Programme Director,
United Kingdom’s Permanent Secretary to the Secretary of State for overseas Development, Mr Mark Lowcock
South African High Commissioner, Dr.Skweyiya
Colleague Ministers here present, Members of the Diplomatic Corps, Captains of industry
Distinguished guests,
Ladies and gentlemen,
Let me start by expressing my sincere appreciation to the convenors of this aptly titled conference. Today, we celebrate the life of an icon, the father of our nation, former President, Dr Nelson Mandela who celebrates his 95th birthday. We are encouraged by his continued resilience, as he remains stable along his recovery path in hospital.
The African Continent has begun the journey of the African Century, which is centered on accelerating socio-economic development to eradicate poverty, inequality and ultimately enhance the living standards of the African people. This journey started with Africa cleansing herself of the ravages of wars and political instability that previously characterised the greater part of the Continent. She chose democracy to prevail over all else, as confirmed by the incremental geo-political stability in the Continent over the past few decades. It is this geo- political stability that set the tone and pace for economic development, incremental investment and ultimately prompted the journey towards sustainable development of the Continent.
This journey is also characterised by a sterling track record of the fight against disease that threatened the optimal realisation of Africa’s true potential. For instance, the fight against HIV/Aids in the Continent is beginning to yield desired results, with infection rates on a steady decline throughout the continent.
The mineral development potential of the African Continent remains unrivalled. Notwithstanding limited geo-scientific knowledge, the Continent is host to most of the minerals needed for development the world-over. The exploitation of this vast mineral base requires responsible investment in the continent, not based on exploitative principles centered solely on expectations for unrealistic rates of returns that are disguised on the principle of “high risk – high return”. As you know, mining is a long term investment and not about quick wins. The balance between Africa’s development requirements with growth ultimately receives the greatest reward in a medium to long term.
Mineral resources generally occur in remote areas, characterised by high levels of poverty, marginalisation of particular groups, as well as lack of both physical and social infrastructure. However, mines bring both significant risks and great opportunities, with a potential to be “development actors”. Traditionally, mines either constructed their own infrastructure requirements or found a way of persuading host governments to build such infrastructure for their exclusive use, in exchange for employment creation and contribution to national fiscus through taxation. As a result, a characteristically distinguishing feature that has come to define the industry is aptly captured in the notion of “enclave development”, in which mines are a symbol of success that is surrounded by hopelessness.
Notwithstanding exceptional cases, such as the construction and sustenance of such cities as Johannesburg, which were built on the back of the mining industry, it goes without contestation that the model of infrastructure for Johannesburg was not only limited to mining, but spanned financial, industrial, academic, social, innovation, etc. As such, the concept of multi-purpose, regionally integrated infrastructure constitutesa considerable value proposition.
In order to address the plight of the African Continent, a necessary shift from traditional mining jurisdictions from which raw materials are sourced is needed to serve as a catalyst for rapid industrialisation. This will require development corridors that will emulate the “Johannesburg model” and whose construction is a subject of multi-purpose, regionally integrated infrastructure development.
Indeed, financing for the multi-purpose infrastructure development must not be a burden of one stakeholder at the expense of the other, as it has been the case in African jurisdictions in the past. It requires clear delineation of development goals and objectives, infrastructure requirements sufficiently defined and costed and partners in development appropriately engaged on a creative “Win-Win” formula for financing of such infrastructure that will deliver “Africa’s Promise” and enable the emergence of a resilient African continent.
South Africa is presented an ideal opportunity to expand and leverage the multi-purpose infrastructure through the “Presidential Infrastructure Coordinating Commission” (PICC) led by President Zuma, which is envisioned to augment existing infrastructure to underpin a much faster, inclusive and labour absorptive economic growth consistent with the national development aspirations outlined in the National Development Plan. For instance, the vast coal reserves of the Waterberg located in the North-Western portion of the country have not been developed due to lack of requisite infrastructure.
The PICC has prioritised, inter alia, the development of necessary infrastructure to unlock development potential of this resource, which includes rail, water and will also support cost competitive security of energy supply required to cultivate the national economy and enable its global competitiveness.
