P Mlambo-Ngcuka: United States of America - Africa Business
Summit

14 November 2007

Programme director
Your Excellencies Ambassadors and High Commissioners
Premier of Western Cape Province, South Africa, Honourable Ebrahim Rasool
President of the Republic of Madagascar, H.E Marc Ravalomanana
President of the Republic of Namibia, H.E Hifikepunye Pohamba
President of the Republic of Uganda, H.E Yoweri Kaguta Museveni
United States of America Secretary of Treasury Honourable Henry Paulson
United States of America Secretary of Trade Ms Schwartz
Minister of Transport and Communications, Angola, Honourable Andre Louis
Brendao
Vice Minister of Public Works, Angola, Eng Jose Joanes Andre
Assistant Minister of Trade and Industry, Botswana, Honourable Lebonaamaang
Thanda Mokalake
Minister of Accommodation, Housing and Town Planning, Gabon, H.E Mr Jacques
Adiahenot plus three delegates
Minister of Industry and Commerce of Mali, Honourable Ba Fatoumata Nene
Sy
Minister of Agriculture, Water and Forestry, Namibia, Honourable Dr Nickey
Iyambo
Minister of Mines and Energy, Namibia, Honourable Erkki Nghimtina
Deputy Minister of Trade and Industry, Namibia, Honourable Mr Bernhard
Esau
Permanent Secretary, Ministry of foreign Affairs, Namibia, Amb Veiccoh
Nghiwete
Executive Director, Office of the President, Namibia, Amb Ndali Chè
Kamati
Acting Permanent Secretary, Ministry of Trade, Namibia, Mr Munu G
Kuyonisa
Permanent Secretary, National Planning Commission, Namibia, Mr Mocks
Shivute
Minister of National Planning, Nigeria, Senator Sanusi Daggash
Minister of Economy, Trade, Private sector, Madagascar, Mr Ivohasina
Razafimahefa
Deputy Prime Minister, Minister of Finance and Economic Development of
Mauritius, Honourable Ramakrishna Sithanen
Minister of Public Enterprises, South Africa, Honourable Alec Erwin
Minister of Trade and Industry, South Africa, Honourable Mandisi Mpahlwa
Minister of Minerals and Energy, South Africa, Honourable Buyelwa Sonjica
Deputy Permanent Secretary, Ministry of Industry, Trade and Marketing,
Tanzania, Dr Florence Turuka
Principal Deputy Assistant Secretary, Department of State, Linda Thomas
Greenfield
Assistant Secretary for Aviation and International Affairs, United States of
America, Department of Transportation, Mr Andrew Steinberg
Deputy Assistant Secretary of Commerce for Africa, Middle East and South Asia,
Ms Holly Vineyard
President of the Corporate Council for Africa, Mr Tempelsman
Esteemed delegates and guests
Ladies and gentlemen:

Introduction

Greetings and best wishes to all participants. Thank you for choosing South
Africa as your meeting place. Welcome to the City of Cape Town and thank you
for choosing the Cape Town Convention Centre as the venue for this historic
business Summit.

It is said Cape Town is one of those cities you must visit at least once in
your lifetime.

Thanking the Corporate Council

We thank the Corporate Council on Africa (CCA) for the role it has played
over the years in promoting Africa in the United States of America (USA)
through convening business summits and disseminating information about
investment opportunities on our continent. A task that has to remain at hand
and even intensified. Many of you also do business in Africa and that is also
much appreciated.

First Summit held outside United States of America

We are particularly pleased with the decision to hold the first Corporate
Council US/Africa Business Summit outside the United States of America, in our
country. But we hope that you will also be doing so in other African
countries.

I am sure this summit will have concrete positive outcomes and it will give
fellow Africans an opportunity to influence the agenda of the CCA in the best
interest of both African and American colleagues.

Message to delegates

Africa is experiencing an unprecedented economic boom, which is going to be
sustained for many years to come. The time is right for investors who want to
participate in this exciting phase of economic prosperity to increase their
investments and those who have not yet invested to act. We say: Africa is open
for business! We have New Partnership for Africa's Development (Nepad), which
is an all-inclusive plan that captures some of key opportunities in Africa.

Africa's Economic Growth

An average economic growth of five and half (5,5) percent achieved during
the last three years is only the beginning. Growth in the current year is
estimated to exceed six percent and the outlook for 2008 is slightly down at 5,
8 percent due to global downturn. Africa, however, has some market leaders that
have sustained growth.

Tourism in Africa

Tourism in Africa grew at 8,1 percent average, which is above the world
average of 5,6 percent in the first eight months of 2007. South Africa's growth
is at 9,5 percent, far higher than the continental and world averages. The
scope for further growth is bigger in South Africa and in many African
countries with greater investment in infrastructure, air transport, hotels,
skills and product variety.

Youthfulness of Africa

Currently, youth aged 12 to 24 make up 1,5 percent of the global population
of 6,5 billion. Of all young people, nearly 90 percent or one point three
billion (1,3 billion) live in developing countries. Relatively, Africa has the
largest share of children and youth. This presents our continent and country
with an opportunity to shape the next generation, depending on what we do or
don't do. If we do not have a smart approach to developing the youth, it could
be a burden.

