Socio-Economic Development Performance 2013-2014

The SED performance during the Operating Period up from beginning April 2013 to the end of March 2014, can be summarised as follows:

  • An amount of R649.6 million was spent on procurement from, and sub-contracting to BEs, compared to an obligation of R277 million. A total of 58 BEs have benefited from the project during the Operating Period to date.
  • An amount of R458.7 million was spent on procurement from, and sub-contracting to New BEs, compared to an obligation of R254.5 million. 15 New BEs have benefited from the project during the Operating Period to date.
  • An amount of R68.5 million was spent on procurement from, and sub-contracting to SMMEs, compared to an obligation of R53.5 million. 38 SMMEs have benefited from the project during the Operating Period to date.
  • South African materials, plant and equipment were produced, to a total value of R221.5 million, compared to an obligation of R104.6 million.
  • 3 200 local direct jobs were created or sustained, and an estimated total of 11 200 direct, indirect and induced jobs during the Operating Period up the end of March 2014.
  • Bombela and its sub-contractors created, amongst other:
    • 3 200 jobs were created for local people, i.e. South African citizens, compared to an obligation of 2 300.
    • 2 970 jobs were created for HDIs, compared to an obligation of 1 630.
    • 860 jobs were created for women, compared to an obligation of 590.
    • 40 jobs were created for people with disabilities, compared to an obligation of 34.
  • From the local employment figure of 3 200 jobs:
    • jobs created for HDIs: 92.8%,
    • jobs created for HDIs in Occupational Level C: 20.7%,
    • jobs created for HDIs in Management Positions: 4.1%,
    • jobs created for Youth: 59%,
    • jobs created for Women: 26.9%,
    • jobs created for Women in Management Positions: 2.2%, and
    • jobs created for People with Disabilities: 1.3%.

It is evident from the achievements that since the commencement of the project, BEs – and similarly New BEs and SMMEs – have benefited from the project. 

  • Black persons are holding 25% shares in the Concession Company and the Operating Company.  Black Women are holding 4.48% in the Concession Company and 4.49% in the Operating Company.
  • R382.5 million has been spent on procurement from, and sub-contracting to BEs, compared to an obligation of R161.6 million.
  • R263.9 million has been spent on procurement from, and sub-contracting to New BEs, compared to an obligation of R148.2 million.
  • R38.6 million has been spent on procurement from, and sub-contracting to SMMEs, compared to an obligation of R31.3 million.

Gautrain’s SED strategy ensures the Concessionaire’s commitment to optimally utilise local resources and develop local skills.  The Concessionaire has, during the reporting period:

  • procured South African materials, plant and equipment to the value of R124.4 million, compared to an obligation of R60.9 million, and
  • Bombela and its sub-contractors have created 1 800 jobs for local people, compared to an obligation of 1 300. 
  • 1 690 jobs created for Historically Disadvantaged Individuals (HDIs), compared to an obligation of 940.
  • 500 jobs created for women, compared to an obligation of 340.
  • 20 jobs created for people with disabilities, equals the obligation of 20. 

In the 2013 / 2014 financial year, the Gautrain Project has made a significant impact on Socio-Economic development in Gauteng, and for that matter, in South Africa.