Lesufi’s growth push hinges on fixing water and crime

Gauteng will ramp up efforts to address water shortages and crime as part of a broader push to stabilise service delivery and protect the province’s economy, Premier Panyaza Lesufi said in the State of the Province Address on Monday.

While Lesufi identified water infrastructure and law enforcement as key priorities, he did not specify total spending allocations for these interventions.

The province, South Africa’s economic hub, is under increasing pressure from failing infrastructure and rising crime levels, both of which are weighing on business activity and investor confidence.

Lesufi said government would prioritise investment in water systems and expand crime-fighting capacity to bolster economic growth.

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To support this, Gauteng has secured R312 billion in investment commitments through its inaugural investment conference, with R73 billion already in implementation.

The projects are expected to create around 114 000 jobs.

Major projects include a R5.4 billion data centre expansion by Microsoft, a R2.5 billion steel plant by Chung Fung Metal, and a planned R50 billion investment in the Gauteng Dry Port.

The province is also preparing for a R52 billion asset transfer when the Gautrain infrastructure is handed back to the state in March.

However, questions remain about whether planned infrastructure spending will be sufficient to address Gauteng’s water crisis.

In a conversation with Moneyweb, the Democratic Alliance’s Gauteng leader, Solly Msimanga, said the scale of intervention announced falls short of what is required.

While the province has committed R760 million towards water infrastructure upgrades in Johannesburg, including new reservoirs in Brixton and Midrand, he said the city would need dozens more such facilities to meet demand.

ActionSA Gauteng leader Funzi Ngobeni described the address as ambitious but raised concerns about implementation, particularly around job creation and infrastructure delivery.

Crime also remains a key risk for businesses operating in the province.

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Lesufi said nearly 10 000 traffic wardens have been gazetted as peace officers to strengthen law enforcement.

He added that the murder rate declined by 11% year on year, while property-related crime dropped by 7.8%.

Despite this, Gauteng still accounts for 21 of South Africa’s 30 carjacking hotspots, highlighting ongoing safety concerns.

The focus on water and crime comes as businesses increasingly flag service delivery failures as a constraint on growth, particularly in logistics, manufacturing and urban development.

Ultimately, the success of Gauteng’s economic strategy will depend on whether government can translate investment commitments into functioning infrastructure and improved safety.

* Likho Mbuka is a Moneyweb intern.  

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