April 7, 2005
By Lucky Sindane
GAUTENG'S growth has been carefully mapped out for the next 10 years, with a strategy being put in place to build the province's economy and reduce unemployment and poverty.
The 2014 Growth and Development Strategy, which was endorsed by various stakeholders at a two-day summit in November last year, was formally launched by Premier Mbhazima Shilowa, in Sandton on Wednesday, 6 April 2005.
The strategy aims to create a better life for all citizens of the province through long term, sustainable growth of the provincial economy, meeting the socio-economic development needs of people, creating jobs and reducing unemployment and poverty.
"Our key targets the strategy aims to achieve in Gauteng by 2014 include reducing unemployment to 18 percent, creating some 800 000 jobs over the next 10 years, and increasing the provincial government's procurement spend for broad-based economic empowerment enterprises to 80 percent," said Shilowa.
Paul Mashatile, the finance and economic affairs MEC, said it was the beginning of a very long journey. "Our aim is to reach a growth of about 8 percent in Gauteng by 2014."
The strategy has six objectives for achieving its vision:
- Provision of social and economic infrastructure and services that will build sustainable communities and contribute to halving poverty;
- Accelerating labour-absorbing economic growth that increases each year and that will create long-term sustainable jobs and contribute to halving unemployment;
- Sustainable socio-economic growth;
- Enhanced government efficiency and co-operative governance;
- Deepening participatory democracy, provincial and national unity and citizenship; and
- Contributing to the successful achievement of the goal and objectives of the New Partnership for Africa's Development (Nepad).
Economic growth
Gauteng is the country's financial capital and preferred home for local and international business. Its relatively high economic growth rate of 3,3 percent in 2003 has attracted many job seekers. The province was leading the South African economy's move from a primary commodity economy to a tertiary knowledge-based economy, said Shilowa.
"We have strong information technology, communications and transport infrastructure, strong public healthcare and education systems with a firm skills base and some of the country's largest and most prestigious academic and research institutions," he said.
"We have concentrated population centres, significant markets and are responsible for 49,6 percent of all employee remuneration in the country. Gauteng generates 52 percent of all turnover of institutions and is a recognised gateway to Africa and the world," Shilowa added.
According to a recent Labour Force survey, Gauteng continues to provide most jobs in the country, increasing from an estimated 2,66 million jobs in February 2000 to 3,35 million jobs in March 2004.
According to Census 2001 Gauteng's population was 8 837 178 people in 2,7 million households, said Bongiwe Kunene, the head of the finance and economic affairs department.
"A central component of the Growth and Development Strategy is to grow the economy through the development of key growth sectors which have been identified based on their potential to achieve high growth rates and create jobs through multiplier effects," Kunene said.
These are:
- smart industries, including information and communication technology and pharmaceuticals;
- tourism;
- agriculture, including agro-processing and biotechnology;
- trade and services, including finance and film; and
- manufacturing, including steel-related industries, automotive parts and components, and beer and malt.
SMME agency
The strategy identifies a number of areas of leverage through which its objectives can be met. These include investment in and support of targeted economic growth sectors like small, medium and micro enterprises (SMMEs); skills development; broad-based black economic empowerment; social grants and social services; multi-purpose community centres; intergovernmental relations; an integrated city region strategy; engaging with Nepad; and mainstreaming transversal issues.
"Our strategy places a particular emphasis on economic growth and development as this is a necessity if we are to address underdevelopment and achieve our broader development objectives and in particular, contribute to meeting the national objective of halving unemployment and poverty by 2014," said Shilowa.
"Support for small, medium and micro enterprises is critical to effect poverty reduction, create job opportunities and meaningful economic participation by black people, women, people with disabilities, youth and other marginalised sectors of our society. In this regard we will later this month launch Gauteng's SMME agency, which will provide financial and non-financial support to SMMEs."
The Growth and Development Strategy also identifies existing strategic levers, which need focused attention and resources. These include the provision of an accessible, affordable and integrated transport system, including the Gautrain; the provision of housing; investment in sustainable communities and innovative housing finance solutions; public safety and an improved security system, which are critical for economic growth, quality of life and tourism; taking effective advantage of the opportunities presented by the 2010 World Cup; and improving government institutional efficiencies, including quality integrated public services and reducing the cost of doing business in Gauteng, Shilowa added.
Infrastructure
An estimated R17-billion has been invested in infrastructure over the next three years.
"We have identified the need for a more integrated approach to infrastructure development by the public sector. We will, at the end of May, be convening a summit which will seek to understand what the different arms of government are planning in Gauteng, what resources have been set aside and to identify synergies so that we can emerge with a wholistic infrastructure programme," Shilowa said.
A multi-sectoral forum will be established to involve all stakeholders in the implementation of the strategy. It will be continually monitored and evaluated.
"We will be going on road shows to all organisations. This will spread the responsibility for its implementation to all sectors of society, while strengthening the partnership between the various sectors for greater co-ordination and impact," the premier concluded.
Permission to use web site material
Publishers may use material from this site free of charge, as long as:
- Credit is given to either the "City of Johannesburg website
(www.joburg.org.za)" or to "Johannesburg News Agency
(www.joburg.org.za)";
- If the article is used online, a link is provided to the original
article on this website;
- The name of the article's author is acknowledged;
-
The webmaster is informed of how and where the material is used (fill
in this brief online form).
Johannesburg News Agency is operated by BIG Media at 011-484-1400 |
