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Economy of Gauteng

Economy of Gauteng Province
Johannesburg, the financial capital of South Africa
CurrencySouth African Rand (ZAR)
Statistics
GDPZAR 2.2 trillion
US$ 135 billion (2022)[1]
0.62 (2007)[2]
Labour force
5.1 Million (2009)[3]
Unemployment23.7% (2009)[4]
Public finances
RevenuesR261 billion (2011/12)[5]
ExpensesR76.9 billion (2013/14)[6]


Main sectors as a proportion of GDP in 2010/11.[7]

  Electricity, Gas and Water (2.5%)
  Construction (4.5%)
  Wholesale, retail, motor trade and accommodation (12.6%)
  Transport, storage and communication (7.8%)
  Finance, real estate and business services (22.8%)
  Personal services (4.0%)
  General government services (16.3%)
  Taxes less subsidies on products (9.2%)
  Agriculture, forestry and fishing (0.5%)
  Mining and quarrying (3.3%)
  Manufacturing (16.5%)
  Other (1.0658141036402E-14%)

Gauteng's GDP contribution compared to other South African provinces.[7]

  Gauteng (33.9%)
  Kwa-Zulu Natal (16.1%)
  Limpopo (7%)
  Mpumalanga (7.1%)
  Northern Cape (2.3%)
  North West Province (6.5%)
  Western Cape (14%)
  Eastern Cape (7.6%)
  Free State (5.5%)

The Gauteng Province's total GDP for 2022 was R2.2 trillion (US$ 135 billion), making the province the single largest contributor to South Africa's GDP with a contribution of 33%,[1] despite having only 1.4% of South Africa's land area.[8] Gauteng's Gini coefficient of 0.62 makes it more equal than South Africa (the Gini coefficient of which is 0.63 (2014)[9]) as a whole, although this is still a very high figure by international standards. The cities Johannesburg, Midrand and Pretoria, which are all economic powerhouses, and Vanderbijlpark, which is an industrial powerhouse,[10] are all in Gauteng.

Gauteng is home to the Johannesburg Stock Exchange,[11] the largest stock exchange in Africa, as well as the head offices of over 140 local and international banks.[7] Some of the largest companies in Africa and abroad are based in Gauteng, or have offices and branches there, such as Vodacom,[12] MTN,[13] Microsoft South Africa[14] and the largest Porsche Centre in the world.[15]

History

Further information: Mineral Revolution and Witwatersrand Gold Rush

Gauteng was, for all intents and purposes, established with the establishment of administratively orientated Pretoria in 1855 and the establishment of Johannesburg thereafter in 1886[16] as a gold mining town. The economy of the Western Cape and Cape Town was dominant in South Africa until the mid 19th century. The establishment of Gauteng via Pretoria and Johannesburg ended this dominance for the Western Cape as economic and political power now shifted to the Gauteng region.[17]

Imports and exports

From 2002 to 2009, Gauteng's share of national imports and exports shares grew from 58.1% and 57% respectively to 59% and 66.7%, which is indicative of the high economic activity within the Gauteng region.[18] In 2009, Gauteng's total imports amounted to R316 billion,[19] while exports amounted to R337,6 billion.[20] The most imported commodity to Gauteng for 2009 was, by far, machinery and electrical equipment, which took up over one third of the province's imports.[21] The most exported commodity from Gauteng for 2009 was precious or semi-precious stones and metals, comprising 35.39% of Gauteng's total exports.[20]

Imports

Gauteng's chief imports include electrical equipment and machinery, mineral products, transporting equipment and other such industrial goods. Most of the imports come from Asia and Europe, namely from China, Japan, Saudi Arabia, Iran, India, Germany, the United Kingdom, France, Italy and Sweden.[19]

Top five imports in 2009[21]
Product
Value
(millions of Rands)		 Percentage of total
Machinery & Electrical equipment 107,882 34.14%
Mineral Products 47,084 14.9%
Other 42,849 13.56%
Transport Equipment 33,401 10.57%
Chemicals 31,189 9.87%
All other imports 53,595 16.96%
Top five source markets in 2009[19]
Country
Value
(millions of Rands)		 Percentage of total
China China 45,188 14.3%
Germany Germany 36,656 11.6%
United States United States of America 30,652 9.7%
Japan Japan 15,484 4.9%
United Kingdom United Kingdom 14,536 4.6%

