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Gautrain – sustaining communities through socio-economic empowerment

The South African government’s approach to green economy is the interrelationship between economic growth, social protection, and the natural ecosystem.

The country’s sustainable vision is outlined in the National Framework for Sustainable Development (2008) and seeks to ensure that South Africa is sustainable, economically prosperous and meets the needs of its people, manages ecological resources for future and current generations.

The Gauteng Provincial Government contributes to the country’s green economy vision through transport infrastructure projects such as the Gautrain. As a sustainable transport system, Gautrain continues to increase easy mobility in the Province while supporting economic growth and positively contributing to society and the environment.

The Gautrain was designed as a vehicle for economic growth and job creation in Gauteng.  To ensure that this was achieved, an innovative socio-economic development (SED) strategy was adopted during the planning phase of Gautrain. 

Skills development forms the backbone of the Gautrain SED strategy. The strategy also includes equity participation of black persons in the entities created for the Project, participation of black entities and SMMEs in procurement and sub-contracting, enhancing local content, participation by Historically Disadvantaged Individuals and women in management, contribution to employment equity, and a human resource development strategy, which includes a women learnership and mentorship programme.

As the Gautrain was procured as a Public Private Partnership (PPP) project, the Concessionaire, the Bombela Concession Company, is obliged to commit and deliver on the SED strategy through a contractually sound and implementable approach. The Concessionaire is also contractually obligated to submit monthly SED reports to both the Gautrain Management Agency and the Independent Socio-Economic Monitor (ISEM) within 45 calendar days after the end of each contract month. The monthly SED report provides details on the achievements of the SED obligations, positive developments, areas of concern, challenges and interventions introduced.

The role of the ISEM is to perform an independent verifying role to validate the achievements and compliance by the Concessionaire with its contracted SED obligations.

To-date it is evident that the Concessionaire has exceeded its SED obligations and Gautrain has made a significant contribution to Gauteng’s economy and job creation. An independent Hatch social end economic impact study on Gautrain has concluded that, for every R10m spent on construction work, 45 jobs were supported directly via supply chain and wage spend and for every R1 spent on Gautrain, R1.72 had been added to the Gauteng economy.  The operating period has seen a significant procurement and subcontracting to Black Entities and SMMEs, with an approximate amount of R5 billion and R330 million respectively in operating period up to December 2018. 

The following jobs were created by the project during construction:

  • 35,000 direct jobs delivered and around 87,300 through supply chain and wage spend
  • R128m spent on training by the Concessionaire and their contractors
  • 20,300 direct jobs for young people
  • 51% of jobs at the entry level (NFQ 0-1)
    • 13% mid-level (NFQ 2-4)
    • 35% at the higher level (NFQ 4+)
  • R19.4bn contribution to GDP over 6 years

The following Jobs were created since the start of operations:

  • 10,900 direct jobs delivered* and around 61,000 through supply chain and wage spend
  • R59m spent on training by the Concessionaire to date
  • 5,800 direct jobs for young people
  • 93% of jobs are mid-level roles (NFQ 2-4)
    • 7% are at the higher level (NFQ 4+)
  • R20.4bn contribution to GDP over first 6 years

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