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Gauteng aims to boost logistics to support manufacturing exports

25th February 2003

By: Martin Czernowalow

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Gauteng Premier Mbhazima Shilowa said the provincial government would this year continue with the upgrade of access to the Johannesburg International Airport, as well as the establishment of an industrial development zone (IDZ) in the area.

Speaking at the opening of the Gauteng Legislature, Shilowa said this would ensure that products are exported quickly and efficiently out of the province and attract even more export-oriented companies.

Since the designation of the area as an IDZ by the Department of Trade and Industry in November last year, seven expressions of interest have already been recorded and, Shilowa revealed, government is looking at the aerospace industry and world-class handling facilities for perishables as anchor tenants for the zone.

“This will make it possible for us to respond to the announcement by the President, identifying the aerospace industry as a growth sector requiring focused attention by the government,” he stated.

Shilowa added the Gauteng Economic Development Agency (Geda) is actively promoting exports and has subscribed to the largest and most focused e-business platform in the world – Global Sources.

“Geda has identified 60 Gauteng-based manufacturing services that will showcase two products each in categories such as food and beverage, health and beauty, furniture, auto parts and aluminium products, ICT and electronics,” he said.

“This programme ensures that locally-manufactured products of world class receive the necessary exposure to become internationally competitive. This will, in turn, increase job opportunities for our people”.

Geda continues to facilitate increasing amounts of new investments and attracted R610-million-worth of new investments during the 2001/2 financial year. Shilowa said the agency is on target to reach a figure of R1,5-billion by the end of this financial year.

Currently, he added, government is investigating the creation of an outsourcing business process hub in Johannesburg, which would be export-oriented. The possibility of selling services, such as call centres, human resources and payroll administration, asset management, unit trust administration and insurance claim processing, to English-speaking foreign companies is being examined.

Commenting on the Gautrain Rapid Rail Link, Shilowa said the project continues to ‘gather full speed’ and is on course for construction to start in February 2004 and be completed within the stipulated time frame.

He said that other Blue IQ projects, aimed at boosting economic growth through providing strategic economic infrastructure, are progressing well.

“The Newtown Cultural Precinct is almost complete. Last year, the Metro Mall, M1/Carr interchange and Carr gardens housing project were completed. The Bus Factory was also renovated. This year, on July 20, we will open the Nelson Mandela Bridge, which is already soaring over the western side of our city,” Shilowa added.

He also reported that work on Constitution Hill is progressing well and the new Constitutional Court building would be opened this year.

“Our capacity to implement capital projects is reaching the point at which we can safely say that what has been planned is being delivered. In the first nine months of this financial year we had already spent R2,6-billion, exceeding last year’s total spending of R2,4-billion on capital expenditure,” Shilowa stated.
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