Demacon West Rand Industrial Development Strategy July 20131

West Rand Industrial Strategy Development Strategy - July, 2013
West Rand Industrial

Strategy
DEVELOPMENT STRATEGY
July
2013
DEMACON Market Studies

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The information contained in this report has been compiled

with the utmost care and accuracy within the parameters
specified in this document. Any decision based on the
contents of this report is, however, the sole responsibility of
the decision maker.
Enquiries:
Hein du Toit
+27 12 460 7009 (t)
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+27 82 8988 667
hein@demacon.co.za
www.demacon.co.za
ii
TABLE OF CONTENTS
DEVELOPMENT STRATEGY .....................................................................................................1
CHAPTER 1: SPACE DEMAND GROWTH FORECAST ...........................................................2

1.1 INTRODUCTION .................................................................................................................2
1.2 INDUSTRIAL SPACE DEMAND MODELLING ...................................................................2
1.2.1 MOGALE CITY LOCAL MUNICIPALITY SPACE DEMAND ............................................ 3
1.2.2 MERAFONG CITY LOCAL MUNICIPALITY SPACE DEMAND ...................................... 5
1.2.3 RANDFONTEIN LOCAL MUNICIPALITY SPACE DEMAND .......................................... 7
1.2.4 WESTONARIA LOCAL MUNICIPALITY SPACE DEMAND ............................................ 9
1.3 SYNTHESIS ......................................................................................................................11
CHAPTER 2: TOWN PLANNING PROCEDURES AND RELATED ENGINEERING SERVICES

..........................................................................................................................................12
2.1 INTRODUCTION ...............................................................................................................12
2.2 TOWN PLANNING PROCEDURES ..................................................................................12
2.3 WEST RAND INDUSTRIAL NODES ENGINEERING SERVICES ...................................14
2.4 ADMINISTRATIVE INTERVENTIONS AND INCENTIVES ...............................................17
2.5 SYNTHESIS ......................................................................................................................19
CHAPTER 3: INDUSTRIAL DEVELOPMENT STRATEGY FUNDAMENTALS .......................20

3.1 INTRODUCTION ...............................................................................................................20
3.2 WEST RAND INDUSTRIAL DEVELOPMENT VISION .....................................................20
3.3 WEST RAND INDUSTRIAL DEVELOPMENT STRATEGY OBJECTIVES.......................21
3.4 ECONOMIC PRINCIPLES FOR INDUSTRIAL NODAL DEVELOPMENTS .....................21
3.5 WEST RAND INDUSTRIAL STRATEGY FUNDAMENTALS ............................................23
3.6 SYNTHESIS ......................................................................................................................28
CHAPTER 4: INDUSTRIAL DEVELOPMENT PROJECTS ......................................................29

4.1 INTRODUCTION ...............................................................................................................29
4.2 PROJECTS / INITIATIVES PER LOCAL MUNICIPALITY ................................................29
4.3 SECTOR SUPPORT .........................................................................................................43
ANNEXURA A: INCENTIVE SCHEMES ...................................................................................44
iii
DEVELOPMENT STRATEGY
The Industrial Development Strategy builds on the finding of the West Rand Industrial Status
Quo Report. The strategy document commences with a long term industrial space demand
forecast for each of the respective Local Municipalities on the West Rand. The objective for this
forecast is to inform future industrial space requirements, the respective spatial development
frameworks as well as each municipalitys future infrastructure budgets. Secondly, this
document provides an overview of the process that industries have to follow should a proposed
new manufacturing process require an amendment of the zoning scheme. Interviews where
held with industrialist in each respective industrial node. These engagements identified
potential interventions concerning engineering services capacity, stability and reliability.
In the context of the above, a refined industrial strategy was formulated for the West Rand. The
strategy is based on a three-tier approach and addresses:
Upgrade of existing industrial nodes

Expansion of well performing industrial nodes
Establishment of new nodes / corridors
Sector support and institutional arrangements.
The document concludes with a project list set for each of the local municipalities in terms of
the existing industrial nodes and the proposed / new industrial nodes.
The Strategy document consists of the following main elements:
Space Demand Growth Forecast

Town Planning Procedures and Related Engineering Services
Industrial Development Strategy
Industrial Development Projects
See Annexure A for additional National Incentives Schemes.
1
CHAPTER 1: SPACE DEMAND GROWTH FORECAST
1.1 INTRODUCTION
This chapter analyse the space demand growth forecast and indicates the anticipated capital
investment this will translate into the next two decades for the West Rand District Municipality
and the four respective local municipalities. The four local municipalities are as follows:
Mogale City Local Municipality

Merafong City Local Municipality
Randfontein Local Municipality
Westonaria Local Municipality
1.2 INDUSTRIAL SPACE DEMAND MODELLING
The following section summarizes the development potential with reference to the industrial
space demand for the West Rand District Municipality and each of the four local municipalities
(Mogale City, Merafong City, Randfontein and Westonaria).
The following paragraphs provide definitions of respectively demand and supply for the
industrial and commercial market.
INDUSTRIAL DEFINITION
Wholesale and distribution refers to storage and wholesale facilities from where products
(usually in large quantities) are distributed. This does not necessarily include an industrial or
manufacturing function. Wholesalers do have a buying and selling function products are
usually sold in large quantities. An example is such as wholesale trade in agricultural materials
and livestock.
DEFINING DEMAND
The demand in the industrial and commercial market is dependent on the following aspects:
whol w x s s%
D = f {Po , P% , Q , R, T , Y; R ; R }
Where:
Po = Population size
P% = Population growth
Qw = Quality of existing facilities
R = Rental levels
Tx = Property rates and taxes
Y = Household income
Rs = Retail sales
Rs% = Retail sales growth
2
DEFINING SUPPLY
The supply of industrial and commercial land users can be described as being the following:
Swhol = f {Dwhole, Cw, Vw, Lu, Ia, GLAw, Cc}
Where:
Dwhole = Demand
Cw = Competition
Vw = Vacancies
Lu = Surrounding land uses
Ia = Infrastructure availability
GLAw = Current usable / rentable area
Cc = Construction cost
SPACE DEMAND MODELLING
It is known that the demand for industrial / commercial space depends on the production of
goods within a specified area. The following figures illustrates cumulative additional land
demand for the specified local municipalities. Subsequent demand modelling indicators provide
insight to the performance of current and future demand of the industrial market within the West
Rand District.
1.2.1 MOGALE CITY LOCAL MUNICIPALITY SPACE DEMAND
GAP ANALYSIS
Development Type Effective Market Gap Development Prospects
Industrial Yes High
DEMAND ANALYSIS
goods within a specified area. The following figure illustrates cumulative additional land demand
for the specified area. Subsequent demand modelling indicators provide insight to the
performance of current and future demand of the industrial market of the Regional Economy.
3
Figure 1.1: Cumulative Additional Land Demand (Regional Economy)
Cumulative Land Demand
300,00
250,00
200,00
Hectare
150,00
100,00
50,00
Cumulative Demand Frontier

-
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Year
Source: Demacon Space Demand Model, 2013
The following figure illustrates forecast land take-up. It is evident that the greater percentage of
take-up will be by warehousing.
Figure 1.2: Forecast Land Take-Up (Combined Regional Economy)

Forecast Land Take-Up
2033 100,66 165,01
2028 86,13 139,91

Year
2023 65,87 104,93
Up to 2018 36,27 55,47
- 50,00 100,00 150,00 200,00 250,00 300,00

Hectare (ha)
Manufacturing Warehousing

TAKE-UP FORECAST
2
Table 1.1: Synthesis of Industrial Space Demand Modelling results - m GLA (constant values),
2018 to 2033
Cumulative Additional Space Demand Up to 2018 2023 2028 2033
Total Manufacturing (Hectares) 36,27 65,87 86,13 100,66
Total Warehousing (Hectares) 55,47 104,93 139,91 165,01
Total: Mogale City LM 91,74 170,81 226,04 265,67
Source: Demacon Industrial Space Demand Model, 2013
Table 1.2: Mogale City LM Recommended Industrial Component (Short to medium development
prospects)
Variables Values
Size of development (sq m) 132.8 hectares
Capital Investment (Rbillion) (2013 constant values) R12 6 billion
Employment (on-site) 24 152.2
Parking bays 26 467.5
Parking infrastructure & landscaping cost (Rmillion) (2013
R632 million
constant values)
Mogale City lends itself to the development of industrial developments of approximately

132.8 ha which translates into a capital investment of R13.2 billion.
The optimum point of market entry is 2013 / 2014, with a long-term (10 to 20 years)
implementation period.
1.2.2 MERAFONG CITY LOCAL MUNICIPALITY SPACE DEMAND
GAP ANALYSIS
Industrial Yes Low / Medium
DEMAND ANALYSIS
25,00
20,00
15,00
Hectare
10,00
5,00

-
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Year

2033 7,44 12,38
2028 6,47 10,70

Year
2023 4,06 6,54
Up to 2018 1,58 2,42
- 5,00 10,00 15,00 20,00 25,00

Hectare (ha)

TAKE-UP FORECAST
2
2018 to 2033
Total: Merafong City LM 4,00 10,60 17,16 19,82
Table 1.4: Merafong City LM Recommended Industrial Component (Short to medium

development prospects)
Variables Values
Capital Investment (Rmillion) (2013 constant values) R941 million
R47 million
constant values)
Merafong City lends itself to the development of industrial developments of approximately

9.9 ha which translates into a capital investment of R988 million.
1.2.3 RANDFONTEIN LOCAL MUNICIPALITY SPACE DEMAND
GAP ANALYSIS
Industrial Yes Medium / High
DEMAND ANALYSIS
180,00
160,00
140,00
120,00
100,00
Hectare
80,00
60,00
40,00
20,00
-
2013
2014
2015
2016
2017
2018
2020
2021
2023
2022
2019
2024
2025
2026
2027
2028
2029
2030
2031
2032
Year

2033 59,90 97,84
2028 53,16 86,22

Year
2023 37,59 59,32
Up to 2018 19,35 29,17
- 20,00 40,00 60,00 80,00 100,00 120,00 140,00 160,00 180,00

Hectare (ha)

TAKE-UP FORECAST
2
2018 to 2033
Total: Randfontein LM 48,52 96,91 139,38 157,74
Table 1.6: Randfontein LM Recommended Industrial Component (Short to medium development

prospects)
Variables Values
Capital Investment (Rbillion) (2013 constant values) R7.4 billion
R375 million
constant values)
Randfontein lends itself to the development of industrial developments of approximately

78.8 ha which translates into a capital investment of R7.8 billion.
1.2.4 WESTONARIA LOCAL MUNICIPALITY SPACE DEMAND
GAP ANALYSIS
Industrial Yes Medium
DEMAND ANALYSIS
40,00
35,00
30,00
25,00
Hectare
20,00
15,00
10,00
5,00
-
2018
2020
2013
2014
2015
2016
2017
2021
2019
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Year

