More money for Gauteng ICT projects

Johannesburg, 04 Mar 2005

Gauteng provincial government has increased the budget allocation to ICT-related projects.

This comes after yesterday`s tabling of the Gauteng provincial government budget, which promised hundreds of millions of rands to fast-tracking the Gauteng Online initiative, growing the Gauteng Shared Services Centre (GSSC) and supporting small business development in the province.

Finance and Economic Affairs MEC Paul Mashatile said the R33.5 billion budget for the coming year would fund priorities of the provincial government as outlined in the five-year strategic plan and the Gauteng Growth and Development Strategy (GDS), which will be launched later this month. ICT has been identified as a crucial factor in growing Gauteng`s economy.

"We will continue with the implementation of Blue IQ projects and, where necessary, begin the process of commercialisation of these projects," the MEC said. Blue IQ projects have been allocated R170 million, a 10 percent increase on last year`s allocation.

Blue IQ is Gauteng provincial government`s initiative to develop the economic infrastructure for specific major projects in smart industries, high value-added manufacturing and tourism.

Among its projects is the development of SA`s first internationally accredited science park - The Innovation Hub - a high-tech cluster currently nearing completion in Pretoria.

In addition, the provincial government has allocated R585 million towards the effective functioning of the GSSC.

Mashatile said: "This allocation increases by 22.8% from R 476.4 million in 2004/2005. This will increase the efficiency of providing back office support to GPG departments and includes an amount of R48 million to finalise and implement the e-governance strategy."

The GSSC was established to ensure integrated and holistic administrative and operational support to GPG government departments in respect of human resource management, internal audit and information technology; procurement and financial services.

Fast tracking Gauteng Online

Mashatile said the government was committed to addressing education challenges such as

promoting literacy and numeracy and improving learner support materials.

In line with this, more money has been allocated to fast-track the Gauteng Online project, which aims to supply every Gauteng school child with access to PCs and the Internet.

"An amount of R100 million of the education budget has been earmarked for the implementation of Gauteng Online to fast-track the provision of computers to all public schools in the province," said Mashatile.

Growing SMMEs

As part of the drive to promote the development of small, medium and micro enterprises (SMMEs), the provincial government has committed an estimated R300 million over the next three years towards the SMME Agency, to be launched in April. The Agency will provide both financial and non-financial support to SMMEs in the province.

"The tax relief measures for SMMEs announced last week by Finance Minister Trevor Manuel will also help boost this sector," said Mashatile.

Globally competitive city-region

Local government players are to meet in Kyalami next week to further discuss ways of making the province a 'globally competitive city-region` and using ICT to help 'bridge the first and second economies`.

Noting that Gauteng accounts for 33% of South Africa`s gross domestic product (GDP) and about 10% of Africa`s GDP, Mashatile highlighted the importance of sustained growth of the province``s economy.

"Gauteng is classified as Africa`s fourth largest economy (after South Africa, Egypt and Algeria) and as the economic hub of the sub-continent. As such Gauteng is a major determinant and contributor of economic and social development in the continent," he said.

At Gauteng`s Growth and Development Summit held last year, provincial leaders identified the growth of smart industries such as ICT as one of the six key growth sectors that would assist in creating jobs and increasing productivity.

Premier Mbhazima Shilowa said in his Opening of Legislature Address last month that these factors would be major drivers in pushing the province`s performance to the targeted eight percent economic growth rate by 2014.