Gauteng Companies 2013
Gauteng Companies 2013 is the seventh edition of this highly successful publication that, since its launch in 2006, has established itself as the premier business and investment guide to the Gauteng Province. Again endorsed by the Office of the Premier of Gauteng, Gauteng Companies is unique as a business journal that focuses exclusively on Gauteng and that also carries full Audit Bureau of Circulations (ABC) certification, meaning its print run and circulation of 15 000 copies is independently audited and verified.
2013 EDITION GAUTENG COMPANIES THE GUIDE TO BUSINESS AND INVESTMENT IN GAUTENG PROVINCE www.gautengcompanies.co.za | www.frontiermarketnetwork.com Absa Business Bank understands business in Gauteng Absa Bank Ltd. Reg No 1986/004794/06. Authorised Financial Services Provider. Registered Credit Provider. Reg No NCRCP7. Supporting development in KZN The Absa Group (“Absa”) is listed on the JSE Limited and is one of South Africa’s largest financial services groups, offering a complete range of banking, bancassurance and wealth management products and services. Absa’s business is conducted primarily in South Africa and on the African continent, where it has equity holdings in banks in Mozambique and Tanzania. Absa is a member of Barclays Bank PLC, which holds a stake of 56,6% in the Group. Barclays is an international financial services group, engaged in retail and commercial banking, credit card issuing, investment banking, wealth management and investment management services. Absa Business Bank The South African economy and the sustained prosperity of its people depend on the creation of new wealth and the growth of sustainable businesses in the commercial sector. Absa Business Bank is well positioned to deliver superior products and services to this important sector of the market. The combined strengths of Absa and Barclays allow Absa Business Bank to offer depth of expertise and skills as well as bestof-breed products and global solutions required to meet our clients’ specific business needs. In addition to providing industry-specific banking solutions, Absa Business Bank has a range of specialised financial products such as working capital solutions and sector-specific privateequity funding products designed around the needs of business clients, looking to expand their businesses. The Bank has an extensive regional network, servicing clients through a Relationship Executive, supported by a team of Industry Specialists, Operational Bankers and Client Service Consultants. Absa Business Bank believes in being more than just a financial partner. Being a true partner is about adding value, it is about industry support by providing a collaborative platform for networking and growth across all sectors and industries in the South African economy. opportunity to strengthen our partnerships with key local, provincial and government accounts. Absa is not only ideally positioned as a financial partner in the corporate and business space, but actively supports industry events and initiatives. A wealth of opportunities exists for the creation and development of businesses and Absa Business Bank has been involved in a range of regional initiatives. The success in achieving this tender is as a result of the One Absa collaborative spirit in action, as the ABB Public Sector Centre of Excellence, Sandton Business Centre and Credit collaborated to pull off this excellent deal! It is just one of many deals that Absa Business Bank Sandton has successfully delivered on to help drive our positive mid-year interim financial results and build our market share. Absa has long-standing relationships with the public and private sector in Gauteng. Given our skills and expertise, we are able to customise financial solutions to meet specific requirements, be it local business banking or specialised financial requirements across the African continent or with the rest of the world. In addition to supporting existing and established businesses, Absa also wants to be a partner in the growth of South Africa and has implemented initiatives to support the governmentâ€™s Enterprise Development agenda. In addition to efforts undertaken to promote entrepreneurship and assist businesses of all types, the Group also has an extensive social investment programme focusing primarily on job creation for marginalised communities, primary and secondary school education and initiatives around HIV/AIDS. Some of these include: Gauteng Provincial Government Absa Business Bank (ABB) recently concluded a deal with the Gauteng Provincial Government (GPG) in which we have been selected as the preferred bidder for the GPG funding tender. This is a term loan of almost R1 billion over a seven-year period. The funding is for the Gautrain project, a publicprivate partnership between the Gauteng Provincial Government and Bombela Concession Company. This ground-breaking transport project entails the construction of a state-of-the-art rail connection linking Tshwane, Johannesburg and OR Tambo International Airport. This winning tender reinforces our valuable role in the Public Sector environment and gives us an Absa Business Bankâ€™s value proposition Absa Business Bankâ€™s value proposition is to consider business from three different, but interconnected perspectives. The first perspective is to build effective business relationships with customers and this happens through Relationship Executives. Their main task is to determine business needs and provide appropriate financial solutions. The second perspective is to develop an in-depth understanding of the industry within which customers operate, which includes Construction, Manufacturing, Retail, Franchising, Professional markets, Logistics and Transport. The third perspective is a portfolio of products aimed at providing very specific financial solutions. These products could range from standard transactional products, to payroll solutions to highly specialised products designed for a specific sector or business need, like cash management solutions in the Franchising sector. Interaction with customers happens through business centres which are geographically located in the Regional Centre for Absa Business Bank. Absa Business Bank Sandton 15 Alice Lane, Norton Rose Building, Podium Floor Sandton, 2196 Tel: 010 226 8000 Absa Business Bank Klerksdorp 5th Floor, Absa Building, 91 OR Tambo Street Klerksdorp, 2571 Tel: 018 406 1170 contents contents gauteng Companies 2013 edition Published by Global Africa Network (Pty) Ltd 9 12 20 22 32 34 Introduction Foreword9 Gauteng Companies is a unique guide to business, investment and tourism in the province. Solid plans for success 10 Premier Nomvula Mokonyane highlights some of the key developments and successes in the province. Special features Regional overview of Gauteng Province 12 Gauteng’s economy drives growth in South Africa and in the region. Gauteng’s metropoles 18 Close to nine million people live in Gauteng’s metropoles. The rail revolution is rolling 20 Gauteng’s workshops are key to the plan to boost South Africa’s rail capabilities. Modern architecture is flourishing 22 Striking building design is adding appeal to the Gauteng skyline. Overview of the South African economy 26 Key facts and figures on South Africa’s demographics, economy, trade and investment. Destination Gauteng How are hotels holding up? 32 South Africa’s hotel sector is adopting new strategies in the post-recession environment. Tourism34 Gauteng’s revenue from tourism is approaching R30-billion. Events and conference facilities Gauteng is strengthening its position as a continental leader in conferences and exhibitions. Gauteng companies 2013 2 40 contents 46 51 58 64 73 88 100 Economic sectors Agriculture46 Poultry farming is one of Gauteng’s biggest subsectors. Mining51 Gauteng is at the centre of mining research. Manufacturing58 Gauteng leads the nation in manufacturing. Automotive60 A Tshwane automotive hub aims to improve efficiency in the sector. Food and beverages 62 Food and beverage companies are attracted to Gauteng’s big market. Engineering64 Gauteng’s engineering firms are driving the provincial economy. Transport73 The transport sector drives growth in all sectors of the provincial economy. Infrastructure80 Gauteng’s R30.6-billion infrastructure plan will boost every aspect of the provincial economy. Construction and property 81 Many property companies are listing on the stock exchange. Water88 Gauteng is looking for creative solutions to water-supply issues. Energy100 Gas from landfill sites is set to power the province. Media106 Most of South Africa’s big media companies have their headquarters in Gauteng. Advertising108 Advertising by cellphone companies is boosting revenues. Film109 Gauteng is planning an international film festival. Gauteng companies 2013 4 contents 110 114 122 133 146 17 N1 Information and communications technology Banking and financial services Development finance and SMME support Cullinan Mamelodi N4 Centurion dgeville Call centres and business process outsourcing N1 R21 Midrand Tembisa Alexandra Kempton Park Isando Benoni Edenvale n NNESBURG Education and training 133 Gauteng is building schools to tackle historical backlogs. Government South African National Government 146 An overview of South Africa’s national government departments. Gauteng Provincial Government 156 Gauteng Local Government 166 A guide to metropolitan, district and local municipalities in the Gauteng Province. References Mpumalanga Sector contents 44 Business organisations 144 Index168 Zithobeni Ekangala N4 N12 Daveyton Boksburg Germiston Wattville Brakpan Reiger Park KwaThema Katlehong Springs Vosloorus Tokoza Tsakane Duduza Nigel Maps N12 Gauteng locator map Gauteng regional map Gauteng municipalities 15 17 167 erton R59 132 Incentives make call centres very attractive to investors. Bronkhorstspruit Irene N14 122 Gauteng is setting up township enterprise hubs. Hammanskraal PRETORIA 114 The financial sector is a major contributor to Gauteng’s GDP. Limpopo A guide to Gauteng’s provincial departments and their MECs. N1 110 ICT is a big contributor to regional GDP. Devon N17 N3 Ratanda Heidelberg Meyerton ging Mpumalanga e N Gauteng companies 2013 N3 Motorway Main Road Railway 6 OFFICIALLY NO.1 BEST BUSINESS OPPORTUNITY 2011 More than 400 Maister millionaires enjoyed an effortless, secure minimum 19% return on their business capital. www.jamfactory.co.za And thatâ€™s without any office premises, staff, equipment, stock, marketing, skills or experience! +27 (0)12 470 3602 email@example.com www.bridgewealth.co.za 19% RETURN ON MINIMUM R1 000 000 CAPITAL credits GAUTENG COMPANIES 2013 www.gautengcompanies.co.za Gauteng Companies is published by Global Africa Network (Pty) Ltd ISSN 1990-6021 Editorial & production Publisher Editor Research and writing Creative director DTP operator Subeditor Production assistant Chris Whales Karen Kühlcke John Young Ian Jamieson Colin Carter Katie Reynolds Anjé Robberts Advertising National sales manager Loudon Cito Advertising representatives Action Africa, Carol-Ann Bantom, Christoff Scholtz, Debbie Bender-Overmeyer, Ediba Ngambo, Jeremy Petersen, Nathalie Horswell, Nigel Williams, Rashaad Essop, Shiko Diala, Tim Harrison and Veronica Dean-Boschoff Administration Managing director Clive During Administration and accounts Charlene Steynberg, Natalie Koopman CRM Administrator Zenobie Knox Distribution Lizé Fourie Printing CTP Distribution Gauteng Companies is distributed internationally on outgoing and incoming trade missions, through GGDA (Gauteng Growth and Development Agency); to 115 foreign offices in South Africa’s main trading partners around the world; at top international trade fairs; through the offices of foreign representatives in South Africa; as well as nationally and regionally via chambers of commerce, tourism offices, trade and investment agencies, provincial government departments, municipalities, companies and business-class lounges. Member of the Audit Bureau of Circulations Published by Copyright Gauteng Companies is an independent publication published by Global Africa Network (Pty) Ltd. Full copyright to the publication vests with Global Africa Network (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network (Pty) Ltd. Gauteng companies 2013 Global Africa Network (Pty) Ltd Company Registration No: 2004/004982/07 Directors: Clive During, Chris Whales, Richard Pembroke Physical address: 3rd Floor, Sunclare Building, 21 Dreyer Street, Claremont 7700, Cape Town, South Africa Postal address: PO Box 44573, Claremont 7735, South Africa Tel: +27 21 657 6200 • Fax: +27 21 674 6943 Email: firstname.lastname@example.org • Website: www.gan.co.za Photo credits Disclaimer While the publisher, Global Africa Network (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in Gauteng Companies is accurate and up-to-date, the publishers make no representations as to the accuracy, quality, timeliness, or completeness of the information. Global Africa Network will not accept responsibility for any loss or damage suffered as a result of the use of or any reliance placed on such information. 8 Photographs: Flickr, Dreamstime, Walter Knirr, Anglo American, Mediaclubsouthafrica. com, Scania, Railways Africa, Johannesburg Stock Exchange, Heineken Breweries, Stock. Xchng, mLab SA, Johannesburg Department of Tourism, Andrew Bell, JP De Kock, Gold Fields, Leon Krige, Melrose Arch, Cover photographs: (water, gold, steel, rail engineers) Veer, (barley) Heineken, (smelting) Geoff Brown, (AFGRI) Paragon / Andrew Bell, (Johannesburg skyline) Great Stock. foreword Gauteng Companies A unique guide to business, investment and tourism in Gauteng. G GAUTENG COMPANIES 2013 EDITION auteng Companies in business-to-business print 2013 is the seventh and electronic publications, edition of this highly producing a series of offisuccessful publication that, cially endorsed, annual print THE GUIDE TO BUSINESS AND INVESTMENT IN GAUTENG PROVINCE since its launch in 2006, has journals. In addition to the established itself as the prenational business guidebook, South African Business, every mier business and investprovince in South Africa is ment guide to the Gauteng now covered by this unique Province. Again endorsed by range of publications and the Office of the Premier of Gauteng, Gauteng Companies websites: Northern Cape is unique as a business Business, Free State Business, journal that focuses excluLimpopo Business, KwaZulusively on Gauteng and that Natal Business, Eastern Cape also carries full Audit Bureau Business, Western Cape of Circulations (ABC) certificaBusiness, Mpumalanga Business tion, meaning its print run and and North West Business. circulation of 15 000 copies is independently In an exciting new development, Global audited and verified. Africa Network has launched an online busiGauteng Companies is complemented by a ness platform called Frontier Market Network useful website, www.gautengcompanies.co.za, (www.frontiermarketnetwork.com), a business which includes an online record of the con- network for fast-growing markets. The Frontier tent from the print journal. Gauteng Companies community comprises companies, government 2013 is also available in e-book format through organisations and individuals involved in doing a hyperlink on the website’s home page, where business, investing, promoting or supporting deal transactions in Africa and other rapidly it can be read online or downloaded. The 2013 edition of Gauteng Companies developing economies. includes an economic overview of the province Global Africa Network thanks the dedicated (see p12), as well as detailed overviews of the