A REGIONAL OVERVIEW OF
A REGIONAL OVERVIEW OF GAUTENG Special Economic Zones and expanded infrastructure are central elements to the strategies being devised to grow the Gauteng economy. By John Young One of the plans to boost Gauteng, “Growing Gauteng Together” (GGT 2030) prioritises the economy, jobs and infrastructure, with the manufacturing sector earmarked as a key driver. Gauteng accounts for 45% of the South Africa’s manufacturing capacity, so the province is wellplaced to expand an already strong and diverse sector. Manufacturing makes up 14.5% of formal sector output in Gauteng, making it the fourthlargest sector. One in nine jobs in the province are created in the sector. According to the Gauteng Growth Development Agency (GGDA), six out of 10 foreign direct investment (FDI) projects in Gauteng have flowed to the manufacturing sector and its subsectors. In the five years to 2019, the Gauteng City- Region attracted 447 FDI projects valued at R264-billion, which created more than 69 000 jobs (FDI Markets). The GGDA is an implementing agency which aims to facilitate business enablement, develop small, medium and micro-enterprises (SMMEs) and to promote investment and job creation. Focussed support for these specific subsectors is intended to spur other investments: automotive sector, mineral beneficiation, capital equipment, agro-processing, pharmaceuticals and tertiary GAUTENG BUSINESS 2020/21 6
SPECIAL FEATURE Tech SEZ (Tshwane), the Vaal SEZ (Sedibeng), and the Tshwane Automotive SEZ. The National Department of Trade, Industry and Competition (dtic) is the lead agent in the creation of SEZs, which are part of the national Industrial Policy Action Plan (IPAP). SEZs are designed to attract investment, create jobs and boost exports. The Provincial Government of Gauteng has identified 10 “high-growth” sectors where it intends concentrating its efforts to build infrastructure and to attract public and private sector investment: • Energy: new technologies and a diverse Transportation and logistics. • ICT, media and digital services. • Tourism and hospitality. • Agricultural value chain. • Construction and infrastructure. • Automotive, aerospace and defence. • Financial services. • Cultural and creative industries. • Industrialisation of cannabis. Credit: ACSA services such as the BPO, ICT services, tourism and the knowledge economy. GGDA subsidiaries include The Innovation Hub (technology), the Automotive Industry Development Centre (AIDC), which manages the Automotive Supplier Park (ASP) and InvestSA Gauteng (red tape remover for investors). The Johannesburg Development Agency (JDA) plays a similar role as the City of Johannesburg’s development agency. JDA’s focus is on helping create resilient, sustainable and liveable urban areas in identified transit nodes and corridors. In 15 years, 387 projects have been implemented. Special Economic Zones (SEZs) are being created and expanded across the province to support manufacturers, providing them with the necessary infrastructure and access to related businesses. This has seen the expansion of the OR Tambo International Airport (ORTIA) SEZ (Ekurhuleni) and the establishment of the High- These priorities were announced before the onset of the Covid-19 global pandemic, so obviously there will be some major adjustments, especially with regard to tourism and hospitality which has suffered major setbacks during the local and international lockdowns. It could be that the focus shifts more strongly to another one of the priorities of local and regional government, affordable housing. Much has been done to provide housing since the dawn of the democratic era in 1994, but much more needs to be done in response to rapid urbanisation. Gauteng Province has pledged to provide 100 000 service stands to qualifying Gauteng residents who want to and are able build their own homes and it wants an additional 250 000 people to be able to recent “decent accommodation” over the next five to 10 years. This is in addition to facilitating the development of mega-cities, one to the west of Lanseria and the other to the south of Vereeniging. Vaal River City will span the Orange River and eventually link up with Sasolburg in the Free State, according to the blueprint. Another housing initiative will see provincial funds ring-fenced to formalise informal settlements 7 GAUTENG BUSINESS 2020/21
