Table of Contents
1 Introduction......................................................................................................................................7
2 The economics of cities and the changing economic structure of Johannesburg ..........................8
2.1 Overview of industrial development in Johannesburg ............................................................8
2.2 The City of Johannesburg’s economic development strategy ..............................................12
..............................................................................................................................................................14
3 Approach and methodology ..........................................................................................................15
3.1 Identifying the firms ...............................................................................................................15
3.2 Firm survey............................................................................................................................16
3.2.1 Survey methodology .....................................................................................................16
3.2.2 Data collection...............................................................................................................16
3.2.3 In-depth interviews ........................................................................................................18
4 Findings from the census and the survey .....................................................................................19
4.1 Findings from the census ......................................................................................................19
4.2 Findings from the survey.......................................................................................................20
4.3 Overview of the respondents ................................................................................................21
4.3.1 Manufacturing respondents...........................................................................................21
4.3.2 Manufacturing-related services firms ............................................................................25
4.3.3 Conclusion on characteristics of manufacturing and services firms .............................28
4.4 Performance in the prevailing environment conditions .........................................................28
4.4.1 Determinants of manufacturing firms’ performance......................................................30
4.4.2 Capacity utilisation of manufacturing firms ...................................................................32
4.4.3 Access to markets: exports ...........................................................................................33
4.4.4 Main customer markets.................................................................................................37
4.4.5 The main challenges faced by firms in the City of Johannesburg ................................38
4.5 Improving competitiveness....................................................................................................39
4.5.1 Manufacturing firms’ equipment and innovativeness ....................................................39
4.5.2 Technology and investment by manufacturing firms.....................................................40
4.5.3 Skills and training ..........................................................................................................43
4.5.4 Public services for manufacturing firms ........................................................................47
5 Industrial Node Review .................................................................................................................51
5.1 Classification of industrial nodes...........................................................................................52
5.2 Cross-cutting issues emerging from in-depth interviews ......................................................53
5.2.1 Government incentives .................................................................................................53
5.2.2 Electricity supply............................................................................................................53
5.2.3 Training .........................................................................................................................53
5.2.4 Public transport .............................................................................................................54
5.2.5 Interaction with the City – billing and response times ...................................................54
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5.3 Specific issues in different categories of nodes ....................................................................54
5.3.1 Sophisticated and diverse: Kya Sand, Strijdom Park, and Robertville .........................54
5.3.2 Niche and neglected .....................................................................................................54
5.3.3 Average performance of firms in various nodes ...........................................................55
5.4 Individual node profiles .........................................................................................................56
5.4.1 Robertville .....................................................................................................................56
5.4.2 Kya Sand.......................................................................................................................57
5.4.3 Devland .........................................................................................................................59
5.4.4 Strijdom Park.................................................................................................................61
5.4.5 Nancefield .....................................................................................................................62
5.4.6 Marlboro/Wynberg.........................................................................................................63
5.5 City Deep: Africa’s largest inland port...................................................................................65
6 Conclusion and Recommendations ..............................................................................................69
6.1 What is the nature of economic activity across the industrial nodes in the City of
Johannesburg? .................................................................................................................................69
6.2 How are firms performing?....................................................................................................70
6.3 What are the key constraints to firm growth?........................................................................70
6.4 What should the City do? ......................................................................................................70
References........................................................................................................................................72