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4 6 7 11 Gauteng Infrastructure Investment Conference 2015 Kasi car pundits Summary of the GDED Budget Vote 2015/2016 Make everyday Mandela Day ISSUE 6 MY BUSINESS | MY GAUTENG | MY ECONOMY

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Page 1: Moruo Issue 6

4 6 7 11Gauteng Infrastructure Investment Conference 2015

Kasi car pundits Summary of the GDED Budget Vote 2015/2016

Make everyday Mandela Day

ISSUE 6

MY BUSINESS | MY GAUTENG | MY ECONOMY

Page 2: Moruo Issue 6

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT

MORUO

Like our Facebook page:Gauteng Department of Economic Development

Follow us on Twitter:@GautengDED

visit our blog:http:\\gpgded.wordpress.com

watch our video’s on youtube:www.youtube.com/user/gpgded/feed

Information Communication Technologies (ICT’s) have become a meaningful part of the global economy.

We now live in a time where information is readily available at our fingertips and we can access information anywhere and at anytime we want.

Over the last couple of years there has also been an increase in the use of social media platforms as a way of accessing information; many organisations have taken note of this and are now embracing social media platforms as an alternative way of reaching their stakeholders.

The Gauteng Department of Economic Development, as a department that is responsible for economic growth in Gauteng, wants all departmental information to be accessible to all members of the public, particularly the people of Gauteng.

Therefore the department is using various social media platforms as an alternative way of reaching the public.

DED SOCIAL MEDIA NETWORKDED SOCIAL MEDIA NETWORK

4 6 7 11Youth are owners of the Youth are owners of the Youth are owners of the Youth are owners of the Youth are owners of the futurefuture

ICT based solutions ICT based solutions ICT based solutions ICT based solutions winnerwinner

Twenty Years of Small Twenty Years of Small Twenty Years of Small Twenty Years of Small Twenty Years of Small Twenty Years of Small Twenty Years of Small Twenty Years of Small Twenty Years of Small Twenty Years of Small Business Promotion in SABusiness Promotion in SABusiness Promotion in SABusiness Promotion in SABusiness Promotion in SA

We The People Walk We The People Walk We The People Walk We The People Walk We The People Walk We The People Walk We The People Walk We The People Walk 20152015

ISSUE 5

MY BUSINESS | MY GAUTENG | MY ECONOMY

EDITOR-IN-CHIEF: MEC: Lebogang Maile

MANAGING EDITOR: Nondumiso Msomi

EDITORIAL TEAM

Naledi Ndlovu, Siphiwe Hlope, Ndlelanhle Khuzwayo, Tendani Sibuyi,

Mbalenhle Zondi, Naledi Sibiya, Phindile Kunene and Mashao Mohale

CONTRIBUTORS: Gauteng Online and SA News

DESIGN AND LAYOUT: Papi Mthimkulu

PHOTOGRAPHY: Naledi Sibiya and Ndlelanhle Khuzwayo

PUBLISHER: Gauteng Department of Economic Development, 94 Main Street, Matlotlo House, Johannesburg Private Bag X 091, Marshalltown, 2107 Tel: 011 355 8000 | Fax: 011 355 8694 www.ecodev.gpg.gov.za

EDITOR’S LETTER: [email protected]

Copyright

MORUO is a newsletter published by the Corporate Communication Unit of the Gauteng Department of Economic Development (GDED).

All material published is copyrighted and can not be used without written permission of the publisher.

MEC: LEBOGANG MAILE

In his seminal work, The Plague - author and historian, Albert Camus postulates that “Other men will make history…. All I can say is that on this earth there are pestilences and there are victims-and as far as possible one must refuse to be on the side of the pestilence”.

The month of July was President Nelson Rolihlahla Mandela’s birthday. On his birthday the nation and the international community took time to pause and reflect on the many challenges that face humanity; they also reflected on the achievements all of us have made in the endeavour to build a better world.

Under extremely difficult circumstances both for him and the communities of the rural hinterland of Mvezo and Qunu, Madiba took

it upon himself not to stand on the side of the pestilence that was known as Apartheid.

Many years of colonialism had caused considerable damage to the way of life of Africans. Since then the people were subjected to conditions of abject poverty, underdevelopment and economic neglect. To this day, such injustices meted against the black majority are more than evident in Alexandra, Ivory Park, Diepsloot and Madelakufa to mention a few.

In June, we presented the budget vote for the Department of Economic Development. In the presentation we re-affirmed our position espoused in our vision to transform, modernise and re-industrialise.

Some of the key elements of the presentation were about consolidating what needs to be done in order to give practical expression to the drive to revitalise what we have termed the township economy. In this instance, we are firm in our view that we should turn around the township spatial landscape to a major productive centre, not just for Gauteng and the country but the entire continent.

We remain seized with the daunting task of engaging the business sector on ways that we can employ

in overcoming the challenges of unemployment and poverty, including skills development and higher growth levels.

Another major victory we have scored is that we have now established the Gauteng Business Consultative Forum, a platform for engagement between government and business.

Our overarching strategy is to ensure that there is seamless connectivity between the big industries of production and the drive to create new economic nodes that will lead the next industrial revolution – the centre of which shall be our townships.

