Lesufi’s government is killing Gauteng's economy, as house prices drop 1.1%

20 November 2024

Gauteng Premier, Panyaza Lesufi’s failure to tackle crime, and corruption and ensure access to quality health care has resulted in the decline of residential property prices by 1.1%. While the other eight provinces all experienced an improvement in this sector of the economy, this is according to Statistics South Africa (StatsSA).

See the report here.

This revelation follows the employment statistics, which show Gauteng lost 66000 jobs over the last quarter. Again, this is in stark contrast to other provinces, which recorded gains.

A troubling trend is emerging, placing Gauteng as an outlier in South Africa, for all the wrong reasons.

In recent engagements with economists and investors, it has emerged that there is potential for economic growth in Gauteng, but this can only happen with increased investment. However, there is reluctance because of pervasive crime and unreliable government services such as energy, water supply and transportation of goods.

On the crime front, Premier Lesufi has thrown money at gimmick projects such as the panic buttons and the inadequately trained crime wardens. This strategy aimed less at tackling the real problem and more at gaining electoral support. Furthermore, the Premier’s pronouncements on electricity have proven false. For example, the gas-fired turbines in Johannesburg are nowhere near fully operational as promised in his State of the Province Address (SOPA).

On water infrastructure, Lesufi seems absent in the face of the water crisis. His ANC-controlled municipalities are also unable to provide credible answers.

In terms of road infrastructure, very little has been achieved to improve the condition of our roads and traffic management. The one major development has been the acquisition of a huge amount of e-Toll debt. In this regard, Lesufi lumbered a cost upon Gauteng residents that they were not liable for. The costs incurred are severely impacting the province’s ability to deliver other services like education and health.

Corruption remains not only unchecked, but evidence of cover-ups abound. Investors do not trust a situation wherein there is an absence of good governance and public funds are stolen. The fiscus is unable to provide money for badly needed services. The people suffer all round, except for those standing to gain.

Power-grabbing politicians that unseat good local governments, such as what happened recently in Tshwane, for the sake of their pockets, have created huge instability and eroded confidence.

Lesufi is killing the province's economy. Gauteng is in dire need of rescue. The DA remains ready with a plan to rescue the province and restore good governance and prosperity to Gauteng.

Issued by Mike Moriarty, DA Gauteng Shadow MEC for Economic Development, 20 November 2024