Issuu on Google+

2013 EDITION

GAUTENG COMPANIES THE GUIDE TO BUSINESS AND INVESTMENT IN GAUTENG PROVINCE

www.gautengcompanies.co.za | www.frontiermarketnetwork.com

Absa Business Bank understands business in Gauteng

Absa Bank Ltd. Reg No 1986/004794/06. Authorised Financial Services Provider. Registered Credit Provider. Reg No NCRCP7.

Supporting development in KZN

The Absa Group (“Absa”) is listed on the JSE Limited and is one of South Africa’s largest financial services groups, offering a complete range of banking, bancassurance and wealth management products and services. Absa’s business is conducted primarily in South Africa and on the African continent, where it has equity holdings in banks in Mozambique and Tanzania. Absa is a member of Barclays Bank PLC, which holds a stake of 56,6% in the Group. Barclays is an international financial services group, engaged in retail and commercial banking, credit card issuing, investment banking, wealth management and investment management services. Absa Business Bank The South African economy and the sustained prosperity of its people depend on the creation of new wealth and the growth of sustainable businesses in the commercial sector. Absa Business Bank is well positioned to deliver superior products and services to this important

sector of the market. The combined strengths of Absa and Barclays allow Absa Business Bank to offer depth of expertise and skills as well as bestof-breed products and global solutions required to meet our clients’ specific business needs. In addition to providing industry-specific banking solutions, Absa Business Bank has a range of specialised financial products such as working capital solutions and sector-specific privateequity funding products designed around the needs of business clients, looking to expand their businesses. The Bank has an extensive regional network, servicing clients through a Relationship Executive, supported by a team of Industry Specialists, Operational Bankers and Client Service Consultants. Absa Business Bank believes in being more than just a financial partner. Being a true partner is about adding value, it is about industry support by providing a collaborative platform for networking

and growth across all sectors and industries in the South African economy.

opportunity to strengthen our partnerships with key local, provincial and government accounts.

Absa is not only ideally positioned as a financial partner in the corporate and business space, but actively supports industry events and initiatives. A wealth of opportunities exists for the creation and development of businesses and Absa Business Bank has been involved in a range of regional initiatives.

The success in achieving this tender is as a result of the One Absa collaborative spirit in action, as the ABB Public Sector Centre of Excellence, Sandton Business Centre and Credit collaborated to pull off this excellent deal! It is just one of many deals that Absa Business Bank Sandton has successfully delivered on to help drive our positive mid-year interim financial results and build our market share.

Absa has long-standing relationships with the public and private sector in Gauteng. Given our skills and expertise, we are able to customise financial solutions to meet specific requirements, be it local business banking or specialised financial requirements across the African continent or with the rest of the world. In addition to supporting existing and established businesses, Absa also wants to be a partner in the growth of South Africa and has implemented initiatives to support the government’s Enterprise Development agenda. In addition to efforts undertaken to promote entrepreneurship and assist businesses of all types, the Group also has an extensive social investment programme focusing primarily on job creation for marginalised communities, primary and secondary school education and initiatives around HIV/AIDS. Some of these include: Gauteng Provincial Government Absa Business Bank (ABB) recently concluded a deal with the Gauteng Provincial Government (GPG) in which we have been selected as the preferred bidder for the GPG funding tender. This is a term loan of almost R1 billion over a seven-year period. The funding is for the Gautrain project, a publicprivate partnership between the Gauteng Provincial Government and Bombela Concession Company. This ground-breaking transport project entails the construction of a state-of-the-art rail connection linking Tshwane, Johannesburg and OR Tambo International Airport. This winning tender reinforces our valuable role in the Public Sector environment and gives us an

Absa Business Bank’s value proposition Absa Business Bank’s value proposition is to consider business from three different, but interconnected perspectives. The first perspective is to build effective business relationships with customers and this happens through Relationship Executives. Their main task is to determine business needs and provide appropriate financial solutions. The second perspective is to develop an in-depth understanding of the industry within which customers operate, which includes Construction, Manufacturing, Retail, Franchising, Professional markets, Logistics and Transport. The third perspective is a portfolio of products aimed at providing very specific financial solutions. These products could range from standard transactional products, to payroll solutions to highly specialised products designed for a specific sector or business need, like cash management solutions in the Franchising sector. Interaction with customers happens through business centres which are geographically located in the Regional Centre for Absa Business Bank. Absa Business Bank Sandton 15 Alice Lane, Norton Rose Building, Podium Floor Sandton, 2196 Tel: 010 226 8000 Absa Business Bank Klerksdorp 5th Floor, Absa Building, 91 OR Tambo Street Klerksdorp, 2571 Tel: 018 406 1170

contents

contents gauteng Companies 2013 edition Published by Global Africa Network (Pty) Ltd

9 12 20 22 32 34

Introduction

Foreword9 Gauteng Companies is a unique guide to business, investment and tourism in the province.

Solid plans for success

10

Premier Nomvula Mokonyane highlights some of the key developments and successes in the province.

Special features

Regional overview of Gauteng Province

12

Gauteng’s economy drives growth in South Africa and in the region.

Gauteng’s metropoles

18

Close to nine million people live in Gauteng’s metropoles.

The rail revolution is rolling

20

Gauteng’s workshops are key to the plan to boost South Africa’s rail capabilities.

Modern architecture is flourishing

22

Striking building design is adding appeal to the Gauteng skyline.

Overview of the South African economy

26

Key facts and figures on South Africa’s demographics, economy, trade and investment.

Destination Gauteng

How are hotels holding up?

32

South Africa’s hotel sector is adopting new strategies in the post-recession environment.

Tourism34 Gauteng’s revenue from tourism is approaching R30-billion.

Events and conference facilities Gauteng is strengthening its position as a continental leader in conferences and exhibitions.

Gauteng companies 2013

2

40

contents

46 51 58 64 73 88 100

Economic sectors

Agriculture46 Poultry farming is one of Gauteng’s biggest subsectors.

Mining51 Gauteng is at the centre of mining research.

Manufacturing58 Gauteng leads the nation in manufacturing.

Automotive60 A Tshwane automotive hub aims to improve efficiency in the sector.

Food and beverages

62

Food and beverage companies are attracted to Gauteng’s big market.

Engineering64 Gauteng’s engineering firms are driving the provincial economy.

Transport73 The transport sector drives growth in all sectors of the provincial economy.

Infrastructure80 Gauteng’s R30.6-billion infrastructure plan will boost every aspect of the provincial economy.

Construction and property

81

Many property companies are listing on the stock exchange.

Water88 Gauteng is looking for creative solutions to water-supply issues.

Energy100 Gas from landfill sites is set to power the province.

Media106 Most of South Africa’s big media companies have their headquarters in Gauteng.

Advertising108 Advertising by cellphone companies is boosting revenues.

Film109 Gauteng is planning an international film festival.

Gauteng companies 2013

4

contents

110 114 122 133 146 17 N1

Information and communications technology Banking and financial services Development finance and SMME support

Cullinan

Mamelodi

N4

Centurion

dgeville

Call centres and business process outsourcing

N1

R21

Midrand

Tembisa Alexandra Kempton Park Isando Benoni Edenvale

n

NNESBURG

Education and training

133

Gauteng is building schools to tackle historical backlogs.

Government

South African National Government

146

An overview of South Africa’s national government departments.

Gauteng Provincial Government

156

Gauteng Local Government

166

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

References Mpumalanga

Sector contents

44

Business organisations

144

Index168 Zithobeni Ekangala

N4

N12

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

Maps

N12

Gauteng locator map Gauteng regional map Gauteng municipalities

15 17 167

erton

R59

132

Incentives make call centres very attractive to investors.

Bronkhorstspruit

Irene

N14

122

Gauteng is setting up township enterprise hubs.

Hammanskraal

PRETORIA

114

The financial sector is a major contributor to Gauteng’s GDP.

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

N1

110

ICT is a big contributor to regional GDP.

Devon N17

N3

Ratanda

Heidelberg

Meyerton

ging

Mpumalanga

e

N Gauteng companies 2013 N3 Motorway

Main Road Railway

6

OFFICIALLY NO.1 BEST BUSINESS OPPORTUNITY 2011 More than 400 Maister millionaires enjoyed an effortless, secure minimum 19% return on their business capital.

www.jamfactory.co.za

And that’s without any office premises, staff, equipment, stock, marketing, skills or experience!

+27 (0)12 470 3602 marketing@bridgewealth.co.za

www.bridgewealth.co.za

19%

RETURN ON MINIMUM R1 000 000 CAPITAL

credits

GAUTENG COMPANIES 2013 www.gautengcompanies.co.za Gauteng Companies is published by Global Africa Network (Pty) Ltd ISSN 1990-6021

Editorial & production Publisher Editor Research and writing Creative director DTP operator Subeditor Production assistant

Chris Whales Karen Kühlcke John Young Ian Jamieson Colin Carter Katie Reynolds Anjé Robberts

Advertising

National sales manager Loudon Cito Advertising representatives Action Africa, Carol-Ann Bantom, Christoff Scholtz, Debbie Bender-Overmeyer, Ediba Ngambo, Jeremy Petersen, Nathalie Horswell, Nigel Williams, Rashaad Essop, Shiko Diala, Tim Harrison and Veronica Dean-Boschoff

Administration Managing director Clive During Administration and accounts Charlene Steynberg, Natalie Koopman CRM Administrator Zenobie Knox Distribution Lizé Fourie Printing CTP

Distribution

Gauteng Companies is distributed internationally on outgoing and incoming trade missions, through GGDA (Gauteng Growth and Development Agency); to 115 foreign offices in South Africa’s main trading partners around the world; at top international trade fairs; through the offices of foreign representatives in South Africa; as well as nationally and regionally via chambers of commerce, tourism offices, trade and investment agencies, provincial government departments, municipalities, companies and business-class lounges. Member of the Audit Bureau of Circulations

Published by

Copyright Gauteng Companies is an independent publication published by Global Africa Network (Pty) Ltd. Full copyright to the publication vests with Global Africa Network (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network (Pty) Ltd.

Gauteng companies 2013

Global Africa Network (Pty) Ltd Company Registration No: 2004/004982/07 Directors: Clive During, Chris Whales, Richard Pembroke Physical address: 3rd Floor, Sunclare Building, 21 Dreyer Street, Claremont 7700, Cape Town, South Africa Postal address: PO Box 44573, Claremont 7735, South Africa Tel: +27 21 657 6200 • Fax: +27 21 674 6943 Email: info@gan.co.za • Website: www.gan.co.za

Photo credits

Disclaimer While the publisher, Global Africa Network (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in Gauteng Companies is accurate and up-to-date, the publishers make no representations as to the accuracy, quality, timeliness, or completeness of the information. Global Africa Network will not accept responsibility for any loss or damage suffered as a result of the use of or any reliance placed on such information.

8

Photographs: Flickr, Dreamstime, Walter Knirr, Anglo American, Mediaclubsouthafrica. com, Scania, Railways Africa, Johannesburg Stock Exchange, Heineken Breweries, Stock. Xchng, mLab SA, Johannesburg Department of Tourism, Andrew Bell, JP De Kock, Gold Fields, Leon Krige, Melrose Arch, Cover photographs: (water, gold, steel, rail engineers) Veer, (barley) Heineken, (smelting) Geoff Brown, (AFGRI) Paragon / Andrew Bell, (Johannesburg skyline) Great Stock.

foreword

Gauteng Companies A unique guide to business, investment and tourism in Gauteng.

G

GAUTENG COMPANIES

2013 EDITION

auteng Companies in business-to-business print 2013 is the seventh and electronic publications, edition of this highly producing a series of offisuccessful publication that, cially endorsed, annual print THE GUIDE TO BUSINESS AND INVESTMENT IN GAUTENG PROVINCE since its launch in 2006, has journals. In addition to the established itself as the prenational business guidebook, South African Business, every mier business and investprovince in South Africa is ment guide to the Gauteng now covered by this unique Province. Again endorsed by range of publications and the Office of the Premier of Gauteng, Gauteng Companies websites: Northern Cape is unique as a business Business, Free State Business, journal that focuses excluLimpopo Business, KwaZulusively on Gauteng and that Natal Business, Eastern Cape also carries full Audit Bureau Business, Western Cape of Circulations (ABC) certificaBusiness, Mpumalanga Business tion, meaning its print run and and North West Business. circulation of 15 000 copies is independently In an exciting new development, Global audited and verified. Africa Network has launched an online busiGauteng Companies is complemented by a ness platform called Frontier Market Network useful website, www.gautengcompanies.co.za, (www.frontiermarketnetwork.com), a business which includes an online record of the con- network for fast-growing markets. The Frontier tent from the print journal. Gauteng Companies community comprises companies, government 2013 is also available in e-book format through organisations and individuals involved in doing a hyperlink on the website’s home page, where business, investing, promoting or supporting deal transactions in Africa and other rapidly it can be read online or downloaded. The 2013 edition of Gauteng Companies developing economies. includes an economic overview of the province Global Africa Network thanks the dedicated (see p12), as well as detailed overviews of the sales team and the professional and committed region’s major sectors (see sector index on p44), writers, editors and designers who worked while the Destination Gauteng guide to travel so hard to produce this edition of Gauteng and business tourism (p31) includes a special Companies. We thank the Office of the Premier, feature on how the hotel sector is adapting to companies, parastatals and other organisathe post-recession environment. tions that provided us with information and Additional special features focus on the rail supported this undertaking. revolution that has occurred as a result of South Africa’s massive infrastructure drive (p20); how modern architecture is adding appeal to Chris Whales, Publisher the Gauteng skyline (p22); as well as a closer Global Africa Network look at Gauteng’s main metropoles (p18). Email: chris@gan.co.za Global Africa Network (www.gan.co.za), the www.gautengcompanies.co.za publisher of Gauteng Companies, specialises www.gan.co.za www.gautengcompanies.co.za | www.frontiermarketnetwork.com

9

Gauteng companies 2013

Global Africa Network Promoting business, trade and investment in South Africa’s nine provinces www.gan.co.za

Global Africa Network publishes a unique range of officially endorsed business guides and complementary websites to South Africa’s nine provinces. To profile your organisation in any of our publications, call us on +27 21 657 6200 or email sales@gan.co.za

a regional overview of

gauteng province

Gauteng’s economy drives growth in South Africa and in the region. South Africa’s smallest province geographically is the country’s most important economic region.

(19.7%), government services (15.7%) and trade (12.8%). In her 2011/12 budget speech, former MEC for Economic Development Qedani Mahlangu shared the following statistics: by John Young • Gauteng contributes 10% of the GDP of the Southern Africa Development auteng Province covers just 1.4% of Community (SADC) South Africa’s land area but it produces • The province is the fourth-biggest about a third of South Africa’s gross African economy domestic product (GDP). Whereas mining • It is the 56th-biggest economy in used to account for Gauteng’s dominance of the world the regional economy, the province is now • In the previous year, 46% of net new jobs a leader in a wide range of other sectors: in South Africa were created in Gauteng finance, manufacturing, commerce, IT and The manufacturing sector in Gauteng media among them. employs 600 000 people in more than The Bureau of Market Research (BMR) has 9 000 enterprises. Manufacturing capacity shown that Gauteng accounts for 35% of extends from the heavy-steel industry total household consumption in South Africa. clustered around Vanderbijlpark and The leading economic sectors are finance Vereeniging (close to the important syn(21% of provincial GDP), manufacturing thetic-fuel and chemicals producer in

Photo: Melrose Arch

G

Sasolburg in the neighbouring Free State Province), through the medium industries associated with automotive manufacture, assembly and parts (mostly in Pretoria) and the food and beverages industry (in most parts of the province) to lighter industry in parts of the Ekurhuleni Metropolitan Municipality, near the airport. Gauteng’s reputation as a manufacturing powerhouse has been enhanced in recent years as a number of local and interThe South African Diamond Centre building (right). national companies have set up new plants in the province. These include a new brewery (Heineken) and a new plant to assemble motor vehicles (Tata). Companies are also increasing manufacturing capacity: BMW, Ford and Nissan have all expanded their production lines. Nestlé is another company that has invested heavily in increased production, as have Procter & Gamble and Kimberly-Clark. The massive national infrastructure programme will benefit many of Gauteng’s Heineken has set up a new plant in Meyerton. manufacturing subsectors, not least the rail manufacturing and service industry, to build an ‘aerotropolis’ in partnership with the clustered mainly in the Ekurhuleni metro. provincial government and private investors. Transnet Rail Engineering’s huge plant at The intention is to link the airports of OR Tambo Koedoespoort in Pretoria is already hard at and Lanseria, and expand logistics capabilities. work producing large numbers of locomotives Gauteng’s already strong position as a logisfor Transnet’s expansion programme. tics hub is the focus of several developments. Gauteng is not just an important centre of New inter-modal terminals are being built at economic activity in itself, it is also an important Sentraraad and Tambo Springs, both of which will launching pad for local and international busi- massively increase container-handling capacity. nesses to enter the African market. The country’s Four major terminals already function in the biggest airport, OR Tambo International Airport, province. As an indicator of international interest, is at the core of the province’s logistical network. global logistics company FedEx opened a new Other airports include Rand Airport (Germiston), freight forwarding office in Johannesburg in 2011. Lanseria (north of Johannesburg), Wonderboom The completion of the new multi-product (Pretoria) and Grand Central (Midrand). pipeline from the coast to the Highveld is a Ekurhuleni Metropolitan Municipality plans further spur to logistics investment. Reatile Group Gauteng companies 2013

14

photos: top: Walter Knirr bottom: heineken

special feature

special feature

ZIMBABWE MOZAMBIQUE

BOTSWANA Limpopo NAMIBIA Mpumalanga

North West

Gauteng SWAZILAND

Free State Northern Cape

KwaZuluNatal

LESOTHO

Eastern Cape Western Cape

launched a new liquified-petroleum gas depot (LPG) in Krugersdorp in 2012, which will cater to the inland market. The R50-million facility received funding from the Industrial Development Corporation. The same company is building a R1-billion petroleum storage and distribution plant near Heidelberg, near the endpoint of the Transnet Pipelines’ multi-product pipeline. A total of R23-billion has been spent on upgrading Gauteng’s already extensive road network, and public transport is the focus of the multi-billion-rand Gautrain Rapid Rail Link and the bus rapid transit (BRT) system. In 2011, a task team was set up to produce a 25-year Integrated Transport Master Plan, and this is due to be finalised in 2013. The intention is to create one provincial transport authority and to integrate rail, road and minibus taxis into one coherent system. Although mining no longer holds the dominant position it once did, Gauteng’s contribution to

the country’s gold and diamond production is still significant, and the province’s mines account for about 21% of employment in the sector nationally. The other primary sector, agriculture, contributes little to the provincial GDP, but there are important districts such as Delmas, Cullinan, Krugersdorp, Bronkhorstspruit and Heidelberg, where a variety of crops are cultivated. Large maize- and grain-farming enterprises are found in the western and southern parts of the province. Other products produced in large volumes are vegetables, fruit, dairy, poultry and eggs. In broad terms, the following geographical division of economic activity holds true for Gauteng. In the provincial capital, Johannesburg, financial services and commerce predominate. Tshwane (which includes Pretoria) is home to many government services and is the base of the automotive industry and many research institutions. The Ekurhuleni metropole has the largest concentration of manufacturing concerns in the country, ranging from heavy to light industry.

15

Gauteng companies 2013

The western part of the province is concerned mainly with mining and agriculture, while the south has a combination of maize farming, tobacco production and the heavy industrial work associated with steel and iron-ore workings. The province has several outstanding universities, and the majority of South Africa’s research takes place at wellregarded institutions such as the Council for Scientific and Industrial Research (CSIR), The Suikerbosrand Nature Reserve. the South African Bureau of Standards (SABS), Mintek, the South African Nuclear Energy Corporation (NECSA), the Vaal Dam are major tourist attractions, while the Human Sciences Research Council (HSRC) ecotourism opportunities have the potential to and a number of sites where the work of the grow. The Suikerbosrand Nature Reserve is a Agricultural Research Council is done. prime regional asset. One of the main priorities of the Gauteng Provincial Government is to develop the central West Rand District Municipality business districts of the region’s major towns. The focus for the years to 2014 is on the cities Towns: Randfontein, Krugersdorp, Westonaria of Germiston, Krugersdorp and Vereeniging. Gauteng is administered by three metro- The West Rand is the area of Gauteng where politan authorities (covered separately in this mining has retained its strongest presence. publication) and two district municipalities: Large-scale commercial farming also takes place. Randfontein Local Municipality is where the world’s deepest gold mine was dug. To the Sedibeng District Municipality south, mining contributes 75% to Westonaria Towns: Sebokeng, Sharpeville, Vereeniging, Local Municipality’s economy. An industrial Vanderbijlpark park is planned that will assist in the process The Emfuleni Local Municipality (including of diversifying the economy. Mogale City Local Evaton, Sharpeville, Vanderbijlpark and Municipality is very much the economic driver Vlakplaas) is at the core of the Vaal Triangle, of the district, including as it does the town which in turn is at the heart of South Africa’s of Krugersdorp. iron and steel industry. Metal products, Krugersdorp has considerable manufacturing machinery and equipment are made here. capacity, and has a motor-sports racing track ArcelorMittal has been a major employer in that attracts international drag-racing events. Vanderbijlpark since 1947. Tourism in the district is mostly located within Heidelberg produces bacon and tobacco. the surrounds of Mogale City. Significant attracEskort and British American Tobacco are the two tions include the Cradle of Humankind, the major companies in the area. The Midvaal area Magalies Meander, the Sterkfontein Caves and has agriculture and tourism as its two main eco- the Krugersdorp Game Reserve. nomic activities, and the city of Meyerton is the site of newly built, multi-million-rand Heineken brewery. The Klip River at Henley-on-Klip and Gauteng companies 2013

16

photo: OSEWA/flickr

special feature

special feature

GAUTENG PROVINCE N1

Limpopo

North West Mpumalanga

Hammanskraal N1

PRETORIA N4

Cullinan Mamelodi

Zithobeni

N4 N4

Centurion

Atteridgeville

Bronkhorstspruit

Irene N1

N14

Magaliesburg

Muldersdrift Sandton Krugersdorp Randburg

N14

Randfontein

Mohlakeng Bekkersdal Westonaria

Roodepoort

Ekangala

R21

Midrand

Tembisa Alexandra Kempton Park Isando Benoni Edenvale

JOHANNESBURG

N12

N12

Daveyton Boksburg Germiston Wattville Brakpan Soweto Alberton Reiger Park KwaThema Katlehong Springs N12 Lenasia Vosloorus N1 Tokoza Tsakane Duduza Nigel

Kagiso

R59

Devon N17

N3

Evaton

Ratanda

Heidelberg

Meyerton Sebokeng Vereeneging Boipatong Bophelong Sharpeville Vanderbijlpark

Mpumalanga

N1

N

Free State

N3

Motorway Main Road Railway

.

17

Gauteng companies 2013

special feature

Gauteng’s metropoles Close to nine million people live in Gauteng’s metropoles.

City of Johannesburg The City of Johannesburg is the capital city of the Gauteng Province. It is also South Africa’s unofficial financial capital, with a high proportion of the country’s financial institutions based in the city. Many international companies looking for a first presence in Africa have set up offices in Johannesburg. Gold mining was the first economic activity that brought large numbers of people to the area, and the city grew astonishingly quickly after 1886. Today, the city does most of its business in financial services (banking, investment and insurance), commerce, trade and manufacturing. Media, advertising and IT are other strong sectors. Most major banks are headquartered in the city, as is Africa’s largest stock exchange, the JSE. Mining stocks still predominate on the JSE. Creative initiatives to invigorate the inner city of Johannesburg are paying off. City agencies such as the Johannesburg Development Agency are investing in infrastructure, such as pavements and public art, which has helped to persuade businesses to follow suit. The central business district is South Africa’s largest urban development zone at 18km2. Businesses investing there attract generous tax concessions. The Maboneng Precinct in the eastern part of central Johannesburg is another attempt to revitalise the inner city. This project has an arts flavour. Sandton and Rosebank have firmly established themselves as the new commercial hubs for the city, and are in the process of greatly expanding available retail and office space. The Gautrain project has served to strengthen this trend, with major stations serving both Sandton and Rosebank. The city’s population of over three million has a wide choice of sports to play and watch Gauteng companies 2013

18

Zoo Lake in Johannesburg. at a superb collection of stadiums. Despite its built-up nature, Johannesburg can boast of some splendid parks, and places like the Johannesburg Zoo and Bruma Lake are extremely popular. Frequent music concerts are held in public open areas, and the city has more than 300 heritage sites and about 30 major galleries and museums. These include the emotive Apartheid Museum at Gold Reef City and Museum Africa in Newtown.

City of Tshwane Pretoria is South Africa’s administrative capital and seat of government. The city of more than two million citizens falls under the City of Tshwane Metropolitan Municipality and has a varied economy. Plans are underway to revitalise the central business district of Pretoria, which has a high proportion of government department buildings. The West Capital Precinct aims to make the CBD pedestrian-friendly and attract new business. There are also big plans to develop Centurion into a major business node. The City of Tshwane will issue its first municipal bond in 2012, with the intention of raising money to fund capital projects in the metropole. In 2011, Metsweding District Municipality was added to Tshwane, thus bringing the towns of

special feature Bronkhorstspruit and Cullinan Metropole Population Combined 2012/13 budget under the metro. This northEkurhuleni 3 million R21.3-billion eastern part of the province has an economically varied City of Johannesburg 3.9 million R37-billion profile that includes mining City of Tshwane 2.4 million R24.9-billion and flower cultivation. Services Gauteng’s metropoles. make up the biggest economic sector (27%) with manufacturing, finances and trade following in importance. Mining is still a strong Ekurhuleni Metropolitan sector, with the town of Cullinan a historically Municipality important town, as the largest-ever diamonds were found there. Ekurhuleni includes the towns of Germiston, The Nan Hua Buddhist Temple in Bronk- Boksburg, Benoni, Kempton Park and Springs. horstspruit is the largest Buddhist temple in Ekurhuleni plays a vital role in the national economy. Firstly, it is the site of OR Tambo InterSouth Africa. The Jacaranda City could be known as any national Airport. A major international airports number of other nicknames; among them conference will be held in the city in 2013, and Diplomatic City and Research City. plans are underway to develop the country’s first ‘aerotropolis’ around Ekurhuleni. Pretoria has: • The embassies of every foreign country Secondly, it is home to a large number of manurepresented in South Africa facturing enterprises that contribute 19.7% of • The University of Pretoria, the University of Gauteng’s gross domestic product (GDP). The South Africa and the Tshwane University of metropolitan municipality is also one of the most densely populated areas of South Africa. Technology • The Council for Scientific and Industrial Wadeville-Alrode and Germiston-Daveyton Research (CSIR), the Nuclear Energy Corpo- are important industrial corridors. Germiston is ration (Necsa), the South African Bureau of home to the Rand Refinery Limited, South Africa’s Standards (SABS) and the Human Sciences only gold refinery. Research Council (HSRC) A number of railway businesses are located • The National Research Foundation, South near to South Africa’s biggest rail junction in African Biodiversity Institute, Sports High Germiston. Transnet Rail Engineering has a big Performance Institute, Africa Institute of plant at the junction, and there are rail workSouth Africa, Forestry and Agricultural Bio- shops in Nigel (Union Carriage and Wagon) and technology Institute and the Institute for Boksburg (DCD Rail and Lennings Rail Services). African Renaissance Studies The lakes at Brakpan and Benoni are popular • The Innovation Hub (CSIR, the Univer- sites for recreation, and the former town has a sity of Pretoria and Gauteng Provincial casino. Several hotels, particularly those near Government) the airport, have conference and event facili• Automotive Supplier Park, Rosslyn ties. The World Trade Centre, near OR Tambo • BMW, Ford, Tata truck assembly plant and International Airport, is one of South Africa’s Renault-Nissan, all operating at Rosslyn biggest conference venues. • Other industries include food and beverages Tourist attractions include an aviation museum and metal products. in Germiston, the AECI Dynamite Factory Museum • Services (with government making up a in Edenvale and the Ubunye Museum near the significant part) contribute 65% to the airport, which relates the story of the negotiations city’s economy, with industry (21%) and that led to South Africa’s transition to democcommerce (12.5%) making up the bulk of racy. Bird watchers are well catered for in the the remainder. metropole.

19

Gauteng companies 2013

special feature

The rail revolution is rolling Gauteng’s workshops are key to the plan to boost South Africa’s rail capabilities.

M

ore than a thousand new locomotives for Transnet. Three hundred and sixty new coaches every year for 20 years for the Passenger Rail Agency of South Africa (Prasa). Speciality wagons for the chemical and automotive industries. A total of 19 400 new wagons for Transnet Freight Rail before 2020. These are some of the orders that are rolling in as part of South Africa’s massive infrastructure drive, a project that includes planned expenditure of R300-billion on rail. Freight volumes within South Africa more than doubled between 2003 and 2007, according to the National Department of Transport. The percentage of road freight increased to 87%, a figure that is unsustainable in the long term. Much of the spending on South Africa’s transport infrastructure is designed to get freight off the roads. Gauteng’s rail workshops are gearing up to deliver increasing volumes of locomotives, wagons and associated hardware. There is significant foreign interest too.

Gauteng companies 2013

20

In February 2011, Transnet revealed the first of the General Electric C30ACi locomotives that are being brought into service as they are completed. A minority of these are being built in the United States, with the balance being manufactured at the workshops of Transnet Rail Engineering (TRE) at Koedoespoort, Pretoria. Prasa is the agency responsible for passenger transport, and it has big plans too. Prasa will spend R123-billion on buying 7 224 new trains and having 360 new coaches added to its stock every year for two decades. Transnet Rail Engineering will build a factory to the specifications of the company that wins the Prasa bid. When the order is completed, the facility will revert to the state in the form of Transnet. This will ensure high local-content values for the contract and put TRE in a better position to bid for export contracts in the future. Transnet Freight Rail (TFR) is in the process of upgrading every one of its lines to increase capacity. More iron ore to Saldanha means more work for Union Carriage & Wagon (UCW) in Nigel. The

photo: railwaysafrica

Rail tankers manufactured in the Germiston rail engineering workshops.

photo: wikipedia

special feature Murray & Roberts subsidiary is contracted to deliver 32 new 15E locomotives for that line. UCW has put more than 14 000 new locomotives, trains and coaches onto Southern African rail lines since it started operating in the late 1950s. It delivered 64 trains for the Gautrain project. Increased volumes are being achieved by TFR on the coal line to Richards Bay, and there are plans to increase the quantity of fruit hauled out of Limpopo and the amount of The Class 43-000 type GE C30ACi locomotive. manganese transported to Port Elizabeth. All of these plans need new locomotives and new wagons. The big locomotive contract is a shot in the Apart from Transnet Rail Engineering’s arm for the large workshops at Koedoespoort Germiston workshops and UCW’s plant at and will help to gear the facility for the export Nigel, DCD Rail has a large workshop in the market. There are 3 434 permanent employees East Rand town of Nigel, and Lennings Rail at the plant. Services operates out of Boksburg. Lennings Big investments in machinery have enabled the TRE Germiston workshop to tackle ever is a subsidiary of the Aveng Group. DCD has developed a coach bogie with 85% more complex tasks. The delivery in late 2011 local content, something that will help in the of specialised ammonia rail tankers to fertiliser, bidding process with Prasa. chemicals and explosives company Omnia was US company Electro-Motive Diesel (EMD) a milestone. has formed a partnership with local group Transnet Pipelines has ordered a new set of Barloworld. The joint venture, Electro-Motive petrol tanker wagons from the Germiston works, Diesel Africa (EMDA), will service existing and with a growing reputation for high-quality EMD customers in Southern Africa and be in workmanship, is well positioned for growth. Specialised rail wagons have been built to a strong position to fulfil some of Transnet’s accommodate new vehicles. Toyota and TFR requirements. Alstom holds 14% of the international market have signed an agreement that will see 60 fewer in rail rolling stock and has a long history in South trucks lumbering up the N3 from Durban to Port Africa. It is bidding for Prasa’s first tender for the Elizabeth. TFR has increased the number of cars design, manufacture, supply and maintenance it is transporting to Gauteng from 100 to 500 of 3 600 carriages. per week. Dominix Import & Export makes sleepers TFR is also investigating the possibility of and parts for wagons, and was involved with carrying new cars for Mercedes-Benz SA from TRE in exporting equipment to Angola in 2011. its plant in East London to the Highveld, and returning to the coast with new BMWs for export. Cars transported by train – an excellent metaTransnet Rail Engineering phor for the progress of the rail revolution. TRE has facilities all over South Africa, but the plants at Koedoespoort and Germiston are among the most important in the Transnet Group.

21

Gauteng companies 2013

Modern architecture is flourishing Striking building design is adding appeal to the Gauteng skyline.

G

Norton Rose Towers (Sandton). Client: Zenprop. Principal contractor: WHBO/Tiber joint venture. Architect: Paragon.

photo: andrew bell

auteng is a dynamic province. Whether it’s the economy or the people you are talking about, things are always on the move. This applies to the built environment as well, as urban Gauteng could never be described as static. But some of the province’s newest buildings show that modern can also be memorable. The Gauteng Institute for Architects (GIFA) gave awards in 2011 for three public buildings that superbly combined functionality with beautiful form: Soccer

special feature City (Boogertman and Partners), Nike Football Training Centre (Design Scope and RUF project) and Circa Art Gallery (studioMAS). The six-storey office block in Sandton, 15 Alice Lane Towers, provides office space for one of South Africa’s biggest legal firms, Deneys Reitz Attorneys. The design also provided a canvas for the application of new glass technology that changes according to light and atmosphere fluctuations. The facade was constructed by Aveng Grinaker-LTA Facades. The Soweto Theatre won an award soon after its construction in 2012. The South African Property Owners’ Association (SAPOA) honoured

the building with its social and environmental impact development prize. The theatre has a 420-seater main venue and two other venues that cater for 180 and 90 people respectively. ArcelorMittal Distribution Solutions South Africa provided the cladding that glows so splendidly along the side of the theatre. Structural engineers Themba Consulting Engineers and light frame supplier Clotan Steel also played important roles in the final realisation of the exciting design. The design of AFGRI’s new head offices in Centurion pays homage to Brazilian modernism, with two giant office pods floating above the ground connected by a glass-encased atrium.

photos: (soweto theatre) Leon Krige, (AFGRI head office) andrew bell

AFGRI head office (Centurion, Tshwane). Client and contractor: M&T contractors. Architect: Paragon.

Soweto Theatre. Client: Johannesburg Property Company (JPC). Principal Contractor: JV Group Five/Inkanyeli. Architect: Afritects.

23

Gauteng companies 2013

PROFILE

POPCRU Group of Companies Providing financial security and benefits for union members and their families.

POPCRU Group of Companies (PGC) is a trusted, credible and diversified investment group that forms part of the investment wing of the Police and Prisons Civil Rights Union (POPCRU). It is uniquely established to generate and invest, through its operations, financial capital on behalf of the approximately 150 000 POPCRU memberships. The company’s business structure and operating principal is unique as it generate its own funding (without utilising union membership fees) and the business services extend beyond the POPCRU membership, thus, though PGC’s roots are within organised labour, its business operations and investment initiatives have no boundaries. The group has been operational since 1997 and has steadily established itself since, though a number of strategic acquisitions.

Leadership PGC is led by group chief executive officer Zwi Mdletshe, who has guided the organisation to become one of the foremost investment companies within the union movement in South Africa today. Mdletshe accepted the challenge of amalgamating 19 investment portfolios of separate entities into the efficient, successful business PGC has become. The union owns the business through the PGC Trust, which distributes major parts of the profit through bursaries to children of deceased members and union members across the country.

Vision and mission To be a leading investment group within organised labour in Africa by providing customised products to its markets and ensuring Gauteng companies 2013

24

PGC ensures that union members’ families are provided for in the event of death or disability. investment optimal returns to shareholders through growing and empowered people. The group aims to achieve a net asset value to R1 billion by 2015.

Shareholding Eighty percent of PGC’s business is focused on the financial services industry, and this is the core of the business. The core business complement includes Workerslife, a company that

PROFILE underwrites and administers all life assurance and short-term insurance business for the Group, and Lesaka, a company that is focused on product distribution as well as the administration for the Group Insurance business.
20% of the group’s non-core business comprises: 100% ownership of Shishangeni Lodge, a private game lodge in the Kruger National Park; a 6.89 % stake in Protea Hospitality Holdings and a 100% stake in Riskcon Security Services.

Group of companies Workerslife Workerslife is a wholly owned insurance underwriter and administration company under the PGC group. It is the flagship brand of the PGC Group and provides employers with innovative risk solutions to attract and retain staff. Workerslife comprises three subsidiaries: Workerslife Assurance Company, Workerslife Insurance Underwriters and Workerslife Medical Aid Administrators (currently not active).

The company will gradually phase out Lesaka to ensure smooth transition and create a single brand identity to members. Lesaka serves its customers by distributing and administering competitive and affordable funeral and legal cover to their customers: POPCRU, the government and the private sector. Lesaka has an in-house call-centre focused on customer services and insurance claims, a client services department focused on walk-in clients, the recon department, which is responsible for processing one million local government deductions per month, as well as 400 private companies that they interface with. This is done through various deduction mechanisms including ACB and Nupay with a 97% success rate. Lesaka is the primary distributer of Workerslife products.

Riskcon Riskcon is an independent South African security company that protects people and assets. Since 1998, it has designed, supplied and sustained specialised protection services to organisations in the private and public sectors. Its single purpose is to identify risk and prevent loss caused by threats or illicit actions aimed at undermining operations or endangering personnel. PCG is the majority shareholder.

Workerslife undertakes to provide its clients with the maximum financial security in the event of a life-changing event. In order to achieve this, they always aim to provide simple and cost-effective risk solutions. They use only the best in-house, local and global expertise for actuarial risk and accounting and operaContact details tional requirements and, as a result, they have built a reputation as one of the leading insur- Key contact personnel: ance companies in South Africa. Zwi Mdletshe, Group CEO: POPCRU Group Tel: +27 12 305 7400 Shishangeni Lodge Email: zwi@popcrugroup.co.za Situated on a 15 000-hectare private conces- Physical address: 273 Paul Kruger Street, sion of the world-renowned Kruger National Pretoria 0002 Park, this legendary wildlife reserve has the Website: www.popcrugroup.co.za deserved reputation for showcasing some of the finest game-viewing on the continent.

Lesaka The registered financial services provider was established in 1993, and formerly known as the Ferreira Group. The group has proposed a name change for Lesaka, to Workerslife Direct.

25

Gauteng companies 2013

special feature

Overview of the South African economy Key facts and figures on South Africa’s demographics, economy, trade and investment.

South Africa fact file Capital: Pretoria Population: 50.59 million (July 2011 est – Census 2011 data due in September 2012) Area: 1 220 813km2 GDP: R2 964-billion (2011) GDP growth: 3.1% (2011) Income per capita: R58 549 (2011) CPI: 6.1% y/y (April 2012) PPI: 6.6% y/y (April 2012) Unemployment: 25.2% (Q1 2012) Gini Index: 57.8 (2009 UN Report)

Gross domestic product South Africa’s real gross domestic product (GDP) growth slowed to a 2.7% increase on a quarteron-quarter seasonally adjusted annualised (q/q saa) basis – 2.1% year-on-year (y/y) in the first quarter of 2012 from 3.2% q/q saa (2.9% y/y) – in the fourth quarter of 2011 (Table 1). The largest industries, as measured by their nominal value added in the first quarter 2012, were finance, real estate and business services, making up 19.3% of the economy, and general government services making up 14.6%. The q/q saa changes in value added by the primary, secondary and tertiary sectors were -11.2%, 6.4%, and 3.0% respectively, during the first quarter of 2012. What is noteworthy, however, is that the mining sector – the number-one export industry in the country – declined by 16.8% q/q saa in the first quarter, due in part to a six-week illegal strike at Impala Platinum, the world’s secondlargest platinum miner.

