Economic Development​

​The Department of Economic Development is mandated to provide strategic economic direction to the City and help steer the City as a whole towards the goal to achieve 5% economic growth and to reduce unemployment by 2021.

The Department is also mandated to drive the implementation of the City’s approved economic development strategy which has a longer term horizon beyond the 5% growth target.

​The economic development strategy emphasises the following:

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​Tembeka Mhlekwa

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​The City of Johannesburg has amended its Environmental Health Services tariffs with effect from 1 July 2012. ​

Business licensing regional information
Information on the regional offices

​​Certain businesses need a licence to operate. Before opening any business find out what the requirements are. You may not begin trading in a business that requires a licence before the licences has been issued. Trading without a valid licence is punishable with a fine of up to R2 000. Licensing is governed by the Business Act No 71 of 1991.   

Businesses that need a licence

If you are running any of the following businesses, you will need to apply for a licence. Please see Schedule 1 of the Business Act 71 of 1991 for details.

Food provision

You need a licence to sell or supply meals, take-aways or perishable foodstuff.

Health and entertainment facilities

You need a licence for:

• Turkish baths, saunas and health baths;
  
• massage or infra-red treatments
  
• male and female escorts;
  
• three or more slot machines and electronic games;three or more snooker or billiard tables;
  
• nightclubs and discotheques, where live or loud music is played;
  
• cinemas and theatres; and
  
• adult premises.
  

General information

More information on getting a trade lice​nce in Johannesburg, including the procedure and cost involved. (Click here​). 

The City contributes 17 percent of the national economy’s Gross Value Added (GVA) and 44 percent of Gauteng’s GVA and Joburg has generally outperformed both the national and provincial economy.

However, the data indicate that the relationship between the City’s growth and national growth appears to be largely counter-cyclical, meaning the city’s economy slows while the national economy speeds up and vice versa.

This relationship could be partially explained by the greater relative importance of the agricultural, mining and manufacturing sector in the national economy, such that strong growth in these sectors would increase national GVA growth substantially while having little impact on City GVA growth.

It could be argued that the predominance of head offices and shareowners is likely to make income levels – and hence economic activity – in Joburg more dependent on cyclical shifts in corporate profitability than the economy as a whole. According to data published by the South African Reserve Bank, the net operating surpluses of incorporated businesses rose dramatically in 2001 and 2002, and then slowed in 2003 and 2004 – which tends to support the evidence shown above.

The key factor is that Joburg’s economy has almost consistently outperformed both the national and Gauteng economies, to a considerable degree. Between 1996 and 2004, the Joburg economy grew at a real annual average rate of 4,5 percent, while Gauteng’s economy expanded at a pace of 3,9 percent, and the national economy at 2,9 percent.

For the period 2000 to 2004, Joburg accelerated its real growth rate, to an average of five percent per annum.

Consumer Expenditure

The city’s higher-than-average household income combined with strong growth in that income translates into significant purchasing power.
The Index of Buying Power (IBP) weights data around population, income and retail sales to indicate the buying power attributable to an area, as a percentage of the national total.
The City’s IBP in 2004 was 0,14 indicating that 14 percent of South African demand for goods and services emanates from Joburg. The second largest consumer market in Cape Town, with an IBP of 0,11. In comparison, eThekwini commands only nine percent of demand and Nelson Mandela Metro three percent of the country’s goods and services .

Expenditure in the City grew particularly strongly between 1997 and 2001 but slowed in the last three years to 2004. The high base from which expenditure growth is coming can explain this slowdown.

Nonetheless, growth remains strong by almost any standard. Even with this drop in the pace of annual growth, the City’s consumer expenditure market remains the most important in the country due to its absolute size. The high level of purchasing power and growth in household income and expenditure shows a strong local support base for the City’s trade sector.

Sectoral analysis of growth

Unpacking sector growth assists in understanding the performance of the City’s nine major sectors in their own right and when compared to national and other urban centre trends offers a deeper picture of the drivers of the City’s growth.

For each sector four key variables have been analysed: Firstly, the sector’s average annual growth has been considered using the percentage change of gross value added. Sec​​​​ondly, each sector’s contribution to the overall City’s GVA has been examined. This describes the mix of the City economy and indicates trends regarding changes in the fundamental structure of the City’s economy.

Economic importance
The Inner City contributes over 23.1% to the City’ GGP (Former Region 8)
Largest concentration of infrastructure in SA: infrastructure replacement costs are +R30bn
Some Inner City Nodes have the Highest concentration of retail space
Industrial space is located throughout Inner City reflective of its historic mining & manufacturing economy
Integrated urban economic system
– Provides more jobs than Sandton, Woodmead/Rivonia & Randburg combined
– Important anchor for E-W corridor & N-S Corridor (location of Gautrain route)
– Location of corporate HQs plus SMEs

Economic Factors

Vision
an economically vibrant and modern, structurally transformed landscape and skyline to be achieved through synchronized and coordinated innovative interventions, strategically anchored on the UDZ tax incentive.
Leading to creation of wall-to-wall thematic precincts

Since the promulgation of the UDZ tax incentive the City of Joburg has attracted R16.0Billion in private property development half of which constitutes competed buildings and pockets of excellence; It has created more than 150,000 construction related job opportunities

Excerpts

Region F Suburbs
Suburbs in the region include: Aeroton, Aspen Hills, Bassonia, Bellevue East, Bellevue, Benrose, Berea, Bertrams, Braamfontein, City and Suburban, City and Suburban Industrial, City Deep, City West, Crown Gardens, Denver, Doornfontein, Droste Park, Elandspark, Elcedes, Fairview, Ferreirasdorp, Fordsburg, Glenanda, Glenvista, Heriotdale, Highlands, Hillbrow, Jeppestown South, Jeppestown, Johannesburg Inner City, Judith’s Paarl, Kenilworth, Kensington, Kibler Park, La Rochelle, Liefde-en-Vrede, Linmeyer, Lorentzville, Malvern, Marshalls Town, Marshalls, Meredale, Moffatview, Mondeor, Mulbarton, Nasrec, New Doornfontein, Newtown, North Doornfontein, Oakdene, Ormonde, Pageview, Randview, Regentspark, Robertsham, Rosettenville, Salisbury Claims, Selby, South Hills, Spes Bona, Suideroord, The Hill, Troyeville, Tulisapark, Turffontein, Village Main Ext 3, Vrededorp, Winchester Hills and Yeoville.

Demographic Information
The region’s population is estimated to be 433,054 (Census 2001, Stats SA). However, this figure is inaccurate because the number of people living in the inner city on a temporary basis is unknown.

There is a distinct difference in demographics between the inner city and the southern part of this region. In the past few years higher-income residents and whites have moved away from the inner city bowl and are being replaced by a lower-income population of blacks.

This is in complete contrast to the southern part of the region – Mulbarton, Glenvista, Aspen Hills, Allan Manor, Bassonia and so forth – which is 66 percent white and relatively youthful, with 38 percent being under 25 years old.

The population of Johannesburg South is young and growing, partly because of an influx of new homeowners from Soweto drawn by better housing, land value and facilities, as well as swift, convenient access to their places of employment.​​​

Key to this is a policy that involves the various directorates of arts and performance arts, culture and heritage, sports and recreation and library services.