Gauteng
South Africa
Sector
Agriculture & Agri-processing
Energy
GEDA acts to turn the global financial crisis into a Golden Opportunity for the province, targeting key investment sectors for investors
The Gauteng Economic Development Agency (GEDA) is streamlining its operations in order to better combat the effects of the current financial crisis and has identified some key projects that can unlock growth in the province.
GEDA’s current investment projects
GEDA is working on identifying and packaging a number of high-impact projects that can unlock manufacturing growth in certain key sectors. These include:
- Agricultural Hub initiative (cut flower, mushrooms, essential oils). GEDA is working with partners to facilitate funding for previously disadvantaged individuals identified for participation.
- Production of solar water-heating panels. GEDA is identifying and targeting investors who have expressed interest to invest in this industry. This includes an initiative for the conversion of cars from liquid to gas.
- GEDA has launched an Export Portal which seeks to proactively market products of Gauteng-based companies to foreign markets.
Making GEDA more efficient
The underlying considerations were that despite the crisis, some emerging economies like South Africa will remain attractive to foreign investors. In addition it was noted that new sources of foreign direct investment (FDI) have emerged, especially from the South; and that a number of fast-growing industries are demonstrating promising FDI prospects, such as renewable energy and healthcare.
In view of the fact that less FDI will mean tougher competition for investment projects, GEDA has chosen to prioritise the following remedies in the short to medium term:
- Business Retention and Aftercare
In order to soften the blow of the economic slowdown on the business community, reduce the possibilities of FDI leaving the province and ensure that companies stay competitive, GEDA has prioritised business retention and aftercare services.
This will involve strengthening the ties between foreign affiliates and the local economy by promoting and facilitating local supply chains.
Targeting investors in Promising Sectors
The second element involves shifting investment promotion efforts towards foreign markets and economic sectors that offer better FDI prospects. The sectors of focus will also include Clean Technology Energy, Healthcare, and Aerospace.
In light of the fact that new sources of FDI are emerging in the South, a concerted effort will be directed at targeting investors in countries such as India, China, Brazil, Taiwan, Korea, Middle East and key identified sovereign wealth funds.
- Policy advocacy
GEDA’s efforts will be directed at addressing immediate problems that companies face due to the crisis. However, the long term goal is to strengthen the competitiveness of Gauteng by advocating policies that will help improve infrastructure, public health, education and training.
- Government Funded Infrastructure Programme
The fourth intervention is to take stock of government investment through state-owned enterprises such as Telkom, Eskom, Transnet and provincial government departments, as they provide opportunities for developing domestic industry.
For more information on some of the projects mentioned here please contact: Mr. Mudunwazi Baloyi, General Manager: Investments, Trade and Projects Facilitation at Mudunwazi@geda.co.za or +27 11 833 8750