Exports

Gauteng's chief exports are precious minerals, base metals and mineral products, altogether accounting for 61% of its total export share.[20] Gauteng exports its goods mostly to Asia and Europe, to countries like China, Japan, India, Germany, Switzerland and the United Kingdom. However, a significant amount of goods is also exported to the United States of America and to other African countries, such as Zimbabwe, Mozambique and Zambia.[22]

Top five exports in 2009[20]
Product
Value
(millions of Rands)		 Percentage of total
Precious or semi-precious stones and metals 119,477 35.39%
Mineral Products 81,024 23.4%
Base Metals 48,007 14.22%
Other 28,898 8.56%
Machinery & Electrical equipment 23,868 7.07%
All other exports 37,676 11.36%
Top five export markets in 2009[22]
Country
Value
(millions of Rands)		 Percentage of total
China China 37,811 11.2%
United States United States of America 25,658 7.6%
Japan Japan 24,307 7.2%
Germany Germany 18,230 5.4%
Switzerland Switzerland 15,530 4.6%

References

  1. ^ a b "Provincial gross domestic product:experimental estimates, 2013–2022" (PDF), www.statssa.gov.za
  2. ^ "A Profile of the Gauteng Province: Demographics, Poverty, Income, Inequality and Unemployment from 2000 till 2007" (PDF). Elsenburg. February 2009. Table 13 p. 41. Archived from the original (PDF) on 21 October 2012. Retrieved 14 April 2013.
  3. ^ "A Profile of the Gauteng Province: Demographics, Poverty, Income, Inequality and Unemployment from 2000 till 2007" (PDF). Elsenburg. February 2009. Table 6, p. 14. Archived from the original (PDF) on 21 October 2012. Retrieved 14 April 2013.
  4. ^ "Unemployment down in Gauteng". 2013. Archived from the original on 5 May 2013. Retrieved 14 April 2013.
  5. ^ "No To Open Road Tolling Gauteng Pays More Than Its Fair Share". Opposition to Urban Tolling Alliance. 5 March 2012. Retrieved 14 April 2013.
  6. ^ "MEC tables Gauteng budget". Eye Witness News. 5 March 2013. Retrieved 14 April 2013.
  7. ^ a b c "The Economy of Gauteng". Gauteng Online. November 2010. Archived from the original on 11 July 2013. Retrieved 14 April 2013.
  8. ^ "Gauteng province, South Africa". South Africa.info. Retrieved 15 April 2013.
  9. ^ "World Bank". World Bank. Archived from the original on 3 July 2020. Retrieved 3 July 2020.
  10. ^ "Arcelor-Mittal Vanderbijlpark". Arcelor-Mittal. Retrieved 15 April 2013.
  11. ^ "Johannesburg Securities Exchange". The City of Johannesburg. Archived from the original on 6 March 2016. Retrieved 14 April 2013.
  12. ^ "Vodacom History". African Wireless. Retrieved 14 April 2013.
  13. ^ "MTN Home". MTN Group. Archived from the original on 10 April 2013. Retrieved 14 April 2013.
  14. ^ "Microsoft ZA Home". Microsoft. Retrieved 14 April 2013.
  15. ^ "Porsche South Africa". Porsche. Retrieved 14 April 2013.
  16. ^ "University of Pretoria Reference List" (PDF). The University of Pretoria. 2005. Retrieved 14 April 2013.
  17. ^ Mabin, Alan (1989). The Angry Divide-The underdevelopment of the Western Cape, 1850–1900. Cape Town: David Philip. p. 83. ISBN 0-86486-116-8.
  18. ^ "Provincial Economic Review and Outlook 2010" (PDF). Gauteng Online. 2010. p. 17. Archived from the original (PDF) on 4 March 2016. Retrieved 15 April 2013.
  19. ^ a b c "Provincial Economic Review and Outlook 2010" (PDF). Gauteng Online. 2010. p. 19. Archived from the original (PDF) on 4 March 2016. Retrieved 15 April 2013.
  20. ^ a b c d "Provincial Economic Review and Outlook 2010" (PDF). Gauteng Online. 2010. p. 20. Archived from the original (PDF) on 4 March 2016. Retrieved 15 April 2013.
  21. ^ a b "Provincial Economic Review and Outlook 2010" (PDF). Gauteng Online. 2010. p. 18. Archived from the original (PDF) on 4 March 2016. Retrieved 15 April 2013.
  22. ^ a b "Provincial Economic Review and Outlook 2010" (PDF). Gauteng Online. 2010. p. 21. Archived from the original (PDF) on 4 March 2016. Retrieved 15 April 2013.
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