Gauteng Business 2023/24

THE GUIDE TO BUSINESS AND INVESTMENT IN THE GAUTENG PROVINCE

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2023/24 EDITION

GAUTENG BUSINESS

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Sasol’s Ekandustria Operations Sasol’s Ekandustria Operations, along with its joint venture partners, manufactures, markets and distributes commercial explosives, a wide range of specialised blasting accessories, a diversified range of bulk explosives used in underground mines, opencast mines and quarries, and

supplies value added services to Southern Africa’s leading mining companies.

We also market a range of premium explosive products for exploration, construction as well as surface and underground mining, supporting our purpose to innovate for a better world.

Ekandustria Operations is situated at the Ekandustria Industrial Park in the City of Tshwane’s Region 7 in Gauteng.

More information on all explosives products sold by Sasol are available at https:// products.sasol.com.

CONTENTS Gauteng Business 2023/24 Edition

Introduction Foreword

A unique guide to business and investment in Gauteng.

5

Special features Regional Overview of Gauteng

6

Special Economic Zones are multiplying

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A move to Johannesburg by a De Beers’ division has strategic significance for the Gauteng economy, not least in supporting the idea of Special Economic Zones as sector accelerators.

Gauteng is investing in SEZs as a way of supporting specific sectors and boosting regional economies.

Economic sectors Agriculture

20

Mining

21

Energy

22

Oil and gas

24

Development finance and SMME support

34

Banking and financial services

25

Banking and financial services

25

Education and training

35

Agricultural innovators are solving problems.

Excellence in manufacturing is being rewarded.

Carbon capture research could transform industry.

A shortage of engineers is being addressed.

Citibank is financing a major urban development.

Transport and logistics

27

Manufacturing

28

Tourism

30

ICT

33

Cellphone towers are solving traffic problems.

Manufacturers are investing in new plants and offices.

The Southern Sun brand has been revived.

Many companies choose Gauteng for their headquarters.

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Construction and property 34 Green is cool.

Maponya Mall is lending a hand.

Citibank is financing a major urban development.

A Robot and Sensor School has taken off.

References 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 Managing director: Clive During Online editor: Christoff Scholtz Designer: Tyra Martin Production: Yonella Ngaba Ad sales: Gavin van der Merwe Sam Oliver Gabriel Venter Vanessa Wallace Tahlia Wyngaard Graeme February Shiko Diala Administration & accounts: Charlene Steynberg Kathy Wootton Sharon Angus-Leppan Distribution and circulation manager: Edward MacDonald Printing: FA Print

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he 2023/24 edition of Gauteng Business is the 14th 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 Special Economic Zones is included in this edition. SEZs are a major plank of industrial policy at national level and Gauteng is enthusiastically rolling out sector-specific zones in every district. The Vaal SEZ, which is preparing the way for ratification by national authorities, is the newest zone intended to boost development.

All of the main economic sectors of the provincial economy are reviewed, ranging from agriculture, transport and logistics, energy and manufacturing through to education and training. Like the rest of the world, Gauteng is adapting to and innovating in the field of energy. 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 and Sibanye-Stillwater making land available on the West Rand for solar farms are indicators for the future.

To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.globalafricanetwork.com under e-books. Updated information on Gauteng is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title and the new addition to our list of titles, The Journal of African Business, which was launched in 2020. ■

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 | ArcelorMittal; CHIETA; BMW Group; Busmark; Ford South Africa; GREENinc Landscape Architecture and Urbanism; Hytera; Indlu Living; Maponya Mall; Montego Pet Nutrition; Petra Diamonds;

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 Rahm Equipment; Redefine Properties; Riverfield Precinct; Sun International; The Innovation Hub; The Love Trust; University of Pretoria.

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.

A REGIONAL OVERVIEW OF

GAUTENG The Cullinan Mine is expecting its expansion project to start producing in 2024.

A move to Johannesburg by a De Beers division has strategic significance for the Gauteng economy, not least in supporting the idea of Special Economic Zones as sector accelerators. The Vaal SEZ is the latest initiative to move forward, with the goal of revitalising the Vaal regional economy.

By John Young

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Beers’ choice is also a reflection of a long-term shift in the nature of the Gauteng economy that has for decades been moving away from resources and towards services.

The move is also in line with the policies of national and provincial government to support Special Economic Zones (SEZs), in this case the Gauteng Industrial Development Zone (GIDZ).

The aim is to attract entities engaged in mineral beneficiation to the zone, with this cluster being conveniently located near to the OR Tambo International Airport.

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.

Three district municipalities across the south of Gauteng are to host to the Vaal Special Economic Zone ( Vaal SEZ) which will have

old is what made Johannesburg but diamonds are in the news today. Gold mining continues in Gauteng, and new technologies are making it profitable to work on historic tailings, but the industry is now one of many rather than being the thing that defines the city or the province.

Gauteng diamonds first made a big splash when the huge Cullinan diamond was discovered in 1905. It went on to become part of the crown jewels of the British monarch. Petra Diamonds recently approved another expansion project which will cost $173-million and is expected to start producing in 2024 and reach steady state in 2026.

As of January 2023, De Beers Group’s Sightholder Sales business started operating out of Sky Park Industrial in Johannesburg, having been in Kimberely in the Northern Cape since diamonds were first discovered. Although the move has significance for the mining sector, De

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SPECIAL FEATURE multiple sectors represented and be located at multiple sites. The area already has many industrial assets and infrastructure and is well served by transport routes. Among the targeted sectors are agro-processing, logistics, the lowcarbon economy, light manufacturing and the Blue Economy, taking advantage of the Vaal River.

Gauteng accounts for 45% of South Africa’s manufacturing capacity, so the province is well placed 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 and Development Agency (GGDA), six out of 10 foreign direct investment (FDI) projects in Gauteng have flowed to the manufacturing sector and its subsectors.

The GGDA is an implementing agency which aims to facilitate business enablement, develop small, medium and micro enterprises (SMMEs) and promote investment and job creation.

Focussed suppor t 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

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 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.

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%). ■

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Special Economic Zones are multiplying Ford Motor Company was an initiator of the Tshwane Automotive SEZ (TASEZ).

Gauteng is investing in SEZs as a way of supporting specific sectors and boosting regional economies.

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employment creation. The purpose of the SEZ programme is to: expand the strategic industrialisation focus to cover diverse regional development needs and context; provide a clear, predictable and systemic planning framework for the development of a wider array of SEZs to support industrial policy objectives like the IPAP and National Development Plan (NDP); clarify and strengthen governance arrangements; expand the range and quality of support measure beyond provision of infrastructure; and provide a framework for a predictable financing framework to enable long-term planning. The same principles apply to various Industrial Parks which are either being built or revived.

Apar t from attracting foreign direct investment (FDI) and boosting employment, SEZs can be instrumental in adding new sectors or subsectors to an economy. An obvious candidate in that category is renewable energy which needs manufactured components such as solar panels and towers for wind turbines.

Incentives include tax breaks from the South African Revenue Service, subsidised interest rates from the Industrial Development Corporation (IDC),

he Gauteng City Region is a big driver of the South African economy, with particular strengths in manufacturing, retail, industrial production, real estate and finance.

Five corridors for concentrated economic growth have been identified and within those areas, Special Economic Zones have either been inaugurated or are to be rolled out. At the same time, there are plans to link these developments with initiatives to revive or boost the economies of townships and to focus in a more general sense on 10 high-growth sectors.

As defined by the National Department of Trade, Industry and Competition (dtic), Special Economic Zones (SEZs) are geographically designated areas of a country set aside for specifically targeted economic activities, supported through special arrangements (that may include laws) and systems that are often different from those that apply in the rest of the country.

South Africa’s Industrial Policy Action Plan, IPAP, identifies SEZs as key contributors to economic development. They are growth engines towards government’s strategic objectives of industrialisation, regional development and GAUTENG BUSINESS 2023/24

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PHOTO: Ford

SPECIAL FEATURE

of the GGT2030 economic development strategy.

