Programme director
Your Excellency, President Rupiah Banda
Honourable ministers and deputy ministers
Members of the diplomatic corps
Management of the Nakambala Estate
Distinguished guests
Ladies and gentlemen
Programme director, I thank you for your kind words of welcome. It is an honour for me to be invited to this important occasion, as we commission yet another major project in the economic cooperation between Zambia and South Africa. As most of us know the economic cooperation between our two countries dates many years back and have improved substantially in recent years.
Zambia is now South Africa’s number one trading partner on the continent, surpassing countries which traditionally used to attract huge investments from South Africa. Initially, these investments were largely concentrated in the so-called “old economy” of mining, retail and related industries. But now there is a shift in the pattern because investments in the “new economy” sectors such as financial services, information communication technology (ICT), agribusiness, leisure, etc have become visible.
Your Excellency; your country has been able to attract these investments, thanks to its advantageous regulatory framework and legislative environment. Zambia is a model country for investment and we believe that your regulatory regime has been most attractive to South African companies such as Illovo Sugar Limited.
It is therefore a great honour for me to be able to commission Zambia’s biggest agricultural project, this sugar plantation here at Mazabuka, highlighting the R1,7 billion investment by the South African company, Illovo. We note that when Illovo Sugar Limited acquired Zambia Sugar in 2001, the company was producing about 200 000 tons of sugar at that time. In less than a decade that output has been doubled. This is a great achievement, Zambia is not only a copper producing country but it has also become a sugar producer of note.
There is no doubt that the company’s expansion has had a positive development in the economic development of Zambia through foreign exchange earnings and provision of sustainable and descent employment. We trust that this will grow substantially over the years. Illovo has also built one of the largest sugar factories on the continent. As government, we always encourage our private sector that wherever they invest that they should also improve the lives of ordinary people not only through employment but also through social investments.
Therefore, I believe that with the global sugar prices expected to stay at current highs for some years to come, Illovo will be able to make a significant impact in the countries where it is operating. What is also noteworthy is the fact that Illovo Sugar recently announced that it has quota and tariff free access into the European Union. This is expected to double its exports to Europe over the next four to five years. This breakthrough is but one that shows that if we can have free trade globally as we have always advocated, such as in the Doha Development Round, we can really make important strides as a continent.
Your Excellency, ladies and gentlemen; we have a duty to ensure that the economic relations between our two countries remain vibrant and growing. We believe that the various memoranda of understanding which were signed yesterday and the business interactions during the two day business seminar will help us to achieve this objective.
It is through these economic activities that the socio-economic challenges of poverty and unemployment can be addressed. We know that the current global financial and economic crisis and climate change will impact negatively on our countries. However, we should not allow this to result in the further marginalisation of Africa. As Southern African Development Community (SADC) we are working towards strengthening our regional cooperation and integration by implementing the free trade area (FTA) in the region and the important trilateral SADC, East African Community (EAC), COMMON market for Eastern and Southern Africa (COMESA) cooperation.
We hope that all of us, as Africans, will find common ground on these matters so as to achieve the much needed regional integration and development as a matter of urgency. Working together, we will achieve the African economic rejuvenation we dearly need on the continent. In this regard, we have a duty to ensure that New partnership for Africa Development (NEPAD) succeeds so that the whole of the African continent can, sooner rather than later, begin to enjoy economic prosperity.
Finally, we thank those businesses that contribute enormously towards the economic development of this continent. As governments we just need to create an enabling environment for private sector investments, ensuring that such investments not only contribute to economic development but also create sustainable employment.
We wish Illovo Sugar Limited all the success in their endeavours and hope their operations will continue to expand, and as they expand, the livelihoods of our people also improve.
I thank you for your attention.
Issued by: The Presidency
9 December 2009
Source: The Presidency (http://www.thepresidency.gov.za/)
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