Gauteng Business 2025

2025 EDITION

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

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CONTENTS Gauteng Business 2025 Edition

Introduction Foreword

4

A unique guide to business and investment in Gauteng.

Special features Regional overview of Gauteng

6

Special Economic Zones

8

Investment is flowing into South Africa’s economic heartland as sectors like tourism and conferencing recover, and the province turns to renewable energy.

A vital component of national and provincial policy to drive inclusive growth.

Gauteng Growth and Development Agency 10 Key strategies of the GGDA to boost infrastructure and encourage investment.

Economic sectors Mining

20

Platinum is attracting investors.

Energy

22

Roof pergolas have solved a solar problem.

Education and training

36

ICT

37

Solar skills are in short supply.

Agriculture

26

Gauteng data centres to be powered

by Free State sun.

Oil and gas

27

Development finance and SMME support

38

Manufacturing

28

Construction and property

30

Banking and financial services

39

Transport and logistics

32

Tourism

34

Innovation is improving agriculture.

A gas turbine has been recommissioned.

Concrete growth expands to eSwatini.

A construction programme offers skills training.

Logistics hubs are key to growth.

The Big Four attract thousands of visitors.

GAUTENG BUSINESS 2025

2

Provincial government is procuring from small businesses.

Taxis are going digital.

References Key sector contents

Overviews of the main economic sectors of Gauteng.

18

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: Ashley van Schalkwyk Project manager: Chris Hoffman Account managers: Shepherd Mugero Sadiyah February Dwaine Rigby Gabriel Venter Vanessa Wallace Sam Oliver Administration & accounts: Charlene Steynberg Kathy Wootton Sharon Angus-Leppan Distribution and circulation manager: Edward MacDonald Printing: FA Print

T

he 2025 edition of Gauteng Business is the 15th issue of this highly successful publication that has established itself as the premier business and investment guide for the Gauteng Province.

In addition to the regular articles providing insight into each of the key economic sectors of the province, a special feature on the national and provincial policies underpinning Special Economic Zones is included in this edition. SEZs form an important part of the strategy of the Gauteng Growth and Development Agency (GGDA) in promoting sustainable economic growth across the province’s designated development corridors. This edition of Gauteng Business is supported by the GGDA, which is the implementation arm of the Gauteng Department of Economic Development.

All of the main economic sectors of the provincial economy are reviewed, ranging from agriculture, transport and logistics, energy and manufacturing through to education and training. A plan to develop a large solar farm in the western reaches of Gauteng is proceeding, with mining company SibanyeStillwater having made land available for the project and various contractors having been identified to carry the project forward. In addition, the Provincial Government of Gauteng has revived an inner-city open-cycle-gas turbine and has begun a programme of equipping schools and medical clinics with solar panels.

To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www. globalafricanetwork.com under e-books. Updated information on Gauteng is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-tobusiness 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.

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

Member of the Audit Bureau of Circulations ISSN 1990-0621 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.

Provincial Government; Forge Academy & Labs; Joburg Tourism Company; The Kyalami Grand Prix Circuit & International Convention Centre; Vukile Makau on Pexels; Riverfields Precinct; Sibanye-Stillwater; SolarSaver; Soutpan Solar; SPAR North Rand; The Innovation Hub.

PHOTO CREDITS | Cover: top left, at the airport, ACSA; mine conveyor belt, Petra Diamonds; diamond, De Beers; Time Square at Menlyn Maine, Sun International; Soweto towers, Joburg Tourism; FNB Stadium, Boogertman + Partners. Body of journal: ABC Ventilation; Africa Data Centres; Colossal Concrete Products; Burstone Group; GGDA; Gauteng

DISCLAIMER | While the publisher, Global Africa Network Media (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in Gauteng Business is accurate and up-to-date, the publishers make no representations as to the accuracy, quality, timeliness, or completeness of the information. Global Africa Network will not accept responsibility for any loss or damage suffered as a result of the use of or any reliance placed on such information.

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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.

Page | 2

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.

7 19

SOUTH AFRICAN BUSINESS SOUTH AFRICAN BUSINESS 20232020

A REGIONAL OVERVIEW OF

GAUTENG Ballooning near the Cradle of Humankind, a short hop from Muldersdrift.

Investment is flowing into South Africa’s economic heartland as sectors like tourism and conferencing recover, and the province turns to renewable energy.

By John Young

M

uldersdrift might not be the first name that comes to mind as a conference venue of national significance, but Gauteng is full of surprises.

Of the nine venues listed by the South African National Conventions Bureau as having secured 25 international business events between 2024 and 2029, four are in Gauteng – and one of them is Muldersdrift. The others are predictably the three metropolitan municipalities of Tshwane, Ekurhuleni and Johannesburg.

The 25 big conferences will generate R240-million for the South African economy and will help the country retain its top ranking in Africa and the Middle East on the 2023 list compiled by the International Congress and Convention Association (ICCA).

Muldersdrift is a short distance north-west of Johannesburg, near Lanseria Airport and it forms part of the Cradle of Humankind World Heritage Site. The Wonder Cave nearby is one the finest

GAUTENG BUSINESS 2025

hominid fossil sites in the world and with 30 wedding and conference venues, a brewery and the Silverstar Casino and Entertainment Centre run

by Tsogo Sun, Muldersdrift has much for visitors and delegates to experience and enjoy.

The metropolitan conference and exhibition centres are able to offer bigger meeting halls and venues such as the Sandton Convention Centre and Gallagher Estate, which often host large gatherings.

The Gauteng Convention Bureau, a business unit within the Gauteng Tourism Authority, supports the business-events sector.

Among the biggest events hosted in Gauteng was the series of five annual South Africa Investment Conferences, the fifth of which was held in 2023. Some R1.1-trillion was pledged altogether, of which about R22-billion will find its way to Gauteng.

In the course of the 2023/24 financial year, more than R68-billion in investments from 261

6

PHOTO: Guvon Hotels/Kloofzicht Lodge

SPECIAL FEATURE 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.

Both of these cities are educational centres of note.

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%).

foreign companies were made in the province, which created about 23 000 direct jobs. As of February 2023, about five-million people were employed in Gauteng.

Gauteng accounts for 45% of South Africa’s manufacturing capacity and the sector makes up 14.5% of formal sector output in Gauteng, making it the fourth-largest. 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 support for these specific subsectors is intended to spur other investments: automotive sector, mineral beneficiation, capital equipment, agro-processing, pharmaceuticals and tertiary services such as BPO, ITC services, tourism and the knowledge economy.

GGDA subsidiaries include The Innovation Hub (technology), the Automotive Industry Development Centre (AIDC), which manages the Automotive Supplier Park (ASP), OR Tambo SEZ, Vaal SEZ and Constitution Hill.

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.

Power plans Although the national utility Eskom improved its performance markedly in the course of 2024, steps to increase and reduce the cost of electricity are being put in place. The need to transition to greener sources of energy is also urgent.

The biggest of these is the private-public partnership taking place on land belonging to Sibanye-Stillwater, a global resources company that started life as a Gauteng gold miner. A photovoltaic power station, also known as a solar farm cluster, will be developed in Merafong Local Municipality with more than one contractor building facilities. The plant is expected to produce 800MW of solar power to the grid.

Public facilities such as medical clinics are to be provided with solar panels and battery storage systems. City Power will roll out a pilot microgrid project in Alexandra which is intended to meet basic power needs for low-income households. ■

Growth engine Gauteng is South Africa’s smallest province in terms of landmass but in every other respect it is a giant.

At 18 176km², the province makes up just 1.5% of South Africa’s territory but its economic impact is disproportionately large. In 2023 the provincial economy was valued at R2.4-trillion and the province was responsible for 34% of South Africa’s gross domestic product (GDP).

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

7

GAUTENG BUSINESS 2025

Special Economic Zones A vital component of national and provincial policy to drive inclusive growth.

D

e Beers is a storied name in the history of the growth of the South African economy.

So it was a significant event when a major subsidiary, De Beers Sightholder Sales South Africa, relocated all its operations to Johannesburg in 2023. More specifically, to a building in Sky Park in Kempton Park: De Beers is supporting the initiatives of national and provincial government to promote economic growth via Special Economic Zones (SEZs).

The OR Tambo SEZ is located at the OR Tambo International Airport and has among its focus areas the consolidation of all companies operating in South Africa’s mineral beneficiation sector.

De Beers, which has two diamond mines in South Africa, is responsible for the sale of 90% of the world’s diamonds by value.

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.

