gauteng economic outlook and the role of tshwane in the gcr 20 august 2012 by matodzi rathumbu...

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Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

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Page 1: Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

Gauteng Economic Outlook and the Role of Tshwane in the GCR

20 August 2012

By

Matodzi Rathumbu

Gauteng Department of Economic Development

Recent global developments

bull Global economic activity is weakening after picking up in 1Q rsquo12 a ldquosoft patchrdquo but the risk of another recession remains significant

bull Manufacturing activity a key driver of global economy is weak

bull A pattern of global growth characterised by

ndash Growth in the US and emerging economies is positive but the pace of growth is weak

ndash Europe and the UK are contracting

ndash Emerging economies remain the leading growth drivers

bull Key risks

ndash Fiscal difficulties in peripheral Eurozone countries ndash spreading to core economies

ndash Unemployment rates remain high

The Eurozone sovereign debt crisis

bull Several European governments particularly those in the Eurozone currency union are facing debt repayment difficulties

bull These economies are characterised by

ndash High government indebtedness

ndash Structurally weak economies which are uncompetitive

ndash Weak economic growth

ndash Low tax collections

ndash High unemployment rates

bull As a result of these difficulties some of these countries Greece Portugal and Spain have had to turn to the European bailout fund for funds to meet their immediate debt repayment obligations and restructure their debts Italy will also be looking for a bailout soon given its weak economy

bull Internationally the European troubles have resulted in weak growth in other parts of the world due to global trade linkages

bull Implications for South Africa amp Gauteng as a Province

ndash Europe is our key trading partner with two-way trade at 30

ndash Our mineral manufacturing and agricultural exports are destined for Europe

ndash Global commodity prices have dropped due to weak global economic conditions

Gautengrsquos Economic Profile

bullGauteng comprises 14 of RSA land massbull contribute 34 to the national GDPbullhas 112 million people of RSA 50 millionbullContributes 10 to Africarsquos GDPbullIs the 5th largest economy after Nigeria Egypt RSA AlgeriabullIs the economic and Industrial Hub of the African Continent

bull 34 of South Africas GDP

GDP 59 higher on a per capita basis

bull Home to ~ 20 of South Africarsquos population

bull South Africas strengths and challenges are amplified in Gauteng ndash opportunity to be a leader in innovation

bull Gauteng contributes 33 of GHG emissions and power demand

bull Gauteng hosts more than 40 of South Africas SMMEs

bull Account for ~ 60 of RampD

bull Fibre network in most cities

Gauteng Value Proposition

Gauteng City Region Spatial footprint

Gauteng Chasing after a Moving Target

EC 50087

FS 21773

GP 367076

KZN 59625

LP 131879

MP 57035

NC 3645

NW 51886

WC -8854

Net Migration ToFrom Gauteng by Provinces 2006-2011

bullBetween 2006 amp 2011

Gauteng experienced a net

inflow of approximately 367076

people

bullHighest net migration came

from Limpopo

bullImmigration growth rates

shows a positive rate for all

population groups except for

the White population group

thus signifying an outflow of the

White population from Gauteng

Source Stats SA Mid-Year Population Estimates 2011

Employment National Perspective-Contrsquod

The provinces employment levels indicate that Western Cape experienced huge job losses to the tune of 32 000 followed by Gauteng province which lost 15 000 jobs(quarter to quarter change) Mpumalanga was the province with the highest jobs gained at 40 000 while Kwa Zulu Natal gained the least at 1 000 jobs The year-on-year comparisons shows Gauteng province as the highest province with job gains of 160 000 which account for 50 percent of the national job gain Free State and Eastern Cape were the only provinces to experience job losses losing 44 000 and 11 000 respectively

Unemployment Rate by Province

A comparison of unemployment rates between the provinces indicate that there was a decrease in the unemployment rates in the majority of the provinces in Q22012 compared to Q12012 The only provinces with increased unemployment rate were Eastern Cape Free State and Western Cape with 286 percent 329 percent and 232 percent respectively

Employment in Gauteng Province

Employment in Gauteng Province-Contnrsquodbull Gauteng formal sector employment contracted by 6 000 jobs while the

informal sector employment decreased by 12 000 jobs between Q12012 and Q22012

bull The community and social services created 76 000 followed by finance agriculture sectors with 25 000 and 7 000 jobs respectively

bull Most sectors experienced job losses the sector were most jobs were shed were the trade sector at 93 000 and manufacturing sector at 19 000

bull In Q2 2011 the manufacturing sector lost 82 000 jobs but gained in the fourth quarter of 2011 but has experienced 19 000 job losses in the second quarter of 2012

bull Construction lost 54 000 jobs in the third quarter of 2011 was steady in the fourth quarter of 2011 and gained 4 000 jobs in Q2 2012

Employment by profession 2002 and 2012

Growth Potential of Gauteng Macro EconomyPotential Unemployment Potential GDP growth

Potential of Gauteng Economy to Expand

Gauteng Industrial Policy Framework

Gauteng Regional Sectoral Comparative Advantage

It is also important to understand the comparative advantages that Gauteng has from a sectoral perspective This can be described using a Location Quotient which simply provides a relative indication of whether a sector is competitive in relation to the rest of the South African economy

GautengrsquosMetrorsquos

Agric Mining Manuf Electr Construction Transport Trade Finance Comm-Service

Ekurhuleni 018 019 181 114 127 127 087 096 083

COJ 012 027 106 107 130 130 121 130 099

Tshwane 015 008 093 077 140 140 099 109 143

17

Economic Performance-Gauteng Regions

GDP-R by Municipalities 2001 amp 2010

Source IHS Global Insight 2012

Total Employed versus Strict unemployment

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signiifant ndash with provincial statistics for the 1st quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signi1048768 cant ndash with provincial statistics for the 1048768 rst quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011 ndash

State of the art ICT technologyState of the art ICT technology

Automotive Supply ParkAutomotive Supply Park

Research amp Development Support (CSIR Innovation

Hub TIA)

Research amp Development Support (CSIR Innovation

Hub TIA)

Leading training institutesLeading training institutes

Favorable cost of doing business

Favorable cost of doing business

Home to 190 component suppliers

Home to 190 component suppliers

Established Road Rail amp Air infrastructure

Established Road Rail amp Air infrastructure

Outstanding Business Services (Conference venues)

Outstanding Business Services (Conference venues)

World class Financial amp Banking Systems

World class Financial amp Banking Systems

Variety of tourist attractionsVariety of tourist attractions

Politica Capital of South AfricaPolitica Capital of South Africa

National Government Support (Dti DED DOLDSampT)

National Government Support (Dti DED DOLDSampT)

Automotive Industry Development CentreAutomotive Industry Development Centre

Largest portion of skilled workforce

Largest portion of skilled workforce

Home to 4 of the 8 OEM Assemblers

Home to 4 of the 8 OEM Assemblers

Gauteng Government Support (GEDA GEP Blue IQ)

Gauteng Government Support (GEDA GEP Blue IQ)

The City of Tshwane in the Gauteng City Region

Have the second highest Number of Embassies after

Washington DC

Have the second highest Number of Embassies after

Washington DC

Gauteng Department of Economic Development Projects in Tshwane

Gauteng has five flagship projects that are geared into enhancing its status as an export and investment Gateway to AfricaSouthern Africa

bull The Tshwane Auto City-Submitted to the dti as an SEZ Dinokeng Africa in One Day Game Reserve - Located in an economically depressed part of

the province with limited other tourism amenities or means of economic development is a Big Five game reserve facility that optimises Gautengrsquos gateway status and opportunity to diversify its tourism attractions

Roodeplaat Dam and Cullinan Tourism Hubs - Part of three tourism hubs that were identified for development in the Dinokeng area Roodeplaat Dam fits with the concept of developing waterways as a tourism attraction in Gauteng and serves as an important pull factor to the Dinokeng Game Reserve

The Centurion Aerospace Village-A Hi Tech Advanced Manufacturing Aeromechanical and Defence cluster situated in the City of Tshwane and is an infrastructure project for the establishment of an Aeronautical Space and Defence Industry support mechanism to develop related sectors

The common thread in the Gauteng flagship projects is that of high-end manufacturing inland custom area status requires high skills content requires high levels of FDI has an African market as a focus for demand of goods and services

Gauteng Department of Economic Development Projects in Tshwane-Contnrsquod

The Innovation Hub is Africas first internationally accredited Science Park and a full member of the International Association of Science Parks a global network of science parks

Some of the more recent and new programmes of The Innovation Hub includeo Gauteng Accelerator Programme Biosciences Programme a bio-entrepreneurship programme

that supports innovations in biosciences in collaboration with Emory University Atlanta Georgia

o mLab an initiative in partnership with Nokia Finnish Government CSIR and the Worldbank which supports skills development and entrepreneurship in mobile applications taking advantage of the penetration of mobile technology as opposed to computers given the broadband penetration rates

o Gauteng Innovation Competition to promote strategic innovation procurement in government to address service delivery challenges across all spheres of government and foster inclusive innovation to ensure both social and economic development

o Climate Innovation Centre developed in partnership with the Worldbank InfoDev to support businesses and innovations in climate change and clean technology and

o Bio-Science Park developed in partnership with Gauteng Department of Agriculture and Rural Development (GDARD) to support biosciences RampD and commercialisation in Gauteng including synergistic programmes collaborations with but not limited to University of Pretoria CSIR and Agricultural Research Council

Conclusionbull Through intergovernmental forums such as IGR MINMEC etc we

continue to engage the national and local government level so that policy and strategies that are developed support regional development

bull As Gauteng we are making efforts to ensure that our region is known globally and we have signed investments agreements with Katanga Province (DRC) Ontario (Canada) Lombardy (Italy) and Chongqing (PRC)

bull We will continue to market the province to the African continent using all the intergovernmental forums available and introduce investors operating from Gauteng base to the African market

THE END

THE END

QUESTIONSREMARKS

  • Gauteng Economic Outlook and the Role of Tshwane in the GCR
Page 2: Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

Recent global developments

bull Global economic activity is weakening after picking up in 1Q rsquo12 a ldquosoft patchrdquo but the risk of another recession remains significant

bull Manufacturing activity a key driver of global economy is weak

bull A pattern of global growth characterised by

ndash Growth in the US and emerging economies is positive but the pace of growth is weak

ndash Europe and the UK are contracting

ndash Emerging economies remain the leading growth drivers

bull Key risks

ndash Fiscal difficulties in peripheral Eurozone countries ndash spreading to core economies

ndash Unemployment rates remain high

The Eurozone sovereign debt crisis

bull Several European governments particularly those in the Eurozone currency union are facing debt repayment difficulties

bull These economies are characterised by

ndash High government indebtedness

ndash Structurally weak economies which are uncompetitive

ndash Weak economic growth

ndash Low tax collections

ndash High unemployment rates

bull As a result of these difficulties some of these countries Greece Portugal and Spain have had to turn to the European bailout fund for funds to meet their immediate debt repayment obligations and restructure their debts Italy will also be looking for a bailout soon given its weak economy

bull Internationally the European troubles have resulted in weak growth in other parts of the world due to global trade linkages

bull Implications for South Africa amp Gauteng as a Province

ndash Europe is our key trading partner with two-way trade at 30

ndash Our mineral manufacturing and agricultural exports are destined for Europe

ndash Global commodity prices have dropped due to weak global economic conditions

Gautengrsquos Economic Profile

bullGauteng comprises 14 of RSA land massbull contribute 34 to the national GDPbullhas 112 million people of RSA 50 millionbullContributes 10 to Africarsquos GDPbullIs the 5th largest economy after Nigeria Egypt RSA AlgeriabullIs the economic and Industrial Hub of the African Continent

bull 34 of South Africas GDP

GDP 59 higher on a per capita basis

bull Home to ~ 20 of South Africarsquos population

bull South Africas strengths and challenges are amplified in Gauteng ndash opportunity to be a leader in innovation

bull Gauteng contributes 33 of GHG emissions and power demand

bull Gauteng hosts more than 40 of South Africas SMMEs

bull Account for ~ 60 of RampD

bull Fibre network in most cities

Gauteng Value Proposition

Gauteng City Region Spatial footprint

Gauteng Chasing after a Moving Target

EC 50087

FS 21773

GP 367076

KZN 59625

LP 131879

MP 57035

NC 3645

NW 51886

WC -8854

Net Migration ToFrom Gauteng by Provinces 2006-2011

bullBetween 2006 amp 2011

Gauteng experienced a net

inflow of approximately 367076

people

bullHighest net migration came

from Limpopo

bullImmigration growth rates

shows a positive rate for all

population groups except for

the White population group

thus signifying an outflow of the

White population from Gauteng

Source Stats SA Mid-Year Population Estimates 2011

Employment National Perspective-Contrsquod

The provinces employment levels indicate that Western Cape experienced huge job losses to the tune of 32 000 followed by Gauteng province which lost 15 000 jobs(quarter to quarter change) Mpumalanga was the province with the highest jobs gained at 40 000 while Kwa Zulu Natal gained the least at 1 000 jobs The year-on-year comparisons shows Gauteng province as the highest province with job gains of 160 000 which account for 50 percent of the national job gain Free State and Eastern Cape were the only provinces to experience job losses losing 44 000 and 11 000 respectively

Unemployment Rate by Province

A comparison of unemployment rates between the provinces indicate that there was a decrease in the unemployment rates in the majority of the provinces in Q22012 compared to Q12012 The only provinces with increased unemployment rate were Eastern Cape Free State and Western Cape with 286 percent 329 percent and 232 percent respectively

Employment in Gauteng Province

Employment in Gauteng Province-Contnrsquodbull Gauteng formal sector employment contracted by 6 000 jobs while the

informal sector employment decreased by 12 000 jobs between Q12012 and Q22012

bull The community and social services created 76 000 followed by finance agriculture sectors with 25 000 and 7 000 jobs respectively

bull Most sectors experienced job losses the sector were most jobs were shed were the trade sector at 93 000 and manufacturing sector at 19 000

bull In Q2 2011 the manufacturing sector lost 82 000 jobs but gained in the fourth quarter of 2011 but has experienced 19 000 job losses in the second quarter of 2012

bull Construction lost 54 000 jobs in the third quarter of 2011 was steady in the fourth quarter of 2011 and gained 4 000 jobs in Q2 2012

Employment by profession 2002 and 2012

Growth Potential of Gauteng Macro EconomyPotential Unemployment Potential GDP growth

Potential of Gauteng Economy to Expand

Gauteng Industrial Policy Framework

Gauteng Regional Sectoral Comparative Advantage

It is also important to understand the comparative advantages that Gauteng has from a sectoral perspective This can be described using a Location Quotient which simply provides a relative indication of whether a sector is competitive in relation to the rest of the South African economy

GautengrsquosMetrorsquos

Agric Mining Manuf Electr Construction Transport Trade Finance Comm-Service

Ekurhuleni 018 019 181 114 127 127 087 096 083

COJ 012 027 106 107 130 130 121 130 099

Tshwane 015 008 093 077 140 140 099 109 143

17

Economic Performance-Gauteng Regions

GDP-R by Municipalities 2001 amp 2010

Source IHS Global Insight 2012

Total Employed versus Strict unemployment

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signiifant ndash with provincial statistics for the 1st quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signi1048768 cant ndash with provincial statistics for the 1048768 rst quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011 ndash

State of the art ICT technologyState of the art ICT technology

Automotive Supply ParkAutomotive Supply Park

Research amp Development Support (CSIR Innovation

Hub TIA)

Research amp Development Support (CSIR Innovation

Hub TIA)

Leading training institutesLeading training institutes

Favorable cost of doing business

Favorable cost of doing business

Home to 190 component suppliers

Home to 190 component suppliers

Established Road Rail amp Air infrastructure

Established Road Rail amp Air infrastructure

Outstanding Business Services (Conference venues)

Outstanding Business Services (Conference venues)

World class Financial amp Banking Systems

World class Financial amp Banking Systems

Variety of tourist attractionsVariety of tourist attractions

Politica Capital of South AfricaPolitica Capital of South Africa

National Government Support (Dti DED DOLDSampT)

National Government Support (Dti DED DOLDSampT)

