D Africa: Youth Co-operative Car Wash Project

13 September 2006

The Programme Director
Dikgosi tse di tlotlegang
Hon Executive Mayors
Hon Councillors
Municipal Managers and local government officials
Mr Malosi Kekana and the Umsombovu Youth Fund Team
Mr Neville Maimane and the provincial SEDA Team
Department of Trade and Industry officials and officials from the Provincial
Government
The most honourable guests of the day (car wash operators), Majimbos
Distinguished guests and the media
Ladies and gentlemen

Master of Ceremonies, the youth constitutes an important element of the
growth and development of any country. If the youth in South Africa whose past
sacrifices brought us freedom, are not involved in meaningful and productive
activities, the sustainable development of a skilled generation to take charge
of the future will be lost. The development of our province in particular and
our country in general, will not be realised if we do not strengthen the
development consciousness of this generation which carries the fate and destiny
of our entire society.

We need to nurture our young people, motivate and support them in productive
initiatives and activities. After all, we were also once young! Youth energy
must not be allowed to go to waste. It must be harnessed and channelled in the
right direction to yield an outcome which is socially acceptable.

To honour the memory of the generation of 1976, we have decided to help
young people organise themselves properly in their car wash initiatives. Today,
we are formally launching the car wash co-operative movement to help young
people realise their potential in a direction they desire and are passionate
about.

Part of our overall objective for meaningful development in the North West
is to meaningfully develop and give support to the youth and we firmly believe
that the car wash co-operatives which we will spread throughout the province,
is a good beginning. We must ensure that wherever the youth is involved in
these initiatives, we find them and help them to grow and prosper.

Real youth empowerment is only possible if it is done with the youth through
initiatives which young people themselves have started and are passionate
about. The car wash industry seems to have caught the imagination of young
people through out the country and therefore we need to guide this energy as we
did their revolutionary zeal in 1976 and beyond.

As government it will be remiss of us if we do not capture this and give it
momentum. The car-wash economy is booming, calling for our intervention. Surely
with our partners, we will respond appropriately. Giving direction and
supporting youth responsibility is the surest way of building a future
generation of responsible adults and leaders, focused on the task of
reconstruction and development, ensuring good generational ascendancy for
future responsibilities of leadership and management.

Master of Ceremonies, today many of us are engaged with the challenges of
poverty and underdevelopment. We have articulated policies and advanced a
discourse, emphasising the need to mobilise broadly and localise our response
to these challenges. We have acknowledged that Local Economic Development (LED)
is critical to advance the agenda for development and transformation, poverty
alleviation and empowerment, particularly amongst the youth.

Clearly Local Economic Development is crucial to defeat the scourge of
poverty, disease, unemployment and the social-ill besetting our communities.
But I must warn Local Economic Development that it is doomed to fail if the
youth is not at the forefront of our LED interventions.

Driving the struggle for poverty alleviation and meaningful and sustainable
development without the youth is like wishing for a plane or aircraft to fly
without a pilot. The youth must be the key drivers of social change and
transformation. But this role they must play having been truly empowered and
consistently guided and trained like when we are building future aircraft
pilots. The youth must therefore be willing to be taught how to play a role in
the future of their country.

We as the North West province, have set a development objective which
requires an average economic growth of 6,6% by the year 2014, in order to halve
unemployment over a 10 year period (now less than ten years – about 8 years).
The Poverty Eradication goal on the other hand, requires that the poor and
unemployed be prepared for future growth and development in our economy and
further empowered to fend for themselves. The transversal objectives that must
be promoted at all levels of interaction in the province to support the two
macro goals I have mentioned include inter alia: promotion of equal and fair
access to opportunities and assets, enhancement of competitiveness,
profitability and Small Medium Micro Enterprises (SMME) development, as well as
ensuring sustainable development through resource and environment
management.

