Gauteng ploughs billions into infrastructure

© Frank Gärtner – 123RF.com

Gauteng Premier David Makhura said the investment will have a massive multiplier effect on the economy of the Gauteng City Region.

On Wednesday, 24 May, Premier David Makhura met with the members of the Mayoral Committee (MMCs) and officials working within the infrastructure development, human settlements and economic development units in municipalities in the province.

The purpose of the meeting was to discuss infrastructure alignment and strengthen coordination among the spheres of government.

“We operate in a single integrated space, where the citizens move in between these municipalities and often do not feel the boundaries. We need to align our work in line with our vision of building Gauteng as an integrated and globally competitive city region,” said Makhura.

The meeting agreed that infrastructure spend was an important element in boosting economic growth and creating jobs.

The Gauteng Provincial Government commissioned KPMG to conduct an analysis on infrastructure spend in the province. The analysis, which covered the period 2013 and 2016, found that the provincial government’s spend of R30bn in infrastructure created 92,000 direct jobs and sustained 69,000 indirect jobs.

The study also found that infrastructure investment added R15bn to household income; raised R6bn in government revenue and created economic activity worth R26bn, with an average of 92c being added to Gauteng’s economy for every R1 spent by this government on infrastructure.

The meeting also agreed that with better coordination and alignment between the provincial government and municipalities, the infrastructure programme will have a greater impact.

Other areas of coordination and alignment include human settlements, transport, energy, information and communication technology (ICT) infrastructure and rollout of broadband and WiFi, township economy revitalisation and urban renewal programme.