Gauteng provincial departments are expected to continue to reprioritise their programmes to include initiatives that create jobs and bolster economic development as growth continues to be subdued in the country.
This was shared by Ncumisa Mnyani, head of the Gauteng treasury, after her department tabled the provincial budget for the 2024/2025 financial year in the legislature.
In the 2024/2025 financial year, provincial treasury gave R1.7bn to the department of economic development to boost initiatives aimed at growing the township economy and creating jobs.
In addition, the Nasi iSpani mass recruitment launched in June last year aims to facilitate access to job openings for the youth within departments and their entities.
We are trying to introduce programmes to diversify the goods and services we can get from the township
— Ncumisa Mnyani, head of the Gauteng treasury
“Nasi iSpani is within the allocation of departments. Individual departments have to reprioritise to accommodate the programme. Departments looked at programmes that are not aligned to the elevated priorities and redirected funding towards Nasi iSpani,” Mnyani told TimesLIVE Premium.
The government has to find a way to enable the youth to start their own businesses and employ others, she aid.
Among such initiatives is one where 6,000 youth are trained at academic institutions to install solar panels in government buildings. The beneficiaries can start their own businesses and offer these services to the public.
“We are trying to introduce programmes like that to diversify the goods and services we can get from the township. We can see the [labour] market can only take so many jobs. We need to start getting people to think as people who can create jobs. We must create a skill if it is not there and that skill will eventually yield job creation,” Mnyani said.
The Gauteng budget was tabled on Tuesday, the same day Stats SA announced the country had averted going into a technical recession as GDP increased by 0.1% for the three months leading to December. The economy had contracted by 0.2% in the previous quarter.
With the economy still struggling, the Gauteng government has been using its balance sheet to try to grow economic activity and reduce unemployment. However, some of these efforts have been criticised by opposition parties in the province and labelled as electioneering.
In the Gauteng budget, finance MEC Jacob Mamabolo announced there are 30,700 township suppliers who have been registered in the central supplier database. This will enable these businesses to bid for government tenders and work, he said.
The Gauteng department of infrastructure development received R3.2bn in the budget to provide maintenance of provincial assets. The same department is expected to also work towards reducing youth unemployment through the National Youth Service Programme (NYSP).
The NYSP is a government initiative aimed at engaging youth in community service activities to strengthen service delivery, build patriotism, promote nation-building and foster social cohesion while helping the youth to acquire occupational skills.
It will receive R104m in the 2024/2025 financial year and R301m in the medium-term expenditure framework.
The expanded public works programme received R171m to create 4,500 work opportunities.
While the province is spending billions on trying to create employment, it also has to deal with the rising cost of personnel.
In the 2024/2025 budget, spending on personnel is R99.3bn, up from R91.7bn in last year's allocation due to the implementation of the wage agreement in the public sector.
Mnyani said while the wage bill is almost R100bn, it is below 60% of the budget, which is the target provincial treasury has set as a cap.
“It will not go above it. We cannot run away from salaries. The social sector is delivered mainly through human capital. You need the nurses, teachers, social workers. You can only deliver those through people.”
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.