Tech drives Gauteng development

Johannesburg, 21 Aug 2009

The economic development of the province is closely linked to increased access to and use of technology, says the Gauteng Treasury.

Finance MEC Mandla Nkomfe states the latest report on the economic outlook of the province reveals that technology is a key driver in development.

The Provincial Economic Review and Outlook (Pero), which Nkomfe released yesterday, provides an analysis of the provincial economy. The report will inform the formulation and implementation of provincial policy.

He adds that the Pero will inform the implementation of policies that will halve poverty and unemployment in Gauteng. Improving skills and labour productivity in the province are vital requirements, he explains.

“Gauteng labour productivity shows an increasing trend throughout the period, meaning the province is more productive as more output is produced with fewer people employed. This indicates the increased labour productivity was not due to the amount of labour used, but due to the increased use of technology.”

Nkomfe notes the Gauteng economy is not completely shielded from the downturn in the global economy. This represents an opportunity for increased planned infrastructure expenditure.

“Expenditure on large infrastructure programmes, much of it taking place within Gauteng, was planned prior to the onset of the global recession and will serve to stimulate the national and provincial economies.”

Building networks

In the Gauteng Shared Services Centre budget speech earlier this year, Nkomfe said the department had concluded the business plan for the Gauteng Link broadband project. The initiative, also known as Blue Umbrella, was first announced by former premier Mbhazima Shilowa, in 2008.

Nkomfe added that, in the current financial year, National Treasury would consult with civil society to seek input and buy-in. A strategic investor conference, to engage business on the role it can play, will also be held, he revealed.

He emphasised the provision of ICT infrastructure for broadband capacity, saying it had become key to improving the provincial economy.

“Another buffer in the current economic climate has been the increase in investment related to the large infrastructural development projects under way. Many of these projects contribute positively to the province's economy. Infrastructure investment need to take place in a manner that enhances the functional links between the various parts of the provincial economy.”