Republic of South Africa at the investment seminar, Seoul, South Korea
3 May 2007
Salutations
South Korean Vice-Minister Honourable Cho,
Honourable South African Cabinet Ministers,
His Excellency Ambassador, Mr Matjila,
His Excellency Ambassador, Mr Schoeman,
Distinguished guests,
Ladies and gentlemen,
Introduction
It is indeed a great pleasure for me to address this high-powered gathering
of leading business persons from both Republic of Korea and Republic of South
Africa. I bring you fraternal greetings from the government and people of South
Africa.
History of South Africa - South Korea relationship
South Africa and South Korea have established a good relationship over the
past years. This relationship extends to the social and economic realms. Still,
both countries realise there is still a long way to go hence the reason we are
all here today as a South African delegation. The figures highlighted by Dr
Davis highlight that.
Politically, the relationship dates back to the South African participation
in the Korean War (1950-53), when South Africa sent an Air Force squadron, the
'Flying Cheetahs,' as part of a United Nations contingent to the Korean
peninsula. We established diplomatic relations on the 1st of December 1992 and
these relations were followed by a number of high level visits from both
countries. During Apartheid Korean people were in solidarity with South Africa
and supported our struggle. My first visit to Korea to the Young Women
Christian's Association (YWCA) also affirmed solidarity of Korean Women with
oppressed South African Women. I have fond memories of that trip.
Now it is a time for us to deepen the economic co-operation for the benefit
of both countries. South Africa is at a phase where it can offer viable
investment opportunities and South Korea has the resources needed to exploit
these opportunities.
South Africa's Role in the New Partnership for Africa's Development
(NEPAD)
Ladies and gentlemen, we can no longer talk of investment in South Africa
without considering the integral nature of our relationship with other
countries in Africa. The African continent has opened up new markets for our
business community to expand and grow their exports. This has been achieved by,
amongst others, concluding bilateral and multilateral trade agreements,
supporting trade missions and creating scope for our businesses in world
markets through the negotiations in the World Trade Organisation (WTO).
Our economic and political relations on the African continent have shown
dramatic improvements and created many new business opportunities. Trading with
and investing in other countries in Africa represents one of the most dynamic
areas of growth for South African businesses.
South Africa is one of the largest economies in Africa and with a strong
link between South Africa and the rest of the African continent, which must
benefit all of us. We are very confident about the positive changes that have
taken place in Africa where the number of conflicts have dramatically reduced,
there is a broad commitment to democracy and good governance, and governments
are increasingly finding ways to stimulate economic growth.
Trade more than aid, but not without aid
South Africa has been part of initiatives to stimulate regional economic
development and we are already starting to see the positive outcomes of these
initiatives with faster economic growth taking place on the African continent
for the first time in many years. But we have a long way to go. We want to take
lessons from Korea's amazing intense growth especially in the last quarter of
the 20th century with the Gross Domestic Product that was higher than many sub
Saharan "countries" put together. We have an interest in the Information and
Communication Technology sector; Human Resource Development; Technology
transfer; ownership; production; manufacturing and attracting Korea tourists to
our beautiful country for an unforgettable experience.
Accelerated and Shared Growth Initiative for South Africa (AsgiSA)/Joint
Initiative for Priority Skills Acquisition (JIPSA) initiatives
The key to turning around some but, not all the challenges we face in South
Africa lies for the most part in programmes we have set in place through AsgiSA
and JIPSA. Some of these programmes are to eradicate poverty, enable
sustainable economic growth and development. Key elements of AsgiSA include
reducing currency volatility, selecting projects to ensure spending efficiency
by government, and removing obstacles to investment.
To this end AsgiSA's priorities are to establish conditions for shared
growth based on sound fiscal foundation. Ladies and gentlemen, in this regard,
co-operation between the Republics of South Africa and South Koreais central to
economic development. Furthermore, let me add that economic development will be
anchored on maximum use of resources of both countries.
