Z Mkhize: Trade Exhibition of International Society of Sugarcane
Technologists opening

29 July 2007

Honorary Chairperson, Bernard Ravnö
ISSCT President, Vic Mason
Congress Organising Committee Chair, Dr Kathy Hurly
President and General Manager John Deere Thibodaux
Ladies and gentlemen

Thank you and good evening everyone. To the members of the International
Society of Sugarcane Technologists (ISSCT), let me extend a special welcome to
you. Our government appreciates your interest in the South African sugarcane
industry and we look forward to increased business ties with you.

Last year, I was invited by the Sugar Industry Trust Fund for Education
(SITFE) to address stakeholders and recipients of the SITFE bursaries. As a
previous recipient of SITFE bursary myself, I did not hesitate to accept the
invitation. Since the establishment of the Fund 42 years ago, thousands of
disadvantaged students have been afforded access to agriculture, science and
engineering education. This contribution is a clear indication that
stakeholders in the sugar industry are aware that the levels of poverty mean
that many youth with potential to develop are hampered by the inability of
parents to fund their educational advancement.

It is true that the ability to compete in the global front is dependent on
training and mentoring. Unfortunately the reality in our country is that the
wealth of the child's family is very likely to determine that child's access to
a decent education.

As provincial government we are mindful of the fact that economic growth
comes from talent and knowledge. As economies become ever more sophisticated
and ever more integrated, we will compete for skilled and talented people
against countries all over the world.

With 45 300 registered sugarcane growers predominantly from this province,
we are very grateful as the province for being awarded the bid to host this
congress, thanks to the strong leadership shown by the South African Sugar
Technologists Association.

We see this conference as a platform to share experience, knowledge and
information. Innovation, science and technology, research, education and
development are crucial tools to ensure that the sugar cane industry remains at
the top end of technological advancement and ensure competitiveness, since the
global economy is always on the drive for more efficiency and affordability as
the demand for quality products force them to circulate around the world.

We are looking forward to the discussions that are set to take place. Such
debates as this conference will delve into will generate interest beyond the
sugar cane industry, such as the possibilities of the production of bio-diesel
through the conversion of sugarcane to a form of energy source and converting a
sugar mills into a bio-refinery. Government departments of Agriculture and
Economic development will be interested in the latest research on:

* improvement of productivity and quality of products
* soil health and the sustainable use of land for agriculture
* plant nutrition and elimination of crop diseases
* the latest technology in the equipment used in the entire value chain from
research, crop production, harvesting, refinery, etc.

Similarly there is wide interest in health issues associated with the
consumption of sugar such as obesity, diabetes, dental decay and what other
sectors can do in collaboration to promote a healthy lifestyle.

I strongly believe that this province, in particular farmers, will also
benefit from your expertise during your visits to farms and sugar factories.
South Africans, by nature are open minded and always want to explore new
things. We have never been shy about asking for help and advice. The power to
create and re-create is in our hands, all of us here. We look forward to
learning from you all and we will be willing to share the little we can
offer.

I have been informed that of the 50 000 registered sugarcane growers 48 000
are small scale-farmers mainly on communal land of whom 23 577 delivered cane
for crushing in 2004/05 amounting to 11,65 percent of the total crop. In total,
these farmers earn approximately R600 million. What is more encouraging is that
a growing number of medium-scale commercial black farmers who were previously
excluded by the apartheid government are entering sugarcane farming on farms
made available at market-related prices by major milling companies.

This is proof that the partnership between government and private sector is
paying off. The development of small-scale farming is an obvious tool which
will bridge the gap between the first and second economies. In the past 13
years we have seen an increased in the number of black entrepreneurs getting
into the sugarcane industry.

To date, 16 percent of freehold land under sugarcane has already been
transferred to black growers. The South African sugarcane industry is embarking
on a programme which is aimed at ensuring that 30 percent of freehold sugarcane
is owned by emerging black farmers by 2014. The industry has established a
special and independent land reform entity (called Inkezo Land Company) in
order to streamline the process of land reform.

The direct employment within sugar industry is reportedly to be
approximately 85 000 jobs or six percent of the total South Africa's
agricultural workforce and indirect employment is estimated at 350 000 people
(2,1 percent of the total South African economically active population). Most
of the employment is in deep rural areas. There are approximately one million
people of the total South African population dependant on the sugar industry
for a living.

