Gauteng’s GDP declines by 6%, says Maile

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The Gauteng Economic Development MEC, Lebogang Maile says the Gross Domestic Product (GDP) of the province declined by 6% in the last financial year.

He was addressing the media on the key priorities for the seventh administration and to give an update on the state of the province’s economy in Sandton, Johannesburg.

Maile details the GDP decline in Gauteng Municipalities: “At Gauteng corridor level, the City of Tshwane experienced the highest decline in GDP per capita relative to other corridors. City of Tshwane GDP per capita declined by approximately -7.5%, followed by Ekurhuleni -6.7%, City of Johannesburg -5.8%, West Rand – 3.7% and Sedibeng -3.6%.

Scrapping of E-tolls

The Gauteng Finance and Economic Development MEC says the scrapping of E-tolls will increase the province’s debt by R3 billion. Maile says the province currently has a debt of R17 billion.

“The province currently sits with a debt obligation of R17 billion which is constituted of about R12.9 billion in historic debt plus R4.1 billion backlog maintenance and rehabilitation, excluding interest charges as a result of the cancellation of the E-tolls so with interest it takes it to just above R20 billion. Interest to service the debt will be higher as it will be measured against the capital debt at the time the loan to settle the debt is approved.”

Finance and Economic Development MEC Lebogang Maile tables budget: