Coalition breakfast meeting
11 August 2006
MEC for Finance and Economic Development, Dr Zweli Mkhize
The Hon. Ramakrishna Sithanen - Deputy Prime Minister and Minister of Finance
& Economic Development of Mauritius and his delegation
Mr John Barton - Co-Chair, Growth Coalition
Mr Colin Franks - Investec (the sole sponsors of the breakfast)
Mr Lucky Moloi - President, KwaZulu-Natal (KZN) Chamber of Business
Members of the provincial legislature present
Mayors present
Presidents of various Chambers in KZN present
Members of the media present
Ladies and gentlemen
Good Morning. My colleagues Dr Mkhize, Dr Sutcliffe, Mr Barton and Mr Moloi,
have painted a picture of where in the global arena this province is in terms
of its economic and social status. That should be enough to boost your
confidence in our Province.
R6 billion investment
Mid-way with this Provincial Government in place, we have an investment of
R5 billion in KwaZulu-Natal, including and not limited to the building of the
R1.6 billion King Senzangakhona Stadium, and the R2.5 billion for the new La
Mercy Airport.
For the first time in 50 years, government will be building an airport.
Yesterday, Transport Minister Jeff Radebe announced that the government entity,
Airports Company of South Africa (ACSA), will be building an airport on its own
balance sheet. After 12 years we have now settled this question of the Dube
TradePort. KwaZulu-Natal will be building the Dube TradePort including a cargo
terminal, warehousing space, light manufacturing, an agri-zone which will
include an area of growing, packing and fresh produce for the export
market.
There will also be an information technology platform that will connect the
entire infrastructure and will serve as an electronic trading platform.
All this is expected to be in place in the next 30 months, and in seven
weeks time, we will get the bids from the two bidders and decide who will be
the preferred bidder. By March 2007, we are expected to hit the ground at La
Mercy.
Those of you here today, members of the private sector, should only see a
win-win situation for yourselves. Imagine the investment and the growth that is
anticipated. Hotels, jobs, new business, and a renewed wave of confidence in
this province! Letâs also not forget that the current Durban International
Airport, a strategic site comprising 560 hectares, will be open for investment
for industry expansion. The private sector must now come to the party.
I am an optimist when it comes to growth in this province. Despite the fact
that many major companies choose to operate their head offices in Gauteng and
the Western Cape, and that many of our own experts have left our province, I am
confident that KwaZulu-Natal will slowly lure them back - with the accelerating
pace of our development and through our Alumni programme.
While the word KwaZulu-Natal was previously associated with violence and
doom, that is all changing.
KZN Revival
We are on the verge of our own revival - politically, socially and
economically. And what's pleasing to hear is that everyone is rolling up their
sleeves and getting involved in that revival, together. For our part in
government, let me take the opportunity to share some pointers on the
Government roll-out programme for the next few years:
* implementation of the Dube TradePort
* a comprehensive provincial strategy to build infrastructure, including
appropriate infrastructure for the 2010 World Cup event
* the roll-out of the multi-billion Provincial Growth Fund
* the establishment of a small, medium and micro enterprise (SMME ) development
fund with participation by leading financial institutions
* increased funding for the agrarian revolution in the province
* the establishment of secondary and tertiary co-operatives in the
province.
In all of these programmes, the overriding consideration in determining
priorities, approving individual projects and allocating funds and resources is
the need to stimulate black economic empowerment, and develop public-private
partnerships.
It is clear from the plans we have in place for the growth of this Province
- that we cannot do it alone.
Furthermore, it is short-sighted to believe that business, both established
companies and aspiring black economic empowerment enterprises, should not be
part and parcel of this process, and engage more constructively in the growth
of this province. It can only be a win-win situation for all. The Government's
goal, to better the lives of the people in our province and to create a winning
province is in harmony with the objectives of business - to contribute towards
the growth of KwaZulu-Natal's economy and attract large dividends from such
investment.
KZN Booming
Let me share some thoughts with you about why this Province is booming:
* There is stability in KwaZulu-Natal. Political animosities have subsided.
A return to the conflict of the past is simply inconceivable. Nobody wants
it.