Automotive Industry Development CentreAutomotive Industry Development Centre

Largest portion of skilled workforce

Largest portion of skilled workforce

Home to 4 of the 8 OEM Assemblers

Home to 4 of the 8 OEM Assemblers

Gauteng Government Support (GEDA GEP Blue IQ)

Gauteng Government Support (GEDA GEP Blue IQ)

The City of Tshwane in the Gauteng City Region

Have the second highest Number of Embassies after

Washington DC

Have the second highest Number of Embassies after

Washington DC

Gauteng Department of Economic Development Projects in Tshwane

Gauteng has five flagship projects that are geared into enhancing its status as an export and investment Gateway to AfricaSouthern Africa

bull The Tshwane Auto City-Submitted to the dti as an SEZ Dinokeng Africa in One Day Game Reserve - Located in an economically depressed part of

the province with limited other tourism amenities or means of economic development is a Big Five game reserve facility that optimises Gautengrsquos gateway status and opportunity to diversify its tourism attractions

Roodeplaat Dam and Cullinan Tourism Hubs - Part of three tourism hubs that were identified for development in the Dinokeng area Roodeplaat Dam fits with the concept of developing waterways as a tourism attraction in Gauteng and serves as an important pull factor to the Dinokeng Game Reserve

The Centurion Aerospace Village-A Hi Tech Advanced Manufacturing Aeromechanical and Defence cluster situated in the City of Tshwane and is an infrastructure project for the establishment of an Aeronautical Space and Defence Industry support mechanism to develop related sectors

The common thread in the Gauteng flagship projects is that of high-end manufacturing inland custom area status requires high skills content requires high levels of FDI has an African market as a focus for demand of goods and services

Gauteng Department of Economic Development Projects in Tshwane-Contnrsquod

The Innovation Hub is Africas first internationally accredited Science Park and a full member of the International Association of Science Parks a global network of science parks

Some of the more recent and new programmes of The Innovation Hub includeo Gauteng Accelerator Programme Biosciences Programme a bio-entrepreneurship programme

that supports innovations in biosciences in collaboration with Emory University Atlanta Georgia

o mLab an initiative in partnership with Nokia Finnish Government CSIR and the Worldbank which supports skills development and entrepreneurship in mobile applications taking advantage of the penetration of mobile technology as opposed to computers given the broadband penetration rates

o Gauteng Innovation Competition to promote strategic innovation procurement in government to address service delivery challenges across all spheres of government and foster inclusive innovation to ensure both social and economic development

o Climate Innovation Centre developed in partnership with the Worldbank InfoDev to support businesses and innovations in climate change and clean technology and

o Bio-Science Park developed in partnership with Gauteng Department of Agriculture and Rural Development (GDARD) to support biosciences RampD and commercialisation in Gauteng including synergistic programmes collaborations with but not limited to University of Pretoria CSIR and Agricultural Research Council

Conclusionbull Through intergovernmental forums such as IGR MINMEC etc we

continue to engage the national and local government level so that policy and strategies that are developed support regional development

bull As Gauteng we are making efforts to ensure that our region is known globally and we have signed investments agreements with Katanga Province (DRC) Ontario (Canada) Lombardy (Italy) and Chongqing (PRC)

bull We will continue to market the province to the African continent using all the intergovernmental forums available and introduce investors operating from Gauteng base to the African market

THE END

THE END

QUESTIONSREMARKS

  • Gauteng Economic Outlook and the Role of Tshwane in the GCR
Page 3: Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

The Eurozone sovereign debt crisis

bull Several European governments particularly those in the Eurozone currency union are facing debt repayment difficulties

bull These economies are characterised by

ndash High government indebtedness

ndash Structurally weak economies which are uncompetitive

ndash Weak economic growth

ndash Low tax collections

ndash High unemployment rates

bull As a result of these difficulties some of these countries Greece Portugal and Spain have had to turn to the European bailout fund for funds to meet their immediate debt repayment obligations and restructure their debts Italy will also be looking for a bailout soon given its weak economy

bull Internationally the European troubles have resulted in weak growth in other parts of the world due to global trade linkages

bull Implications for South Africa amp Gauteng as a Province

ndash Europe is our key trading partner with two-way trade at 30

ndash Our mineral manufacturing and agricultural exports are destined for Europe

ndash Global commodity prices have dropped due to weak global economic conditions

Gautengrsquos Economic Profile

bullGauteng comprises 14 of RSA land massbull contribute 34 to the national GDPbullhas 112 million people of RSA 50 millionbullContributes 10 to Africarsquos GDPbullIs the 5th largest economy after Nigeria Egypt RSA AlgeriabullIs the economic and Industrial Hub of the African Continent

bull 34 of South Africas GDP

GDP 59 higher on a per capita basis

bull Home to ~ 20 of South Africarsquos population

bull South Africas strengths and challenges are amplified in Gauteng ndash opportunity to be a leader in innovation

bull Gauteng contributes 33 of GHG emissions and power demand

bull Gauteng hosts more than 40 of South Africas SMMEs

bull Account for ~ 60 of RampD

bull Fibre network in most cities

Gauteng Value Proposition

Gauteng City Region Spatial footprint

Gauteng Chasing after a Moving Target

EC 50087

FS 21773

GP 367076

KZN 59625

LP 131879

MP 57035

NC 3645

NW 51886

WC -8854

Net Migration ToFrom Gauteng by Provinces 2006-2011

bullBetween 2006 amp 2011

Gauteng experienced a net

inflow of approximately 367076

people

bullHighest net migration came

from Limpopo

bullImmigration growth rates

shows a positive rate for all

population groups except for

the White population group

thus signifying an outflow of the

White population from Gauteng

Source Stats SA Mid-Year Population Estimates 2011

Employment National Perspective-Contrsquod

The provinces employment levels indicate that Western Cape experienced huge job losses to the tune of 32 000 followed by Gauteng province which lost 15 000 jobs(quarter to quarter change) Mpumalanga was the province with the highest jobs gained at 40 000 while Kwa Zulu Natal gained the least at 1 000 jobs The year-on-year comparisons shows Gauteng province as the highest province with job gains of 160 000 which account for 50 percent of the national job gain Free State and Eastern Cape were the only provinces to experience job losses losing 44 000 and 11 000 respectively

Unemployment Rate by Province

A comparison of unemployment rates between the provinces indicate that there was a decrease in the unemployment rates in the majority of the provinces in Q22012 compared to Q12012 The only provinces with increased unemployment rate were Eastern Cape Free State and Western Cape with 286 percent 329 percent and 232 percent respectively

Employment in Gauteng Province

Employment in Gauteng Province-Contnrsquodbull Gauteng formal sector employment contracted by 6 000 jobs while the

informal sector employment decreased by 12 000 jobs between Q12012 and Q22012

bull The community and social services created 76 000 followed by finance agriculture sectors with 25 000 and 7 000 jobs respectively

bull Most sectors experienced job losses the sector were most jobs were shed were the trade sector at 93 000 and manufacturing sector at 19 000

bull In Q2 2011 the manufacturing sector lost 82 000 jobs but gained in the fourth quarter of 2011 but has experienced 19 000 job losses in the second quarter of 2012

bull Construction lost 54 000 jobs in the third quarter of 2011 was steady in the fourth quarter of 2011 and gained 4 000 jobs in Q2 2012

Employment by profession 2002 and 2012

Growth Potential of Gauteng Macro EconomyPotential Unemployment Potential GDP growth

Potential of Gauteng Economy to Expand

Gauteng Industrial Policy Framework

Gauteng Regional Sectoral Comparative Advantage

It is also important to understand the comparative advantages that Gauteng has from a sectoral perspective This can be described using a Location Quotient which simply provides a relative indication of whether a sector is competitive in relation to the rest of the South African economy

GautengrsquosMetrorsquos

Agric Mining Manuf Electr Construction Transport Trade Finance Comm-Service

Ekurhuleni 018 019 181 114 127 127 087 096 083

COJ 012 027 106 107 130 130 121 130 099

Tshwane 015 008 093 077 140 140 099 109 143

17

Economic Performance-Gauteng Regions

GDP-R by Municipalities 2001 amp 2010

Source IHS Global Insight 2012

Total Employed versus Strict unemployment

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signiifant ndash with provincial statistics for the 1st quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signi1048768 cant ndash with provincial statistics for the 1048768 rst quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011 ndash

State of the art ICT technologyState of the art ICT technology

Automotive Supply ParkAutomotive Supply Park

Research amp Development Support (CSIR Innovation

Hub TIA)

Research amp Development Support (CSIR Innovation

Hub TIA)

Leading training institutesLeading training institutes

Favorable cost of doing business

Favorable cost of doing business

Home to 190 component suppliers

Home to 190 component suppliers

Established Road Rail amp Air infrastructure

Established Road Rail amp Air infrastructure

Outstanding Business Services (Conference venues)

Outstanding Business Services (Conference venues)

World class Financial amp Banking Systems

World class Financial amp Banking Systems

Variety of tourist attractionsVariety of tourist attractions

Politica Capital of South AfricaPolitica Capital of South Africa

National Government Support (Dti DED DOLDSampT)

National Government Support (Dti DED DOLDSampT)

Automotive Industry Development CentreAutomotive Industry Development Centre

Largest portion of skilled workforce

Largest portion of skilled workforce

Home to 4 of the 8 OEM Assemblers

Home to 4 of the 8 OEM Assemblers

Gauteng Government Support (GEDA GEP Blue IQ)

Gauteng Government Support (GEDA GEP Blue IQ)

The City of Tshwane in the Gauteng City Region

Have the second highest Number of Embassies after

Washington DC

Have the second highest Number of Embassies after

Washington DC

Gauteng Department of Economic Development Projects in Tshwane

Gauteng has five flagship projects that are geared into enhancing its status as an export and investment Gateway to AfricaSouthern Africa

bull The Tshwane Auto City-Submitted to the dti as an SEZ Dinokeng Africa in One Day Game Reserve - Located in an economically depressed part of

the province with limited other tourism amenities or means of economic development is a Big Five game reserve facility that optimises Gautengrsquos gateway status and opportunity to diversify its tourism attractions

Roodeplaat Dam and Cullinan Tourism Hubs - Part of three tourism hubs that were identified for development in the Dinokeng area Roodeplaat Dam fits with the concept of developing waterways as a tourism attraction in Gauteng and serves as an important pull factor to the Dinokeng Game Reserve

The Centurion Aerospace Village-A Hi Tech Advanced Manufacturing Aeromechanical and Defence cluster situated in the City of Tshwane and is an infrastructure project for the establishment of an Aeronautical Space and Defence Industry support mechanism to develop related sectors

The common thread in the Gauteng flagship projects is that of high-end manufacturing inland custom area status requires high skills content requires high levels of FDI has an African market as a focus for demand of goods and services

Gauteng Department of Economic Development Projects in Tshwane-Contnrsquod

The Innovation Hub is Africas first internationally accredited Science Park and a full member of the International Association of Science Parks a global network of science parks

Some of the more recent and new programmes of The Innovation Hub includeo Gauteng Accelerator Programme Biosciences Programme a bio-entrepreneurship programme

that supports innovations in biosciences in collaboration with Emory University Atlanta Georgia

o mLab an initiative in partnership with Nokia Finnish Government CSIR and the Worldbank which supports skills development and entrepreneurship in mobile applications taking advantage of the penetration of mobile technology as opposed to computers given the broadband penetration rates

o Gauteng Innovation Competition to promote strategic innovation procurement in government to address service delivery challenges across all spheres of government and foster inclusive innovation to ensure both social and economic development

o Climate Innovation Centre developed in partnership with the Worldbank InfoDev to support businesses and innovations in climate change and clean technology and

o Bio-Science Park developed in partnership with Gauteng Department of Agriculture and Rural Development (GDARD) to support biosciences RampD and commercialisation in Gauteng including synergistic programmes collaborations with but not limited to University of Pretoria CSIR and Agricultural Research Council

Conclusionbull Through intergovernmental forums such as IGR MINMEC etc we

continue to engage the national and local government level so that policy and strategies that are developed support regional development

bull As Gauteng we are making efforts to ensure that our region is known globally and we have signed investments agreements with Katanga Province (DRC) Ontario (Canada) Lombardy (Italy) and Chongqing (PRC)

bull We will continue to market the province to the African continent using all the intergovernmental forums available and introduce investors operating from Gauteng base to the African market

THE END

THE END

QUESTIONSREMARKS

  • Gauteng Economic Outlook and the Role of Tshwane in the GCR
Page 4: Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

Gautengrsquos Economic Profile

bullGauteng comprises 14 of RSA land massbull contribute 34 to the national GDPbullhas 112 million people of RSA 50 millionbullContributes 10 to Africarsquos GDPbullIs the 5th largest economy after Nigeria Egypt RSA AlgeriabullIs the economic and Industrial Hub of the African Continent

bull 34 of South Africas GDP

GDP 59 higher on a per capita basis

bull Home to ~ 20 of South Africarsquos population

bull South Africas strengths and challenges are amplified in Gauteng ndash opportunity to be a leader in innovation

bull Gauteng contributes 33 of GHG emissions and power demand

bull Gauteng hosts more than 40 of South Africas SMMEs

bull Account for ~ 60 of RampD

bull Fibre network in most cities

Gauteng Value Proposition

Gauteng City Region Spatial footprint

Gauteng Chasing after a Moving Target

EC 50087

FS 21773

GP 367076

KZN 59625

LP 131879

MP 57035

NC 3645

NW 51886

WC -8854

Net Migration ToFrom Gauteng by Provinces 2006-2011

bullBetween 2006 amp 2011

Gauteng experienced a net

inflow of approximately 367076

people

bullHighest net migration came

from Limpopo

bullImmigration growth rates

shows a positive rate for all

population groups except for

the White population group

thus signifying an outflow of the

White population from Gauteng

Source Stats SA Mid-Year Population Estimates 2011

Employment National Perspective-Contrsquod

The provinces employment levels indicate that Western Cape experienced huge job losses to the tune of 32 000 followed by Gauteng province which lost 15 000 jobs(quarter to quarter change) Mpumalanga was the province with the highest jobs gained at 40 000 while Kwa Zulu Natal gained the least at 1 000 jobs The year-on-year comparisons shows Gauteng province as the highest province with job gains of 160 000 which account for 50 percent of the national job gain Free State and Eastern Cape were the only provinces to experience job losses losing 44 000 and 11 000 respectively

Unemployment Rate by Province

A comparison of unemployment rates between the provinces indicate that there was a decrease in the unemployment rates in the majority of the provinces in Q22012 compared to Q12012 The only provinces with increased unemployment rate were Eastern Cape Free State and Western Cape with 286 percent 329 percent and 232 percent respectively

Employment in Gauteng Province

Employment in Gauteng Province-Contnrsquodbull Gauteng formal sector employment contracted by 6 000 jobs while the

informal sector employment decreased by 12 000 jobs between Q12012 and Q22012

bull The community and social services created 76 000 followed by finance agriculture sectors with 25 000 and 7 000 jobs respectively

bull Most sectors experienced job losses the sector were most jobs were shed were the trade sector at 93 000 and manufacturing sector at 19 000

bull In Q2 2011 the manufacturing sector lost 82 000 jobs but gained in the fourth quarter of 2011 but has experienced 19 000 job losses in the second quarter of 2012

bull Construction lost 54 000 jobs in the third quarter of 2011 was steady in the fourth quarter of 2011 and gained 4 000 jobs in Q2 2012

Employment by profession 2002 and 2012

Growth Potential of Gauteng Macro EconomyPotential Unemployment Potential GDP growth

Potential of Gauteng Economy to Expand

Gauteng Industrial Policy Framework

Gauteng Regional Sectoral Comparative Advantage

It is also important to understand the comparative advantages that Gauteng has from a sectoral perspective This can be described using a Location Quotient which simply provides a relative indication of whether a sector is competitive in relation to the rest of the South African economy

GautengrsquosMetrorsquos

Agric Mining Manuf Electr Construction Transport Trade Finance Comm-Service

Ekurhuleni 018 019 181 114 127 127 087 096 083

COJ 012 027 106 107 130 130 121 130 099

Tshwane 015 008 093 077 140 140 099 109 143

17

Economic Performance-Gauteng Regions

GDP-R by Municipalities 2001 amp 2010

Source IHS Global Insight 2012

Total Employed versus Strict unemployment

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signiifant ndash with provincial statistics for the 1st quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signi1048768 cant ndash with provincial statistics for the 1048768 rst quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011 ndash

