Programme Director,
The Executive Manager for Trade and Investment KZN, MR Mxolisi Manyakanyaka; The UNCTAD representative, Mr Paul Wessendorp,
The CEO of Durban Investment Promotion Agency, Mr Russel Curtis Dignitaries Present,
Ladies and gentlemen,
All protocol observed.
On behalf of the people of this province and Premier of the province of KwaZulu-Natal, Mr Senzo Mchunu, we wish to express our sincere delight for being part of this dinner where we are meeting to break bread after a successful workshop which is being facilitated by our guests from the United Nations Conference for Trade and Development (UNCTAD).
Programme Director, from the outset we want to express our gratitude to UNCTAD for agreeing to facilitate this important workshop on low carbon investment, in particular and renewable energy opportunities in general on the African continent.
As all of us know, Africa is not only emerging as the next frontier of growth and development in a world facing a lingering crisis of business confidence, but statistic after statistic has shown that it is the biggest thing yet to hit the global economic landscape.
It is because of this reason that we believe this workshop is important because it has given us an opportunity to reflect on what we need to do in order to create an economy that is globally competitive and to meet the needs of a rapidly growing continent using renewable energy sources. Despite the fact that our continent has an abundance of sources of renewable energy sources such as solar and hydro power to name but a few, the reality is that we are yet to harness the potential of this fastest growing industry in the world.
This is evidenced by the fact that the next economic wave of innovation is the smart green economic revolution, which includes renewable energy, sustainable food and transport, low carbon buildings, innovative waste management among others.
In this regard, the news that South Africa and the Democratic Republic of Congo have signed an agreement for the construction of the 80-billion Dollar Grand Inga Hydropower Project gives the clearest indication yet that there is a growing realization on the continent that we need to fully harness the renewable energy sector in order to power the continent’s growth and development.
As all of us know, the grand Inga dam project is expected to be the world’s largest hydropower scheme and will produce up to 40,000MW of electricity, more than twice the power generation of the Three Gorges Dam in China, and more than a third of the total electricity currently produced in Africa.
Closer to home, as the province of KwaZulu-Natal we are also working hard to exploit the renewable industry sector. One of our biggest renewable energy projects we are implementing is the Red Hub-KZN project which is a partnership between Germany investors, the provincial government and the eThekwini Municipality.
The project will, among other spin-offs, result in the building of the biggest techno hubs in the country and will cost in the region of R3.8 billion during the first phase. It is envisaged that the total investment on the project by year 2020 will be R10.5 billion. The project will create more than 4000 jobs by 2016.
Programme Director, global statistics show that the low-carbon goods and services sector is worth two trillion pounds and employs 28 million people, and is growing by 4% per annum, which is faster than in most developed countries at the moment. It is because of this reason that as social partners in the province we have agreed that we should put the renewable energy sector at the apogee of our list of priorities. It is because of this reason we, as the province, have taken a proactive stance to put together the provincial green economy strategy.
This strategy reflects a shift in thinking from a ‘business as usual’ economic approach, which considers the environment as an infinite resource from which to grow the economy, to one that recognises that the environmental system has thresholds or limits, and that the economic sub-system should be embedded within, and shaped by, the environmental assets and services available in a particular region.
It also reflects a shift to the green economy that involves the restructuring of business, infrastructure and institutions towards more sustainable production, consumption and distribution processes thus creating new economic opportunities and green jobs.
The strategy is aimed at positioning KwaZulu-Natal in such a way that it can claim its place in the emerging national and global green economy by building on its inherent strengths. In order to do this, KwaZulu-Natal has to develop its distinct green economy competencies or capabilities, which will over time, build the competitive position of the province. This is reflected in the provincial green economy strategy.
The principal aim of this Green Economy Strategy is to support and direct the re-orientation and growth of the KwaZulu-Natal economy to become increasingly competitive and resilient, by:
- Increasing resource use efficiency in business and government infrastructure and development
- Increasing the supply of renewable energy
- Securing the supply of ecosystem services from the province’s natural assets
- Reducing environmental and climate related risks; and in so doing
- Create sustainable jobs for local people
- Reduce poverty
- Address social equity throughout all regions of the province.
The shift to a green economy in KwaZulu-Natal offers significant opportunities for job creation and economic growth. The development of a green economy is not about the establishment of a new sector within the existing economy, but is rather about transformation of existing supply chains and production systems towards increased resource use efficiency, use of renewable resources over non-renewable resources, and the development of new products and services in the environmental sector.
This is a response to the globally recognised need to build resilience into the economy through recognising and addressing environmental and social thresholds in how economic growth takes place.
As the provincial government of KwaZulu-Natal we believe that the issue of harnessing renewable forms of energy is no longer an issue of environmental sustainability but is a prerequisite for creating an innovative and a growing economy that can hold its own in the shifting sands of the global economic landscape.
In conclusion, we wish to once again express our gratitude to the representatives from the UNCTD for facilitating the workshop. We have no doubt that the issues that were discussed so far in this workshop will go a long way towards opening vistas of opportunities for the province in this fastest growing sector of the global economy.
I thank you!
