Gauteng

Although it is the smallest of the nine provinces, Gauteng is the powerhouse of South Africa and the heart of its commercial business and industrial sectors.

Johannesburg, nicknamed “Egoli” (Place of Gold), is the capital of the province and a city of contrasts. Mine-dumps and headgear stand proud as symbols of its rich past, while modern architecture rubs shoulders with examples of 19thcentury engineering prowess. Gleaming sky - scrapers contrast with Indian bazaars and African muti (medicine) shops, where traditional healers dispense advice and traditional medicine.

Gauteng continues to strengthen its position as the economic engine of the country and the continent. Continuing the trend of sustained growth over the past 10 years, it reached a growth rate of 5,6% in the fourth quarter of 2004.

The three most important sectors contributing to GDPR are finance, real estate and business services, manufacturing and general-government services.

Sustained growth has led to a steady reduction in unemployment. According to the Labour Force Survey, unemployment in Gauteng declined from 28,2% in March 2001 to 22,6% in March 2007.

According to the University of South Africa’s (Unisa) Bureau of Market Research, the average personal income of Gauteng residents increased from R248 564 to R327 211 between 2001 and 2006.

In line with the strategy to build a smart province, the tertiary sector has expanded significantly and contributes at least 60,8% to growth. Gauteng accounts for the bulk of all employees’ remuneration in the country, at 47,7%, and is responsible for 50,4% of all company turnover.

Johannesburg accounts for 40% of the economy of Gauteng and enjoys its unchallenged status of being the economic capital of the country and the subcontinent.

Tourism continues to receive focus as a priority growth sector in Gauteng. Gauteng’s share of the growth in national tourism has remained constant at about 50% of all international tourists to South Africa, and the share in domestic tourism stands at 20%. The majority (68%) of these domestic travellers are people visiting friends and relatives.

A pillar of Gauteng’s economic success has been public investment in strategic economic infra - structure, which has stimulated private-sector investment, as well as growth and job creation in key projects and sectors such as business tourism, logistics infrastructure, manufacturing and ICT. Through the work done by the Gauteng Economic Development Agency and the Gauteng Shared Services Centre, the province has attracted 27 local and international companies to set up their operations here. The companies invested R506 million in the economy, with a potential to generate more than 4 900 jobs.

Gauteng is also the financial-services capital of Africa. More than 70 foreign banks have their head offices here, as do at least the same number of South African banks, stockbrokers and insurance giants.

The province blends cultures, colours and firstand third-world traditions in a spirited mix that is flavoured by many foreign influences.

Most overseas visitors enter South Africa via OR Tambo International Airport.

South of Johannesburg is Soweto, devel oped as a township for black people under the apartheid system. Most of the struggle against apartheid was fought in and from Soweto, which is estimated to be inhabited by over two million people. Soweto is a city of enterprise and cultural interaction.

It is also a popular tourist destination with sites such as Kliptown, where the Freedom Charter was drawn up; the home of former President Nelson Mandela; the Hector Petersen Memorial site; and restaurants and shopping malls. It boasts one of the largest public hospitals on the continent, the Chris Hani-Baragwanath Hospital.

Some 50 km north of Johannesburg lies Pretoria, dominated by government services and the diplomatic corps of foreign representatives in the country.

Pretoria is the administrative capital of South Africa and home to the Union Buildings. Pretoria, also known as the Jacaranda City, is renowned for its colourful gardens, shrubs and trees, particularly beautiful in spring when some 50 000 flowering jacaranda trees envelop the avenues in mauve. The city developed at a more sedate pace than Johannesburg, and town planners had the foresight to include an abundance of open space. Pretoria has more than 100 parks, including bird sanctuaries and nature reserves.

An air of history pervades much of central Pretoria, especially Church Square, around which the city has grown. Many buildings of historical and architectural importance have been retained or restored to their former splendour.

The industrial area of Rosslyn and the townships of Soshanguve and GaRankuwa are situated north of Pretoria. Cullinan, known for its diamonds, lies to the east. Other important Gauteng towns include Krugersdorp and Roodepoort on the West Rand, and Germiston, Springs, Boksburg, Benoni, Brakpan and Kempton Park on the East Rand.

Vanderbijlpark and Vereeniging in the south of the province are major industrial centres, while Heidelberg, Nigel and Bronkhorstspruit to the east are of agricultural importance.

Although the province is highly urbanised and industrialised, it contains wetlands of international importance, such as Blesbokspruit near Springs.

The people

Gauteng is the most densely populated province in South Africa. It houses more than 9,6 million of the country’s people (Mid-Year Population Estimates, 2007). The level of urbanisation is 97%.

