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2018/19 EDITION

GAUTENG BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN GAUTENG PROVINCE

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CONTENTS

CONTENTS Gauteng Business 2018/19 Edition

Introduction Foreword6 A unique guide to business and investment in Gauteng.

Special features Regional overview Research and planning aim to bolster growth.

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Urban Development Zone Property regeneration and growth through tax incentives.

14

Aerotropolis22 O.R. Tambo International Airport can spark new growth.

Economic sectors Agriculture36 Urban farming is in the spotlight. Mining38 Government wants broader participation in the mining sector. Oil and gas Gauteng leads the nation in manufacturing.

44

Engineering48 Tens of billions are to be spent on Gauteng infrastructure. Manufacturing50 New plants are powering Gauteng’s manufacturing sector. Automotive56 Investment in plant and training is on the rise.

GAUTENG BUSINESS 2018/19

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CONTENTS Food and beverages Joburg Market is Africa’s biggest.

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Tourism58 Heritage is a growth sector. Education and training Gauteng is focussing on vocational training.

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Information and communications technology Technology companies are training young people in ICT.

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Banking and financial services Gauteng is home to new banks and new stock exchanges.

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Development finance and SMME support Co-operatives are making school uniforms.

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Government Gauteng Provincial Government An overview of the Gauteng provincial government departments.

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Gauteng Local Government An overview of the Gauteng municipalities.

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References Sector contents Overview of the main economic sectors of Gauteng.

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Index80 Map Regional map.

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ABOUT THE COVER The cover photograph shows the new council chamber of the City of Johannesburg in Braamfontein with the skyscrapers of Hillbrow in the background. The design by architects studioMAS evokes a drum or calabash with the round plan encouraging open debate in the tradition of the Setswana lekgotla and the Roman agora. Photo credit: THEGIFT777, iStock by Getty Images.

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FOREWORD

Gauteng Business

CREDITS

A unique guide to business and investment in Gauteng.

T

he 2018/19 edition of Gauteng Business is the 10th issue of this highly successful publication that has established itself as the premier business and investment guide for the Gauteng Province. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on the concept of the Urban Development Zone which underpins the successful urban growth strategy that is being pursued in the province, and on the importance of airports in regional economic thinking. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.globalafricanetwork.com under e-books. Updated information on Gauteng is also available through our monthly e-newsletter, which you can subscribe to online, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title. Chris Whales Publisher, Global Africa Network Media Email: chris@gan.co.za

Publisher: Chris Whales Publishing director: Robert Arendse Editor: John Young Online editor: Christoff Scholtz Art director: Brent Meder Design: Tyra Martin Production: Lizel Olivier Ad sales: Sydwell Adonis, Joseph Gumbo, Gavin van der Merwe, Sam Oliver, Gabriel Venter, Siyawamkela Sthunda, Vanessa Wallace, Jeremy Petersen and Reginald Motsoahae Managing director: Clive During Administration & accounts: Charlene Steynberg and Natalie Koopman Distribution & circulation manager: Edward MacDonald Printing: FA Print

DISTRIBUTION

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Gauteng Business is distributed internationally on outgoing and incoming trade missions; to foreign offices in South Africa’s main trading partners; at top national and international events; 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, airport lounges and companies.

Global Africa Network Media (Pty) Ltd Company Registration No: 2004/004982/07 Directors: Clive During, Chris Whales Physical address: 28 Main Road, Rondebosch 7700 Postal address: PO Box 292, Newlands 7701 Tel: +27 21 657 6200 | Fax: +27 21 674 6943 Email: info@gan.co.za | Website: www.gan.co.za ISSN 1990-6021

Member of the Audit Bureau of Circulations COPYRIGHT | Gauteng Business is an independent publication published by Global Africa Network Media (Pty) Ltd. Full copyright to the publication vests with Global Africa Network Media (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network Media (Pty) Ltd. PHOTO CREDITS | Chamber of Mines, BMW, Gibela Rail Transport Consortium, Indluplace Properties, iStock, studioMAS Architecture, SA Tourism/Flickr, Seda, Transnet Pipelines, Wits University and THEGIFT777, iStock by Getty Images.

GAUTENG BUSINESS 2018/19

DISCLAIMER | While the publisher, Global Africa Network Media (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in Gauteng Business 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.

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FOCUS

Member-oriented scheme makes medical aid affordable Selfmed Medical Scheme is one of the oldest medical schemes in South Africa, having been established more than 50 years ago.

Christo Becker

Affordability is a key component of the company’s offering. As Christo Becker, Principal Officer of Selfmed, says, “We pride ourselves in bringing affordable options to the South African market and making medical aid more accessible.”

Selfmed prides itself on having a very strong member focus. Becker, who has previously worked as a paramedic and a hospital manager believes, “All of us share the passion and we want to ensure our members receive good healthcare.” Becker believes that the recent White Paper related to the planned National Health Insurance (NHI) scheme did not address a number of issues. He says, “We all support the idea that healthcare should be accessible to all,” but issues not tackled include what the basket of care will look like and who will provide the care. He notes that the parameters of the NHI will likely change during its implementation. Becker is upbeat about the state of the South African healthcare system in the international context, and supports a collaborative approach to tackling the future of healthcare. He says: “I believe that the private healthcare system in South Africa – private medical care and medical insurance – is equal to the best in the world. Many of our doctors and medical professionals go overseas for training or to attend medical conferences and we have some of the most advanced medical equipment in the world in our private hospitals. “Furthermore, in countries like the USA, medical care is far more expensive than it generally is in South Africa. Ideally, representatives of the entire healthcare industry here should get together to discuss challenges and collaborate on viable ways to solve these so that quality healthcare can be made accessible to more people.”

Selfmed has six medical aid options:

• SelfNET Essential: an entry-level product is the

most affordable as it covers a narrow band of benefits. • SelfNET: one level up from the Essential option with more benefits and medical cover. • MedXX1: a hospital plan that extends beyond the prescribed minimum benefits and pays out at 100% of scheme rates for covered in-hospital treatment and in-hospital doctor’s consultations. • Selfsure: an option that provides in-hospital and out-of-hospital benefits and is a great choice for a family with young children. • Med Elite: a broader hospital plan that covers additional conditions including greater coverage for oncology expenses, hip, knee and back operations. • Selfmed 80%: 80% of bills relating to a wide range of conditions are covered.

www.selfmed.co.za

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GAUTENG BUSINESS 2018/19


A REGIONAL OVERVIEW OF

GAUTENG

Research and planning aim to bolster growth.

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n 2017, the cities of Gauteng Province were elected as co-president of the organisation representing the world’s major cities, Metropolis, World Association of Major Metropolises. This event, which happened at the organisation’s 12th World Congress in Montreal, Canada, illustrates that the Gauteng City Region is globally recognised. Gauteng’s participation in groupings such as Metropolis also illustrates that the problems of the world’s great cities cannot be solved in isolation. Proper research is needed to find solutions to the problems faced by large conurbations.


SPECIAL FEATURE Gauteng began laying the groundwork for creating a research base as far back as 2008 when the Gauteng City-Region Observatory (GCRO) was established. A partnership between the University of Johannesburg (UJ), the University of the Witwatersrand (Wits) and the Gauteng Provincial Government, the GCRO does research on which planners can base their projections. A case study using the GCRO model was presented to the Metropolis conference. Efforts are also being made to improve the regional economy by identifying blockages and shortcomings. Researchers from the universities of Johannesburg and Pretoria (through the Gordon Institute of Business Science) are examining employment rates, empowerment policies and the export value chain. At the same time, the Gauteng Innovation Hub is leading a process to bring innovation and research to the fore in economic policy-making and planning. Partners include the Council for Scientific and Industrial Research (CSIR), the University of the Witwatersrand and the Vaal University of Technology. Other international news for the City of Johannesburg in 2017 came in the form of an award for the newly constructed council chambers (shown in the photograph below and on the cover of this publication). In the public services development category, the Braamfontein building, built as part of a redevelopment of the Metro Centre Precinct, was the winner at the International Property Awards. The building is owned by the Joburg Property Company and was designed by studioMAS Architecture. Apart from providing a sparkling new council chamber for councillors, the upgrade aims to connect Hillbrow and Berea with Wits University and Braamfontein and to provide better connectivity between Constitution Hill, the Joburg Theatre and the Metro Centre. In January 2018, the Gauteng Technology and Innovation Conference was held in Gauteng to discuss the potential impact of the Fourth Industrial Revolution. The event was jointly hosted by the Gauteng Departments of Economic Development and eGovernment.

Investment and infrastructure In 2016 Gauteng attracted 75 foreign direct investment (FDI) projects worth R36-billion which created 9 354 jobs. In the period 2014-16, the province attracted R66-billion. The Gauteng Growth and Development Agency has a specialised subsidiary, the Gauteng Investment Centre, which acts as a one-stop shop for potential investors looking for advice and support. A major factor influencing investors is the quality of infrastructure. The Gauteng Treasury reports that in 2018, the following projects, coordinated by the Gauteng Infrastructure Financing Agency and collectively worth about R4-billion, will have reached financial close and be in the implementation phase: • Jewellery manufacturing precinct • West Rand logistics hub • Lindley waste water treatment works • Trigen/co-gen plants at Chris Hani Baragwanath Hospital • Tshwane Innovation Hub; Enterprise buildings 2 and 3 • Rooftop solar panels project. Neither the central government nor provincial and local government has sufficient resources to cover what the provincial government has estimated is needed in the Gauteng province in the 15 years to 2030 – R1.3-trillion. A 15year Gauteng Infrastructure Master Plan has been adopted but it is

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SPECIAL FEATURE hoped that multiple sources of funding will see the plan succeed in areas such as the provision of water, broadband connectivity, public transport, energy and the reshaping of cities to accommodate citizens in a better way than was the case under apartheid. A World Bank report has shown that a 10% increase in infrastructure spending results in a 1% growth in GDP. The network fibre of the province has been extended to 1 500 kilometres with the community given access through clinics, schools, libraries and community centres. The aim is to have 100% broadband connectivity in Gauteng by 2020. To support the economy, the Gauteng Department of Economic Development will, in 2018/19, invest in the following projects: • Automotive Supplier Park expansion, R11.8-million • upgrading of township hubs and industrial parks, R56-million • small business development at the Gauteng Enterprise Propeller, R67.3-million • start-up support for township companies from the Tshwane Innovation Hub, R35.5-million.

Overview Gauteng province covers 1.4% of South Africa’s land mass but it produces about a third of South Africa’s gross domestic product (GDP), and a remarkable 10% of that of the African continent. The province is a leader in a wide range of other sectors: finance, manufacturing, commerce, IT and media among them. The Bureau of Market Research (BMR) has shown that Gauteng accounts for 35% of total household consumption in South Africa. The leading economic sectors are finance, real estate and business (21% of provincial GDP), manufacturing (16.5%), government services

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(16.3%) and wholesale, retail, motor trade and accommodation (12.8%). The creative industries (including advertising and the film sector) employ upwards of 180 000 people and contribute more than R3.3-billion to the provincial economy. This sector is seen as a driver of future growth. In the provincial capital, Johannesburg, financial services and commerce predominate. The JSE, Africa’s largest stock exchange, is situated in the heart of Johannesburg’s business district, Sandton. 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, ranging from heavy to light industry, in the country. 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. Gauteng is not just an important centre of economic activity, it is also an important launching pad for local and international businesses to enter the African market. The country’s biggest airport, OR Tambo International Airport, is at the core of the province’s logistical network. Other airports include Rand Airport (Germiston), Wonderboom (Pretoria) Lanseria and Grand Central (Midrand). GAUTENG BUSINESS 2018/19


SPECIAL FEATURE The Gauteng Division of the High Court of South Africa (which has seats in Pretoria and Johannesburg) is a superior court with general jurisdiction over the province. Johannesburg is also home to the Constitutional Court, South Africa’s highest court, and to a branch of the Labour Court and the Labour Appeal Court. The province has several outstanding universities, and the majority of South Africa’s research takes place at well-regarded institutions such as the Council for Scientific and Industrial Research (CSIR), the South African Bureau of Standards (SABS), Mintek, the South African Nuclear Energy Corporation (NECSA), the Human Sciences Research Council (HSRC) and several sites where the work of the Agricultural Research Council is done.

City Region Provincial planning is increasingly being done along “Gauteng City Region” lines, where the primacy of economies of the cities and towns of the province is acknowledged. Individually, the biggest Gauteng cities contribute to the national GDP as follows: Johannesburg (15%), Tshwane (9%) and Ekurhuleni (7%). The following development corridors of the City Region have been identified, each with its own industries and comparative advantages: • City of Joburg, Central Development Corridor: provincial capital, finance, services, ICT and pharmaceutical industries, green and blue economy. • City of Ekurhuleni, Eastern Development Corridor: manufacturing, logistics and transport hub. • City of Tshwane, Northern Development Corridor: national administrative capital, automotive sector, research, development, innovation and knowledge-based economy, tourism, agri-processing. • West Rand District, Western Development Corridor: transitioning mining economy. A new diverse economy to be created around tourism (Maropeng World Heritage Site), agriculture and agri-

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pro cessing, L anseria Airport City, renewable energy. Sedibeng District, Southern Development Corridor: steel industry in decline. A new economy to be based on entertainment and tourism (Vaal River City), logistics, agri-processing and urban agriculture.

Ekurhuleni is putting considerable resources into infrastructure improvement. With a corridorbased masterplan, the aim is to promote industrial activity. The nine towns of Ekurhuleni are being connected by the new Bus Rapid Transit system (Harambee). The City of Johannesburg’s good credit record allowed it to borrow R3.3-billion for infrastructure expenditure in 2016. In 2014/15 a surplus of R3.9-billion was achieved and the city spent 94% of its capital budget, or R10.8-billion. In 10 years Johannesburg has raised more than R100-billion for infrastructure. Tshwane is planning a series of transformative infrastructure and property developments, including expanding the Bus Rapid Transport System, Government Boulevard, Tshwane House, Times Square, the Nelson Mandela Development Corridor and the West Capital project and the African Gateway. Together with the three large metropolitan municipalities, Gauteng also has two district municipalities.


SPECIAL FEATURE Sedibeng District Municipality Towns: Sebokeng, Heidelberg, Sharpeville, Vereeniging, Vanderbijlpark Local municipalities are Emfuleni, Midvaal and Lesedi. The Vaal University of Technology and the North-West University’s Vaal campus are located in Sedibeng. The Emfuleni Local Municipality (including Evaton, Sharpeville, Vanderbijlpark and Vlakplaas) is at the core of the Vaal Triangle, which in turn is at the heart of South Africa’s iron and steel industry. Metal products, machinery and equipment are made here. ArcelorMittal has been a major employer in Vanderbijlpark since 1947. Heidelberg produces bacon and tobacco: Eskort and British American Tobacco are the two major companies in the area. The Midvaal area has agriculture and tourism as its two main economic 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 the Vaal Dam are major tourist attractions, while ecotourism opportunities have the potential to grow. The Suikerbosrand Nature Reserve is a prime regional asset.

The West Rand is the area of Gauteng where mining has retained its strongest presence. Large-scale commercial farming also takes place. Randfontein Local Municipality is where the world’s deepest gold mine was dug. To the south, mining contributes 75% to Westonaria Local Municipality’s economy. An industrial park is planned to assist in the process of diversifying the economy. Mogale City Local Municipality is very much the economic driver of the district, including as it does the town of Krugersdorp. Krugersdorp has considerable manufacturing capacity and has a motor-sports racing track that attracts international drag-racing events. Tourism in the district is mostly located within the surrounds of Mogale City. Significant tourist attractions include the Cradle of Humankind, the Magalies Meander, the Sterkfontein caves and the Krugersdorp Game Reserve.

GAUTENG PROVINCE N1

Limpopo

North West

N1

PRETORIA N4

Cullinan Mamelodi

Zithobeni

N4

Bronkhorstspruit

Irene N14

Magaliesburg

Muldersdrift Sandton Randburg

Krugersdorp N14

Randfontein

N12

N1 R21

Midrand

Tembisa Alexandra Kempton Park Isando Benoni Edenvale

JOHANNESBURG

Soweto

Bekkersdal Westonaria

Roodepoort

N12

N12

Daveyton Boksburg Germiston Wattville Brakpan Reiger Park KwaThema Katlehong Springs Vosloorus Tokoza Tsakane Duduza Nigel

Kagiso

Alberton

Lenasia N1 R59

Evaton

Devon N17

N3

Ratanda

Heidelberg

Meyerton Sebokeng Vereeneging Boipatong Bophelong Sharpeville Vanderbijlpark

Towns: Randfontein, Roodepoort, Krugersdorp, Westonaria Local municipalities are Merafong City, Mogale City and West Rand City. Both the N12 and N14 highways pass through this area which allows for a great deal of commuter traffic into the Johannesburg CBD.

Ekangala

N4

Centurion

Atteridgeville

Mohlakeng

West Rand District Municipality

Mpumalanga

Hammanskraal

Mpumalanga

N1

Free State

N N3

Motorway Main Road Railway

.

