K Motlanthe: State of the Nation address

State of the Nation Address of the President of South Africa,
Kgalema Motlanthe, to the joint sitting of Parliament, Cape Town

6 February 2009

Madam Speaker of the National Assembly;
Mr. Chairperson of the National Council of Provinces;
Madam Deputy President;
Deputy Speaker and Deputy Chairperson of the National Council of
Provinces;
Chief Justice Langa;
The former Deputy President of the Republic of South Africa and President of
the ANC;
Premiers of Provinces;
Members of Cabinet and Speakers of Provincial Legislatures;
The Former Chief Justice and Former Presiding Officers of Parliament;
Your Excellencies, Ambassadors and High Commissioners and visiting foreign
dignitaries;
Honourable Leaders of Political Parties and Members of Parliament, Traditional
leaders;
Your worship the Mayor of the City of Cape Town;
Religious leaders and representatives of civil society;
Comrades and friends;
Distinguished guests:

I am privileged to address the Joint Sitting of the Parliament of the
Republic of South Africa, at the beginning of this last session of our Third
Democratic Parliament.

I stand before the people of South Africa with humility at the opportunity I
have had to occupy the highest office in the land as a consequence of the
unique circumstance arising out of the decision of the leading party in
government to recall the former President.

Mine is a responsibility, within a matter of a few months, to lead the
National Executive in completing the mandate accorded the African National
Congress in the 2004 elections, and in laying the foundation for the
post-election administration to hit the ground running.

That we were able five months ago to ensure a seamless transition and
continuity in the systems of government is thanks to the maturity of our
constitutional system, reflected in part in the co-operation of members of the
Executive – old and new – and the steady hand of our public sector
managers.

As we look back over the past fifteen years, I wish to acknowledge the
commitment and hard work of Presidents Nelson Mandela and Thabo Mbeki and the
many women and men who played their role in steering the ship of state under
democracy: in the Executive and the administration, the legislatures across the
three spheres of government and the Judiciary; driven by the desire to improve
the quality of life of all South Africans.

Above all, I stand before you with pride and confidence that the South
Africa we celebrate today – worlds apart from the divisions, conflict and
exclusion of a mere 15 years ago – is a product of the labours and toils of
South African women and men from all walks of life.

These South Africans represent the hope and resilience that characterise our
nation.

Within the galaxy of outstanding South Africans are Members of our
democratic Parliament to whom we had the misfortune since last February to bid
the final farewell. They include Brian Bunting, Billy Nair, Ncumisa Kondlo,
John Gomomo, Joe Nhlanhla, Cas Saloojee, John Schippers and Jan van Eck.

To these, I would also like to add Ms Helen Suzman, a truly distinguished
South African, who represented the values of our new Parliament in the chambers
of the old.     

It is these and other patriots who should take the greatest share of the
accolade when we pronounce that – whatever economic storms may pound our
shores, whatever political uncertainties may visit our collective consciousness
in a transition – our nation is in a good state.

However, we should not underestimate the challenges we face. The global
economic meltdown does pose serious dangers for our economy in terms of job
losses and the quality of life of our people.

Naturally, the uncertainties of a political transition can pose more
questions than there are currently answers.

As a consequence, some of us may be mesmerised by the transient waves of
stormy weather and hunch our shoulders in the face of these headwinds of
economic turbulence and political tumult.

But ours is a journey of hope and resilience.

We may even say that, in a strange quirk of fate, many aspects of our
constitutional order have been tested in the recent past; and everyone of them
has passed the test to reveal a democracy that is exceptionally resilient.

Our democracy is healthy. It is steadily growing stronger, underpinned by a
Constitution hardly equalled in the world.

Indeed, the robustness of our political engagement during this season of
electoral contest – which we all agree should be dignified and peaceful – is
the surest guarantee of the continued survival and deepening of our
democracy.

It is South Africa’s people who have ensured its progress; and it is they
who shall secure our democracy in the years to come.

Allow me, Madame Speaker and Chairperson, in this context to urge all
eligible South Africans to register and to vote in the coming national and
provincial elections, so that we can shape our destiny ourselves.

This we should do every working day in the municipal offices, before the
voters’ roll is closed. But we should also take advantage of the special
registration weekend arranged by the Electoral Commission of South Africa (the
IEC) tomorrow and Sunday, the 7th and 8th of February respectively.

I should also take this opportunity to indicate that I will in the next few
days conclude consultations with the Electoral Commission and the Provincial
Premiers and announce the date of the elections.

Honourable Members;

We owe our being as a democracy to the people of South Africa who, on 27
April 1994, for the first time collectively took their destiny into their own
hands.