sales team and the professional and committed region’s major sectors (see sector index on p44), writers, editors and designers who worked while the Destination Gauteng guide to travel so hard to produce this edition of Gauteng and business tourism (p31) includes a special Companies. We thank the Office of the Premier, feature on how the hotel sector is adapting to companies, parastatals and other organisathe post-recession environment. tions that provided us with information and Additional special features focus on the rail supported this undertaking. revolution that has occurred as a result of South Africa’s massive infrastructure drive (p20); how modern architecture is adding appeal to Chris Whales, Publisher the Gauteng skyline (p22); as well as a closer Global Africa Network look at Gauteng’s main metropoles (p18). Email: email@example.com Global Africa Network (www.gan.co.za), the www.gautengcompanies.co.za publisher of Gauteng Companies, specialises www.gan.co.za www.gautengcompanies.co.za | www.frontiermarketnetwork.com 9 Gauteng companies 2013 Global Africa Network Promoting business, trade and investment in South Africaâ€™s nine provinces www.gan.co.za Global Africa Network publishes a unique range of officially endorsed business guides and complementary websites to South Africaâ€™s nine provinces. To profile your organisation in any of our publications, call us on +27 21 657 6200 or email firstname.lastname@example.org a regional overview of gauteng province Gauteng’s economy drives growth in South Africa and in the region. South Africa’s smallest province geographically is the country’s most important economic region. (19.7%), government services (15.7%) and trade (12.8%). In her 2011/12 budget speech, former MEC for Economic Development Qedani Mahlangu shared the following statistics: by John Young • Gauteng contributes 10% of the GDP of the Southern Africa Development auteng Province covers just 1.4% of Community (SADC) South Africa’s land area but it produces • The province is the fourth-biggest about a third of South Africa’s gross African economy domestic product (GDP). Whereas mining • It is the 56th-biggest economy in used to account for Gauteng’s dominance of the world the regional economy, the province is now • In the previous year, 46% of net new jobs a leader in a wide range of other sectors: in South Africa were created in Gauteng finance, manufacturing, commerce, IT and The manufacturing sector in Gauteng media among them. employs 600 000 people in more than The Bureau of Market Research (BMR) has 9 000 enterprises. Manufacturing capacity shown that Gauteng accounts for 35% of extends from the heavy-steel industry total household consumption in South Africa. clustered around Vanderbijlpark and The leading economic sectors are finance Vereeniging (close to the important syn(21% of provincial GDP), manufacturing thetic-fuel and chemicals producer in Photo: Melrose Arch G Sasolburg in the neighbouring Free State Province), through the medium industries associated with automotive manufacture, assembly and parts (mostly in Pretoria) and the food and beverages industry (in most parts of the province) to lighter industry in parts of the Ekurhuleni Metropolitan Municipality, near the airport. Gauteng’s reputation as a manufacturing powerhouse has been enhanced in recent years as a number of local and interThe South African Diamond Centre building (right). national companies have set up new plants in the province. These include a new brewery (Heineken) and a new plant to assemble motor vehicles (Tata). Companies are also increasing manufacturing capacity: BMW, Ford and Nissan have all expanded their production lines. Nestlé is another company that has invested heavily in increased production, as have Procter & Gamble and Kimberly-Clark. The massive national infrastructure programme will benefit many of Gauteng’s Heineken has set up a new plant in Meyerton. manufacturing subsectors, not least the rail manufacturing and service industry, to build an ‘aerotropolis’ in partnership with the clustered mainly in the Ekurhuleni metro. provincial government and private investors. Transnet Rail Engineering’s huge plant at The intention is to link the airports of OR Tambo Koedoespoort in Pretoria is already hard at and Lanseria, and expand logistics capabilities. work producing large numbers of locomotives Gauteng’s already strong position as a logisfor Transnet’s expansion programme. tics hub is the focus of several developments. Gauteng is not just an important centre of New inter-modal terminals are being built at economic activity in itself, it is also an important Sentraraad and Tambo Springs, both of which will launching pad for local and international busi- massively increase container-handling capacity. nesses to enter the African market. The country’s Four major terminals already function in the biggest airport, OR Tambo International Airport, province. As an indicator of international interest, is at the core of the province’s logistical network. global logistics company FedEx opened a new Other airports include Rand Airport (Germiston), freight forwarding office in Johannesburg in 2011. Lanseria (north of Johannesburg), Wonderboom The completion of the new multi-product (Pretoria) and Grand Central (Midrand). pipeline from the coast to the Highveld is a Ekurhuleni Metropolitan Municipality plans further spur to logistics investment. Reatile Group Gauteng companies 2013 14 photos: top: Walter Knirr bottom: heineken special feature special feature ZIMBABWE MOZAMBIQUE BOTSWANA Limpopo NAMIBIA Mpumalanga North West Gauteng SWAZILAND Free State Northern Cape KwaZuluNatal LESOTHO Eastern Cape Western Cape launched a new liquified-petroleum gas depot (LPG) in Krugersdorp in 2012, which will cater to the inland market. The R50-million facility received funding from the Industrial Development Corporation. The same company is building a R1-billion petroleum storage and distribution plant near Heidelberg, near the endpoint of the Transnet Pipelines’ multi-product pipeline. A total of R23-billion has been spent on upgrading Gauteng’s already extensive road network, and public transport is the focus of the multi-billion-rand Gautrain Rapid Rail Link and the bus rapid transit (BRT) system. In 2011, a task team was set up to produce a 25-year Integrated Transport Master Plan, and this is due to be finalised in 2013. The intention is to create one provincial transport authority and to integrate rail, road and minibus taxis into one coherent system. Although mining no longer holds the dominant position it once did, 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. In broad terms, the following geographical division of economic activity holds true for Gauteng. In the provincial capital, Johannesburg, financial services and commerce predominate. Tshwane (which includes Pretoria) is home to many government services and is the base of the automotive industry and many research institutions. The Ekurhuleni metropole has the largest concentration of manufacturing concerns in the country, ranging from heavy to light industry. 15 Gauteng companies 2013 The western part of the province is concerned mainly with mining and agriculture, while the south has a combination of maize farming, tobacco production and the heavy industrial work associated with steel and iron-ore workings. The province has several outstanding universities, and the majority of South Africa’s research takes place at wellregarded institutions such as the Council for Scientific and Industrial Research (CSIR), The Suikerbosrand Nature Reserve. the South African Bureau of Standards (SABS), Mintek, the South African Nuclear Energy Corporation (NECSA), the Vaal Dam are major tourist attractions, while the Human Sciences Research Council (HSRC) ecotourism opportunities have the potential to and a number of sites where the work of the grow. The Suikerbosrand Nature Reserve is a Agricultural Research Council is done. prime regional asset. One of the main priorities of the Gauteng Provincial Government is to develop the central West Rand District Municipality business districts of the region’s major towns. The focus for the years to 2014 is on the cities Towns: Randfontein, Krugersdorp, Westonaria of Germiston, Krugersdorp and Vereeniging. Gauteng is administered by three metro- The West Rand is the area of Gauteng where politan authorities (covered separately in this mining has retained its strongest presence. publication) and two district municipalities: Large-scale commercial farming also takes place. Randfontein Local Municipality is where the world’s deepest gold mine was dug. To the Sedibeng District Municipality south, mining contributes 75% to Westonaria Towns: Sebokeng, Sharpeville, Vereeniging, Local Municipality’s economy. An industrial Vanderbijlpark park is planned that will assist in the process The Emfuleni Local Municipality (including of diversifying the economy. Mogale City Local Evaton, Sharpeville, Vanderbijlpark and Municipality is very much the economic driver Vlakplaas) is at the core of the Vaal Triangle, of the district, including as it does the town which in turn is at the heart of South Africa’s of Krugersdorp. iron and steel industry. Metal products, Krugersdorp has considerable manufacturing machinery and equipment are made here. capacity, and has a motor-sports racing track ArcelorMittal has been a major employer in that attracts international drag-racing events. Vanderbijlpark since 1947. Tourism in the district is mostly located within Heidelberg produces bacon and tobacco. the surrounds of Mogale City. Significant attracEskort and British American Tobacco are the two tions include the Cradle of Humankind, the major companies in the area. The Midvaal area Magalies Meander, the Sterkfontein Caves and has agriculture and tourism as its two main eco- the Krugersdorp Game Reserve. nomic activities, and the city of Meyerton is the site of newly built, multi-million-rand Heineken brewery. The Klip River at Henley-on-Klip and Gauteng companies 2013 16 photo: OSEWA/flickr special feature special feature GAUTENG PROVINCE N1 Limpopo North West Mpumalanga Hammanskraal N1 PRETORIA N4 Cullinan Mamelodi Zithobeni N4 N4 Centurion Atteridgeville Bronkhorstspruit Irene N1 N14 Magaliesburg Muldersdrift Sandton Krugersdorp Randburg N14 Randfontein Mohlakeng Bekkersdal Westonaria Roodepoort Ekangala R21 Midrand Tembisa Alexandra Kempton Park Isando Benoni Edenvale JOHANNESBURG N12 N12 Daveyton Boksburg Germiston Wattville Brakpan Soweto Alberton Reiger Park KwaThema Katlehong Springs N12 Lenasia Vosloorus N1 Tokoza Tsakane Duduza Nigel Kagiso R59 Devon N17 N3 Evaton Ratanda Heidelberg Meyerton Sebokeng Vereeneging Boipatong Bophelong Sharpeville Vanderbijlpark Mpumalanga N1 N Free State N3 Motorway Main Road Railway . 17 Gauteng companies 2013 special feature Gauteng’s metropoles Close to nine million people live in Gauteng’s metropoles. City of Johannesburg The City of Johannesburg is the capital city of the Gauteng Province. It is also South Africa’s unofficial financial capital, with a high proportion of the country’s financial institutions based in the city. Many international companies looking for a first presence in Africa have set up offices in Johannesburg. Gold mining was the first economic activity that brought large numbers of people to the area, and the city grew astonishingly quickly after 1886. Today, the city does most of its business in financial services (banking, investment and insurance), commerce, trade and manufacturing. Media, advertising and IT are other strong sectors. Most major banks are headquartered in the city, as is Africa’s largest stock exchange, the JSE. Mining stocks still predominate on the JSE. Creative initiatives to invigorate the inner city of Johannesburg are paying off. City agencies such as the Johannesburg Development Agency are investing in infrastructure, such as pavements and public art, which has helped to persuade businesses to follow suit. The central business district is South Africa’s largest urban development zone at 18km2. Businesses investing there attract generous tax concessions. The Maboneng Precinct in the eastern part of central Johannesburg is another attempt to revitalise the inner city. This project has an arts flavour. Sandton and Rosebank have firmly established themselves as the new commercial hubs for the city, and are in the process of greatly expanding available retail and office space. The Gautrain project has served to strengthen this trend, with major stations serving both Sandton and Rosebank. The city’s population of over three million has a wide choice of sports to play and watch Gauteng companies 2013 18 Zoo Lake in Johannesburg. at a superb collection of stadiums. Despite its built-up nature, Johannesburg can boast of some splendid parks, and places like the Johannesburg Zoo and Bruma Lake are extremely popular. Frequent music concerts are held in public open areas, and the city has more than 300 heritage sites and about 30 major galleries and museums. These include the emotive Apartheid Museum at Gold Reef City and Museum Africa in Newtown. City of Tshwane Pretoria is South Africa’s administrative capital and seat of government. The city of more than two million citizens falls under the City of Tshwane Metropolitan Municipality and has a varied economy. Plans are underway to revitalise the central business district of Pretoria, which has a high proportion of government department buildings. The West Capital Precinct aims to make the CBD pedestrian-friendly and attract new business. There are also big plans to develop Centurion into a major business node. The City of Tshwane will issue its first municipal bond in 2012, with the intention of raising money to fund capital projects in the metropole. In 2011, Metsweding District Municipality was added to Tshwane, thus bringing the towns of special feature Bronkhorstspruit and Cullinan Metropole Population Combined 2012/13 budget under the metro. This northEkurhuleni 3 million R21.3-billion eastern part of the province has an economically varied City of Johannesburg 3.9 million R37-billion profile that includes mining City of Tshwane 2.4 million R24.9-billion and flower cultivation. Services Gauteng’s metropoles. make up the biggest economic sector (27%) with manufacturing, finances and trade following in importance. Mining is still a strong Ekurhuleni Metropolitan sector, with the town of Cullinan a historically Municipality important town, as the largest-ever diamonds were found there. Ekurhuleni includes the towns of Germiston, The Nan Hua Buddhist Temple in Bronk- Boksburg, Benoni, Kempton Park and Springs. horstspruit is the largest Buddhist temple in Ekurhuleni plays a vital role in the national economy. Firstly, it is the site of OR Tambo InterSouth Africa. The Jacaranda City could be known as any national Airport. A major international airports number of other nicknames; among them conference will be held in the city in 2013, and Diplomatic City and Research City. plans are underway to develop the country’s first ‘aerotropolis’ around Ekurhuleni. Pretoria has: • The embassies of every foreign country Secondly, it is home to a large number of manurepresented in South Africa facturing enterprises that contribute 19.7% of • The University of Pretoria, the University of Gauteng’s gross domestic product (GDP). The South Africa and the Tshwane University of metropolitan municipality is also one of the most densely populated areas of South Africa. Technology • The Council for Scientific and Industrial Wadeville-Alrode and Germiston-Daveyton Research (CSIR), the Nuclear Energy Corpo- are important industrial corridors. Germiston is ration (Necsa), the South African Bureau of home to the Rand Refinery Limited, South Africa’s Standards (SABS) and the Human Sciences only gold refinery. Research Council (HSRC) A number of railway businesses are located • The National Research Foundation, South near to South Africa’s biggest rail junction in African Biodiversity Institute, Sports High Germiston. Transnet Rail Engineering has a big Performance Institute, Africa Institute of plant at the junction, and there are rail workSouth Africa, Forestry and Agricultural Bio- shops in Nigel (Union Carriage and Wagon) and technology Institute and the Institute for Boksburg (DCD Rail and Lennings Rail Services). African Renaissance Studies The lakes at Brakpan and Benoni are popular • The Innovation Hub (CSIR, the Univer- sites for recreation, and the former town has a sity of Pretoria and Gauteng Provincial casino. Several hotels, particularly those near Government) the airport, have conference and event facili• Automotive Supplier Park, Rosslyn ties. The World Trade Centre, near OR Tambo • BMW, Ford, Tata truck assembly plant and International Airport, is one of South Africa’s Renault-Nissan, all operating at Rosslyn biggest conference venues. • Other industries include food and beverages Tourist attractions include an aviation museum and metal products. in Germiston, the AECI Dynamite Factory Museum • Services (with government making up a in Edenvale and the Ubunye Museum near the significant part) contribute 65% to the airport, which relates the story of the negotiations city’s economy, with industry (21%) and that led to South Africa’s transition to democcommerce (12.5%) making up the bulk of racy. Bird watchers are well catered for in the the remainder. metropole. 