INNOVATION

&
THE GEGDS

Innovation Strategy Workshop

29 November

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Gauteng State of the Economy – Our current realities in terms of Income,
Poverty and Inequality
National and Provincial Economic Growth Rate 2000- Provincial Contribution to National
2009 (% change) GDP - 2008

7
6.4
5.9
6 5.5
5.8 5.2
Gauteng
5.0 35%
5 5.6 5.5
5.3
4.1 Mpumalang
4 3.7 4.6 a
6%
4.2

3 3.7
2.7 North West Limpopo
2.9
6% 7%
2
2.2

1
KwaZulu Western
Natal Cape
0 16% 15%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Eastern
-1 Cape
-1.7 8%
Free State
-2 5%
GDPR: Gauteng GDP: SA -1.8 Northern
Cape
-3 2%

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Gauteng State of the Economy – Our current realities in terms of Income,
Poverty and Inequality
Provincial GDP and Provincial Employment: 2000-2009 (% change)
10

8
7.6
6.4
5.8
6 5.2 5.5 5.9
5
4.4
4 4.1
2.9 3.8

2 2.2
2.5 1.7

0.6
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
-0.8 -1.7
-2

-4
-4.1
GDPR Employment Growth
-6

Provincial Unemployment: 2000-2Q2010 (%)

2010 2010
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
(Q1) (Q2)
25.5 27.6 28.3 28.1 25.5 21.5 21.4 20.2 22.3 23.1 27.1 27.1

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 Gauteng State of the Economy – Our current realities in
terms of Income, Poverty and Inequality
• According to the 2007 Community Survey:
− 2,9 million people in Gauteng have no income.
− Of these just over 1 million reside in the City of Joburg, followed by Ekurhuleni (with nearly 600,000 people).
− Nearly 85 % of the total people earning no income are Black.
− 47 % of households in Gauteng lived on less than the international poverty line of USD2 per person per day, or
around R1,600 a month, compared to 66 % in the country as a whole.
− 27 % of the people in Gauteng live below the Minimum Living Level (a dollar a day) which is indicative of
extreme poverty compared to nearly 47 % in the country.
− 2,1 % of the population earn more than R25,601 per month.
− These figures are not surprising given the high numbers of people that have low levels of educational
attainment.

• According to Stats SA recent survey, more than 337 000 jobs lost between Q4 of 2008 and
Q2 of 2010 in Gauteng, where the province represents nearly 30% of the country’s labour
force.

• Gauteng has a largest impact on SA’s GDP and it is therefore necessary for the province to
take the lead if any material changes in decent work and employment creation through decent
work is possible.
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 Gauteng State of the Economy – Our current realities in
terms of Income, Poverty and Inequality
• Gauteng has developed an overarching macro-economic strategy called the Gauteng
Employment Growth & Development Strategy (GEGDS)

• The vision of the GEGDS is to develop,” An inclusive and sustainable Gauteng City
Region that promotes a developmental and equitable society.

• 5 pillars underpin the GEGDS

− Transforming the provincial economy through improved efficiency
− Sustainable employment creation
− Increasing economic equity and ownership
− Investing in people
− Sustainable communities and social cohesion .

• Innovation is at the heart of implementing the GEGDS

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 Innovation as a driver of social change
• Innovation is a key tool in finding new and better solutions to the challenges faced by
society by using existing resources more productively

• Innovation represents the ability of society to identify new and more efficient ways to
solve their problems and challenges, and provide for their needs

• Innovation needs to expand its reach beyond the realm of science and technology and
touch:
− Prioritised sectors as per the Gauteng Industrial Policy Framework
− Support programmes that enhance the capability for innovation and/or venture capital support for
innovation through The Innovation Hub (TIH)
− Socially orientated innovations in order to promote service delivery in a more cost effective and
efficient manner

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 Innovation a Panacea?
• Innovation is important in creating economic growth

• Linkages between job creation and innovation

• Innovation has to be the locomotive for structural changes that address the constraints to
equitable development through an inclusive economy

• Gauteng must move towards an endogenous economic trajectory that is underpinned by

− Innovation: an innovative economy which unlocks economic energies through supporting and encouraging
innovation in all spheres of society within Gauteng. This is done to ensure that the needs of citizens, and the
demands of consumers, are met in the most efficient and complete way possible.
− Green economy: more productive and sustainable utilization of natural resources.
− Inclusive economy: dramatically expands economic opportunities in a manner that enhances Gauteng’s
economic growth and global competitiveness and at the same time creates a platform for social inclusion

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 Accelerating Innovation in the Gauteng City Region
• GDED is actively driving a strategy to promote innovation in Gauteng through
− Technology innovation related to clean technologies and industries
− Social Innovation related to the provision of healthcare and education
− In areas such as Environmental innovation related to green technologies for energy efficiency, water
and waste management, transport mobility
− Public service innovation around improving service delivery for the provincial government

• In so doing an enabling environment to drive innovation needs to be developed:

− Improving the exchange of information and knowledge between the public sector, private sector,
academia, and the citizens of Gauteng
− Creating specific spaces for innovation, and an innovating energy through supporting cluster and
precinct developments focused on driving innovation
− Financial support for venture creation and other innovations
− Support social and public sector innovation

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 Programmes to Accelerate Innovation as per GEGDS
• These programmes are aimed at contributing towards the achievement of an enabling
environment for accelerating innovation:
− Creating a Green Technology Industry Cluster;
− Establishing a Government Innovation Procurement mechanism;
− Establish a robust Smart City Region concept with the various metropolitan and district municipalities;
− Creating support structures for social innovation and entrepreneurship; and
− Implementing financial support for innovation, research and developed in targeted areas.

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Thank you

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