Metros must become more dynamic – Jonas
The Eastern Cape’s two metros – Nelson Mandela Bay and Buffalo City – are insufficiently dynamic and are not acting as growth engines.
This was one of the concerns highlighted by former deputy finance minister Mcebisi Jonas, who gave the keynote address at the provincial investment conference in East London on Tuesday.
Jonas said the province would need to more than double its current investment initiatives to assist the national investment target, which stands at R1.2-trillion in fresh fixed investment over the next five years.
Addressing more than 200 delegates from private corporations and government officials, Jonas said the Eastern Cape relied too heavily on public investment.
“We need vibrant cities and a better way of life to attract investors. If you are a city with a port, those ports need to be dynamic,” he said.
“Investors are looking for predictability and consistency and SA has been negatively affected by policy inconsistencies and widespread corruption.
“Provincial governments are urged to find investable projects to assist in reducing unemployment.”
Jonas said the two metros were struggling to move forward in terms of industrialisation and attracting new players into the industrial space for job creation.
“Manufacturing and other service business activities are going to be what drives economies moving forward.
“Urbanisation is happening . . . exceptionally fast, and it is a struggle to keep up. We are saying to the leadership of cities, we need to get the basics right. They must deliver on water, electricity and refuse removal.
“When investors come, they want to see good schools, nice restaurants, clean beaches and a better way of life.
“So we need to figure out how we can make our cities look better,” Jonas said.
“When you choose your mayors, think very hard.
“When you consistently choose bad leadership you are very likely to go wrong.
“We need to diversify this economy and create jobs on the back of a growing economy.
“The contribution of cities in the Eastern Cape towards GDP is very small and we need cities to become dynamic in terms of industrialisation.”
Jonas also urged businesses to reflect on their contribution towards growing investment opportunities in the province.
“This conference is about finding a way to create a space where investors become interested in putting money into this province,” he said.