5 years ago

Gauteng Business 2016 edition

  • Text
  • Manufacturing
  • Mining
  • Development
  • Investment
  • Business
  • Network
  • Gauteng
  • Economic
  • Province
  • Provincial
  • Infrastructure
  • Economy
  • Automotive
  • Sector
  • 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.

OVERVIEW Agriculture and

OVERVIEW Agriculture and Agro-processing Gauteng is experiencing a boom in agriculture-related investment. With mining starting to take a back seat as the main economic driver of Gauteng, we’ve seen a shift in focus to other areas to balance the books. Agriculture is one such area that has received a lot of investment in recent years, with food security being at the top of everybody’s list. While Gauteng occupies the smallest land-mass at 1.4 percent, it has a fairly big agro-processing industry, with over half of food processing companies being based in Gauteng. The food and beverage sector has experienced an 18 percent growth from 1996 to 2013 and now employs well over 120 000 people in the province. Gauteng is home to some of South Africa’s largest agricultural companies, including AFGRI, a listed agriculture services and foods company, which specialises in animal feed production. A significant share of agricultural activity within the province is concentrated on the production of vegetables. Fruit, dairy products, eggs, maize and grain are also produced in large volumes within the province. Agricultural activity is quite specialised in certain areas of Gauteng. For instance, farming activity in regions near Bronkhorstspruit (in the east) and Heidelberg (in the south) centres predominantly on cotton, groundnuts and sorghum production. Heidelberg is also a home to Africa’s largest feedlot for cattle. More exotic agricultural products are also farmed and produced in certain areas. For example, crocodiles are farmed at Izintaba farm outside Pretoria. These are used primarily for the production of crocodile skins – South Africa has three tanneries and produces about 55 000 crocodile skins every year. The Gauteng Provincial Government, together with the Sedibeng and West Rand district municipalities, are actively promoting the development of small-scale farming and agricultural co-operatives within the province with a view to addressing food security concerns and promoting sustainable development. There has also been a shift in focus in government policies towards the promotion of agro-processing activities and the production of value-added agricultural products. This is seen as a key mechanism to eradicate poverty and inequality within the province. Investment in agro- process- GAUTENG BUSINESS 2016 80

OVERVIEW and Agricultural Biotechnology Institute (FABI) is located at the University of Pretoria. Malt and Beer ing is focused on the production of strategic value-added products such as soya beans, rooibos tea, beverages, fruit and vegetables. A number of agriculturefocused research institutions are based in the province, providing critical support to agricultural production. For instance, the Agricultural Research Council’s (ARC) national research facilities are located in Pretoria, and include the Roodeplaat Vegetable and Ornamental Plant Institute and the Onderstepoort Veterinary Institute. In addition, the Forestry Three of the seven breweries operated by SAB in South Africa are located in Gauteng, and various complementary industries, activities and facilities (such as bottling plants and distribution hubs) have grown as a result of the company’s presence within the province. In addition, Heineken launched a new brewery in southern Gauteng in 2010, where it will brew 400-million litres of beer per annum. The alcoholic beverages industry is a significant contributor to national GDP in South Africa. An estimated R94.2-billion (or 4.4 percent of GDP) can be traced back to the industry’s manufacturing operations and capital expenditure. The industry is also a major employer within the country, employing in excess of an estimated 21 300 workers and supporting an additional 66 000 jobs directly through suppliers. Key players in the industry in South Africa include South Africa Breweries (SAB) (malt beer), United National Breweries (sorghum beer), Distell (spirits and flavoured alcoholic beverages, or FABs) and Brandhouse (malt beer, spirits and FABs). Each of these firms holds a substantial share of the respective segments of the market in which they operate. Brandhouse, the Heineken-Diageo-Namibian Breweries joint venture, is SAB’s main competitor in the malt beer market, and the third largest liquor company in South Africa by value of sales. In the case of the wine industry, Distell, KWV and DGB control a number of brands, while there are also a large number of smaller “independent” producers actively competing in the industry in South Africa. Gauteng is a key centre for the production of beer and malt within South Africa. United National Breweries produces Umqomboti, a traditional African beer, in northern Gauteng. The Amalgamated Beverage Industries, a subsidiary of SAB, has a manufacturing plant in Midrand which makes use of advanced technology. It also operates plants in Devland and Pretoria. Investment opportunities: • Investment in the production of ground-nuts, sunflowers, cotton and sorghum; • Investments in agro-processing products such as soya beans, rooibos, beverages, fruit, vegetables, and forestry; • Essential oil extraction from herbs and indigenous plants; • Expanding the ‘exotic’ meat (kudu, ostrich and springbok) market, locally and globally; 81 GAUTENG BUSINESS 2016

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