Given that we are dealing with a centuries old challenge – it has become clear that 21 years is not enough for us to eradicate this scourge. It requires some courage of conviction and a leadership with the political will to tackle certain challenges head on.

The cynicism of our age has brought to the fore new ills such as corruption and theft, pillaging of the public purse and a decline in confidence in our public institutions coupled by a near collapse of the political edifice of our country.

If we are to meet any of the challenges we face and meet the noble political objectives we have set ourselves– we must work tirelessly to reverse the threat of the reversal of the democratic gains.

Former Director General in the Presidency and Executive Director of MISTRA, Joel Netshitenzhe, has written glowingly of Nelson Mandela in the following words:

“If there is anything that marks the measure of Mandela’s genius, it was his mastery of human relations. Names of acquaintances and distant associates rolled off his lips with ease. His expression of affection and empathy were truly genuine. From him, one felt the sense of being valued and the confidence of valuing oneself.”

The relevance of this citation is that even with his faults as a human being Madiba always understood that the revolution was about the people. This was reflected in simple mannerisms like his interaction with those he worked with and encountered in the course of discharging his official duties.

The Gauteng Provincial Government’s plan and vision to transform, modernise and re-industrialise cuts into the heart of what constitutes our problems today.

In order for us to succeed – the plan will require that each one of us rediscover a Madiba within, that we should be selfless in our execution of the task at hand: that we should act ethically as leaders, and also remember that ours is to serve the people.

Lebogang Maile (MPL) Member of the Executive Council for Economic Development, Environment, Agriculture and Rural Development

Like our Facebook page:Gauteng Department of Economic Development

Follow us on Twitter:@GautengDED

visit our blog:http:\\gpgded.wordpress.com

watch our video’s on youtube:www.youtube.com/user/gpgded/feed

Information Communication Technologies (ICT’s) have become a meaningful part of the global economy.

We now live in a time where information is readily available at our fingertips and we can access information anywhere and at anytime we want.

Over the last couple of years there has also been an increase in the use of social media platforms as a way of accessing information; many organisations have taken note of this and are now embracing social media platforms as an alternative way of reaching their stakeholders.

The Gauteng Department of Economic Development, as a department that is responsible for economic growth in Gauteng, wants all departmental information to be accessible to all members of the public, particularly the people of Gauteng.

Therefore the department is using various social media platforms as an alternative way of reaching the public.

DED SOCIAL MEDIA NETWORK

4 6 7 11

ISSUE 5

MY BUSINESS | MY GAUTENG | MY ECONOMY

EDITOR’S NOTE

Page 3: Moruo Issue 6

Illegal Gambling in GautengIt is estimated that Gauteng has nearly 180 illegal gambling establishments. The increase in illegal gaming poses a threat to tax revenue, and hampers the budget for service delivery to the public.

Many of these are illegal online gambling establishments that masquerade as Internet Cafes in city centres and residential areas. Online gambling is currently prohibited in South Africa and it continues to be a challenge for law enforcement officials to monitor.

MEC Lebogang Maile said that there is an on-going process of training investigating officers on methods of securing information or evidence in order to clamp down illegal gaming. “The cooperation of the industry in our efforts to eradicate illegal gambling is important and we urge anyone with information to bring this to the attention of the regulatory authority - the Gauteng Gambling Board.”

According to the Gauteng Gabling Board, it is important for the industry to continue playing a role in educating society and raising awareness about illegal gambling and the problem of gambling addiction. The board regularly undertakes raids, inspections and compliance audits with the relevant law enforcement agencies.

Retail partnership to boost businesses in townshipsMEC Lebogang Maile announced that the department is hard at work to finalise a partnership that will result in R650 million cash injected into various townships across Gauteng. “This partnership is spearheaded by Wal-Mart and will see the establishment of 500 retail shops within Gauteng townships,” he said during the Budget Vote 2015/16.

This project will be piloted in six townships: Katlehong, Atteridgeville, Sharpeville, Randfontein, Alexander and Khutsong - “The project is envisaged to create more than 1000 jobs,” he said.

MEC Maile applauded the retail industry for heeding the call made to big business to integrate township based merchants and producers of goods and services.

In addition, he highlighted that the partnership with retail giant, Pick n Pay is projected to resolve the challenges faced by spaza shop owners.

Gauteng Consumer Court Warns Against Ignoring SummonsProfessor Riette du Plessis, the chairperson of the Gauteng Consumer Affairs Court, has warned businesses not to ignore summons in terms of either section 8 or 18(1) of the Consumer Protection Act. Du Plessis said this while handing down judgement during the Consumer Court’s first regional sitting that took place in Germiston on 30 June 2015.

The court ruled in favour of the complainant after the respondent failed to appear before the court despite being given several chances to. The complainant, Zakeer Buckus from Benoni, Ekurhuleni, bought furniture from The Mattress People (respondent) for R7000 in October last year. He later noticed that the lounge suite was not straight , “when I sat on it I realised that it had a sound from springs in the sofa, the legs were not straight and also some of the stitches were loose”, said Buckus during his testimony. Buckus then notified the respondent, who sent the manager to inspect the Sofa; he also assured Buckus that the defects would be rectified.

The court then ordered the respondent to pay R7000 plus interest to the complainant within 21 days.

