Management Review (PMR) business breakfast meeting, Durban
15 September 2006
His Worship, eThekwini Mayor, Councillor Obed Mlaba
MEC for Finance and Economic Development, Dr Zweli Mkhize
Dr Kwazi Mbanjwa, Head of Department, Transport
Dr Michael Sutcliffe, Municipal Manager eThekwini Municipality
Johan Hattingh, CEO PMR Africa
Members of the provincial government administration
Members of the business community
Ladies and gentlemen
Thank you for the opportunity in allowing me to address this august
gathering of esteemed people who have made a difference to KwaZulu-Natal, our
communities and the overall development of our new democracy.
On behalf of the Provincial Government of KwaZulu-Natal, I applaud this
measurement of service delivery, this appraisal of excellence in achievements
and performance in the private and public sector, and the rewards received. It
is crucial towards maintaining standards and bettering it in places where it is
lacking.
To all of you, well done!
Judging performance
As reform activists we welcome judgement on what we say we can do, not on
what others believe we should do. Many of you today, come holding your heads
high achieving bronze, silver, gold and diamond awards in all categories. Every
one of you are winners here, simply because you have made the effort to compete
for excellence.
The fact that many captains of industry, business people, government
officials are today sitting together, sends a clear message that when you are
judged for your excellence, the criterion is the same. And that you have one
goal towards the upliftment, success and revival of KwaZulu-Natal.
Exciting times
We are living in exciting times in KwaZulu-Natal. Our vision for growth is
the people factor. It will take a special type of people to realise our vision
for social stability and economic growth, and this cannot be chosen and
achieved by government alone but with and by the people of KwaZulu-Natal.
And you as the private sector should also follow this path as there can only
be a win-win situation for us all.
Let me tell you why
In the space of 24 months, there has already been an investment by national
and provincial government of R5 billion into the province, including the
building of the R1,6 billion King Senzangakhona Stadium and R2,5 billion for
the new La Mercy airport.
The government investment, particularly in infrastructure has triggered an
exciting private sector interest. While some of the traditional large companies
are expanding their operations, recent weeks has witnessed the injecting of
around R650 million into the construction of a Tata Steel plant in Richards Bay
a move that has strengthened our resolve to accelerate growth to combat poverty
and unemployment. The Indian giant's steel and automobile manufacturer came at
a time when the north coast was also experiencing growth in the property and
hospitality sectors. Having been one of the first areas in the country to have
its Industrial Development Zone (IDZ) proclaimed in 2002, Richards Bay is now
beginning to respond to our expectations of transforming KwaZulu-Natal into a
real economic gateway.
This heightening economic prospect has to be matched with the provision of
both financial and human resources. While acknowledging the need to boost our
skills pool essential for the implementation all economic projects in the
province, we have also set up a funding mechanism for large infrastructures
projects in sectors with a potential to stimulate growth. This was in line with
awareness of a challenge faced by aspiring entrepreneurs, especially those from
historically excluded communities.
The Provincial Growth Fund is a collective initiative between the provincial
government and the private sectors, particularly the financial institutions.
Amongst the recent beneficiaries of this new government initiative, is the
Amatikulu Prawn Farm and Bayhead Marine Industrial Park that each received R24
million.
Forging ahead, we are changing the face of this province
The Dube TradePort at La Mercy, north of Durban, would provide a major
economic stimulus by developing a world class integrated logistics platform,
and was expected to grow import/export cargo by more than 50% as well as to
stimulate local economy and job creation.
With regard to the agrarian revolution, we have the land and climate to
quadruple agricultural production, and various large projects have been
launched. A major coup was the mushroom and rice project, embarked upon with
the Fujian province of China. Since this started in 2005, more than 30 mushroom
sites in KwaZulu-Natal have been established and already 70 000 sub-strates of
mushrooms had been distributed, from which almost 53 tons had been harvested.
This has benefited more than 2 000 people. Research shows an estimated one
million sub-strates will be developed this financial year, and about 750 tons
of mushrooms will be harvested, benefiting up to 30 000 people.
