Gauteng inject R3.4-bn into township economy
23 February 2016
The Gauteng Provincial Government and its municipalities – including the City of Johannesburg – procured goods and services worth a total of R3.4-billion from township enterprises in the past year, Premier David Makhura said yesterday.
Delivering his State of the Province Address (SOPA) in Sebokeng in the Vaal Triangle, Premier Makhura said the provincial government spent R1.8-billion on township enterprises through its Township Economy Revitalisation Programme last year, while municipalities procured goods and services worth R1.6-billion from them.
Through the Township Economy Revitalisation Programme, the Gauteng provincial government seeks to channel at least 30% of its annual procurement expenditure to township enterprises.
In the 2014-2015 financial year the City of Johannesburg budgeted R1.1-billion under its Jozi@Work programme to empower small businesses and cooperatives in a bid to deal with unemployment, poverty and inequality.
Yesterday, Premier Makhura described the implementation of the Township Economy Revitalisation Programme as a “game changer”.
“As of January this year, 1 805 are now benefiting from our procurement spend. This is more than four times than the amounts in previous years. We have registered 5 321 SMMEs on our procurement database. We want these enterprises to be sustainable, grow employment and be involved in manufacturing and export,” Makhura said.
On the West Rand alone, about 577 township enterprises were being supported by the provincial government, he said.
“We have honoured our commitment to revitalise the township economy,” the Premier said.
He said working with cities, the private sector and trade unions, the province could do more to stimulate growth and trigger a new wave of smart and green reindustrialisation.
“Despite the tough global and national economic conditions, Gauteng has maintained its position as the economic powerhouse of South Africa, contributing 35% to the South African economy in 2015, as compared to 33% in 1997.”
He promised that Team Gauteng – comprising MECs, executive mayors and himself –“will continue to spend more time on the ground solving problems with communities, unblocking delivery of infrastructure projects and getting the economy to work for all”.
He said the province continued to be the leading destination for foreign direct investment in Africa. According to Ernst & Young’s 2016 Africa Attractiveness Survey, R30-billion of foreign direct investment projects went into the Gauteng economy in 2014-2015. The provincial economy had been consistently growing above the national average at 4.2% between 2003 and 2013. In 2013, its growth rate was the highest in the country at 2.6%.
The premier said during the past 12 months, 191 000 jobs were added to the formal Gauteng economy, while the informal sector created 150 000 new jobs, according to the September 2015 Quarterly Labour Force survey.
“In addition, we have also created 220 642 job opportunities through the Extended Public Works programme since 2014. This has helped to put bread on the table for many poor households,” he said.
On transport, which he described as a catalyst for economic growth, Makhura reported that the expansion of the third phase of the City of Johannesburg’s Rea Vaya Bus Rapid Transit (BRT) system to Alexandra, Sandton, Midrand, Ivory Park and Randburg was progressing very well. Makhura also took a swipe at people fuelling racial tension.
“We must unite against racism and xenophobia. Let’s fight against racism wherever and whenever it manifests itself. Those who call black people baboons are as wrong as those who threaten to drive white students out of university campuses. There must be no room for racists in the South Africa of our dreams,” he said.