Development, Mr Z Mkhize, on the occasion of KwaZulu-Natal (KZN) Growth Awards,
at the ICC, Durban
27 October 2006
Programme Director,
Professor Mandla Mchunu, the Director-General of the province,
Mr Sipho Shabalala, the Head of Provincial Treasury,
Deputy Mayor of eThekwini, Councillor Logie Naidoo,
Mrs Manana Nhlanhla, the Chairperson Trade and Investment KZN,
Our host, Mr Dayalan Naicker, the Director of Standard Bank Corporate and
Investment Banking KZN,
Mr Themba Ngcobo, the President of Durban Chamber of Commerce,
Members of the media present,
Honoured guests,
Ladies and gentlemen:
This awards programme aims to provide support and recognition to businesses
making a meaningful contribution to sustainable growth in the local economy. As
a strong believer in the importance of recognising and rewarding hard work, I'm
particularly pleased that Standard Bank has given me the opportunity to address
tonight's gathering. May I encourage Standard Bank and the entrepreneurs
present to keep it up. We expect to see the KZN Growth Awards becoming a
permanent feature in our province's economic calendar.
The economy
Ladies and gentlemen, things are really looking up on the economic front. In
KwaZulu-Natal, tourism services and manufacturing are the pillars of our
economy. For any economy to grow then we must see inflation stay at appropriate
levels. According to Statistics South Africa (StatsSA) the official inflation
rate is 5,3 percent as at September 2006. This rate is 0,1 of a percentage
point lower than the corresponding annual rate of 5,4 percent at August 2006.
The decrease could be explained by the decrease in consumer price index (CPI)
for transport from 9,1 percent in August to 4,8 percent in September.
The South African economy accelerated in the second quarter of 2006 with
gross domestic product (GDP) increasing by 4,9 percent marking a sustained 31
quarters of economic growth since 1998, the longest upswing in the country's
history. KwaZulu-Natal is the second strongest economy in South Africa. Our
efforts to becoming the strongest in the region. We can do it.
Tourism
Never before has tourism in KZN made such a major impact on the economy. In
May 2006, there was 15,1 percent increase to 641 700 foreign tourists visiting
our country compared with 557 361 in May 2005. With one tourist creating eight
jobs, this represents a pleasing change for the better.
Tourism KZN's strategy 2006 - 2011 projects that growth will accelerate so
that by 2011 KZN will have established itself as a globally competitive tourism
destination and one of Africa's leading destinations. Tourism contribution to
Gross Geographic Product (GGP) will have grown to approximately R35 billion a
year and the industry will have made significant progress toward
transformation, Black Economic Empowerment (BEE) and the upliftment of
previously marginalised communities.
The 2010 FIFA World Cup is really the ultimate stage for our tourism sector
to really turn the tide on the unemployment and poverty levels. Year 2010 is
not about the 90-minute football game or who wins a match. No it's about how we
accommodate, transport, entertain and show off our land to the hundreds of
thousands of people who will be coming here for a five-week party. Government
is not going to say to you, "here's an idea". The fact that you are
entrepreneurs means that you must sell your ideas to the multitudes of people
who are coming. And they are coming. As the Minister of Finance Trevor Manuel
said on Wednesday when he presented the Medium Term Expenditure Policy
Statement, the 2010 World Cup is a once in a generation opportunity for us.
This country and its people have to be the ones who score the biggest.
Minister Manuel announced that R15 billion has been set aside to finance the
development of infrastructure for optimum realisation of the 2010 FIFA Soccer
World Cup. Of this amount, R8,4 billion is for the stadiums and R6,7 billion
for public transport initiatives and supporting infrastructure.
That kind of investment will absolutely spur the economy onto greater
heights. At this point I want to also encourage you as business and the banking
sector, Mr Dayalan Naicker, to look at how you too can contribute to the
success of 2010 in the province. Government has laid its cards on the table.
Now you as business need to be asking yourselves questions, like, a stadium
needs to be built how can I get involved? Infrastructure must be developed, how
can I get involved? I just hope that you are not asking yourselves these
questions when it's too late!
World Association of Investment Promotion Agencies (WAIPA)
The WAIPA recently requested Trade and Investment KwaZulu-Natal (TIKZN) to
host the WAIPA 2006 study tour from developing countries for two weeks. The
programme will be hosted in Pretoria for the first week and then in KZN /
Durban for the second week. I believe that the study can only benefit our
province and our country.