The Accelerated and Shared Growth Initiative for South Africa (AsgiSA) holds
that, "Without interventions directly addressed at reducing South Africa's
historical inequalities, growth is unsustainable"

AsgiSA further highlight the fact that, "Successful measures to reduce the
inequalities will add impetus to growth"

The department is highly committed to the good course of:

* adding impetus to growth
* managing the environment effectively
* developing SMMEs
* promoting equal and fair access to opportunities
* making the poor or unemployed prepared for the future growth and development,
in order to enhance the attainment of the set 6,6% average economic growth by
the year 2014.

This background ladies and gentlemen, is the driving force amongst many
others which prompted the department to observe and assess the current
mushrooming of informal car washes in the province. Our youth find solace in
the informal car wash projects, to overcome the many challenges they are
facing, such as the high rate of unemployment.

Completion of their studies whether it is at high school or tertiary level
does not necessarily guarantee permanent jobs for them, a challenge emanating
from the economic structure we currently have a legacy we trying hard to
change. We as the department which is responsible for economic development have
made the following observation;

* The majority of these mushrooming informal car washes are being
established to keep the youth busy and not necessarily to be sustained over a
long period of time sometimes they are intended to raise quick cash.
* They are in most cases substitutes for the absence of good or better options
like permanent employment on continued schooling.
* The majority, if not all, are informal and not registered.
* Their locations are not permanent as they can be moved to other areas at any
time.
* The set-up and layout arrangements are very casual in nature as there is no
formal infrastructure.
* Some do not pay for water and electricity when such are utilised. Our local
municipalities are being disadvantaged in the process (I must acknowledge that
I know of many who do not use electricity at all.

The environmental impact study is not a prerequisite for such outlets before
establishments, water is thus wasted; ground surface is being damaged without
repairs or any consideration thereof.

Some are located at unauthorised premises. This area we are at today, was
previously designated for a public park only, but was utilised as a car wash
outlet without making room for water flow plans.

There are no drainage systems and toilets, you can see for yourselves! No
pre- establishment business training is being provided for the youth
(owners).There is no regular monitoring, evaluation, coaching, mentoring and
aftercare plans in place.

Funding is usually irregular, reactive, quantity driven, uninformed and
lacks future orientation in most cases. Your Worship, Executive Mayor
Sejosingoe, the project I am presenting to you today is aimed at;

* Converting existing informal and unstructured car wash projects into
well-organised businesses which will also take heed of the call of conserving
the scarce natural resources we have especially water.
* Creating a platform for aspiring or prospective Young Entrepreneurs to
acquire business skills and experience under the guidance of qualified mentors,
trainers or consultants,

Availing an opportunity for prospective young entrepreneurs to accumulate
start-up own contribution capital, to start their own formal businesses and
creating jobs for the unemployed youth of the North West province.

The Department of Economic Development and Tourism's objective is to
establish one centre at each local municipality as a Practical Business
Training Centre, (PBTC), for the North West province youth. Local young people
will be encouraged to form local youth co-operatives. A minimum of 10
youngsters (five males and five females, where possible) will be contracted to
manage each PBTC over a fixed period on behalf of the co-operative. They will
then exit the PBTC at the expiry of the agreed term, to create space for a new
group that will have the same chance. This will help to empower as many youth
as possible, preparing them for opportunities in the broader economy. In the
process, the youth will be taught such skills as financial, management,
leadership and social skill so that they can continue to play a meaningful role
in society and assume a role which is productive in the future.

We have solicited support from the following key role players; the
provincial Department of Public Works, provincial Youth Commission, Umsombovu
Youth Fund (UYF), Telkom; Independent Development Trust (IDT) and the
provincial Small Enterprise Development Agency (SEDA).

We are in discussion with the Department of Trade and Industry (DTI) and
Eskom for more contributions to consolidate the co-operative movement in our
province. We challenge the corporate social investment units of the private
sector institutions such as banks to join us by providing grants for the growth
and sustainability of this worthy initiative.