Year

Q1

Q2

Q3

Q4

Annual

2004

6.2

5.7

6.7

4.3

4.6

2005

4.1

7.4

5.6

2.7

5.3

2006

6.2

6.7

4.8

6.4

5.6

2007

6.5

3.1

5.0

6.0

5.5

2008

2.9

4.5

1.8

-1.7

3.6

2009

-6.3

-2.8

1.8

3.5

-1.5

2010

4.0

2.8

3.1

4.5

2.9

2011

4.6

1.0

1.7

3.2

3.1

2012

2.7

Table 1: GDP growth per quarter, 2003–2012 Q1, constant prices, q/q seasonally adjusted annualised. Source: Statistics South Africa

GDP (R-m)

GDP per capita (R)

2001

1 020 007

22 899

2002

1 168 699

25 831

2003

1 260 693

27 631

2004

1 415 273

30 297

2005

1 571 082

33 176

Year

2006

1 767 422

36 844

2007

2 016 185

41 525

2008

2 262 502

46 072

2009

2 398 155

48 318

2010

2 661 434

53 088

2011

2 964 261

58 549

Table 2: GDP and GDP per capita at current prices. Sources: www.thedti.gov.za, www.reservebank.co.za, World Bank, Statistics SA

Gauteng companies 2013

26

special feature Sector Agriculture, forestry and fishing Mining and quarrying Manufacturing Electricity and water

Value in millions (R)

% Real change from 2010

% of GDP

63 984

-.04

2.2

2 260 381

0.2

8.8

357 756

2.4

12.1

78 532

1.3

2.6

Construction (contractors)

120 420

0.8

4.1

Wholesale and retail trade, catering and accommodation

386 430

4.4

13.0

Transport, storage and communications

220 060

3.3

7.4

Finance and insurance, real estate and business services

565 224

3.5

19.1

Personal services

183 493

2.4

6.2

General government services Total value added at basic prices Taxes less subsidies on products GDP at market prices

434 224

3.9

14.6

2 670 504

3.0

90.1

293 757

4.4

9.9

2 964 261

3.1

100

Table 3: Breakdown of South Africa’s GDP at current prices, per sector, 2011. Source: Statistics South Africa

April 2012, after a deficit of R5.5-billion in March, taking the cumulative trade deficit in April 2011 South Africa’s international trade has risen to R36.5-billion, compared with R7.5-billion in sharply over the last 10 years (Table 4). In the first four months of 2011. 2004, the value of imports rose above that of A record R17.4-billion deficit was set in January exports. Tables 5 and 6 show the largest import 2009, but as exports began to improve, so the and export sectors respectively, for April 2012. deficits narrowed in 2009 to become surpluses Important import sectors in April 2012 were in 2010. South Africa recorded its first annual machinery (R15.9-billion), mineral products – trade surplus in seven years in 2010 of R4.8chiefly crude oil (R13-billion), transport equip- billion, following a few stronger than expected ment (R10.9-billion) and chemicals (R5.4-billion). surpluses on the trade account during the year. On the export side, the most important sectors In 2012, however, the rise in the oil price in the were mineral products, chiefly coal and iron ore first few months, coupled with a sharp reduction (R14.8-billion), precious metals and diamonds in platinum exports, saw the non-SACU foreign (R10.2-billion), base metals (R7-billion) and trade balance firmly in the red. transport equipment (R4.6-billion). The old myth that a weaker rand leads to more Most of South Africa’s foreign trade takes place exports is once again disproved by the facts, as with Asia, the United States and Germany (Tables import growth was 23.5% in 2011, while export 7 and 8). In 2011, China, the United States and growth was 19.9% when the rand was weaker Japan were, in descending order, the country’s due to a R15-billion deficit. Prior to November top export markets, while top import-source 2011, when the rand had been stronger, export countries were China, Germany and the US. growth had exceeded import growth. In 2010, South Africa recorded a trade deficit of R9.9- when the rand was strong because export growth billion for its trade with non-Southern African of 14.9% exceeded import growth of 8.1%, there Customs Union (non-SACU) trading partners in was a R4.8-billion surplus, the first annual surplus

Trade: imports and exports

27

Gauteng companies 2013

special feature Year

Imports in R-m

Exports in R-m

1999

147 356

165 555

2000

187 608

210 373

2001

216 033

251 330

2002

275 427

314 102

2003

258 839

275 581

2004

306 927

296 246

2005

351 665

331 405

2006

465 040

396 529

2007

561 194

491 253

2008

727 632

663 099

2009

541 173

513 864

2010

585 219

590 207

2011

722 637

707 511

Sector

Value in R-m

1. Machinery, mechanical and electrical

15 903

2. Mineral products

12 991

3. Transport equipment

10 880

4. Chemical products

5 420

5. Base metals

3 190

6. Plastics, rubber

2 591

7. Textiles

1 726

8. Optical, medical, photographic

1 579

9. Foodstuffs, beverages

1 433

10. Vegetable products

1 045

Total

62 028

Table 5: South Africa’s top 10 import sectors, April 2012.

Table 4: Annual value of South African non-SACU imports and exports, 1998–2011.

Source: Source: www.sars.gov.za

Source: www.sars.gov.za.

since 2003. In the first four months of 2012, when the rand was substantially weaker than in the same period in 2011, exports only grew by 7.4% y/y, while imports surged by 20.6% y/y. In mid-2009, South Africa ranked 61 out of 121 countries, from 59th out of 118 in 2008 in the World Economic Forum’s Global Enabling Trade Report. But in 2010, it slipped to 72 out of 126 countries. It ranks above Zimbabwe [122], Ivory Coast [123], Kenya [105], Tanzania [97], Argentina [95] and India [84].

Foreign direct investment and public investment South Africa’s privately held business (PHB) owners’ intentions to grow through acquisition seem to align with expectations of BRIC (Brazil, Russia, India and China) countries in the upcoming 12 months, according to Grant Thornton’s 2011 International Business Report (IBR) on M&A activity. SA was invited to join the BRIC grouping in 2011. South Africa also fared well in a number of other indices. It was ranked 45th out of 133 on the World Economic Forum’s Global Competitiveness Gauteng companies 2013

28

Sector

Value in R-m

1. Mineral products

14 841

2. Precious metals and diamonds

10 239

3. Base metals

6 968

4. Transport equipment

4 613

5. Machinery, mechanical, electrical

4 460

6. Chemicals

3 350

7. Vegetable products

1 738

8. Foodstuffs, beverages

1 497

9. Plastics, rubber products

1 126

10. Pulp and paper

779

11. Animals, animal products

378

Total

52 154

Table 6: South Africa’s top export sectors, April 2012. Source: www.sars.gov.za

…Continued on pg 30

FREE MEMBERSHIP OF

FRONTIER MARKET NETWORK The Frontier Market Network is the largest online business community focused on investment and business generation in fast-growing markets.

GET CONNECTED. JOIN TODAY. Membership is FREE and benefits include: • •

access to a database of investment and business opportunities access to the latest market intelligence including market updates, country and regional profiles, news and analysis and research reports

Register at www.frontiermarketnetwork.com to begin your membership

connection to a network of over 120 000 people, companies and service providers operating in frontier markets access to a range of services required to complete transactions such as legal, research or due diligence services

special feature Index for 2009/10, and improved to 54 out of 139 countries in 2010/11. It was 32nd out of 181 countries in the World Bank and International Finance Corporation’s Doing Business 2009 report, and 34 out of 183 in 2010. This study measures the time, cost and hassle for businesses to comply with legal and administrative requirements. South Africa was at number 35 in 2008. Public-sector infrastructure investment, the expansion of electricity generation and distribution capacity by electricity supplier Eskom, upgrades to ports and railways by state-owned enterprise Transnet, and major road-construction projects remain the major challenges for the economy, but government continues to invest strongly in all areas. The ratio of fixed capital investment to GDP rose consistently over the five years to the end of 2008, to reach 24.6%, just below the government’s target of 25%. A cut-back in both government and private-sector fixed investment saw the ratio drop to 18.9% in the fourth quarter of 2010, before starting a slow recovery. General government fixed investment had the first quarterly increase in the second quarter of 2011 after nine quarters of decline. Total fixed investment has now increased for eight consecutive quarters and should continue to support growth going forward. Consumer spending has been robust, even as households repaired their balance sheets. Country 1. China

Value in R-m

The last time household expenditure growth exceeded income growth on a q/q saa basis was back in the fourth quarter of 2007. The result of this, as well as a marked reduction in interest rates, was that the household debt to income ratio fell to 74.6% in the fourth quarter of 2011 from 75.6% in the third quarter of 2011 and a peak of 82.7% in the first quarter of 2008. The debt service ratio eased to 6.7% in the fourth quarter from 6.8% in the third quarter, and is now at levels last reached in 2005. Year

Q1

Q2

Q3

Q4

2003

15.70

16.00

15.90

16.00

2004

16.00

16.20

16.20

16.20

2005

16.50

16.00

17.00

17.10

2006

17.70

18.60

18.90

19.70

2007

19.70

21.20

20.40

20.20

2008

21.05

22.44

24.02

24.64

2009

23.20

22.40

21.20

20.30

2010

20.30

19.88

19.40

18.90

2011

18.80

19.00

18.90

18.90

Table 9: Ratio of gross fixed-capital formation to GDP. Source: www.reservebank.co.za

Country

103 174

1. China

Value in R-m 90 210

2. Germany

77 396

2. United States

61 044

3. USA

56 944

3. Japan

55 635

4. Japan

34 377

4. Germany

42 684

5. Saudi Arabia

32 294

5. UK

29 001

6. India

29 220

6. India

22 224

7. UK

28 965

7. Switzerland

22 902

8. Iran

27 121

8. Netherlands

22 902

9. Nigeria

22 655

9. Zimbabwe

17 776

10. Italy

19 574

10. Mozambique

17 680

Table 7: South Africa’s top 10 import source countries in 2011.

Table 8: South Africa’s top 10 export markets, in 2011.

Source: www.sars.gov.za

Source: www.sars.gov.za

Gauteng companies 2013

30

A guide to Business and leisure travel services, conferencing and accommodation in gauteng

leave booked for RTD :D

special feature

destination gauteng

special feature

How are hotels holding up? South Africa’s hotel sector is adopting new strategies in the post-recession environment.

W

ith occupancy rates approaching 60% during the 2010 Soccer World Cup, South Africa’s hoteliers found a temporary solution to the strains of the economic recession that started two years earlier. But with the global economy still constrained, and the number of hotel rooms having risen substantially to cater for the soccer tournament, South African hotels are having to adopt new strategies to survive – and grow. In the period leading up to the World Cup, the number of hotel rooms in Sandton increased by 40%, Cape Town by 21% and greater Durban by 53%. One immediate result of this was that the Grace Hotel, a famous landmark in Rosebank, changed hands. The 75-room hotel had been managed for property fund Hyprop by African Sun Hotels Group, which gave among its reasons for pulling out, the oversupply of rooms and the strength of the rand. Hyprop sold the property to Tsogo Sun for the bargain price of R85-million. That the hotel was snapped up by Tsogo Sun, one of South Africa’s biggest groups, is an destination gauteng 2013

32

indicator that the post-World Cup environment is one in which the big players are likely to grow at the expense of smaller operators. Protea Hotels has a R2-billion fund to buy distressed hotels. Protea Hospitality Group already has more hotel beds in South Africa than any other group, and spent R1.5-billion in 2011 on refurbishing 17 hotels and on acquiring eight new hotels. In 2012, Southern Sun relaunched itself as Tsogo Sun, the result of the merger with Gold Reef Resorts. Southern Sun remains as a brand for premier hotels in the group, which has a total of 95 hotels and 15 casinos across Africa, the Middle East and the Seychelles. Tsogo Sun will spend another R20-million on transforming the Grace Hotel into a boutique hotel called ‘54 on Bath’. The Beverly Hills in KwaZulu-Natal is the group’s other ultra-luxury hotel property. Other Tsogo Sun hotel brands include Sun Square, Garden Court and Stayeasy. Protea Hotels is the country’s other large group. There are 90 Protea properties across

photo: njr za/Wikipedia

The Michaelangelo Hotel on Nelson Mandela Square in Sandton.

special feature

photo: ROADRUNNER48/PANORAMIO

Emperors Palace Hotel Casino Convention Resort in Kempton Park. three brands in South Africa: Fire and Ice, Protea Hotels and African Pride Hotels, the premier brand. Citing the ‘saturated hotel industry’, the Don Group decided, in 2011, to get out of the hotel industry altogether. Having previously run nine all-suite hotels in Johannesburg, Pretoria and Cape Town, the Don will either sell these properties or convert them into apartments. The group also disposed of its share in iKapa Tours & Travel. One of the ways in which hotel groups are countering the trend of declining occupancy rates is by selling some of their hotel rooms. Signature Life Hotels started a programme in eight of its 35 South African hotels, with buyers gaining access to the room for 30 days of the year and earning income for the rest of the year. A third strategy adopted by South African hotel groups is expansion into Africa. Protea has a presence in eight African countries and Southern Sun is well established in Kenya, Mozambique, Nigeria, Tanzania and Zambia. West Africa and East Africa represent lucrative prospective markets for growth. Another plan that South African hotels are hoping will pay off is the effort by South African Tourism to increase the number of visitors to South Africa. South Africa attracted 8.3 million tourists in 2011. This was an improvement over the figures for 2010, even though that was the year of the World Cup. In pre-recession 2008, a total of 9.6 million tourists visited South Africa.

The National Department of Tourism wants the tourism sector’s contribution to GDP to rise to R338-billion by 2015. It was R174-billion in 2009. Although visitor numbers from Europe are slightly down (3.5% in 2011 compared to the previous year), that region still represents a big and important market for South Africa. It is the significant growth in tourists from Africa, China and India, however, that illuminates the way forward. Tourist arrivals from African countries started rising in the year of the Soccer World Cup, and the trend has continued. Nigeria and Tanzania were the biggest growth markets in 2011, rising by 38% and 46% respectively. The National Department of Tourism will spend R218-millon on setting up five new offices around Africa to join the country office that exists in Angola. The second office is due to open in Nigeria in the course of 2012. Brazil is the other country that will receive a country office, and the department has set goals for attracting new tourists from South Africa’s new partners in the multi-national BRICS grouping: 100 000 Indian tourists and 100 000 Chinese tourists by the end of 2013. In the year to December 2011, Asian tourist arrivals in South Africa increased by 15%.

33

destination Gauteng 2013

destination overview

Tourism Gauteng’s revenue from tourism is approaching R30-billion.

Sector Highlights The Big Five can be seen at the province’s newest game reserve. • Open-top bus tours are coming to Gauteng. • AmaGeePee cards are persuading locals to be tourists. • SAB World of Beer has won a top tourist award.

major companies

Sandton Square in Johannesburg.

G

auteng has a new game reserve. The launch in 2011 of the Dinokeng Game Reserve adds considerably to the number of prime natural assets in the province’s tourism register. Gauteng is visited by more than half of the visitors to South Africa, and is primarily known for business or retail tourism. The conference and exhibition sector is dealt with in a separate section of this publication. In 2011, Gauteng’s tourism revenue increased to R27.5-billion from the previous year’s income of R26.9-billion. The province’s natural beauty is less well-known, but there are many attractive options for open-air tourism.

destination gauteng 2013

34

The Dinokeng Game Reserve (DGR) is north-east of Johannesburg and Tshwane, and hosts the Big Five on 18 500 hectares of bushveld. The reserve is a part of a larger Dinokeng Project to uplift local communities. It is spearheaded by the Gauteng Department of Economic Development (DED) and includes input from the DGR Management Association (DGRMA) and private landowners. Blesbokspruit, near Springs, is another example of a fine outdoor destination. It is a

photo: johannesburg department of tourism

• Tsogo Sun • Protea Hotels • Sun International • Imperial Holdings • Bidvest • Cullinan Holdings • The Legacy Group • Tourvest

photo: ela/flickr

destination overview Ramsar wetland and an important refuge for a vast variety of waterbirds, ranging from the Spur-winged goose to the Goliath heron. The Magaliesberg mountain range is within easy driving distance of all the urban areas. The Sterkfontein and Wonder Caves are near the Cradle of Humankind site on the West Rand, where the Krugersdorp Game Reserve and Rhino and Lion Nature Reserve are also located. Johannesburg itself has many green lungs, including the Johannesburg Zoo and Emmarentia Dam. To the south of the province, Sedibeng District boasts the Suikerbosrand Nature Reserve, which has excellent facilities for multi-day hikes. The Pretoria Zoo is rightly renowned and is the biggest in the country. In the Wonderboom Nature Reserve, a 1 000-year-old fig tree reminds visitors of an earlier time, and Pretoria’s 76-hectare botanical gardens help to make the city a pleasant place to be. Ekurhuleni has several lakes and bird sanctuaries, such as the Korsman and Rondebult, together with the Rietvlei Zoo and Nature Reserve. A tourism niche that has much potential to grow is water sports. The provincial government is developing a Water Sport Strategy to guide policy. The Vaal River is one of many large and safe water bodies in the province. Another strategy being employed is ‘Stay Another Day’, a plan to persuade business people to prolong their

A wealth of archaeological finds are displayed at the Cradle of Humankind. stays in the province beyond the last day of a conference or the day of a meeting. Attempts to grow the domestic market are packaged as ‘AmaGeePee’. Loyalty cards have been distributed to 15 000 clients, with free and discounted tickets at the centre of the campaign. Open-top bus tours will become part of the Johannesburg scene in 2013, with the arrival of the franchised South African City Sightseeing operation. MEC for Economic Development Qedani Mahlangu has praised entrepreneur Claus Tworeck for investing R20-million in the project, which will be extended to Pretoria in due course. The busses will stop at Gautrain stops to allow visitors to move easily between the two cities – and experience both guided tours in a day. Culture and heritage are strong sectors that are being promoted by the local tourism authorities, with many fine museums, such as the Apartheid Museum, which tells the story of South Africa’s struggle for freedom from apartheid. Kliptown in Soweto is the site of the signing of the Freedom Charter. An urban regeneration project has seen the development of the Walter Sisulu Square of Dedication. Constitution Hill is an old prison converted to house the country’s most important court, and several significant old buildings have been restored around it. The impressive visitors’ centre at Maropeng is a highlight for many visitors to one of Gauteng’s most popular tourist sites, the Cradle of Humankind. This offers a glimpse of ancient man in 2 500 square metres of exhibition space served by modern interactive exhibits. The nearby Sterkfontein caves, owned the University of the Witwatersrand, have long been a source of great archaeological finds.

35

destination Gauteng 2013

destination overview The university’s own Origins Centre in Johannesburg is well equipped, and provides more fascinating insights into the origins of mankind through art and science. The centre hosts superb representations of Khoi and San rock art. Another site where South Africa’s history is on display is at Freedom Park, a sprawling complex of museums, open spaces and memorials on a hillside overlooking Pretoria. Gauteng is the home of the tourist attraction that won a major award in 2011. The South African Breweries (SAB) World of Beer in downtown Johannesburg won the national Welcome Award for the country’s overall top tourist attraction. The Welcome Awards is the competition organised by South African Tourism and sponsored by First National Bank. The Sandton Sun won the Online Award. South Africa’s biggest hotel groups are well represented in Gauteng. Tsogo Sun has 26 hotels across three brands in the province. All three are represented by one hotel each at OR Tambo International Airport. Protea Hotels has eight hotels in Johannesburg. Two international hotel groups are thinking about enlarging their South African footprint. Marriott International is looking at a Johannesburg site, and is thinking about introducing its three-star brand across the country. Hilton Worldwide is focused on Cape Town and Johannesburg, and may also introduce its brands that operate below five-star level: Doubletree and Garden Inn. The Hilton Sandton is close to the Sandton Convention Centre. The Grace has changed hands (see separate article) and the Lonrho Group has signalled the start of an aggressive campaign to open hotels across Africa, with the launch of an easyHotel in the old Stuttafords building on the corner of Rissik and Pritchard streets. The budget brand will open 50 properties in Africa by 2016. At the other end of the scale in terms of design is the 12 Decades Hotel in the Mabobeng Precinct, a trendy new development in eastern Johannesburg. Each of the rooms has been individually designed by an artist to depict a decade in the city’s history.

Online resources City of Tshwane Metropolitan Municipality: www.tshwane.gov.za/tourism Cradle of Humankind: www.maropeng.co.za Ekurhuleni: www.ekurhuleni.com Dinokeng: www.dinokeng.co.za Gauteng Tourism Authority: www.gauteng.net Johannesburg: www.joburgtourism.com South African Tourism: www.southafrica.net South African Tourism Services: www.satsa.com destination gauteng 2013

36

The Legacy Group, which already has the Lost City, the Sun City Resort, Nelson Mandela Square, the Michelangelo and Michelangelo Towers in its portfolio, added the DaVinci Hotel on Nelson Mandela Square in time for the Soccer World Cup in 2010. What makes the development somewhat unusual is the accommodation mix, with 166 hotel rooms anchoring 54 apartments in the upper reaches, with a further four luxurious penthouses above that. The tourism distribution channel is dominated by four major groups in South Africa, each of which runs several companies in different parts of the value chain, and all of which are active in Gauteng. The biggest groups are: • Imperial Holdings: companies include Europcar and Tempest Car Hire, Springbok Atlas and Grosvenor Tours • Bidvest Travel and Aviation: Rennies Foreign Exchange, BidTravel, Harvey World Travel, Budget Car Rental, HRG Rennies Travel and BidAir Services • Cullinan Holdings: Thompsons, Hylton Ross Tours, and Pentravel • Tourvest: The group has companies dealing with every aspect of the tourist experience: tour operators and conference organisers (Seekers Travel), foreign exchange (American Express Travel Services), retail (gift shops and duty free shops), and hotels (African Hotels and Adventures)

h

accommodation & conference venue

Indaba Hotel The Indaba Hotel in Sandton offers a truly African experience.

The hotel is an ideal conference venue.

Chief’s Boma Restaurant.

The Indaba Hotel’s country style and treelined lanes welcome all guests to a secure and tranquil environment. The hotel has 260 en-suite bedrooms, each with its own teaand coffee-making facilities, limited DStv channels, safe, dial-up Internet connectivity, and 24 conference venues. Hot-spots can also be found in areas around the property. Chief’s Boma Restaurant is situated at the Indaba Hotel and offers a scrumptious African feast, including traditional cuisine and a variety of game meats. Sitting at your table, you are surrounded by the sounds of Marimba, while overlooking the hotel’s very own watering hole. Over 130 species of birds have been spotted on the hotel premises.

cuisine, two swimming pools, outdoor chess and bird watching. This jewel is only approximately 40km from OR Tambo International Airport and 15km from the centre of Sandton. Once inside the hotel’s walls, guests feel like they could be anywhere in Africa, and it is the perfect place to strategise with colleagues, relax with friends and family, or have a romantic weekend away with a loved one without being too far from home. With 60 years of tried and tested excellence, come enjoy the Indaba Hotel – always ready to welcome you!

Contact details

Guests can relax in the comfort of the Day Spa, which is a truly indulgent experience, Key contact person with traditional massage using techniques Sharon Hunink, Sales Manager such as hot stones and rungu sticks. Combine business and pleasure with the unique con- Tel: +27 11 840 6600/6770 ference and spa packages, or treat loved ones Fax: +27 11 840 6610 to an evening of luxurious pampering. Email: sharonh@indabahotel.co.za Address: William Nicol Drive, Fourways, Other facilities include Epsom Terrace Johannesburg Restaurant, which offers cosmopolitan-type destination gauteng 2013

38

17 hectares of property – plenty of open space 24 multi purpose conference / banquet venues 260 en-suite bedrooms queen deluxe rooms All venues have natural light Chief’s Boma – African Dining Experience Restaurant Beauty and Relaxation Beauty Salon Pampering Day Spa

Tel: +27(0)11 840 6600

Web: www.indabahotel.co.za

Indaba Hotel and Conference Centre

Email: sales@indabahotel.co.za @IndabaHotel

destination overview

Events and conference facilities Gauteng is strengthening its position as a continental leader in conferences and exhibitions.

W

hen the Exhibition Association of South Africa held its Sector Highlights 2011 awards, Gauteng proved once again that it has The Johannesburg Internathe spaces and skills to maintain its leading position tional Motor Show won ‘Exhiin the meetings, incentives, conferences and exhibitions (MICE) bition of the Year’ in 2011. sector. The CSIR International Convention Centre in Pretoria • Johannesburg is set to was the winner in the exhibition and special event venues bid for the 2014 Sport catagory of the 2011 Welcome Awards, which are arranged by Accord. SA Tourism. • One Young World 2013 In the national context, both Durban and Cape Town offer will be held in Gauteng. stiff competition, but the three cities are coordinating their efforts through the newly formed National Conference Board (NCB). The NCB is an initiative of SA Tourism and aims to major companies increase the number of exhibitions to 100 by 2015, and add • Johannesburg 50 new events to the national calendar by 2015. Convention Bureau South Africa already has more than 200 meetings and con• Johannesburg Expo ferences confirmed up to 2017, with about 300 000 delegates Centre expected to attend. • Coca-Cola Dome The Johannesburg Tourism Company has a dedicated unit, • Sandton Convention the Johannesburg Convention Bureau (JCB), which works to Centre attract new business to the city. The JCB assists companies in • Gallagher Convention preparing bid documents, and is on hand to assist in supplying Centre relevant information in key areas such as telecommunications • Kyalami Events and and IT services, and the securing of visas for delegates. Exhibition Venue The continental tourism expo, Meetings Africa, is held in • Dogan Trading Johannesburg, helping to cement the city’s position in the • Montgomery Africa business tourism market. In 2011, the JCB announced that it had secured conferences central part of the province’s and exhibitions that would inject an estimated R200-million MICE strategy. into the city’s economy. These include: This is another area where • International Small Business Congress, 2012 a new level of national coor• International Council of Game and Wildlife Conservation dination is taking place. The General Assembly, 2012 first Sports and Events Tourism • World Anti-Doping Congress, 2013 Exchange was held in 2012 • One Young World, 2013 (in Durban) and served to • International Mineralogical Association, 2014 showcase, to 191 delegates It is likely that Gauteng will bid for the 2014 Sport Accord, an from 25 countries, what South international conference that brings together all of the world’s Africa has to offer. A steering major sports federations. Gauteng brands itself as the ‘Home committee representing the of Champions’, hence sports events and conferences are a likes of the national Olympic destination gauteng 2013

40

destination overview Category

Exhibition

Company

Best small consumer exhibition

SABC Education Baba Indaba

Three City Events

Best medium-sized consumer exhibition

The Baby Expo MamaMagic

Exposure Marketing

Best large consumer exhibition

Homemakers Expo

Homemakers

Best small trade exhibition

Meetings Africa

Scan on Show

Best medium-sized trade exhibition

Automechanika

Dogan Trading

Best small trade and consumer exhibition

Hobby X Johannesburg

Expo Trends

Best medium-sized trade and consumer exhibition

Grand Designs Live

Montgomery Africa

Best large trade and consumer exhibition

Decorex SA, Johannesburg

Thebe Exhibitions and Projects Group

Exhibition of the year, 2011

The Johannesburg International Motor Show

Dogan Trading

Gauteng winners, 2011 Exsa Awards. SOURCE: Exhibition Association of South Africa

Committee, South African Tourism and the South African Sports Confederation is tasked with taking the concept further. The city of Ekurhuleni will host Airport Cities: World Conference and Exhibition in 2013. This is part of the city’s plan to establish an aerotropolis around OR Tambo International Airport. There are a number of venues that can be used for big exhibitions, concerts or conferences: • Johannesburg Expo Centre, Nasrec. Capacity: 15 000 • Coca-Cola Dome, Randburg. Capacity: 14 000 • Gallagher Convention Centre, Midrand. Capacity: 12 000 • Standard Bank Arena, New Doornfontein. Capacity: 6 300 Eskom’s Megawatt Park

Conference Centre and the Absa Convention Centre in Tshwane are some of the larger venues outside Johannesburg. Pretoria’s Muckleneuk Ridge Conference Centre (University of Pretoria) and OR Tambo Building (National Department of International Relations and Cooperation) offer large venues. In the Ekurhuleni metropole, the Airport Grand Hotel and Conference Centre is particularly well situated in relation to the main airport.The revamped Turbine Hall of the city’s old power station, run by The Forum, is ideal for smaller conferences, parties, weddings and as a fashion show venue. The vast spaces and 1920s industrial architecture combine to make this a popular inner-city venue. Two of the region’s biggest venues are in the centrally located town of Midrand: Gallagher Estate and Kyalami Events and Exhibition Venue are both popular venues.

Online resources Exhibition Association of South Africa: www.exsa.co.za Gallagher Convention Centre: www.gallagher.co.za Johannesburg Convention Bureau: www.joburgtourism.co.za Johannesburg Expo Centre: www.expocentre.co.za SA conference directory: www.saconference.co.za Sandton Convention Centre: www.saconvention.co.za Southern African Association for the Conference Industry: www.saaci.co.za

41

destination Gauteng 2013

interview

Network supports deal flow Frontier Market Intelligence Ltd, a UK-registered company, recently acquired leading publishing company Global Africa Network, and has launched a ground-breaking online business network specifically for ‘frontier’ markets. FMI’s co-founder and CEO Chris Pilling gives South African Business an insight into the company and the product. Chris Pilling

Chris Pilling is a media and technology entrepreneur who has been the founder and CEO of a number of successful businesses. His particular focus has been on the development of online business-to-business information services and the formation of online business communities. In 1997, he founded a company in the UK called Complinet, an online intelligence provider for financial services regulatory professionals. When the business was sold to Thomson Reuters in May 2010, the company was generating revenues of £25-million and employed 230 staff in five offices around the world. GAUTENG COMPANIES 2013

What is the Frontier Market Network? The Frontier Market Network, www.frontiermarketnetwork.com, is the largest premium online business network for fast-growing ‘frontier’ markets. This network or community comprises companies, government organisations and individuals involved in doing business, investing, promoting or supporting deal transactions in rapidly developing economies. The network is a source of highly valuable business information, which allows members to substantially increase business leads and business transactions in the markets in which they operate. The network has been built using next-generation web technology that focuses on the importance of the business relationships between the members. Rather than connecting people and businesses because of who they know, the Frontier network will allow connections based on the business deals they wish to complete. It is this focus on the deal-making and transaction process that sets Frontier apart from more traditional networking platforms. What services and benefits does the Frontier Network offers its members? Essentially we are offering our members business leads and deal flow. Whether you are a government department tasked with investment promotion, a private equity company seeking new investments or a solar-panel manufacturer looking for new distribution agreements, ultimately the ambition of each of these organisations is to do more transactions. Once firms are members of the network they are able to: • Network with other people, companies and organisations • Promote investment opportunities and attract investors • Promote business opportunities and establish new business relationships • Profile their companies and executives • Promote products and services

42

interview

• Access business intelligence on companies, specific projects at the specific time they

countries and regions to assist in making require a service. investment and business decisions • Receive email alerts about business oppor- Could you give some background to your tunities that match their sectors and regions company? The Frontier Market Network is a product of interest of Frontier Market Intelligence Ltd (FMI) a Could you give us more of an idea of the types UK company that has offices in Cape Town, of members on your network? London, Nairobi, Abuja and Johannesburg. The following types of organisations form part FMI is the parent company of Cape Townof the target market: based Global Africa Network (Pty) Ltd, the • Businesses, business owners and market-leading business-to-business publisher that already owns and produces a range of entrepreneurs • Private equity and venture capital companies premium print business annuals (such as South • Government bodies and agencies – in par- African Business), in addition to the groundbreaking digital products TradeInvest SA ticular, investment promotion agencies • Professional services companies such as law (www.tradeinvestsa.co.za) and TradeInvest Africa firms, accountants, tax consultants, regula- (www.tradeinvestafrica.com). The TradeInvest tory firms, etc products are being merged with the Frontier • Specialists and environmental consultants network to create the biggest premium business • Banks, trade finance and corporate finance network for ‘frontier’ markets. firms • Development finance and aid organisations Why have you chosen a platform for ‘frontier’ markets in particular? • Research and due diligence companies We believe that the rapidly developing econoIs there a membership fee? mies in regions such as sub-Saharan Africa will Not for standard membership. You simply reg- soon be at the heart of the global economy. In ister online at which time you will be asked creating the Frontier Market Network, we aim to about your business and your specific areas provide a platform for those that are shaping of interest so we can appropriately profile you and growing these economies. Many international companies are keen to and make sure you only receive information and opportunities that are relevant to you. At initiate business and investment conversations any stage you can adjust this profile to extend with companies in countries such as South Africa, or reduce the range of information that you but struggle because they don’t have access to local business networks that allow them to effecwish to receive. There is a cost should you wish to become tively research and then complete deals. In the a premium member. Premium members enjoy same way, there are many excellent local coma wide range of additional benefits, including panies that are seeking international partners or the capacity to associate their company with investors but don’t have access to the international business networks. Not only does Frontier specific opportunities on our platform. For example, if you are an environmental- provide a solution for these stakeholders, but research company based in Durban and a pre- critically, we can then engage the relevant ‘dealmium member of the network, we will ensure support suppliers’ such as lawyers, research that your company is presented to other mem- consultants, accountants, etc that can actually bers of the network who may be negotiating tie transactions together. Traditional social netdeals that require an environmental study works link people; however, our platform creates before completion. In summary, we associate linked clusters of businesses and people based companies with potential customers around upon specific business opportunities.

43

GAUTENG COMPANIES 2013

46 51 58 60 62 81 109

key sectors Overview of the main economic sectors of Gauteng Province

Tourism���������������������������������������������������������������������������� 34 Agriculture���������������������������������������������������������������������� 46 Events and conferences������������������������������������������ 40 Mining������������������������������������������������������������������������������� 51 Manufacturing�������������������������������������������������������������� 58 Automotive�������������������������������������������������������������������� 60 Food and beverages������������������������������������������������� 62 Engineering������������������������������������������������������������������� 64 Transport������������������������������������������������������������������������� 73 Infrastructure���������������������������������������������������������������� 80 Construction and property������������������������������������ 81 Water�������������������������������������������������������������������������������� 88 Energy���������������������������������������������������������������������������� 100 Media����������������������������������������������������������������������������� 106 Advertising������������������������������������������������������������������ 108 Film��������������������������������������������������������������������������������� 109 Information and communications technology����������������������������� 110 Banking and financial services������������������������� 114 Development finance and SMME support�������������������������������������������������� 122 Call centres and business process outsourcing����������������������������������������������� 132 Education and training����������������������������������������� 133 Business organisations����������������������������������������� 144 South African National Government�������������������������������������������� 146 Gauteng Provincial Government��������������������� 156 Gauteng Local Government������������������������������� 166 Gauteng companies 2013

OVERVIEW

Agriculture Poultry farming is one of Gauteng’s biggest subsectors.

Gauteng companies 2013

46

Sector Highlights Food security is a provincial government priority. • Walmart’s investment in South Africa could create opportunities for emerging farmers. • Crocodiles are farmed outside Pretoria.

major companies

• Afgri • Astral Foods • Rainbow • Daybreak Farms • Kanhym Agrimills • Karan Beef

photo: Hadleygrass is asparagus/flickr

A

s the most populous region of South Africa, Gauteng Province consumes huge quantities of food. South Africans eat more chicken than any other meat. An article in the Mail & Guardian (13 July 2012) put the average consumption of chickens by South Africans at more than two per month. This equates to more than a billion a year. Poultry farm and production facilities abound in Gauteng. Astral Foods, Rainbow and Daybreak Farms are among the biggest companies in the province. This sector is dealt with in detail in the overview of the food and beverage sector. Gauteng’s agricultural sector is largely concentrated on producing vegetables for the huge cities that dominate the region. There is commercial farming in the southern sector of the province (part of South Africa’s maize triangle) and the farming of cotton, groundnuts and sorghum is undertaken in areas near Bronkhorstspruit (east) and Heidelberg (in the south). Heidelberg is also home to Africa’s largest feedlot for cattle: Karan Beef’s facility can accommodate 120 000 cattle. The feedmill processes 1 400 tons per day, and the associated abattoir

photo: New Brunswick Tourism/flickr

OVERVIEW in Balfour in neighbouring Mpumalanga sometimes deals with 1 800 head of cattle per day. The 2 330-hectare Karan estate also includes a game farm and an eco-development. Other products that are produced in large volumes in the province are fruit, dairy products and eggs. Western Gauteng has large-scale commercial farming in maize, grain, sunflower seeds and beef cattle, but relatively little agriprocessing is done in this part of the province. South Africa’s biggest agricultural company is Afgri, which had revenue in 2011 of R7.3-billion. The group has recently been through a restructuring, which aligned all of the business units with the grain supply chain. Most of these units have also been moved to corporate headquarters in Centurion, Tshwane. The Kanhym Agrimill in Vereeniging is one of three in the company’s portfolio, which collectively processes 250 000 tons of animal feed annually. Kanhym Estates is the largest producer of pigs in the country, and the company’s Middelburg farm in Mpumalanga is geared to supply the Gauteng market. A somewhat more exotic product is provided by Izintaba farm outside Pretoria – crocodiles. The country has three tanneries and produces about 55 000 crocodile skins every year.

Food security The planting of fruit-bearing trees and food gardens forms

Roof gardens are a novel way to utilise space for agriculture. a part of the rural development brief of the Gauteng Provincial Department of Health and Social Development (DHSD). Food packs are distributed to poor children and five food banks run by the DHSD in each of the province’s regions ensure that the neediest citizens have food. The budget allocation for Agriculture and Rural Development in 2012/13 is R71-million; this will rise to R85-million in 2014/15. The biggest slice of funding is given over to the Comprehensive Agricultural Support Programme Grant (CASP) to support newly established and emerging farmers. In supporting emerging farmers, government intends to promote food security. In 2012, the Provincial Department of Agriculture and Rural Development (DARD) initiated the Moringa Oliveira Project in the Moloto district in Tshwane. Crop production and pharmaceuticals are being targeted as products, with the potential for biodiesel manufacturing at a later stage. The DARD is putting R6-million into the 25-hectare project in 2012/13. The first phase entailed the planting of 51 000 Moringa trees, and expansion to 60 hectares is planned. A form of soy protein is being promoted as a way of providing important nutrients to people who may not be able to afford meat. Private company Prosoy is considering building an extraction facility in the province, using local beans as its feedstock. In July 2011, the University of Johannesburg School of Tourism and Hospitality showed off a functional soy protein, which may have considerable implications for food security. Massmart, the retail group that has been bought by US giant Walmart, will invest R15-million in the four years to 2017 to

47

Gauteng companies 2013

OVERVIEW create opportunities in its food chain for emerging farmers. Techno-Serve, a non-governmental organisation, will oversee the programme. The National Department of Agriculture, Forestry and Fisheries (DAFF) has budgeted R4-billion for the task of getting emerging farmers into the mainstream economy. Agri-processing is an excellent means to create employment and promote entrepreneurship. The National Department of Trade and Industry puts the figure of employees in the sector at 177 000, one of the highest in the manufacturing sector. In 2011/12, the DARD erected 21 boreholes, 12 layer structures, 16 broiler structures, 11 piggery structures, 15 fences and 45 hydroponic structures, and intends putting up hatcheries, storage facilities and a citrus pack house in 2012/13. Vegetable agri-parks are also planned for Tarlton and Wadeville. Six major agri-processing projects are in the pipeline, including milking parlours at Devon and Elandsfontein, a feed-milling plant in Tarlton and storage packing sheds in Heidelberg, Cullinan and Vaal. The development of small-scale farming and co-operatives is also being promoted at the level of provincial government and district municipality. Even über-urban Johannesburg is getting in on the drive to provide food security. Since 2011, the Johannesburg Development Agency (JDA) has promoted three roof-top garden initiatives in downtown Johannesburg: in the CBD, in Troyeville and in Hillbrow.

