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2017/18 EDITION

GAUTENG BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN GAUTENG PROVINCE

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Turbocharging

the regional economy A new identity for the City of Ekurhuleni is being forged out of the towns and urban nodes surrounding Africa’s biggest and busiest airport, OR Tambo International Airport. The airport is the epicentre of Africa’s first Aerotropolis, which will set it apart from any other South African city and turbocharge the regional economy. The city has prime residential estates, glitzy entertainment venues, mega shopping malls, lively townships, historical villages, good schools, recreational facilities and wide-open spaces. Ekurhuleni is a digital city and is investing in digital infrastructure that will streamline the way it delivers services to the community, including smart grids, payment gateways, e-learning and e-health systems, and closedcircuit TVs to improve safety and security. Ekurhuleni has long been the manufacturing hub of the country and it is building on this history to create a smart city that will underpin the new economic growth trajectory. The city boasts a world-class transport network, telecommunications and energy grid, a youthful citizenry and strong financial position. Its connectivity across rail, road and air is significant – with the Gillooly’s Interchange being the busiest in the Southern

hemisphere, and Germiston railway hub is one of the busiest on the continent. The City is being developed through a series of strategic mixed-used urban developments and transformational projects like the GreenReef Mega-project, S&J Industrial Estate, Glen Gory, Leeuwpoort Housing Development, TwentyOne Industrial Park, Carnival Junction, Lordsview Industrial Park and the Riverfields R21 development, taking shape along the R21 Albertina Sisulu Highway which links Ekurhuleni to Pretoria. And the City has the infrastructure to support investments like Prasa-Gibela, which will see the building and maintenance of 600 new trains for South Africa’s rail commuter network over the next two decades. Over and above this there are also a number of mega housing projects that are being planned, as well as the redevelopment of Germiston into an administrative headquarters for the City, with other precincts following a similar path. Partnership between the public and private sector will be important in enabling these developments. City planners are expanding the horizon that will see Ekurhuleni blossom into a prosperous region for all its citizens.


A city so good you’ll want to invest in it.

live | play | invest Aerotropolis City

The City of Ekurhuleni is home to OR Tambo International Airport, Africa’s biggest and busiest airport on the continent. The City is also considered the manufacturing hub of the country, which boasts a significant logistics corridor along the R21 highway and an extensive transport network across rail, road and air.

Come invest in Ekurhuleni, the Aerotropolis City.


The Vision and Mission

The Tshwane Economic Development Agency The Vision and Mission The Tshwane Economic Development Agency SOC Ltd (TEDA) is a municipal entity of the Tshwane Metropolitan Municipality (CoT).

VISION

TEDA strives to be a catalyst for economic growth and development to position the City of Tshwane as a globally competitive capital city.

MISSION

The mission of Tshwane Economic Development Agency is: To provide integrated and innovative economic development solutions through investment promotion and funding, programme management and property management.

SERVICE OFFERINGS • Investment promotion and aftercare • Export development and promotion • Project management and development facilitation

CITY OF TSHWANE – AFRICA’S LEADING CAPITAL CITY

The City of Tshwane is a vibrant, diverse and modernising capital city. As the administrative seat of the South African government and the birthplace of South Africa’s democracy, it is home to over 130 foreign embassies and missions. The metro was established in 2000 and has a population of 3.1-million.

ECONOMIC OVERVIEW • • • •

GVA of R245.1-billion Contributes 25% to the Gauteng economy Accounts for 9% of the South African economy Biggest Free WiFi rollout in Africa

• Highest economic growth among all SA metros,

averaging a growth rate of 3.9% per annum to 2015 • Third-largest Metropolitan Municipality in the world in

terms of land mass

“LEVERAGING RESEARCH AND INNOVATION TO PROMOTE GROWTH.” WHY INVEST IN TSHWANE

RESEARCH AND DEVELOPMENT HUB

Tshwane has an impressive concentration of academic, research, technology and scientific institutes. An estimated 60% of all research and development in South Africa is conducted in Tshwane by institutions such as Armscor, the Medical Research Council, the Council for Scientific and Industrial Research (CSIR), the Human Sciences Research Council and educational institutions such as the Tshwane University of Technology, the University of South Africa and the University of Pretoria.

CENTRAL LOCATION

Tshwane is strategically positioned in the centre of the most prosperous part of South Africa. Located a mere 30km from Africa`s financial hub, Sandton, and bordering three of South Africa`s provinces that lead directly into the SADC, Tshwane offers easy access to a growing market of over 250-million people in the fastest-growing regional economic bloc.


OUTSTANDING INFRASTRUCTURE

Efficient supply of water, power and bulk infrastructure coupled with favourable climatic conditions and affordable industrial sites and office space make Tshwane very attractive to prospective investors.

EASE OF DOING BUSINESS

Recognising the importance of efficient and cost-effective business operations, the City of Tshwane is continuously looking at improving its business and investment climate.

COMPETITIVE INDUSTRIES

Tshwane’s reputation in automotive engineering is well established. Home to motoring giants Nissan, BMW, Ford and Tata, Tshwane accounts for 40% of South Africa’s automotive production. Highly regarded for its manufacturing, technology, electronics, defence design and construction sectors, Tshwane offers many business and investment opportunities in one of the city`s 16 mixed manufacturing industrial estates.

Focus investment sectors Aerospace & Defence Technologies

Tshwane is the key node in aerospace and defence technology development in South Africa. The foundation of the aerospace cluster is the Department of Defence and Air Force headquarters. Industry leaders such as Armscor, the CSIR, Denel Dynamics, Aerosud and Centurion Aerospace Village are key role-players in the cluster.

Agriculture & Agro-processing

access to transport infrastructure. The Automotive Industry Development Centre contains a conference centre and a retail centre. With a turnover of about R30bn in 2012 and contributes 3.3% to the City’s economy, the automotive and components industry constitutes about 25% of Tshwane’s manufacturing output.

Business Process Outsourcing & Offshoring

As the administrative as well an academic centre, the city’s knowledge and information industry is well-developed, which makes Tshwane an ideal location for BPO investments. An established BPO sector includes one of the largest shared services centre for the Barclays Africa operation The Gauteng Growth and Development Agency is developing a BPO&O Park at Hammanskraal.

The Vision and Mission

Although agriculture makes up an insignificant contribution to Tshwane’s GDP, Region 7 has some of the best farming land in Gauteng. TEDA has packaged investment opportunities including an envisaged cotton cluster and Agro-Processing Hub. The sector is strengthened by educational and research facilities such as Onderstepoort Veterinary Institute (VRI) and the Agricultural Research Council (ARC).

The Vision and Mission

Tourism

The City of Tshwane attracts business, leisure as well as shopping, medical and sports tourism. The city also has and is further developing a range of major conference facilities and hotels. Cultural and heritage sites together with facilities such as nature reserves and parks add further variety. Two key project intended to further develop the sector are the Mandela Statue and a plan to build a theme park and waterfront at Cullinan/Bronkhorstspruit.

Green Economy Automotive & Components

The automotive and components industry in South Africa is a major contributor to economic activity and export earnings, with the heart of the industry located in the City of Tshwane. This includes the Automotive Supplier Park (ASP) in Rosslyn (130ha) which is located close to key vehicle manufacturers including BMW, Ford, Nissan, Volvo and Tata, with excellent

Tshwane aims to become a resilient, resource-efficient and leading low-carbon economy by 2030. This translates into opportunities, particularly in power and electricity generation, renewables (including solar and wind technologies), green component manufacturing, related downstream services and general greener production and transport practises, green agriculture and waste management opportunities, and ecotourism.

Contact Details: 5th Floor, Anker Building, 1279 Mike Crawford Road, Centurion CBD Tel: + 27 12 358 6552 | Email: pasekar@tshwane.gov.za | Website: www.teda.org.za www.teda.org.za


CONTENTS

CONTENTS Gauteng Business 2017/18 Edition

Introduction Foreword8 A unique guide to business and investment in Gauteng.

Special features Regional overview Gauteng’s metros are driving growth and investment.

10

Unlocking the door for inner-city investment in Johannesburg 16 High-rise, low-cost accommodation could be transformative. New city-like developments are springing up in Gauteng Infrastructure spending is on the increase.

20

Going smart A partnership with a Danish city promises smart rewards for the City of Tshwane.

26

South African economy at a glance Key statistics on the South African economy.

28

Sector contents Agriculture44 Good rains bring good news for Gauteng farmers. Mining46 Gauteng is the home of mining and minerals research. Manufacturing48 Gauteng leads the nation in manufacturing.

GAUTENG BUSINESS 2017/18

4


UIF SAVING JOBS

THROUGH SOCIALLY RESPONSIBLE INVESTMENTS

The National Development Plan is a blueprint serving as a guideline to government departments and state entities on how they can play a role in government wide efforts of creating decent work, reducing unemployment and poverty. The Unemployment Insurance Fund is among the leading state entities in the implementation of the provisions of the NDP to address the slow economic growth, unemployment and poverty in South Africa. The UIF social investment mandate ensures that, additional to earning good financial returns, investments must be supportive of long term economic, social and adhere to sustainable environmental outcomes. The investments must also yield a good social return for the country. These investments have sustained 6 860 jobs of which 3 024 are permanent, 3 836 are temporary/seasonal and 195 are new jobs created during the financial year ending in March 2016.

UIF INVESTMENTS IN RENEWABLE ENERGY The UIF investments are contributing to the energy requirements of South Africa and the investments in the renewable energy sector provides a total capacity of 192 megawatt of electricity of which 117 megawatt is solar energy and 27 megawatt is wind generated electricity. The De Aar project is a shining example of the UIF energy investments and this project produces 90 megawatt of electricity and was completed in April 2016. The solar plant in the area generates enough electricity to power 15 000 houses. Another mainstay project is the Phakwe Group ran projects undertaken in the Northern and Eastern Cape.

INVESTMENT IN FOOD SECURITY The UIF investments in this regard are undertaken under the banner of the UIF Agri-Fund in partnership with Futuregrowth and Day Breaker Poultry Project. The UIF Agri-Fund has invested in 4 farms situated in Mable Hall in Limpopo. One of the farms is a cash crop farm spanning 450 hectares. The farm in the last financial year produced 235 hectares of white maize, and cotton was planted in an area covering 28 hectares. A further three farms are located in the Saron area in the Western Cape. In this project a total of 178 hectares has been used to plant grapes, 37 hectares has been used to pant citrus fruit. Furthermore, there is potential to plant an additional 92 hectares of grapes. The Daybreaker Poultry project operates in Gauteng, Limpopo and Mpumalanga and the combined projects have facilities to grow 1.6 million broiler chickens.

INVESTMENTS IN HEALTH CARE FACILITIES The UIF concluded two investments in this regard that include a BEE hospital manager, Busamed to build a private hospital in Modderfontein and Fund Manager Razorite Heatlhcare that focus on the provision of affordable heathcare facilities that include rehabilitation and sub-acute centres. The Modderfontein hospital is a 220 hospital bed with subacute facilities. This hospital is under construction. While the RH Fund Manager has concluded seven investments that include: • Busamed with four hospital facilities • HealthMed with two facilities

INVESTMENTS IN EDUCATION UIF has invested in three investments that play a role to unlock access to education. The investments were concluded with Eduloan – an organisation that provides financial support to tertiary students and South Point and Educor organisations that provide student accommodation. By March 2016, Eduloan had disbursed about R446 986.64 benefiting 34 047 students, whiles South Point provided about 10 000 student with accommodation.

UIF INVESTMENTS IN ENTERPRISE DEVELOPMENT The UIF has concluded two investments with the aim of supporting small and medium enterprises. In this regard the PIC on behalf of UIF has concluded investment deals with Musa Capital and TOSACO. The investments will support more than 250 SMMEs across various sectors inclusive of agriculture and affordable housing. Musa Capital for example has a supply chain of over 250 SMME’s that have facilitated the creation of 2 500 jobs. TOSACO investments is planning to advance capital to young black entrepreneurs who aspire to own and manage Total Filling stations around the country.

For more information: Call: 0800 843 843 or visit: www.labour.gov.za


CONTENTS Automotive and components The South African Auto Master Plan has been unveiled.

50

Food and beverages Gauteng’s big market is attractive to producers.

51

Tourism52 Major new investments in tourism are under way. Business services South African consulting is a leader in Africa.

58

Education and training The private sector is growing fast.

60

ICT62 Financial institutions are investing in ICT. Banking and financial services Newcomers are challenging the established players.

63

Development finance and SMME support Public and private funding is available for entrepreneurs.

68

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

78 GAUTENG PROVINCE N1

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

Limpopo

79

North West

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

N1

42 PRETORIA

Index80 N4

Cullinan Mamelodi

Magaliesburg

15 N14

Muldersdrift Sandton Randburg

Krugersdorp Randfontein

Mohlakeng

Bronkhorstspruit

6

N12

N1 R21

Midrand

Tembisa Alexandra Kempton Park Isando Benoni Edenvale

JOHANNESBURG

Soweto

Bekkersdal Westonaria

Roodepoort

N12

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

Kagiso

Ekangala

N4

Centurion Irene

N14

Gauteng provincial map.