19 Gauteng companies 2013 special feature The rail revolution is rolling Gauteng’s workshops are key to the plan to boost South Africa’s rail capabilities. M ore than a thousand new locomotives for Transnet. Three hundred and sixty new coaches every year for 20 years for the Passenger Rail Agency of South Africa (Prasa). Speciality wagons for the chemical and automotive industries. A total of 19 400 new wagons for Transnet Freight Rail before 2020. These are some of the orders that are rolling in as part of South Africa’s massive infrastructure drive, a project that includes planned expenditure of R300-billion on rail. Freight volumes within South Africa more than doubled between 2003 and 2007, according to the National Department of Transport. The percentage of road freight increased to 87%, a figure that is unsustainable in the long term. Much of the spending on South Africa’s transport infrastructure is designed to get freight off the roads. Gauteng’s rail workshops are gearing up to deliver increasing volumes of locomotives, wagons and associated hardware. There is significant foreign interest too. Gauteng companies 2013 20 In February 2011, Transnet revealed the first of the General Electric C30ACi locomotives that are being brought into service as they are completed. A minority of these are being built in the United States, with the balance being manufactured at the workshops of Transnet Rail Engineering (TRE) at Koedoespoort, Pretoria. Prasa is the agency responsible for passenger transport, and it has big plans too. Prasa will spend R123-billion on buying 7 224 new trains and having 360 new coaches added to its stock every year for two decades. Transnet Rail Engineering will build a factory to the specifications of the company that wins the Prasa bid. When the order is completed, the facility will revert to the state in the form of Transnet. This will ensure high local-content values for the contract and put TRE in a better position to bid for export contracts in the future. Transnet Freight Rail (TFR) is in the process of upgrading every one of its lines to increase capacity. More iron ore to Saldanha means more work for Union Carriage & Wagon (UCW) in Nigel. The photo: railwaysafrica Rail tankers manufactured in the Germiston rail engineering workshops. photo: wikipedia special feature Murray & Roberts subsidiary is contracted to deliver 32 new 15E locomotives for that line. UCW has put more than 14 000 new locomotives, trains and coaches onto Southern African rail lines since it started operating in the late 1950s. It delivered 64 trains for the Gautrain project. Increased volumes are being achieved by TFR on the coal line to Richards Bay, and there are plans to increase the quantity of fruit hauled out of Limpopo and the amount of The Class 43-000 type GE C30ACi locomotive. manganese transported to Port Elizabeth. All of these plans need new locomotives and new wagons. The big locomotive contract is a shot in the Apart from Transnet Rail Engineering’s arm for the large workshops at Koedoespoort Germiston workshops and UCW’s plant at and will help to gear the facility for the export Nigel, DCD Rail has a large workshop in the market. There are 3 434 permanent employees East Rand town of Nigel, and Lennings Rail at the plant. Services operates out of Boksburg. Lennings Big investments in machinery have enabled the TRE Germiston workshop to tackle ever is a subsidiary of the Aveng Group. DCD has developed a coach bogie with 85% more complex tasks. The delivery in late 2011 local content, something that will help in the of specialised ammonia rail tankers to fertiliser, bidding process with Prasa. chemicals and explosives company Omnia was US company Electro-Motive Diesel (EMD) a milestone. has formed a partnership with local group Transnet Pipelines has ordered a new set of Barloworld. The joint venture, Electro-Motive petrol tanker wagons from the Germiston works, Diesel Africa (EMDA), will service existing and with a growing reputation for high-quality EMD customers in Southern Africa and be in workmanship, is well positioned for growth. Specialised rail wagons have been built to a strong position to fulfil some of Transnet’s accommodate new vehicles. Toyota and TFR requirements. Alstom holds 14% of the international market have signed an agreement that will see 60 fewer in rail rolling stock and has a long history in South trucks lumbering up the N3 from Durban to Port Africa. It is bidding for Prasa’s first tender for the Elizabeth. TFR has increased the number of cars design, manufacture, supply and maintenance it is transporting to Gauteng from 100 to 500 of 3 600 carriages. per week. Dominix Import & Export makes sleepers TFR is also investigating the possibility of and parts for wagons, and was involved with carrying new cars for Mercedes-Benz SA from TRE in exporting equipment to Angola in 2011. its plant in East London to the Highveld, and returning to the coast with new BMWs for export. Cars transported by train – an excellent metaTransnet Rail Engineering phor for the progress of the rail revolution. TRE has facilities all over South Africa, but the plants at Koedoespoort and Germiston are among the most important in the Transnet Group. 21 Gauteng companies 2013 Modern architecture is flourishing Striking building design is adding appeal to the Gauteng skyline. G Norton Rose Towers (Sandton). Client: Zenprop. Principal contractor: WHBO/Tiber joint venture. Architect: Paragon. photo: andrew bell auteng is a dynamic province. Whether itâ€™s the economy or the people you are talking about, things are always on the move. This applies to the built environment as well, as urban Gauteng could never be described as static. But some of the provinceâ€™s newest buildings show that modern can also be memorable. The Gauteng Institute for Architects (GIFA) gave awards in 2011 for three public buildings that superbly combined functionality with beautiful form: Soccer special feature City (Boogertman and Partners), Nike Football Training Centre (Design Scope and RUF project) and Circa Art Gallery (studioMAS). The six-storey office block in Sandton, 15 Alice Lane Towers, provides office space for one of South Africa’s biggest legal firms, Deneys Reitz Attorneys. The design also provided a canvas for the application of new glass technology that changes according to light and atmosphere fluctuations. The facade was constructed by Aveng Grinaker-LTA Facades. The Soweto Theatre won an award soon after its construction in 2012. The South African Property Owners’ Association (SAPOA) honoured the building with its social and environmental impact development prize. The theatre has a 420-seater main venue and two other venues that cater for 180 and 90 people respectively. ArcelorMittal Distribution Solutions South Africa provided the cladding that glows so splendidly along the side of the theatre. Structural engineers Themba Consulting Engineers and light frame supplier Clotan Steel also played important roles in the final realisation of the exciting design. The design of AFGRI’s new head offices in Centurion pays homage to Brazilian modernism, with two giant office pods floating above the ground connected by a glass-encased atrium. photos: (soweto theatre) Leon Krige, (AFGRI head office) andrew bell AFGRI head office (Centurion, Tshwane). Client and contractor: M&T contractors. Architect: Paragon. Soweto Theatre. Client: Johannesburg Property Company (JPC). Principal Contractor: JV Group Five/Inkanyeli. Architect: Afritects. 23 Gauteng companies 2013 PROFILE POPCRU Group of Companies Providing financial security and benefits for union members and their families. POPCRU Group of Companies (PGC) is a trusted, credible and diversified investment group that forms part of the investment wing of the Police and Prisons Civil Rights Union (POPCRU). It is uniquely established to generate and invest, through its operations, financial capital on behalf of the approximately 150 000 POPCRU memberships. The company’s business structure and operating principal is unique as it generate its own funding (without utilising union membership fees) and the business services extend beyond the POPCRU membership, thus, though PGC’s roots are within organised labour, its business operations and investment initiatives have no boundaries. The group has been operational since 1997 and has steadily established itself since, though a number of strategic acquisitions. Leadership PGC is led by group chief executive officer Zwi Mdletshe, who has guided the organisation to become one of the foremost investment companies within the union movement in South Africa today. Mdletshe accepted the challenge of amalgamating 19 investment portfolios of separate entities into the efficient, successful business PGC has become. The union owns the business through the PGC Trust, which distributes major parts of the profit through bursaries to children of deceased members and union members across the country. Vision and mission To be a leading investment group within organised labour in Africa by providing customised products to its markets and ensuring Gauteng companies 2013 24 PGC ensures that union members’ families are provided for in the event of death or disability. investment optimal returns to shareholders through growing and empowered people. The group aims to achieve a net asset value to R1 billion by 2015. Shareholding Eighty percent of PGC’s business is focused on the financial services industry, and this is the core of the business. The core business complement includes Workerslife, a company that PROFILE underwrites and administers all life assurance and short-term insurance business for the Group, and Lesaka, a company that is focused on product distribution as well as the administration for the Group Insurance business.â€¨20% of the groupâ€™s non-core business comprises: 100% ownership of Shishangeni Lodge, a private game lodge in the Kruger National Park; a 6.89 % stake in Protea Hospitality Holdings and a 100% stake in Riskcon Security Services. Group of companies Workerslife Workerslife is a wholly owned insurance underwriter and administration company under the PGC group. It is the flagship brand of the PGC Group and provides employers with innovative risk solutions to attract and retain staff. Workerslife comprises three subsidiaries: Workerslife Assurance Company, Workerslife Insurance Underwriters and Workerslife Medical Aid Administrators (currently not active). The company will gradually phase out Lesaka to ensure smooth transition and create a single brand identity to members. Lesaka serves its customers by distributing and administering competitive and affordable funeral and legal cover to their customers: POPCRU, the government and the private sector. Lesaka has an in-house call-centre focused on customer services and insurance claims, a client services department focused on walk-in clients, the recon department, which is responsible for processing one million local government deductions per month, as well as 400 private companies that they interface with. This is done through various deduction mechanisms including ACB and Nupay with a 97% success rate. Lesaka is the primary distributer of Workerslife products. Riskcon Riskcon is an independent South African security company that protects people and assets. Since 1998, it has designed, supplied and sustained specialised protection services to organisations in the private and public sectors. Its single purpose is to identify risk and prevent loss caused by threats or illicit actions aimed at undermining operations or endangering personnel. PCG is the majority shareholder. Workerslife undertakes to provide its clients with the maximum financial security in the event of a life-changing event. In order to achieve this, they always aim to provide simple and cost-effective risk solutions. They use only the best in-house, local and global expertise for actuarial risk and accounting and operaContact details tional requirements and, as a result, they have built a reputation as one of the leading insur- Key contact personnel: ance companies in South Africa. Zwi Mdletshe, Group CEO: POPCRU Group Tel: +27 12 305 7400 Shishangeni Lodge Email: email@example.com Situated on a 15 000-hectare private conces- Physical address: 273 Paul Kruger Street, sion of the world-renowned Kruger National Pretoria 0002 Park, this legendary wildlife reserve has the Website: www.popcrugroup.co.za deserved reputation for showcasing some of the finest game-viewing on the continent. Lesaka The registered financial services provider was established in 1993, and formerly known as the Ferreira Group. The group has proposed a name change for Lesaka, to Workerslife Direct. 