Choosing where to position an SEZ is based on many considerations. As Maoto

GAUTENG BUSINESS 2025

Molefane, Acting Deputy Director General of the Department of Trade, Industry and Competition (dtic) explains, “SEZs are established on the basis of the economic potential of a region. This could either be comparative or competitive advantages and the SEZ programme is used as a sweetener to attract foreign and domestic investors. SEZs are used to accelerate industrialisation through coordinated planning and the development of state-of-the-art infrastructure.”

Molefane believes that SEZs contribute to the attractiveness of SA as an investment destination: “By offering world- class infrastructure, fiscal incentives, a protected environment and an easy-to-navigate business environment using One Stop Shops, SEZs have directly contributed to the country’s attractiveness. The zones have 167 operational investors and almost half of these are FDIs.” An updated approach to the development of SEZs advocates for integrated multi-use with improved living standards supported by industrial development, commercial spaces, tourism, better schools, entertainment, healthcare and recreational facilities.

8

PHOTO: De Beers

SPECIAL FEATURE National government also promotes investments through tax legislation. The SEZ Tax Incentive was introduced into the Income Tax Act to promote investment, growth and job creation in the South African manufacturing sector and the development of designated regions.

The taxpayer must be a “qualifying company” to be able to qualify for this incentive. Qualifying companies can benefit from the following preferential benefits: a preferential corporate income tax rate of 15%; an accelerated depreciation allowance of 10% on cost of any new and unused buildings or improvement owned by the qualifying company.

Ford itself made a capital investment of R15.8billion in pursuit of increased production while suppliers have invested more than R5.6-billion.

This has led to 3 291 jobs being created within the zone, with more than 65% of the workforce sourced from surrounding townships. Of these jobs, 39% were filled by women and 59% by youth.

Three district municipalities across the south of Gauteng will host the Vaal Special Economic Zone (Vaal SEZ) which will have 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 agroprocessing, logistics, the low-carbon economy, light manufacturing and the Blue Economy, which seeks to take advantage of the Vaal River.

The GGDA has established a subsidiary to run the process of establishing the SEZ. Plans for a West Rand SEZ are in place with three sectors being targeted: agro-processing, including new market facilities and exploring the growth of the cannabis sector; bus and automotive manufacturing linked to the existing plant of the Busmark company (the Chamdor Automotive Hub is already functioning); and renewable energy - a large solar plant is to be built by six contractors on land donated by mining company Sibanye-Stillwater.

The West Rand is well connected in terms of transport links via the N12 and N14 highways, it is near to Lanseria Airport and it has significant tourism assets, including the Magliesberg mountain range and the Cradle of Humankind. ■

Gauteng plans I n Gauteng, the Gauteng Growth and Development Agency (GGDA) is the driver of the SEZ programme, which will result in each of the province’s district or metropolitan municipalities hosting an SEZ. Each of those zones will emphasise the strengths of that area, so for example logistics is another OR Tambo speciality, given its proximity to the airport. The existing concentration of large manufacturing enterprises within the Ekurhuleni Metropolitan Municipality makes that sector another obvious target, with the Jewellery Manufacturing Precinct (JMP) a good example of that convergence.

The province’s SEZs are at different stages of development. The OR Tambo SEZ is a good example of advanced progress. Together with De Beers, a gold refinery has been established in the JMP, it has become the home of bodies such as the South African Diamonds and Precious Metals Regulator, Belgian company Pluczenik has launched its facilities and more than a dozen SMMEs are active in the precinct. The other component of Precinct 1 of the SEZ is devoted to fruit and vegetable processing of In2Food, which has the largest refrigeration plant in the world.

Phase 1 of the development of the Tshwane Automotive Special Economic Zone (TASEZ) was launched in November 2019 with Ford Motor Company’s operations at its core, and the SEZ has grown in stature ever since. Initial government investment of R3.9-billion has been more than matched by Ford and its suppliers.

PHOTO: TASEZ

The Tshwane Automotive Special Economic Zone has attracted multiple investors, which in turn has created hundreds of jobs.

9

GAUTENG BUSINESS 2025

FOCUS

Strategic overview The Gauteng Growth and Development Agency (GGDA) is guided by principles and policies aligned with provincial and national goals.

MISSION In achieving the above vision, the GGDA sets for itself the following intent in its involvement with its stakeholders: To create an enabling environment for economic growth and development through targeted macro- and microeconomic intelligence, trade, exports and investment facilitation, strategic economic infrastructure development, innovation and social transformation; thus, positioning Gauteng as a leading global city region.

VALUES In working towards the achievement of the vision and mission set out above, the GGDA subscribes to the following internal values, which are aligned to the Batho Pele principles:

VISION To be the premier catalyst of innovative, sustainable and inclusive growth and socio-economic development within the Gauteng City Region (GCR).

GGDA PEOPLE VALUES Integrity We value each other’s opinions regardless of rank, and we demonstrate respect across culture, religion, gender and race.

GGDA BOARD VISION The GGDA Board vision is for the GGDA Group to become the: • Best agency to work for, in terms of personal growth and a caring culture • Most agile agency with highly motivated and skilled employees • Centre of excellence for infrastructure development and trade and investment promotion

Transparency We share information and knowledge and encourage a culture of learning, and we provide an open, safe and responsive environment.

Empowerment We encourage and facilitate personal and professional development, to promote an efficient and successful organisation.

In addition to the three focus areas mentioned above, the organisation strives to create an environment that fosters a healthy work-life balance, a culture of strategy execution and implementation, and one in which executive and senior management drives leadership by providing vision for the organisation and develops a workforce that proactively follows the vision.

GAUTENG BUSINESS 2025

GGDA PERFORMANCE VALUES Creative excellence We strive for creative and continuous

10

FOCUS improvement, through an innovative attitude, to achieve high performance.

The policies listed below set the basis for the GGDA’s priorities:

Goal driven We deliver on clearly defined objectives through a well-coordinated effort, effectively and efficiently.

POLICY/ FRAMEWORK

RELEVANCE TO GGDA

National Development Plan, NDP (2030)

The NDP performance areas of relevance to the GGDA mandate include the following: economy and employment; economic infrastructure; inclusive rural economy; South Africa in the region and the world; improving education, training and innovation; building a capable and developmental state.

Medium-Term Strategic Framework (MTSF)

The GGDA responds to the following MTSF outcomes: decent employment through inclusive economic growth; a skilled and capable workforce to support an inclusive growth path; an efficient, competitive and responsive economic infrastructure network; vibrant, equitable, sustainable rural communities contributing towards food security; create a better South Africa for all and contribute to a better and safer Africa and world; an efficient, effective and development-oriented public service.

Creative Industries Development Framework

Promotes the development of a creative industry sector to maximise socio-economic benefits in alignment with the Gauteng Growth and Development Strategy.

Gauteng Social Development Strategy

Confirms the connection between social and economic development.

Gauteng Spatial Development Perspective, 2007

Ensures the prioritisation and targeting of infrastructure investment and government action.

Gauteng Ten-Pillar Programme (Transformation, Modernisation and Reindustrialisation, TMR)

The pillars relevant to the GGDA are: Pillar 1: Radical economic transformation Pillar 2: Decisive spatial transformation Pillar 3: Accelerated social transformation Pillar 9: Reindustrialisation of Gauteng province

Growing Gauteng Together 2030 (GGT2030)

The GGT2030 has seven pillars and the GGDA responds to the following: a. Economy, jobs and infrastructure. b. Education, skills revolution and health. c. Integrated human settlements and land release. d. Building a capable, ethical and developmental state. e. Building a better Africa and world.

Township Economic Revitalisation Strategy

GGDA will contribute towards three key outcomes: i. Create an enabling and supportive environment based on the seven strategic focus areas for township economy revitalisation. ii. Establish the social and economic value of the township economy. iii. Ensure that the township enterprises become key players in the Gauteng economy.

Township Economic Development Act

Revitalising Gauteng’s township economies requires the GGDA to, among other tasks, actively promote townships as locations for foreign and domestic investment and ensure that township economies are fundamentally integrated into mainstream economic planning and resourcing.

Professionalism We consistently perform with integrity and hold ourselves accountable.

INSTITUTIONAL POLICIES AND STRATEGIES The institutional policies and strategies that govern the GGDA are described in the table that follows.

Institutional Policies The GGDA reviews and applies updates (where applicable) to its internal operating policies annually and the amended policies are tabled before the accounting authority during the first quarter of the financial year for approval. As an implementing arm of the Gauteng Department of Economic Development (GDED), the GGDA relies on the shareholder to provide direction regarding the implementation of strategic policy matters to ensure the achievement of inclusive economic development.

FOCUS

Corridors to growth Five corridors are ensuring that all parts of Gauteng thrive.

