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Polity
Published: 16 Nov 2004
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| Ndebele: Launch of Investing in South Africa publication (16/11/2004) | |
| Date: 16/11/2004 Source: KwaZulu-Natal Provincial Government Title: S Ndebele: Launch of Investing in South Africa publication ADDRESS BY THE PREMIER OF KWAZULU-NATAL, MR SBUSISO NDEBELE, AT THE LAUNCH OF THE 'INVESTING IN SOUTH AFRICA' PUBLICATION, South Africa House, South African High Commission, London, 16 November 2004 Your Excellency, South African High Commissioner, Ms Lindiwe Mabuza; The Deputy South African High Commissioner, Mr Cyril Ndaba, The KwaZulu-Natal MEC for Arts, Culture and Tourism, Mr Narend Singh; The officials of the High Commission; Captains of industry and potential investors to South Africa; Ladies and Gentlemen In 1984, the President of the African National Congress, then a banned movement, Mr Oliver Tambo, said this of London during a meeting to declare the year 1984 as the Anti-Racist Year. This is the London that first forged links with the African National Congress seventy years ago, when it sheltered our then Secretary-General Solomon Plaatje. This is the London of Fenner Brockway, who met and welcomed Solomon Plaatje at the time. It is the London we have known as the birthplace of the British Anti-Apartheid Movement, which this year celebrates its 25th anniversary, and one of whose most prominent founders is its current President, Archbishop Trevor Huddleston. By declaring 1984 Anti-Racist Year and adopting the Anti-Apartheid Declaration, People's London has become a formidable ally of all those who are engaged in combating racism throughout the world and especially in South Africa. As citizens of an anti-apartheid zone, more Londoners will be mobilised into action to isolate the apartheid regime. Many have already responded to the campaign of the Anti-Apartheid Movement by boycotting South African wines, Cape grapes and Outspan oranges; by cutting sports and cultural links with racist South Africa; by contributing money to the British Defence and Aid Fund, and support to the ANC and SWAPO of Namibia for their humanitarian needs. They have spoken out against apartheid at schools and universities, within the trade union movement, the political parties, the church, inside Parliament and indeed even at annual general meetings of leading British companies with investments in South Africa. Ladies and gentlemen, it was exactly two decades ago, at the height of apartheid repression when our leaders were hounded out of their own country and others, like Nelson Mandela, were languishing in jail that Oliver Tambo stood up to utter these words. It was at a time when it was not very popular to stand side by side with South Africa's foremost liberation movement but indeed the People's London, as Oliver Tambo affectionately referred to it, had dared to stare the apartheid beast in the face, and choose the side of the people. We are gathered here today, ten years after South Africa attained its freedom, to again meet up with our fellow combatants in People's London and declare that Oliver Tambo's dream of a free and democratic South Africa is being realised but we still need the support of our battle-hardened allies to reconstruct and develop our country and to consolidate our fledgling democracy. I am humbled, High Commissioner, that I, the Premier of KwaZulu-Natal, have been given the honour to say a few words at the launch of this catalyst publication - 'Investing in South Africa'. Mr James Lennox the Chief Executive Officer of the South African Chamber of Business (SACOB) hits the nail on the head when he says: 'We can't get the trading environment right until we get the political environment right'. No country can hope to attract investors if it cannot guarantee political stability. In South Africa, we are acutely aware of this and indeed, a glance at the profile of our country shows that we have a stable government under the stewardship of President Thabo Mbeki. South Africa - Gateway to Africa South Africa has worked its way towards being one of the major countries and a voice of authority in Africa. Even before the attainment of freedom, leaders such as Oliver Tambo, Dr Yusuf Dadoo and many others were highly-respected statesmen. Mr Nelson Mandela, when he became the President of South Africa in 1994, continued in the same vein, leading the way and ensuring that South Africa contributes meaningfully, not only to its own development, but the development of the whole African continent. The New Partnership for Africa's Development (NEPAD), the African Union (AU) and latterly the Pan African Parliament (PAP) are some of the tools that have a broader vision, a vision to develop Africa. President Thabo Mbeki is at the forefront of this campaign. Needless to say, South Africa has played a pivotal role in the conceptualisation and the running of these structures. In the publication it is said that if African countries have to choose between doing business with South Africa and other countries outside of the continent, they are most likely to opt for South Africa because of geography, identity and self-interest and also because of the view that South African companies are more likely to take a long term view, boosting fixed investment and local sourcing in African markets, than overseas companies. It is for this reason that our government has set itself a goal of beefing up diplomatic representation - an embassy or high commission in every African capital by 2007 - in order to strengthen trade links as well as political ones. These steps are aimed at further improving South Africa's exports to the rest of the continent. South Africa: an investor-friendly country Our government understands that it is not enough for us to urge investors to choose our country over others without actually spelling out what the monetary advantages are like. The Ministry of Trade and Industry has assured us that beneficial investment and export opportunities will arise as the South African government finalises its four designated industrial development zones which are located in Richards Bay, the Johannesburg International Airport, and the Coega Deepwater Port. However, our government has also announced that a suite of new investment incentives totalling more than R500 million has been allocated for investment incentive programmes in the current financial year. These will focus mainly on Small and Medium Enterprises Development Programme, the Skills Support Programme, the Critical Infrastructure Programme and the Strategic Industrial Programme. The Minister of Trade and Industry has also confirmed that