M Nkomfe on State of the Province Address

17 February 2009

The Gauteng Department of Economic Development is in agreement with the
Premier that the Gauteng Provincial Government (GPG) has successfully met its
2004 to 2009 electoral mandate, and it has laid a solid foundation for the next
administration.

We are confident that the results of our efforts of making Gauteng a better
place to leave and work in will be shared and cherished by the current and
future generations of South Africans, alike.

During the current term of office, the provincial government has enacted
various legislations and adopted various strategies to stimulate economic
growth.

Some of the strategies that were implemented over the past five years
include:
* Growth and Development Strategy (GDS), which seeks to grow the provincial
economy at a rate of eight percent by 2014 and beyond
* Broad Based Black Economic Empowerment (BBBEE), which seeks reverse the
historical legacy of racial segregation and economic exclusion
* Gauteng Tourism Development Strategy, which strive to make Gauteng a Tourism
destination.

Through these strategies, the provincial government was able to register
high level of economic growth and labour absorption.

Between 2000 and 2006, the provincial economy grew at a rate of 5,3 percent
and 6,1 percent, contributing 34,8 percent to the national gross domestic
product (GDP) , according to Statistics South Africa (Stats SA). High level of
economic growth enabled the provincial government to redistribute some of the
fruits of economy to the previously marginalized community.

* During 2007/08 financial fear, procurement from the historically
disadvantaged people amounted to 53,5 percent of R6,2 billion.
* During the same period, procurement from small, medium and micro-enterprises
(SMMEs) amounted to 29,7 percent of R6,2 billion.
* And lastly, procurement from women-owned SMMEs amounted to 18,1 percent of
R6,2 billion.

In addition to the aforementioned statistics, we were able to create
enabling environment for business to thrive. As the premier indicated, the
Department of Economic Development has assisted more than 14 000 SMMEs,
providing over R64 million with financial assistance.

During the same period of economic growth, we were able to substantially
reduce the levels of unemployment among the people of Gauteng. Unemployment in
our province has dropped from 30,4 percent in September 2001 to 19,5 percent in
September 2007 - dislodging the myth of jobless growth.

The tertiary sector was the main contributor to the economic growth and job
creation. The sector's contribution to Gauteng economy increased from 67,1
percent in 2000 to 70,1 percent in 2007.

The most notable contributors to tertiary industries were finance and
business services, construction wholesale, retail trade, catering and
accommodation and transport and communication. The most disturbing factor was
the decline by other economic sectors, such as secondary and primary over the
period 2004 to 2009.

The most notable challenges that were identified during the term of office
(2004 to 2009), and that we think should occupy the centre of the priorities of
the next term of office, include: ageing infrastructure, skills mismatch, slow
pace of transformation and slow pace of entrepreneurship.

I thank you.

For more information, contact:
Lebogang Seabelo

Issued by: Department of Economic Development, Gauteng Provincial
Government
17 February 2009
Source: Gauteng Provincial Government (http://www.gautengonline.gov.za)