ALL YOU NEED TO KNOW ABOUT THE FIVE ECONOMIC CORRIDORS IN GAUTENG

ALL YOU NEED TO KNOW ABOUT THE FIVE ECONOMIC CORRIDORS IN GAUTENG

In 2015, during the State of the Province Address, Premier David Makhura announced the Gauteng government intended interventions to help address unemployment, poverty and inequality in Gauteng. “The Gauteng City Region’s space and the economy will be configured into five development corridors that will have distinct industries and different comparative advantages”, then said Premier Makhura.

The plans announced on the five corridors were as follows:

  1. The Central Development Corridor, which would be anchored around the City of Johannesburg as the hub of financial services; ICT and pharmaceutical
  2. The Eastern Development Corridor, which would be anchored around the economy of the Ekurhuleni Metro as the hub of manufacturing, logistics and transport
  3. The Northern Development Corridor, which would be anchored around Tshwane as South Africa’s administrative capital city and the hub of the automotive sector; research & development; innovation and the knowledge-based
  4. The Western Corridor, which would encompass the economy of the West Rand district and the creation of new industries, new economic nodes and new
  5. The Southern Corridor, which would encompass the economy of the Sedibeng district and the creation of new industries, new economic nodes and new

Despite the advent of the Covid-19 virus pandemic and its destruction to the world economy inducing a recession in South Africa, there has been significant progress made towards that promise and the five development corridors are in existence and growing.

Achievements thus far place the Gauteng Province as an attractive investment hub in South Africa for investors on the continent, locally and abroad. The Gauteng City-Region ticks potential investors’ boxes as it provides the following investor climate to all investors:

  • An investor-friendly environment
  • Good infrastructure and facilities
  • Low land and commercial building costs
  • Work towards building world-class road, rail and air networks
  • A significant pool of a young and highly skilled labour force
  • Access to electricity which is amongst the cheapest in the world
  • Functional national institutions that protect investors’ rights
  • Clear and consistent economic policies that align with national policies The five development corridors are structured as follows:
  1. Central Corridor

 This is Africa’s financial and technological nerve centre. The corridor boasts key real-estate developments in Sandton, Rosebank, Waterfall in Midrand as well as Steyn City and Riversands in Fourways. Moreover, the Randburg and Lanseria areas serve as the corridor’s major economic nodes.

Future plans for the Central Corridor include:

  • The development of the Braamfontein/Auckland Park Innovation Route,
  • Construction of the Provincial Government Precinct,
  • Regeneration of the Inner-city and other Central Business Districts (CBD) and
  • The steady regeneration of the inner city has been achieved through the release of derelict buildings to the private

In the pipeline is the redevelopment of universities, continued revitalisation of the Township Industrial Parks and the acceleration of the Township Economy Development programme.

  1. Northern Corridor

 The Northern Corridor is located in the City of Tshwane, the capital of the Republic. Its main economic drivers are the automotive manufacturing industry, research and development, Aerospace and Defence Industries as well as innovation.

In collaboration with the government as well the private sector, the GGDA is investing in key economy-boosting activities which include:

  • The Automotive SEZ;
  • Tshwane Auto City;
  • Menlyn Maine Development;
  • High-Tech SEZ;
  • Consolidation and regeneration of existing areas such as the Central Business District, Centurion and Silverton areas;
  • Infrastructure investment to revitalise townships and create economic opportunities;
  • Expansion of the Innovation Hub (TIH) and contributing towards the vision of building; an innovation ecosystem in Gauteng;
  1. Eastern Corridor

 The Eastern Corridor is home to the OR Tambo International Airport SEZ (ORTIA SEZ) is located in Ekurhuleni with a focus on agro-processing, Jewellery manufacturing and mineral beneficiation as well as the development of hydrogen fuel cell technology.

  1. Western Corridor

 The goals for the Western Corridor involve diversifying the West Rand economy from mining to a hub of agri-business and agro-processing, renewable energy generation as well as tourism boosting interventions. This will be achieved with the development of an agri-Industrial park & logistics hub for agro-processing.

  1. Southern Corridor

 The Southern Corridor represents the Sedibeng district and the Vaal Triangle. Both areas have historically depended on the steel industry that experienced a collapse a few years back.

There is now an active shift away from the corridor’s historical overreliance on the steel industry. The Southern Corridor’s economy is already diversifying and now includes tourism, entertainment, agro-processing and logistics.

Furthermore, the development of the new Vaal River City (hydro polis) in both the Gauteng and Free State-side of the Vaal River will unlock the potential of the waterfront developments in the Emfuleni and Midvaal areas; this is also the site of AB InBev’s investment.

Another focus area is to continue unlocking the agricultural potential of Sedibeng as the food basket of the Gauteng City Region. The GGDA works closely with key stakeholders whose contribution will further ensure the success of the Southern corridor. These include the private sector, SOEs and universities who help direct infrastructure initiatives as well as human capital development interventions towards the same vision.

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