Makhura’s Sopa promises, from dagga to a flourishing township economy

With South Africa facing a stagnant economy and widespread unemployment, Gauteng Premier David Makhura today delivered his state of the province address (Sopa), pledging to stimulate economic growth, with plans which include tapping into the potentially lucrative dagga industry.

Makhura has become the second premier to show interest in cannabis, following Eastern Cape Premier Oscar Mabuyane, who has been hard at work to woo investors into the dagga-rich province.

Amid loud cheers from the public gallery, Makhura was quick to explain that Gauteng planned to focus on “using dagga for medicinal use only”.

“Working with the department of trade and industry, we are looking at the industrialisation and agro-processing of the cannabis industry for medicinal purposes, which include skin care,” said Makhura.

Highlights of Makhura’s Sopa speech included a pledge to:

• Create three fully-operating special economic zones in Ekurhuleni, Tshwane and Sedibeng by 2025, as well as a special agro-processing zone on the West Rand.
• Create 15 revitalised industrial parks, 12 agri-parks and five agro-processing facilities across five corridors.
• Develop Gauteng into becoming the biggest inland logistics hub and dry port in Africa – the Transnet Tambo-Springs Logistics Getaway by 2030.
• Spend R60 billion in the next five years in building and maintaining infrastructure – creating an additional 100 000 jobs and facilitating the development of 50 black industrialists.
• Upscale the provincial welfare-to-work programme to enable 100 000 unemployed young women currently dependent on state grants, to become self-employed in the township-based economy.
• Spend R4 billion annually in buying goods and services from 2000 township enterprise.
• Support for 50 emerging black farmers and 20 black agro-processors “to help turn them into full-scale commercial agri-food enterprises.

On the ailing Gauteng infrastructure, Makhura said: “From May this year, the installations, repairs and maintenance on our public facilities will be done by artisans from townships. We are extending this programme to willing private sector partners.

“I am happy to report that the German Chamber of Business is very keen to bring German companies to support this initiative.”

In line with a commitment he made last year, Makhura said the provincial government would in June introduce the Township Economic Development Bill to empower previously disadvantaged businesses.

“The new law will nullify all by-laws that inhibit, frustrate and suppress the operations of the SMMEs (small micro and medium enterprises) and township businesses to create wealth and employment,” said Makhura.

Significant work was “being done with the taxi industry and municipalities to rezone and develop taxi ranks into retail and commercial hubs that will create markets for local mechanics, panel-beaters, retailers, food sellers and manufacturers”.

On the energy crisis, Makhura said the Gauteng government adopted the energy security strategy and established the Gauteng energy office in 2016.

“The key objective was to diversify our energy mix and expand energy generation capacity in the three metropolitan municipalities.

“However, the strategy could not be implemented because there was no national policy to support decentralised energy security initiatives.

“Some of our metros undermined the initiatives by putting politics before the interest of the entire Gauteng,” he said.

Makhura said he welcomed initiatives, announced by President Cyril Ramaphosa – during the state of the nation address – to allow municipalities, the private sector and citizens to bring additional capacity to the grid from renewable energy.

“Through the Gauteng Growth and Development Agency, we intend to increase exports to the continent by 15% by 2025. In 2030, intra-Africa trade should contribute to the creation and maintenance of 150 000 jobs, up from 50 000. We also want to increase exports to major regions of the world by 10% by 2025,” Makhura said.

Same ol’, same ol’:

Makhura’s Sopa failed to impress everyone though, with some saying his speech was a rehash of a delivery he presented last year – lacking in achievements, milestones – and in some parts plagiarising President Cyril Ramaphosa’s state of the nation address (Sona).

SA Communist Party activist Ndzipo Kalipa, a former standing committee public of accounts member in the Gauteng legislature, said Makhura repeated what he had said in last year’s Sopa and “failed to show how the ANC-led provincial government made tangible achievements on its objectives”.

“A year ago, the premier of Gauteng told us about developing a township economy and empowering locals,” said Kalipa. “But, where are the milestones that demonstrate what he has achieved in black townships? He talks about a social compact in 10 high growth sectors when he mentioned the same compact a year ago.

“All we see in our townships is a mushrooming of malls which have squeezed small family-owned shops out of business. Where is their social compacts when in Soweto about R6 billion is flowing out of black townships to banks – not benefitting the SMME (small micro and medium enterprises) sector.”

Kalipa said Makhura should be explaining how he plans to revamp his government as a caring one, particularly when looking at the plight of small businesses.

“Public procurement in Gauteng is not transparent – serving a certain group of people with strong political and factional links. How does one talk job creation when in Ekurhuleni alone you have a 36% unemployment rate? If he is talking about the public works programme part-time jobs, lasting for only two months, he is not talking real jobs.”

Makhura, said Kalipa, “should stop plagiarising the Sona speech recently delivered by President Ramaphosa. The speech made by President Ramaphosa at the BMW has nothing to do with Gauteng delivering on its promises.

“He must say what he is doing and not take credit for what the president has done. When he talks about compact with business, he should explain how come the SA Breweries is retrenching 160 workers at Ekurhuleni, if there was a compact?”

brians@citizen.co.za

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