Distinguished guest, ladies and gentlemen, I now have the honour of
presenting this Mafikeng Youth Co-operative Car Wash, officially to her
Worship, the Executive Mayor of Mafikeng Local Municipality Councillor Mosa
Sejosingoe with full confidence that the project will grow from strength to
strength with our continued support. We will always remember that the youth are
architects of our future, but only when they are properly empowered and focused
within a conductive environment for their nurturing and development! Long live
the young lions! Our leader for the future!

I thank you!

MEC'S briefing notes for the sod-turning event marking the beginning of
Infrastructure Development Project for the Mafikeng Industrial Development
Zone

* Today is an important day to the people of the North West and of Mafikeng
and the surrounding villages, because we are here to witness the beginning of a
hallmark intended to bear a footprint they will not forget in their
lifetime.

* When South Africa thought about emulating other developing countries by
initiating the establishment of economic zones, we in the North immediately
thought about Mafikeng International Airport as an ideal location to locate our
Industrial development Zone.

* Since 2000 we have been grappling with this ideal, seeking operator permit
from the Department of Trade and Industry and an International License for
operating ours as an international port of entry.

* The North West province is convinced that such an initiative is not only
viable but offers a competitive advantage to the North West industries who are
interested in exporting their goods abroad.

* We are also convinced that the Mafikeng is a strategic location for such
an economic initiative because of its proximity to our South African
Development Community (SADC) trading partners.

* Our conviction is also based on the advantage South Africa is enjoying
because of its stage of development and a choice of most industries
internationally who prefer to launch their Africa business operation from here,
therefore we are sure that once we have developed this zone, we would be of
great importance to those who would want reach their customer quickly and
cheaper.

* We are here today to shorten the waiting that the people of this town have
witness, as government we are today demonstrating to our counterparts in the
private sector that we definitely are not only commitment to this project but
want to start soon.

* The Department of Economic Development would be spending a total of 57
million towards infrastructure development of our earmarked industrial
development zone. Today we want to give signal to all South Africans by turning
the sod for the construction of Bulk Water Supply starting today. We have
started two months ago with Bulk Sewer project.

* In the next coming months we will be starting with construction of
internal services at the location of the first phase of the earmarked
industrial township. The township will accommodate at least 50 sites to be
leased to interest manufactures.

* We would also complement the development of the Nelson Mandela Drive
connecting Botswana with Mafikeng by constructing an access road linking Nelson
Mandela Drive with the airport to ease future flow of fright from the Airport
and out of Mafikeng to various destinations. The road will be built in phases
starting with three kilometres and the bridge over the railroad.

* As we engage the our national counterparts to work together in finalising
the relocation of the International License from Pilanesberg back to Mafikeng
and the operator permit, we will be engaging potential investors into
discussions.

* We have concluded discussions and agreements with a private company that
is interested to build a Minerals Park as part of adding value to this
initiative and once we finalise some aspects with regard to matters of the
permit and the international license, construction of minerals complex building
worth no less that R60 million will begin. This project will enable diamond
cutters and polishers both premises and market for jewellery business.

* Our sister department of Transport, Roads and Community safety is making
strides in finalising refurbishment of our Airport Terminal and they are also
engaged in discussions with strategic partners to open an aviation academy. The
old Air Force Base would be utilised for this initiative.

* We have further interacted with Russian companies who expressed interest
to work with the province in utilising this space for meaningful economic and
business operations.

* All of the initiatives we mentioned here strengthen our conviction that
further delays in finalising the issues of the International Airport and the
IDZ operator permit would do harm than good.

* It gives us pleasure to join the excitement of you members of the business
community, community leaders, government officials, your Worships present here
today, Dikgosi, our youth and women organisations and business individuals in
that today we are witnessing yet another Milestone that give meaning and reason
why we should continue to have hope that the situation in this country will
ultimately tilt in favour of the poor.

Issued by: Department of Economic Development and Tourism, North West
Provincial Government
13 September 2006