Cities will make or break the economy‚ says Nene

09 April 2018 - 10:25
By Sunita Menon
Finance Minister Nhlanhla Nene.
Image: GALLO IMAGES Finance Minister Nhlanhla Nene.

Cities are the key to a propserous SA‚ according to Finance Minister Nhlanhla Nene.

Speaking at a Gibs business school forum on Monday‚ Nene said: "There are many pressures‚ both fiscal and economic‚ and your cities are at the heart of that."

He explained that SA is close to 70% urbanised‚ which contributes to 80% of GDP.

"A stronger accountable leadership is important‚ now more than ever‚" he said‚ adding that SA's cities cannot afford to fall.

He added that this was imperative in addressing the triple challenges of poverty‚ inequality and unemployment spelled out in the National Development Plan (NDP).

"Achieving success in these areas requires that our cities are well governed."

Speaking at the same event‚ Treasury director general Dondo Mogajane said if cities collapsed‚ countries collapsed.

"Cities are an important growth engine of the economy. They are an important pillar in the growth story of SA‚" he said.

"Our economy is not growing. What can we do to make sure our economy grows? We have low-lying fruit everywhere."