Date: 22/05/2003
Source: Deputy Ministry of Trade and Industry
Title: Hendricks: Gala Dinner for Northern Cape business community
KEYNOTE ADDRESS BY THE DEPUTY MINISTER OF TRADE AND INDUSTRY, LINDIWE HENDRICKS, AT A GALA DINNER FOR THE NORTHERN CAPE BUSINESS COMMUNITY, Upington, Northern Cape, 22 May 2003
Programme Director, ladies and gentlemen, it is an honour to be speaking here tonight on the occasion of this gala dinner for the Northern Cape business community. There are a number of changes that are taking place in the South African economy and it is necessary that all economic actors are informed about these changes so that they too can play an active role in shaping the future of our economy and country. I hope that in my address tonight I will be able to provide you with some insight into the shifts that are taking place in our country and the direction that we in the Department of Trade and Industry would like to take the country.
Through these changes many new opportunities will be created for entrepreneurs. However, many challenges will emerge for enterprises that do not respond or deal with the realities of the modern economy. The impact of this is that these enterprises might not be sustainable and their future survival might be under threat. It is therefore important that you as the business people of this region clearly understand where the business opportunities and threats lie and are the people who are at the forefront of change in this province.
The importance of changes to the economy cannot be underestimated. Last week I attended a forum of African, Caribbean and Pacific countries where several of the countries in this group are facing ruin because of their historical policies of single commodity production. The representative from Kenya indicated his distress to the forum when the issue of sugar quota's to the Europe Union was discusses as close to three million people in his country are dependent on sugar, with the fall in the price of this commodity or allocation of quota's by the EU to other markets the prospects look bleak. Kenya was not alone in expressing their distress; several countries raised concerns when the issues of cotton, tuna, bananas and other commodities came up.
Ladies and gentlemen, the hard lesson that we have learnt in Africa is that in order for our economies to grow and to turn around the devastation that we face, it is imperative that ways are found to diversify the economy - and this often requires hard decisions for these structural changes to take place. Clearly, it is necessary for any economy to have a multiplicity of sectors that it is engaged in so that the country or region can better withstand the shocks that any one of its sectors might face in global markets. The South African government has long recognised this need to diversify our economy. Over the past few years a number of steps have been taken by the government to promote these changes and to use the resources at our disposal to enhance our economy. Last year the Department of Trade and Industry (the dti) released its Integrated Manufacturing Strategy (IMS), which is our strategy for the changes that need to take place.
Key aspects of the Integrated Manufacturing Strategy are:
* To improve market access for South African products in key markets. Such markets include other countries in Southern Africa, Europe and America. Already we have been successful in improving our customs arrangements with Botswana, Namibia, Lesotho and Swaziland. Through NEPAD and other regional forums we will be improving trade relations with other countries in Africa. South Africa has also signed a trade agreement with the European Union, which has brought many benefits to South African exporters. I am aware that businesses in this region are some of these beneficiaries. The Africa Growth and Opportunities Act (AGOA) that was implement by America has also played an important role in improving amongst other things South African textiles and clothing exports into that market.
* Promote beneficiation and value addition. South African's have in the past not beneficiated the many natural resources that are present in this country and there are many opportunities to do so. We also have become experts in many areas for example, mining and mining technology. There are opportunities to sell our skills and expertise to other countries.
* Encourage big corporations and large companies to make greater use of small businesses. This is not only for equity purposes but also because internationally it has been shown that outsourcing and using small businesses as suppliers are a more efficient and flexible way of running an organisation.
* Find ways to capture knowledge and to use this information to our advantage. Increasingly knowledge has become a commodity and people with information on how things can be done or how they can be done better are at an advantage in a very competitive global economy. This 'knowledge-intensity' amongst other things would require greater use of technology.
* Greater integration between the different sectors in our economy so that they add value to each other. This is a complicated idea but it involves greater communication and interaction between firms in related sectors and industries so that collectively they can become more efficient and competitive. This includes the means through with businesses interact with each other such as transport systems, telephones, e-mails, integrated computer networks, etc. A good example of this is how South Africa is using a combination of natural resources, cheap energy, a pleasant living environment, port infrastructure and government services to attract major international investors to Port Elizabeth.
