Opening Address at the 5th Japan - South Africa Partnership Forum by Deputy Minister of Foreign Affairs, Mr. Aziz Pahad, Tokyo, Japan 22nd May 2002

Mr Sugiura, Senior Vice Minister for Foreign Affairs of Japan,

Delegates from South Africa and Japan,


On behalf of the South African delegation, I wish to express my appreciation to the Japanese Foreign Ministry for hosting this Fifth Partnership Forum in Tokyo.


Since the last meeting of the 4th Japan-South Africa Partnership Forum in Pretoria, we are faced with an entirely different international situation that has been dictated by the dramatic events of September 11th.


The year 2001 will undoubtedly be remembered for the terrible tragedy that occurred on September 11th. We are now having to deal with new policies, inter alia, "global coalition against terrorism," "you are either with us or against us," the "axis of evil," "clash of civilizations," etc.


Also, the debate between unilateralism and multilateralism is growing more pronounced.


Protectionism in some of the developed countries is increasing eg. Steel tariffs in the USA; massive agricultural subsidies eg. the OECD Agricultural subsidy of US$3 billion a year.


Also, the WTO Meeting in Doha opens up a second round of discussions that would focus on the developmental agenda, to ensure the interests of the South.


All this impacts fundamentally on international relations; in this Partnership Forum, we must together analyse these trends and determine how we can influence them positively.


Notwithstanding the fundamental changes to international relations after 11th September 2001, the global challenges affecting humanity are precisely the same as those before 11th September 2001! If anything, these challenges have taken on a new urgency. There is growing consensus internationally that to defeat terrorism, a holistic approach must be adopted in dealing with the root causes thereof.


These are, inter alia:

Eradication of poverty, communicable and pandemic diseases;
Ensuring sustainable development;
Combating the negative consequences of globalisation;
Preventing global warming;
Containing the threats to global peace and security, amongst others, the current conflict in the Middle East;
Eradicating racism, xenophobia and other forms of intolerance;
Combating transnational crime and terrorism.

The Japanese initiative of human security, in essence, gives concrete expression to this reality. We must ensure that this initiative succeeds.


Sadly, different perspectives of the current global situation are emerging, differing interpretations reflecting two different basic agendas – the development agenda and the security agenda. Among countries of the South there is a perception that some countries of the developed North are giving priority to the security agenda to the detriment of the development agenda, thus failing to see the inter-connectivity between security and development.

Chairperson,

Today, globalisation continues to open up tremendous opportunities but also poses many difficulties and challenges.


The Millenium Declaration stated, "… while globalisation offers great opportunities, at present its benefits are very unevenly shared, while its costs are unevenly distributed … only through broad and sustained efforts to create a shared future, based upon our common humanity in all its diversity, can globalisation be made fully inclusive and equitable…"

This underscores the growing reality that: "if a free society cannot help the many who are poor, it cannot save the few who are rich," and secondly, development that perpetuates today’s inequalities is neither sustainable nor worth sustaining.

Failure to appreciate this is resulting in the growing alienation of many and the disillusionment with the manner in which governments conduct their business, as well as reaction to the existing global environment. For example, in Europe, we have watched with grave concern the rise of right wing extremism. In the Asian region, although the release of Ang Su Chi is a positive development, the potential for war between India and Pakistan, both of which are nuclear powers, grows daily. This situation has serious implications for everyone.

In the Middle East, the security situation has deteriorated sharply. Events such as Jenin, and Israeli impunity vis-à-vis UN Security Council Resolutions, have very serious consequences for the United Nations and future peace in the region and globally.

In Africa itself, we are still faced with ongoing areas of conflict and instability, these include Angola, the DRC, Burundi, Somalia and Sudan. The crisis situation in Zimbabwe also requires our greater scrutiny.

Yet, on all these fronts there has been important developments and these issues are on the agenda for discussions.

This then is the context against which we hold the 5th Partnership Forum meeting.

The year 2001 proved to be an important year in relations between our two countries. The historic visit by former Prime Minister Yoshiro Mori to South Africa in January 2001 and the State Visit by President Thabo Mbeki in October 2001 further strengthened relations between our two countries and focussed attention on Africa’s renewal, amid our joint commitment to achieve a world order based on peace, stability, prosperity and equality.

This Forum is therefore taking place at an appropriate time to discuss actions to implement the commitments and decisions taken by our leaders during 2001. It allows us to re-affirm our partnership and to address issues of mutual concern.

The Agenda before us provides an opportunity to deliberate on a number of wide-ranging issues.

Bilaterally

In the past decade, Japan has remained South Africa’s most important commercial partner in Asia, and has consistently ranked as either South Africa’s third or fourth most important trade partner internationally. South Africa values foreign direct investment from Japan. During the past six years, FDI in excess of US$ 500 million has been made, predominantly in the metals, minerals and automotive sectors. Promising new and significant investments are in the pipeline. The proposed visit to South Africa by a Keidanren delegation later this year will further promote trade and investment opportunities between our two countries.

The establishment of the Japan-South Africa Business Forum will undoubtedly make a major contribution to our economic relations.

