Programme director
The Chief Executive Officer of Standard Bank, Mr Sim Tshabalala
The leadership of Standard Bank
Invited guests
Ladies and gentlemen
On behalf of the government of KwaZulu-Natal we would like to express our gratitude for being part of this auspicious occasion where we are meeting to witness an occasion, which communicates an unequivocal message that the economy of our province is indeed growing in leaps and bounds.
Programme director a decision to expand the network of any business is a decision that requires careful thought because it involves costs. Given the current economic situation, there is no management of any company which can give the nod for the expansion of its footprint where there are no clear economic benefits.
It is because of this reason that as government of KwaZulu-Natal we believe that the fact that we are all gathered here this evening to witness Standard Bank Limited opening its Midlands regional office which houses a brand new branch as well as a business centre, is a vote of confidence in the economy of the province, for its indicates unambiguously that our economy is on an upward trajectory.
Today’s occasion sends a clear message that more and more of our people, particularly in this capital city of our province, are hungry for the services that are offered by Standard Bank. In fact, programme director, we want to assure Standard Bank Limited that you will not only get returns on your investment, but you have also made a sound investment decision.
If you look at the last gross domestic product (GDP) figures which saw the economy of the country growing by 3,2 percent, our province of KwaZulu-Natal recorded an above national average growth of 3,7 percent which shows that indeed our economy is on the upswing.
One of the foremost intellectuals of our time, Ralph Waldo Emerson once remarked that the state of finance of any nation tells a lot about the character of that nation. This also applies to our country. Any first year economic student will attest to the fact that in the unpredictable global economy, countries that are able to survive the volatility brought about by the ever changing global economic landscape are those which have diversified economies.
In fact it has become a norm that during the early stages of the evolution of any economy the primary sector becomes the strongest. Later it gives way to the secondary sector and then much later the tertiary sector, of which the financial services are part, becomes the dominant sector.
When you look at the financial services sector today in South Africa, it has overtaken manufacturing as the biggest contributor to the gross domestic product. This shows that our economy is now matured and is not depended on one strand of the economy. We believe that this is because of the contribution made by companies such as Standard Bank Limited.
It is a known fact, programme director, that the global economy is on the mend after it went belly up last year, in what has been described as the biggest economic turbulence of our age. As all of us know, this economic crisis was triggered by some financial institutions which dabbled in self-destructive lending practices.
We believe that it is a tribute to the resilience of our economy and the strength of our financial sector that while many banks around the world had to be given bail outs by their governments ours weathered the financial storm on their own.
This, programme director, is, we believe, one of the stories that should make all our chests swell with pride, for its shows that our banks are not only adequately capitalised but that they are among the best in the world as attested to by their tenacity to navigate the turbulent waters of the global economic meltdown.
In some first world countries, it is beyond contemplation for banks to open new facilities. The effects of the recession have meant that these banks’ attentions are captivated by preventing themselves from keeling over as opposed to expanding.
While saying this, we understand that it has taken faith and belief on the part of Standard Bank to make this investment. We want to pledge, as the government of KwaZulu-Natal, that we will continue with our efforts to create an environment that is conducive to economic growth and development. Precisely because Standard Bank Limited are our partners, we are duty bound to reciprocate this show of confidence by continuing to implement policies and programmes that grow our economy.
On behalf of the government of KwaZulu-Natal, her people and the people of the greater Midlands region, we want to welcome this new addition to our family. We have no doubt that this regional office will be a base from which innovative and exciting economic growth projects are launched and nurtured. We also pledge to work together with Standard Bank in other mutually beneficial ventures to build an economy that create opportunities for all and to make tourism to work for us all.
I thank you
Issued by: Department of Economic Development, KwaZulu-Natal Provincial Government
31 March 2010
Issued by: Department of Economic Development, KwaZulu-Natal Provincial Government (http://www.kznded.gov.za/)
