa’s R15.8-million investment in its Silverton Assembly Plant<br />

in Pretoria. The production line is designed around 493 robots that help to produce Ford Rangers for the<br />

domestic market and export markets. PHOTO: Ford South Africa


KEY SECTORS<br />

Overviews of the main economic<br />

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

Agriculture 20<br />

Mining 21<br />

Energy 22<br />

Oil and gas <strong>24</strong><br />

Banking and financial services 25<br />

Transport and logistics 26<br />

Manufacturing 28<br />

Tourism 30<br />

Information and communications technology 31<br />

Construction and property 33<br />

Development finance and SMME support 34<br />

Education and training 35


OVERVIEW<br />

Agriculture<br />

Agricultural innovators are solving problems.<br />

SECTOR INSIGHT<br />

Agricultural concerns were<br />

winners at the annual<br />

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

Programme (GAP)<br />

innovation competition.<br />

The GAP awards, pictured, are run by The Innovation Hub,<br />

the innovation agency of the <strong>Gauteng</strong> Province, a wholly<br />

owned subsidiary of the <strong>Gauteng</strong> Growth and Development<br />

Agency (GGDA).<br />

In the GAP Biosciences category Igagasi Biotech was awarded<br />

second place for its Cannconverter, which aims to use sustainable<br />

green chemistry to carry out a cost-effective enzymatic conversion<br />

of cannabis. Agang Bokamoso Farms achieved second place in<br />

GAP Green for a pipe system that keeps feeding plants even when<br />

irrigation systems fail due to power outages or pump failures.<br />

Category winners receive a share of R3-million in seed<br />

funding to further incubate their innovation at The Innovation<br />

Hub’s <strong>Business</strong> Incubations programmes. Since 2011, the GAP has<br />

attracted more than 1 600 entries across five categories.<br />

The photographs that appeared in the national media of the<br />

destruction caused by sinkholes in March <strong>2023</strong> in the Khutsong<br />

area focussed on homes and schools. However, experts from the<br />

African Centre for Disaster Studies also raised the issue of food<br />

security being affected by such natural disasters. Khutsong is in<br />

the Merafong City Local Municipality and close to the town of<br />

Carltonville, where many mines have closed down in recent years.<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<br />

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

tenure issues and improving food security. Linking producers to<br />

the value chain will benefit township economies.<br />

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

ONLINE RESOURCES<br />

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

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

The Innovation Hub: www.theinnovationhub.com<br />

vegetables. There is<br />

commercial farming in<br />

the southern sector of the<br />

province (part of South<br />

Africa’s maize triangle) and the<br />

farming of cotton, groundnuts<br />

and sorghum is undertaken<br />

in areas near Bronkhorstspruit<br />

(east) and Heidelberg (in the<br />

south).<br />

The province is home to<br />

some of South Africa’s biggest<br />

agricultural companies,<br />

including AFGRI. Africa’s largest<br />

feedlot for cattle is located in<br />

Heidelberg: Karan Beef ’s facility<br />

can accommodate 120 000<br />

cattle. The feedmill processes<br />

1 400 tons per day and the<br />

associated abattoir in Balfour<br />

in neighbouring Mpumalanga<br />

sometimes deals with 1 800<br />

head of cattle per day.<br />

The Kanhym Agrimill in<br />

Vereeniging is one of three<br />

in the company’s portfolio,<br />

which collectively processes<br />

250 000 tons of animal feed<br />

annually. Kanhym Estates<br />

is the largest producer of<br />

pigs in the country. There<br />

are many poultry farm and<br />

production facilities in<br />

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

Astral Foods, RCL Foods and<br />

Daybreak Farms. ■<br />

GAUTENG BUSINESS <strong>2023</strong>/<strong>24</strong><br />

20


Mining<br />

Excellence in manufacturing is being rewarded.<br />

The first MEMSA Manufacturing Excellence Awards unearthed<br />

some innovative and ambitious projects.<br />

Mining Equipment Manufacturers of South Africa<br />

(MEMSA) is an industry cluster established in 2016 with the<br />

support of the Department of Trade, Industry and Competition (dtic).<br />

The 2022 awards evening was held together with SEIFSA Awards for<br />

Excellence. SEIFSA is the Steel and Engineering Industries Federation<br />

of Southern Africa.<br />

The MEMSA awards are supported by the South African Mining<br />

Extraction Research, Development and Innovation (SAMERDI)<br />

programme, which in turn is backed by the Department of Science<br />

and Innovation (DSI) and the Minerals Council South Africa (MCSA).<br />

Awards were given in four categories: Customised Customer<br />

Service, Localised Supply Chain, Manufacturing Solutions and<br />

MEMSA Member Manufacturer of the Year 2022.<br />

The Localised Supply Chain award was shared by Buraaq Mining<br />

Services and Rham Equipment, a South Africa OEM manufacturing<br />

hard and soft-rock mining machinery.<br />

NTGR Engineering Projects won the Manufacturing Solutions<br />

award for implementing GIS-based and advanced precision<br />

manufacturing technology. The award for Customised Customer<br />

Service went to ProProcess Engineering, and the MEMSA Member<br />

Manufacturer of the Year was Bell Equipment.<br />

MEMSA’s headquarters are located in the Mandela Mining<br />

Precinct in Melville, Johannesburg. The Precinct is a public-private<br />

partnership between the DSI and the MCSA and is managed by the<br />

Council for Scientific and Industrial Research.<br />

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

associated with mining. Sibanye-Stillwater supports the Wits Mining<br />

Institute’s Digital Mining Laboratory (Digimine). AECI, the explosives<br />

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

Centre at the University of Pretoria. Mintek is an autonomous body<br />

based in Randburg which receives about 30% of its budget from the<br />

Department of Mineral Resources.<br />

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

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

highest-ranked school at the university in terms of the QS World<br />

University Rankings. Pretoria University has a Department of Mining<br />

ONLINE RESOURCES<br />

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

MEMSA: www.memsa.org.za<br />

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

SECTOR INSIGHT<br />

<strong>Gauteng</strong> is the home of<br />

mining research.<br />

OVERVIEW<br />

A MEMSA award winner. Rahm<br />

Equipment makes roofbolters for the<br />

mining industry.<br />

Engineering, the University of<br />

South Africa offers three national<br />

diplomas in mine-related fields,<br />

the University of Johannesburg<br />

has mine-surveying courses and<br />

the Vaal and Tshwane Universities<br />

of Technology have engineering<br />

faculties. Harmony Gold’s<br />

acquisition strategy, including<br />

the purchase from AngloGold of<br />

Moab Khotsong, will result in it<br />

being the country’s biggest gold<br />

producer. It could produce an<br />

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

A new company, Shallow<br />

Reefs Gold, has been created to<br />

pursue projects in the shallow<br />

reefs of the Witwatersrand<br />

Gold Basin. The company<br />

believes that the grade of the<br />

deposits makes for a good<br />

economic proposition. Cullinan<br />

diamond mine is engaged in an<br />

expansion programme called<br />

the C-Cut Phase 1 project.<br />

Cullinan is famous for its rare<br />

blue diamonds. ■<br />

21<br />

GAUTENG BUSINESS <strong>2023</strong>/<strong>24</strong>


OVERVIEW<br />

Energy<br />

Carbon capture research could transform industry.<br />

SECTOR INSIGHT<br />

BMW will make hybrids<br />

from 20<strong>24</strong>.<br />

If carbon captured from the steel-making process could be<br />

repurposed, the energy transition could happen more quickly.<br />

One way of cleaning up the energy landscape is to switch<br />

fuel sources from fossil fuels to renewables such as solar<br />

and wind. And the world is doing a lot of that.<br />

Another way is to use renewable energy to clean up<br />

or repurpose the emissions coming from fossil fuels. That’s what<br />

Sasol and ArcelorMittal South Africa are looking into in <strong>Gauteng</strong>.<br />

