Gauteng Information

Gauteng

Find out more about the region called

“The City of Gold”

Foreign languages used to service international business

 

The province has capability to source foreign language speakers for any BPO company that would like to establish in Gauteng:

English – Gauteng has the largest population in the country and highest skilled English speaking labour pool 

German – available, able to recruit 50 on short notice

French – available, able to recruit 50 on short notice

Dutch – available able to recruit 50 on short notice

Italian – available able to recruit 50 on short notice

The addition of foreign language speakers for specialist language support (German, Swiss German, Flemish, Greek, Swedish, Danish, Italian, Dutch, Spanish, Mandarin and French) and technical or sales support to the critical skills list by the Department of Home Affairs is likely to ease the challenges of securing employees for these foreign languages. This change means that call centres which use any of the languages can secure them abroad and apply for work visas for them. This came into effect in October 2014.

Top major cities recommended for potential call center activity

City of Tshwane

The City of Tshwane Metropolitan Municipality is the metropolitan municipality that forms the local government of northern Gauteng Province, South Africa.

Johannesburg

Johannesburg, South Africa's biggest city and capital of Gauteng province, began as a 19th-century gold-mining settlement. Its sprawling Soweto township was once home to Nelson Mandela and Desmond Tutu. Mandela’s former residence is now the Mandela House museum. Other Soweto museums that recount the struggle to end segregation include the somber Apartheid Museum and Constitution Hill, a former prison complex.

City of Ekurhuleni

The City of Ekurhuleni Metropolitan Municipality is a metropolitan municipality that forms the local government of the East Rand region of Gauteng, South Africa. The name Ekurhuleni means place of peace in XiTsonga.

Gauteng Population
GDP per Capita
Unemployed Population

Macroeconomic trends & economic dependencies within the next 5 years

National

CPI 2017= 6.6% Y-on-Y

Repo rate= 7%

Exchange rate, ZAR/USD= R13.01/1 USD

GDPR, 3rd Quarter 2016 (Month ending September) = 0.2%

Unemployment rate Q4 2016 (Month ending December 2016) =26.5%

 

PPI 5.9% in January 2017

Manufacturing business confidence was at 30 index points in 2016 Q4

SA Manufacturing PMI increased from 50.90 in January 2017 to 52.50 in February 2017

Geo-Political Risks

Despite having strong political institutions, South Africa is struggling from recurrent strikes, which have become the major means of wage setting, and which weaken the outlook for business and raise financing costs.

SA involvement in BRICS – ANC strong ties with Russia – looks like SA will give expansion of nuclear programme to Russia. President Zuma personally negotiated a September framework agreement with Russia “Nuclear projects are very large and can impact international relationships between the associated countries.”

The geopolitical risk of increasing corruption has both the highest likelihood and consequence rating for the entire risk profile. South Africa has steadily been performing worse in Transparency International’s Corruption Perceptions Index (CPI), which ranks countries/territories based on how corrupt a country’s public sector is perceived to be. The country is ranked 72nd out of 177 countries surveyed, with a score of 42 out of 100 in the index; this could prove damaging to its reputation. (Transport, Police, Home Affairs etc).

Unemployment rate is around 27%, which translates into approximately 5,2 million unemployed persons.

Over 70% of South African businesses are significantly unprepared for cyber liability risks and are thus considerably underinsured when it comes to managing the financial and legal implications that follow a major cyber breach. South Africa is becoming increasingly exposed to technological risks, especially the escalation in large-scale cyber-attacks coupled with a breakdown of critical information infrastructure and networks.

Apart from the credit rating downgrade of the four largest South African banks, there are also rising concerns about other lenders.

Incidence of data fraud/ theft – leaking of information.

South Africa's Exchange Rates

Rand - Dollar
Rand - Pound
Rand - Euro
Rand - Yen

labor law compliance considerations

Overtime

Overtime may only be worked by agreement between employer and employee. As per section 9 of the basic conditions of employment Act, the maximum normal working time for an employee is 45 hours per week. This would mean a maximum of nine hours in any day if the employee works for five days or fewer in a week and eight hours in any day if the employee works on more than five days in a week. The employee has the legal right and entitlement to demand payment for overtime worked at the rate of 1,5 times his normal wage rate, or at whatever rate is applicable (not less favourable than the minimum set in the Act). The employee can also enter into an agreement with the employer whereby he can be given time off work instead of payment for overtime worked

 

Final pay

The following may be included as pay on the final pay slip:

  • Salary
  • Pro-rata leave pay
  • Notice pay (unless notice worked/resigned/summary dismissal)
  • Pro-rata bonus (unless discretionary)
  • Severance pay (at least 1 week per completed year of service).

 

Notice of Termination

Notice must be given in writing, except when it is given by an illiterate worker. Based on Legislation in Section 37, of the Basic Conditions of Employment Act

 

Notice Period

Worker employed for

Notice Period

6 months or less

1 week

More than 6 months, but less than 1 year

2 weeks

1 year or more

4 weeks *

 

* A collective agreement may reduce the 4-week notice period to not less than 2 weeks

current unemployment rates, historical trends and expected steady state rates

Currently, the unemployment rate in Q4 2016 (Month ending December 2016) is 26.5%. The unemployment has been around 25-27% over the last twenty years despite several economic policies designed to address the situation.

call center employee unions

Call centre employees are not currently unionised. We do not foresee this happening in the next 5 years due to various employee wellness programmes introduced by call centres but it remains a possibility in the long term.

Attrition Rate (%)
Absenteeism Rate (%)
Average Commute Time (Minutes)

public transit system

Very robust. All the cities are linked with Gautrain high speed train, metro train, city buses and private taxis, Uber, and the rapid bus transport system (BRT).

colleges and universities, annual graduation rates and volumes by degree type

  • Wits University
  • Tshwane University of Technology
  • University of Johannesburg