South African Business 2016 edition

OVERVIEW Regional

OVERVIEW Regional overview: Gauteng Gauteng is the smallest in area but the largest contributor to the national GDP. As the leader of South Africa’s economy, it is the core of South African business and continues to perform in various other sectors. Manufacturing, wholesale, retail and trade, finance and business services and transport are the main economic sectors responsible for Gauteng’s wealth. With a gross domestic product (GDP) valued at R811-billion (US2-billion), Gauteng generates 33.9% of South Africa’s GDP and an astonishing 10% of the total GDP of the entire African continent Key sectors Most of the major banks are positioned around Johannesburg (which is home to Africa’s largest stock exchange, the JSE), and the finance and business services sector is a key focus in the provincial economy. Many international corporates such as Citibank, Microsoft and McDonald’s are headquartered in the province, as it is seen as the commerce capital and the gateway to Africa. Media services in Gauteng are extensive. South Africa’s national broadcaster is based there, as are many popular radio stations and large publishing houses. Gauteng has a highly competitive newspaper market which includes local and national publications such as The Sunday Times, The Sowetan, The Star, Rapport and also the Mail & Guardian. SOUTH AFRICAN BUSINESS 2016 164

Gauteng sector contribution. SOURCE: GAUTENG GROWTH AND DEVELOPMENT AGENCY GENERAL GOVERNMENT SERVICES 19.3% PERSONAL SERVICES 4.4% FINANCE, REAL ESTATE & BUSINESS SERVICES 24.7% TRANSPORT, STORAGE & COMMUNICATION 8.2% WHOLESALE, RETAIL, MOTOR TRADE, CATERING & ACCOMMODATION 15% CONSTRUCTION 4.9% ELECTRICITY, GAS & WATER 2.8% MANUFACTURING 17.1% MINING & QUARRYING 3.2% AGRICULTURE, FORESTRY & FISHING 0.4% OVERVIEW Gauteng has a varied manufacturing sector; from heavy-steel, automotive assembly to the food and beverages industry as well as light commercial and industrial activity. Key food and beverage brands are in operation around Gauteng. Nestlé and Pioneer Foods have spent millions on new developments and improvements. Rainbow, one the country’s leaders in poultry production, has 18 farms and two feed mills in the province. South African Breweries (SAB) has recently constructed a new plant producing malted barley in Alrode to the value of R700- million. Companies such as Kimberly-Clark, Proctor & Gamble, ArcelorMittal, Transnet Engineering and Aspen all have manufacturing facilities in Gauteng Province. Economic future Gauteng is the heart of South Africa – all major roads and highways lead to it. Its infrastructure and transport has always been a focus. In line with ‘Gauteng Vision 2055’, there are big plans for infrastructure. Gauteng dominates the South African economy in every major sector except agriculture, mining and quarrying. Ironically, even with 97% of its land urbanised, the province’s agricultural output, beats that of the rural Eastern Cape, which is 10 times its size. An estimated 40.6% of South Africa’s manufacturing is done here, a third of its electricity, gas and water output, 41.9% of the country’s construction, 39.7% of its finance, real estate and business activity, 34.8% of its wholesale, retail, motor trade and accommodation, 32% of transport, storage and communication, and 38.8% of general governments services. The Gauteng economy itself is dominated by tertiary industries. The finance, real estate and business services sector makes up 22.8% of the province’s gross domestic product, with manufacturing contributing 16.5%, government services 16.3%, and the wholesale, retail, motor trade and accommodation sector 12.6%. Gauteng is embarking on major new infrastructure developments that are set to revolutionise the province and play a major role in positioning the province as the economic heart of the African continent. GAUTENG www.gautengonline.gov.za Capital Population Area Premier Johannesburg 13 200 300 (2015) 18,178 km 2 David Makhura (ANC) Languages Afrikaans, isiZulu, English, Sesotho 165 SOUTH AFRICAN BUSINESS 2016