Ministry of Trade and Industry
Hendricks: Pan-African Women in Business International Conference
Opening remarks by Deputy Minister of Trade and Industry, Ms Lindiwe Hendricks, at the Pan-African Women in Business International Conference, Sandton Sun Intercontinental Hotel, Johannesburg
3 March 2005
Chairperson of the Women in Business International Forum, Mr Ahmed Suleiman Honourable Minister of Trade and Industry Tanzania, Mrs Rita Mlaki First Lady of Gauteng, Mrs Wendy Luhabe Ladies and gentlemen.
Again, welcome to South Africa, a country alive with possibilities. It is a great privilege to host all of you, and I must confess that I am excited to see all of you bright and lovely this morning. Obviously you have had a safe landing and a good rest after last night’s welcome cocktail. Many thanks go to you, your companies and your families for taking time to be here with us.
I want to assure you that you have come to the right place – one where issues of women empowerment have space in our broad economic agenda. As South Africa goes beyond ten years of democracy, my government, and in particular my department, has committed itself to take this issue to greater heights. Hosting this conference this year rather than as it was planned for last year, I must acknowledge to Mr Suileiman that the conference could not have come at a better time. The time is now and the time is right.
This gathering is about sharing of ideas, business knowledge, as well as sharing of skills and expertise. The two-day discussions will offer all of you a unique experience. This is the experience of engaging with one of exceptionally “extra ordinary” valued segment of our business clientele. These are African as well as South African Women in Business. Like in most of your countries, South African business women are still a reservoir untapped, needing and worthy of being discovered .This you can say from your experience of working with women over the past ten years both at an organisational and at government level.
My assumption is that some of you might have been to South Africa before. At the same time, I am also aware of the fact that even if this may be the case, most of you would have not heard about the SA Model of Women in Business. The popular model is that we have promoted well internationally is the one on Women in Politics.
The SA Model - Women in Business
Ladies and gentlemen, the South African model of WIB is about the history of women, their struggles and what they have achieved today. Their efforts, strength and determination have successfully and rightfully earned them the title of Women in Business, a force to be reckoned with in our economy. This historical struggle that I’m referring to is that struggle where being a woman in business was a far- fetched reality for many. Prior to 1994, it was a far-fetched dream for most women to start and run a formal business and many were pushed into the informal sector. Black women in particular were faced with many difficulties thus forced to become business partners with male family members in order to be engaged in entrepreneurial activities. Resources used to establish their enterprises were often drawn from personal funds or borrowed from family members as bank loans for such businesses were rare and required their husband’s approval. In all, promoting women’s entrepreneurship was far from the realities and struggles of the day. Mainstreaming women in business was not even on the agenda! Political and Economic Empowerment
As business women ten years later we have many reasons to celebrate our achievements. The advent of our democracy in 1994 afforded South African women in particular black women the opportunity to cast an independent vote as equal partners to their male counterparts. It is encouraging and it makes me proud to stand here today pronouncing what they have managed to do with that vote. Through their political vote, women managed to determine and secure economic rights. This includes the right to equal employment, an equal salary, a working environment where sexual harassment is not tolerated, and representation and participation in related decision-making structures and forums. All of these have been made possible through government’s initiatives, mainly policies such as the affirmative Action, National Policy on Transformation, procurement policy and the Employment Equity legislation. Such achievements, attained mainly in the workplace, have rightfully earned South African women the title of businesswomen.
South African women also took the challenge of advancing their economic rights by accessing opportunities in the fields of wealth creation. This included entering entrepreneurship in huge numbers. It is in this arena where the dti assisted in empowering women as critical role players in the economy.
The political emancipation that took place in 1994 was only the beginning of many things to come. South Africa is a society where women entrepreneurs have vast opportunities and possibilities. Women entrepreneurs are determining the quality and the quantity of the resources that they need as part of redefining their role and place in our economy. The profile of women entrepreneurs today in South Africa has dramatically changed in terms of numbers, profile and involvement as compared to before 1994. Through our initiatives as the dti, the country has experienced an increasing interest and involvement of women in managing and owning enterprises. This confirms the fact that they have taken the challenge of advancing their economic rights by creating and accessing opportunities for themselves in the field of wealth creation.