Two of South Africa’s biggest and most successful companies are<br />

joining forces to try to convert captured carbon from ArcelorMittal<br />

South Africa’s Vanderbijlpark’s steel plant into sustainable fuels<br />

and chemicals using renewable energy. The carbon capture and<br />

utilisation (CCU) study supplements work being done by the<br />

Council for Geoscience in Mpumalanga.<br />

Both industrial operators have a stated ambition to achieve<br />

net-zero carbon emissions by 2050. Sasol is also working with the<br />

steel producer in the Western Cape on a green steel and green<br />

hydrogen and derivatives study.<br />

“We are very excited to be leading the pre-feasibility and<br />

feasibility studies on these two potential projects that hold<br />

promise to unlock South Africa’s potential to be a global green<br />

hydrogen and derivatives player. These studies are anchored by<br />

the local need for green hydrogen and sustainable products,<br />

cementing Sasol as the leading contributor to the development<br />

of Southern Africa’s green hydrogen economy,” says Priscillah<br />

Mabelane, Executive Vice President for Sasol’s Energy <strong>Business</strong>.<br />

The Vaal CCU study will explore transporting up to 1.5-million tons<br />

a year of industrial CO2 captured<br />

from the Vanderbijlpark<br />

Works to the Sasolburg and<br />

Ekandustria operating facilities<br />

in Sasolburg which will then,<br />

together with green hydrogen,<br />

eventually replace natural<br />

gas as a feedstock to produce<br />

sustainable chemicals products.<br />

The Vaal Triangle has been<br />

home to fossil fuel-based<br />

industrial operations that have<br />

been vital to the country’s<br />

economic development over<br />

many decades. It is believed<br />

that many of the assets in these<br />

operations can be repurposed<br />

in such a way as they become<br />

more sustainable, leading to a<br />

revitalisation of the region.<br />

The Industrial Development<br />

Corporation (IDC), as the<br />

driver of the state’s hydrogen<br />

economy and commercialisation<br />

programmes, came out strongly<br />

in support of the Sasol and<br />

ArcelorMittal partnership. “The<br />

IDC supports sector linkages like<br />

this that are critical to realising<br />

South Africa’s ambition to<br />

develop the green hydrogen<br />

economy,” said Joanne Bate, Chief<br />

Operating Officer for the IDC.<br />

Sasol is simultaneously<br />

exploring export markets for<br />

the hydrogen and ammonia<br />

that it expects to produce in<br />

large quantities. With both<br />

products being an important<br />

GAUTENG BUSINESS <strong>2023</strong>/<strong>24</strong><br />

22<br />

PHOTO: ArcelorMittal


OVERVIEW<br />

The BMW X3 will be produced as a hybrid from 20<strong>24</strong>.<br />

of Japan’s Green Growth Strategy, it was logical that Sasol should<br />

look to that country. Sasol and ITOCHU Corporation have signed a<br />

Memorandum of Understanding (MoU) to jointly study and develop<br />

the market and supply chain for green ammonia with a focus on<br />

its possible use as bunkering fuel and for power generation. This<br />

could include product offtake agreements and Japanese support<br />

for academic and research efforts into green ammonia.<br />

Change is coming<br />

During the celebrations around the 50th anniversary of making<br />

vehicles at its Rosslyn Plant in Tshwane, BMW Group announced that<br />

from 20<strong>24</strong> the BMW X3 will be made as a plug-in hybrid for export.<br />

