South African Business 2018 edition

Key sectors
The leading economic sectors, as defined by
the Gauteng Growth and Development Agency
(GGDA), are finance (21% of provincial GDP), manufacturing
(19.7%), government services (15.7%) and
trade (12.8%).
Most of the major banks are positioned around
Johannesburg (which is home to Africa’s largest stock
exchange, the JSE), and the finance and business
services sector is a key focus in the provincial economy.
Many international corporates such as Citibank,
Microsoft and McDonald’s are headquartered in the
province, as it is seen as the commerce capital and
the gateway to Africa.
Gauteng has a varied manufacturing sector, from
heavy-steel, automotive assembly to the food and
beverages industry as well as light commercial and
industrial activity. Key food and beverage brands have
manufacturing plants in Gauteng. Nestlé and Pioneer
Foods have spent millions on new developments
and improvements. RCL, one the country’s leaders
in poultry production, has 18 farms and two feed
mills in the province.
Companies such as Kimberly-Clark, Proctor &
Gamble, ArcelorMittal, Transnet Engineering and
Aspen all have facilities in Gauteng Province. The
manufacturing sector in Gauteng employs 600 000
people in more than 9 000 enterprises.
Gauteng’s contribution to the country’s gold and
diamond production is still significant, and the province’s
mines account for about 21% of employment
in the sector nationally. The other primary sector,
agriculture, contributes little to the provincial GDP but
there are important districts such as Delmas, Cullinan,
Krugersdorp, Bronkhorstspruit and Heidelberg where
a variety of crops are cultivated. Large maize- and
grain-farming enterprises are found in the western
and southern parts of the province. Other products
produced in large volumes are vegetables, fruit, dairy,
poultry and eggs.
Economic future
The idea of the “City Region” is increasingly driving
economic planning and investment priorities,
REGION
both public and private. Linked to this is the need to
continually invest in infrastructure.
Gauteng is a national leader in attracting foreign
direct investment (FDI). In the period 2014-16, the
province attracted R66-billion. The Gauteng Growth
and Development Agency has a specialised subsidiary,
the Gauteng Investment Centre, which acts as a
“one-stop shop” for potential investors looking for
advice and support.
In 2016, the Gauteng City Region Economic
Indaba was attended by all the mayors of the region,
the national Minister of Finance and was addressed
the South African Deputy President. Gauteng
Premier David Makhura gave notice of “how we can
unlock, jump-start and reignite a sustainable and
inclusive growth trajectory for key sectors of our
provincial economy”.
Individually, the biggest Gauteng cities contribute
to the national GDP as follows: Johannesburg (15%),
Tshwane (9%) and Ekurhuleni (7%).
At the Indaba, several development corridors
of the City Region were identified, each with its
own industries and comparative advantages. A
15-year Gauteng Infrastructure Master Plan has
been adopted
Ekurhuleni is putting considerable resources into
infrastructure improvement. With a corridor-based
masterplan, the aim is to promote industrial activity.
The Gautrain has been an enormous success:
based on the connection to O. R. International
Airport, the high-speed train also links Pretoria and
Johannesburg. User numbers have been so good
that a contract went out in 2016 to supply 48 additional
coaches for the service, which is also set to be
expanded by a further 200km. Property prices near
to Gautrain stations have shown steady increases,
and whole new property developments have been
based on proximity to the rail line.
Capital Johannesburg
Population 13 400 000
Area 18 178km 2
Premier David Makhura (ANC)
Languages
Afrikaans, English, Sesotho,
Zulu
145 SOUTH AFRICAN BUSINESS 2018