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Business in Sedibeng

Structure of the Economy in Sedibeng
The size of the economy of Sedibeng DM is measured by the gross value added (GVA), which is the total value of all final goods produced and services rendered within a geographic area, within a particular year. The nominal GVA (i.e. GVA at current prices) of the district was R9, 466,859 in 1996, R11, 095,197 in 2001, with the figure increasing substantially in 2007 to R22, 799,015. In real terms (constant prices), the total value of the GVA for the DM was R12,156,699 in 1996, decreasing to R10,445,616 in 2001 and recuperating to R13,966,293 in 2007.

The metals, energy and construction sectors have been identified as the main manufacturing sub-sectors in the Sedibeng District. Sedibeng offers a comparative cost advantage in the provision of non-metallic mineral products, metal products, machinery, household appliances, electrical machinery and apparatus that comprise a total of 32% of the total exports of Sedibeng. This means that the region is doing better than South Africa as a whole in producing these products (Source: Global Insight, 2004). This contributes to the strong industrial development in the Sedibeng.

Percentage contribution of economic sectors to the total GVA of Sedibeng DM by kind of economic activity (Composition)
The percentage contribution of economic sectors to the total GVA is used to measure how much each sector has contributed to the economy’s GVA. The lowest contributing sector to the district’s GVA was the mining sector, indicating that mining is not active in the district municipality. The table below illustrates the contribution of the three (3) sectors to the total district economy.

Primary Sector
The primary sector of the economy consists of the agricultural as well as the mining sectors. Mining contributes 0.8% while agriculture contributes 1.4 % to the Sedibeng GVA and together contributing 2.2% which is a decline of 0.3% compared to the 2003 figures of 2.5%. (Source: DBSA, 2008)

Secondary Sector
The secondary sector of the economy consists of manufacturing, electricity and construction. The manufacturing sector is the largest contributor to the economy of Sedibeng. In 1996, 2001 and 2007 the three sectors contributed 51, 6%, 43,6% and 44,3% respectively and together they contribute 48.6% of a total Sedibeng economy representing an increase of 2.6%. (Source: DBSA, 2008).

Tertiary Sector
The tertiary sector is basically the services sector as well as the government and contributes 49.7 % to the Sedibeng GVA. Community (or government) services sector was the second largest contributor to the economy of Sedibeng as it contributed 17,2% in 1996, 22,5% in 2001 and 19,4% in 2007. This sector has been declining with 1.3%. (Source: DBSA, 2007)

Percentage Contribution of Local Municipalities to the TotalGVA of Sedibeng DM by Economic Activity (% of SDM)
The percentage contribution of Local Municipalities to the total GVA of Sedibeng by economic activity shows in percentages, the value that each Local Municipality has contributed to the Sedibeng District’s economy during 1996, 2001 and 2007. Emfuleni LM made the largest contribution (82, 7% in 1996, 80, 2% in 2001 and 79, 1% in 2007) to the total GVA of Sedibeng District. The Midvaal LM was the second largest contributor to the total GVA, contributing 11, 3% in 1996, 12, 6% in 2001 and 13, 5% in 2007. The Lesedi LM made the least contribution to Sedibeng’s total GVA.

Location Quotients
The Location Quotient is a measure that provides insight into understanding a region’s sector strengths and developmentprospects. It helps in identifying exporting sectors (sectors that do not only meet local demand for its products, but also produce enough to sell outside of the region) and importing sectors (sectors where local production levels are insufficient to meet local demand within a province), i.e. the comparative advantage. A region with a location quotient greater than 1.0 indicates a self sufficient economy which may be exporting goods and services of that particular sector. On the other hand, a location quotient of less than 1.0 suggests that the economy tends to import goods and services in that particular sector. If the location quotient is >1, this implies that there is a comparative advantage in that particular sector and visa-versa. Over the three years under analysis, the SDM had a comparative advantage in one primary sector, namely agriculture; as well as two in the secondary sector, namely the manufacturing and electricity sectors. The SDM had a comparative disadvantage in the tertiary (services) sector. This suggests that the SDM tended to import goods and services in the tertiary sector of the economy.

Tourism Products
About two hundred and two (202) tourism related sites and products were identified in the Sedibeng District. In general the area contains a diverse range of tourism attractions and sites, providing for adventure, heritage, art, nature, sport, business and educational tourism. The bulk of tourism related sites consist of accommodation (34%), with the next largest being heritage & art sites and leisure & entertainment sites making up 26% and 22% respectively. The bulk of sites (50%) are located within the Vanderbijlpark/Vereeniging areas. The second concentration of sites is located in Heidelberg and the surrounding areas. Generally the area is well supplied with accommodation which appears to be well distributed and includes a range of quality and affordable levels, from luxury hotel and resort accommodation to self catering, B&B, caravanning and camping accommodation. There are 74 tourism sites (excluding accommodation and amenities) identified of which only 14% to 19% could be defined as full tourism products. The majority of those identified could not be defined as ready tourism products in terms of the definition of a tourism product as they lack support facilities. Access to the various sites was generally adequate; however, there is a need for better signage throughout the area.

Our region of Sedibeng is moderately populated and the below mentioned statistics and comparative analysis of this district provide a base on which development within the municipality’s area of jurisdiction can be made. The 2007-2011 IDP estimates that the total population in Sedibeng District is at 843 006 as per NSDP (2006). According to DBSA (2007) projections which are based on the Statistics SA Census 2001 population figures, the total population for Sedibeng District Municipality is 908 107 people. According to Statistic SA Community Survey 2006, with its limitations, the total population of Sedibeng 800 819.

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Tel: 016 450 3000
Fax: 016 455 2573

Postal Address:
PO Box 471
Vereeniging 1930

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  Executive Mayor Cllr. Mahole Simon Mofokeng

Accommodation in Sedibeng
Local Municipalities
  Emfuleni Local Municipality EMFULENI
Local Municipality
016 950 5000
  Lesedi Local Municipality LESEDI
Local Municipality
016 340 4300
  Midvaal Local Municipality MIDVAAL
Local Municipality
016 360 7400

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