KEYNOTE ADDRESS BY THE GAUTENG PREMIER, MR DAVID
MAKHURA ON THE OCCASION OF THE GAUTENG TRADE AND
INVESTMENT SEMINAR. VELMORE, TSHWANE
16 October 2014
Programme Director, Mr Victor Kgomoeswana;
Representatives of Ambassador of North East Asia, Ambassador of
Japan
Representative of the Dean of the South and South East Asia
Ambassadors, His Excellency Bernard W Baker, High Commissioner
Extraordinary and Plenipotentiary of Singapore;
Representative of the Dean of the Arab Ambassadors, His Excellency
Mr Abdel Hafiz Nofal, Ambassador of the State of Palestine;
Members of the Diplomatic Corps;
Acting DDG for Asia and Middle East, Ambassador Themba Rubushe
from DIRCO;
MEC for Economic Development, Mr Lebogang Maile;
Other Members of the Executive Council, here present;
Executive Mayors of Gauteng municipalities;
Distinguished Business Leaders;
Our Honoured Guests;
Senior Officials from national, provincial and local government;
CEOs of State-owned enterprises and companies;
Ladies and Gentlemen;
I would like to take this opportunity to extend a warm welcome to all of
you, to the Gauteng City Region. We welcome you to the Cradle of
Humankind! Welcome back home.
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It is my distinct honour and privilege to address this, the Gauteng Trade
and Investment Seminar, which focuses on the strategically important
Asia and Middle East Region.
This Seminar is convened to explore in great detail opportunities to
increase trade and investment between Gauteng and the Asia and
Middle East regions. We welcome the role of our national government in
helping us to organise this seminar.
Gauteng province is very serious about contributing enormously to
growing our country’s economy, in line with our country’s National
Development Plan. To do this, we have a strategy and programme
which will be outlined in detail during the course of this Seminar. We are
ready for business!
From a cultural perspective, we always move from the premise that the
democratic and free South Africa of today is a product of many streams
of human history and diverse cultures. Our own province is the Cradle of
Humankind. We are the most cosmopolitan province of South Africa and
we pride ourselves as the cultural melting pot of our country.
From an investment destination perspective, Gauteng has a distinct
advantage and competitive edge over many regions in our country and
continent. Gauteng is the financial and economic hub of South Africa.
Our province is already a leader in many sectors of our continent’s
economy. We have Africa’s best economic infrastructure. We have a
young and skilled population. Most sectors of our economy are driven by
knowledge and innovation.
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These historic bonds have their origins in our shared history of the
struggle against slavery, colonialism, indentured labour and all other
forms of oppression. Many countries in Asia and the Middle East
supported the South African struggle against apartheid.
We are grateful and remain deeply indebted to those who worked with
us to bring freedom and democracy in our land.
However, now we need to forge stronger economic ties with the
countries of Asia and the Middle East in order to grow our economies to
the benefit of all our people in order to realise our dream of true
liberation.
THE
GLOBAL
AND
REGIONAL
TRADE
AND
INVESTMENT
CONTEXT
Ladies and Gentlemen, this Seminar is taking place in an era when there
are tectonic shifts in the global economy. The emerging economies have
become the new centres of economic growth. Our regions are destined
to become global economic power centres. They are the leading
economies of the future!
Trends 1 indicate that in 2010 emerging markets constituted 53% of
global GDP, with Africa contributing 4% to global GDP, Asia 28%, Latin
America 10%, Central and Eastern Europe 3%, Commonwealth States
4% and the Middle East 4%.
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According to a 2013 McKinsey International report, produced by the Keyser Centre for Economic Research
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By 2030 emerging markets will constitute 74% of global GDP, with Africa
contributing 7%, Asia 44%, Latin America 10%, Central and Eastern
Europe 3%, Commonwealth States 4% and the Middle East 4%.
By 2050 emerging markets will constitute a substantial 83% of global
GDP, with Africa contributing 12% to global GDP, Asia, 49%, Latin
America 10%, Central and Eastern Europe 3%, Commonwealth States
4% and the Middle East 5%.
With better infrastructure and sound institutions, Africa will perform much
better and become the locomotive of global growth. Africa is the future
and the future is Africa.
Gauteng is the Gateway to the African Continent and the SADC region.
We are greatly encouraged by the performance of our regional
economy. Foreign direct investment reached an estimated 43 billion US
dollars, up from 37 billion US dollars in 2012.