This will entail an investment of R4.2-billion in adapting the<br />

factory to electrical specifications. More than 300 employees will<br />

receive specialised training at the plant, which was BMW’s firstever<br />

foreign facility. Since inception, Plant Rosslyn has produced<br />

more than 1.6-million vehicles and exported them to more than<br />

40 countries worldwide, including 14 African nations. It has<br />

produced many models over the years and began working on<br />

the best-selling BMW X3 in 2018.<br />

A new research chair has been created to study climate<br />

change. The Sappi Chair in Climate Change and Plantation<br />

Sustainability was launched by Sappi Southern Africa and the<br />

University of the Witwatersrand (Wits) in <strong>2023</strong>.<br />

Professor Mary Scholes of the Wits School of Animal, Plants<br />

and Environmental Science, an internationally recognised<br />

authority on tree physiology and climate change, will act as the<br />

Research Chair.<br />

Developing additional capacity in manipulating and<br />

interpreting climate-modelling data will be a priority. Funding<br />

is available for one post-doctoral fellow and bursaries for one<br />

Master’s and one Honours student.<br />

ONLINE RESOURCES<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 />

In Johannesburg, the<br />

Northern Wastewater Treatment<br />

Works has its own electricity<br />

source in a 1.1MW biogas<br />

plant. It produces electricity<br />

using cogeneration, which is<br />

combined heat and power. A<br />

landfill site at Robinson Deep<br />

in Johannesburg has started<br />

generating 3MW of gas. This is<br />

the first of five renewable energy<br />

projects that Energy Systems<br />

SA has in Johannesburg. At the<br />

Cavalier abattoir in Cullinan,<br />

biowaste conversion company<br />

ibert provides about a quarter<br />

of the power that the abattoir<br />

needs to function.<br />

Areas in the <strong>Gauteng</strong><br />

province that can no longer<br />

rely on the mining industry<br />

to drive their economies may<br />

become focus zones for solar<br />

PV projects. Renewable Energy<br />

Development Zones (REDZs)<br />

have been allocated in other<br />

provinces but the potential<br />

for REDZs in <strong>Gauteng</strong> is huge,<br />

because vast amounts of<br />

energy are needed to drive the<br />

country’s biggest economy.<br />

These zones would<br />

be developed in line with<br />

the national Integrated<br />

Resource Plan (IRP 2019)<br />

which the <strong>Gauteng</strong> Provincial<br />

Government is hoping will<br />

enable it to unlock several<br />

renewable energy projects.<br />

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

Government has announced<br />

plans to appoint developers<br />

to construct an 800MW solar<br />

farm in Merafong. Government<br />

also intends installing rooftop<br />

solar panels on governments<br />

buildings such as schools,<br />

clinics and hospitals. ■<br />

PHOTO: BMW Group 23<br />

GAUTENG BUSINESS <strong>2023</strong>/<strong>24</strong>


OVERVIEW<br />

Oil and gas<br />

A shortage of engineers is being addressed.<br />

SECTOR INSIGHT<br />

PASA has awarded<br />

exploration rights.<br />

World Engineering Day for Sustainable Development<br />

<strong>2023</strong> was an occasion to reflect that South Africa is<br />

short of qualified engineers to work in the oil and<br />

gas industries.<br />

The day was 4 March, but happily there are programmes being<br />

run throughout the school year by organisations such as the Love<br />

Trust to bring Science, Technology, Engineering and Maths (STEM)<br />

classes to areas with few resources. One such initiative is run at<br />

Nokuphila School in Thembisa, Midrand.<br />

According to Matshoene Tladi, subject head of the STEM<br />

programme at the school, “We equip students with essential skills<br />

in the form of hands-on experiments and challenges that integrate<br />

principles and knowledge from natural science, technology,<br />

mathematics and robotics, which includes engineering and coding.”<br />

The Love Trust raises funds from sponsors for its STEM programme.<br />

The regulator and promoter of oil and gas exploration in South<br />

Africa, Petroleum Agency South Africa, has awarded coalbed<br />

methane gas and natural gas rights in the provinces on <strong>Gauteng</strong>’s<br />

border, Free State and KwaZulu-Natal.<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 wants to<br />

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 />

ONLINE RESOURCES<br />

Love Trust: www.lovetrust.co.za<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 distributors, converts petrol<br />

and diesel-powered vehicles<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<br />

company has 7 500 domestic,<br />

industrial and commercial<br />

customers. The company that<br />

owns Egoli Gas, Reatile, has a<br />

30% stake in Vopak and a stake<br />

in CNG Holdings.<br />

Ardagh Glass Packaging<br />

(formerly Consol) has<br />

contracted to buy liquid natural<br />

gas (LNG) from Renergen, which<br />

is developing a large project in<br />

the Free State. ■<br />

GAUTENG BUSINESS <strong>2023</strong><br />

PHOTO: The Love Trust


OVERVIEW<br />

Banking and financial services<br />

Citibank is financing a major urban development.<br />

The Sharpeville Memorial Garden falls within the area earmarked<br />

for a major development.<br />

A<br />

grant of R200-million made available by Citibank for a<br />

large infrastructure project in southern <strong>Gauteng</strong> has been<br />

classified as an equity-equivalent investment, earning the<br />

bank significant BEE credits.<br />

The Department of Trade, Industry and Competition (dtic) has<br />

approved the amount, which forms part of a larger R1.3-billion<br />

amount that the bank is providing in seed capital, as a type of<br />

investment that exempts the bank from compliance with other<br />

elements of BEE legislation.<br />

The area between Vereeniging and Vanderbijlpark is being<br />

developed as a major development node and plans for housing, an<br />

airport, industry and logistics all form part of the intended project.<br />

The Competition Tribunal has unconditionally approved<br />

TymeBank’s purchase of Retail Capital, a fintech SMME funder,<br />

Retail Capital.<br />

TymeBank, which is majority owned by Patrice Motsepe’s<br />

African Rainbow Capital, has been moving beyond its basic<br />

banking model recently and this purchase indicates another<br />

ONLINE RESOURCES<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 />

SECTOR INSIGHT<br />

Tyme is expanding.<br />

broadening of the scope of the<br />

bank’s ambitions. TymeBank<br />

has also signed a deal with<br />

TFG, a group that has a big<br />

presence in <strong>Gauteng</strong>, to help it<br />

expand its retail operations.<br />

What used to be known<br />

as the Foschini Group has 34<br />

brands, including Markhams,<br />

Totalsports, Jet and Dial a Bed,<br />

and 30-million customers. In<br />

the short term, TymeBank will<br />

have access to 600 TFG kiosks,<br />

taking the bank’s total in South<br />

Africa to 1 450.<br />

The flurry of new activity<br />

in the financial sector has<br />

slowed. Several new banks<br />

and exchanges have been<br />

launched in South Africa<br />

since 2017, most of them in<br />

Johannesburg. One of the<br />

stock exchanges, 4AX, has<br />

rebranded as the Cape Town<br />

Stock Exchange and moved to<br />

that city.<br />

The launch by Sanlam<br />

Investments of a Sustainable<br />

Infrastructure Fund is a sign<br />

of the times. In the context<br />

of climate change caused<br />

by the use of fossil fuels, the<br />

investment community is<br />

increasingly putting emphasis<br />

on sustainability. Sanlam<br />

Group will invest R6-billion in<br />

the fund and aims to attract<br />

a further R5-billion from<br />

institutional investors. ■<br />

PHOTO: GREENinc Landscape Architecture and Urbanism<br />

25 GAUTENG BUSINESS <strong>2023</strong>/<strong>24</strong>


OVERVIEW<br />

Transport and logistics<br />

Cellphone masts are solving traffic problems.<br />

SECTOR INSIGHT<br />

OR Tambo International<br />

Airport handles more than<br />

80% of South Africa’s cargo.<br />

New tenants are having custom-built warehousing facilities<br />

constructed for them at Riverfields Precinct, the logistics hub<br />

near OR Tambo International Airport in Ekurhuleni.<br />

Busy intersections in Soweto are getting power from an<br />

unusual source to prevent dangerous traffic overload.<br />

MTN and the Johannesburg Roads Agency (JRA)<br />

have signed a Service Level Agreement whereby MTN<br />

base stations will provide power to traffic lights at key points<br />

during loadshedding.<br />

“We’re excited about the future of this project and aim to<br />

expand further afield to partner with municipalities across the<br />

country to create corridors of free-flowing traffic in loadshedding,<br />

by using existing base stations to power traffic lights where we can,”<br />

says MTN South Africa’s Chief Executive Officer, Charles Molapisi.<br />

MTN is also creating a “traffic corridor” from the Flora Clinic, along<br />

14th Avenue, towards the N1 highway, leading to outside the MTN<br />

head office, to ensure smooth movement onto and off the N1 highway<br />

at the 14th Avenue intersection. Those traffic lights will be backed up<br />

by power supplied by electricity generated from the MTN campus.<br />

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

of 67 projects with a combined value of R23-billion.<br />

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

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 are<br />

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

Century Properties and mining<br />

company Cullinan.<br />

Transnet Rail Engineering<br />

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

<strong>Gauteng</strong> and the metropolitan<br />

lines that ferry commuters<br />

are run by the Passenger<br />

Rail Agency (PRASA). The<br />

Wits Metrorail system serves<br />

Johannesburg and its surrounds.<br />

Park Station, in the north of the<br />

central business district, is the<br />

largest station in Africa and acts<br />

as the metropolitan hub.<br />

Riverfields Precinct in<br />

Ekurhuleni is a logistics hub<br />

serving OR Tambo International<br />

Airport and the major highways<br />

that link <strong>Gauteng</strong> with other<br />

provinces.<br />

Several established brands<br />

such as DSV, John Deere, DB<br />

Schenker, Sanvick Mining and<br />

DHL are tenants and new<br />

facilities for Shoprite and The<br />

Foschini Group are being<br />

built. A new section, Equites<br />

Park 3, covering 16 hectares,<br />

is currently in the planning<br />

phase. The existing facilities<br />

include Equites Park Riverfields<br />

1 (also 16ha) and Equites Park<br />

Riverfields 2, which hosts two<br />

major retailers on 43ha.<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 />

