Paul Mashatile: Enabling faster economic growth and job creation
16 February 2006
One of the key responsibilities of the Department of Finance and Economic
Affairs is to facilitate the growth of the provincial economy, thereby
contributing towards job creation and poverty reduction.
Through a number of carefully targeted interventions such as the
establishment of the Gauteng Enterprise Propeller (GEP), the launch and
implementation of the Gauteng Development Strategy (GDS) and Blue IQ
investments we continue to enable the growth of the provincial economy.
Partly, as a result of our interventions and as indicated by the Premier in
the State of the Province Address, in 2004 provincial economic growth was
robust, continuing the trend of sustained growth over the previous ten
years.
Most importantly, this sustained growth has led to a reduction in
unemployment from 30.4% in September 2001 to 22.8% in September 2005. We are
also encouraged by the outlook for the provincial economy which by all
indications continues to be positive. We estimate that Gauteng could well see a
real gross domestic product (GDP) growth of 5.1% in 2006.
Going forward, the challenge is to accelerate the rate of shared growth
which continues to create jobs for our people.
The Premier, in the State of the Province Address spelt out the achievements
of the Provincial Government and our commitments in the 2006/07 financial
year.
As the Department of Finance and Economic Affairs, we wish to reiterate our
commitment to the following:
* Continuing to take forward the process of Broad Based Black Economic
Empowerment (BBBEE) and the development of small, medium and micro enterprises
(SMMES) towards ensuring that by 2009, 70% of government procurement is done
through SMMEs and BBBEE companies
* We will continue to facilitate the implementation of the Growth and
Development Strategy (GDS) and further projects will be identified as sector
strategies unfold.
* We remain committed to ensuring that we achieve an economic growth rate of 8%
by 2014
* We will continue to invest in projects aimed at improving the economic
infrastructure of our province through Blue IQ.
Our Agencies will also be hard at work to ensure that we achieve the goals
we have set for ourselves.
During the first quarter of the 2006-07 financial year, the GEP will roll
out two funds whose purpose is to provide financial assistance to SMMEs and
cooperatives in Gauteng. These are the GEP Leverage Fund, which will provide
guarantees to SMMEs and the GEP Captive Fund which will provide loans and
bridging finance. In addition to these funds GEP will continue its work of
providing training and capacity building to SMMEs.
The Gauteng Film Office will pay attention to the implementation of a
Public, Private Partnership to establish a BEE Film and TV fund. Our private
sector partner in this project has committed itself to investing R250 million
in the local film industry. This investment will also facilitate skills
transfer.
This will be done as part of our efforts to position Gauteng as a preferred
destination for film making and production. The Gauteng Tourism Authority will
focus on the following key priorities:
* Attracting 53% of total international arrivals to Gauteng
* Increasing tourist spend and achieving and maintaining 35% of all foreign
direct spend generated.
* Increasing length of stay to an average 15 days.
The Dinokeng and Cradle of Humankind projects will continue to boost the
number of tourists coming to Gauteng.
In line with the GDS and in order to contribute towards the achievement of
GPG priorities, the Gauteng Economic Development Agency's focus will be on
among others:
* Facilitating socio-economic infrastructure development
* Contributing to overall sustainable economic growth and local economic
development.
* Contributing to the creation of an enabling legislative, policy and
regulatory environment for increased and sustainable economic growth and
development, particularly in respect of import and export promotion.
* Promoting Gauteng as a preferred destination for foreign and domestic
investment.
Special Projects
Gauteng Government Precinct
As we all know, the Gauteng Provincial Government is creating a public
sector zone in the Johannesburg Central Business District. The GPG Precinct is
aimed at boosting Gauteng's public service delivery through providing a
rewarding working environment, improved contact between provincial departments
and ease of interaction between provincial government and the people of
Gauteng.
The precinct will also contribute to the rejuvenation of the inner city and
will lead to the creation of job opportunities and opportunities for
investments. The Precinct will further assist in changing prevailing negative
investor perceptions of the downtown property environment.
Thank you.
Issued by: Department of Finance and Economic Affairs, Gauteng Provincial
Government
16 February 2006
