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Gauteng to spend more on township economies

The township economy will get a further boost as the Gauteng Provincial Government intends to increase its spending on township-based enterprises.

Premier David Makhura said his administration will continue to invest in economic infrastructure in townships, including the refurbishment of industrial parks.

“The Gauteng Provincial Government has increased its spending on township economies from R600 million in 2014 to R6 billion in 2016,” said the Premier.

He added that the Gauteng Provincial Government has reached a critical point, where 91 percent of the procurement budget of R46 billion is directed to empower black people, women, youth and people with disabilities.

“Of the 12 000 companies that conduct business with our provincial administration, 10 000 are historically disadvantaged individuals, including township enterprises.”

Premier Makhura said some of the radical measures his administration is undertaking, in partnership with key industry leaders, include:

  • Assisting and encouraging black firms and township enterprises to get involved in localisation and manufacturing initiatives so that they can produce goods locally and sell them to domestic and foreign markets.
  • Setting conditions for big companies doing business with government to sub-contract at least 30 percent of the main contract to qualifying black firms and township enterprises in a manner that ensures their meaningful participation.

Improving infrastructure

Another focus for the province this year is the maintenance of existing infrastructure, the lifeblood of the social and economic transformation agenda.

From 2013  to  2016, Gauteng’s infrastructure investment was R30 billion, translating into an average annual growth of 20.7 percent – the fastest growth rate in the country.

“As we rollout the R42 billion infrastructure budget over the next three years, we need to ensure that there is a decisive shift to true empowerment of black firms so that they become more sustainable and more transformative,” said Premier Makhura. 

He urged all municipalities to continue working with the province to deliver state-of-the-art infrastructure, create jobs and improve the quality of life for all residents.