Programme Director
Government and business leaders present here
Distinguished guests
Ladies and gentlemen
Members of the media
I greet you all. I am very honoured to be a participant in this High Level Panel.
As you are aware, President Jacob Zuma recently attended the first meeting to the third BRICS (Brazil, Russia, India, China and South Africa) Summit held in Hainan Province, China, in April 2011, since South Africa joined the prestigious club of developing nations.
South Africa joined the important bloc of emerging economies in December 2010, which is in line with the country’s foreign policy to strengthen South-South cooperation and advancing the agenda of the South. While South Africa does not represent Africa in this grouping, its inclusion underlines the importance that it is held by emerging economies.
The changing global environment has seen a greater political and economic role for the BRICS and other emerging powers. By 2020, the BRICS countries are expected to contribute nearly half of all global Gross Domestic Product (GDP) growth. BRICS is a powerful bloc of emerging economies which recorded a combined GDP of R18 trillion in December 2010.
According to the International Monetary Fund (IMF) BRICS will account for 61 percent of global growth in three years time. The 2010-2011 Global Competitiveness Report of the World Economic Forum (WEF) ranks South Africa favourably in relation to the other BRICS countries.
The 2010 United Nations (UN) Conference on Trade and Development World Investment Report puts South Africa in the top 20 of priority economies for Foreign Direct Investment (FDI) in the world. The structure of BRICS trade (i.e. value-added exports supporting the National Industrial Policy Framework and the Industrial Policy Action Plan) is more important than nominal volumes of trade.
South Africa and other BRICS member states will continue existing collaborations in various international organisations and formations such as the United Nations, the Group of 20 (G20) and the IBSA (India, Brazil and South Africa) Dialogue Forum. South Africa also views the Non-Aligned Movement (NAM) and the Group of 77 (G77) as important for South-South interaction, especially within the framework of the UN.
As a country, we will ensure that the rest of the African Continent is advantaged by its BRICS membership and continues to benefit from the BRICS countries in the priority areas identified by the African Union (AU) such as energy, Information Communication Technology (ICT), Rail and Road infrastructure, agriculture and food security.
Distinguished guests,
The African continent’s potential is massive, making it an essential market. BRICS’ share of Africa’s total trade is expected to increase from one-fifth in 2010 to one-third in five years. BRICS’s FDI is expected to soar to more than USD150 billion by 2015. The overall picture of BRICS-Africa trade is extremely promising. BRICS’s demand for African resources will remain a critical component of commercial ties. At the same time, the meaningful expansion of Africa’s consumer markets will provide attractive avenues for imports from BRICS.
As South Africa we firmly believe that Africa will benefit from the concrete projects of BRICS in areas such as agriculture, science, statistics, development finance institutions, security and justice. BRICS agriculture ministers have agreed to cooperate in agricultural technology development and exchange.
Programme Director,
South Africa like the rest of the world is emerging from a devastating economic recession which saw a sizeable number of jobs being shed. Like most developing countries, we were hit by a sharp contraction in trade and investment. But both of these phenomena were relatively short lived. Trade and foreign investment turned upwards from April 2009, yet the South African economy remained sluggish.
Despite all these challenges, there was no banking crisis in South Africa. Financial markets were well regulated and financial institutions were not greatly exposed which is self-evident that the policy environment that government created was sound and prudent. Government had fiscal space and did provide a strong stimulus, spending on infrastructure that had been planned before the crisis struck.
Despite this gloomy outlook, the South African Reserve Bank has revised its growth forecasts slightly upwards, with Growth Domestic Product (GDP) growth now forecast at 3,7% (previously 3,4%) in 2011 and 3,9% (previously 3,6%) in 2012. The above projected economic growth will not be enough to bring about much needed jobs for the majority of unemployed South Africans. Growing the small and medium business enterprises is therefore central if we are to make a dent in reducing unemployment. We all have a critical role to play in creating business opportunities and therefore jobs.
South Africa remains committed to the consolidation of the African Agenda and will use its BRICS membership to increase strategic cooperation among emerging market economies of the South in support of this agenda. We are dedicated to African unity and integration within the framework of the Constitutive Act of the AU. This includes the strengthening of continental institutions which are critical in responding to the challenges of poverty, underdevelopment, peace, security and stability on the continent.
As a country, we share the view that the world is undergoing far-reaching, complex and profound changes, marked by the re-strengthening of multi-polarity, economic cooperation and increasing interdependence. While facing the evolving global environment and a multitude of global threats and challenges, the international community should join hands to strengthen cooperation for common development, peace and prosperity for the world’s population.
Based on universally recogniSed norms of international law and in a spirit of mutual respect and collective decision making, global economic governance should be strengthened, democracy in international relations should be promoted, and the voice of emerging and developing countries in international affairs should be enhanced.
We underscore our firm commitment to strengthen dialogue and cooperation in the fields of social protection, decent jobs, gender equality, youth development and public health, including the fight against all diseases such TB, HIV and AIDS.
We support infrastructure development in Africa and its industrialisation within framework of the New Partnership for Africa's Development (NEPAD).
Once again, Africa is open for business. Let us claim the 21st Century as Africa’s Century for growth and development.
I thank you.
