The parts of the Gauteng State of the Province address that REALLY matter

EFF members raised several points of order and called Premier David Makhura a liar disupting his State of the Province address a number of times.

EFF caucus leader Mandisa Mashego accused Makhura of being a liar and asked speaker Ntombi Mekgwe to be more mature after Mekgwe denied the party’s request to ask questions.

Mekgwe advised that she would not take any questions during the address as there will be a debate on the speech next week.

Whether fact or fiction, we have unpacked the 38-page speech, in which the Premier outlined Gauteng's TMR (Transformation, Modernisation and Re-industrialisation) strategy.

Makhura on 10 pillars constituting the mandate of his administration:

  • Radical economic transformation
  • Decisive spatial transformation
  • Accelerating social transformation
  • Transformation of the State and governance
  • Modernisation of the economy
  • Modernisation of the public service and the state
  • Modernisation of human settlements and urban development
  • Modernisation of public transport and other infrastructure
  • Re-industrialising Gauteng as our country’s economic hub
  • Taking a lead in Africa’s new industrial revolution

These ten pillars constitute a vehicle through which we seek to transform, modernise and re-industrialise Gauteng in order build a seamlessly integrated, socially cohesive, economically inclusive City Region; a leading economy on the African Continent; with smart, innovation-driven, knowledge-based and sustainable industries; an accountable, responsive, transparent and clean government as well as an active citizenry. This is our vision.

Makhura on Gauteng as the ‘Gateway to Africa’.

  • Gauteng remains the economic and industrial hub of South Africa and the SADC region and a significant player in Africa’s rising economic fortunes, with an economy worth more than R1-trillion.
  • The province contributes 36% to the country’s GDP, 40% of total industrial output and 60% of exports.
  • Gauteng is the biggest contributor to national employment and the number of employed people grew from 2.7 million in 1995 to 4.88 million people in 2014, and;
  • Gauteng accounts for more than 10% of Africa’s GDP

Makhura on the 6 major structural economic challenges for the Province:

  • Exclusion of the overwhelming majority of black people, women and youth as key participants in key sectors of the economy.
  • Dominance of a racialised monopoly sector and a subdued role of the SMME and co-operative sector.
  • Dominance of the primary and tertiary sectors, with a serious decline in the role of manufacturing in the structure of the economy.
  • Dominance of unskilled and semi-skilled labour over skilled labour force.
  • Small size of domestic market and skewed income distribution; which dampens national aggregate demand and economic growth.
  • Apartheid economic geography and spatial inequalities contribute towards higher costs of living for those on the periphery.

Makhura on 10 keys of radical economic transformation:

  • Changing ownership patterns to bring black people into the economic mainstream and creating black industrialists;
  • Changing the current industrial structure of our economy to privilege manufacturing and industrialisation through the processing of rich mineral resources and other raw materials locally;
  • The development of new modern, innovation-driven industries in the areas of high-tech, biotechnology, the green economy and blue economy;
  • Investing in skills development to change the skills profile of the citizenry in line with the new strategic sectors and modern industries;
  • Changing income distribution to ensure equity and decent living standards for all;
  • Transforming the apartheid spatial economy and human settlement patterns to integrate economic opportunities, transport corridors and human settlements;
  • Growing the SMME sector as a key driver of growth and revitalising and mainstreaming the township economy;
  • Strengthening the capacity of the state to direct economic development and enhance the competitiveness of strategic economic sectors;
  • Significant investment in economic infrastructure as the key stimulator of growth and investment;
  • Transformative partnerships between the private and public sector in addressing the developmental challenges outlined in the NDP.

Makhura on spatial reconfiguration:

We need deliberate and conscious action by the entire City region leadership to reverse spatial injustice and economic marginalisation of Sedibeng and the West Rand.

  • Over the next five years, more than R10 billion will be mobilised in public and private investments in the regeneration of the Joburg CBD as the seat of the provincial government.
  • In order to change human settlement patterns over the next five years, 140 000 housing units will be built in Lion Park, in Diepsloot East, in Fleurhof, Cosmo City, Malibongwe Ridge and Goud Rand.
  • As part of propelling spatial transformation, the City of Joburg is expanding the existing Reya Vaya Bus Rapid Transit System to cover more areas in the city. The City has invested a total of R 2 billion in this project.

Makhura on township economy revitalisation:

The Provincial Government has already committed more than R160-million to the township economy. In the 2015/16 fiancial year, we have allocated more than R 300 million to support township enterprises and cooperatives. At the same time municipalities have made substantial investments in the township economy focusing on township enterprise hubs.

  • Over the next five years, the City of Johannesburg, a component of the township economy, has set aside R3 billion, Tshwane R22 million and Ekurhuleni has made available more than R150 million to support the township economy and township entrepreneurs.
  • We are advocating for the establishment of a Township Economy Partnership Fund involving the corporate sector, township enterprises and government to promote investment in the township economy and development of township enterprises and cooperatives.

Makhura on massive infrastructure investments:

The infrastructure investment programme focuses on the following key areas:

  • Public Transport
  • Broadening the Energy Mix
  • ICT and Broadband
  • Water and Sanitation

In addition to those programmes:

  • The adoption 25-year integrated transport master plan focusing on developing a city region wide transport system and an efficient transport network to underpin spatial transformation and inclusive growth.
  • As part of strengthening our investment in public transport, we are conducting a feasibility study with a view of expanding the existing Gautrain Rapid Rail System.

Makhura said it is important to accelerate social transformation, particularly in terms of education, healthcare and employment.

Read Premier David Makhura's full State of the Province speech here.


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