For Creamer Media in Johannesburg, I’m Thabi Shomolekae.

Making headlines: South Africa’s economic hub ‘trapped’ in stagnation, report says; IFP wins KZN wards from NFP; And, R54bn performance-based grant launched to support metro infrastructure delivery

South Africa’s economic hub ‘trapped’ in stagnation, report says

Gauteng is struggling to grow and its shift from manufacturing and mining to a services hub is deepening inequality.

That’s according to the provincial government, which said urgent action is needed to arrest the decline. In a 153-page development plan presented today, it stressed the need to create new industries, boost employment and improve crumbling infrastructure.

Gauteng’s stagnation is at the heart of the struggle to boost growth in Africa’s most industrialised economy, which has languished for more than a decade. As mining and manufacturing have shrunk, new jobs in finance and other services have failed to stem unemployment from rising above 30%, one of the highest levels in the world.

Since 2010 in Gauteng only government activities, financial and other services have grown with the report highlighting that finance alone now accounts for 40% of Johannesburg’s economy, clustered in the affluent northern suburb of Sandton, well away from the decayed city center.

Even as the population expanded, manufacturing shed almost 200 000 jobs, shrinking the workforce to 528 000. At the same time, people employed in financial services rose to more than 1.2-million from 776 000.

IFP wins KZN wards from NFP

The Inkatha Freedom Party have won three of five contested by-elections, reclaiming wards held by the National Freedom Party.

The party won Ward 7 and Ward 20 in Nongoma local municipality from the NFP, in KwaZulu-Natal.

IFP national spokesperson Mkhuleko Hlengwa explained that in Ward 7 the IFP received 1 280 votes and in Ward 20 the party received 981 votes.

These wards became vacant following the resignation of NFP councillors.

He pointed out that the IFP now held 23 of the 45 seats in Nongoma local municipality, placing it firmly back in control.

Prior to this outcome, the IFP was governing through a coalition arrangement with the Economic Freedom Fighters, which holds two seats, and the National African People’s Front, which holds one seat.

The IFP also secured a victory in Ward 12 of Abaqulusi local municipality, also in KwaZulu-Natal, where it received 1 628 votes.

And, R54bn performance-based grant launched to support metro infrastructure delivery

The National Treasury has officially launched a R54-billion performance-based grant in a bid to increase investments in water, sanitation, electricity and waste infrastructure services by the country’s eight metropolitan municipalities, or metros.

Known as the Metro Trading Services Reform, the performance-linked incentive aims to mobilise more than R100-billion in infrastructure investment over the coming six years, with recipient municipalities required to match the infrastructure grants with their own revenues and borrowings.

A total of R27-billion has been set aside for the scheme in the current three-year expenditure framework, which was outlined in the February Budget.

Speaking at the launch, National Treasury director-general Dr Duncan Pieterse said the incentive would be made available to those metros that meet performance targets which they have set for themselves under ‘Performance Improvement Action Plans’ developed for each of their trading services.

The Metro Trading Services Reform aims to ensure those services are run like integrated businesses.

It creates a single unit of management accountability to deliver core trading services.

He said the scheme had been implemented in a context where many metros were failing to provide services or to collect revenue adequately.

That’s a roundup of news making headlines today

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