Gauteng Economic Development MEC Firoz Cachalia recently delivered his Budget vote speech, during which he unveiled the Gauteng Employment, Growth and Development Strategy (GEGDS). The proposals for Gauteng's economy in this document are impressive. The document provides a useful analysis of the Gauteng economy and develops economic strategies for employment and economic growth in the province.

Building a green economy and environmental sustainability is central to the strategy, which, usefully, draws on national economic policies and programmes, such as the Department of Trade and Industry's new Industrial Policy Action Plan, and complements these plans.

The stated vision of the policy is "an inclusive and sustainable Gauteng economy that promotes a developmental and equitable society". The document acknowledges that, while there have been achievements in the economy since 1994, there is a great task ahead. The document recognises that there are enormous structural weaknesses in the economy and that a new economic growth path is required to deal with these weaknesses and to build a stable, inclusive economy.

The GEGDS aims to drive the provincial economy onto a new economic growth path by focusing on three areas: innovation, green growth and inclusivity. The innovation will not only be building on the high technology sectors of the economy, but will also focus on using existing resources, skills and institutions more effectively. The provincial government will work with business and other partners to ensure that existing businesses and budding entrepreneurs are supported in a way that promotes innovation. The goal is to work with current resources and capabilities to build a knowledge-based economy.

A mistake in the past was to try to build a knowledge-based section of the economy on the existing economy. The new strategy recognises the unevenness in the economy, such as differences between economic sectors (and firms within sectors), high-technology and low-technology sectors and between small and big businesses. Its plan is to help promote innovation and enhance productivity across all these different parts of the economy. This process of building innovation is located within a targeted industrial policy that takes into account linkages between different economic sectors.

Building a green economy is an important programme that builds on the idea of promoting innovation across the economy and is part of a targeted industrial policy. The document states: "Gauteng needs an economy based on green technologies, green jobs, green energy and green production processes that reduce the ever higher input costs stemming from unsustainable resource use."

The province recognises that past economic activity used nonrenewable resources in a wasteful and inefficient manner that had implications for the environment in Gauteng and globally.

The strategy also recognises that building a green economy will not only benefit future generations, but will also have short-term economic gains for the Gauteng economy. Promoting more-efficient use of resources through greater environment friendliness will not only improve productivity and save money, but will also make our products more desirable and competitive in global markets. Environmentl sustainability has become a global concern, and countries and products that are seen to be harmful to the planet will be increasingly shunned.

The new growth path will be driven through Gauteng provincial government programmes to promote inclusivity in the economy. Historically marginalised and excluded people will be provided with increased economic opportunities as workers and entrepreneurs. An important aspect of this strategy will be the building of public infrastructure that creates increasing access, mobility connectedness and interaction across the economy.

The kinds of infrastructure will be to ensure transport access, electronic connectedness, improved access to health and education and improved delivery of basic services. An important aspect of the Provincial Strategy is to ensure that infrastructure enhancement supports and builds local industry and businesses. Further, the strategy aims to improve existing social and economic links with neighbouring Provinces and countries in our region.

The GEGDS is an important document because it comes at a time when national government has affirmed a commitment to driving the South African economy onto a new economic growth path. National government also has the goals of increasing decent jobs and building an environmentally sustainable economy. Gauteng province has the densest and largest industrial, finance and services concentration in the South African economy. An economic and development strategy that takes forward national goals and complements these with plans specific to the province will have a huge impact on the entire economy.