1. INTRODUCTION • It is now a year since the beginning of the term of this fifth administration • The distinct feature of the fifth administration is radical social and economic transformation and the implementation of the National Development Plan, Vision 2030 • In response to that, in Gauteng we have adopted the programme for radical, transformation, modernisation and reindustrialisation of the Gauteng City Region • We are delighted to present our vision and plans to members of ASISA, who are the custodians of the bulk of South Africa’s savings and investments • We regard you as our partners in moving the Gauteng City Region forward and realising the NDP, Vision 2030 2. NATIONAL DEVELOPMENT PLAN VISION 2030 3. TRANSFORMATION, MODERNISATION AND REINDUSTRIALISATION OF THE GAUTENG CITY-REGION: VISION 2030 OUR VISION: We strive towards being a seamlessly integrated, socially cohesive, economically inclusive City Region; a leading economy on the African continent underpinned by smart, innovation-driven, knowledge-based and sustainable industries; an accountable, responsive, transparent and clean government and an active citizenry. 4. TMR: GAUTENG’S ROADMAP TO VISION 2030, TEN PILLARS • Radical economic transformation • Decisive spatial transformation • Accelerated social transformation • Transformation of the State and governance • Modernisation of the economy • Modernisation of the public service and the state • Modernisation of human settlements and urban development • Modernisation of public transport and other infrastructure • Re-industrialising Gauteng as our country’s economic hub • Taking a lead in Africa’s new industrial revolution 5. ECONOMIC OUTLOOK OF GAUTENG • Gauteng has evolved into an industrial hub, financial nerve centre and technological heartbeat of our country, owing to the impact of the mining revolution on SA’s path to industrialisation. • Today our province contributes more than 34% to our country’s GDP and contributes 42% of SA’s industrial output. The size of the Gauteng economy is 1.07 Trillion. • We also contribute more than 10% to Africa’s GDP. • The Gauteng Province by land is 1.4%, yet it remains the economic engine of the country. 6. PROVINCIAL CONTRIBUTION TO THE GDP 7. PROVINCIAL ECONOMIC GROWTH RATES: 2013 8. KEY ECONOMIC SECTORS OF THE GCR 9. FIVE CORRIDORS OF THE GAUTENG CITY REGION 10. CENTRAL CORRIDOR: JOBURG • It is the hub of finance and ICT industries • It also has a strong retail, services and pharmaceutical sectors • Has experienced significant deindustrialisation owing to the decline of the mining and related industries • Our interventions in this Corridor include: – Strengthening investment in ICT and roll out of broadband – Working with the City of Joburg to revitalise the Joburg inner-city. Over the next four years we will mobilise R 10 billion towards revitalising the Joburg inner City – Supporting he city’s bid to be the host of the regional headquarters of the BRICS Development Bank – Reviving old townships such as Kliptown and Alexandra 11. EASTERN CORRIDOR: EKURHULENI • It is the manufacturing, logistics and transport hub industries and the main anchor of the Aerotropolis (Airport economy) of the GCR; • Also experienced significant deindustrialisation following the decline of the manufacturing sector • Our interventions in this Corridor include; – Building an Aerotropolis around O.R. Tambo International Airport – This will be supported by the O.R Tambo IDZ, the main anchor being the jewellery manufacturing precinct – Strengthening the Corridor as a logistics hub through the Tambo-Springs logistics hub development (R 7, 5 billion investment) – Investment by PRASA in Nigel to build new locomotives (R 123 billion investment) – Roll out of BRT by 2016 ( R 500 million investment) 12. NORTHERN CORRIDOR: TSHWANE • It is our nation’s administrative capital. • Going forward, this will be the hub of the automotive sector, research, development, innovation and the knowledge-based economy • Our interventions in this corridor include – Strengthening our support to the automotive industry through the AIDC – Working towards the launch of an Auto City (R 50 billion investment) – Supporting R&D and the knowledge based industries through the Innovation Hub – Inner City revitalisation and the development of a new economic node in Centurion – Investing in a R525 million Business Process Outsourcing Park in Hammanskraal – Roll out of free Wi-Fi 13. WESTERN CORRIDOR: WEST RAND •Was primarily a