Gauteng finds itself in the middle of a serious financial and economic crisis. The Freedom Front Plus (VF Plus) issued this warning yesterday during the debate on the Gauteng Treasury’s 2026/27 budget.
This crisis is reflected in the province’s rising unemployment rate. By contrast, Elon Musk’s SpaceX was listed last Friday in what became the largest initial public offering in history.
While the world celebrates such breakthroughs, Gauteng is moving in the opposite direction.
It is therefore necessary to ask what has gone wrong in Gauteng and how the tide can be turned to make the province an attractive destination for job-creating investments and a place where ideas are developed into patents and profitable products.
Given Gauteng’s natural resources and large workforce, there is little reason why the province cannot follow the growth trajectory of the world’s most successful economies.
The growing unemployment rate is a clear warning sign that continuing with the same approach will not deliver better results.
The province therefore needs a better strategy than the one currently being followed.
One factor within the province’s control is the allocation of budgets to departments.
The Department of Economic Development – the department directly responsible for economic growth and sustainable job creation – continues to receive a relatively small and insufficient annual budget.
The first correct step would therefore be to review this department’s programmes and significantly increase its budget in order to strengthen the positive impact of an improved business environment.
The Provincial Treasury can play a decisive role in this regard.
