While Gauteng is well on course to becoming a globally competitive smart centre, home to some of the world’s most acclaimed manufacturers, there remains a need for greater emphasis on road infrastructure and public transport to ensure efficient movement of goods and people within the province, Gauteng Premier Mbhazima Shilowa said yesterday.

Speaking at the opening of the Gauteng Provincial Legislature, Shilowa revealed that steps are now under way to ensure that all infrastructure provision is primarily labour-intensive.

“Despite opposition from some in the private sector, we are forging ahead as this is the best way to respond decisively to provide jobs and fight poverty,” he argued.

He admitted that still more work had to be done to achieve the provincial government’s economic development objectives, but added that it was clear that the local government was on the right track.

Shilowa pointed out that Gauteng's economy has never been healthier and has, over the last five years, been growing at ‘impressive’ rates.

Figures released by Statistics South Africa last year, stated Shilowa, reflected that the province recorded an average real economic growth rate of 5,3% in 2002.

“The GGP has been growing at an average of 3,1% over the period 1996 to 2002. Gauteng’s contribution to South Africa’s GDP during 2002 was 33,3%, the largest of all provinces, confirming its status as the country's economic powerhouse,” he noted, adding that, together with the private sector and other stakeholders, government has made the correct interventions to take the economy onto a ‘higher growth trajectory’.

“We have created better conditions for increased investment and economic activity in the province,” Shilowa stated, pointing out that economic growth and development is of critical importance in government’s efforts to reconstruct and develop the country.

“Since 1994, we have been working very hard, in partnership with the private sector, workers and other stakeholders, to break the trend of economic decline and set Gauteng on a sustainable growth path,” Shilowa commented.

“We had a great vision to stimulate sustainable economic growth and create work opportunities through investing in strategic economic infrastructure, intervening to boost key growth sectors, and promoting trade and investment and skills development,” he added.

To achieve government’s vision of transforming Gauteng into a globally competitive ‘smart centre’, Shilowa said the province had to realign the manufacturing sector and move away from traditional heavy industries and low-value-added production towards more sophisticated, high-value-added production.

“In keeping with global economic trends and rapid technological development, we had to develop the capacity of Gauteng to play a meaningful role in the areas of information and telecommunication technology, biotechnology and research and development,” he said.

“The status of Gauteng as the preferred location for many corporations required that we also pay serious attention to the development of the financial and business service sector, with a focus on financial services and technology, auxiliary business services, transport and business tourism.

“As government, we matched our commitment by investing public money in key strategic economic infrastructure. In 2000, we launched Blue IQ, a multibillion-rand initiative to create strategic economic infrastructure to boost the competitiveness of key sectors of our economy and shift the economy onto a new growth trajectory,” Shilowa stated.