mining economy which has experienced serious decline. •A new diverse economy will be created around tourism anchored around the Maropeng Cradle of Humankind World heritage Site , agriculture and agro- processing the Lanseria Airport City and renewable energy industries; •Specific interventions include – Enhancing the region’s horticulture potential – Supporting especially black farmer in the agro-processing industry – Building of a solar farm and plant working together with the University of Johannesburg – Unlocking further tourism potential of the Cradle of Humankind – Launch of the Lanseria Airport City as a new economic node and an extension of our Aerotropolis. This is an injection of R 10 billion over the next 10 years 14. SOUTHERN CORRIDOR: SEDIBENG • Encompasses the Sedibeng District whose economy was largely based on the steel industry which has been in decline with major negative effects on the region’s economy • Going forward we are diversifying the economy of the region to focus on tourism, agro-processing and agriculture • Earlier today we did sod turning for the Vaal River City Development (worth between R7 and R 11 billion). It will bring a much needed boost to the economy of the region • We want to position Sedibeng as the food basket of the Gauteng City Region • Increased tourism potential from the Vaal River, Vaal Marina and the Suikerbosrand Game Reserve. 15. TOWNSHIP ECONOMY REVITILISATION • Why are we intervening to revive the township economy? – Part of radical economic transformation – Transform townships from their historic role of being reservoirs of cheap labour into new and viable economic nodes – Ensure that money circulates in the township, establish townships as centres of production – Address some of the structural problems of our economy; the exclusion of the majority of black people (80% live in townships), women, the youth and people with disabilities – Increase access to markets, promoting productive activities, entrepreneurship and skills development, indigenous knowledge systems, financing and investing in the township economy, ensuring appropriate legal and regulatory framework and clustered development and infrastructure support 16. INFRASTRUCTURE INVESTMENT • In order to address the triple challenge of unemployment, poverty and inequality we are making three macro interventions – spatial reconfiguration, township economy revitalisation and massive infrastructure investments - jointly with municipalities and the private sector partners. • The five development corridors are key drivers of radical economic transformation, decisive spatial transformation and re-industrialisation, the second major lever to change the economy and space of the Gauteng City Region will be through a massive and well coordinated infrastructure investment programme, focusing on the following key areas: – Public Transport – Energy Mix – ICT and Broadband – Water and Sanitation – Kopanong Precinct – Aerotropolis • Over the next four years, the Gauteng Provincial Government’s total investment in infrastructure development will be more than R32 billion (USD 3,2 billion), while Gauteng municipalities will spend R94 billion (USD 9,4 billion) over the 17. 25 YEAR INTEGRATED TRANSPORT MASTER PLAN 18. PUBLIC TRANSPORT • We have adopted a 25-year integrated transport master plan, focusing on developing a city region wide transport system and an efficient transport network to underpin spatial transformation and inclusive growth. • We have functional rapid train that connects the three metropolitans, (The Gautrain). We are making progress in the expansion of the existing Gautrain Rapid Rail System. 19. PUBLIC TRANSPORT • We are implementing the BRT systems in the Metropolitan areas; – Joburg: Rea Vaya operational; – Tshwane: A Re Yeng operational late in 2014; and – Ekurhuleni: BRT in 2016 • We are investing in Freight and Logistics in the following areas; – Automotive Sector, Rosslyn in Tshwane; – Ekurhuleni, Tambo Springs in land port consisting of a real estate venture and a sprinter venture; – Vaal Logistic Hub – West Rand Logistic Hub 20. ENERGY • Transformation, modernisation and re- industrialisation will not be possible without paying serious attention to the critical issue of energy security, the GCR has adopted a plan with six interventions seeking to broaden the energy mix. • We are bringing in additional 1200 megawatts of electricity by increasing generation capacity of the current coal- fired power stations in