Other projects include the Mapophoma Maize Project and a similar one in the
Empangisweni area. Others are being rolled out in areas like Pongola, Makhatini
(Cotton Outgrowers' Scheme), and KwaNxamalala.
In Estcourt, 700 hectares of maize and beans have been planted, and the
Nguni Revitalisation Programme is well under way, with the aim of branding and
commercialising Nguni meat as a unique project from KwaZulu-Natal.
Our strengths in the province include:
* We have achieved stability in KwaZulu-Natal as political animosities have
subsided.
* The province's strategic location and 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 State of America (US) and European Union (EU). 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 history and a vibrant cultural diversity. This year, for instance,
marks the centenary of the Bambatha Uprising, and the beginning of the
Satyagraha movement, both of which happened in KwaZulu-Natal. In October,
Indian Prime Minster Manmohan Singh is coming to Durban for two days with a
delegation of 110 people, 60 of whom are business people and journalists, for
the Satyagraha celebrations.
Of course there are challenges too that we face.
We have addressed the HIV/AIDS pandemic with the strategic shift of the
creation of a Chief Directorate in the Office of the Premier, to co-ordinate,
at provincial level, a fully integrated and comprehensive response to the
issue.
The immediate priority for this directorate was the compilation of a status
report and the creation of a spatially-referenced database of all HIV/AIDS
programmes, projects, service providers and infrastructure in the province.
It will also conduct a preliminary survey of sector readiness to manage and
mitigate the impact of HIV/AIDS and to develop a process that establishes
agreement on implementation guidelines which will include verifiable indicators
of achievement.
The province has met its target of more than 50 000 AIDS patients receiving
antiretroviral (ARV) treatment by March 2006, and was also on track to complete
construction of 10 new clinics, two new community health centres, two district
hospitals and deploy 150 new ambulances by the end of the next financial
year.
Accountability
We need a corps of competent and dedicated public servants who deliver
quality services expeditiously. Life is a learning and exciting journey of
discovery and mistakes. But if we don't learn from our mistakes, it becomes a
tragedy as unlearned mistakes negatively affect our forward plan.
The Citizens' Charter is now in place, a tool which, among other things,
professes our commitment to seamless service delivery and sets out mechanisms
and recourse citizens have if they feel that either the services promised have
not been delivered or if they've been exceeded!
With the concept of the Accelerated and Shared Growth Initiative of South
Africa (AsgiSA) reverberating across the country, KwaZulu-Natal has positioned
itself to be at the centre of transforming this national economic blue-print
into a tangible and visible activity that benefits all our communities.
The province is indeed on the crest of an economic wave that we believe
would make an indelible impact on the socio-economic challenges facing our
ordinary fellow compatriots. Our attempts to eradicate poverty and reduce the
levels of joblessness are on the verge of being realised. This is in spite of
our fluctuating currency in the international market, which is not isolated
from the general economic experience of the world over.
Although we acknowledge the advances made in improving the province's
economic performance, we are mindful that our success hinges on our
aggressiveness in positioning the province as the most appropriate location for
investment. Our target is both national and international and hence, Trade and
Investment KwaZulu-Natal for example, continues to campaign for potential
investments to our province. We are confident that our efforts will contribute
to the ideals of AsgiSA.
But at the same time, for us to make sustainable progress beyond 2010, the
need for concerted interventions to increase technical and financial skills
could not be overemphasised. Our claim of an impressive economic performance
could pale into insignificance if we do not invest in skills development.
With massive state investment into infrastructure development, it is crucial
that our collective efforts with the private sector are directed at empowering
our young graduates with appropriate means to participate actively in the
economy. Failure to address the skills shortage could see us continuously
relying in imported talents an act that could undermine our own standpoint of
empowering our people.
Its time to bring back the skills to KwaZulu-Natal and gear up for our road
to prosperity, our time has come.
Thank you
Issued by: Office of the Premier, KwaZulu-Natal Provincial Government
15 September 2006
Source: SAPA