Like our Facebook page:Gauteng Department of Economic Development

Follow us on Twitter:@GautengDED

visit our blog:http:\\gpgded.wordpress.com

watch our video’s on youtube:www.youtube.com/user/gpgded/feed

Information Communication Technologies (ICT’s) have become a meaningful part of the global economy.

We now live in a time where information is readily available at our fingertips and we can access information anywhere and at anytime we want.

Over the last couple of years there has also been an increase in the use of social media platforms as a way of accessing information; many organisations have taken note of this and are now embracing social media platforms as an alternative way of reaching their stakeholders.

The Gauteng Department of Economic Development, as a department that is responsible for economic growth in Gauteng, wants all departmental information to be accessible to all members of the public, particularly the people of Gauteng.

Therefore the department is using various social media platforms as an alternative way of reaching the public.

DED SOCIAL MEDIA NETWORK

4 6 7 11

ISSUE 5

MY BUSINESS | MY GAUTENG | MY ECONOMY

New electronic invoicing systemThe Gauteng Provincial Government has launched a new electronic invoicing service.

The new service is aimed to reduce the process of invoice submission from 60 days to less than two days. Suppliers can now submit invoices through an online service which is available 24 hours.

All registered government suppliers are invited to attend the Electronic Invoicing Services Supplier Information and On-boarding Sessions held at Gauteng Department of Treasury, 75 Fox Street.

This year, 24 Thusong Centres across the province will be connected to the service to ensure those who do not have private electronic access are not excluded.

For more information, please contact; 011 227 9000

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT

MORUO 3

NEWS BRIEF

Page 4: Moruo Issue 6

The Gauteng Infrastructure Investment Conference (GIIC) provided a platform for key role-players from the public and private sector to address the infrastructure needs and identify specific investment opportunities in the Gauteng City Region.

IT STARTS IN GAUTENG

NDLELANHLE KHUZWAYO

Held at Gallagher Estate, Midrand on 16 -17 July 2015, the theme for the inaugural GIIC was “Driving Investment for Growth - Together Moving Gauteng City Region Forward.” Approximately 1, 500 delegates attended the conference, from high ranking private sector leaders, executive mayors, Gauteng executive council, investors and entrepreneurs.

The successful GIIC comprised of plenary and breakaway sessions, as well as an exhibition showcasing some of the provincial government’s plans and public-private partnership projects. The first day mainly focused on the purpose of the conference and also the partnership between government, the private sector and the banking industry in infrastructure investment and growing the economy.

In welcoming the delegates, Gauteng MEC for Economic Development, Environment, Infrastructure and Rural Development, Lebogang Maile, said that the aim of the conference is to strengthen Gauteng’s position as a dynamic business destination that offers boundless opportunities to companies and firms operating in the province.

“The Gauteng Provincial Government has already put in place various mechanisms to raise and coordinate alternative funding for strategic infrastructure projects. Amongst these mechanisms is the Gauteng Infrastructure Financing Agency (GIFA), which will play a huge and active role in our priority economic sectors like manufacturing, real estate, transport and logistics, green economy and energy,” said MEC Maile.

The second day consisted of five parallel sessions:

• Infrastructure for Mega Human Settlements and Post-Apartheid cities

• ICT and Broadband Infrastructure

• Energy Security

• Water and Sanitation Infrastructure

According to the 2014 Ernst & Young Survey, Gauteng has been the most popular destination of foreign direct investment projects in Africa. “We are a Gateway to Africa,” said Gauteng Premier, David Makhura.

The Premier indicated that the challenge, going forward, is to continue to enhance competitiveness by addressing two critical issues: improving the ease of doing business and maintaining and expanding modern, financially and ecologically sustainable infrastructure.

In an effort to address the ease of doing business in Gauteng, the provincial government has established a one-stop service, the Gauteng Investment Centre. It assists in the registration of businesses, tax compliance and overseas travel requirements.

Premier Makhura said that National Cabinet has adopted a comprehensive National Infrastructure Plan composed of eighteen Strategic Integrated Infrastructure

Projects (SIPS) worth more than R1, 4 trillion in order to address the country’s infrastructure challenges. The Presidential Infrastructure Coordinating Commission (PICC) has been established to drive the implementation of the Plan.

“In Gauteng, we are finalising a 30-year Infrastructure Master Plan for the entire Gauteng City Region which outlines our infrastructure needs regarding transport, energy, human settlements, broadband and ICT, water and sanitation, education and health,” the Premier said.

It is estimated that from the Infrastructure Master Plan, Gauteng requires R105 billion per annum in infrastructure

investment from both the public and private sectors. The provincial government has already established the Premier’s Infrastructure Coordination Commission.

“As government, we are ready to work with the private sector to transform, modernise and re-industrialise our economy so that it can serve the needs of all our people, especially black people, women and youth.”

“Let the work begin – as we say in Gauteng – it starts here,” said Premier Makhura.

The next GIIC will be held on 27 - 28 July 2016.

• Modernisation of Public Transport Infrastructure and the Aerotropolis Development in the Gauteng City Region

• Township Economy Revitalisation and Inner-City Regeneration.

