SPECIAL FEATURE Trends There are several areas in which new or revitalised sectors are providing employment and creating new opportunities: • tourists are visiting South Africa in record numbers • the successful renewable energy private investor programme is due to be restarted • companies are trading into Africa with considerable success • niche agricultural markets are booming with macadamia nuts being the most successful. Wine and grape exports to China also hold great potential. • several provincial governments and investment agencies are establishing trade relations and study programmes with BRICS countries • private education (at school and tertiary level) is a boom sector • new banking licences have been issued and several more are in the pipeline • new stock exchanges came on line in 2017 and more are expected • investment in infrastructure (especially ICT and railways) is strong • national government has committed to the National Development Plan (NDP), a blueprint for how to move the country forward. Part of that plan entails setting up deliverable schemes, such as the Strategic Integrated Projects. Strategic Integrated Projects (SIPs) The National Department of Economic Development is responsible for economic planning. It has set out a list of 18 major projects called the Strategic Integrated Projects (SIPs) which are intended to spur growth and development in a sector or geographical area. The focus is spread across seven primary concerns to be addressed: geographic focus (five SIPs), spatial (three), energy (three), social infrastructure (three), knowledge (two), regional integration (one), water and sanitation (one). They cover all nine provinces with an emphasis on areas that need more investment, and focus on economic and social infrastructure. The 18 projects themselves contain many smaller plans and projects, each with budgets and deadlines. These projects are: 1. Unlocking the Northern Mineral Belt with Waterberg as the catalyst 2. The Durban-Free State-Gauteng Logistics and Industrial Corridor 3. South-eastern node and corridor development 4. Unlocking the economic opportunities in North West Province 5. Saldanha-Northern Cape Development Corridor 6. Integrated Municipal Infrastructure Project 7. Integrated Urban Space and Public Transport Programme 8. Green energy in support of the South African economy 9. Electricity generation to support socio-economic development 10. Electricity transmission and distribution for all 11. Agri-logistics and rural infrastructure 12. Revitalisation of public hospitals and other health facilities 13. National school build programme 14. Higher education infrastructure 15. Expanding access to communication technology 16. SKA and MeerKat (international radio astronomy project) 17. Regional Integration for African cooperation and development 18. Water and Sanitation Infrastructure Master Plan. To illustrate how many projects are undertaken in support of an SIP, there has been a lot of action to support the overall goal of creating an integrated logistics corridor between Durban and Johannesburg (SIP 2). Projects within the SIP include: SOUTH AFRICAN BUSINESS 2018 14
SPECIAL FEATURE ZIMBABWE NAMIBIA BOTSWANA Limpopo 0.9% (7.1%) MOZAMBIQUE North West -3.6% (6.5%) Gauteng 2.1% (34.3%) Mpumalanga 2.7% (7.5%) SWAZI- LAND Northern Cape 2.8% (2.1%) Free State 1.8% (5%) LESOTHO KwaZulu- Natal 2.3% (16.1%) Western Cape 2.0% (13.6%) Eastern Cape 1.0% (7.6%) SA GDP: Percentage of growth per province (2014) and percentage contribution to national GDP (figures in brackets). SOURCE: STATS SA WWW.STATSSA.GOV.ZA • a R2.3-billion container terminal at City Deep, Johannesburg • a R3.9-billion project to upgrade Pier 2 at the Port of Durban • R14.9-billion of rolling stock for the rail line • R30.4-billion completion of the New Multi- Product Pipeline by Transnet Pipelines • official inauguration in 2017 of the Maluti-A- Phofung Special Economic Zone (logistics hub, fuel distribution depot, manufacturing) at Harrismith in the Free State. Geography South Africa’s location between the Atlantic and Indian oceans ensures a generally temperate climate. The 2 954km coastline stretches from the border with Namibia on the Atlantic to the border with Mozambique in the east. The cold Benguela current sweeps along the western coast while the warm Indian Ocean ensures that the Mozambique/Agulhas current is temperate. South Africa’s coastal plain is separated from the interior by several mountain ranges, mostly notably the Drakensberg which runs down the country’s eastern flank. Smaller ranges in the south and west mark the distinction between the fertile coastal strip and the dry interior known as the Karoo. The city of Johannesburg is located on the continental divide, whereby water runs south of the city towards the Atlantic Ocean while waters to the north drain towards the north and east. Johannesburg is 1 753m above sea level. Most of the country has summer rainfall but the Western Cape, which has a Mediterranean climate, receives its rain in winter. Droughts are not uncommon and although the national average is 464mm, most of the country receives less than 500mm of rain every year. The Western Cape is currently experiencing a severe drought. 15 SOUTH AFRICAN BUSINESS 2018
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