25 Gauteng companies 2013 special feature Overview of the South African economy Key facts and figures on South Africa’s demographics, economy, trade and investment. South Africa fact file Capital: Pretoria Population: 50.59 million (July 2011 est – Census 2011 data due in September 2012) Area: 1 220 813km2 GDP: R2 964-billion (2011) GDP growth: 3.1% (2011) Income per capita: R58 549 (2011) CPI: 6.1% y/y (April 2012) PPI: 6.6% y/y (April 2012) Unemployment: 25.2% (Q1 2012) Gini Index: 57.8 (2009 UN Report) Gross domestic product South Africa’s real gross domestic product (GDP) growth slowed to a 2.7% increase on a quarteron-quarter seasonally adjusted annualised (q/q saa) basis – 2.1% year-on-year (y/y) in the first quarter of 2012 from 3.2% q/q saa (2.9% y/y) – in the fourth quarter of 2011 (Table 1). The largest industries, as measured by their nominal value added in the first quarter 2012, were finance, real estate and business services, making up 19.3% of the economy, and general government services making up 14.6%. The q/q saa changes in value added by the primary, secondary and tertiary sectors were -11.2%, 6.4%, and 3.0% respectively, during the first quarter of 2012. What is noteworthy, however, is that the mining sector – the number-one export industry in the country – declined by 16.8% q/q saa in the first quarter, due in part to a six-week illegal strike at Impala Platinum, the world’s secondlargest platinum miner. Year Q1 Q2 Q3 Q4 Annual 2004 6.2 5.7 6.7 4.3 4.6 2005 4.1 7.4 5.6 2.7 5.3 2006 6.2 6.7 4.8 6.4 5.6 2007 6.5 3.1 5.0 6.0 5.5 2008 2.9 4.5 1.8 -1.7 3.6 2009 -6.3 -2.8 1.8 3.5 -1.5 2010 4.0 2.8 3.1 4.5 2.9 2011 4.6 1.0 1.7 3.2 3.1 2012 2.7 Table 1: GDP growth per quarter, 2003–2012 Q1, constant prices, q/q seasonally adjusted annualised. Source: Statistics South Africa GDP (R-m) GDP per capita (R) 2001 1 020 007 22 899 2002 1 168 699 25 831 2003 1 260 693 27 631 2004 1 415 273 30 297 2005 1 571 082 33 176 Year 2006 1 767 422 36 844 2007 2 016 185 41 525 2008 2 262 502 46 072 2009 2 398 155 48 318 2010 2 661 434 53 088 2011 2 964 261 58 549 Table 2: GDP and GDP per capita at current prices. Sources: www.thedti.gov.za, www.reservebank.co.za, World Bank, Statistics SA Gauteng companies 2013 26 special feature Sector Agriculture, forestry and fishing Mining and quarrying Manufacturing Electricity and water Value in millions (R) % Real change from 2010 % of GDP 63 984 -.04 2.2 2 260 381 0.2 8.8 357 756 2.4 12.1 78 532 1.3 2.6 Construction (contractors) 120 420 0.8 4.1 Wholesale and retail trade, catering and accommodation 386 430 4.4 13.0 Transport, storage and communications 220 060 3.3 7.4 Finance and insurance, real estate and business services 565 224 3.5 19.1 Personal services 183 493 2.4 6.2 General government services Total value added at basic prices Taxes less subsidies on products GDP at market prices 434 224 3.9 14.6 2 670 504 3.0 90.1 293 757 4.4 9.9 2 964 261 3.1 100 Table 3: Breakdown of South Africa’s GDP at current prices, per sector, 2011. Source: Statistics South Africa April 2012, after a deficit of R5.5-billion in March, taking the cumulative trade deficit in April 2011 South Africa’s international trade has risen to R36.5-billion, compared with R7.5-billion in sharply over the last 10 years (Table 4). In the first four months of 2011. 2004, the value of imports rose above that of A record R17.4-billion deficit was set in January exports. Tables 5 and 6 show the largest import 2009, but as exports began to improve, so the and export sectors respectively, for April 2012. deficits narrowed in 2009 to become surpluses Important import sectors in April 2012 were in 2010. South Africa recorded its first annual machinery (R15.9-billion), mineral products – trade surplus in seven years in 2010 of R4.8chiefly crude oil (R13-billion), transport equip- billion, following a few stronger than expected ment (R10.9-billion) and chemicals (R5.4-billion). surpluses on the trade account during the year. On the export side, the most important sectors In 2012, however, the rise in the oil price in the were mineral products, chiefly coal and iron ore first few months, coupled with a sharp reduction (R14.8-billion), precious metals and diamonds in platinum exports, saw the non-SACU foreign (R10.2-billion), base metals (R7-billion) and trade balance firmly in the red. transport equipment (R4.6-billion). The old myth that a weaker rand leads to more Most of South Africa’s foreign trade takes place exports is once again disproved by the facts, as with Asia, the United States and Germany (Tables import growth was 23.5% in 2011, while export 7 and 8). In 2011, China, the United States and growth was 19.9% when the rand was weaker Japan were, in descending order, the country’s due to a R15-billion deficit. Prior to November top export markets, while top import-source 2011, when the rand had been stronger, export countries were China, Germany and the US. growth had exceeded import growth. In 2010, South Africa recorded a trade deficit of R9.9- when the rand was strong because export growth billion for its trade with non-Southern African of 14.9% exceeded import growth of 8.1%, there Customs Union (non-SACU) trading partners in was a R4.8-billion surplus, the first annual surplus Trade: imports and exports 27 Gauteng companies 2013 special feature Year Imports in R-m Exports in R-m 1999 147 356 165 555 2000 187 608 210 373 2001 216 033 251 330 2002 275 427 314 102 2003 258 839 275 581 2004 306 927 296 246 2005 351 665 331 405 2006 465 040 396 529 2007 561 194 491 253 2008 727 632 663 099 2009 541 173 513 864 2010 585 219 590 207 2011 722 637 707 511 Sector Value in R-m 1. Machinery, mechanical and electrical 15 903 2. Mineral products 12 991 3. Transport equipment 10 880 4. Chemical products 5 420 5. Base metals 3 190 6. Plastics, rubber 2 591 7. Textiles 1 726 8. Optical, medical, photographic 1 579 9. Foodstuffs, beverages 1 433 10. Vegetable products 1 045 Total 62 028 Table 5: South Africa’s top 10 import sectors, April 2012. Table 4: Annual value of South African non-SACU imports and exports, 1998–2011. Source: Source: www.sars.gov.za Source: www.sars.gov.za. since 2003. In the first four months of 2012, when the rand was substantially weaker than in the same period in 2011, exports only grew by 7.4% y/y, while imports surged by 20.6% y/y. In mid-2009, South Africa ranked 61 out of 121 countries, from 59th out of 118 in 2008 in the World Economic Forum’s Global Enabling Trade Report. But in 2010, it slipped to 72 out of 126 countries. It ranks above Zimbabwe , Ivory Coast , Kenya , Tanzania , Argentina  and India . Foreign direct investment and public investment South Africa’s privately held business (PHB) owners’ intentions to grow through acquisition seem to align with expectations of BRIC (Brazil, Russia, India and China) countries in the upcoming 12 months, according to Grant Thornton’s 2011 International Business Report (IBR) on M&A activity. SA was invited to join the BRIC grouping in 2011. South Africa also fared well in a number of other indices. It was ranked 45th out of 133 on the World Economic Forum’s Global Competitiveness Gauteng companies 2013 28 Sector Value in R-m 1. Mineral products 14 841 2. Precious metals and diamonds 10 239 3. Base metals 6 968 4. Transport equipment 4 613 5. Machinery, mechanical, electrical 4 460 6. Chemicals 3 350 7. Vegetable products 1 738 8. Foodstuffs, beverages 1 497 9. Plastics, rubber products 1 126 10. Pulp and paper 779 11. Animals, animal products 378 Total 52 154 Table 6: South Africa’s top export sectors, April 2012. Source: www.sars.gov.za …Continued on pg 30 FREE MEMBERSHIP OF FRONTIER MARKET NETWORK The Frontier Market Network is the largest online business community focused on investment and business generation in fast-growing markets. GET CONNECTED. JOIN TODAY. Membership is FREE and benefits include: • • access to a database of investment and business opportunities access to the latest market intelligence including market updates, country and regional profiles, news and analysis and research reports Register at www.frontiermarketnetwork.com to begin your membership • • connection to a network of over 120 000 people, companies and service providers operating in frontier markets access to a range of services required to complete transactions such as legal, research or due diligence services special feature Index for 2009/10, and improved to 54 out of 139 countries in 2010/11. It was 32nd out of 181 countries in the World Bank and International Finance Corporation’s Doing Business 2009 report, and 34 out of 183 in 2010. This study measures the time, cost and hassle for businesses to comply with legal and administrative requirements. South Africa was at number 35 in 2008. Public-sector infrastructure investment, the expansion of electricity generation and distribution capacity by electricity supplier Eskom, upgrades to ports and railways by state-owned enterprise Transnet, and major road-construction projects remain the major challenges for the economy, but government continues to invest strongly in all areas. The ratio of fixed capital investment to GDP rose consistently over the five years to the end of 2008, to reach 24.6%, just below the government’s target of 25%. A cut-back in both government and private-sector fixed investment saw the ratio drop to 18.9% in the fourth quarter of 2010, before starting a slow recovery. General government fixed investment had the first quarterly increase in the second quarter of 2011 after nine quarters of decline. Total fixed investment has now increased for eight consecutive quarters and should continue to support growth going forward. Consumer spending has been robust, even as households repaired their balance sheets. Country 1. China Value in R-m The last time household expenditure growth exceeded income growth on a q/q saa basis was back in the fourth quarter of 2007. The result of this, as well as a marked reduction in interest rates, was that the household debt to income ratio fell to 74.6% in the fourth quarter of 2011 from 75.6% in the third quarter of 2011 and a peak of 82.7% in the first quarter of 2008. The debt service ratio eased to 6.7% in the fourth quarter from 6.8% in the third quarter, and is now at levels last reached in 2005. Year Q1 Q2 Q3 Q4 2003 15.70 16.00 15.90 16.00 2004 16.00 16.20 16.20 16.20 2005 16.50 16.00 17.00 17.10 2006 17.70 18.60 18.90 19.70 2007 19.70 21.20 20.40 20.20 2008 21.05 22.44 24.02 24.64 2009 23.20 22.40 21.20 20.30 2010 20.30 19.88 19.40 18.90 2011 18.80 19.00 18.90 18.90 Table 9: Ratio of gross fixed-capital formation to GDP. Source: www.reservebank.co.za Country 103 174 1. China Value in R-m 90 210 2. Germany 77 396 2. United States 61 044 3. USA 56 944 3. Japan 55 635 4. Japan 34 377 4. Germany 42 684 5. Saudi Arabia 32 294 5. UK 29 001 6. India 29 220 6. India 22 224 7. UK 28 965 7. Switzerland 22 902 8. Iran 27 121 8. Netherlands 22 902 9. Nigeria 22 655 9. Zimbabwe 17 776 10. Italy 19 574 10. Mozambique 17 680 Table 7: South Africa’s top 10 import source countries in 2011. Table 8: South Africa’s top 10 export markets, in 2011. Source: www.sars.gov.za Source: www.sars.gov.za Gauteng companies 2013 30 A guide to Business and leisure travel services, conferencing and accommodation in gauteng leave booked for RTD :D special feature destination gauteng special feature How are hotels holding up? South Africa’s hotel sector is adopting new strategies in the post-recession environment. W ith occupancy rates approaching 60% during the 2010 Soccer World Cup, South Africa’s hoteliers found a temporary solution to the strains of the economic recession that started two years earlier. But with the global economy still constrained, and the number of hotel rooms having risen substantially to cater for the soccer tournament, South African hotels are having to adopt new strategies to survive – and grow. In the period leading up to the World Cup, the number of hotel rooms in Sandton increased by 40%, Cape Town by 21% and greater Durban by 53%. One immediate result of this was that the Grace Hotel, a famous landmark in Rosebank, changed hands. The 75-room hotel had been managed for property fund Hyprop by African Sun Hotels Group, which gave among its reasons for pulling out, the oversupply of rooms and the strength of the rand. Hyprop sold the property to Tsogo Sun for the bargain price of R85-million. That the hotel was snapped up by Tsogo Sun, one of South Africa’s biggest groups, is an destination gauteng 2013 32 indicator that the post-World Cup environment is one in which the big players are likely to grow at the expense of smaller operators. Protea Hotels has a R2-billion fund to buy distressed hotels. Protea Hospitality Group already has more hotel beds in South Africa than any other group, and spent R1.5-billion in 2011 on refurbishing 17 hotels and on acquiring eight new hotels. In 2012, Southern Sun relaunched itself as Tsogo Sun, the result of the merger with Gold Reef Resorts. Southern Sun remains as a brand for premier hotels in the group, which has a total of 95 hotels and 15 casinos across Africa, the Middle East and the Seychelles. Tsogo Sun will spend another R20-million on transforming the Grace Hotel into a boutique hotel called ‘54 on Bath’. The Beverly Hills in KwaZulu-Natal is the group’s other ultra-luxury hotel property. Other Tsogo Sun hotel brands include Sun Square, Garden Court and Stayeasy. Protea Hotels is the country’s other large group. There are 90 Protea properties across photo: njr za/Wikipedia The Michaelangelo Hotel on Nelson Mandela Square in Sandton. special feature photo: ROADRUNNER48/PANORAMIO Emperors Palace Hotel Casino Convention Resort in Kempton Park. three brands in South Africa: Fire and Ice, Protea Hotels and African Pride Hotels, the premier brand. Citing the ‘saturated hotel industry’, the Don Group decided, in 2011, to get out of the hotel industry altogether. Having previously run nine all-suite hotels in Johannesburg, Pretoria and Cape Town, the Don will either sell these properties or convert them into apartments. The group also disposed of its share in iKapa Tours & Travel. One of the ways in which hotel groups are countering the trend of declining occupancy rates is by selling some of their hotel rooms. Signature Life Hotels started a programme in eight of its 35 South African hotels, with buyers gaining access to the room for 30 days of the year and earning income for the rest of the year. A third strategy adopted by South African hotel groups is expansion into Africa. Protea has a presence in eight African countries and Southern Sun is well established in Kenya, Mozambique, Nigeria, Tanzania and Zambia. West Africa and East Africa represent lucrative prospective markets for growth. Another plan that South African hotels are hoping will pay off is the effort by South African Tourism to increase the number of visitors to South Africa. South Africa attracted 8.3 million tourists in 2011. This was an improvement over the figures for 2010, even though that was the year of the World Cup. In pre-recession 2008, a total of 9.6 million tourists visited South Africa. The National Department of Tourism wants the tourism sector’s contribution to GDP to rise to R338-billion by 2015. It was R174-billion in 2009. Although visitor numbers from Europe are slightly down (3.5% in 2011 compared to the previous year), that region still represents a big and important market for South Africa. It is the significant growth in tourists from Africa, China and India, however, that illuminates the way forward. Tourist arrivals from African countries started rising in the year of the Soccer World Cup, and the trend has continued. Nigeria and Tanzania were the biggest growth markets in 2011, rising by 38% and 46% respectively. The National Department of Tourism will spend R218-millon on setting up five new offices around Africa to join the country office that exists in Angola. The second office is due to open in Nigeria in the course of 2012. Brazil is the other country that will receive a country office, and the department has set goals for attracting new tourists from South Africa’s new partners in the multi-national BRICS grouping: 100 000 Indian tourists and 100 000 Chinese tourists by the end of 2013. In the year to December 2011, Asian tourist arrivals in South Africa increased by 15%. 