During his keynote address, Minister in the Presidency for Planning, Monitoring and Evaluation, Jeff Radebe said that the National Development Plan (NDP) highlighted the importance of infrastructure investment in meeting social economic objectives of the country. According to the NDP, South Africa needs to invest in a strong network of economic infrastructure designed to support the country’s medium and long term economic and social objectives.

“The government understands that without sufficient and well maintained infrastructure our development ambition will not be realised,” he said.

Minister Radebe said that government aims to increase investment in public transport and resolve existing public transport policy issues. “Government is spending in the region of R51 billion on new Rail Rolling Stock to renew the passenger fleet, and an additional R4 billion on new hybrid locomotives.”

He further added that in order to improve road infrastructure, government has established a provincial road maintenance grant to upgrade the portions of the provincial road networks that are in poor or very poor condition. More than R30 billion will be spent in the medium term expenditure framework period to 2017/18 for maintenance and rehabilitation of provincial roads.

Let the work begin – as we say in

Gauteng – it starts here, said Premier

Makhura.

Over the next four years, together with national government, the Gauteng provincial government and municipalities will spend more than R100 billion on infrastructure projects in the five development corridors of the Gauteng City region focusing on:

• Rollout of public transport infrastructure;

• Rollout of broadband connectivity;

• Broadening the energy mix;

• Building mega human settlements and new cities;

• Fast-tracking the development of the aerotropolis and new logistics nodes;

• Revitalising old townships, mining towns and inner-cities;

• Expanding social infrastructure (education, health and sporting facilities) and water and sanitation.

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT

MORUO4

SERVICE DELIVERY

Page 5: Moruo Issue 6

GAUTENG PREMIER, DAVID MAKHURA, DURING THE OFFICIAL OPENING OF THE EXHIBITION. THE FIVE DEVELOPMENT CORRIDORS FEATURED IN THE EXHIBITION.

GAUTENG INFRASTRUCTURE INVESTMENT CONFERENCE DINNER AND NETWORKING SESSION.

CAS COOVADIA, MANAGING DIRECTOR OF BANKING ASSOCIATION OF SOUTH AFRICA.

JEFF RADEBE, MINISTER IN THE PRESIDENCY FOR PLANNING, MONITORING AND EVALUATION.

SIMON MOFEKENG, SEDIBENG MAYOR, KGOSIENTSO RAMOKGOPA, TSHWANE MAYOR AND MONDLI GUNGUBELE, EKURHULENI MAYOR

EBRAHIM PATEL, MINISTER OF ECONOMIC DEVELOPMENT.

PROGRAMME DIRECTOR, VICTOR KGOMOESWANA DURING THE SECOND PLENARY PANEL.

LEBOGANG MAILE, GAUTENG MEC FOR ECONOMIC DEVELOPMENT, ENVIRONMENT, INFRASTRUCTURE AND RURAL DEVELOPMENT.

FROM LEFT: DONNA OOSTHUYSE, DIRECTOR, CAPITAL MARKERTS_JSE, LITHA NYHONYHA, CHAIRMAN, REGIMENTS CAPITAL, LEON CAMPHER, CEO: ASISA AND PARKS TAU, MAYOR OF CITY OF JOBURG.

GAUTENG INFRASTRUCTURE INVESTMENT CONFERENCE WAS ATTENDED BY PRIVATE SECTOR LEADERS, GOVERNMENT INVESTORS AND ENTREPRENEURS.

GUITARIST, SELAELO SELOTA MESMERISING THE GUEST WITH JAZZ MELODIES.

TIM MODISE, HOST OF POWER BREAKFAST SHOW ON POWER FM DURING THE COCKTAIL DINNER.

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT

MORUO 5

SERVICE DELIVERY

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KASI CAR PUNDITS

NDLELANHLE KHUZWAYO

“If opportunity doesn’t knock, build a door.” - Milton Berle.

YOUNG ENTREPRENEURS AND FOUNDERS OF WHITE ALL BOYS, DAVID GUMEDE AND LESEGO LEGOALE

to have direct links with the supplier overseas in order to have access to a variety of products.”

White All Boys has so far done car modification on the following classic cars; Chevrolet Impala, Mercedes Benz, Pontiac, Dodge Monaco and a modern Opel Corsa bakkie. The project that brought them kudos and credibility is their recent refurbishment of a Maserati. “We painted the car, changed some of the lights and installed the Lamborghini doors,” says Gumede.

The owner of the Maserati saw an article of White All Boys on the Star Newspaper and was sold by the good work of the young men from Mohlakeng.

When asked about future plans of the company, Legoale responds that they would like to grow the business to a point where they can manufacture some of the parts that they import. He points out that it is not rocket science, “we just need the right tools and proper workmanship - it can be done here in the township.”

Young entrepreneurs and founders of White All Boys, David Gumede and Lesego Legoale, did not allow lack of resources to impede their dream of starting a business.

The duo from Mohlakeng, a township south of Randfontein, started a company that specialises in car modification - similar to the popular American TV show, Pimp My Ride.

Driven by the passion for cars from an early age, they ‘hit the road’ with only a drill, a grinder and a welding machine. Their first pilot car modification project was with a Ford Cortina and Toyota Tazz. Gumede and Legoale were fortunate to own cars at a young age, gifts from their parents.