Zithobeni

N4

Atteridgeville

Map

GAUTENG BUSINESS 2017/18

Mpumalan

Hammanskraal

Alberton

Lenasia N1 R59

Evaton Meyerton Sebokeng Vereeneging Boipatong Bophelong Sharpeville Vanderbijlpark

Devon

N3

Ratanda

Heidelberg

Mpumalang


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FOREWORD

Gauteng Business

CREDITS

A unique guide to business and investment in Gauteng.

Publisher: Chris Whales Publishing director: Robert Arendse

G

auteng Business 2017/18 is the ninth edition of this highly successful annual journal, that has established itself as the premier business and investment guide for the Gauteng province. Special features for 2017/18 include a focus on major new developments in the region’s metros, complemented by detailed overviews of the main economic sectors in South Africa’s most important provincial economy. The print journal is complemented by the ebook edition at www.gautengbusinessguide.co.za, and updates, business news and event listings can be found on the monthly Business South Africa e-newsletter, with a circulation of over 30 000. Global Africa Network Media (www.globalafricanetwork.com), the publisher of Gauteng Business, specialises in business-to-business print and electronic publications, producing a series of regionspecific, annual print journals. Every province in South Africa is covered by this unique range of journals and websites, complemented by a national business guidebook, South African Business.

Editor: John Young Online editor: Christoff Scholtz Art director: Brent Meder Design: Colin Carter Production: Lizel Olivier Ad sales: Sydwell Adonis, Nigel Williams, 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

Chris Whales Publisher, Global Africa Network Media Email: chris@gan.co.za

Distribution & circulation manager: Edward MacDonald Printing: FA Print

DISTRIBUTION

PUBLISHED BY

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

Member of the Audit Bureau of Circulations

ISSN 1990-6021

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 | Zimile Consulting Engineeers, Scaw Metals, Gauteng Tourism, Rebecca Hearfield, Paragon Architects, Andrew Bell, Anglo American, SciBono, Thinkstock, Wikimedia, and SA Tourism.

GAUTENG BUSINESS 2017/18

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.

8


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A REGIONAL OVERVIEW OF

GAUTENG

Gauteng’s metros are driving growth and investment. By John Young

G

auteng province covers just 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. Whereas mining used to account for Gauteng’s dominance of the regional economy, the province is now a leader in a wide range of other sectors: finance, manufacturing, commerce, IT and media among them.


SPECIAL FEATURE 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 (16.3%) and wholesale, retail, motor trade and accommodation (12.8%). The so-called 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. The provincial government’s Economic Development Plan sees this sector as one of the key drivers 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

GAUTENG BUSINESS 2017/18

12

Rand Airport (Germiston), Wonderboom (Pretoria) Lanseria and Grand Central (Midrand). The Ekurhuleni Metropolitan Municipality plans on building an “aerotropolis” in partnership with the provincial government and private investors. The intention is to link the airports of OR Tambo and Lanseria and expand logistics capabilities. 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 (ARC) is done.

Geography The province is located in the Highveld region of South Africa, approximately 1 700 metres above sea-level. It is a landlocked province, surrounded by four other provinces. The Vaal River forms a natural border with the Free State, which lies south of Gauteng, while the North West province is located to the west, Limpopo


SPECIAL FEATURE to the north and Mpumalanga to the east. The geography of Gauteng includes low parallel ridges, mountain ranges and undulating hills. Johannesburg is the capital of the Gauteng province, while Pretoria is the administrative capital of South Africa. Other major urban areas include Roodepoort and Krugersdorp to the west of Johannesburg; and Germiston, Springs, Benoni and Brakpan to the east. Soweto, renowned as a focal point in the struggle against apartheid and home to more than two-million people, is situated south of Johannesburg.

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.

Gauteng City Region

Provincial planning is increasingly being done along “Gauteng City Region” lines, whereby the primacy of economies of the cities and towns of the province Investment is acknowledged. In June 2016, the Gauteng City Region Economic Gauteng is a national leader in attracting foreign Indaba was attended by all the mayors of the region, direct investment (FDI). In the period 2014-16, the the national Minister of Finance and was addressed province attracted R66-billion. The Gauteng Growth the South African Deputy President. Gauteng and Development Agency (GGDA) has a specialised Premier David Makhura gave notice of “how we subsidiary, the Gauteng Investment Centre, which can unlock, jump-start and reignite a sustainable acts as a “one-stop shop” for potential investors and inclusive growth trajectory for key sectors of looking for advice and support. our provincial economy”. Efforts are also being made to improve the Individually, the biggest Gauteng cities contribregional economy by identifying blockages and ute to the national GDP as follows: Johannesburg shortcomings. Researchers from the universities of (15%), Tshwane (9%) and Ekurhuleni (7%). At the indaba, the following development corJohannesburg and Pretoria (through the Gordon Institute of Business Sciences) are examining em- ridors of the City Region were identified, each with ployment rates, empowerment policies and the its own industries and comparative advantages:

13

GAUTENG BUSINESS 2017/18


SPECIAL FEATURE • City of Johannesburg, Central Development

such as the provision of water, broadband connectivity, Corridor: provincial capital, finance, services, public transport, energy and the reshaping of cities to ICT and pharmaceutical industries, green and accommodate citizens in a better way than was the blue economy. case under apartheid. • City of Ekurhuleni, Eastern Development Corridor: A World Bank report has shown that a 10% increase manufacturing, logistics and transport hub. in infrastructure spending results in a 1% growth • City of Tshwane, Northern Development Corridor: in GDP. national administrative capital, automotive sector, Ekurhuleni is putting considerable resources into research, development, innovation and knowl- infrastructure improvement. With a corridor-based edge-based economy, tourism, agri-processing. masterplan, the aim is to promote industrial activity. • West Rand District, Western Development The corridors (and focus areas) are: Corridor: transitioning mining economy. A new • Thami Mnyele: transport, BRT, M&T Development diverse economy to be created around tourism and Plumbago Industrial Park (Maropeng World Heritage Site), agriculture and • OR Tambo Aerotropolis: creative sector, technology, agri-processing, Lanseria Airport City, renewable research and development, logistics energy industries. • Thelle Mogoerane: logistics, Carnival Junction, OR • Sedibeng District, Southern Development Tambo inland port, Prasa rolling stock manufacCorridor: steel industry in decline. A new economy turing facility (Prasa has signed a R51-billion conto be based on entertainment and tourism (Vaal tract with Gibela consortium to deliver 600 trains). The city budget for 2016/17 has allocated River City), logistics, agri-processing and urban R45-million for the revamping of four industrial agriculture. Opportunities for the private sector were men- parks in Labore and Wadeville. Other projects and tioned in connection with several aspects of the investments include: City Region indaba, not least of which was the ne- • Riverfields mixed use estate cessity for infrastructure investment. Neither the • Green Reef Innovation District central government nor provincial and local gov- • Badenhorst Estate ernment has sufficient resources to cover what the • Recapitalisation of the Springs Fresh Produce Market (R110-million) provincial government has estimated is needed in the Gauteng province in the 15 years to 2030 – • Infrastructure to support agri-processing and distriR1.3-trillion. A 15-year Gauteng Infrastructure Master bution of agricultural products (R80-million) Plan has been adopted but it is hoped that multiple • R269-million over three years to Township Economy Strategy. sources of funding will see the plan succeed in areas 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 R10.8billion. In 10 years Johannesburg has raised more than R100-billion for infrastructure. Tshwane is planning a series of transformative infrastructure and GAUTENG BUSINESS 2017/18

14


SPECIAL FEATURE

property developments, including expanding the Bus Rapid Transport System, Government Boulevard, Tshwane House, Times Square, the Nelson Mandela Development Corridor, the West Capital project and the African Gateway. Together with the three large metropolitan G PROVINCEmunicipalities, Gauteng also has two district municipalities. N1

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 Limpopo Sedibeng District Municipality is a prime regional asset. Towns: Sebokeng, Heidelberg, Sharpeville, Vereeniging, Vanderbijlpark West Rand District Municipality Local municipalities are Emfuleni, Midvaal and Towns: Randfontein, Roodepoort, Krugersdorp, Lesedi. The Vaal University of Technology and the Westonaria North-West North WestUniversity’s Vaal campus are located in Local municipalities are Merafong City, Mogale City Sedibeng. The Emfuleni Local Municipality (includ- and West Rand City. Both the N12 and N14 highways ing Evaton, Sharpeville, Vanderbijlpark and Vlakplaas) pass through this area which allows for a great deal Hammanskraal Mpumalanga is at the core of the Vaal Triangle, which in turn is of commuter traffic into the Johannesburg CBD. N1 GAUTENG at the heartPROVINCE of South Africa’s iron and steel indusThe West Rand is the area of Gauteng where mintry. Metal products, machinery and equipment are ing has retained its strongest presence. Large-scale made here. ArcelorMittal has been a major employer Limpopo commercial farming also takes place. Randfontein in Vanderbijlpark since 1947. Local Municipality is where the world’s deepest Cullinan PRETORIA Mamelodi Ekangala gold mine was dug. To the Zithobeni N4 N4 south, mining contributes N4 Centurion Atteridgeville Bronkhorstspruit 75% to Westonaria Local North WestIrene N1 Municipality’s economy. An N14 R21 Hammanskraal industrial park is planned to Mpumalanga Magaliesburg Midrand Tembisa N12 Muldersdrift assist in the process of diverSandton Alexandra Kempton Park Krugersdorp Randburg sifying the economy. Isando Benoni Roodepoort Edenvale N14 N12 Randfontein M o g a l e C i t y Lo c a l JOHANNESBURG Boksburg DaveytonCullinan Kagiso Germiston Wattville Mohlakeng Municipality is very much PRETORIA Ekangala Brakpan Mamelodi Soweto Zithobeni Alberton Reiger Park KwaThema Bekkersdal the economic driver of the Centurion Katlehong N12 Atteridgeville Springs Lenasia Bronkhorstspruit Westonaria Vosloorus Devon Irene district, including as it does N1 Tokoza Tsakane Duduza N17 Nigel the town of Krugersdorp. Magaliesburg Midrand R59 N3 Tembisa Muldersdrift Krugersdorp has considerSandton Alexandra Heidelberg Park Krugersdorp Randburg Evaton Ratanda KemptonIsando Benoni able manufacturing capacity Roodepoort Edenvale Randfontein Meyerton JOHANNESBURG Sebokeng Daveyton Boksburg Kagiso and has a motor-sports racing Germiston Wattville Brakpan Mohlakeng Vereeneging Boipatong Soweto Alberton Reiger Park KwaThema Mpumalanga Bekkersdal track that attracts international Bophelong Katlehong Springs Sharpeville Lenasia Westonaria Vosloorus Devon Vanderbijlpark Tokoza Tsakane Duduza drag-racing events. Tourism Nigel in the district is mostly loHeidelberg Evaton Ratanda cated within the surrounds of Meyerton N1 Sebokeng Vereeneging Boipatong Mogale City. Significant tourist Mpumalanga Bophelong Sharpeville N Vanderbijlpark attractions include the Cradle Free State of Humankind, the Magalies Motorway Meander, the Sterkfontein Main Road caves and the Krugersdorp N Railway Free State Game Reserve. N1

N1

N4

N4

N4

N14

N1

R21

N12

N14

N12

N12

N1

N17

R59

N3

N1

N3

Motorway

.

Main Road Railway

15

.

GAUTENG BUSINESS 2017/18


Unlocking the door for inner-city investment in Johannesburg High-rise, low-cost accommodation could be transformative.

S

ometimes fast, sometimes slow. Government-led at times, on other occasions initiated by private investors. That’s the story of the regeneration of Johannesburg’s inner city. It is a story that has had notable successes along the way, but progress has been sporadic and efforts have mostly been 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 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 GAUTENG BUSINESS 2017/18

vibrant socio-economic mix of high-rise, low-cost and affordable housing for our people.” Mashaba represents the Democratic Alliance which has been running Johannesburg as the leader of a coalition of parties since local government elections in 2016. A notable entrepreneur himself, Mashaba strongly believes that private businesses and developers are ready and willing to invest in downtown Johannesburg. “These are the people with the balance sheets that can turn this city into a construction site within a matter of months,” says Mashaba. The Premier of the Gauteng Province, David Makhura, is a member of the African National Congress which continues to be the majority party at provincial and national level. In his State of the Province address, Makhura said, “We are in agreement with Executive Mayor Herman Mashaba that the renewal of the Johannesburg inner city has to be undertaken urgently in partnership with the province, the city and the private sector.” Political agreement of this sort is rare, so the chances of success for Johannesburg are better than they would be in a fractious political climate.

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SPECIAL FEATURE Global trends

When the ANC led the municipality, an Inner City Roadmap underpinned longterm planning for revitalising the CBD in response to a number of firms relocating their offices to Sandton, Rosebank and Randburg. A start was made via a number of measures: CCTV security cameras were installed, the bus rapid transport system (Rea Vaya) was introduced and a number of formerly derelict or hijacked buildings were converted to blocks of flats by the Johannesburg

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”. Density is a key factor in modern urban planning. Mphethi Morojele of MMA Design Studio makes the point that “the more dense and integrated your city is the more money circulates, the more people have access to opportunity”. Morojele’s firm has worked on a number of public buildings and urban projects, including the Ellis Park Sports Precinct Parks. “Creating denser multi-functional environments is not only good for the quality of life of citizens but is also economically more efficient and ecologically sustainable,” says Morojele. “The economic argument is compelling.” 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 costeffective 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.