Johannesburg and Ekurhuleni, the corridor model extends the idea of focussed growth to the Western Development Corridor (aligned to the political authority of the West Rand District Municipality) and the Southern Development Corridor (the Sedibeng District Municipality).

The Gauteng Growth and Development Agency (GGDA) has established subsidiaries within corridors to drive development programmes specific to that area.

The Northern Development Corridor The City of Tshwane Metropolitan Municipality encompasses Atteridgeville, Bronkhorstspruit, Centurion, Cullinan, Ga-Rankuwa, Garsfontein, Hammanskraal, Irene, Mabopane, Mamelodi, Pretoria, Pretoria North, Rayton, Refilwe, Roodeplaat, Soshanguve and Winterveldt.

GGDA subsidiaries in the Northern Corridor are The Innovation Hub and the Automotive Development Centre (AIDC).

The automotive sector, research and development, innovation and the knowledgebased economy are the key elements driving the economy of the Northern Corridor. Successful projects include the Automotive Supplier Park, the Tshwane Special Economic Zone and the Auto City.

The Eastern Development Corridor The City of Ekurhuleni Metropolitan Municipality includes Alberton, Bedfordview, Benoni, Boksburg, Brakpan, Clayville, Daveyton, Dunnottar, Edenvale, Germiston, Katlehong, Kempton Park, Kwa-Thema, Nigel, Olifantsfontein, Springs, Tembisa, Thokoza and Vosloorus.

GGDA subsidiary: Gauteng Industrial Development Zone (GIDZ), the entity responsible for the OR Tambo Special Economic Zone (OR Tambo SEZ).

Ekurhuleni is known as “Africa’s Workshop” because of the enormous concentration of manufacturing, particularly between Alrode and Wadeville. Logistics is strong because of the proximity of Africa’s busiest airport and there is a long history

The Jewellery Manufacturing Precinct in the OR Tambo SEZ is booming.

F

ive geographic corridors have been conceptualised as a framework to grow the Gauteng economy in a sustainable and equitable way.

Building on established routes connecting major centres, the corridor concept allows for targeted interventions in specific areas and designated sectors.

With the province’s three large metropolitan areas already providing a focus for development in the metropolitan municipalities of Tshwane,

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12

FOCUS of important rail movements and rail manufacturing, exemplified in the Gibela consortium’s facility in Nigel. The OR Tambo SEZ focusses on exportoriented manufacturing through initiatives such as the Jewellery Manufacturing Precinct.

The Central Development Corridor The City of Johannesburg Metropolitan Municipality includes Alexandra, Diepkloof, Diepsloot, Ennerdale, Johannesburg, Lenasia, Meadowlands, Midrand, Orange Farm, Pimville, Randburg, Roodepoort, Sandton and Soweto.

GGDA subsidiar y : C o n s t i t u t i o n H i l l Development Company (ConHill).

The Central Development Corridor is the economic powerhouse of South Africa, contributing approximately 17% of South Africa’s gross domestic product (GDP), mostly through the manufacturing, retail and service industry sectors such as finance, services, ICT and pharmaceutical industries. Sandton is the richest square mile in Africa and one street in Soweto has been home to two Nobel laureates.

Constitution Hill itself is a former prison complex that throws light on South Africa’s ugly past and is today a museum in close proximity to the country’s highest court. The GGDA subsidiary aims to use culture and history not only to promote understanding but as way of supporting creative enterprises through the arts while rejuvenating the inner city.

The Western Development Corridor The West Rand District Municipality comprises three local municipalities, viz, Merafong City, Mogale City and Rand West City, which in turn cover the towns of Carletonville, Fochville, Krugersdorp, Magaliesburg, Muldersdrift, Randfontein, Wedela and Westonaria.

GGDA initiatives: Chamdor Auto Hub, West Rand SEZ, Lanseria Smart City Project.

Mining activity is dwindling and it is no longer the lifeblood of the West Rand. The intention is to diversify the economy into new areas such as renewable energy and tourism while building on a particular strength (through the Busmark factory) in bus manufacturing. Agriculture and agro-processing will not only create sustainable growth but contribute to food security. The N12 and N14 pass through the district, expanding the potential for such enterprises.

Expansion of the Lanseria Airport would potentially be a catalyst for further developments.

ConHill initiatives in the Central Corridor are supporting the creative arts.

The Southern Development Corridor The Sedibeng District Municipality comprises three local municipalities, Emfuleni, Lesedi and Midvaal, which administer the following towns: De Deur/ Walkerville, Devon, Eikenhof, Evaton, Heidelberg, Meyerton, Nigel, Sebokeng, Vaal Marina, Vaal Oewer, Vanderbijlpark and Vereeniging.

GGDA subsidiary: Vaal SEZ. Vanderbijlpark is a name that conjures up a particular era, a time when South Africa was rapidly industrialising after WWI. The town literally came into being to produce steel and it formed, together with Vereeniging and Sasol in the Free State, the points in the Vaal Triangle which was at the heart of South African heavy industry. Today is a different time and the Vaal SEZ is an attempt to grapple with new realities. A multisite, multi-sector SEZ will spread development over the district with a focus on low-carbon manufacturing and renewable energy production.

Agro-processing, logistics, the Blue Economy (related to the Vaal River), light manufacturing and skills development and training (leveraging existing tertiary institutions) are all sectors that hold potential. The region already has good transport infrastructure and the Heineken Sedibeng Brewery has been expanding. ■

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GAUTENG BUSINESS 2025

FOCUS

Promoting manufacturing and boosting exports A vital part of the strategy for Gauteng is to establish, promote and support Special Economic Zones (SEZs)

The OR Tambo SEZ at OR Tambo International Airport is at the centre of the aerotropolis in Ekurhuleni.

I

t is intended that each of the province’s five development corridors should have an SEZ that draws on the specific strengths of that region and promotes growth that will deliver employment opportunities and access to markets for previously excluded citizens.

GGDA is introducing SEZs to boost manufacturing, increase exports and employment and add momentum towards turning the Gauteng City Region (GCR) into a single, multitier integrated SEZ. A related initiative seeks to promote the growth of agro-parks and industrial parks as a way of boosting township economies and integrating their economies in the GCR.

160ha and houses a tenant pool of automotive component manufacturers and suppliers to Original Equipment Manufacturers (OEM).

OR Tambo Special Economic Zone (ORTSEZ) ORTSEZ was established to support industrial development in Gauteng with a specific focus on export-oriented, value-added industry, concentrated around OR Tambo International Airport (ORTIA) in Ekurhuleni Metro. The SEZ is administered by the Gauteng Industrial Development Zone (GIDZ). The value proposition of the ORTSEZ is centred around ORTIA, Africa’s largest airport with the capacity to handle 400 000 tons of cargo and over 25 regional and international flights on a daily basis. With easy access to rail and in heart of South Africa’s industrial and manufacturing engine which is the City of Ekurhuleni, ORTSEZ is the perfect value proposition for advanced manufacturing and beneficiation. The Jewellery Manufacturing Precinct is running efficiently and one of the largest food factories in the world has been operating in the zone since 2019, providing

Automotive Supplier Park The Automotive Supplier Park (ASP) is an industrial park based in Rosslyn in the northern corridor of the Gauteng City Region and although it is not classified as an SEZ, it shares all the good qualities that attracts tenants. It is run by the Automotive Industry Development Centre (AIDC). The ASP is modelled on leading international supplier parks, spans GAUTENG BUSINESS 2025

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PHOTO: Pretoria Travel/Wikimedia Commons

a platform for the increased export of fresh food products. Medical and pharmaceutical clusters are in the process of being established and sectors such as metal components and avionics are being planned.

West Rand In the context of declining mining output, a multisectoral and multi-site West Rand SEZ is planned to diversify the West Rand’s economy.

New investment will promote an eco-industrial cluster, develop industrial infrastructure, promote coordinated planning among key government agencies and the private sector and guide the deployment of development tools to enhance industrial acceleration.

The sector focus includes bus manufacturing, solar farms, agro-processing, hemp and cannabis processing, green hydrogen, biogas (agri-processing waste), large-scale agricultural and dairy farming and light-bulb manufacturing.

The Lanseria node is one of Gauteng’s most significant regional development opportunities.

The Lanseria Smart City is envisioned as a highimpact, compact, complex, mixed-use urban development. An important aspect is the potential of an expanded Gautrain bus and rail system. Apart from promoting a Gautrain Station at Lanseria Airport (which would link it to Sandton and OR Tambo International Airport), an additional station at the core of the Smart City would drive mixed-use activity. Discussions with the Gautrain Management Agency (GMA) is ongoing.