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GAUTENG BUSINESS 2018/19


SPECIAL FEATURE

Urban Development Zone Property regeneration and growth through tax incentives.

Indluplace Properties is investing in providing accommodation in central Johannesburg.

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n order to fight urban decay and to encourage investment in inner cities, a tax incentive was created that applied to major South African cities. This is called the Urban Development Zone tax incentive. The UDZs for Johannesburg and Cape Town were first allocated in 2004. The inner city of Johannesburg, comprising just less than 18km², is the largest UDZ in South Africa and it is expanding its footprint in response to significant successes that have been achieved. The Urban Development Zone tax allowances (Section 13quat) provide for an accelerated depreciation allowance on the costs of buildings erected, added to, extended or improved inside a UDZ. The South African Revenue Service (SARS) has extended the incentive to 31 March 2020. Municipalities can apply for extension to the existing UDZs via the National Treasury. There are five requirements to qualify for a UDZ tax deduction. These relate to the building, the nature of the UDZ, trade considerations, the specifics of ownership and to the dates of the applications. The fact that the incentive has been extended to 2020 gives investors a good chance to take advantage of favourable conditions in Johannesburg. The Johannesburg Social Housing Company (Joshco) has plans to provide affordable rental accommodation in 12 inner-city buildings that were recently identified for that purpose. But the main target for the UDZ is private investors. The City of Johannesburg wants to leverage the UDZ concept to create a series of linked zones or precincts, starting in the inner city and GAUTENG BUSINESS 2018/19

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reaching out to other areas and regions on the city’s outskirts. The city wants to achieve nothing less than the “structural transformation of the inner city’s economic and physical landscape”. The City of Johannesburg has identified the following nodes for development: • Carlton Precinct: Johannesburg’s tallest building attracts tourists; undergoing revamp; Sky Rink TV and film studio being developed; conference centre planned. • Park Station: intermodal node catering for cars, buses, rail commuters and taxis; Gautrain link to OR Tambo International Airport; wide variety of users. • Central park: JDA has worked on greening and


SPECIAL FEATURE

• • • • •

community engagement and wants the park to be a symbol of the successful city. Doornfontein/Ellis Park railroad corridor: planned retail hub and student village. Fordsburg: interior design focus; more offices and accommodation can be built. Newtown: cultural precinct with the potential to cater to students and university departments with specialised offices and spaces. Hillbrow, Berea, Parktown, Bellvue, Yeoville: creation of new public open space; opportunities for office and hotel developments. Transit precincts are planned for Fordsburg, Newtown, Joubert Park, Doornfontein and Ellispark. The Gautrain station at Park Station will become a “Contemporary African Precinct”, with the city working with Prasa and Transnet.

A range of new sites for UDZ investment includes: • The Zurich Building, Newtown Development • Maboneng Precinct • Braamfontein University Residential Precinct • Main Street Precinct • ABSA Campus • Bank City • Turbine Square • Ghandi Square. The City of Johannesburg and the South African Property Owners Association (SAPOA) have developed a database for properties that fall within the UDZ. The owner of the plot, valuation and zoning information is available for every stand. Building information is available for some parts of the UDZ.

Transforming the CBD Plans for the regeneration of Johannesburg’s inner city have a long history. Some have been notable successes but progress has been sporadic and initial efforts were mostly concentrated on quite small parts of the city. The Newtown urban renewal project included a focus on the arts at Mary Fitzgerald Square; the building of the Nelson Mandela Bridge in 2003 improved linkages and gave the city a cool symbol; the Johannesburg Development Agency installed 156 public art works, cleaned up squares and installed street furniture. More recently, the Maboneng Precinct on the eastern edge of the CBD has become a busy mixed-use zone with a focus on the arts, design and entertainment. Now there is a drive to transform the central business district (CBD) in a concerted and coordinated way. The city’s new mayor, Herman

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Mashaba, said of Johannesburg in his “100 Days” address that, “It can become a model for a modern, post-apartheid South African city. It has the ability to produce a vibrant socio-economic mix of high-rise, low-cost and affordable housing for our people.” Making inner cities more liveable is a global trend. Flight from the cities in the second half of the 20th century saw factories relocate to industrial parks (or other countries) and offices and people move to suburbs. The move back to cities is spurred partly by the relative cheapness of property in CBDs, legislation encouraging inner-city investment and even a perception that suburbs are boring. Not only does a denser environment mean that service sector businesses such as laundries and restaurants have more passing trade, but the provision of bulk services becomes much more cost effective for utility companies and municipalities. A dense urban environment also has the potential to overturn one of the worst aspects of apartheid – the fact that most South Africans were forced to live a long way from their place of work, causing them to spend a lot of money on transport, a situation that still exists today. The Gauteng Growth and Development Agency is one of several organisations other than the City of Johannesburg which has been encouraging development in the inner city. An important nudge for developers has been the tax incenGAUTENG BUSINESS 2018/19


SPECIAL FEATURE tives that accompany the Urban Development Zone (UDZ). Various “improvement districts” have also contributed, for example the RID (Retail Improvement District) where businesses in a designated area pay levies to secure improved cleaning and security services. The Johannesburg City Improvement District Forum shares information among the CIDs. Expenditure by CIDs collectively on supplementary public space safety, cleaning and maintenance is estimated to be about R 61-million annually. Investment in public space infrastructure from CIDs was more than R50-million over the last five years. The Gauteng Partnership Fund (GPF) has attracted about R3.5-billion in privatesector funding for affordable housing in the province since 2012. The Brickfields housing and rental development in Newton was funded by the GPF and implemented by the Johannesburg Housing Company (JHC) as one of the first inner-city rejuvenation projects. JHC is a leader in converting bad buildings to useable rental space. The Johannesburg Development Agency (JDA) projects range from the upgrading of Constitution Hill, the Faraday Station precinct, work on the Fashion District and pavements of the inner city, renovation of the Drill Hall and the big Newtown make-over. Private developer Indluplace Properties has purchased nine large apar tment blocks, taking its total buildings in central Johannesburg CBD, Berea and Hillbrow to 23: 33% of the units are bachelor pads, 22% are two-bedroomed flats. The listed company (its major shareholder is Arrowhead) intends to “aggressively grow its portfolio” of highyielding properties as it believes the rental market has huge potential. The developers of the Maboneng Precinct are also very upbeat. The Propertuity website states, “With Arts on Main as the catalyst, Maboneng has expanded east along Fox Street, and beyond Albertina Sisulu Road. Community projects like Trim Park and Common Ground offer spaces for the public

to use and enjoy, while buildings have been redeveloped into multi-purpose spaces.” Public spaces play a critical role in urban regeneration planning, as do buildings that serve social purposes. When the Outreach Foundation Community Centre was built in Hillbrow in 2015, it was the first piece of social infrastructure to go up in the suburb since the 1970s. The design, a glass box in a light steel frame which seems to hover over the site, won architects Local Studio the Saint Goban architectural award and provides space for dance and computer classes and offices.

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INTERVIEW

Huge growth in cargo volumes at Africa’s biggest cargo hub Bongiwe Pityi, General Manager, O.R. Tambo International Airport, explains the processes behind her team’s awardwinning management, and outlines plans for future expansion.

Bongiwe Pityi

BIOGRAPHY An admitted attorney of the High Court of South Africa, Bongiwe Pityi has an 18-year record in the aviation industry. Her career with Airports Company South Africa began in Johannesburg as manager of landside and car park operations. She led the transition from the Durban Airport to the King Shaka International Airport and in 2012 became Deputy Director Operational Readiness Planning at Guarulhos International Airport in São Paulo, Brazil. In 2014 she was promoted to General Manager of O.R. Tambo International Airport. GAUTENG BUSINESS 2018/19

How did O.R. Tambo International Airport achieve the distinction of winning the Integrated Risk Management (Transport and Logistics) South Africa 2017 Industry Award?

We were delighted to receive this recognition because it was based on the results produced by my leadership team in embedding a safety and risk management culture. As people involved in risk management will know, it is often a combination of risks that are relatively minor on their own that can create significant challenges. We not only worked on strengthening risk management but focussed on environmental compliance, aviation safety and general operational governance. The notable successes in focus areas which earned us the nomination included: • ISO 14001:2015 certification • Achieving Airport Carbon Accreditation Level 1 through our risk management approach • Reduction in Aviation Safety incidents • Increased Aviation Safety Risk-based programmes • We have partnered with all stakeholders operating on our airfield to conduct serviceability checks of ground service equipment (GSE) and all other motorised and non-motorised equipment through our Risk Management approach to incident management • Joint management inspections of Foreign Object Debris (FOD) • Extension of our ethics programme, given the airport staff volumes (38 000) employed by various stakeholders, service providers and other companies. How big a component of operations is the transport and logistics side?

The air cargo volumes at our airports saw a very healthy growth in 2017 of almost 20%, far exceeding forecasts. Johannesburg is still the largest cargo hub in Africa, handling just short of 415 000 tons

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INTERVIEW in 2017 alone. The existing 14 cargo international and local carriers have maintained or increased their frequencies. Strong improvement has been seen on the belly-cargo which is also important in supporting the immense interest we’ve noted in the passenger market. As the country moves towards a more stable and stronger economic outlook, we expect the interest in the freighter market to grow. Over 2017, the top five export markets in terms of value were to China, USA, Germany, Japan and India, closely followed by Botswana and Namibia – highlighting the role we play as a major supplier to the Southern African Development Community (SADC) and Sub-Saharan Africa countries. Are you running at full capacity? Does ACSA have plans to expand?

While there still is some capacity on the passenger handling side, some Terminal subsystems have reached saturation resulting in long queues and operational bottlenecks. At our International Terminal, these include passenger security screening, passport control check points, boarding gates and arrival baggage carousels. We have accelerated completion of the least disruptive projects which included construction of a direct link allowing passengers to proceed straight from check-in counters to security screening and passport control check points at the Central Terminal Building (CTB). Refurbishment and capacity enhancing projects require meticulous planning and execution in a live environment such as an airport. At our Transit Terminal we enabled unrestricted access to transit hotels; this was critical, considering the four-million passengers connecting to international destinations. Short to medium-term developmental plans will see us increase the number of International boarding gates and the processing capacity of baggage carousels.

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For our Airfield infrastructure, we have several efficiency improvement projects lined up. We are planning to build a bypass taxiway at the threshold of our departure runway (RWY 03L/21R) and more rapid exit taxiways. This will improve the current processing rate of departing aircraft which is negatively impacted by the unavoidable daily crossings of a live runway by well over 300 aircraft. Furthermore, we have an aircraft parking stand constraint for wide-bodied types such as the A380s and B747s. Aircraft parking stand saturation in peak hours results in the capping of potential air traffic movement growth, which is not good considering our strategic focus to grow air traffic. To address this, we are planning to build an additional nine x Code F aircraft parking stands in Multiple Apron Ramp System (MARS) configuration which can be converted to accommodate 18 x Code C type aircraft. This configuration gives us the flexibility and efficiency to maximise space for aircraft parking and turnarounds on the tarmac. At our Cargo Precinct, we have short-term refurbishment plans to upgrade existing Landside facilities. These mini projects will include the reconfiguration of access roads to improve access, relocation of the main gate, extended goods receiving areas, increased on-site security monitoring stations and vehicle parking capacity. The Cargo warehousing capacity will also be extended to accommodate growth in specific commodities such as electronics, perishables GAUTENG BUSINESS 2018/19


INTERVIEW and pharmaceuticals. Long-term, we will ultimately build a new Cargo Terminal on the northern side of our proposed Midfield Passenger Terminal. This will be a multibillion-rand investment that will see growth in cargo volumes of up to one-million tons of cargo annually. What impact on staff size would such plans have?

It is important to bear in mind that of the 38 000 airport employees, about 5% are direct employees of Airports Company South Africa. The majority are in the employ of various stakeholders such as airlines, government agencies such as South African Police Service, Department of Home Affairs, State Security Agency, South African Revenue Service (Customs and Excise), ground handling companies, retail concessionaires, car rental companies and other service providers. It is not possible to put a figure to how the long-term development will impact staff at such an early stage. However, we would anticipate eventually having some additional employees, with a multiplier effect on the overall number of jobs available in and around the airport. To improve the lives and for the benefit of our employees and their children, we are exploring the opportunity to build a crèche and staff canteen as we remain invested in having engaged and nurtured employees. We are also quite advanced in our plans to launch a staff transport solution which will enhance staff safety and time spent on the roads. This will improve the wellbeing of employees residing in faraway areas who wake up at 2h00 to be on duty at 5h00 in the morning including those that knock off at 23h00 after the last flight has departed. We are in discussions with the City of Ekurhuleni regarding its delivery timelines for the construction of a BRT station at the airport, a development which will no doubt make the airport more accessible to airport staff, passengers and the general public. Does O.R. Tambo International Airport coordinate with regional entities such as Ekurhuleni Municipality and the province of Gauteng in terms of economic impact and long-term plans?

As a company we have a strong growth agenda which is driving a dedicated business development focus to seek, develop and convert opportunities across the business landscape. The work we do in promoting traffic development of new routes and increase frequencies on existing routes for passengers and cargo has necessitated that we identify key regional role-players whose business agendas are aligned to this growth agenda. To realise this, we recently formed a Gauteng Air Access Committee with full-time representation of the Gauteng Province, Gauteng Growth and Development Agency, Gauteng Tourism Authority and the City of Ekurhuleni. We also work very closely with South African Tourism with the intention for inclusion as a full-time member. We recently recorded a notable success when Alitalia returned to South Africa after an absence of 17 years. GAUTENG BUSINESS 2018/19

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We are also intimately involved in the Gauteng Aerotropolis initiative led by the Gauteng City Region which seeks to use the airport as the nucleus for developments that will culminate in billions of rands’ worth of investments at and near the airport, designed to transform the area into a larger hub of economic growth and development. One of the Aerotropolis’ catalytic projects we are responsible for within our campus is the commercialisation of Western Precinct, which will involve the development of 180 000m² for a mixeduse development comprising: • Offices – 50 000m² • Retail – 21 000m² • Transport Station – 5 000m² • Hotel and Conference – 22 000m². What trends in terms of visitor numbers have you noticed in recent years?

O. R . Tambo International Airport remains by some distance the largest and busiest on the continent in terms of passengers, flights and cargo. More than 20-million passengers travel in and out of the airport annually. Growth off such a significant base presents challenges in the strained economic environment of the past few years. We have nevertheless recorded passenger growth of around 3% despite these challenges. We anticipate that the formation of the Gauteng Air Access Committee will help increase airlift and growth in passenger and cargo volumes.


INTERVIEW What structures are in place to facilitate the smooth running of the O.R. Tambo International Airport campus?

I am fortunate to have a strong leadership team that not only performs well individually but also works together. My leadership team and I meet regularly with various stakeholders and companies which include the Province of Gauteng, City of Ekurhuleni, South African Civil Aviation Authority as our Airport Licensing Regulator, ACSA Economic Regulator, National Key Point Secretariat, our airline customers, cargo freight operators, manufacturing and logistics companies, retail concessionaires, government agencies, ground handling companies and other service providers to the airport. Our industry is heavily regulated to guarantee safety of civil aviation. This necessitates that there be structured platforms to engage in critical matters pertaining governance, intermodal transportation, airport licensing, regulatory compliance, marketing, route and traffic development, master planning and alignment of short to medium-term expansion plans, provision of bulk services, maintenance of essential airport infrastructure, equipment and systems, calibration of in-

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strument landing systems, issuance of occupational certificates and emergency management, in naming but a few. What steps have been taken to improve Customs control procedures and baggage security?

The work that we are doing through the multi-disciplinary and tactical team has yielded many benefits from the seizure of drugs with a street value of millions of rand, the confiscation of undeclared currency, to the arrest of individuals for illegal activities. The collaboration between the South African Police Services, the Department of Home Affairs, State Security Agency, Ekurhuleni Metropolitan Police and several other government agencies has immensely contributed to many of our successes. The implementation of a 24-hour Joint Operations Centre (JOC) with representation from various government agencies work in synergy to keep our airport safe. Baggage security is a key focus area for us, our Security Services have a special deployment team and together with our stakeholders primarily concentrates on baggage security with the aim to improve the number of mishandled bags at our airport. Our mishandled rate is below the global trends due to the increased efforts by all stakeholders. This dedicated team is entrusted to ensure that bags that go through our facility are safe and delivered on time to our most valuable passengers. GAUTENG BUSINESS 2018/19


SPECIAL FEATURE

Aerotropolis O.R. Tambo International Airport can spark new growth.

