Township trade rising
Gauteng vouches for its R10-billion kasi spending
Government procurement spending on Gauteng’s township businesses now tops R10-billion, says premier David Makhura.
Delivering his political report at the provincial legislature yesterday, Makhura said the number of township enterprises benefiting from public procurement had increased from 642 in 2014 to 4182 in October this year.
The procurement spending includes government departments and municipalities.
Singling out the Tshepo 1-million initiative, a private-public partnership which aims to help the youth with entrepreneurial skills and to improve their chances of getting hired, he said the township economy was “much friendlier to youth start-up enterprises.
He said the initiative had already reached 437 000 young people since its inception in December 2014, and aimed at reaching a million youths by 2019.
But Makhura said the economy needed to create 2700 jobs per day to half unemployment and to double that if it is to eliminate it completely.
Unemployment, in the province was growing even though figures for the last quarter showed the economy had grown by 2.2% in the last quarter.
Later, the premier told journalists that he was “deeply worried” that many municipalities had underspent 40% of the infrastructure budget.
The province’s overall infrastructure budget – including roads, hospitals and clinics – is R46-billion, and departments often underspend it.
Makhura is scheduled to meet municipal mayors today, where he is expected to raise the matter.
A unit has been set up to deal with monitoring infrastructure spending, and former National Treasury economist Michael Sachs is involved with it. “This is hugely negative on the economy. In a period like this, infrastructure spending helps to keep the economy going in many ways.
“But also keeps the infrastructure in our communities in good shape,” Makhura said.
“So it lifts the mood of citizens in a period where the mood is very low, either because of downgrades or other governance shenanigans. “When there is no spending on infrastructure, you are killing the future economy. You are also subtracting jobs,”