The investment conferences hosted by the Gauteng Provincial Government (GPG) have not yielded the results Premier Panyaza Lesufi has been bragging about. Of the R518.1 billion investment pledged over the last two financial years, only R89.526 billion was invested in the Gauteng economy. Economic growth and job creation prospects will not be achieved as a result of the province’s failure to secure over R500 billion in investments.
While it is commendable that the province is actively lobbying the private sector to invest in Gauteng, the promised investment target would have been met had the environment been conducive for enterprises. However increasing crime rates, failing infrastructure, and frequent water and electricity outages are driving investors away from the province. Numerous private companies have closed in the province due the these challenges, with the latest company to shut its doors being food producer Libstar, after it went 25 shifts without water.
Investors are looking for business opportunities to expand their operations but are hesitant to invest in any province that presents potential risks. This is severely negatively impacting the creation of much-needed job opportunities.
This information was revealed by the Gauteng MEC for Economic Development, Vuyiswa Ramakgopa, in a reply to the Democratic Alliance (DA) Gauteng’s questions tabled in the Gauteng Provincial Legislature.
See the reply here.
According to MEC Ramakgopa, 20 investment projects to the value of R89 billion have commenced.
While it is not the government’s job to create employment opportunities, they do have a responsibility to ensure investor confidence. This can be achieved by ensuring businesses have access to a reliable supply of water and electricity while also controlling crime.
The DA Gauteng will write to MEC Ramakgpa to determine the reasons why the full investment pledges have not been received. Furthermore, we will also engage the Premier to ascertain what measures are in place to improve service delivery in the province, as this is one of the main obstacles hindering the private sector from investing in Gauteng.
Gauteng is the country’s economic hub, and the private sector must have confidence that proper service delivery occurs. The DA Gauteng has a plan to boost investor confidence. We would immediately assist municipalities struggling to provide services due to unfunded mandates and significant debts owed to Rand Water and Eskom. We will ensure that our police have the resources they need to fulfil their mandate.