Through that simple but profound act of casting a ballot for a government of
all the people of our country, we turned our backs on a past that dehumanised
us all.

 

It is therefore appropriate on this occasion to celebrate the 20th
anniversary of the adoption of the Declaration of the OAU Ad-hoc Committee on
Southern Africa on the Question of South Africa adopted in August, 1989 –
commonly known as the Harare Declaration.

That initiative laid the foundation for global consensus, through the United
Nations, on the approach to negotiations in South Africa.

Within South Africa, it also informed the content of the 1989 Conference for
a Democratic Future – bringing together patriots from virtually all walks of
life.

 All this led to the negotiations process which culminated in our first
democratic elections in 1994.

In this regard, we should salute the late President of the African National
Congress, Oliver Reginald Tambo, for initiating and piloting through
continental and world bodies what became a compass for the peaceful resolution
of the conflict in our country.

That courageous step to devise a framework that would seek peace and
reconciliation, in the place of war and conflict, reversed for good the false
dawn of a hundred years ago: that is, the conclusion in 1909 of the National
Convention which presaged the formation of the Union of South Africa.

While that Convention defined the territorial integrity of South Africa as
we know it today, it was based on racial oppression and exclusion.

And so, 15 years into our democracy, we can assert that the fear, the
insecurity and the loathing that 100 years ago generated an exclusive and
illusory peace among colonial masters, were not only unfounded; but truly
misplaced.

Those fears and insecurities gave rise to decades of resistance. In this
regard, we salute that brave son of our people, Solomon Kalushi Mahlangu who
went to the gallows 30 years ago with his head held high, in the proud
knowledge that his blood would nourish the tree of freedom.

Allow me to acknowledge Lucas Mahlangu, brother of Kalushi, representing the
Mahlangu family.  

Solomon Mahlangu was continuing a tradition of the warriors of yesteryear,
among whom we count those under King Cetshwayo who in 1879 defeated the British
army in Isandlwana, in defence of the freedom of the indigenous people of our
country and the sovereignty of their lands.

A hundred and thirty (130) years on, we can only marvel at the hope and the
resilience that infused those stout hearts.

In the centres of learning, the same resistance fuelled the rekindling of
mass struggles during the cold winter after the banning of the liberation
movement and the imprisonment of most of its senior leadership.

A group of valiant students broke away from NUSAS to found the South African
Students’ Organisation (SASO) 40 years ago.

Within this generation are the early leaders of SASO, which included: Strini
Moodley, Professor Barney Pityana, Steve Biko, Onkgopotse Tiro, Harry
Nengwekhulu, Themba Sono, Mapetla Mohapi, Mosioua Lekota, Johnny Issel and
Mthuli ka Shezi. For inspiring hope in a period of despair, we salute them. In
this regard, we wish to acknowledge Onkgopotse Tiro’s cousin, Pat
Tlhagwana.

In this context we also wish to acknowledge the late Ephraim Mogale, the
founding President 30 years ago of the Congress of South African Students
(COSAS), and his peers. 

In the towering memory of these students of yesteryear resides an abiding
message, that the thirst for freedom and knowledge burns even stronger in the
bosoms of our youth.

The message of their heroic deeds rings true today as it did those many
years ago, that we should together expand the frontiers of opportunity; that we
should indeed, in the words of the Freedom Charter, open ever wider “the doors
of learning and of culture”!

We call to mind these organisations and leaders to emphasise the spirit of
hope and resilience that infused the democratic struggle even when everything
looked bleak; to underscore the responsibility that rests on our shoulders to
advance the ideals that so many sacrificed for, refusing to be cowed by
setbacks and hardships.

And so, Madame Speaker and Honourable Chairperson, we should ask ourselves:
how have our actions defined the path of South African society’s evolution in
the fifteen years since the birth of our democracy; and how have we advanced
the cause of human development and human dignity since the 2004 democratic
mandate!

We do have today a well-functioning democratic system, based on principles
of transparency and openness, with numerous platforms for public participation
and independent institutions mandated by the Constitution to support
democracy.

Over the years, we have steadily improved the structures of governance. We
have built a system of healthy inter-governmental relations across the spheres,
and improved integration within and among them.

Indeed, government can be proud that we have changed the demographic
composition of the public service, which in virtually all respects approximates
the character of our society.

However, while women constitute about 34% of all senior positions in the
public service, this falls short of the target of parity that we had set
ourselves.

At the level of the national and provincial legislatures, indications are
that the nation will this year surpass the 32% women representation level
achieved in 2004 and hopefully, even the 40% achieved in the 2006 local
government elections.

