The programme director
Honourable Minister, Zafer Caglayan
Distinguished guests
Ladies and gentlemen
It gives me great pleasure to be here this morning at this momentous occasion of the South Africa and Turkish Business Forum. This is a business gathering filled with astounding business people and government representatives from Turkey as well as from South Africa. I am indeed overwhelmed by the enthusiastic response and interest that has been shown by all the participants who have registered as part of this business forum with Turkey.
Ladies and gentlemen allow me to provide you with a brief background in terms of where we are coming from as a country, economically and socially, as well as the interventions that the South African government introduced as part of the process of economic development, including the confidence and commitment that the global community has shown to South Africa, through investments.
We have put in place long term policies since 1994, with a sound macro economic policy and prudent fiscal policy. The South African economy, since the advent of democracy in 1994 has been impressive, rising from three percent growth in the first decade of freedom to around five percent in 2007.
We have recently held our fourth democratic elections with a smooth political transition. Under the leadership of President Jacob Zuma, the government has prioritised; decent work, education and skills development, poverty alleviation and rural development, healthcare, criminal justice system, and improving on the cost of doing business in South Africa.
South Africa recognises the fact that in order to strengthen the South African brand globally, it is imperative to invest all our efforts as a country in making sure that the environment remains conducive for investments and potential investors.
The World Bank group’s annual doing business report for 2009 compared global regulation in 181 countries. From these global economies, South Africa ranked 32nd for ease of doing business, a three point increase from its 35th position in the 2008 report of the same. In May 2009 we hosted the World Economic Forum in Cape Town and launched the African competitiveness report. In terms of overall competitiveness, South Africa was ranked 45th ahead of countries such as Poland, India and Mexico. South Africa was also ranked 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.
Ladies and gentlemen, we meet during a difficult period economically. The impact of the global financial crisis and economic downturn is being felt in every economy worldwide. We view the economic meltdown as providing both challenges and opportunities for South Africa.
We are looking at training layoffs, finding alternatives to retrenchments and providing financing facilities to industries in distress. We are also rolling out an infrastructure investment program of R787 billion. In less than a year, South Africa will host the 2010 FIFA World Cup, one of our major infrastructure projects that is projected to create over 400 000 jobs.
South Africa in Africa
As for our trade with Africa we know that more than ever before, the nations of the developed and developing world are considering how best to working in concert as Africa’s partners. Africa is finding new partners among the emerging economic powerhouses of the South having established trade and investment cooperation framework arrangements with India and Latin America. South Africa’s relationship with Turkey is thus an important one. The Turkey, Africa Summit and Business Forum in Istanbul last year emphasised the importance of collaboration and partnering between Turkey and Africa and South Africa certainly welcomes and embraces this form of cooperation.
Africa has a tremendous future and offers tremendous opportunities for investors. South Africa’s destiny, is indeed intertwined with the continent and this is why South Africa is now among the biggest investors in the continent South of the Sahara, in sectors such as mining, electrical power, financial services and telecommunications with amounts invested amounting to an annual average of $1,4 billion since 1991.
South Africa’s total trade with the continent has grown almost seven fold since 1994. Although the trade balance favours South Africa, there has been an increase of imports from Africa during the same period which is an encouraging development for intra-regional trade. We are also working to establish South Africa as a regional financial centre that will make it easier and less expensive for our African partners to raise capital for growth by opening our markets to African and global financiers.
In conclusion ladies and gentlemen, as an open economy we welcome new investment and collaborative partnerships in key areas of opportunity, all uniquely poised to deliver real competitive advantage. I would like to extend a warm invitation to you to become part of a country “Alive with Possibilities!”
We look forward to welcoming you ladies and gentlemen into our country and working with you to ensure a productive and profitable experience for the companies who invest and trade in South Africa.
I wish you a successful business forum and encourage you to return with your families and friends next year to join us in celebrating the first ever world cup on the African Continent.
Thank you.
Issued by: Economic Development Department
2 November 2009
