Deputy President Shipokosa Paulus Mashatile: Gauteng Investment Conference

Programme Director;
Premier of Gauteng, Mr Panyaza Lesufi;
Ministers, Deputy Ministers and MECs present here today;
Mayor of the City of Johannesburg, Councillor Dada Morero; Mayors of Ekurhuleni, Tshwane, Sedibeng and West Rand and all Councillors present ;
Our esteemed Business Leaders and Sector Representatives;
Ladies and Gentlemen,

Good afternoon,

Let me take this opportunity to express my gratitude for the invitation extended to me to participate in this crucial event that is set to promote Gauteng as a leading global investment destination.

I would have loved to join you and participate physically with all conference delegates, but due to Cabinet commitments and urgent Parliamentary obligations, such as the adoption of the fiscaI framework I am unfortunately not able to do so.

This address takes place a day after Parliament voted in favour of the fiscal framework as presented by the Finance Committee led by Dr Joe Maswanganyi in the National Assembly.

Fundamentally, ours is a commitment to redress and transforming not only our economy, but the lives of our people as well. Any view on the budget that seeks to reject the commitment our government has to the vulnerable, and marginalised, is not a budget that is for the people and must therefore be rejected unequivocally.

This budget process has among other things, highlighted that in South Africa, democracy exists and that it works. As we continue our efforts towards building an equal, united and prosperous society we should be encouraged by this. Our country is a country determined to achieve growth and provide a quality of life for all South Africans.

Ladies and Gentlemen,

Gauteng is and has always been a province with immense potential, a place of rich cultural heritage, vibrant communities, and a thriving economy. It has many established industries, including automotive, finance, manufacturing, mineral beneficiation, agro-processing, and tourism.

The story of Gauteng’s economic transformation is one of resilience, innovation, and strategic investment. From its humble beginnings as a mining hub in the late 19th century, Gauteng is today, the industrial, and technological hub of South Africa.

Today, Gauteng contributes more than 34 percent to South Africa’s Gross Domestic Product (GDP), making it the country’s economic powerhouse. The province hosts the headquarters of major corporations and multinationals, making it a gateway for investment, not only in South Africa, but also across the continent of Africa. With this rich past and a strong base, we need to think about how to grow the economy and make this Province more resilient for decades to come.

As leaders in different fields, we need to keep working together to make Gauteng a strong and thriving province for all its people. Political leaders must implement initiatives, policies, and innovative strategies to advance Gauteng, while the private sector must generate employment, provide goods and services, contribute to industrial development, facilitate diverse business operations, and to boost provincial revenue.

We need to emphasise that we are committed to building a future for Gauteng that is marked by sustained and impactful economic growth, this notwithstanding some of the challenges that we face as a country and globally.

As part of this commitment, the former Premier of this province, Mr David Makhura, accompanied by his adviser Mdu Mbada, Brian Hlongwa, Ntombi Mekgwe, and I went to China in 2008, to benchmark the country's plans for future development, using this province as pilot.
When we arrived, we were presented with the Beijing 2065 Plan. This plan presented a futuristic city development with advancements in technology, sustainability, transportation, green infrastructure, and a focus on clean energy.  

That visit laid a foundation for us to focus more on future plans and initiatives to build the Gauteng Province that works for all of us. We learnt that planning is critical for reaching goals because it gives you direction, lowers potential risk factors, and helps you use your resources more effectively, all of which leads to improved outcomes.

As a result and through many studies, we are pleased to witness that Gauteng has now developed long-term plans and innovative ideas. This plan includes, among other things, the Growing Gauteng Together 2030 initiative (GGT2030), which responds to a crucial issue of how we can build the Gauteng of our dreams, the kind of society envisioned in the Freedom Charter and our Constitution.

The GGT2030 plan of action also seeks to develop a sustainable, capable state where millions of people will be empowered to take charge of their destiny.

The development of the Growing Gauteng Together 2030 Plan of Action was guided by the Indlulamithi Scenarios 2030, specifically, the Nayi Le Walk scenario, which identified social and economic drivers that could significantly improve the lives of citizens with pro-poor income distribution, inclusive growth, and meaningful social cohesion.

It was also done using available data sources, such as the linked macro-micro model for South Africa developed by the Applied Development Research Solutions, which considers asking the what-if question, as a guiding principle towards policy making and social change.