The plan aims to facilitate foreign and domestic investors to expand economic infrastructure development throughout the greater Gauteng community nodal zones located in the five economic corridors of the province.

OPERATIONAL SEZs Tshwane SEZ Tshwane Automotive SEZ (TASEZ) was initiated by the Ford Motor Company to help expand its automotive footprint in South Africa through the attraction of its global suppliers into the country. This ambition was further enhanced by the Gauteng government’s plan of developing a new Automotive City in Tshwane, and aligns with the SA Automotive Masterplan 2035, which sets targets to increase localisation.

TASEZ is the outcome of partnerships between the dtic, the Gauteng Provincial Government, the City of Tshwane and the Ford Motor Company of Southern Africa. The Automotive Industry Development Centre (AIDC), a subsidiary company of the GGDA, has been tasked to deliver TASEZ on behalf of the Gauteng Provincial Government.

As of December 2022, 10 automotive component manufacturing companies that have been set up at TASEZ were in full production. More than 4 618 temporary construction jobs had been created while Phase One will add 2 088 permanent skilled jobs.

subsidies for employees earning below a certain level, training grants from the dtic and discounts from national electricity utility Eskom. The SEZ is also a customs-controlled area. The SEZs are located in a municipality and for the SEZ programme to succeed, municipalities must be part of the planning, design and implementation of these spatial development catalysts. The local government sector is, therefore, an important stakeholder in the drive to build sustainable and successful SEZs. The NDP is a broad-strokes plan that seeks to coordinate development in a range of sectors and promotes ambitious infrastructural projects. South Africa’s most recent IPAP has a manufacturing focus, and this is also the area on which SEZ are concentrating.

Gauteng has enthusiastically embraced the idea of SEZs as drivers of growth.

Growing Gauteng Together 2030, or GGT2030, is the blueprint for the recovery of provincial economy. The programme supporting SEZs falls squarely within that broader framework and is being implemented by the Gauteng Growth and Development Agency (GGDA).

At the core of the GGT2030 is ensuring that economic interventions are implemented to modernise and industrialise high-growth sectors in Gauteng. The SEZ programme is part

OR Tambo SEZ The OR Tambo International Airport (ORTIA) IDZ officially opened in March 2019. It aims to develop

Busmark is an established manufacturer in the West Rand.

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Green-energy generation is one of the most important sectors that will be focused on within the Vaal SEZ, which will act as a catalyst to boost economic growth in the Vaal region. Other sectors of interest include green hydrogen, green steel, greenhouse farming and agro-processing, aerospace and defence parts and component manufacturing and gateway logistics.

All four local municipalities in Sedibeng District Municipality have made land available for this SEZ and local investors made several commitments at the Sedibeng Investment Conference for a project which is anticipated will significantly boost the Vaal regional economy through multi-site, multi-sector projects throughout the region.

Excellent infrastructure, closeness to markets and close links to several tertiary institutions give the Vaal SEZ a competitive edge.

The OR Tambo International Airport (ORTIA) IDZ was launched in 2019. land around the airport to stimulate economic development. ORTIA supports the beneficiation of precious metals and minerals sector, with a focus on light, high-margin, export-oriented manufacturing of South African precious and semi-precious metals. The multi-site development at ORTIA consists of several industry-specific precincts and will be developed in phases.

Jewellery manufacturing companies are locating to the ORTIA IDZ, contributing to a sustainable and diversified mining-beneficiation value chain. OR Tambo International is responsible for 84% of all air-cargo traffic in ACSA’s network, giving the IDZ a competitive boost through its proximity to the airport.

The Jewellery Manufacturing Precinct is located in ORTIA Precinct 1. Each precinct has been designed to foster cohesion supporting circular and sustainable development practices. De Beers has chosen to locate its relocated operations adjacent to the IDZ. Other sectors being encouraged to set up at the IDZ include diamond beneficiation, agro-processing, pharmaceuticals, advanced manufacturing and capital equipment. Logistics remains a key sector and anchor tenants are being asked to consider expanding their portfolio of investments.

PLANNING PHASE The following SEZs are in the planning process, which includes preparation of the paperwork to apply for designations to the dtic. The timeframe for these projects is two to three years.

West Rand SEZ With many of the mines that underpinned the West Rand’s economy for so long reaching the end of their lives, alternatives are needed. The provincial government and mining houses are working on various options for closed mines, but the West Rand SEZ is being designed to promote investment in new fields. These include urban agriculture, green hydrogen and solar power. At the same time, the Busmark manufacturing plant in Randfontein remains a pillar of that sector and it could be a central tenant of such an SEZ. High Tech SEZ The High Tech SEZ is part of the broader Lanseria Smart City project. President Cyril Ramaphosa has referred to the proposed Lanseria Smart City project as South Africa’s first post-apartheid city.

It is envisaged as a hub for the digital technology and services corridor, which in turn is to be anchored by the new High Tech SEZ. ■

COMING ON STREAM Vaal SEZ The Vaal SEZ Master Plan has been completed and the SEZ designation application to the dtic has been finalised.

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PHOTO: ACSA

10 REASONS WHY YOU SHOULD INVEST IN SOUTH AFRICA

01.

HOT EMERGING MARKET Growing middle class, affluent consumer base, excellent returns on investment.

02.

MOST DIVERSIFIED ECONOMY IN AFRICA

South Africa (SA) has the most industrialised economy in Africa.

It is the region’s principal manufacturing hub and a leading services destination.

LARGEST PRESENCE OF MULTINATIONALS ON THE AFRICAN CONTINENT SA is the location of choice of multinationals in Africa.

Global corporates reap the benefits of doing business in SA, which has a supportive and growing ecosystem as a hub for innovation, technology and fintech.

04.

03.

FAVOURABLE ACCESS TO GLOBAL MARKETS

05.

The African Continental Free Trade Area will boost intra-African trade and create a market of over one billion people and a combined gross domestic product (GDP) of USD2.2-trillion that will unlock industrial development. SA has several trade agreements in place as an export platform into global markets.

SA has a progressive Constitution and an independent judiciary. The country has a mature and accessible legal system, providing certainty and respect for the rule of law. It is ranked number one in Africa for the protection of investments and minority investors.

06.

ABUNDANT NATURAL RESOURCES

SA is endowed with an abundance of natural resources. It is the leading producer of platinum-group metals (PGMs) globally. Numerous listed mining companies operate in SA, which also has world-renowned underground mining expertise.

08.

ADVANCED FINANCIAL SERVICES & BANKING SECTOR SA has a sophisticated banking sector with a major footprint in Africa. It is the continent’s financial hub, with the JSE being Africa’s largest stock exchange by market capitalisation.

PROGRESSIVE CONSTITUTION & INDEPENDENT JUDICIARY

07.

WORLD-CLASS INFRASTRUCTURE AND LOGISTICS

A massive governmental investment programme in infrastructure development has been under way for several years. SA has the largest air, ports and logistics networks in Africa, and is ranked number one in Africa in the World Bank’s Logistics Performance Index.

YOUNG, EAGER LABOUR FORCE SA has a number of world-class universities and colleges producing a skilled, talented and capable workforce. It boasts a diversified skills set, emerging talent, a large pool of prospective workers and government support for training and skills development.

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09. 10.

EXCELLENT QUALITY OF LIFE

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

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Reigniting industrialisation in the Vaal Region The Vaal Special Economic Zone (Vaal SEZ) is showing excellent progress on the path to being formally designated, bringing closer its potential to boost growth and job creation.

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Targeted investment strategy There is a strong case for investors to join and benefit from a green energy-fuelled reindustrialisation of the Vaal region. This will transform this industrial basin into the country’s preeminent hub for low-carbon manufacturing and renewable energy production.

