The Gauteng provincial government is positioning a new five-year economic development plan as a key tool to revive growth, attract investment and address stubborn unemployment in South Africa’s economic hub.
This as Gauteng Finance and Economic Development MEC Lebogang Maile tabled the provincial budget at the Gauteng Provincial Legislature on Tuesday.
Modest growth outlook
The economic strategy comes at a time when Gauteng’s growth outlook remains modest. Maile said despite global economic uncertainty, domestic economic activity in the province showed some improvement in 2025.
After declining earlier in the year, economic activity increased slightly during the second and third quarters.
Growth is estimated to have increased by 0.4% in 2025 and is expected to reach about 2.1% in 2026, before rising marginally to around 2.2% by 2027.
Slight drop in jobless rate
He emphasised that the labour market conditions have also shown slight improvement. Gauteng’s unemployment rate declined to 33% in the fourth quarter of 2025, down from 34.7% in the first quarter of the year.
However, the number of unemployed people in the province remains relatively high. According to Maile, it is over 6-million, underscoring the need for stronger economic expansion and job creation.
The plan, outlined in the latest socio-economic review and outlook for the 2026/27 financial year, forms part of the Gauteng City Region Economic Growth and Development Plan (GCR EGDP) for 2025 to 2030.
It aims to tackle structural challenges including spatial inequality, poverty, weak economic activity, unemployment, crime and the lack of entrepreneurship. The strategy will be driven through ten strategic pillars designed to strengthen the provincial economy while improving infrastructure and government capacity.
Effort to attract investment
According to the socio economic review and outlook for 2026/27, what is central to the plan is a push for re-industrialisation and stronger sector development, alongside efforts to attract and track investment into the province.
The government also wants to accelerate spatial transformation and expand economic and social infrastructure, while promoting sustainable economic development.
Other pillars focus on entrepreneurship and support for small businesses, preparing the workforce for future skills, improving safety and security, and building stronger state capacity.
Regional economic integration between municipalities is also expected to play a role in boosting growth.
Gauteng plans to translate these priorities into practical programmes, including the development of special economic zones and support for industrial parks.
Twelve-sector master plan
Authorities are also preparing a 12-sector master plan and new industrial corridors aimed at strengthening manufacturing and logistics networks.
Township economic development and the revitalisation of central business districts and former mining towns are also expected to receive attention as the province attempts to spread economic activity more evenly across the region.
Infrastructure development will underpin much of the plan as the strategy includes expanding regional infrastructure such as bulk services, roads and rail, aviation capacity, logistics networks, broadband connectivity and artificial intelligence capabilities, as well as renewable energy infrastructure.
The plan also proposes long-term interventions to strengthen entrepreneurship, including the design and rollout of school-based entrepreneurship programmes for primary and secondary schools.
Government departments are expected to focus on improving service delivery and simplifying regulatory and licensing processes for businesses.
Safety and security are also highlighted as a critical component of economic development. The province believes that improving security across the Gauteng City Region will help create a more resilient and attractive environment for businesses and investors.