We are therefore of the conviction that the updated GGT2030 will lead to increased growth in tourism, trade, catering, lodging services, agricultural exports, worker productivity, and key sector competitiveness. Particularly as it emphasises the need for industrial policy enhancements such as industrial financing incentives to stimulate industrialisation and alleviate trade imbalances.

Distinguished Delegates
Another great intervention in this province was the Integrated Transport Master Plan for Gauteng, which is a 25-year plan developed in 2013 to address transport challenges and ensure sustainable mobility in the province, focusing on integrating various transport modes and promoting public transport.

The Integrated Transport Master Plan is already advanced in its implementation of programmes to integrate land use and transport planning in the Gauteng City Region, focusing on sustainable socio-economic development and job creation. It continues to prioritise public, non-motorised, and efficient freight movement, addressing mobility and accessibility needs, and accelerating digitalisation.

The Gautrain, a world-class rapid transit system, is a shining example of forward-thinking infrastructure investment. It is a rapid, efficient, and reliable public transport system that enhances the economic functioning of the Gauteng-area and improves the quality of life for its users.

The Gautrain system was designed with the potential for future expansion and the addition of new routes and stations. Premier Lesufi, we are delighted that plans are in place for an upgraded Gautrain railway service, which is intended to provide for previously under-served communities where the majority of workers reside.
We also commend the plans to expand Gautrain into Limpopo, featuring a 420km high-speed rail line connecting Pretoria to Polokwane, aiming to enhance transport and economic growth. Since it will be able to reach the majority of people, the plan will increase its financial viability.

Ladies and Gentlemen,  

The reason I am highlighting so much of Gauteng's activities and plans is because of my conviction that if you fail to plan, you are actually planning to fail.
Consequently, such failure causes us to fall short of our ability to achieve our commitment to providing fundamental services required to improve the lives of our people in a positive way.

Therefore, at this investment conference, we need to come up with concrete plans and concepts that will attract investment into the province. Most importantly, the Provincial Government should collaborate with the private sector to develop effective strategies and innovative solutions that generate employment opportunities and further expanding of industries to advance Gauteng.

We must reinforce the province as the epicentre of innovative ideas that can be implemented throughout the country. Our plans and commitments at this conference should concentrate on unlocking Gauteng's economic potential, which will directly contribute to the growth of our national economy.

We need to understand that Gauteng has long been the economic engine of South Africa, and its success is intrinsically tied to the prosperity of our nation. As I have said earlier, the province alone is the largest contributor to the country's GDP, accounting for approximately 34 percent of the national GDP.

I believe that Gauteng can further increase its GDP contribution by diversifying its economy beyond its traditional strengths and markets. This means that the province can also focus on investing in emerging sectors like technology, innovation, and renewable energy that have the potential to drive our future growth plans.

This does not imply that the province should disregard its current initiatives; rather, that it is essential to maintain investment in infrastructure, such as transport and logistics, to attract additional investment and stimulate economic activity.

Infrastructure is sometimes referred to as the "wheel of economic activity" since it creates an environment conducive to productive activities and promotes development.

Moreover, the province should invest in education and skills development programmes to ensure that the workforce is equipped to meet the demands of a growing economy. The highly sought-after skills include digital literacy, data analysis, artificial intelligence, cybersecurity, and renewable energy technologies.

Therefore, investing in Gauteng is not just about financial returns; it is about investing in the future of our people, our communities, and our nation. It is about creating sustainable partnerships that drive economic development and social progress.

I need to also add, Ladies and Gentlemen, that Gauteng plays a critical role in President Cyril Ramaphosa's ambitious target announced during the 2025 State of the Nation Address, to lift economic growth to above three percent of GDP.

I am therefore confident that the province can achieve more than 3% economic growth, provided there is clear planning and efficient resource management. Indeed, to create this virtuous cycle of investment, growth, and jobs, we must lift economic growth. I believe that this conference offers a platform to set even more ambitious investment targets.

The National Government has committed to increasing investment in infrastructure and people, while upgrading and maintaining the infrastructure we currently have at our disposal. We have committed to spend more than R940 billion on infrastructure over the next three years. This funding will support our roads and bridges infrastructure rollout; build dams and waterways; modernise our ports and airports; and power our economy.

We are committed to public ownership of strategic infrastructure for public benefit, while attracting private sector investments to enhance services and focus revenue on public service provision.

