A bold call to foster sustainable economic development and contribute to the economic development of Gauteng and  inevitably, South Africa.

The Gauteng Growth and Development Agency (GGDA) continues to harness opportunities to drive economic growth, facilitate trade, and foster investment in the Gauteng City Region. The organisation’s mandate is clear: to ensure that the province of Gauteng not only continues to provide the financial muscle that South Africa needs to meet its economic goals.

Gauteng: The Economic Powerhouse

Gauteng is undoubtedly the engine room of South Africa's economy. Our province boasts the highest nominal per capita GDP at R151,800, with the Western Cape following at R129,800. Despite slower nominal per capita GDP growth rates compared to other regions, Gauteng’s economic significance cannot be overstated. Our province has accounted for 0.9 percentage points of the national compound growth rate of 2.3% and contributed 41% to South Africa’s real GDP growth since 1996, surpassing the combined contributions of KwaZulu-Natal, the Western Cape, and the Eastern Cape.

The Gauteng city region, comprising key metropolitan areas; Johannesburg, Tshwane, and Ekurhuleni, is particularly noteworthy. As of September 2023, Gauteng's economic output reached R1.56 trillion, accounting for 34% of the country's total economic output. This is equivalent to the combined GDP of KwaZulu-Natal, the Western Cape, and the Free State. Moreover, Gauteng’s economy has expanded by 0.9% from its pre-pandemic levels, making it the third fastest-growing economy in the country.

Gauteng is the epicentre for growth and South Africa’s economic engine that serves as a significant launching pad for local and international businesses into African markets. There are currently 15.2 million people living in Gauteng. This is projected to grow to 18 million by 2030 and increase to be- tween 22 and 25 million by 2050. As the principle economic hub in South Africa, Gauteng Province is uniquely positioned to be a beacon for the goal of inclusive growth. It is also the province where exponential possibilities emerge.

Dynamism coexists with disparities, making the province one of the wealthiest city regions in Africa. Gauteng is the “leading financial nerve centre and manufacturing hub of sub-Saharan Africa with a contribution of 35% to South Africa’s GDP. This is not only a gateway to an integrating and ever more prosperous continent, but also a model for city region development in Africa and beyond. Gauteng is also home to the biggest and busiest airport on the continent, OR Tambo which facilitates the movement of over 21 million passengers annually, plus cargo, to all corners of the earth, including the major African centres, OR Tambo is the gateway to wherever anyone needs to go.

The Role of GGDA: Driving Sustainable Growth

The Gauteng Growth and Development Agency (GGDA) is the implementation arm of the Gauteng Department of Economic Development tasked with leading facilitating and managing sustainable job creation and inclusive economic growth and development in the Gauteng Metropolis Region. Through its subsidiaries, the GGDA has forged partnerships and created ecosystems that promote economic development and improve the competitiveness of Gauteng.

Moving Forward: Multifaceted Approach for Environmentally Sustainable Growth

To navigate these challenges and leverage our strengths we must adopt a multifaceted Plan: To handle these Problems and Construct our opportunities there is a need to put into practice a multiple perspective approach.

Enhancing Public-Private Partnerships: By fostering collaborations between the public and private sectors, we can pool resources and expertise to drive infrastructural development and economic growth.

Investing in Renewable Energy: Addressing power shortages through investment in renewable energy sources can stabilize our secondary and primary sectors, fostering more consistent growth.

Promoting Inclusive Growth: Ensuring that economic growth benefits all residents, particularly the marginalized, through targeted policies and programs.

Leveraging Technology and Innovation: Embracing technological advancements and innovation can drive productivity and create new economic opportunities.

Strengthening Regional Integration: Enhancing economic ties with neighbouring provinces and countries can open up new markets and opportunities for growth.

Conclusion

The eighth African economic outlook report revealed that South Africa has experienced an improvement of the real GDP from the year 1996 up to the year 2022 by 79%. Nevertheless, the growth in per capita GDP has been much slower, and therefore, the issue of inequality in terms of the distribution of the GDP can be seen. The COVID pandemic also exposed Gauteng as one of the critical drivers towards economic recovery and advancement in South Africa, but structural economic challenges and declining public expenditures are problematic for the region.

Insights supplied by the Gauteng Growth and Development Agency (GGDA); the implementation arm of the Gauteng Department of Economic Development, tasked with leading, facilitating and managing sustainable job creation and inclusive economic growth and development in the Gauteng City Region.