A hi-tech SEZ is envisaged in the Greater Lanseria Area to promote industrial agglomeration and mixed-use development. The Lanseria Smart City, at the core of the Greater Lanseria Master Plan, responds to the need to absorb the rapid growth of the Gauteng City Region. In doing so, it seeks to grow a mixed-use activity node around Lanseria Airport, using infrastructural investment and policy support to drive sustainable urban consolidation in the N14 and Malibongwe Drive development corridors.

An expanded Gautrain could boost the West Rand SEZ, Lanseria Airport and the proposed hi-tech SEZ.

and build on the historic competitive strengths and skills base of the area. Also to build a socially cohesive society with sustained growth that results in the creation and retention of quality jobs.

Targeted sectors include end-to-end hydrogen value chain; localisation of manufacturing of renewable energy components; agrivoltaics; new energy vehicles; battery energy storage systems; blue economy; agro-processing (including medical cannabis); aviation; defence; and logistics.

SEZ incentives A series of incentives have been packaged to support foreign and domestic direct investment. Most of these relate to regulations of the Department of Trade, Industry and Competition, the dtic.

INCENTIVE

DETAIL

Infrastructure funding

With the support of the dtic SEZ fund, designated SEZs can apply for grant funding from the dtic SEZ Fund for bulk and top structure.

VAT exemption

For goods produced for export.

Duty-free imports

Raw materials or equipment used in the zone will not attract duty.

Employment tax incentive

access the employment tax incentive.

Tax reduction

PHOTO: Gautrain

Possible tax reductions for projects +R200-million.

Loans

Vaal Special Economic Zone (Vaal SEZ) The Vaal SEZ will be a multi-sector, multi-site SEZ in the Vaal Region (Sedibeng District). The goal is to regenerate the area, support new economic activity

All employers operating in an SEZ may

Working-capital loans through a metals-financing scheme.

Lower corporate tax

A lower corporate tax rate of 15% compared to 28% is proposed.

Depreciation allowance

Eligible for an accelerated depreciation allowance on capital structures, 10% per annum for 10 years.

From poverty alleviation to national security: computational modelling enabling smart solutions that work “By extending its applications, we can harness the power of computational modelling to tackle poverty, unemployment and national security, and promote environmental, social and governance practices.” – Regina Maphanga

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omputer modelling refers to the process of creating virtual representations or simulations of real-world systems, allowing researchers and policymakers to study and analyse complex phenomena in a controlled environment or processes using computer software and algorithms. It entails the use of mathematical equations, data inputs and computational algorithms to mimic and simulate the behaviour, interactions and outcomes of the system being modelled.

Computer modelling offers several benefits and applications. It allows researchers, scientists, engineers and decision-makers to study complex systems, explore what-if scenarios, optimise designs, predict outcomes and make informed decisions without the need for costly or timeconsuming physical experimentation. It bridges the gap between theoretical understanding and real-world complexity, enabling us to gain insights into systems that may be inaccessible, expensive or dangerous to study physically.

By extending its applications, we can harness the power of computational modelling to tackle poverty, unemployment and national security and to promote environmental, social and governance (ESG) practices. As a thought leader in computational modelling, I firmly believe that leveraging its capabilities in these domains can reshape our society and create a more equitable and secure future.

Pover ty alleviation and unemployment: Poverty alleviation and unemployment are pressing socioeconomic challenges that require comprehensive approaches to address them effectively. Computational modelling offers a

GAUTENG BUSINESS 2025

powerful tool for understanding the intricate dynamics of these issues and developing targeted strategies for intervention.

B y applying computational models, researchers can simulate various scenarios to assess the impact of different policies and interventions on poverty reduction and employment creation. These models consider factors such as economic indicators, social conditions, educational attainment levels, access to resources and government initiatives, to cite a few.

Furthermore, computational modelling enables policymakers to identify potential bottlenecks or unintended consequences that may arise from certain interventions. By analysing various parameters within the model’s framework, decision-makers can optimise resource allocation by prioritising sectors with a high potential for job creation, while also targeting vulnerable populations that are most in need of support.

This understanding enables us to design targeted interventions, such as skill development programmes, job creation initiatives and social safety nets, with the aim of fostering inclusive economic growth and enhancing livelihoods.

National security: Ensuring the safety and security of nations in an increasingly digital and interconnected world demands advanced tools for risk assessment, intelligence analysis and strategic planning. Computational modelling plays a pivotal role in analysing complex geopolitical landscapes, simulating potential scenarios and assessing the impacts of various policies. By integrating diverse datasets and

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employing sophisticated algorithms, we can enhance our ability to detect emerging threats, formulate effective defence strategies and safeguard national interests.

ESG practices: The integration of ESG principles is vital for organisations that are committed to long-term sustainability and responsible business practices. Computational modelling empowers decision-makers to evaluate the impact of their actions on environmental conservation, social wellbeing and corporate governance. By incorporating diverse variables and quantifying the potential outcomes, organisations can identify sustainable investment opportunities, optimise resource allocation and enhance transparency and accountability.

Manufacturing: Next-generation manufacturing industries can push the boundaries of innovation by adopting modelling tools. Computational modelling supports innovation in product and process design, reduces the need for physical testing and prototypes, defines complex process parameters and leads to quality products and robust manufacturing processes.

Smart infrastructure and sustainable urban planning: The efficient utilisation of resources, resilience to climate change and the development of smart cities are critical components of a sustainable future. Computational modelling enables us to design and optimise infrastructure systems, integrating renewable energy sources, transportation networks and waste management systems. By simulating the interactions between these components, we can identify strategies that minimise environmental impact, enhance energy efficiency and improve the quality of life for urban populations.

Crisis response and disaster management: In the face of natural disasters, disease outbreaks or humanitarian crises, computational modelling offers crucial support for emergency response and resource allocation. By simulating different scenarios, emergency planners can identify optimal strategies, assess the potential impacts and allocate resources effectively. Furthermore, modelling the spread of infectious diseases

aids in understanding transmission dynamics, evaluating the effectiveness of interventions and formulating proactive healthcare strategies.

As computational modelling revolutionises our understanding of complex systems, it becomes a powerful tool for driving social impact. By leveraging its capabilities in poverty alleviation, unemployment mitigation, national security and ESG practices, we can foster a more inclusive, secure and sustainable future.

As a thought leader in computational modelling, I am committed to pushing the boundaries of its application in various domains, working towards a world in which technology is harnessed for the betterment of society. Let us embrace computational modelling as a catalyst for transformative change, shaping a future that leaves no-one behind and prioritises the wellbeing of both people and the planet.

By Regina Maphanga THE AUTHOR Regina Maphanga is the Research Group Leader for the Design and Optimisation research group at the Council for Scientific and Industrial Research (CSIR) in Pretoria. She has a PhD in physics from the University of Limpopo.

Email: RMaphangai@csir.co.za

CSIR

Now is the time to seize the tremendous oppor tunities offered by computational modelling. By partnering with us, a thought leader in computational modelling and sustainable business development, you can unlock new frontiers and drive innovation at a reduced cost and time. Our expertise will empower your organisation to harness the full potential of computational modelling, optimise operations, embrace sustainable practices and position your brand as a leader in the market.

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GAUTENG BUSINESS 2025

Investec Property has sold The Neighbourhood Square to Burstone Group and Flanagan & Gerard (F&G) for R380-million. Burstone (previously Investec Property Fund) and F&G each have a 50% stake in the property which is located in Linksfield, Johannesburg, and has Woolworths and Checkers among its tenants.

PHOTO: Burstone Group

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

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OVERVIEW

Mining Platinum is attracting investors.

SECTOR INSIGHT Two projects are underway at Cullinan diamond mine.

Where it all began: Driefontein gold mine.

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latinum group metals (PGMs) are not dead yet. SibanyeStillwater, which started life as a gold miner in Gauteng in 2013 and has become an international diversified mining and metals-processing group with a market capitalisation of R61.4-billion, is attracting large and reputable investors as the potential for PGMs to play a bigger role in a greener global economy becomes more evident.

Sibanye’s Keliber lithium project in Finland is being seen very positively by the investment community, as it will supply locally produced lithium hydroxide in a world that is going to need larger quantities to support green policies. The battery electric vehicle (BEV) market is growing as countries around the world set ever-tougher targets. The EU demands that all cars sold after 2035 will have zerocarbon emissions. Lithium hydroxide is a key component of the drive to grow the BEV sector.

