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 />
and Agricultural Biotechnology Institute (FABI) is located at the<br />
University of Pretoria.<br />
Malt and Beer<br />
ing is focused on the production<br />
of strategic value-added products<br />
such as soya beans, rooibos tea,<br />
beverages, fruit and vegetables.<br />
A number of agriculturefocused<br />
research institutions are<br />
based in the province, providing<br />
critical support to agricultural<br />
production. For instance, the<br />
Agricultural Research Council’s<br />
(ARC) national research facilities<br />
are located in Pretoria, and include<br />
the Roodeplaat Vegetable<br />
and Ornamental Plant Institute<br />
and the Onderstepoort Veterinary<br />
Institute. In addition, the Forestry<br />
Three of the seven breweries operated by SAB in South Africa are<br />
located in <strong>Gauteng</strong>, and various complementary industries, activities<br />
and facilities (such as bottling plants and distribution hubs) have grown<br />
as a result of the company’s presence within the province. In addition,<br />
Heineken launched a new brewery in southern <strong>Gauteng</strong> in 2010, where<br />
it will brew 400-million litres of beer per annum.<br />
The alcoholic beverages industry is a significant contributor to<br />
national GDP in South Africa. An estimated R94.2-billion (or 4.4 percent<br />
of GDP) can be traced back to the industry’s manufacturing operations<br />
and capital expenditure. The industry is also a major employer within<br />
the country, employing in excess of an estimated 21 300 workers and<br />
supporting an additional 66 000 jobs directly through suppliers.<br />
Key players in the industry in South Africa include South Africa<br />
Breweries (SAB) (malt beer), United National Breweries (sorghum<br />
beer), Distell (spirits and flavoured alcoholic beverages, or FABs) and<br />
Brandhouse (malt beer, spirits and FABs). Each of these firms holds a<br />
substantial share of the respective segments of the market in which<br />
they operate.<br />
Brandhouse, the Heineken-Diageo-Namibian Breweries joint venture,<br />
is SAB’s main competitor in the malt beer market, and the third<br />
largest liquor company in South Africa by value of sales. In the case of<br />
the wine industry, Distell, KWV and DGB control a number of brands,<br />
while there are also a large number of smaller “independent” producers<br />
actively competing in the industry in South Africa.<br />
<strong>Gauteng</strong> is a key centre for the production of beer and malt within<br />
South Africa. United National Breweries produces Umqomboti, a traditional<br />
African beer, in northern <strong>Gauteng</strong>. The Amalgamated Beverage<br />
Industries, a subsidiary of SAB, has a manufacturing plant in Midrand<br />
which makes use of advanced technology. It also operates plants in<br />
Devland and Pretoria.<br />
Investment opportunities:<br />
• Investment in the production of ground-nuts, sunflowers, cotton<br />
and sorghum;<br />
• Investments in agro-processing products such as soya beans,<br />
rooibos, beverages, fruit, vegetables, and forestry;<br />
• Essential oil extraction from herbs and indigenous plants;<br />
• Expanding the ‘exotic’ meat (kudu, ostrich and springbok) market,<br />
locally and globally;<br />
81 GAUTENG BUSINESS <strong>2016</strong>