The Gauteng department of economic development (GDED), which is tasked with facilitating economic growth, has failed to meet its ambitious job creation targets to address the unemployment crisis ravaging SA’s economic and financial heartland.
According to the department’s annual report for 2022/23, only 141 jobs were created in the creative industry against a target of 40,515.
In its defence, the department said: “The target was set based on industry proposals ... SMMEs and stakeholder[s] within the creative and cultural industry made applications for funding to support the programmes and create jobs but those funding applications were unsuccessful.”
Gauteng is SA’s richest province and contributes nearly 40% to national GDP. However, it is dogged by an unemployment crisis. Of the 8-million unemployed people in the country, 2.6-million are in Gauteng. The province lost more than 300,000 job opportunities in 2022 due to load-shedding.
Unrest
Analysts, economists and politicians warn that the joblessness rate of 32.6% in SA — among the highest in the world — could lead to a repeat of the July 2021 unrest if unchecked.
The government has introduced several initiatives to tackle unemployment, including launching the Jobs Fund in 2011, while Gauteng premier Panyaza Lesufi launched the Nasi Ispani campaign in June to try to address the crisis.
According to the department’s annual report, out of a targeted 249,334 gig work opportunities (those created through content development programmes and product development projects), only 372 were created.
“Most of the gig work opportunities could not be verified because of the gig declaration forms that could not be completed by most of the SMMEs. The gig declaration form is a newly introduced tool for the sector and the challenges encountered were recorded as learning curves for the creative and cultural industry,” the department said.
A total of 2,935 jobs had to be created in industries not classified as high-growth sectors, but only 539 jobs were created. The department said this was largely influenced by job targets within the construction sector, which could not be achieved because of the funding required.
In global business services (GBS) — township-based jobs created through GBS and digital innovation services — only 320 jobs were created out of a target of 100,000 jobs.
GDED accounting officer Blake Mosley-Lefatola said that through initiatives such as the Jobs and War Room, the department has spared “no effort in developing strategic interventions designed to transform, revitalise, promote and grow the township economy”.
“These catalytic programmes remain one of the department’s strategic priorities and will contribute to job creation and poverty reduction through a sustainable and inclusive economy,” Mosley-Lefatola said.
“To this end, the department has committed to spending 60% of the R34bn goods and services budget to support township initiatives.
Economy
“GDED will further establish a digital database [township business register] of all township businesses.”
DA Gauteng spokesperson for economic development Nicola du Plessis, however, noted that the GDED is continually failing to meet critical job creation targets, “leaving our unemployed residents in the lurch”.
“This trend within the department is worrying, as its core mandate is to facilitate economic growth in the province. In turn, this will help create the correct environment for businesses to grow and strengthen investor confidence, which will lead to the creation of long-term employment opportunities,” Du Plessis said.
“It is unacceptable that our residents are being failed every year when this department is unable to meet the job-creation targets they have set.”
She said the DA would be tabling questions in the Gauteng provincial legislature to better understand why the department was not meeting its job-creation targets, and to determine what measures “will be put in place to ensure that this department delivers on its core mandate”.
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