Regional overview of Gauteng
Gauteng is not just an important centre of economic activity in itself, but is also an important launching pad for local and international businesses to enter the African market. The country’s biggest airport, OR Tambo International Airport, is at the core of the province’s logistical network. Other airports include Rand Airport (Germiston), Lanseria (north of Johannesburg), Wonderboom (Pretoria) and Grand Central (Midrand).
Twenty-three billion rand 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. The leading economic sectors, as defi ned by the Gauteng Economic Development Agency (GEDA), are fi nance (21% of provincial GDP), manufacturing (19.7%), government services (15.7%) and trade (12.8%).
Gauteng covers just 1.4% of South Africa’s land mass but it produces about a third of South
Africa’s – and 10% of Africa’s – gross domestic product (GDP). Whereas mining used to account for Gauteng’s dominance of the regional economy, the province is now a leader in a wide range of other sectors: finance, manufacturing, commerce, IT and media among them. Figures released by the Bureau of Market Research (BMR) show that Gauteng accounts for 35% of total household consumption in South Africa.
The manufacturing sector in Gauteng employs 600 000 people in more than 9 000 enterprises. Manufacturing capacity extends from the heavy steel industry clustered around Vanderbijlpark and Vereeniging (close to the important synthetic fuel and chemicals producer in Sasolburg in the neighbouring Free State Province), through the medium industries associated with automotive assembly and parts (mostly in Rosslyn, near 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.
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, ranging from heavy to light industry, in the country. The western part of the province is concerned mainly with mining and agriculture, while the south has a combination of maize farming, tobacco production and the heavy industrial work associated with steel and iron-ore workings.
The province has several outstanding universities, and the majority of South Africa’s research takes place at well-regarded institutions such as the Council for Scientific and Industrial Research (CSIR), the South African Bureau of Standards (SABS), Mintek, the South African Nuclear Energy Corporation (NECSA), the Human Sciences Research Council (HSRC) and a number of sites where the work of the Agricultural Research Council is done.
Major projects
The Provincial Government of Gauteng
has produced a document called Vision 2055 which includes several major infrastructural and logistics projects. These include:
• the development of an aerotropolis linking OR Tambo International Airport with Lanseria Airport
• a high-speed rail link between Johannesburg and eThekwini in KwaZulu-Natal
• three freight and logistics hubs from 2012
• the implementation of the Tembisa Master Plan
• starting to roll out aspects of the Green Economy Plan.
A green economic development strategy has been developed for the province by the Gauteng Department of Economic Development and Planning, intended to turn the challenges of climate change into opportunities. Projects include:
• R77-million, energy from waste
• R32-million, Moringo Oliveira food security
• R5-million, waste sorting in informal settlements
• R30-million, incentivise the solar industry, especially heaters
Another
provincial priority is to develop the central business districts of the region’s major towns. The focus for the three years to 2014, is on the cities of Germiston, Krugersdorp and Vereeniging.
One the province’s busiest departments is the Department of Economic Development and Planning (GED). It has no less than eight agencies reporting to it, a situation that has been less than ideal. In 2010 it was announced that these will be rationalised into three bodies. The current bodies are:
• Gauteng Enterprise Propeller
• Gauteng Tourism Authority
• Gauteng Film Commission
• Gauteng Gambling Board
• Blue IQ
• Dinokeng
• Cradle of Humankind
• Gauteng Economic Development Agency
Gauteng is administered by three metropolitan authorities (covered separately) and two district municipalities:
Sedibeng District Municipality
Towns: Sebokeng, Sharpeville,
Vereeniging, Vanderbijlpark
The Emfuleni Local Municipality (including Evaton, Sharpeville, Vanderbijlpark and Vlakplaas) is at the core of the Vaal Triangle, which in turn is at the heart of South Africa’s iron and steel industry. Metal products, machinery and equipment are made here. ArcelorMittal has been a major employer in Vanderbijlpark since 1947.
Heidelberg produces bacon and tobacco: Eskort and British American Tobacco are the two major companies in the area. The Midvaal area has agriculture and tourism as its two main economic activities and the city of Meyerton is the site of newly built, multi-million-rand Heineken brewery. The Klip River at Henley-on-Klip and the Vaal Dam are major tourist attractions, while ecotourism opportunities have the potential to grow. The Suikerbosrand Nature Reserve is regarded as a regional jewel.
West Rand District Municipality
Towns: Randfontein, Krugersdorp, Westonaria
The West Rand is the area of Gauteng where mining has retained its strongest presence. Large-scale commercial farming also takes place. Randfontein Local Municipality is where the world’s deepest gold mine was dug. To the south, mining contributes 75% to Westonaria Local Municipality’s economy. An industrial park has been planned to assist in the process of diversifying the economy. Mogale City Local Municipality is very much the economic driver of the district, including as it does the town of Krugersdorp.
Krugersdorp has considerable manufacturing capacity and has a motor-sports racing track that attracts international drag-racing events. Tourism in the district is mostly located within the surrounds of Mogale City. Significant attractions include the Cradle of Humankind, the Magalies Meander, the Sterkfontein caves and the Krugersdorp Game Reserve.