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Gauteng 'leads' economic development

Johannesburg - The Gauteng department of economic development is concerned about what it calls "untruthful remarks" about the state of the economy in the province.

It referred to statements made by Jack Bloom, leader of the Democratic Alliance (DA) in Gauteng, who claimed Gauteng's economy is failing, according to the department.

"Gauteng is a leader of economic growth, employment and development in South Africa," said the department.

"The province contributes the highest percentage share to the Gross Domestic Product (GDP) in almost all sectors of the South African economy such as manufacturing, construction, trade, finance, mining, with the exception of agriculture."

It said Gauteng's 34.5% contribution to the GDP is second to none in the country.

The second largest economy in South Africa is KwaZulu-Natal, which contributes 16.5% to the national economy.

"The Western Cape, despite its privileged position and historical privilege, tails KwaZulu-Natal at 14.2%, which is less than half of the size of Gauteng's economy," said the department.

"Gauteng's contribution to the economy is critical as it allows for the state to generate enough revenue to build schools, health facilities, roads and houses not only in Gauteng, but for the rest of South Africa."

The department said the size and performance of Gauteng's economy is also linked to the province's good record of service delivery and its ability to attract investment and create jobs on a massive scale.

"As testimony to this, Census 2011 confirmed that the proportion of households having access to piped water inside the dwelling or yard is the highest in Gauteng at 89.4% of the total households in this province," said the department.

Census 2011 also indicated that the proportion of households using electricity for heating increased over the period under consideration in all provinces, with the highest proportion of 74.3% recorded in Gauteng.

Over four million - or 29% - of people with jobs in South Africa are located within the geographic confines of Gauteng.

"In the previous financial year 2012/2013 and during a hostile global economic period, the Gauteng provincial government attracted domestic and foreign direct investments that yielded 3 209 direct jobs in steel beneficiation, auto components manufacturing, and food processing and pulp and paper manufacturing," said the department.

"The sterling performance of the Gauteng provincial government, despite the pressing problems associated with the legacy of apartheid, global economic crisis and a bourgeoning population, is not only chest thumping on our part but something that has earned the province accolades on the global stage."

It referred to an observation made by the Organisation for Economic Co-operation and Development (OECD) Territorial Report in 2012 that "the windows of economic developments since apartheid have opened for a large number of citizens" in Gauteng.

The department of economic development was credited with "advancing a raft of programmes, from the support of advanced research to community economic development".

"While we concede that youth unemployment is one the biggest political questions facing the country at the moment, this is not only a South African problem, but also a challenge on a global scale," said the department.

"To address this challenge, the provincial government continues to support a range of youth business, which directly and indirectly creates and sustains jobs in the economy."

The department also has an intensive training programme for young artisans to play a key role in the manufacturing sector, especially furniture, metal fabrication, tooling and automotive industries.

"We have embarked on a tooling training programme offered by four Further Education and Training (FET) colleges in Kempton Park, KwaThema and Tshwane. There are currently over 200 young people participating in this training," according to the department.

"The department is also working tirelessly to revive township economies."

Township Enterprise Hubs, which are aimed at providing operational space and skills training for the unemployed and informal business across a range of sectors, form a critical component of the department's youth unemployment strategy.

The department has completed the construction of the Winterveldt (Tshwane) and Mohlakeng (West Rand) Township Enterprise Hubs, which are expected to provide jobs for the local population, especially young people.

"We will also continue with the Township Business Renewal scheme, which supports the revival of township businesses by funding equipment and business refurbishments," it said.

The scheme has assisted 294 township businesses to the tune of R13m since its introduction in 2009.

"There are multitudes of small youth-owned businesses that benefit from incubation and integration into global supply chains and world class training to meet international standards, through the efforts of the Gauteng provincial government," it stated.

"These efforts are in recognition of the fact that small businesses and cooperatives are the bedrock of Gauteng's vision to inclusively grow its economy and create decent jobs."

It has put in place measures to grant financing and training to informal traders to ensure that Gauteng's economy is inclusive and supports the most marginalised sections of our population.

"The notion that Gauteng's economy is failing is not only at odds with reality but smacks of dishonestly and a refusal to recognise the strides made by the Gauteng provincial government on behalf of Gauteng citizens," stated the department.



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