33 destination Gauteng 2013 destination overview Tourism Gauteng’s revenue from tourism is approaching R30-billion. Sector Highlights The Big Five can be seen at the province’s newest game reserve. • Open-top bus tours are coming to Gauteng. • AmaGeePee cards are persuading locals to be tourists. • SAB World of Beer has won a top tourist award. major companies Sandton Square in Johannesburg. G auteng has a new game reserve. The launch in 2011 of the Dinokeng Game Reserve adds considerably to the number of prime natural assets in the province’s tourism register. Gauteng is visited by more than half of the visitors to South Africa, and is primarily known for business or retail tourism. The conference and exhibition sector is dealt with in a separate section of this publication. In 2011, Gauteng’s tourism revenue increased to R27.5-billion from the previous year’s income of R26.9-billion. The province’s natural beauty is less well-known, but there are many attractive options for open-air tourism. destination gauteng 2013 34 The Dinokeng Game Reserve (DGR) is north-east of Johannesburg and Tshwane, and hosts the Big Five on 18 500 hectares of bushveld. The reserve is a part of a larger Dinokeng Project to uplift local communities. It is spearheaded by the Gauteng Department of Economic Development (DED) and includes input from the DGR Management Association (DGRMA) and private landowners. Blesbokspruit, near Springs, is another example of a fine outdoor destination. It is a photo: johannesburg department of tourism • Tsogo Sun • Protea Hotels • Sun International • Imperial Holdings • Bidvest • Cullinan Holdings • The Legacy Group • Tourvest photo: ela/flickr destination overview Ramsar wetland and an important refuge for a vast variety of waterbirds, ranging from the Spur-winged goose to the Goliath heron. The Magaliesberg mountain range is within easy driving distance of all the urban areas. The Sterkfontein and Wonder Caves are near the Cradle of Humankind site on the West Rand, where the Krugersdorp Game Reserve and Rhino and Lion Nature Reserve are also located. Johannesburg itself has many green lungs, including the Johannesburg Zoo and Emmarentia Dam. To the south of the province, Sedibeng District boasts the Suikerbosrand Nature Reserve, which has excellent facilities for multi-day hikes. The Pretoria Zoo is rightly renowned and is the biggest in the country. In the Wonderboom Nature Reserve, a 1 000-year-old fig tree reminds visitors of an earlier time, and Pretoria’s 76-hectare botanical gardens help to make the city a pleasant place to be. Ekurhuleni has several lakes and bird sanctuaries, such as the Korsman and Rondebult, together with the Rietvlei Zoo and Nature Reserve. A tourism niche that has much potential to grow is water sports. The provincial government is developing a Water Sport Strategy to guide policy. The Vaal River is one of many large and safe water bodies in the province. Another strategy being employed is ‘Stay Another Day’, a plan to persuade business people to prolong their A wealth of archaeological finds are displayed at the Cradle of Humankind. stays in the province beyond the last day of a conference or the day of a meeting. Attempts to grow the domestic market are packaged as ‘AmaGeePee’. Loyalty cards have been distributed to 15 000 clients, with free and discounted tickets at the centre of the campaign. Open-top bus tours will become part of the Johannesburg scene in 2013, with the arrival of the franchised South African City Sightseeing operation. MEC for Economic Development Qedani Mahlangu has praised entrepreneur Claus Tworeck for investing R20-million in the project, which will be extended to Pretoria in due course. The busses will stop at Gautrain stops to allow visitors to move easily between the two cities – and experience both guided tours in a day. Culture and heritage are strong sectors that are being promoted by the local tourism authorities, with many fine museums, such as the Apartheid Museum, which tells the story of South Africa’s struggle for freedom from apartheid. Kliptown in Soweto is the site of the signing of the Freedom Charter. An urban regeneration project has seen the development of the Walter Sisulu Square of Dedication. Constitution Hill is an old prison converted to house the country’s most important court, and several significant old buildings have been restored around it. The impressive visitors’ centre at Maropeng is a highlight for many visitors to one of Gauteng’s most popular tourist sites, the Cradle of Humankind. This offers a glimpse of ancient man in 2 500 square metres of exhibition space served by modern interactive exhibits. The nearby Sterkfontein caves, owned the University of the Witwatersrand, have long been a source of great archaeological finds. 35 destination Gauteng 2013 destination overview The university’s own Origins Centre in Johannesburg is well equipped, and provides more fascinating insights into the origins of mankind through art and science. The centre hosts superb representations of Khoi and San rock art. Another site where South Africa’s history is on display is at Freedom Park, a sprawling complex of museums, open spaces and memorials on a hillside overlooking Pretoria. Gauteng is the home of the tourist attraction that won a major award in 2011. The South African Breweries (SAB) World of Beer in downtown Johannesburg won the national Welcome Award for the country’s overall top tourist attraction. The Welcome Awards is the competition organised by South African Tourism and sponsored by First National Bank. The Sandton Sun won the Online Award. South Africa’s biggest hotel groups are well represented in Gauteng. Tsogo Sun has 26 hotels across three brands in the province. All three are represented by one hotel each at OR Tambo International Airport. Protea Hotels has eight hotels in Johannesburg. Two international hotel groups are thinking about enlarging their South African footprint. Marriott International is looking at a Johannesburg site, and is thinking about introducing its three-star brand across the country. Hilton Worldwide is focused on Cape Town and Johannesburg, and may also introduce its brands that operate below five-star level: Doubletree and Garden Inn. The Hilton Sandton is close to the Sandton Convention Centre. The Grace has changed hands (see separate article) and the Lonrho Group has signalled the start of an aggressive campaign to open hotels across Africa, with the launch of an easyHotel in the old Stuttafords building on the corner of Rissik and Pritchard streets. The budget brand will open 50 properties in Africa by 2016. At the other end of the scale in terms of design is the 12 Decades Hotel in the Mabobeng Precinct, a trendy new development in eastern Johannesburg. Each of the rooms has been individually designed by an artist to depict a decade in the city’s history. Online resources City of Tshwane Metropolitan Municipality: www.tshwane.gov.za/tourism Cradle of Humankind: www.maropeng.co.za Ekurhuleni: www.ekurhuleni.com Dinokeng: www.dinokeng.co.za Gauteng Tourism Authority: www.gauteng.net Johannesburg: www.joburgtourism.com South African Tourism: www.southafrica.net South African Tourism Services: www.satsa.com destination gauteng 2013 36 The Legacy Group, which already has the Lost City, the Sun City Resort, Nelson Mandela Square, the Michelangelo and Michelangelo Towers in its portfolio, added the DaVinci Hotel on Nelson Mandela Square in time for the Soccer World Cup in 2010. What makes the development somewhat unusual is the accommodation mix, with 166 hotel rooms anchoring 54 apartments in the upper reaches, with a further four luxurious penthouses above that. The tourism distribution channel is dominated by four major groups in South Africa, each of which runs several companies in different parts of the value chain, and all of which are active in Gauteng. The biggest groups are: • Imperial Holdings: companies include Europcar and Tempest Car Hire, Springbok Atlas and Grosvenor Tours • Bidvest Travel and Aviation: Rennies Foreign Exchange, BidTravel, Harvey World Travel, Budget Car Rental, HRG Rennies Travel and BidAir Services • Cullinan Holdings: Thompsons, Hylton Ross Tours, and Pentravel • Tourvest: The group has companies dealing with every aspect of the tourist experience: tour operators and conference organisers (Seekers Travel), foreign exchange (American Express Travel Services), retail (gift shops and duty free shops), and hotels (African Hotels and Adventures) h accommodation & conference venue Indaba Hotel The Indaba Hotel in Sandton offers a truly African experience. The hotel is an ideal conference venue. Chief’s Boma Restaurant. The Indaba Hotel’s country style and treelined lanes welcome all guests to a secure and tranquil environment. The hotel has 260 en-suite bedrooms, each with its own teaand coffee-making facilities, limited DStv channels, safe, dial-up Internet connectivity, and 24 conference venues. Hot-spots can also be found in areas around the property. Chief’s Boma Restaurant is situated at the Indaba Hotel and offers a scrumptious African feast, including traditional cuisine and a variety of game meats. Sitting at your table, you are surrounded by the sounds of Marimba, while overlooking the hotel’s very own watering hole. Over 130 species of birds have been spotted on the hotel premises. cuisine, two swimming pools, outdoor chess and bird watching. This jewel is only approximately 40km from OR Tambo International Airport and 15km from the centre of Sandton. Once inside the hotel’s walls, guests feel like they could be anywhere in Africa, and it is the perfect place to strategise with colleagues, relax with friends and family, or have a romantic weekend away with a loved one without being too far from home. With 60 years of tried and tested excellence, come enjoy the Indaba Hotel – always ready to welcome you! Contact details Guests can relax in the comfort of the Day Spa, which is a truly indulgent experience, Key contact person with traditional massage using techniques Sharon Hunink, Sales Manager such as hot stones and rungu sticks. Combine business and pleasure with the unique con- Tel: +27 11 840 6600/6770 ference and spa packages, or treat loved ones Fax: +27 11 840 6610 to an evening of luxurious pampering. Email: firstname.lastname@example.org Address: William Nicol Drive, Fourways, Other facilities include Epsom Terrace Johannesburg Restaurant, which offers cosmopolitan-type destination gauteng 2013 38 17 hectares of property – plenty of open space 24 multi purpose conference / banquet venues 260 en-suite bedrooms queen deluxe rooms All venues have natural light Chief’s Boma – African Dining Experience Restaurant Beauty and Relaxation Beauty Salon Pampering Day Spa Tel: +27(0)11 840 6600 Web: www.indabahotel.co.za Indaba Hotel and Conference Centre Email: email@example.com @IndabaHotel destination overview Events and conference facilities Gauteng is strengthening its position as a continental leader in conferences and exhibitions. W hen the Exhibition Association of South Africa held its Sector Highlights 2011 awards, Gauteng proved once again that it has The Johannesburg Internathe spaces and skills to maintain its leading position tional Motor Show won ‘Exhiin the meetings, incentives, conferences and exhibitions (MICE) bition of the Year’ in 2011. sector. The CSIR International Convention Centre in Pretoria • Johannesburg is set to was the winner in the exhibition and special event venues bid for the 2014 Sport catagory of the 2011 Welcome Awards, which are arranged by Accord. SA Tourism. • One Young World 2013 In the national context, both Durban and Cape Town offer will be held in Gauteng. stiff competition, but the three cities are coordinating their efforts through the newly formed National Conference Board (NCB). The NCB is an initiative of SA Tourism and aims to major companies increase the number of exhibitions to 100 by 2015, and add • Johannesburg 50 new events to the national calendar by 2015. Convention Bureau South Africa already has more than 200 meetings and con• Johannesburg Expo ferences confirmed up to 2017, with about 300 000 delegates Centre expected to attend. • Coca-Cola Dome The Johannesburg Tourism Company has a dedicated unit, • Sandton Convention the Johannesburg Convention Bureau (JCB), which works to Centre attract new business to the city. The JCB assists companies in • Gallagher Convention preparing bid documents, and is on hand to assist in supplying Centre relevant information in key areas such as telecommunications • Kyalami Events and and IT services, and the securing of visas for delegates. Exhibition Venue The continental tourism expo, Meetings Africa, is held in • Dogan Trading Johannesburg, helping to cement the city’s position in the • Montgomery Africa business tourism market. In 2011, the JCB announced that it had secured conferences central part of the province’s and exhibitions that would inject an estimated R200-million MICE strategy. into the city’s economy. These include: This is another area where • International Small Business Congress, 2012 a new level of national coor• International Council of Game and Wildlife Conservation dination is taking place. The General Assembly, 2012 first Sports and Events Tourism • World Anti-Doping Congress, 2013 Exchange was held in 2012 • One Young World, 2013 (in Durban) and served to • International Mineralogical Association, 2014 showcase, to 191 delegates It is likely that Gauteng will bid for the 2014 Sport Accord, an from 25 countries, what South international conference that brings together all of the world’s Africa has to offer. A steering major sports federations. Gauteng brands itself as the ‘Home committee representing the of Champions’, hence sports events and conferences are a likes of the national Olympic destination gauteng 2013 40 destination overview Category Exhibition Company Best small consumer exhibition SABC Education Baba Indaba Three City Events Best medium-sized consumer exhibition The Baby Expo MamaMagic Exposure Marketing Best large consumer exhibition Homemakers Expo Homemakers Best small trade exhibition Meetings Africa Scan on Show Best medium-sized trade exhibition Automechanika Dogan Trading Best small trade and consumer exhibition Hobby X Johannesburg Expo Trends Best medium-sized trade and consumer exhibition Grand Designs Live Montgomery Africa Best large trade and consumer exhibition Decorex SA, Johannesburg Thebe Exhibitions and Projects Group Exhibition of the year, 2011 The Johannesburg International Motor Show Dogan Trading Gauteng winners, 2011 Exsa Awards. SOURCE: Exhibition Association of South Africa Committee, South African Tourism and the South African Sports Confederation is tasked with taking the concept further. The city of Ekurhuleni will host Airport Cities: World Conference and Exhibition in 2013. This is part of the city’s plan to establish an aerotropolis around OR Tambo International Airport. There are a number of venues that can be used for big exhibitions, concerts or conferences: • Johannesburg Expo Centre, Nasrec. Capacity: 15 000 • Coca-Cola Dome, Randburg. Capacity: 14 000 • Gallagher Convention Centre, Midrand. Capacity: 12 000 • Standard Bank Arena, New Doornfontein. Capacity: 6 300 Eskom’s Megawatt Park Conference Centre and the Absa Convention Centre in Tshwane are some of the larger venues outside Johannesburg. Pretoria’s Muckleneuk Ridge Conference Centre (University of Pretoria) and OR Tambo Building (National Department of International Relations and Cooperation) offer large venues. In the Ekurhuleni metropole, the Airport Grand Hotel and Conference Centre is particularly well situated in relation to the main airport.The revamped Turbine Hall of the city’s old power station, run by The Forum, is ideal for smaller conferences, parties, weddings and as a fashion show venue. The vast spaces and 1920s industrial architecture combine to make this a popular inner-city venue. Two of the region’s biggest venues are in the centrally located town of Midrand: