South Africa week, Maputo
2 August 2006
I am very pleased that the High Commissioner has, in her usual style, taken
the initiative to organise this South African week. I am particularly pleased
that she has done me the honour of asking me to open the event. I have come to
see Maputo as a second home.
We in the democratic South Africa owe a great deal to the people of Maputo
and of Mozambique. We were bound in the struggle for our liberation and now we
are bound in the challenges of ensuring our economic prosperity. Occasions like
this need to happen often so that we always are reminded of these key aspects
of our interdependence.
South Africa and Mozambique share the strongest economic relationship in the
Southern African Development Community. The Heads of State Economic Bilateral
Forum, established in 1997, has enabled the successful implementation of a
number of strategic projects between our countries. This forum, as well as
bilateral agreements formulated prior to and post its establishment, has
resulted in a significant boost in trade, with Mozambique's exports to South
Africa increasing by 2000% between 1994 and 2001 as a result of these projects.
South Africa is currently Mozambique's largest foreign investor and our foreign
direct investment, representing 247 projects, exceeds R8 billion.
Our solidarity extends beyond our mutual development to include the economic
progression of the continent. President Chissano was the second President of
the African Union after President Mbeki. Both countries have played a leading
role in establishing the New Partnership for Africa's Development (NEPAD),
motivating strongly for positive multilateral support for the continent's
developmental programme. We have also both been instrumental in negotiating
peace and stability in areas of conflict.
It is thus pleasing to see so many companies participating in the South
Africa week exhibition. In particular I would like to acknowledge the presence
of the entities that report to the Department of Public Enterprises: Eskom,
Transnet and its subsidiaries and South African Airways (SAA). Your presence is
a practical expression of commitments and intensions captured in NEPAD. I would
also like to thank you, Eskom, SAA, Banco Austral (ABSA), Cervejas de
Mocambique (SAB), Elgas, Holiday Inn, Hollard Insurance, KWV, Nestle, Polana
Serena Hotel, Sasol and Standard bank for sponsoring this event.
Key investment initiatives
As outlined in the NEPAD document, infrastructure is an important element in
the promotion of regional integration and economic development on the
continent. Eskom has become a key role-player in energy provision in
Mozambique. It owns a 33,3 percent equity stake in the Mozambique Transmission
Company (Motraco), which supplies electricity mainly to the Mozal aluminium
smelter. It owns shares in and manages Elgas, which constructs and
rehabilitates power infrastructure. And it has played a fundamental role in the
restructuring and development of the Cahora Bassa hydropower station.
Likewise, projects such as the Ressano Garcia Railway line and developments
around the Maputo Dry Port and Maputo International Airport Concessioning, all
contribute to improving the capacity for in-country and external shipment of
goods. And although the Ressano Garcia railway concession has not progressed in
the expected manner, Spoornet, which represents about 80 percent of Africa's
rail infrastructure, and the Mozambique Railway Company, CFM, continue to
conduct railway business between the two countries based on existing railway
agreements. It is our objective to continue to improve this cooperation to
ensure an efficient logistics corridor in the spirit of the original Maputo
Development Corridor initiative.
The Industrial Development Corporation (IDC) has approved funding for about
ten projects ranging from mining and mineral beneficiation, agriculture,
tourism, forestry, and transport infrastructure to energy. The Mozambique
Aluminium Smelter is the IDC's largest investment outside the borders of South
Africa. Our work around the Spatial Development Initiatives will also allow for
greater economic and industrial convergence. The South African Government,
through its High Commission is working closely with the Maputo Corridor
Logistics Initiative. This private sector group was launched in February 2004
to promote the Maputo Corridor as a first choice route of transportation of
goods from South Africa's landlocked northern provinces to its nearest deep
water port in Maputo.
Opportunities for further investment, however, still exist. The Beira,
Maputo and Nacala development corridors and the Tete and Limpopo transport
corridors serve as the nerve centre for investment attraction.
Strengthening co-operation
Mozambique boasts one of the fastest growing economies in the world. Its
strategic location within the Southern African Developed Community (SADC)
region, its potential for a vibrant tourist sector and its strong agricultural
sector, presents it with the potential to become an economic beacon for
developing nations. Having already risen to number 10 in the list of African
countries attracting foreign direct investment, continued cooperation could see
Mozambique reaching even higher growth levels.
Denel and the South African National Defence Force (SANDF) are already
engaged in de-mining activities. Operation Rachel resulted in the destruction
of more than a thousand tons of small arms, landmines and unexploded devices.
These activities will continue in order to create a safe environment for the
movement of people and to unlock the economic potential of this fertile
countryside.
The Committee for the Facilitation of Agriculture between Mozambique and
South Africa (COFOMOSA) Project will contribute to the economic empowerment of
both South Africans and Mozambicans. The agreement signed between the Nkomazi
Farmers Association and the Mozambican government, allows for 240 black,
smallscale sugarcane farmers to farm 12 000 hectares of land in the Moamba
District for 30 years. In return they will be expected to share their skills
with 360 farmers who will farm another 17 000 hectares of land, creating an
estimated 18 000 jobs.
Prospects for strengthened cooperation also exist within the tourism sector,
where we are already engaged in initiatives such as the Transfrontier National
Park. Improving issues of migration, and building on the South African Airwaysâ
(SAA) double dailies to Maputo, will also serve as a significant boost to this
sector.
Our shared history of colonial resistance; our common commitment to the
universal eradication of poverty through economic development; and our belief
that Africa's development should be driven by Africans, compels us to transcend
language and cultural barriers and support each other. The engagement between
South Africa and Mozambique has to be mutually beneficial and based on mutual
respect.
It is expected that South African companies will maintain the same corporate
practices and standards that they maintain at home. That Mozambican governance,
labour and environmental legislation will be abided by. And that South Africans
will play a leading role in the implementation of corporate social
responsibility activities.
To date, the performance of South African companies that have invested in
Mozambique can only be accorded good accolades. I want to thank you and urge
you to continue in this manner. I also want to congratulate the South African
High commission for putting together such a successful event. Thank you very
much for inviting me to share this occasion with you.
Issued by: Department of Public Enterprise
2 August 2006
Source: Department of Public Enterprise (http://www.dpe.gov.za)
