Maile targets 3% economic growth for Gauteng

Gauteng MEC for economic development Lebogang Maile said if the province's economy can’t grow at a minimum of 3%, the country will struggle to reach its growth targets.

However, Maile is confident that the province can grow beyond 3%, provided there is clear planning and efficient resource management.

In Gauteng, we are managing budget cuts carefully to ensure service delivery is not compromised.Lebogang Maile

Speaking at the Budget Breakfast held in Parktown, Johannesburg, on Wednesday, Maile said Gauteng’s economic expansion must be deliberate and strategic, particularly in the face of fiscal constraints and growing service delivery challenges.

“We want to increase the size of the investment target. We are envisioning a Gauteng that is peaceful and safe, where economic growth is inclusive and impactful. In Gauteng, we are managing budget cuts carefully to ensure service delivery is not compromised.

“Despite reductions, we are not talking about retrenchments like other provinces. Instead, we are using our own revenue sources and strategic budget adjustments to maintain critical services,” he said.

Maile said President Cyril Ramaphosa had set a national GDP growth target of 3%.

“We have to engage with businesses directly to understand their needs and address the challenges they face. That’s why we have a programme called Firm to Firm, where we visit companies, discuss their concerns and find solutions.

“Many investors are ready to put money into our economy but they need reliable electricity, water and infrastructure. We must address these fundamental issues,” he said.

Answering questions from stakeholders and business associates on accountability in government, Maile emphasised the provincial government's role in monitoring and intervening in struggling municipalities.

“The good thing about our constitution is that it has the checks and balances. So, the constitution expects the government at the national level to be checked by parliament and it expects parliament to be checked by the judicial. The provincial government has got authority or responsibility to intervene in a municipality under Section 139. And the good thing about the constitution is it’s not talking about just intervention, taking over authority and all that. It identifies a whole range of interventions before a decision to take over can be taken.

“One of the things we can do well ourselves is the institutionalisation of governments. Things in the government must not work depending on who’s there in the government. So, our institutions must be strengthened. You can’t talk about building the economy if the government is not paying service providers. That’s the simplest thing,” he said.

Maile said the provincial government wanted to settle its debt.

“We are paying around R390bn in debt and that amount is expected to rise to more than R400bn. The national debt-to-GDP ratio is out of control, reaching more than R6-trillion.

“Borrowing more is not a sustainable solution – we need to stabilise and eventually reduce this debt. The National Treasury is not increasing spending because they are focused on fiscal consolidation. We support this approach and have been part of these discussions in the budget council,” he said.

Maile reiterated that Gauteng’s budget is structured to ensure stability and long-term economic growth.

“We cannot allow a R527bn budget to be on autopilot,” he said.

“We must manage it strategically to deliver real change for the people of Gauteng.”

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