Ladies and gentlemen, this ceremony is an absolutely delightful event and a major triumph in our quest to create a better life for all.
With an economy of the size and magnitude of Gauteng, it only makes sense that such an initiative takes place in this province, which is South Africa’s biggest economy and biggest employer. The economic importance Gauteng is reflected in the fact that the we 34.5% of South Africa’s Gross Domestic Product and are responsible for more than half of our country’s total trade.
The Gauteng economy is important within the national economy, particularly as alocation where the country’s manufacturing and service industries are located. It is also a base for very advanced financial institutions and boasts a trade sector that is unparalleled in Africa.
However, as stated by the Gauteng Employment Growth and Development Strategy, the provincial economy requires a large structural change. Our unemployment rate has been above 20% for some time now. There is a high level of income inequality of above 0.65 Gini-coefficient as per the 2010 statistics.
The economy hosts sectors where the labour absorption is low, these include mining and finance. Furthermore, South Africa’s and therefore Gauteng’s economy, faces fierce challenges from cheap and at times substandard imports of goods from other markets.
A recent report by the University of East Anglia also showed that South African exports to Africa could have been 10% higher than they are. It is in this regard that we welcome the partnership between United Nations Development Programme and Gauteng Enterprise Propeller and believe that it will assist the transformation of our economy.
This will be done by the setting up of a permanent unit that is made up of a team of specialists in the Supplier Development Programme, with the objective to focus on priority economic sectors of the province.
The United Nations Development Programme (UNDP) South Africa will utilise the invaluable ten-year experience gathered by the UNDP Mexico’s Supplier Development Programme (SDP), to build this team. The experience from the Mexico, Honduras and El Salvador Offices will be of great assistance in tailor -making a programme that addresses the specific local dynamics of this province.
This programme also spells good news for small and medium enterprises in Gauteng. Such business will be taught important lessons in sustaining and expanding their participation in local and foreign markets to create jobs and reduce inequality and alleviate poverty.
This objective will be pursued through an in-depth, demand-oriented intervention of 9 - 10 months geared at transforming SMMEs and cooperatives boosting their sales, employment levels and inculcating lasting effects in company management.
The UNDP partnership also brings with it a network of business associations through its Private Sector Development Forum. This is a trilateral partnership between UNDP, Business Unity South Africa (BUSA) and the Black Business Council (BBC), which was established in 2012.
This Forum aims to build capacity in local government economic development units, conduct national policy dialogues on the role of companies in building inclusive markets for economic growth and human development, develop a learning platform for business associations to share experiences on inclusive business models, facilitate development and partnerships in strategic target sectors with potential for job creation and poverty reduction; and to facilitate research to viable and inclusive investment opportunities.
As Gauteng Department of Economic Development, which will be represented by the Gauteng Enterprise Propeller in this forum, we are thrilled to form part of such a promising initiative. We are also grateful to the UNDP as an international agency that continues to break new ground and in constructing the foundations for sustainable human and societal development as well as helping us in our quest to build a better life for all.
Thank you!
