SPECIAL FEATURE In a year that saw world economic and political uncertainty, South Africans still had much cause to celebrate. Great strides have been made nationwide in building schools and hospitals, major efforts are underway in terms of job creation, skills development, SMME growth, the empowerment of women as well as innovation. After a tough period of loadshedding and energy instability, Eskom seems to have the national grid stabilised as well as solid plans for the expansion of our infrastructure. South Africa also hit the world headlines through the discovery of a new species of human relative (“Homo naledi”) at the Cradle of Humankind World Heritage Site, a local doctor successfully completed the world’s first penis transplant, and Trevor Noah captured a slice of America’s cultural empire by taking over as host of Comedy Central’s The Daily Show. National priorities In his State of the Nation Address in early 2015, President Jacob Zuma said that it had been the year of “rededicating ourselves to eradicate racism and all related intolerances in our country. Zuma added that the country’s ambition of achieving a growth target of 5% by 2019 is at risk because of slow global growth as well as domestic constraints in energy, skills, transport and logistics amongst other factors. However, the situation was more promising on the jobs front as Statistics South Africa’s report on the last quarter of 2014 showed that there are now 15.3-million people who are employed in South Africa. “Jobs grew by 203 000,” said Zuma, adding that the economy still needed a major push forward. Zuma also presented government’s nine-point plan to ignite growth and create jobs. SOUTH AFRICAN BUSINESS 2016 12
SPECIAL FEATURE “A lot has been achieved in the past year. We believe that our nine-point economic intervention plan on the economy will consolidate the achievements, and ignite much-needed growth,” said Zuma. South Africa has the 24th largest economy in the world and contributes 30% of sub-Saharan GDP despite having only 6.5% of the population. Sound financial management has seen South Africa’s macro-economic fundamentals become very strong off the shaky base that the apartheid regime created. In particular, prudent controls meant that South Africa was able to withstand the shockwaves sent around the world by the international financial-sector meltdown. The country is renowned for an abundance of mineral resources, accounting for a significant proportion of both world production and reserves, and South African mining companies dominate many sectors in the global industry. South Africa produces 10% of the world’s gold (it is estimated that about one-third of the world’s unmined gold still remains in South Africa) and there has been an increase in the beneficiated minerals industry, which the government has targeted as a growth sector. National Government’s 9-point growth plan 1. Resolving the energy challenge. 2. Revitalising agriculture and the agro-processing value chain. 3. Advancing beneficiation or adding value to our mineral wealth. 4. More effective implementation of a higher impact Industrial Policy Action Plan. 5. Encouraging private sector investment. 6. Moderating workplace conflict. 7. Unlocking the potential of small, medium and micro enterprises (SMMEs), cooperatives, township and rural enterprises. 8. State reform and boosting the role of state owned companies, information and communications technology (ICT) infrastructure or broadband roll-out, water, sanitation and transport infrastructure. 9. Operation Phakisa, which is aimed at growing the ocean economy and other sectors. Economy The discovery of diamonds and gold in the 19th century laid the platform for the development of South Africa as an industrialised economy. Wool, wine and mohair were the country’s only exports before minerals were discovered. Although mining plays a far smaller role in the economy than it used to, it still contributes significantly to GDP, employment and taxation income. Demand for platinum, iron ore and manganese from the new global powerhouses of China and India is motivating investment in the sector in South Africa. Mining companies account for about a third of the market capitalisation (R1.86-trillion) of the country’s stock exchange, the JSE. One of South Africa’s fastest-growing manufacturing sectors, catalytic converters, also 13 SOUTH AFRICAN BUSINESS 2016
PROFILE ECIC exco profiles Profiles
INTERVIEW The hub of Africa Tim Har
Key sectors Overview of the main ec
OVERVIEW from the subsistence farme
OVERVIEW South Africa produces abou
South Africa’s looming energy gap
How will these resources be develop
Vall exclusive economic zone limits
OVERVIEW NEED PIC Mining The South
OVERVIEW Mineral beneficiation The
PROFILE The Council for Geoscience
OVERVIEW Energy The South African e
INTERVIEW Cummins South Africa Cumm
OVERVIEW Manufacturing Increasing m
OVERVIEW Automotive International i
OVERVIEW Automotive components Incu
OVERVIEW Chemicals and pharmaceutic
OVERVIEW Healthcare South Africa’
OVERVIEW Water Severe water restric
OVERVIEW Improving quality The intr
Our Vision is is “Quality water f
OVERVIEW 107 SOUTH AFRICAN BUSINESS
OVERVIEW airports in India and Braz
affords, while maintaining its envi
kets, except Australia. In Africa,
Rosebank, Johannesburg, renamed ‘
Trade with Africa Improved infrastr
FOCUS MTN plugs R1.2-billion into K
MTN rolls out fibre infrastructure
OVERVIEW community engagement. The
PROFILE For BEE Verification and is
OVERVIEW attracting and retaining c
OVERVIEW Small business is taken ve
Franchise Fund—an innovative plat
educating young people in fields th
OVERVIEW Management Plan has divert
hazardous waste is also not being c
INTERVIEW yourself up as a Tier 1 o
OVERVIEW Renewable energy South Afr
INTERVIEW Plenty of scope for solar
LISTINGS South African business org
LISTINGS South African National Gov
LISTINGS Department of Communicatio
LISTINGS Department of Human Settle
LISTINGS Department of Science and
OVERVIEW Regional overview: Eastern
INTERVIEW Buffalo City on the rise
OVERVIEW Regional overview: Free St
OVERVIEW Regional overview: Gauteng
FOCUS A Catalyst for Economic Devel
FOCUS business people and tourists
OVERVIEW Regional overview: KwaZulu
OVERVIEW Regional overview: Limpopo
OVERVIEW Regional overview: Mpumala
The powerhouse of Africa Mpumalanga
Mpumalanga: Key Sectors Mpumalanga
Nkomazi Special Economic Zone The N
INVEST IN THE PROVINCE OF THE RISIN
OVERVIEW Regional overview: Norther
OVERVIEW Regional overview: North W
OVERVIEW Regional overview: Western
FOCUS Khayelitsha - the power of to
INDEX INDEX Abeco Tanks ...........
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