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 ICT Financial
OVERVIEW ICT Financial institutions are investing in ICT. Gauteng is a leader in the ICT sector. With several global companies choosing to station their South African headquarters in Gauteng, the province is well connected. Spending on ICT in South Africa is expected to reach R266-billion in 2017, according to market analyst Gartner, quoted in ITWeb. Software spending is driving growth. Among the biggest spenders on ICT are banks and other financial institutions. The Big Four banks spent R30-billion in the year to June 2016, with Standard Bank laying out R14-billion in that period (Tech Central). The new mayor of Johannesburg, Herman Mashaba, recently announced that, “We will be aggressively expanding the rollout of our free Wifi network across the city.” The City of Tshwane’s free service TshWi-Fi is available in 780 zones such as libraries, educational institutions, clinics and libraries. Premier David Makhura announced in 2017 that more than 1 500km of network fibre has been rolled out in Gauteng since 2014. A total of 3 000 access sites should be connected by 2020. The Small Enterprise Development Agency (Seda) runs the SoftstartBTI ICT incubator in Midrand and Tuksnovation, a high-tech incubator, at Pretoria University. Seda is an agency of the National Department of Small Business Development, and gives non-financial support to entrepreneurs. The National Electronic Media Institute of South Africa (NEMISA) was originally created to create skills for the broadcasting environment, but it is now being integrated with eSkills Network and the Institute for Satellite and Software Applications (ISSA) to form Ikamva National e-Skills Institute (iNeSI). The focus is on developing e-skills capacity in South Africa by creating partnerships that guide e-skills initiatives. The head office is in Johannesburg. CONTACT INFO Department of Trade and Industry: www.dti.gov.za Technology Innovation Agency: www.tia.org.za Ikamva National e-Skills Institute: www.enesi.org.za Independent Communications Authority: www.icasa.org.za State Information Technology Agency: www.sita.co.za SECTOR INSIGHT Johannesburg and Tshwane have free Wifi zones. The Universal Service and Access Agency of South Africa (USAASA) is providing connectivity for schools in five provinces, and smart devices have been distributed to schools. A number of incentives relevant to companies and educational bodies in the ICT sector are available from the Department of Trade and Industry (dti). These include: • The Technology and Human Resources for Industry Programme (THRIP): companies and educational institutions working to improve technology; 50/50 cost sharing grant to a maximum of R8-million • Technology Development Fund: the Technology Innovation Agency makes up to R50-million available for up to 10 years • Technology Venture Capital: managed by the Industrial Development Corporation; commercialisation of innovative products, processes and technologies. GAUTENG BUSINESS 2017/18 62
Banking and financial services Newcomers are challenging the established players. OVERVIEW SECTOR INSIGHT Three new banks and three new stock exchanges will offer more choice. • Gap insurance is an innovative new product. Stock exchanges Gauteng is the heart of South Africa’s banking and financial services industry. Africa’s largest stock exchange and the head offices of many banks and investment houses are located in Gauteng. The financial-services industry contributes 21% to the province’s gross domestic product. So large are the operations of Gauteng’s banks that some of them have campuses in downtown Johannesburg, rather than offices. As they grow bigger still they are building in Sandton and beyond. Standard Bank recently completed a R2.5-billion office complex in Sandton and Discovery’s international headquarters in the same suburb is said to be the continent’s biggest single-phase office development. South Africa is an ideal stepping stone into Africa and several international concerns have head offices in Johannesburg. These include Bank of China, Bank of Taiwan, Citibank, Deutsche Bank AG and HSBC Bank. Add to that the Reserve Bank and the JSE, Africa’s largest stock exchange, and one has a sense of the importance of this sector. The JSE is the world’s 19th biggest exchange and nearly 400 companies are listed on the JSE or AltX, the JSE-owned exchange for smaller companies. Other investment options that are available through the JSE are Yield X (interest rate and currency instruments), the South African Futures Exchange (SAFEX) and the Bond Exchange of South Africa (BESA). In 2017 several new exchanges won regulatory approval, with ZAR X winning the nod from the Financial Services Board (FSB) against objections by the established JSE and another new exchange, 4AX. Shortly after winning its court case, ZAR X started trading in Senwesbel, the holding company of one of South Africa’s biggest agricultural trading companies, Senwes. There is no trading in derivatives or high-frequency trading on this exchange. 63 GAUTENG BUSINESS 2017/18