The gold mines where Sibanye-Stillwater began are still active and producing gold. In 2023, one of the original mines to be purchased, Driefontein, produced 233 350oz of gold, in a SibanyeStillwater total for its South African operations of 810 584oz. That total includes volumes mined by DRDGOLD, in which Sibanye-Stillwater has a 50.1% stake. DRDGOLD operates surface tailings retreatment facilities on the West Rand and on the East Rand.

Harmony Gold’s acquisition strategy, including the purchase from AngloGold of Moab Khotsong, will result in it being the country’s biggest

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gold producer. It could produce an annual total of 1.7-million ounces.

O f H a r m o n y ’s e i g h t South African underground operations, one is located in the Klerksdorp goldfield and three in the West Rand.

Mponeng near Carltonville is the deepest level shaft in the world at 3 891m below datum and 2 062m below sea level.

In FY2023 Mponeng was the group’s largest gold producer, with the amount of 239 490oz contributing 16% of total production.

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 t wo developments projects, the C-Cut Extension and CC1East, which will increase carat production and extend the mine plan, possibly as far as 2040. The mine’s revenue in FY2023 was $182.9-million, which represented 52% of Petra Diamonds’ revenue.

The company runs four other mines in other provinces.

Cullinan is famous for its rare blue diamonds.

PHOTO: Sibanye-Stillwater

OVERVIEW

Mine bodies 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 and Energy (DMRE).

The Department of Trade, Industry and Competition (the dtic) has created two clusters to encourage innovation and collaboration among all the relevant parties in mining in South Africa. These are the Mining Equipment Manufacturers of South Africa (MEMSA) and the South African Mineral Processing Equipment Cluster (SAMPEC), which falls under the South African Capital Equipment Export Council, a dtic company. SAMPEC looks for opportunities for import replacement and local beneficiation along the value chain.

SACEEC runs an annual New Products and Innovation Awards programme. In 2022, the overall winner was ABC Ventilation Systems (ABC) for a product “Hardline”, that also ranked top in the Local Manufacturing: Innovation New Product (Mining category). The product is a modified HDPE polymer material converted into ducting for ventilation underground. The “Hardline” product overcomes safety and logistical as well as installation issues associated with traditional steel ducting. In 2024 ABC won again in the General Mining category with a system that uses smart technology to work out how many people are present at underground mining sites, and then adjusts the levels of ventilation to suit that number.

MEMSA, an industry cluster established in 2016, works hard to build a competitive advantage for South African mining equipment manufacturers by providing access to key markets and championing existing and future local technology and innovation. MEMSA is recognised by, and benefits from a close working relationship with the DMRE, the Department of Science and Innovation (DSI) and Minerals Council South Africa (MCSA).

The Mandela Mining Precinct, a public-private partnership between the DSI and MCSA, is managed by the Council for Scientific and Industrial Research (CSIR).

The first MEMSA Manufacturing Excellence Awards was held in 2022 and unearthed some innovative and ambitious projects.

The awards evening was held together with SEIFSA Awards for

ONLINE RESOURCES Council for Geoscience: www.geoscience.org.za MEMSA: www.memsa.org.za Minerals Council South Africa: www.mineralscouncil.org.za South African Capital Equipment Export Council: www.saceec.com

PHOTO: ABC Ventilation

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ABC Ventilation won an award at the 2024 New Products and Innovation Awards for its MiVent system, which can sense how much ventilation is needed in underground locations.

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 DSI and the MCSA. The University of the 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 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. ■ GAUTENG BUSINESS 2025

OVERVIEW

Energy Roof pergolas have solved a solar problem.

SECTOR INSIGHT A PPP is building an 800MW facility in Merafong.

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he two hotels of the Marriott Hotel Group within the Melrose Arch precinct faced a problem when they set out to install solar panels on the roofs of the Marriott Hotel Melrose Arch and the African Pride Hotel. There was not enough space.

SolarSaver, working together with Amdec, the developer responsible for Melrose Arch, came up with a solution based on the construction of a web of pergola-like structures, pictured, above the existing roof structures. The installed panels are expected to reduce costs and cut the hotels’ carbon footprint.

Altogether, SolarSaver has 16 systems totalling over 3 281.80kWp within Melrose Arch, all of which are managed on a “rent-to-own” model, with a 20-year power-purchase agreement ensuring that the client pays only for the green energy produced.

The Provincial Government of Gauteng is also pursuing solar solutions. In February 2024 the Diepkloof clinic in Soweto became the first provincial facility to start using the solar panels installed on its roof, and a programme for a further 20 health facilities and schools will be implemented. The plan for the 2024/25 financial year is for the provincial government to add 300MW, which, together with the installation of smart meters, could stave off two stages of loadshedding.

A large private initiative is happening in the western part of the province. Sibanye-Stillwater has approved the leasing of 1 600ha of its land to independent power producers who will develop a photovoltaic power station in the Merafong Local Municipality.

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

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The aim is to produce 800MW and the project is to be run by a public-private partnership (PPP) managed and developed by a non-profit company, Bokamoso Ba Rona.

The founding partners of the NPC are the Far West Rand Dolomitic Water Association (FWRDWA), Sibanye-Stillwater, t h e We s t R a n d D i s t r i c t Municipality and the Gauteng I nfrastruc ture Financial Agency (GIFA), representing the Gauteng Provincial Government.

A ne w 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.

D e veloping additional capacit y 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. ■ PHOTO: SolarSaver

Empowering Africa’s energy growth with sustainable solutions Partner with Forvis Mazars to tackle energy poverty across Africa.

Let’s work together to drive sustainable growth and create lasting impact.

Scan the QR code to learn more

forvismazars.com/za forvismazars.com

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Balancing profit and purpose Addressing energy poverty in Africa. By Taona Kokera, Director: Forvis Mazars.

underscores the region’s substantial energy access gap.”

This figure is consistent with other sources such as the World Bank’s Energy Progress Report 2023: “Around 575-million people in SubSaharan Africa live without access to electricity, highlighting the ongoing challenges in achieving universal energy access.”

Profit for purpose therefore seeks to balance financial returns with social impact, ensuring that businesses contribute to sustainable development while remaining economically viable. This approach supports the African Union’s 12 priorities, including the commitment to universal access to clean and affordable energy. By focusing on underserved markets, businesses can play a pivotal role in advancing these goals, demonstrating that financial success and societal benefit are not mutually exclusive.

However, investing in energy solutions for poverty-stricken areas clearly presents unique financial challenges and opportunities. The challenges revolve around the high initial costs. Developing infrastructure in underserved regions often requires substantial capital investment. In addition, these areas may also pose higher risks due to political instability, economic volatility or poverty. Furthermore, there is limited access to traditional financing, as many of these markets are considered too risky by conventional investors, resulting in limited access to commercial funding.

Taona Kokera, Director: Forvis Mazars

I

n the quest to address energy poverty in Africa, the debate often centres on the tension between profit and purpose. As global sustainability goals increasingly emphasise universal access to energy, particularly in underserved regions, the concept of “profit for purpose” emerges as a crucial strategy.

The concept of “profit for purpose” integrates economic objectives with social and environmental goals. It aligns seamlessly with the United Nations Sustainable Development Goals (SDGs), especially SDG 7, which calls for ensuring access to affordable, reliable, sustainable and modern energy for all. This alignment is particularly critical in Africa, where over 500-million people lack reliable electricity access.

According to the International Energy Agency (IEA) World Energy Outlook 2023 report: “As of 2023, approximately 570-million people in SubSaharan Africa still lack access to electricity, which

GAUTENG BUSINESS 2025

Innovative financing This creates the opportunity for innovative financing models. Multilateral finance institutions and climate finance mechanisms offer potential for blending funding sources. Hybrid models, such as

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Investments in off-grid renewable energy solutions tackle energy poverty while also creating access to new markets.

combining donor funds with private investments, can mitigate risks and attract capital to highimpact projects. By combining these different sources of funding – climate finance mechanisms and multilateral finance institutions – the financial burden is shared and the overall risk is reduced. This blended approach can make investments more attractive and financially viable.

Shared-value mechanisms offer companies the chance to align social impact with business success.

By incorporating social responsibility into their core operations, businesses can unlock new market opportunities and strengthen their competitive position. For example, investing in off-grid renewable energy solutions enables companies to tackle energy poverty while simultaneously entering an expanding market. This approach allows the investment in energy solutions to generate new revenue streams and foster business growth, ultimately becoming self-sustaining through the increased market potential.

Solving energy poverty has profound implications for economic growth and social development. Expanding access to energy stimulates local economies by creating jobs in the energy sector and associated industries. This economic activity can boost livelihoods and support small businesses. As businesses and households benefit from reliable energy, they can engage in more productive activities and smallPHOTO: Solarise Africa

scale enterprises, which can generate additional economic activity. This increased economic activity in turn leads to higher income and investment returns, thereby supporting the self-financing of energy projects.

