The South African government will make various interventions in the economy this year, to further encourage its growth and development, said President Thabo Mbeki in Parliament on Friday.

He said that the Growth and Development Summit, that was announced last year, is now scheduled for the beginning of May.

The summit is expected to address issues of higher rates of investment, job creation, economic restructuring and improved efficiency and productivity, as well as greater social equity.

Mbeki said all social partners would have to indicate what they would contribute to the common effort to tackle these various challenges.

“For its part, the government has been working on its own contribution, some of which is indicated in this State of the Nation Address. We will complete our submission in the near future and make it available to the participants at the Growth and Development Summit,” he said.

He revealed that government's economic programme would focus on:
– Continued implementation of the existing micro-economic reform programme;
– Investment in the economic infrastructure and other measures;
– Small and medium business development;
– Micro-credit for productive purposes;
– Black economic empowerment; and
– Job creation.

Mbeki said South Africa’s micro-economic reform programme has taken advantage of achievements made in stabilising the macro-economic environment.

This included focussed action in specific growth sectors, such as agriculture, mining, tourism, cultural industries, information technology, clothing and textiles, vehicle manufacturing and chemicals.

“We will now add to this list the aerospace sector, as well as call centres and back office business processing. In addition, specific programmes will be put in place this year to improve assistance to, and expand the pool of exporters,” he stated.

These programmes are aimed at instituting changes to the Export Marketing Assistance Scheme and upgrading the country’s representation in strategic markets abroad.

Mbeki announced that more than R100-billion has been set aside for capital expenditure in the MTEF period, including, at national level, R55-billion for infrastructure. Planned investment by the major State corporations for 2003 is at least R32-billion.

“This investment will include key economic infrastructure projects, such as the construction in the coming period of the John Ross Highway to Richards Bay, a dam on the Olifants River, in the Limpopo Province, to provide water for platinum mining and agriculture, the construction of the Ngqura (Coega) port and concessioning of the Durban Container Terminal,” he explained.

Government’s planned improvement of infrastructure at the KwaZulu-Natal coast includes the relocation of Durban International Airport to La Mercy and the establishment of the Dube Trade Port.

Mbeki said that within eight months details in this regard should be finalised for the private sector to be invited to take part in the project.

“Massive investments will be dedicated to upgrading and acquiring railway rolling stock, as well as the Taxi Recapitalisation Programme, which, after extensive consultations, should start this year,” he said.

Further work will also be done to improve the infrastructure at major border posts to facilitate movement of people and goods.

This, Mbeki said, must be accompanied by the appropriate staffing at transit points to eliminate inefficiencies that arise from under-trained personnel.

“Further, to reduce the cost of doing business in our country, with regard to liquid fuels, the government has decided to replace the In Bond Landed Cost pricing mechanism with what is referred to as the Basic Fuel Price formula.

“This new approach, which we believe will save fuel users more than R1-billion a year, will be phased in, starting in April this year. We wish to assure the industry that this process will be handled in a manner that does not adversely affect the sustainability of the industry and elements of black economic empowerment already agreed upon,” Mbeki added.