Research Agricultural research is undertaken at a number of institutions throughout Gauteng, and the province’s universities provide many opportunities for study in the field. The African Centre for

Online resources Agricultural Economics Association of South Africa: www.aeasa.org.za Agricultural Research Council: www.arc.agric.za AgriSA: www.agriinfo.co.za Gauteng Department of Agriculture and Rural Development: www.gdard.gpg.gov.za Gauteng Department of Health and Social Development: www.healthandsocdev.gpg.gov.za Johannesburg Development Agency: www.jda.org.za National Department of Agriculture, Forestry and Fisheries: www.nda.agric.za South African Crocodile Farming Association: www.sacfa.co.za South African Poultry Association: www.sapoultry.co.za

Gauteng companies 2013

48

Gene Technologies (ACGT) is a collaborative effort between the Council for Scientific and Industrial Research (CSIR), Wits University and the University of Pretoria, on whose experimental farm ACGT is based. ACGT’s partnerships include the University of Johannesburg and the Agricultural Research Council (ARC). A number of the ARC’s national research facilities are in Gauteng: • Roodeplaat Vegetable and Ornamental Plant Institute, Pretoria • Onderstepoort Veterinary Institute, north of Pretoria • Animal Production, Irene, south of Pretoria The ARC’s Natural Resources and Engineering Division has several business units, all of which are based in Pretoria: • Soil, Climate and Water • Agricultural Engineering • Plant Protection Research Institute The Forestry and Agricultural Biotechnology Institute (FABI) is located at the University of Pretoria, which is also linked to the Onderstepoort Veterinary Institute through its Veterinary Sciences degree programme. The university’s faculty of Natural and Agricultural Sciences offers a range of degrees, while Animal Production and Equine Science are presented at the Tshwane University of Technology.

message

Improving food security is a priority Minister for Agriculture, Forestry and Fisheries Tina Joemat-Pettersson highlights the priorities of the department in improving the lives of ordinary South Africans.

The ‘right to food’ as enshrined in our Constitution and the Freedom Charter, demands a rethinking of our past approaches to food security. We can produce enough food, but whether the poor can afford the food on the shelves largely determines South Africa’s food-security status as a country. High food prices and food-price volatility will be one of the greatest challenges to our nation over the next few years. This will further be exacerbated by high fuel and high energy prices. To curb these challenges, smallholder farmers will be assisted with the provision of livestock, tractors, implements, seeds and fertilisers. ‘One family, one vegetable garden’ should be the mantra of each and every family in South Africa.

Agro-processing Tina Joemat-Pettersson

A

s the Department of Agriculture, Forestry and Fisheries (DAFF), we believe that the goal of a developmental state can only be reached when our people gain access to food within an economy that promotes sustainable livelihoods. For this reason, our draft food security policy and zero hunger strategy promotes equity and prioritises the eradication of poverty and reduction of inequality among our people.

We will increase agro-processing investments as a means of reinvigorating specific strategic value chains such as soya beans, rooibos, beverages, fruit and vegetables, and forestry. R50-million will be allocated for the promotion of local agroprocessing businesses. An equitable-food-security economy will improve access to markets for especially smallholder farmers. It is important that we seek to increase the extent to which we export processed rather than unprocessed agricultural products. The entire value chain of biofuels will also be a priority.

Employment Food processing and agro-industries have provided jobs, demonstrating growth of over 25 000 agricultural jobs in the sector for the third quarter of 2011. A further 6 000 agriculture-related jobs were created in the fourth quarter of 2011, which is a yearon-year growth of 3%. This has brought the total employment in the sector to 630 000.

International trade South Africa’s trade of both primary and processed agricultural products has grown from R10-billion worth of exports in 1996,

49

Gauteng companies 2013

message to about R48-billion in 2011. Our wine exports are soaring, notwithstanding the recent global economic slowdown. We are now exporting three times more wine than we did a decade ago. Exports of fish and fish products have rapidly expanded in China and Cameroon. Timber and forestry products are gaining ground in China and Indonesia. We are exporting more and more maize to Zimbabwe. Despite our success story as a country that is a net exporter of food, international trade has yet to include more black farmers in the equation. As a department we are committed to changing this. Our department is positioning itself to participate in a meaningful way in BRICS. The department will open offices in Russia, India and Brazil, in addition to the one which is already operating in China.

• The refurbishment and

upgrading of agricultural colleges • Various projects such as grain storage facilities and rehabilitated irrigation schemes in the former homelands, fencing including border fences and animal quarantine facilities at our borders To support these initiatives the Comprehensive Agricultural Support Programme (CASP) is allocated R1.5-billion, of which Funding allocation over R52.5-million will be The department is the custodian of South Africa’s forest used for infrastructure at the resources, which cover over 40 million hectares of the coun- agricultural colleges, R322try’s land surface area. The forest sector employs about 201 025 million for the extension workers and provides approximately 77 000 direct jobs and recovery plan, R762-million 30 000 indirect jobs. The Forestry and Natural Resources for infrastructure (mostly onManagement branch will get R1.2-billion during this financial farm), and R398-million for year to manage our forests and natural resources. flood-damaged infrastructure Our country has been plagued by natural disasters and animal in disaster areas. diseases. Between December 2010 and January 2011, we had In addition, the Land Care devastating floods in a number of provinces. We have begun allocation for the coming year the process of implementing the Flood Assistance Scheme, with is R115-million, while the Ilima/ its emphasis on infrastructure repairs. An amount of more than Letsema programme gets a R990-million has been made available through the MTEF period total of R415-million. until 2014/15 as part of the scheme. I appeal to all members of Animal disease outbreaks have presented serious challenges the department and readers of to our industry. Our department will have to improve on its this publication to look deep capacity to deal with such disasters, as they impact adversely into your work and your hearts and ask what more you can do on the rural economy. R954-million is allocated for plant and animal production, to contribute to making South including inspection and laboratory services, and R935-million Africa a better country. Together, for agricultural research, which represents a substantial increase we can work towards food over the previous year’s allocation. Furthermore, R868-million is security for all. allocated to food security initiatives and R349-million for extension support services, including new-farmer development support. Our ‘Strategic Integrated Project 11’ on agro-logistics and rural infrastructure (part of the integrated infrastructure plan approved by the Cabinet and the Presidential Infrastructure Coordinating Commission) includes plans for the following: • Fresh-produce marketing depots for smallholder farmers • Production infrastructure for crops and animals • The revitalisation of various irrigation schemes, including the Vaalharts-Taung irrigation scheme Gauteng companies 2013

50

OVERVIEW

Mining Gauteng is at the centre of mining research.

Sector Highlights Scientists have made a breakthrough in the commercial use of gold. • Joy Global Africa is a new entity that manufactures mining equipment and provides services to the industry. • Mining accounts for 31% of Gauteng’s export earnings. • 33 000 Harmony employees are becoming shareholders.

major companies The Gold Fields South Deep mine on the West Rand.

photo: Gold fields

S

ix percent of Gauteng’s income and 31% of the province’s export earnings come from the mining sector. Gold is the mineral that first brought the Witwatersrand, the rocky ridge on which Johannesburg was built, to the attention of the world. Although there are still important gold mines in the province, the country now only has 10% of the world’s gold reserves. Good gold prices during the time of economic uncertainty in the world have helped gold producers. A massive gold reef stretching over 400km across Gauteng and the northern Free State was the reason for South Africa’s pre-eminence in global gold production for so many years. South African general mining production volumes increased in the year to January 2011 after four years of decline. This was largely based on increased demand for iron ore from India and China, and iron ore is not part of Gauteng’s mineral complement. Gold production volumes have generally been in decline. South Africa’s massive resource has been the most productive of all time, but the gold that remains in the ground is becoming harder and harder to reach. A very high gold price of $1 619 per ounce in June 2012 was a motivating factor for miners to roll out new projects, but

51

• Village Main • Gold Fields • Harmony • AngloGold Ashanti • DRD Gold • Petra Diamonds • Rand Refinery Limited • Mintek the fact of the high price of extraction remains. Gold Fields is investing in increased production capacity at its South Deep mine. A joint venture between Gold Fields and Gold One is exploring the possibilities of extracting gold from about 700 million tons of ore tailings on the West Rand. South Africa’s thirdbiggest gold miner, Harmony, announced in 2012 that more than four million ordinary shares and eight million Gauteng companies 2013

OVERVIEW

Research hub Gauteng is at the heart of research for the mining industry and the training of qualified staff. One of the Gauteng companies 2013

Analytical laboratory work is an essential component of the mining industry. leaders in this field is Mintek. An autonomous body based in Randburg, this research and development unit receives about 30% of its R390-million annual budget from the National Department of Mineral Resources. The balance comes from joint ventures with the private sector, or is earned in research and development income, the sale of services and products and from technology licensing agreements. Mintek has a permanent staff of 780 and offers everything from preliminary investigations through piloting, to full-scale feasibility studies. It has internationally accredited analytical laboratory and mineralogical services. A joint initiative between Mintek, the National Department of Science and Technology (DST) and AngloGold Ashanti has resulted in the creation of a plant that manufactures gold catalysts. Project AuTEK began in the year 2000. Engineering News reported in 2012 that the project’s scientists have found a way of getting gold catalysts to play a role in improving fuel cell efficiency by oxidising carbon monoxide. Catalysts can be used anywhere that pollution needs to be removed. The University of the Witwatersrand (Wits) School of Mining has two centres that are part-funded by several mining houses and equipment suppliers, such as Xstrata, AngloGold Ashanti, Lonmin, BHP Billiton, Gold Fields, De Beers, Anglo Platinum, African Rainbow Minerals, Joy Global Africa and Sandvik. The Centre for Sustainability in Mining and Industry offers comprehensive courses in environmental impact assessment, sustainable development, health and safety legislation and community engagement. The Centre for Mechanised Mining Systems (MineMech) aims to be a centre of research for improved mechanised

52

photo: anglo american

share-appreciation rights had been offered to 33 000 members of its workforce. The company calculated that a qualifying employee might be paid out R10 000 for 100 ordinary shares after five years. Harmony operates mines in several provinces. Its Gauteng mines, Doornkop and Kusasalethu, are west of Johannesburg. The closure of some shafts and some mines has created opportunities for companies that specialise in closure and rehabilitation. An increased awareness of the dangers to communities’ water supplies created by toxic waste and acidic water from mines has brought work for companies specialising in environmental services and waste management. The service and manufacturing divisions of miningequipment company Joy Global have recently been combined into an entity called Joy Global Africa. The company has been making underground mining equipment (such as shuttle cars) for decades at its Wadeville plant. Some of the company’s 1 400 employees are employed at Steeldale, where parts are manufactured and distributed. The service division that has been incorporated was previously P&H MinePro Services Africa.

OVERVIEW

Kloof gold mine lies on the border of the Gauteng and North West provinces. mining and the introduction of automated systems, and to provide skilled engineers in an industry that has a skills shortage. Students studying for a Bachelor of Engineering degree through Pretoria University’s Department of Mining Engineering are obliged to participate in a community development project in the course of their studies. The University of Johannesburg offers a full-contact mine-surveying qualification, while the University of South Africa (Unisa) offers three national diplomas: in mine engineering, mine surveying and surface mining. Gauteng’s two universities of technology, Vaal and Tshwane, both offer courses relevant to the mining industry through their engineering faculties.

is underway and South Deep is undergoing a revamp to push production levels up to 800 000 ounces per year. The project has a budget to 2014 of R8.4-billion. The tailings joint venture with Gold One could see Gold Fields gain access to 4.5 million ounces of gold. Gold Fields has nine mines in South Africa and three other countries.

Gold

DRD Gold DRD Gold owns Crown, which is the world’s largest gold surface-tailings retreatment facility, and Blyvooruitzicht. In May 2012, the Competition Commission approved the sale of the troubled Blyvooruitzicht mine to Village Main.

The biggest gold mining companies and their Gauteng operations are:

photo: Gold fields

AngloGold Ashanti The West Wits complex near Carletonville straddles the border between the Gauteng and North West provinces and comprises three mines: Mponeng (which has its own processing plant), Savuka and Tau Tona (which share a plant). West Wits produced about 800 000 ounces of gold in 2011. AngloGold Ashanti has 21 operations on four continents and controls a resource base of 71.4 million ounces. It has seven mining operations in South Africa. Gold Fields Gold Fields operates Driefontein (in the North West Province near Carletonville), Kloof and South Deep (both sites near Westonaria). Deep digging to extend Driefontein’s operations

53

Harmony At the Doornkop South Reef project, 5.9 million ounces are estimated to be on-site. It is being developed at a cost of R1.7-billion. Elandsrand, on the border with North West Province, is a new operation on an old site which, when Gauteng companies 2013

OVERVIEW fully developed, will have an estimated output of 450 000 ounces per year. Harmony’s assets include mines in Papua New Guinea and Australia. The company produced 1.5 million ounces in 2011. Gold One International This junior mining company officially opened its Modder East mine in May 2010, the first new gold mine on the East Rand in nearly three decades. The project began in 2006 and the first ounce of gold was mined in July 2009. Gold One believes its joint venture with Gold Fields will enable it to gain access to 4.5 million ounces of gold among the tailings that it owns on the West Rand.

Other minerals The southern parts of Gauteng have historically produced a lot of coal used to fire power stations. These power stations have since been decommissioned. However, Heidelberg is still a source of coal, where a BEE operation, Anglo Inyosi Coal, has a project. Platinum is also mined at Elandsfontein, while Gauteng has many quarries supplying the construction and mining industries. Afrimat, a JSE-listed construction-materials supplier, made its first foray into the industrial minerals sector with the purchase in 2010 of the Glen Douglas dolomite mine from Exxaro. Afrimat has several quarries around the country (including the Blue Platinum quarry in Lanseria, purchased in 2009) but the Douglas mine output of 1.2 million tons will make it the largest in the company. Afrimat believes that the western, south-western and southern parts of Gauteng are developing rapidly and it wants to position itself to boost profitability and growth.

Refineries

The Zincor electrolytic refinery near Springs was shut down by Exxaro Resources in December 2011. It was the only zinc refinery in the country. The company is also due to sell its 22% share in a zinc smelter in China. Rand Refinery in Germiston is South Africa’s only gold refinery. Rand Refinery Limited (RRL), of which AngloGold Diamonds Ashanti is the majority shareholder, is spending R80-million on The owners of the Cullinan four projects designed to expand capacity, develop new prodmine north of Pretoria, Petra ucts and improve safety. A new copper-leaching plant (to extract Diamonds, aim to push pro- gold from copper base metals) and major upgrades to the arc duction at this famous mine furnace and ventilation systems are among the concrete steps up to 2.6 million carats per that will deliver increased capacity. Research is also being done year by 2019. The mine’s into improving the efficiency of electrolytic refining in extracting annual production is about platinum group metals. 900 000 carats. BHP Billiton has a metal alloys plant in Vereeniging. Exxaro Although it was the area company FerroAlloys produces gas-atomised ferrosilicon at its around Kimberley that first plant in Pretoria. gave South Africa its reputation for high-quality diamonds, it was from Cullinan that the Online resources greatest stones originated. Chamber of Mines South Africa: www.bullion.org.za The enormous 3 106-carat Council for Mineral Technology (Mintek): www.mintek.co.za Cullinan Diamond was cut Geological Society of South Africa: www.gssa.org.za into several famous smaller Johannesburg (official website): www.joburg.org.za diamonds, one of which, National Department of Mineral Resources: www.dmr.gov.za the 530-carat Great Star of Rand Refinery: www.randrefinery.com Africa, was presented to BritSouth African Institute of Mining and Metallurgy: ain’s King Edward VII on his www.saimm.co.za 66th birthday. Gauteng companies 2013

54

Unlimited resourcefulness applied… in a world of limited resources.

Nalco has, for over 80 years, understood how water, energy and air management challenges affect your business. Our technologies and services are designed to help you use less, recycle more and reduce your environmental footprint. While simultaneously reducing operational costs. From mining to petrochemicals to manufacturing, ranging from heavy industry to food processing, we bring world-class solutions for:

Backed by over 40,000 global employees, including 1,300 research professionals, Nalco Africa combines a unique understanding of water, energy and air systems with the world’s most advanced technologies. In a world of limited resources, we’re applying unlimited resourcefulness to help make the world cleaner, safer and healthier for everybody.

Water treatment, recycling and reuse Dust control Mineral recovery Emission control © 2012 Ecolab USA Inc. All rights reserved An Ecolab Company

PROFILE

KSM Group KSM Group is a one-stop destination for logistics, mining equipment and mining commodities.

KSM Group also facilitates the buying and selling of mines and mining commodities, such as copper, iron ore, manganese, chrome and coal, among many others. The mining department also deals with leasing and selling of mining equipment and all mining earthmoving machinery. As the company enters into a new dimension in the world Gauteng companies 2013

56

economy, it has been in a position to provide employment for many people, provide scholarships and get involved in other communitybased empowerment activities. The year 2012 has seen the company sign off on a major African mine, and thus a multi-million-dollar contract for the next five years. The company offers the highest and the bestquality service to the best of its abilities. It organises, supplies and manages professional service to the satisfaction of its esteemed clients.

Values The values of KSM are simply to deliver good service and quality products to the client. The company strives to maintain absolute integrity at all times, by being the one that sets values,

photo: anglo american

The company has grown in leaps and bounds over the last five years, and is now a global logistics organisation that deals with worldwide cargo, sea freight and road logistics in regions from sub-Saharan Africa to the Middle East, Europe and the Americas. The company holds a number of awards and accolades, such as recognition as a Top Empowerment Company as a result of its contribution to broad-based black economic empowerment and transformation.

PROFILE innovation, creativity and value-added services without compromising its business and ethics. KSM endorses the need for team spirit during all the various stages of a project from all participants and stakeholders.

Company ethics • Be customer focused • Create a passion for excellence • Be safety conscious • Make value contribution to the company and the community

• Do things right the first time • Always conduct business in a professional manner

equipment to mine acquisitions. The company also recently embarked on a partnership with some of Africa’s leading mines, and in turn, aims to have mining influence on a global spectrum. Mining and the resource sector in Africa remains the fastest-growing sector worldwide. Projects have escalated from 250 in 2003 to over 1 100 in 2010. Between 2008 and 2010, Namibia showed 44% growth in new projects. Between 2008 and 2010, South Africa showed 57% new project growth. Between 2008 and 2010, Tanzania showed 51% new project growth. Between 2008 and 2010, Ghana showed 64% new project growth. Forty percent of the 1 100 African Mining Projects are gold related.

KSM Logistics

Benefits

KSM Logistics offers a vast array of logis- • Companies benefit from the early stage tics solutions and warehousing solutions. As information with key contacts on mine owner, demand grew, KSM had to increase its sphere project engineer and engineering, procureof influence to a more global audience. As such, ment and construction management (ECPM) the company is in partnership with KWE MSASA level, enabling them to get specified before Global and many other companies. bidding stage • Companies actively track a project’s progress Impact through their projects of interest • Continuous offshore outsourcing activities • Companies have the facility to be listed as • New emerging markets a project supplier on the database with key • Increasing global sourcing strategies contact information • More complex supply-chain relationship • Companies have the ability to identify proopportunities jects that they were not previously aware of

Initiatives • Identifying and taking advantage of new

BEE status Black ownership: 100% Black directors: 100% Black staff: 100%

markets and emerging opportunities in China, India, Vietnam, Bangladesh and Russia • Identifying new opportunities in Cambodia and Myanmar • Adapting to the complexities of local opera- Contact details Key contact person: tional regulations • Vendor-management programmes to achieve Ben Miyoba, Chief Executive Officer supply-chain optimisation Email: benm@ksmgroup.co.za • Assistance in vendor/ODM education Tel: +27 73 760 5931 • Call-centre setup Fax: +27 86 640 3802 Email: info@ksmgroup.co.za Mining and mining equipment Physical address: 21 Valley Farm, Mooikloof KSM Mining has the ability to spot and deter- Ridge, Pretoria East 0001 mine market trends, thereby providing the Postal address: Postnet Suite 15, Private Bag best mining solutions ranging from mining X25, Sunnyside, Pretoria

57

Gauteng companies 2013

OVERVIEW

Manufacturing Gauteng leads the nation in manufacturing.

Sector Highlights An antiretroviral manufacturing plant is being constructed in Gauteng. • Railway firms are clustered in Ekurhuleni. • The provincial government has pledged to build a Bioscience Park.

major companies

• ArcelorMittal • Aspen • AECI • Kimberly-Clark • Procter & Gamble • PG Group • Transnet Rail Engineering • Union Carriage and Wagon

Gauteng companies 2013

58

photo: stephane gaudry/flickr

M

anufacturing forms a key component of the Gauteng envisages a growth rate in provincial economy, accounting for about 20% of GDP the industry of 8% by the and 27% of capital investment. Every kind of manufac- year 2014. turing takes place in the province: the automotive and food and The greatest concentrabeverage sectors are dealt with elsewhere in this publication. tion of manufacturing is in The Provincial Government of Gauteng intends creating a the Ekurhuleni Metropolitan Bioscience Park to promote downstream manufacturing in areas Municipality, especially the such as agri-processing and the pharmaceutical industry. The 15km stretch between WadeCSIR and the University of Pretoria are partners in the initiative. ville and Alrode, south-west The provincial government has identified three manufacturing of Alberton. Germiston has the counsectors as key for growth: • Automotive try’s largest rail junction, and • Clothing, textile, footwear and leather many rail industries have • Furniture developed in Ekurhuleni. The decision by sofa manufacturer Coricraft to build a Transnet Rail Engineering’s R50-million factory in Gauteng to complement its Cape Town complex in Germiston has received hundreds of millions facility is in line with the provincial government’s priorities. The master plan for manufacturing in the province, the Gauteng of rands worth of investments Advanced Manufacturing Sector Key Action Plan (Gamskap), in new machinery, while the

OVERVIEW nearby towns of Nigel and Boksburg host the workshops of Union Carriage and Wagon (UCW), DCD Rail and Lennings Rail Services, a company in the manufacturing division of Aveng. UCW is a Murray & Roberts company that makes and repairs locomotives, trains and coaches. Germiston is the site for a new R100-million plant being built for pump manufacturer Grundfos. Household products manufacturer Unilever represents an example of the lighter industrial capacity of the East Rand. Kellogg’s also has a large plant in Springs. Kimberly-Clark South Africa has spent R100-million on increasing capacity at its existing Enstra Mill in the same town, while Procter & Gamble spent R350-million in 2010 on expanding its nappy facility at Kempton Park. Vanderbijlpark and Vereeniging in southern Gauteng are synonymous with steel production. Flat iron is made at the plants of ArcelorMittal. AECI is a JSE-listed company with a market capitalisation of R7.4-billion. The two principal divisions are AEL Mining Services (with a large factory site at Modderfontein near Johannesburg) and Chemical Services, which has 20 separate companies. Senmin is the group’s miningchemicals company. There are 35 aluminiumprocessing companies in Gauteng. Products include secondary processing such as foils, cans, bars, rods and

sheets, and final fabrication such as die-casting and sheet metal work. The main clients in Gauteng are the automotive and packaging industries. South Africa’s pharmaceutical sector is worth approximately R20-billion per year. Although there are more than 200 pharmaceutical firms in the country, large companies tend to dominate the field, with Aspen (34%) and Adcock Ingram (25%) being the two key players. The bulk of Aspen Pharmacare’s manufacturing capacity is located in the Eastern Cape, and the company’s factory in Clayville, Midrand, makes infant formula. The JSE-listed company has a wholly owned distribution subsidiary called Pharmacare. The private sector accounts for 80% of pharmaceuticalindustry sales by value and 20% by volume, while the public sector accounts for 80% by volume and 20% by value. Adcock Ingram has been investing heavily in its South African operation. It produces more than two billion tablets and capsules per year. In the year to 2013, the company will spend just over R1-billion on new developments and upgrades. Of this amount, R400-million will be spent on a liquids plant at Clayville, R223-million on solids and antiretrovirals (ARVs) at Wadeville (Germiston) and R200-million on upgrades to the Critical Care Plant at Aeroton, south-west of Johannesburg. The company also has new headquarters, as does iNova Pharmaceuticals, which has relocated to Bedfordview. The latter company has grown its sales by 65% in three years. Two other big international names active in Gauteng are Merck, which has a 55 000m2 plant at Modderfontein, and Pfizer SA, which has a laboratory in Sandton. About R1.6-billion is to be invested in construction of a plant that will make antiretroviral medicine at Pelindaba outside Pretoria. This is a joint venture between several South African government departments and Swiss pharmaceutical giant Lonza.

Online resources Gauteng Department of Finance and Economic Affairs: www.finance.gpg.gov.za Manufacturing Circle: www.manufacturingcircle.co.za Manufacturing, Engineering and Related Services Sector Education and Training Authority: www.merseta.org.za National Association of Pharmaceutical Manufacturers: www.napm.co.za National Department of Trade and Industry: www.thedti.gov.za Pharmacy Industry Association of South Africa: www.piasa.co.za South African Bureau of Standards: www.sabs.co.za

59

Gauteng companies 2013

OVERVIEW

Automotive A Tshwane automotive hub aims to improve efficiency in the sector.

Sector Highlights BMW’s introduction of a third shift will create 600 jobs. • Armoured and mineprotected vehicles are made in Gauteng. • Nissan SA has won the contract to make the latest pick-up model. • Ford has ambitious production targets.

major companies

• BAE Systems OMC • BMW • Tata • Nissan • Ford • Johnson Matthey • Degussa Hüls Gear Ratio, Alberton) and make firing systems and turrets (BAE Systems Dynamics, auteng is home to the manufacturing facilities of some of Tshwane). the world’s biggest motor vehicle brands, such as BMW, BAE Systems OMC is the Ford and Nissan, a thriving automotive components principal supplier to both sector, several bus- and truck-assembly plants and companies the South African National that make internationally sought-after mine-protected and Defence Force and the South armoured vehicles. African Police Service, and DCD Protected Mobility makes armoured cars branded as exports to more than 40 counVehicle Mounted Mine Detectors, and lists the United States tries. Finland’s Defence Force Army and Marine Corps, the Australian, French and Kenyan recently paid R58-million for armies and the defence forces of Canada and South Africa 16 mine-hardened vehicles. among its clients. The vehicles are made in Boksburg. The Nissan/Renault plant at BAE Systems OMC is located in nearby Benoni. This com- Rosslyn, Pretoria, makes the pany designs and makes protected vehicles and is a subsidiary Renault Sondero hatchback, of Land Systems SA, a joint venture between BAE Systems (a Nissan light commercial vehi75% shareholder) and a black-empowerment group. The other cles and the Tida and Livina subsidiaries manufacture drive-train equipment (BAE Systems models. With the news that Scania has truck and bus assembly lines in Aeroton.

Gauteng companies 2013

60

photo: scania

G

OVERVIEW the plant will manufacture the latest pick-up truck model, overall production levels are expected to double to about 100 000 units by 2014. This will require the introduction of a second shift, and create 800 jobs. The BMW facility at Rosslyn is proud of its record as a manufacturer of the German marque’s famous 3 Series: it made 342 000 units of the discontinued model and has won the contract to make the newest one. Current production of about 50 000 units per annum (with about 80% destined for export) will rise above 90 000 and necessitate, for the first time in the plant’s history, a third shift. Ford Motor Company of South Africa has an assembly plant in Silverton, Pretoria, with plans for the assembly of 110 000 Ford Ranger pickup trucks at Silverton per year. Ford intends doubling production volumes every year from 2012 to 2016. Ford’s BEE Supplier Incubation Facility has spawned five brand-new companies in the supply sector. A similar initiative by Nissan is being supported by the provincial government of Gauteng. The Gauteng Growth and Development Agency has targeted an automotive logistics hub in Tshwane as a priority. The intention is to provide speedy freight links between Rosslyn (northwest), the city centre and Silverton (east). The Automotive Industry Development Centre (AIDC) in

Pretoria conducts research into key aspects of the industry and promotes the sector’s competitiveness through skills development and training, supplier development and improved supply chain management. The largest foreign investor in South Africa, Tata Group, opened its first South African vehicle-assembly plant in Pretoria in August 2011. The R110-million plant is able to assemble 3 650 trucks annually. Incentives from the National Department of Trade and Industry (dti) amounted to about R5.9-million, and it is possible that further incentives could persuade Tata to convert the assembly plant into a full-scale production facility. This is the company’s first big assembly plant to be developed outside India. Scania has truck and bus assembly lines at Aeroton, west of Johannesburg. Marcopolo, TFM Industries and MAN Truck and Bus South Africa have plants in Gauteng, with the latter company specialising in chassis and body production. Chinese truck manufacturer FAW has an assembly plant in Isando.

Components The components manufacturing subsector in South Africa is a R50-billion business. The majority of production is for export. Johnson Matthey, an important company in the catalytic converter field, has a plant in Germiston, and Degussa Hüls has a facility in Brakpan. Catalytic converters account for almost half of all component exports, but other key products include engines, silencers, exhausts, radiators, wheels and tyres, stitched-leather car-seat covers, car radios and axles, especially for heavy trucks. In the Gauteng automotive sector, 38 000 people are employed by 200 companies contributing about R13-billion to the local economy, or 4.3% of provincial gross domestic product. The increase in vehicle production volumes has been good for the sector. Ramsay Engineering has won big Ford and BMW contracts to make cross-beams at its Rosslyn plant.

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

61

Gauteng companies 2013

OVERVIEW

Food and beverages Food and beverage companies are attracted to Gauteng’s big market.

Sector Highlights The province hosts half of South Africa’s food and beverage companies. • Nestlé has four manufacturing plants in the province. • Pioneer Foods spent R150-million on a biscuit-making facility in Clayville.

major companies

N

estlé is spending R505-million on increasing its South African production capacity, with most of this occurring will also allow Nestlé to make in Gauteng. Gauteng’s huge population and its sophisti- Maggi pasta products at cated manufacturing capacity are the obvious reasons behind the plant. this move, one which is part of a trend. Nestlé also bottles water at Astral Foods, which has several companies in the poultry Doornkloof, makes ice cream sector and operates throughout South Africa, had revenues to in Clayville, pet food at Isando September 2011 of R8.6-billion. Two of the company’s broiler and infant cereal at Standproduction operations are located just east of Johannesburg, erton, in the neighbouring and two of its eight feed mills are in Randfontein (west of the province of Mpumalanga. Chocolate manufacturer provincial capital) and Delmas (to the east). Proximity to South Cadbury has plants in various Africa’s largest market is the key. Half the companies operating in the food and beverages parts of Southern Africa, but sector in South Africa are located in Gauteng. They employ its administrative headquarapproximately 50 000 workers and contribute more than ters are in Sandton. R10-billion to Gauteng’s gross geographic product (GGP). There are approximately 4 000 food-processing companies operating Diverse companies in the province. The Nestlé breakfast cereal plant under construction at A large number of South Babelegi north of Pretoria will cost R155-million. The changes Africa’s food and beverage

Gauteng companies 2013

62

photo: mediaclubsouthafrica.com

• Nestlé • Heineken • South African Breweries • Tiger Brands • Pioneer Foods • AVI • Astral

OVERVIEW brands are owned and controlled by three big companies. Tiger Brands is the industry leader with a turnover of R20.4-billion (2011). Pioneer Foods and AVI are the other two really big groups: Pioneer focuses on grains, cereals and beverages, while AVI has a strong biscuits and snacks division, a well-known fish company and a fashion brands division. Tiger Brands runs six plants in Germiston, producing meat products. A new tomato sauce plant and pasta plant are among the company’s recent investments. Pioneer Foods recently spent R150-million on developing a new biscuit-making facility in Clayville. It also has a ProNutro factory and a fruit juice plant at Wadeville, Germiston, and the Pepsico plant at Isando where products like Lays and Simba chips are made. A variety of the beverages in AVI’s portfolio (including Ciro) are made at the group’s Kempton Park facilities. The poultry business in Gauteng is big business. Earlybird Farm, one of Astral’s operations, processes 800 tons of chicken per day at its two factories at Olifantsfontein. Rainbow, the country’s second-biggest poultry producer, has 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. Another company with a Springs location, McCain Foods, produces frozen

vegetables for the Gauteng market. McCain is a partner in a venture to support a small-scale farmer in nearby Bronkhorstpruit. The company spent more than R400 000 on a watering system for the start-up farmer, who will pay off the loan in peas and sweetcorn. Other manufacturing sites: • National Brands makes snacks including pretzels and popcorn at Rosslyn in Pretoria • Unilever’s Boksburg plant manufactures margarine and iced tea • Cigarettes are made by JT International in Germiston, and by British American Tobacco (BAT) in Heidelberg • Eskort makes meat products in Heidelberg • Large milling operations are run by Sasko (grain, Krugersdorp), Food Corp Milling (six flour mills, Pretoria) and Food Corp Grocery (sunflower seeds, Randfontein and Boksburg)

Beverages Amalgamated Beverage Industries (ABI), a subsidiary of South African Breweries (SAB), is the franchise holder for CocaCola products in most of Gauteng. The manufacturing plant in Midrand is technologically advanced. Other plants are at Devland and Pretoria. Three of SAB’s seven South African breweries are in Gauteng, and various complementary sectors, such as bottling plants and distribution hubs, have grown as a result of the company’s presence in the province. Heineken launched a new brewery in southern Gauteng in 2010, from where it will brew 400 million litres per year. In South Africa, Heineken is part of a joint venture called Brandhouse, with Diageo and Namibian Breweries. Soft drinks and carbonated waters make up approximately 20% of the beverages sector in Gauteng. Sales volumes on these drinks have increased year on year in South Africa. Pioneer Foods’ acquisition of a licence to produce PepsiCo products underlies the company’s decision to spend R110-million on expanding its plant in Wadeville.

Online resources Agricultural Research Council: www.arc.agric.za Consumer Goods Council of South Africa: www.cgcsa.co.za Food Advisory Consumer Service: www.foodfacts.org.za National Agricultural Marketing Council: www.namc.co.za South African National Consumers’ Union: www.sancu.co.za

63

Gauteng companies 2013

OVERVIEW

Engineering Gauteng’s engineering firms are driving the provincial economy.

Transnet Rail Engineering’s mechanical workshop at Koedoespoort in eastern Pretoria.

Gauteng companies 2013

64

photo: railways africa

S

outh Africa’s drive to improve and expand the capacity of Sector Highlights its infrastructure is a major driver of activity in the engiTransnet Rail Engineering is neering sector. This is particularly true of Gauteng, where building 90 rail locomotives. so much of South Africa’s economic activity takes place. • The University of the The provincial government of Gauteng has a R30.6-billion Witwatersrand is infrastructure plan, which includes a R35-million allocation for planning a mining the recruitment of engineers to relevant departments. research unit. Major projects, such as those associated with the Soccer World Cup and the Gautrain, have also boosted the engineering sector. Transnet Rail Engineering’s mechanical workshop complex at major companies Koedoespoort in eastern Pretoria has been tasked with making 90 locomotives to support Transnet’s R300-billion capital- • SSI • Genrec expenditure programme. • GOBA The high-level specifications of the modern locomotive are engaging the intense focus of the facility’s 3 692 employees. • SEW Eurodrive There are seven business units located at Koedoespoort, • Transnet Rail Engineering • WSP Group Africa including a foundry. Gauteng’s long history in mining has given its engineers decades of experience in the field, but they have also devel- are able to cope with large oped over the years into highly competent all-rounders. Most and complex projects. of South Africa’s big construction firms also contain in-house One of South Africa’s oldest engineering expertise. These vertically integrated companies engineering firms started out

OVERVIEW on the gold fields: Genrec is now a division of Murray & Roberts, with a focus on the manufacture and erection of steel structures. It has a large plant outside Johannesburg at Wadeville, and has been very involved in South Africa’s two biggest power station construction projects at Medupi and Kusile. The huge and technically demanding Gauteng Freeway Improvement Project involved many companies and several joint ventures. GOBA Consulting Engineers and Project Managers supervised the design and construction of this mega-project, as it did the even bigger Vaal River Eastern Subsystem Augmentation Project (VRESAP). The water project entailed redirecting water flow from one system to another in order to feed the petrochemical and mining industries of Mpumalanga. In 2011, major company Bateman Engineering was sold to Italian group Tenova for R1.2-billion. Apart from the Kusile power station contract, Bateman is very involved in mining. The company recently completed two big projects for Billiton Energy Coal South Africa. Tenova is planning to expand into Africa. Some companies have specialist units within the group. WSP Group Africa exemplifies this approach, with specialist units in green building design, fire consulting and refrigeration. The company is a founding member of the Green Building Council of South Africa.

Engineering consultants BKS Group comprises three companies: BKS (Pty) Ltd is the full-spectrum engineering firm, BKS Global handles work outside of South Africa, and Khuthele Projects (a joint venture) focuses on planning for transport systems, towns and regions. SSI developed a reputation as transport and water engineers, but is now active in energy, resources, buildings, and environmental and project management. In 2011, SSI won a string of major awards at the CESA Aon Engineering Excellence Awards ceremony. A new company, Basil Read Turnkey Projects, was formed in 2009 out of the construction component of the Basil Read Group and TWP Holdings (a project company with engineering design capabilities). The new company is well positioned to bid for complex projects in the infrastructure, energy and mining sectors. South Africa has one engineer to every 3 166 citizens, compared to Malaysia where the figure is 543 citizens per engineer. The National Department of Public Works has issued appeals to retired and unemployed engineers to step forward to help complete the infrastructure programme. There were 5 930 apprentices in training in 2009, a number far short of requirements for the sector. The Skills Development Amendment Act, which came into effect in 2009, is intended to improve the situation. The University of the Witwatersrand (Wits) has announced plans to establish a mining, minerals and exploration research and development institute. In its early days, Wits was called the South African School of Mines and Technology. According to a report in Mining Weekly, Wits and the University of Pretoria enrol more first-year mining engineering students than the combined enrolment of Canada, the US, Australia and New Zealand. SEW Eurodrive, supplier of drive-automation products with a strong presence in the mining sector, is making training available to its customers. The South African Drive Academy was launched in 2011, and entails theory and practical courses tailored to client needs.

Online resources Consulting Engineers South Africa: www.cesa.co.za Engineering Council of South Africa: www.ecsa.co.za Gauteng Department of Infrastructure Development: www.did.gpg.gov.za Green Building Council of South Africa: www.gbcsa.org.za National Department of Public Works: www.publicworks.gov.za South African Consulting Engineering Firms: www.consultsa.co.za Transnet Rail Engineering: www.transnet.net

65

Gauteng companies 2013

PROFILE

Transnet Rail Engineering Transnet Rail Engineering, an operating division of Transnet SOC Limited, is the backbone of South Africa’s railway industry.