State of the art ICT technologyState of the art ICT technology

Automotive Supply ParkAutomotive Supply Park

Research amp Development Support (CSIR Innovation

Hub TIA)

Research amp Development Support (CSIR Innovation

Hub TIA)

Leading training institutesLeading training institutes

Favorable cost of doing business

Favorable cost of doing business

Home to 190 component suppliers

Home to 190 component suppliers

Established Road Rail amp Air infrastructure

Established Road Rail amp Air infrastructure

Outstanding Business Services (Conference venues)

Outstanding Business Services (Conference venues)

World class Financial amp Banking Systems

World class Financial amp Banking Systems

Variety of tourist attractionsVariety of tourist attractions

Politica Capital of South AfricaPolitica Capital of South Africa

National Government Support (Dti DED DOLDSampT)

National Government Support (Dti DED DOLDSampT)

Automotive Industry Development CentreAutomotive Industry Development Centre

Largest portion of skilled workforce

Largest portion of skilled workforce

Home to 4 of the 8 OEM Assemblers

Home to 4 of the 8 OEM Assemblers

Gauteng Government Support (GEDA GEP Blue IQ)

Gauteng Government Support (GEDA GEP Blue IQ)

The City of Tshwane in the Gauteng City Region

Have the second highest Number of Embassies after

Washington DC

Have the second highest Number of Embassies after

Washington DC

Gauteng Department of Economic Development Projects in Tshwane

Gauteng has five flagship projects that are geared into enhancing its status as an export and investment Gateway to AfricaSouthern Africa

bull The Tshwane Auto City-Submitted to the dti as an SEZ Dinokeng Africa in One Day Game Reserve - Located in an economically depressed part of

the province with limited other tourism amenities or means of economic development is a Big Five game reserve facility that optimises Gautengrsquos gateway status and opportunity to diversify its tourism attractions

Roodeplaat Dam and Cullinan Tourism Hubs - Part of three tourism hubs that were identified for development in the Dinokeng area Roodeplaat Dam fits with the concept of developing waterways as a tourism attraction in Gauteng and serves as an important pull factor to the Dinokeng Game Reserve

The Centurion Aerospace Village-A Hi Tech Advanced Manufacturing Aeromechanical and Defence cluster situated in the City of Tshwane and is an infrastructure project for the establishment of an Aeronautical Space and Defence Industry support mechanism to develop related sectors

The common thread in the Gauteng flagship projects is that of high-end manufacturing inland custom area status requires high skills content requires high levels of FDI has an African market as a focus for demand of goods and services

Gauteng Department of Economic Development Projects in Tshwane-Contnrsquod

The Innovation Hub is Africas first internationally accredited Science Park and a full member of the International Association of Science Parks a global network of science parks

Some of the more recent and new programmes of The Innovation Hub includeo Gauteng Accelerator Programme Biosciences Programme a bio-entrepreneurship programme

that supports innovations in biosciences in collaboration with Emory University Atlanta Georgia

o mLab an initiative in partnership with Nokia Finnish Government CSIR and the Worldbank which supports skills development and entrepreneurship in mobile applications taking advantage of the penetration of mobile technology as opposed to computers given the broadband penetration rates

o Gauteng Innovation Competition to promote strategic innovation procurement in government to address service delivery challenges across all spheres of government and foster inclusive innovation to ensure both social and economic development

o Climate Innovation Centre developed in partnership with the Worldbank InfoDev to support businesses and innovations in climate change and clean technology and

o Bio-Science Park developed in partnership with Gauteng Department of Agriculture and Rural Development (GDARD) to support biosciences RampD and commercialisation in Gauteng including synergistic programmes collaborations with but not limited to University of Pretoria CSIR and Agricultural Research Council

Conclusionbull Through intergovernmental forums such as IGR MINMEC etc we

continue to engage the national and local government level so that policy and strategies that are developed support regional development

bull As Gauteng we are making efforts to ensure that our region is known globally and we have signed investments agreements with Katanga Province (DRC) Ontario (Canada) Lombardy (Italy) and Chongqing (PRC)

bull We will continue to market the province to the African continent using all the intergovernmental forums available and introduce investors operating from Gauteng base to the African market

THE END

THE END

QUESTIONSREMARKS

  • Gauteng Economic Outlook and the Role of Tshwane in the GCR
Page 5: Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

bull 34 of South Africas GDP

GDP 59 higher on a per capita basis

bull Home to ~ 20 of South Africarsquos population

bull South Africas strengths and challenges are amplified in Gauteng ndash opportunity to be a leader in innovation

bull Gauteng contributes 33 of GHG emissions and power demand

bull Gauteng hosts more than 40 of South Africas SMMEs

bull Account for ~ 60 of RampD

bull Fibre network in most cities

Gauteng Value Proposition

Gauteng City Region Spatial footprint

Gauteng Chasing after a Moving Target

EC 50087

FS 21773

GP 367076

KZN 59625

LP 131879

MP 57035

NC 3645

NW 51886

WC -8854

Net Migration ToFrom Gauteng by Provinces 2006-2011

bullBetween 2006 amp 2011

Gauteng experienced a net

inflow of approximately 367076

people

bullHighest net migration came

from Limpopo

bullImmigration growth rates

shows a positive rate for all

population groups except for

the White population group

thus signifying an outflow of the

White population from Gauteng

Source Stats SA Mid-Year Population Estimates 2011

Employment National Perspective-Contrsquod

The provinces employment levels indicate that Western Cape experienced huge job losses to the tune of 32 000 followed by Gauteng province which lost 15 000 jobs(quarter to quarter change) Mpumalanga was the province with the highest jobs gained at 40 000 while Kwa Zulu Natal gained the least at 1 000 jobs The year-on-year comparisons shows Gauteng province as the highest province with job gains of 160 000 which account for 50 percent of the national job gain Free State and Eastern Cape were the only provinces to experience job losses losing 44 000 and 11 000 respectively

Unemployment Rate by Province

A comparison of unemployment rates between the provinces indicate that there was a decrease in the unemployment rates in the majority of the provinces in Q22012 compared to Q12012 The only provinces with increased unemployment rate were Eastern Cape Free State and Western Cape with 286 percent 329 percent and 232 percent respectively

Employment in Gauteng Province

Employment in Gauteng Province-Contnrsquodbull Gauteng formal sector employment contracted by 6 000 jobs while the

informal sector employment decreased by 12 000 jobs between Q12012 and Q22012

bull The community and social services created 76 000 followed by finance agriculture sectors with 25 000 and 7 000 jobs respectively

bull Most sectors experienced job losses the sector were most jobs were shed were the trade sector at 93 000 and manufacturing sector at 19 000

bull In Q2 2011 the manufacturing sector lost 82 000 jobs but gained in the fourth quarter of 2011 but has experienced 19 000 job losses in the second quarter of 2012

bull Construction lost 54 000 jobs in the third quarter of 2011 was steady in the fourth quarter of 2011 and gained 4 000 jobs in Q2 2012

Employment by profession 2002 and 2012

Growth Potential of Gauteng Macro EconomyPotential Unemployment Potential GDP growth

Potential of Gauteng Economy to Expand

Gauteng Industrial Policy Framework

Gauteng Regional Sectoral Comparative Advantage

It is also important to understand the comparative advantages that Gauteng has from a sectoral perspective This can be described using a Location Quotient which simply provides a relative indication of whether a sector is competitive in relation to the rest of the South African economy

GautengrsquosMetrorsquos

Agric Mining Manuf Electr Construction Transport Trade Finance Comm-Service

Ekurhuleni 018 019 181 114 127 127 087 096 083

COJ 012 027 106 107 130 130 121 130 099

Tshwane 015 008 093 077 140 140 099 109 143

17

Economic Performance-Gauteng Regions

GDP-R by Municipalities 2001 amp 2010

Source IHS Global Insight 2012

Total Employed versus Strict unemployment

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signiifant ndash with provincial statistics for the 1st quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signi1048768 cant ndash with provincial statistics for the 1048768 rst quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011 ndash

State of the art ICT technologyState of the art ICT technology

Automotive Supply ParkAutomotive Supply Park

Research amp Development Support (CSIR Innovation

Hub TIA)

Research amp Development Support (CSIR Innovation

Hub TIA)

Leading training institutesLeading training institutes

Favorable cost of doing business

Favorable cost of doing business

Home to 190 component suppliers

Home to 190 component suppliers

Established Road Rail amp Air infrastructure

Established Road Rail amp Air infrastructure

Outstanding Business Services (Conference venues)

Outstanding Business Services (Conference venues)

World class Financial amp Banking Systems

World class Financial amp Banking Systems

Variety of tourist attractionsVariety of tourist attractions

Politica Capital of South AfricaPolitica Capital of South Africa

National Government Support (Dti DED DOLDSampT)

National Government Support (Dti DED DOLDSampT)

Automotive Industry Development CentreAutomotive Industry Development Centre

Largest portion of skilled workforce

Largest portion of skilled workforce

Home to 4 of the 8 OEM Assemblers

Home to 4 of the 8 OEM Assemblers

Gauteng Government Support (GEDA GEP Blue IQ)

Gauteng Government Support (GEDA GEP Blue IQ)

The City of Tshwane in the Gauteng City Region

Have the second highest Number of Embassies after

Washington DC

Have the second highest Number of Embassies after

Washington DC

Gauteng Department of Economic Development Projects in Tshwane

Gauteng has five flagship projects that are geared into enhancing its status as an export and investment Gateway to AfricaSouthern Africa

bull The Tshwane Auto City-Submitted to the dti as an SEZ Dinokeng Africa in One Day Game Reserve - Located in an economically depressed part of

the province with limited other tourism amenities or means of economic development is a Big Five game reserve facility that optimises Gautengrsquos gateway status and opportunity to diversify its tourism attractions

Roodeplaat Dam and Cullinan Tourism Hubs - Part of three tourism hubs that were identified for development in the Dinokeng area Roodeplaat Dam fits with the concept of developing waterways as a tourism attraction in Gauteng and serves as an important pull factor to the Dinokeng Game Reserve

The Centurion Aerospace Village-A Hi Tech Advanced Manufacturing Aeromechanical and Defence cluster situated in the City of Tshwane and is an infrastructure project for the establishment of an Aeronautical Space and Defence Industry support mechanism to develop related sectors

The common thread in the Gauteng flagship projects is that of high-end manufacturing inland custom area status requires high skills content requires high levels of FDI has an African market as a focus for demand of goods and services

Gauteng Department of Economic Development Projects in Tshwane-Contnrsquod

The Innovation Hub is Africas first internationally accredited Science Park and a full member of the International Association of Science Parks a global network of science parks

Some of the more recent and new programmes of The Innovation Hub includeo Gauteng Accelerator Programme Biosciences Programme a bio-entrepreneurship programme

that supports innovations in biosciences in collaboration with Emory University Atlanta Georgia

o mLab an initiative in partnership with Nokia Finnish Government CSIR and the Worldbank which supports skills development and entrepreneurship in mobile applications taking advantage of the penetration of mobile technology as opposed to computers given the broadband penetration rates

o Gauteng Innovation Competition to promote strategic innovation procurement in government to address service delivery challenges across all spheres of government and foster inclusive innovation to ensure both social and economic development

o Climate Innovation Centre developed in partnership with the Worldbank InfoDev to support businesses and innovations in climate change and clean technology and

o Bio-Science Park developed in partnership with Gauteng Department of Agriculture and Rural Development (GDARD) to support biosciences RampD and commercialisation in Gauteng including synergistic programmes collaborations with but not limited to University of Pretoria CSIR and Agricultural Research Council

Conclusionbull Through intergovernmental forums such as IGR MINMEC etc we

continue to engage the national and local government level so that policy and strategies that are developed support regional development

bull As Gauteng we are making efforts to ensure that our region is known globally and we have signed investments agreements with Katanga Province (DRC) Ontario (Canada) Lombardy (Italy) and Chongqing (PRC)

bull We will continue to market the province to the African continent using all the intergovernmental forums available and introduce investors operating from Gauteng base to the African market

THE END

THE END

QUESTIONSREMARKS

  • Gauteng Economic Outlook and the Role of Tshwane in the GCR
Page 6: Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

Gauteng City Region Spatial footprint

Gauteng Chasing after a Moving Target

EC 50087

FS 21773

GP 367076

KZN 59625

LP 131879

MP 57035

NC 3645

NW 51886

WC -8854

Net Migration ToFrom Gauteng by Provinces 2006-2011

bullBetween 2006 amp 2011

Gauteng experienced a net

inflow of approximately 367076

people

bullHighest net migration came

from Limpopo

bullImmigration growth rates

shows a positive rate for all

population groups except for

the White population group

thus signifying an outflow of the

White population from Gauteng

Source Stats SA Mid-Year Population Estimates 2011

Employment National Perspective-Contrsquod

The provinces employment levels indicate that Western Cape experienced huge job losses to the tune of 32 000 followed by Gauteng province which lost 15 000 jobs(quarter to quarter change) Mpumalanga was the province with the highest jobs gained at 40 000 while Kwa Zulu Natal gained the least at 1 000 jobs The year-on-year comparisons shows Gauteng province as the highest province with job gains of 160 000 which account for 50 percent of the national job gain Free State and Eastern Cape were the only provinces to experience job losses losing 44 000 and 11 000 respectively

Unemployment Rate by Province

A comparison of unemployment rates between the provinces indicate that there was a decrease in the unemployment rates in the majority of the provinces in Q22012 compared to Q12012 The only provinces with increased unemployment rate were Eastern Cape Free State and Western Cape with 286 percent 329 percent and 232 percent respectively

Employment in Gauteng Province

Employment in Gauteng Province-Contnrsquodbull Gauteng formal sector employment contracted by 6 000 jobs while the

informal sector employment decreased by 12 000 jobs between Q12012 and Q22012

bull The community and social services created 76 000 followed by finance agriculture sectors with 25 000 and 7 000 jobs respectively

bull Most sectors experienced job losses the sector were most jobs were shed were the trade sector at 93 000 and manufacturing sector at 19 000

bull In Q2 2011 the manufacturing sector lost 82 000 jobs but gained in the fourth quarter of 2011 but has experienced 19 000 job losses in the second quarter of 2012

bull Construction lost 54 000 jobs in the third quarter of 2011 was steady in the fourth quarter of 2011 and gained 4 000 jobs in Q2 2012

Employment by profession 2002 and 2012

Growth Potential of Gauteng Macro EconomyPotential Unemployment Potential GDP growth

Potential of Gauteng Economy to Expand

Gauteng Industrial Policy Framework

Gauteng Regional Sectoral Comparative Advantage

It is also important to understand the comparative advantages that Gauteng has from a sectoral perspective This can be described using a Location Quotient which simply provides a relative indication of whether a sector is competitive in relation to the rest of the South African economy

GautengrsquosMetrorsquos

Agric Mining Manuf Electr Construction Transport Trade Finance Comm-Service

Ekurhuleni 018 019 181 114 127 127 087 096 083

COJ 012 027 106 107 130 130 121 130 099

Tshwane 015 008 093 077 140 140 099 109 143

17

Economic Performance-Gauteng Regions

GDP-R by Municipalities 2001 amp 2010

Source IHS Global Insight 2012

Total Employed versus Strict unemployment

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signiifant ndash with provincial statistics for the 1st quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signi1048768 cant ndash with provincial statistics for the 1048768 rst quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011 ndash

State of the art ICT technologyState of the art ICT technology

Automotive Supply ParkAutomotive Supply Park

Research amp Development Support (CSIR Innovation

Hub TIA)

Research amp Development Support (CSIR Innovation

Hub TIA)

Leading training institutesLeading training institutes

Favorable cost of doing business

Favorable cost of doing business

Home to 190 component suppliers

Home to 190 component suppliers

Established Road Rail amp Air infrastructure

Established Road Rail amp Air infrastructure

Outstanding Business Services (Conference venues)

Outstanding Business Services (Conference venues)