“My mother gave me a Ford Cortina and it had a mechanical problem, but that’s when we started learning the basics about cars. From then we started exploring, firstly we changed hinges - a normal hinge opens the door sideways, but we installed them to open the door vertically,” says Gumede. He adds that they didn’t like standard cars; they were fascinated on how far they can go with car modification.

According to Gumede, they import car hinges from Hong Kong through a ‘middle man’ since they are not yet financially stable enough to order directly from the supplier. Legoale explains that there are few local companies that specialise in car customising. “We aim

So you can control your energy loads anywhere in the world as long as you have signal

They are also looking at employing more people, currently they have three people working for them. With more hands, Gumede says that it will free them from doing the labour themselves and focus on other areas of the business.

However, they believe that goals need to be as realistic as possible, at the moment what they need are tools of trade. “The only setback for us as a business is lack of proper tools; we only have the basic tools. If we can have tools everything else will fall into place,” says Legoale. White All Boys are currently operating in Kagiso because they are renting space and equipment from Check Coast Productions.

The fact that they don’t own equipment or a warehouse at the moment is not a deterrent for the young men, as they live by the slogan of their company, ‘Keep pushing…’

For more information about White All Boys, please contact: 076 429 4004

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT

MORUO6

PROFILE

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“Promoting intra-Africa trade will embolden our efforts to industrialise and achieve inclusive economic growth.” - MEC Lebogang Maile.

GAUTENG AIMS TO BOLSTER INTRA-AFRICA TRADE

NDLELANHLE KHUZWAYO

The African continent occupies a special place in the Gauteng Provincial Government’s Transformation, Modernisation and Re-Industrialisation programme.

The endeavour to overcome the structural challenges facing the South African economy is intricately entwined to the fate of the economy of other African countries.

There is a consensus that increasing the share of trade between countries on the continent is crucial to Africa’s political stability, economic development and prosperity.

“We draw confidence from the Economic Report on Africa which states that although intra-Africa trade is small compared to the continent’s trade with the rest of the world, standing at 11.5%, hopes to industrialise our economies must be pinned primarily on ourselves,” said MEC Lebogang Maile.

He was speaking during the Budget Vote 2015/2016 at the Gauteng Provincial Legislature on 23 June 2015. He indicated that this observation stems from the fact that trade between and amongst African countries is significantly more industrialised. “This means that we export and import more manufactured and finished goods to and from each other than we do with the rest of the world.”

In addition, MEC Maile explained that

economy is vulnerable to external dips in commodity prices as well as recession and economic downturns in EU and the US,” said MEC Maile.

The MEC further highlighted that our economic calculations tell us that South Africa’s growth is highly dependent on the recovery of the EU. A growth rate of

4.5% for Gauteng highly depends on the Euro Area growing at 3%.

Moderate growth in developing countries is likely to affect commodity prices, trade and investment flows between Africa and the rest of the world. In the face of these risks, African countries need to continue to implement measures to boost domestic demand, diversify production

and promote rapid expansion in intra-African trade.

He added that “the strategy is geared at repositioning the province’s trade and investment approach, turning our attention to the SADC region and the continent at large,”

GAUTENG INTERNATIONAL RELATIONS STRATEGYAccording to MEC Maile, this thinking requires the re-orientation of our international engagements. “To this end, we will launch the Gauteng International Relations Strategy through which we envisage a bigger role for economies in the African continent, BRIC countries and other emerging markets.”

He also announced that in line with the strategy, forty (40) Gauteng companies in manufacturing will receive support to expand their operations. Of these companies, ten (10) firms that are looking to expand operations in Africa to supply inputs to mega infrastructure opportunities identified in the five development corridors will receive support.

The MEC explained that the attraction of investments in targeted sectors contributes to the development of the province’s priority sectors. New foreign and domestic investments to the value of R1 billion will be attracted to the eleven (11) priority sectors of the economy which will result in the creation of 1500 jobs.

while Africa’s trade with other regions is primarily in the extractive industries like minerals, metals and hydrocarbons, the share of manufactured goods traded within the continent amounted to 40% of total trade in 2011. By contrast, African exports in manufactured goods to the rest of the world stood at a measly 13% in the same year.

“Promoting intra-Africa trade will embolden our efforts to industrialise and achieve inclusive economic growth,” he said.

TRADE AND INVESTMENT STRATEGYIn the quest to give practical expression to the ten pillar programme of the Transformation, Modernisation and Re-Industrialisation, a series of strategies, which together constitute the Economic Plan for the City Region, will be launched.

The Trade and Investment Strategy, will be unveiled this year. This strategy is underpinned by the need to strategically steer Gauteng’s exports to new markets and destinations and to strengthen Gauteng’s role in Africa’s re-industrialisation process and to open up markets for Gauteng’s manufactured products.

“South Africa is far too reliant on European Union (EU), Unites States (US) and Asian markets. While this is not necessarily a terrible thing, recent events have shown the extent to which our

We will launch the Gauteng International

Relations Strategy through which we

envisage a bigger role for economies in the

African continent, BRIC countries and

other emerging markets.

TABLING OF THE

BUDGETVOTE 2015/16

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT

MORUO 7

SUMMARY OF THE BUDGET VOTE 2015/2016 SERVICE DELIVERY

Page 8: Moruo Issue 6

The government is determined to ensure that townships become liveable and vibrant economic centres for residents. In prioritising Township Economy Revitalisation, an allocation of R140 million has been redirected from the Gauteng Gambling Board for the revival of township businesses and the development of critical skills.

