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Growing Gauteng: A hub for the continent’s economy

BY KOKETSO MAMABOLO

Newly appointed Gauteng Premier, Honourable Panyaza Lesufi takes over the reins of a province which is the economic cornerstone of the country and the continent. “It is both the financial and technological nerve centre of Africa,” said the provincial government in its Growing Gauteng Together 2030 plan. But exactly how big is this economy? What are the plans for further growth? And who has been tasked with driving this growth?

NEW LEADERSHIP

On Friday, October 7, the Premier announced changes to his provincial government, made to fill the vacancy he left after being promoted from the province’s education portfolio. It was at this announcement that he briefly shared the plans for his administration with three main focus points: “We have elevated things we feel are non-negotiable before now and the end of the political term. The economic recovery and reconstruction… We want to strengthen the immediate fight against crime, corruption, and change living conditions of townships, informal settlements and hostels,” he said.

Chair of the Portfolio Committee on Education in the Legislature, Hon. Matome Chiloane takes over from Premier Lesufi in the Education Department. Hon. Tasneem Motara is now the MEC for Economic Development, with MEC Jacob Mamabolo taking over the Finance Department. Both will be key roleplayers in the realisation of the plans set in motion by the Premier’s predecessor, Hon. David Makhura, and the plans that the Premier himself would like to implement.

Other key appointments include that of Hon. Kedibone Diale in the Department of Transport and Logistics, and Hon. Lebogang Maile in the Department of Human Settlements. The cabinet is also significant in the improved gender parity, which the Premier said was a conscious effort. At the announcement, the Premier set out the cabinet’s agenda: “There are three things that if we can’t tackle them head-on, we must forget. One, obviously, is to protect our economic position as Gauteng.”

The province is the seventh largest economy in Africa and the 26th largest urban region in the world

GROWING GAUTENG TOGETHER 2030

The industries driving the province are trade, manufacturing, finance as well as the concentration of government institutions. The finance sector is the largest in the province, making a significant contribution to its GDP.

GAUTENG: AN ECONOMIC HUB

14% of SA’s land area (smallest province)

24.1% of SA’s population (most populated province)

34.5% GDP contribution (highest among provinces)

29 of the Global 500 firms use Gauteng as a base

11 of SA companies in Forbes Global 2000 based in Johannesburg

The Growing Gauteng Together 2030 document was clear: “The province is the seventh largest economy in Africa, the 26th largest urban region in the world and the 6th largest urban agglomeration on the continent. It is both the financial and technological nerve centre of Africa.”

“In response to the global and domestic challenges that confront the province, the government has committed to a plan of Growing Gauteng Together 2030 – or GGT2030, as it is referred to. The plan reflects a collective vision for the GCR in a decade’s time, and beyond, in that, it also highlights priority actions and measures of success.”

GGT2030 identifies nine sectors which could drive employment growth and are driving private and public sector investment towards them.

1. Automotive sector

2. Capital equipment and rolling stock manufacturing sector

3. Agro-processing, food and beverages sector

4. Business Process Outsourcing/Services (BPO/BPS) and ICT sector

5. Finance and retail

6. Tourism and hospitality

7. Creative and cultural industries 8. Logistics and warehousing

9. The green economy

FIVE CORRIDORS

The provincial government GGT2030 “will be implemented along five development corridors that have distinct industriesand different comparative advantages”:

• Northern Corridor (Automotive, manufacturing, R&D, aerospace and defence sectors)

• Central Corridor (Finance and technology sectors)

• Western Corridor (Mining, tourism, agri-business and agro-processing sectors)

• Southern Corridor, Sedibeng (Steel sector)

• Eastern Corridor, (Logistics sector)

PRIVATE INVESTMENT

A string of private-public development projects will further strengthen the province’s economy and exemplify the commitment by the private sector to playing their role. Among these are the Roads Infrastructure Project (R23 billion over the next 10 years), the Mooikloof Mega City Project (R84 billion) and the R500-billion Lanseria Mega City Project.

The Lanseria Mega City Project, which is planned to be built as a smart city, was first announced by H.E. President Cyril Ramaphosa in his 2020 State of the Nation Address and is set to be home to as many half a million people in the next decade.

“We are transforming what is largely open space into a higher-density urbanised development that is accessible to multiple income categories and classes,” said Jak Koseff, Deputy Director-General in the Gauteng Department of Economic Planning and Development. This, among other projects, is a sign that Gauteng will continue to be at the heart of the country, and the continent.

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