Gauteng, which contributes more than 35% to the country’s gross domestic product (GDP), grew by 7.4% in the first half of 2021 compared to the same period in 2020. But if it wants to sustain this, it will have to address some fundamental challenges.According to Bernadette Zeiler, CEO of the Johannesburg Chamber of Commerce and Industry (JCCI), the electricity crisis in the country is probably at the top of the list of challenges for the province, which desperately needs to increase its manufacturing capacity.“If load-shedding continues at the current pace, it will be damaging not only to the provincial economy, but also to that of the country,” she told Freight News. “In Gauteng, there is a focus on manufacturing and growing manufacturing. This will be difficult to achieve while dealing with load-shedding. Power is a major factor in manufacturing. We must find a solution to the country’s power crisis.”She said business confidence remained exceptionally low in the province – as was the case in most of the country.According to the latest RMB/BER Business Confidence Index (BCI), almost six out of ten respondents surveyed viewed business conditions as being unsatisfactory. A sur vey, conducted between 11 and 30 May and covering about 1 300 executives in the building, manufacturing, retail, wholesale, and new vehicle trade, found that while the lifting of Covid-19 restrictions had brought some relief, several shocks had left businesses reeling.This included the violent unrest experienced in Gauteng and KwaZulu-Natal in July last year.The BCI declined from 46 to 42 in the second quarter of this year, with manufacturers and new vehicle dealers in particular showing a sharp deterioration in sentiment and being less upbeat.Zeiler said without addressing some of the challenges faced by businesses, it would be difficult to improve the confidence levels. This included the electricity crisis, the lack of infrastructure, and the challenges at the country’s ports – not to mention Gauteng’s pending water crisis.“Gauteng, as the economic hub of the country, is geographically far from the ports. This means any delay or lack of efficiency at the ports is felt in the province. We need to ensure we have the correct infrastructure in place to move cargo from the Port of Durban to Gauteng as quickly and efficiently as possible.”She said the need for a well-functioning inland logistics hub could not be emphasised enough. “We need to improve efficiency and reduce delays in moving freight, not only bringing it to the economic hub of the country, but also getting our export goods out to the market as efficiently as possible.”She said the JCCI was working with several other chambers to promote trade to Gauteng, and several trade missions were planned for this year. “But unless we can address some of the challenges we face, we are going to find ourselves uncompetitive in the international market.”Zeiler said growing exports was imperative for the province to boost the local economy and create employment.
