Issued by: North West Communication Services
ADDRESS BY NW PREMIER POPO MOLEFE AT THE OPENING OF THE BULK MINING EXPLOSIVES FACTORY IN FOCHVILLE ON OCTOBER 25.
Since the inception of this government, our main aim has been to address the problems of poverty and the gross inequality evident in almost all aspects of our society The government has therefore given its full attention to the fundamental task of job creation and generating sustain able economic growth.
The objectives of reconstruction and development on the one hand and sustainable economic growth on the other, are interdependent, Our ability to meet the basic needs of the poor depends primarily on increased capital investment in the social and economic infrastructure such as housing, industry roads. clinics telecommunication and others.
It is on this understanding that the government is committed to the task of ensuring that suitable conditions are maintained within which business can be in a position to contribute to the successful implementation of the Reconstruction and Development Programme.
The government believes that the private sector has a critical role to play in the promotion of economic growth, To this extent we will continue to do all in our power to maintain the right environment in which the "goose that lays the golden egg" can get on with its job.
We believe in the principle of working, together with the private sector in a partnership. We will continue to ensure that the province maintains the high levels of industrial peace and political stability it currently enjoys and mobilise all major sectors and communities to keep crime at manageable levels. Labour and Business too must play its part towards this strategic goal
We are convinced that Bulk Mining Explosives is coming to a province in which the correct climate exists for increased investment. We welcome Bulk Mining Explosives with open arms in the full confidence that together with you, we will forge a common approach that primarily addresses itself to ensuring the following elements:
- restructuring and modernising the economy of the province - rapid and sustainable economic growth and development - redistribution of wealth, income and opportunities - reduction of unemployment and poverty, and - finding a proper place within the regional African and world economy.
Our economy is comparatively small, it contributes about 6,9% to the National Gross Domestic Product. Production is dominated by the mining industry, which contributes some 60 percent of the province's Gross Geographic Product.
Although mining should be the backbone of the economy of the province, it is not. Much of the raw material extracted from the bowels of the province as well as salaries leave the province. There is limited value added product and forward and backward linkages between this industry and other sectors.
What this situation tells us, is that the province's economic partners need to develop a common approach to address the challenge of economic diversification.
Extra steps are needed to create more forward and backward linkages, including sub-contracting and out-sourcing to be done in the province. The establishment of a factory such as this one is a further step in that direction. We hope that soon, much of value-adding to raw materials is also going to be done in this province to create more jobs and contribute to the growth of our economy.
Central to the task of creating strong socio economic base is the need to open up opportunities for the growth of small and emerging businesses. The small and medium sector represents an important vehicle to address the challenges of job creation, economic growth and equity in our province.
Throughout the world, this sector plays a critical role in absorbing labour, penetrating new markets and generally expanding the frontiers of economic environment, the small sector in this province can also become an important partner in realising our hopes and aspirations for our economy.
In our commitment to developing an appropriate and coherent strategy for the growth of this sector, we hold ongoing and serious consultations with all the major stakeholders including mining houses.
Since 1995 there has been a search for consensus about support needs, feasible programmes and consistent provincial strategy. This process culminated with the launch of our Provincial SMME Support Programme on the 13 August this year which is the brainchild of:
our provincial Department of Finance & Economic Affairs, the Northwest Business Forum, the Small Business Advisory Bureau, and the North West Development Corporation.
The government has budgeted R5,6 million towards the first phase of the programme in terms of which the NWDC is going to provide basic services such as:
- business counselling - capacity building - infrastructure provision financing
Chairperson, this programme demonstrates the commitment of the government to the strategic objective of broadening economic activity, to encourage entrepreneurship and to create equity. However, we are of the view that the small enterprise sector should not be treated like a "junior partner".
Our efforts, and those of established businesses, should be viewed within a broader vision of the South African economy, which includes all businesses.
It is within this broader vision that we welcome Bulk Mining Explosives as a full and deserving partner. Thank you for your confidence in our province. We would like to encourage all major players, the Transitional Local Council, the Mining Industry, the Civic Movement, the Trade Union Movements, business associations and other interest groups to develop a strong local economic development partnership with Losberg.
That partnership is what the Masakhane Campaign calls for.
It is now my honour and privilege to officially open the factory and I wish everyone many happy returns.