South African Women Entrepreneurs
The majority of SA women entrepreneurs are urban dwellers as urban areas are where economic resources are mostly located. Today the average company turnover of a South African woman owning a small to medium enterprise is estimated at R1, 5m per annum (approximately $200 000). Women currently own enterprises in sectors including services, arts and craft, manufacturing, agriculture, and clothing and textiles. Their advancement has led them to even enter sectors previously dominated by males.
According to the SADC survey on SMMEs conducted by Business Map in 2003, representation and participation of women in different sector includes: agriculture 4%, construction 12%, communication 3%, manufacturing 36%, retail 9%, wholesale 7%, services 42%, transport 20% and others account for 11%.
A recent interesting entry has also been seen in the area of minerals and energy. Thelma Mathamelo from Marothodi Resources, who will be addressing us later in our programme, is one of these women.
Institutional Mechanisms
As more women establish enterprises, they have also identified the need to organise themselves into business structures. These organisations mainly lobby various stakeholders in securing and accessing resources for supporting their enterprises. In the past three years, several women business structures have been established. Their membership ranges from 500 to 1000, with most if not all members owning and/or managing enterprises. These organisations continue to play an important role in changing the perceptions of women entrepreneurship and making it an acceptable, if not a desirable, career path for women. Later in your deliberations, you will hear more on these. Members of these organisations are also here to network with you. South African Women Entrepreneurs Network (SAWEN), of which I am the patron, is one of these. A presentation on what SAWEN is all about will be presented later to all of you.
Broader Economic Empowerment
The above-mentioned policy initiatives have become an effective tool for us to establish programmes. Ladies and gentlemen, it is very important that we do not underestimate the value of these policies. They are the cornerstones for further establishing support programmes for women and further entrenching the mainstreaming of women in the economy. We have been able to ensure that women participate as equal partners in various trade missions, win tenders and secure contracts, access technological support for growing their business, and access funding. The most celebrated recent achievement has seen our women entering the male-dominated business sectors such as Minerals and Energy, Commercial Farming, as well as Construction.
The past ten years, which has seen substantial empowerment of women taking place in our economy, has been supported by the general improvement in the economic environment. Our democracy, our empowerment legislation, and our support programmes, which I have spoken about, have along with the growth and stability of our economy provided new entrants with greater scope and opportunities. This favourable environment for business is a result of our pursuing stable macro economic policies – we have reduced our inflation rate from close to 20% a few years ago to between 3% and 6% pa; we have brought down interest rates to half of what they were; and our fiscal deficit is approximately 3% of GDP.
These macro economic stability measures have positively contributed to South Africa’s economy and we are currently going through our longest period of sustained economic growth in over 50 years. The growth, while not high enough to eradicate unemployment and poverty in our country, has been on average 2.8% per year and has built a solid foundation for an expansion of our economy in the next 10 years. We now have the resources to embark on large-scale infrastructure development programmes, extensive public works programmes, and skills development programmes, while still ensuring that there is a basic social welfare safety net. This expansion of our economy will create opportunities for women enterprises and it is imperative that we provide greater levels of support to women so that they do not miss out.
Way Forward
In closing, we want to ensure that this is not just a talk show, as many tend to think. This initiative – Women in Business International - very much reflects and mirrors the policies and initiatives of the dti as we look to encourage women to participate in the mainstream economic activity in South Africa.
As part of this long-term approach, we do not want the energy created by this Forum to end on Friday evening. We want to see the continued exchange of skills and knowledge. I am happy to announce that together with Women in Business International we will be creating a mentoring programme for future businesswomen of South Africa and the Pan-African diaspora. This means that an international board of experts and successful businesspeople will be on line and even in person to support, encourage and advise businesswomen on a professional and personal development basis.
I understand that there are several senior businesswomen in the UK and Europe who have pledged their support. I hope we will all take the business experiences and tips that will be shared with us over the two days and use it to make our business successful and our countries.
Thank you for the opportunity and all the best for the rest of this conference. First time visitors to South Africa please enjoy our lovely county and the hospitality of South Africans. Visit our historical sites and take with you a bit of South Africa at the end of the conference.
I thank you
Issued by: Ministry of Trade and Industry
3 March 2005
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