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Gauteng Business 2022/23

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The 2022/23 edition of Gauteng Business is the 13th 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, a special feature on the growth and significance of the green economy is included in this edition. Every sector from agriculture to transport and logistics is referenced, with several Gauteng companies taking the lead in the field of creating a more sustainable future for themselves and for their clients. The fact that mining companies and others are starting to build facilities to generate power is significant for the country as a whole. Gold Fields’ 40MW solar project at its South Deep mine is one of the first of its kind and it is certainly a precursor of what we can expect to see a lot more of in the future. The unexpected fall from power in the province’s three big metropolitan municipalities in 2021 of the political party that is in charge at provincial and national level, the African National Congress, is noted in the Regional Overview. Whether this presages a change beyond the borders of Gauteng in elections to come remains to be seen, but the huge budgets which now fall under the control of coalition governments in Johannesburg, Tshwane and Ekurhuleni will certainly serve to sharpen the focus of ANC election planners for national elections in 2024.


A REGIONAL OVERVIEW OF GAUTENG The diamond mine at Cullinan is renowned as a source of large, high-quality gem diamonds, including Type II stones, as well as being the world’s most important source of very rare blue diamonds. Credit: Petra Diamonds All of Gauteng’s metropolitan municipalities came under coalition governments after the local elections held in 2021. Voters are indicating they are fed up with corruption. It is at municipal level that citizens and businesses feel the effects of inefficiency and corruption and it is that sphere of government that needs the most work in the short term. By John Young The municipal elections held in South Africa in 2021 resulted in councillors in 66 municipalities having to form coalitions to create majorities. Among these were Gauteng’s three metropolitan municipalities, Johannesburg, Tshwane and Ekurhuleni. These three cities represent, respectively, the economic centre of the national economy, the seat of the executive government and the manufacturing hub of the country. South Africa’s governing party, the African National Congress (ANC), the party of Nelson Mandela and the struggle for freedom from apartheid, recorded a vastly reduced vote count across the country. In the three Gauteng metros, the opposition Democratic Alliance was able to cobble together coalitions with five other parties to take over the mayoralties. These will not be stable coalitions – some of the ideological differences are big – but they have certainly put the ANC on notice that it can’t take things for granted in the run-up to national elections, which are due in 2024. If this strengthens the hand of the group within the ANC that wants to root out corruption, surely a big reason for the party losing support, then the country and the province will benefit. The country’s biggest opposition party, the Democratic Alliance, controls both the biggest metropolitan municipality and the provincial government in the Western Cape but the ANC still has a solid majority in the Gauteng provincial legislature. Various levels of government have departments called “Cooperative Governance”: with different parties in power at municipal and provincial level, that concept will be brought into play and the maturity of the political leaders will be tested. GAUTENG BUSINESS 2022 8

SPECIAL FEATURE Premier David Makhura has outlined the plans of the provincial government: “The development of single multi-tier Special Economic Zones (SEZ) is the primary anchor of our industrialisation agenda. It is our goal to have to have at least one zone in each district or metro, specialising in distinct sectors and industries in each corridor.” The National Department of Trade, Industry and Competition (dtic) is the lead agent in the creation of SEZs, which are part of the national Industrial Policy Action Plan (IPAP). SEZs are designed to attract investment, create jobs and boost exports. About R3-billion has been invested in bulk infrastructure for the Tshwane Automotive SEZ with another R300-million to come on top of R4.3-billion from automotive suppliers and R15.8- billion from Ford Motor Company. The OR Tambo International Airport Industrial Development Zone (IDZ) opened in 2019 is focussed on jewellery manufacturing and agroprocessing. The IDZ’s four zones have attracted R1.5-billion in investments and the zone’s development is ongoing with other schemes such as the midfield cargo terminal and the development of the western commercial precinct. One of the plans to boost Gauteng, “Growing Gauteng Together” (GGT 2030), prioritises the economy, jobs and infrastructure, with the manufacturing sector earmarked as a key driver. Manufacturing strength Gauteng accounts for 45% of South Africa’s manufacturing capacity, so the province is wellplaced to expand an already strong and diverse sector. Manufacturing makes up 14.5% of formal sector output in Gauteng, making it the fourth-largest sector. One in nine jobs in the province are created in the sector. According to the Gauteng Growth Development Agency (GGDA), six out of 10 foreign direct investment (FDI) projects in Gauteng have flowed to the manufacturing sector and its subsectors. In the five years to 2019, the Gauteng-City-Region attracted 447 FDI projects valued at R264-billion, which created more than 69 000 jobs (FDI Markets). The GGDA is an implementing agency which aims to facilitate business enablement, develop small, medium and micro enterprises (SMMEs) and to promote investment and job creation. Focussed support for these specific subsectors is intended to spur other investments: automotive sector, mineral beneficiation, capital equipment, agro-processing, pharmaceuticals and tertiary services such as BPO, ITC services, tourism and the knowledge economy. GGDA subsidiaries include The Innovation Hub (technology), the Automotive Industry Development Centre (AIDC), which manages the Automotive Supplier Park (ASP) and InvestSA Gauteng (red tape remover for investors). The Johannesburg Development Agency (JDA) plays a similar role as the City of Johannesburg’s development agency. JDA’s focus is on helping create resilient, sustainable and liveable urban areas in identified transit nodes and corridors. In 15 years, 387 projects have been implemented. The Provincial Government of Gauteng has identified 10 “high-growth” sectors where it intends concentrating its efforts to build infrastructure and attract public and private sector investment: • Energy: new technologies and a diverse energy mix • Transportation and logistics • ICT, media and digital services • Tourism and hospitality • Agricultural value chain • Construction and infrastructure • Automotive, aerospace and defence • Financial services • Cultural and creative industries • Industrialisation of cannabis These priorities were announced before the onset of the Covid-19 global pandemic, so obviously there will be some major adjustments, Tshwane House, the seat of municipal government and the council chamber. Credit: City of Tshwane 9 GAUTENG BUSINESS 2022

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