GAUTENG BUSINESS <strong>2023</strong>/<strong>24</strong><br />

26<br />

PHOTO: Riverfields Precinct


cargo and freight handling facilities well-equipped to deal with rail<br />

and road deliveries and despatches.<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 />

A specific goal of the Provincial Government of <strong>Gauteng</strong> is to<br />

make the Transnet Tambo-Springs Logistics Gateway the biggest<br />

inland logistics hub and dry port in Africa by 2030.<br />

The 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 />

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<br />

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

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

SEZ) has diversified beyond the existing Jewellery Manufacturing<br />

Precinct in the shape of a R400-million agriprocessing 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 />

ONLINE RESOURCES<br />

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

CAMASA: www.camasa.co.za<br />

MTN Traffic Light Project: TrafficLightsMTN@mtn.com<br />

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

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

MTN base stations are providing<br />

power for traffic lights.<br />

Lanseria Airport to the<br />

north of Johannesburg has<br />

grown in importance as a<br />

secondary airport for the<br />

country’s busiest business and<br />

commercial hub.<br />

It is a convenient landing<br />

point for travellers bound<br />

for regional centres like<br />

Rustenburg in the North West.<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 />

PHOTO: MTN<br />

27 GAUTENG BUSINESS <strong>2023</strong>/<strong>24</strong>


OVERVIEW<br />

Manufacturing<br />

Manufacturers are investing in new plants and offices.<br />

SECTOR INSIGHT<br />

Ardagh Glass Packaging is a<br />

new name in glass.<br />

Three has become one in Centurion, where Montego Pet<br />

Nutrition has consolidated its <strong>Gauteng</strong> operations.<br />

With its main plant located in the Eastern Cape town of<br />

Graaff-Reinet, Montego has become one of South Africa’s<br />

most successful brands and expects that its R30-million facility at<br />

Knoppieslaagte in Centurion will allow it to double production and<br />

there is room for the current staffing complement of 147 to grow.<br />

The company’s new 21 600m² complex includes a dry-food factory,<br />

a warehouse, a testing laboratory and an administration block. The<br />

production focus will be on Montego’s Monty & Me Essential range,<br />

as well as manufacturing for contract clients.<br />

Ford South Africa’s goal of reaching production capacity of<br />

200 000 vehicles per year is a step closer, thanks to an investment<br />

in automation at its Silverton Assembly Plant in Tshwane.<br />

An amount of R15.8-billion has been invested in a range of new<br />

facilities, including a 44 000m2 Body Shop, a supporting warehouse<br />

and a Stamping Plant. The Ford Ranger is produced at the plant in<br />

a wide variety of configurations including single cab, supercab and<br />

double cab, as well as left-hand drive and right-hand drive models.<br />

Welding is done by robots, as are many of the other functions on<br />

the production line that features 493 robots.<br />

In response to Ford’s investment, auto component and<br />

battery manufacturer Metair will establish a new logistics facility<br />

at Silverton. Several Metair<br />

subsidiaries, including<br />

Hesto Harnesses, Unitrade,<br />

Automould and Lumotech,<br />

have signed agreements to<br />

supply Ford with a wide range<br />

of products.<br />

All of <strong>Gauteng</strong>’s large<br />

automobile manufacturers<br />

are investing in new model<br />

production. Nissan is spending<br />

R3-billion on production of the<br />

Navara pick-up vehicle. Other<br />

major investments include<br />

R6.1-billion by BMW at Rosslyn<br />

and R260-million by BMW<br />

on an expanded campus at<br />

Midrand. UD Trucks, a part of<br />

the Volvo group, will assemble<br />

the Croner heavy commercial<br />

vehicle 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 MAN<br />

Truck and Bus South Africa,<br />

as well as the Chinese truck<br />

manufacturer FAW, which owns<br />

an assembly plant in Isando.<br />

Beijing Automotive Works<br />

(BAW) assembles taxis at<br />

Springs. Armoured cars are<br />

produced by the Paramount<br />

Group. DCD Protected Mobility<br />

GAUTENG BUSINESS <strong>2023</strong>/<strong>24</strong><br />

28<br />

PHOTO: Montego Pet Nutrition


OVERVIEW<br />

manufactures armoured cars in Boksburg, which are branded as<br />

Vehicle Mounted Mine Detectors. In nearby Benoni, BAE Systems<br />

OMC designs and manufactures protected vehicles.<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 historically important mining industry<br />

still plays a key role in the <strong>Gauteng</strong> economy.<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 />

More than half of the companies operating in the food<br />

and beverage sector in South Africa are in <strong>Gauteng</strong>, including<br />

Nestlé, Tiger Brands, Pioneer Foods, RCL, AVI and Astral. There are<br />

approximately 4 000 food processing companies in the province,<br />

employing more than 100 000 people.<br />

Although there are more than 200 pharmaceutical firms in<br />

the country, large companies dominate the field, with Aspen<br />

Pharmacare (34%) and Adcock Ingram (25%) the two key players,<br />

followed by Sanofi, Pharmaplan and Cipla Medpro. Among the<br />

other big international brands active in <strong>Gauteng</strong> are Merck, which<br />

has a 55 000m² plant at Modderfontein, and Pfizer SA, which runs a<br />

laboratory in Sandton among its facilities in South Africa.<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<br />