Gallagher Estate and Kyalami Events and Exhibition Venue are both popular venues. Online resources Exhibition Association of South Africa: www.exsa.co.za Gallagher Convention Centre: www.gallagher.co.za Johannesburg Convention Bureau: www.joburgtourism.co.za Johannesburg Expo Centre: www.expocentre.co.za SA conference directory: www.saconference.co.za Sandton Convention Centre: www.saconvention.co.za Southern African Association for the Conference Industry: www.saaci.co.za 41 destination Gauteng 2013 interview Network supports deal flow Frontier Market Intelligence Ltd, a UK-registered company, recently acquired leading publishing company Global Africa Network, and has launched a ground-breaking online business network specifically for ‘frontier’ markets. FMI’s co-founder and CEO Chris Pilling gives South African Business an insight into the company and the product. Chris Pilling Chris Pilling is a media and technology entrepreneur who has been the founder and CEO of a number of successful businesses. His particular focus has been on the development of online business-to-business information services and the formation of online business communities. In 1997, he founded a company in the UK called Complinet, an online intelligence provider for financial services regulatory professionals. When the business was sold to Thomson Reuters in May 2010, the company was generating revenues of £25-million and employed 230 staff in five offices around the world. GAUTENG COMPANIES 2013 What is the Frontier Market Network? The Frontier Market Network, www.frontiermarketnetwork.com, is the largest premium online business network for fast-growing ‘frontier’ markets. This network or community comprises companies, government organisations and individuals involved in doing business, investing, promoting or supporting deal transactions in rapidly developing economies. The network is a source of highly valuable business information, which allows members to substantially increase business leads and business transactions in the markets in which they operate. The network has been built using next-generation web technology that focuses on the importance of the business relationships between the members. Rather than connecting people and businesses because of who they know, the Frontier network will allow connections based on the business deals they wish to complete. It is this focus on the deal-making and transaction process that sets Frontier apart from more traditional networking platforms. What services and benefits does the Frontier Network offers its members? Essentially we are offering our members business leads and deal flow. Whether you are a government department tasked with investment promotion, a private equity company seeking new investments or a solar-panel manufacturer looking for new distribution agreements, ultimately the ambition of each of these organisations is to do more transactions. Once firms are members of the network they are able to: • Network with other people, companies and organisations • Promote investment opportunities and attract investors • Promote business opportunities and establish new business relationships • Profile their companies and executives • Promote products and services 42 interview • Access business intelligence on companies, specific projects at the specific time they countries and regions to assist in making require a service. investment and business decisions • Receive email alerts about business oppor- Could you give some background to your tunities that match their sectors and regions company? The Frontier Market Network is a product of interest of Frontier Market Intelligence Ltd (FMI) a Could you give us more of an idea of the types UK company that has offices in Cape Town, of members on your network? London, Nairobi, Abuja and Johannesburg. The following types of organisations form part FMI is the parent company of Cape Townof the target market: based Global Africa Network (Pty) Ltd, the • Businesses, business owners and market-leading business-to-business publisher that already owns and produces a range of entrepreneurs • Private equity and venture capital companies premium print business annuals (such as South • Government bodies and agencies – in par- African Business), in addition to the groundbreaking digital products TradeInvest SA ticular, investment promotion agencies • Professional services companies such as law (www.tradeinvestsa.co.za) and TradeInvest Africa firms, accountants, tax consultants, regula- (www.tradeinvestafrica.com). The TradeInvest tory firms, etc products are being merged with the Frontier • Specialists and environmental consultants network to create the biggest premium business • Banks, trade finance and corporate finance network for ‘frontier’ markets. firms • Development finance and aid organisations Why have you chosen a platform for ‘frontier’ markets in particular? • Research and due diligence companies We believe that the rapidly developing econoIs there a membership fee? mies in regions such as sub-Saharan Africa will Not for standard membership. You simply reg- soon be at the heart of the global economy. In ister online at which time you will be asked creating the Frontier Market Network, we aim to about your business and your specific areas provide a platform for those that are shaping of interest so we can appropriately profile you and growing these economies. Many international companies are keen to and make sure you only receive information and opportunities that are relevant to you. At initiate business and investment conversations any stage you can adjust this profile to extend with companies in countries such as South Africa, or reduce the range of information that you but struggle because they don’t have access to local business networks that allow them to effecwish to receive. There is a cost should you wish to become tively research and then complete deals. In the a premium member. Premium members enjoy same way, there are many excellent local coma wide range of additional benefits, including panies that are seeking international partners or the capacity to associate their company with investors but don’t have access to the international business networks. Not only does Frontier specific opportunities on our platform. For example, if you are an environmental- provide a solution for these stakeholders, but research company based in Durban and a pre- critically, we can then engage the relevant ‘dealmium member of the network, we will ensure support suppliers’ such as lawyers, research that your company is presented to other mem- consultants, accountants, etc that can actually bers of the network who may be negotiating tie transactions together. Traditional social netdeals that require an environmental study works link people; however, our platform creates before completion. In summary, we associate linked clusters of businesses and people based companies with potential customers around upon specific business opportunities. 43 GAUTENG COMPANIES 2013 46 51 58 60 62 81 109 key sectors Overview of the main economic sectors of Gauteng Province Tourism���������������������������������������������������������������������������� 34 Agriculture���������������������������������������������������������������������� 46 Events and conferences������������������������������������������ 40 Mining������������������������������������������������������������������������������� 51 Manufacturing�������������������������������������������������������������� 58 Automotive�������������������������������������������������������������������� 60 Food and beverages������������������������������������������������� 62 Engineering������������������������������������������������������������������� 64 Transport������������������������������������������������������������������������� 73 Infrastructure���������������������������������������������������������������� 80 Construction and property������������������������������������ 81 Water�������������������������������������������������������������������������������� 88 Energy���������������������������������������������������������������������������� 100 Media����������������������������������������������������������������������������� 106 Advertising������������������������������������������������������������������ 108 Film��������������������������������������������������������������������������������� 109 Information and communications technology����������������������������� 110 Banking and financial services������������������������� 114 Development finance and SMME support�������������������������������������������������� 122 Call centres and business process outsourcing����������������������������������������������� 132 Education and training����������������������������������������� 133 Business organisations����������������������������������������� 144 South African National Government�������������������������������������������� 146 Gauteng Provincial Government��������������������� 156 Gauteng Local Government������������������������������� 166 Gauteng companies 2013 OVERVIEW Agriculture Poultry farming is one of Gauteng’s biggest subsectors. Gauteng companies 2013 46 Sector Highlights Food security is a provincial government priority. • Walmart’s investment in South Africa could create opportunities for emerging farmers. • Crocodiles are farmed outside Pretoria. major companies • Afgri • Astral Foods • Rainbow • Daybreak Farms • Kanhym Agrimills • Karan Beef photo: Hadleygrass is asparagus/flickr A s the most populous region of South Africa, Gauteng Province consumes huge quantities of food. South Africans eat more chicken than any other meat. An article in the Mail & Guardian (13 July 2012) put the average consumption of chickens by South Africans at more than two per month. This equates to more than a billion a year. Poultry farm and production facilities abound in Gauteng. Astral Foods, Rainbow and Daybreak Farms are among the biggest companies in the province. This sector is dealt with in detail in the overview of the food and beverage sector. Gauteng’s agricultural sector is largely concentrated on producing vegetables for the huge cities that dominate the region. There is commercial farming in the southern sector of the province (part of South Africa’s maize triangle) and the farming of cotton, groundnuts and sorghum is undertaken in areas near Bronkhorstspruit (east) and Heidelberg (in the south). Heidelberg is also home to Africa’s largest feedlot for cattle: Karan Beef’s facility can accommodate 120 000 cattle. The feedmill processes 1 400 tons per day, and the associated abattoir photo: New Brunswick Tourism/flickr OVERVIEW in Balfour in neighbouring Mpumalanga sometimes deals with 1 800 head of cattle per day. The 2 330-hectare Karan estate also includes a game farm and an eco-development. Other products that are produced in large volumes in the province are fruit, dairy products and eggs. Western Gauteng has large-scale commercial farming in maize, grain, sunflower seeds and beef cattle, but relatively little agriprocessing is done in this part of the province. South Africa’s biggest agricultural company is Afgri, which had revenue in 2011 of R7.3-billion. The group has recently been through a restructuring, which aligned all of the business units with the grain supply chain. Most of these units have also been moved to corporate headquarters in Centurion, Tshwane. The Kanhym Agrimill in Vereeniging is one of three in the company’s portfolio, which collectively processes 250 000 tons of animal feed annually. Kanhym Estates is the largest producer of pigs in the country, and the company’s Middelburg farm in Mpumalanga is geared to supply the Gauteng market. A somewhat more exotic product is provided by Izintaba farm outside Pretoria – crocodiles. The country has three tanneries and produces about 55 000 crocodile skins every year. Food security The planting of fruit-bearing trees and food gardens forms Roof gardens are a novel way to utilise space for agriculture. a part of the rural development brief of the Gauteng Provincial Department of Health and Social Development (DHSD). Food packs are distributed to poor children and five food banks run by the DHSD in each of the province’s regions ensure that the neediest citizens have food. The budget allocation for Agriculture and Rural Development in 2012/13 is R71-million; this will rise to R85-million in 2014/15. The biggest slice of funding is given over to the Comprehensive Agricultural Support Programme Grant (CASP) to support newly established and emerging farmers. In supporting emerging farmers, government intends to promote food security. In 2012, the Provincial Department of Agriculture and Rural Development (DARD) initiated the Moringa Oliveira Project in the Moloto district in Tshwane. Crop production and pharmaceuticals are being targeted as products, with the potential for biodiesel manufacturing at a later stage. The DARD is putting R6-million into the 25-hectare project in 2012/13. The first phase entailed the planting of 51 000 Moringa trees, and expansion to 60 hectares is planned. A form of soy protein is being promoted as a way of providing important nutrients to people who may not be able to afford meat. Private company Prosoy is considering building an extraction facility in the province, using local beans as its feedstock. In July 2011, the University of Johannesburg School of Tourism and Hospitality showed off a functional soy protein, which may have considerable implications for food security. Massmart, the retail group that has been bought by US giant Walmart, will invest R15-million in the four years to 2017 to 47 Gauteng companies 2013 OVERVIEW create opportunities in its food chain for emerging farmers. Techno-Serve, a non-governmental organisation, will oversee the programme. The National Department of Agriculture, Forestry and Fisheries (DAFF) has budgeted R4-billion for the task of getting emerging farmers into the mainstream economy. Agri-processing is an excellent means to create employment and promote entrepreneurship. The National Department of Trade and Industry puts the figure of employees in the sector at 177 000, one of the highest in the manufacturing sector. In 2011/12, the DARD erected 21 boreholes, 12 layer structures, 16 broiler structures, 11 piggery structures, 15 fences and 45 hydroponic structures, and intends putting up hatcheries, storage facilities and a citrus pack house in 2012/13. Vegetable agri-parks are also planned for Tarlton and Wadeville. Six major agri-processing projects are in the pipeline, including milking parlours at Devon and Elandsfontein, a feed-milling plant in Tarlton and storage packing sheds in Heidelberg, Cullinan and Vaal. The development of small-scale farming and co-operatives is also being promoted at the level of provincial government and district municipality. Even über-urban Johannesburg is getting in on the drive to provide food security. Since 2011, the Johannesburg Development Agency (JDA) has promoted three roof-top garden initiatives in downtown Johannesburg: in the CBD, in Troyeville and in Hillbrow. Research Agricultural research is undertaken at a number of institutions throughout Gauteng, and the province’s universities provide many opportunities for study in the field. The African Centre for Online resources Agricultural Economics Association of South Africa: www.aeasa.org.za Agricultural Research Council: www.arc.agric.za AgriSA: www.agriinfo.co.za Gauteng Department of Agriculture and Rural Development: www.gdard.gpg.gov.za Gauteng Department of Health and Social Development: www.healthandsocdev.gpg.gov.za Johannesburg