FX Excursions

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Johannesburg: The Gold Standard

Apr 1, 2006
2006 / April 2006

In the first half of the 20th century, there were rumors of a lost city in southern Africa. Expeditions searched the Kalahari Desert for it. In a satirical short story, the great South African writer Herman Charles Bosman featured one such quest, and wryly concluded, “The expedition doesn’t need to leave Johannesburg, if it’s a lost city it wants.”

People have been writing off Johannesburg (also known as Jo’burg, Jozi or eGoli — Zulu for “Place of Gold”) almost since the day it was founded in 1886. Situated on the South African highveld, a plateau more than a mile above sea level, the city owes its existence to the discovery of gold by an English prospector, George Harrison. He was one of the first people to misjudge Johannesburg’s potential. After selling his claim for a relative pittance, he died in obscurity.

Little did he know that he had uncovered the world’s biggest gold deposit, the Witwatersrand Reef, 60 miles long and 2 miles thick in places. It has produced more than 40 percent of all the gold ever mined on earth, and continues to underpin South Africa’s economy.

Ever since its beginnings as a gold rush tent settlement, Johannesburg has lured fortune seekers. In the early days they came from throughout South Africa and Europe; now they arrive from all corners of Africa. The city has grown to become Africa’s economic powerhouse. The province of Gauteng (pronounced how-teng), which incorporates Johannesburg and South Africa’s capital, Tshwane (formerly Pretoria), accounts for an astonishing 20 percent of the continent’s gross domestic product.

But Johannesburg’s dynamic economy has always had a seedy flip side. In 1896, when the population was just 50,000, there were no fewer than 96 brothels, and the settlement was notorious for crime and debauchery. For God-fearing Boer farmers, Johannesburg was already lost.

As the gold mines boomed, tens of thousands of black workers were imported to provide manual labor, and the racial divisions were formalized by town planning. The black workers were accommodated in sprawling, segregated townships, the largest of which was Soweto (short for South West Townships), while the white population prospered in luxuriant suburbs.

The fractures of the apartheid era still run through the city. One consequence was an explosion in crime during the 1990s, which helped turn the once-flourishing Central Business District (CBD) into a virtual no-go area. When I stayed there in 1992, it was beginning to resemble a war zone. Paramedics were on permanent duty in the lobby of my five-star hotel, attending to people who had been violently mugged on the streets outside.

The CBD appeared to be facing terminal decline. Businesses abandoned it in droves, relocating to the northern suburbs, especially Sandton. Office blocks and hotels (including the plush Johannesburg Sun and Towers, where I had stayed) were boarded up. The streets became clogged with informal markets. Organized crime was rampant.

Then, in 1997, Thabo Mbeki (who was deputy president to Nelson Mandela at the time) articulated a vision to transform Johannesburg into the “Golden Heartbeat of Africa.” The Johannesburg Development Agency was formed to oversee the city’s rehabilitation, implementing a host of ambitious projects.

In three visits over the past five years, I have witnessed Johannesburg’s steady resurgence. Each time I return, new projects have been initiated and others have been completed. Optimism has returned. Property prices in the CBD are now rising (further stimulated by tax breaks for companies investing in the area), and a state-of-the-art closed-circuit TV system has brought crime down to the levels experienced in most big international cities.

One of the most vibrant areas of the city is Newtown, immediately west of the CBD, which has flourished as the country’s cultural hot spot. It is home to the world-renowned Market Theatre, as well as a host of new museums and craft centers. Access to the area has been improved by several major infrastructure projects, including the landmark $6 million Nelson Mandela Bridge, which arches across 42 active railway lines to link Newtown with the university district of Braamfontein.

Aside from a legacy of social and political problems, which is gradually being addressed, Johannesburg is also burdened by its geography — it lies more than 350 miles from the sea. Meeting the logistical needs of this landlocked city of more than 5 million people is a considerable challenge. To that end, the City Deep Transport Hub, immediately south of the CBD, has become the fifth largest inland container port in the world. Improvements to City Deep’s rail and road links with South Africa’s major seaports, especially Durban, should stimulate further growth of the facility.

In addition, Johannesburg’s horrendous traffic congestion is being addressed in several ways, the most controversial being a multibillion-dollar rail system, Gautrain (www.gautrain.co.za), that will link central Johannesburg with Tshwane and Johannesburg International Airport (JIA). The project is scheduled for completion in time for the 2010 Soccer World Cup, which South Africa will host, making that year a milestone for the city as it provides the impetus for massive investment, both public and private.

I have known Johannesburg for almost my entire life, and throughout that time it has undergone a series of radical metamorphoses. Time and again I have taken stock of the place from the viewing deck of the 50-floor Carlton Centre, Africa’s tallest building. Some aspects of the view never change. The city is still ringed by 200 golden-tinged, flat-topped hills — the dumps from the gold mines. Even when Johannesburg was at its lowest ebb, its underlying wealth was plain for all to see.

Now the city is in the midst of a rebirth, and is living up to its reputation as the New York of Africa. Infused with new optimism, it looks to the future with vigor and confidence. No longer in imminent danger of being lost, Johannesburg has found its place in the world.


