Gauteng Business 2022 by Global Africa Network Media

2022 EDITION

GAUTENG BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN THE GAUTENG PROVINCE

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CONTENTS Gauteng Business 2022 Edition

Introduction Regional overview

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.

Going green

Dozens of Gauteng companies in multiple sectors are exploring ways to make their buildings more efficient, their processes less wasteful and their impact less harmful to the environment.

Economic sectors Agriculture

Mining

Energy

Oil and gas

Transport and logistics

Manufacturing

Tourism

Construction and property

Workspaces are available for makers in wood.

ICT

References

Banking and financial services

Hydroponic farms on rooftops are growing. Tailings are proving lucrative in Gauteng. Hydrogen fuel cells are attracting interest.

An international investor is supporting a new LPG cylinder plant.

Roads and infrastructure spending is set to increase across the province. Corobrik’s new factory started producing product in 2021. Airlink has teamed up with successful international carriers. Logistics is a growth sector for property companies. Data centres are expanding and new ones are being built. One of Johannesburg’s stock exchanges has moved. GAUTENG BUSINESS 2022

Education and training

Tshwane University of Technology now offers asset maintenance.

Development finance and SMME support 44

Key sector contents

Overviews of the main economic sectors of Gauteng.

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FOREWORD

Gauteng Business A unique guide to business and investment in Gauteng.

Credits Publishing director: Chris Whales Editor: John Young Business development manager: Shiko Diala Managing director: Clive During Online editor: Christoff Scholtz Designer: Tyra Martin Production: Aneeqah Solomon Ad sales: Gavin van der Merwe Sam Oliver Jeremy Petersen Gabriel Venter Vanessa Wallace Tahlia Wyngaard Administration & accounts: Charlene Steynberg Kathy Wootton Distribution and circulation manager: Edward MacDonald Printing: FA Print

he 2022 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, 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, African Business, which was launched in 2020. ■

Chris Whales Publisher, Global Africa Network Media | Email: chris@gan.co.za

DISTRIBUTION

Gauteng Business is distributed internationally on outgoing and incoming trade missions, through trade and investment agencies; to foreign offices in South Africa’s main trading partners around the world; at top national and international events; through the offices of foreign representatives in South Africa; as well as nationally and regionally via chambers of commerce, tourism offices, airport lounges, provincial government departments, municipalities and companies. Member of the Audit Bureau of Circulations COPYRIGHT | Gauteng Business is an independent publication published by Global Africa Network Media (Pty) Ltd. Full copyright to the publication vests with Global Africa Network Media (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network Media (Pty) Ltd. PHOTO CREDITS | Airlink; BHIT; City of Tshwane; Corobrik; DHL Global Forwarding; Ford Motor Company of Southern Africa; Fortress REIT; Futurecon; Goldfields; Harmony; JSE; Minerals Council SA; Nissan Group of

PUBLISHED BY Global Africa Network Media (Pty) Ltd Company Registration No: 2004/004982/07 Directors: Clive During, Chris Whales Physical address: 28 Main Road, Rondebosch 7700 Postal address: PO Box 292, Newlands 7701 Tel: +27 21 657 6200 | Fax: +27 21 674 6943 Email: info@gan.co.za | Website: www.gan.co.za ISSN 1990-0621 Africa; PAMSA; Pernod Ricard; Petra Diamonds; Steyn City; Teraco; Tshwane University of Technology; Waterfall City; Wouldn’t It Be Cool (WIBC). DISCLAIMER | While the publisher, Global Africa Network Media (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in Gauteng Business is accurate and up-to-date, the publishers make no representations as to the accuracy, quality, timeliness, or completeness of the information. Global Africa Network will not accept responsibility for any loss or damage suffered as a result of the use of or any reliance placed on such information.

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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

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.

he 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 – GAUTENG BUSINESS 2022

SPECIAL FEATURE 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

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 R15.8billion 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)

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

GAUTENG BUSINESS 2022

SPECIAL FEATURE especially with regard to tourism and hospitality which has suffered major setbacks during the local and international lockdowns. Overview of the province Gauteng is South Africa’s smallest province in terms of landmass but in every other respect it is a giant. The province is the nation’s key economic growth engine. At 18 176km², the province makes up just 1.5% of South Africa’s territory. The 14.3-million people living in Gauteng in 2017 generated a gross domestic product of R1.59-trillion, about a third of South Africa’s GDP. Gauteng recorded the highest provincial growth rate in 2019. The 0.6% rise was mainly driven by finance, real estate and business services, which is the dominant industry (StatsSA). Gauteng shares borders with four provinces, the Free State, North West, Limpopo and Mpumalanga. The southern border of the province is the Vaal River and most of the province is located on the Highveld. The Witwatersrand, which runs through Johannesburg, marks the continental divide: rivers running to the north drain into the Indian Ocean, rivers running south drain into the Atlantic Ocean via the Vaal into the Orange River. Gauteng draws its water from a series of interconnected river transfer systems. A major source of water is the Lesotho Water Highlands Project. The Witwatersrand was the source of the gold that drew so many thousands of people to the area in the late 19th century and was the origin of the word for South Africa’s currency, the “rand”. Gauteng is a leader in a wide range of economic sectors: finance, manufacturing, commerce, IT and media among them. The Bureau of Market Research (BMR) has shown that Gauteng accounts for 35% of total household consumption in South Africa. The leading economic sectors are finance, real estate and business, manufacturing, government services and wholesale, retail, motor trade and accommodation. The creative industries (including advertising and the film sector) contribute significantly to the provincial economy. In Johannesburg, financial services and commerce predominate. The JSE, Africa’s largest stock exchange, is in Sandton and several new stock exchanges have recently received licences. GAUTENG BUSINESS 2022

Gauteng Premier David Makhura visited the Rosslyn plant of the Nissan Group of Africa to inspect the protocols that had been put in place to ensure the safety of works during the Covid-19 epidemic. Credit: Nissan Tshwane (which includes Pretoria) is home to many government services and is the base of the automotive industry and many research institutions. The Ekurhuleni metropole has the largest concentration of manufacturing concerns, ranging from heavy to light industry, in the country. The western part of the province is concerned mainly with mining and agriculture, while the south has a combination of maize farming, tobacco production and the heavy industrial work associated with steel and iron-ore workings. Individually, the biggest Gauteng cities contribute to the national GDP as follows: Johannesburg (15%), Tshwane (9%) and Ekurhuleni (7%). Gauteng is not just an important centre of economic activity, it is also an important launching pad for local and international businesses to enter the African market. The country’s biggest airport, OR Tambo International Airport, is at the core of the province’s logistical network. Other airports include Rand Airport (Germiston), Wonderboom (Pretoria), Lanseria and Grand Central (Midrand). The Gauteng Division of the High Court of South Africa (which has seats in Pretoria and Johannesburg) is a superior court with general jurisdiction over the province. Johannesburg is also home to the Constitutional Court, South Africa’s highest court, and to a branch of the Labour Court and the Labour Appeal Court. The province has several outstanding universities, and the majority of South Africa’s research takes place at well-regarded institutions such as the Council for Scientific and Industrial Research (CSIR), the South African Bureau of Standards (SABS), Mintek, the South African Nuclear Energy Corporation (NECSA), the Human Sciences Research Council (HSRC) and several sites where the work of the Agricultural Research Council is done. ■

Going green Dozens of Gauteng companies in multiple sectors are exploring ways to make their buildings more efficient, their processes less wasteful and their impact less harmful to the environment.

A new source of power. Gold Fields is building a 40MW solar plant at its South Deep mine. Credit: Gold Fields

very sector has potential for growth and innovation towards a more sustainable future and companies in Gauteng are showing the way. The announcement in 2021 by President Cyril Ramaphosa that the threshold for companies to produce their own electricity without a licence would be increased from 1MW to 100MW was widely welcomed. To protect the grid, generation projects are still required to obtain a grid connection permit. Large companies had been lobbying for this change to the power landscape for a long time. Not only will the policy relieve pressure on national utility Eskom but it will serve as a catalyst for massive new investment. Most of this new capacity will be in the form of renewable energy. One example in Gauteng is Gold Fields, which is building a 40MW solar power station at its South Deep mine at a cost of R660-million. Daily Maverick reports that Roger Baxter, CEO of the Minerals Council, has said that South Africa’s mining industry is ready to build 2GW of renewable energy, valued at more than R30-billion. South African mining companies are also looking at green hydrogen and taking advantage of the fact that many of the minerals needed to fire the new, low-

carbon economy are found in South Africa. Mines and smelters are among the most obvious big consumers of electricity, but modern technology means that data centres and even shopping malls can now produce their own energy. One of the biggest examples of this is the Mall of Africa in Waterfall City, where most of the huge roof is covered by what is believed to be the world’s largest integrated rooftop PV/diesel hybrid project. Attacq Property Group has undertaken to build sustainably across its portfolio. The installation will save 8 034 tons of CO2 annually and will result in 157 fewer coal trucks on the road per year. The PV plant was installed by Solareff, which owns a majority stake in GridCars. Vukile Property Fund has decided to equip all of the malls in its portfolio with rooftop solar panels. Among its properties are malls in Boksburg and Soweto. The company says that installations across the group have the capacity to generate 2 089MWh annually. Retrofitting of light fittings has also taken place to improve energy efficiency. Absa Bank has followed up on its decision to take its central Johannesburg campus off the national electricity grid. Investments in a 6 000-panel rooftop solar system (which cost R10-million), the synchronisation of gas and diesel generators and GAUTENG BUSINESS 2022