We hope that all political parties will, as they finalise their electoral
lists, make their contribution to this noble endeavour!

Though some progress has been made, at 0,2%, the situation is less
impressive with regard to people with disability employed in government,
measured against the 2% target we set ourselves.

On both counts, the private sector is lagging far behind.

Various measures have been put in place to improve the efficiency of the
public service, including financial management, Thusong Service Centres and
other service delivery innovations, izimbizo and, as currently in the
Department of Home Affairs, firm leadership.

However, much more needs to be done to improve the service culture and
orientation of some public servants, especially those at the coal-face of
direct interaction with the public.

As Honourable Members will be aware, our government has made the fight
against corruption one of the core areas of focus.

This is reflected, among others, in legislation, rules and regulations
governing public servants and political office-bearers alike, partnerships with
civil society and the business community, as well as anti-corruption
hotlines.

It may as well be that the systems of preventing and punishing corruption
are still inadequate; but from the point of view of government systems, we can
draw solace from the fact that over 70% of cases of corruption reported in the
media become public because government has detected the wrongdoing and is in
fact acting against it.

The same challenges confront the private sector. In the end, the challenge
is as much about regulation; as it is about consistent enforcement.

Honourable Members;

I am certain that we are all agreed that the well-being of our society
depends, critically, on the progress we make in expanding the nation’s wealth
and ensuring that the benefits of economic growth are shared by the people as a
whole.

It is common cause that, after the economic stagnation of the late 1980s and
early 1990s, South Africa has experienced the longest period of sustained
economic growth since the recording of such statistics started in 1940.

In the First Decade of Freedom, economic growth averaged 3% per year, and
this improved to 5% per year on average from 2004 to 2007.

While the consumer boom, impelled by rising employment and incomes and low
inflation and interest rates, played its part in this regard, we are encouraged
by the broad canvass of opportunities for further expansion going forward.

These include, in the first instance, higher rates of investment by both the
public and private sectors. In this regard, some five years ago, we were
hovering around 16% of gross fixed capital formation as a percentage of Gross
Domestic Product (GDP). Such has been the acceleration in investment that today
this figure stands at 22%, closer to the 25% that we projected to attain only
in 2014.

This is in part a consequence of deliberate programmes by government to
expand public infrastructure.

It is also a result of policies to improve the climate for private sector
investments; and to conduct fiscal and monetary policy in a manner that expands
access to services and reduces the inflationary burden while at the same time
ensuring macroeconomic stability and sustainability.

The focus on micro-economic reforms in the past decade, and the efforts,
especially since 2004 more systematically to remove the variety of obstacles to
growth have had a positive impact.

It is in this context that the Accelerated and Shared Growth Initiative
(AsgiSA) is being implemented, ensuring that all the critical blockages such as
infrastructure bottlenecks, integrated industrial policy and programmes, the
skills challenge, regulatory gridlocks and efficiency of government services
are addressed in a focussed and systematic manner.

Our economy has become more open, and since 1994 it has steadily become
integrated into the global system. Our financial institutions are a force of
good example which has somewhat sheltered us from the global economic
storms.

Yet, the extent of their reach within our society remains far below
expectations. Our economy remains largely reliant on mining and agriculture for
exports. Except for the services sector, we have not seen a large enough
expansion in critical sectors, especially manufacturing.

As such, the rate of growth in exports has not been as high as in comparable
countries. It is precisely this weakness which accounts for the large Current
Account deficit particularly when we entered higher ranges of growth.

And because we have a low savings rate, we have had to rely on short-term
capital flows to finance the deficit as well as our investment programmes.

These are challenges that our country will certainly have to address going
forward.

Of critical importance is the question: what in fact should economic growth
be about? Wealth is created in order to improve people’s quality of life.

Thus, the question whether growth is equitably shared should form a central
pillar of all our economic considerations.

Importantly, sharing the benefits of growth should entail labour-absorption,
ensuring that there is decent work.

Indeed, it is a matter of proud record that between 1995 and 2003, the
economy created about one-and-half million net new jobs; and even more
remarkable, about 500 000 jobs a year between 2004 and 2007.

In this latter period, for the first time since the attainment of democracy,
more jobs were being created than the number of new entrants into the labour
market, thus reducing the unemployment rate from 31% in 2003 to 23% in
2007.

Of course, this should not detract from our obligation to continue
interrogating the issue of the quality of these jobs, including the rights and
benefits that workers enjoy.   

Sharing the benefits of growth should also include accelerated
implementation of affirmative action, including Broad-based Black Economic
Empowerment.