Reliable energy access improves productivity by enabling businesses to operate more efficiently and by providing households with the means to engage in productive activities, such as small-scale enterprises.

Access to energy enhances living standards by providing basic amenities such as lighting, heating and cooking. This, in turn, supports better health outcomes and educational opportunities. Energy access can empower marginalised communities, particularly women and rural populations, by providing them with the resources needed to improve their socioeconomic conditions. Improved quality of life can lead to stronger, more resilient communities that are better able to support and sustain economic activities, further contributing to the financial viability of energy projects.

Closing the energy gap in Africa can become self-financing through such innovative mechanisms and strategies. By leveraging these strategies, the initial investment in closing the energy gap can be offset by the economic and social returns generated, demonstrating that such initiatives can indeed be self-financing in the long term. ■ GAUTENG BUSINESS 2025

OVERVIEW

Agriculture Innovation is improving agriculture.

SECTOR INSIGHT Karan Beef’s Heidelberg lot is the biggest in the world.

F

inding out how fast barley germinates is a vital component of the brewing process.

A new and faster method has not only created a great deal of interest, the “Rapid Screening of Barley” championed by three University of Johannesburg professors has also garnered first prize in the Gauteng Accelerator Programme (GAP) Innovation Competition in the Biosciences category. The ceremony is pictured here.. Professors Eduard Venter, Charles Whitehead and Dr Joseph Walker are the pioneers in agricultural technology whose breakthrough has been compared to a disposable test for Covid.

Both other award winners in Biosciences were innovators in agriculture: iGrovest Group (Lesedi Moseki) produces, trades and distributes agricultural commodities; Sholab Nutraceuticals (Prof Francis Shode and Cynthia Moyo) produces food fortified with exacts from edible medicinal plants.

The theme of the GAP awards was “Solving Societal Challenges Through Technology Innovation” and the winners received prizes that included seed funding and access to The Innovation Hub’s incubation programmes.

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 an emphasis on land

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

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tenure issues and improving food security. Linking producers to the value chain will benefit township economies.

G auteng’s agr icultural sector is focussed on producing vegetables. There is commercial farming in the southern sector of the province (part of South Africa’s maize triangle) and the farming of cotton, groundnuts and sorghum is undertaken in areas near Bronkhorstspruit (east) and Heidelberg (in the south).

The province is home to some of South Africa’s biggest agricultural companies, including AFGRI. Karan Beef is Africa’s largest processor of cattle and it has a large feedmill in Heidelberg. The Heidelberg farm is the largest feedlot in the world at 2 330ha and the abattoir facilities in neighbouring Mpumalanga process up to 380 000 head of cattle annually.

The Kanhym Agrimill in Vereeniging is one of three in the company’s portfolio, which collectively processes 250 000 tons of animal feed annually.

Kanhym Estates is the largest producer of pigs in the country.

Poultry is a big sector in farm Gauteng. Companies include Astral Foods, RCL Foods and Daybreak Foods, which has operations in four provinces. ■ PHOTO: The Innovation Hub

OVERVIEW

Oil and gas A gas turbine has been recommissioned.

A

n open-cycle gas-turbine plant has been renamed and recommissioned.

City Power, as an implementing agent of the Gauteng Energy Response Plan, will deliver 50MW from the plant which is located in downtown Johannesburg. At an inauguration ceremony held in April 2024, the John Ware Plant was named for a former City of Johannesburg mayor and the plant was officially opened.

The Provincial Government of Gauteng had previously announced that it wanted to take “decisive steps” to increase the availability and use of gas. National policy is driving a switch to the use of gas. A national Gas Utilisation Master Plan (GUMP) is being developed.

An allocation of 3 126MW to natural gas has been made in the national medium-term energy policy to 2030.

The announcement by Sasol that it will cut supplies of natural gas from Mozambique in 2026 has caused considerable discussion among users of the energy source, including the Industrial Gas User Association – Southern Africa (IGUA – SA), which said that this would have a significant impact on the manufacturing sector.

IGUA – SA’s website notes that natural gas could bolster socioeconomic growth, attract investment and render “the mining, energy and manufacturing sectors more efficient and globally competitive”.

The association has members in the mining, manufacturing, agricultural and transport sectors.

The country’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 200km 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.

The regulator and promoter of oil and gas exploration in South Africa, Petroleum Agency South Africa, has awarded coalbed

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

PHOTO: Gauteng Provincial Government

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SECTOR INSIGHT Sasol is cutting supplies.

Cutting the ribbon to inaugurate the John Ware Plant. methane gas and natural gas rights in the provinces on Gauteng’s border, Free State and KwaZulu-Natal.

Delta Natural Gas (DNG) Energy is rolling out 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.

NGV Gas, a subsidiary of CNG Holdings, is promoting compressed natural gas (CNG) as a versatile alternative across all sectors.

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. ■ GAUTENG BUSINESS 2025

OVERVIEW

Manufacturing Concrete growth expands to eSwatini.

SECTOR INSIGHT De Beers diamond sorting has moved to the ORTIA SEZ.

Railway sleepers in Brakpan.

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olossal Concrete Products has done its first deal outside South Africa. The company, which has manufacturing facilities in Brakpan, Gauteng, and De Aar in the Northern Cape, is expanding into Eswatini through a distribution agreement with the potential for a possible manufacturing facility investment with Nkonyeni Precast Limited (NPC).

The consortium that became Colossal Concrete Products comprised Colossal Africa Group, Mafoko Holdings, Clone Capital and Randvest Capital and is a Level 1 B-BBEE company. The precast concrete manufacturing facilities of Aveng Infraset were acquired. Brakpan continued to operate and the De Aar factory was reopened in 2023. The transaction included all the relevant plant and equipment, key staff, intellectual property and licences related to precast railway products, poles and masts, pipes and culverts, enclosures and related specialised product ranges which are manufactured and exported.

The Oliver Tambo International Airport SEZ (ORTIA SEZ), run by the Gauteng Industrial Development Zone, has become a new centre of manufacturing. The launch of the Jewellery Manufacturing Precinct has had the effect of crowding in a range of investors.

With the completion of the last of six buildings planned for Precinct 1, Phase 1 was officially declared complete in March 2024. In February 2023 the building that houses Pluczenik, a Belgian investor, was unveiled in the presence of King Philippe of Belgium.

Other buildings include a precious metals refinery as well as

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an administrative building where national regulator y agencies, the South African Diamonds and Precious Metals Regulator (SADPMR) and the State Diamond Trader (SDT ), are located.

De Beers’ decision to move its diamond-sorting facility to ORTIA SEZ and the investment of R81-million has created 89 permanent jobs and given the Precinct additional credibility.

Metcon Gold Refinery has established a gold-refinery f a c i l i t y, a R 1 0 2 - m i l l i o n investment with 100 permanent jobs. In2Food has set up a fruit and vegetable -processing facility, a first in Africa, with the largest refrigeration plant in the world. The company invested R257-million and created 2 500 permanent jobs.

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 PHOTO: Colossal Concrete Products

Ranger is produced at the plant in a wide variety of configurations including single cab, supercab and double cab, as well as lefthand 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 all.

In response to Ford’s investment, auto component and battery manufacturer Metair will establish a new logistics facility 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.

Manufacturing variety 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 Alberton. Germiston is the country’s biggest rail junction and Transnet Engineering has invested hundreds of millions of rands in new equipment at its facility there.

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

PHOTO: GGDA

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Keeping a keen eye on diamond quality.

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. ■ GAUTENG BUSINESS 2025

OVERVIEW

Construction and property A new construction programme offers skills training.

SECTOR INSIGHT SECTOR INSIGHT Gauteng has 700 informal settlements.

Students approve of the new training centre in Brakpan.

A

new Community Construction programme has been launched by Forge Academy & Labs, in partnership with mining company Sibanye-Stillwater, in Brakpan.

Forge Academy & Labs has a strong focus on digital technologies and courses being offered online, so the hands-on construction programme being presented at the precious metal refinery of Sibanye-Stillwater presents a major departure for the education provider. Designed to cover all aspects of construction, the course will include components such as bricklaying, plumbing and electrical wiring.

The new training centre was launched in February 2024 with two 12-month programmes offering certification courses in Amazon Web Services with Business Analysis, together with the Community Construction. Course graduates will earn a full SETAaccredited qualification.

A provincial government programme has been launched in the same field, but this one is designed to give skills to unemployed people living in townships. The aim is to provide the skills that can be applied to upgrade the quality of housing where people live.

