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Economic Development:
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Business prospects and investment

The City of Tshwane has a balanced and diverse industrial economy that includes enterprises in the information and communications technology, steel, pharmaceuticals and electronics industries. The vision that the City of Tshwane Metropolitan Municipality has for the city is of it being the leading African capital, a city of excellence that empowers its community to prosper in a safe and healthy environment.

One of the objectives the Municipality has set itself is to act as a channel through which bilateral trade agreements with other regions of the world can be concluded, investors and investment can be attracted and new markets can be opened up.

Tshwane currently boasts one of the healthiest municipalities financially. The credit ratings it received from CA-Ratings are proof: The A+ long-term credit rating it was given means that Tshwane has a strong outlook, and the A short-term rating that it is stable. The ratings are based on the city's ability to meet its long-term commitments, on its short-term liquidity and on its level of administrative, executive and political stability.

The Municipality has reached several milestones, the most important being the approval of the Tshwane 2020 Integrated Growth and Development Strategy. The strategy proposes certain restructuring and alternative service delivery options for improving the quality of life of all the city's residents. With it, the Municipality is also aiming to boost investment in the city and increase economic growth. The strategy will gradually transform and reshape Tshwane's economy and geography so that the city can become a world-class business centre with services and living standards that are on a par with those of most other capital cities in the developed world.

Among the initiatives in which the Municipality is involved is Blue IQ, the spatial development initiative of the Gauteng Provincial Government that focuses on technology, high-value-added manufacturing, transport and tourism drives to secure Gauteng's position as the economic heartland of South Africa.

Tshwane is a key node in South Africa's automotive industry. According to figures published by the National Association of Automobile Manufacturers of South Africa, almost 40 per cent of our passenger vehicles are manufactured in the Tshwane area (three major automotive manufacturers and assemblers are located within the city's boundaries).

With Tshwane being an automotive centre, the Municipality's Local Economic Development Division has embarked on a series of initiatives in partnership with players in the local automotive industry. An automotive cluster has, for example, been formed, involving original-equipment manufacturers, automotive component manufacturers, the CSIR and the provincial and national governments.

The Automotive Industry Development Centre (AIDC) has been one of the spin-offs of the collaboration and cluster initiatives. The AIDC is focusing on increasing global competitiveness and expanding local automotive resources. It will link up with international technology organisations such as the Warwick Manufacturing Group of Britain and the German Fraunhofer Institute.


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