SPECIAL FEATURE

that the abattoir needs to function, at a competitive sophisticated water and underfloor heating systems rate. In the process, all of the facility’s biowaste is have all contributed to massive energy savings. The disposed of. bank estimates that the power it generates is 70% In construction and property, the green cleaner than that provided by the national grid. movement is growing apace. Apart from green The rooftop solar installation at Absa’s Pretoria building certification (administered by the Green office provides 17% of its electricity needs and the Building Council of SA), there is now an even bank intends to continue rolling out solar solutions in higher standard which developers and architects addition to investigating battery solutions in pursuit are striving for, Living Building Challenge, in which of what it calls “net zero offices”. a building goes beyond being net zero to being Many energy-intensive companies and regenerative (ie, producing more water and power institutions are generating their own power. In than it uses). Johannesburg, the Northern Wastewater Treatment A recent headline, “Govt launches drive to green Works, the largest of six wastewater plants serving the state properties” indicates that the state is moving city, has its own electricity source in a 1.1MW biogas in the green direction too. The Department of plant. It produces electricity using cogeneration Public Works and Infrastructure recently launched (combined heat and power) and is helping the city an Integrated Renewable Energy and Resource to reduce expenditure on its water treatment works, Efficiency Programme (iREREP). which used to run to R100-million per year. A landfill site at Robinson Deep in Transport and logistics Johannesburg has started generating 3MW of gas. Eskom has announced that all staff cars will be EV This is one of five renewable energy projects that in future. Companies in the transport and logistics Energy Systems SA is running in Johannesburg sectors are moving quickly to prepare for a greener and is the first landfill gas generation project to fall future. Another recent headline announced, “Sasol under the REIPPPP. and Imperial logistics partner to reduce carbon In agriculture, there is urban and hydroponic footprint”. In this regard, gas is seen as important farming, improved soil maintenance, better use in helping South Africa transition to renewables of water and recycling and organic methods. The agricultural sector is also another source of organic waste which is being used to provide power. With thousands of cattle farmed near big cities to provide beef and dairy products, biogas is a useful byproduct. The Bronkhorstspruit Biogas Plant, run by Bio2Watt, has an installed capacity of 4.6MW which it produces from annual feedstock of about 120 000 tons of organic waste. The plant is located in the Tshwane Metropolitan area on the premises of Beefcor, one of South Africa’s largest feedlots. The company has plans to roll out small plants for farmers or agriprocessors who want to produce power for themselves. At the Cavalier abattoir in Cullinan, The solar PV rooftop system at the Mall of Africa was the largest in the biowaste conversion company ibert southern hemisphere when it was installed. Credit: Waterfall City provides about a quarter of the power GAUTENG BUSINESS 2022

Recycling is a big part of the circular economy. Credit: PAMSA

In terms of recycling and reuse, the packaging sector and many companies and industry associations connected to plastics, rubber and paper are trying to mitigate harmful side-effects arising from the manufacture and use of their products. One of the supporters of CleanCitySA, an organisation aiming to clean up Johannesburg, is Plastics SA. Fibre Circle (the producer responsibility organisation for the South African paper and paper packaging sector) is working on compliance with national government’s Extended Producer Responsibility (EPR). Fibre Circle aims to improve the recovery and recycling of paper and paper packaging and to develop products from recycled paper fibre that are commercially viable in their own right. It wants to get packaging products off the streets and away from landfills. The organisation reports that 46% of locally-produced paper products contain sustainably-sourced virgin fibre and that 54% of local paper products contain recycled fibre. The Paper Manufacturers Association of South Africa (PAMSA) reports that many paper and pulp mills are using byproducts from the chemical pulping process as a biomass fuel to drive the mills. Examples include tree residue and “black liquor”. ■

and away from carbon fuels. Petroleum Agency South Africa (PASA) and Sasol and organisations like the Council for Geoscience are working in these areas and logistics fleets are looking to use gas as well. Gauteng fleet entities such as Bulk Hauliers International Transport (BHIT) and SAB (which runs a massive national fleet of trucks) have signed agreements for gas suppliers from Renergen, the company running a big gas project in the Free State. Glass manufacturer Consol has also signed with them and TotalEnergies will establish a national distribution network. Energy efficiency is a growing interest for government and the private sector. The Department of Energy has an Energy Efficiency Directorate and there are other organisations such as Southern African Energy Efficiency Confederation (SAEEC); South African National Energy Development Institute (SANEDI); Productivity SA and the National Cleaner Production Centre (NCPC). Water is one of the key sectors where saving, reuse, recycling, filtration, storage, efficiency (nonleaking pipes) and new solutions are vital to progress towards a greener future. Rand Water’s environmental brand, “Water Wise”, attempts to make users aware of the need to value water and to use it wisely.

GAUTENG BUSINESS 2022

INTERVIEW

Controlled Marketing model encourages close relationships with customers Old Mutual Provincial General Manager: Sales and Distribution, Mathapelo Sipamla, discusses some of the challenges facing business in Gauteng. How many branches does Old Mutual have in Gauteng? There are 31 branches, of which 29 are field branches and two are in-house. We have a staff complement of 494, which includes advisers, junior and senior management and admin staff. How can customers stay in touch or transact remotely? Our Controlled Marketing model encourages close relationships with customers. Advisers need to ensure they are their customers’ go-to person. Our advisers own cellphones and laptops that assist them. During lockdown, we rolled out remote selling that allows the customer to accept a sale remotely though USSD.

Mathapelo Sipamla

BIOGRAPHY Mathapelo Sipamla has been with Old Mutual for the past 18 years, advancing through the ranks from being a financial adviser when she first joined in March 2004. She is a driven and results-orientated sales leader who has a proven record of accomplishment in all the roles she has held within the organisation. She has an MBA from Henley Business School. In April 2021 she was appointed as the Provincial General Manager: Sales and Distribution for Gauteng. GAUTENG BUSINESS 2022

How has your business been affected by the Covid-19 pandemic and what have you noticed about the businesses that you serve? We have been affected immensely as we could not make our targets, but also our staff ’s earning potential was affected because they could not get to enough customers in order to make their targets. Two things are noticeable about businesses in the area: many businesses could not cope with the strain imposed by the various lockdowns and had either to close shop or retrench employees. Some businesses lost employees who died from Covid-19. All of this ultimately means the market potential has decreased significantly. It remains a problem, as most companies are not willing to hire and replace the staff they lost to Covid-19. What are your main offerings to customers? We are in the long-term insurance space so we offer life cover, funeral plans, investments and retirement annuities. What processes are followed in supporting CSI projects? We encourage our advisers to adopt community projects and submit an application for which we can provide finance of up to R20 000. They must also submit proof that they take the time to be there physically to assist with whatever project they are driving. We are engaged in a large number of projects across the province. ■

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INTERVIEW

Promoting small business Colin Francis, Operations Manager for Seda Gauteng, outlines some of the programmes available to entrepreneurs, from business diagnostics to training. What is the mandate of Seda Gauteng? The Small Enterprise Development Agency (Seda) is an agency of the Department of Small Business Development. It is mandated to implement government’s small business strategy; design and implement a standard and delivery network for small enterprise development and integrate government-funded small enterprise support agencies. Seda’s mission is to develop, support and promote small enterprises, ensuring their growth and sustainability in coordination and partnership with various role-players, including global partners, who make international best practices available to local entrepreneurs. Where are your regional branches located? Ekurhuleni, Kempton Park; Tshwane-Pretoria CBD; Johannesburg, Braamfontein.

Colin Francis, Operations Manager

What are the major challenges faced by small businesses? Access to finance and to business development services. Lack of market opportunities, poor infrastructure, overbearing legislation and lack of information. What impact has Covid-19 had on small business? Small businesses have been severely affected by Covid in that restrictions have hampered the potential for sales. Expensive data and digital platforms also stopped entrepreneurs from taking their businesses online. Many small businesses did not survive the hard lockdowns.

BIOGRAPHY After gaining a National Diploma in Extraction Metallurgy and Mining Technology from Technikon Witwatersrand, Colin graduated with a BTech from Unisa. After a spell as a learner metallurgist at Vaal Reefs, he worked for Columbus Stainless. He then branched out as a small business owner of a food company before becoming a Senior Industrial Advisor to the National Advisory Manufacturing Centre. He joined Seda in 2006 and was appointed in 2011 to his present position as Operations Manager, Gauteng.

Has Seda run programmes to help SMMEs recover? Seda assisted the Department of Small Business Development and Sefa to roll out the Business Recovery Programme and the Covid Relief Programme. Where are the best opportunities in Gauteng? Gauteng is the economic powerhouse of the country and the sectors that flourish include the manufacturing, wholesale and retail, banking, services and ICT sectors. Due to the populous nature of the province, there are opportunities everywhere, from the numerous business parks to the business districts and the townships Does Seda encourage competitiveness and viability? Seda offers a wide range of services including business diagnostics, information dissemination and training. Does Seda assist women and youth? Seda assists all client on a needs basis. Seda partners with various stakeholders to ensure that these designated groups have access to tailormade programmes.

