Share this
Mister Wong
Digg
Del.icio.us
Slashdot
Furl
Yahoo
Technorati
Newsvine
Googlize this
Blinklist
Facebook
Wikio
Hear this text
Print
E-mail
Tags
The Gauteng Province is one of the most popular trade and investment destinations in South AfricaInfluenced by the growing centrality of cities in modern economies such as London, New York, Paris and Tokyo, the Gauteng city region has positioned itself as a major metropolitan conurbation, predicted to be the 12th largest city in the world by 2015.
Although Gauteng is the smallest of the nine provinces in South Africa, covering only 1.4% of the country’s land area, it is an economic giant that contributes a staggering 40% to the national gross domestic product, 26% of regional GDP and 9% of Africa’s total GDP.
In the seSotho languages, “Gauteng” means “Place of Gold”, due to its economic and historic roots in the thriving gold industry after the discovery of this precious metal in Johannesburg in 1886.
Gauteng’s three main metro cities are Johannesburg, Pretoria and Soweto, with Johannesburg as the provincial capital, Pretoria as the national administrative capital and Soweto as the most visited tourism area in the province.
These three cities and Gauteng’s other 15 local authorities united to develop the province into an integrated and globally economic competitive region, incorporating new ways of thinking and exciting new possibilities for advancement.
Today, Gauteng is seen as the central point of international investment, economic growth and long-term financial stability, providing world-class services and opportunities for not only South Africa but also Africa. For this reason, Gauteng has become one of the most popular trade and investment destinations in the world, with many multinational companies operating in southern and eastern Africa having located their headquarters in Johannesburg.
The financial capital of South Africa, covering an area of nearly 17 000km2, Johannesburg is an internationally renowned vibrant metropolis with 3.8 million inhabitants, generating 16% of the country’s GDP, and employing 12% of the national workforce.
It is home to 74% of South Africa’s corporate headquarters, the JSE Securities Exchange, bond exchange, over-the-counter (OTC) market and a vibrant alternative board, AltX, similar in vision to AIM on the London Stock Exchange.
The city’s economy is dominated by six sectors: financial and business services, retail and wholesale trade, community and social services, manufacturing, information and communication technology (ICT), and telecommunications and media.
Tshwane, City of Knowledge, with the original name Pretoria Philadelphia (“Pretoria of Brotherly Love”), is the seat of government administration and home to several universities, research institutions and The Innovation Hub, Africa’s first internationally accredited Science Park and Gauteng’s first high-tech, network cluster.
The Innovation Hub’s focus is to increase the contribution that businesses make toward the growth of Gauteng’s economy through commercialisation of technology, development of technological capacity, entrepreneurial ability as well as intellectual capital.
The Gauteng Economic Development Agency (GEDA) is the province’s official economic, investment and trade promotion agency with the mission to promote economic growth and development, assisting investors in all areas of production, investment and trade.
One of the major infrastructural developments currently under way is the construction of the much awaited Gautrain Rapid Rail Link, a pillar of the province’s economic strategy. This multimillion-rand rapid rail system connects OR Tambo International Airport with Johannesburg and Tshwane metros, establishing itself as a benchmark project for empowering disadvantaged people – having created 11 700 direct jobs and 63 200 direct, indirect and induced jobs.
The Gautrain will be seamlessly integrated into existing transport modes by physical integration of routes and stops, quality of service and co-ordinated timetables.
In order to improve the current and pressing traffic flow situation, providing a road network that will stimulate the development potential in the province, the South African National Roads Agency Limited is improving the existing Gauteng freeway network and implementing additional infrastructures.
The Gauteng Freeway Improvement Project will provide an interconnected network of inner and outer ring roads and directly link the historically neglected areas of the western and southern townships of Joburg.
Gauteng is home to the country’s main international airport and Africa’s busiest – both passenger-wise and cargo – OR Tambo; and boasts two inland ports, City Deep and Kazerne, which are the hub of an export-growth zone, serving rail, road and air freight customers throughout the southern African region.
In earlier days, the bulk of Gauteng’s growth came from mining, and to a lesser extent heavy manufacturing associated with those commodities.
Today, Gauteng’s manufacturing sector alone employs 600 000 people in over 9 000 enterprises that include basic iron and steel, fabricated and metal products, food products, machinery, electrical machinery, appliances and electrical supplies, automotive components and assembly, chemical products and refined petroleum products.
Manufacturing has been the mainstay of Gauteng’s economy until the ICT industry recently took over with rapid rates.
South Africa’s ICT sector is the largest on the African continent and the 20th biggest in the world, with more than two-thirds of highly advanced technology businesses located between Johannesburg and Pretoria, such as Microsoft, Hewlett-Packard, IBM, ICL, Unisys, Vodacom, MTN, Telkom and other hardware, software, networking, wireless technology, prepaid systems and cellphone banking providers.
To date, Gauteng has received over R47 billion worth of direct private sector investment, with GEDA promoting even more investment opportunities.
Gauteng has established the Gauteng City Region Academy (GCRA) to strengthen science, engineering and ICT skills in the province.
At the opening of the provincial legislature, Premier Mbhazima Shilowa said the launch of GCRA would boost the development of skills necessary for economic growth and social transformation, working on research, development and innovation.
South Africa’s formal banks comply with international banking standards and offer one of the most sophisticated banking systems in the world, with customers having online, real-time, nationwide access to bank accounts 24 hours a day, 365 days a year.
The fact that the banking sector was relatively unscathed by the recent global banking crisis is testimony to the level of banking supervision and regulation in the province and country.
The national free-to-air broadcasters, the SABC and eTV, are situated in Gauteng alongside subscription television channel Multichoice, the largest broadcaster on the African continent with film and documentary-producing facilities growing.
The province has the best telecoms and technology on the continent, with five television stations and correspondents for the world’s major media stationed here. It also has the highest concentration of radio, Internet and print media in Africa.
The Gauteng Integrated Energy Strategy was developed as a reactive response to the concerns around climate change, aiming to maximise contribution to achieving South Africa’s renewable energy target of 10 000 gigawatt-hours of cumulative energy by the end of 2013.
Within Gauteng, solar energy and energy from landfill gas are the most obvious short-term renewable energy sources, with the potential to generate energy from wind and concentrated solar power from outside the provincial boundaries.
If the objectives of the strategy are implemented correctly, Gauteng will have a modern energy system by 2055, powered by a low carbon footprint.
Citizens will have access to affordable energy services, with little impact on health and the environment. It will be a hub of innovation focused on clean energy technology and having superior green buildings in the private and public sector, with large quantities of energy-efficiency appliance use with a visible shift toward lesser polluting, transport technologies, fuels and vehicles.
Renewable energy offers considerable scope for enhancing the profitability of business and contributing to economic development, with the government promoting innovation through investment and public-private partnerships.
The World Bank ranked South Africa among the top 30 in the world for ease of doing business – ahead of Italy, France, China and India.
Importantly, South Africa was in the top 10 in the investment protection index, with a highly successful macro-economic policy of the central government, which has brought the longest upward business cycle in South Africa’s history, lower taxes, lower inflation, lower budget deficits as well as competitive interest rates.
With huge investment potential in ICT, telecoms and renewable energy products, Gauteng is becoming a ‘global mega city’ larger than Los Angeles, with a great economic reform – resulting in a stronger private sector, lower inflation and an investment environment that will attract unprecedented capital inflows.
Rizel Delano
