city of tshwane by region - teda2017-12-20 · city of tshwane by region the city is divided into...

City of Tshwane by region

The City is divided into seven administrative and functional regions that have been created to assist

with a multidimensional approach to improve service delivery. The Regionalisation Model has

assisted the City to better organise, coordinate and align the interaction between government and the

people.

The Human Development Index (HDI) is a composite relative index used to compare human

development across population groups or regions. HDI is the combination of three basic dimensions

of human development: a long and healthy life, knowledge and a decent standard of living. This index

is applied across the regions. The HDI can assume a maximum value of 1, indicating a very high level

of human development. It has a minimum value of 0, indicating no human development.

The HDI for the City of Tshwane is 13,6 percentage points higher than the national average. Each

region in Tshwane has a higher recorded HDI than the national average with Region 4 having the

biggest difference of 22,6 percentage points and Region 1 the smallest 4,5 percentage points. All the

regions in the Tshwane also have significantly higher population densities except for regions 5 and 7.

Each region will now be discussed in turn.

Figure 1: Human Development Index and population density (2012)

Source: Global Insight

0,62 0,71

0,65

0,68 0,72

0,76 0,68 0,74

0,69

43 466 1664 384 1345 887 60 660 71 0,0%

13,6%

4,5% 8,8%

15,4% 22,6%

8,9%

18,0% 10,3%

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

0

200

400

600

800

1000

1200

1400

1600

1800

NationalTotal

City ofTshwane

Region 1(old North

West)

Region 2(old North

East)

Region 3(old Central

Western)

Region 4(old

Southern)

Region 5(old Nokeng

tsaTaemane)

Region 6(old

Eastern)

Region 7(old

Kungwini)

Peo

ple

per

km

2

Human Development Index (HDI) Population density (number of people per km²) Difference in HDI

Figure 2: Regional expenditure and population of City of Tshwane


Figure 31 shows the regions’ and City’s population as well as the expenditure by region. From this it

can be observed that at a regional level expenditure is the highest in Region 6 followed by regions 3

and 4. The per capita expenditure is the highest in Region 4 (see figure 32) followed by Region 6.

Both figure 31 and 32 points to the fact that the City of Tshwane has a large consumer base and

subsequently a large market size.

Figure 3: Regional per capita expenditure


840 279

351 396 627 995

390 108 94 795

620 826

121 695

3 047 094

0

500 000

1 000 000

1 500 000

2 000 000

2 500 000

3 000 000

3 500 000

Region 1(old

NorthWest)

Region 2(old

NorthEast)

Region 3(old

CentralWestern)

Region 4(old

Southern)

Region 5(old

Nokengtsa

Taemane)

Region 6(old

Eastern)

Region 7(old

Kungwini)

City ofTshwane

0

50 000 000

100 000 000

150 000 000

200 000 000

250 000 000P

op

ula

tio

n

Exp

end

itu

re

Population Total expenditure

44,81

63,30

75,15

120,64

59,33

96,53

77,59 75,20

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

Region 1 (oldNorth West)

Region 2 (oldNorth East)

Region 3 (oldCentral

Western)

Region 4 (oldSouthern)

Region 5 (oldNokeng tsaTaemane)

Region 6 (oldEastern)

Region 7 (oldKungwini)

City ofTshwane

Ran

d (

R 1

00

0)

Per capita expenditure

Region 1

Map 1: Position of Region 1 in Tshwane

Situated in the north-western part of the City, the region includes agricultural holdings, industrial

zones (such as the auto cluster Rosslyn), and residential suburbs and townships. The many low-

income settlements make this the most densely populated (1664 p/km2) region in Tshwane at 28%,

with the largest youth bulge and with the highest number of persons without an income. The region

hosts the Zone of Choice – a strategic investment focus area and a catalyst for development of the

northern areas of the City.

When comparing the location quotient of Tshwane to that of Region 1 it can be observed that the

more prominent economic activities in the region are manufacturing, electricity, construction, transport

and community services. In Region 1 the location quotients of electricity, manufacturing and

community services exceeds that of the City of Tshwane average, indicating a concentration of these

sectors in this region (see figure 33).

Figure 4: Location quotients of Region 1


Agriculture

MiningManufacturing

Electricity

Construction

TradeTranspo

rtFinance

Community

services

City of Tshwane 0.17 0.16 0.89 0.74 1.32 0.93 1.14 1.13 1.33

Region 1 (old North West) 0.14 0.07 1.26 1.77 1.22 0.88 1.00 0.81 1.47

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

Loca

tio

n Q

uo

tien

t

Region 2


Characterised by low-density (348 p/km2) urban settlements and limited economic activities, although

host to the small Babelegi Industrial Park, the region is known for its tourist attractions. It houses 12%

of Tshwane’s population and requires significant infrastructure upgrading. Seen as a catalyst for such

upgrades and investment, the region is host to the Rainbow Junction development, a mixed use

economic node located 6 km north of the CBD. The City is looking to crowd in public and private

sector investment by leading investment in socio-economic infrastructure in the Hammanskraal

business district. In Region 2 there is a significant concentration of manufacturing, which is the

highest concentration across all regions (see figure 40), followed by electricity, construction and the

transport activity as seen in figure 34. There is a slight concentration of mining and agriculture

activities in the region in comparison with the City’s location quotient.



