Gauteng’s current business landscape
Gauteng has long been known as South Africa’s wealthiest province and our country’s financial hub. According to Gauteng Premier Panyaza Lesufi, in his recent State of the Province Address, “Gauteng’s economy has outperformed other provinces significantly, surpassing the combined economies of the Western Cape, KwaZulu-Natal and Limpopo.”
As the smallest of the nine provinces in terms of area size, it has the largest economy and the national reputation of being the province to go when looking for work. Key industries include banking, information technology, real estate, transport, broadcast and print media as well as private healthcare companies and a dynamic consumer and leisure retail sector.
Despite the difficulty of the last few years, it is indicated that not only has Gauteng returned to pre-COVID business levels but also that it is growing and thriving. Even in the face of increasing competition from other provinces, Gauteng remains strong across the minerals extraction and processing and automotive sectors, with particularly positive growth being seen across manufacturing, construction and tourism.
There continues to be a strong focus on growing small businesses. For example, many projects across Gauteng’s construction sector are creating and providing opportunities for smaller businesses. The Gauteng business culture can be likened to that of a micro and small business culture. This is further validated by Lesufi’s earlier address, in which he discussed the creation of opportunities for small, medium and micro enterprises.
Yet, the challenges do remain. Over and above increasing global and local pressures – many of which are well documented – there are some recurring themes present among the businesses with which I work:
- Finding businesses that ‘match’ or ‘fit’ your target market. It is not enough to simply ‘know’ your product or ‘understand’ its value and benefit. It needs to be communicated – constantly – and to your intended audience(s). What you sow today, you will reap tomorrow. A continued focus on marketing is therefore essential for any business and business owner.
- Late payments. Outdated, inadequate or a lack of proper processes can seriously hamper business operations including that of finance. Irrespective of whether accounts are payable or receivable, late payments can jeopardise the financial health of one’s business. Regularly reviewing one’s internal systems and processes is necessary to minimise this risk.
- Increased legislation requirements. As bothersome as certain legislations or areas of compliance may appear, it nevertheless remains essential to conform with established laws to ensure safe and fair treatment of all parties.
While, most assuredly, not applicable to Gauteng only, not all challenges are directly related to business. A failing infrastructure, the result of a lack of maintenance and theft, compounded by a battered economy, the rising cost of living and transport together with rising personal debt and unprecedented levels of crime continue to exacerbate everyday business difficulties.
Despite this, business continues to innovate in Gauteng and to grow. According to Invest SA, “there are currently 15.2 million people living in Gauteng. This is projected to grow to 18 million by 2030 and increase to between 22 and 25 million by 2050. As the principal economic hub in South Africa, Gauteng Province is uniquely positioned to be a beacon for the goal of inclusive growth. It is also the province where exponential possibilities emerge.”
Brendon Saunders
ActionCOACH Gauteng
