P Mlambo-Ngcuka: Women’s Economic Empowerment of Women conference during
Women's Month

3 August 2006

Programme Director, Akhona Ngcobo
Business Partners Managing Director, Joe Schwenke
President of Business Women’s Association (BWA), Dr Namane Magau
Chairperson of Durban Investments Promotion Agency (DIPA)
Distinguished guests
Ladies and gentlemen

I am deeply honoured to share this momentous occasion with you, this being
the inaugural seminar on Economic Empowerment of Women with a very apt theme of
“Women Inspiring Women”.

The most important fact as well is that this seminar will not just be
another “talk show” after you have completed your deliberations, I am told, you
will have a way forward so that, a year later, we can measure our progress and
come up with tangible deliverables in which women will make a mark in the
economy of our country.

This is important since the advances that the women have made at a political
level in our country must also be matched and translated to both an economic as
well as social levels. Gender equity is entrenched in the Constitution and
various legislations of South Africa as well as in government programmes.

Recognition of Women in employment Equity
The steady rise in the implementation of employment equity in all sectors
further demonstrates the collective determination to recognise women as
critical players in the development of society across the spectrum.

Historical perspective of 9 August
The victories that those 20 000 women, with over a 100 000 petitions scored
when they marched to the Union Buildings in protest against the hated pass law
system, 50 years ago, have in many respects yielded results.

That historic women’s march has made it possible that today, we say that
women have complete political freedom. South Africa has made great strides
within a short time to advance towards the achievement of legislative equality
between women and men.

Gender equity in societal structure
Just less than a third of members of parliament are women; and South Africa
prides itself with having a Cabinet consisting of 43% of women representation,
four of the nine provinces are led by women Premiers, while our parliament has
more than 30% women representation. This women representation is gradually
being translated to local government level as well, where, while we were aiming
for a 50/50 representation, we stand at around 40%. Three of our metros are led
by women as Mayors, while there are a number of women who are District
Mayors.

This has contributed to ensuring access and substantive participation of
women in decision-making processes at the highest level. Access and
participation of a large number of women in parliament is an achievement that
puts South Africa at number 10 out of the 130 parliaments in the world in terms
of women's advancement in governance.

The future of women emancipation
This is a signal of better things to come for the majority of women in our
country. This trend of women emancipation and empowerment has to be translated
to all facets of South African life, there must be a socio-economic
transformation that takes place as well, and we would like to see more women
taking a lead at other critical areas like in business and civil society.

So when, in a few days’ time on 9 August, we celebrate the 50th Anniversary
of that historic march and the victories that were scored by those ordinary
women 50 years ago, we must remember that they left us a legacy in the struggle
for women’s emancipation and equality in our struggle.

While the generation of Lillian Ngoyi, Rahima Moosa, Sophie (nee Williams)
De Bruyn, Helen Joseph, Albertina Sisulu, Ruth First and Ellen Khuzwayo and
many others struck a decisive blow in the struggle for equality women of today
still have to confront the present challenges.

Women and Accelerated Shared Growth Initiative for South Africa
(AsgiSA)
It is true that there are numerous opportunities for women in business, be it
at the corporate level or as an entrepreneur and business owner. South Africa
needs the contribution that women can make to the national effort for faster
and shared growth and development.

AsgiSA has highlighted the concerns of women with regard to their economic
prospects, and the potential for women to help South Africa halve poverty and
unemployment by 2014.

Why the diminishing representation of women in corporate world?
We must ask ourselves why it is that.

The latest results of 2006 South African Women in Corporate Leadership
census show that, based on information submitted by respondent companies, 16,8%
of executive management positions are held by women, compared to 19,8% for the
previous year.

The decline is significant given the substantial increase in the overall
number of executive management positions (from 5 558 in the 2005 census to 7
890 in the 2006 study).

The latest results highlight the huge amount of work that still needs to be
done to bridge the gender gap, particularly when one takes into account the
fact that women make up 42% of the South African working population. The
transformation of the South African economy will not be complete until both men
and women have equal participation in the economy.

The low level of participation by women in the formal economy, as either
small business owners or entrepreneurs, has long been recognised as a problem
in South Africa.

Women and entrepreneurship
Ladies and gentlemen, entrepreneurship is the core to building a vibrant and a
sustainable small, medium and micro-enterprise (SMME) sector. The SMME sector
is critical to achieving the key national development objectives of economic
growth, employment creation and equity.

Combining formal and informal business activities, SMMEs constitute about
95% of all enterprises in the country. If we exclude all informal activities
and self-employment, SMMEs currently absorb between 50% and 60% of the formally
employed labour force and contribute at least 30% to Gross Domestic Product
(GDP), and its contribution is growing.

Consequently, it is important that women become a strong and visible
component of the sector. The report titled “South African Women Entrepreneurs –
A burgeoning force in our economy” indicated that women comprise 83% of the
informal economy, of which 61% of are African women.

The same report also underlines the need to promote entrepreneurship among
women, because it says that men are 1,7 times more likely than women to be
involved in entrepreneurship. Entrepreneurial activities also vary
significantly from province to province. The success of the AsgiSA will mainly
be determined by its positive impact on the second economy, where mostly women
are located.

AsgiSA working for women
We also believe that if AsgiSA works for women, it will work for the rest of
South Africa as women are of those to benefit. Women have to be afforded the
opportunity of actively participating in AsgiSA as part of empowering them in
growing our economy towards achieving the 6% target growth by 2014.

With the recent launch of Entrepreneurship Month the Department of Trade and
Industry (dti) has ensured that opportunities are created for real increases in
public and private sector expenditure to build the foundation for sustainable
investment and growth.

There are numerous positive factors that influence emerging enterprise
opportunities. However, it is imperative that there has to be a climate that
promotes new entrepreneurs to enter the economy and for established
entrepreneurs to further develop their businesses.

The challenge is to fully realise the potential of this burgeoning sector
and we must further develop the skills and numbers of our entrepreneurs.

Entrepreneurship combines persistence and imagination, driving the
innovation that often leads to new knowledge and discovery of opportunities.
Another area of support is to address the challenge of growing the number and
skills of our entrepreneurs of accessing finance.

Progress made
In this regard, some groundbreaking work has already been accomplished through
the response by Khula in collaboration with Business Partners to address the
key market failure of providing loans below R250 000 to small enterprises.

This start-up fund with a capital of R150 million was launched in February
this year has already approved investments totalling R12,5 million as at the
end of June 2006.

This will assist in solving the perennial problem experienced by many new
small enterprises that experience cash flow problems in the early stages of
their development.

As noted earlier women entrepreneurs are a vital component of the small
business sector. Women entrepreneurs must be provided equal access to all these
support measures.

In addition to this and in recognition of the fact that women are over
represented in the survivalist business category and underrepresented in
enterprises higher up in the value chain; there are a number of specific
programmes to support the creation of successful businesses run by women.

Women’s national directory for procurement
For instance a women’s national directory for procurement purposes has been
finalised and will be launched tonight in Johannesburg. For there to be a real
difference in growth, women must be at the centre of economic activity.

By including women with their empowerment and business skills we will have a
force for building a new South Africa that will be immeasurable in its positive
impact.

I wish you well as deliberate around issues of women empowerment, the ground
you are laying today should be felt by women of the next generation.

We are always told that business is the best at wealth creation. Business
now has a chance to accelerate the creation of real wealth for all.

Thank you.

Issued by: The Presidency
3 August 2006