Gauteng Business 2016 edition

OVERVIEW
transform the CoT into a more attractive region in order to create
partnerships with investors interested in setting-up automotive
manufacturing facilities with the view to exporting components
into the Southern African market as well as to existing international
trading partners.
The programme aligns strongly with a number of policy drivers
at national, provincial and municipal level. The expected strategic
benefits of the TAC programme are as follows:
• Economic growth
• GDP growth
• Infrastructure development
• Attract Investment both foreign and domestic
• Create Enterprise Development opportunities
• Create thousands of jobs
• Increase tax revenue
• Support Government’s strategic objectives
Finally, a range of incentives are available to firms and investors
within the automotive industry in Gauteng. The value of incentives
provided through the national Department of Trade and Industry
amounts to around R5.9-million. Such incentives are a key factor
in encouraging firms within the automotive industry to upgrade
or expand their facilities within the province. For instance, Tata is
considering converting its assembly plant in Gauteng into a full-scale
production facility. This would be the company’s first big assembly
plant to be developed outside India.
Investment opportunities
• Export of automotive components
• Joint ventures with existing manufacturing companies
• Non-core activities such as distribution and transport
Pharmaceuticals
South Africa’s pharmaceutical
sector is worth approximately
R20-billion annually. Although
there are more than 200 pharmaceutical
firms in the country,
large companies tend to dominate
the field, with Aspen (34
percent) and Adcock Ingram (25
percent) the two key players, followed
by Sanofi, Pharmaplan
and Cipla Medpro. A number of
large pharmaceutical firms have
made significant investments in
South Africa. Adcock Ingram, for
instance, has invested heavily in
its South African operation. The
company is planning to spend
R1-billion on new developments
and upgrades in Gauteng.
The private sector accounts
for 80 percent of pharmaceutical
industry sales by value and
20 percent by volume, while
this ratio is reversed in the case
of the public sector. The public
sector dispenses comparatively
cheap pharmaceutical products
to its users in public hospitals and
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