Gauteng: Eastern Development Corridor
The greatest concentration of manufacturing in South Africa resides within Ekurhuleni. The 15km radius stretch between Wadeville and Alrode, south-west of Alberton, contains the single biggest concentration of industrial enterprises in South Africa and the area is a leader in the production of structural steel and fabricated metal products.
Africa’s biggest and busiest airport, the OR Tambo International Airport (ORTIA), is a crucial and strategic asset, promoting and attracting businesses across a wide range of sectors. The process of consolidating Ekurhuleni’s position as Africa’s largest aerotropolis and manufacturing hub is underway.
These processes include the following projects:
-
-
- ORTIA Special Economic Zone (ORTIA SEZ)
- Tambo Springs Logistics Gateway
- The PRASA-Gibela rail manufacturing hub in Nigel
- The expansion of the airport by Airports Company South Africa
- Other major private sector developments taking place along R21 highway
-
The ORTIA SEZ encompasses three distinct geographical precincts as well as a number of industry-specific zones such as the Jewellery Manufacturing Precinct. Further zones are being developed to cover agro-processing, pharmaceuticals and fuel-cell technology.
Taken as a whole, these projects will unlock over R200-billion worth of investment.
Investments
In the 2023/24 FY the Eastern Corridor accounted for 53% of the total amount of investment facilitated by the GGDA, of R30.2-billion. In domestic investment attracted, the Eastern Corridor was responsible for 24% of the total. In terms of trade, rail and manufacturing, both strong suits of the Eastern Corridor, play a vital role. Rail’s contribution in the financial year was R198-billion and manufacturing R617-billion.
Supported by bankable feasibility studies and business cases, the ORTIA SEZ is leveraging its competitive location next to the airport to promote the production and export of products that utilise air freight as a mode of transport. These include time-sensitive products such as fresh foods and pharmaceutical– and health products.
Other products identified include electronics, capital- and mining equipment components as well as inputs that support the renewable energy industry. These inputs include electrolysers and fuel cells that support the production and export of green hydrogen.
Leveraging off its bankability and infrastructure roll-out readiness, the ORTIA SEZ attracted interest at the Infrastructure Africa Conference held in Cape Town in July 2024, where a team engaged with potential investors.
The Trade Investment and Regulatory Enablement unit (TIRE) is tasked to promote and attract trade and investments into the Gauteng City Region. TIRE’s strategic focus areas, as they relate to trade facilitation, are to assist Gauteng companies to globalise through trade and export activities. The GGDA’s AfCFTA roadmap focuses on identifying anchor countries in key regions where Gauteng companies are supported, with a view to help them expand. The team has reviewed the Global Export Passport Programme (GEPP), which is the blueprint for export readiness training led by the Department of Trade, Industry and Competition (dtic).
According to the 2024 Global Data Centre Market Comparison, Johannesburg is listed as the only African city in the top 10 established markets for data centres in the Europe, Middle East and Africa (EMEA) region. The north and east of Johannesburg are proving to be the preferred locations for big data centre operators with existing operators continuing to grow and expand.
The surge in AI technology deployment and demand for more efficient cloud storage drives the growth of data centres globally, underscoring the country’s relevance in the global data centre landscape. ICT investment was ploughed into data centre infrastructure that powers, cools, protects and connects the technology of the world’s well-known hyperscalers, cloud providers and large enterprises.
In addition, the investment brought international best practice in vendor-neutral data centre management to South Africa to give businesses a technically superior, physically safer and lower cost environment for their information systems.
ORTIA SEZ
The Gauteng Industrial Development Zone Development Company (GIDZ) is the special-purpose entity which manages the development and operation of the designated SEZ at OR Tambo International Airport.
The goal is to advance manufacturing and beneficiation activities, contributing to the positioning of Gauteng as a leading, world-class economic and export hub. In FY 2023/24, the GIDZ created 4 340 jobs.
The ORTIA SEZ encompasses three distinct land parcels at or near the airport:
-
- ORTIA SEZ Precinct 1: in the airport
- ORTIA SEZ Precinct 2: adjacent to Precinct 1 but outside the airport boundaries
- Springs Precinct: 30km from the airport, next to the Impala Platinum Refinery
ORTIA Precincts 1 and 2 target industries that produce high-value, low-mass products suitable for airfreight such as jewellery, diamonds, pharmaceuticals, electronics and agro-processing. The Springs Precinct is strategically positioned to enhance the beneficiation of Platinum Group Metals (PGM), focusing on products like fuel cells due to its proximity to the PGM refinery. It is also identified as an ideal site for producing capital and mining equipment.
Supported by bankable feasibility studies and business cases, the ORTIA SEZ is leveraging its competitive location next to the airport to promote the production and export of products that utilise air freight as a mode of transport.
ORTIA SEZ Precinct 1 hosts the GIDZ head office, the Jewellery Manufacturing Precinct (JMP) and one of the world’s largest fresh-food factories¹. In March 2024, King Philippe of Belgium was present at the opening of the facilities of Pluczenik in the JMP, which also hosts 19 other companies including a precious metal refinery, diamond traders, cutting and polishing companies, jewellery manufacturers and a skills centre.
It also houses the South African Diamonds and Precious Metals Regulator and the State Diamond Trader. All top structures have been completed in this area. The annual target to operationalise two cluster components was successfully achieved in FY 2023/24, marking a significant milestone in the development of Precinct 1. As scheduled, tenant-billing activities commenced, further solidifying the progress made within this timeframe.
Comprising 265 000m² of developable space, the OR Tambo SEZ Precinct 2 development is well positioned to support the production and export of time-sensitive products such as medicines. A Pharmaceutical Cluster² is envisaged for this precinct.
By facilitating increased exports through OR Tambo International Airport, Precinct 2 will contribute to strengthening South Africa’s position in the global market, particularly in pharmaceuticals, medical devices and electronics.
Skills development and mentorship
A cornerstone of the GIDZ strategy is the focus on skills development through its mentorship programmes. During FY 2023/24 the programme aimed to include five interns, focusing on ORTIA SEZ’s operations and construction functions. Although some interns resigned, the programme continued to attract new participants and actively engaged with educational institutions to replenish and expand the intern pool. As a result, The ORTIA SEZ operations and construction internship programme currently hosts a total of seven interns.
Enterprise development and SMME support
The ORTIA SEZ has been proactive in fostering enterprise development, with a total of 51 SMMEs benefiting from the zone during the FY 2023/24. These SMMEs were involved in various capacities, from providing essential services like plumbing and fire engineering to participating in facility management, security management and event management services. Such initiatives demonstrate the GIDZ’s commitment to empowering local businesses and alignment with national development objectives.
Proposals for future cluster developments
Various clusters are proposed for future development within the ORTIA SEZ. These clusters would comprise several elements:
- Medical Cluster: sub-assembly plant; labelling and packaging; logistics, warehousing and cold storage; sterilisation facility; regulatory and testing laboratories; plant heating and cooling; water purification; research and development and innovation.
- Agro-processing and Agri-tech Cluster: food factory; cannabis cluster; supplier development; value-chain providers; Innovation Centre.
- Component and Metals Manufacturing Cluster: avionics; electronics; 3D printing; metals fabrication; Innovation Centre.
Contact/Enquire
Businesses operating- or wishing to expand in these sectors are encouraged to find out more about the incentives and opportunities to set up operations in ORTIA SEZ. Contact the team today!
¹ World’s second largest refrigeration plant launched at Gauteng IDZ
² OR Tambo SEZ’s bold plans for a globally competitive pharma and medical manufacturing cluster