Housing Company (JHC). Mashaba has committed the municipality to cleaning up the city, improving billing for services, enforcing by-laws and speeding up bureaucratic processes so that investors don’t have to go from pillar to post to get something done. Reclaiming buildings from criminals masquerading as landlords is high on his agenda. Says Mashaba, “I will be assembling a team of human-rights lawyers to assist us to reclaim the inner city from criminals and slum-lords. “We are going to be the government that unlocks the door to the potential that our inner city holds for our people,” is Mashaba’s pledge. The mayor envisages the private sector putting R20-billion into projects every year. Among the things that are needed in central Johannesburg, and which private investors might provide, are rental accommodation for the so-called “Missing Middle” (people earning R3 000 to R8 000 per month) and low-rent office space to accommodate new companies and young professionals starting out. Mashaba’s vision is that Johannesburg can be “a place of home, work and play that becomes the thriving and inclusive heartbeat of our city”.

Nudges and nodes The Gauteng Growth and Development Agency (GGDA) is one of several organisations other than the City of Johannesburg which has been encouraging development in the inner city. One of the most important nudges for developers has been the tax incentives that accompany the Urban Development Zone (UDZ). Initially pegged to expire in 2012, the UDZ concession has now been extended to 2020.

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GAUTENG BUSINESS 2017/18


SPECIAL FEATURE 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 private-sector funding for affordable housing in the province since 2012. The Brickfields housing and rental development in Newtown 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. Mayor Mashaba intends fast-tracking the delivery of title deeds to the beneficiaries of the city’s housing projects. Public spaces need to be included in urban regeneration planning, as do buildings for 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. The same architects also developed a public service centre on top of a renovated building for Urban Task Force, a private property development company. The building in Hillbrow, Mimosa Square, was a famous art deco building that had been hijacked by criminals. Private developer Indluplace Properties bought nine large apartment blocks in 2015, taking its total GAUTENG BUSINESS 2017/18

buildings in the 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 high-yielding 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

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SPECIAL FEATURE

and enjoy, while buildings have been re-developed community engagement and wants the park to into multi-purpose spaces.” be a symbol of the successful city. The City of Johannesburg has identified the • Doornfontein/Ellis Park railroad corridor: planned following nodes for development: retail hub and student village. • Carlton Precinct: Johannesburg’s tallest building • Fordsburg: interior design focus; more offices and attracts tourists; undergoing revamp; Sky Rink accommodation can be built. TV and film studio being developed; conference • Newtown: cultural precinct with the potential to cater to students and university departments centre planned. • Park Station: intermodal node catering for cars, with specialised offices and spaces. buses, rail commuters and taxis; Gautrain link toLegend OR • Hillbrow, Berea, Parktown, Bellvue, Yeoville: creation of new Tambo International Airport; wide variety of users. National Roads Streetspublic open space; opportunities for Legislated CID Inner City Map and Main Roadsoffice and • Central park: JDA hasJHB worked on(CIDs) greening hotel developments. .

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urban services

GAUTENG BUSINESS 2017/18


New city-like developments are springing up in Gauteng Infrastructure spending is on the increase.

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outh African television viewers have been treated to nostalgia-tinged television advertisement which tells the story of how Sandton was transformed from farmland to the richest square mile in Africa, from a sparsely populated area north of Johannesburg to a bustling mixture of shops, offices, flats, entertainment complexes and hotels that is a key component of the city-region’s economy. With the Liberty Group among the financiers, Sandton City shopping centre, with 50 000m² of lettable space, opened in 1973 and sparked fantastically fast growth around it, mostly at the expense of Johannesburg’s central business district (CBD). A new wave of development is sweeping over Sandton again and the area’s 10 000 businesses and 300 000 residents are spoilt for accommodation choices, but city-like developments are springing up in other parts of Gauteng as well, partly as a reaction to new trends in transport (the Gautrain and bus rapid transport) and partly in response to the concept of corridor development being pursued by the City GAUTENG BUSINESS 2017/18

of Johannesburg and the Provincial Government of Gauteng. Some of South Africa’s biggest companies are building new headquarters in Sandton. Sasol has constructed its new global head office to the latest green specifications and Paragon Architects created a 4 000m² roof garden encompassing four biomes. Discovery’s new group headquarters also follows green principles. The building’s three towers offer a total of 110 00m² lettable space, developed and jointly owned by Growthpoint Properties and Zenprop Property Holdings. Ironically, Liberty’s modern headquarters are in the centre of Johannesburg, but the rejuvenation of the inner city is the subject of a separate article.

The Sandton model Something like the Sandton model is being replicated in other parts of Gauteng with existing

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SPECIAL FEATURE estates aiming to bulk up and new developments setting impressively ambitious goals. The biggest is Menlyn Maine in the eastern suburbs of Pretoria. Not only is this a huge multiuse project, it also aims to be South Africa’s first “Green Precinct”. Overlooking the main project is Boogertman + Partners Architects. Everything about Menlyn Maine is on a grand scale. Covering 315 000m² in total, the area will comprise residential apartments, 35 000m² of retail space and a hotel precinct with three-, fourand five-star hotels, a conference centre, a casino and an 8 000-seater arena. Sun International’s Times Square and Casino is a R4.2-billion project. The Capital Hotel on the Central Square Piazza offers 150 hotel rooms and 50 apartments. Among the first occupants of office space will be the Public Investment Corporation (PIC), who are building new corporate headquarters at Menlyn Maine. Connections to the Gautrain and Tshwane’s expanding Bus Rapid Transport system are boosting the new development’s popularity, with all of the retail space already fully let before it is completed.

Professional services and consulting firm PwC has chosen the Waterfall City estate near Midrand as the site for its new R1.5-billion headquarters. It will house 3 500 employees and have a total of 40 000m² of lettable space. The striking design of PwC Tower (shown overleaf, top) was conceived by LYT Architecture. The building is owned by Attacq and developed by Atterbury. The same joint venture is also behind Deloitte’s Gauteng headquarters which will put Pretoria and Johannesburg staff (3 700 in all) under one roof at Waterfall City. Aevitas are the architects. Other corporate tenants to choose Waterfall City include Group Five, Cell C and Premier Foods. Services offered include a City Lodge, a Netcare hospital (in partnership with Phelang Bonolo Healthcare Group) and a Curro-owned tertiary body, the Embury Institute. A big feature of Waterfall City is the Mall of Africa, the Atterbury Group’s 131 000m² shopping centre with 300 shops and 6 500 parking bays. Randburg could become a new centre of development if plans to extend the Gautrain are carried through. Multichoice is one of the

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SPECIAL FEATURE core businesses in the area, with a huge headoffice complex. Randburg Square has recently been converted from offices to 180 flats by Vukile Property Fund. This kind of conversion is becoming a trend, with office vacancies standing at 11% in early 2017 across South Africa. The building of their own huge new corporate headquarters by big companies exacerbates this trend. Another property fund, Emira, plans to convert some of its Rosebank office space into accommodation. Even within the new Menlyn Maine development, planners are expecting to convert some of the residential accommodation being offered in the first phase to offices when demand picks up again. Less exclusive nodes of development (or new mini-cities) are in the works near Orange Farm south of Johannesburg (Savannah) and around the capital city of Tshwane. Tshwane’s West Capital Project will be a mixeduse development comprising retail outlets, health facilities, residential accommodation (including a student village) and commercial premises. The African Gateway project is planned for an 80ha site near to the Centurion Gautrain station that will be tied in with designs for the government and Tshwane International Convention Centre precincts.

Corridors Much of the development referred to above is taking place in terms of a broader framework of development. Johannesburg’s Freedom Corridors are designed to guide future development and break down the spatial framework that apartheid created. Central to the concept is the availability of public transport which will allow residents easy access to other parts of the city including public spaces and retail or entertainment nodes. The Wynberg-Alex-Marlboro corridor is earmarked for high-density residential development which will create markets for small businesses and tourism. Another corridor, the Orange GroveBramley-Waverley-Highlands North-Kew corridor, already has a large number of small businesses and automotive repair and trade shops so the plan is GAUTENG BUSINESS 2017/18

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SPECIAL FEATURE to build on that to develop the existing strengths of the area. The efficient and popular Gautrain is proving a magnet for development, with a number of property developers targeting Gautrain stations as the site for projects. The busiest stations are experiencing daily visits of up to 60 000 commuters and on popular lines at busy times it is standing room only. More wagons are on order and line expansions are under consideration. One estimate puts the number of annual work days saved for regular commuters at 3.5-million. The Bus Rapid Transport system (Rea Vaya) has the potential to be a similar catalyst but the system is not expanding as fast as developers would like. Plans for the creation of an “aerotropolis” in the Ekurhuleni Metropolitan Municipality based on OR Tambo International Airport have long been in the works and the broad outlines of the plan are well known. In response, private developers have been buying up land along key routes such as the R21 highway.

figure of R1.8-trillion to the province’s infrastructure needs over a 15-year period. Makhura hoped that the private sector would come on board to help “reshape the spatial economy of the Gauteng City Region”.

MAJOR ROUTE OVERHAUL Gauteng’s busy highways are in need of constant work as part of the vital infrastructure that supports the country’s most important economic hub. Complex designs are the order of the day for the rehabilitation of a section of the R511 highway, a major route from Midrand towards the North West province. It also serves as a collector/distributor for the rural areas and towns along the route. The 18-month, R150million project attracted several prospective contractors who will work together with the company appointed to design the upgrade, Zimile Consulting Engineers. The project has attracted contractors of CIDB level 9CEPE due to the complexity of its nature. This project is one of the biggest projects Zimile has successfully designed. Work includes constructing crushed stone bases and lower sub-bases, importing upper sub-bases and sealing with asphalt. Rip and re-compact existing G7 subgrade to 150mm. If the engineer is not satisfied with the material, then the layer will be constructed of G6 from commercial sources. Edge beams must be constructed and all road signs and markings must be reinstated and guardrails have to be replaced, realigned or repaired. The road reserve and drainage structures must be cleaned, reinstated and repaired. The contract was issued by the Gauteng Department of Roads and Transport.

Infrastructure The Provincial Government of Gauteng spent R30billion on infrastructure between 2013 and 2016. A further R46-billion has been pledged for the three three years to 2019. In addition, Gauteng municipalities will spend R94-billion over the next five years using their city budgets. A study carried out by KMPG for the province found that spending on infrastructure resulted in additional economic activity worth R26-billion in the province and created 92 000 direct jobs. The following priorities have been identified: • public transport • broadband and free Wifi • water and sanitation • mega human settlements • new industrial nodes. The Johannesburg Roads Agency (JRA) will spend R19-million on fixing the city’s bridges, mostly by replacing bridge expansion joints, as part of its overall mandate of maintaining and building roads for the city. Speaking at the Infrastructure Funding Summit in May 2017, Gauteng Premier David Makhura said that the Gauteng Infrastructure Master Plan put the

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PROFILE

Zimile Consulting Engineers A broad range of skills are available to help deliver projects ranging from water resources to transportation and buildings.

Mission

Zimile Consulting Engineers is a 100 % HDI womanowned multi-disciplinary consulting engineering and project and construction management firm. By embracing the dynamism that is in the built environment through technological advancement, Zimile Consulting Engineers seeks to offer value-adding and innovative engineering solutions. The company offers independent technologybased professional services in the built environment. The services offered range from concept development to project commission or an involvement at a particular stage of the project life cycle. It is an engineering consulting and management practice with competence in water resources development, property development, municipal infrastructure, buildings and structures, transportation infrastructure and environmental solutions.

Shawn Gama, MD

Objectives Zimile Consulting Engineers was established with the following prime objectives: • Deliver projects that are both economically feasible and technically viable. • Deliver projects that are recognised for their quality. • Employ basic and advanced design solutions in addressing client needs. • Be socially relevant to the community. • Use labour intensive methods where possible to create work on projects we are involved in.

The company has its headquarters in Gauteng and has a strong presence nationally with major projects in the provinces of Limpopo, Mpumalanga, Northern Cape, KwaZulu-Natal and North West.

Vision Zimile Consulting Engineers is committed to be the professional service provider of choice for engineering solutions within South Africa and ultimately Africa through inspired engineering drawn from: • Innovative thinking • Simple approach to problems • Proactive attitude and • Smart application to problem solving GAUTENG BUSINESS 2017/18

Zimile Consulting Engineers undertakes to provide its clients and recipients of its services with engineering solutions which deliver infrastructure that will create a better every day for communities and the clients it serves.

Resources and structure Zimile Consulting Engineers currently has the following personnel resources: Two professional registered engineers (PhD), two civil engineers, two civil technologists, three technicians, two civil technicians/trainees, one

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PROFILE Construction Monitoring of, for example, offices, schools, recreation centres, community centres and housing complexes. Transportation Infrastructure

Including Planning, Design, Documentation, Procurement, Contract Administration and Construction Monitoring of roads, public transport facilities, airports, railways and parking areas.