World class Financial amp Banking Systems

World class Financial amp Banking Systems

Variety of tourist attractionsVariety of tourist attractions

Politica Capital of South AfricaPolitica Capital of South Africa

National Government Support (Dti DED DOLDSampT)

National Government Support (Dti DED DOLDSampT)

Automotive Industry Development CentreAutomotive Industry Development Centre

Largest portion of skilled workforce

Largest portion of skilled workforce

Home to 4 of the 8 OEM Assemblers

Home to 4 of the 8 OEM Assemblers

Gauteng Government Support (GEDA GEP Blue IQ)

Gauteng Government Support (GEDA GEP Blue IQ)

The City of Tshwane in the Gauteng City Region

Have the second highest Number of Embassies after

Washington DC

Have the second highest Number of Embassies after

Washington DC

Gauteng Department of Economic Development Projects in Tshwane

Gauteng has five flagship projects that are geared into enhancing its status as an export and investment Gateway to AfricaSouthern Africa

bull The Tshwane Auto City-Submitted to the dti as an SEZ Dinokeng Africa in One Day Game Reserve - Located in an economically depressed part of

the province with limited other tourism amenities or means of economic development is a Big Five game reserve facility that optimises Gautengrsquos gateway status and opportunity to diversify its tourism attractions

Roodeplaat Dam and Cullinan Tourism Hubs - Part of three tourism hubs that were identified for development in the Dinokeng area Roodeplaat Dam fits with the concept of developing waterways as a tourism attraction in Gauteng and serves as an important pull factor to the Dinokeng Game Reserve

The Centurion Aerospace Village-A Hi Tech Advanced Manufacturing Aeromechanical and Defence cluster situated in the City of Tshwane and is an infrastructure project for the establishment of an Aeronautical Space and Defence Industry support mechanism to develop related sectors

The common thread in the Gauteng flagship projects is that of high-end manufacturing inland custom area status requires high skills content requires high levels of FDI has an African market as a focus for demand of goods and services

Gauteng Department of Economic Development Projects in Tshwane-Contnrsquod

The Innovation Hub is Africas first internationally accredited Science Park and a full member of the International Association of Science Parks a global network of science parks

Some of the more recent and new programmes of The Innovation Hub includeo Gauteng Accelerator Programme Biosciences Programme a bio-entrepreneurship programme

that supports innovations in biosciences in collaboration with Emory University Atlanta Georgia

o mLab an initiative in partnership with Nokia Finnish Government CSIR and the Worldbank which supports skills development and entrepreneurship in mobile applications taking advantage of the penetration of mobile technology as opposed to computers given the broadband penetration rates

o Gauteng Innovation Competition to promote strategic innovation procurement in government to address service delivery challenges across all spheres of government and foster inclusive innovation to ensure both social and economic development

o Climate Innovation Centre developed in partnership with the Worldbank InfoDev to support businesses and innovations in climate change and clean technology and

o Bio-Science Park developed in partnership with Gauteng Department of Agriculture and Rural Development (GDARD) to support biosciences RampD and commercialisation in Gauteng including synergistic programmes collaborations with but not limited to University of Pretoria CSIR and Agricultural Research Council

Conclusionbull Through intergovernmental forums such as IGR MINMEC etc we

continue to engage the national and local government level so that policy and strategies that are developed support regional development

bull As Gauteng we are making efforts to ensure that our region is known globally and we have signed investments agreements with Katanga Province (DRC) Ontario (Canada) Lombardy (Italy) and Chongqing (PRC)

bull We will continue to market the province to the African continent using all the intergovernmental forums available and introduce investors operating from Gauteng base to the African market

THE END

THE END

QUESTIONSREMARKS

  • Gauteng Economic Outlook and the Role of Tshwane in the GCR
Page 7: Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

Gauteng Chasing after a Moving Target

EC 50087

FS 21773

GP 367076

KZN 59625

LP 131879

MP 57035

NC 3645

NW 51886

WC -8854

Net Migration ToFrom Gauteng by Provinces 2006-2011

bullBetween 2006 amp 2011

Gauteng experienced a net

inflow of approximately 367076

people

bullHighest net migration came

from Limpopo

bullImmigration growth rates

shows a positive rate for all

population groups except for

the White population group

thus signifying an outflow of the

White population from Gauteng

Source Stats SA Mid-Year Population Estimates 2011

Employment National Perspective-Contrsquod

The provinces employment levels indicate that Western Cape experienced huge job losses to the tune of 32 000 followed by Gauteng province which lost 15 000 jobs(quarter to quarter change) Mpumalanga was the province with the highest jobs gained at 40 000 while Kwa Zulu Natal gained the least at 1 000 jobs The year-on-year comparisons shows Gauteng province as the highest province with job gains of 160 000 which account for 50 percent of the national job gain Free State and Eastern Cape were the only provinces to experience job losses losing 44 000 and 11 000 respectively

Unemployment Rate by Province

A comparison of unemployment rates between the provinces indicate that there was a decrease in the unemployment rates in the majority of the provinces in Q22012 compared to Q12012 The only provinces with increased unemployment rate were Eastern Cape Free State and Western Cape with 286 percent 329 percent and 232 percent respectively

Employment in Gauteng Province

Employment in Gauteng Province-Contnrsquodbull Gauteng formal sector employment contracted by 6 000 jobs while the

informal sector employment decreased by 12 000 jobs between Q12012 and Q22012

bull The community and social services created 76 000 followed by finance agriculture sectors with 25 000 and 7 000 jobs respectively

bull Most sectors experienced job losses the sector were most jobs were shed were the trade sector at 93 000 and manufacturing sector at 19 000

bull In Q2 2011 the manufacturing sector lost 82 000 jobs but gained in the fourth quarter of 2011 but has experienced 19 000 job losses in the second quarter of 2012

bull Construction lost 54 000 jobs in the third quarter of 2011 was steady in the fourth quarter of 2011 and gained 4 000 jobs in Q2 2012

Employment by profession 2002 and 2012

Growth Potential of Gauteng Macro EconomyPotential Unemployment Potential GDP growth

Potential of Gauteng Economy to Expand

Gauteng Industrial Policy Framework

Gauteng Regional Sectoral Comparative Advantage

It is also important to understand the comparative advantages that Gauteng has from a sectoral perspective This can be described using a Location Quotient which simply provides a relative indication of whether a sector is competitive in relation to the rest of the South African economy

GautengrsquosMetrorsquos

Agric Mining Manuf Electr Construction Transport Trade Finance Comm-Service

Ekurhuleni 018 019 181 114 127 127 087 096 083

COJ 012 027 106 107 130 130 121 130 099

Tshwane 015 008 093 077 140 140 099 109 143

17

Economic Performance-Gauteng Regions

GDP-R by Municipalities 2001 amp 2010

Source IHS Global Insight 2012

Total Employed versus Strict unemployment

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signiifant ndash with provincial statistics for the 1st quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signi1048768 cant ndash with provincial statistics for the 1048768 rst quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011 ndash

State of the art ICT technologyState of the art ICT technology

Automotive Supply ParkAutomotive Supply Park

Research amp Development Support (CSIR Innovation

Hub TIA)

Research amp Development Support (CSIR Innovation

Hub TIA)

Leading training institutesLeading training institutes

Favorable cost of doing business

Favorable cost of doing business

Home to 190 component suppliers

Home to 190 component suppliers

Established Road Rail amp Air infrastructure

Established Road Rail amp Air infrastructure

Outstanding Business Services (Conference venues)

Outstanding Business Services (Conference venues)

World class Financial amp Banking Systems

World class Financial amp Banking Systems

Variety of tourist attractionsVariety of tourist attractions

Politica Capital of South AfricaPolitica Capital of South Africa

National Government Support (Dti DED DOLDSampT)

National Government Support (Dti DED DOLDSampT)

Automotive Industry Development CentreAutomotive Industry Development Centre

Largest portion of skilled workforce

Largest portion of skilled workforce

Home to 4 of the 8 OEM Assemblers

Home to 4 of the 8 OEM Assemblers

Gauteng Government Support (GEDA GEP Blue IQ)

Gauteng Government Support (GEDA GEP Blue IQ)

The City of Tshwane in the Gauteng City Region

Have the second highest Number of Embassies after

Washington DC

Have the second highest Number of Embassies after

Washington DC

Gauteng Department of Economic Development Projects in Tshwane

Gauteng has five flagship projects that are geared into enhancing its status as an export and investment Gateway to AfricaSouthern Africa

bull The Tshwane Auto City-Submitted to the dti as an SEZ Dinokeng Africa in One Day Game Reserve - Located in an economically depressed part of

the province with limited other tourism amenities or means of economic development is a Big Five game reserve facility that optimises Gautengrsquos gateway status and opportunity to diversify its tourism attractions

Roodeplaat Dam and Cullinan Tourism Hubs - Part of three tourism hubs that were identified for development in the Dinokeng area Roodeplaat Dam fits with the concept of developing waterways as a tourism attraction in Gauteng and serves as an important pull factor to the Dinokeng Game Reserve

The Centurion Aerospace Village-A Hi Tech Advanced Manufacturing Aeromechanical and Defence cluster situated in the City of Tshwane and is an infrastructure project for the establishment of an Aeronautical Space and Defence Industry support mechanism to develop related sectors

The common thread in the Gauteng flagship projects is that of high-end manufacturing inland custom area status requires high skills content requires high levels of FDI has an African market as a focus for demand of goods and services

Gauteng Department of Economic Development Projects in Tshwane-Contnrsquod

The Innovation Hub is Africas first internationally accredited Science Park and a full member of the International Association of Science Parks a global network of science parks

Some of the more recent and new programmes of The Innovation Hub includeo Gauteng Accelerator Programme Biosciences Programme a bio-entrepreneurship programme

that supports innovations in biosciences in collaboration with Emory University Atlanta Georgia

o mLab an initiative in partnership with Nokia Finnish Government CSIR and the Worldbank which supports skills development and entrepreneurship in mobile applications taking advantage of the penetration of mobile technology as opposed to computers given the broadband penetration rates

o Gauteng Innovation Competition to promote strategic innovation procurement in government to address service delivery challenges across all spheres of government and foster inclusive innovation to ensure both social and economic development

o Climate Innovation Centre developed in partnership with the Worldbank InfoDev to support businesses and innovations in climate change and clean technology and

o Bio-Science Park developed in partnership with Gauteng Department of Agriculture and Rural Development (GDARD) to support biosciences RampD and commercialisation in Gauteng including synergistic programmes collaborations with but not limited to University of Pretoria CSIR and Agricultural Research Council

Conclusionbull Through intergovernmental forums such as IGR MINMEC etc we

continue to engage the national and local government level so that policy and strategies that are developed support regional development

bull As Gauteng we are making efforts to ensure that our region is known globally and we have signed investments agreements with Katanga Province (DRC) Ontario (Canada) Lombardy (Italy) and Chongqing (PRC)

bull We will continue to market the province to the African continent using all the intergovernmental forums available and introduce investors operating from Gauteng base to the African market

THE END

THE END

QUESTIONSREMARKS

  • Gauteng Economic Outlook and the Role of Tshwane in the GCR
Page 8: Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

Employment National Perspective-Contrsquod

The provinces employment levels indicate that Western Cape experienced huge job losses to the tune of 32 000 followed by Gauteng province which lost 15 000 jobs(quarter to quarter change) Mpumalanga was the province with the highest jobs gained at 40 000 while Kwa Zulu Natal gained the least at 1 000 jobs The year-on-year comparisons shows Gauteng province as the highest province with job gains of 160 000 which account for 50 percent of the national job gain Free State and Eastern Cape were the only provinces to experience job losses losing 44 000 and 11 000 respectively

Unemployment Rate by Province

A comparison of unemployment rates between the provinces indicate that there was a decrease in the unemployment rates in the majority of the provinces in Q22012 compared to Q12012 The only provinces with increased unemployment rate were Eastern Cape Free State and Western Cape with 286 percent 329 percent and 232 percent respectively

Employment in Gauteng Province

Employment in Gauteng Province-Contnrsquodbull Gauteng formal sector employment contracted by 6 000 jobs while the

informal sector employment decreased by 12 000 jobs between Q12012 and Q22012

bull The community and social services created 76 000 followed by finance agriculture sectors with 25 000 and 7 000 jobs respectively

bull Most sectors experienced job losses the sector were most jobs were shed were the trade sector at 93 000 and manufacturing sector at 19 000

bull In Q2 2011 the manufacturing sector lost 82 000 jobs but gained in the fourth quarter of 2011 but has experienced 19 000 job losses in the second quarter of 2012

bull Construction lost 54 000 jobs in the third quarter of 2011 was steady in the fourth quarter of 2011 and gained 4 000 jobs in Q2 2012

Employment by profession 2002 and 2012

Growth Potential of Gauteng Macro EconomyPotential Unemployment Potential GDP growth

Potential of Gauteng Economy to Expand

Gauteng Industrial Policy Framework

Gauteng Regional Sectoral Comparative Advantage

It is also important to understand the comparative advantages that Gauteng has from a sectoral perspective This can be described using a Location Quotient which simply provides a relative indication of whether a sector is competitive in relation to the rest of the South African economy

GautengrsquosMetrorsquos

Agric Mining Manuf Electr Construction Transport Trade Finance Comm-Service

Ekurhuleni 018 019 181 114 127 127 087 096 083

COJ 012 027 106 107 130 130 121 130 099

Tshwane 015 008 093 077 140 140 099 109 143

17

Economic Performance-Gauteng Regions

GDP-R by Municipalities 2001 amp 2010

Source IHS Global Insight 2012

Total Employed versus Strict unemployment

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signiifant ndash with provincial statistics for the 1st quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signi1048768 cant ndash with provincial statistics for the 1048768 rst quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011 ndash

State of the art ICT technologyState of the art ICT technology

Automotive Supply ParkAutomotive Supply Park

Research amp Development Support (CSIR Innovation

Hub TIA)

Research amp Development Support (CSIR Innovation

Hub TIA)

Leading training institutesLeading training institutes

Favorable cost of doing business

Favorable cost of doing business

Home to 190 component suppliers

Home to 190 component suppliers

Established Road Rail amp Air infrastructure

Established Road Rail amp Air infrastructure

Outstanding Business Services (Conference venues)

Outstanding Business Services (Conference venues)

World class Financial amp Banking Systems

World class Financial amp Banking Systems

Variety of tourist attractionsVariety of tourist attractions

Politica Capital of South AfricaPolitica Capital of South Africa

National Government Support (Dti DED DOLDSampT)

National Government Support (Dti DED DOLDSampT)

Automotive Industry Development CentreAutomotive Industry Development Centre

Largest portion of skilled workforce

Largest portion of skilled workforce

Home to 4 of the 8 OEM Assemblers

Home to 4 of the 8 OEM Assemblers

Gauteng Government Support (GEDA GEP Blue IQ)

Gauteng Government Support (GEDA GEP Blue IQ)

The City of Tshwane in the Gauteng City Region

Have the second highest Number of Embassies after

Washington DC

Have the second highest Number of Embassies after

Washington DC

Gauteng Department of Economic Development Projects in Tshwane

Gauteng has five flagship projects that are geared into enhancing its status as an export and investment Gateway to AfricaSouthern Africa

bull The Tshwane Auto City-Submitted to the dti as an SEZ Dinokeng Africa in One Day Game Reserve - Located in an economically depressed part of

the province with limited other tourism amenities or means of economic development is a Big Five game reserve facility that optimises Gautengrsquos gateway status and opportunity to diversify its tourism attractions

Roodeplaat Dam and Cullinan Tourism Hubs - Part of three tourism hubs that were identified for development in the Dinokeng area Roodeplaat Dam fits with the concept of developing waterways as a tourism attraction in Gauteng and serves as an important pull factor to the Dinokeng Game Reserve

The Centurion Aerospace Village-A Hi Tech Advanced Manufacturing Aeromechanical and Defence cluster situated in the City of Tshwane and is an infrastructure project for the establishment of an Aeronautical Space and Defence Industry support mechanism to develop related sectors

The common thread in the Gauteng flagship projects is that of high-end manufacturing inland custom area status requires high skills content requires high levels of FDI has an African market as a focus for demand of goods and services

