Builing mega-cities

Building mega-cities

Ambitious construction plans are afoot in Gauteng.

Housing at Fleurhof Ext 2, sponsored by the Madulamoho Housing Association. CREDIT: Gauteng Partnership Fund

The fourth quarter of 2020 and the first half of 2021 must be growth periods for the construction and property sectors – for the simple reason that they barely functioned during the lockdown caused by the global pandemic.

South Africa is fortunate in that it is emerging from the lockdown at the same time as summer days lengthen and the national government is getting down to brass tacks with its long-awaited infrastructure programme. With a dedicated unit within the Presidency, a conference has been held and more than 200 hundred possible projects have been whittled down to 51 projects that have been gazetted.

By 2030 Gauteng will have two huge new cities, socially diverse, digitally connected and ecologically responsible and sustainable. That’s if the Provincial Government of Gauteng brings to fruition its plans for the west (Lanseria to Haartbeespoort Dam) and in the south, where Vaal River City will stretch from Vereeniging to Sasolburg in the Free State.

In the 25 years since South Africa has been a democracy, more than 1.2-million subsidised houses have been built by government in Gauteng. Provincial government has pledged to release 10 000 serviced stands as part of its Rapid Land Release programme and it intends finishing incomplete housing projects in Alexandra, Evaton, Kliptown, Bekkersdal and Winterveldt.

Bodies such as the National Housing Finance Corporation, Indlu and Umastandi (social capital entrepreneurs) are working together with provincial authorities to find ways to formalise and monetise the township market so that sustainable incomes can be generated and affordable housing and rental stock becomes more readily available.

An important concept for developers in Johannesburg is the tax incentive that accompanies the Urban Development Zone (UDZ). The City of Johannesburg and the South African Property Owners Association (SAPOA) have developed a database for all UDZ properties. Information about the owner of the plot, the valuation and zoning rights is available for every stand.

Various “improvement districts” have also been created, for example the RID (Retail Improvement District) where businesses in a designated area pay levies to secure improved cleaning and security services. The Johannesburg City Improvement District Forum shares information among the CIDs. Expenditure by CIDs

collectively on supplementary public space safety, cleaning and maintenance is estimated to be about R61-million annually.

The Gauteng Partnership Fund (GPF) has attracted more than R3.5-billion in private sector funding for affordable housing in the province since 2012. The Brickfields housing and rental development in Newtown was funded by the GPF and implemented by the Johannesburg Housing Company (JHC) as one of the first inner-city rejuvenation projects. JHC is a leader in converting bad buildings to useable rental space.

The Johannesburg Development Agency (JDA) projects range broadly across many areas within the city, and include plans to use transport hubs to improve the lives of residents living in previously neglected areas.

Private developer Indluplace Properties has purchased nine large apartment blocks, taking its total buildings in central Johannesburg CBD, Berea and Hillbrow to 23: 33% of the units are bachelor pads, 22% are two-bedroomed flats. The listed company (its major shareholder is Arrowhead) intends to “aggressively grow its portfolio” of high-yielding properties as it believes the rental market has huge potential. Property developments

Quite what the future of office space will be remains to be seen in the wake of Covid-19. Investment and pension funds are heavily invested in commercial and residential property so this is something that will be closely monitored in the early 2020s.

The hugely successful Sandton model of office and accommodation development is being replicated across the province. Sandton’s 10 000 businesses and 300 000 residents are spoilt for accommodation choices, but city-like developments are springing up in other parts of Gauteng as well.

The newest is Castle Gate Lifestyle Centre, which is being built in Pretoria as the first phase in a multi-use development that will eventually comprise offices, medical facilities, a hotel along with a retail centre and more than 1 000 residential units. The R6-billion project is being undertaken by Atterbury and the Carl Erasmus Trust.

The biggest is Menlyn Maine in the eastern suburbs of Pretoria. Not only is this a huge multi-use project, it also aims to be South Africa’s first “Green Precinct”. Professional services and consulting firm PwC has chosen the Waterfall City estate near Midrand as the site for its R1.5-billion headquarters, housing 3 500 employees with a total of 40 000m² of lettable space. The building is owned by Attacq and developed by Atterbury.

Rosebank’s popularity as an office node continues to grow and Melrose Arch has proved a popular development, but none of this has stopped Sandton continue to expand and it remains first choice as the national base for several large companies. Recent new headquarters have been constructed for Discovery and Sasol.