between Wadeville and Alrode, south-west of Alberton.<br />

Germiston is the country’s biggest rail junction and Transnet<br />

Engineering has invested hundreds of millions of rands in<br />

new equipment at its facility there. Aeroton is the site of SEW-<br />

EURODRIVE’s new head office and factory which will bring<br />

under one roof several of the<br />

company’s activities which<br />

were previously in different<br />

parts of the country.<br />

Packaging company<br />

Nampak has metals, plastic,<br />

paper and glass operations<br />

at various locations. It is the<br />

market leader in beverage cans.<br />

In 2022 Ardagh Group<br />

bought Consol Glass, South<br />

Africa’s biggest glass producer<br />

and now controls that<br />

company through Ardagh<br />

Glass Packaging. Production<br />

facilities are located in Clayville,<br />

Wadeville and Nigel.<br />

Household products<br />

manufacturer Unilever<br />

represents an example of the<br />

lighter industrial capacity of the<br />

East Rand.<br />

The southern portion of<br />

<strong>Gauteng</strong> around Vanderbijlpark<br />

and Vereeniging is synonymous<br />

with steel production. Flat iron<br />

is made at the ArcelorMittal<br />

plant. Scaw Metals has a chainmaking<br />

factory in Vereeniging.<br />

There are 35 aluminium<br />

processing firms in <strong>Gauteng</strong>,<br />

involved in both secondary<br />

processing to produce foils,<br />

cans, bars, rods and sheets,<br />

with final fabrication in the<br />

form of die-casting and sheet<br />

metal work. Within <strong>Gauteng</strong>,<br />

the automotive and packaging<br />

industries are the chief<br />

consumers of these products. ■<br />

ONLINE RESOURCES<br />

Centre for Advanced Manufacturing: www.cfam.co.za<br />

Chemical and Allied Industries’ Association: www.caia.co.za<br />

<strong>Gauteng</strong> Department of Economic Development:<br />

www.ecodev.gpg.gov.za<br />

Manufacturing Circle: www.manufacturingcircle.co.za<br />

29 GAUTENG BUSINESS <strong>2023</strong>/<strong>24</strong>


OVERVIEW<br />

Tourism<br />

The Southern Sun brand has been revived.<br />

The Southern Sun brand lives again. The announcement was<br />

made in 2022 that Tsogo Sun Hotels would be no more. The<br />

Southern Sun group is focussed on hotels, with no casinos in<br />

its 31-property <strong>Gauteng</strong> portfolio. These range from several<br />

SUN1 facilities for budget travellers to the luxury of the 75-room 54 on<br />

Bath in Rosebank. Nearby Sandton has seven Southern Sun properties,<br />

including the Sandton Sun and Sandton Towers.<br />

The Maslow Times Square, Pretoria, which also has conference<br />

facilities, is one of two Sun International hotels linked to casinos.<br />

The other one, Carnival City in Brakpan, has recently added five new<br />

rides to its Pocket Park, pictured. The group’s third <strong>Gauteng</strong> hotel, The<br />

Maslow Sandton, which is aimed at business travellers, is located in<br />

the centre of the financial district and close to the Gautrain station.<br />

Tsogo Sun, as distinct from the deactivated Tsogo Sun Hotels,<br />

has interests in casinos and gaming and runs seven hotels paired<br />

with casinos in <strong>Gauteng</strong>. These include the Silverstar Hotel inside<br />

the Silverstar Casino and Entertainment Complex in Mogale City,<br />

West Rand, and there are four hotels at Montecasino.<br />

Despite the Covid-related slump, tourism remains a sector that<br />

can grow quickly. Growing <strong>Gauteng</strong> Together (GGT2030) is a plan<br />

of action formulated by the <strong>Gauteng</strong> Provincial Government which<br />

intends to transform, modernise and industrialise the provincial<br />

economy. The expansion of the tourism sector is seen as one of the<br />

key methods of achieving those goals.<br />

Airlink, which ended its franchise agreement after SAA went into<br />

business rescue, has signed deals with Qatar Airways, Emirates and<br />

United Airlines, giving travellers easy access to a range of Southern<br />

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 />

Culture and history<br />

Heritage tourism is a strong component of the tourism offering in<br />

<strong>Gauteng</strong>. The Cradle of Humankind is a UNESCO World Heritage<br />

ONLINE RESOURCES<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 />

SECTOR INSIGHT<br />

Airlink has signed<br />

important partnerships.<br />

Site and attracts thousands<br />

of visitors every year to the<br />

interactive visitor’s centre at<br />

Maropeng. The Sterkfontein<br />

Caves have recently revealed<br />

astonishing finds, showing<br />

the origins of humanity<br />

through artefacts such as<br />

the 2.1-million-year-old skull<br />

known as Mrs Ples.<br />

The Origins Centre at the<br />

University of Witwatersrand<br />

provides more fascinating<br />

insights into the origins of<br />

mankind through art and<br />

science. The Centre hosts<br />

superb representations of Khoi<br />

and San rock art.<br />

History relating to the<br />

struggle against apartheid<br />

centres on attractions such as<br />

the moving exhibitions housed<br />

at the Apartheid Museum and<br />

the history of the battle for<br />

human rights and democracy<br />

embodied in Constitution Hill. ■<br />

GAUTENG BUSINESS <strong>2023</strong>/<strong>24</strong><br />

30<br />

PHOTO: Sun International


ICT<br />

Many companies choose <strong>Gauteng</strong> for their headquarters.<br />

OVERVIEW<br />

Hytera has created a new regional headquarters in<br />

Johannesburg, the company’s biggest facility in Africa.<br />

Listed on the Shenzhen Stock Exchange, and with<br />

its global headquarters in that Chinese city, Hytera<br />

is a communications technologies company that has been in<br />

Southern Africa for two decades.<br />

The new Midrand headquarters include a demonstration area,<br />

pictured, and indicate the company’s intention of expanding the<br />

range of voice, video and data capabilities on offer to its African<br />

clients. New products are expected to be launched at the Africa Tech<br />

Festival in November.<br />

With several other global companies choosing to station their<br />

South African headquarters in <strong>Gauteng</strong>, the province is well connected.<br />

The biggest data centre on African soil is under construction in<br />

Ekurhuleni. Teraco Data Environments secured a R2.5-billion loan in<br />

2021 to build the 50 000m² JB4 data centre on 6ha and Phase 1 has<br />

been completed. The centre will have 38MW of critical power load.<br />

The company has five other centres, two of which are in <strong>Gauteng</strong>.<br />

Johannesburg is also one of two South African cities to host a<br />

Microsoft Azure data centre.<br />

A <strong>Gauteng</strong> Growth and Development Agency (GGDA) subsidiary,<br />