2033 13,35 21,96
2028 10,55 17,11

Year
2023 7,79 12,35
Up to 2018 3,56 5,46
- 5,00 10,00 15,00 20,00 25,00 30,00 35,00 40,00

Hectare (ha)

TAKE-UP FORECAST
2
2018 to 2033
Total: Westonaria LM 48,52 96,91 139,38 157,74
Table 1.8: Westonaria Recommended Industrial Component (Short to medium development

prospects)
Variables Values
Capital Investment (Rbillion) (2013 constant values) R1.6 billion
R84 million
constant values)
Westonaria lends itself to the development of industrial developments of approximately 17.6

ha which translates into a capital investment of R1.7 billion.
1.3 SYNTHESIS
From the above analysis, it is clear that all four local municipalities have potential for future
industrial expansion. Mogale city has the most potential (132.8ha) whilst the Merafong City has
limited (9.9ha) potential. The optimum point of market entry for all four local municipalities is
2013/2014, although it is a long-term (10 to 20 years) implementation strategy. The following
table is a summary of the overall development for the West Rand and the respective four local
municipalities.
Table 1.9: Industrial Space Demand Summary (20 year forecast)

Local Municipality Space Demand Potential Capital Investment
Mogale City 132.8 hectares R13.2 billion
Merafong City 9.9 hectares R988 million
Randfontein 78.8 hectares R7.8 billion
Westonaria 17.6 hectares R1.7 billion
Total West Rand District 239.1 hectares R23.6 billion
A total industrial market demand potential of 239.1ha is calculated for the West Rand District
over the next 20 years. In addition, the development potential translates into R20 R25
billion of potential direct capital investment in new industrial ventures on the West Rand over
the next two decades.
CHAPTER 2: TOWN PLANNING PROCEDURES AND RELATED ENGINEERING
SERVICES
2.1 INTRODUCTION
This chapter provides an overview of the town planning procedures related to industrial land in
the West Rand as described in section 2.2 below. Section 2.3 reflects on issues in terms of the
availability and quality of engineering services for the different industrial areas in the West
Rand, as recorded from a telephonic survey conducted. The chapter concludes with some
critical factors/ interventions identified for the West Rand industrial nodes in terms of planning
procedures, engineering services and related elements (section 2.4).
2.2 TOWN PLANNING PROCEDURES
The town planning procedures relevant to industrial land in the West Rand can include any of
the following:
Township Establishment
Rezoning
Consent Use
Subdivision/ Consolidation of industrial erven.
All the above procedures are regulated by the Town Planning and Townships Ordinance, 1986
(Ordinance 15 of 1986) in Gauteng Province as diagrammatically illustrated in Diagram 2.1
below. All applications are submitted directly to the town planning departments/ units of each of
the local municipalities in the West Rand District.
Diagram 2.1: Town Planning Procedures
Source: Plan Associates, 2013

Following is a description of each of the town planning procedures.
2.2.1 TOWNSHIP ESTABLISHMENT
All new industrial areas in the West Rand have to be established by way of an official Township
Establishment process as described in the Town Planning and Townships Ordinance, 1986.
Industrial townships are usually established as unique entities located in areas deemed to be
suitable for such uses within the broader urban environment. In many instances industrial
townships are spatially removed from the urban surrounds to mitigate issues such as noise and
air pollution, as well as other health related hazards associated with industrial activities.
Noxious industries are clustered together in areas exclusively earmarked for noxious industrial
activity within industrial areas. Technically, distinction is made between heavy and noxious
industries which are normally zoned as Industrial 1, non-noxious industries which are
traditionally zoned Industrial 2, and Commercial which represents warehouses, logistic centres
etc. Commercial uses are not restricted to industrial areas and are nowadays allowed as part of
larger mixed use activity nodes comprising office, retail, commercial and even residential uses.
In terms of land use rights, Industrial 1 and 2 normally hold the following development
restrictions in terms of the Town Planning Scheme of a municipality.
Table 2.1: Development Restrictions

Industrial 1 Industrial 2
Height 3 storeys 3 storeys
Coverage 80% 60%
Floor Area Ratio 0.8 0.6
It should be noted that each of the local municipalities within the West Rand District Municipality
has its own Town Planning Scheme with its own definition of different industrial categories, and
with different development restrictions to each of the categories. In the short to medium term
the objective should be to consolidate these four Town Planning Schemes into a single Town
Planning Scheme for the West Rand District as a whole. This will ensure uniform industrial
development standards and categorisation across the West Rand.
Once an industrial township is established, developers may apply for rezoning, or a consent
use, or a subdivision/ consolidation of any of the stands within the industrial area in order to
meet their specific needs. Each of these three processes is briefly described below.
2.2.2 REZONING
Rezoning provides the flexibility required to meet the specific needs of industrial enterprises
wanting to establish in an existing industrial township. A rezoning procedure can convert the
land use rights on a stand from Industrial 1 to Industrial 2 or vice versa. Rezoning is also
required to amend the development restrictions applicable to a site e.g. height, coverage and
FAR even if the zoning category remains the same (Industrial 1 or Industrial 2).
If an enterprise thus requires larger buildings on the stand than allowed in terms of the existing
zoning rights of the stand, it may apply for the rezoning of the erf to a zoning allowing for a
higher coverage or higher Floor Area Ratio (FAR).
2.2.3 CONSENT USE
Consent Use applications are normally applied for when an existing industrial enterprise intends
to sell products from the site. It then applies for consent to conduct retail or trade activity on the
industrial site, in addition to the manufacturing of goods. This is thus a form of a factory shop.
Only rights that are contained in the Consent Use Section of the applicable Town Planning
Scheme can be applied for.
In other instances a need develops to establish a permanent cafeteria for workers on the site. It
then has to apply for permission to sell food, cigarettes and cold drinks from the site by way of a
Consent Use application.
Similarly, when an industry wishes to extend its office component on the site to more than the
normal administrative office quota allowed on industrial stands, it has to apply via a Consent
Use application.
2.2.4 SUBDIVISION/ CONSOLIDATION
Subdivision or consolidation of industrial stands is being dealt with by way of Subdivision/

Consolidation applications.
Note that the majority of industrial applications are generally Consent Use applications while
Rezoning and Subdivision applications are very limited.
Importantly, one of the key objectives of the single Town Planning Scheme for the West Rand
District as a whole should be to provide maximum flexibility within the land use categories, in
order to simplify and maximise investors options on a particular stand, and also to minimise
administrative red-tape.
2.3 WEST RAND INDUSTRIAL NODES ENGINEERING SERVICES
A telephonic survey was conducted with a number of enterprises in each of the industrial areas
in West Rand. The purpose of the survey was to determine the nature and extent of
engineering service related problems in the various industrial areas whether it be related to
issues of bulk capacity, frequency or quality of service delivery etc.
It is interesting to note that no bulk service or reticulation capacity problems were reported for
water, sanitation or electricity supply in any of the industrial areas. In general, industries in all
industrial areas were thus satisfied with the quality, capacity and continuity in supply of water,
sanitation and electricity.
As far as roads are concerned, poor maintenance of the road network was sometimes reported
as issues of concern, notably in areas like Chamdor and Aureus. However, it was generally
found that areas in need of maintenance were localised and not related to entire industrial
areas.
Maintenance of the public space (sidewalks, road reserves and public stands) is required in
most industrial areas and most respondents indicated that improved signage and branding of
the industrial areas would enhance the viability of industrial areas significantly.
The issues most frequently reported are rather related to administrative/ operational functions
such as meter readings and billing, as well as unreliable service provision (in the case of refuse
removal) which are easy to rectify without any major capital expenditure.
The more detailed results per industrial area are noted in the following table (see overleaf), and
summarised per municipality in the section below.
Mogale City LM
Water, Sanitation and Refuse Removal services in Mogale City seem to be functioning
optimally.
Electricity provision is at acceptable levels, except for in Chamdor where it was reported
that the electricity supply is uneven this is an issue for industries that are sensitive to
spikes and lags in the electrical supply (eg. Robotics), and could lead to large economic
losses.
The road infrastructure in most industrial areas in Mogale City requires some level of
general maintenance. Urgent maintenance is however required along the roads in Chamdor
industrial area.
Merafong City LM
Water, Sanitation and Road infrastructure in Merafong City seem to be satisfactory.
Electricity provision is at acceptable levels in most of the industrial areas. However, there
are challenges related to illegal electrical connections and incorrect electricity meter
readings in Oberholzer.
The greatest challenge in Merafong relates to refuse removal services it was reported that
the services are irregular and that the service provider strikes fairly often.
Randfontein LM
Water, Sanitation and Refuse Removal services in Randfontein (Aureus) seem to be good.
Limited maintenance is required along certain road sections within Aureus.
The electricity provision is fine but challenges of cable theft need to be addressed.
The only lack in Aureus is that there is a need for streetlights along roads, to increase
safety at night.
Westonaria LM
Sanitation, Roads and Refuse Removal services in Westonaria were reported to be
adequate.
Water and Electricity provision is also acceptable.
However there is a challenge with regards to water and electrical accounts due to incorrect
meter readings. This should be addressed with the service provider.
Table 2.2: West Rand Engineering Services Survey Summary

SERVICES # OF
INTE
RVIE ELECTRICITY WATER SANITATION ROADS REFUSE REMOVAL OTHER COMMENTS
AREAS WS
MERAFONG CITY LM
No issues reported No issues reported No issues reported No issues reported Refuse Removal Excessive increases in rates and taxes
CARLETONVILLE services strike on (one respondent).
3 regular basis (every 3
X6 Most companies procure goods from
months) Jhb and not from local industries.
Accounts are received late No issues reported Delay (average 3 No issues reported No issues reported -
FOCHVILLE 2 days) to repair
blocked drains
Electricity is apparently available Water is apparently Sanitation is Only gravel road, and No refuse removal Only a small portion of the industrial
LOSBERG 1 available apparently available remaining area has no services area is developed; the remainder
is existing roads vacant, and lacks surfaced
Meter readings are either not done or The tap that links one No issues reported No issues reported Refuse removal is -
done incorrectly premise to the main roads are in a very irregular/unreliable
OBERHOLZER 6 Illegal electricity connections water supply is not good condition need twice a week
There is a need for an additional boxed off and is
substation leaking
MOGALE CITY LM
No issues reported No issues reported No issues reported Some general No issues reported -
BOLTONIA 4 maintenance required
Electricity provision is uneven (lags and No issues reported No issues reported In need of urgent No issues reported
- spikes) maintenance
CHAMDOR 7 One business owner invested own
capital to upgrade infrastructure
No issues reported No issues reported No issues reported Some general No issues reported
DELPORTON 4 - maintenance required
No issues reported No issues reported No issues reported Some general No issues reported -
FACTORIA 5 maintenance required
(lines, signage etc)
No issues reported No issues reported No issues reported Roads are relatively No issues reported -
narrow
MULDERSDRIFT 2
Not designed for heavy
vehicle traffic
NOOITGEDACHT 1 No issues reported No issues reported No issues reported No issues reported No issues reported Incorrect rates are being charged
RANDFONTEIN LM
Challenge of power outages due to cable No issues reported No issues reported Certain road sections No issues reported No Street Lights along roads
AUREUS 3 theft have potholes /
uneven surfaces
WESTONARIA LM
Incorrect meter readings are sometimes Incorrect water meter No issues reported No issues reported No issues reported -
WESTONARIA 2 allocated to account then municipal readings
workers disconnect the wrong users.
Source: Plan Associates, 2013
16
2.4 ADMINISTRATIVE INTERVENTIONS AND INCENTIVES
Following are some critical factors/ incentives identified in terms of the town planning
procedures, engineering services and related elements for the West Rand.
AVAILABILITY OF APPROPRIATELY ZONED AND SIZED INDUSTRIAL STANDS
Municipalities have to continuously ensure that there is a variety of vacant, appropriately zoned
stands of all sizes available within industrial areas in the West Rand. Furthermore, when the
four local Town Planning Schemes are consolidated into a West Rand District Town Planning
Scheme, care should be taken that the basket of rights under each of the industrial zoning
categories is as extensive as possible in order to allow for a wide variety of industrial activity
without having to apply for rezonings and/or consent uses.
FAST TRACK MECHANISMS
Given the magnitude of the contribution industrial developments make to the regional economy
and municipal fiscus, every effort should be made from an administrative point of view to
facilitate and accelerate industrial development, including:
Identification and servicing of new, appropriately located industrial sites