“We are agripreneurs, supplying equitably sourced and sustainably grown African Indigenous ingredients, including ancient grain and superfoods, connecting ethical producers with conscious consumers”

Local Village (Gauteng) “Together Advancing Small Enterprise Development”

Info Centre: 0860 103 703 www.seda.org.za @Seda_dsbd Seda.dsbd

Expansion at Ford Motor Company’s Silverton assembly plant will add 1 200 jobs to Ford’s workforce and increase annual installed production of the Ford Ranger to 200 000 units (up from 168 000). The plant also will manufacture Volkswagen pickup trucks as part of the Ford-VW strategic alliance. An overall country investment of R15.8-billion includes R10.3- billion to be spent on upgrades at Silverton to increase production volumes and drive improvements in production efficiency and vehicle quality. Credit: Ford Motor Company

KEY SECTORS Overviews of the main economic sectors of Gauteng Agriculture Mining Energy Oil and gas Transport and logistics Manufacturing Tourism Construction and property ICT Banking and financial services Education and training Development finance and SMME support

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OVERVIEW

Agriculture Hydroponic farms on rooftops are growing.

he Urban Agriculture Initiative is a project of Wouldn’t It Be Cool (WIBC) and the Johannesburg Inner City Partnership. The project aims to establish an urban agricultural value chain in the inner-city with hydroponic farms on rooftops as the key element. WIBC piloted the concept with a young entrepreneur from Kagiso and implemented the first commercial farm in the project in 2017. Grant funding from Seda saw another 100 farms established. In Melville, Zakir Kathrada is growing rocket, baby spinach, gem lettuce and tomatoes on the roof of The Whippet Coffee, to whom he sells the produce. Urban farmer Puseletso Mamogale is shown in the picture on this page. The Fresh Produce Market in Johannesburg is South Africa’s biggest market. The region’s other metropolitan areas, Tshwane and Ekurhuleni, also have busy markets. The Springs Fresh Produce Market accounts for 3% of South African market share. Gauteng’s agricultural sector is focussed on producing vegetables. There is commercial farming in the southern sector of the province (part of South Africa’s maize triangle) and the farming of cotton, groundnuts and sorghum is undertaken in areas near Bronkhorstspruit (east) and Heidelberg (in the south). The province is home to some of South Africa’s biggest agricultural companies, including AFGRI. Africa’s largest feedlot for cattle is located in Heidelberg: Karan Beef ’s facility can accommodate 120 000 cattle. The feedmill processes 1 400 tons per day and the associated abattoir in Balfour in neighbouring Mpumalanga sometimes deals with 1 800 head of cattle per day. The Kanhym Agrimill in Vereeniging is one of three in the company’s portfolio, which collectively processes 250 000 tons of animal feed annually. Kanhym Estates is the largest producer of pigs in the country. There are many poultry farm and production facilities in Gauteng. Companies include Astral Foods, RCL Foods and Daybreak Farms. The Gauteng Industrial Development Zone (GIDZ) located at OR Tambo International Airport has an agro-processing plant which is intended to encourage the export of high-value goods. The Provincial Government of Gauteng has set up Action Labs to focus on agriculture and agro-processing with a focus on land tenure issues and improving food security. If food producers can be linked to

ONLINE RESOURCES Agricultural Research Council: www.arc.agric.za South African Poultry Association: www.sapoultry.co.za WIBC: http://wibc-w-live.azurewebsites.net/

GAUTENG BUSINESS 2022

SECTOR INSIGHT KLL Group has bought Tongaat Hulett’s starch assets.

the value chain then township economies can benefit. In almost every aspect of the spatial planning being carried out by the Gauteng Provincial G o v e r n m e n t , a g r i c u l t u re and agro -processing are key components, either of Special Economic Zones (SEZ), industrial parks or agri-parks. Tongaat Hulett, best known as a sugar producer, has sold its starch business (with three milling plants in southern Gauteng) for R5.3-billion to the KLL Group, a wholly-owned subsidiar y of Bar lowor ld Logistics Africa. ■

OVERVIEW

Mining Tailings are proving lucrative in Gauteng. SECTOR INSIGHT Harmony’s purchase of Mine Waste Solutions is paying off.

Credit: Harmony

auteng is home to many old mines which means that the province has to guard against many of the aftereffects of deep mining such as acid mine water and subsidence. The Council for Geoscience is actively engaged in research projects into such issues but the high prices that gold is attracting globally means that another byproduct of mining, tailings, has become more lucrative. Mine Waste Solutions, a tailings retreatment operation bought by Harmony from AngloGold Ashanti in 2020 and operated by subsidiary Chemwes, has performed well for the group. Production of 2 057kg (66 133oz) of gold in the nine months to June 2021 reflected high productivity at a healthy average gold price of R729 882/kg. Harmony Gold’s acquisition strategy, including the purchase from AngloGold of Moab Khotsong, will result in it being the country’s biggest gold producer. With 350 000 new ounces coming from Mponeng, it could produce an annual total of 1.7-million ounces. A new company, Shallow Reefs Gold, has been created to pursue projects in the shallow reefs of the Witwatersrand Gold Basin. The company believes that the grade of the deposits makes for a good economic proposition, especially as the infrastructure required for shallow mining is much cheaper than for the deep mining that has characterised the sector in the past. Cullinan diamond mine is engaged in an expansion programme called the C-Cut Phase 1 project. Cullinan is famous for its rare blue diamonds. The University of Witwatersrand started life as the South African School of Mines. The School of Mining Engineering at Wits is the highest-ranked school at the university in terms of the QS World University Rankings.

ONLINE RESOURCES Council for Geoscience: www.geoscience.org.za Minerals Council South Africa: www.mineralscouncil.org.za National Department of Mineral Resources: www.dmr.gov.za

Gauteng is home to most of the research and training bodies associated with mining. SibanyeStillwater supports the Wits Mining Institute’s Digital Mining Laboratory (Digimine). AECI, the explosives and chemicals company, sponsors the Virtual Reality Mine Design Centre at the University of Pretoria. The Mandela Mining Precinct is a joint venture between three government departments and the Minerals Council South Africa which aims to develop research into mining and showcase the country’s manufacturing abilities. Mintek is an autonomous body based in Randburg which receives about 30% of its budget from the Department of Mineral Resources. The balance comes from joint ventures with private sector partners, or is earned in research and development income, the sale of services or products and from technology licensing agreements. Pretoria University has a Department of Mining Engineering, the University of South Africa offers three national diplomas in minerelated fields, the University of Johannesburg has mine-surveying courses and the Vaal and Tshwane Universities of Technology have engineering faculties. ■ GAUTENG BUSINESS 2022

INTERVIEW

Cullinan Diamond Mine produces rare and exceptional “specials” The General Manager of the Cullinan Diamond Mine, Jaison Rajan, explains how infrastructure investment is extending the life of one of the world’s great mines. Why is Cullinan Diamond Mine often referred to as an “iconic” diamond mine? Cullinan Diamond Mine has earned its status as a result of it being probably the world’s most consistent supplier of exceptional stones. One of the first, and arguably the bestknown, was the Cullinan Diamond found at the mine in 1905. This stone, at 3 106ct, is still the largest diamond ever found, and jewels cut from it adorn the Royal Crown and Sceptre of the United Kingdom.

Jaison Rajan, General Manager

BIOGRAPHY Jaison Rajan is a mining engineer with post-graduate Master’s qualifications in both mineral economics and business administration. He has over 20 years industry experience, having worked in various mineral commodities including heavy minerals, manganese, coal and diamonds. He is an accredited Professional Engineer with a Mine Manager’s certificate of competency (South Africa). GAUTENG BUSINESS 2022

Are there are other stones from the mine that could lay similar claims? Indeed! Cullinan Diamond Mine is also the source of most of the gem-quality Type II blue diamonds recovered and put to market. These diamonds are extremely rare, which is vouched for by the high prices per carat achieved when they are presented to the market. A recently recovered 39.34ct Type IIb blue stone sold for more than $40-million, which was the highest price that Petra has achieved for a single stone. Apart from this stone, there have been quite a number of other “specials”, both blue and white stones of exceptional quality with regards to both colour and clarity, many of which had been recovered by Petra since it took ownership of the mine in 2008. This includes the Blue Moon of Josephine, the Cullinan Dream and the Letlapa Tala Collection. It was already an old mine when Petra took over; how much life is left in it, and what is Petra doing to ensure its future? The mine is still an exceptional resource with prospects of a long life into the future. From what we currently know, the resource still has a potential life upwards of 50 years, subject to market and economic conditions. Realising the value and potential, Petra embarked on an intensive capital investment programme soon after acquiring it, including the further development of underground resources (the so-called “C-Cut”) and replacement of the old processing plant with a new, cutting-edge treatment facility that will serve the mine well into the future.

How does the mine’s location within a metropole affect your planning? It is a rather unique situation and does impact on our approach. We accept and believe that the operations of any mine, including ours, should first and foremost benefit its most immediate stakeholders, which are the communities in which we operate. Giving effect to this has many facets, which includes ensuring that we recruit locally, providing local households with a stable income, focussing on procurement of local supply to boost local business, especially SMMEs, while contributing to their development, social investment programmes that are aimed at effectively addressing the needs of our communities and more. Our core operations also have impacts on the community, such as environmental impacts (the potential of dust, noise and vibration) as well as the naturally occurring scaling of the pit. All of these are closely monitored, mitigating actions are taken and we maintain open communication with the community around these issues.

supporting the private tourism industry in various ways, not least of which is by being the only underground mine allowing underground tours as part of its tourism offering. This support further extends to financial and promotional contributions, and we are excited to see the effect that these initiatives are having on the growth of tourism in the town. The Covid-19 pandemic has had a profound impact on everything we do. How did it impact Cullinan Diamond Mine? When the news broke, Petra proactively put controls in place to implement a Mandatory Code of Practice for the prevention, mitigation and management of Covid-19. This included various controls for screening, social distancing, sanitising and wearing of masks, which allowed us to continue our operations at sustainable levels soon after the initial lockdown. Realising the impact of the pandemic on our communities, much of our focus also went into distress relief within our communities, in conjunction with partners such as the City of Tshwane, through the employee-funded Petra Hardship Fund that contributed foodstuffs and other relief materials. This included the distribution of more than 700 food hampers and 500 cloth masks to the community, assistance to health workers, schools and the Tshwane Metro Police with supplies such as surgical masks, sanitiser, disinfectant and sterile gloves, all to the value of more than R500 000. ■

Apart from the mine, the town of Cullinan is also somewhat of a tourism destination. What is the mine’s involvement in that? Cullinan is indeed a little town with a colourful history, much of which relates to the mine, and it is rightly a tourist favourite. From Cullinan Diamond Mine’s side, we believe that tourism will become an increasingly important contributor to the local economy and we are therefore

