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Gauteng: Gauteng Economic cluster post SOPA

David Makhura
Photo by Duane Daws
David Makhura

2nd March 2015

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/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

During his State of the Province Address on 23 February 2015, Premier David Makhura outlined plans that will be rolled out in moving the Gauteng City Region forward, enchored by the Transformation, Modernisation and Re-Industrialisation (TMR) strategy over the next five to fifteen years.

Today, we provide more details on how the programme for radical transformation, modernisation and reindustrialisation will be implemented.
This entails transforming the province’s economy to unlock the potential of different sectors to create decent job opportunities for the people of Gauteng, including youth, women and people with disabilities.

This vision will be achieved through new and existing partnerships formed with the private sector on spatial reconfiguration, township economy revitalisation, including massive infrastructure and e-infrastructure investments.

ECONOMIC DEVELOPMENT

In his inaugural State of the Province Address, Premier Makhura resolutely stated the fifth administration’s commitment to revitalise the township economy.

The Gauteng City Region has made inroads in this regard and plans are underway to realise this vision as outlined in the Township Economy Revitalisation Strategy. As such, the Province has committed more than R160 million towards revitalising the township economy.

In addition, the three metros (Johannesburg, Tshwane and Ekurhuleni) have set aside R3 billion, R22 million and R150 million, respectively, to support the township economy and the township entrepreneurs over a period of five years.

In Diepsloot, about 160 township entrepreneurs involved in the light manufacturing and other productive activities will benefit from the R1.6 billion investment in the Riversands/Diepsloot SMME Incubation Hub.

Seven new township hubs will be established in Ennerdale, Hammanskraal, Mabopane and Reiger Park. Furthermore, the industrial Parks in Katlehong, Orlando, Residentia, Khutsong and Ennerdale will be revitalised.


FIVE DEVELOPMENT CORRIDORS

Gauteng has reconfigured the City Region’s space and economy along five development corridors that have distinct industries and different comparative advantages:

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  • The Central Development Corridor - anchored around the City of Joburg as the hub of finance, services, ICT and pharmaceutical industries;
  • The Eastern Development Corridor - anchored around the economy of the Ekurhuleni Metro as the hub of manufacturing, logistics and transport industries;
  • The Northern Development Corridor - anchored around Tshwane as our nation’s administrative capital city and the hub of the automotive sector, research, development, innovation and the knowledge-based economy;
  • The Western Corridor - encompassing the economy of the current West Rand District and the creation of new industries, blue and green economy initiatives, tourism, agro-processing and logistics; and
  • The Southern Corridor - encompassing the economy of the Sedibeng district and the creation of new industries, new economic nodes and new cities.  The focus is to unlock Sedibeng as the food basket of the Gauteng City Region and position the region as an Agropolis.


The Regional Economic and Industrial Plans for Sedibeng and West Rand respond to the State of the Province Address’ outcome on enhancing the comparative and competitiveness advantages of the Southern (Sedibeng) and Western (West Rand) Development Corridors.

The plans are intended to help facilitate the re-industrialisation of these former industrial towns through higher levels of both public and private sector investments and closer integration between regional and provincial value chains.

The overall objective of the project is to improve the economic viability of these regions to ensure closer integration with the mainstream economy of the province and to provide an implementation mechanism for the mandated policy outcomes of government.

This will be done through the sectoral approach catering for the sectors that have a growth potential and contribute to the following outcomes:

•               Employment creation
•               Alleviation of poverty
•               Reduction of inequality.

The following sectors are the dominant sectors in the two development corridors:

Western Corridor

•               Agriculture and agro-processing
•               Tourism
•               Mining rehabilitation
•               Energy sector (green)

Southern Corridor

•               Metal fabrication
•               Agriculture
•               Chemicals processing
•               The establishment of River City


AGENCIES REVIEW

The Gauteng City Region further undertakes to realign all its agencies’ programmes and plans with the TMR strategy.  To this effect, we will appoint a 10 Member Panel to review the programmes for the agencies.

Furthermore, and without pre-empting the work of the Panel, we are advocating for the establishment of a Township Economy Partnership Fund, in partnership with the corporate sector, township enterprises, co-operatives and all spheres of government to promote investment in the township economy.

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TRANSPORT INFRASTRUCTURE DEVELOPMENT

The massive investment in the Bus Rapid Transport (BRT) across the City of Joburg, Tshwane and Ekurhuleni, will radically change the transportation landscape in the Province.  To this end, the cities of Joburg and Tshwane have commenced the roll out of the BRT and Ekhurhuleni is scheduled to roll out its project in 2016.

Furthermore, the province will see significant investment in Rail Development.  A key priority will be in the revitalisation of Metro Rail and the establishment of a rail assembly and manufacturing plant in Ekhurhuleni.

The province is also planning to expand the Gautrain services to other areas of Gauteng.


INFRUSTRUCTURE DEVELOPMENT

The Gauteng Provincial Government has also in the last three quarters made some strides on employment opportunities.

Launched in December 2014 - three months ahead of schedule - the Gauteng Provincial Government’s initiative that aims to give hope, skills training and entrepreneurship skills to 500 000 young people of Gauteng, the Tshepo 500 000, is already making a difference in the lives of our youth.

The project has to date received a considerable number of applications through our job portal. A number of young people have already been placed in sustainable employment opportunities.

Our Government continues to report on work opportunities created and indications are that we are well on track towards the creation of the
1 million work opportunities we committed ourselves to, through a more comprehensive and integrated Expanded Public Works Programme and  Community Works Programme by end of this term.

As at the end of quarter three, work opportunities created through the National Youth Service, Zivuseni programmes, COGTA funded sites and with partners such as the Independent Development Trust and various Non Profit Organisations tallied at 165 516 inclusive of youth, women, men and people with disabilities.

On projects implemented through government infrastructure capital works, we have registered phenomenal progress.  Over the next four years, the Gauteng Provincial Government’s total investment in infrastructure development will be more than R32 billion, while Gauteng municipalities will spend R94 billion over the same period.

CONCLUSION

We cannot overemphasise the importance of working together with the private sector in ensuring that the vison of transforming Gauteng into a globally competitive City-Region, characterized by social cohesion and economic inclusion is realised.

We would, therefore, like to extend an invitation to various stakeholders within the private sector to help us create decent job opportunities for our people and foster greater economic inclusion.

Furthermore, we have noted with deep concern the growing utter disregard for human life and the law demonstrated in the recent attacks on foreign nationals in and around the Province.  The Gauteng City Region reiterates its position of no tolerance for lawlessness and condemns any acts of violence.


Issued by the Gauteng Provincial Government

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