Fast track rezoning and consent use applications
Fast track site development and building plan approvals.
UNLOCKING DEVELOPMENT OPPORTUNITIES
The West Rand District can assist the private sector in various ways in developing affordable
industrial stands in the municipal area.
The first is to timeously identify and earmark priority areas for future industrial/ commercial
development in the Spatial Development Framework and Precinct Plans of the District
Municipality.
As these plans are also incorporated into the Integrated Development Plan of the West Rand
District, it will ensure that budget allocation towards the future development and servicing of
these areas is timeously secured which will enhance investor confidence in the area.
A good example is the N14 corridor from Lanseria southwards up to Hendrik Potgieter Drive
and then westwards towards Tarlton. This area is classified as one of ten Rapidly Growing
Areas in South Africa which qualifies it for additional funding from National Treasury to unlock
the development potential of the area.
If the West Rand District timeously compile a detailed Development Framework/ Precinct Plan
for the area, highlighting the areas earmarked for future industrial/ commercial development, it
will make a huge contribution towards raising developers interest in the area.
LOCATION
Industrial activity per s is not as sensitive to location and/or visual exposure as retail, office
and commercial uses. Historically, many commercial uses were confined to industrial areas in
towns and cities in South Africa which limited the development potential of these enterprises.
Fortunately, there is nowadays a greater awareness of the need for these uses to be
incorporated into larger mixed use developments comprising retail and office as well.
West Rand District need to ensure that it caters for new commercial uses to be developed
along strategic development corridors, or within mixed use nodes in the District in combination
17
with retail and office developments. Mitigating measures and an appropriate layout design for
these areas can ensure that the commercial uses are compatible with surrounding retail, office
and residential uses. The N14 and R28 development corridors should be the two main focus
areas in this regard in the short to medium term.
ENGINEERING SERVICES CAPACITY AND UNINTERRUPTED AVAILABILITY
From the interviews held with WRDM industrialists, it was evident that the availability of
engineering services is the most important requirement of prospective investors. Most
industries cannot afford interruptions or capacity constraints in the supply of electricity, water or
sanitation services, or poor road access into the area. It is therefore imperative that West Rand
ensure that the industrial areas continuously have sufficient capacity to ensure uninterrupted
supply of engineering services.
In Chamdor one of the interviewed industries indicated that it was in the process of relocating to
Midrand because the Municipality could not increase the electricity supply to their site.
The strategic significance of industrial areas as centres of economic development and job
creation should always be paramount in decisions relating to infrastructure development and
therefore it should never be allowed that a new residential development utilise part of the bulk
supply earmarked for an industrial area. Such a situation will give precedence to residential
development over industrial development, compromising the functionality and viability of the
industrial area on which the surrounding communities depend for job opportunities.
RATES AND TAXES
There are various ways and means for municipalities to provide some relief in terms of rates
and taxes. The first would be to distinguish between approved and exercised rights and only
apply the industrial rates and taxes on the exercised rights on the stand. The owner thus does
not pay for the latent rights on the stand, until such time as when he utilises it. Another
mechanism that could be applied is to provide a blanket industrial zoning to an area (example
an area comprising agricultural holdings which experience pressure for accommodating a
variety of non-residential/ light industrial activities. Individual land owners are not required to
establish township on their plots, but by way of submission of a site development plan and
building plan they can exercise the industrial rights granted by the municipality. The rights are
thus latent and only when a land owner exercise this right via the submission and approval of a
site development plan will the increased rates and taxes be charged. Areas posing
opportunities for implementing this approach include the rural nodal points at Bagale and
Badirillo along the N14 in the north-western parts of the West Rand, parts of the Muldersdrift
area suitable to accommodate industrial activity, and the West Rand Agricultural Holdings in
Westonaria adjacent to the north of route N12 and Syferfontein.
PUBLIC SPACE MANAGEMENT AND MAINTENANCE
This relates to the aesthetic quality of the environment. It is important that municipalities in the
West Rand District ensure that they have proper mechanisms in place to continuously manage
and maintain the public space in and around industrial areas. This includes all the road
reserves, parks and open spaces in and around the area. It was noted in the Situational
Analysis that several of the industrial areas are centrally located and highly accessible to
disadvantaged communities and future strategic development areas for housing e.g. Chamdor
and Aureus. It is important that informal settlement and informal trading which frequently occur
in these areas be properly managed in order to prevent these activities from intruding and
impacting negatively on the industrial activity which is critical to the future economic
sustainability of the surrounding communities. This also strongly relates to the safety and
security of workers in the industrial area and to ensure that the area reflects a pleasant
aesthetic quality which boosts investor confidence and encourages clientle to return.
18
2.5 SYNTHESIS
The town planning procedures related to industrial land is limited to township establishment,
rezoning, consent use and subdivisions/ consolidations. Each town planning procedure has its
own positive and negative elements. It is therefore important for the District and local
municipalities to provide ample variety in terms of industrial stands to accommodate current
and prospective investors, and also to be clear with regards to the basket of rights assigned to
each particular zoning.
With reference to the engineering services, overall, there seems to be sufficient bulk water,
sanitation and electricity supply in the West Rand industrial areas. The existing issues are
rather related to administrative functions such as meter readings and billing, as well as service
provision (in the case of refuse removal). Limited maintenance is required along the roads in
most industrial areas. Issues such as potholes and broken road shoulders should preferably be
rectified as soon as they are reported, to promote investor confidence. Furthermore, the
signage, sidewalks, and street lighting along all roads should be sufficient, clean and well-
maintained.
The critical factors/ incentives identified for the West Rand relates to the availability of
appropriately zoned and sized industrial stands, timeous identification and earmarking of new
areas for industrial development, strategic location of industrial nodes, engineering services
capacity and uninterrupted supply, municipal rates and taxes, public space management and
maintenance and proper branding and signage of industrial nodes.
19
CHAPTER 3: INDUSTRIAL DEVELOPMENT STRATEGY FUNDAMENTALS
3.1 INTRODUCTION
This chapter focuses on the economic principles for sustainable industrial nodal development
as well as the industrial development strategy fundamentals to guide, inform and accelerate
industrial development on the West Rand. The overarching industrial development strategy
consists of four pillars, each addressing a unique set of industrial elements. The four strategy
pillar are:
Pillar 1: West Rand Industrial Revival Strategy

Pillar 2: West Rand Industrial Maintenance Strategy
Pillar 3: West Rand Industrial Growth And Management Strategy
Pillar 4: West Rand Kick Start Strategy.
The overarching strategy informs the revival, growth and maintenance of existing and proposed
new industrial nodes.
In the context of the above, this chapter is structured as follows:
West Rand Industrial Development Vision

West Rand Industrial Development Strategy Objectives
Economic Principles for Industrial Nodal Development
West Rand Industrial Strategy Fundamentals.
3.2 WEST RAND INDUSTRIAL DEVELOPMENT VISION
The west rand is richly endowed with an abundance of natural resources including gold and
agricultural products, as well as selected downstream beneficiation enterprises located in its
numerous industrial nodes. In many instances these industrial nodes correlate, both in terms of
location and composition with theses historic sectoral development patterns. In this context
certain industrial nodes continue to perform well and may require expansion interventions,
whereas others are reveals signs of decline and require co-committed interventions. In addition
to the above, a number of locations have emerged which are much more closely aligned with
the development and locational preferences of contemporary clean industrial and logistics
orientated industrial / commercial parks. A combination of the aforementioned render a rich
menu of potential interventions focuses on optimizing the performance and growth potential of
the West Rand industrial sector over the short, medium and long term. These dynamics were
translated into the following vision:
Transform the West Rand industrial offerings into new, modern and diversified nodes
and proactively stimulate the development of optimally located new industrial nodes
to attract clean industry and logistics orientated industrial enterprises,
whilst promoting the settlement of a broad spectrum of enterprises (SMME through
to large corporates) that promote value chain extension of local resources.
20
3.3 WEST RAND INDUSTRIAL DEVELOPMENT STRATEGY OBJECTIVES
The following industrial development objectives inform / guide development strategy for the
district:
Strengthen the functionality and performance of existing industrial nodes

Diversify the existing industrial base of the nodes
Strengthen existing agglomeration advantages
Contribute to the establishment of sustainable clusters
Create sustainable jobs
Contribute to the regeneration of the industrial node
Unlock local resources
Attract higher skill levels to the node
Contribute to SMME development
Strengthen economic linkages
Contribute to skills development and capacity building of the local labour force
Promote the incorporation of green industries / technology in all nodes
Ensure availability / flexibility of engineering services and related infrastructure
The development strategy is informed by the abovementioned development vision and

objectives.
3.4 ECONOMIC PRINCIPLES FOR INDUSTRIAL NODAL DEVELOPMENTS
The Economic Principles for Industrial Development informs the industrial development strategy
as it forms basis of the industrial strategy to follow. The Economic Principles for Industrial
Development consists of following three main guiding principles:
Industrial concentration economies

