Date: 14/03/2008
Source: Department of Science and Technology
Title: SA: Mangena: Opening of Africa Technical Centre

Remarks by Minister Mosibudi Mangena at the opening of the Africa Technical Centre, Midrand

Programme director
Coca-Cola Africa Group President, Alex Cummings
Coca-Cola South Africa President, William Egbe
Public Affairs and Communications Director for Coca-Cola, Kaiser Nyatsumba
Technical experts
Ladies and gentlemen

South Africa is an integral part of the global manufacturing base. As is the case with all industrialised countries, South Africa's companies are under increasing pressure to address issues relating to Safety, Health, the Environment and Quality. This pressure comes from communities, workers, customers, shareholders and government.

International conventions govern companies where manufacturing processes are a threat at a global scale, and where countries have recognised that minimum specifications must be set to condition or control impacts on human health or the environment.

As some of you might be aware, South Africa is party to various international conventions. We can mention here:

* the Basel Convention, which regulates the trans-boundary movement of hazardous waste
* the Montreal Protocol, on substances that deplete the ozone layer
* the Rotterdam Convention, which ensures prior informed consent to imports
* the Stockholm Convention on Persistent Organic Pollutants; and
* the Kyoto Protocol, which is intended to limit the emission of climate changing gases into the atmosphere.

South Africa does everything in her power to comply with international requirements, although the lack of appropriate testing facilities here is sometimes a limiting factor. Needless to say, as government, we continue to work on the introduction of appropriate testing facilities to enable compliance with these international agreements. The biggest challenge, though, involves compliance with quality standards in certain specialist industries. These include quality standards for the nuclear manufacturing industry, and the sanitary and phytosanitary (SPS) standards for the consumable goods industry. In such cases, the technology requirements are fairly advanced, and may even require Research and Development (R&D) and technology development.

The challenge of compliance is particularly difficult for the small and medium enterprises (SME) sector. This is mainly due to factors such as non-dedicated compliance-officers, lack of skills worsened by high attrition rates, and lack of capital to implement related technology. This challenge requires a networked approach with standards organisations such as South African Bureau of Standard (SABS) and other South African National Accreditation System (SANAS) accredited bodies, industry associations and technical R&D centres.

In terms of shifting energy demand patterns, we have been actively promoting the uptake of solar water heaters for household use. Recently, we launched the Solar Water Heater Test Rig, a unique facility in Africa, aimed at testing the efficiency of solar heaters for geysers produced in our country, and consequently encouraging communities to start relying on solar energy.

Unfortunately, some households may reject such energy option if manufacturers do not comply with minimum performance requirements. Recognising this challenge, we commissioned a team involving our South African Bureau of Standards, research organisations and government developed a programme to provide technical support to manufacturers and facilitate testing. Many governments in developing countries found out the hard way how their progress could be compromised and investments wasted if there was no testing infrastructure to assure achievement of safety or quality conditions.

It is in this context that we have to applaud Coca-Cola's initiative as a step in the right direction. We regard the Africa Technical Centre as a good example of your commitment to the upliftment of both industry and our people, leading to higher levels of economic growth and development, particularly through science and technology.

I am reliably informed that Coca-Cola makes a direct contribution of about R8,4 billion to our country's gross domestic product, and an additional R15,8 billion indirectly, through associated upstream and downstream multiplier effects. Together, I am told, the group's direct and indirect contributions constitute 1,4 percent of total Gross Domestic Product (GDP) in South Africa. Apart from this quantifiable impact of the Coca-Cola Group on the South African economy, I understand the group also contributes to the growth and strengthening of the informal sector, a contribution that can never be adequately quantified.

Soft drinks are the single most important product in the turnover of small and informal businesses in the whole of Africa. Soft drinks also serve as a major draw card for customers to informal outlets, which results in the buying of additional products. Of particular importance to a sizeable portion of our informal businesses is Coca-Cola's contribution to the provision of equipment, as well as signage indicating the location of these small businesses. We are convinced that South Africans greatly appreciate your contribution to our socio-economic landscape.

Government has made great progress in addressing testing facilities in three broad areas - safety in the workplace, consumer protection, and environmental protection. This testing facility encompasses all three of these areas. While risks can be mitigated only if one is certain of the extent of the risk, innovation can be triggered if one is directed by appropriate test results which, thanks to this new facility, will now be available.

Ladies and gentlemen, my department is proud to be associated with the establishment of this state-of-the-art laboratory. We believe that this is an important step towards good laboratory practice, and will go a long way towards ensuring that products produced here are of the highest quality. We believe the Africa Technical Centre will leverage analytical capability, increase employment opportunities, and trigger innovation within the chemical industry.

Certainly, Coca-Cola has done us proud by establishing this initiative, which will facilitate the global marketing of our products. Africa can only succeed in introducing quality products to global markets through the introduction of such benchmarking facilities.

My department is fully aware of the challenge of finding the skills required to manage this facility. To meet this challenge, together with our corporate partners, we must put together a human resource development strategy aimed at ensuring that this unique, state-of the art laboratory gets the skills it needs.
We believe Coca-Cola can also work with the South African Research Chairs Initiative and liaise with science councils such as the National Research Foundation to ensure there are long-term human resource development plans for the centre.

The Research Chairs Initiative plans to introduce 210 chairs by 2010 in order to increase the number of highly trained researchers in our society. To date, 72 chairs in various research fields have been introduced, and we are looking forward to establishing a chair that will specifically address the skills gap for this facility.

In closing, allow me to once more voice our sincere appreciation for the invaluable contribution that Coca-Cola has made through this project. It is indeed now my singular pleasure to declare this facility officially open.

Thank you.