The province houses some of the most important educational and health centres in the country. Pretoria boasts the largest residential university in South Africa, the University of Pretoria, and what is believed to be the largest correspondence university in the world, Unisa.

In addition, Gauteng is home to leading research institutions such as the Council for Scientific and Industrial Research, the Agricultural Research Council, Onderstepoort Veterinary Institute and various universities. More than 60% of South Africa’s research and development (R&D) takes place in Gauteng.

According to the 2001 Census findings, only 8,4% of adults in the province have no formal education.

Johannesburg has two residential universities, namely the University of the Witwatersrand and the University of Johannesburg. There are also several teacher-training colleges, technical colleges and universities of technology in the province.

Manufacturing

The manufacturing sector in Gauteng includes over 9 300 firms, employing more than 600 000 people. Industries that have contributed significantly to this output are basic iron and steel; fabricated and metal products; food; machinery, electrical machinery, appliances and electrical supplies; vehicle parts and accessories; and chemical products.

Technology

A large number of institutions engaged in R&D and innovation choose Gauteng as their preferred site of operation. The Innovation Hub buildings are fully occupied with a waiting list for accommodation.

By mid-2007, Cisco Systems had indicated an interest in establishing a technology centre in the hub. The collaboration between Gauteng and the Department of Science and Technology has resulted in the province being included as part of the key programmes under the Co-operation Framework on Innovation Systems between Finland and South Africa (Cofisa). The 30-month Cofisa programme will focus on capacity development of key stakeholders and knowledge transfer between the first and second economies.

Agriculture and industry

Gauteng’s agricultural sector is geared to provide the cities and towns of the province with daily fresh produce, including dairy products, vegetables, fruit, meat, eggs and flowers.

A large area of the province falls within the so-called “Maize Triangle”. The districts of Bronkhorstspruit, Cullinan and Heidelberg hold important agricultural land, where ground-nuts, sunflowers, cotton and sorghum are produced.

This summer-rainfall area has hot summers and cold winters with frost. Hail is common during the summer thunderstorms.

Gauteng is an integrated industrial complex with major areas of economic activity in three subregional areas, namely the Vaal Triangle; the East, West and Central Rand; and Pretoria.

The Vaal Triangle has a strong manufacturing sector; the West Rand concentrates on primary mining; and the Central Witwatersrand is dominated by the manufacturing and finance sectors, with mining capital playing a major role.

All sectors rely heavily on the Vaal Dam (on the Vaal River), from where water is piped across the province.

Agriculture made up a small share of the provincial economy and accounted for R2,441 billion of the GDPR (at current prices) in 2004. Important agricultural products include selected grain crops, certain vegetables, herbs and flowers.

Food, food processing and beverages make up around R9,9 billion of GGP. There are about 4 000 food-processing companies operating in South Africa, of which roughly half are based in Gauteng. These companies employ around 50 000 of the estimated 183 000 people working in the sector.

The competitive trade areas which are being explored include: organics, essential oils, packaging, floriculture, medicinal plants, natural remedies and health foods. High-value niche crops include the nutritious njugo bean, morogo and cowpeas.

Most steel in South Africa is produced and consumed in Gauteng. South Africa is also one of the top-10 primary producers of aluminium in the world. The value of this industry in Gauteng is worth about US$20 million. Johannesburg houses the JSE Limited, the largest securities exchange in Africa.

2010 World Cup

Soccer City, near Soweto, Johannesburg, will host the final match of the 2010 World Cup. It will accommodate 94 700 soccer fans. Ellis Park in Johannesburg, the venue of the 1995 Rugby World Cup final, will undergo a major renovation before the 2010 World Cup. It will have 61 000 seats.

Loftus Versfeld Stadium (50 000 seats) in Pretoria will also host 2010 World Cup games. Some R40 million was set aside in 2007/08 for the rehabilitation of the R21 highway to improve connectivity between Pretoria and the OR Tambo International Airport.

In 2006/07, phase one of the refurbishment of George Thabe in Sharpeville, Sinaba in Daveyton and HM Pitje stadiums in Mamelodi was completed. Phase two of the Sinaba and HM Pitje stadiums was expected to be completed at the end of the 2007/08 financial year. These stadiums will be used as practice venues for the tournament.

The Mary Fitzgerald Square in Newtown were to be turned into a fan park for the Telkom Challenge matches in July 2007.

The province has won the right to host SoccerEx, the largest football business exhibition in the world, over the next three years. It provides an international platform to showcase the province’s readiness to host the 2010 World Cup.

Source: South Africa Yearbook 2007/08
Editor: D Burger. Government Communication and Information System