Speech by the Premier of Limpopo Province, Honourable Chupu Stanley Mathabatha, on the occassion of first Forum on Small Business of the SCO and Brics Regions, Ufa City, Bashokortostan Region, Russia
Programme Director
The Ambassador of South Africa in Russia
Rustem Khamitov, Head of the Bashkortostan Republic
Dmitri Sharonov, Deputy Prime-Minister of the Government of the Bashkortostan Republic
Igor Shuvalov, First Deputy Chairman of the Government of the Russian Federation
Viktor Evtukhov, State Secretary – Deputy Minister of Industry and Trade of the Russian Federation
Andrei Ivanov, Deputy Minister of Finance of the Russian Federation
Aleksand Braverman, from the Federal Corporation for the Development of Small and Medium-Sized Business
Andrei Nikitin, the General Manager of the Agency for Strategic Initiatives to Promote New Projects
Boris Dubrovsky, the Governor of Chelyabinsk Region
Sergei Kanavsky, the Executive Secretary of the SCO Business Council
Panero Massimiliano, the political consultant for the parties at the European Parliament and at the Italian National Parliament
MEC for Economic Development in Limpopo province, Environment and Tourism, Mr Seaparo Sekwati
MEC for Agriculture and Rural Development in Limpopo province, Mrs. Joy Matshoge
MEC for Education in Free State province, Mr. Tate Makgoe Ladies and Gentlemen
On behalf of the people of Limpopo province in the Republic of South Africa, and on my own behalf, I would like to take this opportunity to greet you all.
I am indeed humbled and feel greatly honoured to be afforded an opportunity to address such an important international occasion in a country other than South Africa.
I would like to particularly thank the head of Bashkortostan Republic in the Russian Federation, Mr Rustem Khamitov, for inviting me to this important forum of SCO and BRICS member states.
Last night in Moscow, addressing the members of the business community, I told them that I can safely declare Russia as my second home.
Here in Russia I do not only feel at home, I am at home indeed. Programme director
This First Forum on Small Business of the SCO and BRICS Regions could not have come at the right time than now.
The formation of BRICS, especially the inclusion of South Africa into this body in 2010, represents a milestone historic achievement in the history of developing nations.
There is no doubt that a platform exits for the expansion of economic cooperation in key strategic areas such as food production, petro-chemistry, mining, tourism, nuclear and renewable power production, transport, communications, and, more importantly, trade.
Brazil, Russia, India, China and lately, South Africa, have severally and individually become significant players in the economy of the world.
As of 2015, these countries combined, constitute over 42% of the world population.
Their combined nominal GDP of US$16.039 trillion is an equivalent of approximately 20% of gross world product.
Programme director
The recent launch of the New Development Bank, NDB, and the formation of Contingent Reserve Arrangement is another development worth acknowledging.
The significant and specific growth in trade and Direct Fixed Investment that our country, South Africa, has witnessed since its inclusion into SADC has made us a significant player and gateway to the rest of Africa.
Addressing the BRICS summit in South Africa on the 26th of March 2015, the Russian President, Vladimir Putin said, “The intra-trade between South Africa and Russia had increased by 66.3% in 2012. In 2011, total trade turn over between South Africa and the Russian Federation increased by 6.42% in 2009, from US $484 millionto US $517 million”.
In the same vein, the formation of Shanghai Cooperation Organisation, SCO, has significantly changed the global economic landscape in terms of trade and industry development.
In Limpopo province alone, the total trade with Shanghai Cooperation Organisation member countries grew eleven fold.
The second major importer of the total exports of Limpopo to SCO member countries remains Russia at R117 million in 2014.
Ladies and gentlemen
It is therefore against background that we make must come up with concrete proposals in this forum on how to ensure effective and efficient cooperation of SCO and BRICS member countries regarding the establishment of favourable business projects for small companies.
As a measure of promoting regional integration in SADC and other countries in our continent, Limpopo has put in place a triple helix of government, private sector and social partners.
In this regard we have established a Premier’s Economic Advisory Council and the Infrastructure Coordinating Committee to ensure the necessary alignment and synergy in terms of planning and development.
In the same vein, the SCO and BRICS member states should establish a region-to-region cooperation in order to build a favourable and conducive business environment for projects of small companies.
On our part as Limpopo, we intent to engage Bashkortostan Republic, Ufa City in particular, with the view to formalise government-to-government relations. This would include
putting in place a Twinning Agreement that involves the cooperation of Universities in our two provinces.
Limpopo Economic Development Agency, LEDA, Limpopo United Business Front, the Chamber of Commerce and Industry of Bashkortostan Republic must development a cooperation agreement. This agreement must be underpinned by amongst others the exploration, mining and mineral beneficiation; high-tech industries development; agro- processing including animal husbandry, diary production, and above all, air-freight/cargo for movement of perishables and other valuable cargo. Ufa International Airport and Polokwane Internal Airport will come in handy in this regard.
This will obviously create a sustainable Cargo Hub for Russia and South African Customs Union, the ECOWAS and COMESA as part Tri-Partite Africa Agreement to support the increase in investments, import and export trade.
It will significantly lead to growth in SMMEs in the regions.
We are also making a concrete recommendation on a city-to- city agreement between Ufa City and Polokwane City.
It is actually our firm belief that an all inclusive and a workable 5-Pronged Cooperation Framework is required to ensure effective trade at all levels and across the board.
This framework must be anchored around:
- Region-to-Region cooperation;
- Chamber-to-Chamber cooperation,
- Agency-to-Agency cooperation,
- Business-to-Business cooperation, and
- Academy-to-Academy cooperation. Lastly ladies and gentlemen
BRICS and SCO are a lifetime opportunity for the developing countries to reclaim their rightful positions in the world community of nations.
We must seize this opportunity with both hands.
We must work harder, have clear targets and plans. We must work towards achieving higher levels of inter-regional cooperation, globally competitive value chains and, more importantly, build stronger SMMEs.
It is no one else but ourselves who must do what is right if we are to succeed.
I thank you.
