Keynote Address by Deputy President of the Republic of South Africa Ms Phumzile Mlambo-Ngcuka during the Energy Summit

Minister of Minerals and Energy, Buyelwa Sonjica
Premier of the Gauteng province, Mr Mbhazima Shilowa
Mayors and councillors
Advocate Nogxina and counterparts
Captains of industry
The leadership of organised labour
Distinguished guests
Ladies and gentlemen

It gives me great pleasure to have the opportunity to send a short message in this the very first South African National Energy Summit since the approval of the White Paper on Energy Policy by Cabinet in 1998. I am saddened by the fact that I could not physically be there with you today, but I am with you in spirit. The Department of Minerals and Energy remains my extended family.

As we meet, oil prices are in the headlines. Energy security is again high on the political agenda and increasing our own generation capacity is on top of our agenda. Climate change plays a significant part of the debate. Government leaders are concerned. Oil importing, industrialised countries warn of the detrimental impact that high oil prices have on their individual economies and on the world economy. Oil-importing developing countries suffer even more than before from increasing oil import bills.

If this shorter-term perspective is challenging, the longer-term scenario could be more daunting; not least for Africa in a do nothing scenario. These energy developments will influence that changing geopolitical climate including the geopolitics of climate change. This event presents an opportunity for all stakeholders in South Africa to engage with the policy makers, influencers and owners of capital so that together we face the challenges. It is well known that cheap energy fuelled economic growth of most Organisations for Economic Co-operation and Development (OECD) countries and the United States America (USA).

They are now rich and can afford to pay very high prices, as is evident by the high taxation on most energy carriers. Being a developing economy and an importer is more difficult, as without cheap energy, or some other endowment that can pay for expensive energy, one cannot easily achieve the sustainable economic growth. As developing countries grow their economies, their need for energy can limit economic growth.

No country in the world has succeeded in shaking loose from a subsistence economy without access to the services which modern energy provides. The history of development identifies it as one of the prerequisites to facilitate social development and fuel growth. Our country industrialised at the back of cheap and abundant electricity.

Across Africa, as it is, access to modern energy is stagnant at best, while in some countries access is declining as utilities flounder and service extensions fail to keep pace even with population growth. This stagnation shuts off the possibility for tens of millions of Africans to participate in the development process.

We in South Africa are still in a more fortunate situation even with our own demand challenges and cost of importing oil, so we have to implement the solutions we have identified. We cannot even think about not succeeding because energy is a catalyst for our shared growth. It is for that reason that I believe the Department of Minerals and Energy is best placed to deliver on most of the issues highlighted by President Mbeki in his State of the Nation Address earlier this year.

He reminded us of our key challenges which include, amongst others:

* intensifying the fight against poverty
* addressing the challenges of the second economy
* providing of basic services
* reducing the cost of doing business in South Africa.

We cannot grow this economy without access to affordable and sustainable energy. Today is a very special occasion for us as a country, as we take a moment to look back at what we have achieved since we adopted our first post apartheid energy policy. A lot has changed since then, both nationally and internationally, a lot has been achieved since 1998 but we still have more challenges ahead of us!

New challenges that need to be overcome have emerged; new frontiers have been defined which will have to be reached. You are aware that the President and I have worked with Directors-General and Ministers to highlight the priorities of priorities from the government Programme of Action (POA). This has given government and yourselves 24 programme areas that you need to familiarise yourselves with because by 2010 or even better 2009 we must see achievements and include:

* industrial policy implementation plan
* implementing intensive campaign on energy security including massive energy saving campaign and maintenance of energy infrastructure
* human resource development
* implementation of antipoverty campaign.

There are six million poor households in South Africa with 22 million people that we can rescue from poverty together with business, civil society and labour. In this regard, providing energy services to women is a make or break, because the meaningful development of women is the single most reliable weapon against poverty for humanity. The objectives of the energy sector are still the same and relevant. Increasing access to affordable energy services, access to basic services remains the imperative of the ruling party.

Improving energy governance there is a need for greater clarity of the role of state in the effecting of any investments. Stimulating economic development, there are number of questions that still need to be answered about the role of competition especially in the provision of key strategic infrastructure, especially those which are natural monopolies. We know transmission lines remain state owned and operated even in very active markets like the Noord Pool.

Managing energy-related environmental and health impacts although we have made significant head way in the provision of electricity, we have not solve the problem of household fuels provision. We still need to ensure a healthy balance between exploiting fossil fuels and maintenance of acceptable environmental requirements.

Securing supply through diversity as the Energy White Paper prescribes: "We need pursue energy security by encouraging a diversity of both supply sources and primary energy carriers." South Africa's historic place as leading and affordable country in the electricity industry has to be protected. It is one of the cornerstones of our success in our growth strategy, so must we protect it.

Our delivery of energy to the poor masses through massive electrification and the reliable and orderly supply of other energy sources to the nation are all part of our success story. We must be proud of our unique synfuels industry and expertise. We have two days of robust debate and deliberations ahead of us.

Minister, I am told that you intend to hold mini-summits on a more regular basis, an approach that I would strongly support as it will afford you an opportunity to fine tune the policy to be more responsive to the macro-economic challenges facing this government and the people of South Africa. We must push ahead with all aspects of broad based black economic empowerment (BBBEE).

To those speakers who flew in specifically to enrich our debate, I say thank you. Please take time to enjoy the rest of South Africa's hospitality. Ladies and gentlemen, I wish you all a very effective engagement and a successful Summit. It is through discussion, through dialogue, that we will be able the release all our people from the bondages of poverty and disease. And so Programme directors, I wish you every success in this great conference.

Issued by: Department of Minerals and Energy
26 September 2007