Budget vote a commitment to economic justice, inclusion and transformation
By Mandla Mpangase Sustainable economic growth requires significant investment in economic infrastructure. With that in mind, Gauteng Finance and Economic Development MEC Lebogang Maile identified eight areas that will help drive inclusive growth and job creation in his budget vote speech presented to the Gauteng Legislature today, 16 July 2025. MEC Maile presented a R1.71 -billion budget for the 2025/26 financial year “We are prioritising projects that drive industrial expansion, urban renewal, and township revitalisation, fostering an environment in which businesses can flourish and contribute to local economic development,” Maile said. In keeping with the national directive to drive inclusive growth and job creation, reduce poverty, and build a capable developmental state, the Gauteng Department of Economic Development has developed a comprehensive five-year strategy and an Annual Performance Plan with these three strategic frameworks front as its focus areas. A decade of economic challenges South Africa’s economic engine – the Gauteng province – has faced a decade of ongoing challenges, including a listless economy, rising unemployment, sluggish investor sentiment, and economic sectors that remain untransformed. In the decade 2014 to 2024 Gauteng’s economy grew by an estimated 8%, rising from R1.313-trillion in 2014 to R1.419-trillion 10 years later, an average of just 0.8% yearly. At the same time, however, the population grew by some 25%. The province’s economy also underwent structural changes, with finance growing to contribute 34% to provincial gross domestic product (GDP), up from 29.2% in 2013, while manufacturing dropped to 14.8%, from 17.9% in 2013. This shift is a significant one. “The manufacturing and construction sectors are crucial employers for our low-skilled workforce cohort,” MEC Maile noted. Like manufacturing, construction too is on a downward trend. Unemployment remains the most urgent socio-economic crisis. Quarter 1 of 2025 showed that Gauteng’s unemployment rate stood at 34.7%, with youth unemployment at 48.4%. However, Maile noted, the South African Reserve Bank projects a promising GDP growth of 1.3% for 2025. “Despite several headwinds threatening this forecast, including the risk of electricity constraints, infrastructure challenges, and trade tariffs concerns, there is potential for significant growth in the South African economy,” MEC Maile said. Eight focus areas The Department of Economic Development will focus on eight areas: Revenue enhancement. Strengthening the province’s fiscal capacity is at the heart of the department’s strategy. Economic infrastructure. Sustainable economic growth requires significant investment in economic infrastructure. Support for SMMEs and cooperatives. SMMEs play a vital role in job creation and economic transformation and need to be supported through financial assistance, capacity building, and expanded market access, ensuring their meaningful contribution to economic growth and employment. Structural transformation. This is about transforming historically marginalised sectors, creating opportunities for disadvantaged groups with a strong focus on Broad-based Black Economic Empowerment compliance and promoting inclusive growth. Building a capable state. Ensuring the provincial government has the institutional capacity, technical expertise, and governance systems necessary to drive inclusive economic growth. Revitalising the township economy. The township economy is a critical driver of employment and entrepreneurship yet continues to face systemic barriers such as limited access to finance, infrastructure deficits, and market exclusion. Re-industrialisation. This will enhance competitiveness, deepening localisation, and fostering sustainable manufacturing value chains. Research and development. This commitment will position Gauteng as a leader in innovation and the knowledge economy, driving long-term competitiveness. As part of its ongoing commitment to catalyse inclusive growth and regional industrialisation, the department has outlined key infrastructure development targets for the 2025/26 financial year, which are central to its objective of operationalising special economic zones across Gauteng by 2030. In addition, the department will also advance the Industrial Parks Programme which is designed to stimulate local manufacturing, support small, medium, and micro enterprises (SMMEs), and revitalise economic nodes across the province. Impact on TASEZ TASEZ is being allocated R122.5-million to continue its facilitation and provision of a secure high tech business environment for manufacturers within the automotive sector. The Gauteng Department of Economic Development is a strategic shareholder in TASEZ, along with the Department of Trade, Industry, and Competition, and the City of Tshwane. Gauteng’s funds go towards TASEZ’s internal bulk infrastructure. TASEZ is now in the process of rolling out its Phase 2 development. “During the next phase of our development, we will continue with our focus on supporting SMMEs through procurement spend and training opportunities and we will also be expanding our support to incorporate black industrialists,” TASEZ CEO, Dr Bheka Zulu, said. In addition, the budget vote also set an an ambitious investment target for Africa’s first automotive city – of attracting R1.5-billion. The growth of the SEZs and industrial parks is being led by the Gauteng Growth and Development Agency, with the aim of unlocking investment, driving innovation, and accelerating job creation. The department also plans to support 2 040 SMME beneficiaries across Gauteng during 2025/26. A total of R769.3-million will go to trade and sector development with a specific focus on SMMEs and cooperatives; R289.5 million will be directed towards integrated economic development services; R134.2 million goes to business regulation and governance; R275.4 million will be spent on economic planning, particularly in research and development; and R244.9-million has been allocated to corporate services and financial management. In his conclusion, MEC Maile said: “Economic development is crucial for improving living standards, reducing poverty, and enhancing the overall well-being of our society. “It drives job creation, attracts investment, and fosters innovation, leading to increased tax revenues and improved public services. “Ultimately, economic development strengthens communities and creates a more prosperous and sustainable future. It is for this reason that we must treat the work of this department as a crucial component of building a better Gauteng.” And in keeping with its own vision of being the benchmark for SEZs in South Africa, while contributing to the growth of the automotive sector, being a major creator of new businesses and a contributor to employment, transformation, and socio-economic development, TASEZ has taken the budget vote message to heart. “As a global role player, TASEZ is a catalyst for economic growth