Gauteng Department of Economic Development Projects in Tshwane-Contnrsquod

The Innovation Hub is Africas first internationally accredited Science Park and a full member of the International Association of Science Parks a global network of science parks

Some of the more recent and new programmes of The Innovation Hub includeo Gauteng Accelerator Programme Biosciences Programme a bio-entrepreneurship programme

that supports innovations in biosciences in collaboration with Emory University Atlanta Georgia

o mLab an initiative in partnership with Nokia Finnish Government CSIR and the Worldbank which supports skills development and entrepreneurship in mobile applications taking advantage of the penetration of mobile technology as opposed to computers given the broadband penetration rates

o Gauteng Innovation Competition to promote strategic innovation procurement in government to address service delivery challenges across all spheres of government and foster inclusive innovation to ensure both social and economic development

o Climate Innovation Centre developed in partnership with the Worldbank InfoDev to support businesses and innovations in climate change and clean technology and

o Bio-Science Park developed in partnership with Gauteng Department of Agriculture and Rural Development (GDARD) to support biosciences RampD and commercialisation in Gauteng including synergistic programmes collaborations with but not limited to University of Pretoria CSIR and Agricultural Research Council

Conclusionbull Through intergovernmental forums such as IGR MINMEC etc we

continue to engage the national and local government level so that policy and strategies that are developed support regional development

bull As Gauteng we are making efforts to ensure that our region is known globally and we have signed investments agreements with Katanga Province (DRC) Ontario (Canada) Lombardy (Italy) and Chongqing (PRC)

bull We will continue to market the province to the African continent using all the intergovernmental forums available and introduce investors operating from Gauteng base to the African market

THE END

THE END

QUESTIONSREMARKS

  • Gauteng Economic Outlook and the Role of Tshwane in the GCR
Page 9: Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

Unemployment Rate by Province

A comparison of unemployment rates between the provinces indicate that there was a decrease in the unemployment rates in the majority of the provinces in Q22012 compared to Q12012 The only provinces with increased unemployment rate were Eastern Cape Free State and Western Cape with 286 percent 329 percent and 232 percent respectively

Employment in Gauteng Province

Employment in Gauteng Province-Contnrsquodbull Gauteng formal sector employment contracted by 6 000 jobs while the

informal sector employment decreased by 12 000 jobs between Q12012 and Q22012

bull The community and social services created 76 000 followed by finance agriculture sectors with 25 000 and 7 000 jobs respectively

bull Most sectors experienced job losses the sector were most jobs were shed were the trade sector at 93 000 and manufacturing sector at 19 000

bull In Q2 2011 the manufacturing sector lost 82 000 jobs but gained in the fourth quarter of 2011 but has experienced 19 000 job losses in the second quarter of 2012

bull Construction lost 54 000 jobs in the third quarter of 2011 was steady in the fourth quarter of 2011 and gained 4 000 jobs in Q2 2012

Employment by profession 2002 and 2012

Growth Potential of Gauteng Macro EconomyPotential Unemployment Potential GDP growth

Potential of Gauteng Economy to Expand

Gauteng Industrial Policy Framework

Gauteng Regional Sectoral Comparative Advantage

It is also important to understand the comparative advantages that Gauteng has from a sectoral perspective This can be described using a Location Quotient which simply provides a relative indication of whether a sector is competitive in relation to the rest of the South African economy

GautengrsquosMetrorsquos

Agric Mining Manuf Electr Construction Transport Trade Finance Comm-Service

Ekurhuleni 018 019 181 114 127 127 087 096 083

COJ 012 027 106 107 130 130 121 130 099

Tshwane 015 008 093 077 140 140 099 109 143

17

Economic Performance-Gauteng Regions

GDP-R by Municipalities 2001 amp 2010

Source IHS Global Insight 2012

Total Employed versus Strict unemployment

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signiifant ndash with provincial statistics for the 1st quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signi1048768 cant ndash with provincial statistics for the 1048768 rst quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011 ndash

State of the art ICT technologyState of the art ICT technology

Automotive Supply ParkAutomotive Supply Park

Research amp Development Support (CSIR Innovation

Hub TIA)

Research amp Development Support (CSIR Innovation

Hub TIA)

Leading training institutesLeading training institutes

Favorable cost of doing business

Favorable cost of doing business

Home to 190 component suppliers

Home to 190 component suppliers

Established Road Rail amp Air infrastructure

Established Road Rail amp Air infrastructure

Outstanding Business Services (Conference venues)

Outstanding Business Services (Conference venues)

World class Financial amp Banking Systems

World class Financial amp Banking Systems

Variety of tourist attractionsVariety of tourist attractions

Politica Capital of South AfricaPolitica Capital of South Africa

National Government Support (Dti DED DOLDSampT)

National Government Support (Dti DED DOLDSampT)

Automotive Industry Development CentreAutomotive Industry Development Centre

Largest portion of skilled workforce

Largest portion of skilled workforce

Home to 4 of the 8 OEM Assemblers

Home to 4 of the 8 OEM Assemblers

Gauteng Government Support (GEDA GEP Blue IQ)

Gauteng Government Support (GEDA GEP Blue IQ)

The City of Tshwane in the Gauteng City Region

Have the second highest Number of Embassies after

Washington DC

Have the second highest Number of Embassies after

Washington DC

Gauteng Department of Economic Development Projects in Tshwane

Gauteng has five flagship projects that are geared into enhancing its status as an export and investment Gateway to AfricaSouthern Africa

bull The Tshwane Auto City-Submitted to the dti as an SEZ Dinokeng Africa in One Day Game Reserve - Located in an economically depressed part of

the province with limited other tourism amenities or means of economic development is a Big Five game reserve facility that optimises Gautengrsquos gateway status and opportunity to diversify its tourism attractions

Roodeplaat Dam and Cullinan Tourism Hubs - Part of three tourism hubs that were identified for development in the Dinokeng area Roodeplaat Dam fits with the concept of developing waterways as a tourism attraction in Gauteng and serves as an important pull factor to the Dinokeng Game Reserve

The Centurion Aerospace Village-A Hi Tech Advanced Manufacturing Aeromechanical and Defence cluster situated in the City of Tshwane and is an infrastructure project for the establishment of an Aeronautical Space and Defence Industry support mechanism to develop related sectors

The common thread in the Gauteng flagship projects is that of high-end manufacturing inland custom area status requires high skills content requires high levels of FDI has an African market as a focus for demand of goods and services

Gauteng Department of Economic Development Projects in Tshwane-Contnrsquod

The Innovation Hub is Africas first internationally accredited Science Park and a full member of the International Association of Science Parks a global network of science parks

Some of the more recent and new programmes of The Innovation Hub includeo Gauteng Accelerator Programme Biosciences Programme a bio-entrepreneurship programme

that supports innovations in biosciences in collaboration with Emory University Atlanta Georgia

o mLab an initiative in partnership with Nokia Finnish Government CSIR and the Worldbank which supports skills development and entrepreneurship in mobile applications taking advantage of the penetration of mobile technology as opposed to computers given the broadband penetration rates

o Gauteng Innovation Competition to promote strategic innovation procurement in government to address service delivery challenges across all spheres of government and foster inclusive innovation to ensure both social and economic development

o Climate Innovation Centre developed in partnership with the Worldbank InfoDev to support businesses and innovations in climate change and clean technology and

o Bio-Science Park developed in partnership with Gauteng Department of Agriculture and Rural Development (GDARD) to support biosciences RampD and commercialisation in Gauteng including synergistic programmes collaborations with but not limited to University of Pretoria CSIR and Agricultural Research Council

Conclusionbull Through intergovernmental forums such as IGR MINMEC etc we

continue to engage the national and local government level so that policy and strategies that are developed support regional development

bull As Gauteng we are making efforts to ensure that our region is known globally and we have signed investments agreements with Katanga Province (DRC) Ontario (Canada) Lombardy (Italy) and Chongqing (PRC)

bull We will continue to market the province to the African continent using all the intergovernmental forums available and introduce investors operating from Gauteng base to the African market

THE END

THE END

QUESTIONSREMARKS

  • Gauteng Economic Outlook and the Role of Tshwane in the GCR
Page 10: Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

Employment in Gauteng Province

Employment in Gauteng Province-Contnrsquodbull Gauteng formal sector employment contracted by 6 000 jobs while the

informal sector employment decreased by 12 000 jobs between Q12012 and Q22012

bull The community and social services created 76 000 followed by finance agriculture sectors with 25 000 and 7 000 jobs respectively

bull Most sectors experienced job losses the sector were most jobs were shed were the trade sector at 93 000 and manufacturing sector at 19 000

bull In Q2 2011 the manufacturing sector lost 82 000 jobs but gained in the fourth quarter of 2011 but has experienced 19 000 job losses in the second quarter of 2012

bull Construction lost 54 000 jobs in the third quarter of 2011 was steady in the fourth quarter of 2011 and gained 4 000 jobs in Q2 2012

Employment by profession 2002 and 2012

Growth Potential of Gauteng Macro EconomyPotential Unemployment Potential GDP growth

Potential of Gauteng Economy to Expand

Gauteng Industrial Policy Framework

Gauteng Regional Sectoral Comparative Advantage

It is also important to understand the comparative advantages that Gauteng has from a sectoral perspective This can be described using a Location Quotient which simply provides a relative indication of whether a sector is competitive in relation to the rest of the South African economy

GautengrsquosMetrorsquos

Agric Mining Manuf Electr Construction Transport Trade Finance Comm-Service

Ekurhuleni 018 019 181 114 127 127 087 096 083

COJ 012 027 106 107 130 130 121 130 099

Tshwane 015 008 093 077 140 140 099 109 143

17

Economic Performance-Gauteng Regions

GDP-R by Municipalities 2001 amp 2010

Source IHS Global Insight 2012

Total Employed versus Strict unemployment

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signiifant ndash with provincial statistics for the 1st quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signi1048768 cant ndash with provincial statistics for the 1048768 rst quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011 ndash

State of the art ICT technologyState of the art ICT technology

Automotive Supply ParkAutomotive Supply Park

Research amp Development Support (CSIR Innovation

Hub TIA)

Research amp Development Support (CSIR Innovation

Hub TIA)

Leading training institutesLeading training institutes

Favorable cost of doing business

Favorable cost of doing business

Home to 190 component suppliers

Home to 190 component suppliers

Established Road Rail amp Air infrastructure

Established Road Rail amp Air infrastructure

Outstanding Business Services (Conference venues)

Outstanding Business Services (Conference venues)

World class Financial amp Banking Systems

World class Financial amp Banking Systems

Variety of tourist attractionsVariety of tourist attractions

Politica Capital of South AfricaPolitica Capital of South Africa

National Government Support (Dti DED DOLDSampT)

National Government Support (Dti DED DOLDSampT)

Automotive Industry Development CentreAutomotive Industry Development Centre

Largest portion of skilled workforce

Largest portion of skilled workforce

Home to 4 of the 8 OEM Assemblers

Home to 4 of the 8 OEM Assemblers

Gauteng Government Support (GEDA GEP Blue IQ)

Gauteng Government Support (GEDA GEP Blue IQ)

The City of Tshwane in the Gauteng City Region

Have the second highest Number of Embassies after

Washington DC

Have the second highest Number of Embassies after

Washington DC

Gauteng Department of Economic Development Projects in Tshwane

Gauteng has five flagship projects that are geared into enhancing its status as an export and investment Gateway to AfricaSouthern Africa

bull The Tshwane Auto City-Submitted to the dti as an SEZ Dinokeng Africa in One Day Game Reserve - Located in an economically depressed part of

the province with limited other tourism amenities or means of economic development is a Big Five game reserve facility that optimises Gautengrsquos gateway status and opportunity to diversify its tourism attractions

Roodeplaat Dam and Cullinan Tourism Hubs - Part of three tourism hubs that were identified for development in the Dinokeng area Roodeplaat Dam fits with the concept of developing waterways as a tourism attraction in Gauteng and serves as an important pull factor to the Dinokeng Game Reserve

The Centurion Aerospace Village-A Hi Tech Advanced Manufacturing Aeromechanical and Defence cluster situated in the City of Tshwane and is an infrastructure project for the establishment of an Aeronautical Space and Defence Industry support mechanism to develop related sectors

The common thread in the Gauteng flagship projects is that of high-end manufacturing inland custom area status requires high skills content requires high levels of FDI has an African market as a focus for demand of goods and services

Gauteng Department of Economic Development Projects in Tshwane-Contnrsquod

The Innovation Hub is Africas first internationally accredited Science Park and a full member of the International Association of Science Parks a global network of science parks

Some of the more recent and new programmes of The Innovation Hub includeo Gauteng Accelerator Programme Biosciences Programme a bio-entrepreneurship programme

that supports innovations in biosciences in collaboration with Emory University Atlanta Georgia

o mLab an initiative in partnership with Nokia Finnish Government CSIR and the Worldbank which supports skills development and entrepreneurship in mobile applications taking advantage of the penetration of mobile technology as opposed to computers given the broadband penetration rates

o Gauteng Innovation Competition to promote strategic innovation procurement in government to address service delivery challenges across all spheres of government and foster inclusive innovation to ensure both social and economic development

o Climate Innovation Centre developed in partnership with the Worldbank InfoDev to support businesses and innovations in climate change and clean technology and

o Bio-Science Park developed in partnership with Gauteng Department of Agriculture and Rural Development (GDARD) to support biosciences RampD and commercialisation in Gauteng including synergistic programmes collaborations with but not limited to University of Pretoria CSIR and Agricultural Research Council

Conclusionbull Through intergovernmental forums such as IGR MINMEC etc we

continue to engage the national and local government level so that policy and strategies that are developed support regional development

bull As Gauteng we are making efforts to ensure that our region is known globally and we have signed investments agreements with Katanga Province (DRC) Ontario (Canada) Lombardy (Italy) and Chongqing (PRC)

bull We will continue to market the province to the African continent using all the intergovernmental forums available and introduce investors operating from Gauteng base to the African market

THE END

THE END

QUESTIONSREMARKS

  • Gauteng Economic Outlook and the Role of Tshwane in the GCR
Page 11: Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

Employment in Gauteng Province-Contnrsquodbull Gauteng formal sector employment contracted by 6 000 jobs while the

informal sector employment decreased by 12 000 jobs between Q12012 and Q22012

bull The community and social services created 76 000 followed by finance agriculture sectors with 25 000 and 7 000 jobs respectively

bull Most sectors experienced job losses the sector were most jobs were shed were the trade sector at 93 000 and manufacturing sector at 19 000

bull In Q2 2011 the manufacturing sector lost 82 000 jobs but gained in the fourth quarter of 2011 but has experienced 19 000 job losses in the second quarter of 2012

bull Construction lost 54 000 jobs in the third quarter of 2011 was steady in the fourth quarter of 2011 and gained 4 000 jobs in Q2 2012

Employment by profession 2002 and 2012

Growth Potential of Gauteng Macro EconomyPotential Unemployment Potential GDP growth

Potential of Gauteng Economy to Expand

Gauteng Industrial Policy Framework

Gauteng Regional Sectoral Comparative Advantage

It is also important to understand the comparative advantages that Gauteng has from a sectoral perspective This can be described using a Location Quotient which simply provides a relative indication of whether a sector is competitive in relation to the rest of the South African economy

GautengrsquosMetrorsquos

Agric Mining Manuf Electr Construction Transport Trade Finance Comm-Service

Ekurhuleni 018 019 181 114 127 127 087 096 083

COJ 012 027 106 107 130 130 121 130 099

Tshwane 015 008 093 077 140 140 099 109 143

17

Economic Performance-Gauteng Regions

GDP-R by Municipalities 2001 amp 2010

Source IHS Global Insight 2012

Total Employed versus Strict unemployment

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signiifant ndash with provincial statistics for the 1st quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signi1048768 cant ndash with provincial statistics for the 1048768 rst quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011 ndash

State of the art ICT technologyState of the art ICT technology

Automotive Supply ParkAutomotive Supply Park

Research amp Development Support (CSIR Innovation

Hub TIA)

Research amp Development Support (CSIR Innovation

Hub TIA)

Leading training institutesLeading training institutes

Favorable cost of doing business

Favorable cost of doing business

Home to 190 component suppliers

Home to 190 component suppliers

Established Road Rail amp Air infrastructure

Established Road Rail amp Air infrastructure

Outstanding Business Services (Conference venues)

