The Programme Director;
Mr. Rifat Hisarc?kl?o?lu, Chairman of TOBB & DE?K;
Ministers and Deputy Ministers of the Republic of South Africa;
Mr Tebogo Seokolo, South African Ambassador to Turkey;
Government Representatives from both our countries;
Distinguished Guests;
Ladies and Gentlemen:
It is a great honour and privilege for me to address this important gathering which aims to further strengthen our economic co-operation with the Republic of Turkey.
This is a gathering made up of business people and government representatives from Turkey and South Africa. I am indeed encouraged by the enthusiastic response and interest that has been shown by all the participants who have registered as part of this business forum.
The Turkey-SA Business Forum presents an opportunity for business to engage on a wide range of issues, including identification of business opportunities in both our countries.
It is hoped that a forum of this nature will enable further interaction amongst the business community in order to leverage the existing opportunities that both countries have created over the years.
Of importance is the strengthening of our national economic relationship and we are pleased at the progress made thus far in social, economic and political areas of co-operation.
Since our arrival here in the past few days, several of our ministers and officials have met their counterparts, particularly in the areas of Education, Tourism, Mining, Trade and Industry, and Defence.
In almost all these meetings, there was a determination to strengthen the commercial and economic ties between the two countries and to increase interaction between the two peoples of our countries with the belief that improvement of commerce and investment is fundamental for sustainable development and the creation of employment.
For example, in the area of tourism, there are benefits of extending tourism activities and strengthening cooperation in this field, taking into account the role that tourism plays in employment creation and the cementing of ties between countries.
In this context, we are looking at the possibility of increasing the frequency of flights and participation in tourism fairs and exhibitions organised by our two countries.
There certainly lies a great deal of business opportunities for our business people in this field.
Programme Director,
The World Bank Group’s Annual Doing Business Report for 2010 compared global regulation in 183 countries.
From these global economies, South Africa ranked 34th for ease of doing business.
In terms of overall competitiveness, South Africa was ranked 45th ahead of countries such as Poland, India and Mexico.
South Africa was also ranked the 18th most attractive Foreign Direct Investment destination world-wide, according to the 2007 Foreign Direct Investment Confidence Index compiled by the global management consulting firm, AT Kearney.
South Africa, like many other countries, is now officially out of recession. According to our statistics agency reports for December 2009, manufacturing output was 3.2% higher than in the corresponding month in 2008 – representing the first annualised rise in 14 months.
Although there remains some uncertainty about the depth and rate of the recovery, forecasts suggest GDP growth of 2,5% this year and 3,7% next year rising to 4,5% in 2012.
Our Government will continue to play its part in supporting the economic recovery and facilitating economic growth.
The bedrock of government intervention is its commitment to a R787 billion infrastructure investment programme beyond the 2010 World Cup and over a three-year period.
In addition, we made R6,1 billion support available to manufacturing companies which faced difficulties as a result of the global recession, thereby saving jobs and industrial capacity and placing ourselves in a better position to maximise the benefits of the economic upswing.
The potential of the South African economy is evident in its diversity of sectors and industries.
It offers world class clusters in environmental technologies, ICT, transport equipment, capital equipments, creative industries and financial services.
Our Government has achieved significant successes in ensuring macro-economic stability, via the implementation of policies directed at promoting domestic competitiveness, growth and employment.
Our Department of Trade and Industry recently unveiled the second phase of a 3-year Industrial Policy Action Plan.
This Action Plan represents a significant step forward in strengthening our efforts to promote long term industrialisation and industrial diversification beyond our traditional strengths in commodities and non-tradable services.
Over the next three years, our Industrial Policy Action Plan will focus on key sectors clustered in 3 groups, namely:
The qualitatively new areas of focus, which include:
* Metal fabrication, capital and transport equipment sectors, particularly arising from large public investments;
* Green and energy-saving industries;
* Agro-processing linked to food security and food pricing imperatives.
The second cluster involves: broadening interventions in existing sectors, such as:
* Automotives, components, medium and heavy commercial vehicles;
* Plastics, pharmaceuticals and chemicals;
* Clothing, textiles, footwear and leather;
* Biofuels;
* Forestry, paper, pulp, and furniture;
* Cultural industries and tourism;
* Business process servicing.
The third cluster involves sectors with potential for long-term advanced capabilities, such as:
* Nuclear; and Aerospace.
All the above areas offer Turkish business immense opportunities for gainful investment in our country.
Programme Director,
Existing levels of trade between our countries are relatively low and concentrated in a few sectors, most notably gold, petroleum, skins and hides.
There is consensus that the current trade between our two countries, valued at 2 billion USD, does not reflect our true potential.
Whilst our trade has been focused on the exchange of valuable commodities and raw materials, true benefits lie in the expansion of value added trade.
The inclusion of products such as vehicles, automotive components in the basket of traded goods is a positive sign of things to come.
Beyond trade, there is significant scope for investment, joint ventures and tie-ups in the areas that I have referred to above.
Ladies and Gentlemen,
In conclusion, as an open economy we welcome new investment and collaborative partnerships in key areas of opportunity – all uniquely poised to deliver good returns on investment.
We look forward to welcoming new Turkish investors in our country and working with companies which already invest in and trade with South Africa to ensure that their investment is worthwhile.
Similarly, we encourage South African enterprises and investors to take advantage of the trade and investment opportunities that the Turkish economy has to offer.
I wish you a successful business forum and look forward to welcoming you and your families and friends as you join us in celebrating the first ever World Cup on the African Continent.
Thank you.
Issued by: The Presidency
26 May 2010
Source: The Presidency (www.thepresidency.gov.za)