Transnet Rail Engineering (TRE) has nine product-focused businesses, 132 depots, six factories and about 13 000 employees countrywide. The organisation is dedicated to inservice maintenance, repair, upgrade, conversion and manufacture of freight wagons, mainline and suburban coaches, diesel and electric locomotives as well as wheels, rotating machines, rolling stock equipment, port maintenance, castings, auxiliary equipment and services. While the focus of TRE’s activities is mainly on the South African market, investment in research and development to service the specific requirements of Africa and the rest of the world has of reliability and availability. During upgrades, led to an ever-expanding range of rolling stock tractive effort is increased through the addiproducts and a comprehensive list of satisfied tion of microprocessor-wheel-slip control – customers. The proximity of the coastal plants to enhancing fleet-revenue-generation potential. major ports facilitates the movement of products to and from overseas markets. Wagon business: provides heavy maintenance, general overhauls, modifications, upgrades, The organisation’s competency is based maintenance and new builds. TRE is an origon its sound knowledge of the technolo- inal equipment manufacturer (OEM) of wagons. gies embedded in its products, supported The wagon business is a major supplier of new by ongoing research and development and wagons to the heavy-haul coal and iron-ore exceptional product application experience. fleets with tare ratios as high as 5:1. Other wagon types supplied are cement, car carriers, TRE’s business units intermodal and fuel tankers. Transnet Rail Engineering has four customerfacing businesses, with five internal-support Coach business: performs heavy maintenance operational businesses:

 of coaches, general overhauls, modifications and upgrades. Modernisation of South Africa’s Locomotive business: does heavy refurbish- large DC suburban fleet is one of the busiment, general overhauls, upgrades, manufac- ness’ main markets, and its modular upgrade turing, maintenance and assembly of various designs extend the economic lifespan of the types of locomotives. Dedicated staff operating sets. During upgrades, passenger and driver from depots and factories close to the main ergonomics are enhanced wherever possible, rail freight corridors maintain a fleet of 2 200 while safety and operating performance are locomotives per annum, ensuring high levels increased. Designs include dining, lounge and Gauteng companies 2013

66

PHOTO: RAILWAYS AFRICA

An African focus

PROFILE kitchen cars, sleeper and sitter coaches and power units. Port and terminal business: the ports business is not new, as TRE has been maintaining and manufacturing straddle carriers for Transnet Port Terminals (TPT) for years. The ports business is now positioned to maintain all ports and terminal equipment and machinery. The long-term view is to get this business involved in assembly of all new port equipment. The internal support operational businesses are:

Foundry: TRE has two foundries in Pretoria and Bloemfontein. They manufacture castings to support the refurbishment programme of TRE.

Rotating machines: refurbishes and maintains all the rotating components that are found in rolling stock, such as traction motors. This Auxiliary business: offers both products and business is now involved in the assembly of services for rail cargo as well as ISO connew traction motors for the 43 class locomo- tainer refurbishing and wagon cleaning. It tives. All traction motors are qualified and supplies newly manufactured, repaired and load-tested to full capacity on back-to-back washed tarpaulins and accessories, product motor test facilities. Electrical work includes diversity extends to cargo canopies, scotches, repair and manufacture of motor field coils, lashing chains, road trailer tarpaulins, boat complete rebuilding, rewinding and repair of covers, tents and other PVC material products, armatures and the repair and calibration of trimming and cargo protection equipment. instrumentation.

PHOTO: transnet Rail engineering

Committed to the future

Rolling stock equipment: manufactures parts With its greatest assets being its people and and sub-assemblies for locomotives, coaches their skills, Transnet Rail Engineering is comand wagons. Processes involve laser cutting, mitted to many initiatives, such as the talent bending, welding, forging and fabrication of management programme, relationship building, carbon and stainless steels. It also repairs and performance management, transformation, a upgrades components to extend the lifespan comprehensive lifestyle well-being programme, of rolling stock. This includes refurbishing of as well as engineering bursaries and apprenbrake valves and cylinders, couplers, panto- ticeship training to name but a few. graphs and the overhaul of diesel engines, The organisation takes seriously its moral and turbo-chargers and compressors. legal duty to ensure the health and safety of Wheel business: the assembly of new wheels all employees. This obligation also extends to as well as the refurbishment and maintenance clients, the communities in which it operates of the existing fleet of wheels. The main activ- and to the protection of the environment. ities comprise wheel re-profiling, machining of axles, centres and tyres, fitting of wheel Contact details bearings, driving gears and motor suspension tubes, as well as centre re-tyreing, journal Tel: +27 12 391 1304 burnishing and crack detection through ultra- Fax: +27 12 391 1371 sonic testing from factories and depots on the Email: sales@transnet.net main cargo routes. Website: www.transnet.net

67

Gauteng companies 2013

interview

Localisation key to sustainability Executive manager at Transnet Rail Engineering Ali Tshabalala highlights the importance of the awarding of a R295-million tender from the Passenger Rail Agency of South Africa.

Please tell us about the significant tender that was awarded to Transnet Rail Engineering. We are very excited about this order. The R295-million tender is a five-year contract purely for wheel supply to the Passenger Rail Agency of South Africa (PRASA), and excludes the work that Transnet Rail Engineering (TRE) does on the coach-engineering side, as well as the work on the locomotives and wagons. Despite the absence of a formal contract over the past two years, Transnet continued to service PRASA. This shows Transnet’s commitment to service delivery. The demand allows new private-sector suppliers to compete with Transnet. So the outcome is that it is not one state-owned organisation giving work to another state-owned organisation. The opportunity is being opened up to other suppliers, who will compete for tenders over the same period. In terms of job creation, we will maintain the current jobs, as Ali Tshabalala is cur- well as contribute to several new jobs. The greatest benefit that rently executive manager, this tender will bring in terms of jobs is the certainty that these jobs looking after all wheels are long-term. building and maintaining business for Transnet What are the outcomes and benefits now that a new contract has Rail Engineering nation- been finalised? ally. Prior to this, Ali was • Material supply: We can commit to our suppliers because we now a national operations know exactly how much we will be ordering over the next few years. manager overseeing three • Planning: TRE can now plan people and machine capacity. We can now see the extent of the demand from the client, and can plan our coach manufacturing and people, machinery and material capacity according to that demand. maintaining facilities situated in Cape Town, Durban • Delivery: We will improve service delivery and ability to meet and Pretoria, as well as a customer demand. depot that is responsible for the maintenance of the How will the localisation component of this tender be fulfilled? Blue Train. He is a quali- Localisation is very important to Transnet. The following factors will fied chartered accountant, have a significant impact on localisation: has a BComm degree • All assembly and refurbishment of wheels, which normally from Vista University and contributes 30-40% of value-add, will be done locally. a BCompt Honours degree • Components such as bearings and axles will be acquired from local sources. from Unisa. Ali Tshabalala

Gauteng companies 2013

68

focus

Performance excellence comes standard Transnet Rail Engineering (TRE) has a proud and successful history, and new developments at the Germiston depot aim to continue this legacy.

The tank wagons manufactured by Transnet Rail Engineering for Transnet Pipelines have a capacity of approximately 74 000 litres.

W

ith the New Multi-Product Pipeline (NMPP) now in operation and Transnet Pipelines (TPL) having sufficient pipeline capacity for the transportation of fuel between Durban and Gauteng for the first time since 2006, TPL took a Market Demand Strategy (MDS) decision to enhance its service of fuel transportation to outlying areas not directly serviced by pipelines. This was done to protect and increase the volumes in the pipelines to these distant destinations. The solution was to develop and offer a combined pipe/rail service to the final market.

TPL decided to initially focus this strategy on the delivery of fuel from its Tarlton terminal facility near Krugersdorp to Botswana. This order was placed with Transnet Rail Engineering (TRE) Germiston in 2011. The organisation completed the project on schedule, with the last of the tank wagons being handed over in September 2012. These wagons will be employed to ensure fuel security to South Africa’s landlocked neighbour Botswana, with the service being instituted in earnest in October 2012. Depending on the demand from other outlying areas, this service could see an increase

69

Gauteng companies 2013

focus Model number

XPRJ-23

Number ordered

50

Last unit delivered August 2012 Capacity

74 000 litres

Axle loading

20 tons

Length Maximum diameter

TRE Germiston has a proud and successful history in the area.

Tank steel

17.385 metres tank 2.6 metres ASTM A516 GR.70 boilerplate

in demand for fuel supplies, in which case more Design pressure 500kPa tank wagons will be ordered. Couplers AAR E- Type doubleTRE Germiston set up a project to establish shelf 1200kN draft force its capability to build the XPRJ-23 low-pressure Bogies HS MK7 wagon. Using the application of Lean Six Sigma principles, the wagon business, guided by its Brakes Dual system, air and product development team, positioned itself vacuum as the leader in the manufacturing of pressureTanker wagon specifications. tank wagons in Southern Africa. Another factor that makes TRE Germiston an attractive supplier to anyone requiring new rolling including the Railway Safety Regulator, to stock is that the Germiston depot is stable and ensure the tanker wagons met all the approhas a long record of excellent service. This guar- priate standards. TRE is also the intellectual antees its clients reliability of supply. Transnet property holder – it owns the designs – for this Rail Engineering is a value-driven company, type of rolling stock, and thus has a headstart and the Germiston depot epitomises the highly as far as this technology is concerned. efficient services the company is able to offer from its well-trained staff and its well-equipped Equipped for the job production facilities. To build the tanker wagons, TRE Germiston invested in modern equipment and techSpecified for safe service nology specific to the manufacture of these The new tanker wagons are capable of car- units. This equipment includes, among other rying about 74 000 litres and will have an axle things, a column-boom welding assembly for loading of 20 tons. These 17.385-metre-long submerged arc welding. In addition, heavywagons will have a maximum tank diameter of and light-duty rollers were purchased for 2.6 metres. The tanks are constructed with spe- rotating the barrels. Welding manipulators cial ASTM A516 GR.70 boilerplate steel, which were acquired to complete the submerged arc can withstand a design pressure of 500kPa. welding of cones and dish-ends. Post-weld While the barrels of the tanks are 12mm thick, heat treatment in a massive oven is used to the dish ends have a thickness of 16mm. The relieve residual welding stresses. The producwagons are fitted with an AAR E- Type double- tion line has also been equipped with custom shelf 1200kN draft force couplers for improved jigs and fixtures for optimal manufacturing. The safety. In developing the rolling stock, Transnet Germiston depot also has more than sufficient Rail Engineering’s product development team under-roof production line facilities to ensure worked closely with the various stakeholders, unbroken supply. Gauteng companies 2013

70

focus The welders on the line are specially qualified to deliver work of the highest quality. Each welder has to be certified in pressure vessel welding processes by an independent agency before starting work on the production line. Once the welding is complete, an independent external welding certification agency X-rays all the welds to ensure absolute integrity of the joints. The interior of the vessel is lined with a specialised material to reduce any risk of product contamination. The exterior is shot-blasted and then painted with an anti-corrosion primer. A coating of mid buff polyurethane follows, and finally the tanker wagon is finished in its distinctive grey and yellow.

Support a key component Support is naturally a crucial factor in the supply of these wagons. They are built so that they will only require a major overhaul every twelve years. The actual pressure vessel will have to undergo testing every three years in order to obtain certification. This work will be carried out in Germiston, which has the equipment to clean the interior and make it safe before conducting the pressure tests. The wagon will be subjected to the normal scheduled maintenance programme, much of which can be carried out at any of the TRE depots around the country. With TRE having shown its competence in tank wagon design and manufacture, many other rail operators have shown interest in this local source of new, highfidelity, quality rolling stock. It is the success of these types of initiatives that will position TRE as an organisation that is going from strength to strength as Africa’s premier supplier of new railway rolling stock in the decades to come.

TRE Germiston has a proud history Established on the Elandsfontein farm in 1887, the town was given its name by John Jack, of Simmer & Jack mining fame, in memory of the farm in Scotland where he was born. The railway came in 1890 with the opening of ‘Rand Tram’, although Germiston was initially no more than a mine stop.

Transnet Pipelines offers a combined pipe and rail service. The South African Railways and Harbours (SAR&H), now Transnet SOC Ltd, identified itself with the spirit of enterprise and succeeded in making Germiston one of the most important industrial centres, and gave the old mining town a new lease on life. SAR opened a locomotive shed in the early 1900s that soon became one of the busiest workshops in the region. In 1943, SAR opened a new carriage and wagon repair shop. It was 260 feet long by 20 feet wide, covered with corrugated sheets; the building was divided into a charge man’s office, general office and store for small articles and tools, mess room, ablution room, workshop, oil and waste-reclamation plant, boiler room and store room for large articles. The output increased tremendously with the new repair siding, as compared to the output of the old repair siding. As development soared at the passenger station and goods yards, improved facilities were provided at the mechanical workshops to allow workers to cope with the increased truck repair and maintenance work. Some 800 trucks were repaired each month at the Germiston depot. This heavy repair and maintenance programme left little time for the construction of new rolling stock. Nevertheless, in 1949, the Germiston workshop turned out 50 bogie dairy wagons, and eventually started on the production of 100 iron-ore hoppers of 50-ton capacity. Today Germiston Wagon Factory has the capacity to manufacture 400 new tank wagons and repair some 1 500 wagons annually.

71

Gauteng companies 2013

With you SEE seeALL all WITH us US YOU AFRICA'Sopportunities. OPPORTUNITIES. Africa's Seeking trade and investment opportunities or the inside track on government initiatives and and emerging markets in Africa? or the inside track on government Seeking trade investment opportunities initiatives and emerging markets in Africa? Global Africa Network publishes a broad range of print and electronic publications trade, investment and of local government projects Global Africahighlighting Network publishes a broad range print and electronic in emerging markets. publications highlighting trade, investment and local government projects in emerging markets.

Contact usfor formore moreinformation informationon onhow howtotoparticipate participateinin Contact us our publications, publications,or orreceive receivea acomplimentary complimentary copy. copy.

Global AfricaNetwork NetworkPty Pty(Ltd) (Ltd) Global Africa Tel: +27 +2721 21657 6576200 6200 Email: sales@gan.co.za www.gan.co.za Website: www.gan.co.za

OVERVIEW

Transport The transport sector drives growth in all sectors of the provincial economy.

Sector Highlights FedEx has a new Johannesburg office. • Specialist chemicaltanker rail wagons are being made in Germiston. • By 2018, Gauteng’s newest inland port will handle half-a-million containers.

major companies

A

25-year transport plan is being developed for the province by the Council for Scientific and Industrial Research (CSIR) and a group of private companies. The private participants include Gibb, BKS and Khuthele Projects.

Africa

• Passenger Rail Agency of South Africa

• South African National Roads Agency Limited

Air

photo: Johannesburg department of tourism

• Airports Company South

Gauteng is well served by airports. OR Tambo International Airport caters for more than 17 million passengers every year, receives more than 105 000 arriving air-traffic movements and employs 18 000 people. Greater Johannesburg has several smaller airports that host mostly commercial aircraft: • Rand Airport in Germiston in the south-east • Grand Central Airport in Midrand, halfway between Johannesburg and Pretoria • Wonderboom Airport in Pretoria North • Waterkloof Air Force base, south of Pretoria • Pretoria Central Heliport • Lanseria Airport, to the north-west of Johannesburg The developers of the Cradle City project, Amari Land, expect the number of departing passengers at Lanseria to grow to seven million annually by 2017, and that scheduled flights will increase from 1 100 to almost 4 000. Freight tonnage is expected to reach 20 000 tons by 2017, up from the current total of 5 000 tons. Brakpan and Springs are among several towns that have good airfields. Nigel is home to the Dunnottar Airport and an aeronautical museum.

73

• Transnet Freight Rail • Transnet Rail Engineering • Barloworld • Grindrod • Imperial Logistics Rail Transnet is due to spend R300-billion on upgrading and expanding every aspect of its operations. Many of those improvements will come in Gauteng, where Transnet Rail Engineering (TRE) has a major presence from its workshops in Pretoria and Germiston. The Germiston workshop entered a new era in 2011 with the delivery of specialist chemical-tanker wagons for Gauteng companies 2013

OVERVIEW Omnia. The chemical and fertiliser company’s order for 145 tankers was soon followed by an order for petroltanker wagons from Transnet Pipelines. TRE invested nearly a billion rand in the latest technology to make these orders possible. Transnet Freight Rail (TFR) has opened a national operations centre for railways in Parktown, Johannesburg. The impressive new technological investment provides real-time visibility of all train movements across and beyond South Africa. TFR has dedicated commodity lines for iron ore and coal, and is increasing its efficiencies and carrying capacity all the time. Passenger Rail Agency of South Africa (Prasa) has identified four corridors in Gauteng that will receive investment. The Bara extension will connect Nasrec, Soweto and Lenasia. Intersite Property Management Services, a Prasa subsidiary, intends to develop retail and office space at selected Gauteng stations. The Wits Metrorail system serves Johannesburg and its surrounds. Park Station, in the north of the central business district, is the largest station in Africa and acts as the metropolitan hub. The high-speed rail system, Gautrain, has graduated beyond ferrying customers to and from the airport, and after two years is averaging 32 000 passengers per day. The final link in the first phase, linking Gautrain with Park Station, was opened in June 2012. Gauteng companies 2013

Road Rea Vaya is the public transport bus system that started operating during the Soccer World Cup in 2010. Dedicated lanes are given over to the busses that operate on all major routes. The Gauteng Freeway Improvement Plan has been underway for several years and has helped traffic-flow considerably. The first phase covered 185km of roads and cost R21-billion. The issue of paying for the improvements has caused considerable controversy, and opposition to the proposed tolling system has resulted in court cases. This had not been resolved at the time of going to print.

Increased capacity Four inter-modal terminals, which can collectively handle 650 000 TEUs (twenty-foot-equivalent units) annually, already exist at: • Vaalcon, south Gauteng • Pretcon, north Gauteng • Kascon, central Gauteng • City Deep, central Gauteng New terminals at Sentrarand and Tambo Springs will increase capacity, with the latter facility expected to deal with 500 000 TEUs by 2018. The railway terminal should be ready by 2014. Projections in freight volume suggest that the province will handle three million TEUs in 2015 and four million in 2020. City Deep will reach capacity in 2016. International logistics company FedEx opened a new freight forwarding office in Johannesburg in 2011. A plan has been put forward by the province’s premier and Ekurhuleni Metropolitan Municipality to build an ‘aerotropolis’ that will link the airports of OR Tambo International and Lanseria, and expand logistics capabilities.

Online resources Airports Company South Africa: www.airports.co.za Air Traffic and Navigation Services: www.atns.co.za Gauteng Department of Roads and Public Transport: www.roadsandtransport.gpg.gov.za Gautrain Rapid Rail Link: www.gautrain.co.za Passenger Rail Agency of South Africa: www.prasa.com Rea Vaya: www.reavaya.org.za South African National Roads Agency Limited: www.sanral.co.za Transnet Freight Rail: www.transnet.net

74

TPT GEARS UP TO BOOST PORT EFFICIENCIES

South Africa’s ports are a key engine for growth and are central to the massive infrastructure development drive recently outlined by the South African government to enable economic growth and job creation.

The Market Demand Strategy (MDS) formulated by Transnet SOC Limited is the centerpiece of this infrastructure programme. It entails an investment of R300 billion in capital projects over the next seven years. As port operator Transnet Port Terminals (TPT) will invest R 33 billion of this amount to boost its cargo handling and logistics service at seven commercial ports along South Africa’s coastline. About 71% of TPT’s allocation will be invested in capacity creation and expansion projects, while the remaining 29% will go towards capital sustaining projects aimed

at achieving operating norms and upholding service delivery. Major container sector projects include ramping up capacity in the Port of Durban, and expanding and positioning Ngqura Container Terminal as a transhipment hub. In the bulk sector projects include increasing the capacity of the Saldanha iron ore bulk facility; major equipment upgrades and storage expansion at the Richards Bay Terminal; and relocating the current manganese export facility in Port Elizabeth to a newly created two berth facility at the Port of Ngqura creation that will handle up to 12 million tons per annum. But it is not only growth within South Africa that TPT is focused on.

Expansion is on the cards for the Ngqura Container Terminal to handle up to two million TEUs of container traffic per annum.

As part of the MDS and in support of nine strategic transport sector objectives set out by the African Union and NEPAD (New Partnership for African Growth), TPT also intends forming partnerships with other African ports to promote South Africa as a regional hub for the rest of the continent. This will also help to position African ports as the growth engines of their respective economies. Key intra-continental initiatives being pursued by TPT include providing operational

and other ports in the region is now underway to leverage opportunities. South African President Jacob Zuma champions the North South Corridor and Transnet is playing a key role in ensuring that this corridor’s potential is unlocked so that freight can move easily and efficiently.

Planning is underway for expansion of the iron ore bulk facility from 60 million tons per annum to 82 million tons per annum.

TPT has also attracted the attention of African ports thanks to the superior port operations training programmes and facilities offered at the Transnet School of Ports, located in the Port of Durban, where TNPA also offers highly sought after marine training.

and technical advice to regional ports; pursuing regional port planning and port pairing initiatives, and exploring MOU’s with other African countries. Says Chief Executive Karl Socikwa: “South Africa offers the infrastructure and services to unlock the region’s frontiers. By facilitating the supply of goods and providing essential infrastructural services, TPT can play a vital role in the South African government’s New Growth Path strategy, which seeks to widen the market for South African goods and services through a stronger focus on exports to the region’s rapidly growing economies.” He points out TPT’s past experience outside of South Africa, which has included assistance with terminal operating systems, port consultation and training programmes in ports such as those in Namibia, Kenya, Cameroon and Mauritius. The former Portcon International consultancy arm of sister division Transnet National Port Authority (TNPA) had likewise carried out work in Ghana between 2001 and 2004. A regional port planning strategy between South Africa’s deepwater Port of Ngqura

Equipment replacement is a key focus in Richards Bay.

International terminal operators are upping their game on infrastructure development and are moving into Africa’s ports with great speed and developments. Over the next three years Kenya, Mozambique and Tanzania will see a total of more than US$689 million spent on port upgrades. TPT believes South Africa has an invaluable role to play as the most developed country in Africa, and with its economies of scale, the company is striving to position itself as the leading port operator in the Southern Hemisphere, working to remove barriers that negatively impact trade transiting through the SADC region.

PROFILE

Airports Company South Africa Airports Company South Africa (ACSA) has gone from strength to strength in supplying the the best service and improving the existing framework of South African airports immensely.

O.R. Tambo International Airport is the air-transport hub of Southern Africa, catering for more than 18 million passengers and more than 200 000 aircraft movements per year. Airports Company South Africa Limited (ACSA) was formed in 1993 as a public company under the Companies Act of 1973 and the Airports Company Act of 1993. Although the company is majority owned by the South African Government, through the Department of Transport, it is legally and financially autonomous and operates under commercial law.

company’s airports provided facilities and services for more than 17.9 million departing passengers. Besides providing world-class, secure infrastructure for airlines to transport people and goods, Airports Company South Africa extends its responsibilities to include the promotion of tourism, the facilitation of economic growth and job creation, as well as protection of the environment.

The company owns and operates the nine principal South African airports, including the three main international gateways of ACSA has achieved success O.R. Tambo, Cape Town and King Shaka inter- Since its inception in 1993, ACSA has transnational airports. In the last financial year, the formed a number of fragmented assets into a Gauteng companies 2013

78

PROFILE

Smaller important airports

world-class, state-owned company run along commercial lines.

The smaller ACSA airports, considered as integral to the overall aviation network, were Six years ago, ACSA embarked on an ambitious equally part of the upgrade. Bloemfontein R17-billion programme to improve capacity International Airport now sports a completed and service offerings at its network of airports. runway revamp and terminal expansion, while This initiative coincided with South Africa being the terminal upgrade at East London, the awarded the hosting rights for the 2010 FIFA runway refurbishment at Port Elizabeth and World Cup. This future-oriented infrastructure- terminal upgrades and expansions at Kimcapacity-development programme was success- berley and Upington have impacted greatly on fully completed in 2010. The resultant improved the quality of the experience offered to travelservice offerings at South Africa’s airports con- lers at these airports. These smaller airports, tributed immensely to the ease of travel both to too, played a significant role during the 2010 and from South Africa and internally and thus to FIFA World Cup. the success of the FIFA World Cup.

Better airports – stronger economy

O.R. Tambo International Airport

Airports and infrastructure growth are a critical component of the national economy. A recent University of Johannesburg survey showed that the combined economic impact of O.R. Tambo, Cape Town and the old Durban airports was significant, with a contribution of R85-billion to GDP. These three airports boosted employment by generating 33 700 direct, on-airport jobs and 227 600 indirect jobs.

The R2.2-billion central terminal building at O.R. Tambo International Airport was the final building block in a complete redevelopment of the terminal precinct. This redevelopment actually began more than 10 years ago. The new building now brings all the domestic and international areas into one contiguous space, thereby greatly improving passenger experience and orientation. This flagship of O.R. Tambo International Airport is complemented by the recently completed pier and Awards apron developments that now accommodate In 2009, George Airport, Port Elizabeth Interthe new-generation large aircraft. national Airport and Cape Town International Airport were awarded first, second and third Cape Town International Airport places in the ACI-ASQ Best Airport in Africa The terminal precinct at Cape Town Inter- Awards. With this success, the number of national Airport also underwent a complete awards won by ACSA airports has grown to 17. transformation. By April 2010, the redeveloped airport boasted a common-use central terminal Contact details with vastly improved retail and food and beverage offerings, an additional 4 000 bays in a Key contact person: second parkade and a significantly improved Solomon Makgale, Group road network. An elevated drop-off kerb, a first Communication Manager for this airport, offers passengers easy access to the check-in hall as well as protection from Tel: +27 11 723 1400 the elements. Fax: 086 602 0132 (SA only) Email: solomon.makgale@airports.co.za King Shaka International Airport Website: www.airports.co.za The impressive new R6.8-billion King Shaka International Airport was completed and commissioned on 2 May 2010 as planned and without any major hassles.

79

Gauteng companies 2013

OVERVIEW

Infrastructure Gauteng’s R30.6-billion infrastructure plan will boost every aspect of the provincial economy.

M

uch has been written about national government’s multiyear, multi-billion-rand infrastructure plans, and rightly so, given the plan’s potential impact. But South Africa’s strongest provincial economy has a plan of its own, which will see R30.6-billion spent on Gauteng’s roads, clinics, schools and on the development of logisitics hubs. The City of Johannesburg also plans to invest about R100-million over 10 years on utility provision, public transport and waste management. The Department of Infrastructure Development (DID), a specialist department, has been created by the provincial government of Gauteng. Among the DID’s first accomplishments were the June 16th Memorial and Youth Institute (for the City of Johannesburg) and the 300-bed Jabulani Hospital. The provincial departments of health and education jointly spend about R3-billion every year on construction and maintenance. In 2012/13, DID will build five schools and 164 classrooms, and rehabilitate a further 72 education facilities. Funding options for infrastructure development were at the heart of deliberations at the fourth Tshwane International Trade and Infrastructure Investment Conference, held in May 2012. Transnet, the state entity that has freight rail, engineering and port maintenance among its divisions, spent R22.3-billion on infrastructure in the 2011/12 financial year. Transnet Pipelines is the state-owned company responsible for the maintenance of existing pipelines and creation of new ones to carry fuels. The first litres of diesel fuel ran along Transnet Pipelines’ new multi-product pipeline (NMPP) in January 2012, launching a new era for the transportation of fuels to the Highveld. The old pipeline was inaugurated in 1965. The NMPP will be fully functionally by 2013, and will be able to carry about 26 billion litres of fuel every year. Refined

Online resources Eskom: www.eskom.co.za Gauteng Department of Infrastructure Development: www.did.gpg.gov.za Transnet: www.transnet.net Transnet Pipelines: www.transnetpipelines.net

Gauteng companies 2013

80

Sector Highlights

• A new multi-product

pipeline started delivering fuel to Gauteng in 2012.

major companies

• Transnet Pipelines • Eskom products such as jet fuel, sulphur diesel and both kinds of octane petrol will be carried. More electrical power is needed in order to grow the economies of Gauteng, and South Africa as a whole. State electricity company Eskom has pledged to spend R385-billion between 2005 and 2013 on recommissioning old power stations, building new ones and investing in alternative energy research. Since the programme began in 2004, more than 5 000MW have been added to the grid. Once completed, the two big power stations at Medupi (Limpopo) and Kusile (Mpumalanga) will add 4 764MW and 4 800MW respectively to the national grid, and a good proportion of that will be used to power industry and manufacturing in Gauteng.

OVERVIEW

Construction and property Many property companies are listing on the stock exchange.

Sector Highlights Johannesburg property returns are world-class. • General building and civil engineering are Gauteng’s biggest construction sectors. • Shopping malls are going up in every part of the province.

major companies

photo: andrew bell

J

ohannesburg commercial property is outperforming New York and London, according to the Global Cities Report produced by Property Databank. By examining data over the course of a decade, the study concluded that Johannesburg values appreciated 7.5% to 2011, almost 4% better than New York and more than 5% better than London. It is little wonder then, that the fastest-growing sector on the JSE is the listed property sector. The Financial Mail has drawn attention to the number of property companies listing on the JSE for the first time, while a Business Day article in June 2012 was headlined, ‘Shopping centres mushroom across SA’, and stated that the year was proving to be an ‘extraordinary’ one in terms of large mall developments. The two most significant subsectors of the construction industry in Gauteng are general building (34.5% of expenditure comes from this group) and civil engineering (29.7%). Gauteng’s 18 207 registered contractors represent 24.6% of the nation’s total. Gauteng is responsible for 43% of all building plans in South Africa. South Africa’s largest listed property companies are Growthpoint Properties (market capitalisation of R36-billion) and Redefine (R22.5-billion). Capital Property Fund has been buying smaller companies and is on a growth path. The Free State-based Georgiou Group, with national lettable assets of about R16-billion, reports ‘tremendous growth in Gauteng in recent years’. The company’s focus is northern Johannesburg and the Fourways node in particular. This is

81

• Murray & Roberts • WBHO • Group Five • Aveng Grinaker-LTA • Basil Read • Flanagan & Gerard Property

• Johannesburg Social Housing Company

• Liberty Properties • Gauteng Partnership Fund

• National Housing

Finance Corporation

described as the fastestgrowing suburb in South Africa’s biggest city. Sandton and Rosebank have shown tremendous growth in recent years because of the advent of the Gautrain. Although the much-vaunted The Villa in Pretoria has ground to a halt because of legal suits and counter-suits, there are many new Gauteng retail malls steaming ahead. Business Day’s Thabang Mokopanele Gauteng companies 2013

OVERVIEW listed a number of new or planned developments, and linked them to the growth of ‘a strong emerging middle class that is beginning to shop’. The Waterfall City Mall is part of a much larger development, which in effect is creating a large city in a new Midrand location. The Waterfall Business Estate, also an Atterbury project, has 1.6 million square metres of space, and already has some blue-chip clients, such as Massmart. Six residential estates on 800ha of adjacent land are being developed by Century City Properties. The Gautrain is one of the drivers behind the Waterfall City development. Old Mutual’s Zonk’Izizwe retail hub is predicated on its location near the Midrand Station. The 2012 award ceremony of the South African Property Owners Association (SAPOA) recognised many Gauteng developments. These included the Sandton City Shopping Centre in the ‘Retail Refurbishment’ category. Owned by Liberty Properties, with the Aurecon group doing the civil and structural engineering, the mall now has an additional 30 000m2 of retail space.

Johannesburg CBD In her 2012 budget address, Gauteng MEC for Economic Development and Planning Qedani Mahlangu reserved special praise for property entrepreneur Jonathan Lieberman. The Mabobeng Precinct that his company, Gauteng companies 2013

Mall

Details

Nicolway Bryanston Shopping Centre

Rodrigues Group and Flanagan & Gerard, R500-million, 23 000m²

Waterfall City, Midrand

Atterbury Group, 115 000m²

Cradlestone Mall, Krugersdorp

Sasol Pension Fund and Retail Africa, 75 000m²

Forest Hill City Mall, Pretoria West

Billion Group and Rebosis Property Fund, R1.45-billion, 68 000m²

The Mall of Rosebank

Hyprop. R920-million, Expansion to 62 000m²

New and planned mall developments. SOURCE: Thabang Mokopanele Business Day

Propertuity, created out of derelict warehouses in the eastern CBD of Johannesburg, has become a haven for artists, fashion designers and film-makers. The task of turning the CBD around is a big one, but longterm efforts in the western part of town have led to the revitalisation of the area. A number of bodies are working to make the CBD better, such as the Affordable Housing Company, Johannesburg Development Agency (JDA) and the Johannesburg Social Housing Company. Johannesburg Inner City Business Coalition is a lobby group managed by the Central Johannesburg Partnership, which also runs the five city improvement districts (CIDs) in the inner city. The JDA has spent about R55-millon on improving Braamfontein since 2002. Atterbury Properties is developing the old Potato Sheds behind Museum Africa into an R850-million hotel, retail and office area to be called the Newtown Junction.

Tshwane Tshwane’s central business district has for many years been dominated by government offices. This has resulted in several office nodes being established to the south and east of the central city, and areas like Hatfield have become home to several countries’ embassies. The Lynwood Bridge office park development (which will eventually comprise 73 000m² of mixed-use space) will house the offices of Aurecon and Atterbury, while Nedbank has located its regional head office in Menlyn Maine. An eight-year project called Menlyn Maine City Precinct is extending this eastern Pretoria scheme. It will eventually cover 280 000m² and aims to be South Africa’s first green city. Centurion is the focus of a great deal of new development. It is close to the N1 and has two Gautrain stations. The City

82

OVERVIEW of Tshwane wants to see a convention centre constructed in Centurion as part of a development to be called SymbioCity, including a 110-storey building (the highest in Africa), hotels and private accommodation. But authorities have not given up on the CBD. A City of Tshwane planning document envisages a government boulevard to house government offices, the creation of a pedestrian area, improved security and the promotion of public transport. Siga Capital Property Fund is set to launch a R4-billion Tshwane Precinct Development that will lead this revitalisation. The local authority is also anxious to cater for the shortfall of beds in student accommodation, estimated at approximately 60 000. The plan is to develop a hub of public and private residences within reach of all of the city’s tertiary institutions, and to provide public transport to support this initiative. This will include family units for post-graduates.

Integrated human settlements The provincial government of Gauteng reported that, in 2011, it had ‘made progress’ with 14 mixed-housing developments and formalised 69 informal settlements. The new thrust of government housing policy is to create integrated human settlements, with services, shops and offices located near to new accommodation units. Basil Read is involved in developing projects in the affordable housing market (Cosmo City and Savanna City are two of the largest schemes of their type). Housing funded by FNB in the Cosmo City project north of Johannesburg has shown tremendous value growth, up to 38% in nominal terms over a four-year period. The national government’s resolve to roll out new, more sustainable forms of housing is a good sign for the construction industry. The National Home Builders Registration Council (NHBRC) regulates the home-building industry and provides protection

Online resources Affordable Housing Company: www.afhco.co.za Construction Industry Development Board: www.cidb.org.za Gauteng Master Builders Association: www.gmba.co.za Gauteng Partnership Fund: www.gpf.co.za Investment Property Databank: www.ipd.com Johannesburg Development Agency: www.jda.org.za Johannesburg Inner City Business Coalition: www.joburgcentral.co.za Johannesburg Social Housing Company: www.joshco.co.za Mabobeng Precinct: www.mabobengprecinct.com Master Builders South Africa: www.mbsa.org.za SA Institute of Architects: www.saia.org.za

83

for consumers against unscrupulous contractors. Housing is also the concern of provincial and local authorities. With the decision to allocate the right to build houses to Gauteng’s three metropolitan municipalities, some 600 provincial staff members will be reassigned to comparable departments in the metros. The Gauteng Partnership Fund (GPF) has successfully entered the social housing market, linking the private sector with government at different levels. By coordinating the work of several departments and working with banks, the GPF is able to overcome obstacles that a single-purpose agency might not be able to. Different sponsors have been behind the successful projects that the GPF has overseen in the last decade, including the Johannesburg Housing Company, the Johannesburg Social Housing Company and the Gauteng Department of Housing. A R200-million Entrepreneur Empowerment Property Fund was announced by the GPF in 2012, in association with the NHFC. The scheme aims to promote the participation of black entrepreneurs in the affordable-rental market. The decision to locate the control of certain housing developments within municipalities should allow for better coordination of the building schedule with the provision of services. The Housing Company Tshwane is one such body.

Gauteng companies 2013

focus

Addressing challenges in the Gauteng housing market The Gauteng Partnership Fund (GPF) was established by the Gauteng Department of Housing to address funding challenges in the affordable housing sector.

The GPF assists the affordable housing sector by:

• Providing prospective funders with sustain-

income of less than R15 000 (adjusted according to the Consumer Price Index). The institution must demonstrate to GPF that they have the technical resource capacity to successfully complete the project as well as efficiently manage the property thereafter.

Product offering

Types of projects funded

• Providing public funding as an equity cushion to investors

able entry into the social-housing financing market by means of various products

• Multi-storey residential refurbishments GPF products are reviewed annually to deter- • Conversion of offices to residential units mine their effectiveness. These are some of the • Greenfield developments

current products on offer:

Rental Housing Fund The Rental Housing Fund was developed for entrepreneurial rental-housing institutions that require an equity-type funding injection for the project. The GPF subordinated loan enhances the debt-to-equity ratio for projects to enable lenders to finance on favourable terms. Social Housing Fund The Social Housing Fund was developed for social-housing institutions that require an equity-type funding injection for the project. In addition to enhancing the debt-to-equity ratio for projects, the GPF subordinated debt is priced such that it reduces the cost of capital on projects.

Entrepreneur Empowerment Property Fund The Entrepreneur Empowerment Property Fund (EEPF) is an incubator programme designed to promote participation of companies owned by previously disadvantaged individuals in the affordable-rental-property market. The programme is limited to prospective participants invited on public tender. Together with the NHFC, the GPF will co-fund pre-selected projects undertaken by emerging entrepreneurs.

Strategic partnerships The GPF seeks strategic partnerships with financial institutions for funding affordable housing projects with the aim of sharing the financing risk.

Who qualifies? Commercial banks The Rental Housing and Social Housing funds In partnership with commercial banks, Absa are available to companies, non-profit enti- and Standard Bank, the GPF is co-financing ties or project special purpose vehicles (SPV) two products: with a recognised legal form that provides rental or delayed ownership schemes to Development Finance Facility majority families with a household monthly The Development Finance Facility was Gauteng Companies 2013

84

Leveraging affordable housing finance Gauteng Partnership Fund is a partner of choice in the mobilisation and facilitation of funding for the delivery of affordable housing.

82 Grayston Drive, Benmore, Sandton 2196, South Africa | Tel: 011 685 6600 | Fax: 011 685 6696 www.gpf.org.za | info@gpf.org.za

focus established to provide a favourably priced mix of public- and private-sector funding to developers in the ‘gap’ market. This facility is made available via commercial lenders, and supports the creation of new affordablehousing units by allowing for the blending of interest rates between banks and the GPF. This results in reduced interest rates and, indirectly, provides easier access to lower-priced housing units for lowerincome earners. Risk Participation Facility The Risk Participation Facility was developed for the established entrepreneurial rental housing subsector, which offers rental accommodation to the low-income target market. This facility is made available via commercial funders to entrepreneurs, and supports development of new submarkets within the social housing sector by allowing for blending of interest rates between banks and the GPF. This also results in a reduced interest rate and indirectly provides access to housing units for lower-income tenants due to reduced project costs.

loans can be raised once the construction risk is over. • Sectional title body corporate loans: These are refurbishment loans and consolidation of debt loans. TUHF’s Bridging Finance has been designed to provide solutions to problems that investors face when raising loan-term finance for the purchase of an inner-city building. The cost to client is based on the level of security available, with the highest price being for unsecured loans. Prospective clients should already own a building, be in possession of a signed deed of sale or have a clear strategy to obtain property.

Inthuthuko Fund Together with the GPF, TUHF has set up the Inthuthuko Equity Fund (IEF). By contributing to the deposit necessary for a loan approval, the fund assists previously disadvantaged South Africans (in certain occupations and income groups) who wish to enter the rental housing industry. The Inthuthuko Equity Fund targets caretakers, property managers, artisans in the construcDevelopment Finance Institutions tion industry, police, firemen and women, and In partnership with TUHF, the GPF is co- nurses – focusing mainly on those who live or financing two products: work in the inner city. Applicants should have demonstrated business flair. Bridging Finance Facility One of the products offered by the GPF, via contact details TUHF, is bridging finance, which enables investors to cover temporary needs, where a quick Tel: +27 11 685 6600 decision is required. TUHF offers bridging Fax: +27 11 685 6695/6 finance for: Email: info@gpf.org.za or tanyab@gpf.org.za • The balance of purchase price: Clients who Physical address: 82 Grayston Drive, have bought a property and have a short Sandton 2196 time to raise the necessary balance, eg at Postal address: PO Box 652247, Benmore, an auction, or clients who have sold prop- Johannesburg 2010 erty and require their share of the purchase Website: www.gpf.org.za price before registration of transfer. • Rates Clearance Certificates: Where the seller cannot pay for the Rates Clearance Certificate or where the purchaser wishes to offset that payment against the purchase price of the building. • Construction loans: This is specifically for refurbishments or conversions. Long-term Gauteng Companies 2013

86

CTP advert

OVERVIEW

Water Gauteng is looking for creative solutions to water-supply issues.

