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Gauteng Business 2017-18 edition

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  • 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.

OVERVIEW Automotive and

OVERVIEW Automotive and components The South African Auto Master Plan has been unveiled. In the context of policy uncertainty in some areas of the South African economy, and in the year of elections to the top positions within the country’s ruling party, it was significant that a South African Auto Master Plan was announced in early July 2017, just a few days after the policy congress of the African National Congress. The Department of Trade and Industry, working together with the National Association of Automobile Manufacturers of South Africa, set targets for 2035 to increase production to 1% of world volumes (which would mean 1.4-million more vehicles made in SA), increasing local content and doubling employment and black-owned businesses in the sector. Some of the world’s largest motor vehicle brands (including BMW, Ford, Nissan and Tata) have manufacturing facilities in Gauteng. The province is also home to a thriving automotive components industry, together with several bus and truck assembly plants. These include Scania, TFM Industries and MAN Truck and Bus South Africa, as well as the Chinese truck manufacturer FAW, which owns an assembly plant in Isando. Bejing Automotive Works (BAW) assembles taxis at Springs and has committed (with its partners) to a new investment of R250-million. BMW is spending R6-billion on its facility at Rosslyn to gear up to produce the X3. It already has a high reputation as a maker of the 3 Series. The Ford Motor Company of South Africa started producing the Everest SUV at Silverton in 2016. The Nissan/Renault plant at Rosslyn, Pretoria, produces the Renault Sondero hatchback, Nissan light commercial vehicles and the Tiida and Livina models. UD Trucks, a part of the Volvo group, announced in 2017 that they will assemble the CONTACT INFO Automotive Industry Development Centre: www.aidc.co.za Automotive Industry Export Council: www.aiec.co.za Automotive Supplier Park: www.supplierpark.co.za National Association of Automobile Manufacturers of South Africa: www.naamsa.co.za National Association of Automotive Component and Allied Manufacturers: www.naacam.co.za SECTOR INSIGHT UD Trucks will assemble the Croner heavy vehicle in Rosslyn. Croner heavy commercial vehicle at Rosslyn. Armoured cars are also produced in Gauteng. DCD Protected Mobility manufactures armoured cars in Boksburg, which are branded as Vehicle Mounted Mine Detectors. In nearby Benoni, BAE Systems OMC designs and manufactures protected vehicles. The Automotive Industry Development Centre (AIDC), the City of Tshwane (CoT) and Tshwane Economic Development Agency (TEDA) are collaborating on a strategic project to boost the sector with a focus on infrastructure. Incentives are available to firms and investors within the automotive industry. The national Department of Trade and Industry’s Automotive Investment Scheme (AIS) offers from 20-30% in non-taxable grants to qualifying investments. Such incentives are a key factor in encouraging firms within the automotive industry to upgrade or expand their facilities. GAUTENG BUSINESS 2017/18 50

Food and beverages Gauteng’s big market is attractive to producers. OVERVIEW More than half of the companies operating in the food and beverage sector in South Africa are located in Gauteng, including Nestlé, Tiger Brands, Pioneer Foods, RCL, AVI and Astral. There are approximately 4 000 food-processing companies in the province, employing more than 100 000 people. The food and beverage sector experienced 18% growth from 1996 to 2013. Nestlé operates four manufacturing plants in the province and has invested heavily in increasing production volumes over the last three years. Tiger Brands runs six plants in Germiston that produce a range of meat products, and the establishment of a new tomato sauce plant and pasta plant rank among the company’s recent investments in the province. McCain Foods, located in Springs, produces frozen vegetables for the Gauteng market. Although the South African poultry business as a whole has taken a knock because of the relaxation of import duties, the South African consumer still eats a lot of chicken. Earlybird Farm, one of Astral’s operations, processes 800 tons of chicken per day at its two factories in Olifantsfontein. RCL operates 18 farms and two feed mills in Gauteng alone. Daybreak Farms, an AFGRI operation, is located in Springs and produces about 650 000 broilers every week. Several beverages in AVI’s portfolio (including Ciro) are produced at the group’s Kempton Park facilities. The South African beer market is growing by 1.5% per year. Three of the seven breweries operated by SAB in South Africa are in Gauteng. AB Inbev, SAB’s new owner, will spend R2.8-billion on new facilities in South Africa and recycling plants in Gauteng. Amalgamated Beverage Industries, a subsidiary of SAB, has plants in Midrand, Devland and Pretoria. CONTACT INFO Food Advisory Consumer Services: www.foodfacts.org.za National Agricultural Marketing Council: www.namc.co.za FoodBev SETA: www.foodbev.co.za South African Association for Food Science and Technology: www.saafost.org.za SECTOR INSIGHT Heineken is expanding its brewery. Heineken’s fairly new brewery at Sedibeng is already undergoing expansion, with cider production set to increase. 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). Investment opportunities in this sector include: production of ground-nuts, sunflowers, cotton and sorghum; soya beans, rooibos, beverages, fruit and vegetables; essential oil extraction from herbs and indigenous plants; expanding the “exotic” meat (kudu, ostrich and springbok) market, locally and globally; packaging of agri-processed goods; the Green Hub in the West Rand District Municipality will promote the growth of sustainable, green industries; research and development of organic food production, health foods and natural remedies; and small business opportunities within the brewing industry. 51 GAUTENG BUSINESS 2017/18

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