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Gauteng Business 2025

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The 2025 edition of Gauteng Business is the 15th 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 national and provincial policies underpinning Special Economic Zones is included in this edition. SEZs form an important part of the strategy of the Gauteng Growth and Development Agency (GGDA) in promoting sustainable economic growth across the province’s designated development corridors. This edition of Gauteng Business is supported by the GGDA, which is the implementation arm of the Gauteng Department of Economic Development. All of the main economic sectors of the provincial economy are reviewed, ranging from agriculture, transport and logistics, energy and manufacturing through to education and training. A plan to develop a large solar farm in the western reaches of Gauteng is proceeding, with mining company Sibanye-Stillwater having made land available for the project and various contractors having been identified to carry the project forward. In addition, the Provincial Government of Gauteng has revived an inner-city open-cycle-gas turbine and has begun a programme of equipping schools and medical clinics with solar panels. 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 at www.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title and the new addition to our list of titles, The Journal of African Business, which was launched in 2020.

FOCUSPromoting

FOCUSPromoting manufacturingand boosting exportsA vital part of the strategy for Gauteng is to establish, promote and supportSpecial Economic Zones (SEZs)The OR Tambo SEZ at OR Tambo International Airport is at the centre of the aerotropolis in Ekurhuleni.It is intended that each of the province’s fivedevelopment corridors should have an SEZthat draws on the specific strengths of thatregion and promotes growth that will deliveremployment opportunities and access to marketsfor previously excluded citizens.GGDA is introducing SEZs to boostmanufacturing, increase exports and employmentand add momentum towards turning theGauteng City Region (GCR) into a single, multitierintegrated SEZ. A related initiative seeks topromote the growth of agro-parks and industrialparks as a way of boosting township economiesand integrating their economies in the GCR.Automotive Supplier ParkThe Automotive Supplier Park (ASP) is an industrialpark based in Rosslyn in the northern corridor of theGauteng City Region and although it is not classifiedas an SEZ, it shares all the good qualities thatattracts tenants. It is run by the Automotive IndustryDevelopment Centre (AIDC). The ASP is modelledon leading international supplier parks, spans160ha and houses a tenant pool of automotivecomponent manufacturers and suppliers to OriginalEquipment Manufacturers (OEM).OR Tambo Special Economic Zone (ORTSEZ)ORTSEZ was established to support industrialdevelopment in Gauteng with a specific focuson export-oriented, value-added industry,concentrated around OR Tambo InternationalAirport (ORTIA) in Ekurhuleni Metro. The SEZis administered by the Gauteng IndustrialDevelopment Zone (GIDZ). The value propositionof the ORTSEZ is centred around ORTIA, Africa’slargest airport with the capacity to handle 400 000tons of cargo and over 25 regional and internationalflights on a daily basis. With easy access to rail and inheart of South Africa’s industrial and manufacturingengine which is the City of Ekurhuleni, ORTSEZis the perfect value proposition for advancedmanufacturing and beneficiation. The JewelleryManufacturing Precinct is running efficiently andone of the largest food factories in the world hasbeen operating in the zone since 2019, providingGAUTENG BUSINESS 202514PHOTO: Pretoria Travel/Wikimedia Commons

a platform for the increased export of fresh foodproducts. Medical and pharmaceutical clusters arein the process of being established and sectorssuch as metal components and avionics arebeing planned.West RandIn the context of declining mining output, a multisectoraland multi-site West Rand SEZ is planned todiversify the West Rand’s economy.New investment will promote an eco-industrialcluster, develop industrial infrastructure, promotecoordinated planning among key governmentagencies and the private sector and guide thedeployment of development tools to enhanceindustrial acceleration.The sector focus includes bus manufacturing,solar farms, agro-processing, hemp and cannabisprocessing, green hydrogen, biogas (agri-processingwaste), large-scale agricultural and dairy farming andlight-bulb manufacturing.The Lanseria node is one of Gauteng’s mostsignificant regional development opportunities.The Lanseria Smart City is envisioned as a highimpact,compact, complex, mixed-use urbandevelopment. An important aspect is thepotential of an expanded Gautrain bus and railsystem. Apart from promoting a Gautrain Stationat Lanseria Airport (which would link it to Sandtonand OR Tambo International Airport), an additionalstation at the core of the Smart City would drivemixed-use activity. Discussions with the GautrainManagement Agency (GMA) is ongoing.A hi-tech SEZ is envisaged in the GreaterLanseria Area to promote industrial agglomerationand mixed-use development. The Lanseria SmartCity, at the core of the Greater Lanseria Master Plan,responds to the need to absorb the rapid growth ofthe Gauteng City Region. In doing so, it seeks to growa mixed-use activity node around Lanseria Airport,using infrastructural investment and policy supportto drive sustainable urban consolidation in the N14and Malibongwe Drive development corridors.Vaal Special Economic Zone (Vaal SEZ)The Vaal SEZ will be a multi-sector, multi-site SEZ inthe Vaal Region (Sedibeng District). The goal is toregenerate the area, support new economic activityAn expanded Gautrain could boost the West Rand SEZ,Lanseria Airport and the proposed hi-tech SEZ.and build on the historic competitive strengths andskills base of the area. Also to build a socially cohesivesociety with sustained growth that results in thecreation and retention of quality jobs.Targeted sectors include end-to-end hydrogenvalue chain; localisation of manufacturing ofrenewable energy components; agrivoltaics; newenergy vehicles; battery energy storage systems;blue economy; agro-processing (including medicalcannabis); aviation; defence; and logistics.SEZ incentivesA series of incentives have been packaged to supportforeign and domestic direct investment. Most ofthese relate to regulations of the Department ofTrade, Industry and Competition, the dtic.INCENTIVEInfrastructure fundingVAT exemptionDuty-free importsEmployment tax incentiveTax reductionLoansDETAILWith the support of the dtic SEZ fund,designated SEZs can apply for grantfunding from the dtic SEZ Fund forbulk and top structure.For goods produced for export.Raw materials or equipment used inthe zone will not attract duty.All employers operating in an SEZ mayaccess the employment tax incentive.Possible tax reductions for projects+R200-million.Working-capital loans through ametals-financing scheme.Lower corporate tax A lower corporate tax rate of 15%compared to 28% is proposed.PHOTO: GautrainDepreciation allowanceEligible for an accelerated depreciationallowance on capital structures, 10%per annum for 10 years.

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