This is not in pursuit of a so-called racial agenda. In reality, a country
that does not ensure the involvement of all of its population at all levels of
economic activity is certainly going to perform well below its actual
potential.

 The fact that the private sector lags behind in changing the
demographics of management and skilled occupations, in enterprise development
and so on in part makes our country a laggard in the high growth stakes.

Sharing the benefits of growth also means an efficient and equitable role
for the state in using the fiscus as an instrument of redistribution and
sharing the burden of providing public goods.

Honourable Members will be familiar with most of the data on matters
relating to the social wage. I will however cite a few instances again to
sketch out the nature of the progress we have made and the challenges that we
face.

Government is painfully aware that abject poverty is still too widespread in
our society; and the level of inequality is too high.

We have in the past 15 years done our best to attack this scourge through
the social wage. To quote work conducted by a team of academics at the
University of Stellenbosch, led by Professor Servaas van der Berg:

“Firstly, money-metric poverty declined substantially since the turn of
the century. The reduction is to a large extent due to a dramatic expansion in
social grants expenditure from 2002 onwards. This improvement is mirrored in
access to basic services – a rapid decline in asset poverty even preceded the
decline in money-metric poverty. Secondly, although the reductions in poverty
have been substantial, aggregate inequality increased during the 1990s.
Thirdly, the dynamics underlying the poverty and inequality trends determine
the broad policy outlook…[P]poverty has decreased since the transition, but …
inequality has not improved.”

(Poverty since the transition: What we know, p8: van der Berg et al,
August 2007)

On a critical matter of detail, the researchers further observe:

“…Among households that include children (defined as those aged 17 and
younger), the number of households reporting that a child went hungry declined
dramatically (from just over 31 per cent to 16 per cent) between 2002 and 2006.
This suggests that the poverty situation has improved remarkably, particularly
among people experiencing the greatest degree of welfare deprivation. The
prevalence of hunger among children has virtually halved over four
years.”

(Poverty since the transition: What we know, p25: van der Berg et al,
August 2007)

Indeed, these observations are confirmed by our own research, which shows
that income poverty especially among African and Coloured communities has
declined, partly as a result of higher rates of employment and access to social
grants. While the number of grant beneficiaries was 2,5-million in 1999, by
2008 this had increased to 12,4-million.

This is largely a result of massive expansion in access to the Child Support
Grant, which increased from 34-thousand beneficiaries in 1999 to 8,1-million in
2008.

As part of the contribution to the income of the poor, the target for
1-million work opportunities through the Expanded Public Works Programme was
attained in 2008, a year earlier than envisaged in the 2004 electoral mandate.
This has created the possibility massively to expand this programme and improve
its quality.

With regard to household access to basic services, the figures speak for
themselves. For instance, access to potable water has improved from 62% in 1996
to 88% in 2008; electricity (58% to 72%); and sanitation (52% to 73%).

Evidence of the social wage is also seen in massive improvements in access
to primary health facilities. 95% of South Africans now live within 5
kilometres of a health facility; and we are informed that all clinics now have
access to potable water. Child immunisation coverage has steadily increased to
about 85%; and malaria cases have massively declined.

We are also heartened that research into HIV prevalence demonstrates
stabilisation and a slight reduction in rates of infection.

Further, our antiretroviral treatment programme is not only the largest in
the world; but it is expanding all the time, with over 690 000 patients having
been initiated on antiretroviral treatment since the commencement of the
programme.

Yet many health facilities do not always have the required medicines,
appropriate staffing levels, and constant supply of basic services such as
clean running water and electricity. In some of these facilities, management is
poor and staff attitudes need improvement.

In education, we have seen a drop in the educator: learner ratio; almost
universal access in terms of enrolment at primary school level; and an
improvement in the number of pupils passing mathematics, to quote a few
examples.

At the same time, much effort has been put into improving infrastructure in
poor areas.

Of course we do know that the drop-out rate particularly at secondary and
tertiary levels is unacceptably high, and the educational system has yet to
produce the requisite kinds of skills needed by society.

In addition, trends in performance, both in terms of teaching and learning,
show a worrying persistence of the social divisions of the past.

Ironically, precisely where education is most needed to help break the cycle
of poverty, is where infrastructure, administrative and teacher capacity are
least impressive.  

Government’s social programmes have also improved the asset base of the
poor, in the form of housing – with 2,6-million subsidised houses provided.

We should of course acknowledge that the land redistribution programme as
well as post-settlement support could have been handled faster and better.

Overall, we are proud of the advances in our social programmes. But we
cannot satisfy ourselves merely with quantitative change.

