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Gauteng Business 2017-18 edition

  • Text
  • Manufacturing
  • Mining
  • Infrastructure
  • Development
  • City
  • Smart
  • Business
  • Investment
  • Business
  • Invest
  • Regional
  • Gauteng
  • Johannesburg
  • African
  • Sector
  • Banking
  • Provincial
  • Economic
  • Tshwane
Gauteng Business 2017/18 is the ninth edition of this highly successful annual journal, that has established itself as the premier business and investment guide for the Gauteng province. Special features for 2017/18 include a focus on major new developments in the region’s metros, complemented by detailed overviews of the main economic sectors in South Africa’s most important provincial economy.

SPECIAL FEATURE core

SPECIAL FEATURE core businesses in the area, with a huge headoffice complex. Randburg Square has recently been converted from offices to 180 flats by Vukile Property Fund. This kind of conversion is becoming a trend, with office vacancies standing at 11% in early 2017 across South Africa. The building of their own huge new corporate headquarters by big companies exacerbates this trend. Another property fund, Emira, plans to convert some of its Rosebank office space into accommodation. Even within the new Menlyn Maine development, planners are expecting to convert some of the residential accommodation being offered in the first phase to offices when demand picks up again. Less exclusive nodes of development (or new mini-cities) are in the works near Orange Farm south of Johannesburg (Savannah) and around the capital city of Tshwane. Tshwane’s West Capital Project will be a mixeduse development comprising retail outlets, health facilities, residential accommodation (including a student village) and commercial premises. The African Gateway project is planned for an 80ha site near to the Centurion Gautrain station that will be tied in with designs for the government and Tshwane International Convention Centre precincts. Corridors Much of the development referred to above is taking place in terms of a broader framework of development. Johannesburg’s Freedom Corridors are designed to guide future development and break down the spatial framework that apartheid created. Central to the concept is the availability of public transport which will allow residents easy access to other parts of the city including public spaces and retail or entertainment nodes. The Wynberg-Alex-Marlboro corridor is earmarked for high-density residential development which will create markets for small businesses and tourism. Another corridor, the Orange Grove- Bramley-Waverley-Highlands North-Kew corridor, already has a large number of small businesses and automotive repair and trade shops so the plan is GAUTENG BUSINESS 2017/18 22

SPECIAL FEATURE to build on that to develop the existing strengths of the area. The efficient and popular Gautrain is proving a magnet for development, with a number of property developers targeting Gautrain stations as the site for projects. The busiest stations are experiencing daily visits of up to 60 000 commuters and on popular lines at busy times it is standing room only. More wagons are on order and line expansions are under consideration. One estimate puts the number of annual work days saved for regular commuters at 3.5-million. The Bus Rapid Transport system (Rea Vaya) has the potential to be a similar catalyst but the system is not expanding as fast as developers would like. Plans for the creation of an “aerotropolis” in the Ekurhuleni Metropolitan Municipality based on OR Tambo International Airport have long been in the works and the broad outlines of the plan are well known. In response, private developers have been buying up land along key routes such as the R21 highway. Infrastructure The Provincial Government of Gauteng spent R30- billion on infrastructure between 2013 and 2016. A further R46-billion has been pledged for the three three years to 2019. In addition, Gauteng municipalities will spend R94-billion over the next five years using their city budgets. A study carried out by KMPG for the province found that spending on infrastructure resulted in additional economic activity worth R26-billion in the province and created 92 000 direct jobs. The following priorities have been identified: • public transport • broadband and free Wifi • water and sanitation • mega human settlements • new industrial nodes. The Johannesburg Roads Agency (JRA) will spend R19-million on fixing the city’s bridges, mostly by replacing bridge expansion joints, as part of its overall mandate of maintaining and building roads for the city. Speaking at the Infrastructure Funding Summit in May 2017, Gauteng Premier David Makhura said that the Gauteng Infrastructure Master Plan put the figure of R1.8-trillion to the province’s infrastructure needs over a 15-year period. Makhura hoped that the private sector would come on board to help “reshape the spatial economy of the Gauteng City Region”. MAJOR ROUTE OVERHAUL Gauteng’s busy highways are in need of constant work as part of the vital infrastructure that supports the country’s most important economic hub. Complex designs are the order of the day for the rehabilitation of a section of the R511 highway, a major route from Midrand towards the North West province. It also serves as a collector/distributor for the rural areas and towns along the route. The 18-month, R150- million project attracted several prospective contractors who will work together with the company appointed to design the upgrade, Zimile Consulting Engineers. The project has attracted contractors of CIDB level 9CEPE due to the complexity of its nature. This project is one of the biggest projects Zimile has successfully designed. Work includes constructing crushed stone bases and lower sub-bases, importing upper sub-bases and sealing with asphalt. Rip and re-compact existing G7 subgrade to 150mm. If the engineer is not satisfied with the material, then the layer will be constructed of G6 from commercial sources. Edge beams must be constructed and all road signs and markings must be reinstated and guardrails have to be replaced, realigned or repaired. The road reserve and drainage structures must be cleaned, reinstated and repaired. The contract was issued by the Gauteng Department of Roads and Transport. 23 GAUTENG BUSINESS 2017/18

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