Market based concepts
Economic empowerment framework.
The table below lists the main guiding economic principles that drive sustainable industrial
development.
21
Table 3.1: Economic Principles for Industrial Nodal Development
Principle Components Description
Agglomeration Advantages Agglomeration advantages provide an area with the
economic pull factors required in order to attract new
Industrial Concentration Economies

businesses and investment to a specific area. It also provides
a support base for new economic (industrial) activities.
Sustainability Sustainability is vitally important in terms of economic, social
as well as environmental impacts. Accurate assessment of
this principle prior to the implementation of any project must
be undertaken to limit the irresponsible application of
resources.
Access and Exposure Development should enjoy high levels of accessibility and
exposure in order to attract the necessary consumer base
and support (income and expenditure) to make it sustainable
over the short and long term.
Multi-functionality Economic development should be conducted in such a way
that it supports multi-functionality. Multi-functionality
increases the sustainability of a development. The industrial
activity composition should be developed in order to be multi-
functional.
Tax-base Local government should invest in the development in order
to establish private sector confidence and generate additional
income for the local municipality, by means of rates and
taxes.
Secure Investment, The urban environment should be developed that provides a
production and operations secure haven for investment, production and operations. A
secure 24-hour environment should be created in which the
industrialist can work.
Industrial Parks Public Development with marginalized areas in general requires a
Investment relatively large private investment. The industrial parks
Market Based Concept
should be viewed as the area of public investment. This

includes the development of engineering services and roads.
Private Sector Investment Attraction of investment from outside the marginalized areas
is vitally important as this implies that funds are injected into
the local economy. This also implies efforts to increase the
levels of local investment / equity as well as locally generated
capita (i.e reducing leakage factors).
Integrated Development Integration must be promoted between new industrial
developments and existing nodes on the one side and
between the different land uses of the surrounding areas
itself. Integration is crucial in order to develop a high intensity
economic / industrial activity area.
Needs Based Development Consultation with industrialist represents an important
Empowerment
determinant for successful development especially within

Economic
Framework
limited supply areas. By means of consultation processes

industrialists needs and preferences are identified. This will
contribute to focused and market related developments
22
3.5 WEST RAND INDUSTRIAL STRATEGY FUNDAMENTALS
The overarching West Rand industrial Strategy is based on four main pillars. Each pillar
addresses a unique set of industrial elements related to existing and new industrial nodes /
developments. The four main pillars are illustrated in the diagram below, and include:
Industrial Revival Strategy for existing older and declining nodes

Industrial Growth management strategy for expanding existing nodes and for the
establishment of new development nodes
Industrial Maintenance strategy for existing stable nodes and new industrial nodes
Industrial kick start strategy to stimulate development in vacant industrial nodes.
Diagram 3.1: West Rand Industrial Strategy
Following is a discussion of each of the four strategic pillars.
3.5.1 PILLAR 1: WEST RAND INDUSTRIAL REVIVAL STRATEGY
The West Rand industrial revival strategy focuses on existing although older industrial nodes.
These nodes have been experiencing a steady decline and decay over the past decade and in
need of revival to ensure continues industrial operations and the opportunity to attract new
industrial investment. The table below indicates the industrial Revival Strategy application,
rational and focus areas.
Table 3.2: West Rand Industrial Revival Strategy

Element Description
Application Existing older and declining industrial nodes
No expansion or infill developments over the medium term
Rationale Some of the industrial nodes are in a state of decline and decay and
does not cater for modern consumer demand.
Focus Neighbourhood upgrade programmes focusing on roads, storm water,
sidewalks, street lighting, curbing etc.
Regeneration of nodes into modern, secure industrial parks with access
control.
Marketing and branding strategies to promote existing industrial nodes.
23
Oberholzer
Fochville
Westonaria
The industrial revival strategy is informed by four main sub-strategies, which guide the revival of
the industrial nodes over a realistic 20 year + time period. The sub-strategies include:
Defensive strategy (year 1 to 5)

Turnaround strategy (year 6 to 10)
Aggressive strategy (year 11 to 15)
Diversification strategy (year 16 to 20+).
In the context of the objectives of each phase, subsequent paragraphs highlight examples of
appropriate project initiatives that should be implemented during each phase.
Diagram 3.1: Revival Strategy Sub-components
a) DEFENSIVE STRATEGY (YEAR 1 TO 5)
Objective: Re-establish settlement nodal integrity
The current state of the market dictates that the initial focus should be on rectifying internal
problems experienced in the industrial node. This phase is predominantly inward looking and is
aimed at re-establishing nodal integrity.
24
Typical industrial renewal initiatives form part of this initial phase, including crime and grime
initiatives, beautification programmes, infrastructure and services investment. During this
phase, one or two catalytic projects should be identified for the industrial node.
Word of caution: Defensive projects, in general relate to quick win projects that pay
immediate, short term dividends. At this stage it is imperative to implement all initiatives within
an overarching, long term strategic framework and not to lose sign of the ultimate vision.
b) TURNAROUND STRATEGY (YEAR 6 TO 10)
Objective: Risk reduction and business recruitment
Once nodal integrity has been re-established, the focus should turn to active risk reduction
and business recruitment strategies, whilst maintaining Phase 1 achievements. Phase 2 is
therefore still focused on internal dynamics, but the emphasis is on innovative products that can
be marketed domestically. Essentially, this phase seeks to build on existing nodal strengths.
Therefore the focus should be on the identified industrial economic activity concentration areas.
Initiatives should focus on addressing the business environment in each of these areas in order
to create an attractive business environment, addressing the main problems experienced on a
ground root level.
Initiatives may include the development of an incentivised building renovation and remodelling
programme, investment brokerage, business expansion and implementation of catalytic
projects.
Word of caution: An assertive programme should be launched to encourage building owners

and to commit to the regeneration and development of the industrial node and renovate
privately owned building stock in order to ensure the attractiveness of the industrail nodes.
c) AGGRESSIVE STRATEGY (YEAR 11 TO 15)
Objective: Aggressive growth and expansion
By this stage, all internal stumbling blocks to growth should be addressed. Preceding years
would have enabled the industrial node to solidify its position in the market. From Phase 3
onwards, the focus is on aggressive growth and expansion. Industrial integrity enables the
area to once again compete effectively with other nodes for domestic market share, as well as
foreign investment. Due to improved physical conditions and attractive building stock, the
industrial node now has a much more attractive risk / return profile and subsequent returns on
investment are more in line with market rates.
The exact nature of project initiatives to be conducted in Phase 3 becomes increasingly difficult
to forecast, but should essentially focus on private sector market penetration and innovative
product development. Focus areas should include the identified economic pillars and
underlying property markets.
Word of caution: Successful marketing of industrial development opportunities hinges on

effective dissemination of relevant market information to a predetermined investment audience.
Growth and development, however, relies on a more assertive approach termed investment
brokerage.
25
d) DIVERSIFICATION STRATEGY (YEAR 16 TO 20+)
Objective: Market diversification
By this stage, all prerequisites for sustained industrial nodal growth would have been met and
the industrial node should be firmly set on its economic growth path. The node is now
approaching the mature stages of the economic development cycle and renewed opportunities
for growth should be identified. The main focus, at this stage, should be on diversification,
building on existing strengths and identifying new markets - on a sectoral as well as geographic
basis.
Word of caution: Continuous monitoring, refinement and realignment are required throughout
the process. Ideally, key real estate market indicators should be monitored on an annual basis.
3.5.3 PILLAR 2: WEST RAND INDUSTRIAL MAINTENANCE STRATEGY
The West Rand industrial maintenance strategy focuses on existing but stable industrial nodes
in need of maintenance. These nodes are fully developed and operational and in need of a long
term maintenance plan to prevent decline and decay.
Table 3.4: West Rand Maintenance Strategy

Element Description
Application Stable industrial nodes
Primarily fully developed industrial nodes with limited infill or
redevelopment potential
Rationale Stable nodes are, more often than not, poised on a knifes edge and
may be on the verge of a declining cycle. Early signs of decay may
already be visible. Focused interventions are needed to protect
Investments.
Focus Upgrade and maintenance programmes are needed (infrastructure and
buildings) in order to retain consumers and instill business confidence
Develop a framework with regards to priority investment areas and
liaise with the industrial business community.
Safety and security measures need to be put in place as infringing
informal residential areas impact on industrial nodal quality and
performance
3.5.2 PILLAR 3: WEST RAND INDUSTRIAL GROWTH AND MANAGEMENT STRATEGY
The growth and management strategy focuses on existing expanding / growing industrial nodes
and the development / establishment of new industrial nodes. The West Rand has abundant
market demand and can sustain an additional 239.1ha of industrial land use in the long term
(20 year time period). The growth and management strategy should guide the expansion of
existing industrial nodes and the development of new industrial developments within the West
Rand.
Table 3.3: West Rand Growth and Management Strategy
26
Element Description
Application Existing, well performing and expanding industrial nodes
New emerging nodes
Located along major movement spines and / or freeways
Located in close proximity to labour
Nodes that enjoy optimal sight value
Rationale Market forces (supply and demand) fuel the development of rapidly
growing industrial nodes.
Pro-active planning for future demand serves as powerful stimulus.
Focus Identify additional primary and secondary nodes for future expansion /
development (nodes and corridors).
Advisably along major movement spines which are easily accessible,
with optimal location factors and sight value.
A detailed site development plan and expansion plan need to be
developed for each new industrial node.
In addition to the aforementioned, an infrastructure and services plan
needs to be developed to ensure availability of services as the need
may arise.
Marketing and branding strategies to promote new industrial nodes and
corridors.
In addition to the above, industrial nodes are subject to location factors. The main location
factors should be adhered to in the establishment of new industrial nodes as, these factors
influencing the viability, sustainability and success of industrial development.
INDUSTRIAL LOCATION GUIDELINES
The theory of industrial location identifies five major factors that influence the choice of the
location of individual economic activity, namely:
Labour Orientation
Market Orientation
Resource Orientation
Agglomerative Economy Orientation
Logistics Orientation
For more detail, see Chapter 9 of the West Rand Status Quo Report, July 2013.
27
3.5.4 PILLAR 4: WEST RAND INDUSTRIAL KICK START STRATEGY
The West Rand Kick Start Strategy focuses on existing nodes, which are still vacant or mainly
under developed. These nodes are in need of a catalytic intervention to unlock the development
potential of the respective nodes.
Element Description
Application Existing vacant / under developed nodes
Rationale These industrial nodes are in need of a catalytic intervention to
stimulate development and attract investment to the node.
Focus A marketing and branding strategy to promote industrial nodes.
Develop market related incentive packages
3.6 SYNTHESIS
The West Rand industrial Strategy based on three pillars namely
Pillar 1: West Rand Industrial Revival Strategy,

Pillar 2: West Rand Industrial Maintenance Strategy,
Pillar 3: West Rand Industrial Growth and Management Strategy
Pillar 4: West Rand Industrial Kick Start Strategy.
Each pillar addresses a unique set of industrial elements related to existing (declining and
stable nodes) and the establishment of new industrial nodes / corridors. The table below
indicates the different industrial nodes (located within the West Rand) and the respective
strategy to guide future development of each node.
Table 3.4: Strategy and Corresponding Industrial Node Summary

Strategy Industrial Nodes
Industrial Revival Strategy Modinagar
Older, declining nodes Panki - Kanpur
Industrial Maintenance Strategy Manesar

Stable, well performing industrial nodes, built- Neemrana
up, limited physical expansion potential
Industrial Growth Management Strategy Rudrapur

Existing, expanding and new industrial nodes / Raurkela
Corridors
Industrial Kick Start Strategy Industrial Corridors: DMIC, BMEC etc.

