Driving investment in a time of turmoil

“Hence, export trade is also important for our enterprise development, where the GGDA has formed partnerships with mainstream businesses and GEP [Gauteng Enterprise Propeller] to increase the performance of the sector through funding, clustering and skills development,” says Tamale.

In August Bloomberg said that the rand gained more than 16% against the US currency since the start of 2016, while in contrast, the currency of Africa’s first-ranked economy — Nigeria’s naira — lost more than a third of its value.

With intra-African trade top of the GGDA and GIC agenda, such developments mean just more than numbers. Tamale says the implication for Gauteng is that the GGDA now has to look for niche markets both in Africa and outside the continent.

“Hence, in Africa we aim to maintain our dominance in the manufacture and supply of capital equipment, increase manufacture and sale of agro-processed products to address food insecurity on the continent, increase our trade diplomacy in emerging growth areas such as Côte d’Ivore, Kenya, Rwanda, Uganda and Ethiopia, and of course maintain our trade engagements with the SADC countries,” she says.

Across the seas, says Tamale, the GGDA is looking at countries that are faring fairly well in the gloomy global economic environment. “Countries such as [the] US, UK, Germany, Italy, Spain, India and China are important for our trade agenda,” she says.

Although the South African economy is currently performing better than that of Nigeria, Tamale warns: “As a matter of fact, the rankings of countries per GDP performance in 2016 will only be known after the release of the 4th quarter data in April 2017.

“Currently SA remains [the] third-largest economy in Africa with a GDP of $322.9, after Egypt ($330.77) and Nigeria ($490.2).”

The GIC is also working to assist the SMME sector; through its investment and trade unit, the GGDA has developed a programme to assist SMMEs to become part of mainstream exporting.

“The export development programme is to ensure that their produce is able to meet the international standard over the years, [and] this has proven to be a success as they are introduced into new markets and are able to partner with big companies locally to satisfy the orders they receive,” says Tamale.

She says by ensuring that foreign investors utilise local businesses and products that are in line with their requirements, “those SMMEs develop in all areas of business and automatically are empowered and grow the economy”.

“When facilitating FDI projects into Gauteng, the GGDA always creates business linkages between large companies and local small firms. We also work very closely with our sister agency the GEP, which has the mandate to provide both financial and non-financial support to SMMEs.”

The GIC’s location in richest square mile in Africa is also quite strategic and eases the burden on businesspeople, as many vital amenities are within close proximity of each other.

Tamale says the GIC one-stop shop, which is located between the US Embassy and the Apple store on Sandton Drive, “aims to make it quick and easy to do business in the province”.

“We facilitate and walk the path with you, as you grow and expand your business, be it identifying turnkey projects, or looking for a suitable site for your factory. Our task is to help businesses grow and progress. The size of your business doesn’t matter, nor the sector,” she says.

“For starters, the location — chosen specifically for its proximity to the Sandton business district. Another [is] the Visa Facilitation Services Centre (VFS) for international business representatives and work permits, which offers a fast turnaround for visa applications; and then there are the growing numbers of visitors and representatives looking to do business in Gauteng. Key to our success has been the buy-in from our partners, who are located and have offices within the centre.”

She cites, for instance, the example that “if you have a tax issue, Sars [South African Revenue Service] is on site to assist; if you are having municipal problems, the City of Joburg [CoJ] is at hand.”

Other partners are Ernst and Young, the department of trade and industry, Mercantile Bank of Portugal, Brand South Africa, and the departments of agriculture and rural development.

“Business[es] invest where they can generate profit and that can be related to easy access to logistics, number of people as clients, workforce and skills availability.

“The GGDA/GIC also assists in the facilitation [of development opportunities] in other provinces [that have] specific business demand[s] by using our counterparts or sister agencies; our main goal remains South Africa.”