The Vaal River basin receives water from seven inter-basin transfer schemes.

Gauteng companies 2013

88

Sector Highlights Ekurhuleni Metropolitan Municipality was South Africa’s top water supplier in 2012. • An international water group has agreed to partner South Africa’s Department of Water Affairs.

major companies

• Aveng Water • Aurecon • Rand Water • Johannesburg Water • Trans-Caledon Tunnel Authority

• Nalco

…Continued on pg 90

photo: shodan/flickr

S

outh Africa is a water-stressed country and Gauteng, as the province with the highest concentration of industry and a long legacy of mining, has to look for creative solutions to issues of water supply and water quality. The National Department of Water Affairs (DWA) has formed a partnership with the Water Resources Group (WRG) to be known as the South Africa Strategic Water Partners Network. The network will provide guidance on a wide range of strategic water issues. WRG is an international consortium of private and public bodies (led by the chairman of Nestlé) that is supported by the World Economic Forum and the International Finance Corporation. The City of Johannesburg’s population is expected to rise to about four million by 2015, and new sources of water will have to be found. The Water Resource Commission has warned that Gauteng might run out of water by 2016 if proper policies are not put in place to better conserve and recycle the resource. About 88% of the province’s water is imported, mostly from the Vaal River, and is supplemented by complex transfers from the Thukela River and the Lesotho Highlands Water Project.

OVERVIEW This water is treated at Vereeniging and then pumped uphill to Johannesburg. The Trans-Caledon Tunnel Authority (TCTA) is the state body that is responsible for the funding and construction of bulk-water infrastructure across the country. The Lesotho Highlands Project is one of the biggest and most complex. The Vaal basin receives water from no fewer than seven inter-basin transfer schemes. The second phase of the Lesotho Highlands Water Project is scheduled to start delivering water in 2019, but if Gauteng is to have a stable supply of water in the years leading up to that date, alternative solutions have to be developed. Aveng Water, which has its headquarters in Sandton in Johannesburg, has shown that even acidic water that comes from mines can be treated so that it becomes potable. A plant in Mpumalanga treats 25 000 cubic metres of water per day for BHP Billiton and Anglo American at their thermal coal plant. The water serves the mine and nearby town of eMalahleni. The quality of water supplied by water authorities and municipalities has been under the spotlight for several years. The Blue Drop Certification Programme run by the DWA provides a clear picture of the status of water delivery, and in 2012, Gauteng’s municipalities and water utilities excelled. Ekurhuleni Metropolitan Municipality scored a Gauteng companies 2013

near-perfect 98.95%, and won the national award overall for municipal performance, narrowly beating the 2011 winner, the City of Johannesburg. Tshwane Central and South were the national winners in the system category, with a Blue Drop score of 99.2%. An important component in water management is the reduction of waste and maintenance of pipes. Oil and energy company Sasol is partnering with the Emfuleni Municipality in an effort to reduce water use by 5% by 2014, targeting leaking pipes and bad distribution systems in Sebokeng and Evaton. The country’s water problems are attracting the attention of foreign companies. Nalco Africa was formed in 2010 by the US firm Nalco and local company Protea Chemicals. Other international companies in South Africa include the Adel Wiggins Group and the Hach Corporation. Nalco has a product called 3D TRASAR® Cooling Water Technology, which the company says has saved more than 596 million cubic metres of water for industries across the world since 2004. In 2009, Johannesburg Water announced an annual spending programme of R1-billion every year for five years, to improve and upgrade its infrastructure. The utility’s Cydna Laboratory tests 1.3 million cubic metres of tap water every day. Johannesburg Water supplies water to more than three million people on a daily basis, and treats about 930 000 cubic metres of waste at six treatment works. The other major supplier of water in the region is Rand Water, which supplies nearly one billion megalitres to municipalities, industries and mining companies. The company’s 2011 annual report recorded infrastructure spending of more than R1-billion, 89% of all capital expenditure. Wastewater treatment is another vital component in the water equation. The Aurecon Group has been engaged by the Tshwane Metropolitan Municipality to expand the capacity of the Sunderland Ridge Wastewater Treatment Works, which is near one of the fastest growth points in the province, Centurion and Midrand. The expanded capacity (up to 95 million litres per day) is expected to meet demand until 2015.

Online resources Johannesburg Water: www.johannesburgwater.co.za National Department of Water Affairs: www.dwa.gov.za Rand Water: www.randwater.co.za Trans-Caledon Tunnel Authority: www.tcta.co.za Water Institute of South Africa: www.wisa.org.za Water Research Commission: www.wrc.org.za

90

PROFILE

Trans-Caledon Tunnel Authority (TCTA) TCTA’s future direction is guided by the vision to be the leader in the sustainable supply of water in the Southern African region.

TCTA contributes to job creation.

VRESAP pump station.

Trans-Caledon Tunnel Authority (TCTA) is a state-owned entity, established in terms of Government Notice No 2631 in Government Gazette No 10545.

technical excellence. It cherishes transparent and consultative relationships with all its stakeholders. TCTA proactively aligns itself to meet the challenges of a dynamic environment. It pledges itself to uphold the principles of accountability and sound governance in executing all duties.

Mission TCTA is a specialised liability management body. Its mission is to finance and implement bulk raw water infrastructure: • Within an acceptable risk framework • In the most cost-effective manner • In order to benefit water consumers

Strengths • Established track record in preparation,

funding and project management of major water infrastructure projects. • Demonstrated ability to optimise developValues ment impact (sustainable job creation, social Trans-Caledon Tunnel Authority’s corporate responsibility initiatives, skills development in construction and tourism, BBBEE values underscore excellence, integrity and respect for one another, while promoting unity initiatives). of purpose and growth of the collective. • Recognition of exceptional bulk water management implementation through receipt TCTA conducts its business with professionof five merit awards for engineering and alism, uncompromising integrity and diligence. environmental excellence. It is committed to comply with internation- • Excellent risk governance and risk manageally recognised standards of managerial and ment philosophy. Gauteng companies 2013

92

PROFILE

• Funding philosophy with focus on tariffing

principles that ensure affordability to water users and payment of debt within agreed repayment period of 20 years. • Risk allocation on internationally accepted project finance principles throughout legal agreements. • Implicit government guarantees which ensure recourse and optimal security funders.

Project implementation philosophy • Implement most appropriate, cost effective • • •

Key project finance principles • • Create institutional and contractual arrange- • ments that promote a holistic and integrated • approach to project management. • • Maximise the transfer of risk to those parties best suited to manage the risk. • • Ensure that internal structures promote

and timeous solution within acceptable risk framework Cooperative partnerships with due regard for cost impact, appropriate risk allocation and accountability Formal agreements Mitigate impact of project on environment and community Apply specific development principles Use local labour Balance labour intensive methods Fit into the regional and local development plans Partnering with well established broad-based black economic empowerment (BBBEE) companies

centralised and direct control, strong governance and strong quality control, and review Social environmental principles processes are undertaken. • Develop stakeholder structures which pro- • Compliance with environmental legislation, approval conditions, international envimote participative and consultative project ronmental management best practice and implementation. benchmarks. Funding principles • Community involvement through effective Lowest cost of funding public participation programmes. Manage funding proactively to achieve the • Maintenance and facilitation of open channels of communication between role players, lowest weighted average cost of funding, within a risk-sensitive framework interested and affected communities and other role players throughout the project Debt maturity structure life cycle. Effectively managing the overall maturity struc- • Application of relevant lessons learnt from ture of debt in a risk sensitive manner previous projects to current ones. • Support demand management principles Repayment of debt in planning, design, implementation and Effectively applying income from water sales tariffing of bulk water projects. to repay debt

Contact details

Risk management

Physical address: 265 West Street, Tuinhof Building, Stinkhout Wing, 1st Floor, Centurion Postal address: PO Box 10335, Tariff stability Centurion 0046 Contribute towards tariff stability/predict- Tel: +27 12 683 1200 ability and end-user affordability Fax: +27 12 683 1300 Email: info@tcta.co.za Liquidity Refinancing and re-pricing risk

93

Gauteng companies 2013

focus

Committed to innovation The Berg River Project and the Vaal River Eastern Sub-system Augmentation Project (VRESAP) are testaments to performance excellence, as mandated by the Trans-Caledon Tunnel Authority.

The Berg River Project boosts the supply of water to the City of Cape Town by 18%. start of construction in 2004, nearly 3 400 jobs were created, and construction-related skills The Berg Water Project in Franschhoek is a were provided to over 480 local people. R1.5-billion legacy that augments the supply The TCTA is committed to continuing its of water to the City of Cape Town by 18%. legacy built up during the development of Construction on the project started in 2004 this major landmark. The exit strategy ensured and the bulk of it was completed in 2007 – on the continued availability of the employment information desk as an asset and resource to time and within budget. It consists of: • The Berg River Dam, with a gross capacity of the local community. The desk’s database continues to operate through partnerships with other 130 million cubic metres. • A supplementary scheme including a diver- businesses and organisations in the region. sion weir across the Berg River, a four-hectare balancing dam, a pump station and 12km Funding pipeline infrastructure. The long-term funding for the project was provided by: Employment • Development Bank of Southern Africa – R500-million While the TCTA’s involvement is something of the past, as a socially responsible organisation, • European Investment Bank – R800-million it ensured that the project initiatives that ben(the single-biggest loan signed between the bank and a South African entity to date) efit the local community, remain. The employment information desk ensured that, from the • Absa – R300-million

The Berg River Project

Gauteng companies 2013

94

focus the decision-making guidelines of the World Commission on Dams. The Berg River Dam is internationally unique and is one of the first large instream dams in South Africa that is required to make both low- and highflow ecological reserve releases. Operations ensure that the release of low flows and high flows coincide as closely as possible with natural inflows and natural flood events. The outlet works of the Berg The Berg River Dam is an area of outstanding natural beauty. River Dam have been designed to release both low flows and high flows with provision for a peak release of up to 200 cubic metres per second, making it the first dam in South Africa where provision is made for flood releases for environmental purposes. In terms of landscaping, the downstream face of the dam wall, visible from the main road into Franschhoek, has been revegetated with indigenous flora. This ensures that the dam and associated structures do not contrast with the surrounding The plunge pool at the top of the Berg River Dam. landscape. The Working for Water Programme removed Innovative processes ensured compliance and alien vegetation, significantly increasing the project sustainability. The project maintained amount of water available for both human conits excellent Fitch credit rating of ZAF AA+, and sumption and use by indigenous plant species. the project debt will be repaid by 2028 from Compliance to the environmental plan is more revenue generated from the sale of water to than 98%. the City of Cape Town. Accolades The environment The Berg Water Project has received no less The Berg Water Project is an international than four excellence awards: showcase of integrated planning, design and • The Consulting Engineers South Africa’s Glenimplementation, maintaining the desired level rand MIB Award for Engineering Excellence of ecosystem functioning of the Berg River. • The International Association for EnvironIt was the first major project to be implemental Impact Assessment South Africa’s mented following the changes to the National Award for Excellence in Environmental Water Act in South Africa and the release of Management in Project Execution

95

Gauteng companies 2013

focus

• The South African Institute of Civil Engineering

Technical Excellence Award • Construction World Best Project 2008 public/ private partnership

for supply to Sasol’s petrochemical facilities or to Trichardsfontein Dam to supply the Eskom power-generation facilities. An additional 5.5km of pipeline will be installed from Knoppiesfontein to Bosjesspruit.

The Vaal River Eastern Sub-system Augmentation Project (VRESAP)

Employment and training The project has contributed significantly On 6 October 2004, Cabinet approved the Vaal towards training and employment growth in River Eastern Sub-system Augmentation Project the local area. Training is a requirement of the (VRESAP) as an emergency infrastructure project. contractors in order to prepare the residents for On 26 November 2004, the Minister of Water the work on site. At the nearby Mamello village, Affairs and Forestry, in terms of the National Water over 30 local residents were trained in steel Act, directed TCTA to fund and implement VRESAP fixing, concrete batching, land surveying and as an emergency project. plant operating. On completion of the training, This R2.7-billion project was declared opera- certificates were awarded to the trainees. tional in June 2009, and delivered water using a temporary abstraction facility. The project was handed over to the Department of Water Affairs for operation and maintenance in August 2012.

Purpose The growing water demands of Eskom and Sasol in the Mpumalanga Highveld, with Eskom opening more power stations and Sasol’s increasing fuel production, necessitated a solution to augment water supply to the region in the form of VRESAP, also known as the Vaal Pipeline Project. The project will increase the yield of the region’s Vaal River Eastern Sub-system by 160 million cubic metres per year. It will transfer water via large pumps through a 115km-long, 1.9mdiameter buried steel pipeline from the Vaal Dam reservoir near the Vaal Marina Boating Resort to Knoppiesfontein near Secunda. From here, the water will be diverted via existing pipelines either to the Bosjesspruit Dam Gauteng companies 2013

VRESAP is a R2.7-billion project, and created 1 685 jobs.

The temporary abstraction works at VRESAP.

96

focus It was made obligatory for each contractor to source 40% to 45% of his or her workforce from the VRESAP area. These set targets are stipulated in the contract documents and are monitored on a monthly basis. The contractors have been able to exceed their target. About 1 685 jobs were created around the project; out of that, 1 315 members of staff were sourced from the local community. Socioeconomic development As a means of trying to meet some of the socioeconomic development targets, the contractors working on the project were required to establish joint ventures with black enterprises. The level of black enterprise ownership on the venture was set to at least 25%. This target was to be maintained for the duration of the project; both the main contractors retained the 25% BEE stake throughout the contract period. Procurement targets were defined from the project area, black enterprises, SMMEs and BEE companies. These targets were contractual and monitored on a monthly basis.

the South African Women in Construction (SAWiC) contractors. The Development Bank of Southern Africa (DBSA) agreed to send the owners on a mini Master of Business Administration (MBA) course. The selection of contractors and the design of the content for the programme was facilitated by SAFCEC. The following companies were selected: • Arise and Shine Projects • Boikanye Building Construction • Phomolal General Services • Stephina Projects • Tlhokomelang Project Services • DIKS Construction Four of the six companies named above come from the project area (Mpumalanga) while the other two companies originate and operate in Gauteng. The programme has been a resounding success, with significant development taking place in these SAWiC enterprises.

Environmental management During the environmental impact assessment process, six endangered plant species were identified along the pipeline route for Women empowerment rescue, as they are protected in Gauteng and As part of contributing towards the country’s Mpumalanga provinces. These plant spestruggle for women empowerment, TCTA, in cies were rescued and temporarily stored in cooperation with the South African Federation a nursery for later replanting, as part of the of Civil Engineering Contractors (SAFCEC), has rehabilitation of the construction area. Most been supporting this initiative through VRESAP. of these species are bulbous plants used tradiThe plan was to develop the skills of women in tionally for medicinal purposes. All the rescued the construction industry. plants were monitored regularly and, to date, The Pipe Supply and Installation contract was no plant died or was unaccounted for during identified as the one to be awarded to com- the rehabilitation of the pipeline servitude. panies owned by women. During the contractAlthough the project area covered an area negotiation process, TCTA and the contractor, of over 120km, the project’s compliance to the Mpumalanga Pipeline Contractors (MPC), agreed Environment Management Plan and the Record that the Women in Construction Development of Decision, as audited quarterly by an indeprogramme would be implemented through this pendent Environmental Control Officer, was contract. Substantial portions of work, such as satisfactory. An average score of 88% was the construction of valve chambers along the achieved throughout the construction period. pipeline route, were allocated to these emerging This demonstrates TCTA’s commitment to sound women-led businesses. environmental management on its projects. Apart from the construction of identified items, MPC appointed Capital Outsourcing Group to www.tcta.co.za provide business administration, mentorship and support while The Learning Organisation was appointed to provide basic computer literacy to

97

Gauteng companies 2013

PROFILE

Nalco Africa (Pty) Ltd Nalco Africa (Pty) Ltd is the global leader in water, hygiene and energy technology and services.

Nalco Africa (Pty) Ltd is a joint venture between Nalco, an Ecolab company, and Protea Chemicals, a division of the Omnia group. Nalco Africa is a 9001 ISO-certified business. The company is a provider of chemical and equipment solutions optimising natural resources and driving prosperity through unrivalled engineered and sustainable solutions. Nalco Africa has marked impact on the sustainability of the planet. It has 22 500 sales and service professionals delivering innovative products and services (5 300 patents) in 171 countries for one million customers. Nalco Africa is divided in three divisions: • Water and Process Services • Mining Services • Energy Services Downstream Nalco Africa’s sales and marketing team serves a wide variety of industries, such as food and beverage, medium and light manufacturing, chemicals, steel, mining and mineralprocessing, petrochemicals, refining, automotive, power generation and pulp and paper in process and water applications.

Vision Nalco Africa aims to be the global leader in water, hygiene and energy technologies and services. Providing and protecting what is vital to ensure clean water, safe food, abundant energy and healthy environments.

Sustainability Nalco Africa’s Air Protection Technologies combines Nalco-Mobotec’s (a Nalco Company subsidiary) patented combustion-improvement technology with innovative Nalco chemistry and application expertise to reduce many critical pollutants, including greenhouse Gauteng companies 2013

98

gases, nitrogen and sulphur dioxides, mercury, hydrogen chloride and particulates. Nalco continuously looks for ways to extend its innovative solutions to more industries, geographies and systems. The ability of 3D TRASAR® Technology to measure key system parameters, detect upsets and take appropriate action in cooling water systems has saved more than 80 000 million litres of water worldwide in 2012, and almost 1.5 billion litres since its introduction.

People are the greatest asset Nalco Africa’s highly trained sales engineers, who specialise in water-related and process chemical solutions, mining and energy solutions work on-site to optimise customer operations and their bottom line. Nalco Africa invests heavily in recruiting and training its personnel, with more than half of the first year spent in formal training,

Contact details Key contact people: Hannelore Brands, District Manager Water and Process Services Grant Robinson, District Manager Mining Services Robyn Hodgeson, District Manager Energy Services Downstream Tel: +27 10 590 9120 Fax: +27 10 590 9130 Email: nalcoafricareception@nalco.com Physical address: Building 14, Greenstone Hill Office Park, Emerald Boulevard, Greenstone Hill, Johannesburg, Gauteng 1609 Postal address: PO Box 309, Isando 1600 Website: www.nalco.com/sa

Nalco named 2012 Water Technology Company of the year By Global Water Intelligence The Global Water Awards recognize significant achievements within the worldwide water industry. Nalco was chosen by members of the International Desalination Association, the Water Desalination Report and Global Water Intelligence subscribers. Nalco is proud to have received this honor. It validates our mission to provide integrated water management, a holistic solution combining monitoring and control with chemicals, equipment and services. Monitoring & Control Precise chemical performance through unique sensors and control algorithms for real time process management by both onsite and remote personnel Chemicals Proprietary chemicals designed to provide exceptional performance Equipment A suite of Nalco designed and manufactured pretreatment equipment Services Over 75 years of specific industry experience supplying and managing pretreatment systems Left to right: Dr. Mani Ramesh, Dr. Craig Venter, Dr. N.M. Rao

Nalco was specifically recognized for its 3D TRASARÂŽ Technology for Membranes and the Nalco 360 Service. 3D TRASAR technology has been designed to identify and remove operational threats related to membrane systems, as well as cooling and boiler systems such as fouling, scale, corrosion and biological growth. Nalco 360 Service tracks client water systems and provides round the clock solutions to operational problems.

Š 2012 Ecolab USA Inc. All rights reserved An Ecolab Company

OVERVIEW

Energy Gas from landfill sites is set to power the province.

Sector Highlights Ethanol could be used for the province’s busses. • 270 Gauteng taxis are using liquid petroleum gas.

major companies

T

he Gauteng Provincial Government is getting behind energy efficiency, both as a way to promote sustainable energy use and to drive job creation and innovation in the sector. The provincial government has developed the Gauteng Integrated Energy Strategy, which promotes the use of renewable energy and the use of recyclable materials. The provincial government is rolling out a project in which energy is sourced from landfills. The province generates six million tons of waste every year. Project Awesome will be built and run by a private company on land that Blue IQ procures. Another provincial initiative aims to take the province’s major hospitals off the grid by having them recycle their medical waste through new technologies. The Gauteng Department of Economic Development and Planning (DED) has successfully piloted a solar-photovoltaic project in 50 homes in the Winterveldt area. Energy components of the DED’s Green Strategic Programme for Gauteng include: • Starting solar farms • Encouraging renewable energy investment • Converting the province’s taxis to liquid petroleum gas (LPG) By June 2012, 270 taxis had been converted, and authorities see this as a potential growth area, particularly with regard to increasing the local content of the conversion packs. At the moment, the conversion packs are fully imported. There Gauteng companies 2013

100

Eskom City Power Egoli Gas Basil Read Energy Cennergi

are 35 000 taxis in Gauteng and a huge number of busses and government vehicles, all of which are candidates for conversion. One Johannesburg bus is already running on ethanol. Scania South Africa has modified a bus that runs on sugar-beet ethanol supplied by Silversands Ethanol, a company based in the North West Province. This bus has been delivering passengers along Johannesburg routes since 2010. In most of Johannesburg, excluding Sandton and Soweto, electricity distribution falls to City Power, a company that employs more than 1 900 people and serves 300 000 customers, including industrial and commercial concerns. Egoli Gas, a company with 7 500 customers, has a …Continued on pg 102

PHOTO: SCANIA

Scania South Africa has modified a bus to run on ethanol.

• • • • •

AF

SOU TH

GENCY FOR N A PR CA OF PETRO ION LE OT UM M O

RI

LO

N TIO ITA

PETROLEUM AGENCY SA

IO ORAT N AND PL EX EX P

! Petroleum Agency SA

encourages investment in the oil and gas sector by assessing South Africa's oil and gas resources, and presenting these opportunities for exploration to oil and gas exploration and production companies.

! Compliance with all applicable

legislation in place to protect the environment is very important, and rights cannot be granted without an approved Environmental Management Plan.

! Explorers must prove financial

and technical ability to meet their commitments in safeguarding and rehabilitation of the environment.

! Preparation of Environmental

Management Plans requires public consultation and a clear demonstration that valid concerns will be addressed.

Petroleum Agency SA, based in Bellville, Cape Town, is responsible for the promotion and regulation of exploration and exploitation of oil and gas (petroleum) resources within the Republic (onshore and offshore) on behalf of government in terms of the Mineral and Petroleum Resources Development Act.

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

Contact us to find out about Onshore or offshore exploration opportunities for oil and gas in South Africa Permits and rights for reconnaissance, exploration or production Availability of oil and gas related geotechnical data

OVERVIEW

Private sector ArcelorMittal South Africa’s steel plant in Vanderbijlpark is a large consumer of electricity. Gauteng companies 2013

Solar farms harness the power generated by the sun. The company is consequently building its own power-generation capacity, using the heat generated by the furnaces that reheat steel. The formation of a new company in March 2012 could mark a turning point in the history of renewable energy in South Africa, in that both companies are leaders in their sectors. Cennergi is a renewable energy company that has its headquarters in Centurion, Tshwane. A partnership between resources company Exxaro and Tata Power, it has identified wind and solar projects at four sites in South Africa. Its stated goal is to be the number-one ‘cleaner energy’ independent power-producer in Southern Africa. South African Breweries has reduced its dependence on coal at its Alrode brewery by investing in a biogas-recovery plant. The brewery’s carbon footprint has been reduced by 7%, and the process generates methane gas, which is used as an energy source for the plant’s boiler. The company is investigating the possibility of integrating solar energy into the manufacturing process. Car manufacturer BMW has been steadily reducing its consumption of electricity and gas at its plant in Rosslyn, Pretoria. Consumption has been reduced by linking lighting requirements in workshops to the production schedule. International companies such as the German group juwi are looking for South African partners in the renewable energy field.

Online resources City Power: www.citypower.co.za Egoli Gas: www.egoligas.co.za Eskom: www.eskom.co.za Pikitup: www.pikitup.co.za Sustainable Energy Africa: www.sustainable.org.za Sustainable Energy Society Southern Africa: www.sessa.org.za

102

PHOTO: JMLAWLOR/FLICKR

pipeline network that extends over 1 200km in Greater Johannesburg. With improved pipe networks making for better and cheaper access to Mozambican gas fields, this market segment is expected to grow. The City of Johannesburg has committed to looking for renewable energy sources and will, as part of its infrastructure programme, retrofit its buildings to make them cleaner and greener. ENER-G Systems Joburg, a joint venture comprising five companies, has a 20-year contract to extract gas from the city’s landfill sites. The company will invest R250-million, earn carbon credits for itself and the city, and the gas will be converted into electricity that will be sold to Eskom. The City of Johannesburg is subsidising the installation of solar-power generators for domestic use in a large housing project at Cosmo City. Basil Read Energy is the private company responsible for the roll-out. The company’s own head offices have had a photovoltaic solar system installed at a cost of R2.5-million, which reduces fossil fuel requirements by 20%. Subsidiaries of the same company installed solarpowered boilers in the course of building the new Germiston Hospital.

We make it happen

Project Developers with a 100 % renewable energy vision juwi Renewable Energies (Pty) Ltd is your full-service partner in all aspects of renewable energy project development. The juwi group develops, plans, finances, constructs, operates and manages renewable energy power plants with a particular focus on the wind and solar energy sector in South Africa. Offering a network of international investors and a proven track-record across the globe, juwi can support your vision of 100 % clean energy, security of supply, and, independence from energy imports.

AHK Southern African – German Chamber of Commerce and Industry

For more information: Partner with us and you partner with success.

www.juwi.co.za

PROFILE

Centlec (SOC) Ltd Centlec (SOC) Ltd serves approximately 150 000 customers in the Mangaung and Southern Free State areas.

Electricity distribution Centlec distributes electricity to Mangaung, Kopanong, Naledi, Mantsopa and Mohokare. It purchases most of its energy from Eskom at 20 supply points in over 20 towns in the Southern Free State and the Mangaung Metropolitan Municipality. A small amount of power is also generated in Mangaung, especially during winter months, to address demand peaks.

Construction of electrical networks



Centlec distributes electricity to Mangaung and the Southern Free State.

The Centlec design and construction divisions handle all new electrification networks and the upgrading of existing networks.

Centlec (SOC) Ltd is a municipal entity which is wholly owned by the Mangaung Operation, maintenance and extension Metropolitan Municipality, and is in the busi- of networks

 ness of electricity distribution. Centlec’s cus- The maintenance of electricity distribution nettomer base consists of domestic customers works forms a large part of Centlec’s operations. (50% of revenue) and commercial users (50% A 24-hour standby service ensures that cusof revenue). tomers are not inconvenienced by long power outages. Ongoing evaluation is performed on Vision existing networks to detect any overloading • To become the electricity supplier of choice or failure and this is addressed with upgrading in the area of distribution and/or extension of the particular network. • To maximise shareholder value • To strengthen strategic and operational Contact details capacity • To position Centlec as the key player during Key contact people: the transitional period of the Electricity L Bomela, Acting Chief Executive Officer Distribution Industry (EDI) restructuring Brian Leserwane, Manager in the office of CE • To ensure good corporate governance Seipati Setai, Assistant Manager: • To ensure financial viability Communications and Marketing

Services • Electricity distribution (Mangaung and Southern Free State)

• Network design and development • Training and development for artisans • Support to struggling municipal electricity distributors in the Free State

Gauteng companies 2013

Tel: +27 51 409 2215 Fax: +27 51 409 2363 After hours: +27 51 409 2345 Email: ss@centlec.co.za Physical address: 30 Rhodes Avenue, Oranjesig, Bloemfontein 9300 Website: www.centlec.co.za

104

focus

Reducing electricity usage Centlec aims to create awareness of the methods that users can employ in order to minimise the amount of electricity used in their homes and businesses.

Electricity-saving tips

• Solar heating, as an alternative to an elec-

trical unit for water heating, uses 50% less Space heating electricity • Insulate the ceiling with insulating material Washing machines and dishwashers • Keep doors to heated rooms closed • Close the curtains when switching on a heater • Select the shortestpossible programme – it adds to the insulation • Cold-water programmes with the correct • Use heaters with built-in thermostats detergents reduce electricity consumption • Washing machines and dishwashing Refrigerators and freezers machines use a specific amount of water and • Avoid unnecessary opening of doors electricity, irrespective of the load • Ensure that the door-seals are in good • Use the tumble drier with discretion – its condition electricity consumption is very high • Defrost regularly to get rid of all builtLights up ice • Place away from any heat source • Switch off unnecessary lights • Use energy-saving fluorescent lamps instead Electrical geysers of conventional bulbs • Set the thermostat as low as possible: 55-60 • Fluorescent lights use less power, and degrees provide more light than ordinary bulbs • Switch the geyser off when on holiday General or away • Using the hot water tap to obtain small • Do not buy larger and more powerful appliances than are actually required quantities of water means that you are • Use the correct appliance for the job. using cold water at the price of hot water Using small kitchen appliances instead of the stove can save energy

Living/dining 100-watt lamp

10 hours

60-watt lamp

16 hours

Hot tray

1.5 hours

Vacuum cleaner

2-4 hours

Large colour TV Stereo sound system

Consumers are requested to turn off their geysers during peak hours, as displayed on the chart.

5 hours 8-10 hours

Appliances can be powered by one unit of electricity for the shown number of hours.

105

Gauteng companies 2013

OVERVIEW

Media Most of South Africa’s big media companies have their headquarters in Gauteng.

Multimedia Naspers is the country’s biggest media group. With market capitalisation of R182-billion (Bloomberg, July 2012) and a large international footprint, the company is moving increasingly into the Internet and mobile fields. Its major holdings in television and Internet services (MultiChoice), printing (Paarl Media) and print media (Media24), gives the company a large footprint. Kagiso Media’s headquarters are in Sandton, but it has a national reach, particularly in the broadcast division. The company is pursuing a strategy to diversify its revenue stream: the acquisition of Juta & Company for R300-million is part of that drive. Juta is a specialist in legal information and has a long history Gauteng companies 2013

106

Sector Highlights Johannesburg hosted the launch of Forbes Africa magazine in 2011. • Kagiso Media has paid R300-million for Juta & Company.

major companies

• MultiChoice • SABC • Kagiso Media • Media24 • CTP Group of textbook production. Investment in the new media environment saw Kagiso acquire shares in Gloo Digital Designs and Acceleration Media. In 2011, the group disposed of LexisNexis, a business research and software provider.

photo: eschipul/flickr

T

he national broadcaster has its headquarters in Johannesburg, as does the biggest private television company in Africa. Gauteng is also home to South Africa’s most competitive newspaper market, and it hosts the head offices of several large publishing houses and many radio stations. In addition, the province has significant manufacturing capacity in terms of printing, stationery and packaging. In 2011, Forbes Africa, the latest franchise of the international magazine, was launched in Johannesburg. It is published by ABN Publishing and distributed by On the Dot.

OVERVIEW

Print South Africa’s biggest and first truly national newspaper, the Sunday Times, is produced by the Avusa Group, located in Rosebank. The company’s other iconic title is The Sowetan. The Times newspaper, a tabloid daily brother of the Sunday Times, was launched in 2008. The group controls about 11% of national daily newspaper sales and 21% of weekly magazine sales. The Star is the city’s oldest and best-known daily. Sunday World, Rapport, Mail & Guardian, The Sunday Independent and The Sun are all published in Gauteng. In 2010, The New Age newspaper launched. It carries news from all regions of South Africa. Naspers’ print division is called Media24 and houses magazines such as Huisgenoot, You, FinWeek and Drum and newspapers like Beeld (South Africa’s largest Afrikaans newspaper with a daily circulation of about 100 000), City Press and Volksblad. One of South Africa’s most diverse publishing and printing companies is the Caxton and CTP Group. Caxton’s magazine division is headquartered at Caxton House in Craighall. CTP’s three main printing operations in Gauteng are CTP Isando (printing magazines and inserts), CTP Packaging and CTP Stationery. Unisa, the University of Pretoria and the University of the Witwatersrand have active

publishing operations, and companies such as Penguin SA, Macmillan SA, Jacana and Heinemann are based in Johannesburg. Brenthurst Press publishes works based on the rare holdings of the Brenthurst Library.

Broadcast Randburg-based MultiChoice, which operates DStv, is Africa’s biggest subscription-satellite-television service provider. Its sister company, pay-television-channel provider M-Net, is also based in the province. In July 2011, DStv started offering a movies-on-demand service, the first in South Africa. This allows customers to rent movies through their decoder at home. MultiChoice has four million subscribers in South Africa and another 1.6 million in other parts of Africa. Satellite-digital-television company TopTV started operating in May 2010. The parent company is called On Digital Media and has a diverse shareholding (including SES Astra, a Cosatu investment vehicle, the National Empowerment Fund and the Industrial Development Corporation). The South African Broadcasting Corporation (SABC) holds three of the country’s free-to-air television licences, as well as a number of commercial and public radio stations. There are an estimated 10 million radio sets in South Africa, broadcasting in all 11 national languages across FM and AM frequencies. Johannesburg radio audiences can tune in to more than 30 FM and a dozen AM radio stations. Major stations in the province include 94.7 Highveld Stereo, 94.2 Jacaranda FM, 5FM, Talk Radio 702, Classic FM, SAFM, Metro FM, YFM, Radio 2000 and Kaya FM 95.9. Radio 2000 is an SABC station that is growing strongly: in June 2011 it had 912 000 listeners, up from 794 000 at the same point in 2010. The newly renamed South African Audience Research Foundation keeps track of listenership. Metro FM attracts about six million weekly listeners. Of the other commercial stations, 5FM, YFM and Jacaranda show consistently good figures. Gagasi FM is similarly improving all the time and closing in on two million listeners.

Online resources Independent Communications Authority of South Africa: www.icasa.org.za Media Institute of Southern Africa: www.misa.org National Association of Broadcasters: www.nab.org.za Print Media South Africa: www.printmedia.org.za South African Audience Research Foundation: www.saarf.co.za South African Broadcasting Corporation: www.sabc.co.za South African Press Association: www.sapa.co.za

107

Gauteng companies 2013

OVERVIEW

Advertising Advertising by cellphone companies is boosting revenues.

I

n 2011, total spending on advertising in South Africa reached R32.1-billion, an increase of 11% on 2010 (Nielsen). Given that advertising revenue in 2010 was boosted by the hosting of the Soccer World Cup, the latest figures represent a real gain for the advertising sector, which is strongly represented in Gauteng. Among the biggest spenders are cellphone companies that are engaged in a competitive struggle for South Africa’s growing market. SAinfo reports that 35 million branded ‘Please Call Me’ messages are sent daily by South Africans, and that 1.6 billion mobile advertising messages are served every year. In 2011, Vodacom spent R504.9-million on advertising, closely followed by MTN with R469-million. Cell C ‘only’ spent R196-million, but had spent R373-million the year before. Traditional companies are not holding back: Unilever continues to be the country’s biggest advertiser, and South African Breweries (SAB) keeps its brands at the fore with targeted spending. In 2011, Unilever spent R1.2-billion (up 45% from 2010) and SAB spent R816-million, a 49% increase on the previous year. Another area of fast growth is in online advertising: this grew 29.9% in 2011, according to The MediaShop. Although this was off a low base, the potential for this market is huge. The Digital Media and Marketing Association (DMMA) has commissioned a survey that shows that companies are starting to spend in digital formats. Analytix BI’s survey of 119 companies showed that 10.7% of budgets are currently being allocated to digital. The MediaShop won Media Agency of the Year in the Adfocus 2011 awards. The company, which has an office in Bryanston, has 150 employees and billings in the region of R3.5-billion.

Online resources AAA School of Advertising: www.aaaschool.co.za AdFocus: www.adfocus.co.za Advertising Media Forum: www.amf.org.za Advertising Standards Authority: www.asasa.org.za Association for Communication and Advertising: www.acasa.co.za Digital Media and Marketing Association: www.dmma.co.za

Gauteng companies 2013

108

Sector Highlights Draftfcb Johannesburg is a multiple-award winner. • R32.1-billion was spent on advertising in South Africa in 2011.

major companies

• Draftfcb Johannesburg • The MediaShop • Ogilvy • TBWA\Hunt\Lascaris • Net#work BBDO • Young & Rubicon • Volcano Another big winner in 2011 was Draftfcb Johannesburg: overall Ad Agency of the Year and winner of five gold and five silver awards at the Pendorings Awards. The Pendorings, for Afrikaans advertising, were held at Vodacom World in Midrand in 2011. An All Media Product Study (AMPS) has shown that Gauteng-based Afrikaans speakers account for 28% of all household expenditure, almost double the figure of Afrikaans speakers in the population.

OVERVIEW

Film Gauteng is planning an international film festival.

A

ccording to the Gauteng Film Commission (GFC), the film sector contributes R2.5-billion to the provincial economy, with more than 80% of the country’s registered producers operating in the province. About 70% of South Africa’s television productions are made in Gauteng, as are 39% of all commercials. Geographically, there are two major clusters – around the SABC studios in Auckland Park and at the headquarters of MultiChoice in Randburg. There are about 50 companies active in the field of producing commerials. Nineteen schools, colleges and universities offer qualifications relevant to the industry, and there is a large pool of skilled technicians in the province. The decision in 2009, by the South African Broadcasting Corporation (SABC), to stop commissioning local productions had a huge impact on employment levels in the industry, according to the Financial Mail. Some 70% of Gauteng’s film work came through SABC contracts, and the number of people employed in film in Johannesburg dropped from 110 000 to 70 000. National government provides strong incentives for investors, with any production incurring costs of more R2.5-million attracting tax breaks and a repayment from the Department of Trade and Industry (dti) of 35% of the outlay. These incentives are paying off: in 2010, the country produced 20 films, against just three in 2001. An African women’s film festival, Women of the Sun, was held in Johannesburg in 2011. This was a joint undertaking of the Goethe Institute, the GFC and the National Department of Arts and Culture. Gauteng intends holding its own international film festival in 2012. The biannual Mediatech Africa conference and exhibition is hosted by Johannesburg and shows off the latest trends in broadcasting, film, lighting, staging and rigging. More than 800 brands were on display at the 2011 show.

photo: comradefooto/flickr

Online resources Film and Publication Board: www.fpb.gov.za Gauteng Department of Economic Development: www.ecodev.gpg.gov.za Gauteng Film Commission South Africa: www.gautengfilm.co.za SA Film: www.safilm.org.za

109

Sector Highlights Johannesburg hosted an African women’s film festival in 2011. • 39% of South African commercials are shot in Gauteng.

major companies

• Gauteng Film Commission

• Picture Tree • Stark Films • Sasani Studios • Red Pepper Pictures Gauteng is proving increasingly attractive to international filmmakers, not only for the wide variety of locations on offer, but also because of the high standard of studio facilities and highly qualified technical support personnel. Gauteng companies 2013

OVERVIEW

Information and communications technology ICT is a big contributor to regional GDP.