Vacant Industrial Nodes Petroleum, Chemicals and
Petrochemicals Investment Region
28
CHAPTER 4: INDUSTRIAL DEVELOPMENT PROJECTS
4.1 INTRODUCTION
The Industrial Development Project chapter highlights specific industrial and related project for
each of the local municipalities located within the West Rand. The local municipalities include:
Mogale City
Merafong City
Randfontein
Westonaria
4.2 PROJECTS / INITIATIVES PER LOCAL MUNICIPALITY
The following section indicates the different projects identified for the West Rand District per
local municipality. Each of the different projects are listed below, including location, focus,
development gap and probability indicators.
4.2.1 MOGALE CITY LOCAL MUNICIPALITY INDUSTRIAL PROJECTS
There are currently seven industrial nodes located within the Mogale City Local Municipality.
These include Boltonia, Chamdor, Delporton, Factoria, Fariaville, Muldersdrift and
Nooitgedacth. In addition to the existing industrial nodes, future space demand forecast for the
local municipality amounts to 135ha industrial land over the next two decades.
The following tables list the development initiatives / projects for the Mogale City industrial
nodes existing as well as proposed new.
EXISTING INDUSTRIAL NODES
The following table list the development projects identified for the existing industrial node located within the Mogale City Local Municipality.
Table 4.1 Mogale City Project List- Existing Industrial Nodes

Project
Project Description Location Responsible Budget
Nr *Priority
Party (Excl. Vat)
1 Boltonia
Neighbourhood upgrade programmes focusing on:
Boltonia WRDM /
1.1 Roads, storm water, sidewalks, street lighting, curbing etc. Medium term R3.5 million
industrial node Mogale City
Cleaning and greening
Develop a safety and security action plan for Boltonia.
Assessment of crime statistics of Boltonia
Needs assessment with local businesses Boltonia WRDM /
1.2 Medium term R350 000
CCTV neighborhood system - design industrial node Mogale City
Pre-feasibility assessment and costing model
Neighborhood access control pre-feasibility assessment
Develop a brand and branding strategy for Boltonia Boltonia WRDM /
1.3 Brand identity and material - design Medium term R150 000
Production (including signage, advertisements, billboards etc) R2.5 million
Develop a physical expansion strategy for Boltonia Boltonia WRDM /
1.4 industrial node Medium term R250 000
Mogale City
2 Chamdor
Due diligence studies should be commissioned to investigate expansion potential WRDM /
Chamdor
2.1 onto nearby portions in the area. Mogale City / Short term R250 000
industrial node
WRDA
Neighbourhood upgrade programmes focusing on: WRDM /
Chamdor
2.2 Roads, storm water, sidewalks, street lighting, curbing etc. Mogale City / Short term R 5 million
industrial node
Cleaning and greening WRDA
Develop a detailed infrastructure plan WRDM /
2.3 Chamdor Mogale City / Short term R500 000
industrial node WRDA
Develop a brand and branding strategy for Chamdor WRDM /
2.4 business Chamdor
Brand identity and material - design
Needs es industrial node
Production (including signage, advertisements, billboards etc)
assessme
Develop a safety and security action plan for Chamdor nt with Chamdor industrial node
2.5
Assessment of crime statistics of Chamdor local
31
Mogale Short term R150 000
City / R3 million
WRDA
WRDM Short term R500 000
/
Mogale
City /
WRDA
32
Project Responsible Budget
Nr Project Description Location *Priority
Party (Excl. Vat)
CCTV neighborhood system - design
3 Delporton
3.1 Delporton WRDM /
Roads, storm water, sidewalks, street lighting, curbing etc. Medium term R3.5 million
Develop a safety and security action plan for Delporton.
Assessment of crime statistics of Delporton
3.2 Needs assessment with local businesses Delporton WRDM /
Medium term R350 000
CCTV neighborhood system - design industrial node Mogale City
Develop a brand and branding strategy for Delporton Delporton WRDM /
3.3 Brand identity and material Design Medium term R150 000
Develop a physical expansion strategy for Deloprton Delporton WRDM /
3.4 industrial node Medium term R250 000
Mogale City
4 Factoria
Due diligence studies should be commissioned to investigate expansion potential WRDM /
Factoria
4.1 onto nearby portions in the area. Mogale City / Short term R250 000
industrial node
WRDA
Factoria
4.2 Roads, storm water, sidewalks, street lighting, curbing etc. Mogale City / Short term R5 million
industrial node
Cleaning and greening WRDA
Develop a brand and branding strategy for Factoria WRDM /
Factoria
4.3 Brand identity and material - design Mogale City / Short term R150 000
industrial node
Production (including signage, advertisements, billboards etc) WRDA R3 million
Develop a safety, security and safety action plan for Factoria
Assessment of crime statistics of Factoria WRDM /
Needs assessment with local businesses Factoria
4.4 Mogale City / Short term R500 000
CCTV neighborhood system - design industrial node WRDA
5 Fariaville
5.1 Develop a kick start plan for Fariaville Fariaville WRDM / Medium term R750 000
Project Description Location *Priority
Nr Party (Excl. Vat)
Town planning and engineering services status quo assessment industrial node Mogale City
Market analysis (demand, supply, stand sizing, stand pricing, strategic focus
etc.)
Re-alignment strategy and plan
Marketing and branding strategy and plan
Safety and security plan (Assessment of crime statistics, needs assessment
with local businesses, CCTV neighborhood system and design, pre-
feasibility assessment and costing model etc.)
*Note: Short term immediate i.e. years 1-3
Medium term years 3-5
Long term years 5-10+
NEW INDUSTRIAL NODES
Mogale City poses significant scope for industrial development aligned with contemporary principles in very specific locations. The N14 is arguably
the corridor on the West Rand with the greatest latent potential.
Table 4.2 Mogale City Project List Proposed New Industrial nodes / Corridors
Project
Nr *Priority
Party (Excl. Vat)
6 N14 Muldersdrift / Nooitgedacth Corridor
Develop a comprehensive and detailed corridor plan
Geographic area: Malibongwe Drive off-ramp to the Silver-star casino
Town planning status quo assessment (land use, zoning etc.)
Engineering services reports
Market analysis and growth forecast, phasing plan and refined strategic focus WRDM /
6.1 Marketing and branding strategy plan N14 corridor Mogale City / Short term R1.75 million
Detailed spatial development framework including phasing, engineering WRDA
services plan and financial model
with local businesses, CCTV neighborhood system and design, pre-feasibility
assessment and costing model etc.)
4.2.2 MERAFONG CITY LOCAL MUNICIPALITY INDUSTRIAL PROJECTS
There are currently four industrial nodes located within the Merafong City Local Municipality.
These include Carletonville, Oberholzer, Fochville and Losberg. In addition to the existing
industrial nodes, the future space demand forecast for the local municipality amounts to 10ha
industrial land over the next two decades.
The following tables list the development initiatives / projects for the Merafong City industrial
nodes.
34
The following table lists the development projects identified for the industrial nodes located within the Merafong City Local Municipality.
Table 4.3 Merafong City Project List- Existing Industrial Nodes

Project
Nr *Priority
Party (Excl. Vat)
7 Carletonville Ext 6
Neighbourhood upgrade programmes focusing on: Carletonville
WRDM /
7.1 Roads, storm water, sidewalks, street lighting, curbing etc. Ext 6 industrial Medium term R2 million
Merafong City
Cleaning and greening node
Develop a marketing and branding strategy to market the Carletonville Ext 6
industrial node more effectively in view of the multiple stands still available for Carletonville
7.2 development. WRDM /
Ext 6 industrial Medium term R100 000
Marketing material and advertisements and drand identity and material - Merafong City
node
design
R1.5 million
Production (including signage, advertisements, billboards etc)
Develop a physical expansion strategy for Carletonville Ext 6 Carletonville
WRDM /
7.3 Ext 6 industrial Long term R75 000
Merafong City
node
8 Oberholzer
Oberholzer WRDM / Medium term R2 million
8.1 Roads, storm water, sidewalks, street lighting, curbing etc.
industrial node Merafong City
Develop a brand and branding strategy for Oberholzer Oberholzer WRDM /
8.2 Brand identity and material - design Merafong City Medium term R100 000
industrial node
9 Fochville
9.1 Fochville WRDM /
Roads, storm water, sidewalks, street lighting, curbing etc. Long term R3.5 million
industrial node Merafong City
Develop a brand and branding strategy for Fochville Fochville WRDM /
9.2 Long term R150 000
Brand identity and material - design industrial node Merafong City
Production (including signage, advertisements, billboards etc) R2 million
Develop a physical expansion strategy for Fochville Fochville WRDM /
9.3 industrial node Long term R250 000
Merafong City
10 Losberg
10.1 Develop a kick start plan for Losberg Losberg WRDM / Long term R350 000
35

Project Description Location *Priority
Nr Party (Excl. Vat)
Town planning and engineering services status quo assessment industrial node Merafong City
Market analysis (demand, supply, stand sizing, stand pricing, strategic focus
etc.)
Re-alignment strategy and plan
Marketing and branding strategy and plan
with local businesses, CCTV neighborhood system and design, pre-
feasibility assessment and costing model etc.)
36
4.2.3 RANDFONTEIN LOCAL MUNICIPALITY INDUSTRIAL PROJECTS
Randfontein has two major industrial concentrations, namely Aureus and the Tyger Brands
node. The latter is by and large an owner-occupied single use node. Aureus is a well-
performing node and requires land to accommodate future expansion In addition to the existing
industrial nodes, future space demand forecast for the local municipality amounts to 80ha
industrial land over the next two decades.
The following tables list the development initiatives / projects for the Randfontein industrial
37
The following table lists the development projects identified for the existing industrial node located within the Randfontein Local Municipality.
Table 4.4 Randfontein Project List- Existing Industrial Nodes

Project
Nr *Priority
Party (Excl. Vat)
11 Aureus
Aureus
11.1 Roads, storm water, sidewalks, street lighting, curbing etc. Randfontein LM Short term R4.5 million
industrial node
Cleaning and greening / WRDA
Develop a safety, security and safety action plan for Aureus
Assessment of crime statistics of Aureus
WRDM /
Needs assessment with local businesses Aureus
11.2 Randfontein LM Short term R500 000
CCTV neighborhood system - design industrial node
/ WRDA
Pre-feasibility assessment costing model
Develop a brand and branding strategy for Aureus WRDM /
Aureus
11.3 Brand identity and material - design Randfontein LM Short term R200 000
industrial node
Production (including signage, advertisements, billboards etc) / WRDA R3.0 million
Develop a physical expansion strategy for Aureus WRDM /
11.4 Aureus Randfontein LM Short term R750 000
industrial node
/ WRDA
38
Randfontein poses scope for industrial development aligned with contemporary principles in very specific locations. The N14 is arguably the corridor
on the West Rand with the greatest latent potential.
Table 4.5 Randfontein Project List - New Industrial nodes / Corridors