This, I want to argue, requires us in Africa and our partners to invest in a
highly productive and healthy youth for the sake of Africa and the world, which
is poised for an unprecedented skills shortage. Africa has the biggest pool of
warm bodies that can be trained for global skills needs and for the achievement
of the yet to happen African industrialisation.

So we would like to have your good selves as part of our skills production
and to curb Africa's under-skilling and brain drain.

In this, I urge that we agree to develop an "African Skills Revolution
Partnership" as a joint project with CCA. I volunteer all of us, Africans, to
input. That will be a win-win situation especially assisting in building and
rebuilding centres of excellence in Africa, even in your areas of need.

Alive with possibility

Tourism, agriculture and mining, with beneficiation, are some of Africa's
biggest opportunities that offer a win-win solution to US/African relations. As
a continent we need partners in improving education and health performance as a
base for a robust economic environment. Both also have economic and investment
opportunities for example, information and communication technology (ICT)
demand for e-education.

Conditions for growth

Rising oil prices and strong demand for commodities have contributed to the
economic boom of the last few years, but in addition, the restoration of
political stability, improved macro-economic management and debt relief, have
made a material contribution. Rising prizes have also contributed to the high
cost of living in many African countries.

So on its own, resource-demand driven growth is not sustainable or balanced.
Africa needs a much broader manufacturing base and much longer and wider value
chain. Africa needs to improve its industrial base, value addition, growth of
knowledge economy, do better on agriculture and fair access to markets. This is
an area in which the United States of America can be of great help. This by no
means says that we do not appreciate African Growth and Opportunity Act (Agoa).
We have seen how well countries such as Lesotho have used Agoa.

Increased demand for goods and services

There is a younger and dynamic breed of African entrepreneurs, who are
breaking new ground. They need someone to give them a chance. The combination
of these factors have resulted in greater demand for day-to-day goods and
services by citizens, as well as increased capital flows. Furthermore,
political stability has created a more conducive climate for long-term
investment in human and physical infrastructure.

Networking the entrepreneurs

Many emerging entrepreneurs have a need for partners with whom to make
significant investments in Africa. In such a visit and conference we must not
miss opportunities to make these important contacts.

South Africa's economic programme

Coming to South Africa, the Republic of South Africa has embarked on a very
ambitious programme to improve economic competitiveness. The programme is
focused on improving both the human and physical infrastructure and on policy
adjustments across a number of sectors. I am sure that the Ministers and
business leaders participating in the Summit will highlight some of the
interventions. We have our ministers of Trade and Industry and Public
Enterprises and Minerals and Energy who will participate in this summit.

Our Accelerated and Shared Growth Initiative for South Africa (AsgiSA) in
South Africa is an intervention that address the binding constraints to our
growth and even more lack of shared growth, therefore, we identified:

* infrastructure
* skills
* industrial sector
* capacity and scope of the state and regulatory environment
* second economy and poverty
* macro-economic

For each challenge we have interventions: education and skills is a cross
cutting challenge and we have elevated it through Joint Initiative on Priority
Skills Acquisition (Jipsa).

Despite all the challenges in South Africa, we have a set of seriously good
news. Economic growth has been good for South Africa and living standards have
been boosted by:

* higher wages, lower interest rates and personal income tax relief.
* rising employment

Significant share of economic success redistributed through the fiscus.

* the economy has boosted taxes and lowered interest rates, allowing
government expenditure to grow strongly
* social wage consistently expanded
* transfers to households have grown
* public sector remuneration and employment recently boosted
* growth in capital spending has improved access to and quality of
services
* permanent deterioration amongst significant challenges in the trade balance
from oil prices
* skill deficit binding
* our large number of poor citizens entrenches inequality.

Good timing for investments

Even with all our challenges you could not have come at a better time. We
are at a very exciting stage of development. We sincerely hope that you will
take the time to obtain information about investment opportunities in South
Africa, and also visit other African countries to see for yourself what is
really happening.

Now more than ever, Africa needs trade more than aid.

Importance of 2010

* We are ahead of schedule in construction of most of the stadiums and the
infrastructure projects under construction across the country. Despite
experiencing some labour disputes at some of the constructions sites.

* We are determined to make the 2010 Federation of International Football
Association (Fifa) Soccer World Cup the most memorable African experience
ever.

* We are particularly interested in leaving behind a transportation and
infrastructural legacy.

* Rolled and updated Information and Communication Technology.

* Boost of tourism and much better management of our soccer industry and the
beautiful game.

* Through tourism we will also be able to share benefits with other African
countries.

* While we do not think the United States of America will be in the final of
the 2010 Fifa Soccer World Cup, but this should not stop Americans from coming
in their numbers to watch South Africa in the finals.

Conclusion

Best wishes and great success in your deliberations. May you find the
experience fulfilling and rewarding. Thank you once more for taking the time to
deliberate on investment opportunities in South Africa and the rest of the
continent.

I thank you.

Issued by: The Presidency
14 November 2007
Source: The Presidency (http://www.thepresidency.gov.za)