The “iCrush le Lova” programme aims to create qualified bricklayers, electricians and plumbers. A complementary programme will improve and expand a database on township architects, hardware stores, building suppliers and contractors, all professionals and businesses that can work on the design and construction of upgrades to township housing stock. A further group of

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unemployed people will be trained to assist in compiling the database. There are about 700 informal settlements in Gauteng, and there are provincial plans to upgrade 68 in the short term.

The R300-million SA SMME Crisis Partnership Fund has been launched. A collaboration b e t w e e n t h e Pr o v i n c i a l Government of G auteng, the Industrial Development Corporation (IDC) and the SA SME Fund, it 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 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 S e c t o r R e t i re m e n t Fu n d is building an integrated settlement in the Sedibeng District Municipality south of PHOTO: Forge Academy & Labs

OVERVIEW

Constitution Hill has been upgraded.

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.

New cities 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 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 and

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

PHOTO: Joburg Tourism Company

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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 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.

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 2025

OVERVIEW

Transport and logistics Logistics hubs are key to growth.

SECTOR INSIGHT Gautrain is adding 148km.

Gautrain is set to expand.

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total of 82% of South Africa’s air cargo is transported through OR Tambo International Airport (ORTIA) and Gauteng has several cargo and freight handling facilities well-equipped to deal with rail and road deliveries and despatches.

An example of the kind of facility that serves ORTIA is the Riverfields Precinct in Ekurhuleni. 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.

The existing facilities include Equites Park Riverfields 1 (also 16ha and 9km from the airport) and Equites Park Riverfields 2, which hosts two major retailers on 43ha. A new section, Equites Park 3, covering 16 hectares, is currently in the planning phase. Equites Property Fund has released marketing material related to the new area (to be called Lords View): a gross lettable area of 430 450m² is situated on Allandale Road (M39) which gives access to the north (via the N1 and R21) and east (N12). The developers are expecting a new road to be built in the future. The planned K232 will link Allandale and Marlboro Roads, providing a direct link with the N3 and N12 ring roads.

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

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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 feasibilit y study to examine extending the Gauteng Rapid Rail Integrated Network has been completed.

The current network has 10 stations spread over 80km and the extension would add 148km and 19 new stations. The extended network will conclude Phase 1 of the long-term plans for Gautrain, with new lines extending from Sandton to Cosmo City, including stops in Randburg and Little Falls in the West Rand.

Two regional rail plans have been in the news, with national government announcing its approval of a high-speed rail link between Johannesburg and Durban corridor to alleviate the congestion that frequently occurs on the busy N3 highway.

Another scheme that is often referred to is to bolster rail connections nor thwards from Gauteng into Limpopo Province, where the N1 highway is overburdened. However, discussion of neither of these plans has been accompanied by a reference to budgets.

PHOTO: Joburg Tourism Company

OVERVIEW 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. Of the 18 major roads identified for rehabilitation, upgrade and construction, especially in Sedibeng and the West Rand, seven had been completed and handed over by early 2024. The K73 Allandale Road and Hendrik Potgieter Road in Roodepoort were among those completed. Waterfall City and Kyalami are the next target areas for road improvements while the planned Vaal interchange is set to be a major boost to economic development in the Vaal region.

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 private-sector initiatives and the various road, construction and design projects are expected to be implemented over the decade to 2031. Among the private companies that will be involved in projects are property companies Attacq Waterfall Investment, Steyn City and Century Properties and mining company Cullinan.

During Transport Month, the Gauteng Provincial Government partnered with Diageo to provide 40 000 learner’s licence opportunities to young people. Of these 10 000 were reserved for motorbike licences to support the Last-Mile project. The Last-Mile project is a collaboration between the provincial government, the Transport Education and Training Authority (TETA), Radah Skills Academy, UberSA, BoltSA and Takealot. The intention is to make it easier for young people in townships to earn incomes.

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 (AfCFTA), signed in 2019, comes into effect, allowing for greater and freer trade across the continent.

Airports OR Tambo International Airport caters for more than 20-million passengers every year.

Lanseria Airport to the north of Johannesburg has grown in importance as a secondary airport for the country’s busiest business

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

PHOTO: Riverfields Precinct

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Riverfields Precinct is well located for logistics. and commercial hub. It is a convenient landing point for travellers bound for regional centres like Rustenburg in the North West. Gauteng has several smaller airports 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 2025

OVERVIEW

Tourism The Big Four attract thousands of visitors.

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s the most significant contributor to South Africa’s economy, Johannesburg is unsurprisingly also home to many of the biggest conference and exhibition centres.

In describing the many conferencing venues available in the city, the Joburg Tourism Company has a category called Big Four.

In 2022, the Gauteng Provincial Government reported that it supported events that generated R7-billion which helped to create more than 17 000 opportunities to work.

In his first State of the Province Address in February 2024, Premier Panyaza Lesufi noted the following tourism and hospitality highlights in the previous year: • nearly 8-million international arrivals • which generated more than R98-billion • nine airline routes to Gauteng reintroduced in 2023 GAUTENG’S BIG FOUR CONFERENCE VENUES VENUE

LOCATION

FEATURE

Sandton Convention Centre

Sandton, “Africa’s richest square mile”

Near to 30 hotels with more than 1 300 four- and five-star rooms.

Johannesburg Expo Centre

Nasrec, next to the FNB Stadium and on the edge of Soweto

Can accommodate up to 20 000 people.

Gallagher Convention Centre

Midrand

27 venues on 32 hectares.

Kyalami Grand Prix Circuit & International Convention Centre, pictured

Kyalami

Multiple venues set within an FIA-rated Grand Prix circuit.

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SECTOR INSIGHT Nine airline routes have been reintroduced.

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.

Among the provincial government’s plans are positioning the Magaliesburg, Vaal River City and Suikersbosrand as destinations of choice. The last-named site in particular will be the subject of a public-private partnership and aspects will be commercialised. A campaign to encourage visitors will be launched to be called“ Visit Gauteng: Zwakala”.

Meetings Africa 2024 was the 18th holding of this business events trade show. The Sandton Convention Centre was the venue for the event, hosted by South African Tourism.

PHOTOS: Kyalami Grand Prix Circuit

OVERVIEW

Hotels The Southern Sun brand has been revived. 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 Time Square, Pretoria, which also has conference facilities, is one of two Sun International hotels linked to casinos. The complex is pictured, below.

Tsogo Sun, as distinct from the deactivated Tsogo Sun Hotels, has interests in casinos and gaming and runs seven hotels pairedwith 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.

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 ontime 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 Kyalami Grand Prix Circuit: www.kyalamigrandprixcircuit.com

PHOTO: Sun International

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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 art 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 which is a living museum that tells the story of South Africa’s journey to the achievement of democracy in 1994. The site is a former prison and military fort that graphically illustrates South Africa’s difficult past but as the home to the country’s Constitutional Court, it is also a positive symbol of the battle for the rights of all citizens which was won.

Freedom Park on Salvo Kop overlooking Pretoria also commemorates the struggle for freedom in South Africa but its narrative starts in the pre-colonial era. Freedom Park combines an examination of South Africa’s history with scenic beauty with superb views over the capital city, interactive exhibits and areas set aside for reflection. ■ GAUTENG BUSINESS 2025

OVERVIEW

Education and training Solar skills are in short supply.

SECTOR INSIGHT Asbestos schools are to be demolished.

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he Engineering and Technology Academy has been launched by Gauteng-based consulting engineering firm Med-TechEngineers.

The academy is located a few kilometres north of the company’s headquarters, with the appropriate address of 1 Mark Shuttleworth Street, Innovation Centre, meaning that it forms part of the cluster of knowledge-based enterprises that make up The Innovation Hub. Officially opened in July 2024, the Engineering and Technology Academy is offering a five-day SAPVIA PV Green Card Training course, accredited with the industry body, the South African Photovoltaic Industry Association. The course includes a practical installation day where participants mount a solar system on a training roof, including cabling and commissioning. The training of skills appropriate to renewable energy has not kept pace with the growth of the sector in South Africa.

In 2023 the Gauteng Provincial Government introduced a three-year tertiary bursary for the pupils who finished in the top three positions in every township school. The provincial budget has also allocated R6-billion for building new schools while mobile schools and schools made from asbestos will be demolished with the aid of an allocation from National Treasury.

The Schools of Specialisation programme will grow from 21 schools to 35 schools in the short term. The Soshanguve Engineering School of Specialisation, which has a focus on automotive skills, is an example of schools where there is a particular emphasis on one sector.