Development Agency: www.jda.org.za National Department of Agriculture, Forestry and Fisheries: www.nda.agric.za South African Crocodile Farming Association: www.sacfa.co.za South African Poultry Association: www.sapoultry.co.za Gauteng companies 2013 48 Gene Technologies (ACGT) is a collaborative effort between the Council for Scientific and Industrial Research (CSIR), Wits University and the University of Pretoria, on whose experimental farm ACGT is based. ACGT’s partnerships include the University of Johannesburg and the Agricultural Research Council (ARC). A number of the ARC’s national research facilities are in Gauteng: • Roodeplaat Vegetable and Ornamental Plant Institute, Pretoria • Onderstepoort Veterinary Institute, north of Pretoria • Animal Production, Irene, south of Pretoria The ARC’s Natural Resources and Engineering Division has several business units, all of which are based in Pretoria: • Soil, Climate and Water • Agricultural Engineering • Plant Protection Research Institute The Forestry and Agricultural Biotechnology Institute (FABI) is located at the University of Pretoria, which is also linked to the Onderstepoort Veterinary Institute through its Veterinary Sciences degree programme. The university’s faculty of Natural and Agricultural Sciences offers a range of degrees, while Animal Production and Equine Science are presented at the Tshwane University of Technology. message Improving food security is a priority Minister for Agriculture, Forestry and Fisheries Tina Joemat-Pettersson highlights the priorities of the department in improving the lives of ordinary South Africans. The ‘right to food’ as enshrined in our Constitution and the Freedom Charter, demands a rethinking of our past approaches to food security. We can produce enough food, but whether the poor can afford the food on the shelves largely determines South Africa’s food-security status as a country. High food prices and food-price volatility will be one of the greatest challenges to our nation over the next few years. This will further be exacerbated by high fuel and high energy prices. To curb these challenges, smallholder farmers will be assisted with the provision of livestock, tractors, implements, seeds and fertilisers. ‘One family, one vegetable garden’ should be the mantra of each and every family in South Africa. Agro-processing Tina Joemat-Pettersson A s the Department of Agriculture, Forestry and Fisheries (DAFF), we believe that the goal of a developmental state can only be reached when our people gain access to food within an economy that promotes sustainable livelihoods. For this reason, our draft food security policy and zero hunger strategy promotes equity and prioritises the eradication of poverty and reduction of inequality among our people. We will increase agro-processing investments as a means of reinvigorating specific strategic value chains such as soya beans, rooibos, beverages, fruit and vegetables, and forestry. R50-million will be allocated for the promotion of local agroprocessing businesses. An equitable-food-security economy will improve access to markets for especially smallholder farmers. It is important that we seek to increase the extent to which we export processed rather than unprocessed agricultural products. The entire value chain of biofuels will also be a priority. Employment Food processing and agro-industries have provided jobs, demonstrating growth of over 25 000 agricultural jobs in the sector for the third quarter of 2011. A further 6 000 agriculture-related jobs were created in the fourth quarter of 2011, which is a yearon-year growth of 3%. This has brought the total employment in the sector to 630 000. International trade South Africa’s trade of both primary and processed agricultural products has grown from R10-billion worth of exports in 1996, 49 Gauteng companies 2013 message to about R48-billion in 2011. Our wine exports are soaring, notwithstanding the recent global economic slowdown. We are now exporting three times more wine than we did a decade ago. Exports of fish and fish products have rapidly expanded in China and Cameroon. Timber and forestry products are gaining ground in China and Indonesia. We are exporting more and more maize to Zimbabwe. Despite our success story as a country that is a net exporter of food, international trade has yet to include more black farmers in the equation. As a department we are committed to changing this. Our department is positioning itself to participate in a meaningful way in BRICS. The department will open offices in Russia, India and Brazil, in addition to the one which is already operating in China. • The refurbishment and upgrading of agricultural colleges • Various projects such as grain storage facilities and rehabilitated irrigation schemes in the former homelands, fencing including border fences and animal quarantine facilities at our borders To support these initiatives the Comprehensive Agricultural Support Programme (CASP) is allocated R1.5-billion, of which Funding allocation over R52.5-million will be The department is the custodian of South Africa’s forest used for infrastructure at the resources, which cover over 40 million hectares of the coun- agricultural colleges, R322try’s land surface area. The forest sector employs about 201 025 million for the extension workers and provides approximately 77 000 direct jobs and recovery plan, R762-million 30 000 indirect jobs. The Forestry and Natural Resources for infrastructure (mostly onManagement branch will get R1.2-billion during this financial farm), and R398-million for year to manage our forests and natural resources. flood-damaged infrastructure Our country has been plagued by natural disasters and animal in disaster areas. diseases. Between December 2010 and January 2011, we had In addition, the Land Care devastating floods in a number of provinces. We have begun allocation for the coming year the process of implementing the Flood Assistance Scheme, with is R115-million, while the Ilima/ its emphasis on infrastructure repairs. An amount of more than Letsema programme gets a R990-million has been made available through the MTEF period total of R415-million. until 2014/15 as part of the scheme. I appeal to all members of Animal disease outbreaks have presented serious challenges the department and readers of to our industry. Our department will have to improve on its this publication to look deep capacity to deal with such disasters, as they impact adversely into your work and your hearts and ask what more you can do on the rural economy. R954-million is allocated for plant and animal production, to contribute to making South including inspection and laboratory services, and R935-million Africa a better country. Together, for agricultural research, which represents a substantial increase we can work towards food over the previous year’s allocation. Furthermore, R868-million is security for all. allocated to food security initiatives and R349-million for extension support services, including new-farmer development support. Our ‘Strategic Integrated Project 11’ on agro-logistics and rural infrastructure (part of the integrated infrastructure plan approved by the Cabinet and the Presidential Infrastructure Coordinating Commission) includes plans for the following: • Fresh-produce marketing depots for smallholder farmers • Production infrastructure for crops and animals • The revitalisation of various irrigation schemes, including the Vaalharts-Taung irrigation scheme Gauteng companies 2013 50 OVERVIEW Mining Gauteng is at the centre of mining research. Sector Highlights Scientists have made a breakthrough in the commercial use of gold. • Joy Global Africa is a new entity that manufactures mining equipment and provides services to the industry. • Mining accounts for 31% of Gauteng’s export earnings. • 33 000 Harmony employees are becoming shareholders. major companies The Gold Fields South Deep mine on the West Rand. photo: Gold fields S ix percent of Gauteng’s income and 31% of the province’s export earnings come from the mining sector. Gold is the mineral that first brought the Witwatersrand, the rocky ridge on which Johannesburg was built, to the attention of the world. Although there are still important gold mines in the province, the country now only has 10% of the world’s gold reserves. Good gold prices during the time of economic uncertainty in the world have helped gold producers. A massive gold reef stretching over 400km across Gauteng and the northern Free State was the reason for South Africa’s pre-eminence in global gold production for so many years. South African general mining production volumes increased in the year to January 2011 after four years of decline. This was largely based on increased demand for iron ore from India and China, and iron ore is not part of Gauteng’s mineral complement. Gold production volumes have generally been in decline. South Africa’s massive resource has been the most productive of all time, but the gold that remains in the ground is becoming harder and harder to reach. A very high gold price of $1 619 per ounce in June 2012 was a motivating factor for miners to roll out new projects, but 51 • Village Main • Gold Fields • Harmony • AngloGold Ashanti • DRD Gold • Petra Diamonds • Rand Refinery Limited • Mintek the fact of the high price of extraction remains. Gold Fields is investing in increased production capacity at its South Deep mine. A joint venture between Gold Fields and Gold One is exploring the possibilities of extracting gold from about 700 million tons of ore tailings on the West Rand. South Africa’s thirdbiggest gold miner, Harmony, announced in 2012 that more than four million ordinary shares and eight million Gauteng companies 2013 OVERVIEW Research hub Gauteng is at the heart of research for the mining industry and the training of qualified staff. One of the Gauteng companies 2013 Analytical laboratory work is an essential component of the mining industry. leaders in this field is Mintek. An autonomous body based in Randburg, this research and development unit receives about 30% of its R390-million annual budget from the National Department of Mineral Resources. The balance comes from joint ventures with the private sector, or is earned in research and development income, the sale of services and products and from technology licensing agreements. Mintek has a permanent staff of 780 and offers everything from preliminary investigations through piloting, to full-scale feasibility studies. It has internationally accredited analytical laboratory and mineralogical services. A joint initiative between Mintek, the National Department of Science and Technology (DST) and AngloGold Ashanti has resulted in the creation of a plant that manufactures gold catalysts. Project AuTEK began in the year 2000. Engineering News reported in 2012 that the projectâ€™s scientists have found a way of getting gold catalysts to play a role in improving fuel cell efficiency by oxidising carbon monoxide. Catalysts can be used anywhere that pollution needs to be removed. The University of the Witwatersrand (Wits) School of Mining has two centres that are part-funded by several mining houses and equipment suppliers, such as Xstrata, AngloGold Ashanti, Lonmin, BHP Billiton, Gold Fields, De Beers, Anglo Platinum, African Rainbow Minerals, Joy Global Africa and Sandvik. The Centre for Sustainability in Mining and Industry offers comprehensive courses in environmental impact assessment, sustainable development, health and safety legislation and community engagement. The Centre for Mechanised Mining Systems (MineMech) aims to be a centre of research for improved mechanised 52 photo: anglo american share-appreciation rights had been offered to 33 000 members of its workforce. The company calculated that a qualifying employee might be paid out R10 000 for 100 ordinary shares after five years. Harmony operates mines in several provinces. Its Gauteng mines, Doornkop and Kusasalethu, are west of Johannesburg. The closure of some shafts and some mines has created opportunities for companies that specialise in closure and rehabilitation. An increased awareness of the dangers to communitiesâ€™ water supplies created by toxic waste and acidic water from mines has brought work for companies specialising in environmental services and waste management. The service and manufacturing divisions of miningequipment company Joy Global have recently been combined into an entity called Joy Global Africa. The company has been making underground mining equipment (such as shuttle cars) for decades at its Wadeville plant. Some of the companyâ€™s 1 400 employees are employed at Steeldale, where parts are manufactured and distributed. The service division that has been incorporated was previously P&H MinePro Services Africa. OVERVIEW Kloof gold mine lies on the border of the Gauteng and North West provinces. mining and the introduction of automated systems, and to provide skilled engineers in an industry that has a skills shortage. Students studying for a Bachelor of Engineering degree through Pretoria University’s Department of Mining Engineering are obliged to participate in a community development project in the course of their studies. The University of Johannesburg offers a full-contact mine-surveying qualification, while the University of South Africa (Unisa) offers three national diplomas: in mine engineering, mine surveying and surface mining. Gauteng’s two universities of technology, Vaal and Tshwane, both offer courses relevant to the mining industry through their engineering faculties. is underway and South Deep is undergoing a revamp to push production levels up to 800 000 ounces per year. The project has a budget to 2014 of R8.4-billion. The tailings joint venture with Gold One could see Gold Fields gain access to 4.5 million ounces of gold. Gold Fields has nine mines in South Africa and three other countries. Gold DRD Gold DRD Gold owns Crown, which is the world’s largest gold surface-tailings retreatment facility, and Blyvooruitzicht. In May 2012, the Competition Commission approved the sale of the troubled Blyvooruitzicht mine to Village Main. The biggest gold mining companies and their Gauteng operations are: photo: Gold fields AngloGold Ashanti The West Wits complex near Carletonville straddles the border between the Gauteng and North West provinces and comprises three mines: Mponeng (which has its own processing plant), Savuka and Tau Tona (which share a plant). West Wits produced about 800 000 ounces of gold in 2011. AngloGold Ashanti has 21 operations on four continents and controls a resource base of 71.4 million ounces. It has seven mining operations in South Africa. Gold Fields Gold Fields operates Driefontein (in the North West Province near Carletonville), Kloof and South Deep (both sites near Westonaria). Deep digging to extend Driefontein’s operations 53 Harmony At the Doornkop South Reef project, 5.9 million ounces are estimated to be on-site. It is being developed at a cost of R1.7-billion. Elandsrand, on the border with North West Province, is a new operation on an old site which, when Gauteng companies 2013 OVERVIEW fully developed, will have an estimated output of 450 000 ounces per year. Harmony’s assets include mines in Papua New Guinea and Australia. The company produced 1.5 million ounces in 2011. Gold One International This junior mining company officially opened its Modder East mine in May 2010, the first new gold mine on the East Rand in nearly three decades. The project began in 2006 and the first ounce of gold was mined in July 2009. Gold One believes its joint venture with Gold Fields will enable it to gain access to 4.5 million ounces of gold among the tailings that it owns on the West Rand. Other minerals The southern parts of Gauteng have historically produced a lot of coal used to fire power stations. These power stations have since been decommissioned. However, Heidelberg is still a source of coal, where a BEE operation, Anglo Inyosi Coal, has a project. Platinum is also mined at Elandsfontein, while Gauteng has many quarries supplying the construction and mining industries. Afrimat, a JSE-listed construction-materials supplier, made its first foray into the industrial minerals sector with the purchase in 2010 of the Glen Douglas dolomite mine from Exxaro. Afrimat has several quarries around the country (including the Blue Platinum quarry in Lanseria, purchased in 2009) but the Douglas mine output of 1.2 million tons will make it the largest in the company. Afrimat believes that the western, south-western and southern parts of Gauteng are developing rapidly and it wants to position itself to boost profitability and growth. Refineries The Zincor electrolytic refinery near Springs was shut down by Exxaro Resources in December 2011. It was the only zinc refinery in the country. The company is also due to sell its 22% share in a zinc smelter in China. Rand Refinery in Germiston is South Africa’s only gold refinery. Rand Refinery Limited (RRL), of which AngloGold Diamonds Ashanti is the majority shareholder, is spending R80-million on The owners of the Cullinan four projects designed to expand capacity, develop new prodmine north of Pretoria, Petra ucts and improve safety. A new copper-leaching plant (to extract Diamonds, aim to push pro- gold from copper base metals) and major upgrades to the arc duction at this famous mine furnace and ventilation systems are among the concrete steps up to 2.6 million carats per that will deliver increased capacity. Research is also being done year by 2019. The mine’s into improving the efficiency of electrolytic refining in extracting annual production is about platinum group metals. 