WeeklySA_AdminGROWTH: Gauteng is the economic engine of sa accounting to nearly 34 percent of the national gdp
By Monk Nkomo
Any view on the budget that sought to reject the commitment the government of national unity has to the vulnerable and marginalised, is not a budget that is for the people and must therefore be rejected unequivocally, according to Deputy President, Paul Mashatile.
In his virtual address to the Gauteng Investment Conference in Sandton, Johannesburg, which aims to promote Gauteng as a leading global investment destination, he said the government’s commitment was to redress and transform not only the economy but the lives of the people.
His address took place a day after Parliament voted in favour of the fiscal framework as presented by the Finance Committee led by Joe Maswanganyi in the National Assembly. This decision, which was rejected by the DA, EFF and MK parties, has since been escalated to the high court where the DA is challenging its legality.
Mashatile said Gauteng had long been the economic engine of South Africa and its success was intrinsically tied to the prosperity of the nation. ‘’ The province alone is the largest contributor to the country’s GDP, accounting for approximately 34 percent of the national GDP.’’
The Investment Conference, Mashatile added, should come up with concrete plans and concepts that would attract investment into the province. Most importantly, the provincial government should collaborate with the private sector to develop effective strategies and innovative solutions that would generate employment opportunities and further expand industries to advance in Gauteng.
‘’ Therefore, investing in Gauteng is not just about financial returns, it is about investing in the future of our people, our communities and our nation. It is about creating sustainable partnerships that drive economic development and social progress.’’
Mashatile also called on the Gauteng province to invest in education and skills development programmes to ensure that the workforce was equipped to meet the demands of a growing economy. The highly sought-after skills included digital literacy, data analysis, artificial intelligence, cybersecurity and renewable energy technologies.
He was however concerned about the scourge of crime in the province which significantly impacted investment, both directly through increased costs and indirectly by deterring businesses and investors and ultimately hindering economic growth and development. ‘’It is for this reason that we must work hard to eliminate crime, including extortion by those who want to exploit the State and its people for their own selfish gains. Gauteng and Western Cape are the locations highlighting the scale of this problem.’’
The Deputy President said Gauteng was and had always been a province with immense potential, a place of rich cultural heritage, vibrant communities and a thriving economy. It has many established industries, including automotive, finance, manufacturing, mineral beneficiation, agro-processing, and tourism.
The story of Gauteng’s economic transformation was one of resilience, innovation and strategic investment. From its humble beginnings as a mining hub in the late 19th century, Gauteng was today the industrial and technological hub of South Africa.
The province hosted the headquarters of major corporations and multinationals, making it a gateway for investment, not only in South Africa, but also across the continent of Africa. With this rich past and a strong base, efforts must be made to think about how to grow the economy and make this province more resilient for decades to come.
‘’We need to emphasise that we are committed to building a future for Gauteng that is marked by sustained and impactful economic growth, this notwithstanding some of the challenges that we face as a country and globally’’.
Another great intervention in this province was the Integrated Transport Master Plan for Gauteng, which is a 25-year plan developed in 2013 to address transport challenges and ensure sustainable mobility in the province, focusing on integrating various transport modes and promoting public transport.
The Gautrain, a world-class rapid transit system, was a shining example of forward-thinking infrastructure investment. It is a rapid, efficient and reliable public transport system that enhanced the economic functioning of the Gauteng area and improved the quality of life for its users.
He also commended the plans to expand Gautrain into Limpopo, featuring a 420km high-speed rail line connecting Pretoria to Polokwane, aiming to enhance transport and economic growth. Since it would be able to reach the majority of people, the plan would increase its financial viability.
The reason he was highlighting so much of Gauteng’s activities and plans was because of his conviction that if you failed to plan, you were actually planning to fail. Consequently, such failure caused the government to fall short of their ability to achieve its commitment to providing fundamental services required to improve the lives of the people in a positive way.
‘’Therefore, at this investment conference, we need to come up with concrete plans and concepts that will attract investment into the province. Most importantly, the provincial government should collaborate with the private sector to develop effective strategies and innovative solutions that generate employment opportunities and further expanding of industries to advance Gauteng.’’
The province must be reinforced as the epicentre of innovative ideas that can be implemented throughout the country. Their plans and commitments at this conference should concentrate on unlocking Gauteng’s economic potential, which would directly contribute to the growth of the national economy.
‘’We need to understand that Gauteng has long been the economic engine of South Africa, and its success is intrinsically tied to the prosperity of our nation. As I have said earlier, the province alone is the largest contributor to the country’s GDP, accounting for approximately 34 percent of the national GDP’’.
Mashatile noted that Gauteng was well-positioned to overcome its current infrastructure deficits and create a future-ready urban landscape to meet the needs of its growing population. It was also crucial for the province to integrate its departmental coordination and avoid working in silos when addressing its infrastructure requirements.
Gauteng’s regional integration was therefore crucial in this regard, as it focused on creating a cohesive, sustainable and economically inclusive Gauteng-City Region, emphasising collaboration between government, business and civil society to address challenges and unlock the region’s potential.
‘’We must work together to create sufficiently agile and well-functioning infrastructure that supports industrial growth, promotes innovation and attracts domestic and foreign investors. We strongly encourage investors to capitalise on Gauteng’s strategic location, which offers a competitive edge in the Southern African region for trade and investment. It is the gateway to the rest of South Africa and the African continent. Let us reaffirm our commitment to building a future where innovation thrives and where entrepreneurship flourishes’’.
