Issued by The Office of the Premier, Gauteng Provincial Government
16 October 2001
Master of Ceremonies
Esteemed Business Representatives
Distinguished Guests
The 21st century has been characterised by challenges to national economies imposed by globalisation and the technology revolution. South Africa, like many other developing countries is faced with the challenge of building the economy which is equal to both the demands of globalisation and the imperative of alleviating the poverty of its citizens.
Gauteng province, which accounts for close on 40% of South Africa's GDP, has a critical role in ensuring that South Africa succeeds in the new economy. The province has the largest labour force skills profile in South Africa. It also has the largest and most prestigious research institutes, foundations and universities.
I hope it was partly in recognition of these fact that our business leaders chose Gauteng as the venue for this important convention.
In response to the challenges and responsibilities imposed on it, the Gauteng government adopted a vision of building the province into a globally competitive smart centre. To achieve this vision we adopted a strategy to set Gauteng's economy on a new growth path to encourage higher output, investment and job creation.
The main thrusts of this strategy are:
The re-alignment of the manufacturing sector from traditional heavy industry input markets and low value added production, towards more sophisticated, high value-added production and the development of other high value-added production activities in the agricultural and mineral sectors.
The development of a smart centre with specific focus on information and communication technology, telecommunications equipment, research and development and the biotechnology industry.
The development of the finance and business service sector with specific focus on financial services and technology, auxiliary business services and technology, corporate head office locations and business tourism.
In line with this strategy, the Gauteng Provincial Government initiated the Strategic Economic Infrastructure Investment Programme, which today is known as Blue IQ.
Blue IQ focuses on ten mega projects in the sectors of technology, high value-added manufacturing, transport and tourism.
The timing of this convention could not have been more appropriate. It coincides with our Blue IQ means business week. I am sure many of the business leaders here have had an opportunity to visit the Blue IQ exhibition centre and will have seen the things that we are doing.
It is very clear to all of us, as experience the world over has shown, that Public Private Partnerships are of absolute necessity in our quest to achieve a higher economic growth.
As government, we are investing public funds in these projects to provide the necessary infrastructure to create an enabling environment for more private sector investment in the economy.
We expect that our esteemed business representatives here will, having looked at what we are doing be convinced that our plans do indeed create the necessary environment for their companies to invest their money in South Africa, particularly in Gauteng.
Since we announced our economic growth plans last year we have been receiving overwhelming support from business, most of them indicating their readiness to work with us on a number of areas.
Last month over three hundred and fifty delegates, including representatives of foreign-based rail and rolling stock constructors, train operators and fanciers, attended the Gautrain Rapid Rail Link Investor conference.
The enthusiasm with which the project was received by the most experienced and reputable companies involved in the construction and operation of rapid rail transportation systems has confirmed the appropriateness of the Gauteng Provincial Government's decision to embark on the project.
Questions relating to certain technical aspects of the project and the financial model have all been answered to everybody's satisfaction, clearing the way for the commencement of the tendering process. The winning bidder will be announced at the end of 2002 and construction of the tracks and rolling stock will commence in 2003.
Like all the other Blue IQ projects, the Gautrain Rapid Link project will contribute to the growth of our economy and create huge employment opportunities. The feasibility study indicates that approximately 43 000 jobs will be created during construction, at least 1200 people will be employed to operate and maintain the system, and an additional 40 000 job opportunities will be created indirectly due to other activities in and around our stations. In additions to this an increase of between 0,7% and 1,0% in the Gauteng GGP over the implementation period is expected.
We have a dedicated team of competent people who will be able to provide you with more information about our economic growth projects, so I will not spend any more time talking about them.
Our strategy is aimed at not only growing the economy but also improving the living standards of our people. The ripple effects will be the reduction in poverty levels - our aim off course is to eliminate it. Through this we will create a sustainable and strengthened environment, one which allows us to take action to fight all sorts of disease and reduce infant mortality, extend lifespan, as well as increase productivity.
I am glad that the convention has set time aside to discuss the forthcoming World Summit on Sustainable Development to be held in our province in 2002. I am very encouraged by the fact that in your discussions you also looked at the policy issues and what the private sector could do to ensure safer usage of our environment.
A theoretical global consensus was reached in Rio de Janeiro in 1992 on the prevention of environmental catastrophes and the introduction of sustainable development as a vital issue on the agenda for the next millennium. Notwithstanding this global consensus the pattern of the depletion of non-renewable resources, climate change, and pollution of land, water and air continues to grow exponentially and have the greatest impact on the poor and the third world.
The urbanised and industrialised character of Gauteng and the fact that the World Summit on Sustainable Development is taking place in Johannesburg in 2002, provides the platform for us to reevaluate our approach to development and put in place measures to turn back from socially, economically and financially unsustainable practices.
The challenge is to ensure that in all aspects of development, public and private, the necessary environmental considerations play a part when development is initiated. In particular, every supply, industrial policy, traffic and town planning need to be managed with a view to minimisation of adverse short, medium and long term environmental impacts.
This World Summit on Sustainable Development (WSSD), which has been earmarked as the biggest UN convention in history, also provides opportunities for business to define its sustainable development agenda.
The Draft King Committee Report on Corporate Governance for South Africa alludes to the need for business to take seriously issues of sustainability. And that within the business context, this means "the achievement of balanced and integrated economic, social and environmental performance - now universally referred to as the "triple bottom line". This means that non-financial issues cannot be regarded as less important to business concerns.
It is important that South Africa's business leaders prepare sufficiently for the Summit. The challenge is for South Africa's business to present good proposals as well as showcase what we are already doing in the country with regard to issues of sustainable development.
So it is important that you all participate at this historic event and contribute to efforts to save our planet. As to the kinds of business opportunity there is with regard to the Summit, you can individually link up with the Johannesburg World Summit Company.
On the other hand it is important for the business community to play a role to ensure the success of the conference. We have stated already that the benefits are for all of us as human beings.
While the three spheres of government will jointly be contributing financial resources towards the cost of the summit, further funding is still required to meet the total budget. We urge you to think about the kind of contribution you can make as the business sector to make this a success.
We are in this together.
I thank you.
For Enquiries Contact:
Thabo Masebe at 082 410 8087