Despite global economic volatility and geopolitical tensions, Gauteng remains the “engine of the national economy”.
This according to Gauteng Finance and Economic Development MEC Lebogang Maile who tabled the Gauteng 2026/27 budget on Tuesday.
The province contributes some 33% of South Africa’s Growth Domestic Product with provincial growth expected to grow higher than South Africa’s real economic growth projected to reach 1.6% in 2026.
“Gauteng remains the engine of the country’s economy, driven by, among other sectors, finance, trade, and transport. The province’s annual [GDP] by region amounts to more than R2.4 trillion.
“However, data from our 2026 Socio-Economic Review and Outlook…shows that metropolitan municipalities and district municipalities continue to face substantial economic and structural challenges. These have constrained investment, growth, and employment creation in local economies.
“That said, economic projections for the medium-term point to steady recovery with provincial economic growth expected to reach 2.1% in 2026 – significantly above the national average,” Maile noted.
He added that the province is positioned to “continue increasing the number of jobs created in the province”.
“In 2025, we created over 250 000 jobs in the province, with the second quarter of 2025 seeing a creation of 95 000 jobs – the highest number of jobs created by a single province in South Africa.
“There are currently just over 6 million people employed in Gauteng. Trade and construction were among the leading sectors for job creation, demonstrating that despite the difficult climate we find ourselves in, businesses continue to have confidence in the capacity of the province to turn things around,” he said.
Investment commitments
Turning to Gauteng’s investment drive, Maile reported that some 28% of the R312.5 billion in pledges garnered from the 2025 Gauteng Investment Conference (GIC) have been converted into active projects.
“But conferences are not judged by attendance numbers or headlines. They are judged by implementation. It is therefore important that we account not only for what was pledged, but for what has been delivered.
“As of February this year, 28% of the investment pledges secured in 2025 have already been converted into projects and are being implemented. [Some] 18 out of 60 projects are now in a roll-out stage. These projects are to the value of just over R80 billion which will unlock this into the real economy.
“These are not theoretical commitments. They are projects under construction, expansions underway, energy developments advancing, and jobs being created. This conversion rate is central to our credibility,” he said.
The next iteration of the GIC is expected to be held in April.
“For the upcoming GIC, our objective is to secure new investment commitments. We remain determined to secure R800 billion in investments by the end of the 7th administration.
“This target is not aspirational. It is pipeline-backed and supported by structured engagement with domestic investors, foreign direct investors and sector leaders. It builds on the momentum of 2025 - but it moves us from mobilisation to institutionalisation. We are institutionalising marketing, origination, facilitation and delivery,” Maile insisted.
Revenue measures
Maile highlighted only 5% of the province’s revenue is derived from its own sources, collected from motor vehicle licences, gambling taxes, patient fees and interest earned on treasury investments.
The province’s total revenue collection for 2026/2027 is projected to reach some R8.2 billion.
To strengthen collections, the provincial government is in the process of amending and reviewing the Gauteng Gambling Bill to “allow…for us to be able to regulate online betting”.
“In the period between 2019 and 2025, the Gauteng Provincial Government lost out on significant revenue amounting to hundreds of millions due to a lack of a formal provincial licensing framework for online betting. This has been implemented with great success in other provinces.
“With this legislative amendment, the Gauteng Provincial Government aims to tighten regulations focusing on strengthening oversight, improving compliance monitoring, and implementing automated responsible gambling interventions. There are various other legislation that we are looking at including Gauteng Liquor Act and Regulations,” he added.
Furthermore, a Panel of Debt Collectors is expected to be appointed to “provide debt collection services to Gauteng Provincial Government institutions to collect outstanding debt”. – SAnews.gov.za
