Joburg 'to grow in value'

Johannesburg - While South Africa's macro economy has not escaped the pressures of the current economic conditions, the aim in this environment is to develop Johannesburg as a key economic hub on the continent and a growth leader with stronger diversification, said councillor from the City of Johannesburg, Mandi Mayathula-Khoza, on Wednesday.

She was speaking on behalf of the mayor of Johannesburg, Amos Masondo, at the launch of the Mastercard Worldwide Emerging Markets Index at the Westcliff Hotel in Johannesburg.

Johannesburg was ranked 11 among the 65 leading cities driving growth within more 30 emerging markets.

Mayathula-Khoza said the city was honoured to be ranked so high on the list, but felt it could rise further up the ranks going forward.

"Johannesburg will in future years rise in the index as a number of projects come under way that are imminent, like the new bus transport system which provides important linkages with other transport programmes like Gautrain," said Mayathula-Khoza.

"Very few other cities on the list had to deal with the same demands we have in South Africa since the introduction of democratic governments," she added.

Mayathula-Khoza noted that Johannesburg's economy had achieved an impressive 6% growth per year over the last two years - 6.4% from 2006/07 to 2007/08.

"It is driven by a range of sectors - with construction growing the most, but financial and business services the largest," she noted.

Mayathula-Khoza said there were now challenges that needed to be overcome by more diversification of the local economy and improved links to the global economy.

"We need a robust market for local goods and services," she said.

"We accept there are obstacles, but South Africa is on the move and is worth watching."

"We will grow in value as South Africa becomes more open to Western products and markets," she concluded.

- I-Net Bridge