16 July 2008
Chairperson;
MECs;
Members of the media:
My statement will cover the contribution made by the Department of Economic Development, the Gauteng Treasury and the Gauteng Shared Services Center in advancing the Gauteng Provincial Government's Five Year Strategic Priorities.
THE DEPARTMENT OF ECONOMIC DEVELOPMENT
The Department of Economic Development continues to play a crucial role in building Gauteng as a Globally Competitive City Region. An important part of building Gauteng as a Globally Competitive City Region is the Gauteng Growth and Development Strategy (GDS) which is implemented and coordinated by this Department.
Since 2005 we have spent more than R 350 million to fund various GDS projects. We are currently in the process of evaluating projects worth more than R 64 million that require funding from the GDS Fund.
To further accelerate the growth of the provincial economy and create more jobs and to continue building Gauteng as a Globally Competitive City Region, we will target specific economic sectors which have the potential to accelerate economic growth and create jobs.
These sectors include value added manufacturing, the competitive sports sector, the creative industries, the tourism sector, ICT infrastructure and services and the implementation of the Gauteng 2010 World Cup Strategy.
In line with this approach we have completed the business plan for the establishment of the Jewellery Manufacturing Precinct as part of the O.R. Tambo Industrial Development Zone project. This project forms part of our drive to support the value added manufacturing sector of the provincial economy.
Work is continuing to expand the Innovation Hub and the Automotive Supplier Park in Rosslyn and to build a new Supplier Park in Silverton together with the City of Tshwane. The revitalization of the Ekundustria Industrial Estate is also receiving attention.
Work on the development of the 30 Year GCR Plan has begun. The Gauteng Spatial Development Perspective and urban edge policy as well as the Gauteng Tourism Development Strategy are now at an implementation stage.
The Gauteng Enterprise Propeller, has approved funding to a total of 65 SMME's collectively amounting to R64.2 million. These businesses helped create and sustain a total of 779 jobs.
The GEP will this year target township businesses with both financial and non-financial support and will launch a Black Franchisor Development Programme.
Since inception in 1997, GEDA has facilitated over R10 billion worth of investment to the Gauteng economy.
The R7 billion Heineken plant and depot to be located in Sedibeng is one of the many catalytic projects GEDA is working on to grow and diversify the Gauteng economy.
International arrivals to Gauteng increased by more than 14.5% over the first 9 months of 2007, compared to the same period in 2006. This put the total number of visitors received by Gauteng at 3,2million, which is significantly higher than the 2,8million visitors in the previous comparable period.
Bed nights spent by international tourists in Gauteng increased by 1,2 million. This reaffirms the fact that Gauteng is more than just a gateway to South Africa, but is a visitor destination in its own right.
Currently there are 398 tourist attractions at the Cradle of Humankind World Heritage Site and there are now 274 attractions in Dinokeng. These attractions together employ an estimated 10 388 permanent and 3 429 casual employees.
The Gauteng Gambling Board has begun the process of rolling out limited payout machines.
The rolling out of these machines is intended to enhance economic growth and development, introduce new entertainment and recreational facilities. They will also generate additional tax revenue for the province and promote BBBEE and the participation of small and medium businesses in the gambling industry.
THE GAUTENG TREASURY The Gauteng Treasury continues to make significant progress in its efforts to improve financial management and accountability across the Gauteng Provincial Government, thus contributing towards improving the capacity of the state to deliver quality services.
Treasury also plays an important role in ensuring that local government works better. Currently the Gauteng Treasury working together with the Department of Local Government is providing financial management support to 11 municipalities across Gauteng.
Treasury will continue to assist GPG departments and agencies to ensure that there is a significant and sustained improvement in their ability to manage and account for the use of public funds.
We note that asset management is an area that leads to most matters of emphasis and qualifications in GPG departments. To address this challenge the Gauteng Treasury is assisting departments to develop and implement proper asset management strategies.
We will also assist departments and agencies to manage their cash-flows in an efficient manner and strengthen their capacity to manage risk.
Treasury has established the Gauteng Fund project office. This Office will explore alternative ways of financing for commercially viable strategic infrastructure projects in Gauteng.
The Fund will consider investing in, among others, the following strategic infrastructure projects:
The Blue Umbrella/ G-link project The GPG Kopanong Precinct; Energy generation projects; and Urban regeneration projects.
THE GAUTENG SHARED SERVICES CENTER
For the past seven years, the GSSC has played the role of an enabler, ensuring that GPG line departments accelerate the delivery of services to the people of Gauteng.
This the GSSC has done this by consolidating all back-office support functions within the shared service centre, thereby giving departments an opportunity to excel in their delivery of services to the benefit of the people we serve.
The GSSC's milestones include:
We have acted on the need to ensure that we reduce the time it takes to process payments for suppliers doing business with the Gauteng Provincial Government.
The GSSC has piloted and implemented e-invoicing as an automation initiative to dramatically shorten the amount of time it takes to process payments to suppliers to the Provincial Government;
The GSSC has facilitated an intake of learners and interns - again over-and- above the Provincial Government's target - in a bid to empower youth and alleviate poverty and unemployment;
We are indeed emboldened by the success of the GSSC over the last seven years.
At a recent Conference in London on "Driving Public Sector Efficiency through Transformation and Shared Services", the Oxfordshire County Council cited the GSSC as the only public sector shared service centre on the African continent and one of the biggest, in terms of scope, in the world.
The GSSC was also cited as an exciting example of successful, large-scale initiatives from which the County could learn.
Inspired by the progress we are making, we will soon change the GSSC's operating model from a Government Department to that of a Public Entity, or Agency.
Changing the GSSC into an agency will lead to the following benefits:
For more information contact: Percy Mthimkhulu (Department of Finance and Economic Development) on 0823791913