Outstanding Business Services (Conference venues)

World class Financial amp Banking Systems

World class Financial amp Banking Systems

Variety of tourist attractionsVariety of tourist attractions

Politica Capital of South AfricaPolitica Capital of South Africa

National Government Support (Dti DED DOLDSampT)

National Government Support (Dti DED DOLDSampT)

Automotive Industry Development CentreAutomotive Industry Development Centre

Largest portion of skilled workforce

Largest portion of skilled workforce

Home to 4 of the 8 OEM Assemblers

Home to 4 of the 8 OEM Assemblers

Gauteng Government Support (GEDA GEP Blue IQ)

Gauteng Government Support (GEDA GEP Blue IQ)

The City of Tshwane in the Gauteng City Region

Have the second highest Number of Embassies after

Washington DC

Have the second highest Number of Embassies after

Washington DC

Gauteng Department of Economic Development Projects in Tshwane

Gauteng has five flagship projects that are geared into enhancing its status as an export and investment Gateway to AfricaSouthern Africa

bull The Tshwane Auto City-Submitted to the dti as an SEZ Dinokeng Africa in One Day Game Reserve - Located in an economically depressed part of

the province with limited other tourism amenities or means of economic development is a Big Five game reserve facility that optimises Gautengrsquos gateway status and opportunity to diversify its tourism attractions

Roodeplaat Dam and Cullinan Tourism Hubs - Part of three tourism hubs that were identified for development in the Dinokeng area Roodeplaat Dam fits with the concept of developing waterways as a tourism attraction in Gauteng and serves as an important pull factor to the Dinokeng Game Reserve

The Centurion Aerospace Village-A Hi Tech Advanced Manufacturing Aeromechanical and Defence cluster situated in the City of Tshwane and is an infrastructure project for the establishment of an Aeronautical Space and Defence Industry support mechanism to develop related sectors

The common thread in the Gauteng flagship projects is that of high-end manufacturing inland custom area status requires high skills content requires high levels of FDI has an African market as a focus for demand of goods and services

Gauteng Department of Economic Development Projects in Tshwane-Contnrsquod

The Innovation Hub is Africas first internationally accredited Science Park and a full member of the International Association of Science Parks a global network of science parks

Some of the more recent and new programmes of The Innovation Hub includeo Gauteng Accelerator Programme Biosciences Programme a bio-entrepreneurship programme

that supports innovations in biosciences in collaboration with Emory University Atlanta Georgia

o mLab an initiative in partnership with Nokia Finnish Government CSIR and the Worldbank which supports skills development and entrepreneurship in mobile applications taking advantage of the penetration of mobile technology as opposed to computers given the broadband penetration rates

o Gauteng Innovation Competition to promote strategic innovation procurement in government to address service delivery challenges across all spheres of government and foster inclusive innovation to ensure both social and economic development

o Climate Innovation Centre developed in partnership with the Worldbank InfoDev to support businesses and innovations in climate change and clean technology and

o Bio-Science Park developed in partnership with Gauteng Department of Agriculture and Rural Development (GDARD) to support biosciences RampD and commercialisation in Gauteng including synergistic programmes collaborations with but not limited to University of Pretoria CSIR and Agricultural Research Council

Conclusionbull Through intergovernmental forums such as IGR MINMEC etc we

continue to engage the national and local government level so that policy and strategies that are developed support regional development

bull As Gauteng we are making efforts to ensure that our region is known globally and we have signed investments agreements with Katanga Province (DRC) Ontario (Canada) Lombardy (Italy) and Chongqing (PRC)

bull We will continue to market the province to the African continent using all the intergovernmental forums available and introduce investors operating from Gauteng base to the African market

THE END

THE END

QUESTIONSREMARKS

  • Gauteng Economic Outlook and the Role of Tshwane in the GCR
Page 12: Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

Employment by profession 2002 and 2012

Growth Potential of Gauteng Macro EconomyPotential Unemployment Potential GDP growth

Potential of Gauteng Economy to Expand

Gauteng Industrial Policy Framework

Gauteng Regional Sectoral Comparative Advantage

It is also important to understand the comparative advantages that Gauteng has from a sectoral perspective This can be described using a Location Quotient which simply provides a relative indication of whether a sector is competitive in relation to the rest of the South African economy

GautengrsquosMetrorsquos

Agric Mining Manuf Electr Construction Transport Trade Finance Comm-Service

Ekurhuleni 018 019 181 114 127 127 087 096 083

COJ 012 027 106 107 130 130 121 130 099

Tshwane 015 008 093 077 140 140 099 109 143

17

Economic Performance-Gauteng Regions

GDP-R by Municipalities 2001 amp 2010

Source IHS Global Insight 2012

Total Employed versus Strict unemployment

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signiifant ndash with provincial statistics for the 1st quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signi1048768 cant ndash with provincial statistics for the 1048768 rst quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011 ndash

State of the art ICT technologyState of the art ICT technology

Automotive Supply ParkAutomotive Supply Park

Research amp Development Support (CSIR Innovation

Hub TIA)

Research amp Development Support (CSIR Innovation

Hub TIA)

Leading training institutesLeading training institutes

Favorable cost of doing business

Favorable cost of doing business

Home to 190 component suppliers

Home to 190 component suppliers

Established Road Rail amp Air infrastructure

Established Road Rail amp Air infrastructure

Outstanding Business Services (Conference venues)

Outstanding Business Services (Conference venues)

World class Financial amp Banking Systems

World class Financial amp Banking Systems

Variety of tourist attractionsVariety of tourist attractions

Politica Capital of South AfricaPolitica Capital of South Africa

National Government Support (Dti DED DOLDSampT)

National Government Support (Dti DED DOLDSampT)

Automotive Industry Development CentreAutomotive Industry Development Centre

Largest portion of skilled workforce

Largest portion of skilled workforce

Home to 4 of the 8 OEM Assemblers

Home to 4 of the 8 OEM Assemblers

Gauteng Government Support (GEDA GEP Blue IQ)

Gauteng Government Support (GEDA GEP Blue IQ)

The City of Tshwane in the Gauteng City Region

Have the second highest Number of Embassies after

Washington DC

Have the second highest Number of Embassies after

Washington DC

Gauteng Department of Economic Development Projects in Tshwane

Gauteng has five flagship projects that are geared into enhancing its status as an export and investment Gateway to AfricaSouthern Africa

bull The Tshwane Auto City-Submitted to the dti as an SEZ Dinokeng Africa in One Day Game Reserve - Located in an economically depressed part of

the province with limited other tourism amenities or means of economic development is a Big Five game reserve facility that optimises Gautengrsquos gateway status and opportunity to diversify its tourism attractions

Roodeplaat Dam and Cullinan Tourism Hubs - Part of three tourism hubs that were identified for development in the Dinokeng area Roodeplaat Dam fits with the concept of developing waterways as a tourism attraction in Gauteng and serves as an important pull factor to the Dinokeng Game Reserve

The Centurion Aerospace Village-A Hi Tech Advanced Manufacturing Aeromechanical and Defence cluster situated in the City of Tshwane and is an infrastructure project for the establishment of an Aeronautical Space and Defence Industry support mechanism to develop related sectors

The common thread in the Gauteng flagship projects is that of high-end manufacturing inland custom area status requires high skills content requires high levels of FDI has an African market as a focus for demand of goods and services

Gauteng Department of Economic Development Projects in Tshwane-Contnrsquod

The Innovation Hub is Africas first internationally accredited Science Park and a full member of the International Association of Science Parks a global network of science parks

Some of the more recent and new programmes of The Innovation Hub includeo Gauteng Accelerator Programme Biosciences Programme a bio-entrepreneurship programme

that supports innovations in biosciences in collaboration with Emory University Atlanta Georgia

o mLab an initiative in partnership with Nokia Finnish Government CSIR and the Worldbank which supports skills development and entrepreneurship in mobile applications taking advantage of the penetration of mobile technology as opposed to computers given the broadband penetration rates

o Gauteng Innovation Competition to promote strategic innovation procurement in government to address service delivery challenges across all spheres of government and foster inclusive innovation to ensure both social and economic development

o Climate Innovation Centre developed in partnership with the Worldbank InfoDev to support businesses and innovations in climate change and clean technology and

o Bio-Science Park developed in partnership with Gauteng Department of Agriculture and Rural Development (GDARD) to support biosciences RampD and commercialisation in Gauteng including synergistic programmes collaborations with but not limited to University of Pretoria CSIR and Agricultural Research Council

Conclusionbull Through intergovernmental forums such as IGR MINMEC etc we

continue to engage the national and local government level so that policy and strategies that are developed support regional development

bull As Gauteng we are making efforts to ensure that our region is known globally and we have signed investments agreements with Katanga Province (DRC) Ontario (Canada) Lombardy (Italy) and Chongqing (PRC)

bull We will continue to market the province to the African continent using all the intergovernmental forums available and introduce investors operating from Gauteng base to the African market

THE END

THE END

QUESTIONSREMARKS

  • Gauteng Economic Outlook and the Role of Tshwane in the GCR
Page 13: Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

Growth Potential of Gauteng Macro EconomyPotential Unemployment Potential GDP growth

Potential of Gauteng Economy to Expand

Gauteng Industrial Policy Framework

Gauteng Regional Sectoral Comparative Advantage

It is also important to understand the comparative advantages that Gauteng has from a sectoral perspective This can be described using a Location Quotient which simply provides a relative indication of whether a sector is competitive in relation to the rest of the South African economy

GautengrsquosMetrorsquos

Agric Mining Manuf Electr Construction Transport Trade Finance Comm-Service

Ekurhuleni 018 019 181 114 127 127 087 096 083

COJ 012 027 106 107 130 130 121 130 099

Tshwane 015 008 093 077 140 140 099 109 143

17

Economic Performance-Gauteng Regions

GDP-R by Municipalities 2001 amp 2010

Source IHS Global Insight 2012

Total Employed versus Strict unemployment

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signiifant ndash with provincial statistics for the 1st quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signi1048768 cant ndash with provincial statistics for the 1048768 rst quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011 ndash

State of the art ICT technologyState of the art ICT technology

Automotive Supply ParkAutomotive Supply Park

Research amp Development Support (CSIR Innovation

Hub TIA)

Research amp Development Support (CSIR Innovation

Hub TIA)

Leading training institutesLeading training institutes

Favorable cost of doing business

Favorable cost of doing business

Home to 190 component suppliers

Home to 190 component suppliers

Established Road Rail amp Air infrastructure

Established Road Rail amp Air infrastructure

Outstanding Business Services (Conference venues)

Outstanding Business Services (Conference venues)

World class Financial amp Banking Systems

World class Financial amp Banking Systems

Variety of tourist attractionsVariety of tourist attractions

Politica Capital of South AfricaPolitica Capital of South Africa

National Government Support (Dti DED DOLDSampT)

National Government Support (Dti DED DOLDSampT)

Automotive Industry Development CentreAutomotive Industry Development Centre

Largest portion of skilled workforce

Largest portion of skilled workforce

Home to 4 of the 8 OEM Assemblers

Home to 4 of the 8 OEM Assemblers

Gauteng Government Support (GEDA GEP Blue IQ)

Gauteng Government Support (GEDA GEP Blue IQ)

The City of Tshwane in the Gauteng City Region

Have the second highest Number of Embassies after

Washington DC

Have the second highest Number of Embassies after

Washington DC

Gauteng Department of Economic Development Projects in Tshwane

Gauteng has five flagship projects that are geared into enhancing its status as an export and investment Gateway to AfricaSouthern Africa

bull The Tshwane Auto City-Submitted to the dti as an SEZ Dinokeng Africa in One Day Game Reserve - Located in an economically depressed part of

the province with limited other tourism amenities or means of economic development is a Big Five game reserve facility that optimises Gautengrsquos gateway status and opportunity to diversify its tourism attractions

Roodeplaat Dam and Cullinan Tourism Hubs - Part of three tourism hubs that were identified for development in the Dinokeng area Roodeplaat Dam fits with the concept of developing waterways as a tourism attraction in Gauteng and serves as an important pull factor to the Dinokeng Game Reserve

The Centurion Aerospace Village-A Hi Tech Advanced Manufacturing Aeromechanical and Defence cluster situated in the City of Tshwane and is an infrastructure project for the establishment of an Aeronautical Space and Defence Industry support mechanism to develop related sectors

The common thread in the Gauteng flagship projects is that of high-end manufacturing inland custom area status requires high skills content requires high levels of FDI has an African market as a focus for demand of goods and services

Gauteng Department of Economic Development Projects in Tshwane-Contnrsquod

The Innovation Hub is Africas first internationally accredited Science Park and a full member of the International Association of Science Parks a global network of science parks

Some of the more recent and new programmes of The Innovation Hub includeo Gauteng Accelerator Programme Biosciences Programme a bio-entrepreneurship programme

that supports innovations in biosciences in collaboration with Emory University Atlanta Georgia

o mLab an initiative in partnership with Nokia Finnish Government CSIR and the Worldbank which supports skills development and entrepreneurship in mobile applications taking advantage of the penetration of mobile technology as opposed to computers given the broadband penetration rates

o Gauteng Innovation Competition to promote strategic innovation procurement in government to address service delivery challenges across all spheres of government and foster inclusive innovation to ensure both social and economic development

o Climate Innovation Centre developed in partnership with the Worldbank InfoDev to support businesses and innovations in climate change and clean technology and

o Bio-Science Park developed in partnership with Gauteng Department of Agriculture and Rural Development (GDARD) to support biosciences RampD and commercialisation in Gauteng including synergistic programmes collaborations with but not limited to University of Pretoria CSIR and Agricultural Research Council

Conclusionbull Through intergovernmental forums such as IGR MINMEC etc we

continue to engage the national and local government level so that policy and strategies that are developed support regional development

bull As Gauteng we are making efforts to ensure that our region is known globally and we have signed investments agreements with Katanga Province (DRC) Ontario (Canada) Lombardy (Italy) and Chongqing (PRC)

bull We will continue to market the province to the African continent using all the intergovernmental forums available and introduce investors operating from Gauteng base to the African market

THE END

THE END

QUESTIONSREMARKS

  • Gauteng Economic Outlook and the Role of Tshwane in the GCR
Page 14: Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

Potential of Gauteng Economy to Expand

Gauteng Industrial Policy Framework

Gauteng Regional Sectoral Comparative Advantage

It is also important to understand the comparative advantages that Gauteng has from a sectoral perspective This can be described using a Location Quotient which simply provides a relative indication of whether a sector is competitive in relation to the rest of the South African economy

GautengrsquosMetrorsquos

Agric Mining Manuf Electr Construction Transport Trade Finance Comm-Service

Ekurhuleni 018 019 181 114 127 127 087 096 083

COJ 012 027 106 107 130 130 121 130 099

Tshwane 015 008 093 077 140 140 099 109 143

17

Economic Performance-Gauteng Regions

GDP-R by Municipalities 2001 amp 2010

Source IHS Global Insight 2012

Total Employed versus Strict unemployment

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signiifant ndash with provincial statistics for the 1st quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signi1048768 cant ndash with provincial statistics for the 1048768 rst quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011 ndash

State of the art ICT technologyState of the art ICT technology

Automotive Supply ParkAutomotive Supply Park

Research amp Development Support (CSIR Innovation

Hub TIA)

Research amp Development Support (CSIR Innovation

Hub TIA)

Leading training institutesLeading training institutes

Favorable cost of doing business

Favorable cost of doing business

Home to 190 component suppliers

Home to 190 component suppliers

Established Road Rail amp Air infrastructure

Established Road Rail amp Air infrastructure

Outstanding Business Services (Conference venues)

Outstanding Business Services (Conference venues)

World class Financial amp Banking Systems

World class Financial amp Banking Systems

Variety of tourist attractionsVariety of tourist attractions

Politica Capital of South AfricaPolitica Capital of South Africa

National Government Support (Dti DED DOLDSampT)

National Government Support (Dti DED DOLDSampT)

Automotive Industry Development CentreAutomotive Industry Development Centre

Largest portion of skilled workforce

Largest portion of skilled workforce

Home to 4 of the 8 OEM Assemblers

Home to 4 of the 8 OEM Assemblers

Gauteng Government Support (GEDA GEP Blue IQ)