The Innovation Hub, has a programme called eKasiLabs which<br />

supports entrepreneurs and young people with good business ideas.<br />

One of the provincial government’s stated goals is to get several<br />

ICT initiatives to work together. If the work of The Innovation Hub,<br />

several eKasi laboratories, the Tshimologong precinct, universities<br />

and research institutes could be integrated, a more powerful<br />

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 WiFi<br />

available to poor households in the province is another task.<br />

A Digital Transformation Advisory Panel is 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 Pretoria<br />

hosts a new body aimed at preparing South Africa for the Fourth<br />

Industrial Revolution (4IR), the South African Affiliate Centre of the<br />

World Economic Forum.<br />

ONLINE RESOURCES<br />

eKasiLabs: www.theinnovationhub.com<br />

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

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

SECTOR INSIGHT<br />

Tshwane has hundreds of<br />

free WiFi zones.<br />

The “Tshepo 1 Million”<br />

campaign links the provincial<br />

government with the successful<br />

Harambee Youth Employment<br />

Accelerator and more than 40<br />

large companies.<br />

Both Johannesburg and<br />

Tshwane have free WiFi networks<br />

with Tshwane providing 1GB<br />

of data every day to its citizens<br />

at various TshWi-Fi locations, at<br />

speeds up to 15Mbps.<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 />

PHOTO: Hytera<br />

31<br />

GAUTENG BUSINESS <strong>2023</strong>/<strong>24</strong>


OVERVIEW<br />

Construction and property<br />

Green is cool.<br />

SECTOR INSIGHT<br />

SECTOR INSIGHT<br />

Serviced land is being released<br />

for housing.<br />

90 Rivonia Road has a four-star rating from the Green Building<br />

Council South Africa.<br />

Redefine Properties’ third green bond was oversubscribed<br />

when it went to market in August <strong>2023</strong>. An amount of R1-<br />

billion has been allocated across three, five and seven years.<br />

Green buildings are now considered mainstream in<br />

the construction industry, and star ratings from Green Building<br />

Council South Africa (GBCSA) are expected in commercial,<br />

industrial and residential projects. The bond was listed on the JSE<br />

in the Sustainability Segment, a further sign that every sector is<br />

responding to the climate crisis.<br />

Redefine will use the bond financing to work towards<br />

decarbonisation of its portfolio through the reduction of energy<br />

consumption by making systems more efficient, collaboration with<br />

tenants and solar photovoltaic installations.<br />

The North Wing of 90 Rivonia Road is an example of Redefine<br />

property that is four-star rated by the GBCSA. Features include a climateresponsive<br />

facade, efficient air-conditioning and intelligent lighting,<br />

multi-level planting beds along with some passive design elements.<br />

Township landlords are to be integrated into the real estate<br />

sector by means of loans from provincial government that will allow<br />

them to invest in their properties and comply with regulations. The<br />

aboMastandi scheme has seen 40 loans (from 2 000 applications)<br />

approved so far.<br />

On the occasion of the State of the Province Address in<br />

February <strong>2023</strong> the provincial government released 482 serviced<br />

stands. The South African<br />

Housing Infrastructure Fund<br />

(SAHIF) has been active in<br />

the market of preparing land<br />

for development. Noting<br />

that some municipalities had<br />

been returning their housing<br />

budgets unspent, SAHIF<br />

focussed on the first stages of<br />

development that are often<br />

ignored: zoning, approvals and<br />

basic infrastructure. SAHIF does<br />

that work and then sells it on to<br />

developers. It is estimated that<br />

early investments into 1 476ha<br />

of land will yield approximately<br />

73 800 housing units. SAHIF’s<br />

goal is to speed up the delivery<br />

of affordable housing.<br />

The R300-million SA SMME<br />

Crisis Partnership Fund was<br />

launched in the <strong>Gauteng</strong><br />

township of Tembisa in 2022.<br />

A collaboration between<br />

the Provincial Government<br />

of <strong>Gauteng</strong>, the Industrial<br />

Development Corporation (IDC)<br />

and the SA SME Fund intends<br />

to make financing available up<br />

to R1.5-million to SMMEs and<br />

to home owners wanting to<br />

upgrade their backyard rental<br />

accommodation.<br />

Six intermediaries have<br />

been identified to find and<br />

fund entrepreneurs and rental<br />

properties that need working<br />

capital or asset finance. Indlu<br />

GAUTENG BUSINESS <strong>2023</strong>/<strong>24</strong><br />

32<br />

PHOTO: Redefine Properties


OVERVIEW<br />

Financial products are available to allow owners to fund upgrades<br />

of backyard rooms for rental.<br />

Living, one of the six companies, is already funding rental property<br />

upgrades, with the expectation that rental income will pay off the loan.<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<br />

of the external bulk services will be supplied by the Department of<br />

Public Works and Infrastructure.<br />

Balwin Properties will develop the residential component of<br />

Mooikloof Mega City and the educational, commercial and filling<br />

station erven will be sold to a third party. The intention is to build<br />

about 16 000 apartments, with the potential to increase to 50 000.<br />

The property is on Garsfontein Drive.<br />

Another SIP is Malibongwe Ridge, a mixed-use development that<br />

is a joint venture between the City of Johannesburg and the <strong>Gauteng</strong><br />

Department of Human Settlements. Located next to Cosmos City,<br />

housing for 5 500 families is expected to cost R2.55-billion to develop.<br />

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

digitally connected and ecologically responsible and sustainable.<br />

That’s if the Provincial Government of <strong>Gauteng</strong> brings to fruition<br />

its plans for the west (Lanseria to Hartbeespoort Dam) and in<br />

the south, where Vaal River City will stretch from Vereeniging to<br />

Sasolburg in the Free State.<br />

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

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

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

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

ONLINE RESOURCES<br />

Construction Industry Development Board: www.cidb.org.za<br />

<strong>Gauteng</strong> Partnership Fund: www.gpf.co.za<br />

Green Building Council SA: www.gbcsa.org.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 />

and it intends finishing<br />

incomplete housing projects<br />

in Alexandra, Evaton, Kliptown,<br />

Bekkersdal and Winterveldt.<br />

Bodies such as the National<br />

Housing Finance Corporation,<br />

Indlu and Umastandi (social<br />

capital entrepreneurs) are<br />

working together with<br />

provincial authorities to find<br />

ways to formalise and monetise<br />

the township market so that<br />

sustainable incomes can be<br />

generated and affordable<br />

housing and rental stock<br />

become more readily available.<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 upgrading<br />

of Constitution Hill, the Faraday<br />

Station precinct, work on the<br />

Fashion District and pavements of<br />

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

Hall and 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 23: 33% of the units<br />

are bachelor pads and 22% are<br />

two-bedroomed flats. ■<br />

PHOTO: Indlu Living<br />

GAUTENG BUSINESS <strong>2023</strong>/<strong>24</strong>


OVERVIEW<br />

Development finance<br />

and SMME support<br />

Maponya Mall is lending a hand.<br />

SECTOR INSIGHT<br />

Provincial government<br />

spent R1.6-billion with<br />

youth-owned companies.<br />

Made in Soweto. The Maponya Mall Community Hub aims to<br />

support SMMEs and provide training for young people.<br />

Skills development for business owners and young people is at<br />

the centre of the Maponya Mall Community Hub, which was<br />

launched in <strong>2023</strong>.<br />

Facilities have been created at the mall where<br />

information and courses will be available. SMMEs will be helped<br />

in preparing their products for market and classes will be offered<br />

in branding and compliance.<br />

The Afrika Tikkun Foundation will run four-month Youth<br />

Accelerator Programmes focussed on sense of self and goalsetting,<br />

community and skills. Additional courses on the retail<br />

sector and ICT will be held. Other partners in the Hub initiative<br />

are Redefine Properties, the Dr Richard Maponya Institute and FNB<br />

Philanthropy.<br />

With youth unemployment high, a <strong>Gauteng</strong> Integrated Youth<br />

Development Strategy 2030 has been approved. The <strong>Gauteng</strong><br />

Provincial Government procured goods and services to the value<br />

of R1.6-billion from youth-owned companies in 2022.<br />

The national Youth Employment Stimulus (YES) programme has<br />

provided more than 100 000 young people with workplace experiences<br />

in <strong>Gauteng</strong>. Other avenues for job creation include the Expanded<br />

