Issued by: Government Communications (GCIS)
PRESENTATION BY MR SIPHO SHEZI, DIRECTOR-GENERAL OF THE DEPARTMENT OF PUBLIC WORKS REPUBLIC OF SOUTH AFRICA
AT
THE WORKSHOP OF SOUTH AFRICAN TRANSFORMATION AGENTS DELIBERATING ON THE AFRICAN RENAISSANCE PROTEA HOTEL MIDRAND 6 AUGUST 1998
"ECONOMIC/BUSINESS VIEW ON AFRICAN RENAISSANCE"
Distinguished guests, ladies and gentlemen
Whether referred to as potjiekos, a mixing bowl, modern pan-africanism, the giraffe's view, a new brand of africanism, Pax Africana or any other name, the African Renaissance, holistic, if ever an approach was holistic, offers an avenue for practical co-operation to the unfolding of a new post-Cold War.
Placed in historical perspective, the promises revival also suggests an alternative framework for interpreting phases of African integration at national, sub-regional and continental levels.
This means challenging the orthodox interpretation of the world order and fundamentally ushering a redefined framework for interpreting the ideal global economic order which will reflect the agenda of the South.
If we, and indeed all Africans, fail to identify with these initiatives or in providing concrete implementation strategies to realise our joint objectives, we could again allow the concept of an African Renaissance to become an emotional foundation for anew form of African nationalism which has no direction or substance. We should reflect on content and objectives, and transform it into a meaningful source of political, economic and social values and action.
Africa's commitment to democracy and market-oriented policies as well as the challenges posed by globalistaion, hold the promise of ending the preceding African historical period characterised by coups, mounting external debt and poor economic performance. These changes provide new ways of thinking, organising and representing the African reality.
However, these are not a "given". They need to be rooted in a form of political and economic intellectual framework that shall ensure that the notion of an African Renaissance does not become a mere appropriation of the predominant global system that has been primarily responsible for the historical factors that have characterised the evolvement of African societies.
The trend toward greater openness and improved government continues - we are witnessing an enabling environment for increased civil society and private sector participation in decision-making in most countries on the continent. Although changes in the international economy will exert influence on the pace of Africa's transition, Africa, as called for in the African Renaissance, should exercise a new attitude of mind. African no longer stands under te shadow of failure. We should combat the continuity of negative features on the continent and revive the African esteem through credible governments, economies, trade relationships on the continent and above all continued interaction and joint decision-making.
Deputy President Thabo Mbeki very recently made it clear: "To achieve an African Renewal in politics, in economics, in social life, in culture we have to act, I do not think it can be doubted together as Africans. Of this I think no one can be in doubt."
Let us look at the concept of African Renaissance from a business and economic point of view.
Africa is beginning to uncover the lack of depth inherent in some notions of partnership within the continent, and the projection of that partnership into the global economic domain. To be sure, all these schemes have a number of elements in common. They all have in-build intentions of building genuine market economies, nurturing genuine democracies in Africa and supporting conflict-resolution efforts - but if we do not have a meaningful common policy, the very concept "partnership" runs the risk of becoming an empty vessel.
Of course, it is perfectly understandable why these schemes have been fraught with contradictions and tensions. It is precisely because they, in themselves, have been predetermined by a particular predominant thought which has projected itself as the only alternative of correct interpretation of the world.
Although a true African Renaissance needs critical strategic partnerships with the industrialised West, much of the Franco-American rivalry and other economic squabbles are viewed as a cunning new scramble for Africa's heart and mind, thinly disguised as "partnership".
There is a need to guard against the repeat of a similar situation where political and economic rivalry undermined previous attempts at common African identity. Remember! - In the past, it was disguised as constructive engagement in the context of the Southern African Region. In the context of the rest of the African continent, predominant discourse was in the form of "integration", interdependence, etc.
The challenge for us in Africa is to utilise relationships as instruments and forums to seriously tackle African challenges such as reducing and cancelling the continent's massive debt burden, bargaining for African market access to the north and debating the industrialised powers for free and fair trade with Africa.
Use the new relationships to appropriate and reappropriate African economic and political interests - assert Africa's interest at the heart of international economic relations.
We have consensus that healthy economies are the recipe for regional peace, which would underscore a better standard of living. For southern Africa to become a dependable investment environment, the final frontier of global investment, we need measures to include a healthy banking system, unimpeded flow of funds, deregulation of financial markets and many opportunities to be unlocked by removing investment barriers.
In this context, the notion of fair and free trade assumes a much more dynamic character. It begins to fundamentally shift the African continent from the shackles of development for underdevelopment. Indeed it introduces a powerful dimension to the notion of mutual integration and interdependence.
Africa south of the Sahara realised an average economic growth rate above 5%, and more than half the countries on the continent exhibited a higher economic growth rate than population growth rate since 1994. The fourteen member countries of SADC had an average growth rate of 6,7% - encouraging although it may be from a low base. World Bank figures suggest GDP per capita growth in Sub-Saharan African of on average 5,3% in 1996 and 5,6% in 1997 - indeed a change from the 1980s, and indicating a definite turn in tide.
