His Excellency Ambassador Mr. Muyemba S. Chikonde, Zambia,
EU Delegation in South Africa,
Head of Political, Economic & Trade section, Mr Axel Pougin de La Maisonneuve-EU Delegation in South Africa,
Head of Economic Affairs for the Embassy of the Kingdom of the Netherlands, - Ms Sandra Pellegrom,
Distinguished guests.
It gives me great pleasure to address this gathering. Let me congratulate Southern African-Netherlands Chamber of Commerce (SANEC) for your foresight and bravery in seeing the southern African region as a region of the future! We in Gauteng are guided by a belief that “a rising tide lifts all boats”, which means that a growing and well performing economy spells good news for all of us - as entrepreneurs, governments and above all the people of this region.
Your efforts in linking and connecting Dutch businesses and entrepreneurs with their counterparts in this country are well recognised. I am pleased that you have chosen business connectivity and forging connections between the Netherlands and the Southern African region as thematic areas for the 2013/14 SANEC Business Directory. This theme is befitting given the economic trends prevailing at this moment.
African countries occupy a special place in the global economy with some of the fastest booming economies located in this continent. The Economist, which in the beginning of the millennium dismissed Africa as a “hopeless continent” now, predicts that seven of the top ten fastest growing economies between 2011 and 2015 will be African countries.
Today the world speaks of the real possibility of an African Miracle. This is a serious departure from the times when the world lamented and decried the so-called Africa’s Growth Tragedy and missed opportunities in the 1990s and early 2000s. It is indeed comforting to note that today international investors hardly need any convincing about the economic prospects of the African continent.
The African continent currently offers some of the highest returns on investments in the world. This change in fortune is a welcome departure from the pessimism with which Africa was dismissed as a continent of hopeless, poverty, protracted conflict, war and disease.
Ladies and gentlemen, your focus on the African continent and more specifically the southern African region is by no means misplaced.
Foreign direct investment into Southern Africa continues to grow in leaps and bounds, even in the context of a global recession. We are humbled that this rapid growth of the southern African region has not gone unnoticed by perceptive entrepreneurs and firms such as those falling within the SANEC orbit.
SANEC’s focus on Southern Africa also reflects the fact that you recognize the region’s boundless possibilities. The sub-region is indeed an ideal destination for entrepreneurs and companies in search of profitable investment opportunities.
An example of Southern Africa’s boundless possibilities is the forthcoming tripartite Free Trade Agreement between Southern African Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA) and East Africa Community is yet another sign of great things to come from this region. This arrangement will provide investors with a solid market of 26 countries with a population of 600 million people and a combined gross domestic product (GDP) of 1 trillion US Dollars.
With a firm belief that regional integration and a growing market would enhance the interest of foreign investors in Africa and while strengthening intra-African trade, Southern Africa’s potential should whet the appetite of all perceptive investors. The region is also making strides in implementing the Free Trade Agreement (FTA), which has liberalised 90% of substantial tariffs on trade in goods.
These actions, including the adoption of the SADC Regional Infrastructure Development Master Plan last year, bear testimony to the unflinching commitment of our regional leadership to an economy defined by prosperity and inclusivity.
The infrastructure plan is a bold step and a recognition that increasing regional trade and investments rests heavily on our ability to boost connectivity infrastructure in the region, especially in the areas of transport, energy, communication and water. It is for all these reasons that we believe that SANEC’s focus on Southern Africa is well placed and in perfect timing.
Ladies and gentlemen, I would have failed in my duties as the MEC responsible for leading economic development in this province, if I did not mention the vast opportunities offered by Gauteng province to entrepreneurs and investors. There could be no wiser move than to anchor SANEC’s vision to expand the reach of Dutch companies into Southern Africa using Gauteng as a launching pad.
Gauteng is an important part of the South African economy and makes an immense contribution to the economy of the African continent. Although geographically small in size, our province is indisputably the industrial and economic hub of South Africa.
The province was also one of the biggest economic contributors to the economy of the continent last year, having contributed 7.7% to Africa's GDP in the previous year. Gauteng province also has a privileged position as southern Africa’s leader in exports and imports.
The province generated 35.6% or an estimated R675 billion of South Africa’s GDP last year, consolidating its position as the single largest contributor to the economy of the country.
We also accounted for 68% of all exports from the country and 61.4% of total imports. This suggests that Gauteng is able to generate more money from abroad than any other province. It also means that the province is an indispensable entry-point for entrepreneurs who seek to access regional market.
The province offers world-class business infrastructure and a fertile ground for trade and investment. We have a sophisticated financial system, a highly developed road infrastructure and transport system that links the province to major sea hubs in coastal areas of the country and neighbouring countries.
Gauteng is the epicentre of South Africa’s modern economy and compares equally with the very best in the world. The location of City Deep which is the worlds’ second busiest container terminal; as well as the OR Tambo International Airport within Gauteng’s geographic borders are but a few of our treasurers that make us a winning province.
It is based on this reality that we speak with no fear of contradiction when we say that Gauteng - the business capital of South Africa – is rivalled by none in its earned status and position as the principal gateway to the Southern African region.
Ladies and gentlemen, it is often said that fortune favours the bold. It truly takes the foresight and boldness of a perceptive investor to realise that Southern Africa is indeed a region of the future!
We look forward to working with you as we make strides to build economies that are not simply designed for exporting raw materials but trailblazers with the capacity to innovate and set new economic trends and standards.
As I conclude, let me thank you once again for producing this edition of the Business Directory, which remains a priceless source of information about the investment climate, business trends, political and policy developments, risks and opportunities to prospective investors in our part of the world and country.
