8 November 2001
The Honourable Mayor of Umhlathuze;
The President of the Zululand Chamber of Commerce;
Distinguished guests;
Ladies and gentlemen;
I am once again, very pleased to be with you this evening, in such a wonderful occasion of recognizing excellence in business.
It is always a pleasure to engage with business, given the importance we as Government afford to our partnership and relationship with the business community in our country.
I am also happy that we are meeting during a week of interaction, as November 5-11 is Imbizo Focus Week, during which we emphasise communication and feedback from the people we serve. You will have noticed that Cabinet Ministers have visited certain areas to listen to the views of the people about the service delivered by government.
I also had the privilege of attending an Imbizo at Lethlabile in North West on Tuesday. Where I was fortunate to gain first hand experience of the successes and challenges facing us, and shared in the joy of 22 000 families in the municipality who have received free basic water for the first time. I therefore come here in that spirit of interaction.
Chairperson, I must point out from the onset that as Government we are proud of our track record with regards to creating the right environment for economic development to take place.
We have systematically maintained our commitment to macro-economic policies, which has given us the necessary credibility. We have developed a national policy framework that is supportive of growth and development.
We therefore believe we have created the right environment for foreign direct investment as well as domestic investments to take place.
I would like to stress the need for domestic environment, and I am glad I am speaking directly to the business sector. More domestic investment will send a signal of confidence, which will assist in boosting foreign confidence.
Another achievement of this Government is our fiscal policy. The government has implemented a sustained transformation of the Budget process. The move to a Medium Term Expenditure Framework allows for predictability of government expenditure. This in turn allows for sustainable planning with regards to government spending in cycles of three years.
The Framework is always made public in October prior to the announcement of the Budget for the next financial year and this transparency allows for all constituencies affected by government policies and spending to be able to plan ahead.
All these positive developments, in our view, should make the business community comfortable about the future of this country.
Ladies and gentlemen, as Government, we have clearly done our best to transform this country and make it progressive and truly democratic. Having done so, we naturally expect business to do the same, as all of us were affected by apartheid.
For example, we cannot be saying all South Africans should have access to housing assistance, and on the other hand in the same country, you find financial institutions that make it difficult for the marginalized sectors of our country to get loans.
Another area of transformation is black economic empowerment. 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 marginalized and dispossessed. The strategic objective behind black economic empowerment is that it leads to the empowerment of the whole country economically by opening up and expanding access to the economic cake.
In order to be successful, the empowerment strategy needs to 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 historically 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.
I am therefore happy to note that the Zululand Chamber of Commerce is aware of these imperatives. I hope that the small business development centre you have established will make a difference, and will ensure that SMMEs in the region are able to link up with big business and get opportunities locally.
Another important issue is that of unity within the business movement. As Government we would like to see business uniting and speaking to government and the world in one voice. We hope that all stakeholders will soon resolve the problems that exist at the moment in the business unity process.
The fact politicians were able to solve their problems at Codesa and ushered in a new dispensation should serve as an example and inspiration to the business community. You must not allow a perception to develop that the business sector is more conservative than politicians.
Also crucial is the need to transform local business chambers to become more integrated with their counter parts in organized black business. At the grass roots level business needs to speak with one voice and address the concerns of black business - with regard to the barriers of entry.
More co-ordination is also required between big business and social responsibility programmes. These need to be refocused in line with the priorities regarding black economic empowerment and addressing the barriers to entry on the local market.
Ladies and gentlemen, while prioritizing domestic matters, we also have a duty to promote our country and continent internationally as a business destination.
A week ago, I attended the Plenary Conference of the Global Coalition for Africa in Botswana, where Heads of State, NGOs and the private sector from Africa, Europe and America came together to discuss the role that the private sector can play in the development of the continent.
I must say that I was disappointed to note that some sections of the private sector still harbour negative perceptions about our continent. The perception that Africa is a risky part of the world to do business in persists, despite the fact that there are some countries in this continent, which have had peace and stability since independence.
The newly launched New Partnership for Africa's Development, (NEPAD), addresses the concerns of the private sector about doing business in Africa, including the need for democratization, peace and stability, resolution of conflicts, good political and economic governance, and the creation of the right environment for business to thrive.
There now prevails an environment in Africa, marked by, among other things, the emergence of a leadership that is committed to the economic renaissance of the continent, as encapsulated in the NEPAD.
The seriousness of the initiative is evident in the envisaged programme. The last meeting of the NEPAD Implementation Committee of the Heads of State and Government in Nigeria on October 23, decided that African leaders should set up parameters for Good Governance to guide activities at both the political and economic levels.
In this regard, it resolved that, at its next meeting, it would consider and adopt an appropriate peer review mechanism and a code of conduct.
The Implementation Committee also reaffirmed its conviction that peace and security are necessary pre-conditions for sustainable development.
The committee therefore, decided to set up a sub-committee on Peace and Security to focus on conflict management, prevention and resolution in Africa, particularly within the context of NEPAD process. The members of this Sub-Committee are Algeria, Gabon, Mali and Mauritius, with South Africa as its Chair.
Given the developments, we are saying to business in the world: -judge us on the basis of how we implement the new initiative and everything else that countries and governments have undertaken to do, and not on history. It should be clear to everybody by now that the leaders of this continent are serious about its development and for it to regain its dignity and respect.
We are also fully aware that we need the support and participation of the business sector to be able to achieve these goals.
Ladies and gentlemen, in conclusion, I would like to take this opportunity to congratulate all those who will receive awards tonight. I urge you to continue with the good work, as every achievement is the achievement for this region, province and country.
Once again, thank you for inviting me to share this evening with you. We have a beautiful country. Let us work together to make it a success.
I thank you.