Africa Ms Phumzile Mlambo-Ngcuka during the Energy Summit
26 September 2007
Minister of Minerals and Energy, Buyelwa Sonjica
Premier of the Gauteng province, Mr Mbhazima Shilowa
Mayors and councillors
Advocate Nogxina and counterparts
Captains of industry
The leadership of organised labour
Distinguished guests
Ladies and gentlemen
It gives me great pleasure to have the opportunity to send a short message
in this the very first South African National Energy Summit since the approval
of the White Paper on Energy Policy by Cabinet in 1998. I am saddened by the
fact that I could not physically be there with you today, but I am with you in
spirit. The Department of Minerals and Energy remains my extended family.
As we meet, oil prices are in the headlines. Energy security is again high
on the political agenda and increasing our own generation capacity is on top of
our agenda. Climate change plays a significant part of the debate. Government
leaders are concerned. Oil importing, industrialised countries warn of the
detrimental impact that high oil prices have on their individual economies and
on the world economy. Oil-importing developing countries suffer even more than
before from increasing oil import bills.
If this shorter-term perspective is challenging, the longer-term scenario
could be more daunting; not least for Africa in a do nothing scenario. These
energy developments will influence that changing geopolitical climate including
the geopolitics of climate change. This event presents an opportunity for all
stakeholders in South Africa to engage with the policy makers, influencers and
owners of capital so that together we face the challenges. It is well known
that cheap energy fuelled economic growth of most Organisations for Economic
Co-operation and Development (OECD) countries and the United States America
(USA).
They are now rich and can afford to pay very high prices, as is evident by
the high taxation on most energy carriers. Being a developing economy and an
importer is more difficult, as without cheap energy, or some other endowment
that can pay for expensive energy, one cannot easily achieve the sustainable
economic growth. As developing countries grow their economies, their need for
energy can limit economic growth.
No country in the world has succeeded in shaking loose from a subsistence
economy without access to the services which modern energy provides. The
history of development identifies it as one of the prerequisites to facilitate
social development and fuel growth. Our country industrialised at the back of
cheap and abundant electricity.
Across Africa, as it is, access to modern energy is stagnant at best, while
in some countries access is declining as utilities flounder and service
extensions fail to keep pace even with population growth. This stagnation shuts
off the possibility for tens of millions of Africans to participate in the
development process.
We in South Africa are still in a more fortunate situation even with our own
demand challenges and cost of importing oil, so we have to implement the
solutions we have identified. We cannot even think about not succeeding because
energy is a catalyst for our shared growth. It is for that reason that I
believe the Department of Minerals and Energy is best placed to deliver on most
of the issues highlighted by President Mbeki in his State of the Nation Address
earlier this year.
He reminded us of our key challenges which include, amongst others:
* intensifying the fight against poverty
* addressing the challenges of the second economy
* providing of basic services
* reducing the cost of doing business in South Africa.
We cannot grow this economy without access to affordable and sustainable
energy. Today is a very special occasion for us as a country, as we take a
moment to look back at what we have achieved since we adopted our first post
apartheid energy policy. A lot has changed since then, both nationally and
internationally, a lot has been achieved since 1998 but we still have more
challenges ahead of us!
New challenges that need to be overcome have emerged; new frontiers have
been defined which will have to be reached. You are aware that the President
and I have worked with Directors-General and Ministers to highlight the
priorities of priorities from the government Programme of Action (POA). This
has given government and yourselves 24 programme areas that you need to
familiarise yourselves with because by 2010 or even better 2009 we must see
achievements and include:
* industrial policy implementation plan
* implementing intensive campaign on energy security including massive energy
saving campaign and maintenance of energy infrastructure
* human resource development
* implementation of antipoverty campaign.
There are six million poor households in South Africa with 22 million people
that we can rescue from poverty together with business, civil society and
labour. In this regard, providing energy services to women is a make or break,
because the meaningful development of women is the single most reliable weapon
against poverty for humanity. The objectives of the energy sector are still the
same and relevant. Increasing access to affordable energy services, access to
basic services remains the imperative of the ruling party.
Improving energy governance there is a need for greater clarity of the role
of state in the effecting of any investments. Stimulating economic development,
there are number of questions that still need to be answered about the role of
competition especially in the provision of key strategic infrastructure,
especially those which are natural monopolies. We know transmission lines
remain state owned and operated even in very active markets like the Noord
Pool.
Managing energy-related environmental and health impacts although we have
made significant head way in the provision of electricity, we have not solve
the problem of household fuels provision. We still need to ensure a healthy
balance between exploiting fossil fuels and maintenance of acceptable
environmental requirements.
Securing supply through diversity as the Energy White Paper prescribes: "We
need pursue energy security by encouraging a diversity of both supply sources
and primary energy carriers." South Africa's historic place as leading and
affordable country in the electricity industry has to be protected. It is one
of the cornerstones of our success in our growth strategy, so must we protect
it.
Our delivery of energy to the poor masses through massive electrification
and the reliable and orderly supply of other energy sources to the nation are
all part of our success story. We must be proud of our unique synfuels industry
and expertise. We have two days of robust debate and deliberations ahead of
us.
Minister, I am told that you intend to hold mini-summits on a more regular
basis, an approach that I would strongly support as it will afford you an
opportunity to fine tune the policy to be more responsive to the macro-economic
challenges facing this government and the people of South Africa. We must push
ahead with all aspects of broad based black economic empowerment (BBBEE).
To those speakers who flew in specifically to enrich our debate, I say thank
you. Please take time to enjoy the rest of South Africa's hospitality. Ladies
and gentlemen, I wish you all a very effective engagement and a successful
Summit. It is through discussion, through dialogue, that we will be able the
release all our people from the bondages of poverty and disease. And so
Programme directors, I wish you every success in this great conference.
Issued by: Department of Minerals and Energy
26 September 2007
Source: Department of Minerals and Energy (http://www.dme.gov.za)
