Gauteng Business 2016 edition

FOCUS With a private

FOCUS With a private sector investment of more than R4-billion, this development will stimulate much needed economic activity in this corridor. The development is estimated to be worth between R7- and R11-billion, and will create up to 7 500 jobs in the construction phase alone. The new Vaal River City will comprise a unique residential and commercial development. The second area of focus is to unlock the agricultural potential of Sedibeng as the food basket of the Gauteng City Region and position the region as an Agropolis. In this regard, they are working with the private sector to support 32 black farmers to plant barley and maize to be supplied to the nearby Heineken Brewery. The project will create 1 000 permanent jobs per annum over three years. The Department of Agriculture would also establish an agri-park linked to township revitalisation near Sebokeng Zone 10 Industrial Area. Also in this corridor, they will continue to support the Gauteng Highlands development, a mixed-use development comprising industrial and residential space. This is a R40-billion investment aimed at creating 25 000 direct and indirect jobs,” said Makhura. For the southern corridor, R1.5-billion had been set aside for housing, services, new schools, rehabilitation and upgrade of roads, in particular R82 Phase 2 between Walkerville and Vereeniging, and maintenance and rehabilitation of health facilities.The Department of Human Settlement has set aside R892-million which will go toward building more than 120 000 houses in Sedibeng over the next five years. The Southern Corridor In the Southern Corridor, which represents the Sedibeng district and the Vaal triangle, government’s goal is to shift the economy away from its overreliance on the steel industry and diversify to include tourism and entertainment, agro-processing, logistics. The development of the new Vaal River City (hydropolis) aims to unlock the potential of the waterfront developments in the Emfuleni and Midvaal areas. The second area of focus is to unof the Aerotropolis will also cover Lanseria Airport in Johannesburg and Wonderboom Airport in Tshwane. Because of the interregional nature and transformative magnitude of the Aerotropolis this project has now been elevated to being a Gauteng City Region-wide initiative. There are also a number of other unfolding initiatives by stateowned companies that will contribute to the reindustrialisation of Ekurhuleni . Worth mentioning is Tambo Springs Inland Port Development Project estimated to receive R7.5-billion investment over the next five years. Contributing further to the geographical and spatial change planned within the corridor, the provincial government will roll out the Bus Rapid Transit System and plans to build more than 100 000 housing units in Chief Albert Luthuli, John Dube Extension 2, Tsakane Extension 22, Germiston South, Leeuwpoort, Rietfontein and Claysville Extension 45. The Northern Corridor The Northern Corridor is centred both around Pretoria, as South Africa’s administrative capital and Tshwane, South Africa’s capital city. The main economic drivers are the automotive sector and its research, development and innovation capacity. Along this vein, the West Capital development project will include the development of a student village, sport incubatory centre, retail and commercial components, inner city housing and health facilities. The City of Tshwane will further invest R525-million to establish a Business Process Outsourcing Park in Hammanskraal. The Park will offer on-site training, technical support and incubators for SMMEs. The project is expected to create over 1 000 jobs during construction and over 1 000 indirect jobs. Of the R2-billion set aside for this corridor, human settlements again absorbs the lion’s share of R964.2-million, of which over R400-million has been set aside for the Soshanguve and Hammanskraal vicinity. GAUTENG BUSINESS 2016 30

FOCUS lock the agricultural potential of Sedibeng as the food basket of the Gauteng City Region and position the region as an Agropolis. The Western Corridor In the fourth corridor, the Western Corridor, the West Rand district has experienced significant de-industrialisation due to the decline of the mining industry, which was the main employer and source of revenue for municipalities. Going forward the economy of the Western Corridor will focus on the green and blue economy initiatives, tourism, agro-processing and logistics. The Lanseria Airport and Maropeng World Heritage Site will be the main anchors of the new city and new economy of the West Rand. Overview Both, the western and southern corridors will see the creation of new industries, new economic nodes and new cities, affirming Makhura account, “Gone are the days when some regions and municipalities will be neglected as the Cinderella’s on the periphery of the provincial economy. We need deliberate and conscious action by the entire city region leadership to reverse spatial injustice and economic marginalisation of Sedibeng and the West Rand.” Through the above cited initiatives, Gauteng aims to invest in economic infrastructure as the key stimulator of growth, while also pursuing infrastructure partnerships with the private sector. The provincial government is working with the municipalities and private sector partners to unlock the potential of the Lanseria Airport logistics hub. Thus far the private sector is injecting at least R500-million in Capex for the development of the airport, with over R10-billion expected to be invested in Lanseria over the next 15 years. Furthermore, working with national government and Busmark, they will support the manufacturing of coaches to supply various mass transit bus fleets. The corridor will be positioned as a hub of agriculture and agroprocessing, and work is underway to leverage the corridor’s high value horticultural potential. As part of the transformation of the agricultural sector, to ensure food-security and in order to stimulate economic activity in the corridor, government has invested in the Randfontien milling facility. In addition, publicprivate partnership will see the development of aquaculture projects, such as the prawn farming facility. This initiative will create a total of 6 512 jobs in the West Rand over three years. 31 GAUTENG BUSINESS 2016