Sector Highlights Nasrec is to become a Smart City. • mLab will incubate entrepreneurs in mobile phone technology. • About 4.1 million South Africans have access to broadband.

major companies

Gauteng companies 2013

110

In a drive to help small business, Standard Bank announced a partnership in 2012 with Pastel, whereby the software company’s accounting package will be made available online. ITweb reports that Absa Bank will spend R8-billion on ICT in the years to 2014. Business Monitor International estimated that, in 2011, the number of broadband subscribers in South Africa had grown by 31% to reach 4.1 million (SA Information Technology Report, Q2 2012). A number of data centres in the Gauteng region are

photo: mLabsa

A

bout two-thirds of South Africa’s ICT companies are located in Gauteng Province. The Gauteng ICT sector contributes more than 6% to regional gross domestic product (GDP). The sector constitutes a diverse range of hardware manufacturing and software design, and various service offerings such as software management, systems programming and technical support. International giants like Microsoft, Hewlett-Packard, IBM, ICL, Cisco and Unisys all have a strong presence in Gauteng, as do South Africa’s own ICT businesses. The combined ICT market in South Africa is estimated to be in the region of R30-billion. South Africa is highly regarded as a centre of software development, and the National Department of Trade and Industry (dti) has identified several sectors as best-suited to attracting foreign investment. These include: • Automotive electronic systems • Access control and security • Financial • Silicon processing for fibre optics • Integrated circuits and solar cells Large corporations are responsible for big investments in the ICT sector. In 2012, Old Mutual signed a R2.5-billion ICTinfrastructure-management contract with T-Systems South Africa.

• Microsoft • HP • Acer • IBM • Dimension Data • Mecer

OVERVIEW dedicated to a particular company, such as the 27 000m2 Samrand Data Centre for Standard Bank. There are also specialist data centre operators, such as Business Connexion. Johannesburg-based Didata has been a leader in South Africa’s ICT sector since 1983, so its sale in 2010 was a major event. Dimension Data was bought by Nippon Telegraph and Telephone Corporation, a Japanese company. New entrant to the market, Metrofibre Networx, a Midrandbased company, is competing with Vodacom and Neotel in providing metro Ethernet technology, a fibre-based broadband technology that is a cheaper method of connecting subscribers to the internet or connecting offices within one company with each other.

hosts two of technology-related projects (the Innovation Hub and the Automotive Supplier Park), and is home to many of South Africa’s leading research institutes. These include the Council for Scientific and Industrial Research (CSIR), Human Science Research Council (HSRC), Agricultural Research Council (ARC), National Research Foundation (NRF), Medical Research Institute (MRI), Veterinary Research Institute (VRI) and South African Bureau of Standards (SABS). The Innovation Hub’s Centres of Expertise Programme targets small, medium and micro enterprise development, linking companies, research institutions and universities with companies that need information. The Gauteng Provincial Government is developing a Smart City at Nasrec, south of Johannesburg. A company in the Dubai Holdings group, Tecom Investments, is advising the province in the establishment of this Smart City, which will comprise: • Electronics assembly and manufacturing • An ICT research and development centre • ICT connectivity and transaction-switching centre • A call-centre facility with a 5 000-seat capacity • ICT knowledge centre, in partnership with international companies such as ITE Education Services (Singapore) and MIT (the US) Innovation in the sector will be encouraged by the newly established mLab, a centre designed to support entrepreneurs in the mobile-technology field. The CSIR in Pretoria hosts the facility together with the Innovation Hub. Promoting growth The South African Vanguard of Technology (Savant) is a The provincial government is Department of Trade and Industry programme. It is the marketing supporting a programme that and awareness programme for the South African ICT and elecprovides mentoring and ven- tronics sector. The aim is to develop South African exports in ture capital for the commer- these sectors and to attract foreign investment. The Savant portal cialisation of technology firms, is an appropriate first stop for prospective inward investors into and the science park known as the South African market. the Innovation Hub. The State Information Technology Agency (SITA) is a stateThe City of Tshwane, which owned enterprise that provides ICT services to government includes the capital city of and leads projects in the sector. An initiative to help all of Pretoria, has an Innovation South Africa’s teachers obtain laptops will have an impact on Office based at the Innovation the sector. Hub. In 2009, the Tshwane ICT Cluster was launched, Online resources designed to kick-start longGauteng Online: www.gautengonline.gov.za standing plans to achieve Gauteng Shared Services Centre: www.gssc.gpg.gov.za Smart City status for Tshwane. Innovation Hub: www.innovationhub.co.za The cluster will assist in netInterg8 Nerve Centre: www.nervecentre.co.za working among private-and mLab: www.mlab.co.za public-sector operators. South African Vanguard of Technology: www.savant.co.za The city already has a fibreoptic network infrastructure,

111

Gauteng companies 2013

ERP CLASS FINANCIALS FOR GOVERNMENT WITHOUT THE WAIT .......THE RISK ........THE COST At a price expected of far less mature midrange offerings, your organization can take strategic advantage of Computron’s Enterprise Class Financial Software and Business Solutions with a richness of functionality and features that only comes from 30 years experience in the market. Computron Enterprise Financial Suite is a high value business solution that caters for the following key processes: Supply Chain Management Fully Workflow enabled supply chain management from contracting through requisitioning to the payment process, ensures the proper management of the procurement to payment cycle and related exposures. Included in this process is a full scanning and OCR solution which works in tandem with the workflow process to ensure visibility of all documents in electronic format during the various approval phases. Revenue Management Computron’s Accounts Receivable and Invoicing modules offer a comprehensive solution for the organisation’s billing and collections needs. It includes electronic invoice distribution, rules based matching of receipts, responsibility driven collection of receivables and automated risk based credit control. Financial Management To compete in today’s marketplace, you need flawless financial data that: - Adheres to strict internal controls - Complies with local and international regulations - Complies with reporting requirements - Is readily accessible. The Financial Management portion of our Enterprise Financial Suite can address your most pressing business needs while streamlining outmoded business practices, all through an intuitive, user-friendly interface.

Contract Management Contract Management enables the organization to maximise the business benefits from its contractual relationships and mitigate the associated risks. Contracts are managed from a business perspective, ensuring all possible corporate governance and financial benefits are realised. Project Portfolio Management with Timekeeping and Expense Management With this system a unique approach to Project Portfolio Management (PPM) is taken. We provide industry-leading PPM functionality, however, unlike vendors that force you to change your processes to fit their systems, the solution is designed with you and your business in mind. The system is flexible and easily configured so that you can introduce powerful new PPM capabilities - where and when it suits your organisation. Budget Forecasts and Business Intelligence Computron’s interactive reporting, inquiry and budgeting module offers users a unique dynamic for driving management information. The traditional Computron budgeting and reporting model is transformed by providing interactive financial and management reports spanning all ledgers and rendered through live data tables, charts, gauges and other graphical presentation techniques, which can be combined into Special Interest Dashboards. This introduces a powerful Performance Management solution. Users can now measure, analyse and report results, trends and key performance indicators across all aspects of their business. Computron’s Enterprise Financial Solutions serve a broad spectrum of the worldwide business community, including Central and Local Governments, Banking, Energy, Pharmaceuticals and Transportation.

Computron has developed a well-defined business model which is readily adaptable to the South African Government environment. For more information contact us at: +27 (0)12 663 5221

djordaan@computronsoftware.co.za http://www.computronsoftware.co.za

OVERVIEW

Banking and financial services The financial sector is a major contributor to Gauteng’s GDP.

Sector Highlights South African banks are in good health, despite the global economic climate. • Bad debt fell by R20-billion in 2011. • 2.6 million Absa clients use cellphone banking.

major companies

• Absa • Nedbank • Standard Bank • FNB • JSE • Investec • Rand Merchant Bank R20-billion. South African banks’ capital-adequacy ratios remain well above the international norm, at about 14.5%. South Africa is an ideal stepping stone into Africa, and several international concerns have set up head offices in Johannesburg. These The Johannesburg Stock Exchange building in Sandton. include: Bank of China, Bank frica’s largest stock exchange and the head offices of a of Taiwan, Citibank, Deutsche large number of banks and investment houses are located Bank AG and HSBC Bank. Add in Gauteng. The financial-services industry contributes to that the Reserve Bank 21% to Gauteng’s gross domestic product. and the Johannesburg Stock South Africa’s financial sector has shown enormous resil- Exchange, Africa’s largest ience in the post-2008 environment, a product of strict reg- securities exchange, and one ulation. The Reserve Bank announced in 2012 that national has a sense of the power of banking assets stood at R3.4-trillion in December 2011. Oper- this sector in Gauteng. There are more than 70 ating profits for banks increased in 2010/11 by about 30% to R49-billion. The amount of money loaned out by banks also mining companies listed on increased, by nearly 9%, to R2.5-trillion. the JSE, and they make up Perhaps the best news for South African consumers was about a third of total market that the amount of bad debt in the same time period fell by capitalisation at R1.86-trillion. Gauteng companies 2013

114

photo: Johannesburg Stock Exchange

A

OVERVIEW Employment in South Africa’s financial sector grew for four consecutive months in late 2011, reflecting the activity in the retail banking sector in pursuing new markets. Four banks dominate the retail sector: Absa Group (a member of Barclays Bank), Nedbank, FNB (a division of FirstRand) and Standard Bank. The bigger banks face strong competition from African Bank Investment Limited (Abil) and Capitec Bank. Abil reported that its lending to households that earn less than R15 000 per month increased by 89% in the fourth quarter of 2011. Half-year revenue increased by close to R2-billion over the previous year to R9.3-billion. Capitec Bank told Bloomberg in December 2011 that it was employing about 200 employees every month to service demand. First National Bank’s EasyPlan branches are proving so successful that it has hired an additional 800 staff members. South Africa’s biggest retail bank is Absa. In 2009, it rolled out Absa Transact at specific Entry Level and Inclusive Banking (Elib) branches. These 63 branches represent 8% of Absa’s branch network, but they generate 35% of loans. Of Absa’s 11.8 million retail customers, 2.6 million use cellphone banking and 1.3 million use the Internet. Absa Business Bank does private and public work in Gauteng. One of the biggest public loans was a sevenyear funding initiative for the Gautrain project.

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 that engages with capital markets, private banking and asset management, is dual-listed in Johannesburg and London. Nedbank Capital and Standard Bank (with Deutsche Bank) were co-lead managers on the South African Treasury’s global bond issue in 2010. At $2-billion, it was the largest single bond ever raised in South African financial history. With the number of mergers and acquisitions down in South Africa (about R110-billion in 2011, a similar figure to that achieved in 2004), the country’s investment bankers are looking to the rest of Africa for opportunities to lend. FNB is the Provincial Government of Gauteng’s banker, a contract that will run from 2012 to 2017. The account is said to be worth in excess of R300-billion.

Insurance A R30-billion deal, announced in March 2010, reshaped South Africa’s life assurance landscape. Metropolitan (valued at R12-billion) merged with Momentum (R18-billion) to form South Africa’s third-biggest life assurance company after Old Mutual and Sanlam. French reinsurer Scor Group has established itself in Johannesburg in order to target the English and Portuguesespeaking markets on the continent, specifically Angola and Nigeria. One of the biggest new buildings to be constructed in Johannesburg’s CBD is a new headquarters for insurance company Zurich.

Online resources Alternative Exchange (AltX): www.altx.co.za 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 South African Reserve Bank: www.resbank.co.za

115

Gauteng companies 2013

interview

Ahead of the game Theunis Duvenhage, Head of Gauteng Province at Standard Bank, explains the factors that keep the bank at the forefront of the banking market in South Africa and beyond.

Theunis Duvenhage

Tell us a little about Standard Bank’s operations in Gauteng. How many branches does it have, etc? We have: 153 branches, 17 loan centres, 1 982 ATMs, 1 023 bank shops, 10 private-banking suites, 12 business centres, as well as access to a portfolio of electronic channels, such as Internet banking, cellphone banking, cellphone applications and contact centres, to mention but a few.

Tell us about some of the major finance deals that Standard Bank has concluded in the province recently. Since the beginning of 2011, we have provided financing in excess of R7.7-billion for the acquisition of assets in Gauteng Province. The bulk of these transactions were done in the transport, mining and manufacturing industries, which no doubt will have a positive impact on job creation and economic growth in the province. In addition to this, substantial lending has also been extended by means of working-capital finance and term finance. Our specialists in franchising, agriculture and the public sector also added tremendous value to our clients operating in these sectors. Some of the successful transactions concluded related to: • Financing of management buyouts, which included BEE-related restructuring Theunis Duvenhage is • Funding of business-expansion strategies Standard Bank’s Head • Agricultural production finance and financing of land acquisition of Gauteng Province. • Establishment and expansion of manufacturing and processing plants He began his career at • Public-sector investment in infrastructure development and for Standard Bank in 1995 in working capital in general the Branch Development We have an extended network of account executives in our busiProgramme. He then con- ness centres. Business managers in our branches offer customised centrated on the SME solutions and finance to our business clients on an ongoing basis. sector as an SME manager and SME Centre manager. To what would you attribute your success in the structuring of He then held such key posi- these types of finance deals? tions as head of execution Key to our success is competent and dedicated staff who work and implementation and tirelessly to meet their customers’ requirements. Customer service is head of Branch Banking, a top priority in our business and helps us to keep moving forward. before ascending to his Our account executives and business managers who manage current position in 2012. the relationships with our clients are experienced, highly skilled Gauteng companies 2013

116

interview and competent, and have a passion for their clients’ businesses. Our decentralised, customercentric operating model ensures that we remain quick and efficient when processing customer requirements. Relationship staff are furthermore supported by subject-matter experts in asset finance, merchant services, trade finance, debtor finance, property finance and many other specialised areas.

close to customers’ homes. These AccessPoints are outsourced to traditional and nontraditional retailers, such as spaza shops. We further provide customers with the ability to send and receive money to and from friends and family cost-effectively using our innovative money-transfer solutions. We have deployed in excess of 1 000 sales agents and community bankers who provide customers with cost-effective and convenient Will Standard Bank be launching any new access to banking. These sales agents and products or projects in Gauteng in 2013? community bankers operate within the comStandard Bank will continue to launch inno- munities, ensuring access to banking products vative new solutions to our customers in our outside traditional banking hours. endeavour to create financial accessibility, Standard Bank Group describes itself as a through simplified and convenient banking. We also aim to continue growing market leader in public-private partnerships. Could share in all segments in Gauteng. Further, we you tell us about some of the successful will continue to create cheaper and more con- partnerships that you have concluded recently. venient channels of banking for all customers. Locally, we expanded our footprint in the public-sector segment in Gauteng Province, What do you consider to be the key factors with clients that include municipalities, stateinhibiting more pronounced economic growth owned enterprises, embassies and other stakein Gauteng Province? holders in the broader public arena. Against the backdrop of the global economic crisis and the current state of the global Africa (beyond South Africa) has long been economy, one cannot deny the pressures on a key focus for Standard Bank. What is your our local economy. Gauteng, however, con- strategy going forward? tinues to serve as the economic hub of the Our group strategy explains our viewpoint country, and as such, provides opportunities the best: for growth and development. We are espe- • We aspire to build the leading African financial services organisation using all our cially excited about the prospect of growing with our customers, ensuring sustainable financompetitive advantages to the full. cial partnerships that contribute to alleviating • We will focus on delivering superior sustainpressures in our province, such as high levels able shareholder value by serving the needs of unemployment and other socioeconomic of our customers through first-class, on-thechallenges. ground operations in chosen countries in Africa. We will also connect other selected What is Standard Bank doing to ensure it proemerging markets to Africa and to each vides relevant services to marginalised and other, applying our sector expertise globally, unbanked communities? particularly in natural resources. We have launched an Access Account product • Our key differentiator is people who are pasinto the market this year, which is costsionate about our strategy, wherever in the effective for our customers, and can be opened world they are based. paperlessly in under 10 minutes. We are excited to be one of the leading comFurther, we have rolled out in excess of panies in Africa, and we are proud of the contri9 000 AccessPoints across the country, which bution we are currently, and still will be making provide access to simplified banking services to growing our wonderful continent.

117

Gauteng companies 2013

focus

Helping needy communities in Gauteng Standard Bank gives back to the community in the areas of education and enterprise development.

Education

schools. To date, these schools have received a total monetary contribution of R150 000 each since 2009. This amounts to a total of almost R3.5-million towards the improvement of teaching and learning. Standard Bank has conducted, and continues to conduct research on each of the schools so that it builds a knowledge base of factors that have a bearing on teaching and learning, such as socioeconomic factors.

Standard Bank Adopt-a-School Programme Standard Bank has a formal agreement with the Department of Basic Education (DBE) with regard to the department’s Dinaledi Schools Project. Standard Bank has ‘adopted’ 115 schools across Orphans and vulnerable children the country. The project seeks to support these Standard Bank conducted research in 2008 schools and develop them into centres of excel- and 2009 that indicated that the most intraclence for the teaching of maths and science. table challenges to improving teaching and In Gauteng, Standard Bank has adopted 23 learning are security (inside and outside schools), Gauteng companies 2013

118

photo: anglo american

S

tandard Bank Corporate Social Investment (CSI) runs the following programmes in Gauteng:

focus psychological health and wellness, and hunger. About 20% of learners in Standard Bank’s adopted schools do not have parents who care for them, and 15% of those are classified as orphaned and vulnerable children (OVC). Thus, it can no longer be assumed that the traditional family structure is there to support learners in schools. The problem confronting the schooling system in South Africa is bigger than what teachers are trained to deal with. In 2009/10, Standard Bank staff led a group of 50 enthusiastic cyclists (Cycle for Kids) and raised R545 553 for OVC in 24 Standard Bank schools spread across the Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo and the Northern Cape; 821 learners received clothing and stationery. In 2011, the CSI unit set aside R3.2-million to support OVCs in Standard Bank schools. R2-million was put aside towards this programme in 2012. The schools identified the learners that were in need of support, and Standard Bank donated items that would provide the most assistance.

photo: anglo american

Thandulwazi Maths and Science Programme Thandulwazi Maths and Science is a Saturday School programme that provides quality tuition in maths and science to learners from schools within the township communities in Gauteng,

Tuition in maths and science is provided.

including learners from the 24 schools that Standard Bank has adopted. The aim of this programme is to alleviate the academic challenges faced in maths and science subjects by learners by providing curriculum-based extra tuition. St Stithians uses its facilities to run extra classes for public schools, and thus serves as a centre of excellence for Standard Bank in Gauteng. For 2011/12, the bank invested an amount of R2.2-million towards this programme.

Enterprise development Believe Begin Become (BBB) and Alumni Network Programme Believe Begin Become is a comprehensive entrepreneurship development programme that identifies and supports promising entrepreneurs who face small business challenges, such as market and information gaps, lack of business knowledge, skills and access to financial services. Once identified, the programme assists the entrepreneurs to overcome these obstacles and to run profitable, sustainable businesses. The programme focuses on promising entrepreneurs from four industry sectors (light manufacturing, agriculture, construction and tourism). They are trained and mentored to write a business plan. During this process, the entrepreneurs compete with their business plans for seed capital, business development services vouchers and an aftercare service. Ultimately, 20 top business plans are selected, and the entrepreneurs are awarded R35 000 in business development services vouchers and one year aftercare service. An additional R75 000 is awarded to the top 10 entrepreneurs. A total of 240 entrepreneurs have participated in the programme, 11 of whom come from Gauteng. These entrepreneurs are currently part of an alumni programme that provides them with continued training, industry support, networking events, business development vouchers and callcentre support facilities. There will also be an opportunity for selected entrepreneurs to receive support that focuses on accelerating their business into a growth phase through mentorship, access to finance and market-linkage support. Since the inception of the programme, Standard

119

Gauteng companies 2013

focus Programme and facilitates the formation of regional product clusters for a broader group of farmers to access new markets. This will allow communities to produce citrus, indigenous, organic and conventional fruit and vegetables (fresh and processed) in volumes to secure market access. Since the inception of the programmes, Standard Bank has invested R340 000 towards the development of 25 smallholder farmers in the Vaal Cluster in Gauteng.

Standard Bank House Build Volunteer Programme Since 2009, Standard Bank, in partnership with Mellon Housing Initiative, has worked together with government in addressing the housing backlog faced by the department and encouraged beneficiaries to look after their The Agricultural Market Access Programme homes. Standard Bank has donated 20 houses provides training and business coaching to in Gauteng (Tembisa) and it is in the process smallholder farmers. of building 10 houses in Etwatwa, to make a Bank has invested almost R1.4-million towards difference to the families of shack dwellers. the development of the Gauteng entrepreneurs. About 400 Standard Bank volunteers from various business units and branches volunteered Agricultural Market Access and Product 160 hours over the period of four weeks to Cluster Development programmes build these structures. The Agricultural Market Access Programme The volunteer programme creates an opportuis aimed at assisting smallholder farmers to nity for the employees to participate in building obtain sustainable market access. The training homes for destitute families. The volunteers is designed for smallholder farmers drawn from work alongside the community in making a sigpreviously disadvantaged groups. Training nificant and noticeable impact that improves includes technical knowledge, business their quality of life. For the past three years, an coaching and mentoring in the process of com- amount of almost R2.4-million has been invested mercialising their activities to obtain successful in this project. market access in a sustainable manner. The Product Cluster Development Programme www.standardbank.com/ expands on the Agricultural Market Access corporatesocialinvestment Gauteng companies 2013

120

photo: anglo american

Employee community involvement Standard Bank has an established facility that allows its staff members to contribute to charities and charitable causes of their choice. Standard Bank matches these donations rand for rand. In South Africa in 2011, R6.1-million was donated to community organisations through this facility. Staff members have and continue to use this as a means of interacting with their communities.

listings

Standard Bank Gauteng Province A guide to Standard Bank’s key contact personnel in Gauteng Province.

Gauteng Provincial Office Physical address: Bedford Centre, Cnr Bradford and Smith streets, Bedfordview Postal address: Private Bag X23, Gardenview 2047

Nitesh Patel Head Branch Banking Gauteng Province Tel: +27 11 677 0425 Fax: +27 11 677 9858 Email: nitesh.patel@ standardbank.co.za

Theunis Duvenhage Provincial Head Gauteng Province Tel: +27 11 677 0446 Fax: +27 11 677 9858 Email: theunis.duvenhage@ standardbank.co.za

Tony Pick Head Provincial Small Enterprises Gauteng Province Tel: +27 11 677 0408 Fax: +27 11 677 9858 Email: tony.pick@ standardbank.co.za

Robert Sydow Head Provincial Private Banking Gauteng Province Tel: +27 11 677 4586 Fax: +27 11 677 9858 Email: robert.sydow@ standardbank.co.za

Boitumelo Chocho Manager Provincial Public Sector Tel: +27 11 677 0558 Fax: +27 11 677 9858 Email: boitumelo.chocho@ standardbank.co.za

Berrie de Jager Head Provincial Business Centres Gauteng Province Tel: +27 11 677 4585 Fax: +27 11 677 9858 Email: berrie.dejager@ standardbank.co.za

Brian Makiza Manager Provincial Agriculture Tel: +27 11 677 4404 Fax: +27 11 677 9858 Email: brian.makiza@ standardbank.co.za

Martin Makuva Provincial Sales Head Gauteng Province Tel: +27 11 677 0545 Fax: +27 11 677 9858 Email: martin.makuva@ standardbank.co.za

Fanny Lekgwati Manager Provincial Franchising Tel: +27 11 677 4404 Fax: +27 11 677 9858 Email: fanny.lekgwati@ standardbank.co.za

121

Gauteng companies 2013

OVERVIEW

Development finance and SMME support Gauteng is setting up township enterprise hubs.

W

Gauteng companies 2013

122

Sector Highlights The automotive sector is incubating small businesses. • FNB Private Clients wants to link investors and entrepreneurs. • 1 400 people have received enterprise training from UP’s business management unit.

major companies

• Sefa • Seda • NEF • Gauteng Enterprise Propeller

• Industrial Development Corporation

• Anglo American Zimele

photo: Anglo ameriacan

ith the promotion of small, medium and micro enterprises (SMMEs) seen as a national priority for job creation and growth, increasing numbers of financial institutions and government agencies are making it their business to support entrepreneurs. Since the Tshwane Enterprise Development Programme started in 2009, more than 1 000 people keen to learn about how business works were put through their paces by the University of Pretoria’s Department of Business Management. The programme is an initiative of the Tshwane Metropolitan Municipality. The Gauteng Provincial Government allocated R112-million to its SMME support agency in the 2012/13 budget. The previous year’s much smaller budget (R45-million) created more than 1 000 jobs in the 83 small businesses that received support. The Gauteng Enterprise Propeller (GEP) has programmes to give skills to young entrepreneurs, and the Y-Age (Youth and Graduate Entrepreneurship) project aims to create 100 000 entrepreneurs. GEP has signed an agreement with the national broadcaster, the SABC, to spend 25% of its procurement budget with SMMEs. The automotive industry in Gauteng has been supportive of SMMEs, with Ford’s Supplier Incubation Facility now boasting five new black-owned businesses. Township Enterprise Hubs are planned for Tshwane, Ekurhuleni, Sedibeng District Municipality and Mogale City, and buy-in from companies and manufacturing associations has been secured. Each hub will have three clusters: • Automotive: body repairs, spraying, wheel and tyre, mechanics • Services: car wash, laundry, Internet café, hair salon, etc • Light manufacturing: cleaning chemicals, clothing, textiles, furniture, etc A 2011 survey has shown that the most popular spheres for SMMEs are retail (22%), services (20%) and tourism and leisure (20%). The Centre for Small Business Development at the University of Johannesburg did the survey in four Gauteng townships, with the support of Business Leadership SA. The study found the key reasons for the failure of small businesses to be a lack of budgeting skills, poor business plans and the lack of relevant skills needed to run a business.

OVERVIEW The Shanduka Foundation started supporting the Shanduka Black Umbrellas in Pretoria in 2011. The Umbrellas incubator is based on a programme that helps entrepreneurs convert their good ideas into sustainable business practice. DRA Minerals is putting R3.8-million into the programme over two years. Anglo American Zimele, which runs four enterprise development and investment funds, helps start and expand SMMEs. Since the introduction of enterprise hubs, the number of projects has grown very quickly, and about two applications are received every day. Zimele has processed about R500-million in loans. One of Zimele’s small business hubs operates out of Vanderbijlpark. The National Empowerment Fund (NEF) is an agency of the National Department of Trade and Industry (dti). The launch in 2011 of the Enterprise Development Fund (EDF) by the NEF was a positive step in providing more funding for start-up businesses. The fund has an initial funding of R75-million, with plans to boost this by another R50-million supplied by private partners who want to see black-run and womenrun businesses succeed. In the 2010/11 financial year, the NEF rolled out funding worth R2.3-billion for black entrepreneurs in a range of sectors. The Small Enterprise Development Agency (Seda) is an agency of the dti. Seda gives non-financial support to

entrepreneurs through training, assistance with filling in forms, marketing and creating business plans. National government has created a new agency to spur the development of SMMEs. The Small Enterprise Finance Agency (Sefa) will do the work previously done by three separate bodies. The new agency is under the control of the Industrial Development Corporation (IDC). In 2010, the IDC spent R2.1-billion across South Africa in supporting 142 SMMEs, and R9.4-billion on new capacity or expansion projects.

Banks Absa has created a fund called the SME Fund for entrepreneurs who cannot get access to funding through the normal channels. The fund is driven by the Small Business division of Absa, and is targeted at companies that are 100% black-owned, need bridging finance to execute government tenders, and do not have the security normally required to support an application for finance. FNB Private Clients has come up with an interesting idea: it aims to persuade its high-net-worth individuals to invest in start-ups. Through a partnership with the AngelHub, a company that pools SMME funding and provides a network, FNB Private Clients will be able to expose its clients to promising start-ups. Potential investors won’t need reminding that Anton Rupert, founder of the Rembrandt Group, started with borrowed money and a good idea. Standard Bank’s Community Investment Fund (CIF) initiative extends loans to informal businesses who do not qualify for credit under standard lending criteria. The CIF has distributed in excess of 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.

Online resources Anglo American Zimele: www.angloamerican.co.za Business Partners Limited: www.businesspartners.co.za Development Bank of Southern Africa: www.dbsa.org Gauteng Enterprise Propeller: www.gep.co.za Industrial Development Corporation: www.idc.co.za National Department of Trade and Industry: www.thedti.gov.za Shanduka Black Umbrellas: www.shandukablackumbrellas.org Small Enterprise Development Agency: www.seda.org.za

123

Gauteng companies 2013

PROFILE

Small Enterprise Development Agency: Gauteng Province The Small Enterprise Development Agency their business and expand nationally and (Seda) works to ensure that the small enter- internationally. Assistance provided: prise sector grows and increases its contri- • Business systems development bution to social and economic development, • Export development employment and wealth creation. • Co-operative support • Growth strategies Business Talk (pre start-up phase) • Technology transfer Services focusing on clients who want information on starting a business. Assistance Cooperatives and Community PublicPrivate Partnership Programme provided: • Business advice and information The mission of the programme is to promote the • Small enterprise training and seminars establishment of rural and collectively owned • Business registration enterprises and ensure their growth and sustainability. It focuses on key factors, namely: Business Start (start-up phase) • Agribusiness Provides tools and techniques for clients who • Cultural tourism are ready to start a business and want assis- • Mining and mineral beneficiation tance and direction. Assistance provided: • Trade and auxiliary enterprises • Business planning, counselling and support • Facilitation of access to finance Contact details • Business incubation • Basic business skills training Key contact person: • Introduction to co-operatives course Nosipho Khonkwane, Provincial Manager: Gauteng Business Build (building phase) Email: nkhonkwane@seda.org.za Services focusing on clients who want skills to sustain and strengthen their businesses. SEDA Gauteng Provincial Office/ Assistance provided: Johannesburg branch • Business technical support Physical address: 2nd floor, Forum 5, • Networking and business linkages 33 Hoofd Street, Braam Park, Braamfontein • Capacity-building systems and mentorship Tel: +27 11 408 6528 Tel: +27 11 408 6500 • Tender advice/procurement Tshwane branch • Export orientation Physical address: 4th floor, Block C, • Technology transfer Old Mutual building, 536 Francis Baard • Starting and managing a co-operative Street, Pretoria Tel: +27 12 400 8880

Business Grow (growth/maturity phase)

Services focusing on clients who want to grow

Gauteng companies 2013

Website: www.seda.org.za

124

interview

Accessible support for entrepreneurs Provincial Manager for Seda Gauteng Nosipho Khonkwane explains how Seda is establishing co-locations in Gauteng to ensure that its services are easily accessible. Nosipho Khonkwane Please tell us what kind of progress Seda has made in establishing co-location points within municipal offices in Gauteng. Seda Gauteng is making progress in ensuring that Seda services in the province are accessible to all entrepreneurs. This is in line with our strategy of expanding the footprint in Gauteng in partnership with other role-players in the SMME development sector. In partnership with the City of Tswane, the following five co-location points are operational: Nosipho Khonkwane • Mamelodi holds a National Diploma • Olivenhoutbosch in Industrial Engineering • Hammanskraal (Sekampaneng) from Port Elizabeth Tech- • Mabopane nikon (PETECH), a B-Tech • Bronkhorstspruit in Industrial Engineering These five outreach points are supported by a fully fledged Seda from the University of branch at 536 Francis Baard Street, Pretoria. Another fully fledged South Africa (UNISA) and a Seda branch has been operational in Johannesburg since July 2012, Masters of Business Lead- housed together with the Seda Gauteng Provincial Office. ership (MBL) from UNISA. We are working towards finalising two new partnership agreeShe has more than 10 ments with a further two municipalities (Ekurhuleni Metropolitan years experience in SMME Municipality and Emfuleni Local Municipality). This will ensure accesdevelopment. Nosipho sibility of Seda services in three district municipalities and one local joined Seda in 2006 as a municipality by the end of the 2012/13 financial year. manager responsible for the rollout of operating How is Seda partnering with some of the larger corporates in the systems within the provin- province to develop local suppliers? cial network of Seda. In This is part of the strategy to be pursued aggressively from the 2008, she moved to the 2013/14 financial year. We are currently working on partnerships senior manager role in that will work towards identifying market access opportunities for the Technology Transfer SMMEs, and that will equip the SMMEs with the requisite skills to department, and is cur- take advantage of these opportunities. This approach will assist corrently the provincial man- porates to intensify their enterprise development efforts and see quantifiable results. ager for Seda Gauteng.

125

Gauteng companies 2013

focus

A Seda Gauteng success story Thanozi General Trading improves productivity and performance thanks to a timely intervention by the Small Enterprise Development Agency.

inhibited its ability to distribute Blastrite products and service its client base. Therefore, the company was not in a position to expand and become more profitable.

Seda’s intervention A Seda business advisor conducted an assessment of the company and made recommendations to the management of TGT regarding various interventions required to move the business to the next level of performance. A marketing intervention was implemented, which included the design and development of new corporate image for TGT. This was to ensure that the revitalised company would establish a strong brand in the market.

Joseph Khoza and Thandekile Mehlomakulu.

Background Established in 2006, Thanozi General Trading (TGT) was founded by Thandekile Mehlomakulu and Joseph Khoza, the current owners of this business. The business has headquarters situated in the Germiston industrial area of the Gauteng Province. The core focus of this business is the provision of unique services in blasting-product transportation. The company is 100% owned by previously disadvantaged individuals, with 50% female ownership. Its supervisory and management teams have extensive experience in their respective fields.

Challenge TGT is a relative newcomer to the market and was struggling to make the company known. As a result, its client base was very limited. The company operated with only five trucks, which Gauteng companies 2013

Outcome Due to the timely intervention by experienced Seda staff, the following outcomes occured: • Sales have increased by R1-million in the past six months • The number of employees increased from six to nine (excluding casual employees) • Due to this growth, the business was able to invest in two more trucks, increasing the fleet from five to seven trucks The business still has ambitious growth plans and will be investing in additional trucks, including a 30-ton truck to service an opportunity that involves carrying a minimum of 400 tons of sand-blasting products per month. www.thanozi.co.za www.seda.org.za

126

PROFILE

Chamber of Commerce and Industry – Johannesburg The Chamber is an independent, non-political, subscription-based association dedicated to promoting a business-friendly environment and providing members with practical services to help them run their businesses.

Area of operation Members of the Chamber of Commerce and Industry – Johannesburg (JCCI) are drawn from every sector of the economy and range from independent entrepreneurs to large corporates. The head office of the JCCI is in Milpark, Johannesburg, but it also has a branch office in Midrand (Gallagher Estate) to assist members in that area with certification of export documents and also a committee focusing specifically on the Sandton/Midrand region.

Mission statement

• Credit service – reduces potential bad

debt risk by accessing reports compiled by a leading supplier of corporate credit information, at volume discount rates. • Assistance with both pre-employment screening and checks of current employees (in conjunction with an external service provider). • Pension fund available to member companies. • Training opportunities – a variety of workshops and training programmes are on offer. • Certification of export documentation. • BEE verification services.

‘We speak for business in our region, honestly, Membership fees fearlessly, and with authority. We provide mem- Annual subscription rates are based on the bers with meaningful business intelligence, total number of people in the organisation. opportunities for growth, and links to local and Key facts and figures international partners, suppliers and markets.’ Year established: 1890 Services to members No of staff: 30 JCCI offers a variety of services to meet the diverse needs of its members. Some of its Contact details services are as follows: • Provision of business information (on mat- Key contact people: ters relating to international trade, sourcing Keith Brebnor, Chief Executive Officer of raw materials and products, human Joan Warburton-McBride, Membership resource policies and business legislation, Nada Reyneke, International Trade for example). • Advocacy – as an impartial third-party, the Tel: +27 11 726 5300 Fax: +27 11 482 2000 Chamber lobbies various levels of govern- Email: info@jcci.co.za ment to promote and protect the interests Physical address: 6th Floor, JCC House, of business. 27 Owl Street, Milpark • Payroll service for smaller companies that Postal address: Private Bag 34, provides computerised payslips, IRP5 cer- Auckland Park 2006 tificates, leave records and statutory reports. Website: www.jcci.co.za

127

Gauteng companies 2013

GautenG enterprise propeller our vision Africa’s leading development and support agency

enterprise business

our mission To enable entrepreneurs

our Goal To facilitate i n c re a s e d participation of SMMEs in the mainstream economy, and their contribution to economic growth, development and employment in Gauteng.

mandate To promote, foster and develop small enterprises in Gauteng thereby implementing the policy of the Gauteng Provincial Government for small enterprise development. This includes the design and implementation of small enterprise development support programmes within Gauteng, strengthening their capacity to compete successfully domestically and internationally; promoting a support network in order to increase the contribution of small enterprises to the economy, which will in turn contribute to economic growth, job creation and equity.

about GautenG enterprise propeller Gauteng Enterprise Propeller (GEP) is a provincial government agency established in 2005 under the auspices of the Gauteng Department of Economic Development to provide financial, non-financial support and co-ordinate stakeholders for the benefit of Small Medium and Micro Entrepreneurs (SMMEs) in Gauteng. The Provincial Government’s decision to establish GEP as an agency that will support the establishment, growth and sustainability of SMMEs in the Province was informed by the key provincial strategic objective for the 2009-2014 (MTSF) Medium Term Strategic Framework: Creating decent work and building a growing, inclusive economy.

GEP derives its strategic direction from the provincial economic development strategy, the Gauteng Employment Growth and Development Strategy (GEGDS). The strategy has five key pillars and dynamic drivers and GEP objectives are informed by Strategic Pillar 2 & 3.

GeGds strateGic pillars Pillar 1: Transforming the Provincial Economy through Improved Efficiency

Pillar 2: Sustainable Employment Creation

Pillar 3: Economic Ownership and Equity

Pillar 4: Investing in People

Pillar 5:

Sustainable community and social cohesion

Gep’s strateGic priorities Provision of efficient and timely financial support to SMMEs towards facilitating their development Provision of efficient and timely business development support to SMMEs towards increasing their professionalism and sustainability Contribute to the creation of an enabling environment for SMMEs growth and sustainability Identify business opportunities and enhance business facilitation and business partnerships for, and between SMMEs Facilitate increased SMME participation, including of women, youth and people with disabilities, in the Province’s economic growth sectors and GPG’s priority socio-economic development projects Ensure effective and efficient management of GEP

GautenG enterprise propeller the drive behind small business success

GEP provides support to SMMEs, cooperatives and small scale farmers that are keen to grow their businesses. Our SMME support programmes are available to entrepreneurs in Gauteng, with more focus given to Women, Youth and People with disabilities owned businesses.

Gep support proGrammes and interventions include: Financial support:

maFisa:

Provision of business loans in Start-up finance, Growth Finance, Franchise Finance, Contract Finance and Micro Finance.

Micro Agricultural Finance Institution of South Africa (MAFISA) is a partnership fund programme between GEP and the Gauteng Department of Agriculture to provide finance to viable businesses operating in the farming and agricultural industry.

non-Financial support: Provision of support programmes to help entrepreneurs manage and market their businesses efficiently. Business interventions provided includes Technical, Marketing, Planning, Legal and Financial management interventions.

cooperatives assistance proGramme (cap): Provision of business support to Cooperatives in Gauteng through various specialised interventions.

Moulding Entrepreneurs

head oFFice 6th Floor, 124 Main Street, Marshalltown, Johannesburg, Telephone: 011 085 2001, Fax: 011 388 4010, Website: www.gep.co.za

PROFILE

National Empowerment Fund The NEF promotes black economic participation.

Mandate • commercial viability of the business Established by the National Empowerment • specific product criteria Fund Act No 105 of 1998, the NEF is a driver • job creation and a thought-leader in promoting and facili- • geographic location of the business (rural/ tating black economic participation through urban/disadvantaged areas) the provision of financial and non-financial support to black-empowered businesses. Contact details It also promotes a culture of savings and investment among black people. Gauteng Province (head office) Call centre: 0861 843 633 Implementation Email: applications@nefcorp.co.za (funding) Asset management or info@nefcorp.co.za (general enquiries) By structuring accessible retail savings products for black people through its Asset Eastern Cape Province Management Division, the NEF aims to foster Tel: 0861 633 327 a culture of savings and investment among Email: easterncape@nefcorp.co.za its beneficiaries. Free State Province Fund management Tel: 0861 633 377 The NEF seeks to support the pillars of black Email: freestate@nefcorp.co.za enterprise by providing finance and nonfinancial solutions across a range of sectors KwaZulu-Natal Province through its Fund Management division. Tel: 0861 633 596 Email: kzn@nefcorp.co.za Strategic Projects Fund

The NEF is a leader in venture-capital finance, which allows entrepreneurs to participate in projects that are at an early stage. The fund also provides project finance and private equity in these projects once they are regarded as bankable.