* The Province's strategic location and its harbours have become increasingly
important. Economists and political strategists predict that during the 21st
century India and China will emerge as major industrial and trading powers, to
rival the United States and the European Union. Durban and Richards Bay are
strategically placed to handle the economic traffic that will flow between
those nations and much of sub-Saharan Africa.
* Tourism has become a major international industry, and KwaZulu-Natal is
well-placed to tap into it. We have scenic grandeur and climatic zones that
range from high mountains to coral reefs. We have pristine wilderness and the
Big Five of eco-tourism - lion, leopard, elephant, rhino and buffalo. In one
place â the Greater St Lucia Wetland Park - we actually have the Big Six, with
whales added to the list.
* We have history. We have a vibrant cultural diversity. This year, for
example, marks the centenary of the Bhambatha Uprising and the beginning of the
Satyagraha movement both of which happened in KwaZulu-Natal. While our
government is leading the celebration of these examples of our heritage this
year, there is a lot that can still be done with other heritage projects and
the expertise of some of you will enhance and add excitement around our
heritage campaign. In October, the Prime Minister of India Manmohan Singh is
coming to Durban for two days with a delegation of over 110 people, 60 of which
will be business people and journalists from India, for the Satyagraha
celebrations.
My colleagues, Dr Sutcliffe and Dr Mkhize have spoken at length about the
preparations for 2010 Soccer World Cup. My only reminder to all here present is
that it's bigger than any one of us have imagined or can imagine.
Public Private Partnerships
We cannot go it alone towards development of this province. The
establishment of joint ventures with traditional businesses, black businesses
as well as technology and skills transfer has many benefits. It will see
businesses expand their production levels, while encouraging small businesses
to enter the market, and it encourages government to invest in infrastructure
to eliminate service backlogs in under-serviced areas, especially the black
townships and rural areas, in order to meet our people's basic needs. Basic
infrastructure services can also reduce poverty and contribute to job creation.
Through the various public works programmes government has, over the last few
years ensured that, the provision of infrastructure takes place in a manner
that enhances job opportunities for the unemployed, especially women.
Again, we say we cannot do it alone and we repeat our call for
public-private partnerships to enhance service delivery. We are committed to
utilising public-private partnerships in the creation of social and physical
infrastructure. Although parastatals and local boards still dominate,
private-sector involvement is gradually increasing through joint financing,
delivery concessions and other institutional innovations. To ensure that
partnerships promote economic empowerment, the government has focused on
developing new regulatory frameworks to guide these initiatives. All
public-private partnerships are to target small business development, job
creation and training.
Government's Spatial Development Initiatives (SDIs) are a particularly
significant vehicle for public-private partnerships. Focusing on areas with
untapped economic potential, they facilitate regional integration by promoting
investment, employment and wealth creation, as well as infrastructure
development. SDIs demonstrate the paradigm shift from the protected and
isolated approach to economic development of the past towards regional
co-operation and integration.
Bringing back talent
Recently, as the Provincial Government, together with the business community
we started a project to recall the alumni of our province. This is the vast
quantity of human talent over the years; individuals who have made their mark
in various spheres â business and other professions e.g. chartered accountants,
the arts, science, sports and political leadership.
Many of KwaZulu-Natal's alumni have naturally gravitated toward other
regions of the country where there has been a demand for their skills and
talents, notably to the industrialised Gauteng.
They have played a significant role in building South Africa's industrial
and other strengths and we, now say to them: "It is time to come home and
contribute towards building your province."
For KwaZulu-Natal is a province of untapped opportunity, where imminent
growth initiatives are destined to irrevocably alter the economic landscape.
Our own Renaissance is upon us, and in 2010 it will be displayed the world over
- from our football fields, our vibrant townships and our pristine beaches to
the activities of our diverse communities on an international stage.
Thulani Sithole
Deputy Director: Media Liaison
Tel: (033) 341 3428
Cell: 082 317 3727
E-mail: sitholtn@premier.kzntl.gov.za
Issued by: Office of the Premier, KwaZulu-Natal Provincial Government
11 August 2006
