District Municipality
23 October 2007
The Mayor of the Ugu District Council, Councillor Sthembiso Cele
The Deputy Mayor, Councillor Ruth Bhengu
Members of the Council
Members of the local chambers of business and industry
I would like to thank the District Council for the warm welcome we received
to the Ugu District Municipality, for this opportunity to interact with the
community and in partnership, to find ways in which we can make South Africa
and this District in particular, a better place for all who live in it.
We are indeed living in challenging and interesting times for the South
African economy. Our economy is growing at rates never before seen in this
country. However, this growth remains inadequate for us to achieve the goals we
have set for ourselves, those of halving unemployment and poverty by 2014. An
economy growing sustainably at six percent and above will ensure that we lift
South Africans such as those living in this area out of the poverty trap, that
opportunities for skills development and job creation are there and that
ultimately, we close the gap between the first and second economy.
As part of the Accelerated and Shared Growth Initiative for South Africa
(AsgiSA), we have identified that the Information Communication Technology
(ICT) sector is a key contributor to the growth and development of our economy.
ICT is a catalyst for economic growth and can facilitate the sharing of this
growth. This growth, Mayor Cele, if not shared by all South Africans, is
meaningless.
The high cost of broadband in this country and the limited access of this
technology to all South Africans, hampers South Africa's participation in the
global economy. If nothing is done about this, our country will get left
behind, and we may miss out on key investment opportunities which could further
accelerate economic growth. A study undertaken by government in 2005 found that
South Africa lagged behind its international counterparts in terms of
information and telecommunications service penetration, as well as the rate of
new technology adoption. Broadband penetration relative to international
benchmarks was also found to be low, and cost significantly more than
recognised benchmarks.
I am pleased that the InfraCo Bill, which was commended to the National
Assembly last week, was unanimously approved by the House. Broadband InfraCo is
an intervention that aims to address the cost of broadband by making
infrastructure in the national backbone and international connectivity
available at cost. Ubiquitous, affordable broadband access should no longer be
seen as the privilege of a few, but a basic right for all South Africans.
Created out of infrastructure which was previously owned by Transnet and
Eskom, and consolidated into an Eskom subsidiary, Infraco is a strategic asset
which will allow Government to leverage communications infrastructure for
economic growth. This is an investment intervention unlikely to have been made
by the private sector, and will allow the State to address a glaring market
failure, and bring broadband to the country's under-developed and
under-serviced areas.
Areas such as the Ugu District Municipality, which have such low ICT
penetration, have the most potential to benefit from the establishment of an
entity such as InfraCo. With ICT the possibilities for education, training,
skills development, job-creation, basic service delivery and broad-based black
economic empowerment (BBBEE) are immense. ICT has the ability to brighten the
prospects for the youth of our country, and offer to them opportunities which
they would never have had access to before.
The majority of municipalities within this District are rural, with even
more limited capacity and access to broadband than most urban areas. The
development of the ICT sector in this region will positively impact on the
agriculture and tourism sectors, which are the key industries for growth and
development in the region. This is why we have decided that parts of the
undersea cable will be constructed on this coast, in this area which was
declared a Presidential poverty nodal point in 2001 and requires assistance to
accelerate skills development, job creation and broader participation by all
its inhabitants in accelerating economic growth and development.
To retain skilled labour in the region and limiting the migration of its
educated workforce to the bigger cities by developing the ICT sector, is
crucial as it will contribute to its economic development. We concede that for
the ICT industry to fully thrive in this area, other issues and in particular
the issue of energy supply, need to be addressed. The electrification of all
households in South Africa, as well as schools and clinics, is a top priority.
The restructuring of the electricity supply industry, through the establishment
of the Regional Electricity Distributors (REDs), is a necessary intervention
which will address this key challenge.
Eskom is working flat out to increase capacity across the country and the
building of new power stations, as well as the increase of nuclear energy in
the supply mix, are some of the ways through which we aim to ensure security of
supply into the future, so that not only our urban areas are electrified, but
so that local municipalities such as Umzumbe and Vulamehlo can also gain access
to ICT infrastructure and use it to better the lives of the people in these
areas.
Councillor Cele, I can assure you that the decisions taken at this Imbizo
today will not just end here. It is not our intention my department will ensure
that all pronouncements made here today, are followed up on, so that we can
indeed live up to our promise of ensuring a better life for all South
Africans.
I thank you.
Issued by: Government Communications (GCIS) on behalf of the Department of
Public Enterprise
23 October 2007