Gauteng Government Support (GEDA GEP Blue IQ)

The City of Tshwane in the Gauteng City Region

Have the second highest Number of Embassies after

Washington DC

Have the second highest Number of Embassies after

Washington DC

Gauteng Department of Economic Development Projects in Tshwane

Gauteng has five flagship projects that are geared into enhancing its status as an export and investment Gateway to AfricaSouthern Africa

bull The Tshwane Auto City-Submitted to the dti as an SEZ Dinokeng Africa in One Day Game Reserve - Located in an economically depressed part of

the province with limited other tourism amenities or means of economic development is a Big Five game reserve facility that optimises Gautengrsquos gateway status and opportunity to diversify its tourism attractions

Roodeplaat Dam and Cullinan Tourism Hubs - Part of three tourism hubs that were identified for development in the Dinokeng area Roodeplaat Dam fits with the concept of developing waterways as a tourism attraction in Gauteng and serves as an important pull factor to the Dinokeng Game Reserve

The Centurion Aerospace Village-A Hi Tech Advanced Manufacturing Aeromechanical and Defence cluster situated in the City of Tshwane and is an infrastructure project for the establishment of an Aeronautical Space and Defence Industry support mechanism to develop related sectors

The common thread in the Gauteng flagship projects is that of high-end manufacturing inland custom area status requires high skills content requires high levels of FDI has an African market as a focus for demand of goods and services

Gauteng Department of Economic Development Projects in Tshwane-Contnrsquod

The Innovation Hub is Africas first internationally accredited Science Park and a full member of the International Association of Science Parks a global network of science parks

Some of the more recent and new programmes of The Innovation Hub includeo Gauteng Accelerator Programme Biosciences Programme a bio-entrepreneurship programme

that supports innovations in biosciences in collaboration with Emory University Atlanta Georgia

o mLab an initiative in partnership with Nokia Finnish Government CSIR and the Worldbank which supports skills development and entrepreneurship in mobile applications taking advantage of the penetration of mobile technology as opposed to computers given the broadband penetration rates

o Gauteng Innovation Competition to promote strategic innovation procurement in government to address service delivery challenges across all spheres of government and foster inclusive innovation to ensure both social and economic development

o Climate Innovation Centre developed in partnership with the Worldbank InfoDev to support businesses and innovations in climate change and clean technology and

o Bio-Science Park developed in partnership with Gauteng Department of Agriculture and Rural Development (GDARD) to support biosciences RampD and commercialisation in Gauteng including synergistic programmes collaborations with but not limited to University of Pretoria CSIR and Agricultural Research Council

Conclusionbull Through intergovernmental forums such as IGR MINMEC etc we

continue to engage the national and local government level so that policy and strategies that are developed support regional development

bull As Gauteng we are making efforts to ensure that our region is known globally and we have signed investments agreements with Katanga Province (DRC) Ontario (Canada) Lombardy (Italy) and Chongqing (PRC)

bull We will continue to market the province to the African continent using all the intergovernmental forums available and introduce investors operating from Gauteng base to the African market

THE END

THE END

QUESTIONSREMARKS

  • Gauteng Economic Outlook and the Role of Tshwane in the GCR
Page 15: Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

Gauteng Industrial Policy Framework

Gauteng Regional Sectoral Comparative Advantage

It is also important to understand the comparative advantages that Gauteng has from a sectoral perspective This can be described using a Location Quotient which simply provides a relative indication of whether a sector is competitive in relation to the rest of the South African economy

GautengrsquosMetrorsquos

Agric Mining Manuf Electr Construction Transport Trade Finance Comm-Service

Ekurhuleni 018 019 181 114 127 127 087 096 083

COJ 012 027 106 107 130 130 121 130 099

Tshwane 015 008 093 077 140 140 099 109 143

17

Economic Performance-Gauteng Regions

GDP-R by Municipalities 2001 amp 2010

Source IHS Global Insight 2012

Total Employed versus Strict unemployment

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signiifant ndash with provincial statistics for the 1st quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signi1048768 cant ndash with provincial statistics for the 1048768 rst quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011 ndash

State of the art ICT technologyState of the art ICT technology

Automotive Supply ParkAutomotive Supply Park

Research amp Development Support (CSIR Innovation

Hub TIA)

Research amp Development Support (CSIR Innovation

Hub TIA)

Leading training institutesLeading training institutes

Favorable cost of doing business

Favorable cost of doing business

Home to 190 component suppliers

Home to 190 component suppliers

Established Road Rail amp Air infrastructure

Established Road Rail amp Air infrastructure

Outstanding Business Services (Conference venues)

Outstanding Business Services (Conference venues)

World class Financial amp Banking Systems

World class Financial amp Banking Systems

Variety of tourist attractionsVariety of tourist attractions

Politica Capital of South AfricaPolitica Capital of South Africa

National Government Support (Dti DED DOLDSampT)

National Government Support (Dti DED DOLDSampT)

Automotive Industry Development CentreAutomotive Industry Development Centre

Largest portion of skilled workforce

Largest portion of skilled workforce

Home to 4 of the 8 OEM Assemblers

Home to 4 of the 8 OEM Assemblers

Gauteng Government Support (GEDA GEP Blue IQ)

Gauteng Government Support (GEDA GEP Blue IQ)

The City of Tshwane in the Gauteng City Region

Have the second highest Number of Embassies after

Washington DC

Have the second highest Number of Embassies after

Washington DC

Gauteng Department of Economic Development Projects in Tshwane

Gauteng has five flagship projects that are geared into enhancing its status as an export and investment Gateway to AfricaSouthern Africa

bull The Tshwane Auto City-Submitted to the dti as an SEZ Dinokeng Africa in One Day Game Reserve - Located in an economically depressed part of

the province with limited other tourism amenities or means of economic development is a Big Five game reserve facility that optimises Gautengrsquos gateway status and opportunity to diversify its tourism attractions

Roodeplaat Dam and Cullinan Tourism Hubs - Part of three tourism hubs that were identified for development in the Dinokeng area Roodeplaat Dam fits with the concept of developing waterways as a tourism attraction in Gauteng and serves as an important pull factor to the Dinokeng Game Reserve

The Centurion Aerospace Village-A Hi Tech Advanced Manufacturing Aeromechanical and Defence cluster situated in the City of Tshwane and is an infrastructure project for the establishment of an Aeronautical Space and Defence Industry support mechanism to develop related sectors

The common thread in the Gauteng flagship projects is that of high-end manufacturing inland custom area status requires high skills content requires high levels of FDI has an African market as a focus for demand of goods and services

Gauteng Department of Economic Development Projects in Tshwane-Contnrsquod

The Innovation Hub is Africas first internationally accredited Science Park and a full member of the International Association of Science Parks a global network of science parks

Some of the more recent and new programmes of The Innovation Hub includeo Gauteng Accelerator Programme Biosciences Programme a bio-entrepreneurship programme

that supports innovations in biosciences in collaboration with Emory University Atlanta Georgia

o mLab an initiative in partnership with Nokia Finnish Government CSIR and the Worldbank which supports skills development and entrepreneurship in mobile applications taking advantage of the penetration of mobile technology as opposed to computers given the broadband penetration rates

o Gauteng Innovation Competition to promote strategic innovation procurement in government to address service delivery challenges across all spheres of government and foster inclusive innovation to ensure both social and economic development

o Climate Innovation Centre developed in partnership with the Worldbank InfoDev to support businesses and innovations in climate change and clean technology and

o Bio-Science Park developed in partnership with Gauteng Department of Agriculture and Rural Development (GDARD) to support biosciences RampD and commercialisation in Gauteng including synergistic programmes collaborations with but not limited to University of Pretoria CSIR and Agricultural Research Council

Conclusionbull Through intergovernmental forums such as IGR MINMEC etc we

continue to engage the national and local government level so that policy and strategies that are developed support regional development

bull As Gauteng we are making efforts to ensure that our region is known globally and we have signed investments agreements with Katanga Province (DRC) Ontario (Canada) Lombardy (Italy) and Chongqing (PRC)

bull We will continue to market the province to the African continent using all the intergovernmental forums available and introduce investors operating from Gauteng base to the African market

THE END

THE END

QUESTIONSREMARKS

  • Gauteng Economic Outlook and the Role of Tshwane in the GCR
Page 16: Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

Gauteng Regional Sectoral Comparative Advantage

It is also important to understand the comparative advantages that Gauteng has from a sectoral perspective This can be described using a Location Quotient which simply provides a relative indication of whether a sector is competitive in relation to the rest of the South African economy

GautengrsquosMetrorsquos

Agric Mining Manuf Electr Construction Transport Trade Finance Comm-Service

Ekurhuleni 018 019 181 114 127 127 087 096 083

COJ 012 027 106 107 130 130 121 130 099

Tshwane 015 008 093 077 140 140 099 109 143

17

Economic Performance-Gauteng Regions

GDP-R by Municipalities 2001 amp 2010

Source IHS Global Insight 2012

Total Employed versus Strict unemployment

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signiifant ndash with provincial statistics for the 1st quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signi1048768 cant ndash with provincial statistics for the 1048768 rst quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011 ndash

State of the art ICT technologyState of the art ICT technology

Automotive Supply ParkAutomotive Supply Park

Research amp Development Support (CSIR Innovation

Hub TIA)

Research amp Development Support (CSIR Innovation

Hub TIA)

Leading training institutesLeading training institutes

Favorable cost of doing business

Favorable cost of doing business

Home to 190 component suppliers

Home to 190 component suppliers

Established Road Rail amp Air infrastructure

Established Road Rail amp Air infrastructure

Outstanding Business Services (Conference venues)

Outstanding Business Services (Conference venues)

World class Financial amp Banking Systems

World class Financial amp Banking Systems

Variety of tourist attractionsVariety of tourist attractions

Politica Capital of South AfricaPolitica Capital of South Africa

National Government Support (Dti DED DOLDSampT)

National Government Support (Dti DED DOLDSampT)

Automotive Industry Development CentreAutomotive Industry Development Centre

Largest portion of skilled workforce

Largest portion of skilled workforce

Home to 4 of the 8 OEM Assemblers

Home to 4 of the 8 OEM Assemblers

Gauteng Government Support (GEDA GEP Blue IQ)

Gauteng Government Support (GEDA GEP Blue IQ)

The City of Tshwane in the Gauteng City Region

Have the second highest Number of Embassies after

Washington DC

Have the second highest Number of Embassies after

Washington DC

Gauteng Department of Economic Development Projects in Tshwane

Gauteng has five flagship projects that are geared into enhancing its status as an export and investment Gateway to AfricaSouthern Africa

bull The Tshwane Auto City-Submitted to the dti as an SEZ Dinokeng Africa in One Day Game Reserve - Located in an economically depressed part of

the province with limited other tourism amenities or means of economic development is a Big Five game reserve facility that optimises Gautengrsquos gateway status and opportunity to diversify its tourism attractions

Roodeplaat Dam and Cullinan Tourism Hubs - Part of three tourism hubs that were identified for development in the Dinokeng area Roodeplaat Dam fits with the concept of developing waterways as a tourism attraction in Gauteng and serves as an important pull factor to the Dinokeng Game Reserve

The Centurion Aerospace Village-A Hi Tech Advanced Manufacturing Aeromechanical and Defence cluster situated in the City of Tshwane and is an infrastructure project for the establishment of an Aeronautical Space and Defence Industry support mechanism to develop related sectors

The common thread in the Gauteng flagship projects is that of high-end manufacturing inland custom area status requires high skills content requires high levels of FDI has an African market as a focus for demand of goods and services

Gauteng Department of Economic Development Projects in Tshwane-Contnrsquod

The Innovation Hub is Africas first internationally accredited Science Park and a full member of the International Association of Science Parks a global network of science parks

Some of the more recent and new programmes of The Innovation Hub includeo Gauteng Accelerator Programme Biosciences Programme a bio-entrepreneurship programme

that supports innovations in biosciences in collaboration with Emory University Atlanta Georgia

o mLab an initiative in partnership with Nokia Finnish Government CSIR and the Worldbank which supports skills development and entrepreneurship in mobile applications taking advantage of the penetration of mobile technology as opposed to computers given the broadband penetration rates

o Gauteng Innovation Competition to promote strategic innovation procurement in government to address service delivery challenges across all spheres of government and foster inclusive innovation to ensure both social and economic development

o Climate Innovation Centre developed in partnership with the Worldbank InfoDev to support businesses and innovations in climate change and clean technology and

o Bio-Science Park developed in partnership with Gauteng Department of Agriculture and Rural Development (GDARD) to support biosciences RampD and commercialisation in Gauteng including synergistic programmes collaborations with but not limited to University of Pretoria CSIR and Agricultural Research Council

Conclusionbull Through intergovernmental forums such as IGR MINMEC etc we

continue to engage the national and local government level so that policy and strategies that are developed support regional development

bull As Gauteng we are making efforts to ensure that our region is known globally and we have signed investments agreements with Katanga Province (DRC) Ontario (Canada) Lombardy (Italy) and Chongqing (PRC)

bull We will continue to market the province to the African continent using all the intergovernmental forums available and introduce investors operating from Gauteng base to the African market

THE END

THE END

QUESTIONSREMARKS

  • Gauteng Economic Outlook and the Role of Tshwane in the GCR
Page 17: Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

17

Economic Performance-Gauteng Regions

GDP-R by Municipalities 2001 amp 2010

Source IHS Global Insight 2012

Total Employed versus Strict unemployment

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signiifant ndash with provincial statistics for the 1st quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signi1048768 cant ndash with provincial statistics for the 1048768 rst quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011 ndash

State of the art ICT technologyState of the art ICT technology

Automotive Supply ParkAutomotive Supply Park

Research amp Development Support (CSIR Innovation

Hub TIA)

Research amp Development Support (CSIR Innovation

Hub TIA)

Leading training institutesLeading training institutes

Favorable cost of doing business

Favorable cost of doing business

Home to 190 component suppliers

Home to 190 component suppliers

Established Road Rail amp Air infrastructure

Established Road Rail amp Air infrastructure

Outstanding Business Services (Conference venues)

Outstanding Business Services (Conference venues)

World class Financial amp Banking Systems

World class Financial amp Banking Systems

Variety of tourist attractionsVariety of tourist attractions

Politica Capital of South AfricaPolitica Capital of South Africa

National Government Support (Dti DED DOLDSampT)

National Government Support (Dti DED DOLDSampT)

Automotive Industry Development CentreAutomotive Industry Development Centre

Largest portion of skilled workforce

Largest portion of skilled workforce

Home to 4 of the 8 OEM Assemblers

Home to 4 of the 8 OEM Assemblers

Gauteng Government Support (GEDA GEP Blue IQ)

Gauteng Government Support (GEDA GEP Blue IQ)

The City of Tshwane in the Gauteng City Region

Have the second highest Number of Embassies after

Washington DC

Have the second highest Number of Embassies after

Washington DC

Gauteng Department of Economic Development Projects in Tshwane

Gauteng has five flagship projects that are geared into enhancing its status as an export and investment Gateway to AfricaSouthern Africa

bull The Tshwane Auto City-Submitted to the dti as an SEZ Dinokeng Africa in One Day Game Reserve - Located in an economically depressed part of

the province with limited other tourism amenities or means of economic development is a Big Five game reserve facility that optimises Gautengrsquos gateway status and opportunity to diversify its tourism attractions

Roodeplaat Dam and Cullinan Tourism Hubs - Part of three tourism hubs that were identified for development in the Dinokeng area Roodeplaat Dam fits with the concept of developing waterways as a tourism attraction in Gauteng and serves as an important pull factor to the Dinokeng Game Reserve

The Centurion Aerospace Village-A Hi Tech Advanced Manufacturing Aeromechanical and Defence cluster situated in the City of Tshwane and is an infrastructure project for the establishment of an Aeronautical Space and Defence Industry support mechanism to develop related sectors

The common thread in the Gauteng flagship projects is that of high-end manufacturing inland custom area status requires high skills content requires high levels of FDI has an African market as a focus for demand of goods and services