• High-impact investments into the food, agriculture and agro-industries value chain • Investment in gateway logistics (air, road, rail, river) to exploit the locational advantages of the Sedibeng District • Investment in the Blue Economy and the Tourism Sector using the advantages of the Vaal River • Building a Smart City along the Vaal River to enable SEZ development and to drive urban regeneration • Building strong local linkages between township/rural economies with the value chains that the Vaal SEZ will develop and strengthen

he Vaal SEZ’s vision states that, “By 2030, an industrialised, globally competitive, export-driven, manufacturing-biased regional economy,” will exist. The Vaal SEZ is connected to other national and provincial initiatives in Gauteng, including Growing Gauteng Together (GGT2030) which aims to create linkages and the integration of the host province’s growth strategies with the local economic development strategies of the host municipalities to national economic initiatives.

Where the Vaal SEZ is unique is that various satellite hubs will work out from a central hub like spokes in a wheel, thus exploiting the existing strengths of particular sites and spreading economic benefits across the area more widely. The Vaal SEZ is to be created within the Sedibeng District Municipality, which already has several attractive assets for wouldbe investors.

Moving forward: Progress on the road to Vaal SEZ status

Investor presentations: the Sedibeng Investor Conference and the SMME Conference were held, informing the investor community about the plans for the Vaal SEZ, in 2021.

GAUTENG BUSINESS 2023

Land allocations made: local municipalities have allocated land which will be converted into Land Lease Agreements.

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SEZ Masterplan completed: June 2022.

boost economic growth and create jobs in the Vaal r

Lesedi

Masterplan adopted The 289-page Masterplan for the SEZ includes sections relating to energy, infrastructure, the policy environment and socio-economic impact, legal and governance issues, risk management, environmental and spatial considerations, investment approach, stakeholder management and the financial plan.

The area Three local municipalities make up the Sedibeng District Municipality. Midvaal is the most rural of the three local municipalities, with urban development concentrated along routes R59 and R82 in the north-western parts. Midvaal has strong regional linkages to major economic cores. These include routes R59 and R82 and the Vereeniging-Germiston railway line. The major urban concentration of Lesedi Local Municipality is located in Heidelberg/Ratanda nodes, along the N3 freeway at its intersection with Provincial Route R42, east of the Suikerbosrand Nature Reserve.

Heidelberg is the seat of the municipality. Emfuleni in the west is home to the towns synonymous with steel, Vanderbijlpark and Vereeniging, and the Sasol petrochemical complex to the south of Sedibeng in the Free State Province.

The Sedibeng District, host of the proposed Vaal SEZ, comprises three INVESTOR VALUE PROPOSITION local municipalities and is strategically located both in terms of highways and railways and in relation to three economically-powerful Enabling framework metropolitan municipalities, Johannesburg, Ekurhuleni and Tshwane.

Key outcom The Va infrastru Strong government support, robust legal and regulatory framework. Strong commercial and • It will p decarbo significant economic and social returns, including considerable • To beco incentives and rebates. amount of planning has already gone into the concept which ties • To be a in to development goals and frameworks anchor S Locationalatbenefit local, regional and national level.

• To achie South Africa’s economic hub, sound logistics society, networks and infrastructure.

The area jobs for The three local municipalities which make up the Sedibeng District Municipality are predominantly rural.

Process Infrastructure services Midvaal shop is the most rural ofand the three One-stop services thelocal Vaalmunicipalities, SEZ’s Shared The Vaal S with urban development concentrated along routes Services and investor access to serviced land and end of Jun R59 and R82 in the north-western parts of the municipal been com funding options. area. Midvaal has strong regional linkages to major A pipelin economic cores. establishe Management capability Lesedi is also primarily rural, with the major urban be initiate Independent body, cooperation concentrationmanagement located in Heidelberg/Ratanda nodes, priority inv along the N3 freeway at its intersection Provincial The SEZ between dedicated bodies, local,with regional and Route government.

R42, east of the Suikerbosrand Nature Reserve. by the end national

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SOUTH AFRICAN BUSINESS 2023

MoU signed with North West University and Vaal University of Technology to collaborate on revitalisation and industrialisation of Vaal Region, February 2023.

Appointment of engineering consultancy: to establish townships and to conduct Environmental Impact Assessment, Q1 of FY 2023/24.

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Application for official designation as SEZ: Gauteng MEC, approved; sent to Ministers of Finance and Trade, Industry and Competition, Q1 of FY 2023/24.

GAUTENG BUSINESS 2023

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Gas can boost the national Smart mobility solutions economy startforthe country The CSIR is helpingand find solutions transport systems and operations in Gauteng. on the path to zero emissions

CSIR research group leader for transport infrastructure management, Dr Phindile Masangane, the CEO of Petroleum Agency Khangwelo Muronga, says his team helps enable South Africa to migrate to South Africa, notes that recent gas discoveries could swifter, more efficient and smarter mobility. support the country’s economic recovery and its transition to a clean energy future.

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mar t transpor tation requires the integration of modern technologies into transportation These oday the biggestinfrastructures. threat to humanity is includechange, cloudand computing, wireless climate the biggest threat to communication, location-based ser vices, SA’s social stability is the high unemploycomputer mentvision, rate. and more. In Gauteng, the CSIR collaborating with thefrom Gauteng As has the been global economy recovers the Department of Roads and Transport devastating effects of Covid-19, demandto foraddress oil and roadhas maintenance issues. The organisation also gas gone up significantly.

If there washas ever a developed a system the general public need for proof that oilthat andallows gas still drive the global to reportrecent potholes and demonstrate traffic lights, the improving economy, statistics trend. overall road sconditions easy ofindustrialised mobility. on The world’ developedand economies Smar t and mobility encompasses various the back of oil gas production and use. Now, just as interconnected Africa is on the cusp oftechnological being a significantcomponents gas producer andistransportation Thisforincludes and making plans infrastructure. to use such gas power gasoline and electric vehicles, non-motorised generation, industrialisation and economic growth, mobility as car-sharing the negativeoptions effects of such greenhouse gas emissionsand on ride-sharing and on-demand the environment programmes, have become undeniable. ridesharing services.

It to also includes other The urgency for action mitigate the risk of forms of transportation likedebatable. bicycles, Between scooters, climate change is no longer autonomous vehicles, andfive trains.

The concept 1990 and 2018 the top emitters have of smar t more mobility extends to designing produced than 50% of greenhouse gas infrastructure with lanes for specific emissions.

During thededicated same period SA contributed GAUTENGBUSINESS BUSINESS2022 2023 GAUTENG

modes of transportation, especially the minibus taxis transport about 80% 1% to that global emissions.

This is of bythe nopublic. measure insignificant, and as a responsible global citizen SA Transport infrastructure must take steps to reduce its carbon footprint.

Almost everyone usesConvention roads and bridges on a The UN Framework on Climate regularwas basis, making them thetomost significant Change established in 1992 coordinate the transportation medium in emerging nations global response to mitigate the threat of climate like South Africa. Roads are countries crucial fortoboosting change, and specifically to get commit development raising that people’s toeconomic policies and plans that and will ensure the standards of temperature living. Roadsrise provide for average global is keptaccess less than people to pre-industrial marketplaces,levels. workplaces, hospitals, 1.5°C above clinics, educationalEnergy facilities, sports venues, and The International Agency (IEA) proposes holiday destinations.

The CSIRs energy has a sound trackthat to achieve this goal the world’ sector must record providing solutions reach net in zero emissionssmart-mobility by 2050. In its global energyto assist infrastructure management.that net zerowith 2050road pathway the IEA acknowledges Among are: there is nothese singlesolutions pathway to this goal, as developed and countries face different socioeconomic • developing The maintenance-reporting solution challenges and havebridge contributed disproportionately • The Struman and structures solutionto greenhouse gascontrol emissions to date.

