SAMUEL MUNGADZE
JOHANNESBURG -THE Gauteng township economy is set for accelerated growth in the 2016-17 fiscal year following a huge budget allocation Finance Member of the Executive Committee announced earlier this week.
The funds are meant to drive economic activities in the province.
In her Budget Speech, MEC for Finance, Barbara Creecy announced R1,3 billion had been allocated to the Gauteng Department of Economic Development (DED) for developmental projects.
In this allocation, R195 million is specifically set aside to enhance local economic activity by establishing and refurbishing existing industrial zones in townships.
These include Alexandra, Orlando‚ Saulsville and Residentia Industrial Parks‚ Khutsong Business Hub‚ Hammanskraal‚ Mabopane and Ennerdale Skills Centres and the KwaThema Business Park.
Last month, during his State of the Province Address Premier David Makhura emphasised a commitment he made in 2014 when he took over the control of the provincial government that his administration would prioritise building township economies and ensuring the rise of black industrialists in the province.
He announce stern measures including warning government departments that he will crack a whip on government departments that failed to pay for services rendered within 30 days.
Makhura said his government would not destroy black business and Small and Medium-sized Enterprises (SMEs) through non-payment or late payment of invoices.
To help further township economies boost‚ the provincial government has allocated all procurement deals worth less than R500 000 to township businesses.
Analysts have welcomed the support for township revitalization.
“Township revitalisation is a welcome move for creating tangible economic substance to those that desperately need it,” says Muriel Chinoda, Managing Director and business mentor at Business Engine.
The R100 billion budget Creecy announced on Tuesday was heavily skewed towards creating opportunities for young people.
As part of austerity measures, politicians will travel less. A cut on travel expenses was also factored in.
Education was given more than R39 billion and health got R37 billion.
Creecy said Gauteng would spend more than R40 billion over the next three years on infrastructure development.
Infrastructure development is high on the provincial government with African National Congress (ANC) provincial leader, Paul Mashatile, in a recent interview with Gauteng Guardian promised to turn Gauteng into a “construction site”.
The Finance MEC also said new measures announced on Tuesday would help increase revenue‚ reduce costs and bring in the private sector as a role player in development.
The provincial treasury projected economic growth of 1,2 percent in the province for 2016.
Creecy was however upbeat.
“We are‚ however‚ optimistic that with our interventions‚ as shared by the honourable premier‚ we expect an upturn in our provincial economy by 2018‚ with a moderate growth projection of 2,8 percent,” she said.
Gauteng is home to about 24 percent of the country’s population‚ with about 13,2 million residents. It is viewed as a driver of national economic growth.
About 40 percent of the country’s business and services sector is based in Gauteng.
More than 64 percent of the country’s trade happens in the province.