Agriculture

MiningManufac

turingElectricit

yConstruc

tionTrade

Transport

FinanceCommu

nityservices

City of Tshwane 0.17 0.16 0.89 0.74 1.32 0.93 1.14 1.13 1.33

Region 2 (old North East) 0.35 0.20 1.63 1.51 1.58 0.88 1.28 0.93 0.95

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

Loca

tio

n Q

uo

tien

t

Region 3


This region includes the Tshwane central business district (CBD), as well as Brooklyn and Hatfield. It

consists of the inner capital core, the administrative heartland of government, institutions of higher

learning, as well as research and knowledge centres. It accommodates two of the current three

Gautrain stations in Tshwane and the first phase of the Tshwane Rapid Transit (TRT) system, thus

making it an interchange for various public transport modes. The region contributes the most in terms

of regional GVA and is home to the second largest number of persons employed in the formal sector.

Modernising and revitalising the inner capital core forms an integral part of the City’s vision of

remaking of the capital city.



The region has a significant concentration of community services and a marginally higher trade sector

than Tshwane’s average, which holds with expectations as this region includes the CBD where

financial, business and government services are situated.

Agriculture

MiningManufacturin

g

Electricity

Construction

TradeTransp

ortFinance

Community

services

City of Tshwane 0.17 0.16 0.89 0.74 1.32 0.93 1.14 1.13 1.33

Region 3 (old Central Western) 0.12 0.10 0.74 0.53 1.27 0.96 1.22 1.06 1.49

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Loca

tio

n Q

uo

tien

t

City of Tshwane Region 3 (old Central Western)

Region 4


As one of the more affluent areas with the highest household income among Tshwane’s regions,

Region 4 borders on the City of Johannesburg, Ekurhuleni and Mogale City. The region is an

important corridor linking Midrand (Johannesburg) to the Centurion business district. It hosts the

Aerosat and Centurion Aviation Village (CAV), and is dominated by activities in the finance and

business services, government services, manufacturing and trade sectors, as well as smart industries

and business tourism. Given its demographics, the region has attracted office and retail developments

in the past few years. A key project for developing the region further is the African Gateway project.

The economic concentration in the region is trade and finance (see figure 36). In this region the

mining sector is marginally higher than in Tshwane due to the Lyttelton dolomite-mine situated on

Botha Avenue just north of the N1.



Agriculture

MiningManufac

turingElectricit

yConstruc

tionTrade

Transport

FinanceCommu

nityservices

City of Tshwane 0.17 0.16 0.89 0.74 1.32 0.93 1.14 1.13 1.33

Region 4 (old Southern) 0.13 0.20 0.84 0.51 1.32 0.96 1.02 1.34 1.20

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Loca

tio

n Q

uo

tien

t

City of Tshwane Region 4 (old Southern)

Region 5


With only 3% of Tshwane’s population (60 p/km2), yet the largest geographical area, this region is

rural and characterised by agriculture, mining (Cullinan) and tourism. It has the least number of

formally employed persons, contributes the least to regional GVA, and requires infrastructure

upgrades and new investments in basic service infrastructure, such as water and sanitation. The

region’s development focus will be on Cullinan, Refilwe and Rayton, with the City of Tshwane

investing in infrastructure upgrades to support future economic activity of the region.



The presence of the Petra Cullinan Diamond Mine, established in 1903 and one of the oldest diamond

mines in South Africa, is one of the world's most celebrated diamond mines. It earned its place in

history with the discovery of the Cullinan Diamond in 1905, which to date is the largest rough diamond

ever found. The success of the mine did not stop there, since then the mine has “…produced just

under 800 stones of greater than 100 carats, over 130 stones weighing more than 200 carats and

more than a quarter of all the world's diamonds of greater than 400 carats. It is also the world's only

significant source of truly rare and highly valuable blue diamonds” (Petra Diamonds, 2014). It provides

this region with a mining quotient of 1,86, which is significantly higher than the Tshwane quotient (see

figure 37). There is also a slightly higher manufacturing and agriculture quotient than the Tshwane

quotient indicating a marginal concentration of manufacturing and agriculture in the region.

Agriculture

MiningManufacturing

Electricity

Construction

TradeTranspo

rtFinance

Community

services

City of Tshwane 0.17 0.16 0.89 0.74 1.32 0.93 1.14 1.13 1.33

Region 5 (old Nokeng tsa Taemane) 0.28 1.86 0.92 0.44 1.23 0.74 0.93 1.11 0.92

0.000.200.400.600.801.001.201.401.601.802.00

Loca

tio

n Q

uo

tien

t

City of Tshwane Region 5 (old Nokeng tsa Taemane)

Region 6


As a popular area for retail and businesses, this eastern region is the second largest region by

population, the fastest growing region in 2012, and is one of the more affluent areas, with the most

number of formally employed persons in Tshwane. It has the second highest average household

income, and its south-eastern region has the highest per capita income in Tshwane. Road

development in the region has been lagging land development. Retail, office, commercial,

warehousing, wholesale and industrial as well as strategic land use facilities are located in the region.

