Issued by: Northwest Communication Services
11 May 1997
SPEECH BY NORTH WEST PREMIER POPO MOLEFE AT THE OPENING OF THE SOUTH AFRICAN PROPERTY OWNERS ASSOCIATION CONFERENCE - SUN CITY 11-05-97
The new century is almost upon us. As the 20th century comes to an end, millions of people across the world are looking to the new millennium as a new age of opportunity and a chance to make a new beginning.
Popular uprisings against unpopular regimes in various parts of the world in recent times have brought a new world order in which democracy occupies a central position.
Except for negative developments in many countries, there is reason to be optimistic that the 21st century is going to be quite different from the present.
I believe South Africans have much reason to embrace the new century with pride and optimism.
We are having a stable democratic transition. The advances we have made constitutionally show we are firmly on track in the efforts to create a patriotic society, one based on the principles of equal opportunity and social justice for all. We still have a long way to go, but with the support the majority of our people are giving to reconciliation and reconstruction, we have no doubt the democratic dispensation is rooted in our society.
Our international standing has improved to the extent we are assisting in resolving conflicts elsewhere on the African continent.
Against this positive background, overwhelming evidence suggests our economy is recovering in sharp contrast to the stagnation of the 80's.
As a result of the government's pragmatic macro-economic policies international confidence has returned. The reprioritisation of government expenditure in keeping with our policy framework for the delivery of social services continues to translate democracy into tangible reality for millions of disadvantaged people. The implementation of reconstruction and development programmes is continuing without compromising government's commitment to fiscal discipline.
A reduction in government borrowing as well as tax reform and a decision to phase out exchange controls from the beginning of July have strengthened the confidence of financial markets. South Africa has once more turned to the map of international investors.
We have also created opportunities for a partnership between the public and private sectors to grapple with the issues of opening the economy to international competition and enhancing investment.
Through the privatisation of public utilities there is positive indication we will be able to have more private sector investment in the provision of social and economic infrastructure and other strategic areas.
In spite of these achievements, the economic growth of 3,1% has not succeeded in reversing the unemployment crisis in the labour market.
For the economy to create opportunities for the 400 000 people who leave schools annually, it has to grow at a rate of six percent a year.
Achieving this growth level will also accelerate the momentum of the equitable distribution of income and wealth, and provide the adequate resources necessary for the expansion of social services delivery.
The government has taken important policy actions this year to build on the foundation laid in the past three years, and to focus its attention on meeting the challenges of investment and job creation. We believe sustainable employment creation requires a consistent investment of both foreign and domestic capital.
One of our strategic priorities for capital formation is to raise the levels of infrastructure provision for social and economic services.
This is an important pillar of our National Strategic Vision for Growth and Development and a strategic objective of the GEAR framework.
The redistribution and development thrust of this year's budget reflects the government's commitment to take the lead in Investing in RDP Projects.
However, we are aware that the enormity of these challenges requires substantial amounts of capital from other sources to augment the resources in state departments, development corporations and public utilities.
The Maputo and the TransKalahari corridor developments are initiatives playing a critical facilitating role in attracting the amount of investment required to finance the scale of infrastructure we need. We also have tax incentives that will be available for three years.
The present acceleration in housing delivery, electrification, sanitation and water provision and related services under the Municipal infrastructure Programmes have laid the basis for greater capital formation, job creation and meeting basic needs.
The land reform programme, designed to promote asset redistribution and enhance tenure, is also having a positive impact on efforts to improve the distribution of income and economic activity.
The North West government is researching a number of economic growth areas to facilitate spatial development initiatives. We will continue to knock on the door of the private sector for greater cooperation in meeting the critical challenges of economic growth and capital formation.
There is enormous opportunity for joint investment in public infrastructure needs such as housing, roads, airports, hospitals, clinics, educational facilities, grid electricity, sanitation and storm water, corridor development and rural development.
We believe the concept of a joint venture will have enormous benefits for both the public and the private sector. It will result in the provision of essential services and improve the overall quality of lives. It will also increase the levels of foreign capital, modernise information technology, telecommunication and transport. Progress in all these areas will expand economic activity, create more job opportunities, raise the level of labour productivity and broaden the scope for redistribution of wealth.
Within the context of the GEAR framework, the provincial government has set itself the economic growth target of 3,1% by the year 2000, sufficient to create 42 000 jobs per annum. We believe these targets are realistic and achievable.
Hence we have prioritised government investment to create an environment for private sector involvement. A thorough transformation of the public service, development finance institutions and local authorities is also an area which is accorded priority.
Chairperson and delegates, in developing partnerships we should also bear in mind these ventures can only have long-term benefits if they are redistributive in orientation. Their primary strategic objectives must aim to broaden economic activity to include the small, medium and micro enterprises. The provincial government has taken the lead by introducing tender procedure reform, the provision of venture capital, market assistance and infrastructure.
In conclusion, I want to commend SAPOA and express the government's appreciation for the support and assistance it has been giving the government. We are grateful for its input in policy development, and we regard very highly its investment in human resources. The bursary scheme that assists students who attend property courses, both in-house and at Technikon RSA, is a major investment in the future of the economy of the country. Please continue in this patriotic route.