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he biggest airport in Africa is O.R. Tambo International Airport. It is a regional hub that plays a vital role in tourism, logistics and trade. The economic impact of the airport is clear, but there are plans to further leverage the advantages that the facility brings to the region. Key to this strategy is the development of an aerotropolis, where the airport becomes a hub of economic activity in the same way that cities anchor various economic sectors that grow up around the centre. Shopping, trading and entertainment are now accepted parts of the GAUTENG BUSINESS 2018/19

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airport experience for the traveller, and these and other sectors are increasingly being expanded to the zone around the airport. As part of its drive to establish the aerotropolis, the City of Ekurhuleni hosted Airport Cities: World Conference and Exhibition in 2013. This was followed by a


SPECIAL FEATURE series of conferences and workshops that culminated in the creation of an Aerotropolis Master Plan. In June 2016, the Gauteng City Region Economic Indaba was attended by all the mayors of the region and the national Minister of Finance. Gauteng Premier David Makhura gave notice of “how we can unlock, jump-start and re-ignite a sustainable and inclusive growth trajectory for key sectors of our provincial economy”. Opportunities for the private sector were mentioned in connection with several aspects of the City Region Indaba, including the necessity for infrastructure investment. It is instructive to look at how many logistics-related developments are mentioned in relation to the various corridors for development that have been identified. The corridors and focus areas are: • Thami Mnyele: transport, BRT, M&T Development and Plumbago Industrial Park • OR Tambo Aerotropolis: creative sector, technology, research and development and logistics • Thelle Mogoerane: logistics, Carnival Junction, OR Tambo inland port, Prasa rolling stock manufacturing facility run by Gibela Rail Consortium which will deliver 600 trains valued at R51-billion. The Tambo Springs inland port and logistics gateway has been established near Katlehong as an inter-modal facility which can transfer containers from rail or road to storage facilities and ultimately to the customer. Existing freight rail lines run through the site and link it to the seaports of Durban, Cape Town and Ngqura (Port Elizabeth). The aim with this new facility is to improve efficiency. It is run by the Tambo Springs Development Company. The intention is to add to the port: • a logistics park (transportation, processing, manufacture, warehousing and distribution) • a business park with a retail element • a residential component • an agri-industrial section. A June 2017 investment conference put the spotlight on Ekurhuleni’s economy which currently is primarily driven by manufacturing, mining and agriculture. With a strategic location and identified aerotropolis corridors, investment in the following sectors is anticipated: manufacturing, aviation and aerospace, transportation and logistics. At a Manufacturing Indaba in June 2017, mayoral committee member Councillor Nkosindiphile Xhakaza told the delegates that the Aerotropolis Masterplan “is our development strategy for building Ekurhuleni as an airport city that is a gateway to Africa and the world”. He said that the aim was to place Ekurhuleni as a strategic logistics centre for the national economy, “especially in providing beneficia-

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tion, storage and transportation of industrial products to external markets”. Ekurhuleni is hoping not only to be the national centre for logistics and to boost its already impressive manufacturing capacity by building more infrastructure and freight hubs, but it intends the aerotropolis to play a role in helping to consolidate the integration of the nine town councils that went into making up the metropole.

Incentives Logistics is obviously a major part of the equation and facilities such as the Tambo Springs inland port will add capacity to the region. However, using closeness to the airport as a factor in driving down costs can also be a way of promoting manufacturing. When this factor is supported by national, provincial and local government incentives, the business proposition for investors becomes very attractive. The OR Tambo Industrial Development Zone is one of several sites allocated by the South African government to stimulate investment in targeted sectors. The OR Tambo IDZ supports the development of businesses that work in the beneficiation of precious metals and minerals sector, with a focus on light, high-margin manufacturing of South African precious and semi-precious metals. Export is encouraged. The site has specific precincts in which various sectors are given priority. GAUTENG BUSINESS 2018/19


SPECIAL FEATURE The National Department of Trade and Industry (dti) is the lead agent in the creation of Special Economic Zones (SEZs), which are part of the national Industrial Policy Action Plan (IPAP). SEZs are designed to attract investment, create jobs and boost exports. Industrial Development Zones are a type of SEZ. Several incentives are available to investors in SEZs. These include tax breaks from the South African Revenue Service (SARS), subsidised interest rates from the Industrial Development Corporation (IDC), subsidies for employees earning below a certain level and subsidies for the training of the workforce, incentives and grants from the dti, and incentives from national electricity utility Eskom. Special rules apply within an SEZ, including more liberal taxation for companies that invest in the zone (15% corporate tax applies, as opposed to 28%). Other benefits might include a building allowance, employment incentives and the fact that an SEZ is a customs-

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controlled area. Skills transfer is another stated aim behind the SEZ programme. Specific incentives relating to energy savings and reductions in environmental impact are available, both from Eskom and the dti. Within the dti’s Manufacturing Competitiveness Enhancement Programme, there is a Green Energy Efficiency Fund, all of which are designed to make investment more attractive.


ADVERTORIAL

Meet the Nedbank leadership team in Gauteng In line with our new brand proposition, our leadership team and staff are made up of money experts whose goal is to help clients ‘see money differently’ and enable them to reach their goals.

Dave Schwegmann Divisional Executive: Retail and Business Banking

Gauteng North

Brigitte Ryder Provincial General Manager

Gauteng East

Nozizwe Tshabuse Provincial General Manager

At Nedbank we believe that money has the infinite capacity for good, if you understand the true nature of it. We know that money well managed can make a real difference in people’s lives. And we always take it seriously. For us, being ‘good with money’ means looking at it differently. Finding new and better ways to grow it, invest it, leverage it and manage it for the greater benefit of

Gauteng Central

Linda Mbambo Provincial General Manager

Tshwane & North West

Mohammed (Salim) Kadoo Provincial General Manager

individuals, businesses and communities. We believe our real reason for being should be using our money expertise to do good, by inspiring you to make better choices with your money. We believe that when we apply our expertise and, more importantly, use it to help you see the effect your money can have, you will experience the difference between money being money and money making a difference.


ADVERTORIAL

Making it easier to do business with Nedbank Whole-view Business Banking™ Brigitte Ryder, Nedbank Provincial General Manager of Retail and Business Banking, Gauteng North, says her team is ready to assist clients with a comprehensive range of financial products and services.

Nedbank’s goal is to have all service offerings and departments under one roof, making it easier to deliver on its new brand proposition to ‘see money differently’. Nedbank recognises that you have a full range of banking needs that go beyond transacting and borrowing. That is why its dedicated team of specialists partner with you to give you a bird’s-eye view of your business and a different perspective on how your money needs to flow to meet your goals.

Our expertise will help clients navigate challenges and meet their goals Brigitte Ryder prides herself on building relationships and understanding the needs of clients, saying that partnership- and relationship-based banking is a key driver of how Nedbank conducts its business to ensure clients benefit from its money expertise. ‘We believe you need a financial partner who has a deeper understanding of your business – someone who offers innovative, relevant solutions and who gives you a banking experience that is hassle-free. As money experts, we are committed to doing good, so you can concentrate on what’s most important to you – running your business,’ says Ryder.

We look forward to continuing our relationships with our valued existing clients, and to offering our value proposition to new clients as well. At the core of our offering in Gauteng North is a relationship-based model with a business manager dedicated to your business as your key point of entry to the bank. We encourage you to see money differently with Wholeview Business Banking™ from Nedbank, and to take advantage of our one-stop banking service. To take your business to the next level or to obtain more information about Nedbank’s specialised service offering call Brigitte Ryder on +27 (0)11 294 7520, send an email to brigitter@nedbank.co.za or visit www.nedbank.co.za.


ADVERTORIAL

Our money experts are available to provide professional advice Nozizwe Tshabuse, Nedbank Provincial General Manager, Gauteng East, explains how Nedbank can help business owners in the region.

Business Banking are ready to assist you with professional advice, industry-specific solutions and a comprehensive range of financial products and services. At the core of Nedbank’s offering in the province is a relationship-based model with a business manager dedicated to your business as the key point of entry into the bank.

There is good news for Gauteng business owners and entrepreneurs seeking a unique banking experience: Nedbank Business Banking has business managers located across the province specialising in commercial industries as well as the agricultural sector. Nedbank also offers innovative and relevant solutions to franchisees, incorporating customised lending solutions, transactional banking solutions and value-added services. Our tailored solutions take franchisees’ current and future goals into consideration, and aim to assist franchises in attaining the competitive edge needed to succeed. A dedicated business manager gives franchise owners the opportunity to have an experienced financial expert as a partner in your business. Our money experts at Nedbank

‘We encourage you to see money differently with Whole-view Business Banking™,’ explains Tshabuse. What does this mean for the client? It is an additional benefit of banking with Nedbank Business Banking and means that your business and your personal financial needs are managed in one place. ‘Because business owners and their businesses are very often financially dependent on each other, our client service teams now also offer individual banking solutions to you and your staff because we already know and understand your needs,’ says Tshabuse. With this in mind, Nedbank has seamless offerings for you, your employees and your household. Through Nedbank’s workplace banking offering, communities, including individual and business clients, are provided with access to products and services through a dedicated banker. Should you be interested in taking your business to the next level and improving staff engagement, please call Nozizwe Tshabuse on +27 (0)11 458 4405, send an email to nozizwet@nedbank.co.za or visit www.nedbank.co.za.


ADVERTORIAL

Expertise in small business aimed at stimulating growth Linda Mbambo, Nedbank Provincial General Manager, Gauteng Central, explains how Nedbank is committed to partnering with businesses for growth. which provides key insights and trends on smallbusiness behaviour and the challenges that small businesses face; and the new Essential Guide for Small-business Owners, which helps small businesses understand and handle the complexities of starting and running a business. In addition, business registration services are available in branch through SwiftReg or by applying online through CIPC.

‘Small businesses are the lifeblood of our economy. Nedbank has, over the years, instituted various interventions aimed at giving support to the small-business sector. Over and above our small-business services solutions, we provide small-business owners with support that goes beyond banking, freeing up their time to focus on running their businesses,’ says Mbambo. Nedbank has built a solid reputation as a bank for small businesses through initiatives such as Vote Small Business, which calls on everyone to make a conscious decision to support small businesses with their hearts, feet and wallets; the SimplyBiz.co.za platform where business owners can network and engage with other business owners, ask questions and spark discussions; the Small Business Index™

At Nedbank Business Banking we believe that you need a financial partner who understands your aspirations, offers relevant solutions and gives you a banking experience that is hassle-free. We are committed to doing good, so you can concentrate on what’s most important to you – running your business. Nedbank is making it easier to deliver on our new brand proposition – ‘see money differently’ – through our Whole-view Business Banking™ which provides us with a bird’s-eye view of your business and therefore enables us to offer solutions and services aimed at giving your business the edge in challenging economic times. Speak to the money experts at Nedbank Business Banking if you are interested in taking your business to the next level or want to find out more about our specialised service offering. Contact Linda Mbambo on +27 (0)11 671 7149, email the Business Banking team at business@nedbank.co.za or visit www.nedbank.co.za.


ADVERTORIAL

New brand proposition encourages clients to ‘see money differently’ Mohammed (Salim) Kadoo, Nedbank Provincial General Manager, Tshwane and North West, explains how the new brand values build on the expertise of the bank to benefit clients.

advertising and communication campaigns, as well as its products, services and channels. All these changes are designed to inspire clients and society to see money differently and partner with the bank to achieve their goals. Our new brand proposition is not just a marketing initiative, but a reflection of the continuing business evolution at Nedbank. As a bank we want to ensure that our clients experience our brand in a way that is aligned with our brand promise.

Nedbank officially launched its new brand repositioning during the first day of the world’s largest design festival – the 2017 Design Indaba on 1 March. The bank’s new tagline challenges clients and society to ‘see money differently’. The new brand positioning is built on Nedbank’s purpose: to use financial expertise to enable individuals, families, businesses and society to do good. Our new brand proposition was born after almost two years of research and client engagement which revealed that people want to work with purpose-driven institutions they can trust. They want a professional financial partner that balances expertise with a genuine commitment to do good. The public will see a number of changes in the next few months as the bank evolves its corporate identity,

It is common knowledge that we live in a volatile socioeconomic environment, so it is even more important for us to intensify our commitment to improve on our skill in enabling clients to navigate challenges and meet their goals. One of the solutions from Nedbank is Whole-view Business Banking™, which provides a bird’s-eye view of clients’ businesses, and a different perspective on how their money needs to flow to meet their needs. With our expertise and insights we can help our clients to see money as we do, so that together we can cocreate unique solutions that can unlock the possibilities that will take their business to the next level. If you would like to explore further how Business Banking can help take your business to the next level, and for more information about Nedbank Retail and Business Banking Services, call Mohammed (Salim) Kadoo on +27 (0)12 436 7740 or send an email to mohammedk@nedbank.co.za.


ADVERTORIAL

Trust us to protect your business against everyday risk Stella Tedeschi, Regional Manager of Broker Channels, Gauteng, explains why Nedbank Insurance is not a one-size-fits-all business.

informed decisions – making sure that they have the appropriate cover and that the business or individual is not under- or over-insured. Advisors are equipped with a wealth of invaluable sector-specific experience and knowledge ensuring that cover is adequate for clients’ exposure to risk. Furthermore, insurance mitigates loss, secures financial stability, and promotes trade and commerce activities that play a role in economic growth and development. Therefore, insurance plays a crucial role in the sustainable growth of an economy. Nedbank Insurance provides a comprehensive offering of short-term products with blue-chip insurers. Our broad offering includes professional analysis and advice; appropriate product design and implementation, for example BizzInsure, our white-label product; ongoing portfolio management together with claims management and administration; and specialised cover, including goods in transit, public liability, personal accident and various motor insurance options.

Nedbank Insurance has evolved into a business that provides integrated insurance to Nedbank’s individual and business clients. Our purpose is to provide certainty to our clients at a time when it matters most to them and ensure that we can be relied on to support them during challenging times in their business or personal lives. Our Should you be interested in expert advice for the type offering comprises comprehensive shortof business cover that is exactly right for your business term insurance solutions, life insurance needs, look no further. Nedbank has a team of specialists solutions and investments. In recent times, it has become evident that the benefits of having a reputable insurance partner outweighs the disadvantages of not having appropriate cover. Our team of experts provides valuable advice that enables clients to make

ready to provide you with information necessary to allow you to make an informed decision. For more information call Stella Tedeschi on +27 (0)12 436 7659, send an email to stellat@nedbankinsurance.co.za or visit www.nedbank.co.za.


ADVERTORIAL

Nedbank Business Bundle is a game changer with savings and personalised services for small enterprises The new Business Bundle from Nedbank is a game changer for small enterprises, offering the best value for money when set against rivals, with exclusive benefits and personalised services for entrepreneurs.

business Owners, available at www.nedbank.co.za. Through initiatives such as training and enterprise development, Nedbank invests heavily in small business, growing the economy and creating jobs.

With the country’s challenging economic environment, the Business Bundle not only offers you personalised banking services, but also critical tools to save – with up to 40% savings on monthly banking fees, contributing directly to the bottom line at a time when every cent counts. In line with Nedbank’s new brand proposition to ‘see money differently’, the Business Bundle resonates with the bank’s commitment to using expertise for good in promoting small enterprises. To ensure that business owners are better equipped in understanding and handling the complexities of starting and running a business, Nedbank provides practical tips for entrepreneurs through the Essential Guide for Small-

‘Our efforts in the small-business sector are underpinned by our Banking and Beyond philosophy that provides non-financial support such as Vote Small Business, which encourages consumers to keep small businesses in their communities top of mind when making their purchases. Banking and Beyond also includes other flagship initiatives, such as the small-business-driven SimplyBiz website (www.simplybiz.co.za), the Essential Guide for Smallbusiness Owners, CIPC registration and the Money Manager Accounting Tool,’ says Alan Shannon, head of Relationship Banking Sales. Shannon advises entrepreneurs to make a concerted effort to develop their financial acumen by making use of resources such as Nedbank’s Essential Guide for Small-business Owners and the SimplyBiz online portal. The Business Bundle is another way Nedbank ensures that clients ‘see money differently’ and use money as a tool to take their businesses to the next level. Call 0860 116 400, send an email to smallbusinessservices@nedbank.co.za or visit www.nedbank.co.za/business.

Nedbank Ltd Reg No 1951/000009/06 Nedbank Ltd Reg No 1951/000009/06. Authorised financial Authorised financial and registered credit provider (NCRCP16). servicesservices and registered credit provider (NCRCP16).


INDABA HOTEL, SPA & CONFERENCE CENTRE YOUR AFRICAN DESTINATION IN JOHANNESBURG

Just north of the fast-paced business world of Sandton in the upmarket residential suburb of Fourways, lies the 258-bedroom Indaba Hotel, Spa & Conference Centre. It is a compelling blend of business-like convenience and efficiency, with a relaxed and warm country atmosphere. Coupled with easy and convenient access to all main highways, OR Tambo International Airport and a mere 15km from Lanseria International Airport, the hotel features an impressive selection of some 24 multi-purpose conference venues that can accommodate up to 2 000 delegates in total with banqueting facilities for up to 500 guests. With two restaurants on property, there is no need to leave the comfort of the hotel to enjoy world-class cuisine. Our 300-seater Chief’s Boma Restaurant caters for all tasted with over 120 African-inspired dished ranging from North African Moroccan cuisine to Koeksisters and Melktert from the Cape – and with a “Shisa Nyama” grill boasting a variety of game meats sizzled to your specification, everyone is sure to find their favourite. Well known for the lavish full South African Breakfast Buffet, the Epsom Terrace Restaurant also boasts an evening Bistro Menu which will delight even the most demanding gourmand’s exacting standards. A traditional Carvery Lunch with live music can be enjoyed every Sunday with limited outdoor seating available for those who prefer dining al fresco – after all, Jo’burg really has the best weather in South Africa.