Funding criteria Each application for funding is assessed in terms of the following criteria: • minimum percentage of black ownership or interest • black women empowerment • black managerial and operational involvement Gauteng companies 2013

Limpopo Province Tel: 0861 633 546 Email: limpopo@nefcorp.co.za Mpumalanga Province Tel: 0861 633 678 Email: mpumalanga@nefcorp.co.za Western Cape Province Tel: 0861 633 927 Email: westerncape@nefcorp.co.za North West and Northern Cape provincial offices to open soon.

130

At last I have found a funder with a soul

And so can you with the NEF As an agency of the dti mandated to grow black economic participation, the NEF provides funding ranging from R250 000 to R75 million to black-empowered enterprises for start-up, expansion and equity acquisition purposes. The NEF is unique and believes in the right of black business to exist, and to succeed. That is why we offer free mentorship and we are not afraid to invest where

commercial banks would shy away from. The NEF will make your dreams come true, like we have done for the hundreds of black entrepreneurs who have benefited from the R3,7 billion that we have approved for BB-BEE businesses to date. Over 29 000 decent jobs have been supported as a result. The NEF, making the dreams of black business a reality.

If you are a black South African and have a business idea that needs funding, please call 0861 843 633 (THE NEF) or go to www.nefcorp.co.za, www.nefbusinessplanner.co.za.

OVERVIEW

Call centres and business process outsourcing Incentives make call centres very attractive to investors.

B

usiness process outsourcing (BPO) contributed R1.7-billion Sector Highlights to South Africa’s economy in 2010. This is according South Africa is attracting to the national agency promoting the sector in South British companies that had Africa, Business Processing enabling South Africa (BPeSA). previously outsourced callA major reason for the tremendous growth of this sector centre operations to India. is the package of incentive schemes offered by the National Department of Trade and Industry (dti). Under this scheme, • The province’s sector should grow at between every 50 jobs created between 2011 and 2014 will attract 9% and 14% in the about R112 000 in state subsidy. period to 2014. Nineteen projects were approved in 2011 at a cost of • Wipro has opened a call R175-million, and with expectations that approximately 14 309 centre in Johannesburg. jobs will be created. BPeSA predicts that the sector will continue to grow in the province at between 9% and 14% in the period to 2014. major companies About 54% of South Africa’s overseas business is with UK call • CCN centres. A trend among British firms to move away from locating • Aegis their call centres in India could work in South Africa’s favour. • Joburg Connect Santander, a large UK bank, announced in 2011 that it was • BPeSA moving its call-centre operations back to Britain. IT company • Conexus Wipro opened a 1 000-seat centre in Johannesburg in the same year. South Africa will be positioning itself as an alterna- • Inovo • Wipro tive, especially as there is no time difference and given South Africa’s historical ties with Britain. Customer service is the most significant sector in the earmarked for the developdomestic call-centre industry. Billing and account-handling is ment of ICT firms (including the second-largest area of work, followed by technical support, call centres) and offers rentals, telemarketing and telesales, and reservations. utilities and services at subsiGauteng is home to more than 70% of the country’s call dised costs. The Nasrec Smart centres, and the sector is growing all the time. The province has City complex, a 2010 Soccer high volumes of vacant prime office space in peri-urban areas, World Cup legacy project, has and Johannesburg’s Urban Development Zone (UDZ) has been secured a call-centre investor. Pretoria is expected to be the next big growth area. Online resources Business Process enabling South Africa (BPeSA): www.bpesa.org.za Gauteng Department of Economic Development: www.ecodev.gpg.gov.za

Gauteng companies 2013

132

OVERVIEW

Education and training Gauteng is building schools to tackle historical backlogs.

photo: anglo american

M

ore than 2.5 million learners and students attend classes in 3 374 schools, colleges and universities in Gauteng. While the province has a reputation for nurturing outstanding research in a variety of fields, and hosts some of the top business schools in the country, the school environment still needs major interventions to address historical backlogs. A joint effort by the Gauteng Department of Education (GDE), the Development Bank of Southern Africa (DBSA) and the Gauteng Funding Agency (an agency of the provincial Finance Department) aims to build 79 new schools and rehabilitate about 300 existing schools. The project, Gauteng Schools Programme, aims to provide proper facilities for the province’s learners and teachers. A farming community in the West Rand will receive a R120-million boarding school, thus cutting out the 5km walk that learners were previously expected to make to school. In constructing the Olivenhoutbosch Primary School, the Gauteng Department of Infrastructure Development used an alternative construction method, allowing the school to be built more quickly than usual and in a more environmentally friendly way. Wall panels are constructed off-site and then added to a steel frame. The GED’s R25.9-billion budget for 2012/13 includes more than R1-billion for teacher training and half-a-billion for school

133

Sector Highlights The private school sector is mushrooming. • The Aviation Training Academy of South Africa won an international award in 2012. • Three of South Africa’s top five business schools are in Gauteng.

major companies

• Gordon Institute of Business Science

• Graduate School of • • • •

Business Leadership, Unisa Wits Business School Leap Science and Maths Schools ADvTECH Curro Holdings Gauteng companies 2013

OVERVIEW

Gauteng companies 2013

The Unisa headquarters in Pretoria. three such schools that are already in operation is in Gauteng, the Meridian College Pretoria in Koedoespoort. The Leap Science and Maths Schools are different in that free education is provided to talented children from townships. The schools are funded by corporate sponsorship and the support of educational trusts. Rather than build expensive facilities, the first Leap (serving Langa township in Cape Town) began partnering with Bishops for the use of science laboratories. Leap pupils attend classes from 8am to 5pm. There are six Leap schools in South Africa. In Gauteng, Leap Ga-Rankuwa is the latest addition to the Leap family. Leap Alexandra is partnered with Redhill High School in Sandton, while Leap Diepsloot is paired with Dainfern College and has the corporate backing of the Aveng Group. Other corporate supporters include Foord, Old Mutual, BoE, Rand Merchant Bank and the Shuttleworth Foundation.

Training The Accelerated Artisans Training Programme of the GDE is one of many interventions to improve skills levels across the province. The automotive sector in Gauteng has undertaken to train 2 500 young people, an initiative that will create 700 jobs. A

134

photo: JP de kock/PANORAMIO

feeding programmes. More than 800 000 pupils receive a free meal at school every day. More and more South African children are being educated in private schools. And these are not limited to the children of the middle or upper classes; this trend towards private tuition is also growing in lower-income communities. There were 44% more private schools in South Africa in 2010 than there were in 2001. This is according to a report by the South African Institute of Race Relations (SAIRR). Among the companies in this sector is JSE-listed ADvTECH, which has Abbotts College, Rosebank College and Varsity College among its brands. The company spent R136-million in 2012 on new campuses in Midrand and Auckland Park, and announced plans to look for continued growth in the future. Curro Holdings is also listed on the JSE and started out as provider of private schooling to well-resourced families. By March 2012, Curro was running 12 schools across South Africa with plans to roll out many more in that segment, but a plan was announced in that month to take the concept to working-class families. 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. One of the

OVERVIEW select group of 100 young people will receive auto training in Dubai, and this programme will run from 2012 to 2014. Eskom’s Welding School of Excellence in Midrand has set a target of training 700 welders between 2012 and 2019. The Minister of Public Enterprises, Malusi Gigaba, estimates that the country is short of about 58 000 artisans in various fields. Eskom spends about R1.3-billion in training every year. The first group of watchmakers started training to make watches at the University of Johannesburg in 2011. A provincial initiative to boost the number of tool-makers will see 250 skilled artisans qualify in 2014. This is a joint programme of the Gauteng Provincial Government, the National Tooling Association of South Africa, the National Department of Trade and Industry and the Gauteng City Region Academy. Aviation skills are important in a province that has as many airports as Gauteng does. In 2012, the Aviation Training Academy of South Africa received an international award for excellence. The International Air Transport Association (IATA) elected the Kempton Park-based academy as ‘Top Regional Training Partner.’ Comair’s Training Centre at OR Tambo International Airport also received good news in 2012: airline manufacturer ATR announced that it was going to open its first training centre in Africa at the same venue.

Tertiary Well-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. Three of South Africa’s top five business schools are located in Gauteng Province: the Wits Business School, the University of South Africa’s (Unisa) Graduate School of Business Leadership and the Gordon Institute of Business Science, on the Sandton campus of the University of Pretoria.

Online resources Association for the Development of Education in Africa: www.adeanet.org 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

135

About 80% of the 1 230 lecturers and researchers at the University of the Witwatersrand (Wits) have postgraduate degrees, and 16 A-rated scientists work there. Wits was ranked in the top 1% of world institutions in seven fields of research in 2007, and aims to be in the top 100 of international universities by the time of its 100th birthday in 2022. The university offers studies in more than 40 schools in five faculties. Wits is in the middle of a R1.2-billion building programme. The spectacular new Wits Arts Museum in Braamfontein was unveiled in 2012. Unisa, which has its headquarters in Pretoria, has almost a quarter of a million students. The University of Pretoria is one of the county’s premier universities. Among the wide variety of faculties, one of the most famous is that of veterinary science, which is located at Onderstepoort. 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. VUT’s Goldfields Library has recently been renovated.

Gauteng companies 2013

focus

Contributing to skills development Tshwane North College offers programmes that specifically address the skills shortage in South Africa.

T

shwane North College (TNC) for further education and training (FET) is a public FET college that comprises the following six campuses: Pretoria, Soshanguve South, Soshanguve North, Mamelodi, Temba and Rosslyn.

Courses offered In order to assist in alleviating skills shortages in South Africa, TNC is offering National Certificate (Vocational) programmes NQF Levels 2-4 in Engineering Studies. These include: • Information Technology and Computer Science • Engineering and Related Design • Electrical Infrastructure Construction • Civil Engineering and Building Construction It also offers NQF Levels 2-4 in Business Studies programmes such as: • Office Administration • Marketing Management • Finance, Economics and Accounting • Management In Utility and Social Studies, the College offers the following programmes: • Safety in society • Hospitality and Tourism TNC furthermore offers N4 to N6 courses in: • Financial Management • Marketing Management • Human Resource Management • Clothing Production and Management Assistant • Hospitality and Tourism

Gauteng companies 2013

The following N1 to N6 Engineering Studies courses are being offered: • Civil Engineering • Electrical Engineering • Mechanical Engineering Some of the skills-related courses that are offered are: • Bakery and Confectionery Baking • Hairdressing • Cosmetology/Beauty Therapy • Junior and Senior Certified Bookkeeper There are bursaries available but terms and conditions apply. Bursaries are only available for NQF 2-4 programmes and N1 to N6 courses, but not for skills courses.

Annual enrolments In 2010, 12 832 students had been enrolled, but the college enrolls approximately 10 000 students annually. Visit www.tnc4fet.co.za for more information.

136

focus

A beacon of success Former Tshwane North College student Lebogang Mahlangu knows that the key to success is hard work and determination.

L

ebogang Mahlangu is perseverance personified. She is living proof that achieving your goals is not always smooth sailing. More often than not, those who history best remembers were faced with numerous obstacles that forced them to work harder and show more determination than others. And as the Japanese say, ‘Fall down seven times, stand up eight’.

Journey to success Lebogang completed her National Certificate in Marketing Management at Tshwane North College in 2005, and was also nominated in the top five for Miss Pretoria College. In 2004, while still enrolled with Tshwane North College, she was appointed as a sales and marketing consultant at Absa Bank. She had to juggle classes and work obligations requiring more than 50 hours a week away from home. And there were times when she was truly overwhelmed and tempted to quit college. However, her steadfast subscription to the principle that ‘winners are not quitters’ fuelled her to go the extra mile.

Lebogang Mahlangu

Achievements

In 2005, Lebogang was awarded a certificate by Absa Retail for ‘Most Dedicated Sales Consultant’. In 2007, she was promoted to a Business Development Consultant for Absa Home Loans and was later recognised and awarded ‘Best Supporter for 2009’ by Absa external business partners Mortgage Alliance A solid foundation and Mortgage Max group. Tshwane North College laid a firm foundation With seven impressive years of progressive upon which her success story is built. After experience in business development, she was completing her course, her horizons broad- appointed as one of the youngest business ened and she started moving up the corporate development managers at Absa Home Loans, ladder. Being a lifelong learner, she went fur- a position she holds to this day. ther to study Strategic Management at Milpark. In 2011, Lebogang travelled to Nairobi, Kenya, where she completed her Senior Certificate in Housing Asset Finance at the Kenya School of Monetary Studies.

137

Gauteng companies 2013

PROFILE

Ekurhuleni Business Development Academy The academy offers training of the highest quality and standard within the engineering trade.

The Ekurhuleni Business Development Academy (EBDA) is a unique training and small business development initiative that offers accredited and non-accredited qualifications in all engineering trades, metallurgy and minerals processing, safety, health and environment, generic management and adult basic education and training (ABET) up to NQF Level 1. EBDA has also recently been accredited as an FET College under the auspices of Ergo Mining (Pty) Ltd. In association with Westcol, EBDA now offers the Nated (N) subjects that are a prerequisite to write a trade test in South Africa. A Maths and Science Centre of Excellence has been set up offering maths and science upgrades up to N3 level, and extensive work is being done among the schools in the local communities to assist both students and educators with problematic areas of the curriculum. A nine-month-long New Venture Creation learnership is offered to suitable and stringently selected candidates, coupled with a two-year business incubation programme to provide the much-needed support and guidance.

• • • • •

Electrical Fabrication (boilermaking, plating and welding) Fitting and machining Millwright Rigging and ropesmen

Motor mechanics

• Diesel mechanics • Petrol mechanics FET college

• N1-N2 in all engineering trades • N1-N3 in mathematics and engineering science

Other

• New venture creation • Construction skills (bricklaying, plastering, carpentry, plumbing, tiling and painting)

• Health and safety training • Metallurgy and minerals processing • ABET levels 1-3 and NQF Level 1 Contact details

Key contact people: Piet Pistorius, Academy Manager Megan Duckworth, Marketing and Sales EBDA has also rolled out an Enterprise Club Consultant programme in local community schools. This Danie Havenga, Technical Training programme is aimed at grade 10 learners who Superintendent are exposed to the realities of the employment Tel: +27 11 742 1051/45 world and introduced to the concept of self- Fax: +27 11 742 1018 employment and entrepreneurship. Email: info@ebda.co.za Physical address: Vlakfontein Road, Brakpan Educational offerings Postal address: PO Box 12442, Selcourt Engineering Springs 1567 Modular and unit-standard learnerships at all Website: www.ebda.co.za NQF levels: Gauteng companies 2013

138

PROFILE

Ekurhuleni East College Ekurhuleni East College is committed to excellence.

Ekurhuleni East College for further education and training (FET) is an accredited public provider of education, training and development. It has campuses at the following locations: Benoni, Brakpan, Daveyton, Kwa-Thema and Springs.

Living the vision Ekurhuleni East College is living out its vision of being a world-class FET institution, where people are empowered with relevant knowledge and skills, preparing them for the labour market and self-employment. The college does this by providing practical and career-related education and training with a wide range of career options in: • Information and communication technology • Engineering • Business • Hospitality and tourism services • Call-centre training The college provides programmes that respond to the human resources, economic and developmental needs for intermediate to high-level skills and knowledge, and in so doing, attempts to alleviate the skills shortage in South Africa and increase the pool of skilled people.

Programmes National Certificate Vocational (NCV)

The college offers programmes that are linked to specific occupations.

Report 191 programmes (Nated) The college provides N programmes from N4 to N6 in the field of marketing management, financial management, business management, human resource management, management assistant, and N1 to N6 on electrical engineering and mechanical engineering.

Call-centre training The college also offers call centre agent training. This is a three-month full-time or sixmonth part-time programme. Learners receive practical call-centre training using relevant call-centre technology. The call centre is also utilised as a one-stop communication centre for the college, and for business process outsourcing.

Occupational skills

The National Certificate (Vocational) is a high- Training programmes standard, skills-focused qualification where Most of these courses are SAQA students with a minimum of a Grade 9 pass aligned. The college offers programmes can make a career choice, and ensure their such as welding, carpentry, plumbing, employability once they have completed building, plastering and computer-based their studies. skills programmes. Gauteng companies 2013

140

PROFILE

Learnerships Ekurhuleni East College exists to enhance and improve education, training and development in the Ekurhuleni Metropolitan area by promoting learnerships, skills programmes (in terms of the Skills Development Act, No 97 of 1998), community development learning programmes, entrepreneurship training and other technical and vocational learning programmes. It therefore exists to ensure government’s mission, to create a better life for all, especially for unemployed youth. Learnership qualifications currently offered: • Fitting and machining NQF level 2 • Automotive repair and maintenance (light vehicle) NQF level 2 • Mechatronics NQF level 2 • Panelbeating NQF level 2 • Building construction NQF level 3 • Home-based care NQF level 2 The college also has accreditation from the following SETAs: • Manufacturing, Engineering and Related Services Sector Education and Training Authority (MERSETA) • Tourism, Hospitality and Sport Sector Education and Training Authority (THETA) • Services Sector Education and Training Authority (Services SETA) • Energy Sector Education and Training Authority (E-SETA) • Wholesale and Retail Sector Education and Training Authority (W&R SETA) • Construction Education and Training Authority (CETA)

Financial support Financial assistance in the form of a bursary is awarded based on the result of the means test that is conducted according to guidelines set by the Department of Higher Education and Training.

Support services

Entrepreneurship training is offered.

• Counselling • Career guidance • Academic support • Fully equipped students’ resource centres Ekurhuleni East College also has a voluntary counselling and testing centre for HIV and Aids. The Right to Care Group is running this initiative through USAID funding. The Youth Development Centre (YDU) is a walk-in centre where trained personnel provide information about jobs, starting a business and career guidance to out-of-school youth. The college also provides outreach services to communities who are unable to access the centre.

Contact details Key contact person: Malesedi Maphunye, Senior Manager: Marketing Email: malesedim@eec.edu.za Tel: +27 11 730 6600 
 Extension: 3153 Fax: +27 11 736 1489 Email: info@eec.edu.za Physical address: Sam Ngema Rd, Kwa-Thema, Springs
 Website: www.eec.edu.za

Student support services offered by the college include: • Life skills training

141

Gauteng companies 2013

PROFILE

Western College Western College is a leader in the further education and training field, and offers a diverse range of programmes.

Western College has campuses located in Randfontein, Krugersdorp, Krugersdorp-West, Carletonville, Thuba Makote (Magaliesburg)
and Amandelbult.

Benefits of FET As public FET college students, learners will gain integrated theoretical knowledge and practical experience, exposure to their chosen industry and a meaningful qualification as part of an affordable education, something to which all South Africans have a right. This holds true for learners just starting their career-focused education and adults of any age interested in additional training in a career already being pursued, or even those interested in a complete career change. A public FET college programme helps learners master the skills they need to build their futures.

Programmes National Certificates N4 to N6 – grade 12 entry requirement

• Business management • Marketing management • Financial management • Human resources management • Management assistant • Educare • Legal secretary • Tourism • Public relations

National Certificate Vocational (NCV) – grade 9 to 12 entry requirement

• Marketing • Office administration • Finance, economics and accounting Engineering studies – N1 to N6 • Information technology and computer science • National Certificate: N1-N3 • Primary agriculture • National Certificate: N4-N6 • Engineering and related design • National Certificate: N1-N3 (Mining) • Electrical infrastructure construction • National Certificate: Multi-Disciplinary • Tourism Drawing Office Practice (MDOP) • Hospitality Gauteng companies 2013

142

PROFILE

The college provides students with integrated theoretical knowledge and practical experience.

Hairdressing – accredited by the Services SETA • Leadership development • National Certificate in Hairdressing: NQF • Counselling levels 2 to 4 • Student development • Parental involvement Chefs training – internationally accredited • Student orientation by City and Guilds

• Certificate/Diploma in Culinary Arts and

Food Preparation • Advanced Diploma in Culinary Arts and Food Preparation

Skills development centre learnerships and short courses

• National Introductory Certificate: N4 Business Studies

Student support services Entry support

• Career guidance • Placement • Registrations • Bursaries • Student conduct Personal support

• Student health and well-being

Academic support

• Study methods • Practical experience Contact details Telephone numbers: Corporate Office
+27 11 692 4004
 Amandelbult
+27 14 7841407
 Carletonville
+27 18 787 4102 Krugersdorp
+27 11 953 1140
 Krugersdorp-West
+27 11 660 1709 Randfontein
+27 11 693 3608/9
 Thuba Makote
+27 14 577 2671
 Fax: +27 11 692 2880 Email: info@westcol.co.za Address: 42 Johnstone Street, Randfontein Website: www.westcol.co.za

143

Gauteng companies 2013

listings

Business organisations These chambers of commerce and industry are a helpful first port of call for anyone wishing to do business in Gauteng.

Benoni Chamber of Commerce and Industry

Heidelberg Chamber of Business

Physical address: 74 Cranbourne Street, Benoni 1501 Postal address: PO Box 1281, Benoni 1500 Tel: +27 11 421 8627 Fax: +27 11 421 8627 Email: info@benonicci.co.za Website: www.benonicci.co.za

East Rand Chamber of Commerce and Industry Physical address: 2 Station Road, Nigel 1491 Tel: +27 11 814 7110 Fax: +27 11 814 4335 Email: nadia@chamberlink.co.za Website: www.chamberlink.co.za

Postal address: PO Box 111, Heidelberg 1438 Tel: +27 16 349 6927/341 6329 Fax: 086 611 8303 (SA only) Email: vdmarch@lantic.net Website: www.heidelberggauteng.co.za

Johannesburg Chamber of Commerce and Industry Physical address: 6th Floor, JCC House, 27 Owl Street, cnr Empire Road, Milpark 2092 Postal address: Private Bag 34, Auckland Park 2006 Tel: +27 11 726 5300 Fax: +27 11 482 2000 Email: info@jcci.co.za Website: www.jcci.co.za

Ekurhuleni North Chamber of Commerce and Industry (Edenvale/Kyalami)

Midrand Chamber of Commerce and Industry

Physical address: 1st Floor, Sunrise Centre, cnr Van Riebeek and Hendrik Potgieter streets, Edenvale 1609 Postal address: PO Box 94, Edenvale 1610 Tel: +27 11 452 2435 Fax: +27 11 452 1869 Email: manager@encci.org Website: www.encci.org

Physical address: 2nd Level, Gallagher House, Gallagher Convention Centre, Richards Drive, Midrand 1682 Postal address: PO Box 1753, Halfway House 1685 Tel: +27 11 315 1063 Fax: 086 615 7663 (SA) Email: marketing@midrandchamber.co.za Website: www.jcci.co.za

Greater Boksburg Chamber of Commerce and Industry

Randburg Chamber of Commerce and Industry

Physical address: 236 Rondebult Way, Libradene, Boksburg 1459 Postal address: PO Box 133, Boksburg 1460 Tel: +27 11 892 0222 Fax: 086 756 3641 (SA only) Email: admin@gbcci.co.za Website: www.gbcci.co.za

Physical address: Unit G8, Atrium Terrace, 272 Oak Avenue, Randburg 2194 Postal address: PO Box 363, Randburg 2125 Tel: 086 101 9218 (SA only) Fax: 086 212 4407 (SA only) Email: rcci@rcci.co.za Website: www.rcci.co.za

Gauteng companies 2013

144

listings

Roodepoort Chamber of Commerce and Industry

Tshwane Chamber of Commerce and Industry

Physical address: Constantia Corner Office Park, cnr Christiaan De Wet and Ontdekkers streets, Florida Park 1709 Postal address: PO Box 5579, Weltevreden Park 1715 Tel: 086 111 3304 (SA only) Fax: +27 11 472 9544 Email: rocci@rocci.org or ladyrocci@rocci.org Website: www.rocci.org

Physical address: 852 Park Street, cnr Eastwood and Park streets, Eastwood Entrance, Arcadia 0083 Postal address: PO Box 40653, Arcadia 0007 Tel: +27 12 342 3236 Fax: +27 12 342 1486 Email: info.tcci@mweb.co.za Website: www.ptachamber.co.za

South of Joburg Business and Tourism Forum (SOJO) Physical address: 37 Koster Street, Booysens 2091 Postal address: PO Box 38384, Booysens 2016 Tel: +27 11 493 7880 Fax: +27 11 493 1702 or 086 636 182 (SA) Email: info@sojo.co.za Website: www.sojo.co.za

145

Gauteng companies 2013

listings

South African National Government An overview of South Africa’s national government departments.

S

outh Africa is a constitutional democracy with a three-tier system of government and an independent judiciary. The three tiers of government – national, provincial and local – all have legislative and executive authority in their own spheres, and are defined in the Constitution as ‘distinctive, interdependent and interrelated’. Legislative authority is vested in parliament, which is situated in Cape Town and consists of two houses, the National Assembly and the National Council of Provinces. Parliament is bound by the Constitution and must act within its limits.

The president, elected by the National Assembly from among its members, is the executive head of state and leads the cabinet. The president may not serve more than two five-year terms in office. The cabinet consists of the president, the deputy president and ministers. State institutions created to support constitutional democracy are the Public Protector; the Human Rights Commission; the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities; the Commission for Gender Equality; the Auditor-General and the Electoral Commission.

The Presidency

Performance, Monitoring and Evaluation in the Presidency Minister: Collins Chabane Physical address: Room 116, 2nd Floor, West Wing, Union Buildings, Government Avenue, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5331/4 Fax: +27 12 321 8870 Email: abednigo@po.gov.za Website: www.thepresidency.gov.za

President: Jacob Gedleyihlekisa Zuma

Deputy President: Kgalema Motlanthe

National Government Departments

Departments in the Presidency National Planning Commission Minister: Trevor Andrew Manuel Physical address: Room 242, 2nd Floor, East Wing, Union Buildings, Government Avenue, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5200 Fax: +27 12 300 5795 Email: patti@po.gov.za Website: www.thepresidency.gov.za Gauteng companies 2013

Dept of Agriculture, Forestry and Fisheries Minister: Tina Joemat-Pettersson Physical address: 1st Floor, Block DA, 20 Agriculture Place, cnr Steve Biko Street and Soutpansberg Road, Arcadia, Pretoria Postal address: Private Bag X250, Pretoria 0001 Tel: +27 12 319 7319 Fax: +27 12 321 8558 Email: ronikar@daff.gov.za Website: www.daff.gov.za

146

listings Department of Arts and Culture Minister: Paul Mashatile Physical address: 10th Floor, Kingsley Centre, 481 Church street, cnr Steve Biko and Pretorius streets, Arcadia, Pretoria 0001 Postal address: Private Bag X899, Pretoria 0001 Tel: +27 12 441 3006 Fax: +27 12 440 4485 Email: minister@dac.gov.za Website: www.dac.gov.za

Department of Correctional Services Minister: Sibusiso Ndebele Physical address: 123 Poyntons Building, West Block, cnr Schubart and Church streets, Pretoria 0001 Postal address: Private Bag X136, Pretoria 0001 Tel: +27 12 307 2934/2884 Fax: +27 12 323 4111 Email: nomtobeko.tomga@dcs.gov.za Website: www.dcs.gov.za

Department of Basic Education Minister: Matsie Angelina Motshekga Physical address: Sol Plaatjie House, 222 Struben Street, Pretoria 0001 Postal address: Private Bag X895, Pretoria 0001 Tel: +27 12 357 3000 Fax: +27 12 323 5989 Email: mabua.s@dbe.gov.za Website: www.education.gov.za

Department of Defence and Military Veterans Minister: Nosiviwe Mapisa-Nqakula Physical address: 4th Floor, Block 5, Armscor Building, cnr Delmas Avenue and Nossob Street, Erasmuskloof, Pretoria Postal address: Private Bag X427, Pretoria 0001 Tel: +27 12 355 6101 Fax: +27 12 347 0118 Email: def-minister@mweb.co.za Website: www.dod.mil.za

Department of Communications Minister: Dina Pule Physical address: Block 3, Nkululeko House, 33 Iparioli Office Park, 399 Duncan Street, Hatfield, Pretoria 0001 Postal address: Private Bag X860, Pretoria 0001 Tel: +27 12 427 8292 Fax: +27 12 362 6915 Email: moses@doc.gov.za Website: www.doc.gov.za Department of Cooperative Governance and Traditional Affairs Minister: Richard Masenyani Baloyi Physical address: 87 cnr Hamilton and Proes streets, Arcadia, Pretoria 0001 Postal address: Private Bag X804, Pretoria 0001 Tel: +27 12 334 0705 Fax: +27 12 326 4478 Email: charlottem@cogta.gov.za Website: www.cogta.gov.za

Economic Development Department Minister: Ebrahim Patel Physical address: Block A, 3rd Floor, 77 the dti Campus, cnr Meintjies and Esselen streets, Sunnyside, Pretoria Postal address: Private Bag X149, Pretoria 0001 Tel: +27 12 394 1006 Fax: +27 12 394 0255 Email: ministry@economic.gov.za Website: www.economic.gov.za Department of Energy Minister: Elizabeth Dipuo Peters Physical address: Travenna Office Campus, 75 Meintjies and Schoeman streets, Pretoria Postal address: Private Bag X646, Pretoria 0001 Tel: +27 12 444 4265 Fax: +27 12 444 4505 Email: zodwa.batyashe@energy.gov.za Website: www.energy.gov.za

147

Gauteng companies 2013

listings Department of Environmental Affairs Minister: Edna Molewa Physical address: North Tower, Fedsure Forum Building, cnr Pretorius and Lilian Ngonyi streets, Pretoria Postal address: Private Bag X447, Pretoria 001 Tel: +27 12 336 8733 Fax: +27 12 336 7817 Email: raganyag@dwa.gov.za Website: www.environment.gov.za Department of Health Minister: Aaron Motsoaledi Physical address: 20th Floor, Civitas Building, cnr Struben and Andries streets, Pretoria Postal address: Private Bag X399, Pretoria 0001 Tel: +27 12 395 8085/81 Fax: +27 12 395 9165 Email: hlakun@health.gov.za Website: www.doh.gov.za Department of Higher Education and Training Minister: Blade Nzimande Physical address: Sol Plaatje House, 123 Schoeman Street, Pretoria Postal address: Private Bag X893, Pretoria 0001 Tel: +27 12 312 5555 Fax: +27 12 323 5618 Email: makwetu.n@dhet.gov.za Website: www.dhet.gov.za Department of Home Affairs Minister: Nkosazana Clarice Dlamini Zuma Physical address: FSI Building, 909 Arcadia Street, Hatfield, Pretoria Postal address: Private Bag X741, Pretoria 0001 Tel: +27 12 432 6648 Fax: +27 12 810 7312 Email: thembakazi.balfour@dha.gov.za Website: www.home-affairs.gov.za Gauteng companies 2013

Department of Human Settlements Minister: Tokyo Sexwale Physical address: Govan Mbeki House, 240 Walker Street, Sunnyside, Pretoria Postal address: Private Bag X644, Pretoria 0001 Tel: +27 12 421 1310 Fax: +27 12 341 8513 Email: ntsiki@dhs.gov.za Website: www.dhs.gov.za Department of International Relations and Cooperation Minister: Maite Nkoane Mashabane Physical address: OR Tambo Building, 460 Soutpansberg Road, Rietondale, Pretoria Postal address: Private Bag X152, Pretoria 0001 Tel: +27 12 351 0431 Fax: +27 12 323 1502 Email: minister@dirco.gov.za Website: www.dirco.gov.za Department of Justice and Constitutional Development Minister: Jeffrey Thamsanqa Radebe Physical address: Salu Building, 28th Floor, cnr Thabo Sehume and Francis Board streets, Pretoria 0001 Postal address: Private Bag X276, Pretoria 0001 Tel: +27 12 406 4669 Fax: +27 12 315 1749 Email: ministry@justice.gov.za Website: www.justice.gov.za Department of Labour Minister: Mildred Oliphant Physical address: 215 Laboria House, cnr Schoeman and Paul Kruger streets, Pretoria Postal address: Private Bag X117, Pretoria 0001 Tel: +27 12 392 9620 Fax: +27 12 320 1942 Email: pamella.salusalu@labour.gov.za Website: www.labour.gov.za

148

listings Department of Mineral Resources Minister: Susan Shabangu Physical address: 4th Floor, Block 2C, Trevenna Campus, Cnr Meintjies and Schoeman streets, Sunnyside Postal address: Private Bag X59, Pretoria 0001 Tel: +27 12 444 3999 Fax: +27 12 444 3145 Email: lerato.maibelo@dmr.gov.za Website: www.dmr.gov.za

Department of Public Works Minister: Thembelani (Thulas) Nxesi Physical address: 6th Floor, AVN Building, cnr Skinner and Andries streets, Pretoria Postal address: Private Bag X229, Pretoria 0001 Tel: +27 12 406 1967 Fax: +27 12 310 5182 Email: nambini.ngubo@dpw.gov.za Website: www.publicworks.gov.za

Department of Police Minister: Nathi Mthethwa Physical address: Wachthuis Building, 7th Floor, 231 Pretorius Street, Pretoria Postal address: Private Bag X463, Pretoria 0001 Tel: +27 12 393 2800 Fax: +27 12 393 2819 Email: mashegoameliah@saps.gov.za Website: www.saps.gov.za

Department of Rural Development and Land Reform Minister: Gugile Nkwinti Physical address: 3rd Floor, Old Building, 184 Jacob Mare and Paul Kruger streets, Pretoria Postal address: Private Bag X833, Pretoria 0001 Tel: +27 12 312 8911 Fax: +27 12 323 3306 Email: nnotshe@ruraldevelopment.gov.za Website: www.ruraldevelopment.gov.za

Department of Public Enterprises Minister: Malusi Gigaba Physical address: Suite 401, 1090 Infotech Building, Arcadia Street, Hatfield, Pretoria Postal address: Private Bag X15, Hatfield 0028 Tel: +27 12 431 1098 Fax: +27 12 431 1039 Email: mashige@dpe.gov.za Website: www.dpe.gov.za Department of Public Service and Administration Minister: Lindiwe Sisulu Physical address: Batho Pele House, 116 Proes Street, Pretoria Postal address: Private Bag X916, Pretoria 0001 Tel: +27 12 336 1063 Fax: +27 12 326 7802 Email: ester@dpsa.gov.za Website: www.dpsa.gov.za

Department of Science and Technology Minister: Grace Naledi Mandisa Pandor Physical address: 3rd Floor, Building No 53, CSIR Campus, Meiring Naude Road, Brummeria, Pretoria Postal address: Private Bag X727, Pretoria 0001 Tel: +27 12 843 6798 Fax: +27 12 349 1041/8 Email: carmen.h@dst.gov.za Website: www.dst.gov.za Department of Social Development Minister: Bathabile Olive Dlamini Physical address: HSRC Building, North Wing, 134 Pretorius Street, Pretoria Postal address: Private Bag X901, Pretoria 0001 Tel: +27 12 312 7479 Fax: +27 12 321 2502 Website: www.dsd.gov.za

149

Gauteng companies 2013

listings Department of State Security Minister: Siyabonga Cyprian Cwele Physical address: Bogare Building, 2 Atterbury Road, Menlyn, Pretoria Postal address: PO Box 1037, Menlyn 0077 Tel: +27 12 367 0700/57/91 Fax: +27 12 367 0749 Website: www.nia.dov.za

Department of Transport Minister: Benedict Martins Physical address: Room 4111, Forum Building, cnr Struben and Bosman streets, Pretoria Postal address: Private Bag X193, Pretoria 0001 Tel: +27 12 309 3860 Fax: +27 12 328 3194 Email: mdletshes@dot.gov.za Website: www.transport.gov.za

Department of Sport and Recreation South Africa Minister: Fikile Mbalula Physical address: Regent Building, cnr Queen and Vermeulen streets, Pretoria Postal address: Private Bag X896, Pretoria 0001 Tel: +27 12 304 5000 Fax: +27 12 323 0795 Website: www.srsa.gov.za

Department of Water Affairs Minister: Edna Molewa Physical address: 1035 Sedibeng Building, 185 Schoeman street, Pretoria 0001 Postal address: Private Bag X313, Pretoria 0001 Tel: +27 12 336 8733 Fax: +27 12 336 7817 Email: raganyag@dwa.gov.za Website: www.dwa.gov.za

Department of Tourism Minister: Marthinus van Schalkwyk Physical address: 10th Floor, North Tower, Fedsure Forum Building, cnr Pretorius and Van Der Walt streets, Pretoria Postal address: Private Bag X424, Pretoria 0001 Tel: +27 12 310 3611 Fax: +27 12 322 0082 Email: mwillemse@tourism.gov.za Website: www.tourism.gov.za

Department of Women, Youth, Children and People with Disabilities Minister: Lulu Xingwana Physical address: 36 Hamilton street, Arcadia, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 359 0011 Fax: 086 676 3390 (SA only) Email: tseleng@po.gov.za Website: thepresidency.gov.za

Department of Trade and Industry Minister: Rob Davies Physical address: Block A, 3rd Floor, the dti Campus, cnr Meintjies and Esselen streets, Sunnyside, Pretoria Postal address: Private Bag X274, Pretoria 0001 Tel: +27 12 394 1568 Fax: +27 12 394 0337 Email: lneethling@thedti.gov.za Website: www.thedti.gov.za Gauteng companies 2013

Government Communication and Information System (GCIS) Physical address: 356 Midtown Building, cnr Sisulu and Madiba streets, Pretoria Postal address: Private Bag X745, Pretoria 0001 Tel: +27 12 314 2127 Fax: +27 12 325 2030 Email: eben@gcis.gov.za Website: www.gcis.gov.za Independent Complaints Directorate (ICD) Physical address: CT Forum Building, 114 Vermeulen Street, Pretoria

150

listings Postal address: Private Bag X941, Pretoria 0001 Tel: +27 12 399 0000 Fax: +27 12 399 0204 Email: gracemohlala@icd.gov.za Website: www.icd.gov.za National Treasury Minister: Pravin Jamnadas Gordhan Physical address: 40 Church Square, Pretoria Postal address: Private Bag X115, Pretoria 0001 Tel: +27 12 315 5372 Fax: +27 12 323 3262 Email: minreg@treasury.gov.za Website: www.treasury.gov.za

Police Civilian Secretariat Physical address: 217 Pretorius Street, Vanerkom Building, Pretoria Postal address: Private Bag X922, Pretoria 0001 Tel: +27 12 393 2520 Fax: +27 12 393 2538 Email: irish.qhobosheanej@saps.og.za or xuban@saps.org.za Website: www.nationalsecretariat.gov.za South African Revenue Service Physical address: Lehae la Sars Building, 299 Bronkhorst Street, New Muckleneuk, Pretoria Postal address: Private Bag X923, Pretoria 0001 Tel: +27 12 317 2000 Fax: +27 10 208 5005 Website: www.sars.gov.za

Public Service Commission Physical address: Commission House, cnr Hamilton and Ziervogel streets, Arcadia, Pretoria Postal address: Private Bag X121, Pretoria 0001 Tel: +27 12 352 1000 Fax: +27 12 325 8382 Email: info@opsc.gov.za Website: www.psc.gov.za

Statistics South Africa Physical address: The De Bruyn Park, 170 Andries Street, Pretoria Postal address: Private Bag X44, Pretoria 0001 Tel: +27 12 310 8911 Fax: +27 12 310 8500 Email: info@statssa.gov.za Website: www.statssa.gov.za

National coat of arms The national coat of arms was adopted on 27 April 2000. It is constructed in two circles, which are described as the circle of foundation and the circle of ascendance. Circle of foundation Shield – The two Khoisan figures on the shield are taken from a Bushman rock painting known as the Linton stone, and represent the common humanity and heritage of South Africans. Depicted in an attitude of greeting, the figures symbolise unity. Spear and knobkierie – Together, these objects symbolise defence and authority, but the flat angle at which they lie symbolises peace. Wheat – The ears of wheat, as emblems of fertility, represent germination, growth and the development of potential, as well as nourishment and agriculture. Elephant tusks – Elephants symbolise wisdom, strength, power, authority, moderation and eternity, and the use of tusks is a tribute to the world’s largest land mammal, Loxodonta Africana, which is found in South Africa. Motto – Taken from the language of the now extinct /Xam Bushmen, the motto translated means ‘people who are different come together’ or ‘diverse people unite’. Circle of ascendance Protea – Protea cynaroides is the national flower of South Africa and is symbolic of the beauty of the country and flowering of the nation’s potential. Secretary bird – Characterised in flight, the secretary bird represents growth and speed, and is a symbol of divine majesty and protection. Rising sun – The sun is an emblem of energy and rebirth, a source of light and life appropriate for a country characterised by sunshine and warmth.