The Kwa Jona Community Hall in Jozini.

Water Resources Development

secretary. The resumes of our professional and commited staff are available on request.

Including Situation Analysis, Resources Assessments, Requirements Evaluation, Hydrological Modelling, Hydraulic Analysis, System Analysis and Operations, Options Analysis and Development, Flood Studies, Demand Management, Planning and Development of bulk national and regional infrastructure.

The company is structured to optimally maximise the resources available. Most of the staff members within our company are from the previously disadvantaged communities. The objective of Zimile Consulting Engineers is to meet the needs of the client by providing proficient and specialised consulting engineering services. Communication is of the utmost importance to achieve this and we therefore appoint a senior member of the company as a leader for each project.

Waste Management

Including Community Participation, Environmental management, Integrated Waste Management, Resource Optimisation, Environmental Audits and evaluating service levels. Labour Based Construction and Contractor Development

Where communities are affected, projects are structured to allow community input and participation in the planning, design and implementation stages. Job creation and training form part of the overall strategy.

Including Development of Construction Methods focussing on Poverty Relief, Local Employment Creation, Stimulation of Local Economic Development and Local Contractor Development.

Professional services

Project Management

Zimile Consulting Engineers offers the following range of professional services and products. The company’s professional staff, local partners and shareholders have proven track records and considerable technical expertise and experience.

Including Client Liaison, Multi-disciplinary Teams Coordination, Project Cost Control, Risk Assessment and Management and Conflict Resolution.

CONTACT INFO

Municipal Services

Head office: Suite F, First Floor, 41 Kyalami Boulevard, Kyalami Business Park, Midrand 1682, Johannesburg Tel: +27 11 466 8576 Cell: +27 81 566 3598 Fax: +27 11 466 881 Email: info@zimileeng.co.za Website: www.zimileeng.co.za

Including Strategic and Master-Planning, Analysis and Optimisation, Scoping, Design, Documentation, Procurement, Contract Administration and Construction Monitoring. Buildings and Structures

Including Analysis, Design, Documentation, Procurement, Contract Administration and

25

GAUTENG BUSINESS 2017/18


Going smart A partnership with a Danish city promises smart rewards for the City of Tshwane.

 T

shwane and the Danish city of Aarhus have established a partnership to get the most out of data and information technology. The plan is to make the cities as smart as they can be. As Carsten Lützen, an architect in the Danish city’s Centre for City Development and Mobility Planning says, “Wherever it makes sense to use smart technologies, we use it.” Key focus sectors are mobility, transport and energy. Makgorometje Makgata, Tshwane’s acting head of Economic Development and Spatial Planning, points out that smart city thinking is not necessarily the central idea, rather, “Whatever programmes you do, you ensure that you incorporate smart city planning. You look at the bigger picture, for example with the traffic congestion, you look at various modalities, how can you use technology to help you.” Lützen and Makgata met in Copenhagen recently, and discussed the options for cooperation between the two cities. The first step will be the formal signing of a memorandum of understanding GAUTENG BUSINESS 2017/18

and then more specific projects will be targeted. “One of our tasks,” says Lützen, “is to facilitate links between companies in our region and in the Gauteng region. Big companies like Kamstrup and Vestas are present in South Africa, but there is a huge potential for other companies to start up.” There are possibilities for partnerships and joint ventures between universities, architects, city planners and suppliers of services. “There might be various fields of cooperation in the future. We aim to facilitate whatever makes good sense to make people connected.” Makgata was in Denmark as part of an African delegation of urban planners and architects studying urban design. He was a guest of the Danish Embassy in Pretoria. During his time in Denmark, Makgata was introduced to the Danish Outdoor Lighting Laboratory (DOLL), a 1.5km² industrial park in Copenhagen that doubles as a living experiment in street lighting and technology applications. Private companies use space at the publicly-funded DOLL to experiment

26


SPECIAL FEATURE Makgata sees potential for multiple uses in Tshwane: “On one platform you can have solutions for safety and security (including lighting), traffic management and other aspects. In waste management, instead of sticking to our schedule which says come on Monday but the bins are empty, we rather receive the signal when the bin is full. We can rearrange the traffic flow if there is an accident.” Tshwane plans to build four multi-storied parking stations on the outskirts of the inner city linked to the bus rapid transport (BRT) system. Up-todate data on car movements will help the city allocate busses. Aarhus is Denmark’s second-biggest city and is a renewable energy hub and research centre. The city hosts the head office of wind turbine company Vestas and already uses smart technology for traffic management. “In Aarhus when people arrive in the city by car, you can always find information about where to find free parking spaces,” says Lützen. He makes the point that a lot of smart city applications are invisible. “The whole traffic system, including the traffic lights, is coordinated in a smart way so you get the best flow via sensors in the roads.” Sophie Meritet, Affiliate Professor at the Paris Institute of Political Studies, argues that the particular dynamics of African cities must be taken into account when planning smart cities. African Cities quotes Meritet on Africa’s design priorities which should be “mobility and energy efficiency for cities, and this should be done by designing low-consumption urbanism”. The South African and Danish representatives agree that the focus must be on local issues. Makgata was impressed that at the DOLL laboratory: “Whatever they do, there is a focus on how you resolve urban management issues.” Lützen stresses that the Danes don’t want to impose any solutions. Rather, he says, the key question is, “Where can we make a positive change?” At national level, the Danish and South African governments have several agreements such as the Strategic Sector Cooperation on Water and the Environment. Renewable energy is another area of cooperation.

among the 12km of road and bicycle lanes. Eighty separate experiments are under way at any one time, via 156 sensors placed around the industrial park. Testing for air quality, waste removal bins that send signals to headquarters when they are full, smart parking and intelligent lighting (that reduces intensity when no cars or bicycles are around) are among the ongoing trials. Makgata thinks this kind of experimental park is something that the City of Tswhane could replicate: “We want to use that concept to resolve urban issues.” Several of Tshwane’s automotive manufacturers like BMW have already said that they are receptive to the idea. A smart city network requires three layers of infrastructure. Firstly, it needs cables and sensors and places to put them. Fortunately, cities have lots of street light poles which can carry many cables, not just cables for the individual street light. Street furniture can also be used for this purpose. Secondly, there must be data platforms and networks that can interpret the data being collected at street level. Finally, smart cities must deliver smart urban services in the form of apps (to tell drivers where parking is available as shown in the photograph on this page of a DOLL manager reading parking space data) and other valueadded services. The system does not need very high power as the individual sensors would not be communicating all day: the smart waste bin might only send a message when it is full.

27

GAUTENG BUSINESS 2017/18


SPECIAL FEATURE

South African economy at a glance Insight into the performance of the South African economy is provided through these graphical representations of key statistics. ZIMBABWE

MOZAMBIQUE

BOTSWANA

Limpopo 0.9% (7.1%)

NAMIBIA

Gauteng Mpumalanga 2.7% 2.1% (7.5%) (34.3%) SWAZI-

North West -3.6% (6.5%)

LAND

Free State 1.8% (5%) Northern Cape 2.8% (2.1%)

LESOTHO

KwaZuluNatal 2.3% (16.1%)

Eastern Cape 1.0% (7.6%) Western Cape 2.0% (13.6%)

SA GDP: Percentage of growth per province (2014) and percentage contribution to national GDP (figures in brackets). SOURCE: STATS SA WWW.STATSSA.GOV.ZA

PROVINCE

CAPITAL

POPULATION (2015)

AREA

GRP BILLION RAND

6 916 200

168 966km2

R289.9

2 817 900

129 825km2

R189.1

David Makhura

13 200 300

18 178km2

R1 305.6

Pietermaritzburg Willies Mchunu

10 919 100

94 361km2

Eastern Cape

Bhisho

Free State

Bloemfontein

Gauteng

Johannesburg

KwaZuluNatal

PREMIER

Phumulo Masualle Elias Sekgobelo "Ace" Magashule

R610.1

Stanley Mathabatha David Mabuza Supra Mahumapelo

5 726 800

125 754km

4 283 900

76 495km2

R284.2

3 707 000

104 882km2

R249.5

R271.5

Limpopo

Polokwane

Mpumalanga

Mbombela

North West

Mahikeng

Northern Cape

Kimberley

Sylvia Lucas

1 185 600

372 889km2

R79.9

Western Cape

Cape Town

Helen Zille

6 200 100

129 462km

R518.1

Snapshot of South Africa’s provinces SOURCE: INSTITUTE OF RACE RELATION’S SOUTH AFRICA SURVEY 2016 AS REPORTED ON BUSINESSTECH.CO.ZA

GAUTENG BUSINESS 2017/18

28

2

²


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).


OLD MUTUAL ENABLING POSITIVE FUTURES IN GAUTENG

Old Mutual South Africa (OMSA) is a significant participant in the South African economy and committed to enabling positive futures for all our stakeholders, especially our customers. We offer a range of financial services that span investment, life assurance, asset management, banking, healthcare and general insurance. To ensure that we have our fingers on the pulse of each of our nine provinces, Old Mutual has established leadership boards in each province to serve as links between the province and the business. These Provincial Management Boards, or PMBs, are your primary point of contact with us. Together we can ensure that Old Mutual makes a positive impact on the future of this province and its people.

MEET ROSIE WILSON Chairperson of the Gauteng Provincial Management Board

I am so proud to represent my province and bring the business, communities and opportunities together so that we can share a great positive future.

As the Gauteng chairperson I undertake to:

n Really know my province – the growth areas, investment and partnership opportunities and needs of my customers.

n Make sure we as Old Mutual are operating responsibly as good corporate citizens and working together effectively with you, our regional stakeholders.

n Help you make the right connections with our business to enable you to do great things.

ombds 4.17.10479.02

For more information, contact Rosie Wilson at GAUTENGPMB@oldmutual.com

INVESTMENTS I SAVINGS I PROTECTION

Old Mutual is a Licensed Financial Services Provider


OUR BEST ADVICE TO YOU IS: ADVICE MATTERS As custodians of the savings and investments of millions of South Africans, we know that ADVICE MATTERS when making financial decisions. How to choose the right financial adviser A good financial adviser is a professional who considers all your financial needs and goals, and has the knowledge, experience and support to give you Advice That Matters™. 1. Ask to see the adviser’s training credentials and FAIS accreditation. 2. Choose a financial adviser who represents a respected financial institution. 3. Look for a financial adviser who has access to a range of specialist support services.

NEED HELP WITH RETIREMENT AND RISK COVER OPTIONS FOR YOUR EMPLOYEES? Old Mutual Corporate provides industry-leading retirement fund solutions, pre and post retirement investments, group death, disability, critical illness and funeral cover as well as financial education and consulting services to a broad range of public and private businesses and institutions, from small businesses to large corporates. This can also be accessed via Old Mutual SuperFund, which provides a comprehensive employee benefit solution that is flexible enough to meet the needs of all types of businesses and their employees.

NEED A ONE-STOP-SHOP INTEGRATED FINANCIAL SERVICE? The Old Mutual Mass Foundation Cluster (MFC) has an integrated approach to financial services and offers customers solutions to meet their needs. This spans a transactional account called the Old Mutual Money Account, savings products, life and disability cover, as well as funeral cover, debt management solutions and

short-term insurance. Our aim is to help our customers manage their finances and to plan and provide a better future for themselves and their loved ones.

NEED DIRECT CAR & HOME INSURANCE? Old Mutual iWYZE offers affordable and reliable insurance cover to protect everything you’ve worked for. The wide range includes car insurance, home insurance as well as value-added products such as iWYZE Scratch & Dent and iWYZE Tyre & Rim Cover. iWYZE, the wise insurance choice.

NEED FUNERAL COVER? With Old Mutual’s range of Funeral Plans (Care, Standard and Comprehensive+) customers can cover themselves, their spouse/partner, children, parents, parents-in-law and extended family members. We also have a plan for single parents to cover themselves and their dependent children without having to pay for a spouse they do not have. You can choose the amount of cover you need, who you’d like to cover and whether you’d like to add additional benefits. You can get funeral cover for up to R70 000.

NEED HELP WITH SAVING FOR BOTH LONG AND SHORT TERM? To make it easy for customers to save from as little as R170 a month, Old Mutual offers the innovative 2-IN-ONE SAVINGS PLANS. This product with its two pockets, allows customers to save for their long-term goals, like their children’s tertiary education, while they have access to their funds in emergencies.


NEED HELP WITH HOLISTIC FINANCIAL PLANNING AND SAVING? Old Mutual Personal Finance specialises in providing holistic financial planning - Advice That Matters™. We offer a wide range of wealth creation and protection products. For example: OM Invest Tax-Free Savings Plan, which offers you tax-free growth without any restrictions on accessing your investment with a current annual allowance of R33 000. It’s flexible so you can choose how you want to invest – with lump sum payments or a minimum monthly investment of R350. And if you save between R30 000 and R33 000 at Old Mutual, you get up to half of your admin fees back depending on your underlying fund choice.