• The traffic centre management systems What a number of environmental interest groups to be ignoring in theof IEARoads “Net Zero Theseem Gauteng Department and byTransport’s 2050” report is the acknowledgment thatsystem there Road maintenance reporting will becreated a differentiated approach to aMEC clean was at the request of the forenergy Roads, future, takingand intoInfrastructure, consideration the the Honourable cost of the Transport new clean energy technologies and the economic Jacob Mamabolo.

The CSIR created a solution consequences transitioning for maintenance each country. The for reportingofon normal road and IEA emphasises that countrythe must develop its construction thateach enables maintenance own pathway to a net real-time zero emission future. on their teams to provide updates S o uactivity, t h A f rthis i c a’sincluded e c o n othe m ycreation h a s bofe ethe n daily predominantly powered by coal, which is also a PotholeFixGP application. significant contributor to the country’s economy in terms of GDP as well as employment.

PotholeFixGP In CSIR addition to coal, SA imports oil, gas and The created the PotholeFixGP application, petroleum for its energy needs as the which canproducts be downloaded from the appropriate upstream petroleum is stillthis at asolution. nascentIt mobile app stores toindustry supplement stage.

The two to recent world-class gas was designed function on Appleoffshore and Android

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smartphones. The approach makes it possible for the general public to report on traffic lights and potholes on the road system. After reviewing the complaints from the public, the appropriate maintenance teams will then attend to the reported issues and rectify any anomalies either as filling of any reported potholes or traffic lights malfunction.

Smart Mobility Solutions System – Struman The isCSIR created the structure management Renergen 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 explorationand/or throughBrclose system,in expediting namely Struman idge management of acreage allocation work Management system as a tool to help and authorities programmes.

These positive factorsduring createthe a analyse the information gathered conducive for PASA to pursue inspectionsenvironment of road infrastructure.

A certified its mandateinspector of attracting into theof structures whoinvestment visits the places upstream petroleum industry. interest can conduct the inspections physically, draft provides greater policy certainty or The it can bebill done by sending a drone to the and a stable environment for take investment locations to record video and picturesinof the African and gas sector. Itcan provides the South structure.

Theoilskilled inspector utilise security of tenure by to combining thethe rights forofthe these subsequently examining state the exploration, development andon production phase structures and then advising remedial actions. under one permit.

The method allows government agencies to cut As far as the of exploration over expenditures onissuing time-consuming andrights specialised the last 18and months is concerned, a total of 21of services also allows for prioritisation exploration rightsneed for both onshoreattention and offshore structures that immediate and were during this period, including renewals thoseissued that require routine maintenance.

■ 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

TULI BASIN Tuli

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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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Gauteng

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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)

34

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A new Body Shop forms part of Ford South Africa’s R15.8-million investment in its Silverton Assembly Plant in Pretoria. The production line is designed around 493 robots that help to produce Ford Rangers for the domestic market and export markets. PHOTO: Ford South Africa

KEY SECTORS Overviews of the main economic sectors of Gauteng Agriculture 20 Mining 21 Energy 22 Oil and gas 24 Banking and financial services 25 Transport and logistics 26 Manufacturing 28 Tourism 30 Information and communications technology 31 Construction and property 33 Development finance and SMME support 34 Education and training 35

OVERVIEW

Agriculture Agricultural innovators are solving problems.

SECTOR INSIGHT Agricultural concerns were winners at the annual Gauteng Accelerator Programme (GAP) innovation competition.

T

he GAP awards, pictured, are run by The Innovation Hub, the innovation agency of the Gauteng Province, a wholly owned subsidiary of the Gauteng Growth and Development Agency (GGDA).

In the GAP Biosciences category Igagasi Biotech was awarded second place for its Cannconverter, which aims to use sustainable green chemistry to carry out a cost-effective enzymatic conversion of cannabis. Agang Bokamoso Farms achieved second place in GAP Green for a pipe system that keeps feeding plants even when irrigation systems fail due to power outages or pump failures.

Category winners receive a share of R3-million in seed funding to further incubate their innovation at The Innovation Hub’s Business Incubations programmes. Since 2011, the GAP has attracted more than 1 600 entries across five categories.

The photographs that appeared in the national media of the destruction caused by sinkholes in March 2023 in the Khutsong area focussed on homes and schools. However, experts from the African Centre for Disaster Studies also raised the issue of food security being affected by such natural disasters. Khutsong is in the Merafong City Local Municipality and close to the town of Carltonville, where many mines have closed down in recent years.

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. Linking producers to the value chain will benefit township economies.

Gauteng’s agricultural sector is focussed on producing

ONLINE RESOURCES Agricultural Research Council: www.arc.agric.za South African Poultry Association: www.sapoultry.co.za The Innovation Hub: www.theinnovationhub.com

GAUTENG BUSINESS 2023/24

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vegetables. There is commercial farming in the southern sector of the p rov i n c e ( p a r t o f S o u t h 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. K anhym 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. ■

OVERVIEW

Mining Excellence in manufacturing is being rewarded.

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he first MEMSA Manufacturing Excellence Awards unearthed some innovative and ambitious projects.

Mining Equipment Manufacturers of South Africa (MEMSA) is an industry cluster established in 2016 with the support of the Department of Trade, Industry and Competition (dtic).

The 2022 awards evening was held together with SEIFSA Awards for Excellence. SEIFSA is the Steel and Engineering Industries Federation of Southern Africa.

The MEMSA awards are supported by the South African Mining Extraction Research, Development and Innovation (SAMERDI) programme, which in turn is backed by the Department of Science and Innovation (DSI) and the Minerals Council South Africa (MCSA).

Awards were given in four categories: Customised Customer Service, Localised Supply Chain, Manufacturing Solutions and MEMSA Member Manufacturer of the Year 2022.

The Localised Supply Chain award was shared by Buraaq Mining Services and Rham Equipment, a South Africa OEM manufacturing hard and soft-rock mining machinery.

NTGR Engineering Projects won the Manufacturing Solutions award for implementing GIS-based and advanced precision manufacturing technology. The award for Customised Customer Service went to ProProcess Engineering, and the MEMSA Member Manufacturer of the Year was Bell Equipment.

MEMSA’s headquarters are located in the Mandela Mining Precinct in Melville, Johannesburg. The Precinct is a public-private partnership between the DSI and the MCSA and is managed by the Council for Scientific and Industrial Research.

Gauteng is home to most of the research and training bodies associated with mining. Sibanye-Stillwater 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. Mintek is an autonomous body based in Randburg which receives about 30% of its budget from the Department of Mineral Resources.

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. Pretoria University has a Department of Mining

ONLINE RESOURCES Council for Geoscience: www.geoscience.org.za MEMSA: www.memsa.org.za Minerals Council South Africa: www.mineralscouncil.org.za

21

SECTOR INSIGHT Gauteng is the home of mining research.

A MEMSA award winner. Rahm Equipment makes roofbolters for the mining industry.

Engineering, the University of South Africa offers three national diplomas in mine-related fields, the University of Johannesburg has mine-surveying courses and the Vaal and Tshwane Universities of Technology have engineering faculties. Harmony Gold’s acquisition strategy, including the purchase from AngloGold of Moab Khotsong, will result in it being the country’s biggest gold producer. 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. Cullinan diamond mine is engaged in an expansion programme called the C-Cut Phase 1 project.

Cullinan is famous for its rare blue diamonds. ■ GAUTENG BUSINESS 2023/24

OVERVIEW

Energy Carbon capture research could transform industry.

SECTOR INSIGHT BMW will make hybrids from 2024.

If carbon captured from the steel-making process could be repurposed, the energy transition could happen more quickly.

O

ne way of cleaning up the energy landscape is to switch fuel sources from fossil fuels to renewables such as solar and wind. And the world is doing a lot of that.

Another way is to use renewable energy to clean up or repurpose the emissions coming from fossil fuels. That’s what Sasol and ArcelorMittal South Africa are looking into in Gauteng.

