SOUTH AFRICA’S

valuable products and services. Productivity—measured
by GDP per worker—grew rapidly until 2010 (2.9
percent compound annual growth rate), but its growth
has since slowed. Enhancing productivity provides a
key long-term route to improving competitiveness and
living standards. Both GDP per capita and productivity
growth resemble national trends.
Income inequality continues to inhibit broadly
shared growth. High inequality can reduce the
durability of economic growth if it undermines health
and education access, limits productivity-enhancing
investments, and diminishes social cohesion. 22 While
many of the global economic trends that contribute
to income inequality are beyond the control of any
individual city, understanding how income gains are
distributed within a regional economy can reveal
who among the population is benefitting from local
growth. One common way to measure income inequality
is the Gini coefficient, which defines inequality on
a scale from zero (perfect equality) to one (perfect
inequality). The city-region registered a Gini of 0.74 in
2011, down from 0.76 in 2001. 23 While lessening over
time, income inequality in the Gauteng City-Region
exceeds that of South Africa (Gini of 0.65) and almost
every major metropolitan region in the world. 24
➤ BOTTOM LINE: Much economic progress has been made since 2000. Production of goods and
services in the Gauteng City-Region has expanded consistently over the past 15 years. Average standards of
living and labor productivity are higher today than they were in 2000. When compared to other major global
cities, changes in these metrics place the Gauteng City-Region behind some major metro economies but ahead
of several others. But signs of a competitiveness challenge linger: comparatively low job creation during this
period, slowing productivity growth since 2010, and continued high levels of income inequality. The Gauteng
City-Region remains South Africa’s largest and most globally significant metropolitan economy—and many of
these trends reflect that status. To solidify this international position in the coming decades, however, the cityregion’s
leadership must focus on the core drivers and enablers of competitiveness and prosperity.
“Job growth has picked back up in recent years and
the city-region has returned to pre-recession
employment levels. Both employment and
output growth have outpaced national averages
since the mid-2000s.”
GLOBAL CITY
PROFILE:
GAUTENG
CITY-REGION
11