The President of the SA Chamber of Commerce and Industry, Mr CliveManci,

Captains of Commerce and Industry,

Ladies and gentlemen,

 

Good evening!

Let me begin by thanking you for invitation to attend and address this annual convention again.

The convention comes as the country prepares to celebrate our 20th anniversary since the start of democracy.

Looking back now, we are proud of what we have since achieved as a nation.

Not only did we resolve one of the seemingly intractable political conflicts, we have also laid the foundation for a prosperous, democratic, non-racial and non-sexist society.

While there are many challenges that we still need to resolve, we have achieved much in the past 20 years.

We have created a stable political system founded on constitutionally protected rights and a multiparty democracy.

It is this environment that has enabled business to thrive and venture out into new markets within the domestic economy, Africa and the rest of the world.

We have expanded trade relations with many more countries, including BRICS members China, Brazil, India and Russia and now trade very substantially with the rest of the continent. 

We have finalised the National Development Plan as the socio-economic blueprint for the country.

We have already begun to implement the Plan through the strategies of the New Growth Path, the national infrastructure plan and the Industrial Policy Action Plan aimed at promoting inclusive economic growth and development.

As you would be aware, we have decided to intensively promote six sectors for growth and to boost jobs.

 

These are;

 

·        Infrastructure development,

·        Agriculture,

·        Mining and beneficiation,

·        Manufacturing,

·        The green economy and

·        Tourism. 

 

We are pleased with the results in most and in particular the national infrastructure coordination programme, announced in last year’s State of the Nation Address.

We decided to coordinate infrastructure in the Presidency under the Presidential Infrastructure Coordinating Commission.

Already, a number of roads, dams, schools and hospitals have been completed while the road, rail and ports projects continue as well.

 

People will begin to see and feel the benefits of the investment and focus.

Two weeks ago, we re-opened Grootvlei power station in Mpumalanga. On Tuesday I opened the R81 road from Polokwane to Giyani while the R71 from Polokwane to Tzaneen is also almost ready.

 

These improved roads will reduce accidents; boost the transportation of people and goods and also tourism towards Kruger National Park.

The Department of Basic Education has opened 16 brand new schools in the past few weeks in the Eastern Cape, built as part of the government programme of eradicating mud schools.

Last weekend I opened a top of the range school in Mbizana in the Eastern Cape, which was built by Anglo American Platinum.

 

We are happy that the private sector is coming to the party and investing in communities where they draw labour.

South Africa is certainly changing for the better. 

But challenges remain, for example, unemployment.

 

You will recall that we announced in the February State of the Nation Address the plans to invest in youth employment and employment generally through employment incentives.

We have published a Draft Employment Tax Incentive Bill which is aimed at encouraging employers to give opportunities to workers of all ages in the Special Economic Zones(SEZs) as well as young first-time job seekers outside the SEZs.

We hope that the bill will generate a lot of constructive debate aimed at finding solutions.

 

Compatriots and friends

 

As we are all aware, the South African economy has faced some strong headwinds in recent times.

 

While this is related to the global economic climate, there are also domestic challenges.

Our country has a progressive labour relations framework enshrined in both the Constitution and labour laws.

Our message to employers and labour is that with the advantage of such a legal framework, they should conclude labour negotiations and disputes speedily.

 

We urge those sectors with disputes that have not yet been resolved to attend to them speedily so that the economy can return to full production.

 

Over the past nine months, government has intervened in the mining sector in particular to stabilise the situation.

We have worked closely with business and labour to ensure a more rapid and peaceful resolution of labour disputes, while at the same time improving the operational and policy environment in the sector.  We appreciate the cooperation of business and labour in the mining intervention programme.

 

Compatriots,

Among our achievements of the past 20 years is that South Africa plays a positive role in the continent. This country is also a favourable destination for foreign investments, imports and technical know-how.

We are pleased therefore, that you are focusing on Africa in this year’s convention.

Africa is a major growth frontier. Also important is the fact that Africans are actively beginning to do business amongst themselves, in addition to trading with other parts of the world.

A case in point is that South Africa was the single largest investor in the rest of Africa in 2012. We are playing our part.

The presence of South African companies in many capitals in the continent demonstrates that as government we are achieving our goal of opening up the continent to South African business.

We will continue to create an enabling environment for South African companies to trade better within the continent.

 

One aspect is the relaxation of cross-border financial regulations and tax requirements, making it easier for banks and other financial institutions to invest and operate in African countries.

Similar measures will also apply to foreign companies wanting to invest in Africa countries using South Africa as their regional headquarters.

Over the last few years, the South African Reserve Bank approved nearly 1000 large investments into 36 African countries. These mutually beneficial investments generate tax revenue, dividends and jobs between countries.

 

We also support the participation of our state owned companies and development finance institutions.

 

The Development Bank of Southern Africa is intensifying investment into the SADC region by supporting infrastructure projects, particularly in key areas of electricity supply and improving road infrastructure in the region.

The Industrial Development Corporation is also involved in several projects across17 African countries.

The bulk of these investments are mining, industrial infrastructure, agro-processing and tourism.

 

Ladies and gentlemen,

We have noticed that the concentration of the country’s trade with the continent is primarily in SADC. For example, 87% of South Africa’s exports are destined for the SADC market, most probably due to geographical proximity.

Only 6% are destined for West Africa, 5% to East Africa and only 2% to both Central and North Africa. This indicates the difficulties relating to infrastructure in the continent.

To visit one African country you may need to first go to Europe. This then tempts many of your members to avoid going beyond SADC.

The African Union has taken the decision already that we simply need to build infrastructure networks to be able to move people, goods and services.

We have adopted the Programme for Infrastructure Development in Africa and the Presidential Infrastructure Championing Initiative. The implementation of many projects is ongoing. 

 

South Africa champions the North-South Corridor, road and rail, from Durban to Dares Salaam andultimately Cape to Cairo, as part of the Presidential Infrastructure Championing Initiative.

Ladies and gentlemen,

Compatriots,

The important thing to remember is that our country has achieved a lot in the past 20 years.

South Africa is a much better place now than it was before 1994, but there is still a lot of work to be done. Difficulties that arise at times can be exaggerated to make us forget what we have achieved and what we are also still going to achieve.

We should continue working together to build the economy and the country. This cannot be the responsibility of government alone.

Let me once again express our appreciation for your decision to focus on the African continent.

We urge you to continue flying the South African flag on the African continent.

We also remain ready to work with business to achieve our collective vision of a growing and prosperous South Africa, as expressed in the National Development Plan.

Working together, let us continue to do more.

I thank you.