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Gauteng Business 2018-19 edition

  • Text
  • Africa
  • Overview
  • Development
  • Services
  • Ict
  • Aerotropolis
  • Sandton
  • Zone
  • Bank
  • Nedbank
  • Financial
  • Sectors
  • Africa
  • Investment
  • Business
  • Gauteng
  • Johannesburg
  • Mining
  • Provincial
  • Banking
A unique guide to business and investment in the Gauteng Province of South Africa. The 2018/19 edition of Gauteng Business is the 10th issue of this highly successful publication that has established itself as the premier business and investment guide for the Gauteng Province. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on the concept of the Urban Development Zone which underpins the successful urban growth strategy that is being pursued in the province, and on the importance of airports in regional economic thinking. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.globalafricanetwork.com under e-books. Updated information on Gauteng is also available through our monthly e-newsletter, which you can subscribe to online, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title.

SPECIAL FEATURE

SPECIAL FEATURE Aerotropolis O.R. Tambo International Airport can spark new growth. The biggest airport in Africa is O.R. Tambo International Airport. It is a regional hub that plays a vital role in tourism, logistics and trade. The economic impact of the airport is clear, but there are plans to further leverage the advantages that the facility brings to the region. Key to this strategy is the development of an aerotropolis, where the airport becomes a hub of economic activity in the same way that cities anchor various economic sectors that grow up around the centre. Shopping, trading and entertainment are now accepted parts of the airport experience for the traveller, and these and other sectors are increasingly being expanded to the zone around the airport. As part of its drive to establish the aerotropolis, the City of Ekurhuleni hosted Airport Cities: World Conference and Exhibition in 2013. This was followed by a GAUTENG BUSINESS 2018/19 22

SPECIAL FEATURE series of conferences and workshops that culminated in the creation of an Aerotropolis Master Plan. In June 2016, the Gauteng City Region Economic Indaba was attended by all the mayors of the region and the national Minister of Finance. Gauteng Premier David Makhura gave notice of “how we can unlock, jump-start and re-ignite a sustainable and inclusive growth trajectory for key sectors of our provincial economy”. Opportunities for the private sector were mentioned in connection with several aspects of the City Region Indaba, including the necessity for infrastructure investment. It is instructive to look at how many logistics-related developments are mentioned in relation to the various corridors for development that have been identified. The corridors and focus areas are: • Thami Mnyele: transport, BRT, M&T Development and Plumbago Industrial Park • OR Tambo Aerotropolis: creative sector, technology, research and development and logistics • Thelle Mogoerane: logistics, Carnival Junction, OR Tambo inland port, Prasa rolling stock manufacturing facility run by Gibela Rail Consortium which will deliver 600 trains valued at R51-billion. The Tambo Springs inland port and logistics gateway has been established near Katlehong as an inter-modal facility which can transfer containers from rail or road to storage facilities and ultimately to the customer. Existing freight rail lines run through the site and link it to the seaports of Durban, Cape Town and Ngqura (Port Elizabeth). The aim with this new facility is to improve efficiency. It is run by the Tambo Springs Development Company. The intention is to add to the port: • a logistics park (transportation, processing, manufacture, warehousing and distribution) • a business park with a retail element • a residential component • an agri-industrial section. A June 2017 investment conference put the spotlight on Ekurhuleni’s economy which currently is primarily driven by manufacturing, mining and agriculture. With a strategic location and identified aerotropolis corridors, investment in the following sectors is anticipated: manufacturing, aviation and aerospace, transportation and logistics. At a Manufacturing Indaba in June 2017, mayoral committee member Councillor Nkosindiphile Xhakaza told the delegates that the Aerotropolis Masterplan “is our development strategy for building Ekurhuleni as an airport city that is a gateway to Africa and the world”. He said that the aim was to place Ekurhuleni as a strategic logistics centre for the national economy, “especially in providing beneficiation, storage and transportation of industrial products to external markets”. Ekurhuleni is hoping not only to be the national centre for logistics and to boost its already impressive manufacturing capacity by building more infrastructure and freight hubs, but it intends the aerotropolis to play a role in helping to consolidate the integration of the nine town councils that went into making up the metropole. Incentives Logistics is obviously a major part of the equation and facilities such as the Tambo Springs inland port will add capacity to the region. However, using closeness to the airport as a factor in driving down costs can also be a way of promoting manufacturing. When this factor is supported by national, provincial and local government incentives, the business proposition for investors becomes very attractive. The OR Tambo Industrial Development Zone is one of several sites allocated by the South African government to stimulate investment in targeted sectors. The OR Tambo IDZ supports the development of businesses that work in the beneficiation of precious metals and minerals sector, with a focus on light, high-margin manufacturing of South African precious and semi-precious metals. Export is encouraged. The site has specific precincts in which various sectors are given priority. 23 GAUTENG BUSINESS 2018/19

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