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17 February 2009

The Gauteng Department of Economic Development is in agreement with the Premier that the Gauteng Provincial Government (GPG) has successfully met its 2004 to 2009 electoral mandate, and it has laid a solid foundation for the next administration.

We are confident that the results of our efforts of making Gauteng a better place to leave and work in will be shared and cherished by the current and future generations of South Africans, alike.

During the current term of office, the provincial government has enacted various legislations and adopted various strategies to stimulate economic growth.

Some of the strategies that were implemented over the past five years include:
* Growth and Development Strategy (GDS), which seeks to grow the provincial economy at a rate of eight percent by 2014 and beyond
* Broad Based Black Economic Empowerment (BBBEE), which seeks reverse the historical legacy of racial segregation and economic exclusion
* Gauteng Tourism Development Strategy, which strive to make Gauteng a Tourism destination.

Through these strategies, the provincial government was able to register high level of economic growth and labour absorption.

Between 2000 and 2006, the provincial economy grew at a rate of 5,3 percent and 6,1 percent, contributing 34,8 percent to the national gross domestic product (GDP) , according to Statistics South Africa (Stats SA). High level of economic growth enabled the provincial government to redistribute some of the fruits of economy to the previously marginalized community.

* During 2007/08 financial fear, procurement from the historically disadvantaged people amounted to 53,5 percent of R6,2 billion.
* During the same period, procurement from small, medium and micro-enterprises (SMMEs) amounted to 29,7 percent of R6,2 billion.
* And lastly, procurement from women-owned SMMEs amounted to 18,1 percent of R6,2 billion.

In addition to the aforementioned statistics, we were able to create enabling environment for business to thrive. As the premier indicated, the Department of Economic Development has assisted more than 14 000 SMMEs, providing over R64 million with financial assistance.

During the same period of economic growth, we were able to substantially reduce the levels of unemployment among the people of Gauteng. Unemployment in our province has dropped from 30,4 percent in September 2001 to 19,5 percent in September 2007 - dislodging the myth of jobless growth.

The tertiary sector was the main contributor to the economic growth and job creation. The sector's contribution to Gauteng economy increased from 67,1 percent in 2000 to 70,1 percent in 2007.

The most notable contributors to tertiary industries were finance and business services, construction wholesale, retail trade, catering and accommodation and transport and communication. The most disturbing factor was the decline by other economic sectors, such as secondary and primary over the period 2004 to 2009.

The most notable challenges that were identified during the term of office (2004 to 2009), and that we think should occupy the centre of the priorities of the next term of office, include: ageing infrastructure, skills mismatch, slow pace of transformation and slow pace of entrepreneurship.

I thank you.

For more information, contact:
Lebogang Seabelo

Issued by: Department of Economic Development, Gauteng Provincial Government
17 February 2009
Source: Gauteng Provincial Government (http://www.gautengonline.gov.za)