LODGING

THE GRACE IN ROSEBANK

Regularly voted one of the best hotels in Africa, the elegant Grace is located in the upscale, leafy suburb of Rosebank. The complimentary neck-and-back massage offered on arrival is just one of the many nice touches that put this 75-room property a class above its bigger, brand-name rivals, making it a popular choice for visiting celebrities and dignitaries. The international airport is a 25-minute drive away, and the business center of Sandton is just eight minutes away — a complimentary chauffeur-driven vehicle is available for transfers within a 10-mile radius of the hotel (subject to availability). For your shopping needs, the plush Rosebank Mall is connected to the hotel by a walkway. All in all, this is the ideal Johannesburg address. $$$$
THE GRACE IN ROSEBANK
54 Bath Ave.
Rosebank
tel 27 11 280 7200, fax 27 11 280 7474
www.thegrace.co.za

MELROSE ARCH HOTEL

Combining international chic with a uniquely African flavor, the Melrose Arch Hotel is one of the country’s hippest properties. The 118 rooms are imaginatively designed (the bathrooms are separated from the bedrooms by curtains, which can be opened to maximize the sense of space) and are each equipped with a flat-screen surround-sound TV and DVD player. A small selection of DVDs is provided in each room; additional titles can be rented from reception. A sense of fun permeates the hotel. The Library Bar has the ambience of a traditional London club, while the tables and chairs of the Pool Bar are actually in the pool. The hotel is situated within the exclusive Melrose Arch development, not far from Rosebank Mall, with easy access to the M1 highway. $$$$
MELROSE ARCH HOTEL
1 Melrose Square
Melrose Arch
tel 27 11 214 6666, fax 27 11 214 6600
www.africanpridehotels.com

INTERCONTINENTAL PALAZZO
JOHANNES, MONTECASINO

It’s all a matter of taste. This hotel is big and luxurious, and offers all the amenities you’re likely to need…but where in the world is it? The sense of disorientation is deliberate. You may be in Africa, but the Montecasino complex — which also includes a conference center, a shopping mall and a casino — is a meticulous replica of a 300-year-old Tuscan village. I can’t decide if I love it or hate it — probably both. My visit was sandwiched between two safaris, which further highlighted the incongruity of the place. The nearby suburb Sandton is often compared to Los Angeles, while Montecasino is straight out of Las Vegas. $$$$
INTERCONTINENTAL PALAZZO
JOHANNES, MONTECASINO
Montecasino Boulevard
Fourways
tel 27 11 510 3000, fax 27 11 510 4001
www.ichotelsgroup.com

ZULU NYALA COUNTRY MANOR

This 30-room thatched lodge in Chartwell, north of Johannesburg, provides safari-style ambience within convenient reach of the city (the center of Sandton is just 20 minutes away). Set within 13 acres of rolling gardens, which are home to gazelles and zebras, facilities include two tennis courts and two swimming pools. Wireless Internet access is available from the main lounge. The manor is a popular venue for conferences, with three meeting rooms accommodating up to 60 people. Breakfast is included; other meals are available by arrangement. $$
ZULU NYALA COUNTRY MANOR
270 E. Third Road
Chartwell, Fourways
tel 27 11 7081969, fax 27 11 708 2220
www.zulunyala.com


DINING

If meat is your thing, South Africa is paradise. Wherever you go in the country, you’ll never be far from a braai — Afrikaans for barbecue. At sporting events and rural picnic spots, the scent of sizzling meat is seemingly omnipresent. No braai is complete without boerewors, a delicious spicy sausage. One of the most popular between-meals snacks is biltong, strips of dried meat similar to jerky. In the townships, the staple food is pap, which looks similar to mashed potatoes but is made from maize — it’s pretty tasteless, and is generally eaten with meat or vegetable sauces.

Johannesburg has hundreds of excellent restaurants. The cost of eating out is very reasonable by international standards, and no meal is complete without a good South African wine. (One minor note of irritation is the fact that the person who serves you, male or female, is often referred to by the politically correct term “waitron.”)

YUM

Yum is possibly the best restaurant in Johannesburg, if not the entire country, and consequently it is essential to book well in advance. Plaudits have been showered on this family-run establishment, including “Chef of the Year” for owner Dario d’Angeli. The menu is imaginative, offering a small but eclectic range of fusion dishes, including specialties such as marinated steak topped with lemon sorbet, and rabbit with foie gras. Individually selected wines are suggested for each dish, though you may prefer to make your own choice from the superb wine list. The restaurant is located in Greenside, close to the popular suburb of Rosebank. $$$$
YUM
26 Gleneagles Road
Greenside
tel 27 11 486 1645
www.yum.co.za

MOYO AT MELROSE ARCH

It’s not especially intimate or quiet, but the 500-seat Moyo at Melrose Arch (one of three Moyo restaurants in Johannesburg — the others are at the downtown Market Theatre and at Zoo Lake) is a thoroughly African experience, drawing inspiration from across the continent. The extensive à la carte menu offers main courses served with pap, couscous, chips or mashed potatoes. Springbok shank with apricot and bitter almond chutney is an example of the inventive blend of influences here. The food is only part of the story: Every evening there is live African music, storytelling and dancing, and three times a week a henna tattoo artist is in residence. $$
MOYO AT MELROSE ARCH
5 Melrose Square
Melrose Arch
tel 27 11 684 1477, fax 27 11 684 1218
www.moyo.co.za