GAUTENG BUSINESS 2022

OVERVIEW

Energy Hydrogen fuel cells are attracting interest.

locally-developed stationary hydrogen fuel cell is the SECTOR INSIGHT subject of a test at the refinery of Impala Platinum Ford Motor Company has a in Springs, east of Johannesburg. Engineering News plan to go off grid. reported in 2021 that the first signs are positive. Implats has donated 16ha for the project and is invested in AP Ventures, a London-based company that invests in companies that use platinum group metals to promote the fight against climate change. Gold Fields is on course to build a 40MW solar power plant at its South Deep mine west of Johannesburg. Harmony, which has several mines in Gauteng, is already operating a 30MW solar plant in the neighbouring Free State province. Areas in the Gauteng province that can no longer rely on the mining industry to drive their economies may become focus zones for solar PV projects. Renewable A 100kw natural gas baseload fuel cell powers the offices Energy Development Zones (REDZs) have been allocated of Minerals Council SA in Johannesburg. in other provinces but the potential for REDZs in Gauteng Credit: MineralsCouncil SA is huge, because vast amounts of energy needed to drive the country’s biggest economy. the synchronisation of gas These zones would be developed in line with the national and diesel generators and Integrated Resource Plan (IRP 2019) which the Gauteng Provincial s o p h i s t i c a te d w a te r a n d Government is hoping will enable it to unlock several renewable underfloor heating systems energy projects. Other projects include promoting gas usage, have all contributed to massive the development of hydrogen fuel-cell technology and the energy savings. recommissioning of power stations. The rooftop solar installation In Johannesburg, the Northern Wastewater Treatment Works at Absa’s Pretoria office provides has its own electricity source in a 1.1MW biogas plant. It produces 17% of its electricity needs electricity using cogeneration, which is combined heat and power. and the bank intends rolling A landfill site at Robinson Deep in Johannesburg has started out solar solutions for another generating 3MW of gas. This is the first of five renewable energy five offices soon in addition to projects that Energy Systems SA has in Johannesburg. At the investigating battery solutions Cavalier abattoir in Cullinan, biowaste conversion company in pursuit of what it calls “net ibert provides about a quarter of the power that the abattoir zero offices”. needs to function. Ford is spending R135-million Absa Bank has followed up on its decision to take its central on building a solar carport at its Johannesburg campus off the national grid. Investments in Silverton plant that will produce a 6 000-panel rooftop solar system (which cost R10-million), 13.5MW. The project is part of a bigger project to take the whole ONLINE RESOURCES plant off the grid, Project Blue Oval. National Energy Regulator of South Africa: www.nersa.org.za Ford is working with Uhuru Africa, South African National Energy Development Institute: www.sanedi.org.za a joint venture between Uhuru South African Photovoltaic Industry Association: www.sapvia.co.za Energy and SolarAfrica Energy. ■

GAUTENG BUSINESS 2022

OVERVIEW

Oil and gas An international investor is supporting a new LPG cylinder plant. SECTOR INSIGHT Glass manufacturer Consol has signed a new gas contract.

Credit: BHIT

new liquefied petroleum gas cylinder manufacturing p l a n t h a s a t t r a c te d f u n d i n g f ro m J S a s s o o n Group. Bluedrop Energy will build its LGP plant in Johannesburg with technical assistance from an Israeli company and Fluor. Bluedrop will also be an LPG wholesalerand composite LPG cylinder manufacturer in Africa. The R300-million committed by Sassoon to the Gauteng project is part of a much bigger commitment the investment firm is making to invest in South Africa more generally: a figure of $50-billion over five years has been mooted. Glass manufacturer Consol, which has three plants in Gauteng, has signed a contract to buy liquid natural gas (LNG) from Renergen, the company that is developing a significant field in the neighbouring province of the Free State. Bespoke depots will be developed to cater to industrial clients such as Consol. Renergen is taking orders for its product from logistics companies such as Bulk Hauliers International Transport (BHIT) for 50 of its trucks (pictured), which should lead to lower operating and maintenance costs. South African Breweries is another client. Delta Natural Gas (DNG) Energy announced in 2019 the rollout of 400 natural gas refuelling sites across South Africa with a focus on the taxi and logistics sectors. The first sites will be Johannesburg and Tshwane. The Provincial Government of Gauteng has announced that it wants to take “decisive steps” to increase the availability and use of gas. NGV Gas, a subsidiary of CNG Holdings, is promoting compressed natural gas (CNG) as a versatile alternative across all sectors. Another subsidiary, CNG Technology, supplies equipment for filling stations and distributors, converts petrol and diesel-powered vehicles

ONLINE RESOURCES National Energy Regulator of South Africa: www.nersa.org.za South African Oil & Gas Alliance: www.saoga.org.za South African Petroleum Industry Association: www.sapia.co.za

and advises companies on conversions. The major economic sectors using gas are the metals sector and the chemical, pulp and paper sector. Brick and glass manufacturers are also big consumers. National policy is driving a switch to the use of gas. A national Gas Utilisation Master Plan (GUMP) is being developed. The countr y ’s biggest supplier of industrial heating fluids, FFS Refiners, supplies this product out of a plant at Chloorkop while the company ’s Evander site is responsible for heavy fuel oils. Evander also has a tank with installed capacity of 8 500m³. Egoli Gas has a pipeline network that extends over 1 200k m in and around Johannesburg and the company has 7 500 domestic, industrial and commercial customers. The company that owns Egoli Gas, Reatile, has a 30% stake in Vopak and a stake in CNG Holdings. The regulator and promoter of oil and gas exploration in South Africa, Petroleum Agency South Africa, has awarded coalbed methane gas and natural gas rights in the provinces on Gauteng’s border, Free State and KwaZulu-Natal. ■ GAUTENG BUSINESS 2022

FOCUS

Gas can boost the national economy and start the country on the path to zero emissions Dr Phindile Masangane, the CEO of Petroleum Agency South Africa, notes that recent gas discoveries could support the country’s economic recovery and its transition to a clean energy future.

oday the biggest threat to humanity is climate change, and the biggest threat to SA’s social stability is the high unemployment rate. As the global economy recovers from the devastating effects of Covid-19, demand for oil and gas has gone up significantly. If there was ever a need for proof that oil and gas still drive the global economy, recent statistics demonstrate the trend. The world’s developed economies industrialised on the back of oil and gas production and use. Now, just as Africa is on the cusp of being a significant gas producer and is making plans to use such gas for power generation, industrialisation and economic growth, the negative effects of greenhouse gas emissions on the environment have become undeniable. The urgency for action to mitigate the risk of climate change is no longer debatable. Between 1990 and 2018 the top five emitters have produced more than 50% of greenhouse gas emissions. During the same period SA contributed GAUTENGBUSINESS BUSINESS2022 2022 GAUTENG

1% to global emissions. This is by no measure insignificant, and as a responsible global citizen SA must take steps to reduce its carbon footprint. The UN Framework Convention on Climate Change was established in 1992 to coordinate the global response to mitigate the threat of climate change, and specifically to get countries to commit to policies and plans that will ensure that the average global temperature rise is kept less than 1.5°C above pre-industrial levels. The International Energy Agency (IEA) proposes that to achieve this goal the world’s energy sector must reach net zero emissions by 2050. In its global energy net zero 2050 pathway the IEA acknowledges that there is no single pathway to this goal, as developed and developing countries face different socioeconomic challenges and have contributed disproportionately to greenhouse gas emissions to date. What a number of environmental interest groups seem to be ignoring in the IEA “Net Zero by 2050” report is the acknowledgment that there will be a differentiated approach to a clean energy future, taking into consideration the cost of the new clean energy technologies and the economic consequences of transitioning for each country. The IEA emphasises that each country must develop its own pathway to a net zero emission future. S o u t h A f r i c a’s e c o n o m y h a s b e e n predominantly powered by coal, which is also a significant contributor to the country’s economy in terms of GDP as well as employment. In addition to coal, SA imports oil, gas and petroleum products for its energy needs as the upstream petroleum industry is still at a nascent stage. The two recent world-class offshore gas

26 26

FOCUS

Renergen is currently the only onshore petroleum production rights holder in South Africa. The company’s Virginia Gas Project in the Free State is ramping up to phase two, based on one of the richest helium concentrations in the world. discoveries in the Outeniqua basin are the biggest petroleum discoveries made in South Africa. The development of these discoveries has the potential to replace more than 2 300MW of dieselfired electricity generation, thereby reducing the carbon emissions by more than 50% while eliminating sulphur oxide and nitrogen oxide emissions. Gas is therefore an obvious bridge to a lower carbon future. The Petroleum Agency SA awaits the licensee of these gas discoveries submitting its production right and environmental authorisation applications when the exploration right expires, or earlier. The agency expects the licensee to use world-class technologies and standards to minimise the effects of the gas and gas condensate production on the environment, while maximising the in-country benefit or local content from this development to support SA’s economic recovery. These discoveries could indeed support both the country’s economic recovery and its transition to a clean energy future.