INDABA HOTEL, SPA & CONFERENCE CENTRE C/O WILLIAM NICOL DRIVE & PIETER WENNING ROAD, FOURWAYS Phone: +27 11 840 6600 | Email: indaba@indabahotel.co.za | Website: www.indabahotel.co.za


Take a wander through the 17 hectares of lush bushveld gardens and you will find the Mowana Spa - a wellness sanctuary which will revive your senses, rejuvenate your body and soothe your soul. The Mowana Spa, which takes its name from the majestic Baobab Tree of African Lore and Legend, offers wellness journeys based on the recognised healing energy of Tribal Massaging. Signature Pamper Journeys include the decadent Mowana Full Day African Rejuvenation Spa pamper which is an indulgent spa experience including breakfast, lunch, complimentary beverages and six revitalizing treatments; the romantic Mowana African Skies Night Spa pamper with includes dinner, complimentary beverages and three relaxing treatments; and the indulgent Mowana African Escape Spa & Stay Pamper Journey for the ultimate decadent relaxation. Our commitment to service excellence and staff empowerment through training and mentoring will ensure that your needs are met and your expectations exceeded as you enjoy a day of pampering at Mowana Spa. The Indaba Hotel and Mowana Spa are also PROUDLY GREEN ensuring responsible tourism and minimising carbon footprint through extensive recycling of waste products, water-wise gardening, greening conference initiatives, better material choices, minimising power usage and buying local - after all, a better place to live is a better place to visit. The Indaba Hotel is sure to meet all your business and leisure requirements. We look forward to welcoming you to our oasis in the City.

15 MINUTES FROM SANDTON ... A MILLION MILES AWAY


KEY SECTORS Overviews of the main economic sectors of Gauteng. Agriculture 36 Mining 38 Oil and gas

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Engineering 48 Manufacturing 50 Automotive 56 Food and beverages

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Tourism 58 Education and training

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Information and communications technology

64

Banking and financial services

66

Development finance and SMME support

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OVERVIEW

Agriculture Urban farming is in the spotlight.

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auteng is primarily an urban province, but the agricultural sector plays a very important role in the economy. The Provincial Government of Gauteng has set up Action Labs to focus on agriculture and agri-processing with a focus on land tenure issues and improving food security. These initiatives will also play a role in boosting township economies if food producers can be linked to the value chain. The Urban Agriculture Initiative of the Chamber of Mines was launched in 2017. The roofs of buildings are being put to use as agricultural land, hosting various crops cultivated by aquaponics and hydroponics. A pilot project on the top of the Chamber’s building has produced about 15kg of basil for Nhlanhla Mpati (above). First National Bank’s canteen is supplied with vegetables by its own rooftop farm. The Johannesburg Inner City Partnership is driving the initiative. The Fresh Produce Market in Johannesburg is South Africa’s biggest market. The region’s other two metropolitan areas, Tshwane and Ekurhuleni, also have large markets to cater for the region’s large population. The Springs Fresh Produce Market accounts for 3% of South African market share which it intends increasing as it expands its facilities. 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). The province is home to some of South Africa’s largest agricultural companies, including AFGRI, a listed agriculture services and foods GAUTENG BUSINESS 2018/19

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SECTOR HIGHLIGHTS • The provincial government wants to boost food production and agri-processing. • Basil is growing on the top of the Chamber of Mines building.

company, which specialises in animal feed production. Africa’s largest feedlot for cattle is located in Heidelberg: Karan Beef’s facility can accommodate 120 000 cattle. The feedmill processes 1 400 tons per day and the associated abattoir in Balfour in neighbouring Mpumalanga sometimes deals with 1 800 head of cattle per day. The 2 330ha Karan estate also includes a game farm and an eco-development. T he K anhym Agrimill in Vereeniging is one of three in the company’s portfolio, which collectively processes 250 000 tons of animal feed annually. Kanhym


OVERVIEW 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. Fruit, dairy products, eggs, maize and grain are also produced in large volumes within the province. As the most populous region of South Africa, Gauteng consumes large quantities of food. And South Africans eat more chickens than anything else. Poultry farm and production facilities abound in Gauteng. Astral Foods, RCL Foods and Daybreak Farms are among the biggest companies in the province. The poultry industry in South Africa has been in the spotlight with a change in the arrangements relating to import duties from the US. Many agriculture-focused research institutions are based in the province. The Agricultural Research Council’s (ARC) national research facilities are in Pretoria, and include the Roodeplaat Vegetable and Ornamental Plant Institute and the Onderstepoort Veterinary Institute. In addition, the Forestry and Agricultural Biotechnology Institute (FABI) is located at the University of Pretoria.

Policy support The provincial government is supporting 178 small-holder farmers through farmer support and development initiatives. An information technology programme is to be implemented. This will focus on crop and livestock monitoring and is intended to increase productivity. The Gauteng City Region will roll out the deployment of information technology in the farming community. This will present opportunities for farmers to monitor their crops/livestock and increase productivity. The R50-million programme encompasses:

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 Johannesburg Development Agency: www.jda.org.za National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za South African Crocodile Farming Association: www.sacfa.co.za South African Poultry Association: www.sapoultry.co.za

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• • •

Gauteng Agriculture Information System Farm Business Analysis (DNA) Gauteng Agriculture Economy Analysis (including market monitoring) Smar t Agriculture Feasibility.

A p ro v i n ce - w i d e Ag ro Processing Summit was held to bring together small-holder and commercial farmers, food retail companies, finance institutions and researchers. The summit was organised by the Gauteng Department of Economic Development, Environment, Agriculture and Rural Development. Woolworths’ Enterprise and Supplier Development Programme gave Sophiatown-born Jimmy Botha the chance to become a successful farmer of baby spinach, rocket and basil. With advice from a supportive neighbour farmer (who was already supplying to Woolworths), Botha grew his farming business to the point where he now has 42 full-time employees and 30 seasonal workers. Massmart, the retail group now owned by US giant Walmart, invested R15-million in the five years to 2017 to create opportunities in its food chain for emerging farmers. Techno-Serve, a non-governmental organisation, oversees the programme. The Massmart Supplier Development Fund has enabled small farmers to have the security of a confirmed buyer for their products and many of them have grown their businesses substantially. GAUTENG BUSINESS 2018/19


OVERVIEW

Mining Government wants broader participation in the mining sector.

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he national government’s Phakisa programme is to be applied to mining. Intended to fast-track solutions to development problems, an Operation Mining Phakisa Lab has been set up to create concrete plans. Similarly, the Provincial Government of Gauteng has initiated Action Labs in the mining sector. These are meetings where private and public participants in the mining sector and its value chain discuss possible improvements, partnerships and innovations. One of the Action Labs focus areas is to strengthen the export of mining services and mining equipment to SADC countries, including the Copperbelt. The creation and support of mining-sector SMMEs is another important component of the plan to create a broader base for mining and mineral beneficiation. AngloGold Ashanti has reduced its South African holdings to a tailings plant and one mine (Mponeng in Gauteng) but remains a major gold producer with assets in five other African countries, South America and Australia. In early 2018, CEO Srinivasan Venkatakrishnan resigned to join Vedanta Resources, which has recently purchased a large zinc operation in South Africa. Gold Fields is engaged in a long-term expansion project at its mechanised South Deep gold mine, which has a life-of-mine to the year 2094. Gold Fields in 2013 spun off some of its older mines to a new company called Sibanye Gold. That company has gone on to become a diversified miner called Sibanye Stillwater, with a strong focus on platinum. The gold sector has shed several thousand jobs in the last five years. Part of the reason for Gold Fields wanting to unbundle was political unGAUTENG BUSINESS 2018/19

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SECTOR HIGHLIGHTS Exports to SADC countries are in the spotlight. • P etr a is e xpanding diamond production. certainty. A proposed new mining charter (Mining Charter 3) did not go down well with mining companies, and the new President of South Africa, Cyril Ramaphosa, has appointed a new mining minister to come up with a better arrangement. The level of black ownership and whether that percentage must be “topped up” every time a black shareholder sells, are just two of the contentious issues. A court ruling in favour of “onceempowered, always-empowered” will probably not be the end of the debate. The Chamber of Mines says that the value of BBBEE deals since the year 2000 is R205-billion.


OVERVIEW The mining industry’s employer body is the Chamber of Mines. The Chamber’s address in Hollard Street, Marshalltown, Johannesburg, reflects the fact that the city of Johannesburg was founded on gold. All of the bodies that oversee the South African mining industry are located in Gauteng. The mining industry itself is looking at new ways of doing business. Guided by the Zambezi Protocol, the Chamber of Mines wants mining to be more positive and constructive, working better with the communities in which it operates. New Chamber CEO Mxolisi Mgojo is simultaneously leading his company, Exxaro Resources, on a programme to make mining sustainable through measures such as water sharing with local communities and finding ways to help communities gain access to energy. A 400km gold reef stretching across most of Gauteng and some of the neighbouring provinces was for many years the backbone of South Africa’s mining industry. Gold production has generally been in decline for some years, with older mines such as AngloGold’s TauTau either closing unprofitable shafts or being put on care and maintenance (Kopanang). Global demand for gold has see-sawed in recent years. Cullinan, east of Pretoria, is the site of one of the greatest finds in diamond-mining history. The eponymous diamond was cut into several smaller diamonds, including the 530-carat Great Star of Africa. Today, Petra Diamonds continues to mine Cullinan as one of its four South African projects. Petra Diamond’s Cullinan mine has an orebody that contains a diamond resource of 194 Mcts which is why Petra is expanding with a goal of annual production of 2.2 Mcts by 2019. A R1.6-billion processing plant is being built at Cullinan, with a throughput capacity of 6 Mtpa. Research Gauteng is home to most of the research and training bodies associated with mining. AECI, the explosives and chemicals com-

ONLINE RESOURCES Chamber of Mines: www.chamberofmines.org.za Council for Geoscience: www.geoscience.org.za Mining Qualifications Authority: www.mqa.org.za Mintek: www.mintek.co.za National Department of Mineral Resources: www.dmr.gov.za Southern African Institute of Mining and Metallurgy: www.saimm.co.za South African Minerals Processing Cluster: www.saceec.com/sampec

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pany which has been involved in mining in South Africa almost as long as there has been a mining industry, supports the Virtual Reality Mine Design Centre located at the University of Pretoria. Mintek is an autonomous body based in Randburg which receives about 30% of its budget from the Department of Mineral Resources. The balance comes from joint ventures with privatesector partners, or is earned in research and development income, the sale of services or products and from technology licensing agreements. An example of collaboration is Project AuTEK which has found a way of getting gold catalysts to play a role in improving fuel-cell efficiency. Mintek teamed up with the Department of Science and Technology and AngloGold Ashanti. The University of Witwatersrand School of Mining (shown on the opposite page) has two houses that are partfunded by mining houses and equipment suppliers including Xstrata, Lonmin, De Beers, Anglo Platinum and Sandvik. Pretoria Universit y has a Depar tment of Mining Engineering, the University of South Africa offers three national diplomas in minerelated fields, the University of Johannesburg has minesurveying courses and the Vaal and Tshwane universities of technology have engineering faculties.

GAUTENG BUSINESS 2018/19


PROFILE

Modular plants promote efficiency Flexibility is a key advantage offered by modular processing plants, as company founder and Managing Director Mpho Mothoa explains. What is the main activity of Ingwenya Mineral Processing?

Our core business is to design, build, operate and maintain mineral processing plants.

Mpho Mothoa

Why are modular processing plants popular in the coal industry today?

Modular plants have become cost effective. They can be built in short lead times and can be easily relocated to another area once the coal is depleted or for any other reason. Modular plants are flexible, they can be designed to process small or large capacity of coal and different types of coal for different markets. Modular plants are also ideally suited to treat Witbank coal reserves which are generally widespread and situated in small pockets. How is Ingwenya Mineral Processing able to create modular plants in a cost-effective manner?

BIOGRAPHY Mpho Mothoa has 20 years of plant experience. He has a BTech and an MBA from the Tshwane University of Technology and diplomas from Wits and Unisa in mineral economics and management. Trained as a metallurgist at Kumba Resources, Mpho has also been a plant superintendent at Xstrata’s (now Glencore) Atcom colliery and worked in commissioning and operations at several processing plants, including Grootegeluk and Somkhele coal mines and the Kimberley mines of the De Beers Group. GAUTENG BUSINESS 2018/19

At IMP we have our own in-house 4 000m2 engineering workshop (BOMAX) situated in Hendrina, where we fabricate our own steel structures and build easy-to-operate, tailor-made modular plants with very short lead times and cost effectively. Our designs have been simplified and made straightforward which reduces construction costs. Strategic partnership with some of the original equipment manufacturers (OEMs) also plays a role in terms of acquiring expertise in leading technology to ensure efficiency from the design phase. What are your main growth objectives?

IMP’s business strategy for expansion is: to add at least two new operations annually to our existing operations • to build two new modular plants annually • to work towards enlarging our footprint in other African countries like Botswana, where we have been doing some work. •

What consulting services do you offer? • • • • • • •

Design and build of coal processing plants Operate mineral processing plants Feasibility and due-diligence studies Engineering design and fabrication Maintenance of processing plants Trouble-shooting and general metallurgical consulting Engineering consulting.

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A contractor of choice to the coal mining industry in the cost-effective supply of coal processing plants, operating and maintaining them to a standard that meets the client’s throughput, quality and safety requirements.

Operations and Maintenance Partner of Choice

Specialising in: • Operations of Processing facilities • Design & Build of Coal Processing Plants • Feasibility & Due Diligence Reports • Engineering Design and Fabrication

Ingwenya Mineral Processing (IMP) Ltd is a South African owned company with 52% black ownership based in Emalahleni, Mpumalanga Province. Since 2006 IMP has designed, built and commissioned successful coal processing plants. IMP is expanding its footprint beyond South African borders with opera ons in Botswana.

IMP is open to various models for operation of coal processing plants: • BOOM (Build, Own, Operate & Maintain) • Moderniza on of Plants • BOOT (Build, Own, Operate, Maintain • Consulta ons: Due diligence, Pre-feasibility and Bankable & Transfer) feasibility studies, metallurgical troubleshoo ng. IMP is equipped with an in-house 4000m2 workshop facility to build tailormade, easy to operate, modular plants with short lead times.

• Fabrication

• Drilling

• Sandblasting

• Boring

• Heat Treatment

• Tiling

• Rubberlining

• Milling www.ingwenyamp.co.za

Republic of South Africa, Emalahleni (Witbank), +27 13 656 2440 / 4758, info@ingwenyamp.co.za


INTERVIEW

Adding value in property, construction and mining Group Chairman Ndavhe Mareda traces the history of the diversified and 100% black-owned Makole Group and outlines plans for expansion. In what regions do you operate? The Makole Group primarily operates in the Gauteng region. It has property development projects throughout Gauteng and a coal mine east of Pretoria.

Ndavhe Mareda

How and when did the business start? The business started in 2004 as a construction company servicing the private residential home builder market. It grew into a construction company able to execute projects for thousands of units. The most recent addition is the mining component which consists of a colliery and a number of prospecting projects. What is your focus as a business? The focus of the Makole Group for the construction business is to become an established property development and infrastructure construction company. The focus for the mining business is to develop export opportunities for coal and conclude exploration projects for coal and other commodities and bring them into operation in the short-to-medium term. What services do you provide?

BIOGRAPHY Ndavhe Mareda is the founding member and chairman of Makole Group, the parent company of Makole Property Development, MDP Consulting and Black Royalty Minerals, owners of the Chilwavhusiku Colliery based in Bronkhorstspruit. His role is to grow the group by identifying and executing expansion and diversification strategies by developing and acquiring growth targets, managing investor and stakeholder relations and providing overall strategic leadership. GAUTENG BUSINESS 2018/19

Property development, infrastructure construction, construction consulting and mining. Please name and describe some of your operations in Gauteng. The Makole Group is a diversified South African 100% black-owned infrastructure, property development and mining group. The three operating units are: • Makole Property Developments: experience in infrastructure planning, designs, project management and community participation • MDP Consulting: specialist construction skills available include project managers, engineering professionals, town and regional planners, quantity surveyors and environmental specialists • Black Royalty Minerals: operates the Chilwavhusiku Colliery located at Bronkhorstspruit, and developing several prospecting rights. What are the strengths of the Makole Group? We have more than a decade of experience in the property development and infrastructure space. We are a 100% black-owned group who creates value adding products to the South African economy in the construction and mining industry. We are also the first 100% black-owned mining group in South Africa.

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Black Royalty Minerals is a 100% black-owned mining company that has solidified its position as a reputable South African coal mining business. Black Royalty Minerals operates the Chilwavhusiku Colliery in Bronkhorstspruit. Black Royalty Minerals continues to cultivate the drive and vision of contributing positively to the communities and local economy where they operate by facilitating job

creation and sourcing from local companies, thereby helping build the economy of South Africa. The vision of Black Royalty Minerals is to not only establish itself as a coal mining business, but to become a diversified mineral resources company, to maintain and grow its local operations as well as establish itself in export markets.

