Gauteng Business 2016 edition
The 2016 edition of the Gauteng Business and Investment Guide is the premier business and investment guide for the Gauteng province and the Gauteng Growth and Development Agency (GGDA). In addition to detailed profiles of key provincial organisations, including the GGDA, the Automotive Industry Development Corporation Centre (AIDC), the Gauteng Investment Centre, the Gauteng IDZ, the Gauteng ICT Park SEZ and Constitution Hill, this edition includes well-researched economic and demographic data on the province, as well as insights into the province’s five development corridors and the new industries and development nodes in these corridors; a focus on Gauteng as a global city region; and key growth sectors for the province.
The 2016 edition of the Gauteng Business and Investment Guide is the premier business and investment guide for the Gauteng province and the Gauteng Growth and Development Agency (GGDA). In addition to detailed profiles of key provincial organisations, including the GGDA, the Automotive Industry Development Corporation Centre (AIDC), the Gauteng Investment Centre, the Gauteng IDZ, the Gauteng ICT Park SEZ and Constitution Hill, this edition includes well-researched economic and demographic data on the province, as well as insights into the province’s five development corridors and the new industries and development nodes in these corridors; a focus on Gauteng as a global city region; and key growth sectors for the province.
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OVERVIEW<br />
healthcare centres within South<br />
Africa, whereas pharmaceutical<br />
products produced by the private<br />
sector in South Africa serve<br />
a niche market.<br />
Investment opportunities:<br />
• Joint ventures with small<br />
manufacturers<br />
• Marketing of pharmaceuticals<br />
• R&D of new, innovative<br />
products<br />
• Scientific services such as clinical<br />
trials.<br />
Steel-related industries<br />
Within South Africa, most of the<br />
industry’s steel is produced and<br />
consumed in <strong>Gauteng</strong>. Metal<br />
products, machinery and equipment<br />
are produced predominantly<br />
in the Emfuleni Local<br />
Municipality, which is at the<br />
heart of South Africa’s iron and<br />
steel industry. Vanderbijlpark<br />
and Vereeniging in southern<br />
<strong>Gauteng</strong> are synonymous<br />
with steel production in South<br />
Africa. There are as many as 35<br />
aluminium processing firms operating<br />
in <strong>Gauteng</strong>, involved in<br />
both secondary processing to<br />
produce foils, cans, bars, rods<br />
and sheets, with final fabrication<br />
in the form of die-casting<br />
and sheet metal work. Within<br />
<strong>Gauteng</strong>, the automotive and<br />
packaging industries are the<br />
chief consumers of these products.<br />
With domestic production of<br />
crude steel amounting to 7.6-million<br />
tons in 2010, South Africa was<br />
ranked the 21st largest crude steel<br />
producing country in the world<br />
by the World Steel Association. South Africa is also the largest steel<br />
producer in Africa, producing nearly half (47 percent) of the continent’s<br />
total crude steel output in 2010.<br />
There is a relatively large domestic market for steel products within<br />
South Africa. Local sales of primary carbon steel products (as reported by<br />
SAISI members) were estimated at 4.2-million tons in 2010. Domestically,<br />
the main consumers of steel products are the mining, manufacturing,<br />
building and construction sectors, while a significant share is destined<br />
for the export market. With respect to the latter, 1.2-million tons of<br />
ferrous-scrap was exported from South Africa in 2010.<br />
The national government provides a range of incentives to support<br />
steel-related industries in South Africa. These are available through<br />
the Investment Support, Small <strong>Business</strong> Development, Empowerment<br />
Finance, Competitiveness Improvement, Techno-Industry Development<br />
Finance and Export Assistance programmes. In addition, the COSM Trust<br />
has created a privately owned fund to support exporters of value-added<br />
steel products.<br />
ArcelorMittal, based in Vanderbijlpark, produces flat iron and has been<br />
a major employer in the province since 1947. Another key industry player,<br />
AECI, is located in Modderfontein near Johannesburg. AECI is comprised<br />
of two principal divisions: AEL Mining Services (with a large factory site)<br />
and Chemical Services, which presides over 20 separate companies<br />
(including Senmin, the group’s mining Chemicals Company).<br />
Investment opportunities<br />
• Joint ventures with small stainless steel manufacturers<br />
• Marketing and export of stainless steel products<br />
• Manufacturing of final products, such as pipes and tubes<br />
• Non-core activities such as distribution and transport<br />
• With <strong>Gauteng</strong>’s proximity to key trading partners, ports and logistics<br />
arteries, the manufacturing sector is sure to continue to thrive<br />
in the region.<br />
103 GAUTENG BUSINESS <strong>2016</strong>
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