Resources Development Bill] will assist the Agency in expediting exploration through close management of acreage allocation and work programmes. These positive factors create a conducive environment for PASA to pursue its mandate of attracting investment into the upstream petroleum industry. The draft bill provides greater policy certainty and a stable environment for investment in the South African oil and gas sector. It provides security of tenure by combining the rights for the exploration, development and production phase under one permit. As far as the issuing of exploration rights over the last 18 months is concerned, a total of 21 exploration rights for both onshore and offshore were issued during this period, including renewals and new exploration rights. As of December 2020, there is no longer a moratorium on applications for rights onshore, other than those for shale gas in a specified area covering the central Karoo. Other onshore applications continue to be received and processed in terms of the MPRDA. The moratorium for shale gas rights and new offshore applications remains in place and is expected to be lifted with the enactment of the hydraulic fracturing regulations (for environmental management and water use) for the shale gas extraction technologies. ■ Locality

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Shale and biogenic gas prospects Onshore exploration opportunities are represented by unconventional resources such as shale gas in the south-central Karoo, coalbed methane in the coalfields of the east and northern sectors of the country and biogenic gas in the Virginia and Evander regions. However, geological analysis is showing that there may well be significant potential for conventional oil and gas resources onshore. South Africa has a history of political stability and the new UPRD bill [Upstream Petroleum

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Figure 32. Distribution of coal fields in the Karoo-aged basins in South Africa (digital geological data sourced from Council for Geoscience)

OVERVIEW

Transport and logistics Roads and infrastructure spending is set to increase across the province. SECTOR INSIGHT DHL Forwarding has invested in new capacity.

The infrastructure associated with large housing estates such as Steyn City is substantial, as are the roads that surround and serve the developments. Credit: Steyn City

he Gauteng Department of Roads and Transport has a pipeline of 67 projects with a combined value of R23-billion. Of these projects, 13 – valued at R6.6-billion – are private sector initiatives and the various road, construction and design projects are expected to be implemented over the decade to 2031. Among the private companies that will be involved in projects are property companies Attacq Waterfall Investment, Steyn City and Century Properties and mining company Cullinan. A feasibility study is underway to examine extending the Gauteng Rapid Rail Integrated Network. The current network has 10 stations spread over 80km and the extension would add 146km and 19 new stations. The estimated R2-billion that was due to be spent on adding to the Gautrain’s rolling stock has been put on hold because of Covid-19. The long-term plans to expand the Gautrain network are still on course. Transnet Rail Engineering ( TRE) has a major presence in Gauteng and the metropolitan lines that ferry commuters are run by the Passenger Rail Agency (PRASA). The Wits Metrorail system serves Johannesburg and its surrounds. Park Station, in the north of the central business district, is the largest station in Africa and acts as the metropolitan hub. DHL Global Forwarding has spent R126.5-million on a new facility in the Skyparks Business Estate, located next to OR Tambo GAUTENG BUSINESS 2022

International Airpor t. The new floorspace of 13 000m² (most of which is warehouse space) doubles the company’s current footprint. A total of 82% of South Africa’s air cargo is transported through OR Tambo International Airport and Gauteng has several cargo and freight handling facilities well-equipped to deal with rail and road deliveries and despatches. A specific goal of the Provincial Government of Gauteng is to make the Transnet Ta m b o - S p r i n g s Lo g i s t i c s Gateway the biggest inland logistics hub and dry port in Africa by 2030. The Tambo-Springs Gateway near Katlehong is an intermodal facility which can transfer containers from rail or road to storage facilities and ultimately to the customer. Existing freight rail lines run through the site and link it to the seaports of Durban, Cape Town and Ngqura (Port Elizabeth). The aim with this new facility is to improve efficiency. It is run by the Tambo Springs Development Company. The intention is to add to the port:

OVERVIEW

• • • •

a logistics park (transportation, processing, manufacture, warehousing and distribution) a business park with a retail element a residential component an agro-industrial section.

The Provincial Government of Gauteng is stressing the importance of digital competence (“smart mobility”) in the transport sector as ever-more complex transactions take place across international borders. This will only grow as the effect of the African Continental Free Trade Area (AfCTA), signed in 2019, comes into effect, allowing for greater and freer trade across the continent. The health of the transport and logistics networks of the province is key to any economic growth plans. The provincial government has identified logistics hubs, the road network, intermodal facilities, rolling stock, and buses and taxis as key components of the drive to transform, modernise and reindustrialise the regional economy. Road infrastructure projects are intended to bring in other major investments and connect new economic nodes such as the Tambo Springs Logistics Gateway, the planned new megacities (Vaal River City and Lanseria) and the new Special Economic Zones with current economic nodes and existing townships. In the short term, 18 major roads will be rehabilitated, upgraded and constructed, especially in Sedibeng and the West Rand. The OR Tambo International Airport Special Economic Zone (ORTIA SEZ) has diversified beyond the existing Jewellery Manufacturing Precinct in the shape of a R400-million agroprocessing plant. The concept of an aerotropolis is for the airport to become a hub of economic activity in the same way that cities anchor various economic sectors that grow up around the centre.

Airports OR Tambo International Airport caters for more than 20-million passengers every year. Lanseria Airport has grown in importance with kulula, FlySafair and Mango using the airport located to the north of Johannesburg.

ONLINE RESOURCES Airports Company South Africa: www.acsa.co.za Road Freight Association of South Africa: www.rfa.co.za South African Association of Freight Forwarders: saaff.org.za South African National Roads Agency: www.sanral.co.za

Credit: DHL Global Forwarding It is a convenient landing point for travellers bound for regional centres like Rustenburg in the North West. Four airlines continued to offer flights during the Covid-19 lockdown: FlySafair, Airlink, Cemair and Mango. Three airlines went into business rescue: SAA, SA Express and Comair (which is a British Airways franchisee and runs the low-cost kulula brand). Gauteng has several smaller airpor ts that host mostly commercial aircraft: • • • •

Rand Airport in Germiston Grand Central Airport in Midrand Wonderboom Airport in Pretoria North Waterkloof Air Force base, south of Pretoria.

The Commercial Aviation Manufacturing Association South Africa (CAMASA) reports that 50 companies are active in the sector, employing more than 3 000 people in highly skilled jobs. Almost all the activity is around Johannesburg and Cape Town and the sector (which encompasses aero-structures and systems, manufacturing, design and engineering) is responsible for R3-billion in exports every year. ■ GAUTENG BUSINESS 2022

Automotive AutomotiveAftermarket AftermarketBusiness Business Support SupportScheme Scheme Overview The automotive aftermarket business support scheme supports and develops small and independent automotive aftermarket enterprises, including informal businesses located in townships and villages. The scheme was developed in response to the increased demand for services from the motor industry, insurance companies and uninsured vehicle owners, and has a bias towards businesses located in townships and rural areas.

Objectives The objectives of the scheme are to: • Support motor body repairers (panel beaters) to operate accredited small or independent panel beating (motor body repairs) businesses • Support motor and other mechanics to operate authorised service centres • Support small and independent auto-spares shops to operate profitable spare parts centres • Support the formalisation of informal automotive entrepreneurs into formal fitment centres.

Support Support Financial support Financial support • Maximum of R500 000 000 (R400 000 000 equipment and and R100R100 000 000 working capital) for motor bodybody • Maximum of R500 (R400 equipment working capital) for motor repairers, mechanics, and auto spares shops and auto fitment centres repairers, mechanics, and auto spares shops and auto fitment centres • The• The R500R500 000 000 will will be provided by the banks withwith a guarantee fromfrom sefa.sefa. Non-financial be provided by commercial the commercial banks a guarantee Non-financial support support • Diagnostic assessment of the (this(this will will inform the interventions to betocompleted) • Diagnostic assessment of business the business inform the interventions be completed) Among others these maymay include: Among others these include: • Automotive workshop service management training and and support. • Automotive workshop service management training support. • Business management support and and mentorship through the Unemployed Graduate Scheme, or or • Business management support mentorship through the Unemployed Graduate Scheme, SEDA Business Advisors and/and/ or services of business professionals SEDA Business Advisors or services of business professionals • Facilitate access to market in both the private and and public sectors, for vehicles to betoserviced at at • Facilitate access to market in both the private public sectors, for vehicles be serviced participating service/ motor bodybody repair/ fitment centres participating service/ motor repair/ fitment centres

Qualifying criteria Every application will be assessed in terms of the following criteria: • Must register on the National SMME database at https://smmesa.gov.za/ • Must be an informal or micro-business or cooperative • Registered as a legal entity with the Companies and Intellectual Property Commission and South African Revenue Service • 100% South African ownership • 70% of employees must be South African • Valid South African identity documents • Minimum trading period (six months) • Must have a valid business bank account (including newly opened) • Willing to participate in the revolving credit facility as organised by the Department of Small Business Development or any of its agencies through a participating bank • Must be operating in a township or village • The business operating premise (including the home premise) must hold or be willing to be assisted to acquire an Occupational Health and Safety Act compliance certificate

Who can apply? All auto mechanics, such as motor mechanics, heavy equipment mechanics, tractor, and forklift mechanics, as well as diesel fitters, panel beaters, glaziers, tyre and glass fitment centres, auto spares shops.

Application process How to apply: 1. Complete the Automotive Aftermarkets Support online application form 2. Complete all the mandatory fields 3. Upload the required supporting documents 4. Submit your application online to trep@sefa.org.za To find out more about the scheme and contact details to Seda Branches visit www.sefa.org.za \ www.seda.org.za You can also contact Seda Information Centre at: Tel: 0860 103 703 or Email: info@seda.org.za

OVERVIEW

Manufacturing Corobrik’s new factory started producing product in 2021.

SECTOR INSIGHT Several Metair subsidiaries will benefit from Ford’s expansion.

