The Honourable Premier Dr Zweli Mkhize and Minister of Finance, Pravin Gordhan, are London, UK, meeting with current and potential investors and to participate in the Times Africa CEO Summit. This is an ideal opportunity for the Premier to interact with a large number of CEOs and UK based investment fund managers and to spread the news that Africa and particularly South Africa and KwaZulu-Natal is blessed with massive opportunities.
Some of the CEO’s include Old Mutual, SAB Miller, Anglo-American, Glencore, Bain Capital, Rio Tinto, Goldman Sachs, Morgan Stanley Bank, etc. Africa is no more the step child of the world, it’s no more the “Hopeless Continent” as described by The Economist in 2000 and its no more a continent ruled by dictators. The “new” Africa is a continent full of hope and aspirations, according to the Premier and the Minister.
The basis for the “new” optimism about Africa is founded on its past impressive economic growth rates, the fact that is leading the global economic recovery and the International Monetary Fund (IMF) growth estimates. The IMF estimates Sub-Saharan Africa’s economies to expand by 5.75% during 2013 with several big African countries to hit growth rates of 10%.
More significantly the World Bank said in a 2011 report that “Africa could be on the brink of an economic take-off, much like China was 30 years ago and India 20 years ago,” though its officials think major poverty reduction will require higher growth than today’s—a long-term average of 7% or more. This really made people interested in Africa and also have put a massive responsibility on Africa not turn its back on the gains it made during the last decade.
The Premier reminded the CEO’s and fund managers that South Africa is a proud member of the African Union sharing in the ideals of the people of Africa. South Africa is intimately part of the basic fibre of Africa and Africa is in the blood of South Africa. The South African dream and the Rainbow Nation are fully entranced in the South African psyche. There can be no doubt that South Africa has come a long way since the birth of democracy.
The Premier also reminded the CEO’s and fund managers that much more work is still needed and that the Government stand fast in our resolve to make South Africa a truly none-racist, none sexist and prosperous country for its entire people. We will not stop, we will not slow down. We will continue on our journey as fought for by former president Nelson Mandela.
The Premier stressed the importance of South Africa’s inclusion and active participation in BRICS grouping, both as a gateway to the continent and as a catalyst for African integration. There is definitely a significant interest from UK businesses in the BRICS grouping. The Premier also stressed the importance of the National Development Plan and the Infrastructure Plan. South Africa’s vision 2030 is based on a shared consensus of all the social partners.
Our path is clearly laid out and most importantly will give policy certainty to investors. The SA Government understands that policy certainty and continuity is of paramount importance and urged investors to familiarise themselves with the NDP. It was also suggested that a forum be established to facilitate investors relations with SA and that a mutual beneficial framework be developed.
The Premier participated in a number of discussions about the the investment potential at the Times Africa CEO summit. The summit was attended by about 300 delegates from both the African continent and the UK. The Premier in his presentation to a select handful of UK business leaders highlighted the fact that KwaZulu-Natal is an important hub of industrial development in sub-Saharan Africa, thanks to its rich natural resources and well-developed infrastructure. Economic activities in the province are mainly concentrated on the port of Durban and Pietermaritzburg, with significant contributions in the Richards Bay, the Ladysmith, the Newcastle regions as well as on the Ugu region.
KwaZulu-Natal in its quest to be the epicentre of Africa’s sustainable economic growth and development has developed a number of strategies to grow the economy. Key among the strategies is the (PGDS) which is an overarching strategy that articulates government 20 year vision and the programmes and projects necessary to achieve this vision.
This strategy was developed by the KwaZulu-Natal Planning Commission and adopted by the Provincial Cabinet. The PGDS has identified a number of catalytic infrastructural development programmes which are aimed at changing the struggle of the economy toward a vibrant economic gateway of South Africa and Sub-Saharan Africa in general.
The PGDS identifies a number of challenges that must be addressed if the province is to become gateway into South Africa and Sub-Saharan Africa. But these challenges are in turn business opportunities for the entrepreneurs and these include amongst others the following:
- Rail underdevelopment;
- Port capacity constraints;
- Lack of social Capital;
- Congestion on the roads especially N3 and its feeder road networks;
Both the national and KwaZulu-Natal governments have already committed to addressing these challenges. Part of the vision of the KwaZulu-Natal Provincial and Growth and Development Strategy states that, ‘by 2030, the province of KwaZulu-Natal should have maximised its position as a GATEWAY to South and Southern Africa’.
This vision that KwaZulu-Natal provincial government aspires to act increasingly as a transmission belt between global and regional markets and production facilities. The PGDS identifies infrastructure development as key to fulfil this vision and some of the infrastructural programmes it proposes include, inter-alia, the Dugout port in Durban, Dry Port Development and dedicated road/rail link, aerotropolis, Durban Gauteng Rail Upgrade and regional airport development. The implementation of these projects will inevitably position the province as a major trade gateway into South Africa and its hinterland.
Enquiries:
Ndabezinhle Sibiya
Spokesperson: Dr Zweli Mkhize - Premier of the Province of KwaZulu-Natal
Cell: 082 3754742