+27 11Â 023 9380 || blackroyalty.co.za || info@blackroyalty.co.za


OVERVIEW

Oil and gas Several kinds of gas are producing power in Gauteng.

SECTOR HIGHLIGHTS Transnet Pipelines runs a sophisticated pipeline network.

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auteng is the biggest consumer of energy in South Africa. Its mass-production factories, large commercial office blocks and steel fabrication plants consume huge quantities of electricity, oil and gas. Transnet Pipelines has completed a sophisticated new multi-product pipeline (NMPP) between the coast and Gauteng which is bringing a range of products to the manufacturing heartland of South Africa. The company operates a 3 800km network of underground, high-pressure petroleum and gas pipelines throughout the eastern parts of South Africa. A new addition to South Africa’s pipeline network is a pipe to get natural gas from Mozambique to Gauteng. SacOil’s R90-billion project aims to deliver gas to Johannesburg and the nearby towns in 2020. Egoli Gas has a pipeline network that extends over 1 200km in and around Johannesburg and the company has 7 500 domestic, industrial and commercial customers. Vopak completed a new storage terminal in Lesedi on the East Rand in 2017 to receive product from the NMPP. The company that owns Egoli Gas, Reatile, has a 30% stake in Vopak. The major economic sectors using gas are the metals sector and the chemical, pulp and paper sector. Brick and glass manufacturers are also big consumers. The other big factor driving growth in the gas sector is national policy. A national Gas Utilisation Master Plan (GUMP) is being developed. The Liquefied Natural Gas Independent Power Producer Procurement Programme (LNG IPPPP) is part of the broader pro-

ONLINE RESOURCES Independent Power Producers Programme: www.ipp-projects.co.za National Energy Regulator of South Africa: www.nersa.org.za South African National Energy Association: www.sanea.org.za South African Oil & Gas Alliance: www.saoga.org.za South African Petroleum Industry Association: www.sapia.co.za

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gramme of the Department of Energy which encourages private investment in renewable energy, namely the Renewable Energy Independent Power Producer Pro curem ent Pro gr amm e (REIPPPP). The total allocated to gas-to-power in the national power plan is 3 726MW, of which 3 000MW is for LNG. A landfill site at Robinson Deep in Johannesburg has started generating 3MW of gas. This is the first of five renewable energy projects that Energy Systems is going to do in Johannesburg and is the first landfill gas generation project to fall under the REIPPPP. In 2016 the Department of Trade and Industry (dti) established a Gas Industrialisation Unit (GIU) which will make plans to exploit the huge fields of natural gas off the coasts of Mozambique and Angola and boost industrialisation in South Africa. The regulator and promoter of oil and gas exploration in South Africa, Petroleum Agency South Africa, has been awarding coalbed-methane-gas and naturalgas rights in recent months in the provinces on Gauteng’s border, Free State and KwaZulu-Natal. The regulator also controls offshore exploration rights.


AF

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PETROLEUM AGENCY SA

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Petroleum Agency SA encourages investment in the oil and gas sector by assessing South Africa's oil and gas resources, and presenting these opportunities for exploration to oil and gas exploration and production companies. Compliance with all applicable legislation in place to protect the environment is very important, and rights cannot be granted without an approved Environmental Management Plan. Explorers must prove financial and technical ability to meet their commitments in safe-guarding and rehabilitation of the environment. Preparation of Environmental Management Plans requires public consultation and a clear demonstration that valid concerns will be addressed. Petroleum Agency SA, based in Bellville, Cape Town, is responsible for the promotion and regulation of exploration and exploitation of oil and gas (petroleum) resources.

Contact us to find out about: - Onshore or offshore exploration opportunities - Permits and rights - Availability of geotechnical data.

+27 21 938 3500 plu@petroleumagencysa.com www.petroleumagencysa.com


OVERVIEW

Engineering Tens of billions are to be spent on Gauteng infrastructure.

SECTOR HIGHLIGHTS Many engineering companies are changing their business models.

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pending on infrastructure in Gauteng Province represents a major opportunity for companies in the engineering sector. The Provincial Government of Gauteng spent R30-billion on infrastructure between 2013 and 2016. A further R46-billion has been pledged for the years to 2019. In addition, Gauteng municipalities will spend R94-billion over the next five years using their city budgets. Some 31 major housing developments have been approved for the various development corridors around Johannesburg. These projects will attract public and private money. A study carried out by KMPG for the province found that spending on infrastructure resulted in additional economic activity worth R26billion and created 92 000 direct jobs. A major provincial infrastructure project was the technically demanding Gauteng Freeway Improvement Project, which involved many companies and several joint ventures. GOBA Consulting Engineers and Project Managers supervised the design and construction of the project, as it did the even bigger Vaal River Eastern Subsystem Augmentation Project (VRESAP). This water project entailed redirecting water flows from one system to another to feed the petrochemical and mining industries of Mpumalanga Province. Gauteng’s history as a mining province ensured that engineering and mining grew hand in hand over the decades. In its early days, the University of the Witwatersrand was called the South African School of Mines and Technology. The Wits Mining Institute, which falls under the Faculty of Engineering and the Built Environment, has recently introduced the Sibanye-Stillwater Digital Mining Laboratory (DigiMine) at the Chamber of Mines building. This enables research and development to take place in a safe and simulated environment. The University of Pretoria’s Graduate School of Technology Management (GSTM) offers a range of degrees and short courses in engineering-related fields, including a Master’s in Engineering Management. Whereas some engineering companies have developed into

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conglomerates with several divisions and international operations, others have focussed on niche areas such as construction, electrical engineering, or, as in the case of Fluids Media Engineering, fluid piping, storage and distribution.

Restructuring Several engineering groups have been restructuring in recent years. Murray & Roberts, a giant and diverse company, disposed of Murray & Roberts Infrastructure and Building Platform (MRIB) in 2016 to focus on procuremen.t, project engineering and construction in certain resource sectors. Firefly Investments, the consortium that bought MRIB, is led by Southern Palace, which includes among its shareholders some MRIB managers and the Government Employees Pension Fund (GEPF). The transaction goes a long way to creating more diversity in the ownership in the construction and engineering sector. Genrec, a large steel engineering and fabrication business company that started


OVERVIEW out on the gold fields of early Johannesburg, was another Murray & Roberts company to be sold to the Southern Palace Group. It has a large plant outside Johannesburg at Wadeville and is involved in South Africa’s two biggest power station construction projects at Medupi and Kusile. Group Five also sold part of its business (Group Five Pipe) to a blackowned entity in 2017 but the most significant change came in the group’s structure. A stand-alone construction division for South Africa (where the company has more than 7 400 employees) is part of a drive by the company to focus on smaller infrastructure projects and to dispose of manufacturing assets. Like most large South African firms in the sector, Group Five has significant investments offshore. Transnet Engineering (TE) is in the process of changing its focus from only providing engineering services to other companies in the Transnet group to becoming a multi-faceted business. The company is exploring

opportunities in Africa to provide maintenance, repair and overhaul services (MRO). As an original equipment manufacturer (OEM) with the ability to manufacture locomotives, rail wagons and coaches, TE is opening up a wide range of markets not only in South Africa but in Africa and the rest of the world. The TransAfrica Locomotive is the first locally designed locomotive produced by TE in its Koedoespoort factory. There are seven business units located at Koedoespoort, including a foundry.

ONLINE RESOURCES Consulting Engineers South Africa: www.cesa.co.za Engineering Council of South Africa: www.ecsa.co.za Gauteng Department of Infrastructure Development: www.gauteng.gov.za Graduate School of Technology Management: www.up.ac.za/gstm Transnet Engineering: www.transnet.net

contact details Registered Name Corpclo 2369 cc T/A Fluids Media Engineering (FM Engineering)

FME, mechanicalPhysical contractors Address and Unit No.3A, No.4 Hennie Steyn Street engineers, specialist industrial (Head office) Rosslyn, Pretoria, 0200 piping systems, steelwork and Republic of South Africa general mechanical works. 1 Military road (East London office) Wood brook, East London, 5201

We add value through engineering solutions Republic of South Africa Postal Address, Suite 132 Private Bag x 121 Halfway House, 1685

Telephone +27 (0)12 751 7640 CONTACT DETAILS: Facsimile 086 538 5356 Mobile +27 Tel: +27 11 (0)72 701 057 5057 3932 Email Fax: admin@fluidsmedia.co.za 086 718 2325 Website www.fluidsmedia.co.za Mobile: +27 72 701 3932 Email: vuyo@fmeng.co.za Website: www.fluidsmedia.co.za

BBBEE LEVEL 1, CIDB: 6ME PE


OVERVIEW

Manufacturing New plants are powering Gauteng’s manufacturing sector.

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major railway rolling stock programme is boosting manufacturing in Gauteng. The Trans-Africa locomotive is the first to be designed and manufactured in Africa. It is being assembled at Transnet’s Koedoespoort plant near Pretoria. The Gibela Rail Transport Consortium, which has a contract to build 600 new trains for the South African metropolitan rail network, will start operating its new factory and training centre at Dunnottar in Ekurhuleni in 2018. Each of the X’Trapolis MEGA trains (as shown above) will be built from 145 tons of South African steel. Manufacturing contributes 14% to Gauteng’s real economy output and provides 40% of South Africa’s manufacturing overall. More than 600 000 people are employed in the sector, with metal products, food and beverages and chemicals being the biggest employers. GAUTENG BUSINESS 2018/19

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SECTOR INSIGHTS Big orders for rail locomotives and carriages are rolling in. • Sandvik boosted its capacity in 2017. Manufacturing related to the mining industry, historically the lynchpin of the Gauteng economy, is still very important. Sandvik Mining & Rock Technology opened a new production facility in Ekurhuleni in 2017.


OVERVIEW

Ekurhuleni Metropolitan Municipality has the greatest concentration of manufacturing enterprises, especially between Wadeville and Alrode, south-west of Alberton. Germiston is the country’s biggest rail junction and Transnet Engineering has invested hundreds of millions of rands in new equipment at its facility there. Nigel and Boksburg host Union Carriage and Wagon, which is owned by Commuter Transport Engineering, DCD Rail and Lennings Rail Services, a division of Aveng. New technology has been embraced by some innovative manufacturers. Desert Wolf’s Skunk Riot Control Chopper is an unmanned light aerial vehicle (UAV) that has proved popular in the world market. Desert Wolf operates out of Pretoria. Packaging company Nampak has metals (cans), plastic, paper and glass operations at various locations including Industria West, Boksburg and Olifantsfontein. The glass plant in Germiston has nearly doubled its output (to 40 000 bottles per year) to cater for increased wine exports. The country’s biggest glass producer, Consol Glass, has facilities in Clayville, Wadeville and Nigel. Household products manufacturer Unilever represents an

example of the lighter industrial capacity of the East Rand. Kellogg’s, Kimberly-Clark South Africa and Procter & Gamble all have significant manufacturing capacity in the area. Corrugated paper manufacturer Corruseal has purchased the Enstra Mill in Springs from Sappi, giving it greater control of production. The southern portion of Gauteng around Vanderbijlpark and Vereeniging is synonymous with steel production. Flat iron is made at the large plants of ArcelorMittal. Scaw Metals’ chain-making factory in Vereeniging (McKinnon Chain) has invested R110-million in ex-

LEADING THE WAY IN RESPONSIBLE PRODUCTION of over 40 years of serving the South African market with quality approved drainage products. This is a commitment that Marley Pipe Systems will continue to honour. We welcomed this new regulation within our industry and have been trading heavy metal free for over 10 years, thus guaranteeing that products manufactured at Marley sites are heavy metal free.

At Marley Pipe Systems, we have always been ahead of the curve in adopting innovative manufacturing methods that meet customer requirements and adhere to strict industry standards for quality plastic piping systems. As an industry leader, Marley Pipe Systems recognises the importance of environmentally sustainable processes. In line with group policies, our holding company, Aliaxis, encouraged Marley Pipe Systems to adapt to a “lead free environment” as early as 2006, and Marley Pipe Systems rose to adjust manufacturing systems to incorporate heavy metal free production during this time. In July 2015, SABS regulations dictated that manufacturers of PVC pipes and fittings are required to remove heavy metals from their manufacturing processes if they wished to retain their SABS approval certification. As a founding member of the SABS mark scheme, Marley Pipe Systems have a proud record

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OVERVIEW panding and modernising its operations. Domestically, the main consumers of steel products are the mining, manufacturing, building and construction sectors, while a significant share is destined for the export market. Steel has been experiencing a volatile few years, with reduced demand for from China severely reducing production volumes in South Africa. The Steel and Engineering Industries Federation of Southern Africa (Seifsa) reported that 19 000 jobs were lost in the metals and engineering sector in the nine months to September 2016. This sector makes up 28% of manufacturing in the country. Cheap imports have been at the heart of problems for the steel sector, as they have for textiles, but other issues include energy prices and labour costs There are as 35 aluminium processing firms in Gauteng, involved in both secondary processing to produce foils, cans, bars, rods and sheets, with final fabrication in the form of die-casting and sheet metal work. Within Gauteng, the automotive and packaging industries are the chief consumers of these products. AECI is a large manufacturing company with its roots in the mining industry. It comprises two principal divisions: AEL Mining Services (with a large factory site at Modderfontein south of Johannesburg) and Chemical Services, which presides over 20 separate companies (including Senmin, the group’s mining chemicals company).

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Incentives T h e Manuf ac turing and Competitiveness Enhancement Programme (MCEP) of the National Department of Trade and Industry (dti) announced in 2017 that it had disbursed a total of 1 552 grants to the value of R5.8-billion which had resulted in 230 000 jobs being “sustained”. Plastics, pharmaceuticals and chemicals received 31% of the money; metal fabrication, capital and real transport equipment 28% and agri-processing 21%. Italian forged wheel manufacturer Lucchini received tax and training allowances from the dti which helped it decide to invest R200-million in a new forged wheel-making facility. Blank railway wheels imported from Italy will be completed at the Germiston plant. Lucchini previously sold its wheels in South Africa through DCD Ringrollers, itself a maker of forged steel tyre products. Lucchini has committed to increasing the local content in the manufacturing process. The dti is the state’s lead promoter of the sector, as seen in the MCEP example. The main vehicle for the dti is the Industrial Policy Action Plan (IPAP), the seventh version of which was launched in 2016. The Support Programme for Industrial Innovation (SPII), run by the Industrial Development Corporation (IDC) on behalf of the dti, promotes technology development.


OVERVIEW

USED JUICE AND MILK CARTONS NOW RECYCLABLE IN SA This is why it has embarked on a campaign to raise consumer awareness that long-life milk and juice cartons are now recyclable. Consumers must ensure the cartons are empty and flattened. Where there is no kerbside collection, they can deposit their recyclable items in their nearest Ronnie bank at schools or community centres or, alternatively, cartons can be delivered to any of Mpact’s buyback centres countrywide or to one of its sixteen Mpact Recycling operations for payment. “Liquid carton packaging provides a category of waste that can be recycled and will add considerably to land preservation in South Africa as consumers can redirect cartons away from limited landfill space,” says Hunt. “Whether you finish a carton of milk at breakfast or enjoy a boxed fruit juice for lunch, place your flattened, used container into your nearest recycling bin, whether at home, school or work. This way South Africans will be not only be doing their bit to keep the environment clean, but will also be helping to continue creating sustainable job opportunities throughout the recycling value chain,” concludes Hunt.

Juice and milk cartons have long been one of the contributors to waste in South Africa’s landfill sites. In a major development for the South African paper and packaging recycling market, Mpact Recycling recently announced that liquid cartons are now recyclable. John Hunt, managing director of Mpact Recycling, says it was previously not possible to recycle juice and milk cartons as they are not made of typical paperboard. It comprises of other layers made up of polyalu, which means the paper needed to be separated from the polyalu to be used. This announcement follows the investment of R46-million in a Liquid Packaging recycling plant at Mpact’s Springs Paper Mill facility. “The recycling plant has the capacity to recycle 25,000 tonnes of used liquid cartons per annum, which will be fed directly into our paper division for use in new paper products,” says Hunt. Mpact Recycling’s role, through its extensive collection network of paper, containerboard, PET and now liquid packaging, is to supply its mills with sufficient volume to match its capacity.

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OVERVIEW Another IDC initiative has allocated R23-billion over three years to support the Black Industrialist Programme to help existing entrepreneurs grow their businesses. The Provincial Government of Gauteng has tabled plans to bolster manufacturing capacity in the province’s western areas. The priorities are mining and mineral beneficiation, capital equipment and machinery, agriculture and agri-processing, tourism, retail and economic development in townships. Some of the projects include: • a bicycle manufacturing or assembling factory in Mohlakeng. • continuing to buy busses for the province’s BRT system from the Busmark plant in Randfontein which manufactures and assembles buses. In 2016 a dual fuel bus was launched, with the bodies of the busses designed and built in Randfontein. • establishment of agri-parks: Westonaria hydroponic agri-park; Merafong Flora agri-park (tomatoes, cucumbers and green peppers); investment in Isigayo Milling Plant in Randfontein. • revitalisation of industrial parks at Khutsong, Mohlakeng and Chamdor.

