Gauteng Business 2019-20 edition

Gauteng

Gauteng Growth and Development Agency The Gauteng IDZ launches the world’s second-largest refrigeration plant. The world’s second-largest refrigeration plant and the biggest food processing operation in the southern hemisphere was launched on 5 April 2019 at the OR Tambo Special Economic Zone (SEZ). Among the dignitaries in attendance were Premier of Gauteng David Makhura, the DG of the Department of Trade and Industry (the dti) Mr Lionel October, as well as the CEO of Woolworths South Africa Ms Zyda Rylands. Speaking at the launch event, Rylands said, “I am very proud to be opening this worldclass food production facility. In2food has been a Woolies Food partner for more than 28 years and this project was a natural extension of that relationship, with the shared goals of driving innovation and job creation.” In2Foods Group’s choice of establishing its state-of-the-art factory in the OR Tambo SEZ has demonstrated that the government of Gauteng has investor-friendly policies and systems to ensure that public private partnerships (PPP) can deliver the type of value that is required by foreign direct investment initiatives. The project has a total development value of R381-million, from In2Foods, the dti and the Gauteng Provincial Government, the latter who have entered into a long-term lease on the land with the Airports Company of South Africa. This investment will stimulate real economic growth in Gauteng, creating over 600 direct jobs and sustaining a further 5 000 jobs throughout the agricultural value chain. The dti played a major role in providing funding for the project. The prime location of the OR Tambo Special Economic Zone (SEZ), adjacent to the OR Tambo International Airport, places In2Foods Group at the heart of Africa’s best transport and logistics hub. Through its designated SEZ, the Gauteng IDZ Development Company has access to significant investment incentives packaged at national government for investors and companies located in an SEZ. In2Food’s new plant has been developed to the quality specifications of Woolworths, which it has been supplying food products to for 28 years. In2Food will also be exporting its products to other markets such as the UK. The GGDA, through its subsidiary, Gauteng IDZ Company, has made significant strides in attracting investments to the OR Tambo SEZ, primarily focused in the aviation, agrofood processing, jewellery, electronics and pharmaceutical industries. Skills development initiatives have been introduced to allow for broad participation by individuals and communities to take advantage of investment growth in the OR Tambo SEZ. “In the last five years, the province of Gauteng attracted foreign direct investments to the tune of R199-billion and created more than 30 000 jobs,” said Gauteng Premier David Makhura during his 2019 budget speech.

Food factory The In2Food Group factory is 22 708m² in size and is located on 3.5ha of land located on the northern precinct of the OR Tambo International Airport Special Economic Zone. Following a tour of the factory which dignitaries and guests were treated to, Gauteng Premier David Makhura remarked: “I am truly fascinated by what it takes to put food together for Woolworths Food, indeed we are proud of In2Food and the important role you continue to play in job creation and economic empowerment within South Africa’s borders.” The In2food factory will also be the first registered level five eco-friendly industrial site in South Africa, as rated by the Green Building Council of South Africa. The site includes sustainable waste management processes, four boreholes, water recycling and storage, and 8 000m² of solar panels which produce 25% of the facility’s energy requirements. Natural gas is used to run boilers, staff kitchens, ablution facilities and geysers. The Special Economic Zone was established to support industrial development in the Gauteng Province with a specific focus on export-oriented, value-added industry, concentrated around OR Tambo International Airport, in Ekurhuleni. Gauteng was awarded a permit to develop the Industrial Development (Special Economic) Zone at OR Tambo International Airport in 2010. The SEZ is part of the Ekurhuleni OR Tambo Aerotropolis, with a high development concentration. The industrial development zone offers ease of access to Africa’s consumers through its connectivity capabilities. The OR Tambo SEZ is located in or within close proximity to OR Tambo International Airport, with high levels of security to accommodate high-value inputs. A total of 82% of South Africa’s air cargo is transported through OR Tambo International Airport. Investors in the SEZ will, among others, enjoy the following benefits: • Reduced corporate tax from 28% to 15% • Zero rating of VAT for goods purchased for value addition in the zone • Customs duty exemption for raw materials or equipment used for production in the SEZ • Employment tax incentive for investors operating in the zone • Exemption from Value Added Tax for goods produced in the zone for export. About the GGDA The GGDA Group aims to create an enabling environment for growth-targeted investment facilitation, strategic infrastructure development and social transformation, thus positioning Gauteng as a leading Global City Region. The Gauteng province offers solid investment opportunities with many competitive advantages: • It is a gateway to Africa and the world, with a considerable number of global companies • Diversity of economic sectors • Leading universities and research institutions • A talented workforce (ranked 2nd in Africa by WEF Competitiveness Index) • Infrastructure • Diplomatic missions • Democratic governance • It is home to a quarter of South Africa’s population and generates 35% of the country’s GDP • It has a global cost advantage when compared with peers in terms of cost of land, cost of labour and the exchange rate. GGDA subsidiaries Automotive Industry Development Centre, The Innovation Hub, Gauteng Industrial Development Zone, Constitutional Hill Development Company and Invest SA Gauteng. Contact details Tebogo Mohajane, Marketing Manager Tel: +27 11 085 2473 Email: tebogom@ggda.co.za Website: www.ggda.co.za