TEL AVIV, 14 MAY 2000
Your Excellencies Distinguished Guests Ladies and Gentlemen
It is an undisputed fact that we know a great deal more about each other now than we did before. I am certain that you have had the opportunity to learn and hear more about South Africa from many South Africans who have been here before. Equally, we have also had the opportunity to learn more about your country, more as an important partner in economic development, trade and investment than just one spot on the world map.
We are greatly honoured to be part of this seminar and hope that at the end of the seminar, most of you will be ready to pay a visit to our country and province, as tourists, investors or both. When you travel to South Africa you are more likely to land in the Province of Gauteng - the economic hub of our country before you begin your stay in the country.
The name Gauteng is a product of our new political dispensation and the commitment of the country to reclaim itself from forces which arrested its development and self worth for a very long time. The name simply means, 'the place of gold'. This does not in any way mean that our streets are paved with gold.
Both the business city (Johannesburg) and the political capital (Pretoria) of South Africa are situated in this Province of gold.
It is for this reason that while all our provinces are special and unique in many ways, Gauteng has a uniquely critical role for the economic life of South Africa. The geographical area it occupies has always been central as the economic heartland of the country.
So the centrality of this area economically is not only a product of the new dispensation, but a product of both nature and history.
Of the 40.6 million South Africans, 8 million of them are in Gauteng, making it a highly populated province considering that it is the smallest in size despite its economic importance. Of this population, at least 69.5% are of working age. However, with our unemployment rate remaining at 28%, more still need to be done by both the state and the private sector to ensure sustainable economic growth, economic, development and job creation.
In a country and province where many people have had very little access to infrastructure and basic amenities, it remains our challenge to turn the tide in favour of the poor, women and children. Despite the odds I have no doubt that our country under the capable stewardship of president Mbeki, has the potential to rise up to the challenge of rebuilding our country. My colleague, Mr Moleketi - the MEC for Finance and Economic Affairs will indicate some of the specific steps we are taking to rebuild as well as improve the performance of our economy.
Gauteng is also the most urbanised province in South Africa, making it imperative for our Provincial Government to adopt policies that also respond to this reality.
Being the economic hub of the country places even greater challenges to us as sustaining economic growth also depends on what we do on a daily basis to make the province a better place for those who visit it and those who intend investing their capital in our country and Province.
In October 1999 I spoke to the Israeli Chamber of Business and I indicated to them that the Province of Gauteng has already identified critical areas of economic intervention to meet the challenges, which face our Province and country. These range from infrastructure, transport to tourism. We are however alive to the fact that economic growth requires a strong partnership between Government and business, on the one hand and with workers and the greater populace on the other.
Gauteng enjoys a higher than national level of per capita social services. The Gauteng economy provided a great performance in 1998, growing at a rate of 0.7%. This was stronger than national growth, which was undergoing a difficult time as a result of the financial and economic crisis that afflicted many countries in the world and the decline of our primary sectors.
In 1999 our investments exceeded the amount of R1. 43 billion. Even this is probably understated for it does not include smaller economic ventures. There is great confidence in the economic infrastructure of the province and we continue to enhance that development.
Much of the investment in Gauteng is in property development and technology, information technology being the fastest growing industry. Over 80% of IT companies in South Africa are situated in Gauteng, which also has the biggest market for IT in the country. Realising the potential contribution this industry can make in the economic growth in the Province and the entire country, the Gauteng Provincial Government has embarked on an exciting initiative in partnership with the University of Pretoria and the CSIR to create an Innovation Hub. The central purpose of the initiative is to lead Information Technology development in South Africa.
Through the work that will be done at the Innovation Hub companies in South Africa, especially those that operate from Gauteng, will now be in a position to keep up with the changing patterns of manufacturing processes as well as develop new innovative ways of processing things.
We have noted with great interest Israel's remarkable achievements in technology advances and the ongoing work to upgrade technological skills to stay at the leading edge in technological development.
We believe South Africa can learn a lot from Israel in the area of information technology development. This is why our delegation include representatives of companies trading in IT, who would be holding discussions with IT companies to see how they can co-operate to advance IT development in South Africa.
In 1998, R19 billion worth of investment was committed to Gauteng and this continues to make our province an undisputed economic hub of South Africa.
I believe the province offers international business a good environment for undisturbed business and thereby making it possible for mutual benefit for South Africa and its trading partners. This has been confirmed by the recent survey by people confidence in various provinces of the country. The last survey has shown that more optimism is more about the province of Gauteng than any other province in the Republic. The survey indicates a readiness and optimism by South Africans themselves to invest in Gauteng.
I thank you.
Issued by Thabo Masebe Spokesperson for the Premier Gauteng Provincial Government Tel: 082 410 8087