NEED LIFE AND DISABILITY COVER? Old Mutual Personal Finance marketleading risk protection range offers solutions in respect of death, disability and the most comprehensive illness range with clear claim definitions, including GREENLIGHT.

NEED TO PROTECT YOUR BUSINESS? Mutual & Federal are experts in agriculture, engineering and marine insurance. We offer a range of insurance solutions to protect your business against everything from fire and theft to business interruption and legal liability costs.

NEED DEBT CONSOLIDATION AND TRANSACTIONAL BANKING? Through Old Mutual Finance you can gain access to: • My Money Plan, which enables you to consolidate your debt, and choose from a range of personal loans at a fixed interest rate. • Money Account, which links a transactional (SWIPE) account and an investment (SAVE) account so you automatically invest a set amount into a unit trust every time you make a purchase with your card. *(In association with Bidvest Bank Ltd)

NEED HELP WITH INVESTING? Old Mutual Wealth is a fully integrated, advice-led wealth management business. We have a personalised and integrated approach to grow and preserve your wealth over time. Our specialist capabilities include Private Client Securities, Old Mutual Multi-Managers, Fiduciary Services and Offshore Investing. We partner with leading financial planners to provide you with a tailored lifetime wealth plan to help you achieve the best outcome in line with your objectives, goals and aspirations.

NEED A FINANCIAL PARTNER THAT MAKES A POSITIVE IMPACT ON SOCIETY? Old Mutual is deeply committed to playing a significant role in building a strong and financially inclusive South Africa. As a responsible business committed to caring for our communities, the Old Mutual Foundation addresses socio-economic challenges through investing in: • Small business development and entrepreneurship • Youth unemployment through skills training • Strategic education initiatives • Caring for vulnerable communities In 2016 alone the Old Mutual Foundation invested R25 686 172 in various community projects across our nation (actual grant funding payments made during 2016). In Gauteng the Old Mutual Foundation invested a total of R5 499 910 across its various community empowering portfolios in the region. Our staff are the hearts and hands of Old Mutual in the communities we operate in, and we support our staff volunteers through various programmes. In Gauteng, 77 organisations have received a total of R1 358 384 as a result of staff volunteering efforts.

ombds 4.17.10479.02

INVESTMENTS I SAVINGS I PROTECTION

Old Mutual is a Licensed Financial Services Provider


OLD MUTUAL FOUNDATION CASE STUDIES IN GAUTENG Sparrow FET College is a Melville-based provider of skills training coupled with life skills and job readiness training. In 2015, the Foundation funded R500 000 to the organisation to provide accredited training to 20 youth in Fluid Hose Reeling, a scarce skill on many mines. The Maharishi Institute: R1 975 000 was funded by the Old Mutual Foundation for the purposes of expanding the for-profit call centre operation Invincible Outsourcing, which provides business processing services to large corporates. The 250-seat call centre is part of a self-funding sustainability strategy by the Maharishi Institute to generate income, which in turn allows underprivileged students free access to tertiary education. The students are also required to work in the call centre during their four-year BBA degree as part of their commitment to ‘earning their education’, providing them with invaluable workplace and job readiness experience. institutions, which has been renewed for a further 12 months. CTU currently employs 80 staff members of which 27 are permanently employed. The MASISIZANE FUND focuses on enterprise development and job creation to help alleviate poverty and improve food security in South Africa. This is achieved through encouraging entrepreneurship and capacity development and financing of micro, small and medium enterprises (SMMEs). Preference is given to SMMEs with 51% plus ownership by women, youth or people with disabilities. The Masisizane Fund disbursed R147m worth of funds in 2016 through soft loans in the three high-impact sectors and facilitated the creation of 862 jobs against a target of 625 jobs. In Gauteng, R21.1 million was disbursed, providing 12 clients with soft loan financing, and facilitating 173 jobs.

MASISIZANE CASE STUDY IN GAUTENG CTU is a 100% black woman owned business that specializes in manufacturing hospital clothing, linen and medical accessories for Gauteng health institutions. The initial loan was used to acquire raw material to fulfil orders from the Department of Health Gauteng (DOHGP). A further revolving funding facility was given in 2014 to assist CTU to execute a 12-month contract to supply linen to all Gauteng health

WANT TO HELP BUILD THE PLATFORM FOR FINANCIAL INCLUSION? Financial education is the gateway to financial inclusion. The Old Mutual Financial Wellbeing programmes promote financial literacy and awareness across market segments in line with the Financial Sector Charter. We offer highly effective financial education and support programmes to help South Africans take control of their finances. Between 2007 and the end of 2016 more than 589 808 people were reached through face-to-face workshops held for communities as well as employees in the public and private sector. In 2016 more than 88 000 individuals participated in our On the Money workshops nationally, with 24 674 participating in our Fin360 programmes. In Gauteng 16 870 individuals were trained in our Old Mutual On the Money programme with 11 433 having been trained in our Fin360 financial education programmes.

For more information, contact Rosie Wilson at GAUTENGPMB@oldmutual.com


INTERVIEW

Member-oriented scheme strengthened by high reserves Christo Becker, Principal Officer of Selfmed, shares some insights on the medical insurance industry.

Christo Becker

Please provide an overview of Selfmed, including the history and size of the organisation.

Selfmed Medical Scheme was established more than 50 years ago and it is one of the older schemes in South Africa. Providing coverage for about 8 000 principal members and 13 500 beneficiaries, we are one of the smaller schemes and we focus on providing individual attention to our members. Our size allows us to do this. Could you outline the different options?

BIOGRAPHY After completing his studies in 1996, Christo worked as a paramedic in Cape Town and Port Elizabeth (where he was seconded to run the Eastern Cape operation for Netcare911). He furthered his career in healthcare when he was appointed as hospital manager for a hospital in the Netcare Group. Christo went on to manage a number of other hospitals before joining Selfmed Medical Scheme as the Principal Officer in 2014. GAUTENG BUSINESS 2017/18

Members are able to choose one of five medical aid options: SelfNET – this entry-level product is our most affordable as it covers a narrow band of benefits. 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. What is the solvency ratio of Selfmed and how does this compare to other medical aid schemes?

Selfmed has a solvency ratio of 100.37%, which is way more than the 25% mandatory requirement. We are one of the top schemes in the country in terms of our reserves. What differentiates your offerings from those of your competitors?

Selfmed has a very strong member focus. As someone who has previously worked as a paramedic and a hospital manager, I’m passionate about healthcare. All of us share the passion and want

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INTERVIEW to ensure our Selfmed members receive good healthcare. We are able to attend to requests for ex-gratia payments on a case-by-case basis and our members appreciate knowing that their health conditions are not compared to other people’s, but are evaluated individually. Furthermore, because our cash reserves are so high and our systems (administration, call centre and marketing, etc) are managed internally, members feel confident about the level of service we can provide. What is your view of the National Health Insurance (NHI) scheme and how do you think it will impact private healthcare in South Africa?

We all support the idea that healthcare should be accessible to all, however, a number of issues weren’t addressed in the White Paper. These include what the basket of care will look like and who will provide the care. This is the first phase of a 14-year implementation period and it is likely that the parameters of the NHI will change during its implementation. A specific risk for private healthcare providers relates to the introduction of a one-payer system. I don’t think people are going to be happy to take the money they usually pay into a medical aid and pay it into a centralised state-run system. Given that the UK, with its lower unemployment rate and higher number of taxpayers and health professionals, struggles to deliver the desired level of care via its National Health Service, it is unlikely that that South Africa will have the reserves to roll out a system that will rival private healthcare.

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. Increased legislation, particularly legislation relating to prescribed minimum benefits, has meant that medical schemes are under increased pressure though.

How does the South African healthcare system compare internationally?

www.selfmed.co.za

I believe that the private healthcare system in South

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GAUTENG BUSINESS 2016


KEY SECTORS Overviews of the main economic sectors of Gauteng. Agriculture

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Mining 46 Manufacturing 48 Automotive and components

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Food and beverages

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Tourism 52 Business services

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Education and training

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ICT

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Banking and financial services

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Development finance and SMME support

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OVERVIEW

Agriculture Good rains bring good news for Gauteng farmers.

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he 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 has a small landmass but in the agricultural sector, as in many other sectors, it punches above its weight. The province is home to some of South Africa’s largest agricultural companies, including AFGRI, a listed agriculture services and foods 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. The Kanhym Agrimill in Vereeniging is one of three in the company’s portfolio, which collectively processes 250 000 tons of animal feed annually. Kanhym Estates is the largest producer of pigs in the country and the company’s Middelburg farm in Mpumalanga is geared to supply the Gauteng market. 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). 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 huge 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. Cheaper imports from other areas such as the EU and Brazil GAUTENG BUSINESS 2017/18

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SECTOR INSIGHT Woolworths and Massmart have small-grower support programmes • Maize crops are expected to top 15-million tons. were already putting pressure on local producers, but the decision in 2016 to allow a potential 65 000 tons from the US into South Africa has led to several thousand workers being laid off. Good rains in the interior have decisively ended the drought in areas such as Gauteng. Farmers are expecting a bumper maize crop in 2017 of about 15-million tons, which will be enough to


OVERVIEW create a surplus to export. This is the biggest crop in more than 25 years. 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.

Provincial plans At the West Rand Economic Summit held in early 2017, plans to prioritise agriculture and agriprocessing (amongst other sectors) in the West Rand were laid out. These include: • es t ab lishm ent o f th e Westonaria hydroponic Agripark (including the latest technology) • Merafong Flora Agri-park is completed (products include tomato, cucumber and green pepper) • investment in Isigayo Milling Plant in Randfontein. A broader province-wide agro-processing summit was held earlier, bringing 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.

The provincial government is supporting 178 small-holder farmers through farmer support and development initiatives. An information technology programme is to be implemented in 2017/18. 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 in 2017/18. This will present huge opportunities for farmers to monitor their crops/livestock and increase productivity. The R50-million programme encompasses: • Gauteng Agriculture Information System • Farm Business Analysis (DNA) • Gauteng Agriculture Economy Analysis (including market monitoring) • Smart Agriculture Feasibility. Even the city centre of Johannesburg is getting in on the drive to provide food security. The Johannesburg Development Agency (JDA) is promoting roof-top garden initiatives in downtown Johannesburg. Together with the Johannesburg Housing Company (JHC) and its subsidiary, Makhulong A Matala, JDA has funded three such projects. 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. 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.

CONTACT INFO 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 Poultry Association: www.sapoultry.co.za

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OVERVIEW

Mining Gauteng is the home of mining and minerals research.

SECTOR INSIGHT Petra’s expansion plans will see diamond production soar. • The Chamber of Mines is set for a major rebranding. • AngloGold is scaling back production in Gauteng.

Boosting productivity

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he 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. 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. In the six months to December 2016, Petra Diamonds reported a 24% increase in production and a 48% improvement in overall revenue. At Cullinan the orebody 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. Petra established a Women in Mining Committee in 2015. In 2016, 43% of intern positions were held by women and 58% of scholarships were taken up by girls from local schools. GAUTENG BUSINESS 2017/18

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All miners have been trying to mine more efficiently. Mechanisation has not been a seamless success but the CEO of Anglo American told the African Mining Indaba in early 2017 that productivity improved by 40% since 2013. Mark Cutifani credited advanced analytics, the efficient use of data and integrated systems thinking for improved safety and reduced spending on maintenance. Anglo American was one of several South African companies to benefit from the uptick in global resource prices in 2017. Shares in AngloGold doubled by the end of March 2017, Sibanye’s stock improved by 124% and Harmony Gold did even better. South Deep did not do so well, but remains convinced that its mechanisation project will deliver. Because of improved prices in ferrochrome, Mogale Alloys has converted its furnaces from the


OVERVIEW production of silicomanganese to making ferrochrome. Mogale Alloys is based in Krugersdorp and owned by Afarak Mogale. West Wits Mining, an Australian junior miner, is hoping that it can mine productively in an area that has been the scene of excavations for more than a hundred years. It is calling its project the Soweto Cluster Gold Project, located between Roodepoort and Soweto.

Research Gauteng is home to most of the research and training bodies associated with mining. AECI, the explosives and chemicals company 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 private-sector 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 Universit y of the Witwatersrand School of Mining has two houses that are part-

funded by mining houses and equipment suppliers including Xstrata, Lonmin, De Beers, Anglo Platinum and Sandvik. Pretoria University has a Department of Mining Engineering, the University of South Africa offers three national diplomas in minerelated fields, the University of Johannesburg has mine-surveying courses and the Vaal and Tshwane universities of technology have engineering faculties.

Mine bodies In 2017 the Chamber of Mines announced that it would be undergoing a rebranding and examining its identity for the modern era. The Chamber’s new president, Exxaro Resources CEO Mxolisi Mgojo, will lead the chamber in identifying a new way of operating. A charter that has recently been developed, the Zambezi protocol, suggested ways of operating in Africa in a sustainable way that helps communities. Developed by the Brenthurst Foundation, the charter is likely to guide the rebranded chamber in its deliberations. Mgojo wants to see mines developing agriculture on land adjacent to projects. The Department of Trade and Industry (the dti) has set up two clusters to encourage innovation and collaboration amongst all the relevant parties in mining in South Africa. These are the Mining Equipment Manufacturers of South Africa and the South African Mineral Processing Equipment Cluster (SAMPEC), which falls under the South African Capital Equipment Export Council, a dti company. SAMPEC looks for opportunities for import replacement and local beneficiation along the value chain. A typical application in the mineral sector is the development of fuel cell technology. In a world looking for green solutions, South Africa’s abundant supply of platinum could be a big problem-solver, and a big earner for the country too. All of the bodies that oversee the South African mining industry are located in Gauteng.