Be it in education, health, housing, water or sanitation, the central
question that confronts us every day is how to improve the quality of these
services! On this we still have some way to go.

Honourable Members;

The scourge of crime remains a major source of insecurity for South
Africans. Daily experience, in poor and affluent neighbourhoods alike, is one
of apprehension at the possibility of violent attack.

Within public and private institutions, the possibility of nefarious schemes
siphoning off resources through corruption is always a source of great
concern

Of course, the overall crime rate, having peaked in 2002, has consistently
declined. All kinds of statistics can be cited to attest to this.

But we do know that the reduction has not been fast enough, not even at the
7-10% rate that we set ourselves for various categories of contact crime. The
fact that incidents of violent robberies in households and businesses have been
on the increase; and crimes against women and children have not abated in any
significant measure, is a matter of great concern.

This points to weaknesses in our neighbourhoods, especially in building the
bonds of community solidarity that would assist us in preventing and combating
crime. It points to systemic weaknesses in the criminal justice system, from
investigation of crimes to rehabilitation of offenders. It points to weaknesses
in the efficiency of the court system, both in terms of technical and other
infrastructure and management.

These are the issues that the comprehensive revamp of the criminal justice
system has started to address.  

Yet, in being brutally self-critical, we should not lose sight of the fact
that what we are assessing is a system that enjoys, by far, better legitimacy
than ever experienced in our country.

This is because of the transformation these institutions have undergone, in
terms of their doctrines based on a human rights culture, their demographic
composition, and their systems of accountability.

But let us not delude ourselves: as with the rest of our social life, such
transformation is still at its nascent stages. We still have a long way to
go.

I am certain that Honourable Members will agree that the humanity of our
democratic dispensation should find expression in the extent to which we pay
attention to the most vulnerable in society.

In this regard, we have through legislation, international conventions,
regulations and campaigns ensured that concrete efforts are made to improve the
conditions of children, women, people with disability and the elderly.

Through advocacy campaigns and indeed as a result of the partnerships we
have built with organisations representing these vulnerable groups, we have
improved awareness around issues that affect them; and progressively encouraged
the mainstreaming of these concerns.

It is a matter of proud record that, for instance, female-headed households
have received a bigger-than-average share of the social wage including housing
and health care; and that among the most successful programmes have been
campaigns on child immunisation and nutrition.

Yet access to employment weighs heavily on rural women, youth and people
with disability. HIV impacts most severely on young women. Violence against
women and children is much too high.

All these are assignments for the coming period.

Madame Speaker and Honourable Chairperson;

These then are some of the advances that democracy has brought; and the
progress that government has made in fulfilling the mandate of the
electorate.

There is no gainsaying that, by any measure, the progress made since 1994
has been impressive. But neither can there be doubt that the challenges remain
immense.

It is apt therefore to remind ourselves of that instructive observation of
hope and resilience, continuity and change, by former President Nelson Mandela,
in his biography, Long Walk to Freedom:

"I have walked that long road to freedom. I have tried not to falter; I
have made missteps along the way. But I have discovered the secret that after
climbing a great hill, one only finds that there are many more hills to climb.
I have taken a moment here to rest, to steal a view of the glorious vista that
surrounds me, to look back on the distance I have come. But I can rest only for
a moment, for with freedom comes responsibilities, and I dare not linger, for
my long walk is not yet ended."

In a few months from now the people of our country will pronounce on the
leadership they prefer to carry forward the noble work of this great freedom
fighter and other founders of our democracy.

While our approaches may differ, the objectives that we need to aim for are
clearly and unambiguously set out in our Constitution: to create a united,
non-racial, non-sexist, democratic and prosperous society that plays a positive
role in building a better world.  

Six years ago, leaders of our people came together in a Growth and
Development Summit and reached agreement on the tasks all of us should
undertake to improve the quality of life of South Africans, particularly to
halve unemployment and poverty by 2014. These include:

creating more jobs, better jobs and decent work for all through higher rates
of investment, public works programmes, sector partnerships and strategies,
local procurement, small enterprise promotion and support for
co-operatives;

addressing the investment challenge by improving savings, appropriately
deploying resources from pension and provident funds, housing, financial sector
contributions and black economic empowerment;

advancing equity, developing skills, creating economic opportunities and
extending services; and

local action and implementation for development, including provision of
infrastructure and access to basic services.

I am certain, that, as part of and in addition to, these objectives South
Africans would hardly differ regarding the need to improve our education
system; to provide efficient, decent and equitable health care; to develop our
rural areas and ensure food security; and to intensify the fight against crime
and corruption.

