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Gauteng Business 2016 edition

  • Text
  • Manufacturing
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  • Gauteng
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  • Johannesburg
The 2016 edition of the Gauteng Business and Investment Guide is the premier business and investment guide for the Gauteng province and the Gauteng Growth and Development Agency (GGDA). In addition to detailed profiles of key provincial organisations, including the GGDA, the Automotive Industry Development Corporation Centre (AIDC), the Gauteng Investment Centre, the Gauteng IDZ, the Gauteng ICT Park SEZ and Constitution Hill, this edition includes well-researched economic and demographic data on the province, as well as insights into the province’s five development corridors and the new industries and development nodes in these corridors; a focus on Gauteng as a global city region; and key growth sectors for the province.

PROFILE

PROFILE Gauteng Industrial Development Zone (GIDZ) All aboard! The new OR Tambo Aerotropolis is now ready for take-off. Being part of the new aerotropolis precinct, which was established to enhance developments in the Eastern Corridor of Gauteng, the OR Tambo International Airport Industrial Development Zone (ORTIA IDZ) programme is aiming to develop 725 hectares of land situated around the OR Tambo International Airport. This will indeed be a welcome financial injection – set to stimulate economic development in the region. The ORTIA IDZ is a Gauteng Provincial Government initiative lined up to realise the objectives of implementing its economic development goals. The initiative is aligned to the priorities set out by both national and provincial government, which among others include leading, facilitating and managing sustainable job creation and inclusive economic growth and development in the Global City Region. 2009 to develop and operate the IDZ at the ORTIA. The GIDZ Devco is a subsidiary of the Gauteng Growth Development Agency (GGDA); it was incorporated as a pre-requisite for the application of an IDZ Operator permit. The IDZ Operator Permit License was issued in December 2010 to DEVCO to develop and operate the ORTIA IDZ, on recommendation by the Manufacturing Development Board to the Minister of Trade and Industry. Focus on precious and semi-precious metals Guided by the GIDZ Devco, the new JMP programme is directed at light, high-margin, export-oriented manufacturing of South African precious and semi-precious metals. The multi-site development With a strong focus on developing beneficiation capacity related to the precious metals and minerals sector, the first phase of the Gauteng Industrial Development Zone (GIDZ) has been identified as a catalyst to develop the broader GIDZ – an important key to unlock Gauteng’s jewellery benefit potential in the newly introduced Jewellery Manufacturing Precinct (JMP). Being part of the broader aerotropolis framework, which was defined to enhance developments in the eastern corridor of the province, the delivery of the JMP is divided into three parallel processes: infrastructure development, investor attraction and skills development. Development of the precinct is driven by the Gauteng Industrial Development Zone Development Company (GIDZ Devco), a special purpose vehicle that was created in GAUTENG BUSINESS 2016 64

PROFILE consists of several industry-specific areas to be developed in phases over a 10 to 15 year period. Various skills development programmes will be implemented to enhance skills in the sector. The programme contributes directly to Strategic Goal 1 (Gauteng’s economy radically transformed) and Strategic Goal 2 (Gauteng’s economy re-industrialised) and supports delivery of Strategic Goal 3 (GGDA capacitated to deliver and implement efficiently and effectively). Once completely established, the JMP will be a fully operational programme, set on 6.1 hectares of land with a mixture of facilities for storage, design, manufacturing and retail businesses, bringing with it a myriad of investment opportunities including ICT production and distribution, aerospace, electronics, avionics, and related industries. The JMP further offers investors the opportunity to get involved with the mineral beneficiation sector in South Africa, whilst receiving special export conditions and business incentives. Special Economic Zones Looking at the bigger picture, apart from enhancing the economic competitiveness, establishing Special Economic Zones (SEZs) in the region will also promote competitiveness among enterprises. Moreover, it will seek to encourage domestic and Foreign Direct Investment (FDI) for Township Industrial Hubs. It is expected that the intervention will contribute to job creation, while also reducing the cost of doing business in SEZs and industrial hubs. Once developed, the SEZs will provide significant opportunities in terms of: • Attracting domestic investment and FDI in manufacturing and tradeable services; • Providing non-core services, such as transport and distribution, to the SEZ; • Providing increased export opportunities through export incentives; and • Establishing green industries, oil and gas services investors, aquaculture projects, as well as a possible mineral sand beneficiation investment. Partnerships Critical to the success of the precinct is infrastructure development and the creation of successful partnerships and collaboration with other roleplayers in the region, such as the Airports Company South Africa (ACSA) and the Gauteng Department of Economic Development (GDED) and a land lease agreement between ACSA and the GDED on the 6.1 hectares of land to be developed as Phase 1 of the IDZ programme was concluded last year. In addition, a funding understanding with the National Treasury for the bulk infrastructure development were also reached. In respect of infrastructure, the bulk infrastructure of the JMP will be undertaken with the support of the GDED’s infrastructure unit. In the year under review, consulting engineers were contracted through GDED to develop the detailed designs required to secure site development plans approval by the Ekurhuleni Metropolitan Municipality, as well as to provide professional engineering services. . CONTACT INFO Physical address: Office NL 46, 3rd floor north wing, OR Tambo International Airport Tel: 010 001 9120 Email : info@gidz.co.za Website: www.gidz.co.za 65 GAUTENG BUSINESS 2016

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