Z Mkhize: Founding of People's Republic of China celebration

28 September 2007

Good evening. I would like to recognise our distinguished guests who are
with us this evening:

Mr Liu Yantao, Consul-General of the People's Republic of China in Durban;
MEC for Agriculture and Environmental Affairs Mr Mtholephi Mthimkhulu; Chief
Whip of eThekwini Municipality Cllr Fawzia Peer; CEO of Inkosi Albert Luthuli
International Convention Mr Miller Matola and Commissioner for the Durban
Central Police, Director Bala Naidoo.

I am grateful to the Consul-General for inviting me to celebrate the 58th
founding anniversary of the People's Republic of China. I would like to
apologise to our Premier, Dr Sbu Ndebele who could not be with us today.

As we gather here today, we all know that since the advent of democracy the
Republic of China has been supporting the provincial government in its attempt
to tackle the challenge of designing the new phase for this province over the
next few years.
* In May 2000, Guangzhou City and Durban established Sister City
relationship;
* In August 2001, Shanghai and KwaZulu Natal established friendly
relationship;
* In September 2002, Zibo City and Newcastle established Sister City
relationship;
* In September 2003, Guangzhou Port and Durban Port established sister ports
relationship;
* In November 2003, Fuqing City and Durban established Sister City
relationship;
* In November 2005, Fujian Province and KwaZulu Natal signed a Letter of Intent
for the Agricultural Co-Operation: Dry-land rice and Mushroom programme.

I have confidence the support from the Peoples Republic of China we will
collectively implement initiatives that will ensure economic growth not only in
KwaZulu Natal but in South Africa, SADC region and ultimately the entire
continent.

I'd like to draw your attention to the report released by the World Bank in
December last year on how globalisation will shape the global economy over the
next 25 years. The report predicts that the global economy could expand from
$35 trillion in 2005 to $72 trillion in 2030. While this outcome represents
only a slight acceleration of global growth compared to the past 25 years, it
is driven more than ever before by strong performance in developing
countries.

The report further notes: Broad-based growth in developing countries
sustained over the period would significantly affect global poverty. According
to the report the number of people living on less than $1 a day could be cut in
half, from 1,1 billion now to 550 million in 2030. However, some regions,
notably Africa, are at risk of being left behind. Moreover, income inequality
could widen within many countries, compounding current concerns over inequality
between countries.

The more profound reason why the provincial government would like to
strengthen relations with the People's Republic of China is that we want to
make substantial progress toward reducing poverty. Employment has generally
been on an upward trend since March 2003. The number of employed persons rose
from 11, 9 million in March 2001 to 12,4 million in March 2006. From March 2002
to March 2006, the number of persons that were employed grew by over 800
000.
Ladies and gentlemen

As we gather this evening on the auspicious occasions of celebrating the
58th founding anniversary of the People's Republic of China, allow me to
congratulate President of the People's Republic of China: Hu Jintao for working
tirelessly to ensure peace and prosperity on the African continent.

I have been informed that, since 1956, China has completed some 900 projects
of economic and social development in Africa, provided scholarships for 18 000
students from 50 African countries to study in China and sent 16 000 medical
personnel to 47 African countries, who have treated more than 240 million
patients.

Since 2006 more than 3 000 Chinese forces have participated in the UN
peacekeeping operations in Africa. China also actively promotes trade with
Africa, helps ease its debt burden, supports regional cooperation, which
contributes a lot to Africa's self-development.

To keep abreast of the changing situation and the suggestion of African
countries, China launched Forum on China-Africa Co-operation seven years ago in
Beijing. This forum has become an important platform for dialogue,
consultation, advancing mutual understanding and identifying priorities in
concrete economic and social cooperation.

The Chinese government has set up the African Human Resources Development
Fund and made positive contributions to enhance Africa's capacity building.
Between 200-2003 only, China completed training courses for about 7000
government officials and technical personnel from African countries in areas
such as agriculture, health, education, science and technology.

KwaZulu Natal's Gross Domestic Product (GDP)

As the province we are impressed by your achievements. China has developed
tremendously especially over the past 25 years. The country has made remarkable
economic and social progress resulting in the improvement of the people's
living standards.

Before the founding of the People's Republic in 1949, China's per capita GDP
was equivalent to US$ 18. After 50 years of growth, it reached US$ 770 in
1998.

In 1997, the World Bank ranked China's GDP volume 7th in the world just
behind the United States, Japan, Germany, France, Britain and Italy. In 1999,
China's four days' GDP equalled that of the whole year of 1949.

In 2006 China's GDP was recorded at US$ 2700 billion. At present, the growth
rate of the GDP is over 10%.

We intend to get our province to be the leader in economic development in
South Africa with the largest contribution to the national GDP. Currently,
KwaZulu-Natal (KZN) is second to Gauteng with the contribution of approximately
16.1%. We are targeting a growth of 8% by 2009/2014.

The manufacturing sector is the leading employer in KZN contributing to more
than 20% of total formal employment. Nearly a third of South Africa's
manufactured exports are being produced in the province.

China is one of the best countries in the world in the world ago in terms of
the production of steel, coal, textile, cement and TV sets, having being ranked
first few years ago.

Most importantly, we are impressed by China's ability to feed more than 22%
of the world's population with 7% of its arable land.

Conclusion

Reflecting on the 58 years China has gone through, I am convinced that we
will succeed in our efforts aimed at creating of a better Africa for all
communities.
I trust that trade relations between China and South Africa will strengthen so
that we can see strong and sustainable trade activities taking place.

As we prepare to host the 2010 World Cup, there are endless opportunities in
the country. We strongly believe that the province will benefit from the
expertise of engineers and other skilled personnel brought to the country as a
result of your decision to invest in this province. These are some of the
benefits of foreign direct investments. We want to ensure that we host a
memorable World Cup.

I'm confident that you will help rally new strength; you will help inculcate
the culture of entrepreneurship. With the support of your government we will
succeed to free many of our communities from the shackles in which they have
been held for many years.

Thank you

Issued by: KwaZulu-Natal Provincial Government
28 September 2007