Gauteng Premier declares ‘open door policy’ for businesses

3rd December 2014

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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In a move to entice the private sector to buy into the province’s overarching ten-pillar transformation, modernisation and reindustrialisation (TMR) strategy, Gauteng Premier David Makhura has declared an “open door policy” to businesses wishing to engage with the provincial Cabinet. 

The former African National Congress provincial secretary told a breakfast briefing with business on Wednesday that the province was “ready to pull out all the stops” to ensure backing for its five-year plan, adding that the Gauteng leadership wanted to “see things from [the business person’s] perspective”.

“Buy-in [from the private sector] is crucial to us realising this five-year plan and driving our transformation agenda, as there’s an intricate link between our ability to fulfil our mandate and our ability to attract investment into the Gauteng city-region (GCR).

“Our goals are not attainable without a compact from the various role-players, and it is against this backdrop that we are holding this dialogue. This conversation is important in light of apprehensions from the private sector that government’s common approach is inconsistent,” he said at the event, which was organised by the provincial government.

Makhura further revealed his intention to build consensus and elicit private sector support for the strategy through regular interactions with business, adding that he wanted to unlock the capacity of the State to be responsive to private sector concerns, particularly in terms of unnecessary bureaucracy and administration.

“That is the way we are going to work for the next five years – we want to know what you think, including where we get things wrong and where government isn’t acting [properly],” he asserted.

The province’s five-year TMR strategy would centre on the economic development of the GCR, which Makhura explained comprised the City of Johannesburg; the Ekurhuleni metropolitan municipality; the City of Tshwane; the West Rand district; and the Sedibeng district municipality.

This cluster of subeconomies contributed over 35% of South Africa’s gross domestic product (GDP) and added around 10% to the continent’s GDP, the Premier maintained.

“The GCR requires a dynamic governance model and responsive political leadership that must promote creativity, innovation and future focus instead of bureaucracy and power play.

“As such, we want to create more consolidated, capable municipalities, as the presence of 12 municipalities [in the GCR] reduces the ease of doing business. Too many layers of governance will kill the GCR economy,” he commented.

Under the TMR strategy, Makhura elaborated, the province planned to spend up to R62-billion on infrastructure developments and R1-billion on the revitalisation of township economies – areas where the private sector could participate.

He further committed to reducing the cost of doing business in the GCR through the TMR plan, noting that it would address issues of administrative efficiency; improve transport and logistics infrastructure; drive skills development; decrease the cost of inputs, such as electricity and water; and address crime and corruption.

“Corruption was a key issue of concern that emerged from a recent survey of business leaders in the province, who said that, to get something done, they were asked to pay someone [in government].

“We now want to change [our] governance model and structure,” he revealed.

The province would, meanwhile, look to adopt an energy plan for the province and would next week hold an end-of-year Cabinet “lekgotla” to finalise all plans and budgets for 2015.

Makhura would also next year launch the Gauteng Business Platform to enhance regular consultation with business, as well as appoint an economic advisory panel to counsel the province on decisions made in light of economic and market conditions.

“Sometimes government takes the wrong decision – when we think we’re helping, we’re destroying businesses. This panel should assist in preventing that,” he conceded.

Makhura would, meanwhile, not be drawn on the contents of the e-toll review report he had received over the weekend from the panel he appointed to investigate the socioeconomic effects of the system.

“The report is embargoed and the issue of e-tolls is closed now. The debate is done and the report is written,” he stated.

Sapa reported on Monday that the provincial government would first “seriously” study the report, after which it would be tabled in the provincial legislature.

The process would conclude early in the new year, after which the province would make a determination and release a report.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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