Gauteng aims for 8% growth
21 June 2006The Gauteng government has launched a special Business Barometer, the first of its kind in South Africa, to provide insights into economic activity in the province and help boost growth to the target of 8% by 2014.
Speaking at the launch of the barometer in Johannesburg on Tuesday, Gauteng Premier Mbhazima Shilowa said the aim of 6% growth for the country as a whole, under the Accelerated and Shared Growth Initiative for SA, was only possible if the province achieved the higher growth target.
Gauteng, described by Shilowa as "the country's engine room", contributes 33% to the South African economy and 9% to Africa's entire gross domestic profit.
Economists said 8% growth was "ambitious" but achievable, given the province's sustained growth - and if it continued to invest in infrastructure.
"It would be subject to investment in infrastructure, which has seen serious neglect over the past few years," said Goolam Ballim, Standard Bank chief economist. "Clearly there is an aggressive plan by provincial government to address the backlogs."
The barometer has been tracking economic activity for three years, looking at business activity in mining, manufacturing, construction, tourism, finance, real estate and transport.
"One of Gauteng's important strengths lies in its ability to innovate, apply knowledge, and create new products and services," Shilowa said.
"Our sound and often bold economic and social policies have attracted local and international investors, multinational companies seeking an entry into Africa, professionals and other skilled people, unemployed, innovators, entrepreneurs and tourists."
He said the provincial government had invested over R2.8-billion in strategic economic infrastructure projects in Gauteng between 2001 and 2005, through development agency Blue IQ.
Blue IQ is a multibillion-rand initiative to develop economic infrastructure for specific major projects in smart industries, high value-added manufacturing and tourism. It works with business and government departments to promote strategic private sector investment in key growth sectors of the Gauteng economy.
Its interventions, Shilowa said, had helped develop the tertiary sector and shifted the Gauteng economy from its historical reliance on mining.
Primary industries' contribution to provincial GDP dropped from 4.6% to 2.3% between 1996 and 2004, while that of tertiary industries rose from 58.4% to 62.3% in the same period. Much of this can be attributed to the growth in finance, real estate and business services, whose contribution rose from 16.1% to 21.4%.
Shilowa said the Gauteng government sought to maintain an "appropriate" balance between growth and addressing the social needs of the people.
"We are constantly aware of the challenges faced by the province in terms of employment, poverty and underdevelopment," he said.
"Given that Gauteng accounts for over a third of the country's GDP, we have a responsibility to contribute to the achievement of the country's objectives of halving poverty and unemployment by 2014."
SouthAfrica.info reporter and BuaNews
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