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Gauteng Business 2016 edition

  • Text
  • Manufacturing
  • Mining
  • Development
  • Investment
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  • Gauteng
  • Economic
  • Province
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  • African
  • 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 to resuscitate

PROFILE to resuscitate industrial development through appropriate policy measures, while also recognising the economic value of the services and innovation input sectors. “One of the main objectives of ICT policies and strategies is to ensure the greatest possible diffusion of ICTs, commensurate with national needs, ambitions, specificities and concerns. Thus, information and ICT policies must take into account local, national and international issues, as well as sectoral concerns. The strategy notes the trend for the services sector, in particular the ICT services sector, to grow in tandem with development in the manufacturing and construction sectors. The strategy, therefore, is aimed at facilitating the contribution of ICT to economic participation, while also lowering the cost of such participation, with the particular focus on reducing the communications barriers for small and micro-enterprises,” as recorded in the strategy document. The vision of the Gauteng ICT Development Strategy is interpreted through the following goals: Productivity To create a heightened environment for ICT-enabled economic activity amongst large firms and SMEs; for electronic government services to citizens and business; and for support measures for ICT research and development (R&D). Connectivity Networks To foster the diffusion of ICT fixed and mobile broadband infrastructure and the connectedness of SMMEs, schools and households, in ways that contribute to reducing the cost of communications and, therefore, of economic participation. ICT skills Capacity To address the demand for skills in the broad ICT infrastructure and ICT services sectors, as well as in the society at large; and to provide for online learning in every primary and secondary school classroom; as means to increasing South Africa’s future competitiveness and laying the foundation for ICT innovation and sector development. ICT sector in SA and Gauteng According to the strategy document, the Department of Trade and Industry has identified ICT and electronics among 11 priority sectors that have the highest growth and investment potential in South Africa. ICT is a growing industry and its market has grown to R179-billion in 2010 and it is expected to grow to R187-billion in 2011 and to R250-billion by 2020. “ICT is one of South Africa’s leading sectors and contributes about 7% to the country’s GDP. South Africa has nine provinces, three of which have thriving ICT industry clusters. Gauteng (which accounts for 57% of all ICT firms), the Western Cape (Cape Town: 17%) and KwaZulu-Natal (Durban and Pinetown: 8%). The three clusters have the potential to grow and make South Africa the technological hub of the African continent. Gauteng, as the largest cluster and the largest commercial centre in Africa, has the potential to lead in innovation and research in ICT,” according to the document. The Gauteng ICT’s strategic objectives are: • To provide universal access to broadband (as defined by the national broadband policy) for citizens, business as well as government institutions. • To build the Network Infrastructure and Information Super-highway to encourage the development of advanced workforce with better ICT skills. • To enhance economic productivity through ICT infrastructure development in order to lower the cost of doing business and increase connectivity for companies especially SMMEs. • To increase the ICT skills capacity within the public and the private sectors to create a pool of ICT practitioners and entrepreneurs. • To improve service delivery by providing high quality ICT services through e-government; • To build an economic and industrial sector with a focus on ICT, and in particular, software industry. • To ensure that innovation becomes part of the economic network in Gauteng Province in relation to ICT. GAUTENG BUSINESS 2016 72

PROFILE • To reduce the carbon footprint of the province through Green ICT. • To create employment in the ICT sector. ICT profile As the largest ICT cluster in SA, Gauteng has two sub-clusters: Joburg and Tshwane. Gauteng has all the elements required to create a large and successful ICT innovation cluster in South Africa. These include world class institutions of higher learning, as the largest province economically it has the capital, young talented people flocking from all parts of South Africa, incubation centres, a large market and the largest number of ICT multinationals in the whole of South Africa. According to the provincial government, all that is needed is a co-ordinated way of bringing these elements together to create an innovation ecosystem. “One of the most important dynamics in developing ICT and building the Information Society in Gauteng is providing an advanced ICT network infrastructure that is characterised by a high performance broadband network and extensive penetration that covers all areas in Gauteng without exception. Infrastructure accessibility should be of a reasonable cost that corresponds to the purchasing power of individuals, in a way that enhances public accessibility in remote areas where the means of access to infrastructure and services are lacking. This can be achieved by establishing public access centres, such as community centres, post-offices, schools, libraries and archives. “Expanding of ICT infrastructure in Gauteng should improve its status according to international indicators of e-readiness. The fast-evolving nature of ICT makes it important for Gauteng to take rapid changes into account to be able to keep up with the global development in the coming years. By rapidly expanding of accessibility to infrastructure in Gauteng, the ability of individuals to access, process, and exchange information on the national and international levels, for the purpose of promoting socio-economic, political, educational, cultural, scientific, academic and health activities will be increased. Gauteng has a low broadband penetration, therefore consolidation and new investments are required to provide universal access to broadband in the province,” according to the strategy document. Further to this, the Gauteng province is home to a number of dedicated and specialist data centres, many of which service specific companies (for instance, the 27 000 square metre. Samrand Data Centre used by Standard Bank). Specialist data centre operators such as Business Connexion are also located in Gauteng. Metrofibre Networx, a company based in Midrand, is a new entrant to the market and competes with Vodacom and Neotel in providing metro Ethernet technology. Ethernet technology is a fibre-based broadband technology that offers a cheaper alternative to connect subscribers to the Internet or to connect different offices owned by a single company. In conclusion, implementing the strategy with these goals in mind will ensure the stated strategic objectives are achieved. The implementation will also ensure the expansion of the Gauteng ICT cluster. In the end, the ICT strategy has to be within the context of the Gauteng Employment, Growth and Development Strategy (GEGDS) and government priorities, according to the Gauteng ICT Development Strategy. 73 GAUTENG BUSINESS 2016

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