For us in South Africa as producers of raw materials, our country needs more
value addition of minerals in South Africa.
In South Africa we aspire to reduce inequalities and create entry into the
labour market for millions of our youth soonest.
As regards the private sector, we believe investing in the economy of South
Africa is a key contribution that business can make towards our vision of
employment creation and poverty reduction. We are glad some of our companies
are here present today to also see how you did it. This means investing in a
way not only to assist in turning around the marginal share of investment flows
that South Africa currently attracts, but that would also ensure that
investment is broad-based and long-term impact in countries - such as ours
where so many still feel left out of positive economic trends. We need
investors who can adopt a wholesale approach and implement Black Economic
Empowerment (BEE).
This will contribute to the development of a market, an industrial base as
well value-added manufacturing sector. We have a very robust R400 billion and
infrastructure programme, 2010 demands all need capital goods. We have the
textile agreement with China, which is "meant to limit the importation of
Chinese textile and clothing materials into South Africa to enable our own
producers in this sector to thrive." We want to attract the textile
manufacturers to invest in South Africa.
South Africa - Gateway to Africa
We have a strong business delegation from South Africa looking for
partnerships with South Korean business people. While government also supports,
especially, those who can be participants in the building of infrastructure
projects as contractors and 'on time' suppliers who can locate in South Africa
in energy; telecommunications; transport; rolling out of Information and
Communication Technologies (ICTs) in communities; Business Application and
Small, Micro and Medium Enterprises (SMMEs).
Ladies and gentlemen, I urge all of you to seize these opportunities and
make South Africa your preferred investment destination. The government of
South Africa avails all its resources to assist you in setting up your
businesses in South Africa.
Trade relationship between our two countries has been a typically
North-South one with South Africa exporting the bulk of raw materials and
semi-processed minerals and metals to South Korea while importing value added
or manufactured products. Beneficiation is an avenue we are placing focus on in
our strategies. This is one of the areas that we believe South Korea will be
able to assist us; of course with high benefits in terms of high returns on
investment. Opportunities in forestry, minerals and chemicals should be of
interest. We seek also to partner in the most urgent projects without which we
are doomed that's skills, skills and skills.
The request was made by our ex President Mandela on skills. We are thankful
for the co-operation that has taken place to date through our departments of
labour in which South Africa has co-operated with your Department of Labour,
Indlela in South Africa. The training is so good most people leave us after
that but at least that is not a tragedy as they stay in South Africa and we are
keen to do more. We are keen to work with you on the artisans, engineers and
ICT. We have more than thirty thousand (30 000) available vacancies in ICT. We
want all our schools to be ICT driven. I want to thank Samsung for its offer
and we would like more companies to do likewise!
Tourism
I am told that in the past year, over 17 million Koreans have travelled
abroad on holiday; however, a very minute percentage visited South Africa.
Although most of those who have visited South Africa have indicated their
satisfaction and happiness to visit again, the numbers are still worryingly
small. We wish to entice a greater number of Korean nationals to visit our
shores. In the near future, the South China Airlines will be flying directly to
Johannesburg via Seoul and we hope this will start addressing the problem of
transportation between our country and yours.
As part of our JIPSA programme we have identified language and tourism as
critical factors that continue to grow our economy fast. As a result, during
this visit, we will be accrediting some of your travel operators here in Korea
to bring visitors to our country. We will also be encouraging greater numbers
of our people to learn Korean and to understand the Korean traveller to ease
the pain of travelling in South Africa. We value your custom and we would like
to invite you to come to visit our beautiful land.
Conclusion
We are looking for partnerships of mutual shared growth as we move towards
greater levels of economic development in our country.
My message to you today is that South Africa is ready for rapid development.
We would be more than pleased if South Korea partners with us in this
development.
I thank you
Issued by: The Presidency
3 May 2007
Source: SAPA
