‘Diversification is key to Gauteng’s growth aspirations’

World Cup fast-tracks infrastructure upgrades JOY ORLEK THE 2010 Soccer World Cup has fast-tracked Gauteng’s infrastructure upgrades enabling the province to accomplish in five years what would typically have taken 30. “Current construction activity is unprecedented and we need to use this period to reverse the underinvestment legacy of the past and create a world class economic and investment climate,” says Gauteng Economic Development Agency (Geda) senior manager: strategic communications, Barba Gaoganediwe. “Gauteng contributes a whopping 4 0% to the national Gross Domestic Product (GDP),” Gaoganediwe told FTW. “It’s the fourth biggest economy in Africa after South Africa, Nigeria and Egypt, with a global history around mining.” But the idea is to change this focus. “We have termed tourism the new mining in Gauteng. “We are also looking at work around mineral beneficiation – making sure that we add value to the products created here rather than just exporting raw materials. We are looking at Gauteng becoming the mecca for beneficiation across the continent.” He believes that the province has all the ingredients to make it work – world class logistics systems and a high tech financial sector. And there are already a number of success stories which provide practical endorsement of the policy, the cosmetics industry being a case in point. “We recently took some companies in the cosmetics field to showcase their products at an expo in Canada, resulting in partnerships and collaboration with a number of major international investors. “Cosmetics is a big industry for Gauteng with a lot of potential. We are concentrating on smart industries – biotech, broadbanding, cosmetics and the film industry among others.” Commenting on the film industry potential, Gaoganediwe has high expectations of Gauteng becoming “Egolihood”. “In Canada a month ago they told us about how brilliant the Gauteng sunshine was in enhancing their product. We are starting to see a number of productions being shot in Gauteng and are working with the Gauteng Film Commission to promote the province as a filming mecca.” Transport clearly plays a key role in the mix, and high on the Geda agenda is the construction around the Gautrain, a project that is creating opportunities far beyond its core transport focus. “It’s affording us an opportunity to install and upgrade some of our leading infrastructure,” said Gaoganediwe. “We are looking at even including our broadbanding pipes so that we can gear up for the future.” Geda would like to see Gauteng achieving status as the 12th biggest global city region in the world by 2015, following the likes of New York, Tokyo, Sao Paolo, Vancouver and Toronto. And this would be based on its economic offering and contribution to GDP which are the key measures of economic success. “If you rate us in terms of GDP contribution to the national economy we are rated 9th in terms of cities,” he added. But Gaoganediwe is under no illusions about the challenges that Gauteng faces. “To translate growth in the economy into wealth we need to create job opportunities and make a dent in areas of under-development and poverty reduction.” Crime too is a worry, but he points out that it’s a global phenomenon. And he’s confident that reinforcement of the police force is sending out the right message. “We are enhancing the partnership between business, government and civil society and with the addition of 30 000 police officers into the system not only to police 2010 but beyond, the fight against crime will be significantly stepped up. “In the past five years Geda’s contribution to the Gauteng economy in terms of global investment has been R7bn. We have set ourselves a target of R1.5- R2bn for this financial year and we are confident that we will treble it by then.”