Development, Dr Zweli Mkhize, at the grand opening of the Toyota Boshoku Plant,
Umbogintwini
3 October 2006
Your Worship, the Deputy Mayor, Councillor Logie Naidoo
Chairman of Toyota Boshoku, Mr Junichi Yoshikawa
Community representative, Mr Desmond Makhanya
Toyota Boshoku management representative, Mr Kurty Gumbi
Shareholders
Members of media
Ladies and gentlemen
Ohayo gozaimasu (Good morning)
I feel a great honour to have been invited to such an important event. I
wish to welcome Toyota Boshoku, a company that has gained a reputation in the
provision of good quality interior components of the vehicle. Technical
performance of a vehicle is as important as the personal comforts, making
Toyota Boshoku an essential player in the manufacturing of vehicle components.
Toyota Boshoku has developed over decades of the Toyoda family, weaving
business to become a global player of note in the automotive industry, giving
Toyota products the superiority of quality that they are internationally
renowned for.
One can never over-emphasise the contribution that has been made by the
motor-car industry to our economy, especially by the Japanese. The investment
by Toyota Boshoku shows clearly that South Africa in general, and specifically
our province, has the necessary conditions for good returns on investment.
South Africa today is one of the most sophisticated and promising emerging
markets globally. The unique combination of a highly developed first-world
economic infrastructure and a huge emergent market economy has given rise to a
strong entrepreneurial and dynamic investment environment. The United Nations
Conference on Trade and Development (UNCTAD) World Investment Report for 2004
rated South Africa as the most attractive country in Africa for transactional
corporations in 2003.
South Africa has achieved a level of macro-economic stability not seen in
the country for 40 years. These advances create opportunities for real
increases in expenditure on social services, and reduce the costs and risks for
all investors, laying the foundation for increased investment and growth. The
budget deficit decreased from 9,5% of Gross Domestic Product (GDP), (including
the deficits of the former Bantustans) in 1993, to 1,5% in 2005. Total
public-sector debt fell from over 60% of GDP in 1994 to barely 35% of GDP in
2005. The net open forward position of the Reserve Bank improved from US$25
billion in 1994 to a positive US$17,2 billion by 2005 (the highest level ever).
Foreign reserves rose from two month's import cover in 2004 to three months
import in 2005. Government wants, therefore, to encourage many investors to set
up production in South Africa for commodities destined for international
export, especially so in the automotive manufacturing industry.
The Provincial Government is serious about creating the necessary
environment for economic growth which ensures benefits for all players. We are
proud to mention that the establishment of the Dube TradePort, which includes
the King Shaka International Airport, is taking foot. The Port will be
operational in 2009, in good time for the 2010 Federation Internationale de
Football Association (FIFA) Soccer World Cup.
We, as the Provincial Government, are grateful to Toyota Boshoku for
investing in our country and thereby creating jobs. I am informed that your
plant has a headcount of 573 and by 2007 you will have 800. That means next
year, 800 families will not go to sleep without food, their children will be
able to go to school, and so on. I can go on and on about the direct benefits
of a working family member. Over and above, there are families who will benefit
from the secondary industry of products and services needed by your plant. We
will want to work with you, as government, to ensure there are adequate skills
for local people to be able to produce components of high international
standards and that we're also able to achieve the processes of Black Economic
Empowerment (BEE), working together with your company.
I am also aware of your proud history of social responsibility like the
scholarships, the clothing you send to refugees and victims of natural
disasters, helping children with Downs syndrome, and so on. Government
appreciates business people who go beyond profit figures and who recognise that
people make businesses and that those people come from communities that
certainly would always benefit from social investments.
It is no small feat that you have decided to build your first African plant
in our country. Words of gratitude alone are not enough. It is therefore our
intention to ensure that you do not regret your decision. You have come to
South Africa at very exciting times. Our country is hard at work trying to
ensure a successful FIFA Soccer World Cup. We'll also be hosting the A1 Grand
Prix for the second time next January.
Above what I have said, I can only encourage you and your shareholders to
enjoy the great hospitality of our country and the open door of the Provincial
Government.
I thank you.
Enquiries:
Zakhele Nyuswa
Cell: 082 335 9938
E-mail: zakhele.nyuswa@kzntreasury.gov.za
Issued by: KwaZulu-Natal Provincial Government
3 October 2006
Source: KwaZulu-Natal Provincial Government (http://www.kwazulunatal.gov.za)