THE CARNIVORE

Vegetarians, stay well clear of this place. Although there is a vegetarian menu, the environment is unashamedly carnivorous — and will cause offense to anyone who objects to eating most of the cast of The Lion King. The standard menu boasts 15 varieties of meat, including at least five kinds of game (ostrich, buffalo, giraffe, zebra, crocodile, warthog and impala are among the species you can often tuck into here), which are brought to your table and carved directly onto your plate. Portions are very generous, and you’re encouraged to eat as much as you can. There is a flag on your table for you to lower when you “surrender.” $$
THE CARNIVORE
Misty Hills Country Hotel
9 Drift Blvd.
Muldersdrift
tel 27 11 950 6061, fax 27 11 957 3132
www.rali.co.za/idx_carnivore.htm


DIVERSIONS

The retail sector provides one of the starkest illustrations of Johannesburg’s duality, as it continues to be both a first-world and a third-world city. There are still numerous “informal markets,” selling everything from muti (witchcraft) medicine to random stolen goods, while at the other end of the spectrum you will find more than 20 huge shopping malls. One of the biggest is Sandton City (www.sandton-city.co.za), with hundreds of shops, including curio stores selling high-quality African art and souvenirs. On weekends, there are flea markets throughout the city. My personal favorite is the one outside the Market Theatre (www.markettheatre.co.za) every Saturday – check what’s on at the theater and you can combine your shopping with a show.

Since the end of apartheid, pulsating Soweto has become one of Johannesburg’s most popular tourist attractions. Parts of the township are dangerous, so first-timers should visit only with an organized tour. One of the best Soweto tour operators is Jimmy’s Face to Face Tours (www.face2face.co.za). Johannesburg is the ideal staging ground for a short safari, with direct flights available to many of the luxury private reserves bordering Kruger National Park. My recommendation is Mala Mala (www.malamala.com).


Checking In with Neil Fraser
Partner in Urban Inc., a Johannesburg-based consultancy

Global Traveler: What were the root causes of the decline of Johannesburg CBD?
Neil Fraser: The decline actually started way back in the 1950s with the decision of the then City Council to relocate from the CBD to Braamfontein. Although the decision took nearly 20 years to become reality, the announcement sparked the move of a number of major corporations to Braamfontein. This growth was at the expense of the then CBD. By the ‘70s, the “classic” reasons for decentralization had taken hold: high car ownership among the white population, traffic congestion, lack of parking, high land values and rentals, and the demand for suburban lifestyles with residences close to business. From the 1980s, the degeneration worsened dramatically as the CBD experienced physical decline manifested in vacant buildings, increased crime and grime and further continuous corporate exodus, compounded by the pull of decentralized malls and a change to the economic basis of the city, with the strong emergence of the informal sector.

GT: In the 1990s, how close did central Johannesburg come to irreversible decline?
NF: The ‘90s were characterized by political paralysis. Had there been no action during the period of 2000 to 2005, the inner city might well have moved into irreversible decline. But the major property-holding corporations, in an effort to protect their declining asset base, established the Central Johannesburg Partnership, which negotiated the visioning process, leading to implementation that started to have effect from about 2001.

GT: How does the state of the city today compare to 10 years ago?
NF: There was almost no investment in the inner city between 1990 and 2000. This has dramatically changed, with major new investment first coming from the public sector, but closely followed by the private sector as it regained confidence and recognized the opportunities presented. At this point in time I see a city very much in transition – major parts of it have been upgraded, and crime and grime is distinctly down, particularly in Business Improvement (BID) areas. There are still no-go areas, but that applies to most big cities that I know. Ten years ago one could purchase property for a song. Today owners recognize that the potential has returned. There is a lot to do, but I truly believe that the next five years will show a further, quite dramatic improvement.

GT: How significant is the 2010 World Cup for the development of the city?
NF: Extremely significant! The year 2010 provides a fresh focus and target that have increased the urgency for upgrading, as well as the provision of new infrastructure and services.

GT: What opportunities does Johannesburg offer American investors?
NF: I personally believe that there is a huge upside in investment opportunities, particularly related to residential accommodation, but also in the other facilities that increased residential accommodation requires – retail and entertainment in particular.


Just the Facts

Time Zone: GMT +2
Phone Code: 27 (South Africa), 11 (Johannesburg)
Entry/Exit Requirements: U.S. citizens require a valid passport to enter South Africa. A three-month temporary residence permit is granted on arrival. For further information, contact the South African Embassy in Washington (tel 202 232 4400, www.saembassy.org).
Currency: Rand, divided into 100 cents
Official Language: There are 11 official languages, reflecting South Africa’s ethnic diversity. English is widely spoken.
Key Industries: Mining, finance, construction, import and export


INFO TO GO

Johannesburg International Airport (JIA) is 12 miles east of the city. Many hotels provide courtesy buses. A taxi will usually cost around $35.

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