Minister of Science and Technology, Hon Derek Hanekom
Premier of Gauteng,
Hon Nomvula Mokonyane Dignitaries present
Leaders from various sectors of society
Ladies and Gentlemen
Good morning to all of you and a warm welcome to the Gauteng leg of BRICS Engagement Session. The importance of this 5th BRICS Summit taking place in our country South Africa and on African soil should not escape us. The 5th BRICS Summit, which is scheduled for 26 to 27 March 2013 at the Durban International Convention Centre, takes place at a time when the eyes of the world are firmly fixed on the African continent. This will indeed be a historic moment worthy of celebration, not only South Africa but for Africa as well. There is currently a consensus that the African continent is one of fastest growing regions in the globe.
The African continent currently offers some of the highest returns on investments and it is home to no less than seven of the fastest growing economies in the world. This change in fortune is a welcome break from the pessimism with which Africa was dismissed as a continent of hopeless, poverty, protracted conflict, war and disease. The 5th BRICS Summit will therefore also be a symbol not only of the beneficial results of South-South co-operation but also of what like-minded partnerships can achieve. Equally important is the fact that the 5th BRICS Summit’s magnifying glass will be firmly focused on the African development agenda and how partnerships and regional integration between African countries can catapult us to a future defined by industrialised economies, which satisfy the developmental needs of their citizens. In this regard, the Summit is not only in recognition of the umbilical chord that ties South African to the rest of the African continent, but also a welcome sign of the departure from Afro-pessimism. Indeed Africa is the future! Indeed African nations are an essential piece of the global economic puzzle!
This focus on Africa is in perfect timing. Increasing income levels among the African people; a budding and productive working age population; the untapped talents and energies of young people and of course the natural resource endowments we possess as a region currently mark Africa as a compelling investment destination. The astute African Kwame Nkrumah aptly summarised the boundless possibilities offered by our region, when he said that Africa’s strength lies in “the blessing of the wealth of our vast resources, the power of our talents and the potentialities of our people”.
What brings us together here today is a mission that is aimed at bringing the notion of BRICS closer to the people of South Africa, for them to learn of the importance of our country being part of this important symbol of South-South cooperation and the fruits that our country stands to reap from its membership of the important bloc. These BRICS Road shows are aimed at building the momentum towards the 5th BRICS Summit as well as to allow our citizenry to get more acquainted with BRICS as a mechanism to forge mutually beneficial partnerships, to work towards the common goal of economic growth, industrial development and poverty reduction. There is no better time to focus on emerging economies and South-South cooperation as a launching pad to overcome some of the pressing challenges we face. One hardly needs any convincing about the value of partnerships such as BRICS. As studies show, emerging economies have become engine of world growth. Developing countries have emerged as important players in the world economy in terms of global GDP, investment, savings, trade, foreign exchange and manufacturing capability. In 2010, they accounted for close to 40% of world trade, up from less than 30% in 2000. Our cooperation as developing countries places us firmly in a position to share experience and knowledge in a less prescriptive, more open-ended manner, so as to generate tailor made solutions to some of our peculiar challenges. As Africa’s leading economy and one of the most important political actors on the continent, South Africa is a natural choice for a partner in the African continent. We are one of a few African countries ranked as an upper-middle income country and the only African nation with a G20 seat. Having held, four successful, free and fair elections, South Africa is also a beacon of political stability.
But we are also the principal gateway to Southern Africa’s 160 million consumers, the largest African market which boasts high quality physical & communications Infrastructure, advanced financial, legal, and energy sectors, value-added logistics. And of course I would have failed in my task as an ambassador of economic opportunities in Gauteng if I did not tell you what this province has to offer. Regarded as the economic powerhouse of the South African economy, the performance of the Gauteng economy has a significant effect on the country’s economy in terms of leading the economic growth trajectory, creating sustainable employment within the decent work framework and initiating interventions to bridge the gap between the formal and informal economies. Gauteng province is now home to over 12 million people, making it the province with the largest population in our country. Only 56% of people who were counted in Gauteng were born in the province. This is an indication not only of the cosmopolitan nature of the province but also that the province is a magnet for many people in search of better economic prospects. It is also estimated that the province accounts for 7% of the GDP of the entire African continent, making it the fourth largest economy in Africa. This may be attributable to the fact that Gauteng houses the Johannesburg Stock Exchange Limited (JSE), the largest securities exchange in Africa. Gauteng is also the place where Africa comes to shop, and much of the country's manufacturing activity takes place here. As a financial and commercial hub of the country, the province also hosts the head offices of more than 70 foreign banks that service the African market, including a number of stockbrokers and insurance giants. Over the last decade, the province’s economic performance has typically exceeded that of national average, which suggests that national growth is driven by this province. About one third of gross domestic fixed investment in South Africa is apportioned to Gauteng. This picture of a province with endless possibilities is exactly what we mean when we say: Gauteng – It is here! As Africans and as South Africans, we are eagerly looking forward to the 5th BRICS Summit. We are certain that it will be yet another demonstration of South Africa’s great endowments and Africa’s astonishing talents! With these words, I warmly welcome you to the Gauteng-leg of the BRICS Engagement session.