I cite these issues not because they are all-encompassing nor that by
identifying them we would cure all the ills of our society. Rather, I have
chosen to do so to emphasise the point that South Africa does not suffer the
poverty of visions. Our challenge is to translate these visions into programmes
and projects for effective implementation.

These ideals are shared by virtually all of humanity, as reflected in the
United Nations Millennium Development Goals.

And yet humanity today faces the danger that the attainment of these
objectives could be postponed by many years, if not decades, as a consequence
of the economic crisis that has engulfed the global village.

What, on the surface, started off as a financial crisis among a few lending
institutions has exploded into a global credit crunch, with severe consequences
for actual production and trade.

We can decry the greed, the short-termism and the carelessness of managers
of big corporations which precipitated the crisis. We can condemn the policies
of governments which took their eyes off the ball and allowed the rapacious
licence of unregulated markets to wreak havoc on financial systems. We can do
all this; and we will be perfectly justified.

Yet our central and immediate task is fully to appreciate the consequences
of these developments on our own economy and our region, and devise responses
that will minimise their impact especially on the most vulnerable sectors of
our society.

What we do know is that the regulatory environment in our country and the
counter-cyclical budget policies we adopted have helped us avoid the worst
impact of the crisis.

But we are all too aware that, because we are strongly integrated into the
world economy, demand for our exports has declined; access to finance and
inflows of capital have turned for the worse; lower demand has precipitated a
scaling down of production; the creation of jobs is negatively affected and in
some sectors retrenchment has become a reality.

These difficulties have coincided with a period in which inflation and
interest rates are still too high. Our thanks to the Governor of the Reserve
Bank who yesterday announced a 1% reduction in the rate of interest.

Combined, these developments bode ill for the revenues we need to expand the
provision of services and to implement our infrastructure projects. As such, we
have been forced to tone down our forecasts in terms of growth and
job-creation.

We know too that South Africa is less severely affected than many other
countries. Indeed, in a period in which others are experiencing or projecting
recessions, South Africa and the rest of the continent are still poised for
growth, even if at a slower rate.

In this regard, Honourable Members, I am happy to report that in the
interactions between The Presidency and leaders of various social partners, we
agreed jointly to devise interventions that would minimise the impact of this
crisis on our society. The task team dealing with these matters is still hard
at work; and the following broad categories of responses are under
discussion:

Firstly, government will continue with its public investment projects, the
value of which has increased to R690-billion for the next three years. In this
regard, where necessary, we will find creative ways to raise funds.

This will include support by our development finance institutions and loan
finance from international agencies, as well as partnership with the private
sector and utilisation of resources controlled by workers such as pension
funds.

Secondly, we will intensify public sector employment programmes. On the one
hand, plans to expand employment in sectors such as health, social work,
education and law-enforcement agencies will continue. On the other, we will
speed up the introduction of the next phase of the Expanded Public Works
Programme.

Thirdly, mitigating actions can be undertaken within the private sector to
counteract an excessive investment slowdown and unnecessary closures of
production lines or plants.

On its part, government will adapt industrial financing and incentive
instruments to help deal with challenges in various sectors, and also encourage
development finance institutions to assist firms in distress because of the
crisis.

Alternatives to layoffs will be explored, including longer holidays,
extended training, short time and job-sharing. This will be combined with
promotion of the Proudly South Africa campaign and stronger action on illegal
imports.

Fourthly, government will sustain and expand social expenditure, including
progressively extending access to the child support grant to children of 18
years of age and reducing the age of eligibility for old age pension to 60
years for men.

In addition, we will more widely utilise the Social Distress Relief Grant
and food security measures specifically also to target those either unprotected
by the Unemployment Insurance Fund or who have exhausted their benefits.

We shall also continue to pay special attention to the challenge of
anti-competitive behaviour on the part of some of our corporations. In this
regard, we wish to commend the Competition Commission for the firm hand that
they are showing to ensure that culprits are brought to book.

 We do hope though that civil society will enhance its own level of
activism to ensure, among other things, that as input prices decline, the
benefit is felt by the population.

These immediate measures will be informed by the principle of a
counter-cyclical fiscal policy. However, we will ensure that the levels of
borrowing by government are prudent and sustainable. This also implies a rapid
reduction in government debt levels whenever conditions turn for the
better.

Our efforts will also be informed by the appreciation that measures to
protect the environment and mitigate the impact of climate change can also
contribute to job-creation.

Both in the G20 meetings and other interactions in multilateral
institutions, our government has argued for appropriate and urgent
interventions particularly in the developed countries whence the crisis
originated and where it is most severe. We believe that the time has come to
strengthen domestic regulation and supervision of the financial system; but
beyond this, that stronger surveillance and action on a global scale have
become unavoidable and necessary.