The provincial government currently spends about 5% of its R10 billion procurement budget for goods and services on township enterprises.

MEC for Gauteng Department of Finance, Barbara Creecy said that “we are committed to increasing this spending to 30% over the next four (4) years.”

The provincial government is conducting a detailed assessment on goods and services procurement to find ways of growing its township enterprise expenditure. “We are also looking at localising procurement and supplier rotation for purchases below R500 000,” said MEC Creecy.

According to the findings in the recent study by the World Bank Group and the National Treasury titled Doing Business in South Africa 2015, the business

registration process in South Africa is relatively cheaper, however, it is not time efficient and tends to be administratively tedious.

In addressing this inefficiency, the provincial government will embark on a campaign aimed at fast – tracking the registration of businesses process for township businesses.

Through this campaign, which is titled Qondisa Ishishini Lakho (Fix Your Business), onsite registration will be offered to businesses.

Qondisa Ishishini Lakho will not only grant SMMEs access to government procurement opportunities; they will also benefit from the private sector.According to MEC Lebogang Maile,

The Gauteng Tourism Authority is leading the charge in developing a focused Africa Tourism Strategy. This

year, Gauteng has set a target of arrivals at 2.7 million for visitors from the continent

only, with a value of R21 billion. The recent reconfiguration of the Gauteng Tourism Authority to focus solely on destination marketing and promotion is projected to yield positive results. The targeted performance for the province in the 2015/16 period is 4.4 million

international arrivals and R35 billion in revenue generation.

The Gauteng Provincial Government (GPG) continues to strengthen its focus on stimulating investment in Township Economy Revitalisation programme.

Gauteng remains a leading provincial destination for foreign visitors. Johannesburg was named the most visited African city in 2014 by global banking giant MasterCard.

NDLELANHLE KHUZWAYO

GPG INCREASES SPENDING ON TOWNSHIP BUSINESSES

TOURISM SECTOR GETS A BOOST

According to Gauteng Tourism Authority, the focus for this financial year is to grow a strong and vibrant domestic tourism portfolio.

In endeavour to bolster tourism in the province, the Gauteng Provincial Government, in conjunction with municipalities, has developed an extensive Township Tourism Experience and Enterprise Development programme. This intervention is set to change the tourism landscape to better reflect the demographics of the country, and mainstream township tourism into a key component of the city region’s economy. The programme is being implemented

in the following areas: Soweto, Sophiatown, Fordsburg, Fietas,

Alexandra, Kagiso, Mamelodi, Atteridgeville, Refilwe, Onverwacht, Rayton, Katlehong, Thokoza, Vosloorus, Tembisa, Sharpeville and Boipatong.

In addition, the launch of the first mobile visitor information has enhanced tourism experience in the province. Two new visitor centres will be unveiled later this year to target domestic and visitors from the African continent.

The Cabinet has also approved the Bidding, Hosting and Events Strategy for the Gauteng City Region. This means that municipalities will now have a common approach and centralised resources for hosting major events – this initiative will boost economic growth in the province.

the successful integration of township businesses into the value chains of big business cannot be achieved without the cooperation of the private sector. Many people depend on the private sector for employment and activities that generate income.

“It is this reality that informs the partnerships we strike with established business. The partnership model we are striking with various private sector players is based on principles of radical economic transformation, which entails the democratisation of the ownership and control of the economy,” he explained.

MEC Maile added that the banking sector is responding to the call to transform the way it conducts its business operations. “We have also entered into a partnership with the banking association to explore incubation approaches and innovative financing models for township enterprises.”

“We look forward to more collaborative efforts between government, township businesses and established corporates,” he said.

Programmes to support township business in this financial year:

• 345 township businesses operating in labour-absorbing sectors of the economy such as manufacturing, tourism, ICT, retail and infrastructure businesses will receive financial support from the Community Fund.

• 250 township businesses will benefit from the Township Business Renewal Programme, which offers grants up to R50 000 towards marketing, equipment and refurbishment of operational premises.

• Piloted an invoice discounting system, which allows short-term borrowing to small businesses against outstanding sales invoices. This gives small businesses access to cash flow and working capital amidst payment delays. Fifty (50) township-based businesses are targeted for this initiative.

• The Gauteng Department of Economic Development (GDED) piloted a system that facilitates paying suppliers within 14 days. GDED agencies are currently paying all suppliers within 5 working days.

We are also looking at localising procurement and supplier rotation for purchases below R500 000, said MEC

Creecy.

Gauteng Tourism AuthorityTel: +27 (0) 11 085 2500Email: [email protected]

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The plans to expand the agro-processing industry in Gauteng includes: food processing, beverage and furniture manufacturing as well as the processing of leather products.

While Gauteng occupies 1.4 % of land-mass in the country, it has a fairly extensive agro-processing industry, with over half of food processing companies being based in Gauteng.

The food and beverage sector has experienced 18% growth from 1996 to 2013, and now employs well over 120 000 people in the province.

The sector faces many challenges, including minimal or lack of black participation and a sharp increase in imports.