Telecommunications
For any economy to grow it must be based on sound telecommunications and
infrastructure.
The second network operator, Neotel's entry into the market is expected to
help reduce the high costs of telecommunications particularly broadband in
South Africa.
The Eastern Africa Submarine Cable System (EASSy), a 9 900 kilometre long
undersea fibre-optic cable between Durban and Port Sudan that is expected to
slash telecommunications costs in Africa could be operational by 2008. On 16
October, the Communications Ministers of Botswana and Zimbabwe meeting in Cape
Town with other Ministers from eastern and southern Africa added their
signatures to a protocol for construction of EASSy to begin.
Again, Minister Trevor Manuel said two days ago that spending on public
infrastructure is going to grow by about 15 percent a year to reach about R150
billion a year by 2010. These investments are focused on social and household
services and infrastructure that expands economic capacity. The proposed budget
framework provides R28 billion of additional funds for spending on
electrification, roads, commuter rail, housing, bulk infrastructure and
research and development.
The South African government has set aside R3,8 billion for public transport
infrastructure for the 2010 Soccer World Cup. Addressing the Transport Indaba
in Soweto, Johannesburg on Sunday, national Transport Minster Jeff Radebe said
a 2010 transport action agenda had been developed and that the World Cup Public
Transport Infrastructure and Systems Fund had allocated the first round of
funding to the country's municipalities.
KwaZulu-Natal is placed to benefit significantly from transportation and
logistics projects. We are aware of the construction of the interchange to King
Senzangakhona Stadium among others.
Investment
South Africa was rated the most competitive economy in the sub-Saharan
region and the most attractive country in Africa to invest in by the World
Economic Forum's 2004 annual Global Competitiveness Index. It is on the back of
this fact that our international investment missions have been successful.
Against this success, TIKZN is going to increase focus on encouraging domestic
investment. Logically no one wants to invest in an economy whose own people do
not believe in.
Ladies and gentlemen, I am glad to announce that from 28 October â 1
November 2006 we'll host the very first KwaZulu-Natal Investment and Conference
and Exhibition. That event will be co-ordinated by the Department of Economic
Development and its public entity, TIKZN. I invite anyone who would like to
contribute to the success of that event to contact the Head of Department (HoD)
of Economic Development, Mrs Carol Coetzee.
Dube Trade Port
These last two days the two bids for constructing the Dube Trade Port and
the new international airport were unveiled. Each presented fresh, exciting
perspectives of what the world has to offer in terms of constructing a
development of this nature. Without giving too much away I can tell you that I
am very impressed with what's on the table and I wish both bidders well.
A1 Grand Prix
We have three more years to host the internationally renowned A1 Grand Prix
in Durban. The investment that the province started making last year is well
worth the goodwill and jobs that have been created. The second A1 Grand Prix
will be in Durban in January. Ladies and gentlemen, businesspeople, we need to
see this as an opportunity for us to build the momentum towards 2010. If we
make these upcoming grand prix races an international success of the highest
quality, who is not going to want to come to KZN? We make the tourists happy
now, they are our best advertisers to the rest of the world.
New parliamentary complex
I am pleased to announce that the KZN provincial Executive Council (ExCo)
has approved the construction of the new Parliament Complex at the portion of
Townhill Hospital site. The provincial Treasury and the Department of Works
were mandated to consider all forms of arrangements to finance this project
including Public-Private Partnership (PPP) and the disposal of other government
assets. The construction of the building is very important because the current
one limits the number of stakeholders who can participate by being in the
public gallery. As a banker, Mr Dayalan Naicker, I encourage you and the rest
of the banking fraternity to look at this project and others around the
province and find innovative ways of best promoting BEE business
opportunities.
Conclusion
Congratulations to tonight's award recipients. For this provincial
government and partners like Standard Bank, all those who strive to contribute
meaningfully to our economy are winners. I therefore encourage all our people
to locate themselves somewhere in the stratum of our economy. Yes you will make
mistakes and encounter problems but then remember the words of the late
President of the United States of America (USA), Franklin D Roosevelt, who led
America during the great depression, "The man who never makes a mistake, is the
man who never does anything".
Sithi halala! Congratulations!
I thank you!
Issued by: Department of Finance and Economic Development, KwaZulu-Natal
Provincial Government
27 October 2006
Source: KwaZulu-Natal Provincial Government (http://www.kwazulunatal.gov.za/)