Ford’s expansion project at Silverton will create jobs along the value chain. Credit: Ford Motor Company

new factory in Carltonville produced its first bricks in 2021. The R800-million Corobrik Kwastina factory has reduced costs in the manufacturing process by 50% and consumes 70% less gas than previous methods. At full capacity, Kwastina will be able to produce 100-million bricks per year. Manufacturing contributes 14% to Gauteng’s real economy output and provides 40% of South Africa’s manufacturing overall. Manufacturing related to the mining industry, historically the lynchpin of the Gauteng economy, is still important. Employer organisations like the Manufacturing Circle and government at national and provincial levels are engaging in initiatives to grow the sector, including incentives such as the Manufacturing and Competitiveness Enhancement Programme (MCEP) of the Department of Trade, Industry and Competition (dtic). Sectors that have received support include plastics, pharmaceuticals, chemicals, metal fabrication, transport equipment and agri-processing. The Support Programme for Industrial Innovation (SPII), run by the Industrial Development Corporation (IDC) on behalf of the dtic, promotes technology development. Original equipment manufacturer Ford announced a $1-billion investment in South Africa in 2021. Expanded production (to installed capacity of 200 000 units) at the company’s Gauteng plant

GAUTENG BUSINESS 2022

will create 1 200 direct jobs and a further 10 000 jobs along the supply chain. I n response to Ford’s investment, auto component and batter y manufacturer Metair will establish a new logistics facility at Silverton. Several Metair subsidiaries, including Hesto Harnesses, Unitrade, Automould and Lu m o t e c h , h a v e s i g n e d agreements to supply Ford with a wide range of products. All of Gauteng’s large automobile manufacturers are investing in new model production. Nissan is spending R3-billion on production of the Navara pick-up vehicle. Other major investments include R6.1-billion by BMW at Rosslyn and R260-million by BMW on an expanded campus at Midrand. UD Trucks, a part of the Volvo group, will assemble the Croner heavy commercial vehicle at Rosslyn. Gauteng is also home to a s t ro n g a u to m o t i ve components industry, together with several bus and truck assembly plants. These include Scania, TFM Industries and MAN Truck and Bus South Africa, as well as the Chinese

OVERVIEW truck manufacturer FAW, which owns an assembly plant in Isando. Beijing Automotive Works (BAW) assembles taxis at Springs. Armoured cars are produced by the Paramount Group. DCD Protected Mobility manufactures armoured cars in Boksburg, which are branded as Vehicle Mounted Mine Detectors. In nearby Benoni, BAE Systems OMC designs and manufactures protected vehicles. The Eastern Corridor of Gauteng, centred on the metropole of Ekurhuleni, is consolidating its position in manufacturing by leveraging the advantages of hosting the OR Tambo International Airport and related Special Economic Zones and industrial parks. Ekurhuleni Metropolitan Municipality has the greatest concentration of manufacturing enterprises, especially between Wadeville and Alrode, south-west of Alberton. Germiston is the country’s biggest rail junction and Transnet Engineering has invested hundreds of millions of rands in new equipment at its facility there. Aeroton is the site of SEW-EURODRIVE’s new head office and factory which will bring under one roof several of the company’s activities which were previously in different parts of the country. The R200-million development is about three times larger than the existing head office premises, located in the same suburb. The Provincial Government of Gauteng plans to bolster manufacturing capacity in the province’s western areas. The priorities are mining and mineral beneficiation, capital equipment and machinery, agriculture and agro-processing, tourism, retail and economic development in townships. Packaging company Nampak has metals, plastic, paper and glass operations at various locations. It is the market leader in beverage cans. The country’s biggest glass producer, Consol Glass, has facilities in Clayville, Wadeville and Nigel. Household products manufacturer Unilever represents an example of the lighter industrial capacity of the East Rand. Kellogg’s, Kimberly-Clark South Africa and Procter & Gamble all have significant manufacturing capacity in the area. Corrugated paper manufacturer Corruseal has purchased the Enstra Mill in Springs from Sappi, giving it greater control of production. The southern portion of Gauteng around Vanderbijlpark and Vereeniging is synonymous with steel production. Flat iron is made at the ArcelorMittal plant. Scaw Metals has a chain-making factory in Vereeniging. There are 35 aluminium processing firms in Gauteng, involved in both secondary processing to produce foils, cans, bars, rods and sheets, with final fabrication in the form of die-casting and sheet metal work. Within Gauteng, the automotive and packaging industries are the chief consumers of these products. ONLINE RESOURCES Centre for Advanced Manufacturing: www.cfam.co.za Chemical and Allied Industries’ Association: www.caia.co.za Gauteng Department of Economic Development: www.ecodev.gpg.gov.za Manufacturing Circle: www.manufacturingcircle.co.za

Credit: Corobrik AECI is a large manufacturing company with its roots in the mining industry. It comprises two principal divisions: AEL Mining Services (with a large factory site at Modderfontein south of Johannesburg) and Chemical Services, which presides over 20 separate companies (including Senmin, the group’s mining chemicals company). More than half of the companies operating in the food and beverage sector in South Africa are in Gauteng, including Nestlé, Tiger Brands, Pioneer Foods, RCL, AVI and Astral. There are approximately 4 000 food processing companies in the province, employing more than 100 000 people. Although there are more than 200 pharmaceutical firms in the country, large companies dominate the field, with Aspen Pharmacare (34%) and Adcock Ingram (25%) the two key players, followed by Sanofi, Pharmaplan and Cipla Medpro. Among the other big international brands active in Gauteng are Merck, which has a 55 000m² plant at Modderfontein, and Pfizer SA, which runs a laboratory in Sandton among its facilities in South Africa. ■ GAUTENG BUSINESS 2022

OVERVIEW

Tourism Airlink has teamed up with successful international carriers. SECTOR INSIGHT Growing Gauteng Together (GGT2030) plans to boost the tourism sector.

irlink, which ended its franchise agreement after SAA went into business rescue, has signed deals with Qatar Airways, Emirates and United Airlines, giving travellers on those successful international carriers easy access to a wide range of Southern African destinations and St Helena. Single-ticket arrangements and one-stop baggage check-ins will facilitate easier travel in a difficult time. Airlink also has a service that connects travellers with certain game lodges. Airlink boasts an on-time performance consistently better than 95%. When the Marriott International hotel group closed three of its South African hotels during the Covid-19 lockdown, Tsogo Sun Hotels, which owns a controlling stake in all three hotels, stepped up its commitment by agreeing to bring them into its portfolio, keep them open and run them. One of these hotels is the The Mount Grace in the Magaliesberg which was developed by the Brand family and was the sister hotel to The Grace in Rosebank. Tsogo bought and restored The Grace and it currently operates as 54 on Bath. The Tsogo group believes that demand for conferencing, weddings and shorter family getaways will grow and that The Mount Grace, with its close proximity to Johannesburg, is in a good position to respond to those markets. Tsogo Sun Holdings has split its casino and hotel operations to unlock value in the two sectors. With a market cap of R25-billion, Tsogo is the country’s biggest hotel group. It has 36 hotels and three casinos in Gauteng. The hotel brands cover four market segments, and they include a handful of stand-alone hotels such as the Palazzo (at Montecasino) and the boutique hotel in Rosebank.

ONLINE RESOURCES Cradle of Humankind: www.maropeng.co.za Gauteng Tourism Authority: www.gauteng.net Johannesburg Tourism Company: www.joburgtourism.com

GAUTENG BUSINESS 2022

SunSquare, Southern Sun Hotels, Southern Sun Resorts, Garden Court and StayEasy are among the group’s brands. Marriott International has retained most of its properties. In partnership with the Amdec Group, Marriott spent about R1-billion on the Marriott Hotel M elrose Arch and Marriott Executive Apartments Johannesburg Melrose Arch. Buying into Protea Hotels has also given Marriott access to other African countries. Although all projections about the tourism sector and its potential for growth and for job creation were short-circuited by the Covid-19 pandemic, the fact remains that the sector can grow quickly and it is a good job creator. Growing Gauteng Together (GGT2030) is a plan of action formulated by the Gauteng Provincial Government which intends to transform, modernise and industrialise the provincial economy. The expansion of the tourism sector is seen as one of the key methods of achieving those goals. This was emphasised when the 2020 State of the Province Address included Tourism and Hospitality as one of 10 “high-growth” sectors. ■

Cullinan South Africa Cullinan is a small town in the Gauteng province of South Africa. It is located 30 km (19 mi) east of the city of Pretoria along the diamond route. Cullinan earned its place in history with the discovery of the Cullinan diamond in 1905, the largest rough gem diamond ever found at 3,106 carats. The Cullinan Diamond Mine is also renowned as a source of large, highquality gem diamonds, including Type II stones, as well as being the world’s most important source of very rare blue diamonds. Visit Cullinan by booking a tour through the following touring operators: Premier Diamond Tours: pdtours@iafrica.com Cullinan Tours: www.cullinantours.co.za Fundani Tourism: peterson@fundanitours.co.za Cullinan Tourism & History CC: info@cullinantourismandhistory.co.za

Coordinates: 25°40ʹ22ʺS 28°31ʹ15ʺE

n a n i l l u Visit C

www.petradiamonds.com 35

GAUTENG BUSINESS 2022

OVERVIEW

Construction and property Logistics is a growth sector for property companies.

