28 June 2002
STABILITY: THE KEY TO UNLOCKING THE FULL BUSINESS POTENTIAL OF THE WESTERN CAPE
Oorsig:
Met die eerste oogopslag is daar heelwat in die Suid-Afrikaanse ekonomie wat negatief voorkom. Met dubbelsyfer-inflasie, brandstof wat meer as R4 per liter kos, 'n verbandkoers van 15%, en die werklike groei van ons nasionale ekonomie vir die jaar wat minder as 3% is, is Suid-Afrikaners oor die algemeen besorg. Teen hierdie vlakke neig werkloosheid om toe te neem, armoede word moeilik bestry, en ongelykheid rondom inkomste en rykdom lei tot sosiale spanning. Die vorige nasionale begroting het gepoog om aandag aan sommige van hierdie kwessies te gee, maar ongelukkig het die depresiasie van die Rand en stygende inflasie die positiewe uitwerking hiervan verminder.
But it is not all bad news. There are a number of strengths inherent in the South African economy, and in the Western Cape particularly, which continue to offer the hope of economic recovery and sustainable growth. This is what the Western Cape Government is focused on achieving and what we believe to be the key to establishing our province as truly World Class. We are absolutely committed to unlocking the full business potential of the Western Cape and establishing it as one of the most attractive investment destinations in the world.
Each and every person here today has decided, in his or her own way, to share in our vision for the success of the Western Cape. Your contribution to both the local and provincial economy is part of our winning formula. You have chosen to engage in our economy and to see the positive potential of the Western Cape, and for that I salute you.
Investment Requires Stability
As business leaders there is little need for me to tell you that potential investors, foreign and domestic, are highly sensitive to the stability and longer-term certainty of developments in the local economy. Expectations of sudden change or a general feeling of 'unsettledness' - that critical factors may change in an unpredictable way in the near future - discourage investors from expanding operations or from starting new ventures.
The Western Cape Government understands that, to the business community, it is critical for our political and socio-economic environment in the province to become more stable and predictable, and thus conducive to higher growth and faster job creation. It is for this reason that the NNP and the ANC have joined forces to build Coalition Government of Hope for the people and communities of the Western Cape.
Ons Koalisieregering bring twee partye bymekaar wat meer as 80% van die mense van hierdie provinsie verteenwoordig - en bied dus die grootste kans vir langtermynstabiliteit en -groei.
Soos ons almal weet, word die snelheid waarteen 'n land, streek, of stad groei, beduidend bepaal deur die gedrag van sowel plaaslike as eksterne beleggers, hetsy uit die binneland of van oorsee. In hierdie opsig kan ek verslag doen dat ons beleggingsinvloei verlede jaar R19,8 miljard beloop het waarvan R1,2 miljard van oorsese bronne gekom het. Hierdie buitelandse kapitale invloei was 6,2% van ons totaal - aansienlik hoër as die nasionale syfer van 5,6% en beslis 'n teken dat ons in die Wes-Kaap op die regte pad is.
Economic Challenges to Become World Class
We must, however, guard against being overly satisfied with the levels of growth and job creation achieved by our regional economy. Unemployment is still unacceptably high at 13,7%. This means that about 250 000 people in our province are without the means to support themselves or their families. The fact, that our regional growth rate of 2,4% was somewhat higher than the national annual average of 2,1% and quite a bit higher than several of the other provinces, should not lull us into a false sense of general prosperity.
Compared to many developing and emerging regional economies we are actually under-performing. What is more, since our population still grows at 1,7% a year, this 'under-performance' makes the poverty challenge that much greater (27,3% of all households in the Western Cape exist on less than R12 000 per year) and makes it more difficult to tackle challenges like the unequal distribution of income and the need for a more balanced regional growth pattern.
The challenges we face to make the Western Cape world-class though are by no means insurmountable.
Trek voordeel uit Globalisering
Die verswakking van die Rand se waarde het byvoorbeeld verskeie van ons uitvoerbedrywe 'n broodnodige hupstoot gegee. Dit is veral van toepassing op ons wyn- en vrugteuitvoerbedryf, klerasie- en tekstieluitvoerbedryf, en talle van die nuwer nisuitvoerprodukte, soos bootbou vir die internasionale seiljaggemeenskap.
Soos u weet, het ons pas 'n fase beleef wat redelik moeilike aanpassings ingehou het ten opsigte van die bemarking van sommige van ons sleuteluitvoerprodukte: 'n ooraanbod van wit wyn, laer pryse vir van ons vrugte, verbruikerrenons in vrugteprodukte van spesifieke handelsmerke en so aan. Individuele boere moes meestal self hierdie pynlike aanpassings verwerk, maar die regering het tog ook baie gedoen om te help. Met die oog op die toekoms moet ons aanhou om ons verskaffingstrukture aan te pas en oorsese bemarking meer doeltreffend te maak.
Op 'n ander vlak hou die bekendstelling van nuwe nisprodukte vir uitvoer, soos ons verskillende teesoorte en olywe, groot moontlikheid in om te baat by die voordele van globalisering. Met die voortgesette steun en bystand van die Provinsiale Regering is groot vordering reeds gemaak, en ons sal opnuut fokus op vermoëbou onder klein, medium en mikro-ondernemings om hulle te help om hierdie nisprodukte aan die uitvoermark te lewer.
Tourism - A Real Growth Industry
Tourism had a very good summer season, with South Africa able to catch some of the shift away from the US market. The declining Rand should also help keep prices down in the highly competitive world tourism market. Looking ahead, the Cape Town Convention centre is progressing well - in fact is ahead of schedule - and should after mid 2003 start to add a new dimension to long distance business tourism.
There has been a sharp increase in the number of foreign tourists to our province. We all know that the Cape has a fantastic tourism potential. Our Government aims to attract 4 million overseas tourists each year by 2010 (Compared to 790 000 in 1999), with tourist spending increasing to R30 billion (Compared to R9,7 million in 1999).
With our newly adopted Tourism Development Framework, we know what our visitors want and where to find such attractions across the province. We are particularly excited about 'platteland marketing' to take advantage of the almost untapped potential of rural tourism in the Western Cape. With Cape Town as the perfect gateway, we will be taking more and more visitors to hitherto unexplored areas in the Karoo, the mountains, up the West Coast and along this majestic Garden Route. We are helping our regions and small towns package their wonderful tourism products to make them accessible both to the domestic, as well as the international market.
To this end, we will in the course of the next month be launching the new Cape brand, the result of intense local and international research, to market our attractions, products and opportunities to the world, as proudly South African.
Conclusion
Dames en here, ons woon in 'n fantastiese provinsie in 'n wonderlike land. Ons moet verskeie sosiale en ekonomiese uitdagings die hoof bied - maar ons is ook geseën met die materiële en menslike hulpbronne om hulle trompop te loop.
You have my assurance that we will make the Western Cape an even better place to do business - all that we ask of you is that you continue to share our positive vision for the province and that, in partnership with the Provincial Government, you continue helping us to make the Western Cape a World Class Province for all its people.
Enquiries: Riaan Aucamp at 083-778-9923
Issued by Office of the Premier, Western Cape
28 June 2002