The trend called “semigration” has been having a downward effect on Gauteng’s residential property prices for some time. Semigration refers to people moving within the country – not quite emigrating – to the Western Cape. Pam Golding Properties CEO Andrew Golding told the Sunday Times in November 2019 that the Cape drought had led to other areas such as the Garden Route and the north coast of KwaZulu-Natal becoming more popular as destinations. ■

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. 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.

03.

FAVOURABLE ACCESS TO GLOBAL MARKETS

04.

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.

05.

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.

06.

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.

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.

07. 08.

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.

YOUNG, EAGER LABOUR FORCE

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.

09. 10.

EXCELLENT QUALITY OF LIFE

SA offers a favourable cost of living, with a diversified cultural, cuisine and sports offering all year round and a world-renowned hospitality sector.

Sectoral strengths of Sectoral strengths of South African provinces South African provinces

SECTORAL STRENGTHS OF SECTORAL STRENGTHS OF A wide variety of investments are available. SOUTH AFRICA’S PROVINCES A wide variety of investments are available. SOUTH AFRICA’S PROVINCES

Mpumalanga:Mpumalanga:

North West: • Mining North West: • Mining Gauteng: • Financial and business services • Information and communications technology • Transport and logistics • Basic iron and steel, steel products • Fabricated metal products • Motor vehicles, parts and accessories • Appliances • Machinery and equipment • Chemical products, pharmaceuticals • Agro-processing Limpopo: • Mining • Fertilisers • Tourism • Agriculture • Agro-processing • Energy, including renewables (solar) • • • • • Gauteng: • Financial and business services • Information and communications technology • Transport and logistics • Basic iron and steel, steel products • Fabricated metal products • Motor vehicles, parts and accessories • Appliances • Machinery and equipment • Chemical products, pharmaceuticals • Agro-processing Limpopo: • Mining • Fertilisers • Tourism • Agriculture • Agro-processing • Energy, including renewables (solar) Mining Tourism Forestry, paper and paper products, wood and wood products Agriculture and agroprocessing Metal products • Mining • Tourism • Forestry, paper and paper products, wood and wood products • Agriculture and agroprocessing • Metal products • • • • • Agriculture and agro-processing Tourism Metal products Machinery and equipment Renewable energy (solar) • Agriculture and agro-processing • Tourism • Metal products • Machinery and equipment • Renewable energy (solar) KwaZulu-Natal: • Transport and logistics • Tourism • Motor vehicles, parts and accessories KwaZulu-Natal: • Transport and logistics • Tourism • Motor vehicles, parts and accessories • Petrochemicals • Petrochemicals • Aluminium • Aluminium • Clothing and textiles • Clothing and textiles • Machinery and equipment • Machinery and equipment Northern Cape: • Mining • Agriculture and agro-processing • Fisheries and aquaculture Northern Cape: • Mining • Agriculture and agro-processing • Fisheries and aquaculture • • Agriculture and agroprocessing Forestry, pulp and paper, wood and wood products • Agriculture and agroprocessing • Forestry, pulp and paper, wood and wood products • Renewable energy (solar, wind) • Renewable energy (solar, wind) • Jewellery manufacturing • Jewellery manufacturing

Western Cape:Western Cape:

• Tourism • Tourism • Financial and business services • Financial and business services • Transport and logistics • Transport and logistics • • • • • • • Free State: • Agriculture and agro-processing • Mining • Petrochemicals • Machinery and equipment • Tourism ICT Agriculture and agro-processing Fisheries and aquaculture Petrochemicals Basic iron and steel Clothing and textiles Renewable energy (solar, wind) Free State: • Agriculture and agro-processing • Mining • Petrochemicals • Machinery and equipment • Tourism • ICT • Agriculture and agro-processing • Fisheries and aquaculture • Petrochemicals • Basic iron and steel • Clothing and textiles • Renewable energy (solar, wind)

Eastern Cape:Eastern Cape:

• Motor vehicles, parts and • Motor vehicles, parts and accessoriesaccessories • Forestry, wood and wood products • Forestry, wood and wood products • Clothing and textiles • Clothing and textiles • Pharmaceuticals • Pharmaceuticals • Leather and leather products • Leather and leather products • Tourism • Tourism • Renewable energy (wind) • Renewable energy (wind)

Source: Industrial Development Corporation (IDC) Source: Industrial Development Corporation (IDC); The Case for Investing in South Africa, Executive Summary (South African Investment Conference, 2018). Source: Industrial Development Corporation (IDC) Source: Industrial Development Corporation (IDC); The Case for Investing in South Africa, Executive Summary (South African Investment Conference, 2018). Source: Industrial Development Corporation (IDC); The Case for Investing in South Africa, Executive Summary (South African Investment Conference, 2018).