Project
Project Description Location Responsible *Priority Budget
Nr
Party (Excl. Vat)
12 N14 / Bradirile and Tarleton Agri-processing Node
Develop a comprehensive and detailed nodal plan
Geographic area: N14 / Bradirile Intersection and N14/ Tarlton / Intersection
Market analysis and growth forecast, phasing plan and refined strategic focus
N14 / Bradirile WRDM / Short term R550 000
12.1 Marketing and branding strategy plan Intersection Randfontein LM
Detailed spatial development framework including phasing, engineering
4.2.4 WESTONARIA LOCAL MUNICIPALITY INDUSTRIAL PROJECTS
There is currently one industrial node located within the Westonaria Local Municipality. The
industrial node is Westonaria industrial. In addition to the existing industrial node, future space
demand forecast for the local municipality amounts to 20ha industrial land over the next two
decades. The N12 corridor poses significant corridor development potential. This opportunity,
however, needs to be structured and geo-logical surveys need to be conducted to facilitate the
creation of market confidence.
The following tables list the development initiatives / projects for the Westonaria industrial
40
The following table list the development projects identified for the existing industrial node located within the Westonaria Local Municipality.
Table 4.6 Westonaria Project List- Existing Industrial Nodes

Project
Nr *Priority
Party (Excl. Vat)
13 Westonaria
Westonaria WRDM /
13.1 Roads, storm water, sidewalks, street lighting, curbing etc. Medium term R1 million
industrial node Westonaria
Develop a safety, security and safety action plan for Westonaria
Assessment of crime statistics of Westonaria
Needs assessment with local businesses Westonaria WRDM /
13.2 Medium term R150 000
CCTV neighborhood system - design industrial node Westonaria
Pre-feasibility assessment costing model
41
Westonaria poses significant scope for industrial development aligned with contemporary principles along the N12 corridor, this corridor poses
significant development potential development potential that is being under mined by uncertainty and risks associated with dolomitic and under-
mining soil conditions. It is understood that the local authority is inundated with requests for industrial land, but that these requests cannot be satisfied
due to limited availability of land.
Table 4.7 Westonaria Project List - New Industrial nodes / Corridors

Project
Nr *Priority
Party (Excl. Vat)
14 N12 Westonaria corridor
Develop a comprehensive and detailed corridor plan
Geographic area: N12 Westonaria corridor
WRDM /
Market analysis and growth forecast, phasing plan and refined strategic focus
Westonaria /
14.1 Marketing and branding strategy plan N12 corridor Short term R1.75 million
Development
Detailed spatial development framework including phasing, engineering
Agency
Detailed geo-logical surveys WRDM /
Westonaria /
14.2 N12 corridor Short term R500 00
Development
Agency
4.3 SECTOR SUPPORT
Following are some sector support initiatives as identified for the West Rand.
Table 4.8 West Rand Sector Support Initiatives

Project
Nr Project Description *Priority Responsible Party Budget
Re-activate the regular interaction with the chamber of business and industry -
Similar to the successful Ekurhuleni model, a developers forum could be established, WRDM / Local Annual operating
15.1 this forum facilitates regular (monthly or bi-monthly) interaction between local Short term Municipalities / budget:
government and the business community. It serves as a multi-informative and WRDA / Chamber R250 000
of business
constructive engagement platform.
Rebrand the West Rand The existing West Rand brand, as articulated un the
WRDM logo, is strongly correlated with the historic dominance of mining in the region.
This brand, regardless of the richness of natural resources is nowadays associated
with less dynamic and attractive investment environments. Focused and
comprehensive rebranding of the West Rand would significantly improve investor WRDM / Local
15.2 perceptions and investment appeal. This comprehensive rebranding should address: Short term Municipalities / R10 million
District municipalitys brand identity WRDA
Align West Rand Development Agency brand identity
Webpage design
Billboards
Area and precinct branding material (town and suburban)
Establish and maintain a land-use database (monitor land use and allocate vacant land Short to medium Individual
15.3 to new industrial projects term municipalities Internal
Develop an economic and real estate performance monitoring system WRDM /
15.4 Short term R150 000
WRDA
Undertake an industrial skill matching exercise & develop learnership programmes WRDM / Local
15.5 Medium term municipalities R350 000
Support the formalisation of SMME industries develop local business hives, starter R50 million
packs, entrepreneurial programmes & mentoring etc. Sponsorships
15.6 Short term WRDM /
funding to be sources
WRDA from key sectors in
the area
Implement an Investor Aftercare Programme WRDM / Local
15.7 Medium term municipalities Internal
ANNEXURA A: INCENTIVE SCHEMES
Financial Assistance (Incentives):
In an effort to increase industrial competitiveness and broaden the participation of enterprises in

the economy, the DTI provides financial support to qualifying companies in various sectors of
the economy. Financial support is offered for various economic activities, including
manufacturing, business competitiveness, export development and market access, as well as
foreign direct investment.
SECTION 1: SMME DEVELOPMENT FINANCIAL ASSISTANCE

(INCENTIVES)
Table A: Black Business Supplier Development Programme

Table B: Enterprise Investment Programme
Table C: Small Enterprise Development Agency (SEDA) Technology Programme
Table D: Support Programme for Industrial Innovation (SPII)
Table A: Black Business Supplier Development Programme

Name Black Business Supplier Development Programme (BBSDP)
Description The Black Business Supplier Development Programme (BBSDP) is a cost-
sharing grant offered to small black-owned enterprises to assist them to
improve their competitiveness and sustainability in order to become part of the
mainstream economy and to create employment. BBSDP provides a grant to a
maximum of R1 000 000 (R800 000 maximum for tools, machinery and
equipment and R200 000 maximum for eligible enterprises to improve their
corporate governance, management, marketing, productivity and use of modern
technology).
Beneficiaries Majority-black-owned enterprises or those with a predominantly black
management team.
Enterprises with a turnover of R250 000 to R35 million per year.
The enterprise must have been operating and trading for at least one
financial year.
Objectives To improve the sustainability of black-owned enterprises, thereby increasing
employment.
To increase the level of funding support in order to achieve a higher impact
on targeted enterprises.
Benefits R800 000 for tools,
Machinery and equipment on a 35:65 cost-sharing basis (contribution by the
Department of Trade and Industry (the DTI) = 35%; contribution by the
enterprise = 65%).
R200 000 for business development services on a 50:50 cost-sharing basis.
Contact Details the DTI Campus
77 Meintjies Street
Sunnyside
Pretoria
0002
the DTI Customer Contact Centre: 0861 843 384
the DTI Website: www.theDTI.gov.za
44
Table B: Enterprise Investment Programme

Name Enterprise Investment Programme (EIP)
1) Manufacturing Investment Programme (MIP)
Description The MIP is a reimbursable cash grant for locally based manufacturers who wish
to establish a new production facility; expand an existing production facility; or
upgrade an existing facility in the clothing and textiles sector.
Beneficiaries Local investors in the manufacturing industry
Objectives Stimulate investment in manufacturing.
Increase employment opportunities.
Sustain enterprise growth.
Benefits Investment grants of 15% to 30% of the investment cost of qualifying assets for
new establishments or expansions.
2) Tourism Support Programme (TSP)
Description The TSP is a reimbursable cash grant that aims to support the development of
tourism enterprises that will stimulate job creation and increase the geographic
spread of tourism investment. The grant is for the establishment or expansion of
tourism operations such as:
accommodation services;
passenger transport services;
tour operators; and
Cultural services, and recreational and entertainment services.
Beneficiaries Locally owned tourism entities.
Objectives Stimulate job creation.
Encourage the geographic spreading of tourism activities.
Implement Broad-Based Black Economic Empowerment (B-BBEE).
Benefits Investment grants of 15% to 30% of the investment cost of qualifying assets for
new establishments or expansions.
77 Meintjies Street
Sunnyside
Pretoria
0002
the DTI Customer Contact Centre: Tel: 0861 843 384
Table C: Small Enterprise Development Agency (seda) Technology Programme

Name Small Enterprise Development Agency (seda) Technology Programme
(STP)
Objectives As part of the governments strategy to consolidate small-enterprise support
activities since April 2006, the activities of the Godisa Trust, the National
Technology Transfer Centre (NTTC), the three business incubators of the DTI,
the Technology Advisory Centre (TAC), the technology-transfer activities of the
Technology for Women in Business (TWIB) programme and the support
programmes for small enterprises of the South African Quality Institute were
merged into a single programme the seda Technology Programme (STP).
Benefits R800 000 for tools, machinery and equipment on a 35:65 cost-sharing basis
(contribution by the Department of Trade and Industry (the DTI) = 35%;
contribution by the enterprise = 65%). R200 000 for business development
services on a 50:50 cost-sharing basis.
Technology Tel.: +27 (12) 441 1113
Transfer Fax: +27 (12) 441 2113
Division: E-mail: RMoodley@seda.org.za
Website: www.stp.org.za
Table D: Support Programme for Industrial Innovation (SPII)

Name Support Programme for Industrial Innovation (SPII)
Description The Support Programme for Industrial Innovation (SPII) is a support programme
of the DTI, managed by the Industrial Development Corporation (IDC). The SPII
is designed to promote technology development in industry in South Africa
through the provision of financial assistance for the development of innovative
45
Name Support Programme for Industrial Innovation (SPII)
products and/or processes. The SPII specifically focuses on the development
phase, which begins at the conclusion of basic research and ends when a
preproduction prototype has been produced.
Contact Details Fund Manager: Sithembile Bagopi
Tel.: +27 (11) 269 3450
Fax: +27 (11) 269 3126
E-mail: sithembileb@idc.co.za
General Tel.: +27 (11) 269 3911

Fax: +27 (11) 269 3126
E-mail: spii@idc.co.za
Website: www.spii.co.za
SECTION 2: INDUSTRIAL DEVELOPMENT FINANCIAL ASSISTANCE (INCENTIVES)
Table E: Income Tax Allowance

Table F: Production Incentive (PI)
Table G: Capital Projects Feasibility Programme (CPFP)
Table H: Competitiveness Improvement Programme (CIP)
Table I: Industrial Development Zone (IDZ)
Table J: Business Process Services (BPS) Incentive
Table K: Critical Infrastructure Programme (CIP)
Table L: Clothing and Textile Competitiveness Improvement Programme (CTCIP)
Table M: The Technology and Human Resources for Industry Programme (THRIP)
Table E: Income Tax Allowance