* Promote specific sectors that have been identified as both being competitive for South Africa and having international potential. These are clothing and textiles, agro-processing, metals and minerals, tourism, automotive and transport, crafts, chemical and biotechnology, and knowledge-intensive services.
Some of the areas that will be addressed in the implementation of this strategy are Black Economic Empowerment, small business development, increased use of information and communication technology, job creation, and more equitable geographic spread of investment and economic activities.
In developing this strategy we have recognised that it is the business community that will be the ones who effect these changes. The dti while providing leadership to the economic players of the country will partner with the business community and strategic industrial players in the implementation of this strategy. Part of our approach is to take this message to the broader business community of South Africa so that they understand the shifts that are taking place in the global economy and discuss with them how they are going to survive in this very competitive environment and what the dti can do to assist them.
The dti already has a number of incentives and mechanisms to support and assist businesses. For example there is the Competitiveness Fund and the Black Business Supplier Development Programme (BBSDP), which assist businesses with resources to enable them to improve their operations and modernise their businesses; the THRIP incentive and Support Programme for Industry Innovation (SPII) which funds technological innovations in businesses; and the Manufacturing Advisory Centre (MAC) programme which assists businesses with advise and support on how to become more competitive. In addition to these instruments there are a number of incentives that give grants and tax breaks for expansion of enterprises and new investments. The dti through Trade and Investment South Africa (TISA), also has a programme to encourage exports and incentives to assist with the travel costs of exports. My colleague from TISA will provide you with more information on this during his presentation.
These are not just nice ideas that we have come up with in our offices in Pretoria. They are ideas that we are implementing and real incentives that are available to the business community. The impact of our policies and incentives that we offer as well as the changes in the global environment has been felt by the economy. Some of the changes that you might recognise are the shift away from an over reliance on commodities such as gold, diamonds, and agricultural products to grow our value adding, manufacturing and services sector, as well as businesses focusing on becoming more competitive and export orientated. The results of this includes; we now have manufacturing and services contributing more to the economy with exports in manufactured goods growing significantly since 1990 - and have in recent years overtaken exports of primary goods. Our economy has also gone through the longest sustained period of growth since the 1960s and if things continue on this path it is set to be our longest ever growth period.
One of the consequences of our improved competitiveness is that there has been a negative impact on job creation; in addition we are still faced with the apartheid legacy of economic inequality in our country. We are committed to addressing these problems and as I have mentioned are attempting to resolve them through the Integrated Manufacturing Strategy. Small business development and black economic empowerment are key in addressing these problems.
We have used a number of mechanisms to supply information on our support to small businesses such the dti train, newspapers, other publications, radio, TV, the local business service centres established by Ntsika and Business Referral and Information Network established by NAMAC. I will not cover this support in my presentation to you tonight, however, if you still have any queries on the support available to small businesses or any area of the dti support you can our customer call centre on 0861 843 384 or visit our website at: www.thedti.gov.za
To conclude, ladies and gentlemen, South Africa has achieved a number of successes over the past nine years and there has been substantial growth in our economy. As I mentioned we have grown our exports and have seen growth in the manufacturing and services sectors. These improvements have resulted in a greater stability for our country at a number of different levels. We are well aware of the many economic challenges that face us - job creation being one of the most important. However, the path that we are on has set a solid foundation for growth and development.
It is important to note that the changes that I have spoken about tonight are applicable to the entire economy. We are committed to ensuring that there is development across the country and not only in selected regions with historical successes in economic development. In going to other regions we will be working with the business community in these regions and ensuring that they can benefit equally from what the Department of Trade and Industry has to offer. However, it is not a one-way game - we need the participation and active involvement of all players in South Africa if we are to be successful in growing and transforming our economy.
In looking at the structure of the Northern Cape economy and the unemployment levels in this province there are changes that need to take place in order to shift the focus of this regional economy so as to achieve the substantial economic growth that is required. I hope that in my presentation here tonight I have given you some food for thought and it is up to you to see how these changes will impact on your business. The questions that I ask you are: what will you be doing differently tomorrow, what business opportunities exist in this region, in South Africa, in Africa or in the rest of the globe that you can take advantage of; and what new businesses will you be starting?
I thank you and hope that you enjoy the rest of your evening.
