(Debate on Gauteng Provincial Opening Address)
The FF Plus believes that the economic plans put forward by the Gauteng Premier, Panyaza Lesufi, during his Provincial Opening Address will fall short of turning the province’s struggling economy around.
Gauteng’s dire economic situation requires a watershed moment where proven economic policy is implemented at once.
It appears, however, that Lesufi is not taking the province’s economic predicament and high unemployment rate seriously.
According to Statistics SA, the Gauteng economy was worth R2,2 trillion in 2022, but the province’s overall unemployment rate currently stands at 47%.
Ironically, that means the Gauteng economy – which is the biggest provincial economy in South Africa – also has the highest unemployment rate in the country.
Gauteng also has the biggest population of all the provinces. Consequently, any policy or programmes aimed at improving Gauteng’s economy will also significantly improve the national unemployment rate.
Despite all this, Lesufi failed to indicate how the ANC minority government will contribute to expanding the economy and facilitating growth to create more job opportunities.
Given the fact that the Gauteng economy is already worth more than R2,2 trillion, it will require drastic interventions to facilitate growth, particularly the kind that brings with it sustainable job opportunities.
A recent report by the Gauteng Legislature’s Economic Development Committee indicates that the Gauteng Growth and Development Agency failed miserably in achieving its targets for both domestic and foreign investments. There is simply no interest in investing in Gauteng.
If one wants to find out how to attract enough investments to Gauteng, one simply needs to study the economic histories of states such as South Korea, Singapore and Mauritius.
Clearly, in these cases, the prerequisite for any large domestic or foreign investments is creating a business-friendly environment by adopting and implementing a free market-orientated policy.
Lesufi’s announcement of new investments in Gauteng relates mostly to government and private sector investments in infrastructure.
These investments are welcomed, but there are not enough of the type of investments that will have a high impact on job creation, such as establishing new businesses in the manufacturing and information technology sectors.
A viable solution requires attracting large, multinational companies to Gauteng through promoting Gauteng’s Special Economic Zones with a dedicated power supply and manufacturing infrastructure as well as investor-friendly tax incentives.
The FF Plus will, given the shortcomings of Lesufi’s plans, get to work right away and adjust the Gauteng government’s economic plan (GGT2030) to pave the way for attracting the kind of investments that Gauteng needs.
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