Name Income Tax Allowance
Description The Income Tax Allowance programme, which is based on Section 12i of the
Income Tax Act, 1962 (Act No. 58 of 1962), provides a tax and training
allowance for entities in manufacturing.
Beneficiaries Greenfield investments (i.e. new industrial projects that utilise only new and
unused manufacturing assets).
Brownfield investments (i.e. expansions or upgrades of existing industrial
projects
Objectives Greenfield investments (i.e. new industrial projects that utilise only new and
unused manufacturing assets).
Brownfield investments (i.e. expansions or upgrades of existing industrial
projects support investment in manufacturing assets to improve the
productivity of the South African manufacturing sector.
Support training of personnel to improve labour productivity and the skills
profile of the labour force.
Benefits R900 million in the case of any Greenfield project with a preferred status.
R550 million in the case of any other Greenfield project.
R550 million in the case of any Brownfield project with a preferred status.
R350 million in the case of any other Brownfield project.
The deduction of an additional training allowance of R36 000 per employee
from taxable income.
A maximum total additional training allowance per project, amounting to R20
million, in the case of a qualifying project, and R30 million in the case of a
preferred project.
77 Meintjies Street
Sunnyside
Pretoria
0002
Table F: Production Incentive (PI)
Name Production Incentive (PI)
Description Under the Production Incentive (PI), applicants can use the full benefit as either
an upgrade grant facility or an interest subsidy facility, or a combination of both.
Beneficiaries Clothing manufacturers.
Textile manufacturers.
Cut, Make and Trim (CMT) operators.
Footwear manufacturers.
Leather goods manufacturers.
Leather processors (specifically for leather goods and footwear industries).
Objectives Assist the industry in upgrading its processes, products and people.
Benefits A benefit equal to 10% for the year ending March 2011 of a companys
Manufacturing Value Addition (MVA).
77 Meintjies Street
Sunnyside
Pretoria
0002
Table G: Capital Projects Feasibility Programme (CPFP)

Name Capital Projects Feasibility Programme (CPFP)
Description The Capital Projects Feasibility Programme (CPFP) is a cost-sharing
programme that contributes to the cost of feasibility studies likely to lead to
projects outside South Africa that will increase local exports and stimulate the
market for South African capital goods and services.
Beneficiaries South African enterprises.
Objectives Attract higher levels of domestic and foreign investment.
Strengthen the international competitiveness of South African enterprises.
Create jobs.
Benefits The funds contribution is in the form of an advance up to a maximum of
50% of study costs for projects outside Africa and 55% for projects in Africa.
77 Meintjies Street
Sunnyside
Pretoria
0002
Table H: Competitiveness Improvement Programme (CIP)

Name Competitiveness Improvement Programme (CIP)
Description Grants under the Competitiveness Improvement Programme (CIP) are to be
used for the following interventions:
World-class manufacturing principles;
Training;
Labour relations and employee wellness programmes;
Product related;
Supply chain integration;
Industrial engineering;
Competitiveness improvement; and
Bottom-line business processes.
Beneficiaries Clothing and textile companies and clusters
Objectives To improve companies people, processes and products.
Benefits A 65% grant for companies and a 75% grant for cluster initiatives, subject to the
following limitations:
Grant support for each company will be limited to a cumulative ceiling of
R2.5 million over the five-year period of the programmes implementation.
Grant support for each approved partnership will be limited to a cumulative
Name Competitiveness Improvement Programme (CIP)
ceiling of R25 million over the five-year period of the programmes
implementation.
77 Meintjies Street
Sunnyside
Pretoria
0002
Table I: Industrial Development Zone (IDZ)

Name Industrial Development Zone (IDZ)
Description An Industrial Development Zone (IDZ) is a purpose-built industrial estate linked
to an international sea- or airport that leverages fixed direct investments in
value-adding and export-oriented manufacturing industries. The IDZ
programme provides a platform for regulation with regard to IDZ projects and
for the monitoring of the establishment, development and management of such
projects.
Beneficiaries Interested parties may approach the Minister of Trade and Industry to apply
for a specified area linked to a port with customs facilities to be considered
as an area suitable for the development of an IDZ.
The application for designation must be accompanied by an application for
an IDZ operator permit by the intended company for the area proposed for
development.
In case of a new IDZ, the application for an IDZ operator permit must
accompany the application for designation of an area for which the IDZ
operator permit is sought.
In case of an existing IDZ, the provisions regarding the transfer of an IDZ
operator permit must be complied with.
Objectives Enhance the competitiveness of local industries.
Promote foreign and local direct investment.
Benefits A Customs-Controlled Area (CCA) with dedicated officials from the South
African Revenue Service (SARS) to provide support with customs and
Value-Added Tax (VAT) requirements.
World-class support of industrial infrastructure linked to an international port
of entry.
Duty suspensions on imports for production-related raw material, including
machinery and assets used in production with the aim of exporting the
finished product.
VAT exemptions under specific conditions for supplies procured in South
Africa. Business Process Services (BPS) Incentive
77 Meintjies Street
Sunnyside
Pretoria
0002
Table J: Business Process Services (BPS) Incentive

Name Business Process Services (BPS) Incentive
Description The South African government implemented a Business Process Outsourcing
and Off shoring (BPO&O) incentive programme as from July 2007. Between
July 2007 and March 2010, the incentive resulted in the creation of at least
6 000 new jobs and attracted R303 million in direct investment.
As part of a process of improving South Africas position as an investment
destination, a systematic review of the BPO&O incentive programme was
undertaken with the private sector, resulting in a revised BPS incentive.
Beneficiaries The DTI will determine whether an applicant is eligible to benefit from the BPS
Name Business Process Services (BPS) Incentive
incentive, based on the requirements that an applicant (legal entity):
must be performing BPS activities;
may be involved in starting a new operation or expanding an existing
operation in order to perform BPS activities, which may be operated from
more than one physical location in South Africa;
must, by the end of three years from the start of operation of the new project
or the expansion, have created at least 50 new off-shore jobs in South
Africa, as defined in the BPS Incentive Programme Guidelines;
must commence its commercial operations no later than six months from
the date on which the BPS incentive grant was approved. Failure to reach
this target date will lead to the cancellation or disqualification of the
application, thus requiring the applicant to submit a revised application to
reapply for the grant; and
if in a joint venture arrangement, must have at least one of the parties
registered in South Africa as a legal entity.
Objectives The BPS incentive aims to attract investment and create employment in South
Africa via off-shoring activities.
Benefits The BPS incentive comprises the following two (2) components:
base incentive, which offers a three-year operational expenditure (Opex)
grant that tapers down in line with the narrowing cost gap between South
Africa and other destinations; and
graduated bonus incentive, which is offered for greater job creation if the
applicant exceeds certain annual offshore job creation targets, as per
paragraph 8.2. It is payable only in the year(s) in which the targets are
exceeded and is structured as a percentage of the base incentive.
77 Meintjies Street
Sunnyside
Pretoria
0002
Table K: Critical Infrastructure Programme (CIP)

Name Critical Infrastructure Programme (CIP)
Description The Critical Infrastructure Programme (CIP) is a non-refundable cash grant for
projects designed to improve critical infrastructure in South Africa. The grant
covers between 10% and 30% of the total development costs of qualifying
infrastructure. It is made available to approved beneficiaries upon the
completion of the infrastructure project concerned. Infrastructure for which
funds are required is deemed to be critical: if the investment would not take
place without the infrastructure and without the CIP funding contribution; or if it
can be proven that it would be at a smaller scale or of lower quality if it were to
be established at a later stage than the period for when it was intended.
Beneficiaries Public sector entities such as municipalities.
Private investors.
Partnerships between public and private entities.
Investors in strategic economic projects.
Objectives Support competitiveness by lowering business costs and risks.
Provide targeted financial support for physical infrastructure.
Stimulate upstream and downstream linkages.
Benefits A cash grant of a maximum of 30% of the development cost of qualifying
infrastructure
77 Meintjies Street
Sunnyside
Pretoria
0002
Table L: Clothing and Textile Competitiveness Improvement Programme (CTCIP)
Name Clothing and Textile Competitiveness Improvement Programme (CTCIP)
Description The Clothing and Textile Competitiveness Improvement Programme (CTCIP)
aims to build capacity among clothing and textile manufacturers and in other
areas of the apparel value chain in South Africa to enable them to effectively
supply their customers and compete on a global scale. Such competitiveness
encompasses issues of cost, quality, flexibility, reliability, adaptability and the
capability to innovate.
Objectives The main objective with the CTCIP is to create a group of globally competitive
clothing and textile companies, thus ensuring a sustainable environment that
will retain and grow employment levels.
77 Meintjies Street
Sunnyside
Pretoria
0002
Table M: The Technology and Human Resources for Industry Programme (THRIP)
Name The Technology and Human Resources for Industry Programme (THRIP)
Description The Technology and Human Resources for Industry Programme (THRIP) is a
partnership programme funded by the DTI and managed by the National
Research Foundation (NRF). On a cost-sharing basis with industry, THRIP
supports science, engineering and technology research collaborations focused
on addressing the technology needs of participating firms and encouraging the
development and mobility of research personnel and students among
participating organisations.
Contact Details THRIP Manager: Dr Mphekgo Maila
Tel.: +27 (12) 481 4131
Fax: +27 (12) 481 4197
E-mail: mphekgo@nrf.ac.za
Website: www.nrf.ac.za/thrip
SECTION 3: TRADE, EXPORT AND INVESTMENT FINANCIAL ASSISTANCE

(INCENTIVES)
Table N: Export Marketing and Investment Assistance (EMIA)

Table O: Foreign Investment Grant (FIG)
Table P: Sector-Specific Assistance Scheme (SSAS)
Table Q: Automotive Investment Scheme (AIS)
Table R: Film and Television Incentive
Table N: Export Marketing and Investment Assistance (EMIA)

Name Export Marketing and Investment Assistance (EMIA)
Description A scheme that partially compensates exporters in respect of activities aimed at
developing export markets for South African (SA) products and services, and
recruiting new Foreign Direct Investment (FDI) into SA.
Beneficiaries SA manufacturers and exporters.
SA export trading houses representing at least three SMMEs or businesses
owned by Historically Disadvantaged Individuals (HDIs).
SA commission agents representing at least three SMMEs/HDI-owned
businesses.
SA export councils, industry associations and JAGs representing at least
five South African entities.
Objectives Provide marketing assistance to develop new export markets and grow
existing export markets.
Assist with the identification of new export markets through market
research.
Name Export Marketing and Investment Assistance (EMIA)
Assist companies to increase their competitiveness by supporting patent
registrations, quality marks and product marks.
Assist with facilitation to grow FDI through missions and FDI research.
Increase the contribution of black-owned and small and medium-sized
enterprises to South Africas economy.
Benefits Individual exhibition participation: Exhibition costs, including rental of
exhibition space, construction of stand, interpretation fees, Internet
connection, telephone installation and registration fees up to a maximum of
R45 000.
Primary market research & FDI: Exporters will be compensated for costs
incurred recruiting new FDI into South Africa through personal contact by
visiting potential investors in foreign countries.
Individual inward missions: Assistance under this scheme is extended
towards capacity building and skills transfer.
77 Meintjies Street
Sunnyside
Pretoria
0002
Table O: Foreign Investment Grant (FIG)

