Gauteng’s economy needs action more than words
The Premier began his 2016 SOPA by announcing that “a promise made is a promise kept”. Very bold words from a Premier of a political party that is renowned for making empty promises.
The Premier might have kept his promise to the people of the Sedibeng district by bringing the SOPA to Sedibeng, although the cost of that exercise was hardly in line with the cost cutting measures and budget cuts proposed by the President in his recent State of the Nation address.
However, if we look at the promises made by the Premier in SOPA 2015 it appears that some of those promises made a year ago have either been forgotten or not followed through.
One of these was the seven new township hubs promised to be established in Ennerdale, Hammanskraal, Mabopane and Reiger Park to name a few.
At last week’s portfolio committee meeting the word “established” was questioned and clarified. According to this Province’s Department of Economic Development established can mean (1) actually established, i.e. up and running, (2), in the process of being established or (3) merely having a site identified.
One could be forgiven for not understanding quite what the Premier means by established -it does appear that however one defines established, the conventional meaning of the word does not apply.
Similarly the Premier referred to revitalising industrial parks in Katlehong, Orlando, Residentia, Khutsong and Ennerdale in his 2015 SOPA. Perhaps the MEC for Economic Development would like to explain at what stage of revitalization these industrial parks are actually at?
Another challenge the Premier faces in his great vison for Gauteng is the economic policy uncertainty faced by the entire country. The Premier himself acknowledged in SOPA 2015 that the vast majority of the planned economic development of this province relies on public/private partnerships.
We all know that economic growth has slowed throughout the world with commodity prices hitting rock-bottom, naturally effecting South Africa but equally so, the economic and financial instability in our own country does not help.
The domestic and foreign investors, essential to driving economic growth and the jobs that go with that growth, need to know that their investment is safe. They need to know that there will not be three finance ministers in almost as many days, and they need to know what the overall economic plan for the country is.
Is South Africa still committed to the NDP or are we following the New Growth Plan?
Ultimately all the mega projects the Premier plans for Gauteng are dependent on what happens on the national stage. For Gauteng’s economy to grow and for more jobs to be created, there must be policy certainty.
The Premier states that the economy in Gauteng has been consistently growing above the national average, well then he needs to use that fact as leverage to prevent the mayhem that occurs at a national level. Unfortunately this province is not an island that can progress regardless of what is going on in the rest of the country. Economic growth nationally is predicted to be just 0.7% this year which will obviously impact on all provinces.
The Premier’s big plans need big investment and that can only be achieved if the investors have confidence and are committed in investing for the long-term.
Interestingly in the Western Cape there is a significant uptake in infrastructure and real estate investment, a leading indicator that investors are confident and committed for the long term and are prepared to commit their capital to create jobs.
The number of square metres of building plans approved in the province showed a significant increase in 2014/15.
In a 12-month period ending August 2015, 654 000 square meters of commercial and residential developments were approved for construction in the Western Cape, almost 9 times the 75 000 square meters approved in Gauteng for the same period, according to Statistics South Africa. To quote Premier Helen Zille: “construction projects not only reflect confidence, they create jobs”.
The Gauteng Premier states that steps are being taken to improve the ease of doing business and cutting red tape. This is to be welcomed although there are still many reports of people being asked for cuts on profits in order to get the permission needed; of phones going unanswered and appointments only being granted once money changes hands.
Why is it so difficult for officials to make a decision? Anything that requires a commitment beyond a six month time period seems to be impossible. Do the officials in this Province know something the opposition is still anticipating?
The premier has noted that payment of e-tolls is more about affordability than civil disobedience. Surely Premier if people are battling to pay e-tolls now, how are they going to be able to cough up an additional 5% in March?
Once again it will be the poorest people in this Province who will be most disadvantaged by the increase as they are the ones who live furthest away from their places of work due to apartheid spatial planning. The cost of a loaf of bread and other essential items is rising every day and an increase in e-tolls is the last thing any household needs right now. We call upon the Premier to use his influence in the national sphere of government to stop this highway robbery once and for all. Let’s see if the ANC really cares about the people of this province!
Premier we note and appreciate the improved methods of public transport such as the Rea Vaya, Areyeng and now Harambee in Ekurhuleni. We would however like to know how it is planned to integrate these different transport systems between the three metros in the planned city regions. Obviously this would help people move seamlessly between the different areas.
The results of the feasibility study on extensions to the Gautrain have never been announced but the expansion is going ahead at huge cost. Can this be afforded in this time of economic austerity?
The Premier has a grand vision for Gauteng. He needs to follow up the promises with commitment and visible results on the ground. In the words of Pravin Gordhan at yesterday’s Budget Speech “Above all, action is needed rather than words”. Premier the unemployed people of Gauteng are depending on you to do just that.