SECTOR INSIGHT A light-frame steel hospital has been constructed.

ortress REIT took a big step in 2021 towards establishing its Eastport Logistics Park as a significant logistics hub with the signing of an agreement with Pick n Pay to jointly develop the park which is located near to OR Tambo International Airport on the busy R21 highway. Once subdivisions and land transfers have been completed, the supermarket chain will own 60% of the 36ha site while Fortress will fund the expansion of facilities that will take place on the site over time. This partnership with Pick n Pay is another step in Fortress Logistics’ strategy of developing and owning two-thirds of its portfolio in logistics. The park is due to be completed in 2023. Logistics, often taken for granted in normal times, became an even more important component of the supply chain during the global lockdown and in the months that followed, with the second half of 2021 characterised by blockages and delays. Hammanskraal is the site of the construction of South Africa’s first light-frame steel hospital. The need for speed in construction of health facilities in the face of the Covid-19 outbreak made the method adopted perfect for the purpose. Two companies cooperated on the project (pictured), Concor Construction and Futurecon. The thermal efficiency of the walls will help to reduce the cost of maintaining the building. An innovative scheme to build a new township in Gauteng is backed by a retirement fund. The Transport Sector Retirement Fund is building an integrated settlement in the Sedibeng District Municipality south of Johannesburg. The R2.7-billion development includes a shopping centre and will include a mix of housing types. A large housing project south-east of Tshwane has been designated a Strategic Integrated Project (SIP) which means that all of

GAUTENG BUSINESS 2022

the external bulk services will be supplied by the Department of Public Works and Infrastructure. Balwin Properties will develop the residential component of Mooikloof Mega City and the educational, commercial and filling station erven will be sold to a third party. The intention is to build about 16 000 apartments, with the potential to increase to 50 000. The property is on Garsfontein Drive. Another SIP is Malibongwe Ridge, a mixed-use development that is a joint venture between the City of Johannesburg and the Gauteng Department of Human Settlements. Located next to Cosmos City, housing for 5 500 families is expected to cost R2.55-billion to develop. 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 Hartbeespoort 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,

Continued on p38

Providing skills and expertise in consulting engineering. MPAMOT (formerly known as Malani Padayachee & Associates, or MPA) is a 100% black womenowned and managed consulting engineering and development company, with more than 24 years of experience in the infrastructure and built environment. Mrs Malani Padayachee-Saman (right) is the chief executive officer, and Mrs Ipeleng Mkhari (left) is MPAMOT’s chair of the board of directors. MPAMOT Group and our subsidiaries, MPAMOT Africa and MPAMOT Lesotho, have nearly 200 staff members, with offices in Gauteng, the Western Cape, KwaZulu Natal, Lesotho and various site offices. We offer a vast range of services to our clients across Africa, bringing comprehensive capability and proficiency while supplying a great depth of knowledge and service in this rapidlydeveloping sector. As a consultancy with multinational links, we have the ability to draw on a range of international skills and insights from our global network. MPAMOT’s ability to apply broad-ranging expertise and experience gives us a decisive edge in analysing

problems and coming up with creative, sustainable solutions with added value on projects. Our dedicated energy, infrastructure, transport and advisory teams provide a wide resource pool of expertise covering many aspects of engineering, technology and project management. MPAMOT ’s highly skilled, experienced and professional team provides the following expertise to local, regional and global clients: INFRASTRUCTURE • Building structures • Industrial buildings • Civil/structural building services • Water and wastewater • PPCM TRANSPORTATION • Highways • Bridges • Pavements • Transport planning ENERGY • Transmission and distribution • System studies • Thermal • Renewable energy • Wind and photo-voltaic • Environmental and social ADVISORY • Infrastructure finance • Technical advisory • Water advisory • Digital advisory • Development impact • Employment creation

For more information, kindly visit our website www.mpamot.com or email info@mpamot.com

OVERVIEW

Pick n Pay and Fortress REIT are developing the Eastport Logistics Park. Credit: Fortress more than 1.2-million subsidised houses have been built by government entities 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

ONLINE RESOURCES Construction Industry Development Board: www.cidb.org.za Gauteng Partnership Fund: www.gpf.co.za Johannesburg Development Agency: www.jda.org.za Johannesburg Social Housing Company: www.joshco.co.za SA Reit Association: www.sareit.co.za

GAUTENG BUSINESS 2022

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 Newton 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 usable rental space. The Johannesburg Development Agency (JDA) projects range from the upgrading of Constitution Hill, the Faraday Station precinct, work on the Fashion District and pavements of the inner city, renovation of the Drill Hall and the Newtown upgrade. 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 twobedroomed 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. ■

OVERVIEW

Information and communications technology Data centres are expanding and new ones are being built.

he biggest data centre on African soil is under construction SECTOR INSIGHT in Ekurhuleni. Teraco Data Environments secured a R2.5-billion The CSIR has launched a loan in 2021 to build the 50 000m² JB4 data centre on 6ha. The 4IR body. centre will have 38MW of critical power load. The company has five other centres, two of which are in Gauteng. Johannesburg is also one of two South African cities to host a Microsoft Azure data centre. With several global companies choosing to station their South African headquarters in Gauteng, the province is well connected. More than 1 500km of network fibre has been connected throughout the province, with 1 066 sites such as schools, health facilities, libraries and community centres giving community members and entrepreneurs the chance to Teraco’s Isando campus, JB3. Credit: Teraco be connect with the digital world. A Gauteng Growth for the Four th I ndustr ial and Development Agency (GGDA) subsidiary, The Innovation Hub, Revolution (4IR), the South has a programme called eKasiLabs which supports entrepreneurs African Affiliate Centre of the and young people with good business ideas. World Economic Forum. The biggest investors in new technology are banks and The “ Tshepo 1 Million” other players in the financial sector, where technology is rapidly campaign links the provincial lowering the barriers to entry for new businesses. This trend is government with the illustrated by the rapid development of new exchanges which are successful Harambee Youth based on sophisticated ICT hardware and software. Employment Accelerator and One of the provincial government’s stated goals is to get more than 40 large companies. several ICT initiatives to work together. If the work of The B o t h J o h a n n e s b u rg a n d Innovation Hub, several eKasi laboratories, the Tshimologong Ts hw a n e h ave f re e Wi f i precinct, universities and research institutes could be integrated, net wor ks with Tshwane’s a more powerful ecosystem would be the result. covering 780 zones in places A High-Tech Special Economic Zone (SEZ) is another idea that such as libraries, educational is being pursued. Making broadband connectivity and free Wiinstitutions and clinics. Fi available to poor households in the province is another task. Th e S m a l l E n te r p r i s e Gauteng’s Premier will appoint a Digital Transformation Advisory Development Agency (Seda) runs Panel to assist in driving these initiatives. the SoftstartBTI ICT incubator in Various large spatial plans for the province include an element Midrand and Tuksnovation, a whereby these new cities or settlements will be built as “smart cities”. high-tech incubator, at Pretoria The Council for Scientific and Industrial Research (CSIR) in University. Several incentives Pretoria hosts a new body aimed at preparing South Africa relevant to companies and ONLINE RESOURCES educational bodies in the ICT eKasiLabs: www.theinnovationhub.com sector are available from the Independent Communications Authority: www.icasa.org.za Department of Trade, Industry Technology Innovation Agency: www.tia.org.za and Competition (dtic). ■

GAUTENG BUSINESS 2022

OVERVIEW

Banking and financial services One of Johannesburg’s stock exchanges has moved.

SECTOR INSIGHT Nedbank has listed a green bond.

Credit: Unsplash

he flurry of new activity in the financial sector has slowed. Several new banks and exchanges have been launched in South Africa since 2017, most of them in Johannesburg. One of the stock exchanges, 4AX, has rebranded as the Cape Town Stock Exchange and moved to that city while ZAR X had its licence suspended in August 2021 by the Financial Sector Conduct Authority (FSCA) because of concerns related to liquidity and capital adequacy. Of the other new exchanges, Equity Express Securities Exchange (EESE) trades in Black Economic Empowerment (BEE) and A2X had 56 listings and a market cap of close to R4-trillion in October 2021, when Tiger Brands announced that it would do a secondary listing on the exchange. The decision by pharmaceutical giant Aspen Pharmacare to conduct a secondary listing on one of South Africa’s newest exchanges, A2X, suggests good timing by the people behind the latest trend in the country’s financial services sector. A2X has attracted nearly 20 companies in a wide range of sectors in less than two years, with a primary focus on secondary listings. Patrice Motsepe’s African Rainbow Capital is an investor in A2X. The JSE is the world’s 19th-biggest exchange and about 344 companies are listed on the JSE or AltX, the JSE-owned exchange for smaller companies. In December 2021 Nedbank listed a R1.09-billion green bond on the JSE, whose proceeds will be used to fund green residential developments. The bond is floated in the JSE’s Sustainability Segment, which serves as a platform for raising capital for green, social and sustainable investment projects. The bond brings the number of

ONLINE RESOURCES Association for Savings and Investment South Africa: www.asisa.org.za Chartered Institute of Government Finance, Audit and Risk Officers: www.cigfaro.co.za Financial Sector Conduct Authority: www.fsca.co.za

GAUTENG BUSINESS 2022

sustainability instruments listed to 35, with a total issued amount of over R17-billion. The launch by Sanlam Investments of a Sustainable Infrastructure Fund is a sign of the times. The South African state has promised a huge infrastructure drive but in the context of climate change caused by the use of fossil fuels, the investment community is increasingly putting emphasis on sustainability. Sanlam Group will invest R6-billion in the fund and aims to attract a further R5billion from institutional investors. Investments will be made in housing, transport, health, water, waste, communication, conventional energy and renewable energy, a fast-growing sector with enormous potential. Sanlam has entered two partnerships in the insurance market. African Rainbow Life has launched life-cover policies in the low and middle-income market, in association with Sanlam and African Rainbow Capital. Sanlam is also in a venture with Capitec. Naspers Foundry is one of several investment funds looking for opportunities in the financial sector. Insurance technology is of particular interest, together with credit services and payment systems. ■

OVERVIEW

Education and training Tshwane University of Technology now offers asset maintenance.

he Tshwane Institute for Continuing Education ( TICE), a subsidiar y of Tshwane University of Technology Enterprise Holdings ( TUTEH), has signed a partnership with Optimal Assets Maintenance Solutions, a physical asset management engineering and consultancy company. The partnership will create short learning programmes in asset maintenance and research projects will be undertaken together. TICE offers skills development, continuing education and professional development through research. TUTEH, a wholly-owned company of the Tshwane University of Technology (TUT), exists to generate and grow additional streams of income for the university, separate from government subsidies, student fees, donations and bequests. In response to demand for a more skilled workforce, the Provincial Government of Gauteng has promised by 2025 to establish in every district at least two schools of specialisation linked to the 10 high-growth sectors that have been identified. Public libraries and community centres will become places where online courses in artisan and digital skills will be readily available. A focus on water and energy underpins the newly-established Knowledge Pele Academy in Kramer ville, Johannesburg. Independent power producer Pele Green Energy aims to develop skills and entrepreneurship in rural, peri-urban and township communities. The KP Academy has formulated energy and water SETA-approved courses and runs artisan training programmes, learnerships, short courses and workshops. Technical and Vocational Education and Training ( T VET ) colleges are concentrating on 13 trade areas, including bricklayers, millwrights, boilermakers and riggers. Gauteng has eight TVET colleges. The National Skills Authority (NSA) works with Sector Education Training Authorities (SETAs) in carrying out the National Skills Development Strategy (NSDS). The Human Resource Development Council of South Africa (HRDCSA) is an overarching body working on skills development and training.