Two of South Africa’s biggest and most successful companies are joining forces to try to convert captured carbon from ArcelorMittal South Africa’s Vanderbijlpark’s steel plant into sustainable fuels and chemicals using renewable energy. The carbon capture and utilisation (CCU) study supplements work being done by the Council for Geoscience in Mpumalanga.

Both industrial operators have a stated ambition to achieve net-zero carbon emissions by 2050. Sasol is also working with the steel producer in the Western Cape on a green steel and green hydrogen and derivatives study.

“We are very excited to be leading the pre-feasibility and feasibility studies on these two potential projects that hold promise to unlock South Africa’s potential to be a global green hydrogen and derivatives player. These studies are anchored by the local need for green hydrogen and sustainable products, cementing Sasol as the leading contributor to the development of Southern Africa’s green hydrogen economy,” says Priscillah Mabelane, Executive Vice President for Sasol’s Energy Business.

The Vaal CCU study will explore transporting up to 1.5-million tons GAUTENG BUSINESS 2023/24

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a year of industrial CO2 captured f ro m t h e Va n d e r b i j l p a r k Works to the Sasolburg and Ekandustria operating facilities in Sasolburg which will then, together with green hydrogen, eventually replace natural gas as a feedstock to produce sustainable chemicals products.

The Vaal Triangle has been home to fossil fuel-based industrial operations that have been vital to the country’s economic development over many decades. It is believed that many of the assets in these operations can be repurposed in such a way as they become more sustainable, leading to a revitalisation of the region.

The Industrial Development Corporation (IDC), as the driver of the state’s hydrogen economy and commercialisation programmes, came out strongly in support of the Sasol and ArcelorMittal partnership. “The IDC supports sector linkages like this that are critical to realising South Africa’s ambition to develop the green hydrogen economy,” said Joanne Bate, Chief Operating Officer for the IDC. Sasol is simultaneously exploring export markets for the hydrogen and ammonia that it expects to produce in large quantities. With both products being an important PHOTO: ArcelorMittal

OVERVIEW

The BMW X3 will be produced as a hybrid from 2024. of Japan’s Green Growth Strategy, it was logical that Sasol should look to that country. Sasol and ITOCHU Corporation have signed a Memorandum of Understanding (MoU) to jointly study and develop the market and supply chain for green ammonia with a focus on its possible use as bunkering fuel and for power generation. This could include product offtake agreements and Japanese support for academic and research efforts into green ammonia.

Change is coming During the celebrations around the 50th anniversary of making vehicles at its Rosslyn Plant in Tshwane, BMW Group announced that from 2024 the BMW X3 will be made as a plug-in hybrid for export.

This will entail an investment of R4.2-billion in adapting the factory to electrical specifications. More than 300 employees will receive specialised training at the plant, which was BMW’s firstever foreign facility. Since inception, Plant Rosslyn has produced more than 1.6-million vehicles and exported them to more than 40 countries worldwide, including 14 African nations. It has produced many models over the years and began working on the best-selling BMW X3 in 2018.

A new research chair has been created to study climate change. The Sappi Chair in Climate Change and Plantation Sustainability was launched by Sappi Southern Africa and the University of the Witwatersrand (Wits) in 2023.

Professor Mary Scholes of the Wits School of Animal, Plants and Environmental Science, an internationally recognised authority on tree physiology and climate change, will act as the Research Chair.

Developing additional capacity in manipulating and interpreting climate-modelling data will be a priority. Funding is available for one post-doctoral fellow and bursaries for one Master’s and one Honours student.

ONLINE RESOURCES National Energy Regulator of South Africa: www.nersa.org.za South African National Energy Development Institute: www.sanedi.org.za South African Photovoltaic Industry Association: www.sapvia.co.za

PHOTO: BMW Group

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I n J ohannesburg, the Northern Wastewater Treatment Works has its own electricity source in a 1.1MW biogas plant. It produces electricity using cogeneration, which is combined heat and power. A landfill site at Robinson Deep in Johannesburg has started generating 3MW of gas. This is the first of five renewable energy projects that Energy Systems SA has in Johannesburg. At the Cavalier abattoir in Cullinan, biowaste conversion company ibert provides about a quarter of the power that the abattoir needs to function.

Areas in the G auteng province that can no longer rely on the mining industry to drive their economies may become focus zones for solar PV projects. Renewable Energy Development Zones (REDZs) have been allocated in other provinces but the potential for REDZs in Gauteng is huge, because vast amounts of energy are needed to drive the country’s biggest economy.

These zones would be developed in line with the national Integrated Resource Plan (IRP 2019) which the Gauteng Provincial Government is hoping will enable it to unlock several renewable energy projects.

The Gauteng Provincial Government has announced plans to appoint developers to construct an 800MW solar farm in Merafong. Government also intends installing rooftop solar panels on governments buildings such as schools, clinics and hospitals. ■ GAUTENG BUSINESS 2023/24

OVERVIEW

Oil and gas A shortage of engineers is being addressed.

SECTOR INSIGHT PASA has awarded exploration rights.

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orld Engineering Day for Sustainable Development 2023 was an occasion to reflect that South Africa is short of qualified engineers to work in the oil and gas industries.

The day was 4 March, but happily there are programmes being run throughout the school year by organisations such as the Love Trust to bring Science, Technology, Engineering and Maths (STEM) classes to areas with few resources. One such initiative is run at Nokuphila School in Thembisa, Midrand.

According to Matshoene Tladi, subject head of the STEM programme at the school, “We equip students with essential skills in the form of hands-on experiments and challenges that integrate principles and knowledge from natural science, technology, mathematics and robotics, which includes engineering and coding.”

The Love Trust raises funds from sponsors for its STEM programme.

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.

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

ONLINE RESOURCES Love Trust: www.lovetrust.co.za 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

GAUTENG BUSINESS 2023

and distributors, converts petrol and diesel-powered vehicles 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.

Ardagh Glass Packaging (formerly Consol) has contracted to buy liquid natural gas (LNG) from Renergen, which is developing a large project in the Free State. ■

PHOTO: The Love Trust

OVERVIEW

Banking and financial services Citibank is financing a major urban development.

SECTOR INSIGHT Tyme is expanding.

The Sharpeville Memorial Garden falls within the area earmarked for a major development.

A

grant of R200-million made available by Citibank for a large infrastructure project in southern Gauteng has been classified as an equity-equivalent investment, earning the bank significant BEE credits.

The Department of Trade, Industry and Competition (dtic) has approved the amount, which forms part of a larger R1.3-billion amount that the bank is providing in seed capital, as a type of investment that exempts the bank from compliance with other elements of BEE legislation.

The area between Vereeniging and Vanderbijlpark is being developed as a major development node and plans for housing, an airport, industry and logistics all form part of the intended project.

The Competition Tribunal has unconditionally approved TymeBank’s purchase of Retail Capital, a fintech SMME funder, Retail Capital.

TymeBank, which is majority owned by Patrice Motsepe’s African Rainbow Capital, has been moving beyond its basic banking model recently and this purchase indicates another

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

PHOTO: GREENinc Landscape Architecture and Urbanism

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broadening of the scope of the bank’s ambitions. TymeBank has also signed a deal with TFG, a group that has a big presence in Gauteng, to help it expand its retail operations.

What used to be known as the Foschini Group has 34 brands, including Markhams, Totalsports, Jet and Dial a Bed, and 30-million customers. In the short term, TymeBank will have access to 600 TFG kiosks, taking the bank’s total in South Africa to 1 450.

The 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.

The launch by Sanlam Investments of a Sustainable Infrastructure Fund is a sign of the times. In the context of climate change caused by the use of fossil fuels, the investment community is increasingly putting emphasis on sustainabilit y. Sanlam Group will invest R6-billion in the fund and aims to attract a fur ther R5-billion from institutional investors. ■ GAUTENG BUSINESS 2023/24

OVERVIEW

Transport and logistics Cellphone masts are solving traffic problems.

