The Gauteng Provincial Treasury is set to overhaul its financial systems through automation as part of a broader initiative to curb corruption and eliminate fruitless and wasteful expenditure.
This was announced by Lebogang Maile, Gauteng’s MEC for finance and economic development, during the presentation of the Gauteng Provincial Treasury’s 2025/2026 budget.
The department has been allocated R787 million for the financial year, which will be used to strengthen financial oversight and promote good governance across the province.
Maile emphasised the Treasury’s constitutional duty to safeguard public funds and provide sound financial stewardship.
“The department, therefore, has a difficult task of managing public finances in a prudent manner, while also supporting departments not only to address the structural and systemic challenges that confront the province, but also to facilitate the growth of the province and to create much-needed employment opportunities for our people,” said the MEC.
“As part of demonstrating prudent use of public resources, we are vigorously implementing measures to fight fraud and corruption, and address practices that lead to irregular, fruitless and wasteful expenditure.”
Meeting PFMA standards
According to Maile, financial automation efforts are being accelerated to ensure better compliance with the Public Finance Management Act and related norms and standards.
“In this regard, we will roll out the implementation of electronic bill presentation and payment and e-commerce to reduce handling of cash in the province. We are monitoring the automated reporting platform for the current financial year to improve reporting capabilities and turn-around times relating to the preparation and submission of compliance reports. This will be done to improve the quality of financial statements and to mitigate audit findings,” he noted.
Maile announced the introduction of a new invoice management system on 1 April 2025, replacing the previous electronic invoice system. The new system is designed to streamline invoice processing and reduce payment delays to suppliers.
“To ensure sustainable local government finances, we have deployed advisors to municipalities to provide technical and institutional support to budget and treasury offices. This has led to improvements in audit outcomes, including a reduction in audit findings in most of our municipalities.”
He highlighted that municipalities have been allocated a capital budget of R14.3 billion for the 2025/26 financial year, with a focus on sanitation and energy infrastructure.
“We call on municipalities to fast-track projects to ensure capital budgets are spent in accordance with rules and regulations to deliver services to communities,” he said.
Maile also acknowledged the long-standing structural challenges facing Gauteng. Despite being the country’s economic powerhouse, the province’s economy only grew by 8% between 2014 and 2024 – an annual growth rate of 0.8% – while the population expanded by 25% over the same period, intensifying social and economic pressures.
In Q1 2025, Gauteng’s economy stagnated, recording no growth, even though the agriculture sector posted a 15.8% increase.
“This stagnation highlights the province’s vulnerability to sectoral imbalances. Over the past decade, the finance sector’s contribution to GDP rose from 29.2% to 34%, while manufacturing declined from 17.9% to 14.8%, underscoring the weakening of domestic productive sectors.
“Nationally, GDP grew by 0.1% in Q1 2025, following 0.6% growth in 2024. The South African Reserve Bank projects 1.3% growth for 2025, though risks such as energy constraints and infrastructure challenges remain.”
Maile reiterated that re-industrialisation is central to Gauteng’s economic strategy, aiming to foster inclusive growth, job creation and structural transformation.
“As the province continues to position itself as Africa’s leading economic hub, revitalising and modernising industrial capacity is crucial to enhancing competitiveness, deepening localisation and fostering sustainable manufacturing value chains.”
He said the province plans to harness digitalisation, green technology and advanced manufacturing to revitalise sectors such as automotive, pharmaceuticals, ICT and agro-processing.
“Through targeted investment in industrial infrastructure, skills development, and access to finance for SMMEs and emerging industrialists, the province seeks to create an enabling environment for industrial development.
“To remain competitive in a fast-evolving global economy, we are investing in R&D [research and development], particularly in digital technologies and infrastructure. This commitment will position Gauteng as a leader in innovation and the knowledge economy, driving long-term competitiveness.”
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