This is indeed a good indication of the impact of international investment. However, the question of how much impact this level of investment has on the creation of conditions for sustainable development remains the critical challenge that lies at the centre of the reinvigoration of the notion of an African Renaissance.
For instance, it is under these circumstances that attempts towards development of regional industrial policy, which should operate on the principle of comparative advantage, actively encouraging sustainable economic development of areas in the SADC outside of the RSA, by promoting investment there in value-adding industries associated with present mineral or agricultural production, rather than, as in the past, transporting primary products to South African factories for processing, are being encouraged. This will lead to more inter-regional investment, a process that will be reinforced by the progressive elimination of exchange controls and tariff barriers in South Africa and elsewhere in the region.
The other critical element relates to the role of the state in the institutionalisation of the whole notion of African Renaissance, both in the economic and political domain. In this regard the transformation of state remains the major challenge facing our endeavour to position Africa to situate it economic agenda at the centre of international political and economic discourse.
In other words, central to the agenda for the promotion of common values and belief-systems that will play a pivotal role in the genuine reconstruction and development of Africa, is the need for a focused and effective programme to facilitate a systematic transformation of the African state and its organs into a strategic instrument for representing the economic, social and political interests of African people, both within the domestic boundaries, as well as in the international economic relations.
Indeed the focus that has been emphasised by the South African Government on the need for transformation of the state, coupled with the promotion of GEAR, represents a classic example of the impact of the global economy on the future evolvement of African societies, as well as their macroeconomic policies.
Equally, it also reinforces practical reality to the effect that the African Renaissance cannot be conceptualised, understood and attained, in isolation of the dictates of the global economic system. In practice, this suggests that beyond the realm of theory, political rhetoric and discourse, the attainment of the African Renaissance will necessitate greater regional economic integration within African itself on the one hand, and an effective integration of the African continent into the international economic system.
It is in this context that several initiatives aimed at facilitating and promoting mutually reinforcing trade and economic relationships within the SADC countries, as well as between the RSA and the broader African continent, could be considered as perfect opportunities that could serve as a bedrock for the realiastion of African Renaissance.
For example, transnational physical infrastructure projects pertaining to strategic development sectors such as water, electricity, transport and telecommunications will positively contribute towards economic growth, social and political stability throughout the African continent, thus promoting direct and indirect international investment, which in turn greatly contribute to overall economic recovery.
Parallel to this, could be the development of an integrated approach in other spheres of social development, such as tertiary education and health infrastructure, which, in themselves, will play an important role in facilitating the development of common values and beliefs. Hence, ensuring a sense of common purpose amongst African countries and its people.
The development approach applied by the SADC is primarily premised on these economic, political and social objectives. The joint public-private and interstate partnerships that underpin the `corridor' approach to infrastructure projects, will fast-track mutual economic growth, thereby enabling the SADC and possibly the whole African continent to meaningfully maximise economic benefits through trade liberalisation.
Africa competes with all other regions and countries around the world for the attention of foreign investors, especially those seeking investment opportunities in value-adding manufacturing and service industries. A common investment regime, adequately addressing the basic requirement of the enabling environment that responsible foreign investors seek everywhere in the world. Should be implemented throughout the SADC and Africa, while permitting each country to offer such additional incentives as it sees fit.
Tourism, and particularly ecotourism in Africa, is another industry with great opportunity for growth and development to assist integration, both within SADC and with the rest of the continent. Africa this year expects to see tourism rising with 8%, double that of the industry's expected average world growth rate. In the RSA alone, we have set a goal of creating 860 000 jobs within this industry by the year 2000. Benefits would be spread to the region as a whole and to African culture and history. Together, we should act fast not to miss the wave of international growth in tourism, to compete effectively with rival destinations on our entry into the global economy.
While the African renaissance is about restoring pride to Africa on all its fronts, we see the opportunities most clearly in the tourism related industries, in arts and culture, the inspiration flowing from new energies rising in the global economy. Trends in the fashion industry, in the musical world, even in architecture and interior decorating - those industries which closely express the creative spirit of mankind - has been drawing on African art and culture and the vibrant expression thereof in economic ventures. It is our collective duty to ensure that this is continued within a framework of equality and mutual respect. The joy of living, entrenched in our intimate experience of and relationship with the sunbaked earth and wildlife of our continent, can and should be propelling us forward in ensuring that an area is ushered in, in which Africans assume leadership of our own affairs, while integrating the continent effectively into the global economy. We need to put a stamp of leadership and authority on this process and gladly acknowledge the considerable statecraft of Deputy President Mbeki in tabling the African Renaissance, in driving it and in continuing to encourage us all.
Now is a time for self-examination, not for self-aggrandisement, for real change can only be build under conditions of mutual growth and prosperity for all.
Allow me to close by quoting our eminent President Mandela: "None of us is a superstar and none can succeed without the success of the other."