CONTACT INFO Chamber of Mines: www.chamberofmines.org.za Council for Geoscience: www.geoscience.org.za Department of Mineral Resources: www.dmr.gov.za Mining Qualifications Authority: www.mqa.org.za Mintek: www.mintek.co.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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OVERVIEW

Manufacturing Gauteng leads the nation in manufacturing.

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anufacturing 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. 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 (UCW), DCD Rail and Lennings Rail Services, a division of Aveng. 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, KimberlyClark South Africa and Procter & Gamble all have significant manufacturing capacity in the area as well. Corrugated paper manufacturer Corruseal recently 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 expanding 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. There are as 35 aluminium processing firms in Gauteng, involved in both secondary processing to produce foils, cans, bars, rods and sheets, and 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. GAUTENG BUSINESS 2017/18

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SECTOR INSIGHT Lucchini’s new R200-million factory will produce forged wheels for the railways. • Scaw Metals is expanding chain production. 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


OVERVIEW of Johannesburg) and Chemical Services, which presides over 20 separate companies (including Senmin, the group’s mining chemicals company).

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 R5.8billion 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 Provincial Government of Gauteng has specific plans to bolster manufacturing capacity in the province’s western areas. 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. The plan prioritises mining and mineral beneficiation, capital equipment and machinery, agriculture and agri-processing, tourism, retail and economic development in townships. •

Pharmaceuticals South Africa’s pharmaceutical sector is worth approximately R20billion 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. A number of large pharmaceutical firms have made significant investments in South Africa. Adcock Ingram, for instance, has invested heavily in its South African operation. The private sector accounts for 80% of pharmaceutical industry sales by value and 20% by volume, while this ratio is reversed 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 amongst its facilities in South Africa.

CONTACT INFO 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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OVERVIEW

Automotive and components The South African Auto Master Plan has been unveiled.

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n the context of policy uncertainty in some areas of the South African economy, and in the year of elections to the top positions within the country’s ruling party, it was significant that a South African Auto Master Plan was announced in early July 2017, just a few days after the policy congress of the African National Congress. 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 black-owned businesses in the sector. Some of the world’s largest motor vehicle brands (including BMW, Ford, Nissan and Tata) have manufacturing facilities in Gauteng. The province is also home to a thriving 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. BMW is spending R6-billion on its facility at Rosslyn to gear up to produce the X3. It already has a high reputation as a maker of the 3 Series. The Ford Motor Company of South Africa started producing the Everest SUV at Silverton in 2016. The Nissan/Renault plant at Rosslyn, Pretoria, produces the Renault Sondero hatchback, Nissan light commercial vehicles and the Tiida and Livina models. UD Trucks, a part of the Volvo group, announced in 2017 that they will assemble the

CONTACT INFO 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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SECTOR INSIGHT UD Trucks will assemble the Croner heavy vehicle in Rosslyn. Croner heavy commercial vehicle at Rosslyn. 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 Industry Development Centre (AIDC), the City of Tshwane (CoT) and 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 national Department of Trade and Industr y’s Automotive Investment Scheme (AIS) offers from 20-30% in non-taxable grants to qualifying investments. Such incentives are a key factor in encouraging firms within the automotive industry to upgrade or expand their facilities.


OVERVIEW

Food and beverages Gauteng’s big market is attractive to producers.

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ore than half of the companies operating in the food and beverage sector in South Africa are located 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. The food and beverage sector experienced 18% growth from 1996 to 2013. Nestlé operates four manufacturing plants in the province and has invested heavily in increasing production volumes over the last 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 as a whole has taken 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, is located in Springs and produces about 650 000 broilers every week. Several beverages in AVI’s portfolio (including Ciro) are produced at the group’s Kempton Park facilities. The South African beer market is growing by 1.5% per year. Three of the seven breweries operated by SAB in South Africa are in Gauteng. AB Inbev, SAB’s new owner, will spend R2.8-billion on new facilities in South Africa and recycling plants in Gauteng. Amalgamated Beverage Industries, a subsidiary of SAB, has plants in Midrand, Devland and Pretoria.

CONTACT INFO 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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SECTOR INSIGHT Heineken is expanding its brewery.

Heineken’s fairly new brewery at Sedibeng is already undergoing expansion, with cider production set to increase. 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). Investment opportunities in this 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 (kudu, ostrich and springbok) market, locally and globally; packaging of agri-processed goods; 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; and small business opportunities within the brewing industry. GAUTENG BUSINESS 2017/18


OVERVIEW

Tourism Major new investments in tourism are under way.

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auteng is visited by more than half of the visitors to South Africa and is primarily known for business or retail tourism. The province aims to be a “Gateway to Africa” and the “Home of Champions”, a reference to the hosting of sporting events. Cultural and history tourism are very well catered for, with more than 60 museums and art galleries in the province, including the acclaimed Apartheid Museum. Other major facilities range from the Ditsong National Museum of Natural History (Transvaal Museum), Museum Africa in Johannesburg’s cultural Newtown precinct and the South African Military History Museum to the National Cultural History Museum. Kliptown in Soweto is the site of the signing of the Freedom Charter. An urban regeneration project has seen the development of the Walter Sisulu Square of Dedication. Constitution Hill is an old prison converted to house the country’s most important court, and several important old buildings have been restored around it. The provincial authorities have recently expanded infrastructure at the Maropeng Cradle of Humankind World Heritage Site to accommodate the increase in tourism numbers after the exciting discovery of Homo naledi. Paleology is the hot science of the moment and even more visitors are expected. GAUTENG BUSINESS 2017/18

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SECTOR INSIGHT Marriott International will spend R1-billion on hotels at Melrose Arch. • Sun International’s Times Square and Casino in Tshwane is a R4.2-billion project. The nearby Sterkfontein caves, owned by the University of Witwatersrand, have long been a source of great archaeological finds. The university’s own Origins Centre in Johannesburg is well equipped and provides more fascinating insight into the origins of mankind through art and science. The centre hosts superb representations of Khoi and San rock art. Another site where South Africa’s history is on display is at


OVERVIEW Freedom Park, a sprawling complex of museums, open spaces and memorials on a hillside overlooking Pretoria in Tshwane. Craft markets at Rosebank, Bruma and many other places draw large numbers of visitors, and 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. South Africa’s biggest international airpor t is OR Tambo International Airport in Ekurhuleni. 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. Gauteng is a continental leader in conferences and events. Most large hotels have conference facilities. 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. 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

CITY STRESSING We all know the benefits of stress. Stress is a driving force, it gives us clarity and energises us to focus on what must be accomplished. Stress is most beneficial when we have a low baseline stress level, with occasional spikes, but can impact our physical and mental health negatively when it remains elevated for too long. In our modern world our stresses have changed, they have become more complicated and take longer to resolve. Fewer stresses can be solved with physical activity, and our sedentary lifestyle, combined with poor diets (for good health never eat food with its own ad), and higher body fat percentages, is leading to persistent low-grade inflammation. This persistent low-grade inflammation in turn triggers or contributes to what we now call lifestyle diseases: heart disease, auto-immune disorders, depression, diabetes, cancer, chronic pain and neuro-degenerative diseases. A few tips on how to reduce lifestyle-induced inflammation: Lose excess weight Fat is a store of inflammatory agents which starts having a negative impact for body fat of over about 25% (too little fat is also bad – be sensible) Eat Omega-3 fatty acids These foods help to directly reduce inflammatory responses. Oily fish, walnuts and spinach are all good sources Exercise Physical activity helps your liver to metabolise fat, and release anti-inflammatory chemicals Stretch Extending inflamed muscles reduces inflammation almost immediately Take low-dose aspirin Check with your doctor first. Anette Kruger is Managing Director of Hoogland Health Hydro, a holistic wellness centre in Gauteng’s largest private game reserve.

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OVERVIEW 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.

Hotels A huge new multi-use development is taking shape in 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, Spa and Conference Centre continue to attract guests.

CONTACT INFO City of Tshwane: www.tshwane.gov.za/tourism Cradle of Humankind: www.maropeng.co.za Dinokeng: www.dinokeng.co.za Ekurhuleni Municipality: www.ekurhuleni.gov.za/tourism Gallagher Convention Centre: www.gallagher.co.za Gauteng Tourism Authority: www.gauteng.net Johannesburg Tourism and Convention Bureau: www.joburgtourism.com Sandton Convention Centre: www.saconvention.co.za South African Tourism: www.southafrica.net South African Tourism Services: www.satsa.com

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Another significant move in the hotel sector is the decision by Marriott International to develop Marriott branded 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.


CONFERENCE

BANQUETS

LUXURY SUITES

EPSOM BISTRO

CHIEF’S BOMA

MOWANA SPA

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

Just north of the fast-paced business world of Sandton lies the 258 bedroom Indaba Hotel, Spa & Conference Centre. It is a compelling blend of business-like efficiency and relaxed country atmosphere within close proximity of the International Airport making the Indaba perfect for groups and leisure travellers. The hotel features 24 multi-purpose conference venues ranging from Executive Boardrooms to large Banquet Venues seating up to 500 people. Boasting 2 world class restaurants and the renowned MOWANA Spa, the Indaba Hotel is sure to meet your business and leisure requirements.

Phone: +27 11 840 6600 | Email: indaba@indabahotel.co.za Website: www.indabahotel.co.za


Coupled with easy and convenient access to all main highways, O.R 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 people. 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 tastes with over 120 Africaninspired dishes 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, everyone is sure to find their favourite. Well-known for the lavish full South African Breakfast buffet which is served daily from 06h30 to 10h30, the Epsom Terrace Restaurant also boasts an evening Grill Menu which will delight even the most demanding gourmet’s exacting standards. A traditional Carvery Lunch with live music can be enjoyed every Sunday - Bookings essential for this popular family outing. For the ultimate pamper, the MOWANA SPA is a wellness sanctuary set in the tranquil bushveld gardens of the Indaba Hotel. 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 African Rejuvenation with the “Mowana Makoya Journey” or indulge your senses with the “Mowana Time-Out Pamper”. The Indaba Hotel - 15 minutes from Sandton ... a million miles away.


OVERVIEW

Business services South African consulting is a leader in Africa.

SECTOR INSIGHT Consultants advise on a broad range of issues. • American and European firms have offices in South Africa.

M

anagement consulting is an industry that has a history dating back to the early 1900s. Companies such as McKinsey and Co and Booz and Hamilton were formed in 1930 and were based in America. It was only in the early 1980s that management consulting started developing in South Africa. In the early 1990s the sector experienced a boom, particularly after the first democratic elections. Most of the management consulting companies originating in America and Europe opened offices in South Africa. These companies were used to align other companies with international operating standards. Management consulting is defined by Barkas and Wilkenson as “the provision of objective and independent advice by qualified people in order to identify or analyse management problems or opportunities”. The range of services offered by consultants varies widely but typically seeks to expose clients to the best practices prevalent in an industry. Services include process measurement, change management, development of strategies, analyses of operational efficiency and customer experience, coaching, assistance with the implementa-

ONLINE RESOURCES Chartered Institute of Management Consultants: www.cimcglobal.org Institute of Management Consultants and Master Coaches of South Africa: www.imcsa.org.za South African Institute for Management: www.saim.co.za

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tion of new technology, business process mapping and business process reengineering. The Southern African management consulting market was estimated to be worth R15.6-billion in 2014 (Source: Information Services). South Africa represents about 75% of Africa’s consulting market, but growth in the sector has been somewhat quicker in other parts of Africa in recent years. The management consulting market reflects the broader outlines of the South African economy in this respect. Today, many small management consulting companies offer consulting to a niche set of customers. Companies such as PricewaterhouseCoopers, Deloitte, Accenture, McKinsey & Company, Bain & Company and EY are amongst the biggest consulting firms operating in South Africa. With thanks to Draw the Line Business Solutions.


FOCUS

Assisting businesses to do business better Management consulting firm offers a wide range of services and a strong focus on delivering quality.

F

rom many years working in various organisations the owner has come to realise the importance of having good quality processes, procedures, policies, well-designed forms and technology. All of these enablers lead to an organisation operating in a structured manner and providing excellent customer service as well as being highly effective and efficient. Through investment in organisations who have the skill set to, any company can yield a high return through using their resources optimally. We assist businesses with services such as Business Process Reengineering, Business Process Mapping, Business Analysis, Process Measurement, Enterprise Architectural Design, Project Management, Change Management, Testing, Implementation and Customer Experience Analysis.

Ursula Henry

Vision

Mission

To be recognised as a leading, independent Management Consulting company in Africa.

To delight our customers in everything we do. To continually strive to assist businesses with improving their effectiveness and efficiency so that businesses can do more. To be aware of our environment. To build lasting relationships with all businesses in all industries. To employ people who are passionate about making a difference.

