R138 billion allocated for infrastructure development in Gauteng | Infrastructure news

R44 billion has been allocated for infrastructure development over the next three years by the Gauteng provincial government. Another R94 billion has been allocated by provincial municipalities and will be spent over the next five years.

The province’s premier David Makhura said these investments will have a massive multiplier effect on the economy of the Gauteng city region.

Last week Makhura met with members of the mayoral committee (MMCs) and officials working within the infrastructure development, human settlements and economic development units in municipalities from throughout the province.

The discussion was focused on infrastructure alignment and ways to strengthen coordination among the many spheres of government.

“We operate in a single integrated space, where the citizens move in between these municipalities and often do not feel the boundaries,” Makhura said. “We need to align our work in line with our vision of building Gauteng as an integrated and globally competitive city region,” he added.

MMCs agreed that infrastructure spend was an important element in boosting economic growth and creating jobs.

Infrastructure spend analysis

The Gauteng provincial government commissioned KPMG to conduct an analysis on infrastructure spend in the province. The analysis, which covered the period between 2013 and 2016, found that the provincial government’s spend of R30 billion in infrastructure created 92,000 direct jobs and sustained 69,000 indirect jobs.

The study also found that infrastructure investment added R15 billion to household income, raised R6 billion in government revenue and created economic activity worth R26 billion, with an average of 92c being added to Gauteng’s economy for every R1 spent by this government on infrastructure.

The meeting also agreed that with better coordination and alignment between the provincial government and municipalities, the infrastructure programme will have a greater impact.

Other areas of coordination and alignment include human settlements, transport, energy, Information and Communication Technology (ICT) infrastructure and the rollout of broadband and WiFi, township economy revitalisation and the urban renewal programme.

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