The sugarcane industry is very sensitive because it uses labour-intensive
methods; this on its own requires social stability. Fortunately stakeholders in
the sugarcane industry have put in place sustainable social investment
programmes that focus on HIV and AIDS, provision of support to rural women and
youth which has enabled them to establish co-operatives.

KwaZulu-Natal economic hub

KwaZulu-Natal's position as the second largest contributor to the country's
Gross Domestic Product (GDP) 16,3 percent has been built on the strength of our
natural resource industries.

The structure of the provincial economy differs from that of national
economy in that it has a proportionately larger manufacturing sector. Over the
past decade, the most dramatic change in the broad structure of the
KwaZulu-Natal economy has been the marked increase in the contribution of the
tertiary sector output. The tertiary sector therefore displaced the combined
output of other three sectors resulting in a significant decline in the
contribution of primary one percent, secondary, 2,6 percent and government
services at 3,3 percent.

While output has grown in all four sectors of the KwaZulu-Natal economy,
annual growth was strongest in the tertiary sector averaging 3,8 percent over
the years 1995 to 1999 and increasing to five percent in the more recent period
2000/04.

Growth in other three sectors has been slow but the recent performance of
the primary sector, agriculture and to a lesser extent mining (titania slag,
iron, coal and stone) was disappointing.

With regards to formal employment, the only gains have been made in the
tertiary and government services sectors. Combined the tertiary and government
sectors provided 65 percent of total formal employment in KwaZulu-Natal in
2004. A total of 1,33 million people were formally employed in KwaZulu-Natal in
2004 and this figure has increased significantly.

Primary sector

The agriculture sector generates only 5,5 percent of the GDP in the
province. It contributes 8,4 percent of formal sector employment.

Agriculture and forestry related activities generate 76 percent of the
primary sector output, while mining generates remaining 24 percent. The
structure of the primary sector in KwaZulu-Natal is therefore vastly different
from that of the national economy where 72 percent of the primary sector output
is mining related. Although the contribution of primary sector agriculture to
KwaZulu-Natal's economy is relatively small at 5,5 of total GDP in 2004,
KwaZulu-Natal Agricultural Departments estimates that the contribution of
agriculture including downstream activities is closer to 15 percent of
geographic products.

There is an unrealised potential in agriculture in the province to the tune
of 366 percent of present production. Investment in the agriculture sector
creates 120 percent more employment than equal investment in any other sector
because agriculture is labour-intensive relative to other sectors.

Destination of choice

As you will be travelling throughout the province as part of pre and post
congress tours, I trust that valuable networking will take place. I have no
doubt that you will observe that our excellent infrastructure has created
endless opportunities.

Government's Accelerated and Shared Growth Initiative for South Africa
(AsgiSA) has identified certain investments in order to accelerate growth and
part of this massive investment is in infrastructure ahead of the 2010 Soccer
World Cup. AsgiSA is aimed at ensuring that economic growth.

In KwaZulu-Natal, infrastructure investments have been planned in such a way
that sustainable jobs are created even beyond the World Cup. The much talked
about 70 000 seater Moses Mabhida Stadium will feature tourists' attractions
and its design will ensure that the facility is used for other activities such
as Olympics even beyond the 2010 soccer World Cup. About R2,2 billion has been
set aside for the construction of the stadium.

In view of the fact that many teams taking part in the World Cup will be
selecting "base camps", we have taken a decision as provincial government to
ensure a dedicated budget for the upgrading of stadiums and construction of
multi-purpose sports facilities in a number of district municipalities.

I have no doubt that many of you will return to the country for the 2010
Soccer World Cup. Most fortunately, the President of Federation International
Football Association (Fifa), Sepp Blatter, has reiterated that our country is
perfectly capable of hosting the World Cup and "would indeed do so, setting new
benchmarks in terms of the success of this most important global sports
tournament." When he was asked whether there was an alternative country to host
the World Cup, he said that an alternative country would be South Africa.

The overall government infrastructure expenditure is R410 billion between
2007 and 2010. Of this, about 40 percent will be spent by public enterprises
mainly Eskom. About R84 billion will go towards energy generation, transmission
and distribution.

