Redrawing the Gauteng economic geography- 23 May 2022

Office of the Premier 2022/05/22 - 22:00



Lerato Mailoane 

The Department of Economic Development (GDED) is redrawing the economic geography of the Gauteng City-Region.

Through the Township Economic Development Act (TEDA), the department will radically transform, modernise and re-industrialise the provincial economy in pursuit of inclusive growth and shared prosperity.

TEDA, which has been labeled the "new deal" is aimed at ensuring that townships and informal settlements become self-sufficient and are vibrant economic centres.

Tabling the 2022/23 budget vote, MEC Parks Tau said a prototype Township Enterprise Zone cluster, ahead of full promulgation of the TEDA has been deployed. 

The department is also finalising the regulations and instruments of TEDA, including draft model by-laws and regulations to be gazetted soon.

A target B-BBEE resources and Enterprise and Supplier Development (ESD) accelerator at Township Enterprise Zones (TEZs) to build business capability and agglomerated pipelines is also on the cards.

Through the Public-Private Growth Initiative (PPGI), Tau said the department has identified over 35 partnerships covering 65 distinct precincts that will anchor the new TEZs.

In addition, there is progress on work done at Special Economic Zones (SEZ) across all corridors.

In the Vaal SEZ, land assets have been identified and a master plan will be completed by July 2022.

The Western Corridor / N12 SEZ has been identified for agro-processing, Green H2, hemp cultivation and processing, and bus manufacturing.

Negotiations are underway on allocating land use rights into a legal vehicle controlled by the state in the O.R. Tambo SEZ.

At the Lanseria High-Tech SEZ, three clusters of investors with land assets are finalising the establishment of a real estate investment trust.

Turning on work programmes, Tau announced that the rollout of Global Business Services (GBS), Broadband, and ICT in Nasrec is on track for prototype development by June 2022.

In the energy sector, two Commercial Green Microgrid proposals – Protea Glen and TASEZ – are under negotiation with the Industrial Development Corporation (IDC).

In the automotive sector, the Tshwane SEZ's (TASEZ) focus for phase 2, is on securing battery manufacturing for the next generation of Ford vehicles.

Negotiations with charging station investors and funders to anchor the new charging station grid strategy are underway.

In the construction sector, Tau said the Installation, Repair, and Maintenance (IRM) programme – including platform/system deployment through the Izinga partnership in TASEZ and Baragwanath areas – is making tangible progress.

On transport and logistics, the Gauteng-Eastern Cape High-Capacity rail corridor has been gazetted as a Strategic Integrated Project (SIP). The MEC said the focal point of this rail corridor is designed to support export-driven growth initiatives.

Overall, the department has been allocated an aggregated budget of R5,3 billion over the 2022 Medium Term Expenditure Framework (MTEF) cycle. 

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