Since the adoption of the Gauteng Agro-Processing Strategy at a summit held in Soweto in March 2015, the significant progress made includes:

• Facilitating market access and enterprise development for black small holder farmers. Partnership agreements have been reached with Woolworths and Pick ‘n Pay to provide farmers with training in areas such as: product development, quality management, brand packaging and grading as well as post-harvest

The Gauteng Provincial Government is set to introduce a new automated Environmental Impact Assessment (EIA) system.

GAUTENG ENVIRONMENTAL AUTHORISATIONS PROCESS GETS A FACELIFT

The new automated system will enable prospective investors to submit their applications, with supporting documents, electronically and receive updates online about the status of their application as it goes through various phases. It will also make information about zoning and

land use patterns for different areas of the province to be accessible through the click of a button.

The introduction of the system was informed by outcomes of surveys conducted on the cost of doing business

AGRO-PROCESSING TO REPOSITION GAUTENG ECONOMY BASE

in Gauteng. The outcomes pointed out delays in getting environmental authorisations for developments as one of the biggest hurdles to a smooth business environment.

As much as 19% of the 500 small businesses surveyed in 2013 cited glitches associated with the Environmental Impact Assessment process as the biggest challenge for doing business in the province.

According to MEC Lebogang Maile, the new automated system will significantly reduce the turnaround time for environmental impact assessments and decision-making. It will reduce the turnaround time from an average of 18 months to 90 days.

“We have had huge challenges related to land and development in the province. This new system will allow everyone, including communities and prospective investors to understand the planned land use patterns and government’s plans when it comes to land use in Gauteng.

In the previous financial year, GDARD approved 247 Environmental Impact Assessments (EIAs) against the target of 200. These included approvals for the Aerotropolis, the expansion of Lanseria airport and the Ekurhuleni Bus Rapid Transport system.

The Gauteng Environment Management Framework (EMF) gazetted in May 2015 preceded the new automated system. The framework will set the norms and standards for exempting certain activities from requiring environmental authorisations.

The system will ensure consistent decision-making across provincial and local government and a seamless environmental authorisations process. Furthermore, R5 million has been invested into this project.

For more information about the automated EIA system; please contact: 011 240 2500

handling.

• Public hospitals will source 40% of their fresh produce supplies from black emerging farmers. Gauteng aims to increase this figure to 80% by the year 2016.

• Facilitating access to economic infrastructure such as: abattoirs and storage facilities, access to inputs such as seeds, animal feed and fertiliser at competitive prices, market opportunities and integration into established value chains.

• Reviving fresh produce markets that are located near townships. R7 million has been committed to infrastructure upgrades at the Vereeniging Fresh Produce Market.

Furthermore, the Gauteng Department of Agriculture and Rural Development is leading the work to establish four agri-parks in Bekkersdal, Khutsong, Sebokeng and Eikenhof.

The agri-parks will not only increase the volume of economic activities in townships but will expose unemployed youths to farming opportunities.

It will also provide economic infrastructure for clustered agricultural production and encourage agricultural value-adding activities in townships.

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NALEDI SIBIYA

The Gauteng Provincial Government recently launched the Gauteng Business Forum at the Turbine Hall.

NALEDI SIBIYA

Fifteen (15) jewellery manufacturing students graduated from the 2014/2015 class of the Design @ 50 programme.

JEWELLERY DESIGN AND MANUFACTURING TRAINING

The students were awarded their certificates during a graduation ceremony held at the Rand Refinery Recreation Club in Germiston West. These graduates are now equipped with technical knowledge, practical work experience and entrepreneurial skills.

Design @ 50 is a one year post-graduate training programme for candidates with background in jewellery design and manufacturing. The programme is aimed at improving the commercial jewellery design capacity within Gauteng and forms the cornerstone of the Jewellery Manufacturing Precinct (JMP). Design @ 50 is an initiative started by the Gauteng Industrial Development Zone (GIDZ), a subsidiary of the Gauteng Growth and Development Agency (GGDA).

According to Siphiwe Ngwenya, CEO of the GGDA, the programme would not be a success without the private sector partners such as Galaxy & Co, Natal Wholesale Jewellers, American Swiss and Sterns. “The partnership approach is the key to the success of this project. Through these companies, we are able to propel the success in growing the jewellery manufacturing and design sector in Gauteng,” he said.

The programme encourages enrolled students to be entrepreneurial. Consequently, some students have already started their own businesses in jewellery design and sales. Nontando Molefe owns a company called Phatsima Jewellery Designs. Molefe highlighted that through Design @ 50, she now sees the great potential of her business. “I was only used to bench working, but using the Computer Aided Design suite has expanded my skills set and allowed me to design my latest African inspired, luxury jewellery collection, called the Anaya Collection,” said Molefe.

In his keynote address, Lebogang Maile, Gauteng MEC for Economic Development, Environment, Agriculture and Rural Development applauded the graduates. He said that the majority of skilled jewellers in South Africa are over 50 years old. This poses an increased threat that skills in the jewellery manufacturing sector are dwindling if interventions such as the Design@ 50 studios are not undertaken.

The Design @ 50 Commercial Jewellery Design Programme operates from its customised premises in Germiston, with rent payment sponsored by Rand

GAUTENG BUSINESS CONSULTATIVE FORUM

CLASS OF 2014/2015 DESIGN @50 PROGRAMME

Refinery. The students receive training in: market research, commercial jewellery design and product development, utilising state of the art Computer Aided Design (CAD) and 3D Printing Technology.