Issued by the Office of the Deputy Minister of Trade and Industry
22 May 2003
Source: Deputy Ministry of Trade and Industry
Title: Hendricks: Gala Dinner for Northern Cape business community
KEYNOTE ADDRESS BY THE DEPUTY MINISTER OF TRADE AND INDUSTRY, LINDIWE HENDRICKS, AT A GALA DINNER FOR THE NORTHERN CAPE BUSINESS COMMUNITY, Upington, Northern Cape, 22 May 2003
Programme Director, ladies and gentlemen, it is an honour to be speaking here tonight on the occasion of this gala dinner for the Northern Cape business community. There are a number of changes that are taking place in the South African economy and it is necessary that all economic actors are informed about these changes so that they too can play an active role in shaping the future of our economy and country. I hope that in my address tonight I will be able to provide you with some insight into the shifts that are taking place in our country and the direction that we in the Department of Trade and Industry would like to take the country.
Through these changes many new opportunities will be created for entrepreneurs. However, many challenges will emerge for enterprises that do not respond or deal with the realities of the modern economy. The impact of this is that these enterprises might not be sustainable and their future survival might be under threat. It is therefore important that you as the business people of this region clearly understand where the business opportunities and threats lie and are the people who are at the forefront of change in this province.
The importance of changes to the economy cannot be underestimated. Last week I attended a forum of African, Caribbean and Pacific countries where several of the countries in this group are facing ruin because of their historical policies of single commodity production. The representative from Kenya indicated his distress to the forum when the issue of sugar quota's to the Europe Union was discusses as close to three million people in his country are dependent on sugar, with the fall in the price of this commodity or allocation of quota's by the EU to other markets the prospects look bleak. Kenya was not alone in expressing their distress; several countries raised concerns when the issues of cotton, tuna, bananas and other commodities came up.
Ladies and gentlemen, the hard lesson that we have learnt in Africa is that in order for our economies to grow and to turn around the devastation that we face, it is imperative that ways are found to diversify the economy - and this often requires hard decisions for these structural changes to take place. Clearly, it is necessary for any economy to have a multiplicity of sectors that it is engaged in so that the country or region can better withstand the shocks that any one of its sectors might face in global markets. The South African government has long recognised this need to diversify our economy. Over the past few years a number of steps have been taken by the government to promote these changes and to use the resources at our disposal to enhance our economy. Last year the Department of Trade and Industry (the dti) released its Integrated Manufacturing Strategy (IMS), which is our strategy for the changes that need to take place.
Key aspects of the Integrated Manufacturing Strategy are:
* To improve market access for South African products in key markets. Such markets include other countries in Southern Africa, Europe and America. Already we have been successful in improving our customs arrangements with Botswana, Namibia, Lesotho and Swaziland. Through NEPAD and other regional forums we will be improving trade relations with other countries in Africa. South Africa has also signed a trade agreement with the European Union, which has brought many benefits to South African exporters. I am aware that businesses in this region are some of these beneficiaries. The Africa Growth and Opportunities Act (AGOA) that was implement by America has also played an important role in improving amongst other things South African textiles and clothing exports into that market.
* Promote beneficiation and value addition. South African's have in the past not beneficiated the many natural resources that are present in this country and there are many opportunities to do so. We also have become experts in many areas for example, mining and mining technology. There are opportunities to sell our skills and expertise to other countries.
* Encourage big corporations and large companies to make greater use of small businesses. This is not only for equity purposes but also because internationally it has been shown that outsourcing and using small businesses as suppliers are a more efficient and flexible way of running an organisation.
* Find ways to capture knowledge and to use this information to our advantage. Increasingly knowledge has become a commodity and people with information on how things can be done or how they can be done better are at an advantage in a very competitive global economy. This 'knowledge-intensity' amongst other things would require greater use of technology.
* Greater integration between the different sectors in our economy so that they add value to each other. This is a complicated idea but it involves greater communication and interaction between firms in related sectors and industries so that collectively they can become more efficient and competitive. This includes the means through with businesses interact with each other such as transport systems, telephones, e-mails, integrated computer networks, etc. A good example of this is how South Africa is using a combination of natural resources, cheap energy, a pleasant living environment, port infrastructure and government services to attract major international investors to Port Elizabeth.
* Promote specific sectors that have been identified as both being competitive for South Africa and having international potential. These are clothing and textiles, agro-processing, metals and minerals, tourism, automotive and transport, crafts, chemical and biotechnology, and knowledge-intensive services.
