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MANUFACTURING REGIONS
REGION

FAVOURABLE
FACTORS

LIMITATIONS

MAIN
INDUSTRIES

PWV Complex
DurbanPinetown
South-western
Cape
Port ElizabethUitenhage

Problem: Development only in these four regions, the rest of the
country under developed. Post 1994 government developed a
programme to promote development across the country
Gauteng Facts
•30% of SA population
•370 people/km2
•97% urbanised – not
necessarily civilized?
•70%of SA’s labour force
•22% contribution to
mining sector
•38% of SA’s GDP
•1,4% of SA’s area
OVER CENTRALIZATION ISSUES (AGGLOMERATION)


Congestion



Pollution – air, noise, land



Insufficient housing



Infrastructure becomes over used – power cuts



Insufficient jobs-no money, squatter camps and crime

MINING’S CONTRIBUTION TO JHB


JHB 1886



Brought people – towns established



Supporting industries e.g. explosives, wood, clothing etc.



Road and rail network



Other infrastructural development – electricity, hospitals and schools, water
MINING AND JHB TODAY


Many gold mines exhausted and closed



Mines on edge of golden circle still successful



Secondary industries are well entrenched



Tertiary activities dominate e.g. business tourism, banking and selling

MAJOR INDUSTRIES
Major Industries


ESKOM



AECI



AFROX



ISCOR



SASOL



Food and beverages



Motor vehicles – market and steel

Major Services


Stock exchange



Banking



IT
FACTORS FAVOURING INDUSTRY
IN GAUTENG


Central position in SA



Flat land



Gold mining attracted skilled labour



Water – TVTS, LHWP



Electricity from Mpumalanga



Better salaries



Excellent infrastructur



Raw materials close by; platinum, gold, maize, coal and iron



Transport links well established



Large local market – rural and African migration



Many technikons/uni’s/colleges to impart skills



Close to Harbour’s – Richards Bay, Durban and Maputo
http://www.youtube.com/watch?v=GtKlQTbxcHc
EASTERN CAPE
PORT ELIZABETH - UITENHAGE
EASTERN CAPE ADVANTAGES


Central position to Durban and Cape Town



Much labour available



Foreign investment in motor industry (VW stared in Uitenhage in 1926 - GM pulled out in
1980’s, now improved)



Coega is meant to stimulate economy



Wild coast, Addo Elephant Park – eco-tourism

EASTERN CAPE DISADVANTAGES


Underdeveloped because of previous homelands, Ciskei and Transkei – poor services,
infrastructure (few access roads, no piped water, few schools)



Poor environment – many subsistence farmers, overgrazed, trees cut for firewood and
footpaths cause erosion



Overcrowding, overgrazing and soil erosion



Limited job opportunities



Labour costs too high – Asia and E. Europe car manufacturing



Strikes / labour unrest
COEGA HARBOUR

DOLLOS NEAR COEGA
COEGA PROMISES


Deep water port



Attract foreign companies



Plenty of space to expand



Regular water supply from Orange-Fish
Tunnel



Government backed project



New jobs



New improved infrastructure



Foreign investment



New skills learnt



Increased tourism

COEGA ISSUES


Long distance to main market of Gauteng, when Richards Bay and Maputo are available



E. Cape cannot support this venture financially. Foreign investments promised but not
delivered and rand has devalued.



White Elephant?



Pollution

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PWV and PE Regions

  • 2. MANUFACTURING REGIONS REGION FAVOURABLE FACTORS LIMITATIONS MAIN INDUSTRIES PWV Complex DurbanPinetown South-western Cape Port ElizabethUitenhage Problem: Development only in these four regions, the rest of the country under developed. Post 1994 government developed a programme to promote development across the country
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  • 4. Gauteng Facts •30% of SA population •370 people/km2 •97% urbanised – not necessarily civilized? •70%of SA’s labour force •22% contribution to mining sector •38% of SA’s GDP •1,4% of SA’s area
  • 5. OVER CENTRALIZATION ISSUES (AGGLOMERATION)  Congestion  Pollution – air, noise, land  Insufficient housing  Infrastructure becomes over used – power cuts  Insufficient jobs-no money, squatter camps and crime MINING’S CONTRIBUTION TO JHB  JHB 1886  Brought people – towns established  Supporting industries e.g. explosives, wood, clothing etc.  Road and rail network  Other infrastructural development – electricity, hospitals and schools, water
  • 6. MINING AND JHB TODAY  Many gold mines exhausted and closed  Mines on edge of golden circle still successful  Secondary industries are well entrenched  Tertiary activities dominate e.g. business tourism, banking and selling MAJOR INDUSTRIES Major Industries  ESKOM  AECI  AFROX  ISCOR  SASOL  Food and beverages  Motor vehicles – market and steel Major Services  Stock exchange  Banking  IT
  • 7. FACTORS FAVOURING INDUSTRY IN GAUTENG  Central position in SA  Flat land  Gold mining attracted skilled labour  Water – TVTS, LHWP  Electricity from Mpumalanga  Better salaries  Excellent infrastructur  Raw materials close by; platinum, gold, maize, coal and iron  Transport links well established  Large local market – rural and African migration  Many technikons/uni’s/colleges to impart skills  Close to Harbour’s – Richards Bay, Durban and Maputo
  • 10. PORT ELIZABETH - UITENHAGE
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  • 12. EASTERN CAPE ADVANTAGES  Central position to Durban and Cape Town  Much labour available  Foreign investment in motor industry (VW stared in Uitenhage in 1926 - GM pulled out in 1980’s, now improved)  Coega is meant to stimulate economy  Wild coast, Addo Elephant Park – eco-tourism EASTERN CAPE DISADVANTAGES  Underdeveloped because of previous homelands, Ciskei and Transkei – poor services, infrastructure (few access roads, no piped water, few schools)  Poor environment – many subsistence farmers, overgrazed, trees cut for firewood and footpaths cause erosion  Overcrowding, overgrazing and soil erosion  Limited job opportunities  Labour costs too high – Asia and E. Europe car manufacturing  Strikes / labour unrest
  • 14. COEGA PROMISES  Deep water port  Attract foreign companies  Plenty of space to expand  Regular water supply from Orange-Fish Tunnel  Government backed project  New jobs  New improved infrastructure  Foreign investment  New skills learnt  Increased tourism COEGA ISSUES  Long distance to main market of Gauteng, when Richards Bay and Maputo are available  E. Cape cannot support this venture financially. Foreign investments promised but not delivered and rand has devalued.  White Elephant?  Pollution