Values Care – We take care of our employees. Our employees care for our customers. We take care of our environment and our community by assisting through volunteering and supporting organisations in need of assistance. Respect – We treat everyone with respect. Integrity – We are honest and act ethically when we deal with our customers and our fellow employees. We want to build our reputation through our behaviour. Focus on Delivery – We focus on delivering high-quality service and products to our customers. Learning and Sharing – We learn by actively taking part in projects. We share what we learn and we train our staff so that they are empowered to be able to move. Building Relationships – We build relationships with our customers and with our peers by being friendly and polite. Customer Service Excellence – We provide our customers with service that makes them smile. We strive to solve their problems effectively and efficiently.

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CONTACT INFO Owner: Ursula Henry Cell: 082 330 0517 Email: ursula.henry@ drawthelinebusiness solutions.co.za Website: www.drawtheline businesssolutions.co.za

GAUTENG BUSINESS 2017/18


OVERVIEW

Education and training The private sector is growing fast.

SECTOR INSIGHT Gauteng schools are set to receive 1 200 laboratories and 470 libraries. • Curro will open two ter tiar y campuses in 2018.

W

ell-regarded research units, top-ranked business schools and a large number of universities, universities of technology and colleges are located in Gauteng, making the province a hub of educational excellence. The new mayor of Ekurhuleni has called for his city to have its own tertiary institution as well. 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 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 GAUTENG BUSINESS 2017/18

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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. The provincial government has set a target for 2019 of spending R1-billion on higher education bursaries.


OVERVIEW Schools 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. A particular library will be built because of the dedication of some young community activists. When protesters burnt down the township’s library in 2015, members of the Mohlakeng Youth Movement decided that books were still needed so they started the Mohlakeng Underground Library, operating from a shack. The project has grown to become a literacy project and assistance is also offered with homework. The provincial government and the Rand West City Municipality will jointly ensure that a new library is built for the community by June 2019. Pupil numbers suggest that even more schools need to be built: in 2016 Gauteng schools accepted two-million pupils. A growing trend is towards private schooling. Some of the new private schools are small and modest but the sector is also attracting investors and the two biggest brands are growing fast. JSE-listed ADvTECH has 24 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

The administration building at Pretoria University.

advertising school (Vega), a chef’s academy (Capsicum) and a Varsity College. Curro Holdings is also listed on the JSE and is rapidly growing its portfolio of schools. In Gauteng, Curro already has 34 schools. Branching out into the tertiary sector is next on the agenda, and this will happen partly through acquisitions, such as that of Curro Embury College. The tertiary division will list separately. Two tertiary campuses will open in Johannesburg and Pretoria in early 2008. 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 in the years to 2019. These will be called Meridian Independent Schools.

CONTACT INFO 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 Southern African Regional Universities Association: www.sarua.org

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OVERVIEW

ICT Financial institutions are investing in ICT.

G

auteng 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. Spending on ICT in South Africa is expected to reach R266-billion in 2017, according to market analyst Gartner, quoted in ITWeb. Software spending is driving growth. Among the biggest spenders on ICT are banks and other financial institutions. The Big Four banks spent R30-billion in the year to June 2016, with Standard Bank laying out R14-billion in that period (Tech Central). The new mayor of Johannesburg, Herman Mashaba, recently announced that, “We will be aggressively expanding the rollout of our free Wifi network across the city.” The City of Tshwane’s free service TshWi-Fi is available in 780 zones such as libraries, educational institutions, clinics and libraries. Premier David Makhura announced in 2017 that more than 1 500km of network fibre has been rolled out in Gauteng since 2014. A total of 3 000 access sites should be connected by 2020. The Small Enterprise Development Agency (Seda) runs the SoftstartBTI ICT incubator in Midrand and Tuksnovation, a high-tech incubator, at Pretoria University. Seda is an agency of the National Department of Small Business Development, and gives non-financial support to entrepreneurs. The National Electronic Media Institute of South Africa (NEMISA) was originally created to create skills for the broadcasting environment, but it is now being integrated with eSkills Network and the Institute for Satellite and Software Applications (ISSA) to form Ikamva National e-Skills Institute (iNeSI).  The focus is on developing e-skills capacity in South Africa by creating partnerships that guide e-skills initiatives.  The head office is in Johannesburg.

CONTACT INFO Department of Trade and Industry: www.dti.gov.za Technology Innovation Agency: www.tia.org.za Ikamva National e-Skills Institute: www.enesi.org.za Independent Communications Authority: www.icasa.org.za State Information Technology Agency: www.sita.co.za

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SECTOR INSIGHT Johannesburg and Tshwane have free Wifi zones. The Universal Service and Access Agency of South Africa (USAASA) is providing connectivity for schools in five provinces, and smart devices have been distributed to schools. A number of 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 • Technology Venture Capital: managed by the Industrial Development Corporation; commercialisation of innovative products, processes and technologies.


OVERVIEW

Banking and financial services Newcomers are challenging the established players.

SECTOR INSIGHT Three new banks and three new stock exchanges will offer more choice. • Gap insurance is an innovative new product.

Stock exchanges

G

auteng is the heart of South Africa’s banking and financial services industry. Africa’s largest stock exchange and the head offices of many banks and investment houses are located in Gauteng. The financial-services industry contributes 21% to the province’s gross domestic product. So large are the operations of Gauteng’s banks that some of them have campuses in downtown Johannesburg, rather than offices. As they grow bigger still they are building in Sandton and beyond. 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. South Africa is an ideal stepping stone into Africa and several international concerns have head offices in Johannesburg. These include Bank of China, Bank of Taiwan, Citibank, Deutsche Bank AG and HSBC Bank. Add to that the Reserve Bank and the JSE, Africa’s largest stock exchange, and one has a sense of the importance of this sector.

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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 Exchange (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. GAUTENG BUSINESS 2017/18


OVERVIEW 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) expects to start trading in the second half of the year. 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.

Banks No fewer than three new banks are set to make their debuts on the South African market. On top of that, life insurer MMI Holdings is entering a partnership with African Bank to enable it to start taking deposits and loaning money. It intends to create a R10-billion loan book. All the new banks come from state enterprises: Ithala, Postbank and a Human Settlements Development Bank. The Ithala Development Finance Corporation is an enterprise funder in KwaZulu-Natal that has applied for a banking licence. In 2016 Postbank (part of the South African Post Office, SAPO) received a first-level licence. Once a board of directors has been appointed and a company formed, the Reserve Bank is likely to grant the full licence. The current Postbank focusses on taking deposits and savings accounts. GAUTENG BUSINESS 2017/18

Postbank has secured a R3.7-billion loan to enable it to open its own loan book. Three state entities are merging to create the new Human Settlements Development Bank: the National Housing Finance Corporation, the Housing Loan Fund and the National Urban Reconstruction and Housing Agency. The focus will be on financing housing for poorer households and for large state-funded housing projects. Part of the drive is to integrate cities better and to combat the legacy of the spatial divide that apartheid left behind. Private sector investment will be sought. For many decades, South Africa had a retail banking Big Four – Standard Bank, Nedbank, Absa/Barclays 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. Merchant banking and investment banking are the most competitive sectors with companies such as BoE Private Clients, Rand Merchant Bank and Investec prominent. Investec, a company which engages with capital markets, private banking and asset management, is dual-listed in Johannesburg and London. The insurance market has become more varied over time, with a greater variety of products now available to more market segments, including middle-income earners. A typical example of a specific product that is responding to new realities is Old Mutual’s iWYZE medical gap cover, designed to pay the difference between what a medical aid scheme is willing to pay and what the hospital or doctor is charging.

CONTACT INFO Auditor-General South Africa: www.agsa.co.za Banking Association South Africa: www.banking.org.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 Post Bank: www.postbank.co.za South African Institute for Chartered Accountants: www.saica.co.za

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Green shoots

give hope for growth Research done by Standard Bank’s Commercial Banking division points to some positive medium-term indicators for the provincial economy.

South Africa’s national economy is under significant pressure, with the outlook for jobs and growth uncertain, but green shoots in the economic heartland of Gauteng show that a growth rate of close to 2% can be achieved over the next five years.

strengthen. But that was before ratings agencies downgraded the country’s sovereign debt to junk, leading to much weaker prospects and cuts in GDP outlooks by many analysts. However, the Standard Bank research – which comes after the downgrades were announced – shows that all sectors in Gauteng are expected to perform well in a forecast period of 2016-21, with the exception of the mining sector (which is anticipated to further contract by -1.4%).

Standard Bank’s Commercial Banking division has conducted extensive research into the sectors and geographic trends in the Gauteng regional economy, providing key insights into major trends that will matter for business activity going forward.

“The slowdown in mining-based returns and prospects will continue to bite, but promising results are earmarked to come from remaining sectors of the economy which resonates with anticipated growth projections at a national scale,”

It was announced in the February Budget that the South African economy, which grew by an estimated 0.5% in 2016, is expected to grow by 1.3% in 2017 and 2% in 2018 as economic conditions

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PROFILE says David Pike, Standard Bank Head: Commercial Banking for Gauteng. The data shows that the growth rate achieved over the five years to 2016 of 2% can be maintained over the next five years despite all the challenges. While manufacturing grew just 0.6% in Gauteng from 2011-16, it is expected to rise by 1.4% in the upcoming period to 2021. Another surprise is that while the electricity, gas and water sector fell 1.5% five years ago, it is expected to lift by 1.3% now. And while agriculture declined 1% from 2011-16, it is expected to advance by 2.1% over the corresponding fiveyear period. “There will certainly be significant challenges ahead, especially from the consumer perspective and we forecast wholesale, retail trade, catering and accommodation to rise 1.8%

in Gauteng from 2.4% in the prior five years and for construction to drop from 2.8% to 1.9% in the upcoming period,� says Mr Pike. Businesses in the region should not rush in with their eyes wide shut and would need to ensure they are well placed to take advantage of the growth shoots that do exist.

Green shoots in the economic heartland of Gauteng show that a growth rate of close to 2% can be achieved over the next five years. GAUTENG BUSINESS 2017/18

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PROFILE Gauteng is a driver for the national economy – it is estimated in a Brand South Africa report to contribute an estimated 34% to the national economy despite only occupying 1.4% of the country’s land area. “Notably, if Gauteng can achieve 1.9% growth over the next five years, our current forecast is for the national economy to also achieve 1.9%,” says Mr Pike. Entrepreneurs, investors and businesses all have a fabulous opportunity – but having the knowledge at their fingertips will be key.

“Our deep dive into these statistics has picked up some significant trends that all businesses need to be aware of. Each sector and geography has its unique dynamics but if you break it down you can truly understand what is likely to happen. Just look at agriculture in Pretoria, for example: our research shows that activity fell 3.5% in the previous five years but is now forecast to increase by 1.8% in the following five years,” says Mr Pike.

“It is no use getting despondent and thinking profits cannot be made or expansion cannot be achieved. With the right partners by your side with the right strategic intent, amazing success can still be achieved over the next five years,” Mr Pike concludes. Website: standardbank.co.za

With the right partners by your side with the right strategic intent, amazing success can still be achieved over the next five years.


OVERVIEW

Development finance and SMME support Public and private funding is available for entrepreneurs.

N

ational government has created an agency to spur the development of SMMEs, the Small Enterprise Finance Agency (Sefa), which falls under the Industrial Development Corporation. The IDC provides finance across a range of sectors from agriculture to tourism. The Small Enterprise Development Agency (Seda) is an agency of the National Department of Small Business Development, and gives nonfinancial 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. The Masisizane Fund offers loan financing at good rates and training through its 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 or something similar. 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. 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

CONTACT INFO Gauteng Growth and Development Agency: www.ggda.co.za Industrial Development Corporation: www.idc.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 Unemployment Insurance Fund: www.labour.gov.za

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SECTOR INSIGHT The Gauteng Provincial Government spent R6-billion in townships in 2016.

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. The Gauteng Provincial Government spent R6-billion in townships in 2016, in a deliberate attempt to get those areas into the mainstream economy. A total of 2 800 township enterprises are now selling goods or services to the government. The goal of the provincial government, with its partners Harambee Youth Employment Accelerator and various private sector companies such as Microsoft, is to reach half-amillion young people through the Tshepo 500 000 programme by 2019. The City of Johannesburg has established seven SMME hubs where office space, Wifi and advice and training are available.


Language barriers. 9.8 million injury free man-hours. Minimal infrastructure. Political instability. A 7.2 Mtpa gold plant delivered 3 months ahead of schedule. Impossible? Not for DRA. Kibali Gold in the DRC produces 600 000 oz of gold every year. Acknowledging the community, 4000 homes were saved and relocated. Started in 2012, completed in 2014, three months ahead of schedule with exceptional safety statistics, under budget for our client.