Candidates that are not employed are then placed in an internship programme

for workplace experience at the leading jewellery chain stores across the country.

The forum provides a platform to foster dialogue and cooperation between government, civil society and the business sector.

The launch brought together senior public servants from Gauteng together with business and civil society leaders from across sectors, as well as the leadership of township based informal trading associations. These sector engagements were first mentioned in Premier Makhura’s inaugural State of the Province Address in 2014, when he outlined the vision of the fifth administration to transform, modernise and re-industrialise the economy of Gauteng.

MEC Lebogang Maile told the delegates that, “this forum is meant to make it easier for various organs of state, private sector and civil society to connect, communicate and also tackle challenges through serious dialogue and a shared vision that will move the Gauteng City Region forward.” Maile was resolute that this forum should not be seen as just another talk shop or another organisation, rather it should be a network.

Representing the business community, Ms Khanyisile Kweyama, the head of Business Unity South Africa (BUSA), said the business community welcomes the

AFRO POP STAR AND BUSINESS WOMAN, TSHIDI MHOLO IN THE MIDDLE WITH GUESTS.DELEGATES FROM THE SOUTH AFRICAN CHAMBER OF COMMERCE.

“This forum is meant to make it easier for various organs of state, private sector and civil society to connect, communicate and also tackle challenges through serious dialogue and a shared vision that will move the Gauteng City Region forward” - MEC Lebogang Maile

opportunity to engage with government especially when it affords them the opportunity to contribute towards education, skills development and job creation. She said that, ‘BUSA is keen to partner with SMMEs and push the township economy forward.’

Premier Makhura told the delegates that, ‘the vision of a seamlessly integrated city region and a new inclusive, smart, innovation driven, knowledge based economy that is based on future industries has been shared with business chambers big and small from all sectors.

He further added that this forum will contribute towards greater cooperation and less bureaucratic red tape for doing business in Gauteng.

The evening culminated in the signing of the an agreement between the Gauteng Provincial Government and the Business Community represented by Premier Makhura and Ms Kweyama.

For more information about the Design @50 Programme Please contact Gauteng Growth and Development Agency (GGDA):011 085 2321

For more information about the Gauteng Business Consultative ForumPlease Contact 011 355 8000.

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NDLELANHLE KHUZWAYO

“What counts in life is not the mere fact we have lived. It is what difference we have made to the lives of others that will determine the significance of the life we lead.” - Nelson Mandela.

MAKE EVERYDAY A MANDELA DAY

On 18 July 2015, the world joined hands in commemorating the life of one of the greatest leaders of all time, former State President, Nelson Rolihlahla Mandela.

Mandela Day, as it is commonly known, is a day inspired by a call that Tata Madiba made for the people to grasp on the baton of leadership and address the social injustices in our communities. The message behind Mandela Day is simple: Everyone has the ability and responsibility to make a positive impact and make the world a better place.

The writing is on the wall that government alone cannot triumph over the triple challenge of poverty, inequality and unemployment. I like the slogan of the Gauteng Provincial Government, “Together, Moving Gauteng City Region Forward”. It epitomises the kind of collaboration the government aims to foster with the people. The government has an enormous task, however citizens can also play their part towards the common goal.

There is no need to conduct a survey to ascertain the high rate of unemployment. The number of people, especially youth, loitering the streets in the townships during the day is enough evidence to prove joblessness is a serious challenge in South Africa. On the other hand, the less number of black people participating in the mainstream economy paints a vivid picture they don’t have a share in the economic pie of the country.

These challenges cannot be solved over 67 minutes or by certain people. All of us must emulate the leadership qualities of Madiba and advance active citizenry. The fiery personality and unwavering steadfastness must be embedded in our hearts. Folding hands and hissing from the side-lines will not help us to keep the legacy that uTata Madiba has left with us.

Imagine if leaders like Nelson Mandela, Oliver Tambo, Walter Sisulu, Anton Lembede, to name a few; never cared about the struggle for freedom. South Africa would not be relishing the democracy that we pride ourselves of today. The freedom of this country was

achieved through grief, sweat and blood. The freedom fighters, who opposed the apartheid government, sacrificed their lives, careers and families to emancipate people from oppression. This is what true leadership is all about - standing firm and making bold decisions regardless of unfavourable circumstances.

What is not often said about uTata Madiba is that after he dropped out of University of Fort Hare, where he was studying Bachelor of Arts degree, he went to Johannesburg and worked as a security officer in the mine. Even at that time, Mandela was always conscious about the role he needed to play in his lifetime. In the book titled, ‘A Leader without a title’ author Robin Sharma elaborates on how one can work with and influence people like an icon, regardless of their position. In the book, Sharma explains that one does not need to be a leader to lead or to make a difference. Making a positive impact in someone’s life starts with people in your neighbourhood.

In reiterating the statement made by uTata Madiba: “It is now in your hands”, the burden must not only fall on government’s shoulders - everyone has a role to play towards upliftment of

communities. The challenges that we face as a country present an opportunity for everyone to make a difference – make everyday a Mandela Day!

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