Transnet has a budget of about R47 billion, of which R40 billion will go
towards upgrading of harbours, ports, railway and petroleum pipelines. More
than 19,7 billion will go towards water infrastructure. The Airports Company of
South Africa will spend R6,8 billion towards the construction of King Shaka
Airport and the Dube Trade Port. This is the biggest single government
infrastructure investment in the province. The airport will facilitate traffic
between KwaZulu-Natal and many countries such as America, Brazil, China, and
India to name but a few.

The construction phase of the Dube Trade Port offer opportunities for
companies involved in manufacturing sector. Upon its completion Dube Trade Port
will boast agriculture and agri-processing facilities and specialised cold
storage facilities that will be built in the government-managed Trade Zone.
This will create opportunities across the province for the production of fresh
produce, cut flowers destined for the export markets in Europe and Asia,
particularly China. We see 2010 World Cup as a springboard from which to launch
a massive export program.

The passenger terminal on the other hand is set to boost tourism. Of all
provinces, KwaZulu-Natal attracts the largest number of tourists in the
country's tourism market. Last year KwaZulu-Natal attracted 11,6 million
domestic tourists making the province the number one leading destination in
domestic tourism; 1,6 million international arrivals making KwaZulu-Natal the
third destination of choice for international tourists. Hotel occupancy rate
has remained at 77 percent throughout the year above the national average of 71
percent. Tourism contributed 20 percent to the economic growth rate of
KwaZulu-Natal.

Conclusion

It is a special honour and privilege for me to extend a warm word of welcome
to all the delegates. This is the land of the revered Madiba. Nelson Mandela is
not only our first President of a democratic South Africa but is a world icon
who has inspired multitudes in and outside our borders. I am certain that
though many of us could not join in wishing him a happy 89th birthday a few
days ago, we carry with us good wishes and complements for the immeasurable
contribution that he has made to humanity as a symbol of peace, justice and
equality. In the footsteps of this colossus, the leaders of our country led by
President Mbeki have focused on creating a developmental state which will
ensure that all the resources available in this land are mobilised to deal with
all the challenges that we face, such as diseases as Tuberculosis, HIV and
AIDS, crime, poverty, illiteracy and underdevelopment.

Contrary to the government that welcomed the delegates who attended the
Sugarcane Technologists Congress in 1974, the current government is preoccupied
with creating a better life for all the citizens, fight poverty and en ensure
that equality and freedom has meaning to all. That is what the miraculous and
peaceful transition from oppressive apartheid regime to a democratic
dispensation means. In welcoming you we pay tribute to your governments and all
the people from the international community who stood in solidarity with us as
we waged a struggle for justice and equality. We want you to know that freedom
in this country is an achievement that belongs to you as well. That is why we
invite you, investors from the world over, to come and invest in this country
to make a dream of a non-racial and prosperous South Africa a reality for us
all.

We welcome you to the province of KwaZulu-Natal. It may surprise many how a
Kingdom exists in a Republic. This is the old Kingdom of the Zulu people,
fashioned by its founder and military genius King Shaka over two centuries ago,
and has survived the onslaught of colonisation. It is a home of a proud history
and heritage of the people of South Africa in the fight against dispossession.
Having defeated the top generals of the British military forces, one of
unchallengeable might at the time, having put an end to the Napoleonic Dynasty
one of the best known in European history. To this history adds the history of
Mahatma Gandhi where the doctrine of Satyagraha was originated and refined
before it was employed to successfully attain the liberation of India and
influence the peaceful resistance of Martin Luther King Junior and the American
civil Rights movement.

Many sites of historic importance reside in the province. With the best of
the wild life, the Big Five and a plethora of fauna and flora, KwaZulu-Natal
has everything a tourist may wish for. Starting with the warm beaches in which
the pleasant weather ensure that bathing can be pleasant in any part of the
day, night and any time of the year round. For the hikers, provides the best in
the Drakensberg, the highest range of mountains with the footprints of
prehistoric paints of the San and Khoi people. This and the Saint Lucia
Wetlands Park have given the province two World Heritage sites.

I can only leave for you to wander around and sample the warmth and the
smiles of the friendly people of our country and the diversity of cultures, in
cuisine, religion and languages to make us a rainbow nation. We will do
everything for you to feel that you are a home away from home.

Welcome! As we say in isiZulu Siyanemukela.

Thank you.

Issued by: Department of Finance and Economic Development, KwaZulu-Natal
Provincial Government
29 July 2007