Critically, we should also safeguard the integrity of the world trade
system, complete the current negotiations on the Doha Round of world trade
negotiations, and ensure that development aid is not scaled down.

The abiding lesson from this experience is that we need stronger
partnerships among economic role players on a domestic and global scale, not
only to stem the impact of the crisis; but also to put in place measures that
would obviate a recurrence.

In our own country, we will embark on these undertakings as part of the
process of setting our society on a higher growth and development path. The
length of time towards attaining a higher trajectory may have been stretched
somewhat. But we are not in doubt that that moment will yet come sooner rather
than later.

In this regard, how we position our country to take advantage of unique
opportunities that have come our way, will be of paramount importance. I refer
here in particular to the FIFA World Cup in 2010 as well as the Confederations
Cup a few months from now. Virtually all the projects and plans are completed
or nearing completion – from stadia, transport infrastructure, security
measures, issues of accommodation, to health and immigration plans – confirming
the confidence of the global soccer fraternity that ours will be a truly
successful tournament.

And we believe that, after five consecutive wins, the national soccer team
is now more confidently gearing itself to perform above expectations!

But beyond this, the true legacy of this spectacle will be in our ability to
showcase South African and African hospitality and humanity – to change once
and for all perceptions of our country and our continent among peoples of the
world. That depends on all of us; and to that we can attach no price!

We also wish in this regard to congratulate all our sporting teams which
have asserted South Africa’s pursuit of excellence over the past year. Special
accolades are due to our cricket team which has climbed to the apex of global
rankings.

We are of course Rugby World Champions; Giniel de Villiers and his team have
won the Dakar Rally; our Paralympians continue to do us proud; and our under-20
soccer team did quite well in an extremely competitive environment.

Madame Speaker and Honourable Chairperson;  

Just two weeks ago, South Africa completed with Mali part of the archives to
preserve the ancient manuscripts of Timbuktu.

This rich heritage points to Africa as a beacon of science and literature,
philosophy and commerce, interrupted by the slave trade and the scramble for
Africa’s wealth.

This initiative should spur us on to act in concert with other countries on
our continent and further afield to better the human condition.

Indeed, over the past 15 years we have spared no effort to ensure that
Africa experiences her renewal in what should in actual practice be the African
Century. Steadily but surely, our continent is progressing towards her
renaissance, with the interest of her people rising to the top of their
leaders’ agenda, asserting her hope and her resilience on the world stage.

It is this, and this alone, that has informed our persistence in assisting
the people of Zimbabwe to find a lasting solution to the crisis in that
country. We wish in this regard to congratulate all the parties in Zimbabwe for
concluding negotiations, delivering the ultimate prize that has always been the
wish of the people of that country and the sub-continent as a whole: that is, a
stable and legitimate government geared to address the challenges that the
people face. We are truly heartened that, yesterday, the Zimbabwean Parliament
passed Amendment 19 of the Constitution, laying the basis for the installation
of an inclusive government.  

Special mention in this regard is due to SADC facilitator, former President
Thabo Mbeki and the team that tirelessly and patiently helped to bring the
process to a successful conclusion.

Now the work of reconstruction can start in earnest; and South Africa stands
ready to assist wherever we can. In this respect, there is urgent need to
assist in dealing with the humanitarian crisis in that country. We are
confident that, because it cares, the international community will partner the
people of Zimbabwe as they blaze out along a new trail.

We are also encouraged that, whatever fits and starts may seem to
characterise the progress of the people of the Democratic Republic of Congo on
their march to stability and prosperity, that progress is inexorable.

The partnership built in the recent period between the leadership of the DRC
and Rwanda holds out a promise for advances in matters of security and in
dealing with the humanitarian crisis; but, hopefully, also with regard to
political dialogue. In the same measure, we will continue to work with other
countries and the African Union to pursue these objectives in Burundi, Sudan,
Western Sahara, Côte d’Ivoire, Somalia and elsewhere.

As would have been evidenced by various developments in the past few months,
South Africa will use the privilege of chairing SADC to strengthen this
critical regional institution, with particular emphasis on implementing Summit
resolutions and cementing regional strategic cohesion.

 At the same time we will improve SADC’s interaction with the Common
Market of East and Southern Africa (COMESA) and the East African Community
(EAC). These initiatives will be undertaken in order to extend rather than
weaken the deep set of relations that we enjoy within the Southern African
Customs Union (SACU).

We wish on this occasion to extend our congratulations to the people and the
leadership of Zambia, Ghana and the United States of America for elections the
symbolism of which transcends the narrow boundaries of their nation-states.

