The MEC for Finance and Economic Development; Honourable Dr Zweli Mkhize;
Honourable MEC's;
Mayor of Sisonke District, Councillor J.P. Khoza;
Mayor of Ubuhlebezwe Municipality, Councillor N. Peterson;
Honourable Mayors;
Group Chairman of Broader Equity; Mr. Dan Cloete;
CEO of Broader Equity, Mr. Ashton Hoorzuk;
Industry representatives;
Ladies and gentlemen;

Thank you for inviting me to this important launch of the first rural call centre in our country.

It is wonderful that we have come together to celebrate progress and development. It shows that we are growing the economy and that our people in every corner are using the opportunities created by freedom.

The centre is being launched today on World Food Day, an appropriate day in the fight against poverty, in the quest for sustainable development.

World Food Day highlights the plight of 923 million undernourished people in the world, according to figures from the Food and Agricultural Organisation. Most of them live in rural areas where their main source of income is the agricultural sector.

The private-public partnership being launched provides opportunities to explore the potential for investments in a small town. It offers us an opportunity to see what is possible and what can succeed, in the fight against poverty, unemployment and for sustainable rural development.

We have achieved a lot in 14 years as a country. However, we must work further still to ensure that we bridge inequalities especially the gaps between rich and poor, urban and rural, black and white, men and women.

The urban-rural gap is exacerbated by a two fold process of growth, which accelerates development in the dominant economic centres, which are well connected to the global economy, while rural areas remain marginalized. As the ruling party we have committed ourselves to a comprehensive and clear rural development strategy, which builds the potential for rural sustainable livelihoods, particularly for African women, as part of an overarching vision of rural development.

We have also given an undertaking to continue promoting broad-based BEE aimed at broadening and de-racialising the ownership and control of productive assets by black people, women and youth. We seek to promote new black enterprises which are engaged in the production of goods and services, building the skills required by the economy and advancing employment equity in every area of work and economic endeavour. We view rural development as a central pillar of our struggle against unemployment, poverty and inequality.

High levels of rural poverty and inequality inhibit the growth of our economy and undermine our efforts to ensure that growth is more equitably shared amongst our people.

We are committed to improve our rural development initiatives, and to ensure that people in the countryside receive the services obtainable in urban areas. We are also strongly committed to creating thriving rural economies.

The entrepreneurs behind this project are giving meaning to this commitment, and are showing us our approach is correct and feasible.

Our view is that through promoting thriving rural economies, we will provide the means of sustainable livelihoods for many families in the countryside, and fight poverty. Rural economic development also challenges our young people to become entrepreuneurs in their own right, and enter new areas of business, not as job seekers but as job creators as well. The challenge for the democratic government is to ensure that all regions and their residents attain their full economic potential.

In order to achieve this, blockages and barriers to trading need to be addressed.

Our intended creation of a thriving rural economy will need to address key obstacles to the functioning of our local economies. One of these obstacles is the lack of infrastructure to enable all regions to access markets and resources and to attain the full economic potential of which they are capable.

The basic infrastructure, which is required, consists of access to international airports and ports, roads, electricity and skills development.

One of the effective interventions in promoting rural development and entreprises is business process outsourcing, or call centres.

We are therefore happy to be launching this very first rural-based call centre. This has worked for other developing countries; we should make it work for our country too.

As you would be aware, we have made the creation of decent work the focus of our economic policies. We want economic growth that produces decent work and which helps us to fight poverty.

The creation of 175 jobs in this venture is an important contribution to fighting unemployment in this district, especially since 40% of the workforce come from the surrounding municipalities.

The enrolment of 150 young people in a training project is another important contribution towards skills development.

The project is a step in the right direction, with replication in other rural towns we will make this new age business entreprise, Business Process Outsourcing, to thrive in our country.

Ladies and gentlemen you would have heard the messages from the Independent Electoral Commission, urging citizens to register to vote and to apply for identity documents.

Let us heed this call. The right to vote was won through the blood, sweat and tears of our people and we must use it to improve our lives and those of future generations.

Ladies and gentlemen you would also be aware of the financial crisis in the developed world. South Africa has so far been insulated from the current global financial crisis - thanks to our prudent regulatory framework, including the National Credit Act and exchange controls. However, the world economic downturn will surely affect our economy growth, unevenly affecting our economic forecasts and export capacity. The ANC will assess the extent in which the current economic climate may affect our on-going major infrastructural programmes.

I wish the Broader Equity Company and all partners well in this project.

I thank you.