Regional overview

Gauteng province 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.

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 international airport, OR Tambo International Airport, is at the core of the province’s logistical network. Other airports include Rand Airport (Germiston), Lanseria (north-west of Johannesburg), Wonderboom (Pretoria) and Grand Central
(Midrand). Twenty-three billion rand is being spent on upgrading Gauteng’s already extensive road network, and public transport is the focus of two big projects currently under way: the 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
finance (21% of provincial GDP), manufacturing (19.7%), government services (15.7%) and trade (12.8%).

The manufacturing sector in Gauteng employs 600 000 people in more than 9 000 enterprises. Manufacturing capacity extends from the heavy-steel industry clustered aroundVanderbijlpark 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 arevegetables, fruit, dairy, poultry and eggs. The cultivation of roses has proved to be a lucrative undertaking north-east of Pretoria.

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.

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.

Ekurhuleni Metropolitan Municipality

Towns: Germiston, Boksburg, Benoni,
Kempton Park, Brakpan, Springs

Ekurhuleni plays a vital role in the national economy. Firstly, it is the site of OR Tambo International Airport. Secondly, it is home to a large number of manufacturing enterprises. The metropolitan municipality is also one of the most densely populated areas of South Africa. Wadeville-Alrode and Germiston-Daveyton are important industrial corridors. Germiston is home to the Rand Refinery Limited, South Africa’s only gold refinery.

The lakes at Brakpan and Benoni are popular sites for recreation, and the former town has a casino. Several hotels, particularly those near the airport, have conference and event facilities. The World Trade Centre, near OR Tambo International Airport, is one of South Africa’s biggest conference venues.

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. It is predominantly rural with Meyerton as its main town. 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.

Metsweding District Municipality
Towns: Bronkhorstspruit, Cullinan
The north-eastern part of the province has an economically varied profile that includes mining and flower cultivation. Services makeup the biggest economic sector (27%) with manufacturing, finances and trade following in importance. Mining is important in the Nokeng Tsa Taemane Local Municipality. The town of Cullinan is historically an important town as the largest-ever diamonds were found there.

Tourism is an area of potential growth, with the Dinokeng Initiative already having reaped dividends. Other tourism assets include the Roodeplaat Dam, Mkhombo Nature Reserve, the Sizanani Cultural Village and the Nan Hua Buddhist Temple in Bronkhorstspruit, the largest Buddhist temple in South Africa.

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
is planned to assist in the process of diversifying the economy. Mogale City Local Municipality is very much the economic driver of the district, including as it does the town of Krugersdorp.

Krugersdorp has considerable manufacturing capacity and has a motor-sports racing track that attracts international drag-racing events. Tourism in the district is mostly located within the surrounds of Mogale City. Significant attractions include the Cradle of Humankind, the Magalies Meander, the Sterkfontein caves and
the Krugersdorp Game Reserve.

Profiles of Johannesburg and Tshwane appear on in a separate article.

Intelligent investment
The Gauteng Provincial Government has embarked on a project to attract smart investment to the province.

The aim is to realign the manufacturing sector away from traditional heavy industry and low value-added production towards sophisticated, high-value-added production. Diversification of the industrial base and a focus on value-addition and export are key principles. The Gauteng Department of Economic Development has unveiled a new strategy, the Gauteng Advanced Manufacturing Sector Key Action Plan (Gamskap).

Gamskap aims to intervene in a way that revitalises resource-based and advanced manufacturing growth in the province whileat the same time integrating SMMEs. Seven sectors have been identified:

• Capital equipment
• Electro-technical industry
• White and durable goods
• Mining
• Automotive
• Agri-processing
• Metals-based industries