Programme director
Deputy Minister of Public Enterprises, Mr Enoch Godongwana
MEC of Health, Dr Sibongiseni Dhlomo
President of the Minara Chamber of Commerce, Mr Solly Suleman
President of the Young Business Society, Mr Phumlani Mfeka
Deputy Mayor of the eThekwini Metro, Mr Logie Naidoo
Entrepreneurs
We wish to express our sincere gratitude to the organizers of this function for inviting us to share with yourselves our views on economic development and creating the necessary conditions for up and coming entrepreneurs to thrive and contribute meaningfully to our collective development.
We meet at an exciting time in the life of our country where we are celebrating the twentieth anniversary of the release of the colossus of our liberation struggle and the first democratic president of our country, President Nelson Mandela. It is the struggles of Madiba and other brave women and men that have transformed us from a pariah state to a well-respected global player in all fields of human endeavour, including economic development.
Those who are in the know hold the view that it is only at times of great peril and instability that true leaders emerge. Madiba is such a leader. He chose a life of sacrifice and service to his people instead of a relatively easy life of a bright lawyer.
As we meet this evening, we draw on the example of Madiba to do more than what we think we are capable of to create a South Africa that is characterised by peace, stability, prosperity, equality and democratic practice. We also meet at a time where long-held beliefs about the world economy have been turned on their heads as the world grapples with the after effects of the worst economic crisis since the great depression.
While the global recession has caused a lot of pain and suffering, especially through job losses, it has also taught us some valuable lessons and an opportunity to learn about how not to conduct our affairs when it comes to the economy. Essentially the crisis has created space for new and innovative ideas to be tested since conventional wisdom has been seriously found wanting.
Prior to the global recession the South African economy experience and exceptional and historic economic growth phase. In KwaZulu-Natal companies and close corporations increased from 8 654 in 2002 to 39 364 in 2008. Unfortunately about 8 000 companies and close corporations closed down during 2009 in KwaZulu-Natal. However, the total number of companies and close corporations are at present still more than in 2007, which is indicative of our tremendous growth potential.
But our businesses have been struggling during this difficult period. Government had to implement cost-cutting measures and although we are in the recovery phase, we are nowhere near to where we had been before the recession.
In times like these we salute organisations such as the Young Business Society, which offer a helping hand to established struggling African businesses. I am told that the society has no age restrictions but it does prioritise youth empowerment.
It is an accepted fact that it is primarily the youth that is always at the forefront of exploring new frontiers and pushing the envelope. It is young people who normally seek unconventional, yet effective solutions, to so-called conventional challenges. Government cherishes the view that our youth must play an active role in carving a bright future for our country. Because you will inherit the future, you should be at the forefront of efforts to grow the economy of our province and ensure that our economy benefits all the people of KwaZulu-Natal.
Young people are a formidable force in our province. According to Statistics South Africa’s mid-year population estimates, people who are mostly regarded as youth (between 15 and 39 years of age), make up more than a third of provincial population at 3,655,600. This represents the core of the highly-economic active segment of our population, the people who make the economic wheels turn.
Despite these numbers we still feel that the contribution made to our economic growth by this group is disproportionately low. A number of reasons have been cited for this, including a lack of skills; the legacy of our apartheid past; a lack of access to resources, such as finance, lack of mentorship and lack of drive and innovation.
It concerns the provincial government that the 2008 Global Entrepreneurship Monitor (GEM) report asserts that South Africa is performing below potential in its entrepreneurial activities. According to the GEM data, a country at South Africa’s stage of economic development would be expected to have a TEA (early stage entrepreneurship) rate in the order of 13 percent, almost double South Africa’s actual rate of 7,8 percent.
When we add the increase of discouraged work seekers, the result of job losses during the recession and the fact that our financial literacy rate is at a very low level, it is clear that partnerships are crucial to improve the lives of all South Africans.
The Minara Chamber of Commerce brings a wealth of wisdom, expertise and
opportunities and together with the Young Business Society’s helping hand to support young businesses, the economic growth in our province and country will go from strength to strength. The power of excellent mentorship is invaluable.
We are delighted to be part of this gathering. Not only because a workable and mutually beneficial partnership will be struck between will the Young Business Society and the Minara Chamber of Commerce but the agreement also lay a foundation for the future growth and development of our economy.
The philosopher, Karl Marx said: “The philosophers have only interpreted the world, in various ways; the point, however, is to change it”.
This means that we must come up with concrete and implementable steps to deal with our challenges and indeed ensure that we move beyond moaning about our challenges but actively work at turning these into opportunities.
However, we must understand that the MOU, on its own, will not address our common challenges. The MOU is a statement of commitment to work together towards a shared objective. It is up to the signatories to the MOU to breathe life into its declarations.
We want to congratulate those who will receive awards this evening, understanding that winning an award does not only recognize excellence in a particular sphere of human endeavour, but acts as an encouragement for others to dream big.
Thank you for working together with government to build an economy that creates opportunities for all and to make tourism work for all of us.
I thank you
Issued by: Provincial Treasury, KwaZulu-Natal Provincial Government
10 February 2010
Source: Provincial Treasury, KwaZulu-Natal Provincial Government
(http://www.kzntreasury.gov.za/)
