Welcome to the 10th edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by the website www.southafricanbusiness.co.za. Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provinces. This issue has a focus on Special Economic Zones which are being rolled out across the country with specific economic areas of focus. The importance of the revival of minerals exploration and the significance of onshore and offshore gas discoveries is the subject of another special feature.
SPECIAL FEATURE The
SPECIAL FEATURE The Glencore Magareng Chrome Mine opened in 2011 and is one of the many mines in the vicinity of the Fetakgomo-Tubatse SEZ. Credit: Glencore The Global Eco-Industrial Parks Programme (GEIPP) aims to create eco-industrial parks out of older, dirtier facilities. The first three parks to be targeted are the state-owned parks in East London (ELIDZ) and in the Free State (Phuthaditjhaba Industrial Park) and Gauteng (Ekandustria). The key components of the GEIPP are: • Park management services and governance. • Resource-efficient and cleaner production. • Industrial and infrastructure synergies. • Healthy and integrated workforce and industryurban synergies. • Special planning and zoning. Areas of focus Fairly near to Atlantis is the Saldanha Bay SEZ, where the focus is oil and gas and marine engineering and related activities. As of October 2021, the SEZ had 35% occupancy and has launched a facility to support small, medium and micro-enterprises (SMMEs) in terms of workspace and Internet connectivity. In the Pretoria area, already home to several Original Equipment Manufacturers (OEMs), the Tshwane Automotive Special Economic Zone (TASEZ) has been launched. It is a joint project of the Gauteng Province, the Department of Trade, Industry and Competition, and the City of Tshwane. The implementing agent is the Coega Development Corporation (CDC), the developer and operator of the Coega Special Economic Zone. Coega SEZ is at the Port of Ngqura near Gqeberha (formerly Port Elizabeth) in the Eastern Cape and it too has an automotive component, recently strengthened by the large investment of the Beijing International Automobile Corporation (BIAC). East London’s Industrial Zone has many companies that sell to and service the nearby Mercedes-Benz plant while both coastal SEZs have a strong suite in logistics and are planning expanded aquaculture parks. Energy is a key infrastructural requirement for the growth of any economy, and SEZs are playing a role. The Coega SEZ has been named as the site for one of two liquefied natural gas (LNG) plants to be built (if partners can be found) in terms of the national gas-to-power plan. The Richards Bay Industrial Development Zone (RBIDZ) in KwaZulu-Natal is the other site designated for a LNG plant, with the capacity planned for 2 000MW. RBIDZ is also the location of a new biomass plant. The OR Tambo SEZ in Gauteng underscores Ekurhuleni’s strengths in manufacturing and logistics. The OR Tambo SEZ has launched the biggest food processing operation in the southern hemisphere (and the world’s second-largest refrigeration plant). With a special focus on exportoriented value-added industry, the OR Tambo SEZ leverages its connection to the country’s busiest airport. The focus of this SEZ is on agro-processing, jewellery manufacturing and mineral beneficiation as well as the development of hydrogen fuel cell technology. The SEZ is a subsidiary of the Gauteng Growth and Development Agency (GGDA). ■ SOUTH AFRICAN BUSINESS 2022 18
10 REASONS WHY YOU SHOULD INVEST IN SOUTH AFRICA 01. HOT EMERGING MARKET Growing middle class, affluent consumer base, excellent returns on investment. 02. MOST DIVERSIFIED ECONOMY IN AFRICA South Africa (SA) has the most industrialised economy in Africa. It is the region’s principal manufacturing hub and a leading services destination. LARGEST PRESENCE OF MULTINATIONALS ON THE AFRICAN CONTINENT SA is the location of choice of multinationals in Africa. 03. Global corporates reap the benefits of doing business in SA, which has a supportive and growing ecosystem as a hub for innovation, technology and fintech. 05. FAVOURABLE ACCESS TO GLOBAL MARKETS ADVANCED FINANCIAL SERVICES & BANKING SECTOR SA has a sophisticated banking sector with a major footprint in Africa. It is the continent’s financial hub, with the JSE being Africa’s largest stock exchange by market capitalisation. The African Continental Free Trade Area will boost intra-African trade and create a market of over one billion people and a combined gross domestic product (GDP) of USD2.2-trillion that will unlock industrial development. SA has several trade agreements in place as an export platform into global markets. YOUNG, EAGER LABOUR FORCE 09. SA has a number of world-class universities and colleges producing a skilled, talented and capable workforce. It boasts a diversified skills set, emerging talent, a large pool of prospective workers and government support for training and skills development. 07. 04. 06. 08. PROGRESSIVE CONSTITUTION & INDEPENDENT JUDICIARY SA has a progressive Constitution and an independent judiciary. The country has a mature and accessible legal system, providing certainty and respect for the rule of law. It is ranked number one in Africa for the protection of investments and minority investors. ABUNDANT NATURAL RESOURCES SA is endowed with an abundance of natural resources. It is the leading producer of platinum-group metals (PGMs) globally. Numerous listed mining companies operate in SA, which also has world-renowned underground mining expertise. WORLD-CLASS INFRASTRUCTURE AND LOGISTICS A massive governmental investment programme in infrastructure development has been under way for several years. SA has the largest air, ports and logistics networks in Africa, and is ranked number one in Africa in the World Bank’s Logistics Performance Index. 10. SA offers a favourable cost of living, with a diversified cultural, cuisine and sports offering all year round and a world-renowned hospitality sector. EXCELLENT QUALITY OF LIFE Page | 2 19 SOUTH AFRICAN BUSINESS 2020