Going forward, regional GDP is expected to strengthen to 5,3% in 2014,
rising to 5,4% in 2015 and reaching 5.5% in 2016. Net Foreign Direct
Investment inflows are expected to be resilient averaging 44.3 billion US
dollars between 2014 and 2016.
Programme Director what all these numbers point to is that as South
Africa and as Gauteng in particular we are in the right place. We are
located in a growing region and our region is headed in the right
direction. We are the Gateway to Africa. We are open for business.
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Programme Director, allow me to go into detail about the character of
Gauteng’s economy, our governance model and economic development
plans.
The Gauteng economy contributes 35% of South Africa’s GDP and 11%
to Africa’s GDP. We are the biggest economy in our country and fourth
largest economy on the continent. Our provincial economy has grown
from R379 billion in 1995 to more than R1 trillion in 2013. Our target is to
grow the Gauteng economy to R2 trillion in the next fifteen years.
We have the most diverse and modern sectors of the economy. We
continue to attract a range of skilled labour and international migrants
eager to contribute to growth and economic development of our
province.
Our advanced social and economic infrastructure has led to our province
being home to the Headquarters of major global corporations and
transnational companies that do business in Africa, Asia and the Middle
East.
We have the largest number of research institutions based in our
province, making us South Africa’s intellectual and R&D capital.
Despite all of this, Gauteng like the rest of the country continues to face
the persistent triple challenges of poverty, unemployment, inequality and
underdevelopment.
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Over the past twenty years of freedom and democracy we have made
considerable progress in expanding the provision of basic services such
as housing, water, electricity and sanitation.
We have also expanded access to quality health care and education.
We continue to strengthen our investment in strategic economic
infrastructure, with a view to creating the necessary conditions for the
private sector and government to play a role in advancing economic
development.
Through our investment in infrastructure we have created new nodes of
economic activity and economic development.
Working together with our communities we continue to intensify our
efforts to build a safer Gauteng for all. We have just emerged from a
Safety Summit wherein we adopted a new crime fighting plan to make
our province a much safer place for all and a safer economic destination.
While we take pride in the progress we have made over the past twenty
years to build a better Gauteng, we acknowledge that a lot more still
needs to be done. Many of our people are still outside of the economy
and hence without investment we will not address some of the
challenges we face.
Going forward, our economic growth trajectory will be guided by our own
ten-pillar
programme
of
transformation,
modernisation
and
reindustrialisation.
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This programme seeks to give effect to the goals of the National
Development Plan, Vision 2030; our country’s development blue print,
which aims to eliminate poverty and to significantly reduce inequality and
unemployment by 2030.
TEN PILLARS OF THE TRASNFORMATION, MODERNISATION AND
RE-INDUSTRIALISATION OF GAUTENG’S ECONOMY
Programme Director, in order to deepen and consolidate the gains we
have made thus far and in pursuit of our goal of building Gauteng as an
integrated city-region, characterised by social cohesion and economic
inclusion and a leading economy on the continent, underpinned by
smart, sustainable socio-economic development, early this year we
announced the Gauteng City Region ten pillar programme.
We reiterate that this programme, which we will roll out over the next
fifteen years, is in line with the National Development Plan and seeks to
ensure that we effect radical social and economic transformation,
modernise and reindustrialise the Gauteng City Region.
Our programme is anchored on the following Ten Pillars:
1. Radical economic transformation
This will involve interventions in key sectors of the economy to unlock
growth and employment potential and bring in blacks, youth and women
as well as the revitalisation of township economies.
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2. Decisive spatial transformation
This will entail significantly altering the apartheid spatial planning
patterns through public transport linkages and the building of new
sustainable and integrated human settlements as well as new postapartheid cities
3. Accelerate Social transformation
This will involve modernising education and the building of smart
schools, including paperless classrooms; this we must do because
education is key for the development and growth of our economy. We
are also improving the delivery of quality health care and modernising
health institutions. This will also include the rolling out the National
Health Insurance. Key to our health policy is the improvement of primary
health care and promoting healthy lifestyles.
We are an urban region, hence our work over the next fifteen years will
also involve tackling urban poverty and other social development
challenges.
We are also alive to the fact that crime impacts negatively on growing
our economy. Our vision is to build safer communities. We are working
with communities and state law agencies to ensure the safety of our
communities and those who want to invest in our economy. In the past
we have held a summit with sectors of society and law enforcement
agencies, wherein we emerged with a strategy on crime fighting and
improving the safety of our communities. We continue to meet regularly
with business against crime to develop highly sophisticated methods of
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crime fighting. We are building a safe city region wherein you can come
and invest in.
