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Gauteng, the South African province that\u2019s home to Johannesburg and the capital Pretoria, is struggling to grow and its shift from manufacturing and mining to a services hub is deepening inequality.<\/p>\n
That\u2019s according to the provincial government, which said urgent action is needed to arrest the decline. In a 153-page development plan presented on Thursday, it stressed the need to create new industries, boost employment and improve crumbling infrastructure.<\/p>\n
\u201cIf we can\u2019t get Gauteng right, we can\u2019t get South Africa right,\u201d Gauteng Premier Panyaza Lesufi told an event in Johannesburg to launch the report.<\/p>\n
Gauteng\u2019s stagnation is at the heart of the struggle to boost growth in Africa\u2019s most industrialised economy, which has languished for more than a decade. As mining and manufacturing have shrunk, new jobs in finance and other services have failed to stem unemployment from rising above 30%, one of the highest levels in the world.<\/p>\n
Since 2010 in Gauteng only government activities, financial and other services have grown with the report highlighting that finance alone now accounts for 40% of Johannesburg\u2019s economy, clustered in the affluent northern suburb of Sandton, well away from the decayed city center.<\/p>\n
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Even as the population expanded, manufacturing shed almost 200 000 jobs, shrinking the workforce to 528 000. At the same time, people employed in financial services rose to more than 1.2 million from 776 000.<\/p>\n
Finance curse<\/p>\n
\u201cGauteng, despite its role as South Africa\u2019s economic core and contributor of over one-third of national gross domestic product, is trapped in a cycle of stagnant growth, rampant unemployment, and deepening inequality,\u201d the report said. It noted that high-skilled bank jobs are a poor match for the region\u2019s large pool of predominantly low or semi-skilled workers.<\/p>\n
As a result, Lesufi\u2019s African National Congress risks losing ground to the Democratic Alliance, South Africa\u2019s second-largest political party, in local elections expected to be held later this year. Senior DA figure Helen Zille is running to be mayor of Johannesburg mayor and is campaigning on the ANC\u2019s track record in the city.<\/p>\n
The ANC lost its parliamentary majority in 2024 elections and now governs in an uneasy coalition with the DA at the national level.<\/p>\n
Gauteng\u2019s unemployment at 34.4% \u2014 above the national average \u2014 and youth unemployment of 54% is \u201ca profound crisis of exclusion and wasted potential,\u201d the report said.<\/p>\n
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While joblessness is a national problem, the DA-governed Western Cape, Gauteng\u2019s closest provincial economic rival, has slashed unemployment to about 19% by encouraging the growth of industries such as tourism and call centers for international clients.<\/p>\n
Gauteng\u2019s plan aims to secure R800 billion ($47 billion) in investment pledges by 2028 to address the problems caused by the \u201cbifurcating economy.\u201d It urges investment in infrastructure and sectors ranging from cannabis to the automotive, pharmaceutical, and defense industries through the use of incentives and cutting red tape.<\/p>\n
Still, the report comes to a sobering conclusion.<\/p>\n
\u201cA decade of subdued growth, infrastructure deterioration, and chronically high unemployment \u2014 exacerbated by global shocks and domestic energy crises \u2014 has trapped the province in a cycle of exclusion and underperformance,\u201d it said.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
#South #Africas #economic #hub #trapped #stagnation #Report<\/p>\n","protected":false},"excerpt":{"rendered":"
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