exporters from South Africa will be assisted via the R200 million allocated to the Export Credit Insurance Corporation, while R112 million will be made available to exporters via the Export Marketing and Investment Assistance. Indeed, ladies and gentlemen, it is in the interest of anyone who wants to do good business to head to, to paraphrase Oliver Tambo, the People's South Africa and help redevelop and reconstruct that country through investment. KwaZulu-Natal The story of the province of KwaZulu-Natal, like the story of South Africa, sounds like fairytale. When the rest of South Africa was celebrating the attainment of freedom in 1994, political violence was at its zenith in that province. But, just when everybody had given up on KwaZulu-Natal, the ordinary people of that province came together and proclaimed that they were tired of violence and they wanted peace. They had realised that in other provinces work to reconstruct and develop was under way and they were getting left behind. They had come to the realisation that peace and stability ware pre-conditions for development and prosperity. Today, I stand in front of you to invite you to a People's KwaZulu-Natal, to exploit investment opportunities that exist and to help in the reconstruction and development of our province. Nature of our economy Our province, just like our country, is characterised by two parallel economies, the First and the Second. The First economy is modern, produces the bulk of our country's wealth and is integrated within the global economy. The Second economy is characterised by underdevelopment and contributes little to the Gross Domestic Product. It also contains a big percentage of our population, incorporates the poorest of our rural and urban poor, is structurally disconnected from both the First and global economy and is incapable of self-generated growth and development. Of the 9, 6 million people we have in our province, only 2, 86 million is defined as being economically active. While state intervention is necessary to address this challenge, there is a need for foreign investment to flow into our province in order to bridge the existing gap and to exploit the opportunities created by this scenario while helping to address the problem. The province of KwaZulu-Natal contributes 12, 4 percent of South Africa's gross domestic product. Its main economic sectors are coal export, commerce, forestry, fruit, manufacturing, steel, tourism, transport and communications. We share borders with three countries, Mozambique, Lesotho and Swaziland. We also boast the two largest harbours in South Africa - Durban and Richards Bay. In fact, Durban is the busiest hub port in Africa, handling 55 million tons of cargo per year while Richards Bay specialises in bulk exports. If South Africa is the gateway to Africa, then KwaZulu-Natal is the gateway to the rest of South Africa and the Southern African Development Community (SADC) countries. The Provincial Growth and Development Strategy The ANC-led KwaZulu-Natal government only came into power following this year's general election in April. Before this, that had never happened in KwaZulu-Natal. When I delivered my State of the Province Address, I promised that our government would, as a matter of urgency, develop a Provincial Growth and Development Strategy - foundation and framework for any development initiative in the province. Indeed, last month we launched this Strategy. Key among the initiatives listed in this strategy are: * Developing an international relations strategy maximising trade and donor funding benefits * Activation of the KwaZulu-Natal Growth Fund to expand public and private investment in local job creation opportunities * Development and implementation of an aggressive growth strategy to fully unlock the province's massive agricultural and eco-cultural tourism potential. Obviously, our Provincial Growth and Development Strategy is a living document and will also be influenced by the obtaining material conditions at a particular time but it remains the core of our programme of action as a government. Our hope is that through your investments, both in terms of new ventures and expertise; you will help breathe life to this document. We, as the government of KwaZulu-Natal, are confident of our ability to sustain and manage any investment that could be made to our province. That is why on 16 July 2004, I wrote to the President of our country as follows: We are formally requesting that we be given the honour to become the home of the Pan African Parliament. Our economy can support the Pan African Parliament and its location in Ethekwini will ensure that our economy grows and secures, beyond any doubt, peace, stability and social development for the people of KwaZulu-Natal. It is the same challenge that I pass on to this august gathering. Investment Opportunities in KwaZulu-Natal to realise our goal of making KwaZulu-Natal a winning province, we need the support of business, especially international investors. Our province is famous for its tourism appeal to foreign visitors. We currently enjoy 25 percent of the total foreign tourism market and attract the largest portion of the country's domestic market currently valued at R4 billion. In 2002, tourism contributed 36, 2 percent to the province's Gross Domestic Product (GDP). However, ladies and gentlemen, we feel we are still scratching the surface. The tourism potential existing in our country has not been exploited to its fullest potential. The area eco-cultural tourism, for example, has not been exploited to its fullest potential. With South Africa winning the bid to host the 2010 World Cup, opportunities to invest in tourism, construction and telecommunication industries have been opened. Other investment opportunities that exist include the areas of: * Aluminium conversion and fabricated products * Automotive components * Electronics * Engineering * Metal works * Petrochemicals as well as * Wood and wood products Ladies and gentlemen, our country is hard at work engaged in the task of developing and reconstructing our country. Our province specifically, which has lagged behind in terms of development, is a province that is trying to catch up with the rest of the country. We have enormous potential. Our government is committed to turning that potential into real growth for our country, our province. All we ask of business is to become government's meaningful partner to achieve a People's South Africa, a People's KwaZulu-Natal. I thank you Enquiries: Harry Mchunu Cell: 082 883 6698 Issued by: Office of the Premier, KwaZulu-Natal Provincial Government 16 November 2004 |
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