Pharmaceuticals South Africa’s pharmaceutical sector is worth approximately R20-billion annually. 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%) the two key players, followed by Sanofi, Pharmaplan and Cipla Medpro. The private sector accounts for 80% of pharmaceutical industry sales by value and 20% by volume, while this ratio is reversed

ONLINE RESOURCES Aluminium Federation of South Africa: www.afsa.org.za Centre for Advanced Manufacturing: www.cfam.co.za Chemical and Allied Industries’ Association: www.caia.co.za Gauteng Department of Economic Development: www.ecodev.gpg.gov.za Manufacturing Circle: www.manufacturingcircle.co.za National Department of Trade and Industry: www.thedti.gov.za

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in the case of the public sector. The public sector dispenses comparatively cheap pharmaceutical products to its users in public hospitals and healthcare centres within South Africa, whereas pharmaceutical products produced by the private sector in South Africa serve a niche market. Among the other big international brands active in Gauteng are Merck, which has a 55 000m² plant at Modderfontein, and Pfizer SA, which runs a laboratory in Sandton among its facilities in South Africa.


OVERVIEW

Automotive and components Investment in plant and training is on the rise.

SECTOR INSIGHTS BMW’s new training centre will teach advanced computer skills and robot programming.

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MW South Africa has spent about three years investing R6-billion in its Rosslyn plant to prepare for the manufacture of the new BMW X3 model. This includes a R73-million training facility which will have the capacity to train 300 apprentices in the intricacies of robot programming and other computer skills. Nissan is another big automotive manufacturer with a plant at Rosslyn, north-west of Pretoria. The NP200 pick-up (bakkie) and the NP300 are built at the plant. Ford announced in 2017 that it would put R3-billion into taking the production of the Ranger vehicle to 167 000 per year. The plant at Silverton, Pretoria, also makes the Everest sports utility vehicle. UD Trucks, a part of the Volvo group, announced in 2017 that they will assemble the Croner heavy commercial vehicle at Rosslyn. Gauteng is also home to a strong automotive components industry, together with several bus and truck assembly plants. These include Scania, TFM Industries and MAN Truck and Bus South Africa, as well as the Chinese truck manufacturer FAW, which owns an assembly plant in Isando. Bejing Automotive Works (BAW) assembles taxis at Springs and has committed (with its partners) to a new investment of R250-million.

ONLINE RESOURCES Automotive Industry Development Centre: www.aidc.co.za Automotive Industry Export Council: www.aiec.co.za Automotive Supplier Park: www.supplierpark.co.za National Association of Automobile Manufacturers of South Africa: www.naamsa.co.za National Association of Automotive Component and Allied Manufacturers: www.naacam.co.za

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Armoured cars are also produced in Gauteng. DCD Protected Mobility manufactures armoured cars in Boksburg, which are branded as Vehicle Mounted Mine Detectors. In nearby Benoni, BAE Systems OMC designs and manufactures protected vehicles. The Automotive Industr y Development Centre (AIDC), the City of Tshwane and the Tshwane Economic Development Agency (TEDA) are collaborating on a strategic project to boost the sector with a focus on infrastructure. Incentives are available to firms and investors within the automotive industry. The value of incentives provided through the National Department of Trade and Industry amounts to around R5.9-million. These incentives are a key factor in encouraging firms within the automotive industry to upgrade or expand their facilities. The Department of Trade and Industry, working together with the National Association of Automobile Manufacturers of South Africa set targets for 2035 to increase production to 1% of world volumes (which would mean 1.4-million more vehicles made in SA), increasing local content and doubling employment and blackowned businesses in the sector.


Food and beverages

OVERVIEW

Joburg Market is Africa’s biggest.

SECTOR INSIGHTS South African Breweries is spending R2.8-billion on expansion.

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s a densely populated, urban province, Gauteng is South Africa’s biggest market. By volume and value, the Joburg Market is the biggest in Africa. There are 55 cold rooms that can accommodate 4 561 pallets of fresh produce at any one time. An average of 10 000 buyers congregate daily on the market’s 65 000m² of trading space. Investment opportunities in this lively sector include: production of ground-nuts, sunflowers, cotton and sorghum; soya beans, rooibos, beverages, fruit and vegetables; essential oil extraction from herbs and indigenous plants; expanding the exotic meat market (kudu, ostrich and springbok) locally and globally; packaging of agri-processed goods; and small business opportunities within the brewing industry. The Green Hub in the West Rand District Municipality will promote the growth of sustainable, green industries, research and development of organic food production, health foods and natural remedies. More than half of the companies operating in the food and beverage sector in South Africa are in Gauteng, including Nestlé, Tiger Brands, Pioneer Foods, RCL, AVI and Astral. There are approximately 4 000 food processing companies in the province, employing more than 100 000 people. South African Breweries is spending R2.8-billion on expanding two of its three Gauteng breweries. Heineken’s brewery at Sedibeng has already been expanded once since it opened in 2010. Nestlé operates four manufacturing plants in the province and has invested heavily in increasing production volumes over the last

ONLINE RESOURCES Food Advisory Consumer Services: www.foodfacts.org.za National Agricultural Marketing Council: www.namc.co.za FoodBev SETA: www.foodbev.co.za South African Association for Food Science and Technology: www.saafost.org.za

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three years. Tiger Brands runs six plants in Germiston that produce a range of meat products, and the establishment of a new tomato sauce plant and pasta plant rank among the company’s recent investments in the province. McCain Foods, located in Springs, produces frozen vegetables for the Gauteng market. Although the South African poultry business took a knock because of the relaxation of import duties, the South African consumer still eats a lot of chicken. Earlybird Farm, one of Astral’s operations, processes 800 tons of chicken per day at its two factories in Olifantsfontein. RCL operates 18 farms and two feed mills in Gauteng alone. Daybreak Farms, an AFGRI operation in Springs, produces about 650 000 broilers every week. Several beverages in AVI’s portfolio (including Ciro) are produced at the group’s Kempton Park facilities. United National Breweries produces Umqomboti in northern Gauteng. Key players in the industry in South Africa include South Africa Breweries (SAB) (malt beer), United National Breweries (sorghum beer), Distell (spirits and flavoured alcoholic beverages, or FABs) and Brandhouse (malt beer, spirits and FABs). GAUTENG BUSINESS 2018/19


OVERVIEW

Tourism Heritage is a growth sector.

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eritage tourism is a strong component of the tourism offering in Gauteng. The Cradle of Humankind is a UNESCO World Heritage Site and attracts thousands of visitors every year to the interactive visitor’s centre at Maropeng, shown above. The Sterkfontein Caves have recently revealed astonishing finds, showing the origins of humanity through artefacts such as the 2.1-million-year-old skull known as Mrs Ples. The Origins Centre at the University of Witwatersrand 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. More recent history relating to the struggle against apartheid centres on attractions such as the moving exhibitions housed at the Apartheid Museum and the history of the battle for human rights and democracy embodied in Constitution Hill. The latter site won National Heritage Site status in 2017 and application has been made for world heritage status. Constitution Hill is also a popular site with film crews. 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. 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 in Tshwane.

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SECTOR INSIGHTS Constitution Hill has been declared a National Heritage Site. • SADC markets are being targeted. Cultural and history tourism are further catered for by more than 60 other museums and art galleries in the province. These include the Ditsong National Museum of Natural History (Transvaal Museum), Museum Africa in Johannesburg’s cultural Newtown precinct, the South African Military History Museum and the National Cultural History Museum. Craft markets at Rosebank, Bruma and many other places draw large numbers of visitors and


OVERVIEW provide economic opportunities for a wide range of entrepreneurs in textiles, leather, traditional art and beadwork. The broader creative industries sector contributes more than R3.3-billion to the Gauteng economy and employs 182 000 people, according to the provincial government. This includes film and advertising studios. Tourism is one of the sectors being targeted for a closer working relationship between the private sector, academia and various government entities. The Gauteng Business Consultative Forum (GBCF) is an initiative of the Gauteng Provincial Government that meets four times a year. The Gordon Institute of Business Science (GIBS) hosts the functions at its Johannesburg campus. South Africa’s biggest international airport is OR Tambo International Airport in Johannesburg. Some R200-million was spent on extending and upgrading the runways and aprons prior to South Africa hosting the 2010 World Cup football tournament. OR Tambo caters about 20-million passengers every year, receives more than 105 000 arriving air traffic movements and employs 18 000 people. The Gauteng Tourism Authority is targeting Southern African Development Community markets such as Botswana and Mozambique.

The city of Ekurhuleni successfully hosted Airport Cities: World Conference and Exhibition in 2013 as part of the city’s plan to establish an aerotropolis around OR Tambo International Airport. The Tshwane Events Centre and the CSIR International Convention and Exhibition Centre are among Pretoria’s most used venues. The OR Tambo Building of the Department of International Affairs and Cooperation (Dirco) won architectural awards and hosts conferences and meetings of the Pan-African African Parliament.

Events A Bidding, Hosting and Events Strategy for the Gauteng City Region has been developed to encourage investors. The Gauteng Convention and Events Bureau (GCEB) promotes the province as a conference and events venue. The Johannesburg Tourism Company has a dedicated unit, the Johannesburg Convention Bureau, that assists companies in preparing bid documents and in supplying relevant information on telecommunications and IT services and the securing of visas for visiting international delegates. Big events continue to draw big crowds. These include the Standard Bank Joy of Jazz, DStv Delicious Food and Music Festival, and the Gauteng Sansui Summer Cup (horse racing). With events growing in importance within the tourism offering, efforts are being made to include townships to a greater extent. The GTA gives support to two Soweto events, the annual Makhelwane Festival in Mzimhlophe and the Soweto Wine Festival together with the Tshwane Township Weekend Experience, covering Garankuwa and Mamelodi. Gauteng is a continental leader in conferences and events. Most large hotels have conference facilities. Large venues in Johannesburg are: • Johannesburg Expo Centre, Nasrec. Capacity: 15 000 • Coca-Cola Dome, Randburg. Capacity: 14 000 • Standard Bank Arena, New Doornfontein. Capacity: 6 300 • Sandton Convention Centre, Sandton: Capacity: 4 500

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Hotels Location, it is said, is key in all property developments. In Gauteng today, location relative to the Gautrain has become an additional component of value. So much so that the 216-room Radisson Blu Gautrain Hotel even has the vital word in its name. The hotel, which is in Sandton, was a winner 2017 in the World Luxury Hotel Awards in the categories, Luxury Business Hotel and Luxury Hotel and Conference Centre. The nearby Radisson Blu Hotel, Sandton, won the Luxury City Hotel Award. A huge new multi-use development is taking shape in GAUTENG BUSINESS 2018/19


OVERVIEW Pretoria’s eastern suburb of Menlyn. Sun International’s Times Square and Casino is a R4.2-billion project which will be the second biggest in the country with 60 tables and 2 000 slot machines. The Capital Hotel has 150 hotel rooms and 50 apartments. The apartment component points to a trend that is growing in the South African hospitality industry. The Legacy Group was one of the first to introduce apartments to the hotel development mix, when it added the Davinci Hotel on Nelson Mandela Square to its portfolio just before South Africa hosted the soccer World Cup in 2010. The Legacy collection includes the Michelangelo Hotel and Michelangelo Towers. The Davinci was designed with 166 hotel rooms, 54 apartments in the upper reaches, with a further four luxurious penthouses above that. The number of hotel rooms in Sandton alone increased by 40% in response to expected demand from the international tournament. Reduced occupancies in the period after the World Cup tournament has led to some consolidation in the sector with large brands buying up smaller groups but independent hotels such as the Indaba Hotel,

ONLINE RESOURCES Cradle of Humankind: www.maropeng.co.za Ekurhuleni Metropolitan Municipality: www.ekurhuleni.gov.za/tourism Dinokeng: www.dinokeng.co.za Gauteng Tourism Authority: www.gauteng.net Johannesburg Tourism Company: www.joburgtourism.com Randfontein Local Municipality: www.randfontein.gov.za Sandton Tourism Association: www.sandtontourism.com Sedibeng Tourism: www.sedibeng.gov.za Tshwane Tourism: www.tshwanetourism.com

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Spa and Conference Centre continue to attract guests. Another significant move in the hotel sector is the decision by Marriott International to develop Marriot t-brande d hotels in Johannesburg and Cape Town. After acquiring the Protea brand in 2014, Marriott introduced “Protea Hotel by Marriott” as the model but the decision in 2016 to use the mother brand for new hotels suggests an increased commitment to the local market. In partnership with the Amdec group, the group will spend about R1-billion on the Marriott Hotel Melrose Arch (150 rooms) and Marriott Executive Apar tments Johannesburg Melrose Arch (200 flats). Buying into Protea Hotels has given Marriott access not only to the South African market, but to many other African countries. Between Tshwane and Johannesburg (and in the nearby Magaliesberg mountains), Protea by Marriott has no fewer than 17 hotels across three brands: Fire and Ice, Protea; Protea Hotels and African Pride Hotels, the premier brand. Tsogo Sun has 36 hotels and three casinos in Gauteng. The hotels range across several brands covering four market segments, and they include a handful of stand-alone hotels such as the Palazzo (at Montecasino) and 54 on Bath (a boutique hotel in Rosebank). Sun Square, Southern Sun Hotels, Southern Sun Resorts, Garden Court and Stayeasy are among the group’s brands.


The Radisson Blu Hotel & Residence, Cape Town is located in the central business district of the city, near local attractions and with easy access to public transport. It is the ideal accommodation site for city dwellers, business travellers and those who enjoy a short walking distance to all major sites of interest, trendy entertainment and nightlife spots in the city centre. There are 214 rooms with unique views of either the mountain, harbour, city or sea. The rooms are equipped with a telephone, free Wi-Fi, smart TV, safe, mini bar (business class), hairdryer and bathroom with rain and hand showers. Business Class rooms have exclusive access to the unique Business Class Lounge.

RADISSON BLU HOTEL & RESIDENCE, CAPE TOWN 22 Riebeek Street, Cape Town, South , Africa Tel: +27 (0)21 467 4000 info.capetown.residence@radissonblu.com radissonblu.com/en/hotel-capetown-residence


OVERVIEW

Education and training Gauteng is focussing on vocational training.

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he unbundling from the successful Curro group of a separate tertiary entity which listed on the JSE as Stadio Holdings is a good indicator of the growth of the private sector in education. There is a strong trend towards the opening of private or independent schools across South Africa, and not necessarily in the very expensive bracket. Some of the new private schools are small and modest but the sector is also attracting investors and the larger brands are growing fast through acquisitions and building new facilities. Stadio currently has three institutions: Southern Business School, AFDA (the School for the Creative Economy which has one campus in Johannesburg) and the Embury Institute for Higher Education which has recently opened two new campuses, one of which is in Pretoria. The business school is a distance learning institution with headquarters in Krugersdorp. Curro Holdings believes it will be running 200 schools in South Africa by 2020, double its current number. In Gauteng, Curro has 37 schools across its five brands. A funding agreement with Old Mutual Investment Group SA (OMIGSA) and the Public Investment Corporation (PIC) will see Curro roll out 11 low-fee independent schools. These will be called Meridian Independent Schools. JSE-listed ADvTECH has many schools across five brands (from primary to high school) and nine tertiary colleges in the province. Schools include Trinity House and Crawford College while the tertiary offering includes an advertising school (Vega), a chef’s academy (Capsicum) and a Varsity College.

SECTOR INSIGHTS Gauteng won the artisan skills development award in 2017. • Stadio Holdings is a new post-school JSE listing. Pembury Lifestyle Group (PLG) has 19 schools on seven campuses and listed on the Alternative Exchange of the JSE in 2017. Gauteng has achieved 95% access to Grade R. Enrolment in the province’s schools has grown from 1.3-million in 1994 to 2.3-million in 2018. As a symbol of the attractiveness of the province to South Africans from every region, the province is the only one to offer all 11 official languages in its schools, together with a further seven non-South African languages. The provincial government of Gauteng announced in 2017 that since 2014 it has built 43 new schools, including classrooms with ICT facilities in existing schools. To 2019, a further 34 new schools will be erected, together with 1 200 laboratories and more than 470 school libraries. Pupil numbers suggest that even more schools need to be built: in 2016 Gauteng schools accepted two-million pupils.

Training Unisa has more than 200 000 distance learning students.

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Vocational training is a strong focus for Gauteng and the


OVERVIEW province won the 2017 gold award for artisan skills development awarded by the National Skills Authority. Technical and Vocational Education and Training (TVET) Colleges are tasked with bridging the skills gap in South Africa. TVET colleges are concentrating on 13 trade areas, including bricklayers, millwrights, boilermakers and riggers. R16.5-billion has been allocated by national government to skills development and infrastructure over the medium term. Gauteng has the following TVET colleges: • Central Johannesburg College • Ekurhuleni West TVET College • Ekurhuleni East TVET College • Sedibeng TVET College • South West Gauteng College • Tshwane North TVET College • Tshwane South TVET College • Westcol TVET College. The National Skills Authority (NSA) works with SETAs in carrying out the National Skills Development Strategy (NSDS). The Human Resource Development Council of South Africa (HRDCSA) is an over-arching body working on skills development and training.

