Gauteng the heartbeat of region’s economic growth

One of the most fascinating stories of the 21st century has been the rise of cities and city states. This marked an important departure from the notion that sovereign states are the centre of economic activity.

To underscore this point, New York, for instance, has an economy bigger than Canada’s, while Osaka ranks higher than Switzerland.

This phenomenon has also found traction on our continent, with Gauteng featuring in the top 10 largest economies in Africa. At an estimated size of R1 063-billion in 2017, it contributed an estimated 35% to South Africa’s economic output.

In 2014 the ANC-led Gauteng government adopted a 10-pillar programme for the transformation, modernisation and re-industrialisation of Gauteng.

Spanning 15 years, it is aimed at gearing Gauteng to rapidly grow its economy.

In doing so, it must ensure that millions of our people are placed at the centre of driving this growth and emerge as its beneficiaries.

Between 2013 and 2016 Gauteng invested R30-billion in infrastructure, constituting an average annual growth rate of 20.7%. This is the fastest-rated increase in infrastructure spend in the country.

A study on public infrastructure investment has found that 92 000 direct jobs were added through infrastructure spend, which contributed R15-billion towards household incomes.

On average, it is estimated that for every R1 spent on infrastructure, 92 cents is retained in the Gauteng economy.

With a further R42-billion planned in infrastructure expenditure for the next three years, we have every reason to be bullish about the economic prospects of the province.

Urbanisation is an unfolding global trend and calls upon leaders to think differently about the location of new settlements.

Gauteng’s mega human settlement project and the investment in public transport infrastructure is beginning to transform the urban landscape.

Already, Gauteng is forging ahead with feasibility studies to extend the Gautrain network.

One of the most striking features of the province is its youthful profile. The highest proportion of the population are young people between 15 and 35 years.

In partnership with the private sector, the Gauteng government has made strides in facilitating the entry of township enterprises in localisation and manufacturing initiatives.

In addition to determining a mandatory set-aside of 30% to qualifying black firms and township enterprises, the Gauteng government has also leveraged its procurement budget to support township-based businesses.

Over the past three years over R41-billion – or 91% of the provincial government procurement budget – has been spent on youth, women and township-based enterprises.

Since the start of the fifth administration in 2014, 317 000 new jobs were created, which saw the province record the largest nett gain in new jobs created since the 2008 global financial crisis.

The Tshepo 1 Million partnership with the private sector remains a cutting-edge initiative, with more than 450 000 young people benefitting since 2014.

Gauteng has also created platforms for innovation through eKasi Labs, which provides support to start-ups, and partnerships with Gauteng universities to provide assistance for skills development in research and development.