Name Foreign Investment Grant (FIG)
Description The Foreign Investment Grant (FIG) compensates qualifying foreign investors
for costs incurred in moving qualifying new machinery and equipment (vehicles
excluded) from abroad to the Republic of South Africa.
Beneficiaries Foreign investors only.
Objectives Compensate qualifying foreign investors for the costs of moving qualifying new
machinery and equipment from abroad to South Africa.
Benefits A cash grant, to a maximum of R10 million, but the lesser quantity of:
15% of the value of new machinery and equipment; or
the actual relocation cost of new machinery and equipment.
77 Meintjies Street
Sunnyside
Pretoria
0002
Table P: Sector-Specific Assistance Scheme (SSAS)

Name Sector-Specific Assistance Scheme (SSAS)
Description The Sector-Specific Assistance Scheme (SSAS) is a reimbursable 80:20 cost-
sharing grant offering financial support to export councils, joint action groups
and industry associations. The scheme comprises two sub-programmes,
namely Generic Funding and Project Funding for Emerging Exporters (PFEE).
The aim of the SSAS is aligned to the DTIs overall objectives in several
respects, as indicated below.
Beneficiaries Export councils: Established through application to the DTI. Export
councils are Section 21 (non-profit) companies that represent the
developmental and promotional objectives of a particular industry or
industries on a national level.
Industry associations: Representative of sectors or subsectors of industry
that have been prioritised for development and promotion, as determined by
the relevant Customised Sector and Export Promotion desks of the DTI.
Joint Action Groups of three (3) or more entities. JAGs seek to co-operate on projects in
Groups (JAGs) particular sectors or sub-sectors of industry which have been prioritised for
development and promotion by the DTI. Qualifying sectors include:
Name Sector-Specific Assistance Scheme (SSAS)
Aerospace;
Rail and marine;
Agro-processing;
Automotive;
Business Process Outsourcing and Off shoring (BPO&O);
Capital equipment and allied services;
Chemical allied industries;
Creative industries;
Electro-technical;
Film production;
Metals and allied industries;
Pre-qualified Information, Communication and Technology (ICT) services;
Pre-qualified tourism services, only for investment purposes (excluding real
estate agents); and
Textiles and clothing.
Objectives Develop an industry sector as a whole.
Develop new export markets.
Stimulate job creation.
Broaden the export base.
Propose solutions to factors inhibiting export growth.
Promote the broader participation of black-owned and Small, Medium and
Micro-sized Enterprises (SMMEs) in the economy.
Benefits Export development costs such as market research, consultancy fees and
other expenses.
Export promotion costs such as consultancy fees and other expenses.
Product development costs such as consultancy fees and other expenses.
Company development costs such as consultancy fees and expenses
towards installing or improving quality management systems.
Service development costs such as consultancy fees and other expenses.
Advertising and publicity (international).
77 Meintjies Street
Sunnyside
Pretoria
0002
Table Q: Automotive Investment Scheme (AIS)

Name Automotive Investment Scheme (AIS)
Description The Automotive Investment Scheme (AIS) is an incentive
designed to grow and develop the automotive sector through
investment in new and/or replacement models and components
that will increase plant production volumes, sustain employment
and/or strengthen the automotive value chain.
Beneficiaries The applicant must be a registered legal entity in South Africa in terms of the
Companies Act, 1973 (Act No. 61 of 1973) (as amended); or the Close
Corporations Act, 1984 (Act No. 69 of 1984) (as amended), and must undertake
manufacturing in South Africa.
Taxpayer in good standing.
Light motor vehicle manufacturers

Projects eligible to access funding through the AIS include:
Those undertaken by manufacturers of specified light motor vehicles which
are registered with the International Trade Administration Commission
(ITAC), as per Note 1, Chapter 98 of the Customs and Excise Act, 1964;
Those undertaken by existing light motor vehicle manufacturers which have
achieved, or can demonstrate that they will achieve, a minimum of 50 000
annual units of production per plant, within a period of three (3) years; or
Those undertaken by new light motor vehicle manufacturers which can
Name Automotive Investment Scheme (AIS)
demonstrate that over three (3) years, they will achieve a minimum of
50 000 annual units of production per plant.
Component or deemed component manufacturers
Projects eligible to access funding through the AIS include:
Those undertaken by light motor vehicle component manufacturers which
are part of the Original Equipment
Manufacturer (OEM) supply chain;
Those which can prove that a contract is in place and/or a contract has
been awarded and/or a letter of intent has been received for the
manufacture of components to supply into the light motor vehicle
manufacturer supply chain locally and/or internationally; or
Those which will achieve at least 25% of a total entity turnover or
R10 million by the end of the first full year of commercial production as part
of a light motor vehicle manufacturer supply chain locally and/or
internationally.
Objectives Strengthen and diversify the sector through investment in new and/or
replacement models and components.
Increase plant production volumes.
Sustain employment and/or strengthen the automotive value chain.
Benefits The AIS provides for a taxable cash grant of twenty percent (20%) of the
value of qualifying investment in productive assets, as approved by the DTI.
An additional taxable cash grant of five percent (5%) may be made available
for projects that maintain their base year employment figure throughout the
incentive period, and achieve at least two (2) of the following economic
requirements:
Tooling;
Research and
development in South Africa;
Employment creation;
Strengthening of the automotive value chain; and
Value-addition.
To qualify for a second grant of five percent (5%) (cumulative 10%), in
addition to the above, the project must demonstrate the following:
In respect of light motor vehicle manufacturers: a specified increase in unit
production per plant; and
In respect of component manufacturers: a specified increase in turnover
and manufacture components that are currently not manufactured in South
Africa.
77 Meintjies Street
Sunnyside
Pretoria
0002
Table R: Film and Television Incentive

Name Film and Television Incentive
Description The South African government offers a package of incentives to promote its film
production industry. The incentives consist of the Foreign Film and Television
Production incentive to attract foreign-based film productions to shoot on
location in South Africa and the South African Film and Television Production
and Co-production incentive, which aims to assist local film producers in the
production of local content.
1) Foreign Film and Television Production Incentive
Beneficiaries Foreign-owned qualifying productions with Qualifying South African
Production Expenditure (QSAPE) of R12 million and above, provided that at
least 50% of the principal photography schedule must be in South Africa, for
a minimum of four weeks.
An applicant must be a Special Purpose Corporate Vehicle (SPCV)
Name Film and Television Incentive
incorporated in the Republic of South Africa solely for the purpose of the
production of the film or television project.
An applicant must be the entity responsible for all activities involved in
making the production in South Africa and must have access to full financial
information for the whole production worldwide.
Only one entity per film production, television drama or documentary series
is eligible for the incentive
Objectives To encourage and attract large-budget films and television productions that will
contribute towards SAs economic development and international profile and
increase FDI.
Benefits 15% of the QSAPE; the rebate is capped at R20 million
2) South African Film and Television Production and Co-Production Incentive
Beneficiaries Special-Purpose Corporate Vehicles (SPCV) incorporated in the Republic of
South Africa solely for the purpose of the production of the film or television
project. The SPCV and parent companies must have a majority of South
African shareholders of whom at least one shareholder must play an active
role in the production and be credited in that role.
An applicant must be the entity responsible for all activities involved in
making the production in South Africa and must have access to full financial
information for the whole production.
Only one film production, television drama or documentary series per entity
is eligible for the incentive.
The following formats are eligible: feature films, tele-movies, television
drama series, documentaries and animation.
The incentive is available only to qualifying South African productions and
official treaty co-productions with a total production budget of R2.5 million
and above.
Objectives To support the local film industry and to contribute towards employment
opportunities in South Africa.
Benefits A rebate of up to 35% of the QSAPE. The rebate will be capped at R20 million.
77 Meintjies Street
Sunnyside
Pretoria
0002

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West Rand Industrial Strategy Development Strategy - July, 2013

West Rand Industrial

DEMACON Market Studies

SOUTH AFRICAN PROPERTY OWNERS ASSOCIATION (SAPOA)

SOUTH AFRICAN COUNCIL OF SHOPPING CENTRES (SACSC)

The information contained in this report has been compiled

DEVELOPMENT STRATEGY .....................................................................................................1

CHAPTER 1: SPACE DEMAND GROWTH FORECAST ...........................................................2

CHAPTER 2: TOWN PLANNING PROCEDURES AND RELATED ENGINEERING SERVICES

CHAPTER 3: INDUSTRIAL DEVELOPMENT STRATEGY FUNDAMENTALS .......................20

CHAPTER 4: INDUSTRIAL DEVELOPMENT PROJECTS ......................................................29

ANNEXURA A: INCENTIVE SCHEMES ...................................................................................44

Upgrade of existing industrial nodes

The Strategy document consists of the following main elements:

Space Demand Growth Forecast

See Annexure A for additional National Incentives Schemes.

CHAPTER 1: SPACE DEMAND GROWTH FORECAST

Mogale City Local Municipality

1.2 INDUSTRIAL SPACE DEMAND MODELLING

Swhol = f {Dwhole, Cw, Vw, Lu, Ia, GLAw, Cc}

SPACE DEMAND MODELLING

1.2.1 MOGALE CITY LOCAL MUNICIPALITY SPACE DEMAND

Development Type Effective Market Gap Development Prospects

Industrial Yes High

Cumulative Demand Frontier

Figure 1.2: Forecast Land Take-Up (Combined Regional Economy)

2033 100,66 165,01

2028 86,13 139,91

2023 65,87 104,93

Up to 2018 36,27 55,47

- 50,00 100,00 150,00 200,00 250,00 300,00

Source: Demacon Space Demand Model, 2013

Mogale City lends itself to the development of industrial developments of approximately

1.2.2 MERAFONG CITY LOCAL MUNICIPALITY SPACE DEMAND

Development Type Effective Market Gap Development Prospects

Industrial Yes Low / Medium

Cumulative Demand Frontier

Figure 1.4: Forecast Land Take-Up (Combined Regional Economy)

2033 7,44 12,38

2028 6,47 10,70

2023 4,06 6,54

Up to 2018 1,58 2,42

- 5,00 10,00 15,00 20,00 25,00

Source: Demacon Space Demand Model, 2013

Table 1.4: Merafong City LM Recommended Industrial Component (Short to medium

Merafong City lends itself to the development of industrial developments of approximately

1.2.3 RANDFONTEIN LOCAL MUNICIPALITY SPACE DEMAND

Development Type Effective Market Gap Development Prospects

Industrial Yes Medium / High

Figure 1.6: Forecast Land Take-Up (Combined Regional Economy)

2033 59,90 97,84

2028 53,16 86,22

2023 37,59 59,32

Up to 2018 19,35 29,17

- 20,00 40,00 60,00 80,00 100,00 120,00 140,00 160,00 180,00

Source: Demacon Space Demand Model, 2013

Table 1.6: Randfontein LM Recommended Industrial Component (Short to medium development

Randfontein lends itself to the development of industrial developments of approximately

1.2.4 WESTONARIA LOCAL MUNICIPALITY SPACE DEMAND

Development Type Effective Market Gap Development Prospects

Industrial Yes Medium

Figure 1.8: Forecast Land Take-Up (Combined Regional Economy)

2033 13,35 21,96

2028 10,55 17,11