Gauteng Growth & Development Agency Macro business Intelligence
WHAT TO EXPECT IN THIS BRIEF
This brief summarises the following
- A brief background of BRICS
- Ease of Doing Business within BRICS
- South Africa and Gauteng’s trade and Investment relation with the BRICS bloc.
- Tarde opportunities and SA Goods with the highest export potential in the BRICS
- BRICS companies invested in SA
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Description
As we wrap-up the week, it’s always interesting to get reflect on some of the sentiment’s you’ve shared on the Open Line. One thing we’ve noticed is you anger and frustration against government, be it a minister implicated in corruption, politicians implicated in corruption being sworn into parliament or issues of crime. But then, what about us as South Africans, what is our responsibility in fixing our country and turn things around in our communities? How do we not put too much expectation on the shoulders of government?
Guest: Tshepo Matseba – Managing Director at Reputation 1st Group and Strategic Partner at Ebony + Ivory Integrated Advertising Agency.
Guest: Lorenzo Davids – CEO of the Development Impact Fund and The Justice Fund
A bold call to foster sustainable economic development and contribute to the economic development of Gauteng and inevitably, South Africa.
The Gauteng Growth and Development Agency (GGDA) continues to harness opportunities to drive economic growth, facilitate trade, and foster investment in the Gauteng City Region. The organisation’s mandate is clear: to ensure that the province of Gauteng not only continues to provide the financial muscle that South Africa needs to meet its economic goals.
Gauteng: The Economic Powerhouse
Gauteng is undoubtedly the engine room of South Africa‘s economy. Our province boasts the highest nominal per capita GDP at R151,800, with the Western Cape following at R129,800. Despite slower nominal per capita GDP growth rates compared to other regions, Gauteng’s economic significance cannot be overstated. Our province has accounted for 0.9 percentage points of the national compound growth rate of 2.3% and contributed 41% to South Africa’s real GDP growth since 1996, surpassing the combined contributions of KwaZulu-Natal, the Western Cape, and the Eastern Cape.
The Gauteng city region, comprising key metropolitan areas; Johannesburg, Tshwane, and Ekurhuleni, is particularly noteworthy. As of September 2023, Gauteng’s economic output reached R1.56 trillion, accounting for 34% of the country’s total economic output. This is equivalent to the combined GDP of KwaZulu-Natal, the Western Cape, and the Free State. Moreover, Gauteng’s economy has expanded by 0.9% from its pre-pandemic levels, making it the third fastest-growing economy in the country.
Gauteng is the epicentre for growth and South Africa’s economic engine that serves as a significant launching pad for local and international businesses into African markets. There are currently 15.2 million people living in Gauteng. This is projected to grow to 18 million by 2030 and increase to be- tween 22 and 25 million by 2050. As the principle economic hub in South Africa, Gauteng Province is uniquely positioned to be a beacon for the goal of inclusive growth. It is also the province where exponential possibilities emerge.
Dynamism coexists with disparities, making the province one of the wealthiest city regions in Africa. Gauteng is the “leading financial nerve centre and manufacturing hub of sub-Saharan Africa with a contribution of 35% to South Africa’s GDP. This is not only a gateway to an integrating and ever more prosperous continent, but also a model for city region development in Africa and beyond. Gauteng is also home to the biggest and busiest airport on the continent, OR Tambo which facilitates the movement of over 21 million passengers annually, plus cargo, to all corners of the earth, including the major African centres, OR Tambo is the gateway to wherever anyone needs to go.
The Role of GGDA: Driving Sustainable Growth
The Gauteng Growth and Development Agency (GGDA) is the implementation arm of the Gauteng Department of Economic Development tasked with leading facilitating and managing sustainable job creation and inclusive economic growth and development in the Gauteng Metropolis Region. Through its subsidiaries, the GGDA has forged partnerships and created ecosystems that promote economic development and improve the competitiveness of Gauteng.
Moving Forward: Multifaceted Approach for Environmentally Sustainable Growth
To navigate these challenges and leverage our strengths we must adopt a multifaceted Plan: To handle these Problems and Construct our opportunities there is a need to put into practice a multiple perspective approach.
Enhancing Public-Private Partnerships: By fostering collaborations between the public and private sectors, we can pool resources and expertise to drive infrastructural development and economic growth.
Investing in Renewable Energy: Addressing power shortages through investment in renewable energy sources can stabilize our secondary and primary sectors, fostering more consistent growth.
Promoting Inclusive Growth: Ensuring that economic growth benefits all residents, particularly the marginalized, through targeted policies and programs.
Leveraging Technology and Innovation: Embracing technological advancements and innovation can drive productivity and create new economic opportunities.
Strengthening Regional Integration: Enhancing economic ties with neighbouring provinces and countries can open up new markets and opportunities for growth.
Conclusion
The eighth African economic outlook report revealed that South Africa has experienced an improvement of the real GDP from the year 1996 up to the year 2022 by 79%. Nevertheless, the growth in per capita GDP has been much slower, and therefore, the issue of inequality in terms of the distribution of the GDP can be seen. The COVID pandemic also exposed Gauteng as one of the critical drivers towards economic recovery and advancement in South Africa, but structural economic challenges and declining public expenditures are problematic for the region.