ONLINE RESOURCES Gauteng Department of Education: www.education.gpg.gov.za National Research Foundation: www.nrf.ac.za TUT Enterprise Holdings: www.tutenterprise.co.za

SECTOR INSIGHT TVET colleges are concentrating on 13 trade areas.

Tertiary Three of South Africa’s top five business schools are in Gauteng: the Wits Business School, the University of S o u t h A f r i c a’s ( U n i s a’s ) Graduate School of Business Leadership and the Gordon Institute of Business Science, on the Sandton campus of the University of Pretoria. Eighty percent of the 1 230 lecturers and researchers at the University of the Witwatersrand ( Wits) have post-graduate degrees, and 27 A-rated scientists work there. The university offers studies in more than 40 schools in five faculties. Pretoria hosts the head office of distance university Unisa. The University of Pretoria (UP) is renowned for research. One of the most famous faculties is veterinary science, which is located at Onderstepoort. The University of Johannesburg (UJ) is a comprehensive institution offering diplomas and degrees through a mix of vocational and academic programmes. The Tshwane University of Technology (TUT) and the Vaal University of Technology (VUT) have several campuses. ■ GAUTENG BUSINESS 2022

Commerce and Industry

Promoting and representing businesses in the economic powerhouse. What is the geographic footprint of the Chamber? Promoting and representing businesses in the economic powerhouse.

The areas we cover are: Randburg, Sandton, Fourways, Midrand

and is Lanseria. What the geographic footprint of the Chamber? The areas we cover are: Randburg, Sandton, Fourways, Midrand and Lanseria. What are the key functions of the Chamber? Primarily to promote business, to facilitate introductions, to be the

What key functions of the provincial Chamber? and government levels, in voiceare ofthe business at municipal, Primarily to promote introductions, toorbe the defending businessbusiness, in areas to of facilitate poor decision-making unintended voice of business at municipal, provincial and government levels, in consequences of various acts that are passed. We also facilitate defending business areas of poor decision-making or closely unintended opportunities intointhe SADC regions and work very with many consequences of various acts that are passed. We also facilitate embassies regarding trade and tourism. opportunities into the SADC regions and work very closely with many embassies regarding trade and tourism.

Linda Blackbeard Linda Blackbeard

What does the Chamber do to support SMMEs? Onedoes of the primary focusSMMEs? areas is the development of What theChamber’s Chamber do to support SMMEs, opportunities for areas them,isbusiness enhancement in One of thefinding Chamber’s primary focus the development of training, helping with business plans,business company registrations, SMMEs, finding opportunities for them, enhancement in giving direction to ideas entrepreneurs might have. Teaching training, helping with that business plans, company registrations, giving them direction ideasventures that entrepreneurs Teachingand them to formtojoint with othermight smallhave. businesses have an toopportunity form joint ventures with other small andlocal havebusinesses an then to tender for work. Webusinesses promote our opportunity then towork tender for work. being awarded in our areas.We promote our local businesses being awarded work in our areas.

Does the RCCI interact with government?

Does the RCCI interact with government? RCCI is affiliated to the only national chamber body, South African RCCI is affiliated to the only national chamber body, South African Chamber of Commerce & Industry (SACCI). Through SACCI important Chamber of Commerce & Industry (SACCI). Through SACCI important issues dealt with directly at government areheard also at heard at issues areare dealt with directly at government level. level. We areWe also provincial level Chamber works theofCity of Johannesburg, provincial level andand thethe Chamber works with with the City Johannesburg, Tradeand and Investment as well as various national government Trade Investment SA SA as well as various national government departments responsible for economic development. departments responsible for economic development. Are there particular challenges? Are there particular challenges? Randburg Chamber would lovelove to embrace moremore businesses. There isThere is Randburg Chamber would to embrace businesses. soso much opportunity around and and we could facilitate more ifmore businesses much opportunity around we could facilitate if businesses The more businesses stand together with their of Linda Blackbeard Blackbeard ran joined. The more businesses stand together withlocal theirchamber local chamber of Linda ran her herown own joined. thethe stronger our our voice will be municipal, provincial and and interior design design and commerce, stronger voice willatbe at municipal, provincial interior and hospitality hospitality commerce, company before taking up the government level. company before taking up the government level. reigns as CEO of the RCCI. She reigns as CEO of the RCCI. She is the SACCI Chamber Forum What does the future hold? What does the futureof hold? isChairlady the SACCI Chamber Forum Electronic Certificate Origin programme for export saves time and a member of Our Our Electronic Certificate of markets. Origin programme formembers export saves Chairlady and a member of Businesses and can time the South African Chamber of and is designed for South African andforward is designed for South African markets. Businesses and members the South African Chamber to renewed focus, positive opportunities, and facilitation in can Commerce and Industry boardof look look forward renewed positive opportunities, and facilitation in Commerce board the SADC regiontofor businessfocus, growth and opportunity. of directors.and SheIndustry was awarded the SADC region for business growth and opportunity. ofthe directors. She wasinawarded Pan African Award 2018 in the Pan African Award in 2018 in Contact details recognition of her achievements Contactaddress: details Unit G8 Atrium Terraces, 272 Oak Avenue, in the Continental Lifetime recognition of her achievements Physical sector, CEO Global Most inAchiever the Continental Lifetime Randburg, Gauteng 2194. Tel: G8 086 Atrium 101 9218Terraces, | Fax: 086 212 Physical address: Unit 2724407 Oak Avenue, Influential Women inGlobal Business & Email: admin@rcci.co.za | Website: www.rcci.co.za Achiever sector, CEO Most Randburg, Gauteng 2194. Tel: 086 101 9218 | Fax: 086 212 4407 49 Government 2018 Awards. Influential Women in Business &

BIOGRAPHY BIOGRAPHY

Government 2018 Awards.

GAUTENG BUSINESS 2022

Email: admin@rcci.co.za | Website: www.rcci.co.za 49

Randburg Chamber, which was founded in 1959,

OVERVIEW

Development finance and SMME support Workspaces are available for makers in wood.

ive workshops are to be established in Gauteng to assist 100 artisans with space to work with wood and to give them connections to established businesses who might contract them. Wine and spirits seller Pernod Ricard is teaming up with the Gauteng Department of Economic Development to try to create 1 000 new jobs through access to machinery and to a virtual showroom where makers can display their creations to prospective online clients. The City of Ekurhuleni Municipality has also donated a warehouse in Thokoza. One of the beneficiaries is Hosea Matlou (pictured), a self-taught carpenter and woodwork instructor who designs and makes furniture, picture frames and mirrors out of Hosea Studios. Pernod Ricard ran a campaign (Phakamisa ispirit) over the festive season to raise money for artisans to attend SETA-accredited courses covering business management, manufacturing, technology and accounting. Equipment manufacturer Smith Capital Equipment has received a grant from Isuzu Motors SA to help it make a cherry picker. The company, which makes a range of aerial platforms, is receiving the money as part of the motor company’s enterprise development programme. In a drive to spur economic development in Gauteng’s townships, a Township Economic Development Bill will do away with restrictive bylaws. At the same time, taxi ranks are going to be rezoned and developed to allow for the growth of retail outlets and services such as mechanics and panel-beaters. Gauteng has 14 registered co-operative banking institutions serving over 16 000 member-owners, with over R100-million in savings and R150-million in assets. The township market of about 250 000 township households holds enormous potential for collective buying. The Gauteng Growth and Development Agency (GGDA) is linking large companies with small businesses at Special Economic Zones (SEZs). The aim is to create a pipeline for SMMEs and to entrench localisation in sectors such as the automotive industry. The Incubation Centre at Nissan’s assembly plant in Rosslyn north of Pretoria hosts eight new businesses at a time. They receive

ONLINE RESOURCES Gauteng Growth and Development Agency: www.ggda.co.za National Empowerment Fund: www.nefcorp.co.za Small Enterprise Development Agency: www.seda.co.za

GAUTENG BUSINESS 2022

SECTOR INSIGHT Isuzu Motors SA is supporting a local equipment manufacturer.

support through subsidised rental and mentorship and training. The Automotive Industry Development Centre (AIDC), a subsidiary of the Gauteng Growth and Development Agency (GGDA), manages the centre. About half of South Africa’s formal SMMEs operate in Gauteng and more than half are in the wholesale and retail sector and the accommodation sector. The next most popular sectors are community, social and personal services. The Small Enterprise Development Agency (Seda) is a subsidiary of the DSBD and gives non-financial suppor t to entrepreneurs through training, assistance with filling in forms, marketing and creating business plans. It helps small businesses draft applications for loan finance. Several of Seda’s technology incubators are in Gauteng. ■

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Gauteng Business 2022

Articles inside

Development finance and SMME support

Education and training

Banking and financial services

ICT

Construction and property

Tourism

Mining

Transport and logistics

Energy

Manufacturing

Agriculture

Key sector contents

Going green

Regional overview