Johannesburg Matters: Joburg Needs Faster Growth
- The sixth report in CDE’s Johannesburg Matters series, Joburg Needs Faster Growth, sets out what a reforming administration should do to get Johannesburg’s economy growing again.
- Economic growth in the city has failed to keep up with population growth. As a result, average per capita income has fallen from R99 858 in 2013 to R95 737 in 2023 (in real terms).
- At 35.9 per cent, Johannesburg now has the highest unemployment rate of any metro. While Cape Town added 57 000 jobs in the past year, Johannesburg lost 90 000.
- Rather than focusing on actions designed to attract private investment, the current Johannesburg administration has proposed a growth strategy that looks to the state to reshape the economy via grand plans and expensive, ribbon-cutting projects.
- Johannesburg’s next mayor should appoint a Task Force of leaders from across the city to produce an economic vision and strategic proposals for action to drive Johannesburg’s economy to much higher levels of growth and employment.
- This would allow the new administration to remain ruthlessly focused on its first priority: fixing the basics. Restoring reliable services, rebuilding municipal institutions, combating corruption and stabilising the City’s finances must come first.
- Crime, housing and public transport are of vital importance to the city’s future. They must get on the priority agenda as soon as the basics of the city are on the road to sustainable recovery
- The mayor appointed Task Force should be small, five to eight leaders drawn from across our society, supported by a small secretariat and funded from the City’s current economic development allocation. It should be appointed as soon as possible and report within one year.
- Some of the important issues the Task Force will need to explore include: how the city can build on its strengths and the possibilities for again becoming a leading centre for mining, finance and technology; whether the city can lead through experiments; how to eliminate the ‘red tape’ that holds back growth.
