20 October 2001
The Deputy Minister of Defence,
Members of the KwaZulu Natal Provincial Cabinet present,
Representatives of the KwaZulu-Natal Black Empowerment Trust,
Representatives of the Black Economic Empowerment Commission,
Distinguished guests,
Ladies and gentlemen,
Thank you for inviting me to share with you, this launch of a venture that should surely make a difference in the lives of many in this province.
I congratulate you on the steps you have taken to actively do something to improve the quality of lives in marginalised sectors of our communities.
Born out of a need of contributing to the development of small entrepreneurs, the objectives of this project are indeed noble, and it has great potential of making a difference.
I must also add that as Government, we find it extremely encouraging to see communities pulling up their sleeves to do things for themselves, and working towards their own development. Government has a role to play in creating the right environment, but we also need the participation and innovation of communities as well.
We also are particularly pleased that you embarked upon this economic empowerment through promoting entrepreneurship among other things, given the contribution of the small business sector in our economy and the potential that it has of bringing about economic growth.
During the past two decades we have seen a dramatic increase in the importance of small, medium and micro-enterprises (SMME's) for employment, economic growth and the transformation of the economy.
The Ntsika Annual Review of 2000 indicates how important this sector is to the economic development of our country. Let me share some of the details with you.
The SMME sector has over the past decade maintained positive employment growth in most of the economic sectors, compared to some of the other sectors in our economy.
We believe we have succeeded in creating the right framework for such positive developments to take place. There is also, as you know, general agreement that our economic fundamentals are correct and impressive and should lead to much needed economic growth.
You will also have noticed that over the last seven years we have been engaged in programmes aimed at bringing about structural change in our economy to make it more effective and competitive given the imperatives of globalisation.
One of the central challenges that government is seeking to address with economic reform is to increase our growth rates substantially from the current level, to enable us to create higher employment levels, address poverty and inequalities and promote economic development and social transformation.
We are aware that to change this situation around we need to, amongst other things, to facilitate investment in underdeveloped areas, and promote equity for black people in skills, assets and income.
It is against this background that we support developments such as the launch of the KwaZulu-Natal Black Empowerment Trust, because of its objective of contributing to improving the economic and social viability of marginalised areas and communities.
Such initiatives are in line with our own objectives as Government. For example, you would be aware that Government recently launched the Integrated Rural Development Programme as well as the Urban Renewal Strategy.
The two programmes will respectively lead to a total overhaul of rural and urban areas, which had been suffering from decay and neglect.
While implementing all these policies, we are mindful of the minority control of the economy and that is why there is a need to accelerate economic transformation and Black Economic empowerment, (BEE).
I must also stress that we view Black Economic Empowerment as the overall empowerment of the historically marginalised and dispossessed, and not just a strategy of making a few already privileged people richer or for them to have more access to opportunities.
That would not be a holistic empowerment. We would like to see real empowerment, and not just a few black names on the list of directors in the letterheads of companies.
The BEE Strategy calls for the revitalisation of business and the restoration of South Africa's competitive advantage. It aims to facilitate investor friendly programmes and activities through the provision of policies and guidelines, which ensure clarity and uniformity for the private and public sectors.
In order to be successful the empowerment strategy must also address a number of challenges, including access to finance, skills development, collaboration between business, labour, government and civil society, and acceleration of government programmes from which the previously disadvantaged are empowered.
It is also vital to measure progress in achieving BEE. The development of indicators and appropriate statistics is therefore a necessary component of the BEE Strategy.
Ladies and gentlemen, the launch of this project also brings to my mind the New African Initiative or Millennium African Recovery Programme, which is also based on the premise that Africans must begin to do things for themselves, and that the nature of relationships with the developed world must change from that of recipients of development aid to partners in development.
Black Economic Empowerment can therefore not be seen in isolation from the strategy of reviving our continent, which has suffered from centuries of underdevelopment, colonialism and exploitation.
The New African Initiative document identifies the following problems:
At independence, virtually all the new state were characterised by a shortage of skilled professionals and a week capitalist class, resulting in a weakening of the accumulation process.
The initiative is seeking to correct all this through the promotion of democracy, good governance, peace and stability and sound economic governance policies.
Through the programme of action adopted by the Heads of State of the African continent, the Initiative provides the business community with a number of tangible opportunities, amongst which the following are critical:
Through the Private Capital Flows Initiative, the continent's leaders seek to address investors' perception of Africa as a "high risk" continent, especially with regard to insecurity of property rights, regulatory weakness and markets.
Concrete steps include putting in place mitigation and risk reduction measures; implementation of Public-Private-Partnerships (PPPs); and promoting the deepening of financial markets within countries as well as cross-border harmonisation and integration of the legal framework.
As you can see, as governments in this continent we are seriously engaged in a programme that will make Africa a continent the world can do business with.
Your project is therefore being launched during a climate of optimism in the continent, and you are contributing to that optimism as we expect each and everyone to work for the rebuilding of our country wherever they are.
Community based efforts at empowerment, such as yours, give us hope, as they are bound to be successful.
Dear friends, allow me to once again congratulate you on launching such an organisation.
I have noticed, as well, that the Trust is composed of people from all political persuasions and interest groups in this province.
This is once again in line with the spirit of co-operation and tolerance that now prevails in this beautiful province. It shows that you have chosen to put the interests of the province and this country first.
I wish you all the best and may you be able to weather all the storms and stick to your goals so that you can realise your dreams. Your dreams mean a better future for many who stand to benefit from your contribution in this province.
May the KwaZulu-Natal Black Empowerment Trust grow from strength to strength.
I thank you.