Gauteng Department of Economic Development Projects in Tshwane-Contnrsquod

The Innovation Hub is Africas first internationally accredited Science Park and a full member of the International Association of Science Parks a global network of science parks

Some of the more recent and new programmes of The Innovation Hub includeo Gauteng Accelerator Programme Biosciences Programme a bio-entrepreneurship programme

that supports innovations in biosciences in collaboration with Emory University Atlanta Georgia

o mLab an initiative in partnership with Nokia Finnish Government CSIR and the Worldbank which supports skills development and entrepreneurship in mobile applications taking advantage of the penetration of mobile technology as opposed to computers given the broadband penetration rates

o Gauteng Innovation Competition to promote strategic innovation procurement in government to address service delivery challenges across all spheres of government and foster inclusive innovation to ensure both social and economic development

o Climate Innovation Centre developed in partnership with the Worldbank InfoDev to support businesses and innovations in climate change and clean technology and

o Bio-Science Park developed in partnership with Gauteng Department of Agriculture and Rural Development (GDARD) to support biosciences RampD and commercialisation in Gauteng including synergistic programmes collaborations with but not limited to University of Pretoria CSIR and Agricultural Research Council

Conclusionbull Through intergovernmental forums such as IGR MINMEC etc we

continue to engage the national and local government level so that policy and strategies that are developed support regional development

bull As Gauteng we are making efforts to ensure that our region is known globally and we have signed investments agreements with Katanga Province (DRC) Ontario (Canada) Lombardy (Italy) and Chongqing (PRC)

bull We will continue to market the province to the African continent using all the intergovernmental forums available and introduce investors operating from Gauteng base to the African market

THE END

THE END

QUESTIONSREMARKS

  • Gauteng Economic Outlook and the Role of Tshwane in the GCR
Page 18: Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

Total Employed versus Strict unemployment

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signiifant ndash with provincial statistics for the 1st quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011

Gauteng holds the largest share of national employment (3084) Yet as per the national reality its levels of unemployment are signi1048768 cant ndash with provincial statistics for the 1048768 rst quarter of 2012 placing unemployment at 26 (Stats SA 2012b) However when looking at the statistics in terms of the annual average percentage increase in employment Gauteng has done well when compared with other metro-regions on the OECD database While the annual average increase in employment across other OECD-linked metro-regions was noted as 07 between 2001 to 2009 Gauteng saw a 38 increase over the same timeframe and a 37 increase between 2001 and 2011 ndash

State of the art ICT technologyState of the art ICT technology

Automotive Supply ParkAutomotive Supply Park

Research amp Development Support (CSIR Innovation

Hub TIA)

Research amp Development Support (CSIR Innovation

Hub TIA)

Leading training institutesLeading training institutes

Favorable cost of doing business

Favorable cost of doing business

Home to 190 component suppliers

Home to 190 component suppliers

Established Road Rail amp Air infrastructure

Established Road Rail amp Air infrastructure

Outstanding Business Services (Conference venues)

Outstanding Business Services (Conference venues)

World class Financial amp Banking Systems

World class Financial amp Banking Systems

Variety of tourist attractionsVariety of tourist attractions

Politica Capital of South AfricaPolitica Capital of South Africa

National Government Support (Dti DED DOLDSampT)

National Government Support (Dti DED DOLDSampT)

Automotive Industry Development CentreAutomotive Industry Development Centre

Largest portion of skilled workforce

Largest portion of skilled workforce

Home to 4 of the 8 OEM Assemblers

Home to 4 of the 8 OEM Assemblers

Gauteng Government Support (GEDA GEP Blue IQ)

Gauteng Government Support (GEDA GEP Blue IQ)

The City of Tshwane in the Gauteng City Region

Have the second highest Number of Embassies after

Washington DC

Have the second highest Number of Embassies after

Washington DC

Gauteng Department of Economic Development Projects in Tshwane

Gauteng has five flagship projects that are geared into enhancing its status as an export and investment Gateway to AfricaSouthern Africa

bull The Tshwane Auto City-Submitted to the dti as an SEZ Dinokeng Africa in One Day Game Reserve - Located in an economically depressed part of

the province with limited other tourism amenities or means of economic development is a Big Five game reserve facility that optimises Gautengrsquos gateway status and opportunity to diversify its tourism attractions

Roodeplaat Dam and Cullinan Tourism Hubs - Part of three tourism hubs that were identified for development in the Dinokeng area Roodeplaat Dam fits with the concept of developing waterways as a tourism attraction in Gauteng and serves as an important pull factor to the Dinokeng Game Reserve

The Centurion Aerospace Village-A Hi Tech Advanced Manufacturing Aeromechanical and Defence cluster situated in the City of Tshwane and is an infrastructure project for the establishment of an Aeronautical Space and Defence Industry support mechanism to develop related sectors

The common thread in the Gauteng flagship projects is that of high-end manufacturing inland custom area status requires high skills content requires high levels of FDI has an African market as a focus for demand of goods and services

Gauteng Department of Economic Development Projects in Tshwane-Contnrsquod

The Innovation Hub is Africas first internationally accredited Science Park and a full member of the International Association of Science Parks a global network of science parks

Some of the more recent and new programmes of The Innovation Hub includeo Gauteng Accelerator Programme Biosciences Programme a bio-entrepreneurship programme

that supports innovations in biosciences in collaboration with Emory University Atlanta Georgia

o mLab an initiative in partnership with Nokia Finnish Government CSIR and the Worldbank which supports skills development and entrepreneurship in mobile applications taking advantage of the penetration of mobile technology as opposed to computers given the broadband penetration rates

o Gauteng Innovation Competition to promote strategic innovation procurement in government to address service delivery challenges across all spheres of government and foster inclusive innovation to ensure both social and economic development

o Climate Innovation Centre developed in partnership with the Worldbank InfoDev to support businesses and innovations in climate change and clean technology and

o Bio-Science Park developed in partnership with Gauteng Department of Agriculture and Rural Development (GDARD) to support biosciences RampD and commercialisation in Gauteng including synergistic programmes collaborations with but not limited to University of Pretoria CSIR and Agricultural Research Council

Conclusionbull Through intergovernmental forums such as IGR MINMEC etc we

continue to engage the national and local government level so that policy and strategies that are developed support regional development

bull As Gauteng we are making efforts to ensure that our region is known globally and we have signed investments agreements with Katanga Province (DRC) Ontario (Canada) Lombardy (Italy) and Chongqing (PRC)

bull We will continue to market the province to the African continent using all the intergovernmental forums available and introduce investors operating from Gauteng base to the African market

THE END

THE END

QUESTIONSREMARKS

  • Gauteng Economic Outlook and the Role of Tshwane in the GCR
Page 19: Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

State of the art ICT technologyState of the art ICT technology

Automotive Supply ParkAutomotive Supply Park

Research amp Development Support (CSIR Innovation

Hub TIA)

Research amp Development Support (CSIR Innovation

Hub TIA)

Leading training institutesLeading training institutes

Favorable cost of doing business

Favorable cost of doing business

Home to 190 component suppliers

Home to 190 component suppliers

Established Road Rail amp Air infrastructure

Established Road Rail amp Air infrastructure

Outstanding Business Services (Conference venues)

Outstanding Business Services (Conference venues)

World class Financial amp Banking Systems

World class Financial amp Banking Systems

Variety of tourist attractionsVariety of tourist attractions

Politica Capital of South AfricaPolitica Capital of South Africa

National Government Support (Dti DED DOLDSampT)

National Government Support (Dti DED DOLDSampT)

Automotive Industry Development CentreAutomotive Industry Development Centre

Largest portion of skilled workforce

Largest portion of skilled workforce

Home to 4 of the 8 OEM Assemblers

Home to 4 of the 8 OEM Assemblers

Gauteng Government Support (GEDA GEP Blue IQ)

Gauteng Government Support (GEDA GEP Blue IQ)

The City of Tshwane in the Gauteng City Region

Have the second highest Number of Embassies after

Washington DC

Have the second highest Number of Embassies after

Washington DC

Gauteng Department of Economic Development Projects in Tshwane

Gauteng has five flagship projects that are geared into enhancing its status as an export and investment Gateway to AfricaSouthern Africa

bull The Tshwane Auto City-Submitted to the dti as an SEZ Dinokeng Africa in One Day Game Reserve - Located in an economically depressed part of

the province with limited other tourism amenities or means of economic development is a Big Five game reserve facility that optimises Gautengrsquos gateway status and opportunity to diversify its tourism attractions

Roodeplaat Dam and Cullinan Tourism Hubs - Part of three tourism hubs that were identified for development in the Dinokeng area Roodeplaat Dam fits with the concept of developing waterways as a tourism attraction in Gauteng and serves as an important pull factor to the Dinokeng Game Reserve

The Centurion Aerospace Village-A Hi Tech Advanced Manufacturing Aeromechanical and Defence cluster situated in the City of Tshwane and is an infrastructure project for the establishment of an Aeronautical Space and Defence Industry support mechanism to develop related sectors

The common thread in the Gauteng flagship projects is that of high-end manufacturing inland custom area status requires high skills content requires high levels of FDI has an African market as a focus for demand of goods and services

Gauteng Department of Economic Development Projects in Tshwane-Contnrsquod

The Innovation Hub is Africas first internationally accredited Science Park and a full member of the International Association of Science Parks a global network of science parks

Some of the more recent and new programmes of The Innovation Hub includeo Gauteng Accelerator Programme Biosciences Programme a bio-entrepreneurship programme

that supports innovations in biosciences in collaboration with Emory University Atlanta Georgia

o mLab an initiative in partnership with Nokia Finnish Government CSIR and the Worldbank which supports skills development and entrepreneurship in mobile applications taking advantage of the penetration of mobile technology as opposed to computers given the broadband penetration rates

o Gauteng Innovation Competition to promote strategic innovation procurement in government to address service delivery challenges across all spheres of government and foster inclusive innovation to ensure both social and economic development

o Climate Innovation Centre developed in partnership with the Worldbank InfoDev to support businesses and innovations in climate change and clean technology and

o Bio-Science Park developed in partnership with Gauteng Department of Agriculture and Rural Development (GDARD) to support biosciences RampD and commercialisation in Gauteng including synergistic programmes collaborations with but not limited to University of Pretoria CSIR and Agricultural Research Council

Conclusionbull Through intergovernmental forums such as IGR MINMEC etc we

continue to engage the national and local government level so that policy and strategies that are developed support regional development

bull As Gauteng we are making efforts to ensure that our region is known globally and we have signed investments agreements with Katanga Province (DRC) Ontario (Canada) Lombardy (Italy) and Chongqing (PRC)

bull We will continue to market the province to the African continent using all the intergovernmental forums available and introduce investors operating from Gauteng base to the African market

THE END

THE END

QUESTIONSREMARKS

  • Gauteng Economic Outlook and the Role of Tshwane in the GCR
Page 20: Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

Gauteng Department of Economic Development Projects in Tshwane

Gauteng has five flagship projects that are geared into enhancing its status as an export and investment Gateway to AfricaSouthern Africa

bull The Tshwane Auto City-Submitted to the dti as an SEZ Dinokeng Africa in One Day Game Reserve - Located in an economically depressed part of

the province with limited other tourism amenities or means of economic development is a Big Five game reserve facility that optimises Gautengrsquos gateway status and opportunity to diversify its tourism attractions

Roodeplaat Dam and Cullinan Tourism Hubs - Part of three tourism hubs that were identified for development in the Dinokeng area Roodeplaat Dam fits with the concept of developing waterways as a tourism attraction in Gauteng and serves as an important pull factor to the Dinokeng Game Reserve

The Centurion Aerospace Village-A Hi Tech Advanced Manufacturing Aeromechanical and Defence cluster situated in the City of Tshwane and is an infrastructure project for the establishment of an Aeronautical Space and Defence Industry support mechanism to develop related sectors

The common thread in the Gauteng flagship projects is that of high-end manufacturing inland custom area status requires high skills content requires high levels of FDI has an African market as a focus for demand of goods and services

Gauteng Department of Economic Development Projects in Tshwane-Contnrsquod

The Innovation Hub is Africas first internationally accredited Science Park and a full member of the International Association of Science Parks a global network of science parks

Some of the more recent and new programmes of The Innovation Hub includeo Gauteng Accelerator Programme Biosciences Programme a bio-entrepreneurship programme

that supports innovations in biosciences in collaboration with Emory University Atlanta Georgia

o mLab an initiative in partnership with Nokia Finnish Government CSIR and the Worldbank which supports skills development and entrepreneurship in mobile applications taking advantage of the penetration of mobile technology as opposed to computers given the broadband penetration rates

o Gauteng Innovation Competition to promote strategic innovation procurement in government to address service delivery challenges across all spheres of government and foster inclusive innovation to ensure both social and economic development

o Climate Innovation Centre developed in partnership with the Worldbank InfoDev to support businesses and innovations in climate change and clean technology and

o Bio-Science Park developed in partnership with Gauteng Department of Agriculture and Rural Development (GDARD) to support biosciences RampD and commercialisation in Gauteng including synergistic programmes collaborations with but not limited to University of Pretoria CSIR and Agricultural Research Council

Conclusionbull Through intergovernmental forums such as IGR MINMEC etc we

continue to engage the national and local government level so that policy and strategies that are developed support regional development

bull As Gauteng we are making efforts to ensure that our region is known globally and we have signed investments agreements with Katanga Province (DRC) Ontario (Canada) Lombardy (Italy) and Chongqing (PRC)

bull We will continue to market the province to the African continent using all the intergovernmental forums available and introduce investors operating from Gauteng base to the African market

THE END

THE END

QUESTIONSREMARKS

  • Gauteng Economic Outlook and the Role of Tshwane in the GCR
Page 21: Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

Gauteng Department of Economic Development Projects in Tshwane-Contnrsquod

The Innovation Hub is Africas first internationally accredited Science Park and a full member of the International Association of Science Parks a global network of science parks

Some of the more recent and new programmes of The Innovation Hub includeo Gauteng Accelerator Programme Biosciences Programme a bio-entrepreneurship programme

that supports innovations in biosciences in collaboration with Emory University Atlanta Georgia

o mLab an initiative in partnership with Nokia Finnish Government CSIR and the Worldbank which supports skills development and entrepreneurship in mobile applications taking advantage of the penetration of mobile technology as opposed to computers given the broadband penetration rates

o Gauteng Innovation Competition to promote strategic innovation procurement in government to address service delivery challenges across all spheres of government and foster inclusive innovation to ensure both social and economic development

o Climate Innovation Centre developed in partnership with the Worldbank InfoDev to support businesses and innovations in climate change and clean technology and

o Bio-Science Park developed in partnership with Gauteng Department of Agriculture and Rural Development (GDARD) to support biosciences RampD and commercialisation in Gauteng including synergistic programmes collaborations with but not limited to University of Pretoria CSIR and Agricultural Research Council

Conclusionbull Through intergovernmental forums such as IGR MINMEC etc we

continue to engage the national and local government level so that policy and strategies that are developed support regional development

bull As Gauteng we are making efforts to ensure that our region is known globally and we have signed investments agreements with Katanga Province (DRC) Ontario (Canada) Lombardy (Italy) and Chongqing (PRC)

bull We will continue to market the province to the African continent using all the intergovernmental forums available and introduce investors operating from Gauteng base to the African market

THE END

THE END

QUESTIONSREMARKS

  • Gauteng Economic Outlook and the Role of Tshwane in the GCR
Page 22: Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

Conclusionbull Through intergovernmental forums such as IGR MINMEC etc we

continue to engage the national and local government level so that policy and strategies that are developed support regional development

bull As Gauteng we are making efforts to ensure that our region is known globally and we have signed investments agreements with Katanga Province (DRC) Ontario (Canada) Lombardy (Italy) and Chongqing (PRC)

bull We will continue to market the province to the African continent using all the intergovernmental forums available and introduce investors operating from Gauteng base to the African market

THE END

THE END

QUESTIONSREMARKS

  • Gauteng Economic Outlook and the Role of Tshwane in the GCR
Page 23: Gauteng Economic Outlook and the Role of Tshwane in the GCR 20 August 2012 By Matodzi Rathumbu Gauteng Department of Economic Development

THE END

QUESTIONSREMARKS

  • Gauteng Economic Outlook and the Role of Tshwane in the GCR