Johnathan Paoli
Gauteng Member of the Executive Council (MEC) for Finance, Lebogang Maile, has highlighted the impact of immigration, from both within the country and the continent on the Gauteng economy as having a positive spinoff.
Maile briefed the media on Sunday at the Gauteng Infrastructure Financing Agency offices in Sandton, outlining the key priorities of the seventh provincial administration and touched on the provincial budget and the state of Gauteng’s economy.
The MEC, in praising the growth of the province’s GDP, said Gauteng’s economy currently stood at R2.4 trillion and accounted for 34% of the nation’s gross domestic product (GDP).
“Gauteng GDP per capita grew from R24 095 in 1994 to R126 547 in 2022. This has made it the province with the most taxpayers and the highest average taxable income per taxpayer,” he said.
Maile said employment in Gauteng grew from 3.4 million in 1994 to 5.06 million in 2022 adding that despite being the smallest province in the country, covering only 1.5% of South Africa’s total land area, Gauteng is the largest province by population size and density.
He said migration is another key challenge facing the province.
“Since 1994, there has been an increase in the number of migrants across the African continent. In the SADC regions, most of the migrants are concentrated in South Africa,” Maile said.
The MEC said Gauteng has experienced the greatest positive net migration, in line with the historical pattern of the province experiencing the greatest population increase in the country.
Maile said the provincial government will proceed with its plan at creating a state bank that will focus on investing in under-invested areas and businesses while pointing out that South Africa is one of the most unequal countries in the world, reporting a per capita expenditure gnu coefficient of 0.67%.
The MEC said income inequality has risen in the post-apartheid period, despite fluctuation, and although the province has exhibited a higher annual mean and medium expenditure, Gauteng has the fourth highest inequality rate of all provinces.
Maile said according to UN estimates, just over 3 million migrants have entered the country, with most of them being situated in Gauteng.
He previously expressed concern over the African National Congress’ position within the province, and the impact it might hold on finalising a budget.
However, he remained optimistic over the party’s ability to cooperate with others in the provincial legislature, including the second-largest party the Democratic Alliance (DA).
“You can’t have a stable government if you don’t have a budget and you can’t pass certain laws so, as you know, in the legislature, there are other parties and we will engage with all the parties, including the DA, on a whole range of issues, so we are confident that we will be able to pass the budget,” Maile said.
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