ONLINE RESOURCES<br />

<strong>Gauteng</strong> Growth and Development Agency: www.ggda.co.za<br />

Maponya Mall Community Hub: www.maponyamall.co.za<br />

Small Enterprise Development Agency: www.seda.co.za<br />

Public Works Programme (EPWP),<br />

placement as educational and<br />

general teacher assistants and the<br />

newly created Crime Prevention<br />

Wardens. A Township Economic<br />

Development Bill aims to do away<br />

with restrictive bylaws and rezone<br />

taxi ranks to allow for the growth<br />

of retail outlets and services such<br />

as mechanics and panel-beaters.<br />

<strong>Gauteng</strong> has 14 registered<br />

co-operative banking<br />

institutions serving more than<br />

16 000 member-owners, with<br />

over R100-million in savings<br />

and R150-million in assets.<br />

The township market of about<br />

250 000 township households<br />

holds enormous potential for<br />

collective buying.<br />

The <strong>Gauteng</strong> Growth and<br />

Development Agency (GGDA)<br />

is linking large companies with<br />

small businesses at Special<br />

Economic Zones (SEZs). The aim<br />

is to create a pipeline for SMMEs.<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 />

GAUTENG BUSINESS <strong>2023</strong>/<strong>24</strong><br />

34<br />

PHOTO: Maponya Mall


OVERVIEW<br />

Education and training<br />

A Robot and Sensor School has taken off.<br />

SECTOR INSIGHT<br />

Township achievers are<br />

being rewarded.<br />

The <strong>Gauteng</strong> Provincial Government announced in <strong>2023</strong> that<br />

it would reward excellence in schools by offering a threeyear<br />

tertiary bursary to the three pupils who finished in the<br />

top three positions in every township school.<br />

The amount allocated for this project is R360-million. The same<br />

amount was spent in the <strong>2023</strong> year on tertiary bursaries through<br />

the existing bursary programme.<br />

The provincial government has also committed R6-billon<br />

to build new schools in areas where there is the greatest need.<br />

National Treasury has released R1.5-billion to allow for the<br />

demolition of mobile and asbestos schools.<br />

The Schools of Specialisation programme is accelerating. In<br />

the course of the <strong>2023</strong>/<strong>24</strong> year the number of these schools is<br />

expected to grow from 21 to 35. An example of such as school is<br />

the Soshanguve Engineering School of Specialisation which has a<br />

focus on automotive skills.<br />

The popular annual TUKS Robot Race Day has earned the<br />

University of Pretoria a reputation for making technology<br />

accessible. In 2022 the university went a step further with the<br />

launch of the Robot and Sensor School.<br />

ONLINE RESOURCES<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 />

While the Race Day is<br />

limited to third-year students,<br />

the new school aims to<br />

expose schoolchildren to<br />

concepts that go into creating<br />

a robot such as CAD design,<br />

programming and 3D printing.<br />

Several university departments<br />

are involved in the project<br />

in which students from the<br />

Engineering, Built Environment<br />

and IT faculty give up their<br />

time to create the hardware<br />

and present modules to course<br />

participants. The programme is<br />

supported by RS South Africa,<br />

a supplier of industrial and<br />

electronic products.<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 South<br />

Africa’s (Unisa’s ) Graduate School<br />

of <strong>Business</strong> Leadership and the<br />

Gordon Institute of <strong>Business</strong><br />

Science, on the Sandton campus<br />

of the University of Pretoria.<br />

Eighty percent of the 1 230<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 />

PHOTO: University of Pretoria<br />

35<br />

GAUTENG BUSINESS <strong>2023</strong>


oppo<br />

being<br />

INTERVIEW<br />

Randburg Chamber of<br />

Commerce and Industry<br />

Promoting The voice of and business. representing businesses in the economic powerhouse.<br />

INTERVIEW<br />

Randburg Chamber of Commerce and Industry<br />

Does<br />

RCCI<br />

Cham<br />

issues<br />

provin<br />

Trade<br />

depar<br />

Linda Blackbeard, CEO of<br />

the Randburg Chamber of<br />

Commerce and Industry, looks<br />

forward Linda Blackbeard to more businesses<br />

signing up so that the Chamber<br />

can be even more effective<br />

in promoting business,<br />

facilitating deals in new<br />

markets and standing up for<br />

business in multiple forums.<br />

BIOGRAPHY<br />

Linda Blackbeard ran her own<br />

interior design and hospitality<br />

BIOGRAPHY<br />

company before taking up the<br />

Linda<br />

reins as<br />

Blackbeard<br />

CEO of the RCCI.<br />

ran<br />

She<br />

her<br />

is<br />

own<br />

Vice<br />

interior Chair of the design SACCI and Chamber hospitality Forum<br />

company and a member before of the taking South up African the<br />

reigns Chamber as of CEO Commerce of the and RCCI. Industry She<br />

is board the of SACCI directors. Chamber She was awarded Forum<br />

Chairlady the Pan African and Award a member in 2018 of in<br />

the recognition South African of her Chamber achievement of<br />

Commerce as the Continental and Industry Life-time board<br />

of Achiever directors. sector, She CEO was Global awarded Most<br />

the Influential Pan African Woman Award in <strong>Business</strong> 2018 and in<br />

recognition Government 2016 of her Awards. achievements<br />

in the Continental Lifetime<br />

Achiever sector, CEO Global Most<br />

GAUTENG BUSINESS <strong>2023</strong>/<strong>24</strong><br />

Influential Women in <strong>Business</strong> &<br />

Government 2018 Awards.<br />

What is the geographic footprint of the Chamber?<br />

The What areas is we the cover geographic are: Randburg, footprint of Sandton, the Chamber? Fourways, Midrand<br />

BIOGRAPHY<br />

and We Lanseria. cover Region B, which includes Westcliff, Northcliff, Melville, Parkhurst,<br />

Greenside, Emmarentia, Linden, Franklin Roosevelt Park, Coronationville,<br />

Linda Blackbeard ran her own<br />

What Westbury, are the key Riverlea functions and Langlaagte, of the Chamber? Rosebank, Randburg, Richmond,<br />

Primarily Parktown promote (west of Jan business, Smuts Avenue), to facilitate interior Cresta, introductions, Maraisburg design and to be hospitality<br />