Tertiary Well-regarded research units, top-ranked business schools and many universities, universities of technology and colleges are located in Gauteng. The mayor of Ekurhuleni has called for his city to have its own tertiary institution. Three of South Africa’s top five business schools are in Gauteng: the Wits Business School, the University of South Africa’s (Unisa’s) Graduate School of Business Leadership and the Gordon Institute of Business Science, on the Sandton campus of the University of Pretoria. Eighty percent of the 1 230 lecturers and researchers at the University

ONLINE RESOURCES Council of Higher Education: www.che.ac.za Gauteng Department of Education: www.education.gpg.gov.za National Department of Basic Education: www.education.gov.za National Department of Higher Education and Training: www.dhet.gov.za National Department of Science and Technology: www.dst.gov.za National Research Foundation: www.nrf.ac.za

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of the Witwatersrand (Wits) have post-graduate degrees, and 27 A-rated scientists work there. The university offers studies in more than 40 schools in five faculties. Pretoria hosts the head office of distance university Unisa, which has almost a quarter of a million students. The University of Pretoria (UP) is renowned for research. One of the most famous faculties is veterinary science, which is located at Onderstepoort. The indoor compact antenna test range housed in the Department of Electrical, Electronic and Computer Engineering at UP is the only one in the southern hemisphere. UP also has a chair in electronic defence research (with the CSIR), the Exxaro chair in Energy Efficiency and the South African National Energy Development Institute Hub. The University of Johannesburg (UJ) is a comprehensive institution offering diplomas and degrees through a mix of vocational and academic programmes. The Tshwane University of Technology (TUT) and the Vaal University of Technology (VUT) have several campuses. TUT’s 50 000 students attend classes on six campuses in four provinces. The main campus of VUT is in Vanderbijlpark. Altogether, there are more than 3 300 educational institutions in Gauteng. Since 2013, more than 20 000 students have received R1-billion in bursaries from the Provincial Government of Gauteng.

GAUTENG BUSINESS 2018/19


OVERVIEW

Information and communications technology Technology companies are training young people in ICT.

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rtificial intelligence is the latest buzz phrase, and businesses are doing their best to stay ahead of the game. Among the biggest investors in new technology are banks and other players in the financial sector, where technology is rapidly lowering the barriers to entry for new businesses. South Africa’s Big Four banks spent R30-billion between June 2015 and the same month in 2016, with Standard Bank laying out R14-billion in that period (Tech Central). Enterprise resource planning (ERP) is an important solution for many businesses, allowing various parts of a plant or distribution network to work together. Gauteng is a leader in the ICT sector. With several global companies choosing to station their South African headquarters in Gauteng, the province is well connected. More than 1 500 kilometres of network fibre has been connected throughout the province, with 1 066 sites such as schools, health facilities, libraries and community centres giving community members and entrepreneurs the chance to be connect with the digital world. The aim is to have 100% broadband connectivity in Gauteng by 2020. A provincial government initiative known as eKasiLabs Innovation Centres supports entrepreneurs and young people with good business ideas. The “Tshepo 1 Million” campaign links the provincial government with the successful Harambee Youth Employment Accelerator and more than 40 large companies. The programme creates internships for unemployed young people, thus giving them some experience of the world of work and preparing them to solve real problems. There is a focus on digital skills and technology companies have come on board to provide training. Both Johannesburg and Tshwane have free Wifi networks with Tshwane’s covering 780 zones in places such as libraries, educational institutions and clinics.

ONLINE RESOURCES Ikamva National eSkills Institute: www.enesi.org.za Independent Communications Authority: www.icasa.org.za National Department of Trade and Industry: www.dti.gov.za State Information Technology Agency: www.sita.co.za Technology Innovation Agency: www.tia.org.za

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SECTOR INSIGHTS More than 1 500km of network fibre has been laid in Gauteng. T he Small Enterprise Development Agency (Seda) runs the SoftstartBTI ICT incubator in Midrand and Tuksnovation, a high-tech incubator, at Pretoria University. Several incentives relevant to companies and educational bodies in the ICT sector are available from the Department of Trade and Industry (dti). These include: • The Technology and Human Resources for Industr y Programme (THRIP): companies and educational institutions working to improve technology; 50/50 cost sharing grant to a maximum of R8-million • Technology Development Fund: the Technology Innovation Agency makes up to R50-million available for up to 10 years • Te chnolo g y Venture Capital: managed by the Industrial Development Corporation; commercialisation of innovative products, processes and technologies.


FOCUS

Award-winning software ensures water delivery

Introducing
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 Infinite Possibilities Audience: Prospective Customers

SYSPRO software ensures high quality and flexibility for manufacturer.

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Enterprise Resource Planning (ERP) Software automates and integrates core business processes such as customer orders, production, inventory control, and reporting. An ERP system can drive significant improvements in manufacturing, distribution and financial management. “SYSPRO’s ability to integrate with other systems and the willingness of SYSPRO developers to find workable solutions makes this a possibility,” says Systems Project Engineer, Linda Fischer.

Personalize Your Workspace

When Hall Longmore began manufacturing welded steel pipes in 1924, it paved the way for the development of a major engineering enterprise, which today is the largest operation of its kind in Africa south of the Sahara, exporting to more than 30 countries around the globe. Today the company owns manufacturing facilities offering modern, industry-leading equipment and process control for the production of large-bore welded steel pipes. Applications range from the transportation of water, gas, petrochemical product, slurries to piling and structural steel fabrication. Hall Longmore is involved in the manufacture and processing of pipe for a number of environmentally significant water projects throughout Southern Africa. As a relatively dry region, Southern Africa is extremely reliant on these projects for the transportation of water. Rand Water, Amatola Water, Bloem Water and the Medupi Power Station are just some of the organisations that have benefited from Hall Longmore products. Its state-of-the-art manufacturing facility features the most modern pipe-making equipment and technology to ensure that stringent quality

SYSPRO ERP

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Case Study

standards are maintained. This commitment to excellence has to be supported by an ERP system that offers the same level of expertise and flexibility.

Sc

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YSPRO software is an award-winning, best-of-breed Enterprise Resource Planning (ERP) software solution for on-premise and cloud-based utilisation. Scalable for rapid growth, SYSPRO is acknowledged by industry analysts to be among the finest enterprise resource planning solutions in the world. SYSPRO software’s powerful features, simplicity of use, information visibility, analytic and reporting capabilities, business process and rapid deployment methodology are unmatched in its sector. While SYSPRO customers represent all industry segments, rich extensions for food, medical devices, electronics and machinery companies, make SYSPRO the first choice for growing companies looking for a cost-effective ERP solution.

The award refered to in this case study was won in the US.

GAUTENG BUSINESS 2018/19


OVERVIEW

Banking and financial services Gauteng is home to new banks and new stock exchanges.

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he website of the newest holder of a South African banking licence, TymeDigital by Commonwealth Bank SA, contains no physical address. In that Tyme stands for Take Your Money Everywhere, the name of the company that Commonwealth Bank bought in 2015, and that the bank will have no physical branches, the digital focus is logical. However, it is thought that most of the 230 staff members of the new bank are based in Gauteng, where the financial-services industry contributes 21% to the province’s gross domestic product. Africa’s largest stock exchange and the head offices of many banks and investment houses in Gauteng. So large are the operations of Gauteng’s banks that some of them have campuses in downtown Johannesburg, rather than offices. Standard Bank recently completed a R2.5-billion office complex in Sandton and Discovery’s international headquarters in the same suburb is said to be the continent’s biggest single-phase office development. Tyme’s Money Transfer product, which it launched in 2016, is available at Boxer and Pick n Pay. African Rainbow Capital is the venture’s BEE partner. The banking licence is the first to be issued since Capitec was granted a licence by the South African Reserve Bank in 1999. Other applicants for new banking licences are Discovery and Post Bank, a division of the South African Post Office. Discovery is already a GAUTENG BUSINESS 2018/19

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SECTOR INSIGHTS The Gauteng Provincial Government is investigating starting a bank. • African Rainbow Capital is an investor in several new entities. giant on the JSE (market value of R83-billion) with a wide range of products and services that give it access to millions of customers. Life insurer MMI Holdings is entering a partnership with African Bank to enable it to start taking deposits and loaning money. A further two state banks are planned: Ithala (currently an enterprise funder in KwaZulu-Natal)


OVERVIEW and a Human Settlements Development Bank which will focus on housing for poorer households and state-funded housing projects. Gauteng’s Treasury has also completed a feasibility study on establishing a provincial state bank. This would enable funding to be made available for the many infrastructure projects that are planned in the medium and long-term for Gauteng, together with making loans available for the SMME and township enterprise sectors. For many decades, South Africa had a retail banking Big Four – Standard Bank, Nedbank, Absa and First National Bank. All of them have a strong presence in the province, but they have recently been joined by Capitec Bank as a major player in the retail market. Banks are working hard to offer products to the previously unbanked. Nedbank has partnerships with shops such as Boxer Stores and Pick n Pay where customers can have access to financial services in previously unserviced areas and also on all days of the week such as public holidays and Sundays. Standard Bank’s community-banking initiative offers a low-cost cellphone-banking service. Retailers can act as agents for the bank, even in very remote rural areas. Shops such as Shoprite, Pep and Spar are connected, as are certain spazas. Financial services group Old Mutual (a 54% stakeholder in Nedbank) is in the process of creating four stand-alone businesses out of the Old Mutual Group. This will allow the UK-based wealth management business and the New York-based asset managers to be free of linkages to the rand, while the South African businesses, Nedbank and Old Mutual Emerging Markets, can focus on their specialities. The Chartered Institute of Government Finance, Audit and Risk Officers (CIGFARO) advises institutions, trains it members in public finance and promotes the interests of professionals in the public sector. It also develops and assesses qualifications and advises tertiary institutions on the requirements for courses.

ONLINE RESOURCES Auditor-General South Africa: www.agsa.co.za Banking Association South Africa: www.banking.org.za Chartered Institute of Government Finance, Audit and Risk Officers: www.cigfaro.co.za Financial Services Board: www.fsb.co.za Insurance Institute of South Africa: www.iisa.co.za Insurance South Africa: www.insurance.za.org JSE Limited: www.jse.co.za GAUTENG BUSINESS 2018 South African Institute for Chartered Accountants: www.saica.co.za

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Stock exchanges The JSE is the world’s 19th biggest exchange and nearly 400 companies are listed on the JSE or AltX, the JSE-owned exchange for smaller companies. Other investment options that are available through the JSE are Yield X (interest rate and currency instruments), the South African Futures E xchange (SAFEX) and the Bond Exchange of South Africa (BESA). In 2017 several new exchanges won regulatory approval, with ZAR X winning the nod from the Financial Services Board (FSB) against objections by the established JSE and another new exchange, 4AX. Shortly after winning its court case, ZAR X started trading in Senwesbel, the holding company of one of South Africa’s biggest agricultural trading companies, Senwes. There is no trading in derivatives or high-frequency trading on this exchange. A2X will offer secondary listings platform for JSE-listed companies and aims to cut costs for investors. African Rainbow Capital (started by Patrice Motsepe) is an investor in A2X. 4 Africa Exchange (4AX) will focus on companies with market capitalisation of up to R8-billion. Agricultural trading company NWK is a shareholder in this venture. The newcomers all promise to use the latest technology to make trading simpler, quicker and cheaper.


Promoting good management of public finances

PROFILE

CIGFARO establishes and maintains high standards.

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he Chartered Institute of Government Finance, Auditing and Risk Officers (CIGFARO) is the recognised professional body for finance, audit, risk management, performance management and related professionals in the public sector. The Institute was founded in 1929 and is dedicated to establishing and maintaining high standards of professionalism among practitioners by providing a framework for them to collectively enhance and maintain sustainable financial management and good governance in the management of public finances. CIGFARO is recognised by the South African Qualifications Authority (SAQA) as the professional body for financial management in the public sector.

To provide opportunities and platforms for an exchange of views, knowledge and best practices among members and to undertake research into public sector finance and governance. Goals •

Core services and functions To further the interests of the public sector in the financial and related professions by: • advising institutions, commissions and other bodies and persons • training and advancing of knowledge of members of the Institute • the promotion of the interests of the profession of public finance officers and related professions

• •

To protect the interests of the public through strict enforcement of the Code of Conduct by embracing the following objectives: • developing and registering appropriate qualifications • assessing and promoting programmes at institutions of higher learning • regulating activities within the public-sector finance profession • monitoring the continuing professional development of members

To consider, research and comment on existing and proposed pieces of legislation affecting the public sector. To cooperate with any other professional body that is aimed at improving and enhancing public finance and governance both in the Republic and internationally.

CONTACT DETAILS Postal address: PO Box 4003, Kempton Park 1620 Telephone: +27 11 394 0879 Email: ceo@cigfaro.co.za Website: www.cigfaro.co.za

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Help public entities survive the current economic climate through economic growth, improved productivity, better collection rates, value for money and return on investment. Assist in reducing the rate of rural-urban migration. Commit to the triple bottom line – assessment of all projects in terms of economic, social and environment issues. Optimise the use of technology and innovation. Develop the skills and capacity of finance practitioners in the public sector. Ensure maximisation of service delivery and provide costeffective services. Benchmarking and ensu-ring value for money.

Training Training is provided on all aspects of local government. We are currently rolling out training on MSCOA (Municipal Standard Chart of Accounts). Our Seminars, Workshops, Indabas and Annual Confer­ence also assists with Continuous Professional Development (CPD) of our Members. GAUTENG BUSINESS 2018/19


PROFILE

Making a big difference to a small enterprise Training at Work benefited from Standard Bank support.

Training at Work is a training and consulting private company established in 2001. In 2006 the company was converted from a closed corporate to a limited private company. The company is 100% woman owned by Patricia Chiloane. Training at Work employs nine full-time administrative staff members with more on a contract basis.

The Standard difference Banking advice and support can make a big difference to a small business starting out, as Patricia Chiloane, Managing Director of Training at Work, testifies. “The Small Enterprise team taught me to have a separate business account with the personal account,” she remembers. “I was also advised about the importance of audited financials and management accounts in order to keep business sustainable.

Patricia Chiloane, Managing Director of Training at Work.

“They even introduced me to the private banking section. I was told if I need anything to support the business, I must not hesitate to contact my business banker.” When times were tough, Patricia was able to continue to build the business even though cash flow was a problem. To this day, Training at Work continues to grow. “We have never said no to business because of a lack of finance,” says Patricia. An overdraft facility allowed the young company instead to take on “any challenge because the bank was there financially”. “The bank went further by providing us with the Business Banking services. Today we make all banking transaction in the comfort of our offices. We don’t have to go and queue for long hours; instead the business banker will come and assist us from our office. “We appreciate the support of our bank and we hope more SMMEs can take the opportunity and use it to grow their small business.” GAUTENG BUSINESS 2018/19

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Business offering Training at Work of fers Management, Business, Artisanal, and IT Programmes to young people, employees and management. Training programmes help school leavers, employers, employees and the unemployed to better themselves through education and training, so that they can improve their social and/or economic condition. The consulting service is targeted at employers, non-government organisations and governmental bodies. This service includes: companyspecific skills programmes, training workshops and learnerships, custom training material (accredited and non-accredited), training programmes evaluations, impact studies and surveys, and HR consulting and competency audits. Training at Work is accessible throughout the country through mobile training, including in rural areas. Contact information Address: 15 Leonie Street, Cnr Rifle Range, Winchester Hills, Johannesburg Tel: +27 11 433 9318 Email: info@trainingatwork.co.za Website: www.trainingatwork.co.za


OVERVIEW

Development finance and SMME support Co-operatives are making school uniforms.

C

o-operatives are a popular way of doing business for newcomers to the formal economy. According to the provincial government, Gauteng has 14 registered co-operative banking institutions serving over 16 000 member-owners, with over R100-million in savings and R150-million in assets. A successful niche has been created in the manufacture of dignity packs and school uniforms. A partnership between the Italian co-operative movement and the Provincial Government of Gauteng aims to form consumer cooperatives in the wholesale and retail sectors. The township market of about 250 000 township households holds enormous potential for collective buying. The idea of started a provincial state bank has been raised and a feasibility study has been completed. The focus of this bank will be SMMEs, businesses run by women and young people, infrastructure projects and township enterprises. About half of South Africa’s formal SMMEs operate in Gauteng and more than half are in the wholesale and retail sector and the accommodation sector. The next most popular sectors are community, social and personal services. The Small Enterprise Development Agency (Seda) is a subsidiary of the National Department of Small Business Development (DSBD) and gives non-financial support to entrepreneurs through training, assistance with filling in forms, marketing and creating business plans. It helps small businesses draft applications for loan finance. Several of Seda’s technology incubators are in Gauteng.

