'Economic powerhouse' moniker unlikely to change

Gauteng’s pivotal role as the

economic powerhouse in

southern Africa is expected to remain

undisputed for many years to come.

With more than 70% of companies

– both local and multinational – still

preferring to have their headquarters

in the province, it contributes heavily

across several key areas including

financial, manufacturing and

transport.

According to Duncan Bonnett

of Whitehouse & Associates, the

province is an important player in

the region for most sectors. “With

the exception of the petrochemical

industry that is largely being centred

around Saldanha in the Western

Cape, and the renewable energy

sector being driven from the Western

Cape, Gauteng remains the place

where decisions are made both from

a local and regional perspective.”

Bonnett said a lot of project

activity was also driven out of

Johannesburg, in particular as

this was still the headquarter hub

for most foreign multinational

companies. Even though the province

is completely landlocked and at least

500km from the nearest port this is

not a scenario that will necessarily

change anytime soon.

“Gauteng remains the place where

decisions are made. So companies

may not be establishing their

manufacturing sites here any more,

but they are definitely still taking all

of their strategic decisions from the

province,” said Bonnett. “It is also the

place from which they are developing

their southern African strategy,

and so taking this perspective into

account, Gauteng remains very

relevant as a province.”

Gauteng continues to be

responsible for at least a third of

South Africa’s GDP, has the highest

per capita income, the highest

disposable income and the highest

literacy rate in the country.