State cannot rely on private companies for service delivery: Panyaza Lesufi

Gauteng’s economic plan aims to reduce reliance on third-party services

Gauteng premier Panyaza Lesufi delivers his state of the province address at the Nasrec Expo Centre last month. File image/Veli Nhlapo (Veli Nhlapo)

Gauteng Premier Panyaza Lesufi said the economic growth of the country hinges on the success of the province.

Speaking to investors and businesses on Thursday in Johannesburg, Lesufi said they had to commit to the goals outlined by the seventh administration under President Cyril Ramaphosa.

“The priorities of South Africa are very clear. It’s to eliminated unemployment,” he said, quoting Ramaphosa’s words to eliminate unemployment.

“Today, as the Gauteng government, we are the only province saying ‘in growing the economy, what is it that Gauteng should do?’”

The province was launching the Gauteng City Region Economic Growth and Development Plan [GCR-EDP] 2030 in Parktown.

The plan aims to reassert the province’s status as a globally competitive, integrated and sustainable economic hub.

Lesufi said to fight inflation, the government must do its job.

“Ensure that it offers quality public goods. You and I know the reason we have medical aid is that we don’t trust the public good called the health system. You and I know the reason we take our children to private schools is that the public education is not sufficient.”

He said the state did not even have the capacity to fix potholes on its own.

“We rely on third parties [private businesses]. After they fix them, their business ends, and when the rains come, the potholes reopen so they can get business again. We must build the capacity of the state so that we can do these things ourselves and not rely on third parties,” he said.

Lesufi said these priorities call upon the Gauteng government to respond with concrete plans.

“We have identified 11 sectors, but three are especially important. We must be the home of innovation, the home of new ideas and the home of artificial intelligence,” he said.

The MEC of economic development, Lebogang Maile, said the province offered higher levels of access to essential household and business infrastructure; however, it does have its challenges.

“The province has the most international migrants in South Africa ... the entrance of newcomers gives it an increasingly cosmopolitan character and vibrant social and economic life.

“Despite its importance, the Gauteng city region faces many challenges. These include poverty, unemployment and structural inequalities. High poverty and unemployment persist, creating a high cost of living and limiting economic opportunities for the growing population,” said Maile.

He added that the region was struggling with dilapidated infrastructure and frequent water shortages, among other problems.

“All these challenges give rise to rising crime and social insecurity. Gauteng is confronted with high crime, illegal mining and vandalism, particularly in urban centres.

“This plan signals a shift from policy formulation to focused, implementation-driven action,” he said.

He added that by enhancing collaboration, the plan strengthens alignment between the provincial government and municipalities.

“It is crucial that government responsibilities are distributed in this way. To address the region’s challenges and ensure that it reaches its full potential, different parts of government must work together.”

Sowetan


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