Gauteng Economic Development and Finance MEC Lebogang Maile
Gauteng Economic Development and Finance MEC Lebogang Maile has confirmed plans to prioritize the establishment of a state-owned provincial bank to advance the economic needs of the grassroots majority in the province. This initiative is set to be a key focus area for the 7th administration as Maile aims to tackle the province’s pressing financial challenges.
By Thabo Mosia
Aiming for Economic Empowerment
Speaking from the Gauteng Infrastructure Financing Agency (GIFA) in Sandton, Maile outlined his bold economic vision, underscoring that a provincial state bank is on the cards. “By empowering the township economy, creating jobs, and fighting poverty, a state-owned bank could be a pivotal game-changer,” Maile emphasized. He noted that boosting the township economy through accessible funding for small businesses might bring significant relief.
Addressing Unemployment and Economic Challenges
Gauteng, the largest provincial economy in South Africa, with a GDP of over R2.4 trillion, faces daunting unemployment rates. “Gauteng’s unemployment rate at 33.7% is higher than the national average of 32.9%. Almost 40% of those entering the labour force in South Africa are in Gauteng,” Maile pointed out. To counter this, a state-owned provincial bank, potentially in partnership with the private sector, would focus on injecting much-needed capital into township businesses.
Enhancing Revenue Collection
Maile also stressed the need to improve revenue collection as part of boosting the province’s economic stability. “We aim to increase our existing own revenue resources and modernize processes to enhance efficiency, cost-effectiveness, and client satisfaction while eliminating loopholes in collection mechanisms,” he stated. These efforts are expected to be reflected in the next Medium-Term Expenditure Framework.
Infrastructure and Services Development
Revenue generated through financial and economic planning will be used to fund services and reindustrialisation efforts, with particular attention to infrastructure development. Maile highlighted the commitment to promoting compliance and leveraging public procurement to enhance the township economy. The provincial state bank will notably invest in projects characterized by low private sector investment but high social returns.
Supporting Marginalized Groups
Efforts will be intensified to support marginalized groups, including youth, women, and people with disabilities, to access development finance, artisanal skills, technology, and economic infrastructure. “We will increase our efforts to improve access for these social categories to development finance, technology, and economic infrastructure closest to their areas of residence,” Maile added.
Establishing Pharmaceutical Manufacturing
Maile revealed plans to establish a provincial government-owned pharmaceutical company prioritizing vaccine production. “A business case and full business plan for this initiative will be finalized by the end of this financial year,” he said.
Promoting Manufacturing and Reindustrialization
The department will also focus on investing in the manufacturing capacity of township enterprises to minimize reliance on procuring goods from major retailers. The Special Economic Zones (SEZ) programme, supported by intensive investment promotion, will be utilized to accelerate the reindustrialization of the Gauteng City Region.
Addressing Poverty and Inequality
The faces of Gauteng’s economic challenges remain youth, women, and people with disabilities. “We aim to tackle these by speeding up improvements in access to development finance, artisanal skills, technology, and economic infrastructure,” Maile explained.
Ensuring Structural Economic Transformation
A structural transformation of the regional economy is also on the cards, especially in sectors like chemicals, clothing, textiles, electronics, aerospace, and construction. This transformation will aim to increase skills, technology, and infrastructure growth in marginalised areas, enabling these regions to contribute more significantly to the economy.
Projected Outcomes
Over the coming weeks, additional plans for the Gauteng economy will be announced to ensure transparency and accountability. Maile underscores that the provincial state bank’s establishment will focus on aiding projects with low private sector investment but significant social benefits, simultaneously reducing reliance on external retailers through increased local manufacturing.
By prioritizing these initiatives, Maile aims to address the salient challenges confronting Gauteng’s fiscus and improve the standard of living for its residents, thereby setting a robust foundation for sustained economic development and social equity in the province.
_______________________________________
Download Here:
Read all our publications on magzter:
https://www.magzter.com/ZA/Central-News-Pty-Ltd/Central-News/Newspaper/All-Issues
________________________
Central News also offers Sponsored Editorial Content, Podcasts , Radio / Social Media Simulcast, Video Production , Live Streaming Services, Press Conferences, and Paid Interviews (Video/Audio) etc.
We guarantee exceptional exposure, reach, and engagement, with an excellent return on investment.
Advertisement:
To place your advert on our platforms (Print Newspaper or Digital Platforms) : Please email : sales@centralnews.co.za
For Business Related:
business@centralnews.co.za
Newsroom:
Send your Stories / Media Statements To: newsroom@centralnews.co.za
General Info:
info@centralnews.co.za
Office Administrator:
admin@centralnews.co.za
Whatsapp / Call: 081 495 5487
Website: https://www.centralnews.co.za
Social Media Platforms (@centralnewsza) : Linkedin, Facebook, Tiktok, Twitter, Instagram, Youtube
#centralnewsza #news #politics #business #sports #gauteng #freestate #southafrica