Remarks by Hon. Jeff Radebe, Minister in the Presidency: Planning, Monitoring and Evaluation and Chairperson of the National Planning Commission, at the Pre–WEF Breakfast Engagement with Business, held in Sandton, Johannesburg
Introduction
It is a great privilege to address you on this pre-WEF breakfast once again.
Our country was well represented at WEF 2015 earlier this year and this was largely due to engagements such as this one where meet to align our messages. We need to meet more regularly and exchange notes on how to work together to overcome the challenges facing our country.
On behalf of Cabinet colleagues represented here and the rest of government, we express our commitment to working with the private sector in the interest of our country. The Presidential Business Working Group and Operation Phakisa initiatives are important platforms for continuous engagement.
Economic Overview
The global economy is going through a protracted downturn. Global growth expectations have decreased, driven largely by the slowdown in China. South Africa’s growth has not been spared the effects of the global slowdown and has been affected mainly by the fall in commodity prices.
Slow growth coupled with poor export performance, rising domestic costs, and constrained sources of demand have led to an increase in unemployment rate, currently at 25.5%. The budget deficit is now edging closer to 4% as a share of GDP. The total debt stock has risen to 44% as a share of GDP from 21.8% in 2008/9.
We are also facing a severe drought which will result in limited yields of agricultural produce that will threaten food security.
Role of the World Economic Forum
The World Economic Forum is an independent, impartial and not tied to any special interests platform, working in close cooperation with all major international organisations. The forum has delivered a unique value to its partners, members, and constituents through:
- Addressing key challenges on the global agenda;
- Shaping regional and national strategies in the global context; and
- Shaping industry transformation.
WEF promotes Public-Private cooperation through engagements with political, business, and other leaders of society in order to shape global, regional and industry agendas.
DPME are working with WEF on an initiative called the Urban Water Alliance aimed at creating a platform for different sectors to collaborate to address the wastewater problem in the major cities in the developing world.
WEF and the National Development Plan
These attributes and efforts by the World Economic Forum resonate are in line with the National Development Plan. The NDP sets some bold objectives for us to focus on achieving by 2030. These include the elimination of absolute poverty and the reduction of inequality and unemployment.
We need to create many more jobs, deliver major improvements in the education system, and a sustained focus on building the capacity and developmental commitment of the state. The NDP is not just a vision for what we want the country to look like in 2030; it also sets out the steps we need to take if we are going to achieve that vision.
Objectives of the NDP
To provide overarching goals that we can all unite around and work towards achieving by 2030. To build consensus on the major obstacles to achieving those goals and the steps that need to be taken to ensure those obstacles are overcome.
To provide a common framework for detailed planning. To create a basis for making choices about how best to use limited resources.
Implementing the NDP
- Government, in all its spheres, has broken the Plan down into the five year Medium Term Strategic Framework with the first period running from 2014 to 2019.
- Focus is not just on implementation but on the quality of implementation in the public sector.
- Focus for the private sector, civil society and other stakeholders must be on identifying how they can best contribute to the implementation of the NDP through their core activities.
- The National Development Plan’s success does not only depend on government; it also depends on strong leadership and active citizenship throughout society.
- Businesses need to be actively involved in thinking about and planning for the long-term – how they can contribute to growing the economy, raising employment and conserving our natural resources.
- Citizens need to be actively involved in holding the government accountable, developing their own capabilities and shaping their communities.
- Implementation requires all sectors to engage with the Plan, to understand its objectives and identify their role in contributing to its success.
- The World Economic Forum presents a great opportunity for all of us to promote and market the country as a key area for foreign investment.
- The World Economic Forum is a platform for us to share the National Development Plan’s vision for investors to understand our development objectives and sectors where investment is needed.
- The value for South Africa is the ability to help us build the right relationships and also manage the country’s reputation as an attractive market for foreign investment.
Thank you!