SECTOR INSIGHT OR Tambo International Airport handles more than 80% of South Africa’s cargo.

New tenants are having custom-built warehousing facilities constructed for them at Riverfields Precinct, the logistics hub near OR Tambo International Airport in Ekurhuleni.

B

usy intersections in Soweto are getting power from an unusual source to prevent dangerous traffic overload.

MTN and the Johannesburg Roads Agency (JRA) have signed a Service Level Agreement whereby MTN base stations will provide power to traffic lights at key points during loadshedding.

“We’re excited about the future of this project and aim to expand further afield to partner with municipalities across the country to create corridors of free-flowing traffic in loadshedding, by using existing base stations to power traffic lights where we can,” says MTN South Africa’s Chief Executive Officer, Charles Molapisi.

MTN is also creating a “traffic corridor” from the Flora Clinic, along 14th Avenue, towards the N1 highway, leading to outside the MTN head office, to ensure smooth movement onto and off the N1 highway at the 14th Avenue intersection. Those traffic lights will be backed up by power supplied by electricity generated from the MTN campus.

The 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 privatesector 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

GAUTENG BUSINESS 2023/24

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Century Properties and mining company Cullinan.

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.

River fields Precinct in Ekurhuleni is a logistics hub serving OR Tambo International Airport and the major highways that link Gauteng with other provinces.

Several established brands such as DSV, John Deere, DB Schenker, Sanvick Mining and DHL are tenants and new facilities for Shoprite and The Foschini Group are being built. A new section, Equites Park 3, covering 16 hectares, is currently in the planning phase. The existing facilities include Equites Park Riverfields 1 (also 16ha) and Equites Park Riverfields 2, which hosts two major retailers on 43ha.

A total of 82% of South Africa’s air cargo is transported through OR Tambo International Airport and Gauteng has several PHOTO: Riverfields Precinct

cargo and freight handling facilities well-equipped to deal with rail and road deliveries and despatches.

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.

A specific goal of the Provincial Government of Gauteng is to make the Transnet Tambo-Springs Logistics Gateway the biggest inland logistics hub and dry port in Africa by 2030.

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.

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 was put on hold because of Covid-19. The long-term plans to expand the Gautrain network are still on course.

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 agriprocessing 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.

ONLINE RESOURCES Airports Company South Africa: www.acsa.co.za CAMASA: www.camasa.co.za MTN Traffic Light Project: TrafficLightsMTN@mtn.com South African Association of Freight Forwarders: saaff.org.za South African National Roads Agency: www.sanral.co.za

PHOTO: MTN

27

MTN base stations are providing power for traffic lights.

Lanseria Airport to the north of Johannesburg has grown in importance as a secondar y airpor t for the country’s busiest business and commercial hub.

It is a convenient landing point for travellers bound for regional centres lik e Rustenburg in the North West.

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 2023/24

OVERVIEW

Manufacturing Manufacturers are investing in new plants and offices.

SECTOR INSIGHT Ardagh Glass Packaging is a new name in glass.

T

hree has become one in Centurion, where Montego Pet Nutrition has consolidated its Gauteng operations.

With its main plant located in the Eastern Cape town of Graaff-Reinet, Montego has become one of South Africa’s most successful brands and expects that its R30-million facility at Knoppieslaagte in Centurion will allow it to double production and there is room for the current staffing complement of 147 to grow.

The company’s new 21 600m² complex includes a dry-food factory, a warehouse, a testing laboratory and an administration block. The production focus will be on Montego’s Monty & Me Essential range, as well as manufacturing for contract clients.

Ford South Africa’s goal of reaching production capacity of 200 000 vehicles per year is a step closer, thanks to an investment in automation at its Silverton Assembly Plant in Tshwane.

An amount of R15.8-billion has been invested in a range of new facilities, including a 44 000m2 Body Shop, a supporting warehouse and a Stamping Plant. The Ford Ranger is produced at the plant in a wide variety of configurations including single cab, supercab and double cab, as well as left-hand drive and right-hand drive models.

Welding is done by robots, as are many of the other functions on the production line that features 493 robots.

In response to Ford’s investment, auto component and battery manufacturer Metair will establish a new logistics facility GAUTENG BUSINESS 2023/24

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at Silverton. Several Metair subsidiaries, including Hesto Harnesses, Unitrade, Automould and Lumotech, have signed 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 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 PHOTO: Montego Pet Nutrition

OVERVIEW

manufactures armoured cars in Boksburg, which are branded as Vehicle Mounted Mine Detectors. In nearby Benoni, BAE Systems OMC designs and manufactures protected vehicles.

Manufacturing contributes 14% to Gauteng’s real economy output and provides 40% of South Africa’s manufacturing overall.

Manufacturing related to the historically important mining industry still plays a key role in the Gauteng economy.

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.

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.

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 Alber ton.

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 SEWEURODRIVE’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.

Pack aging company Nampak has metals, plastic, paper and glass operations at various locations. It is the market leader in beverage cans.

In 2022 Ardagh Group bought Consol Glass, South Africa’s biggest glass producer and now controls that company through Ardagh Glass Packaging. Production facilities are located in Clayville, Wadeville and Nigel.

Household products manufacturer Unilever represents an example of the lighter industrial capacity of the East Rand.

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 chainmaking 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 i n d u s t r i e s a re t h e c h i e f 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

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GAUTENG BUSINESS 2023/24

OVERVIEW

Tourism The Southern Sun brand has been revived.

T

he Southern Sun brand lives again. The announcement was made in 2022 that Tsogo Sun Hotels would be no more. The Southern Sun group is focussed on hotels, with no casinos in its 31-property Gauteng portfolio. These range from several SUN1 facilities for budget travellers to the luxury of the 75-room 54 on Bath in Rosebank. Nearby Sandton has seven Southern Sun properties, including the Sandton Sun and Sandton Towers.

The Maslow Times Square, Pretoria, which also has conference facilities, is one of two Sun International hotels linked to casinos.

The other one, Carnival City in Brakpan, has recently added five new rides to its Pocket Park, pictured. The group’s third Gauteng hotel, The Maslow Sandton, which is aimed at business travellers, is located in the centre of the financial district and close to the Gautrain station.

Tsogo Sun, as distinct from the deactivated Tsogo Sun Hotels, has interests in casinos and gaming and runs seven hotels paired with casinos in Gauteng. These include the Silverstar Hotel inside the Silverstar Casino and Entertainment Complex in Mogale City, West Rand, and there are four hotels at Montecasino.

Despite the Covid-related slump, tourism remains a sector that can grow quickly. 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.

Airlink, which ended its franchise agreement after SAA went into business rescue, has signed deals with Qatar Airways, Emirates and United Airlines, giving travellers easy access to a 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%.

Culture and history Heritage tourism is a strong component of the tourism offering in Gauteng. The Cradle of Humankind is a UNESCO World Heritage

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

GAUTENG BUSINESS 2023/24

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SECTOR INSIGHT Airlink has signed important partnerships.

Site and attracts thousands of visitors every year to the interactive visitor’s centre at Maropeng. The Sterkfontein Caves have recently revealed astonishing finds, showing the or igins of humanit y through artefacts such as the 2.1-million-year-old skull known as Mrs Ples.

The Origins Centre at the University of Witwatersrand provides more fascinating insights into the origins of mankind through ar t and science. The Centre hosts superb representations of Khoi and San rock art.

History relating to the struggle against apartheid centres on attractions such as the moving exhibitions housed at the Apartheid Museum and the history of the battle for human rights and democracy embodied in Constitution Hill. ■ PHOTO: Sun International

OVERVIEW

ICT Many companies choose Gauteng for their headquarters.

H

ytera has created a new regional headquarters in Johannesburg, the company’s biggest facility in Africa.

Listed on the Shenzhen Stock Exchange, and with its global headquarters in that Chinese city, Hytera is a communications technologies company that has been in Southern Africa for two decades.

