the African Business Leaders Forum
18 October 2006
His Excellency President Paul Kagame of the Republic of Rwanda
His Excellency President Yoweri Museveni of the Republic of Uganda
His Excellency Liu Guijin, Chinse Ambassador to South Africa
His Excellency Dr Kenneth Kaunda, former President of the Republic of
Zambia
His Excellency Yaw Osafa Maafo, Ghanaian Minister of Education
Chairperson of the NEPAD Business Foundation, Dr Reuel Khoza
Professor Agyerman Baffour representing the Finance Ministry of Ghana
Distinguished guests
Ladies and gentlemen
On behalf of the people of Gauteng, it is a pleasure for me to extend a warm
welcome to all the guests who have come to the African Business Leaders Forum.
Over the past three years your forum has created a unique opportunity for
leaders in government and the public sector to exchange ideas on key challenges
confronting our continent and its people.
We began this century with high hopes that this was going to be a period in
which African children would taste peace, economic growth and a better life. As
President Thabo Mbeki said, "Those who populate the poorest part of the world,
Africa, have boldly declared that it will be an African Century. It is a
century in which billions of the citizens of the developed world and other poor
and marginalised people, would want to transform into a century for all
humanity",
To give expression to the vision to of an African Century and to defeat the
scourge of poverty and underdevelopment, a number of initiatives were
undertaken, the most notable of being the New Partnership for Africa's
Development (NEPAD). Driving NEPAD is a desire to put African countries on a
path to sustainable growth and development, to halt the marginalisation of the
continent in the globalisation process and to accelerate the empowerment of
women. By agreeing on NEPAD Africans have declared to the world that they are
determined to seize the future and make it work for themselves.
As we come to the end of the six years in this African century and amidst a
growing divide between the rich developed world and the poor underdevelopment
and reluctance by the rich to fully implement the Millennium Development Goals,
there is a glimmer of hope emerging on the horizon. A new dawn is breaking.
"After two decades of adjustment without growth, there are, at last, some
real signs of improving economic performance in Africa" says a report released
by the United Nations Conference on Trade and Development last month.
The report to say: "Not only has growth steadily accelerated since the turn
of the century but new trade and investment opportunities, particularly arising
from increasing demand in emerging markets such as China and India, hold out
hope that this time round it might be sustained. Ongoing efforts at
macroeconomic and political reform have been consolidated in many countries,
and the launch of the New Partnership for Africa's Development signalled
willingness on the part of African leaders to confront past mistakes but also
to be held accountable for their side of the development bargain."
This statement represents an admission that Africa is making progress, on
her own terms and embedded in the words that says "African leaders are willing
to be held accountable for their side of the development bargain" and
acknowledges that initiatives that Africa has taken are beginning to succeed in
reversing Afro-pessimism.
This has opened a space for African leaders in the public and private sector
to jointly act with renewed energy to drive the continent's economic recovery.
To sustain growth will require a bold and visionary leadership capable of fully
understanding Africa's comparative advantage and how this can be turned into a
sharp and competitive edge.
This means we have to develop smart economic growth and development
strategies to drive sustainable growth. It has been said that for the continent
to meet the Millennium Development Goals it will require a sustained growth of
eight percent per year for the next decade. This is well above the 5,5 percent
growth in gross domestic product expected this year.
At the centre of our growth strategies should be a focus on public sector
investment in strategic economic infrastructure to stimulate private sector
investment, growth and job creation in key sectors. Through public-private
partnership, the private sector business leaders need to examine the role they
can play to speed up the provision of infrastructure.
We also have to critically look at the kind of talent that will be required
for us to be able to compete in the new world dominated by globalisation. This
means that our human resource strategies must be based on a clear understanding
of the kind of skills we need to compete today and the skills that will keep us
on the competitive edge 20 years from today.
I also believe that sustained growth and economic development will come if
we also pay attention to the improvement of the transport network in our
continent. The challenge is to integrate transport to enable our people to work
and do business in different parts of continent without undue delays. We have
to improve logistics to allow the movement of goods from the continent to
international and local markets speedily and efficiently.
Most importantly we have to improve political stability and ensure the
safety of citizens of our continent. We have made good progress to achieve
reduced conflicts and wars on the continent but there are pockets of
instability which are not good for economic growth. Crime levels need to be
brought down to give our citizens a sense of safety and to create a climate for
the economy to thrive. These issues must be attended to at the same time as we
improve communication technology and connectivity.
One reason that has hampered economic growth on the continent is the lack of
focussed attention on developing entrepreneurship. With proper support and
development small, micro and medium enterprises (SMMEs) can play a major role
in reducing unemployment and poverty. Governments can play a role in this but
clearly; it is a partnership with business that can spur this sector to higher
levels.
In a climate of continuing agricultural protectionism by the developed
world, SMMEs can play a decisive role in the recovery of agriculture on the
continent. Because of their low overhead expenses SMMEs can energise a
productive African agricultural sector. There is a need to also determine what
needs to be done to support peasant farmers and keep them on the land.
All in all African business leaders need to do everything possible to boost
intra-African trade and commerce. We must trade more with ourselves as Africans
if we are to trade more effectively with the world.
I wish you well in your deliberations and may you have fruitful engagements
and help our continent to prosper. Africa's time has come, let us seize the
moment.
I thank you.
Issued by: Office of the Premier, Gauteng Provincial Government
18 October 2006
