In spite of a 6% decline in Gauteng province’s gross domestic product in the last financial year, Gauteng economic development MEC Lebogang Maile has indicated that he and his team are pushing ahead with plans to establish a provincial state-owned bank.
On Sunday, Maile addressed the media on several key economic priorities for the province’s 7th administration.
He said the intended bank will invest in infrastructure projects including in areas of ICT, business information centres and township-based enterprises.
“We will intensify efforts towards the establishment of a provincial state bank. One of the key objectives of this bank will be investing in projects characterised by low private sector investment and high social returns. The number of micro and informal businesses in South Africa is around 3 million, with more than half of these in Gauteng.
“Almost 20% of the country’s total employment is through the township economy. The township economy is critically important as it can unlock growth including long-term social stability. We will take measures to facilitate the provision of sustainable and suitable infrastructure including business, information centres and common usage facilities, necessary for the development of township-based enterprises,” Maile said.
On the contraction of the province’s economy, Maile said the GDP of the province declined by 6% in the last financial year.
“At Gauteng’s corridor-level, the City of Tshwane experienced the highest decline in GDP per capita relative to other corridors. City of Tshwane GDP per capita declined by approximately -7.5%, followed by Ekurhuleni -6.7%, City of Johannesburg -5.8%, West Rand – 3.7% and Sedibeng -3.6%.
“Several identified key vertical sectors and potential digital and ICT-led development opportunities for Gauteng include agriculture, construction, education, healthcare, financial services, manufacturing, mining, retail and wholesale, transport and logistics, and smart cities,” the MEC said.
On the issue of migration, he said that is another challenge affecting the province.
“South Africa is one of the most unequal countries in the world reporting a per capita expenditure gene co-efficiency of 16.7%. Income inequality has risen in the post-apartheid period though it has fluctuated… Gauteng has the fourth highest inequality rate of all the provinces.
“Since 1994, there has been an increase in the number of migrants from across the African continent. In the SADC region, most of the migrants are concentrated in South Africa, with the United Nations department of economic social affairs estimating the total number to just over 3 million. Most of them are concentrated in Gauteng.
“Additionally, since 1994, Gauteng has experienced the greatest positive net migration in line with the historical pattern of the province experiencing the greatest population figures in the country,” Maile said.
The Star