Three of South Africa’s top five business schools are in Gauteng: the Wits Business School, the University of South Africa’s (Unisa’s )

ONLINE RESOURCES Gauteng Department of Education: www.education.gpg.gov.za National Research Foundation: www.nrf.ac.za South African Photovoltaic Industry Association: www.sapvia.co.za

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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.

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.

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. ■ PHOTO: Soutpan Solar

OVERVIEW

ICT Gauteng data centres to be powered by Free State sun.

SECTOR INSIGHT eKasiLabs supports entrepreneurs.

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frica Data Centres, with large and expanding facilities in Johannesburg and Cape Town, has become the latest data centre company to construct a solar farm in order to secure a reliable source of power.

A 20-year power-purchase agreement has been signed with DPA Southern Africa, a joint company of Distributed Power Africa and the French utility, EDF. The first 12MW will be delivered from a solar farm near Bloemfontein in the Free State.

Africa Data Centres is part of the Cassava Technologies group of companies which has built a 73 000km fibre network across Africa. The company’s first data centre in Midrand, pictured, is being consistently expanded, with the first phase of growth delivering an additional 20MW with another 10MW additional capacity planned for the end of 2025.

The biggest data centre on African soil is under construction in Ekurhuleni. Teraco Data Environments secured a R2.5-billion loan to build the 50 000m² JB4 data centre on 6ha. The company already runs four data centres and a teleport on four campuses. The new 30MW facility, JB5, will join JB1 and JB3 on the Isando Campus.

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

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,

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

PHOTO: Africa Data Centres

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several eKasi laboratories, the Tshimologong precinct, universities and research institutes could be integrated, a more powerful ecosystem would be the result.

A H i g h -Te c h S p e c i a l 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.

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. ■ GAUTENG BUSINESS 2025

OVERVIEW

Development finance and SMME support Provincial government is procuring from small businesses.

I

n the 2023/24 financial year, the Gauteng Provincial Government spent R2.2-billion of its procurement budget with township enterprises. This is a deliberate policy to bring township businesses into the mainstream of the economy, and is part of a programme which over five years has disbursed R15-billion.

In a similar vein, an amount of R14.5-billion was spent between 2019 and 2024 with enterprises owned by women, youth and persons with disabilities. In addition, more than 4 000 township retailers received training in 2023/24 in enterprise development, learning various skills required to run a successful business. In terms of paying SMMEs on time the Provincial Government announced in February 2024 that 11 out of 14 departments had achieved 100% compliance on 30-day payments, with two reaching 99%.

The 2024 Gauteng Accelerator Programme Innovation Competition included a category called “Township Economy Revitalisation” and the winners were Nexus (which introduces an adaptive modular systems for modular construction), Elisheva Trading (agriprocessing, juices) and MALLI Fintech, a cashless solution for paying for taxi rides.

The launch of the Jewellery Manufacturing Precinct within the OR Tambo SEZ has not only been a boon to the big companies that have located to the site, but 14 SMMEs in the sector have taken up residence within the precinct.

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. The eKasiLabs programme is an extension of The Innovation Hub’s service offering. Facilities are spread across the five economic corridors of the province and a culture of innovation and entrepreneurship in townships is promoted. The facilities are located in Mohlakeng, Sebokeng, Garankuwa, Soweto, Tembisa, Alexandra, Mamelodi, Kagiso, Kathorus and Mabopane.

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.

ONLINE RESOURCES Gauteng Growth and Development Agency: www.ggda.co.za Small Enterprise Development Agency: www.seda.co.za The Innovation Hub: www.theinnovationhub.com

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SECTOR INSIGHT 14 SMMEs are active in the Jewellery Manufacturing Precinct.

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.

About half of South Africa’s formal SMMEs operate in Gauteng and more than half are in the wholesale and retail sector and the accommodation sector. The next most popular sectors are community, social and personal services.

The Small Enter pr ise Development Agency, Seda, is an agency of the National Department of Small Business Development in South Africa which offers customised nonfinancial business support services.

Seda has branches in Ekurhuleni (Kempton Park), Tshwane (Pretoria) and Johannesburg which runs five “Contact Points” at Vereeniging, Soweto, Carltonville, Nigel and Randfontein.

T h e n a t i o n a l Yo u t h 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 Public Works Programme (EPWP). ■

OVERVIEW

Banking and financial services Taxis are going digital.

T

axi commuters no longer need to carry cash. Oratile Seabela’s frustrations with the clumsy cash transactions that happened on her daily commute inspired her to come up with an app that would fix the problem.

Her MALLI Fintech app not only fixed the problem, allowing commuters to use their phones to scan QR code stickers on the taxi window, but it has earned her support and accolades along the way. A R200 000 grant from SAB Foundation Social Innovation and Disability Empowerment Awards allowed her to scale the business and in 2024 she was one of the winners in the Gauteng Accelerator Programme (GAP) awards, in the Township Economy Revitalisation section. Seabela’s app could have served as the poster for the theme of the 2024 annual awards, which took place under the heading, “Solving Societal Challenges Through Technology Innovation.”

Financial services company Old Mutual has been granted approval by the Prudential Authority to establish a bank, subject to certain licence conditions. With more than 30 000 employees in 14 countries, Old Mutual is best known for insurance, but it is now on the path to establishing a full-service bank. For some time, the group has offered the Money Account, a low-cost transactional account which doubles as a unit trust savings account. This product was offered by Old Mutual Transaction Services in association with Bidvest Bank Ltd and Old Mutual Investment Administrators.

Three other new banks are in the pipeline and have received regulatory approval: the Young Women in Business Network (YWBN) Mutual Bank, Postbank (a state entity) and the SA Innovative Financial Services Cooperative (SAIFSC), which will be run by the Department of Women, Youth and People with Disabilities.

While South Africa’s Big Four – Absa, FirstRand, Nedbank and Standard Bank – continue to play a big role in the banking sector, a feature of the 21st century has been the expansion of the financial

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: Vukile Makau on Pexels

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SECTOR INSIGHT Old Mutual is launching a bank.

services sector, in large measure driven by digital offerings from smaller banks. Capitec was one of the first, followed by Discovery Bank and Zero Bank.

From 2017, a number of new stock exchanges have been established, further evidence of an opening up of what had for many years been a static sector.

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

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 broadening of the scope of the bank’s ambitions. TymeBank has also signed a deal with TFG to expand its retail operations. ■ GAUTENG BUSINESS 2025

SACCI member chambers, Gauteng The South African Chamber of Commerce and Industry, SACCI, has several member chambers in Gauteng.

SACCI contact details Tel: +27 11 446 3800 Email: info@sacci.org.za Website: www.sacci.org.za Diamond Chamber of Commerce Based in Cullinan, serving Region 5 of Tshwane Tel: +27 (12) 305 2501 Email: info@diamondchamber.co.za Facebook: CullinanChamber

Small Business Chamber Africa Mobile: 084 852 5304 Facebook: SmallBusinessChamberAfrica Soweto Enterprise Chamber Tel: 010 109 1422 | 0607913097 Email: info@sowetoenterprisechamber.co.za https://sowetobusinesschamber.my.canva.site/the-voicetownship-business

Eastern Gauteng Chamber of Commerce and Industry General Manager Tel: +27 (11) 815 5750/1/2 Mobile: 082 450 1130 Email: manager@easterngautengchamber.co.za Website: www.easterngautengchamber.co.za Greater Boksburg Chamber of Commerce and Industry Tel: +27 (10) 285 0313 Email: admin@gbcci.co.za Website: www.gbcci.co.za Randburg Chamber of Commerce and Industry (RCCI) Tel: 086 101 9218 Email: admin@rcci.co.za Website: www.rcci.co.za South Africa-Nigeria Business Chamber Business development and events Cell: 082 323 5346 Email: office@sa-nigeriachamber.co.za Visas and administration Cell: 082 331 4225 Email: info@sa-nigeriachamber.co.za Website: www.sa-nigeriachamber.co.za

SACCI regularly hosts and holds meetings with business delegations from foreign countries.

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From leadership to critical digital business and From leadership to critical digital business and you management skills, our programmes empower management skills, our programmes empower you with practical skills for today’s business challenges. with practical skills for today’s business challenges.

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Executive Development: Master key leadership, Executive Development: Master key leadership, strategy and digital transformation skills. strategy and digital transformation skills.

Custom Corporate Solutions: Bespoke training Custom Corporate Solutions: Bespokeneeds. training solutions tailored to your organisation’s solutions tailored to your organisation’s needs.

Pracademia Approach: Practical insights from Pracademia Approach: Practical insights from seasoned industry experts and business leaders. seasoned industry experts and business leaders.

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