20 February 2007
One of the key responsibilities of the Department of Economic Development is
to enable faster economic growth, thereby contributing to 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 investment in
improving strategic economic infrastructure through Blue IQ, we continue to
enable faster economic growth and job creation.
We are also contributing to the growth of the provincial economy by
positioning Gauteng as a preferred destination for tourism and foreign direct
investment.
As the Premier indicated in the Sate of the Province Address, our
interventions in the provincial economy are beginning to bear fruit as the
quality of life of the people of Gauteng improves.
A number of key economic and development indicators point to our successes
in changing the lives of our people for the better.
We are encouraged that the number of people living below the poverty line
has declined from 8,4% in 2001 to 7,3% in 2002 and that Gauteng's average per
capita income grew significantly from R28 962 in 2000 to R50 911 in 2006,
representing an impressive 75,8% increase.
Through the work of the Gauteng Economic Development Agency, we have
attracted cumulative investment to the value of more than R 5,1 billion,
directly benefiting the Gauteng economy.
Partly as a result of work done by the Gauteng Tourism Authority, over 50%
of the more than 7 million international arrivals to South Africa in 2006
visited Gauteng. These visitors to our province injected over R16 billion into
the Gauteng economy.
Going forward, we expect to significantly increase the number of tourists to
our province and the number of days they spend in our province. This we will do
through, among others, our investment in tourism infrastructure at the Cradle
of Humankind World Heritage Site and the Dinokeng Game Reserve.
Through the implementation of the Broad Based Black Economic Empowerment
(BBBEE) Strategy, we continue to expand participation in the mainstream
economy.
In 2005 alone we spent over R1 billion to procure goods and services from
BBBEE companies. During the same period female owned business benefited to the
tune of R226,4 million. Business owned by people with disabilities benefited to
the tune of R10,6 million. A further R 2,1 million was paid to youth owned
businesses.
We expect these numbers to increase significantly as we strengthen our
efforts to broaden participation in the economic mainstream and bridge further
the divide between the first and the second economies.
Also of significance is that the robust performance of the provincial
economy has translated into a steady increase in the number of jobs
created.
A total of 462 000 new jobs were created in the Gauteng economy between
March 2002 and March 2006. This confirms our assertion that we are beginning to
make a dent in unemployment in our province. However, we are aware that a lot
more still needs to be done to ease the burden of unemployment in our
province.
We are also encouraged that the outlook for the provincial economy remains
positive. We estimate that provincial economic growth will reach 6% this year.
This places us firmly on track towards our objective of growing the provincial
economy at a rate of 8% by 2014, and thereby contributing to the national goal
of halving poverty and unemployment by 2014.
During this year, we will continue to make targeted interventions in the
provincial economy with a view to accelerate further the shared growth of the
economy.
The Department of Economic Development will also pay attention to
co-ordinating the implementation of the provincial Growth and Development
Strategy, the Broad Based Black Economic Empowerment Strategy and the
provincial Spatial Development Perspective.
We will strengthen our capacity to monitor and evaluate the implementation
of these strategies.
The Gauteng Economic Development Agency will continue its work of supporting
municipalities in the identification and implementation of local economic
development initiatives.
The Provincial Treasury will continue to support both provincial departments
and local government in the management of their funds. We will monitor the
implementation and compliance with the Public Finance Management Act and the
Municipal Finance Management Act.
As the Premier said, our goal is to increase the number of departments who
receive unqualified audits. Over time we will strive for clean audits in all
departments.
For more information contact
Percy Mthimkhulu
Cell: 082 379 1913
Issued by: Department of Economic Development, Gauteng Provincial
Government
20 February 2007