4. Transforming the state and governance
This will involve building the capabilities of the developmental state
through better organisation and professionalisation; promoting an
activist, purpose-driven and results-based government; active citizenry,
sectoral engagement and community mobilisation.
5. Modernisation of the public service
This will involve building green and smart public services and
infrastructure in order to deliver services effectively and efficiently to our
people. It will also involve building a seamless and connected
government and the rolling out of e-governance across the Gauteng City
Region.
We want to cut the red tape and build a culture of rolling out the red
carpet to investors. This includes supporting the Gauteng Investment
centre to provide a one-stop service to investors.
6. Modernisation of the economy
This will be achieved through increased deployment of research,
innovation science and green technology. Including a scientific response
to the demands of the knowledge economy and globalisation. This work
is also important because the tertiary sector and in particular the
financial services, is one of the biggest contributor in our GDP.
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7. Modernisation of urban development and human settlements
Modernisation of human settlements will be achieved through creation of
green and high density settlements.
8. Modernisation of public transport and other infrastructure
We invite you to join us in our journey to renew and build infrastructure
as the backbone of our economy and this will include increasing
investment in public transport which involves the BRT service across
municipalities, rail infrastructure working with PRASA, broadband, water
and sanitation and energy mix. We ask you to come and invest in these
economic opportunities.
9. Re-industrialize Gauteng and South Africa
Gauteng has evolved over time, moving from primary to a strong tertiary
sector. However, we have taken a decision to reverse deindustrialisation
and its effects in Gauteng and in South Africa. When you want to invest
in the green economy, please go the West Rand, when you want to
invest in manufacturing and beneficiation please go to Ekurhuleni, when
you want to invest in the automotive industry please go to Tshwane
10.
Taking a lead in Africa’s industrial revolution
As the Gauteng City Region and in particular Gauteng companies, we
have been encouraged to take advantage of the opportunities presented
by the ongoing industrial revolution on the African Continent, Asia and
the Middle East and the rest of the world.
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OUR GAME CHANGERS
Programme Director, in order to give effect to out ten pillar programme,
we have identified a number of game changers through which we will
significantly contribute to our vision of transforming, modernising and
reindustrilising the Gauteng City Region.
Our ultimate goal through these game-changers is to place the Gauteng
City Region on a qualitatively different development trajectory. Our game
changers involve doing things better, more efficiently and on a larger
scale as well as the introduction of new mega projects. In the next fifteen
years Gauteng will be a massive construction site.
Some of the game changers we have identified include, positioning the
Gauteng City Region as a financial services and agro-processing hub,
strengthening e-Governance, building freight and logistics hubs in
identified areas of Gauteng, new cities, including focusing on energy
security and reducing reliance on carbon based fuels and strengthening
eco-tourism, aerotropolis, green economy, mineral beneficiation and the
creative industries.
In addition to identifying game changers we have also set up institutions
to support our vision of radical transformation, modernisation and reindustrialisation.
They include; the, Gauteng City Region Observatory which is our
research hub; The Gauteng City Region Academy which focuses on the
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training of public servants and public representatives, working in
partnership with institutions of higher learning in the province.
We are also establishing the transport commission that will eventually
become the Gauteng Transport Authority.
In addition, we have established the Gauteng Infrastructure Coordinating
Council to ensure coordination of mega projects in the City Region.
We have established an e-governance committee to coordinate ICT and
broadband infrastructure development in the GCR.
We are working with the private sector. Over the past four months we
have met and interacted with leaders of different business sectors,
including the leadership of the JSE Securities Exchange, the Banking
Council of South Africa, all of whom have expressed interest in
partnering with us as we implement our programmes.
We will continue to interact with the rest of the business sector to ensure
that we work together to build a socially inclusive Gauteng City Region.
Our programme also includes the revitilisation of the township economy
and we now have the strategy and we have set aside 160 Million to
recapitilise the Gauteng Enterprise Propeller in order to support the
growth and development of the township economy.
CONCLUSION
Ladies and Gentlemen, we have presented to you our plans for
developing further the Gauteng City Region.
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These elaborate plans are an indication once again that as Gauteng we
are indeed open for business and that your investments in our province
will deliver impressive and concrete results but most importantly for us
they will contribute in building a lasting and proud legacy for the people
of Gauteng. We look forward to mutually beneficial partnerships with
you.
I wish this Seminar a tremendous success. No time to waste. We mean
business and we are open for business.
Thank you.
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