In the State of the Province Address (SOPA) delivered on 27 June 2014, Premier Makhura outlined a ten-pillar programme which identified radical economic transformation, the modernization and re-industrialisation of the Gauteng economy, modernisation of public transport infrastructure and leading Africa’s new industrial revolution were identified as principal areas of focus for the 2014 – 2019 term of office.
Whilst acknowledging the massive strides successive ANC-led administrations have made in transforming the socio-economic landscape and radically improving the lives of the people of this province over the past twenty years, we are convinced that nothing short of the radical measures announced in the Premier’s State of the Province Address will address the stubborn legacy of apartheid and troika of unemployment, poverty and inequality in our province.
As guided by the National Development Plan (NDP) and Gauteng Vision 2055, we amongst others commit to expand infrastructure provision in order to facilitate economic activity, growth and job creation; reduce the cost of living for low-income and working class households; support small business through better coordination of relevant agencies, development finance institutions, and public and private incubators; expand the skills base of our economy and stimulate regional economic competitiveness as well as spatial development and economic equity.
The Programme of Action for this term of office is geared at altering the deep- seated structural challenges that continue to confront our province, especially in the economic arena. The next five years will be defined by radical measures to encourage investment in economic and social infrastructure investment; support for new sectors of growth such as ICT and the green economy, the revitalisation of manufacturing and localisation to spur industrialisation, transformation of the rural economic landscape and integration of smallholder farmers into the food supply chain of key and high value food commodities and the deliberate empowerment of small business and cooperatives located in our townships.
Revitalising the Township Economy
The imperative to mainstream the township economy by supporting the development of township enterprises, cooperatives and SMMEs will form a key focus area for the Gauteng government. In pursuit of this objective, we will roll out the Township Enterprise Hubs across Gauteng’s oldest townships. The Winterveld Enterprise Hub, which is already recording promising levels of participation, income generation and job creation for the small enterprises in the area, will be used as a model.
We will engage in an extensive review of the Township Business Renewal funding scheme to make it more responsive to the needs and challenges faced by township entrepreneurs.
In our endeavour to stimulate the township economy and overcome the apartheid spatial geography, we will regenerate old township industrial sites and turn these sites into vibrant and productive spaces. We will refurbish infrastructure and attract private sector investment to these sites.
We have earmarked old industrial parks in Residentia, Katlehong, Babelegi, Ekandustria and Emndeni for this intervention. These industrial parks will specialise in light manufacturing in the following sectors: automotive, furniture manufacturing, plastic, polymers and chemicals.
We will increase the participation of small and emerging businesses in these parks through incubation and supplier development programmes modelled on the Diepsloot SMME Incubation Hub which we will be launching in a few months’ time. We will soon finalise the framework to guide the Provincial Government on the approach towards the township economy.
The persistent challenges facing the informal traders in our towns and cities remain a serious concern. We are determined to address the plight of informal traders, many of whom are women and men who are engaged in the sector as survivalists and breadwinners. Working with municipalities and in broad consultation with the informal sector, we will soon finalise the Informal Trading Strategy for Gauteng. Moreover, we will pilot micro-financing loans and grants to informal traders in the province.
Industrialisation and Strategic Economic Infrastructure
Undoubtedly, the modernisation of public transport infrastructure together with “decisive spatial transformation” and the “modernisation of human settlements and urban development”, will change the spatial and physical landscape in our province. Also, it will forever alter the land use patterns in a manner that will help to create truly post-apartheid communities.
This approach is entirely consistent with the 25-Year Integrated Transport Master Plan (ITMP25), which is emphatic on the need to shift spatial planning away from apartheid land use patterns by building housing developments within the urban edge. Greater housing densification in urban areas and the accommodation of residents on well-located land parcels in close proximity to
public transport facilities and other social amenities can change the face of our province.
This new spatial paradigm-spurred on by transit-oriented development - would contribute greatly to break the cycle of poverty and the social exclusion of large numbers of our people. It certainly would provide the basis for social cohesion and inclusion into the mainstream economy.
The revitalisation of Metrorail in Gauteng and the acquisition of new rolling stock; renovation of train stations and the development of a new signaling system will transform the day-to-day travel experiences of our people, particularly the working class. The location of the R51 billion train manufacturing plant in Ekurhuleni presents enormous opportunities for the re- industrialisation of the region as South Africa’s manufacturing hub. This investment will create not less than thousands of direct jobs and indirect jobs in related industries.
We will take an active role in coordinating small businesses, especially those located in townships, for the purpose of the supplier development park, which will give SMMEs the opportunity to supply parts that will be used in the train manufacturing process.
In addition to our working relations with PRASA, we have fostered a strong working relation with Transnet, the Airports Company of South Africa (ACSA) and the other spheres of government, Gauteng will implement the provincial freight strategy with greater vigour and renewed energy. Existing freight and logistics hubs such as City Deep are being upgraded. Added to that, a number of new logistics hubs are due to be established over the next decade, particularly to stimulate the local economies in the West Rand and Sedibeng districts. This will give impetus to the vision to en trench Gauteng’s position as the Gateway to Africa by strengthening its competitive and comparative advantages.
In the course of this year, the provincial government, in conjunction with the Ekurhuleni Metro, will finalise the Aerotropolis Master Plan for the creation of an airport city around the OR Tambo International Airport. This project has the potential to create thousands of permanent jobs and to inject new life into the flagging manufacturing sector in the region.
Decentralising Economic Development
Over the next few years, Gauteng will take the initiative to create new nodes of economic development and new cities in Modderfontein and Lanseria in Johannesburg and Savanna in Sedibeng. We will support these initiatives and leverage public resources and private investments to create new cities that will provide holistic mixed development with residential, work and economic activity within close proximity to each other. These cities will present a significant paradigm shift from the old cities of the apartheid period.
Modernising the Gauteng economy and stimulating new sectors of economic
This fifth-ANC led administration will capitalise on the opportunities for the creation of new industries provided by the mass roll-out of solar water heaters, set-top boxes and our vision for a Digital City-Region with widespread broadband connectivity and 100% Wi-Fi provision.
Gauteng is now well positioned to take advantage of the national incentives and grants to attract new investments and businesses. The Gauteng ICT Park located in Nasrec has been endorsed by the Department of Trade and Industry as a Special Economic Zone which means that investments into the area will benefit from job creation and industrialization grants as well as skills development, tax, export, incentives.
Recognising the importance of agro-processing and its job creation potential, we have since invested R10 million for the establishment of four milling plants in Ivory Park, Randfontein, Rietfontein and Holfontein.
Conclusion
Gauteng remains a beacon of hope and continues to attract thousands of people in search of economic opportunities. We have recorded sterling achievements and made significant inroads in creating a better life for all in this province. Because we are mindful of the reality that our plans will not be realised without forging partnerships and cooperation with a range of stakeholders, public consultation and stronger social dialogue will form a critical component of our work in this administration. To start with, we will initiative engagements with stakeholders in the informal economy, small business and cooperatives located in townships and small-scale farmers in the rural parts of Gauteng. These engagements will also extend to stakeholders in the priority sectors that have the potential to create decent employment and foster greater economic inclusion. These include finance, the automotive industry, manufacturing, ICT, tourism, pharmaceuticals, creative industries, construction and real estate.
For media enquiries please contact:
Phindile Kunene
Cell: 082 494 2409
Tel: 011 355 8443
E-mail: Phindile.Kunene@gauteng.gov.za
