South African Business 2018 edition

A REGIONAL OVERVIEW OF
GAUTENG
A
World Bank report has shown that a 10%
increase in infrastructure spending results
in a 1% growth in GDP. Consequently, the
Gauteng Province is prioritising infrastructure
development.
The smallest province of South Africa in area is
also the most significant economically. About 40%
of South Africa’s manufacturing is done here, a third
of its electricity, gas and water output, 41% of the
country’s construction, 39% of its finance, real estate
and business activity and 34% of its wholesale, retail,
motor trade and accommodation.
Gauteng comprises three large metropolitan municipalities
in Tshwane (the administrative capital of
South Africa and home to the diplomatic corps and
many institutions of higher learning and research);
Johannesburg (the capital of Gauteng Province,
headquarters to many companies in a wide range of
sectors, including the financial sector symbolised by
the location of the JSE); Ekurhuleni (the manufacturing
hub of South Africa and host of the country’s
biggest airport, O.R. Tambo International). The City
of Ekurhuleni is creating an “aerotropolis” around the
huge transport hub.
The province has several outstanding universities,
and the majority of South Africa’s research
takes place at well-regarded institutions such as
the Council for Scientific and Industrial Research
(CSIR), the South African Bureau of Standards
(SABS), Mintek, the South African Nuclear Energy
Corporation (NECSA), the Human Sciences
Research Council (HSRC) and a number of sites
where the work of the Agricultural Research
Council (ARC) is done.
The Gauteng Division of the High Court of
South Africa (which has seats in Pretoria and
Johannesburg) is a superior court with general
jurisdiction over the province. Johannesburg is also
home to the Constitutional Court, South Africa’s
highest court, and to a branch of the Labour Court
and the Labour Appeal Court.
In 2016 there were interesting developments
in the political field in that two of the province’s
three metropoles (Tshwane and Johannesburg)
came under the control of a coalition of political
parties opposed to the ANC, the party that has
formed the national government ever since 1994
(the first democratic election) and had control
of most provinces and cities across the country.
The province’s gross domestic product (GDP) is
R811-billion, which is nearly 34% of South Africa’s
and about 10% of the GDP of Africa.
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