Insights supplied by the Gauteng Growth and Development Agency (GGDA); the implementation arm of the Gauteng Department of Economic Development, tasked with leading, facilitating and managing sustainable job creation and inclusive economic growth and development in the Gauteng City Region.
A stable, strong Gauteng economy is good for South Africa and great for investors
During the 6th administration (2019-2023), Gauteng has seen substantial foreign direct investment (FDI) from 261 foreign companies, amounting to R133.1 billion and creating an estimated 23 120 direct jobs.
The annual breakdown showcases significant capital inflows, with the highest investment of R43.2 billion in 2022, followed by R34.2 billion in 2019, R24.5 billion in 2021, R21.5 billion in 2020, and R9.7 billion in 2023. Key contributors include Ford South Africa, which has consistently invested across the years, and significant investments from Vantage Data Centers, Dimension Data Holdings, and Heineken South Africa.
Despite challenges such as the global pandemic, Gauteng’s proactive approach to attracting FDI has bolstered its economic resilience and job market, positioning the province as a pivotal industrial and financial hub in South Africa.
Additionally, as an affirmation of the region’s dominance, noteworthy multinationals and Fortune 500 companies such as Walmart, Sony, Hyundai, Mercedes Benz, BMW, Honda, Huawei and Bosch have regional headquarters offices in Gauteng, making it the largest presence of multinational companies in sub-Saharan Africa.
At the heart of creating Gauteng’s enabling investor-friendly ecosystem, the InvestSA Gauteng one-stop-shop is a vital partner for investors looking to establish or expand their operations in Gauteng, providing essential support and facilitating a smooth investment journey.
The GGDA-operated one-stop shop provides investors with services which help streamline and expedite the investment process.
Source:https://www.citizen.co.za/business/ripple-effect-investment-in-gauteng-is-a-win-win/
Covering a land area of just 18 176 km² within Africa’s vast 30.37-million square kilometre land mass, the province of Gauteng punches far above its weight in terms of impact.
So named and developed because of its rich gold reserves, Gauteng remains a hub for business growth and prosperity nearly 140 years after the first gold rush in the region. Today, Gauteng’s ‘gold’ is its modern infrastructure, thriving business environment and skilled and educated citizens.
As the preferred first stop for air cargo and visitors to South Africa, Gauteng is directly connected to the rest of Africa and to global economies. The province’s modern logistics infrastructure has long supported bilateral trade in raw materials and goods, while its expansive manufacturing and warehousing capacity has made the province an industrial powerhouse. Gauteng’s top five imports from Africa are nickel, precious stones, mineral ores, sugar and tobacco, while the province’s top five exports to Africa are capital equipment, mineral fuels, vehicles, electrical machinery, and plastics. Africa also shines as a destination market for 86% of the photographic equipment, 78% of the fertilizer, and 65% of the manufacturing equipment shipped from Gauteng. Additionally, Gauteng remains a key manufacturing market for the continent, exporting 54% of pharmaceutical goods and 50% of electrical equipment to the continent.
Since 2017, South Africa‘s total trade with Africa has reached R2.9-trillion – driven largely by Gauteng. Gauteng alone accounts for over 60% of the total value of goods and services exported from South Africa to the rest of Africa, and 55% of the goods and services imported from the rest of Africa to South Africa, and these volumes continue growing.
Gauteng’s top ten export markets in Africa, accounting for 84% of our intra-Africa exports, are Mozambique, Nigeria, Ghana, Zimbabwe, Mauritius, the Democratic Republic of Congo, Kenya, Tanzania, Angola and Zambia, while 92% of the province’s intra-Africa imports are from Nigeria, Mozambique, Kenya, Botswana, Zambia, Angola, Ghana, Zimbabwe, Namibia and Tanzania.
Since 2017, Gauteng enterprises have also been Africa‘s largest intra-Africa investors, with R314.8-billion in outward foreign direct investment creating thousands of jobs.
Despite these impressive and mutually beneficial trade figures, Gauteng plans to expand and diversify its trade with Africa. An important growth area is the digital economy. As home to numerous internationally recognised tertiary education institutions, scores of multinational regional offices, a highly skilled and educated knowledge workforce, advanced high speed communications infrastructure, and the bulk of Africa‘s data centres, Gauteng is positioned as a key centre for trade in digital products and services.
As an ever-growing and continually evolving globally competitive city region, Gauteng is an innovative and thriving hub for trade and investment with the rest of Africa.
As we celebrate 30 years of freedom in South Africa, Gauteng stands ready to strengthen our already-robust economic ties and partnerships with pan-Africa for the prosperity of all.
Insights supplied by the Gauteng Growth and Development Agency (GGDA); the implementation arm of the Gauteng Department of Economic Development, tasked with leading, facilitating and managing sustainable job creation and inclusive economic growth and development in the Gauteng City Region.
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