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SECTOR INSIGHTS A provincial bank is planned to support SMMEs. Pretoria-based Excellence Motor Trimmers (pictured above) joined Seda’s Technology Innovation which assisted them in getting more energy-efficient equipment. This helped the company increase production volumes and create more jobs. Public procurement from township enterprises from provincial and municipal governments in Gauteng increased in 2017 to R17-billion, up from just R600-million in 2014. This expenditure has allowed many township businesses to enter the formal economy and for them to become more sustainable. A Township Economy Awards process run by the provincial government has raised awareness of the GAUTENG BUSINESS 2018/19


OVERVIEW potential of many businesses and stimulated a lot of interest among township entrepreneurs. The City of Johannesburg runs seven SMME hubs where office space, Wifi and advice and training are available for small business operators. The National Department of Small Business Development has several programmes to assist small, micro and medium enterprises (SMMEs) and co-operatives. These include: • The Black Business Supplier Development Programme, a costsharing grant to promote competitiveness • The Co-operative Incentive Scheme, a 100% grant. The National Gazelles is a national SMME accelerator jointly funded by Seda and the DSBD. The aim is to identify and support businesses with growth potential across priority sectors. Businesses can receive up to R1-million for training, productivity advice, business skills development and the purchase of equipment. The Industrial Development Corporation (IDC) supports SMMEs either by disbursing loans or by taking minority shares in enterprises and giving advice. The National Department of Labour has a programme to support people with disabilities. The Sheltered Employment Factories initiative puts out about 3 000 different product types in fields such as leather and canvas work, furniture, textiles, screen printing and book binding. The Enterprise Investment Programme (EIP) of the National Department of Trade and Industry (dti) is another support programme. In 2017, the success of a uniform and protection equipment company was advertised by the EIP: having received a grant in 2014, Thorax LP Equipment, a 100% black-women-owned company based in the industrial area of Alrode, has subsequently turned over more than R8-million and employed many young people.

Private sector Agribusiness and agri-processing are among the sectors that are targeted by the Masisizane Fund for loan financing. The others are franchising/ commercial and supply chain/manufacturing. Training is offered through

ONLINE RESOURCES Gauteng Growth and Development Agency: www.ggda.co.za National Empowerment Fund: www.nefcorp.co.za Small Enterprise Development Agency: www.seda.co.za Small Enterprise Finance Agency: www.sefa.org.za

GAUTENG BUSINESS 2018/19

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a Business Accelerator Programme. As a non-profit initiative of the Old Mutual Group, the fund focusses on the cash flow of potential businesses rather than insisting on security in the form of property. All the major banks have SMME offerings. Standard Bank’s Community Investment Fund (CIF) initiative extends loans to informal businesses. The CIF has distributed more than R7-million to more than 630 businesses through its six funds in three provinces. Nedbank has an enterprise-development product that supports businesses with a turnover up to R35-million with at least 25% black ownership. Private companies also support SMMEs through their buying chain. Woolworths is funding TechnoServe to ensure that small tomato growers can grow produce that will meet the demanding standards of the retailer, and to help them expand production. A regular supplier to Woolworths, Qutom, assists with the project. The Shanduka Black Umbrellas incubator helps entrepreneurs convert their good ideas to sustainable business practice. DRA Minerals is putting R3.8-million into the programme over two years. Anglo American Zimele, which runs four enterprise development and investment funds, helps start and expand SMMEs. Since the introduction of enterprise hubs, the number of projects has grown very quickly and Zimele has processed more than R500-million in loans and two applications are received every day. One of Zimele’s small business hubs operates out of Vanderbijlpark.


FOCUS

Entrepreneurship flourishing Black Management Forum Gauteng Provincial Chairperson, Langa Manqele, believes the Small Business Expo 2018 will help SMMEs break through.

T

he spirit of entrepreneurship is flourishing across South Africa, including in the townships and rural areas. This is according to the chairman of the Black Management Forum (the BMF) in Gauteng, Langa Manqele. Langa, who is himself an entrepreneur and businessman in the fintech sector, pays keen attention to patterns in the national economy. He says, “A trend we’re seeing emerging is for entrepreneurs to launch small-scale manufacturing and agro-processing operations around the country.” Studies suggest that such enterprises have the potential to create many jobs and national, provincial and local government policies are supposed to be aligned to support these businesses through their procurement budgets. “Unfortunately, though, many start-ups are failing to break through into big business,” says Langa. In addition, “many are failing to comply with testing and safety standards. This may be partly due to a lack of awareness and information and also because the infrastructure around safety and standards is out of the reach of rural business, as well as being prohibitively expensive.” This is one of the reasons why the Gauteng BMF is endorsing the Small Business Expo 2018, an annual showcase and knowledge-sharing platform for local small and medium-sized businesses. It is presented by Reed Exhibitions in partnership with the Eskom Development Foundation and supported by the Randburg Chamber of Commerce and Industry. The expo will take place from 6-8 September 2018 at the TicketPro Dome. The information sharing, skills development and networking available at the Small Business Expo are the sorts of things that may help small businesses achieve the sort of break-through that Langa describes. “This is why the BMF is endorsing the Small Business Expo,” he says. “Because of its focus on the development of black

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Langalethu Manqele, Black Management Forum Gauteng Provincial Chairperson business in particular, along with its three days of indepth workshops and opportunities to network, we believe it’s an invaluable platform for small businesses to gain the knowledge and social capital they need to grow. Capacity-building is a major challenge, and the number of startups able to be absorbed by incubators doesn’t meet the national needs; therefore events like these fill the gap for critical business skills development.”

GAUTENG BUSINESS 2018/19


INTERVIEW

Randburg Chamber of Commerce and Industry Promoting and representing businesses in the economic powerhouse. What is the geographic footprint of the Chamber? The areas we cover are: Randburg, Sandton, Fourways, Lanseria and Midrand.

Linda Blackbeard, RCCI CEO

What are the key functions of the Chamber? The key functions of the Chamber are primarily to promote business, to facilitate introductions, to be the voice of business at municipal local and government levels, in defending business in areas of poor decisionmaking or unintended consequences of various acts that are passed.

BIOGRAPHY Linda Blackbeard ran her own interior design and hospitality company before taking up the reigns as CEO of the RCCI. Having started as a receptionist, she quickly moved through the ranks and gained experience in marketing, sales and function coordination with a large corporate and then two hotel groups. Her hospitality business took her to Zimbabwe, Botswana, Mozambique and Malawi. Linda serves on a number of forums, including being the SACCI Chamber Forum Chairlady and a member of the South African Chamber of Commerce and Industry board of Directors. GAUTENG BUSINESS 2018/19

One of the Chamber’s main focus areas is the development of SMMEs, finding opportunities for them, business enhancement with regards to training, helping with business plans, company registrations, giving direction to ideas that entrepreneurs might have and actually building them up so that they can run businesses of their own. Teaching them to form joint ventures with other small businesses to actually grow and have an opportunity then to tender for works that may be available through City of Johannesburg. We promote our local businesses getting the work that needs to be done here. We are trying to focus on supporting businesses, especially our small businesses within our space, assisting in developing and promoting entrepreneurs’ businesses, locally and into Africa. Does the RCCI interact with the municipal government on issues relevant to business?

The Chamber is represented at the Johannesburg Business Forum, which is a platform to speak at a municipal level with regard to things like potholes, Pikitup, service delivery, electricity, power outages, billing issues, as well as working with the City to achieve their goals. We also sit in the Community Policy Forum Committees and we are active partners on the committees of LDAC (Local Drug Action Committee), which is the local organisation driving crime prevention, so we look at all areas of safety and security for the people within the area. Are your members drawn from very different sectors, or is there a concentration on types of businesses?

If you’re a registered business you need to be a member of the Chamber, there is no particular industry sector. As long as it’s a company and busi-

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LINDA BLACKBEARD COURTESY OF OCDMP, A DIVISION OF OWONDO CORPORATE

What does the Chamber do to support SMMEs?


INTERVIEW ness with integrity and it is legal, we will support you and try to help you wherever we can. Our members are from all business and industry sectors.

Are we connected to the right people at the City of Johannesburg? Are we dealing at the right levels of government? Do we have the correct connectivity to be able to assist you in the areas of your need? Would it be correct to say that the area cov- These are questions we continually ask to improve ered by the RCCI has some of the country’s our offering. Most of all it’s the members who need most dynamic businesses? to dictate the integrity of our benefits list and not the The areas we cover form the economic powerhouse people sitting in the chambers. The businesses out of South Africa. I cannot stress strongly enough that there need to tell us what their needs are. This way the actual business hub of Sandton alone is respon- we can provide a better service for them. sible for decision-making (on signing powers and approval) of a large number of business transactions What does the future hold? With all the amazing initiatives planned and in the taking place across the country. process of actioning - including our unique digital Are there particular challenges? custom-designed Certificate of Origin programme There are challenges. Randburg Chamber, which is for export. Businesses and members can look forward 59 years old in 2018, is still not as actively supported to renewed focus, positive opportunities, and facilias it could be. Our biggest battle is to create the tation in the SADC region for business growth and awareness of where we are and what we can do for opportunity. We are also proposing a name change business. The more businesses stand together with to incorporate the very large area we now service. their local Chamber of Commerce, the stronger our CONTACT INFO voice will be at municipal, provincial and government level. The way of doing business has changed and the Physical address: Unit G8 Atrium Terraces, Chamber is moving with the times. As a facilitator for 272 Oak Avenue, Randburg, Gauteng 2194 you the business owner, we can with our new Silver Tel: 086 101 9218 Lining project open doors for you that you would not Fax: 086 212 4407 get through alone, connecting you and engaging Email: admin@rcci.co.za on platforms that bring service to the businesses. By Website: www.rcci.co.za that I mean: are we sitting on the right committees?

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GAUTENG BUSINESS 2018/19


LISTING

Gauteng Provincial Government A guide to Gauteng’s provincial departments and their MECs.

Office of the Premier Premier: David Makhura Physical address: East Wing, 13th Floor, Gauteng Provincial Government Building, 30 Simmonds Street, Johannesburg 2001 Tel: +27 11 355 6000 Fax: +27 11 836 9334 Website: www.gautengonline.gov.za

Department of e-Government MEC: Barbara Creecy

Department of Agriculture and Rural Development MEC: Lebogang Maile Physical address: Diamond Corner Building, 68 Eloff Street, Johannesburg 2001 Tel: +27 11 240 2500 | Fax: +27 11 240 2619 Website: www.gdard.gpg.gov.za

Physical address: Pixley Ka Isaka Seme Street​, Marshalltown, Johannesburg 2001​ Tel: +27 11 355 3000 | Fax: +27 11 355 3811 Website: www.health.gpg.gov.za

Physical address: Imbumba House, 75 Fox Street, Johannesburg 2107 Tel: +27 11 689 6000 | Fax: +27 11 355 2112 Website: www.egov.gpg.gov.za Department of Health MEC: Dr Gwen Ramokgopa

Department of Human Settlements MEC: Paul Mashatile

Physical address: Bank of Lisbon, 37 Sauer and Albertina Streets, Marshalltown 2107 Tel: +27 11 355 4000 | Fax: +27 11 355 4000 Website: www.gdhs.gpg.gov.za

Department of Community Safety MEC: Sizakele Nkosi-Malobane

Physical address: 64 Pritchard Street, Johannesburg 2001 Tel: +27 11 689 3600 | Fax: +27 11 689 3660 Website: www.gautsafety.gpg.gov.za

Department of Infrastructure Development MEC: Jacob Mamabolo

Department of Cooperative Governance and Traditional Affairs MEC: Mr Paul Mashatile

Physical address: The Corner House, Cnr Commissioner and Sauer Streets, Marshalltown 2107 Tel: +27 11 355 5855 | Fax: +27 11 355 5012 Website: www.did.gpg.gov.za

Physical address: 63 Fox Street, Johannesburg 2001 Tel: +27 11 355 4884 Website: www.cogta.gpg.gov.za

Department of Roads and Transport MEC: Dr Ismail Vadi

Department of Economic Development MEC: Lebogang Maile

Physical address: 13th Floor, Sage Life Building, 41 Simmonds Street, Johannesburg 2001 Tel: +27 11 355 7000 Website: www.roadsandtransport.gpg.gov.za

Physical address: Matlotlo House, 94 Main Street, Johannesburg 2001 Tel: +27 11 355 8000 | Fax: +27 11 834 1972 Website: www.ecodev.gpg.gov.za

Department of Social Development MEC: Nandi Mayathula-Khoza

Department of Education MEC: Panyaza Lesufi

Physical address: Thusanong Building, 11th Floor, 69 Commissioner Street, Johannesburg 2001 Tel: +27 11 355 7600 | Fax: +27 11 355 7753 Website: www.socdev.gpg.gov.za

Physical address: 111 Commissioner Street, Johannesburg 2001 Tel: +27 11 355 0000 | Fax: +27 11 355 0542 Website: www.education.gpg.gov.za GAUTENG BUSINESS 2018/19

78


LISTING Treasury MEC: Barbara Creecy

Department of Sport, Arts, Culture and Recreation MEC: Faith Mazibuko

Physical address: 75 Fox Street, Imbumba House, Johannesburg 2107 Tel: +27 11 227 9000 Web: www.treasury.gpg.gov.za

Physical address: 35 Rissik Street, Surrey House, Johannesburg 2001 Tel: +27 11 355 2500 | Fax: +27 11 355 2505 Website: www.sacr.gpg.gov.za

Gauteng Local Government A guide to metropolitan, district and local municipalities in Gauteng Province.

Lesedi Municipality Tel: +27 16 340 4314 Fax: 086 601 9837 (SA only) Website: www.lesedilm.co.za

CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY Physical address: Metropolitan Centre, 1st Floor, Council Chamber Wing, 158 Loveday Street, Braamfontein Tel: +27 11 407 7557 Fax: +27 11 339 5704 Website: www.joburg.org.za

Midvaal Municipality Tel: +27 16 360 7400 Fax: +27 16 362 2794 Website: www.midvaal.gov.za

CITY OF TSHWANE METROPOLITAN MUNICIPALITY Physical address: Nunitoria Building, cnr Madiba and Lilian Ngoyi Streets, Pretoria Tel: +27 12 358 4900 | Fax: 086 732 5458 (SA only) Website: www.tshwane.gov.za

WEST RAND DISTRICT MUNICIPALITY Physical address: Cnr Sixth and Park Streets, Randfontein Postal address: Private Bag X033, Randfontein 1760 Tel: +27 11 411 5000 Fax: +27 11 693 7833 Website: www.wrdm.gov.za

EKURHULENI METROPOLITAN MUNICIPALITY Physical address: Cnr Queen and Cross Streets, Germiston Tel: +27 11 999 0906 | Fax: +27 11 999 1564 Website: www.ekurhuleni.gov.za

Merafong City Municipality Tel: +27 18 788 9500 Fax: +27 18 787 2146 Website: www.merafong.gov.za

SEDIBENG DISTRICT MUNICIPALITY Physical address: Cnr Beaconsfield and Leslie Streets, Vereeniging Tel: +27 16 450 3017 Fax: +27 16 421 3182 Website: www.sedibeng.gov.za

Mogale City Municipality Tel: +27 11 951 2000 Fax: +27 11 953 4571 Website: www.mogalecity.gov.za

Emfuleni Municipality Tel: +27 16 950 5452 Fax: +27 16 950 5001 Website: www.emfuleni.gov.za

Rand West City Muncipality Tel: +27 11 411 0000 Fax: +27 11 693 1736 Website: www.randwestcity.co.za

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GAUTENG BUSINESS 2018/19


INDEX

INDEX Airports Company South Africa (ACSA): O.R. Tambo International Airport.������������������������������������������� 18-21 Black Management Forum (BMF)���������������������������������������������������������������������������������������������������������������������������������������������75 Chartered institute of Government Finance, Auditing and Risk Officers (CIGFARO)��������������������������������69 Fluids Media Engineering��������������������������������������������������������������������������������������������������������������������������������������������������������������49 Ingwenya Mineral Processing....................................................................................................................................................40 Indaba Hotel, Spa & Conference Centre�������������������������������������������������������������������������������������������������������������������������������32 Makole Group���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������42 Marley Pipe Systems�������������������������������������������������������������������������������������������������������������������������������������������������������������������������52 Mpact���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������55 Nedbank..................................................................................................................................................................................... .......25-31 Pam Golding Properties�����������������������������������������������������������������������������������������������������������������������������������������������������������������17 Petroleum Agency South Africa������������������������������������������������������������������������������������������������������������������������������������������������45 Radisson Blu............................................................................................................................................................................................61 Randburg Chamber of Commerce and Industry (RCCI).............................................................................................76 Sandton Skye.........................................................................................................................................................................................17 Selfmed�������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������7, OBC Standard Bank....................................................................................................................................................3, 5, 67, 70, 73, IBC SYSPRO.............................................................................................................................................................................................IFC, 65 Transnet Pipelines...............................................................................................................................................................................46 GAUTENG BUSINESS 2018/19

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Gauteng Business 2018-19  

The 2018-19 edition of the Gauteng Business and Investment Guide is the premier business and investment guide for the Gauteng province and t...

Gauteng Business 2018-19  

The 2018-19 edition of the Gauteng Business and Investment Guide is the premier business and investment guide for the Gauteng province and t...

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