Gauteng Premier Panyaza Lesufi elaborated on the state of the province and developments on the international front.
Gauteng Premier Panyaza Lesufi is bullish over the province’s future, as he believes a new trade partnership will help absorb the looming impact of tariffs imposed by the United States (US).
The premier was in the provincial legislature on Tuesday, fielding questions from opposition parties on the state of Gauteng.
Lesufi touched on several issues, but explained at length his administration’s position on the US, China and the Middle East.
China to rescue Gauteng
A 30% tariff on trade goods imposed by the US government is set to take effect this week, placing pressure on exporters across the country.
Lesufi stated that he and his team were in China in June to conclude a memorandum of understanding with the province of Hunan.
The agreement will see the two provinces form a skills and resources pipeline that would be mutually beneficial for the trade, infrastructure, manufacturing and agriculture industries of both provinces.
He said representatives were finalising the “operationalisation” of the deal. This will include the opening of a steel factory in Gauteng and various other urban initiatives.
“They have agreed to assist us to revitalise the inner-city of Johannesburg — the Chinese. They are also going to give us support in terms of rail and infrastructure,” explained Lesufi.
“They are also going to provide us with support in crime-combating initiatives in Gauteng and further give us support in agriculture and an agro-processing export programme for Gauteng exports into the Hunan–China market.”
‘Never’ abandon Palestine
The idea that the tariffs were a punishment for South Africa’s black economic empowerment policy has been suggested and denied from various quarters, with Lesufi putting forward another position.
“We are of the strong view that the decision taken by the US is nothing but the punishment for the posture to defend the people of Palestine.
“We will never abandon the people of Palestine, regardless of the intimidation tactics imposed on us as a country.
“The people of Palestine remain our ally, and we will defend them,” stated Lesufi.
Lesufi says no ‘bully’ will dictate SA’s trade
He added that the new deal with the Chinese was conducted on a “friendly basis”, not through the perceived strong-arm tactics used by the US.
“The agreement we have reached with China on this trade confirms and affirms the decision taken to diversify our market and not rely on a bully to dictate to us where we can buy and where we can trade,” he said.
However, the premier admitted that the consequences of the tariffs could be widespread and severe.
“We are looking forward to the negotiations that have been initiated to convince the US not to impose the 30% tariffs on our country, and create a bloodbath of unemployment in various sectors of society,” Lesufi concluded.
E-toll gantries and debt
E-tolls may no longer be a concern for motorists, but members of the legislature wished to know what would happen to the gantries dotting the province’s freeways.
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Lesufi explained that provincial leadership had met with transport minister Barbara Creecy, who has taken ownership of the infrastructure.
“It was agreed that we leave all e-toll related matters with [Creecy] and the South African National Roads Agency Ltd (Sanral) board,” he said.
“While the province has proposed what the repurposing can entail, the gantries remain the assets of the national government, and we will await the board of Sanral and the engagement with the minister to finalise these matters.”
The provincial government has paid almost R10 billion toward e-toll this year alone, and Lesufi defended the decision to scrap the tax and absorb the debt.
“When we took a decision to pay the principal amount, it also allowed Sanral to go to the market to raise money to improve roads across the country — including in the Western Cape.
“This decision to pay e-tolls has unlocked our road infrastructure and has allowed us to go to the next phase of building new highways in our province,” the premier said.
In recent additional expenditure, Lesufi said the provincial government had released R2 billion on 30 June for the maintenance of roads across the province.
Lesufi challenges DA
Democratic Alliance members grilled Lesufi on the decay of arts and culture monuments, as well as contracts awarded to family members of Deputy President Paul Mashatile.
DA’s Jack Bloom highlighted a R49 million contract for fire prevention services given to Mashatile’s sons, stating that allegations routinely went investigated.
“Alarm bells should ring when politicians live in a style way beyond their means while their friends and family get lucrative contracts,” said Bloom, as he held up a large photo of Mashatile’s Cape Town mansion.
Bloom was reprimanded for the prohibited use of props in the legislature, before Lesufi challenged the DA’s claims.
“I act on evidence, not shouting and screaming. If the DA has evidence of corruption or any wrongdoing, I am asking them now to give it to me.
“If you want to dictate who controls me, there is only one formation that controls me, and that formation is the ANC,” the premier concluded.
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