Some of the areas that will be addressed in the implementation of this strategy are Black Economic Empowerment, small business development, increased use of information and communication technology, job creation, and more equitable geographic spread of investment and economic activities.
In developing this strategy we have recognised that it is the business community that will be the ones who effect these changes. The dti while providing leadership to the economic players of the country will partner with the business community and strategic industrial players in the implementation of this strategy. Part of our approach is to take this message to the broader business community of South Africa so that they understand the shifts that are taking place in the global economy and discuss with them how they are going to survive in this very competitive environment and what the dti can do to assist them.
The dti already has a number of incentives and mechanisms to support and assist businesses. For example there is the Competitiveness Fund and the Black Business Supplier Development Programme (BBSDP), which assist businesses with resources to enable them to improve their operations and modernise their businesses; the THRIP incentive and Support Programme for Industry Innovation (SPII) which funds technological innovations in businesses; and the Manufacturing Advisory Centre (MAC) programme which assists businesses with advise and support on how to become more competitive. In addition to these instruments there are a number of incentives that give grants and tax breaks for expansion of enterprises and new investments. The dti through Trade and Investment South Africa (TISA), also has a programme to encourage exports and incentives to assist with the travel costs of exports. My colleague from TISA will provide you with more information on this during his presentation.
These are not just nice ideas that we have come up with in our offices in Pretoria. They are ideas that we are implementing and real incentives that are available to the business community. The impact of our policies and incentives that we offer as well as the changes in the global environment has been felt by the economy. Some of the changes that you might recognise are the shift away from an over reliance on commodities such as gold, diamonds, and agricultural products to grow our value adding, manufacturing and services sector, as well as businesses focusing on becoming more competitive and export orientated. The results of this includes; we now have manufacturing and services contributing more to the economy with exports in manufactured goods growing significantly since 1990 - and have in recent years overtaken exports of primary goods. Our economy has also gone through the longest sustained period of growth since the 1960s and if things continue on this path it is set to be our longest ever growth period.
One of the consequences of our improved competitiveness is that there has been a negative impact on job creation; in addition we are still faced with the apartheid legacy of economic inequality in our country. We are committed to addressing these problems and as I have mentioned are attempting to resolve them through the Integrated Manufacturing Strategy. Small business development and black economic empowerment are key in addressing these problems.
We have used a number of mechanisms to supply information on our support to small businesses such the dti train, newspapers, other publications, radio, TV, the local business service centres established by Ntsika and Business Referral and Information Network established by NAMAC. I will not cover this support in my presentation to you tonight, however, if you still have any queries on the support available to small businesses or any area of the dti support you can our customer call centre on 0861 843 384 or visit our website at: www.thedti.gov.za
To conclude, ladies and gentlemen, South Africa has achieved a number of successes over the past nine years and there has been substantial growth in our economy. As I mentioned we have grown our exports and have seen growth in the manufacturing and services sectors. These improvements have resulted in a greater stability for our country at a number of different levels. We are well aware of the many economic challenges that face us - job creation being one of the most important. However, the path that we are on has set a solid foundation for growth and development.
It is important to note that the changes that I have spoken about tonight are applicable to the entire economy. We are committed to ensuring that there is development across the country and not only in selected regions with historical successes in economic development. In going to other regions we will be working with the business community in these regions and ensuring that they can benefit equally from what the Department of Trade and Industry has to offer. However, it is not a one-way game - we need the participation and active involvement of all players in South Africa if we are to be successful in growing and transforming our economy.
In looking at the structure of the Northern Cape economy and the unemployment levels in this province there are changes that need to take place in order to shift the focus of this regional economy so as to achieve the substantial economic growth that is required. I hope that in my presentation here tonight I have given you some food for thought and it is up to you to see how these changes will impact on your business. The questions that I ask you are: what will you be doing differently tomorrow, what business opportunities exist in this region, in South Africa, in Africa or in the rest of the globe that you can take advantage of; and what new businesses will you be starting?
I thank you and hope that you enjoy the rest of your evening.
Issued by the Office of the Deputy Minister of Trade and Industry
22 May 2003
Advertisement
EMAIL THIS ARTICLE SAVE THIS ARTICLE FEEDBACK
To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