Tshwane (Rooiwal and Pretoria West Power) and Joburg (Kelvin Station). • We are installing roof top solar panels for all our government buildings. Our estimate is that we have available 8 million square metres of roof top space suitable for this and will be able to generate 300-500 megawatts of electricity. • We are implementing a programme to retrofit our coal fired boilers with natural gas. • We are implementing the Tri-generation programme in six hospitals. Tri-generation is a technology that is able to produce electricity for heating and cooling using gas. • We are initiating the waste to energy programme. This programme is aimed at converting waste from our facilities into bio-gas. • We will continue our energy efficiency programme through which we aim to replace existing lights in all our facilities and government buildings with LED lights. We have thus far replaced 45 000 lights in our health facilities. • In partnership with the private sector, we will also invest in local solar technologies. In this regard, we are supporting an initiative by the University of Johannesburg and the private sector to build a manufacturing plant and a solar plant in Gauteng. • This R7 billion project will supply 500 mega-watts of solar energy and will create more than 15 000 direct and indirect jobs. 21. ICT AND BROADBAND INFRASTRUCTURE • ICT is a key contributor in the growth of the Gauteng City Region’s economy. • We are investing in e-governance models • ICT infrastructure investment R300 million over the next three years. • Private Public Partnership in achieving 100% connectivity over the next five years. • Support and building the local ICT industry. (Revitilising the Township Economy) • Rolling out ICT connectivity to public schools to facilitate e- learning. 22. AEROTROPOLIS • Includes the Expansion of ORTIA; – Establishment of a Gauteng IDZ (SEZ) – A Jewellery Park; A Science Park – Upgrading of road, rail, electricity & water and – Manufacturing and beneficiation • The Airport City (Aerotropolis) in Ekurhuleni will serve as a facility for export and imports to and from our Continent and the world; will also provide value added services . • It will also serve as a transhipment and distribution facility • The development around Lanseria Airport is the anchor of a new economic node we are building in the Western Development Corridor 23. FIGTHING CRIME AND CORRUPTION • Crime and corruption is a deterrent to higher levels of investment. • We have a adopted a comprehensive anti-corruption strategy. • We are implementing an open E- tender process. 24. HEALTH • Primary Health Care is the backbone of our health system. • NDP, Vision 2030-rolling out the National Health Insurance system. • Modernise our public health services; e-health system implemented. • As a percentage of GDP, health expenditure amounts to 8% • Opportunity in downstream segment within the pharmaceutical industry (logistics, warehousing, distribution & sales) is an opportunity to invest 25. SKILLS DEVELOPMENT • We continue invest in skills development and training, in partnership with institutions of higer. • Through the Gauteng City Region Academy we are investing more 180million to provide bursaries for students towards tertiary education. • We are also investing in the training and development of public servants in order to become globally competitive and deliver on our mandate as government. • In 2014 Gauteng was the number 1 province in terms of the performance of our Grade 12s with a total pass rate of 84,7%. • The gap between fee paying and no-fee paying schools, has been reduced from 18% in 2010 to 12,4% in 2014. • Our township schools also continue to improve their performance • The launch of paperless, technologically enabled “smart schools” and “schools and classrooms of the future will enhance our education outcomes • The number of learners in Grade R was close to 113 000 in 2014. • By 2019, we aim to have achieved full access to Grade R with over 200,000 learners in public and private schools 26. COMPETITIVE ADVANTAGE OF THE GCR •World-Class Infrastructure •World Class Financial Services •Cost Effective and quality of utilities •Development of Special Economic Zones (SEZ) •Prospective IDZ operator companies must apply for permits to develop and operate an IDZ •One stop shop for business: The Gauteng Investment Centre, to improve the easy of doing business. •We are now working towards one land use plan and have improved EIA approvals witjin three months.