151

Gauteng companies 2013

PROFILE

Department of Labour’s Compensation Fund The Department of Labour’s Compensation Fund is a reputable provider of compensation for occupational injuries and diseases.

Constitutional mandate

Vision

To be an employer of choice and an interThe mandate of the nationally reputable provider of compensaCompensation Fund tion for occupational injuries and diseases, is derived from Sec- rehabilitation and reintegration services. tion 27(1)(c) of the Constitution of the Mission Republic of South • To utilise and leverage automated solutions to provide efficient, quality, client-centric Africa. In terms of and accessible Compensation Fund services this act, all South Africans have a right • To ensure effective rehabilitation and Shadrack Mkhonto, Compensation Fund to social security. The reintegration services, through reputable Commissioner Compensation Fund programmes is then mandated • To ensure financial viability through efficient collections and prudent investments to provide social security to all injured and diseased employees. • To promote job-creation initiatives through socially responsible investments Legislative mandate • To develop and retain a competent and The Compensation Fund is a public entity of the content workforce Department of Labour. The Fund administers the Compensation for Occupational Injuries Values and Diseases Act (130/1993 as amended by • Treating employees with care, dignity and the COIDA 61/1997). The main objective of the respect act is to provide compensation for disablement • Respecting and promoting client-centred caused by occupational injuries, or diseases services, accountability, integrity and sustained or contracted by employees, or for ethical behaviour death resulting from such injuries or diseases, • Learning and development and to provide for matters connected therewith. • The Batho Pele principles • The principles of the department’s The Fund generates its revenue from levies paid service charter by employers, which consist mainly of annual The department inculcates these values assessments paid by registered employers on a through its performance management system. basis of a percentage or fixed rate of the annual earnings of their employees. The Compensa- Description of main services tion for Occupational Injuries and Diseases • Payment of reasonable medical expenses to Act, however, makes provision for a minimum the injured employees assessment to ensure that the assessment is • Payment of Temporary Total Disablement not less than the administration costs incurred. (TTD) for loss of earnings when the employee Gauteng companies 2013

152

PROFILE was not working due to injury sustained on duty • Payment of Permanent Disablement (PD) who sustained up to 30% PD • Payment of monthly pension to the employee more than 30% PD • Payment of monthly pension to widow/ widower and children up to 18 years of age

Compensation for Occupational Injuries and Diseases Act To provide for compensation for disablement caused by occupational injuries or diseases sustained or contracted by employees in the course of their employment, or for death resulting from such injuries or diseases, and to provide for matters connected therewith.

Department of Labour staff with a recipient of the Compensation Fund.

Programmes/projects/initiatives

Application The Compensation for Occupational Injuries and Diseases Act applies to all employers and their casual and full-time workers who, as a result of a workplace accident or workrelated disease: • Are injured, disabled or killed • Become ill This excludes: • Workers who are totally or partially disabled for less than three days • Domestic workers • Anyone receiving military training • Members of: °° The South African National Defence Force °° The South African Police Service °° Any worker guilty of willful misconduct, unless they are seriously disabled or killed °° Anyone employed outside of South Africa for 12 or more continuous months °° Workers working mainly outside of South Africa and only temporarily employed in the country The full act can be read online at: https://www.labour.gov.za All forms required when registering with the fund, and when applying for compensation, can be found online at: https://www.labour.gov.za

The department is embarking on the following projects in order to increase the efficiency of its services: • Decentralisation of services aimed at ensuring that the fund’s services are easily accessible to clients and stakeholders • Restructuring of the fund to ensure that service delivery is improved • Development of the Rehabilitation, Reintegration and Return-to-work Policy for employees who sustained occupational injuries and/or contracted diseases • Proposal to amend the Compensation for Occupational Injuries and Diseases Act (COIDA)

Benefits of registration Employers Employers are protected against civil claims if employees get injured on duty or contract occupational diseases.

Employees Employees who are injured on duty or who contracted occupational diseases can claim compensation for temporary or permanent disablement according to the degree of disablement and death. Reasonable medical aid expenses arising out of an injury on duty are payable for a period

153

Gauteng companies 2013

PROFILE of two years, or longer if further medical treat- from their employer and take it to the doctor ment is needed, and if it will reduce the extent when they go for a visit. After the doctor has of the disability. filled in the form, workers must take it back to their employer. Workers must take any other Assessments forms the doctor gives them to their employer. An assessment is the annual payment which is paid by the employers to the Compensa- Step 3: Keep in touch with the employer tion Fund to cover employees who are injured Workers must let their employers know when at work. their address changes and keep in touch with • The revenue of the fund consists mainly them. Workers’ compensation will be sent to of annual assessments paid by registered their employer’s address, so it is important that employers on the basis of a percentage of their employer can find them. If employers do the annual earnings of their employees. The not send in the forms or the claims are taking rate is fixed per industry subclass. an inordinate time to be processed, workers must contact the nearest labour centre and Entities liable for registration report it. • All employers who employ one or more parttime or full-time employees must register Contact details with the Compensation Fund. • A separate registration is necessary for each Key personnel: separate branch of a business, unless an Shadrack Mkhonto, Compensation Fund arrangement for combined registration has Commissioner been made. • An employer should register with the Com- Key contact people: pensation Fund within seven days after the Dikentsho Seabo, Deputy Director: first employee was employed. Communication Themba Mdluli, Assistant Director: Claiming compensation – workers Communication When workers want to claim they must use the Philly Molonyama, Communications Officer following steps: Tel: +27 12 319 9443/112/123 Step 1: Fill in the form Email: dikentsho.seabo@labour.gov.za Workers must report their injury or disease Email: themba.mdluli@labour.gov.za to their supervisor or employer immediately. Physical address: cnr Hamilton Street and Their employer must report it to the Compen- Soutpansberg Road, Arcadia, Pretoria sation Fund and send in the necessary forms. Postal address: PO Box 955, Compensation House, Pretoria 0001 Step 2: Get forms from the doctor Website: www.labour.gov.za Workers must get the W.Cl.2 or W.Cl.1 form

Gauteng companies 2013

154

listings

Department of Labour – Compensation Fund A guide to the key provincial contact people in the Department of Labour’s Compensation Fund, which is related to the Compensation for Occupational Injuries and Diseases Act (COIDA).

Eastern Cape

Limpopo

Tamsanqa Mgudane Assistant Director: COIDA Tel: +27 43 702 7525 Cell: +27 82 383 8111

Jacob Mpulwane Assistant Director: COIDA Tel: +27 15 290 1699 Cell: +27 82 886 6396

Free State

Mpumalanga

Anne-Marie Marais Assistant Director: COIDA Tel: +27 51 505 6248 Cell: +27 82 902 6910

Lerato Ramashobane Assistant Director: COIDA Tel: +27 13 655 8725 Cell: +27 82 908 2740

Gauteng: Johannesburg

Northern Cape

Patricia Mafata Assistant Director: COIDA Tel: +27 11 853 0478

Carol-Anne Dipico Assistant Director: COIDA Tel: +27 21 441 8054 Cell: +27 82 743 0848

Gauteng: Pretoria

North-West

Boipelo Derane Assistant Director: COIDA Tel: +27 12 309 5062 Cell: +27 78 801 1151

Tsholo Esiang Assistant Director: COIDA Tel: +27 18 387 8143 Cell: +27 82 908 1943

KwaZulu-Natal Nomfi Cweba Assistant Director: COIDA Tel: +27 31 366 2033 Cell: +27 82 887 3154

Western Cape Thozama Ngonyama Deputy Director: Business Services – Compensation Commissioner Tel: +27 21 441 8054 Cell: +27 82 438 6975

155

Gauteng companies 2013

listings

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

Office of the Premier Premier: Nomvula Mokonyane Physical address: East Wing, 13th Floor, Gauteng Provincial Government Building, 30 Simmonds Street, Johannesburg 2001 Postal address: Private Bag X61, Marshalltown 2107 Tel: +27 11 355 6000 Fax: +27 11 836 9334 Email: sandy.thomas@gauteng.gov.za Website: www.gautengonline.gov.za

MEC: Nkosiphendule Kolisile Physical address: Matlotlo House, 94 Main Street, Johannesburg 2001 Postal address: Private Bag X091, Marshalltown 2107 Tel: +27 11 355 8000 Fax: +27 11 834 1972 Email: tebogo.kuhale@gauteng.gov.za Website: www.ecodev.gpg.gov.za

Department of Education

Department of Agriculture and Rural Development MEC: Nandi Mayathula-Khoza Physical address: Diamond Corner Building, 68 Eloff Street, Johannesburg 2001 Postal address: PO Box 8769, Johannesburg 2000 Tel: +27 11 355 1432 Fax: +27 11 333 0620 Email: jane.hlongwane@gauteng.gov.za Website: www.gdard.gpg.gov.za

MEC: Barbara Creecy Physical address: Arcadia Building, 10th Floor, 111 Commissioner Street, Johannesburg 2001 Postal address: PO Box 7710, Johannesburg 2000 Tel: +27 11 355 0909 Fax: +27 11 355 0542 Email: anisa.defreitas@gauteng.gov.za Website: www.education.gpg.gov.za

Department of Finance

Department of Community Safety MEC: Nonhlanhla Mazibuko Physical address: 27th Floor, Standard Bank Building, 78 Fox Street, Johannesburg 2001 Postal address: Private Bag X23, Marshalltown 2107 Tel: +27 11 689 3600 Fax: +27 11 689 3850 Email: smangele.mxumalo@gauteng.gov.za Website: www.gautsafety.gpg.gov.za

Gauteng companies 2013

Department of Economic Development

MEC: Mandla Gladstone Nkomfe Physical address: Imbumba House, 75 Fox Street, Johannesburg 2001 Postal address: Private Bag X112, Marshalltown 2107 Tel: +27 11 689 6000 Fax: +27 11 355 2481 Email: mandla.nkomfe@gauteng.gov.za Website: www.finance.gpg.gov.za

156

listings

Department of Health and Social Development

Department of Roads and Transport

MEC: Anthony Hope Mankwana Papo Physical address: 22nd Floor, Bank of Lisbon Building, 37 Sauer Street, Johannesburg 2001 Postal address: Private Bag X085, Marshalltown 2107 Tel: +27 11 355 3235 Fax: +27 11 355 3259 Email: monica.mashela@gauteng.gov.za Website: www.healthandsocdev.gpg.gov.za

MEC: Ismail Vadi Physical address: 13th Floor, Sage Life Building, 41 Simmonds Street, Johannesburg 2001 Postal address: Private Bag X88, Marshalltown 2107 Tel: +27 11 355 7507 Fax: +27 11 355 7509 Email: yusuf.sofia@gauteng.gov.za Website: www.roadsandtransport.gpg.gov.za

Department of Infrastructure Development

Department of Sport, Arts, Culture and Recreation

MEC: Qedani Mahlangu Physical address: 63 Fox Street, Johannesburg 2001 Postal address: Private Bag X83, Marshalltown 2107 Tel: +27 11 355 5010 Fax: 086 599 1621 Email: khanyisa.nkuna@gauteng.gov.za Website: www.did.gpg.gov.za

MEC: Lebogang Maile Physical address: 7th Floor, NBS Building, 38 Rissik Street, Johannesburg 2001 Postal address: Private Bag X33, Johannesburg 2000 Tel: +27 11 355 2504 Fax: +27 11 355 2640 Email: thandeka.dlamini@gauteng.gov.za Website: www.srac.gpg.gov.za

Department of Local Government and Housing MEC: Ntombi Mekgwe Physical address: Bank of Lisbon Building, 37 Sauer Street, Johannesburg 2001 Postal address: Private Bag X879, Marshalltown 2107 Tel: +27 11 355 4016 Fax: +27 11 838 2116 Email: monica.mashela@gauteng.gov.za Website: www.dlgh.gpg.gov.za

157

Gauteng companies 2013

PROFILE

Gauteng Department of Economic Development The Gauteng Department of Economic Development is fulfilling its dual mandate by implementing innovative and sustainable projects throughout the province.

The Gauteng Department of Economic to focus on enhancing the inclusivity of the Development (DED) has two main areas of Gauteng economy, while enhancing the comresponsibility. On the one hand, the DED is petitiveness of the economy. tasked with ensuring that the right environmental framework and initiatives are put in Value statement place to foster economic growth and job crea- In working towards the achievement of the tion in the province. On the other hand, the mandate and mission, the DED subscribes to DED is also responsible for ensuring that sound the following internal values: financial management policies and struc- • Accountable – DED takes responsibility and ownership of the obligations vested in its tures are in place within Gauteng Provincial Government. position • Innovative – It seeks to listen and create new Mission approaches to fulfil its mandate The department envisions sustainable job crea- • High performance – DED endeavours to tion and inclusive economic development in an produce quality outputs and always display integrated and globally competitive city region. professionalism and productivity This will be achieved by: • Integrity – Staff act with honesty and fairness • Providing thought leadership to inform the in all their commitments • Dynamic – Staff are forward-looking and economic development agenda • Mobilising stakeholders to partner for ecoproactive in what they do nomic growth and development • Creating an enabling regulatory environ- Strategic goals ment and stimulating business practices that The strategic goals of the DED are derived promote inclusive economic growth from a response to provincial outcomes, an • Enhancing the competitive advantage of key analysis of the environment, the key chalsectors of the economy lenges and strategic issues that the depart• Promoting and attracting trade and invest- ment should address, and are aligned to both national and provincial strategic priorities. The ment to the economy • Directing investment into strategic economic strategic goals and objectives are as follows: infrastructure • To provide integrated economic and devel• Proactively linking communities to economic opment planning that informs spatially opportunities referenced regional and local economic development, and contribute to the developMandate ment of Gauteng into a globally competitive The mandate of the DED is to lead, facilitate city region. and promote economic growth and develop- • To facilitate the implementation of strategic ment in Gauteng, with a targeted commitment programmes that will stimulate and enhance Gauteng companies 2013

158

PROFILE brand, competitiveness and social transfor- In Sedibeng, the DED will be implementing the mation in Gauteng, enhance trade and export Industrial Waste Exchange Project, which aims promotion and the attraction of investment, to set a platform for industries to exchange their and result in the creation of decent jobs, waste and by-products resulting in new busiincreased tourism and a greener economy. ness opportunities being created, less disposal • To promote an efficient, equitable and of waste and its associated negative impacts. socially responsible business environment. • To act as an economic intelligence nerve The Climate Innovation Centre at the centre to inform strategic decision-making Innovation Hub collaborates with the World and targeted sector-development strategies. Bank’s InfoDev unit. Through this initiative, • To promote public accountability and achieve entrepreneurs will also be linked to other clihigh standards of corporate governance and mate innovation centres established by the efficient resource utilisation. World Bank worldwide. The Climate Innovation • In effect, the overarching aim of the DED in Centre will play a key role in helping to achieve support of its mandate is to lead, facilitate the ‘New Growth Path’ objectives of job creaand manage sustainable job creation and tion, industrial development and improved inclusive economic development. environmental performance, and the shift to a Green Economy in line with Gauteng Province’s Green Economy Green Economy Strategy. Over the next five The DED, in partnership with municipalities, is years, DED will to create 2 400 jobs through hard at work developing the Green Economy the Climate Innovation Centre. in keeping with the department’s agenda to industrialise the province and to build a more Agencies sustainable future. Gauteng municipalities have The DED is home to a number of agencies, such identified a variety of projects for implementa- as the: tion in the next three years. The projects range • The Gauteng Growth and Development from solar-farm development, efficient public Agency, which was the result of a merger and street lighting, eco-construction, wastebetween GEDA and Blue IQ water refurbishment and efficiency, landfill- • Gauteng Enterprise Propeller gas harvesting, development of cycling lanes, • Gauteng Gambling Board public transport upgrading in the form of BRT • Gauteng Tourism Authority and many others. The total investment value is in excess of R6-billion for the next three years. Contact details Joint working agreements with West Rand District Municipality and the City of Tshwane Tel: +27 11 355 8000 are at an advanced stage to consider the joint Fax: +27 11 355 8730 development of Green Economy projects. Physical address: Matlotlo House, 94 Main Street, Johannesburg In considering the further diversification of Postal address: Private Bag X091, Gauteng’s energy sources, the gas distribution Marshalltown 2107 network within the province will commence in Website: www.ecodev.gpg.gov.za the townships, which are pilot areas for the initial roll-out of gas reticulation networks to lowand middle-income households. The required total capital cost of this pilot is estimated at R98.6-million, inclusive of the provision of subsidised gas stoves to individual households.

159

Gauteng companies 2013

interview

Rapid progress on key projects Gauteng MEC for Economic Development Nkosiphendule Kolisile discusses the department’s intention to strengthen partnerships and create jobs.

Nkosiphendule Kolisile

Nkosiphendule Kolisile has been a member of the African National Congress (ANC) since 1991. Before his appointment as MEC for Economic Development, he served as the chairperson of the economic development portfolio committee in the Gauteng Provincial Legislature. He holds a National Diploma in Project Management from Damelin, as well as a Certificate in Labour Studies from the Durban University of Technology. Gauteng companies 2013

Gauteng is proudly developing its Green Economy. What are the latest initiatives and programmes being implemented to further this goal? In 2010, the province adopted the Gauteng Employment Growth and Development Strategy (GEGDS), which is the overarching socioeconomic strategy that guides the developmental path of the province. This strategy enlists the Green Economy as one of the long-term growth paths for the economy of the province. To this effect, a number of projects are already underway. In terms of renewable energy, the department is investigating the potential for Gauteng-specific renewable energy projects and looking at ways to facilitate private-sector establishment of greenmanufacturing hubs for renewable-energy products. The potential for green jobs in areas such as medical-waste treatment, acid-mine drainage and water management, biomass to energy and the built environment is being investigated. There are also various projects that involve communities. These include solar-water heaters for public-housing projects, recycling buy-back centres, as well as community food gardens. Within the Provincial Government, energy audits of all buildings have been undertaken and energy-efficiency devices have been inserted. Furthermore, large public complexes such as hospital facilities will be retrofitted to enable them to generate their own renewable energy from solar power and gas. Energy-efficient measures will be implemented at these complexes including fitting low-energy lighting systems and improving efficiency in boilers and incinerators. All these programmes have the double benefit of creating a greener province while simultaneously generating much-needed jobs in the economy. What is being done to boost the province’s capabilities as a truly integrated multimodal transport hub? Gauteng is at the centre of most regional and port connections in Southern Africa, and the GEGDS proposed freight and logistics as a key driver to transform the Gauteng economy and optimise Gauteng as a gateway to emerging African markets. Furthermore,

160

interview while Gauteng is a tertiary economy, there is high movement of freight to the province from coastal provinces. Projections indicate that there will be an increase in freight moving into the province due to rising demand. It is within this context that the department has identified the establishment of four freight and logistics hubs in the province that will serve as a freight ring to: • Facilitate uninterrupted flow of freight • Provide a key link between hubs and terminals • Provide dedicated freight routes segregated from congested PRASA routes • Improve competitiveness of Gauteng’s economy Currently, the province boasts a number of strategic inland hubs, such as those located in City Deep/Kaserne, Pyramid, Tshwane Auto City and Sentrand. Plans are afoot to develop new hubs in areas like Tambo Springs. Tambo Springs is poised to become the biggest container hub in Africa. The hub will be intricately linked with the OR Tambo International Airport (ORTIA). Goods that are imported by air from OR Tambo will be transported to Tambo Springs by road. The planned PWV 17 road will link Tambo Springs with the SADC region. This will be a great development as some of the car parts that are currently transported by air can be distributed using rail or road transport. As a hub, Tambo Springs will serve as a warehousing, distribution and connecting point. For instance, freight that moves from the DRC can connect through Gauteng to other parts of the country. How is development on the SMME Incubator facility progressing? During the past year, Maxum, our SMME incubator, graduated five companies from preincubation into incubation. Of the five graduated companies, only two companies have taken up office residence in the park, while one chose to take up a virtual office. The pre-incubation programme has attracted 26 companies. These companies are developing businesses in the ICT, renewable energy and bio-sciences sectors. All

Road freight is set to increase in the province due to rising demand. these companies are owned by people from from previously disadvantaged backgrounds. This programme has gone through major transformation with the implementation of a new business-incubation strategy to improve the throughput rate of companies from the pre-incubation, to incubation and then to full commercial viability state. Maxum targets for the year 2011/12 included the training of 100 SMMEs. To date, 98 SMMEs have been trained through Maxum service providers. The training sessions addressing the following aspects: • Business planning • Commercialisation • Strategy review, values, purpose, vision and mission • Monitoring/measuring/challenge session • Leadership

161

Gauteng companies 2013

interview Some of the highlights in the past 12 months include the following: Phambili Energy: The company developed a technology to convert biomass from invasive alien species to clean burning charcoal called Jenga charkette. In 2011, Phambili Energy secured a R38-million contract to develop a biomass to charcoal conversion plant (BCCP) plant in Bushbuckridge, and provide 1 500 Jenga EcoPower stoves to rural households within the Bushbuckridge municipality. Wagenience: The entrepreneur Paseka Lesolang has developed a hygienic foot-flush dual-cistern toilet that saves water while improving on hygiene. In the past 12 months, the entrepreneur has secured Support Programme for Industrial Innovation (SPII) funding and won two business plan competitions. Matayo Biofuels: The biodiesel production company has commissioned a 1 500-litre-perday biodiesel plant in Benoni in Ekurhuleni. The company is currently in discussions with the City of Tshwane to introduce biodiesel as a fuel for the city’s bus rapid transport system. How is the department partnering with further education and training institutions, and what are the outcomes of these partnerships? There is a lot of work that is being done with our universities and further education and training institutions. For instance, the department and the Gauteng City Region Academy (GCRA) have been collaborating with the Department of Trade and Industry (dti) to pilot skills development in tool making. The dti has been able to provide funding (capital and student tuition) of R116 000 per student per annum. The GCRA provided allowances to the learners amounting to R54 000 per student per annum. DED supported the project management office (Gauteng Tooling Initiatives) at a cost of R4.8-million per annum to cover operational costs, cluster development and exhibitions. In terms of skills development and artisan training programmes, there are 250 students that are registered at various further education and training (FET) institutions to study for a three-year tool-making diploma. The annual Gauteng companies 2013

programme comprises a three-month theory course from February to May, practical workshop training from May to August and on-thejob training from August to November. The department, in partnership with the University of Johannesburg, is also working with a Swiss company, Watches of Switzerland, to establish a school that will offer training in designing watches. This work is important for our plans to establish the OR Tambo International Airport Jewellery Manufacturing Precinct, which will increase the demand for jewellery manufacturing and design skills. Also important is that we are powering ahead with our matric/graduate placement programme. By November 2012, we have placed 1 000 candidates, and by the end of this financial year, the number will be in the order of 8 000. What do you hope to achieve in your current position during your tenure? The unemployment rate in Gauteng is currently at 25.4%. The level of economic growth, which stands at 3%, is also cause for concern. Educational attainment in the province also reveals a startling picture. More than a third of the people in the province have an educational level of grade nine or lower. Inequality, measured through the Gini coefficient, is 0.65, and the Human Development Index is 0.68. These unsettling facts merely highlight the deep-seated inequalities in terms of income and opportunities in our province. The creation of decent jobs and fostering inclusive economic growth in the province are the major tasks facing us currently. The department has a package of initiatives and programmes aimed at realising these objectives. However, we cannot achieve our goals in the absence of support from key stakeholders in the form of business, labour, civil society organisations and communities within Gauteng. The focus will therefore be on forging strategic partnerships with key stakeholders in the province.

162

focus

Collaboration is key to success The Gauteng Department of Economic Development is implementing a number of programmes that address key sectors, such as SMMEs and co-operative enablement, and job and skills development.

T

he Gauteng Department of Economic Blue IQ, will be speeding up implementaDevelopment is embarking on the fol- tion of a number of projects in the automolowing programmes and initiatives to tive sector, economic infrastructure and achieve the provincial objectives of creating export promotion, as well as facilitating both decent jobs and building a growing, inclusive domestic and foreign investments. economy. One of these is the project that is aimed at providing mentoring to about 80 individuals working in the auto-body-repair industry and SMMES and co-operatives linking them to business opportunities. The key focus area of the department’s work Another programme is the Talent Pipeline. This is the small business and co-operative sector. is aimed at increasing the number of learners This sector faces various challenges, among passing maths and science at school level to take which is the inability to access funds. on careers in engineering and manufacturing. To this end, the department’s agency, Gauteng The department’s work on Township Enterprise Enterprise Propeller (GEP), has just completed Hubs is continuing. These hubs are aimed at boosting economic activity in far-flung areas a major review of its funding model. The agency will also soon be introducing a of the province. new programme for businesses owned by people In the coming months, the department will with disabilities (PWDs). also fast-track work on the Gauteng Smart City. Against this background, the department is This is a geographically positioned composigoing to ensure that adequate attention is paid tion and collaboration of ICT companies and to entrepreneurship development as well as institutions, and will be located in Nasrec. SMMEs and co-operatives. The Gauteng Strategic Procurement Framework, which has been recently Tourism approved by the Provincial Executive Council, will support this work. This framework seeks to Through its agency, Gauteng Tourism Authority, deepen local content in Gauteng government the department is continuing with its drive to spend consistent with the national government sell the province as a competitive city-region regulations. made up of multi-regions and attractions. The department is nearing the completion of its integrated programme of developing new Jobs and skills development tourism routes in Gauteng, following the FIFA As part of the department’s commitment 2010 World Cup. These routes, which form towards the reindustrialisation efforts to part of the department’s tourism infrastructure support job creation and growth in labour- development programme, include the Struggle intensive industries, the Gauteng Growth Route, Sports Route, Heritage Route and and Development Agency (GGDA), which has Mining Route. been established from merging the Gauteng Economic Development Agency (GEDA) and www.ecodev.gpg.gov.za

163

Gauteng companies 2013

message

Gauteng empowering women MEC for Agriculture, Rural and Social Development Nandi Mayathula-Khoza highlights the current programmes and initiatives that are empowering women throughout Gauteng Province.

• Women can now occupy key positions in decision-making structures of government and civil society

• Women’s social needs are being addressed through access

Nandi Mayathula-Khoza

T

he development and empowerment of women remain a priority for the Gauteng Provincial Government (GPG). Since its inception 18 years ago, the democratic government has introduced a number of policies and programmes that have contributed to the development and empowerment of women so they can play a more meaningful role in society. The Constitution guarantees the rights of women and prohibits all forms of discrimination. Gauteng companies 2013

to housing, education, healthcare, jobs, social security grants and other services • More women are now active in the economy as entrepreneurs, thanks to a range of policies including preferential procurement, co-operatives development, small business promotion and skills development • Large numbers of girl learners are enrolled in subjects such as mathematics, science and technology at schools • A range of healthcare initiatives are targeted at improving women’s health and preventing and treating HIV and Aids While women have made important gains, there is a lot more work to be done before we can say that we have truly achieved gender equality in our province and in our country. Women are still faced with challenges of poverty, unemployment, abuse and violence. Through the understanding of these challenges, the department develops and implements programmes for the eradication of poverty, as well as for social protection and social development among the poorest of the poor.

Victim empowerment The department provides supportive services to individuals affected by domestic violence and abuse of all forms, and advocates for community efforts to end violence. The services provided focus primarily on women and children. The department has, throughout the mid-term period, championed campaigns such as the ‘16 days of No Violence against Women and Children’ which educates communities about gender-based violence, abuse and available help for victims of abuse and survivors of gender-based violence. Other services available include counselling, protection, provision of shelter and care. Twenty-one shelters for domestic violence were funded, giving access to 3 566 women who were victims of crime and violence. A further 387 of these women were put into economic empowerment programmes.

164

message

• 14 147 children in conflict with the law awaiting trial in secure care centres.

Dignity packs Girl learners who cannot afford to buy sanitary towels Learners receiving their dignity packs. are receiving assistance from the department, which has provided them with packs conCrime prevention and support taining Vaseline, body lotion, The Gauteng Provincial Government has rendered social- toothpaste, roll-on deodorant crime-awareness programmes that have reached out to 88 and a pack of sanitary towels. 963 beneficiaries, including children, who were equipped with This project also helps to the necessary information on crimes related to gender-based provide income for co-operaviolence and the consequences of crime. This has helped to tives producing these sanitary create vigilance on these issues. towels. Apart from restoring the Diversion programmes have also been put in place to help dignity and the rights of the with the rehabilitation of children who had been convicted girl learners, the packs they of crimes. These programmes seek to provide child offenders receive from the department with corrective and educational opportunities. The province have helped to improve the rate provided funding support to a number of non-profit organ- of school attendance. About siations running diversion programmes, while some child 70 000 girls have benefited offenders were placed in homes under strict supervison as from the programme since its well as child and youth care-centres. The department estab- launch in 2011. lished 11 Reception, Assessment and Referral (RAR) centres In the 2012/13 financial to ensure mandatory assessment of arrested children before year, the department intends they appear in court. The establishment of these centres to increase this benefit to has assisted in promoting access to diversion programmes. 150 000 girls. In addition, dignity packs were distributed to both girls and boys, therefore Secure care centres establishing a balance from a Performance in this programme included services provided to the gender perspective. following beneficiaries over the medium term: www.gautengonline.gov.za • 3 942 adults offenders were assessed • 13 691 minor offenders were assessed • 6 262 child offenders who participate in diversion programmes • 1 957 children in conflict with the law in home-based supervision

165

Gauteng companies 2013

listings

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

City of Johannesburg Metropolitan Municipality Parks Tau, Mayor Physical address: Metropolitan Centre, 1st Floor, Council Chamber Wing, 158 Loveday Street, Braamfontein 2001 Postal address: PO Box 1049, Johannesburg 2000 Tel: +27 11 407 7557 Fax: +27 11 339 5704 Email: executivemayor@joburg.org.za Website: www.joburg.org.za

City of Tshwane Metropolitan Municipality Kgosientsho Ramokgopa, Mayor Physical address: Nunitoria Building, cnr Madiba and Lilian Ngoyi streets, Pretoria Postal address: PO Box 440, Pretoria 0001 Tel: +27 12 358 4900 Fax: 086 732 5458 (SA only) Email: gorgias@tshwane.gov.za Website: www.tshwane.gov.za

Gauteng companies 2013

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

West Rand District Municipality

Mondli Gungubele, Mayor Physical address: cnr Queen and Cross streets, Germiston 1401 Postal address: Private Bag X1069, Germiston 1400 Tel: +27 11 999 0906 Fax: +27 11 999 1564 Email: mayor@ekurhuleni.gov.za Website: www.ekurhuleni.gov.za

Mahole Simon Mofokeng, Mayor Physical address: cnr Beaconsfield and Leslie streets, Vereeniging 1930

Local municipalities encompassed Emfuleni Municipality Tel: +27 16 950 5452 Fax: +27 16 950 5001 Email: bongiwen@emfuleni.gov.za Website: www.emfuleni.gov.za

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

Ekurhuleni Metropolitan Municipality

Sedibeng District Municipality

Postal address: PO Box 471, Vereeniging 1930 Tel: +27 16 450 3017 Fax: +27 16 421 3182 Email: thandiet@sedibeng.gov.za Website: www.sedibeng.gov.za

Mpho Nawa, Executive Mayor Physical address: cnr Sixth and Park streets, Randfontein 1759 Postal address: Private Bag X033, Randfontein 1760 Tel: +27 11 411 5000 Fax: +27 11 693 7833 Email: mduplessis@wrdm.gov.za Website: www.wrdm.gov.za Local municipalities encompassed Merafong City Local Municipality Tel: +27 18 788 9546 Fax: +27 18 787 2146 Email: execmayor@merafong.gov.za Website: www.merafong.gov.za

166

listings Mogale City Municipality Tel: +27 11 668 0500 Fax: +27 11 953 4571 Email: fozi.patel@mogalecity.gov.za Website: www.mogalecity.gov.za Randfontein Muncipality Tel: +27 11 411 0083/84 Fax: +27 11 693 1736 Email: sharon.groenewald@randfontein.gov.za Website: www.randfontein.gov.za

Westonaria Municipality Tel: +27 11 278 3004 Fax: +27 11 753 2686 Email: mayor@westonaria.gov.za Website: www.westonaria.gov.za

MUNICIPALITIES IN GAUTENG

Northern Province

Metropolitan/District Municipality boundary Local Municipality Boundary

Amajuba

District/Metropolitan Municipality

Local Municipality Gauteng

uMlalazi

Temba

West NorthNorth West

City of Tshwane Metropolitan

Akasia Rosslyn

PRETORIA Mogale City Hekpoort Local Municipality

Mpumalanga

N1

Mabopane

Atteridgeville Erasmia

Sterkfontein DMA

Mpumalanga

Babelegi

N14 N1

Halfway House

Muldersdrift West Rand City of Sandton Magaliesburg District Municipality Oaktree N1 Johannesburg Krugersdorp Randburg

Bon Accord Municipality Cullinan Onderstepoort Rayton Mamelodi Centurion R50

Clayville Tembisa

R21

N4

Bronkhorstspruit R25

Bapsfontein

Kempton Park Ekurhuleni Metropolitan Daveyton Randfontein Metropolitan Benoni Municipality Local Municipality Roodepoort JOHANNESBURG Municipality N12 N14 Boksburg Brakpan Randfontein Mohlakeng N12 Merafong City Westonaria Soweto Germiston Springs Alberton Bekkersdal Local Municipality Local Municipality N7 Westonaria Lenasia Katlehong Carletonville Walkerville Ennerdale Lesedi Local Municipality R28

Sebokeng

R59

N1

Randval Sedibeng District Municipality Evaton N3

Emfuleni Local Municipality R82

Heidelberg R42

Meyerton Midvaal Local Municipality

Vereeniging

R54

Nigel

Mpumalanga

Mpumalanga

Vanderbijlpark

Free State 167

Gauteng companies 2013

index

INDEX Absa Business Bank������������������������������������������������������������������������������������������������������������������������������������������������������������IFC Airports Company South Africa (ACSA)�������������������������������������������������������������������������������������������������������������������� 78 Bridge Wealth��������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 7 Centlec (SOC) Ltd���������������������������������������������������������������������������������������������������������������������������������������������������������������104 Collect-a-Can���������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 3 Computron����������������������������������������������������������������������������������������������������������������������������������������������������������������������������112 CTP Printers���������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 87 Ekurhuleni Business Development Academy (EBDA)�������������������������������������������������������������������������������������138 Ekurhuleni East College�������������������������������������������������������������������������������������������������������������������������������������������������140 Frontier Market Network���������������������������������������������������������������������������������������������������������������������������������� 29, 42, 43 Gauteng Department of Economic Development���������������������������������������������������������������������������������158, 160 Gauteng Department of Social Development����������������������������������������������������������������������������������������������������164 Gauteng Enterprise Propeller�������������������������������������������������������������������������������������������������������������������������������������128 Gauteng Office of the Premier�������������������������������������������������������������������������������������������������������������������������������������� 10 Gauteng Partnership Fund���������������������������������������������������������������������������������������������������������������������������������������������� 84 Genrec Engineering����������������������������������������������������������������������������������������������������������������������������������������������������������� IBC Global Africa Network������������������������������������������������������������������������������������������������������������������������������������������ 9, 10, 72 GOBA��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 5 Indaba Hotel��������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 38 Industrial Development Corporation (IDC)���������������������������������������������������������������������������������������������������������OBC Johannesburg Chamber of Commerce and Industry��������������������������������������������������������������������������������������127 juwi Renewable Energies����������������������������������������������������������������������������������������������������������������������������������������������103 KSM Group������������������������������������������������������������������������������������������������������������������������������������������������������������������������������ 56 Nalco Africa�������������������������������������������������������������������������������������������������������������������������������������������������������������������� 55, 98 National Department of Agriculture, Forestry and Fisheries������������������������������������������������������������������������ 49 National Department of Labour – Compensation Fund���������������������������������������������������������������������152, 154 National Empowerment Fund�������������������������������������������������������������������������������������������������������������������������������������130 Petroleum Agency South Africa���������������������������������������������������������������������������������������������������������������������������������101 POPCRU Group of Companies�������������������������������������������������������������������������������������������������������������������������������������� 24 RMB Infrastructure and Project Finance������������������������������������������������������������������������������������������������������������������ 91 Seekers Travel����������������������������������������������������������������������������������������������������������������������������������������������������������������������� 37 Small Enterprise Development Agency������������������������������������������������������������������������������������������������������124, 126 Standard Bank����������������������������������������������������������������������������������������������������������������������������������������������������������116, 118 Trans-Caledon Tunnel Authority�������������������������������������������������������������������������������������������������������������������������� 92, 94 Transnet Port Terminals������������������������������������������������������������������������������������������������������������������������������������������� 75, 76 Transnet Rail Engineering��������������������������������������������������������������������������������������������������������������������������������������� 66, 68 Tshwane North FET college������������������������������������������������������������������������������������������������������������������������������������������136 Western College����������������������������������������������������������������������������������������������������������������������������������������������������������������142 Xylem Water Solutions����������������������������������������������������������������������������������������������������������������������������������������������������� 89 Gauteng companies 2013

168

At Genrec Our values deliver Your vision

At At Genrec, Genrec, we we know know that that aa company’s company’s products products are are aa reflection reflection of of the the team team that that creates creates them. them. Our Our people people are are the the underlying underlying force force driving driving the the delivery delivery of of your your vision vision with with embedded embedded values values to to deliver deliver beyond beyond our our customers’ customers’ expectations. expectations. Working with honesty, accountability and care, our collective team is committed to fabricating innovative steel solutions to meet your specific needs. Genrec’s capabilities extend from Total Project Management; Design & Detailing; Light, Medium & Heavy Structural Fabrication; Planning and Programming to Erection. The company also retains the in-house capacity and competency to conduct precision Heavy Machining. At Genrec, our team is happy to discuss the value we can add to your projects with our resources, be that a single capability or the entire project offering.

Our Values | Honesty and Integrity | Accountability | Care | Respect | Commitment

Genrec Engineering (Pty) Ltd. Tel: +27 11 876 2300 | Fax: +27 11 827 1722 Cnr Dekema & Niemann Roads, Wadeville, 1428, South Africa E-mail: sales@genreceng.co.za Web: www.genreceng.co.za

The IDC is the biggest supporter of tenders awarded

Over the next five years, the IDC will make available

in the Department of Energy’s Renewable Energy

R25 billion to fund projects related to green industries.

Independent Power Producers (REIPP) programme. The IDC is identifying and providing funding for many In the first round of REIPP tenders, the IDC participated

projects that will contribute to building South Africa’s

in twelve successful bids, and seven more in the second

industrial capacity and creating jobs. Visit www.idc.co.za

round. The green energy bids include wind power,

to find out more.

concentrated solar power, photovoltaic and small hydro projects.

The power behind

Chillibush7467IDC

renewable energy

Telephone: 086 069 3888 Email: callcentre@idc.co.za To apply online for funding of R1 million or more go to www.idc.co.za


Gauteng Companies 2013