Ladies and Gentlemen,

Gauteng is well-positioned to overcome its current infrastructure deficits and create a future-ready urban landscape to meet the needs of its growing population.

It is also crucial for the province to integrate its departmental coordination and avoid working in silos when addressing its infrastructure requirements.

Gauteng's regional integration is therefore crucial in this regard, as it focuses on creating a cohesive, sustainable, and economically inclusive Gauteng-City Region, emphasising collaboration between government, business, and civil society to address challenges and unlock the region's potential.

We must work together to create sufficiently agile and well-functioning infrastructure that supports industrial growth, promotes innovation, and attracts domestic and foreign investors.

Physical infrastructure also needs to be sufficiently robust to withstand the impact of climate disasters while also incorporating clean energy technologies and systems to adapt to an ever-changing climatic environment. Above all, Gauteng needs to invest in maintenance of its infrastructure to ensure long-term functionality, safety, and economic viability.

The Gauteng Provincial Government and the City of Johannesburg need to invest more in infrastructure programs, particularly within the inner city. In August 2024, the National Council of Provinces of the seventh Parliament in Cape Town called for the government to collaborate with the South African Local Government Association (SALGA) to form a committee to conduct annual assessments of city cleanliness and give awards to the cleanest city.

In February, the SALGA NEC Lekgotla committed to a 'Clean City Campaign' to clean towns and cities. We want it to start here in Gauteng, in Johannesburg. The goal is to set an example for other cities to follow suit, attracting more investors and creating jobs for local communities, especially the youth. Such revitalisation must begin with fixing potholes and general maintenance of the current infrastructure.

Even in this conference, we must not shy away from this. It breaks all our hearts to utilise roads that are not fixed or maintained over a long period of time, when municipalities have resources at their disposal and an obligation to do exactly that.

Ladies and Gentlemen,

To attract more investment, a province must enhance the ease of doing business. Through the Township Economic Development Act, the province is moving in the right direction.

The Act is a component of the Gauteng Provincial Government's effort to formalise and create township enterprises to make them easier to manage and to support a healthy township economy through infrastructure and finance. It encourages the township-based businesses to join the mainstream economy and occupy space in the Gauteng City Region's Special Economic Zones.

Further, the Department of Small Business Development and the Department of Cooperative Governance and Traditional Affairs are collaborating to offer local municipalities guidelines to reduce red-tape and support small businesses, thereby reducing regulatory burdens, creating an enabling business environment, and maximising business opportunities.

Honourable Premier, we know that crime significantly impacts investment, both directly through increased costs and indirectly by deterring businesses and investors, and ultimately hindering economic growth and development. It is for this reason that we must work hard to eliminate crime, including extortion by those who want to exploit the state and its people for their own selfish gains.

Government is working to restore law at construction sites and combat criminal extortion. Since November last year, the South African Police Service have investigated 745 construction-related cases, leading to 240 arrests.

Gauteng and the Western Cape are the primary locations, highlighting the scale of the problem.

In the fight against crime, we appreciate the province's efforts, through its Crime Prevention Wardens initiative who are tasked with augmenting crime prevention efforts in Gauteng. Our vision is for a peaceful and secure Gauteng, where economic growth is inclusive for all to prosper.

Ladies and Gentlemen,

We strongly encourage investors to capitalise on Gauteng's strategic location, which offers a competitive edge in the Southern African region for trade and investment. It is the gateway to the rest of South Africa and the African continent.

As we gather here today, let us reaffirm our commitment to building a future where innovation thrives and where entrepreneurship flourishes.

To put it simply, at the end of this conference, we need to be able to identify investment possibilities in areas like manufacturing and industrialisation, ICT and the digital economy, infrastructure and transportation, green energy and sustainability, boosting SMME’s, as well as ensuring we attain inclusive economic development.

I therefore encourage investors to explore Gauteng's numerous opportunities, collaborate, innovate, and invest in projects that will yield returns and positively impact the lives of the people.

Together, we can create a brighter future for Gauteng, one marked by growth, prosperity, and sustainability. We should continue to attract investment in our province and country to alleviate poverty, drive inclusive economic growth, and create jobs.

I wish this inaugural Gauteng Investment Conference all the success in its deliberations and plans that will be adopted going forward.

Programme Director, I thank you!