
South Africa does not have any IT zones comparable to Silicon Valley, but what it does
have is a concentration of IT firms in its urban areas. Approximately 90% of South
Africa's population is found in areas surrounding the cities of Johannesburg, Cape Town,
Durban, Pretoria and Port Elizabeth, which represent the country's major areas of economic
activity and the major consumer markets. What follows is a listing of these urban areas.
Gauteng:
Gauteng hosts numerous higher education and other research institutions as well as
numerous small and large technology-driven private sector establishments, quite apart from
government departments. Previously known as "PWV" - The
"Pretoria-Witwatersrand-Vereeniging" area of the Southern Transvaal stretches
from Pretoria, the country's administrative capital, in the North, to Vereeniging in the
South, with Johannesburg and the Witwatersrand (the industrial and mining belt) straddling
the center. Although this area accounts for only 2% of the country's land mass, it
is the powerhouse of the South African economy, generating 43% of the GDP. While
Gauteng remains a center for raw materials, it is also the site of 48% of South Africa's
manufacturing. Gauteng has the highest population growth rate in the country, which,
along with numerous migrants, gives it the country's largest and most dense population of
8.7 million.1
Johannesburg:
Johannesburg, the commercial and financial hub of South Africa, is located in the center
of Gauteng. Industry in the Johannesburg area emphasizes steel, petrochemicals, and
manufacturing. As the country's transportation hub, it is the center for all rail
and road connections and has the country's major international airport. Johannesburg
is 456 miles from Durban and 954 miles from Cape Town.2
Durban:
The Durban metropolis is the second largest urban area in South Africa with a population
of over 3 million, and is the home of Africa's busiest and most modern port. The
climate is pleasant year round, making it a popular tourist center as well. The triangle
of Durban-Pietermaritzburg-Pinetown is the manufacturing core of Natal, and the region
contributes roughly 15% of national manufacturing statistics. Natal's major
industries are petrochemicals, textiles and clothing, rubber and plastics, sugar, food
processing, paper and printing and metal fabrication. Emerging sectors include
professional and scientific equipment, nonferrous metals, and wood. Many
export-oriented industries are located in the Durban area. Lying to the North along
the Indian Ocean coast from Durban is the port of Richards Bay, constructed to handle bulk
cargos, particularly coal exports.3
Cape Town:
Greater Cape Town is the country's third largest urban area, with a population of 2.5
million people, and the site of parliament. Over the years, the importance of
manufacturing and construction has declined as the region's comparative advantages have
moved towards agriculture, transport, and commerce. The Western Cape has excellent
road, rail and air links, and Cape Town itself has a well-equipped, modern harbor.
Cape Town's location along the coast, as well as the region's rich farmland, has led to
growth in the food processing industry. Cape Town is the country's insurance capital
and the home base for most multinational oil companies. Other strong industries
include textiles, clothing, footwear, wood and furniture products, chemicals, plastics,
machinery, and technology-based industries. Also located in the Cape region,
northwest of Cape Town, is Saldanha Bay, specifically developed to handle iron ore
exports, but which also has potential to handle commercial shipping.4
Port Elizabeth:
The immediate Port Elizabeth area has a population of 984,000. It is South Africa's
fifth largest city and third largest port. It has a large concentration of motor
vehicle assembly operations and is the home of the footwear industry. The motor
vehicle industry provides the main source of employment for area residents. The
Eastern Cape is a significant fruit and vegetable producer and is the location of the wool
and mohair industries. Two other important cities in South Africa are Bloemfontein
and East London. Bloemfontein is the capital of the Free State and the Republic's
judicial capital. East London is a port on the Indian Ocean that primarily handles
fruit and grain exports.5
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Author: Felix R. Klimpacher
Last Update: May 11, 1998
This Page's URL is: http://gurukul.ucc.american.edu/initeb/fklimpa/southafrica/geopage.html