We will as always seek to strengthen co-operation with these and other
countries in pursuit of that which is good for humanity.

We are privileged that this year we conclude celebrations of the first
decade of our diplomatic relations with the People’s Republic of China. Over
these years, it has become clearer than ever before that there is much mutual
benefit to be gained from our partnership.

We also wish to affirm our commitment to the close relations that we have
forged with Brazil and India through IBSA; and indeed to the strengthening
bonds that our country has been forging with Russia, and countries in Asia, the
Middle East, as well as Latin and North America.

We have on countless occasions expressed our concern at the persistence of
conflict in the Middle East in general and in Israel and Palestine in
particular.

The depth of our disappointment at the recent escalation of the conflict and
massive loss of life, of especially civilians – including children, women and
the elderly – indeed defies description.

There can be no justification for such acts of wanton destruction and
savagery. And we do hope that this time round, the renewed efforts of the
international community to find a lasting solution to this conflict will bear
fruit, so Israelis and Palestinians can enjoy peace and security as neighbours
within their sovereign territories.  

Our special congratulations to the government and people of Cuba on this the
50th anniversary of the attainment of their sovereignty and, with it, the
freedom to choose their path of development.

We were able in the past year to conclude further negotiations with the
European Union on our strategic partnership; and we do hope that the spirit
which informed that engagement will prevail as we finalise the multilateral
negotiations on the Economic Partnership Agreements with countries in our
region.

We look forward to further strengthening this partnership when we host the
South Africa-EU Summit later this year.

Along with other countries of the South we will continue to pursue the cause
of the restructuring of the United Nations, the International Monetary Fund and
other multilateral institutions so they reflect the changed and changing global
reality and operate in a democratic, equitable and transparent manner.

We also commit ourselves to meet the objectives of international agreements,
including the Kyoto Protocol and its successors for the benefit of future
generations among our own people and peoples of the world.

Madame Speaker and Honourable Chairperson;

Informing these our endeavours are two basic principles: the need for us to
complete the mandate accorded this government in 2004; and the imperative to
ensure that the government that comes in after the elections finds a ready
platform to implement its programmes without undue delays.

In the coming few months pending the national and provincial elections, we
will endeavour to complete that popular mandate. As part of the many detailed
projects contained in the government’s Programme of Action, we will pay
particular attention to:

creating the capacity necessary for improved service delivery and better
integration within and across the spheres of government, including national
strategic planning;

continuing with the War on Poverty campaign and finalising the draft of the
Comprehensive Anti-poverty Strategy through the public consultations now under
way;

implementing the comprehensive programme we have put in place to eliminate
the incidence of cholera in various parts of the country;

continuing research and consultations on the Comprehensive Social Security
System, including the matter of National Health Insurance;

intensifying the campaign to save energy, so as to manage the current
difficulties and change our own behaviour, while at the same time speeding up
the projects to build new capacity and utilise alternative energy sources –
recognising that in addition to the consequences of climate change, resources
such as fossil fuels and water are declining in the same measure as demand is
increasing;

integrating into the work of the relevant Clusters the findings of research
on Second Economy interventions such as the community works programme, support
for small and micro-enterprises and rural development initiatives;

intensifying efforts to revamp the criminal justice system, including better
forensic capacity, rapid increase in the number of detectives, optimal
utilisation of information and communications technology, and better management
of the courts; and

facilitating the processes aimed at strengthening the machineries dealing
with matters of gender equality such as 50/50 representation in decision-making
structures, youth development, the rights of people with disability and
children’s rights – including completing consultations on the National Youth
Policy, preparing for the implementation of the African Youth Charter once it
has been processed by Parliament, and for the setting up of the National Youth
Development Agency; submitting the SADC Protocol on Gender and Development to
Parliament; strengthening advocacy on the rights of people with disability; and
extending the number of municipalities that have set up Children’s Rights Focal
Points beyond the current 60%.

These and other programmes, including the Apex Priorities identified in the
State of the Nation Address last February, form the bedrock of our efforts to
conclude the popular mandate and lay the foundation for the future.

We will intensify our efforts inspired by the enthusiasm, the hope and the
resilience of the South African people in pursuit of that which is good for all
of us. This, and this in the main, is the source of our confidence when we say
that the nation is in a good state. Our democracy is healthy. It is steadily
growing stronger.  

And so, in the words of former President Mandela, “[we] dare not linger,
for [our] long walk is not yet ended”
.

I thank you.

Issued by: The Presidency
6 February 2009

Share this page

Similar categories to explore