The new Midrand headquarters include a demonstration area, pictured, and indicate the company’s intention of expanding the range of voice, video and data capabilities on offer to its African clients. New products are expected to be launched at the Africa Tech Festival in November.

With several other global companies choosing to station their South African headquarters in Gauteng, the province is well connected.

The biggest data centre on African soil is under construction in Ekurhuleni. Teraco Data Environments secured a R2.5-billion loan in 2021 to build the 50 000m² JB4 data centre on 6ha and Phase 1 has been completed. The 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.

A Gauteng Growth and Development Agency (GGDA) subsidiary, The Innovation Hub, has a programme called eKasiLabs which supports entrepreneurs and young people with good business ideas.

One of the provincial government’s stated goals is to get several ICT initiatives to work together. If the work of The Innovation Hub, several eKasi laboratories, the Tshimologong precinct, universities and research institutes could be integrated, a more powerful ecosystem would be the result.

A High-Tech Special Economic Zone (SEZ) is another idea that is being pursued. Making broadband connectivity and free WiFi available to poor households in the province is another task.

A Digital Transformation Advisory Panel is driving these initiatives.

Various large spatial plans for the province include an element whereby these new cities or settlements will be built as “smart cities”.

The Council for Scientific and Industrial Research (CSIR) in Pretoria hosts a new body aimed at preparing South Africa for the Fourth Industrial Revolution (4IR), the South African Affiliate Centre of the World Economic Forum.

ONLINE RESOURCES eKasiLabs: www.theinnovationhub.com Independent Communications Authority: www.icasa.org.za Technology Innovation Agency: www.tia.org.za

PHOTO: Hytera

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SECTOR INSIGHT Tshwane has hundreds of free WiFi zones.

The “ Tshepo 1 Million” campaign links the provincial government with the successful Harambee Youth Employment Accelerator and more than 40 large companies.

Both Johannesburg and Tshwane have free WiFi networks with Tshwane providing 1GB of data every day to its citizens at various TshWi-Fi locations, at speeds up to 15Mbps.

Th e S m a l l E n te r p r i s e Development Agency (Seda) runs the SoftstartBTI ICT incubator in Midrand and Tuksnovation, a high-tech incubator, at Pretoria University. Several incentives relevant to companies and educational bodies in the ICT sector are available from the Department of Trade, Industry and Competition (dtic). ■ GAUTENG BUSINESS 2023/24

OVERVIEW

Construction and property Green is cool.

SECTOR INSIGHT SECTOR INSIGHT Serviced land is being released for housing.

90 Rivonia Road has a four-star rating from the Green Building Council South Africa.

R

edefine Properties’ third green bond was oversubscribed when it went to market in August 2023. An amount of R1billion has been allocated across three, five and seven years.

Green buildings are now considered mainstream in the construction industry, and star ratings from Green Building Council South Africa (GBCSA) are expected in commercial, industrial and residential projects. The bond was listed on the JSE in the Sustainability Segment, a further sign that every sector is responding to the climate crisis.

Redefine will use the bond financing to work towards decarbonisation of its portfolio through the reduction of energy consumption by making systems more efficient, collaboration with tenants and solar photovoltaic installations.

The North Wing of 90 Rivonia Road is an example of Redefine property that is four-star rated by the GBCSA. Features include a climateresponsive facade, efficient air-conditioning and intelligent lighting, multi-level planting beds along with some passive design elements.

Township landlords are to be integrated into the real estate sector by means of loans from provincial government that will allow them to invest in their properties and comply with regulations. The aboMastandi scheme has seen 40 loans (from 2 000 applications) approved so far.

On the occasion of the State of the Province Address in February 2023 the provincial government released 482 serviced

GAUTENG BUSINESS 2023/24

32

stands. The South African Housing Infrastructure Fund (SAHIF) has been active in the market of preparing land for development. Noting that some municipalities had been returning their housing b u dget s u nsp ent , S AHIF focussed on the first stages of development that are often ignored: zoning, approvals and basic infrastructure. SAHIF does that work and then sells it on to developers. It is estimated that early investments into 1 476ha of land will yield approximately 73 800 housing units. SAHIF’s goal is to speed up the delivery of affordable housing.

The R300-million SA SMME Crisis Partnership Fund was launched in the Gauteng township of Tembisa in 2022.

A collaboration between the Provincial Government of Gauteng, the Industrial Development Corporation (IDC) and the SA SME Fund intends to make financing available up to R1.5-million to SMMEs and to home owners wanting to upgrade their backyard rental accommodation.

Six intermediaries have been identified to find and fund entrepreneurs and rental properties that need working capital or asset finance. Indlu PHOTO: Redefine Properties

OVERVIEW

Financial products are available to allow owners to fund upgrades of backyard rooms for rental.

Living, one of the six companies, is already funding rental property upgrades, with the expectation that rental income will pay off the loan.

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 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, 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

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

PHOTO: Indlu Living

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 become more readily available.

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 and 22% are two-bedroomed flats. ■ GAUTENG BUSINESS 2023/24

OVERVIEW

Development finance and SMME support Maponya Mall is lending a hand.

SECTOR INSIGHT Provincial government spent R1.6-billion with youth-owned companies.

Made in Soweto. The Maponya Mall Community Hub aims to support SMMEs and provide training for young people.

S

kills development for business owners and young people is at the centre of the Maponya Mall Community Hub, which was launched in 2023.

Facilities have been created at the mall where information and courses will be available. SMMEs will be helped in preparing their products for market and classes will be offered in branding and compliance.

The Afrika Tikkun Foundation will run four-month Youth Accelerator Programmes focussed on sense of self and goalsetting, community and skills. Additional courses on the retail sector and ICT will be held. Other partners in the Hub initiative are Redefine Properties, the Dr Richard Maponya Institute and FNB Philanthropy.

With youth unemployment high, a Gauteng Integrated Youth Development Strategy 2030 has been approved. The Gauteng Provincial Government procured goods and services to the value of R1.6-billion from youth-owned companies in 2022.

The national Youth Employment Stimulus (YES) programme has provided more than 100 000 young people with workplace experiences in Gauteng. Other avenues for job creation include the Expanded

ONLINE RESOURCES Gauteng Growth and Development Agency: www.ggda.co.za Maponya Mall Community Hub: www.maponyamall.co.za Small Enterprise Development Agency: www.seda.co.za

GAUTENG BUSINESS 2023/24

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Public Works Programme (EPWP), placement as educational and general teacher assistants and the newly created Crime Prevention Wardens. A Township Economic Development Bill aims to do away with restrictive bylaws and rezone taxi ranks 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 more than 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. 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. ■ PHOTO: Maponya Mall

OVERVIEW

Education and training A Robot and Sensor School has taken off.

SECTOR INSIGHT Township achievers are being rewarded.

T

he Gauteng Provincial Government announced in 2023 that it would reward excellence in schools by offering a threeyear tertiary bursary to the three pupils who finished in the top three positions in every township school.

The amount allocated for this project is R360-million. The same amount was spent in the 2023 year on tertiary bursaries through the existing bursary programme.

The provincial government has also committed R6-billon to build new schools in areas where there is the greatest need.

National Treasury has released R1.5-billion to allow for the demolition of mobile and asbestos schools.

The Schools of Specialisation programme is accelerating. In the course of the 2023/24 year the number of these schools is expected to grow from 21 to 35. An example of such as school is the Soshanguve Engineering School of Specialisation which has a focus on automotive skills.

The popular annual TUKS Robot Race Day has earned the University of Pretoria a reputation for making technology accessible. In 2022 the university went a step further with the launch of the Robot and Sensor School.

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

PHOTO: University of Pretoria

35

While the Race Day is limited to third-year students, the new school aims to expose schoolchildren to concepts that go into creating a robot such as CAD design, programming and 3D printing.