With a concentration of research and development institutions this region is also known as the

knowledge belt. Developments around Menlyn in particular make this region a critical node for future

development. Further developments that the City is expected to drive are that of the Mamelodi

business district and township tourism. The region has a higher concentration of construction,

transport and finance employment that the Tshwane average (see figure 38).


Region 7


Although agriculture makes an insignificant contribution to the region’s output and to Tshwane’s GDP,

Region 7 has some of the best farming land in Gauteng. This is further supported by the significantly

high location quotient for agriculture in Region 7. The regional economy is based on manufacturing,

services, finance and trade. Tourism is a small but growing sector. As the second smallest region by

Agriculture

MiningManufac

turingElectricit

yConstruc

tionTrade

Transport

FinanceCommun

ityservices

City of Tshwane 0.17 0.16 0.89 0.74 1.32 0.93 1.14 1.13 1.33

Region 6 (old Eastern) 0.14 0.12 0.77 0.51 1.47 0.91 1.21 1.33 1.22

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Loca

tio

n Q

uo

tien

t

City of Tshwane Region 6 (old Eastern)

population (71 p/km2), yet the second largest by geographical land area, the region is largely rural. It

is strategically positioned, forming part of the Maputo Corridor. The City will continue to invest in light

industries in Ekandustria and Bronkhorstspruit, looking to support manufacturing, small business as

well as agro-processed products for the export market.


Figure 11: Location quotients across all regions

Looking at the industry location quotients broken down across regions it is observed that the highest

agriculture and finance concentration is found in Region 7, followed by Region 2. The highest

concentration of mining employment is found in Region 5 and Region 7. Region 2 and Region 1 have

the highest manufacturing and electricity location quotients, while Region 2 also has the highest

Agriculture

MiningManufact

uringElectricity

Construction

Trade Transport FinanceCommuni

tyservices

City of Tshwane 0.17 0.16 0.89 0.74 1.32 0.93 1.14 1.13 1.33

Region 7 (old Kungwini) 1.78 0.54 0.97 0.47 1.07 0.69 0.71 1.64 0.91

0.00

0.200.40

0.600.80

1.00

1.20

1.401.60

1.80

2.00

City of Tshwane Region 7 (old Kungwini)

Agriculture

MiningManufacturing

Electricity

Construction

TradeTranspo

rtFinance

Community

services

City of Tshwane 0.17 0.16 0.89 0.74 1.32 0.93 1.14 1.13 1.33

Region 1 (old North West) 0.14 0.07 1.26 1.77 1.22 0.88 1.00 0.81 1.47

Region 2 (old North East) 0.35 0.20 1.63 1.51 1.58 0.88 1.28 0.93 0.95

Region 3 (old Central Western) 0.12 0.10 0.74 0.53 1.27 0.96 1.22 1.06 1.49

Region 4 (old Southern) 0.13 0.20 0.84 0.51 1.32 0.96 1.02 1.34 1.20

Region 5 (old Nokeng tsa Taemane) 0.28 1.86 0.92 0.44 1.23 0.74 0.93 1.11 0.92

Region 6 (old Eastern) 0.14 0.12 0.77 0.51 1.47 0.91 1.21 1.33 1.22

Region 7 (old Kungwini) 1.78 0.54 0.97 0.47 1.07 0.69 0.71 1.64 0.91

0.000.200.400.600.801.001.201.401.601.802.00

Loca

tio

n Q

uo

tien

t

construction and transport location quotients. Region 4 and Region 3 have the highest trade

concentration followed by Region 6. Region 3 and Region 1 are the biggest employers in the services

sector, followed by Region 6 (see figure 40).

Figure 12: Tshwane by region

GVA-R, 2012

(2005

constant

prices, '000s)

GVA-R (%

share),

2012

GVA-R

growth,

2012 (%)

Population

by Region

Regional

Population

(% share)

Regional

household

(% share)

Average

annual

household

income

Persons

employed in

formal sector

Region 1 R 21 671 697 12% 2,0% 819 294 28% 25% R 136 245 133 508

Region 2 R 10 586 961 6% 3,4% 345 362 12% 10% R 193 098 62 804

Region 3 R 73 661 776 42% 2,8% 610 719 20% 21% R 217 068 467 978

Region 4 R 32 161 650 18% 3,2% 372 631 13% 14% R 352 764 190 604

Region 5 R 2 505 127 1% 1,0% 91 636 3% 3% R 186 822 14 608

Region 6 R 31 740 180 18% 3,7% 603 410 21% 22% R 272 894 210 104

Region 7 R 2 735 819 2% -5,2% 118 049 4% 3% R 221 163 24 223

TOTAL

R 175 063

210 100% 2,78%

2 961 100

100% 100% -

1 103 829

Source: Vision 2055, City of Tshwane, Global Insight

Figure 13: Regional geography of the City of Tshwane

Source: City of Tshwane

Figure 14: Priority investment centres and economic growth centres

city of tshwane by region - teda2017-12-20 · city of tshwane by region the city is divided into...

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