DRAglobal.com

Extraordinary Possibilities


2017 marks the tenth anniversary of the Masisizane Fund. Established as an initiative of Old Mutual South Africa in 2007 following the closure of the Unclaimed Shares Trust, the Fund has made good inroads in fulfilling their mandate to contribute meaningfully to employment creation, poverty eradication, the reduction of inequality, economic growth and attraction of investments. In 2016, loans to the value of R26.3 million were approved for the Gauteng region alone, creating 201 jobs. 65.8% of these loans were given to male owned businesses, 29.7% to female owned and 4.5% to youth owned businesses. The Masisizane Fund offers tailored integrated and flexible financial and non-financial solutions including financial education, capacity development and mentoring support. “We take time to fully understand each enterprise’s needs, challenges and characteristics. The understanding and the partnerships it creates with small business owners adds value and offers innovative enterprise finance models aimed at ensuring long-term enterprise growth, sustainability and development impact� says Nandi Gaqa, Provincial Manager, Central Region.

Nandipa Gaqa, Provincial Manager Central Region

A Masisizane Client Competition was launched in the second half of 2016 to celebrate outstanding achievements by our clients. This competition comprises of five provincial events followed by a national event in July 2017 where we will celebrate our 10th anniversary and announce the overall national winner of the competition. CTU Manufacturing Co-operative (CTU) left the 2016 Gauteng competition with three of the five awards. CTU Manufacturing Cooperative won the Best Female Owned Business, Best Employer of the Year and Business of the Year awards. CTU was registered in 2009 and is a business 100% owned by black women. The business is managed by Nonhlanhla Mphachoe and Busisiwe Bhengu who are seasoned business women and operates from premises in Doornfontein in downtown Johannesburg. CTU specialises in manufacturing hospital clothing, linen and medical accessories. Their range includes bed sheets, night dresses, theatre gowns, lab coats, pillow cases, maternity tops, towelling gowns and pyjamas amongst others. The business has sustained and built a


MASISIZANE FUND reputation for itself over years due to the directors’ ability to execute orders. CTU initially received a loan from the Masisizane Fund in 2013 to purchase the raw material required to execute orders. In 2014, the loan was approved for a revolving facility to enable CTU to execute a 12 month contract. As a result of this funding, CTU could increase its revenue and more than double its number of employees, sewing machines and profitability. Achievements like these make CTU a truly worthy winner of these three awards. The remaining awards were won by GTL Food Manufacturing & Distribution (Pty) Ltd for Entrepreneur of the Year and The Coffee Stop Shop Rivonia for Best Youth Owned Business.

Busisiwe Bhengu and Nonhlanhla Mphachoe in the factory at CTU.

Zizipho Nyanga, CEO Masisizane, Lorato Phalatse and Mlulami Manjezi, both Board Members of Masisizane, Nonhlanhla Mphachoe and Busisiwe Bhengu, directors of CTU and Tumi Sefolo, Sector Head Franchising at Masisizane.

Kokstad Flagship Office

039 727 3100

NDlamini2@oldmutual.com

Eastern Cape

043 704 0116

PMlilo@oldmutual.com

Gauteng (incl. North West, Free State)

011 217 1746

NBoqo@oldmutual.com

Western Cape

021 509 5074

ASnyders@oldmutual.com

KwaZulu-Natal

031 335 0402

SNkosi4@oldmutual.com

Limpopo (Incl. Mpumalanga)

015 287 4279

BSemenya@oldmutual.com

An initiative of the

Old Mutual is a Licensed Financial Services Provider

Group

OMBDS 01.2017 L10097

The Masisizane Fund can be contacted at:


PROFILE

The Small Enterprise Development Agency (Seda) “Together Advancing Small Enterprise Development.�

The Small Enterprise Development Agency (Seda) is the implementing agency of the Department of Small Business Development (DSBD) responsible for providing non-financial support to small, medium micro enterprises as well as aspiring entrepreneurs in South Africa. Since its inception in 2005, Seda has been assisting small businesses which possess the highest potential for job creation and empowerment. Notwithstanding this, Seda continues to give the very best support and service to all entrepreneurs and businesses requiring assistance. Seda has designed and developed a number of High Impact Programmes (HIPs) targeted at addressing the needs of small and medium businesses. The success of the programmes depends to some extent on establishing sufficient value-adding partnerships with like-minded entities. The acquisition of additional resources will invariably result in a higher impact in business development and greater impact within the region.

Last Drop Juice Pty Ltd.

Supplier Development Programme (SDP) This programme aim to strengthen the performance of supplier firms by enabling them to acquire the skills and capacities they need to make them compete locally and globally. Supplier Development presents several advantages to the buying firm as well as to suppliers and these yield benefits to the economy. The goals of this programme include the capacitation of SMEs to have the ability to do business with corporate-sector entities, provide a platform to access potential business opportunities provided by big enterprises, improve growth and diversification through procurement and, lastly, facilitate localised supply chain.

Seda Gauteng offers to its prospective partners 11 years of operations experience, and an established network comprising three branches: Johannesburg Branch, Tshwane Branch and Ekurhuleni Branch as well as six co-location points in the Tshwane District located in Atteridgeville, Olievenhoutbosch, Mamelodi, Sekampaneng, Bronkhorstpruit and Mabopane. Inherent in the organisational culture is the drive towards finding new and cost-effective ways of improving small businesses and the environment within which they operate. Some of Seda Gauteng choice offerings are:

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PROFILE

Export Development Programme This programme aims to develop and generate export-ready small enterprises that are globally competitive and able to grow markets both locally and internationally. The programme is designed to help small enterprises in South Africa to acquire and apply pracLi Real Estate. tical skills in developing their export capabilities. It consists of the following components: export assessment, export training, export development and promotional support.

Manufacturing Support Programme The programme was developed in line with national government’s Industrial Policy Action Plan (IPAP) and the New Growth Path. Furthermore, the programme is explicitly responding to the specific current challenges, needs, skills and capabilities of the country’s SMEs in the manufacturing sector; it assists manufacturers to be competitive and provides backward and forward linkages. The objective of the programme is to assist SMEs in equipment upgrade (through partners); productivity improvement; increasing competitiveness, improvement of processes (in all spheres of the business); and strengthening their business growth and performance.

Women Enterprise Coaching Programme The focus of this programme is to assemble a group of women-owned enterprises and take them through coaching by business coaches. These coaches provides guidance, advice, support and encouragement and help women business owners to manage and grow their businesses in areas such as sales, marketing and team-building.

CONTACT INFO Tshwane Branch: Caren Coetzee, Branch Manager Physical address: 536 Francis Baard, Arcadia Tel: +27 12 400 8892 Email: ccoetzee@seda.org.za

Where to find Seda Gauteng Provincial Office: Mr Colin Leshou, Provincial Manager Physical address: No 33 Hoofd Street, Forum5, 2nd Floor, Braamfontein CONTACT INFO Tel: +27 11 408 6520 Email: cleshou@seda.org.za

Ekurhuleni Branch: Thabang Mpalami, Branch Manager Physical address: The Business Place, Cnr Monument and Voortrekker roads, Kempton Park Tel : +27 11 973 9640 Email: tmpalami@seda.org.za

Joburg Branch: Thabo Sibeko, Branch Manager Physical address: No 33 Hoofd Street, Forum5, 2nd Floor, Braamfontein Tel: +27 11 408 6500 Email: tsibeko@seda.org.za

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Randburg Chamber of Commerce and Industry Promoting and representing businesses in the economic powerhouse.

Linda Blackbeard, RCCI CEO

What is the geographic footprint of the Chamber? The areas we cover are: Randburg, Sandton, Fourways, Lanseria and Midrand. 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 in the municipal local and government levels, in defending business in areas of poor decision-making or unintended consequences of various acts that are passed.

BIOGRAPHY Linda Blackbeard ran her own interior design and hospitality businesses before taking up the task of 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 an elected council member of the South African Chamber of Commerce and Industry. GAUTENG BUSINESS 2017/18

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. 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, etc. 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.

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LINDA BLACKBEARD COURTESY OF OCDMP, A DIVISION OF OWONDO CORPORATE

What does the Chamber do to support SMMEs?


INTERVIEW Are your members drawn from very differ- government? Do we have the correct connectivity ent sectors, or is there a concentration on to be able to assist you in the areas of your need? types of businesses? These are questions we continually ask to improve If you’re a registered business you need to be a mem- our offering. Most of all it’s the members who need ber of the Chamber, there is no particular industry to dictate the integrity of our benefits list and not the sector. As long as it’s a company and business with people sitting in the chambers. The businesses out integrity and it is legal, we will support you and try there need to tell us what their needs are. This way to help you wherever we can. we can provide a better service for them. Would it be correct to say that the area covered by the RCCI has some of the country’s most dynamic businesses?

The areas we cover form the economic powerhouse of South Africa. I cannot stress strongly enough that the actual business hub of Sandton alone is responsible for decision-making (on signing powers and approval) of a large number of business transactions taking place across the country. Are there particular challenges? There are challenges, Randburg Chambers is – for the age of the Chamber – not very well known. Our biggest battle is to create the awareness that we’re serious about wanting to help you, serious about moving you forward, connecting you, engaging on platforms that bring service to the businesses. By that I mean: are we sitting on the right committees? Are we connected to the right people at the City of Johannesburg? Are we dealing at the right levels of

What does the future hold? With all the amazing initiatives planned and in the process of actioning - including our unique digital custom-designed Certificate of Origin programme for export. Businesses and members can look forward to renewed focus, positive opportunities, and facilitation in the SADC region for business growth and opportunity. We are also proposing a name change to incorporate the very large area we now service.

CONTACT INFO Physical address: Unit G8 Atrium Terraces, 272 Oak Avenue, Randburg, Gauteng 2194 Tel: 086 101 9218 Fax: 086 212 4407 Email: admin@rcci.co.za Website: www.rcci.co.za

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Advancing economic transformation Gauteng Black Management Forum Provincial Chairperson, Langalethu Manqele, outlines the BMF’s goals.

What are the main objectives of the Black Management Forum (BMF)?

Langalethu Manqele, Black Management Forum Gauteng Provincial Chairperson

The BMF is a thought leadership and a business lobby organisation focused on the development of managerial leadership and advancement of socio-economic transformation in South Africa. The BMF serves as the leading voice of professionals and executives – primarily black people – in corporate South Africa on matters of workplace transformation. Our focus has evolved over time to encompass economic development and trade policy with a strong focus on the creation of black-owned and managed enterprises. Are there particular focus areas?

BIOGRAPHY Langalethu Manqele is the Manager in Equities & Equity Derivatives at the Johannesburg Stock Exchange (JSE), having previously worked for Nedbank CIB Markets as a Senior Manager. Langa chairs the Editorial Committee of the African Leader, a bi-annual publication of the BMF. He is a member of the dti B-BBEE Advisory Council Sub-Committee on the Preferential Procurement Policy Framework Act. He holds Bachelors Degrees in International Finance and Investments, from CIDA City Campus. GAUTENG BUSINESS 2017/18

The BMF in Gauteng is currently tackling three areas. The first one is an Enterprise and Supplier Development through a “Routes to Markets” strategy. At a policy level, we have partnered with the Centre for Competition and Economic Development (CCRED) to review and make recommendations on Competition, Trade and Industrial Policy. The second area is that of Capital Markets; this is our response to the challenge of capital and therefore of B-BBEE Equity Ownership. We are in talks with the JSE and the other newly formed small stock exchange, ZARX. We are negotiating MoUs with both exchanges that will commit them to helping emerging black businesses raise expansion capital and, in the process, create more black-owned and managed listing sponsors and stock-broking firms. The third and final area of focus is Employment Equity. This is targeted at arresting the decline of black executives as reported by the Jack Hammer Report in 2015 and the latest Report of the Commission of Employment Equity. What are some of your most recent achievements? We recently held a successful Policy Conference on the role of industrial, competition and trade policy in the achievement of inclusive growth. The dti and the European Union have endorsed the BMF to receive EUR100 000 funding through the EU-SA Dialogue Facility Fund to conduct research on the Impact of Foreign Direct Investments from the EU in South Africa.

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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.”

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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 GAUTENG BUSINESS 2017/18


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 & 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 & 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 2017/18

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 2017/18


LISTING

INDEX Black Management Forum (BMF)���������������������������������������������������������������������������������������������������������������������������������������������76 DRA Projects���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 69 Draw the Line Business Solutions������������������������������������������������������������������������������������������������������������������������������������������ 59 Ekurhuleni Metropolitan Municipality�������������������������������������������������������������������������������������������������������������������������������� IFC Hoogland Health Hydro............................................................................................................................................................. . 55 Indaba Hotel, Spa & Conference Centre����������������������������������������������������������������������������������������������������������������������������� 56 Masisizane Fund�������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 70 Nedbank��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 29 - 35 Old Mutual���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 36 - 39 Randburg Chamber of Commerce and Industry (RCCI).................................................................................... ....... 74 Selfmed���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 40, OBC Small Enterprise Development Agency (Seda)�������������������������������������������������������������������������������������������������������������� 72 Standard Bank................................................................................................................................................. 7, 9, 65 - 67, 77, IBC Tshwane Economic Development Agency (TEDA)������������������������������������������������������������������������������������������������������� 2 Unemployment Insurance Fund (UIF)...................................................................................................................................... 5 Zimile Consulting Engineers ..................................................................................................................................................... 24

GAUTENG BUSINESS 2017/18

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Gauteng Business 2017-18  

The 2017-18 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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