Mlambo-Ngcuka, on the occasion of Czech Republic � South Africa State Visit,
Business Forum Meeting - Sheraton Hotel, Tshwane
12 December 2006
President of the Czech Republic, Mr Vaclav Klaus,
Czech Deputy Minister of Industry and Trade, Mr Martin Tlapa,
The Czech CEO of the Czech Economic Chamber, Mr Jaromir Drabek,
Deputy Minister, Dr. Rob Davies,
President of the Chambers of Commerce and Industry of South Africa (CHAMSA), Mr
Patrice Motsepe,
Ambassadors,
Members of the business delegations,
Distinguished guests,
Ladies and gentlemen,
It is an honour and privilege for me to welcome the President of the Czech
Republic, his Cabinet members and the entire business delegation to our warm
and sunny shores.
I am truly delighted that you and your delegation have accepted our
invitation to pay an official visit to a democratic and free South Africa. I am
pleased to convey the warmest greetings of the government and people of South
Africa to President Klaus, the government and the wonderful people of the Czech
Republic.
This is an historic visit in a sense that both our countries are recognised
worldwide as part of the emerging markets, with much to learn from each other.
The Czech Republic and South Africa are emerging markets with significant poles
of demand in their respective regions. Our relationship, albeit at the genesis
stage, has considerable potential for the acquitting and nurturing of both
political and economic dimensions.
Transformation in both countries
The Czech Republic like us is in the throes of a transformation process, it
was before the transition to a market economy characterised by one of the
smallest private sectors producing a negligible fraction with quantity
preferred over quality, over-centralisation of the economic structures with
heavy industry the focal economic sector.
It has now transformed into a buoyant economy that prides itself on improved
industrial productivity focused on high input manufacturing; increased consumer
purchasing power; continued strong real growth and sound economic
fundamentals.
South Africa's transformation since democratic transition in 1994, like the
Czech's, is nothing short of a remarkable miracle. We have managed to implement
solid macro-economic reform and transition to a status of an emerging market
with one of the lowest risk profiles; a very developed financial sector;
central bank with strong credibility; real household consumption expenditure
growth and world class corporations.
The Czech Republic has managed to implement incentives that are at the core
of strongly rising inflows of the Foreign Direct Investment (FDI) beginning in
1999, both in acquisitions and greenfields projects. The surge in FDI has
contributed to the acceleration in the pace of export diversification.
South Africa on the other hand is at a stage of reviewing its incentive
offering in the light of global markets developments to ensure that a more
value-laden offering is available to potential investors.
This, coupled with our recently adopted export strategy provides the policy
framework that is adequate to reverse trend deterioration in manufacturing
performance and an expansion of non-minerals tradables, which will enable us to
take advantage of available growth opportunities in the global arena.
Stable and growing trade relations
Trade between South Africa and the Czech Republic accounts for nearly 40% of
Czech's total trade with Africa; which shows steady and healthy growth in trade
volumes between SA and the Czech Republic over a six year period since
1999.
We believe with the number of trade, economic agreements and Memorandum of
Agreements that have been signed today, between our respective governments as
well as by the industry our relations will go from strength to strength. The
interactions between our respective business communities here today, cemented
by the cooperation agreement to be signed at this event between the two
Chambers of Commerce and Industry are extremely encouraging and have been long
overdue.
Both economies have industries that are globally competitive and sections of
our populations that enjoy the fruits of economic growth. For South Africa
there remains the challenge of large sections of the population that remains
outside of the circle of benefits.
To this accord, we in South Africa are presently engaged in a process to
more equitably spread the benefits of growth to a broader segment of the
economy. We continue to institute innovative and expansive social transfer
programmes to address long-standing disparities within the context of cautious
fiscal and monetary policies which have kept inflation and public debt at low
levels.
New Initiatives from South Africa include AsgiSA
The Accelerated and Shared Growth Initiative for South Africa (AsgiSA) and
the Expanded Public Works Programme (EPWP) for infrastructure presents a
significant opportunity for Czech Republic companies and service providers to
partner with South Africans in areas such as civil engineering and consulting,
manufacturing in a range of sectors, and research and development. South
Africa's main 'network industries' � transport, communications, water and
energy supply - confront a series of complex strategic challenges with long
term consequences for growth and development.
As entrepreneurs there is much to learn from each other as both our
economies continue to grow in global trading environment that shows little sign
of delivering on the promise of development.
The challenge posed to you today as business executives is to foster
partnerships with each other and with government to eradicate poverty, increase
employment and more equitably spread the gains of economic growth. Together we
can create the environment for enhanced job creation, transfer of technology
and skills development. We must be able to leverage the full potential of our
human capital.
Please rise and join me in a toast to the good health and prosperity of
President Vaclav Klaus, and to the continued excellent relations and good
friendship between the wonderful peoples of the Czech Republic and the Republic
of South Africa.
To good friendship!
I thank you.
Issued by: The Presidency
12 December 2006
Source: The Presidency (http://www.thepresidency.gov.za)
