Growing industries in the City of Johannesburg
The city’s high economic growth rate has undoubtedly been the major driver behind the performance of the national economy.
Johannesburg is the financial hub of South Africa and a vibrant metropolis where significant business transactions occur.
According to the cities website, it contributes 17% to the country’s GDP primarily through manufacturing, retail, and services.
The city hosts the South African headquarters for major global companies like McDonald’s, Zurich Re, Nokia, Toyota, and Coca-Cola. Home to all major banks and Africa’s largest stock exchange, the Johannesburg Stock Exchange, located in Sandton, it is the financial capital of the nation.
“Retail thrives in Joburg, drawing businesses from sub-Saharan Africa due to its status as one of the most affordable cities on the continent,” states the city.
Key retail areas include the inner city and Sandton City, with emerging markets in Soweto and Alexandra, alongside wholesale hubs in Woodmead, Midrand, and Hillfox.
A robust information and communications technology infrastructure bolsters the competitive business process outsourcing sector, including numerous call centres in the city.
The manufacturing landscape features technology products, furniture, clothing, and cosmetics, as well as heavier industries producing motor vehicle parts and engineering products in Industria and Booysens.
Johannesburg boasts a significant perishable goods industry, supported by the Joburg Market, which facilitates daily trading of fresh produce and meat.
“This diverse economy relies on the city’s excellent transportation network, including two major international airports – OR Tambo International and Lanseria – as well as Rand Airport. A comprehensive road and rail system efficiently moves goods in and out of Johannesburg, linking the largest inland port, the City Deep container depot, with the rest of the country.”
Growing Industries in Johannesburg according to the city:
• Diversification to fast growing sectors – One of the key reasons for the city’s growth has been a diversification from its original mining base to globally fast-growing sectors, in line with the country’s shift to a diversified manufacturing and services economy.
• Financial and Business Services – This star of the Johannesburg economy has recorded consistently high growth rates and has been a net creator of employment, with all the large banks, a number of the large insurance companies, and many information and communications technology (ICT) companies located in Johannesburg.
• Community and Personal Services – Growth in this sector reflects the expansion of public sector services to address infrastructure, education, and health issues at national, provincial, and metropolitan government levels, with the government sector tending to be fairly immune to economic factors.
• Manufacturing – The nature of manufacturing in Johannesburg is of a higher value add and the strategy for the Johannesburg economy has been to increase activities at the tertiary level of manufacturing, promoting high-value added manufacturing.
• Trade – This encompasses all forms of wholesale and retail trade, including the sales, maintenance, and repair of motor vehicles, as well as the hospitality and leisure industries.
• Transport and Communication – Making up a relatively small portion of the city’s economy, the areas of logistics and telecommunications are vital for the city’s development and the performance of other critical sectors, such as finance and business services (telecommunications), and manufacturing, trade, and construction (transport).
• Construction – City of Johannesburg construction sector was one of the most resilient sectors over the years since 2006. It was one of few sectors that has continued to grow over time. Commercial developments, public transport programmes, and public spending on infrastructure programmes supported growth in the sector.
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