Building Smart Cities Booklet Web

Context and Background

3.0

Gauteng, the economic heart of South Africa, generates over 35% of the national GDP and is home to more than 15 million people. While historically dominated by mining and agriculture, the province’s economy has evolved into a service-driven hub, with key sectors including finance, trade, logistics, and manufacturing. Despite its economic dominance,

Gauteng faces significant socio-economic and infrastructural challenges, exacerbated by rapid urbanisation, climate change, and governance inefficiencies. Addressing these issues is critical to ensuring sustainable development and inclusive growth in the Gauteng City Region. Some of these challenges include the following:

3.1 High Unemployment and Economic Challenges

With an unemployment rate exceeding 30%, Gauteng faces severe socio-economic strain, particularly among the youth, where unemployment surpasses 50%. Limited economic activity and disinvestments in Central Business Districts (CBDs) have further

contributed to financial hardships, exacerbating poverty and inequality. The relocation of businesses to safer areas has left communities in economic distress, reducing job opportunities and municipal revenue.

3.2 Urban Sprawl, Urban Decay and Informal Settlements

Gauteng experiences an annual migration of over 300,000 people, leading to unplanned urban expansion. Informal settlements continue to grow, with over 20% of residents living in inadequate housing conditions. Aging infrastructure, poorly maintained public services,

and hijacked buildings are causing urban decay. This expansion and deteriorating infrastructure increase transportation costs, exacerbates traffic congestion, and places additional pressure on already strained infrastructure.

3.3 Infrastructure Deficits and Poor Maintenance

Traffic congestion is a persistent issue, with Gauteng’s Road networks carrying over 40% of South Africa’s vehicle population. Poor infrastructure maintenance has resulted in deteriorating roads, potholes, non functioning traffic lights and inefficient public transport

systems. Additionally, inefficiencies in service delivery contribute to persistent backlogs, with an estimated 15% of residents lacking access to essential services such as water, sanitation, and electricity.

3.4 Safety, Crime, and Hijacked Buildings

Gauteng has one of the highest crime rates in South Africa, with violent crime, theft, business robberies, property crime and hijackings significantly impacting residents and businesses. Crime and grime have led to the hijacking of buildings, illegal occupations,

and deteriorating CBDs. Over 500 buildings in Johannesburg alone have been identified as hijacked, posing safety risks and contributing to urban decay.

10