Industria. the<br />

voice of business at municipal, provincial company and government before taking levels, in up the<br />

defending What are business the key in functions areas of poor of the decision-making Chamber? reigns as CEO or of unintended the RCCI. She<br />

consequences To promote business, of various to facilitate acts that introductions, are is passed. the SACCI to be We the also Chamber voice facilitate of business Forum<br />

opportunities at municipal, into provincial the SADC and regions government and Chairlady work levels very in closely defending and a with member business many in of<br />

embassies areas of regarding poor decision-making trade and tourism. or unintended<br />

the South<br />

consequences<br />

African Chamber<br />

of various<br />

of<br />

acts that are passed.<br />

Commerce and Industry board<br />

What does We also the Chamber facilitate opportunities do to support into<br />

of SMMEs? the SADC regions, business<br />

directors. She was awarded<br />

One introductions of the Chamber’s to other primary African countries focus the areas and<br />

Pan is work the very<br />

African development closely with<br />

Award in of many<br />

2018 in<br />

SMMEs, embassies finding regarding opportunities trade and for tourism. them,<br />

recognition<br />

business enhancement<br />

of her achievements<br />

in<br />

training, helping with business plans, company registrations, giving<br />

in the Continental Lifetime<br />

direction What does to ideas the that Chamber entrepreneurs do to support might SMMEs? have. Teaching them<br />

Achiever sector, CEO Global Most<br />

to form One of joint the ventures Chamber’s with primary other focus small areas businesses is the development and have of SMMEs, an<br />

opportunity finding opportunities then to tender for for work. them, We business Influential<br />

promote enhancement our<br />

Women<br />

local businesses<br />

in <strong>Business</strong> training, &<br />

being helping awarded with work business our plans, areas. company Government registrations, 2018 giving Awards. direction to<br />

ideas and building them up so that they can run sustainable businesses<br />

Does of the their RCCI own. interact with government?<br />

RCCI is Also affiliated teaching to the them only to form national joint ventures chamber with body, other South small African businesses<br />

Chamber to grow of and Commerce have an & opportunity Industry (SACCI). then to Through tender for SACCI works important that may be<br />

issues available are dealt through with directly the City at government of Johannesburg level. (CoJ). We are We also promote heard at local<br />

provincial businesses level being and the awarded Chamber the works with that needs the City to of be Johannesburg,<br />

done in our areas<br />

Trade instead and Investment of using outsiders. SA as well as various national government<br />

departments responsible for economic development.<br />

Does the RCCI interact with the government on issues relevant to<br />

Are there business? particular challenges?<br />

Randburg RCCI is Chamber one of the would chambers love to which embrace is affiliated more businesses. to the only There national is<br />

so much chamber opportunity body, the around South and African we could Chamber facilitate of Commerce more if businesses and Industry<br />

joined. (SACCI). The more Through businesses SACCI stand important together issues with are their dealt local with chamber directly of at<br />

commerce, government the stronger level. Any our chambers voice will affiliated be at municipal, and who are provincial represented and on<br />

government the SACCI level. National Chamber Forum are able to bring important issues<br />

affecting business to the attention of the SACCI Board.<br />

What does RCCI the has future two directors hold? on the SACCI Board. We are also heard at<br />

Our provincial Electronic level Certificate and endeavour of Origin to programme work with the for export CoJ and saves their time relevant<br />

and business is designed sector for South committees African as markets. the local <strong>Business</strong>es voice of business. and members can<br />

look forward We are to renewed able to engage focus, positive with NEDLAC, opportunities, DIRCO and and facilitation provincial in and<br />

the SADC government region departments, for business growth based on and the opportunity. requirements of members.<br />

The Chamber works with Trade and Investment SA as well as<br />

Contact various details national and provincial departments responsible for economic<br />

Physical address: Unit G8 Atrium Terraces, 272 Oak Avenue,<br />

Randburg, <strong>Gauteng</strong><br />

36<br />

2194. Tel: 086 101 9218 | Fax: 086 212 4407<br />

Email: admin@rcci.co.za | Website: www.rcci.co.za<br />

49<br />

Are th<br />

Randb<br />

so mu<br />

joined<br />

comm<br />

gover<br />

What<br />

Our E<br />

and is<br />

look fo<br />

the SA<br />

Con<br />

Phy<br />

Ran<br />

Ema


INTERVIEW<br />

development, including the <strong>Gauteng</strong> Growth and<br />

Development Agency (GGDA).<br />

We also liaise with the City of Johannesburg and<br />

the City’s Economic Development Department. Our<br />

goals are to support the city with its vision.<br />

We sit on the Community Policing Forum<br />

Committees and we are active partners on the<br />

committees of LDAC (Local Drug Action Committee),<br />

which is the local organisation driving crime<br />

prevention, so we look at all areas of safety and<br />

security for the people within our area.<br />

Are your members drawn from different sectors?<br />

If you’re a registered business you need to be a<br />

member of the Chamber. All legitimate industry<br />

sectors are entitled to be members of our chamber.<br />

We will support you and try to help you wherever<br />

we can. Our members are from all business and<br />

industry sectors.<br />

Would it be correct to say that the area covered<br />

by the RCCI has some of the country’s most<br />

dynamic businesses?<br />

The areas we cover form the economic powerhouse<br />

of South Africa. I cannot stress strongly enough that<br />

the business hub of Sandton alone is responsible for<br />

decision-making (on signing powers and approval)<br />

of a large number of business transactions taking<br />

place across the country. We are also the media hub<br />

of the country.<br />

Are there particular challenges?<br />

Randburg Chamber, which was founded in 1959,<br />

would love to embrace more businesses in our<br />

area. There is so much opportunity and we could<br />

facilitate so much more if businesses joined our<br />

chamber movement.<br />

We are delighted with the way our current<br />

directors and their teams are covering the web,<br />

social media, Facebook, LinkedIn and events.<br />

Things are very positive in our neck of the woods<br />

and we need all businesses to participate, so we<br />

can work more together in these tough times.<br />

The more businesses stand together with<br />

their local chamber of commerce, the stronger<br />

our voice will be. The way of doing business<br />

has changed and the Chamber is moving with<br />

the times.<br />

We are represented on the right committees,<br />

we are connected to the right people at the City<br />

of Johannesburg and we are dealing at the right<br />

levels of government through SACCI.<br />

Do we have the correct connectivity to be able<br />

to assist local businesses in their areas of need?<br />

We continually ask this question to improve our<br />

offering. The businesses out there need to tell us<br />

what their needs are. This way we can provide a<br />

better service for them.<br />

What does the future hold?<br />

Our Electronic Certificate of Origin programme for<br />

export is available. This saves the member so much<br />

time and is designed in South Africa especially for<br />

our markets. <strong>Business</strong>es and members can look<br />

forward to renewed focus, positive opportunities,<br />

and facilitation in the SADC region for business<br />

growth and opportunity. ■


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