Several university departments are involved in the project in which students from the Engineering, Built Environment and IT faculty give up their time to create the hardware and present modules to course participants. The programme is supported by RS South Africa, a supplier of industrial and electronic products.

Three of South Africa’s top five business schools are in Gauteng: the Wits Business School, the University of South Africa’s (Unisa’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. ■ GAUTENG BUSINESS 2023

oppo being INTERVIEW

Randburg Chamber of Randburg Chamber Commerce and Industry Commerce and ofIndustry INTERVIEW

Promoting representing businesses in the economic powerhouse.

The voice ofand business.

What is the geographic footprint of the Chamber? thecover geographic footprint of the Chamber?

The What areas iswe are: Randburg, Sandton, Fourways, Midrand cover Region B, which includes Westcliff, Northcliff, Melville, Parkhurst, and We Lanseria.

Greenside, Emmarentia, Linden, Franklin Roosevelt Park, Coronationville, Linda Blackbeard her own Westbury, Riverlea and Langlaagte, Rosebank, Randburg,ran Richmond, What are the key functions of the Chamber? interior design and hospitality Parktown (west of Jan Smuts Avenue), Cresta, Maraisburg and Industria.

Primarily to promote business, to facilitate introductions, to be the

BIOGRAPHY

Linda Blackbeard, CEO of the Randburg Chamber of Commerce and Industry, looks forward to more businesses Linda Blackbeard signing up so that the Chamber can be even more effective in promoting business, facilitating deals in new markets and standing up for business in multiple forums.

company before taking up the voice of business at municipal, provincial and government levels, in What are the keyinfunctions of the Chamber? reigns as CEOorof the RCCI. She defending business areas of poor decision-making unintended To promote business, to facilitate introductions, to be voice of business is passed. the SACCI Chamber Forum consequences of various acts that are Wethe also facilitate at municipal, provincial and government levels in defending business and awith member opportunities into the SADC regions andChairlady work very closely many inof areas ofregarding poor decision-making or unintended consequences of variousof embassies trade and tourism. the South African Chamber acts that are passed.

Commerce and Industry board We also facilitate opportunities into the SADC regions, business What does the Chamber do to support of SMMEs? directors. She was awarded introductions to other African countries andiswork very closely withof many One of the Chamber’s primary focus the areas development Pan the African Award in 2018 in embassies regarding trade and tourism.

SMMEs, finding opportunities for them, business enhancement in recognition of her achievements

training, helping with business plans, company registrations, giving in the Continental Lifetime What does the that Chamber do to support SMMEs? direction to ideas entrepreneurs might have. Teaching them Achiever sector, CEO Global Most One of the Chamber’s primary focus areas is the development of SMMEs, to form joint ventures with other small businesses and have an Influential Women ininBusiness finding opportunities them,We business enhancement training, & opportunity then to tender for for work. promote our local businesses helping withwork business registrations,2018 givingAwards. direction to Government being awarded in ourplans, areas.company ideas and building them up so that they can run sustainable businesses ofthe theirRCCI own.interact with government?

Does teaching them to form joint ventures other smallAfrican businesses RCCI is Also affiliated to the only national chamberwith body, South to grow and have an opportunity then to tender for works that may be Chamber of Commerce & Industry (SACCI). Through SACCI important available through the City of Johannesburg promote issues are dealt with directly at government level. (CoJ).

We areWe also heard atlocal businesses awarded theworks work with that needs toof beJohannesburg, done in our areas provincial level being and the Chamber the City instead of using outsiders.

Trade and Investment SA as well as various national government

BIOGRAPHY departments responsible for economic development.

Does the RCCI interact with the government on issues relevant to Linda Blackbeard ran her own business?

Are there particular challenges? interior design and hospitality RCCI isChamber one of the chambers is affiliated to the only national Randburg would love to which embrace more businesses.

There is BIOGRAPHY company before taking up the chamber body, the South African Chamber of Commerce and Industry so much opportunity around and we could facilitate more if businesses reins asBlackbeard CEO of the RCCI. Vice joined.

(SACCI).

Through SACCIstand important issues directly The more businesses together withare theirdealt localwith chamber of at Linda ran She herisown Chair of the SACCI Chamber Forum government level.

Any chambers affiliated and who are represented interior design and hospitality commerce, the stronger our voice will be at municipal, provincial and on the SACCIlevel.

National Chamber Forum are able to bring important issues and a member of the Southup African company before taking the government affecting business to the attention of the SACCI Board.

Chamber of Commerce and Industry reigns as CEO of the RCCI. She RCCIthe hasfuture two directors board directors.

She was awarded hold? on the SACCI Board. We are also heard at is theofSACCI Chamber Forum What does provincial level and endeavour work with the CoJ andsaves theirtime relevant the Pan African Award in 2018 in of Origin to programme for export Chairlady and a member of Our Electronic Certificate sector committees the localBusinesses voice of business. recognition of her Chamber achievement is designed for South Africanasmarkets. and members can the South African of and business We are able to engage with NEDLAC, DIRCOand andfacilitation provincialin and as the Continental Life-time to renewed focus, positive opportunities, Commerce and Industry board look forward government based on requirements of members. region departments, for business growth andthe opportunity. of directors.

She was awarded Achiever sector, CEO Global Most the SADC The Chamber works with Trade and Investment SA as well as the Pan African Award in 2018and in Influential Woman in Business variousdetails national and provincial departments responsible for economic Contact recognition of her achievements Government 2016 Awards. in the Continental Lifetime Physical address: Unit G8 Atrium Terraces, 272 Oak Avenue, Achiever sector, CEO Global Most Randburg, Gauteng GAUTENG BUSINESS 2023/24 36 2194. Tel: 086 101 9218 | Fax: 086 212 4407 Influential Women in Business & Email: admin@rcci.co.za | Website: www.rcci.co.za 49 Government 2018 Awards.

Does RCCI Cham issues provin Trade depar

Are th Randb so mu joined comm gover

What Our E and is look fo the SA

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Phy Ran Ema

INTERVIEW development, including the Gauteng Growth and Development Agency (GGDA).

We also liaise with the City of Johannesburg and the City’s Economic Development Department. Our goals are to support the city with its vision.

We sit on the Community Policing Forum Committees and we are active partners on the committees of LDAC (Local Drug Action Committee), which is the local organisation driving crime prevention, so we look at all areas of safety and security for the people within our area.

Are your members drawn from different sectors?

If you’re a registered business you need to be a member of the Chamber. All legitimate industry sectors are entitled to be members of our chamber.

We will support you and try to help you wherever we can. Our members are from all business and industry sectors.

Would it be correct to say that the area covered by the RCCI has some of the country’s most dynamic businesses?

The areas we cover form the economic powerhouse of South Africa. I cannot stress strongly enough that the business hub of Sandton alone is responsible for decision-making (on signing powers and approval) of a large number of business transactions taking place across the country. We are also the media hub of the country.

Are there particular challenges?

Randburg Chamber, which was founded in 1959, would love to embrace more businesses in our

area. There is so much opportunity and we could facilitate so much more if businesses joined our chamber movement.

We are delighted with the way our current directors and their teams are covering the web, social media, Facebook, LinkedIn and events.

Things are very positive in our neck of the woods and we need all businesses to participate, so we can work more together in these tough times.

The more businesses stand together with their local chamber of commerce, the stronger our voice will be. The way of doing business has changed and the Chamber is moving with the times.

We are represented on the right committees, we are connected to the right people at the City of Johannesburg and we are dealing at the right levels of government through SACCI. Do we have the correct connectivity to be able to assist local businesses in their areas of need?

We continually ask this question to improve our offering. The businesses out there need to tell us what their needs are. This way we can provide a better service for them.

What does the future hold?

Our Electronic Certificate of Origin programme for export is available. This saves the member so much time and is designed in South Africa especially for our markets. Businesses and members can look forward to renewed focus, positive opportunities, and facilitation in the SADC region for business growth and opportunity. ■

3

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