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RELATIONSHIPSAND UNDERSTANDINGCLIENT NEEDSAREKEY,SAYSEXPERT

PedroRhode,Nedbank’sProvincialGeneralManagerforGauteng East,explainshowbrandvaluesbuiltonthebank’sexpertisecan benefitNedbankclients,especiallyinwhatisnow‘thenewnormal’.

Ourclient-centredstrategyanddigital innovationenabledustocontinue servingclientsinthecomfortoftheir homesthroughtheCovid-19lockdown.It broughtconveniencetoclientsandhelped themtocomplywithlockdownregulations,' hesays.

Rhodesaysthatforsmall-andmediumsizedbusinessclients,Nedbankcontinuesto deliverend-to-endsolutionsthrougha dedicatedbusinessmanager.‘Our biggerpicturebusinessapproach ensuresthat weareabletotakeaholisticviewofeach businessbyunderstandingthevision, cashflowcycle,andtransactionaland capitalexpenditureneeds.Thisway,we becometrustedadvisorstothebusiness ownerswhostrivetogrowtheirbusiness.’

Smallbusinessesoftenlackformalisation,as shownbymanynotqualifyingforCovid-19 assistanceduetoout-of-daterecordsand notmeetingregulatoryrequirements. RhodesaysthatNedbank’sexpertsare availabletoprovideallthesupportsmall businessesneed,beyondaffordable bankingsolutions.‘Weoffervalue-added servicestogetandkeepyourbusiness going,suchasourfree-to-joinnetworking portal,SimplyBiz.co.za,TheEssentialGuide forSmall-businessOwners,business registrationservicesandfreesmallbusinessseminars.’

Rhodeaddsthatthecurrenteconomic climatehashighlightedlowfinancialliteracy levelsamongSouthAfricanswhofind themselveshighlyindebted.'NedbankRetail Bankinghelpsclientswithdebtconsolidation toeasetheirfinancialdifficulties,and financialliteracyprogrammesandtailormadesolutionstoempowerthemtosave andmakebetterfinancialdecisionsforthe future.'

NedbankRetailBanking helpsclientswithdebt consolidationtoeasetheir financialdifficulties…’ ‘

To takeyourfinancialwellnesstothenext level orformoreinformationaboutNedbank’s specialisedserviceoffering,email PedroRhode at pedror@nedbank.co.za or visit www.nedbank.co.za/business.

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NEDBANKOFFERS SPECIALISTSUPPORT INPOSTCOVID-19 ENVIRONMENT

BrigitteRyder,Nedbank’sProvincial GeneralManagerforGautengNorth, saysthatNedbankbelievesthat clientsneedaflexible,resilientfinancial partnerwhounderstandstheir circumstancesandaspirations,andprovides relevantsolutionsandabankingexperience thatishassle-free.

Rydersaysthat,asSouthAfricaprogresses throughthevariousstagesofCovid-19, Nedbankisworkingthroughrecovery scenarioswithitsclientsandprospective clientswhile stayingtruetoitsbrandpromise, whichis touseitsfinancialexpertisetodo goodforindividuals,families,businessesand communitiesinwhichitoperates.

‘ThroughtheCovid-19pandemic,wehave elevatedourclientengagementand extendedtailor-madereliefassistanceto manyofourclients,equippingandenabling themtobenefitfromthevariousdigitaland remotesolutionsavailable.Thisensures uninterruptedtransactionaland informationalaccesswhilenot compromisingonsecurity,’saysRyder.

RydersaysthatGautengNorthBusiness Bankinghas,overtheyears,established itselfasaleaderinprovidingbanking solutionstovarioussectors.‘Theseinclude theprofessionalservicesindustry,which valuesourbespokefunding,investmentand transactionalsolutions,largemanufacturing concernscoveringvarioussub-sectors,and theinformationtechnologyindustry.Asa result,wehavebeenshieldedfromspecific industryslowdowns,whileaddingtothe financialandbusinessacumenand‘street cred’ofourfrontlinesalesandservicestaff.’

ThroughtheCovid-19 pandemic,wehaveelevated ourclientengagementand extendedtailor-maderelief ‘ assistancetomanyofour clients…’

To findoutmoreabouthowNedbankcan partnerwithyourbusiness togrowa greaterSouthAfrica,pleaseemail BrigitteRyder at brigitter@nedbank.co.za orvisit www.nedbank.co.za/business.