900 000 carats. BHP Billiton has a metal alloys plant in Vereeniging. Exxaro Although it was the area company FerroAlloys produces gas-atomised ferrosilicon at its around Kimberley that first plant in Pretoria. gave South Africa its reputation for high-quality diamonds, it was from Cullinan that the Online resources greatest stones originated. Chamber of Mines South Africa: www.bullion.org.za The enormous 3 106-carat Council for Mineral Technology (Mintek): www.mintek.co.za Cullinan Diamond was cut Geological Society of South Africa: www.gssa.org.za into several famous smaller Johannesburg (official website): www.joburg.org.za diamonds, one of which, National Department of Mineral Resources: www.dmr.gov.za the 530-carat Great Star of Rand Refinery: www.randrefinery.com Africa, was presented to BritSouth African Institute of Mining and Metallurgy: ain’s King Edward VII on his www.saimm.co.za 66th birthday. Gauteng companies 2013 54 Unlimited resourcefulness applied… in a world of limited resources. Nalco has, for over 80 years, understood how water, energy and air management challenges affect your business. Our technologies and services are designed to help you use less, recycle more and reduce your environmental footprint. While simultaneously reducing operational costs. From mining to petrochemicals to manufacturing, ranging from heavy industry to food processing, we bring world-class solutions for: Backed by over 40,000 global employees, including 1,300 research professionals, Nalco Africa combines a unique understanding of water, energy and air systems with the world’s most advanced technologies. In a world of limited resources, we’re applying unlimited resourcefulness to help make the world cleaner, safer and healthier for everybody. Water treatment, recycling and reuse Dust control Mineral recovery Emission control © 2012 Ecolab USA Inc. All rights reserved An Ecolab Company PROFILE KSM Group KSM Group is a one-stop destination for logistics, mining equipment and mining commodities. KSM Group also facilitates the buying and selling of mines and mining commodities, such as copper, iron ore, manganese, chrome and coal, among many others. The mining department also deals with leasing and selling of mining equipment and all mining earthmoving machinery. As the company enters into a new dimension in the world Gauteng companies 2013 56 economy, it has been in a position to provide employment for many people, provide scholarships and get involved in other communitybased empowerment activities. The year 2012 has seen the company sign off on a major African mine, and thus a multi-million-dollar contract for the next five years. The company offers the highest and the bestquality service to the best of its abilities. It organises, supplies and manages professional service to the satisfaction of its esteemed clients. Values The values of KSM are simply to deliver good service and quality products to the client. The company strives to maintain absolute integrity at all times, by being the one that sets values, photo: anglo american The company has grown in leaps and bounds over the last five years, and is now a global logistics organisation that deals with worldwide cargo, sea freight and road logistics in regions from sub-Saharan Africa to the Middle East, Europe and the Americas. The company holds a number of awards and accolades, such as recognition as a Top Empowerment Company as a result of its contribution to broad-based black economic empowerment and transformation. PROFILE innovation, creativity and value-added services without compromising its business and ethics. KSM endorses the need for team spirit during all the various stages of a project from all participants and stakeholders. Company ethics • Be customer focused • Create a passion for excellence • Be safety conscious • Make value contribution to the company and the community • Do things right the first time • Always conduct business in a professional manner equipment to mine acquisitions. The company also recently embarked on a partnership with some of Africa’s leading mines, and in turn, aims to have mining influence on a global spectrum. Mining and the resource sector in Africa remains the fastest-growing sector worldwide. Projects have escalated from 250 in 2003 to over 1 100 in 2010. Between 2008 and 2010, Namibia showed 44% growth in new projects. Between 2008 and 2010, South Africa showed 57% new project growth. Between 2008 and 2010, Tanzania showed 51% new project growth. Between 2008 and 2010, Ghana showed 64% new project growth. Forty percent of the 1 100 African Mining Projects are gold related. KSM Logistics Benefits KSM Logistics offers a vast array of logis- • Companies benefit from the early stage tics solutions and warehousing solutions. As information with key contacts on mine owner, demand grew, KSM had to increase its sphere project engineer and engineering, procureof influence to a more global audience. As such, ment and construction management (ECPM) the company is in partnership with KWE MSASA level, enabling them to get specified before Global and many other companies. bidding stage • Companies actively track a project’s progress Impact through their projects of interest • Continuous offshore outsourcing activities • Companies have the facility to be listed as • New emerging markets a project supplier on the database with key • Increasing global sourcing strategies contact information • More complex supply-chain relationship • Companies have the ability to identify proopportunities jects that they were not previously aware of Initiatives • Identifying and taking advantage of new BEE status Black ownership: 100% Black directors: 100% Black staff: 100% markets and emerging opportunities in China, India, Vietnam, Bangladesh and Russia • Identifying new opportunities in Cambodia and Myanmar • Adapting to the complexities of local opera- Contact details Key contact person: tional regulations • Vendor-management programmes to achieve Ben Miyoba, Chief Executive Officer supply-chain optimisation Email: firstname.lastname@example.org • Assistance in vendor/ODM education Tel: +27 73 760 5931 • Call-centre setup Fax: +27 86 640 3802 Email: email@example.com Mining and mining equipment Physical address: 21 Valley Farm, Mooikloof KSM Mining has the ability to spot and deter- Ridge, Pretoria East 0001 mine market trends, thereby providing the Postal address: Postnet Suite 15, Private Bag best mining solutions ranging from mining X25, Sunnyside, Pretoria 57 Gauteng companies 2013 OVERVIEW Manufacturing Gauteng leads the nation in manufacturing. Sector Highlights An antiretroviral manufacturing plant is being constructed in Gauteng. • Railway firms are clustered in Ekurhuleni. • The provincial government has pledged to build a Bioscience Park. major companies • ArcelorMittal • Aspen • AECI • Kimberly-Clark • Procter & Gamble • PG Group • Transnet Rail Engineering • Union Carriage and Wagon Gauteng companies 2013 58 photo: stephane gaudry/flickr M anufacturing forms a key component of the Gauteng envisages a growth rate in provincial economy, accounting for about 20% of GDP the industry of 8% by the and 27% of capital investment. Every kind of manufac- year 2014. turing takes place in the province: the automotive and food and The greatest concentrabeverage sectors are dealt with elsewhere in this publication. tion of manufacturing is in The Provincial Government of Gauteng intends creating a the Ekurhuleni Metropolitan Bioscience Park to promote downstream manufacturing in areas Municipality, especially the such as agri-processing and the pharmaceutical industry. The 15km stretch between WadeCSIR and the University of Pretoria are partners in the initiative. ville and Alrode, south-west The provincial government has identified three manufacturing of Alberton. Germiston has the counsectors as key for growth: • Automotive try’s largest rail junction, and • Clothing, textile, footwear and leather many rail industries have • Furniture developed in Ekurhuleni. The decision by sofa manufacturer Coricraft to build a Transnet Rail Engineering’s R50-million factory in Gauteng to complement its Cape Town complex in Germiston has received hundreds of millions facility is in line with the provincial government’s priorities. The master plan for manufacturing in the province, the Gauteng of rands worth of investments Advanced Manufacturing Sector Key Action Plan (Gamskap), in new machinery, while the OVERVIEW nearby towns of Nigel and Boksburg host the workshops of Union Carriage and Wagon (UCW), DCD Rail and Lennings Rail Services, a company in the manufacturing division of Aveng. UCW is a Murray & Roberts company that makes and repairs locomotives, trains and coaches. Germiston is the site for a new R100-million plant being built for pump manufacturer Grundfos. Household products manufacturer Unilever represents an example of the lighter industrial capacity of the East Rand. Kellogg’s also has a large plant in Springs. Kimberly-Clark South Africa has spent R100-million on increasing capacity at its existing Enstra Mill in the same town, while Procter & Gamble spent R350-million in 2010 on expanding its nappy facility at Kempton Park. Vanderbijlpark and Vereeniging in southern Gauteng are synonymous with steel production. Flat iron is made at the plants of ArcelorMittal. AECI is a JSE-listed company with a market capitalisation of R7.4-billion. The two principal divisions are AEL Mining Services (with a large factory site at Modderfontein near Johannesburg) and Chemical Services, which has 20 separate companies. Senmin is the group’s miningchemicals company. There are 35 aluminiumprocessing companies in Gauteng. Products include secondary processing such as foils, cans, bars, rods and sheets, and final fabrication such as die-casting and sheet metal work. The main clients in Gauteng are the automotive and packaging industries. South Africa’s pharmaceutical sector is worth approximately R20-billion per year. Although there are more than 200 pharmaceutical firms in the country, large companies tend to dominate the field, with Aspen (34%) and Adcock Ingram (25%) being the two key players. The bulk of Aspen Pharmacare’s manufacturing capacity is located in the Eastern Cape, and the company’s factory in Clayville, Midrand, makes infant formula. The JSE-listed company has a wholly owned distribution subsidiary called Pharmacare. The private sector accounts for 80% of pharmaceuticalindustry sales by value and 20% by volume, while the public sector accounts for 80% by volume and 20% by value. Adcock Ingram has been investing heavily in its South African operation. It produces more than two billion tablets and capsules per year. In the year to 2013, the company will spend just over R1-billion on new developments and upgrades. Of this amount, R400-million will be spent on a liquids plant at Clayville, R223-million on solids and antiretrovirals (ARVs) at Wadeville (Germiston) and R200-million on upgrades to the Critical Care Plant at Aeroton, south-west of Johannesburg. The company also has new headquarters, as does iNova Pharmaceuticals, which has relocated to Bedfordview. The latter company has grown its sales by 65% in three years. Two other big international names active in Gauteng are Merck, which has a 55 000m2 plant at Modderfontein, and Pfizer SA, which has a laboratory in Sandton. About R1.6-billion is to be invested in construction of a plant that will make antiretroviral medicine at Pelindaba outside Pretoria. This is a joint venture between several South African government departments and Swiss pharmaceutical giant Lonza. Online resources Gauteng Department of Finance and Economic Affairs: www.finance.gpg.gov.za Manufacturing Circle: www.manufacturingcircle.co.za Manufacturing, Engineering and Related Services Sector Education and Training Authority: www.merseta.org.za National Association of Pharmaceutical Manufacturers: www.napm.co.za National Department of Trade and Industry: www.thedti.gov.za Pharmacy Industry Association of South Africa: www.piasa.co.za South African Bureau of Standards: www.sabs.co.za 59 Gauteng companies 2013 OVERVIEW Automotive A Tshwane automotive hub aims to improve efficiency in the sector. Sector Highlights BMW’s introduction of a third shift will create 600 jobs. • Armoured and mineprotected vehicles are made in Gauteng. • Nissan SA has won the contract to make the latest pick-up model. • Ford has ambitious production targets. major companies • BAE Systems OMC • BMW • Tata • Nissan • Ford • Johnson Matthey • Degussa Hüls Gear Ratio, Alberton) and make firing systems and turrets (BAE Systems Dynamics, auteng is home to the manufacturing facilities of some of Tshwane). the world’s biggest motor vehicle brands, such as BMW, BAE Systems OMC is the Ford and Nissan, a thriving automotive components principal supplier to both sector, several bus- and truck-assembly plants and companies the South African National that make internationally sought-after mine-protected and Defence Force and the South armoured vehicles. African Police Service, and DCD Protected Mobility makes armoured cars branded as exports to more than 40 counVehicle Mounted Mine Detectors, and lists the United States tries. Finland’s Defence Force Army and Marine Corps, the Australian, French and Kenyan recently paid R58-million for armies and the defence forces of Canada and South Africa 16 mine-hardened vehicles. among its clients. The vehicles are made in Boksburg. The Nissan/Renault plant at BAE Systems OMC is located in nearby Benoni. This com- Rosslyn, Pretoria, makes