Gauteng Business 2016 edition

Transport options
Motor vehicle: As much as
R23-billion has been spent on
upgrading the road network
across Gauteng. South African
National Roads Agency Limited’s
(SANRAL) Gauteng Freeway
Improvement Project (GFIP) represents
a key element of this programme
of upgrades, and is set
to drastically reduce travel times
and traffic congestion along key
routes within the province’s urban
centres. It will also improve
accessibility into Gauteng and
inject approximately R29-billion
into the economy.
Rail and bus
In recent years, a great deal of
attention has been placed on
upgrading the capacity of South
Africa’s rail network and infrastructure.
The Passenger Rail Agency
of South Africa (PRASA) is set to
spend R123-billion in the acquisition
of 7 224 new trains, which will
be added to its fleet at a proportional
rate every year over the next
two decades. General Electric is
also partnering with Transnet to
produce new locomotives for use
within South Africa.
A variety of public transport
bus services are available in major
urban centres within Gauteng.
These include the Rea Vaya BRT
System, Metrobus and Gautrain
bus services. In Johannesburg,
the one-way cost of a Rea Vaya
bus ticket ranges from R5.50 on
inner city circular routes and R8.50
on trunk routes (the main routes
from one destination to another),
to R12.00 for the full trip from the feeder routes to the Central Business
District (CBD).
Taxi
Metered taxi cabs in Gauteng typically charge R10 per kilometre
with a flag rate of up to R50, although this can vary significantly
depending on the company. This is relatively expensive when
compared with equivalent fares charged by taxi cabs in other large
cities internationally. For instance, the standard taxi fare in New York
City is around US$2.50 upon entry and an additional US$0.5 for each
one-fifth of a mile, which equates to a flag rate of approximately
R23 and an additional charge of R5 for every 1.6 kilometres.
Office rentals
Rental rates for commercial property in South Africa are relatively
affordable by most international comparisons. In 2010, the cost of
rent for the average store owner in Johannesburg amounted to
just 4 percent of that paid by his or her counterpart in London’s
West End. In that same year, Johannesburg, together with Durban
and Cape Town, were ranked as the most affordable destinations
in terms of the cost of office rentals out of 55 cities worldwide,
with rental rates varying between R110 per square metre and R140
per square metre.
Starting a business in Gauteng
SPECIAL FEATURE
There are various types of business structures available in South
Africa, namely sole proprietor, private company, public company,
partnership, business trust, non-profit organisations, joint ventures
and an external company (which is a branch of a foreign company).
Ease of doing business comparisons with other countries
At the global level, South Africa performs relatively well along a
number of cross-country measures of competitiveness and the ease
of doing business. In 2010/11, the World Economic Forum’s Global
Competitiveness Report ranked South Africa in 54th position out of
139 countries. In the latest Doing Business report produced by the
World Bank, South Africa was ranked first out of 185 countries for the
ease of acquiring credit; and also ranked relatively highly in terms of
investor protection (10th).
41 GAUTENG BUSINESS 2016