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SOLUTIONSAIMEDAT CREATINGJOBSAND GROWINGTHEECONOMY

Nedbank’sProvincialGeneralManagerforGautengWest, MawandeShugu,explainshowNedbankiscommittedto partneringwithbusinessesandtheyouthforgrowth.

S‘ mallbusinessesarethemainstayof theeconomy.Nedbankhas,overthe years,institutedvariousinterventions aimedatgivingsupporttothesmallbusinesssector.OverandaboveourSmall

BusinessServicessolutions,weprovide small-businessownerswithsupportthat goesbeyondbanking–freeinguptheirtime totrulyfocusonrunningtheirbusinesses,’ hesays.

Nedbankhasbuiltasolidreputationasa bankforsmallbusinessesthroughinitiatives suchasitsfree-to-joinnetworkingportal, SimplyBiz.co.za, TheEssentialGuidefor Small-businessOwners, business registrationservices and freesmallbusinessseminars –allgearedtosupport small-andmedium-sizedenterprises.

Shuguispassionateaboutsupporting SouthAfrica’syouth.‘Ibelieveitisimportant forthebusinesscommunitytoinvestinour youthastheyareourfuture.Investinginthis marketiscrucialforthesustainabilityofany businessandrequiresanextensiveinvestment inagiletechnologicaldevelopment.At Nedbankweprideourselvesindeveloping productsthatprovidelifestylebenefitsand offeringsthatenablethefinancial aspirationsofouryouthmarket.For example,ourUnlock.MeAccountoffersa zeromonthlymaintenancefee,with additionallifestylebenefitsperfectfor clientsbetweentheagesof16and26,’ hesays.

Shugusaysthat,throughanevolvingand agiledigitalstrategysupportedbythe NedbankMoneyappandtheNedbank ContactCentre,Nedbankremains committedtobringingconveniencetoits clientsbymakingessentialbankingservices available24hours,sevendaysaweek.

Ibelieveitisimportantfor thebusinesscommunityto investinouryouthasthey areourfuture…’ ‘

Ifyouwishtotapintoourexpertisetoreach yourpersonalandbusinessgoals,please email MawandeShugu at mawandes@nedbank.co.za orvisit www.nedbank.co.za.

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MONEYEXPERTSSERVING THETSHWANEBUSINESS COMMUNITY

MohammedSalimKadoo,Nedbank’sProvincialGeneralManagerfor TshwaneandNorthWest,saysthatadeepcommitmenttopartnership iswhatunderliestheteam'spersonalandprofessionalvalues.

O‘ urbigger-picturebankingapproach enablesusnotonlytoprovideyou withthebankingsolutionsyouneed, butalsotogiveyouaholisticviewofhow ourproductsareconnectedtocreatea frameworkthatyieldsmaximumimpact acrosseveryfacetofyourbusinessand beyond.Weknowthatsuccessinbusinessis aboutpartnerships,soweputthebuilding ofdeep,lasting,value-addingrelationships atthecentreofeverythingwedo.This meansyourgoalsareourgoals, yourvision isourvision,andyoursuccessisoursuccess –whileyourelyonouradditionalsupport thatismostneededintimesofchangeand uncertainty,’hesays.

Thebankcatersforallindustries,butthe

Tshwaneteamhasmanyclientsinthe franchisingandagriculturalsectors.'The bankingproductsandservicestailored specificallyforthesesectorsanddesigned toachieveoverallbusinessefficiency, profitabilityandsustainabilitymakeNedbank oneofthemostfranchise-friendlybanksin

SouthAfricaandoneofthemarket-leading banksintheagriculturalspace,'saysKadoo.

Nedbank’shighlycompetitivepricingis structuredtotheneedsandindividualrisk …businessefficiency,profitability andsustainabilitymakeNedbank oneofthemostfranchise-friendly banksinSouthAfrica…’ ‘

profileandtrackrecordofeachfranchise business.Productsinclude point-of-sale (POS)devices and Nedbank’sPOSPlus managementsystem,e-commercesolutions andcashacceptancedevices,aswellasa broadspectrumoftailoredfinancingoptions.

Nedbankunderstandsthatifthevarious challengesfacedbytheagriculturalsector arenotaddressed,itwillthreateneconomic growth,foodsecurity,employmentand investment.TothisendNedbankhas developedinnovativefundingsolutions designedtosupportfarmerswithsustainable farminginterventions,rangingfromwater efficiencymechanismsandcutting-edge irrigationtorenewable-energyfinancing.

Ifyouare interestedintakingyour businesstothenextlevel,pleaseemail MohammedSalimKadoo at mohammedk@nedbank.co.za orvisit www.nedbank.co.za/business.