Earlier this year, the leaders of the Federal Republic of Brazil, the Russian Federation, the Republic of India, the People’s Republic of China and the Republic of South Africa (BRICS) reaffirmed their confidence in the leadership of and partnership with South Africa, wherein the latter hosted the fifth BRICS Summit in eThekwini, Durban. The discussion of the summit progressed under the overarching theme “BRICS and Africa: Partnership for Development, Integration and Industrialisation” and confirmed commitment of member countries to, amongst others, promotion of international law, multilateralism and the central role of the United Nations.
The BRICS summit further expressed its openness to increasing engagement and cooperation with non-BRICS countries, in particular Emerging Market and Developing Countries and relevant regional and international organisations. The summit resolved to convene a retreat with African leaders under the theme “Unlocking Africa’s potential: BRICS and Africa Cooperation on Infrastructure”, which is an opportunity for the collective to strengthen cooperation.
The summit reiterated its support for the industrialisation process of African countries through foreign direct investment, knowledge exchange, capacity building and diversification of imports.
We have made significant strides through the African Union in identifying and beginning to address the continent’s infrastructure challenges. For instance, the Programme for Infrastructure Development in Africa (PIDA), the AU NEPAD Africa Action Plan (2010-2015), the NEPAD Presidential Infrastructure Championing Initiative (PICI), as well as the Regional Infrastructure Development Master Plans constitute some of the main initiatives that have identified priority infrastructure development projects that are critical for promoting regional integration, industrialisation, and bear testimony to the progress and commitment of Africa to sustainable infrastructure investment and development.
The African Union Heads of States enjoined President Jacob Zuma of South Africa with the responsible of Convenor of the transport infrastructure of the entire African Infrastructure programme.
The Heads of States of BRICS confirmed the feasibility and viability of establishing a New Development Bank, The BRICS Bank, for mobilising resources for sustainable infrastructure development in BRICS and developing countries that face endless challenges of infrastructure development, due to insufficient long term financing and foreign direct investment. The summit emphasised the importance it attaches to ensuring steady, adequate and predictable access to long term financing for developing countries from a variety of sources.
In this regard, member states placed a high premium to concerted effort towards infrastructure financing and investment through multilateral development banks and regional development banks. The conclusion of the “Multilateral Agreement on Cooperation and Co-financing for Sustainable Development” and the “Multilateral Agreement on Infrastructure Co-Financing for Africa”, both under the auspices of BRICS, are intended to cater for the steep growth trajectory of the African Continent as well as significant infrastructure funding requirements directly emanating from this growth path.
Distinguished guests, the BRICS partnership is committed to a harmonious world of lasting peace and the common prosperity and reaffirmed that the twenty first century should be market by peace, security, development and cooperation.
Ensuring a fair return to the societies in which we operate as an industry goes beyond the cliché of corporate social responsibility. It requires finding ones relevance in the goals and aims of the people. In South Africa, the goals of the country with regards to the mining industry go beyond growing the number of sustainable, transformed enterprises, mines and operations. Central to South Africa’s economic goals is transforming our comparative advantage in minerals into a competitive advantage on which a vibrant mineral beneficiation industry, as linked to our national industrial development framework, should be harnessed through appropriate infrastructure programmes.
Programme Director, South Africa and the entire African Continent are ready and open for business. We are working very hard to ensure that our infrastructure requirements are adequately integrated in the region and featured in various infrastructure development programmes to address issues of maintenance and efficiency in our considerable network of existing infrastructure and building on that stock to unlock the potential in non-traditional development nodes, such as vast untapped resources nodes prevalent throughout the Continent.
Excellencies, honourable delegates, ladies and gentlemen,
I have every faith that we shall complement each other’s strengths to lessen our individual weaknesses. In this regard, you are invited to be part of an exceptional journey towards the African Century, in which all participants in this journey have something to celebrate.
On behalf of the Government and the people of South Africa and the entire African Continent, let me express our sincere appreciation for your invitation to participate in this conference and reaffirm our commitment to renewed development through sustainable infrastructure investment in the continent.
I also wish to invite you to the southern tip of the African Continent, South Africa, for a magnificent vacation and business experience. Let me also express our gratitude for the magnanimity and hospitality of the British people and Government during our brief, albeit greatly satisfactory stay.
I thank you.