We are also happy to note the considerable ODA funding Japan has made available to South Africa. On the occasion of the inauguration of President Mbeki in June 1999, Japan announced a second ODA package for South Africa in the amount of US$ 1. 5 billion dollars for socio-economic projects largely targeted at the previously disadvantaged in South Africa. Japan also actively encourages human resource development. We wish to thank the Japanese Government for the assistance provided, mainly through JICA, to train South Africans in various fields, including health, education and local government.

Japan’s commitment to development assistance in the fields of ICT has been welcomed by developing nations, including South Africa.

The digital divide is exacerbating the divide between rich and poor nations. This divide prevents Africa from fully participating in the fast moving process of globalisation. We wish to expand cooperation with Japan to facilitate IT dissemination throughout Africa. South Africa’s development of e-strategies involve electronic communications and transaction laws, youth and ICT, universal access, the historically disadvantaged, human resource development and the development of SMMEs.

The Okinawa Initiative in regard to IT development (US$ 15 billion) will make an important contribution to bridging the digital divide.

Negotiations are taking place to formalise the legal framework for science and technology cooperation between our two countries.

Taking into account South Africa’s excellence in research and development, we believe that both countries will benefit from this arrangement.

We are also happy with our growing partnership in the field of health. In view of the high level of HIV/AIDS in sub-Saharan Africa, it has now become crucial to implement workable solutions in this region to prevent the spread of this and other infectious diseases.

In this regard we continue to work within a broad framework and are intensifying and expanding the HIV/AIDS Strategic Plan for South Africa 2000-2005. Total funding in 2002/2003 amounts to over R1 billion, three times more than the year 2001/2002.

We are also improving the programme of home-based care. The budget allocation for home-based care and community-based care increased from R25.5 million in 2001/2002 to R94.5 million this fiscal year, to R138 million in 2004/2005.

The World Health Organisation has rated SA’s HIV/AIDS programme among the best in the world.

South Africa welcomed the Okinawa Initiative on Infectious Diseases. In this regard, we proposed two projects in the field of HIV/AIDS prevention, and three proposals in the field of emerging and re-emerging diseases.

Since we value the increasing cooperation with Japan in health development projects, we would welcome a greater understanding of the inter-relationship between projects submitted by South Africa in terms of the Okinawa Initiative and those submitted under the 1999 ODA package.

We are eager to discuss these issues with yourselves during this Forum

Based on the growing acceptance that there will be no prosperity or stability in the world unless the problems of Africa are addressed, there is a greater need to restructure the relations between Africa and the global community into a partnership ensuring Africa’s ownership of its developmental agenda.

African leaders have accepted their responsibilities to deal with our under-development.

In the context of high levels of indebtedness, increasing poverty margins, epidemics and pandemics, sustainable socio-economic development on the continent is clearly of crucial importance.

The NEPAD programme was developed to address these issues. This programme will focus on meeting the basic needs of people with regard to socio-economic development, achieving peace, security and stability, and the protection of human rights, democracy, good governance and the rule of law.

The implementation of NEPAD is the greatest challenge facing the African continent. NEPAD is an African Programme adopted by the OAU Summit in Lusaka in July 2001. It is a vision and a programme by - and for Africans to be implemented by Africans, in partnership with the developed world.


This Programme:

Will be steered by a 15 person Implementation Committee
NEPAD will not be steered according to conditions imposed by the developed world
The Abuja Implementation Committee recommendations of good governance – politically and economically – will be taken into account
Conflict resolution is central to the successful implementation of NEPAD
The utilisation of debt relief resources will be ploughed into development, although new resources are essential for the implementation of this Programme initially
Civil society partnerships will be essential to the success of NEPAD
Sub-regional groupings like SADC and ECOWAS will serve as the foundation of the long-term success of NEPAD.

The NEPAD Implementation Committee of Heads of State and Government, at their meeting in Abuja, Nigeria, on 26th March 2002, adopted the Draft Report on Good Governance and Democracy, as well as an African Peer Review Mechanism (ARPM).


The Draft Report on Good Governance and Democracy spells out in detail commitments and obligations such as: strengthening of the democratic process, promotion of good governance, protection of human rights, press freedom and enhancing institutional capacity.


New initiatives worth underscoring are:

The establishment of a portfolio, in the AU, of a Commissioner to be responsible for Democracy, Human Rights and Good Governance;
Expansion of the OAU position on Unconstitutional Changes of Government by expanding the yellow/red card-principle to include patently undemocratic and unconstitutional behaviour, as well as gross violations of human rights by governments in power;
Examining of a series of reforms to improve the effectiveness of the Charter system, including amendments to the Charter and strengthening the Commission and the Court of Human and People’s Rights;
Establishing an effective African Peer Review Mechanism (ARPM)

The ARPM is designed, owned and managed by Africans so as to demonstrate that African leaders are fully aware of their responsibilities and obligations to their peoples and are genuinely prepared to engage and relate to the international community on the basis of mutual respect.


The ARPM aims to:

Enhance African ownership of its development agenda;
Identify, evaluate and disseminate best practices;
Monitor progress towards agreed goals;
Use peer review to enhance adoption and implementation of best practice;
Ensure that policy is based on best current knowledge and practices;
Identify deficiencies and capacity gaps and recommend approaches to addressing these issues.

Each NEPAD participating country is expected to define and clear time-bound programme of action for meeting the said commitments, obligations and actions. Once a Government has pledged to these commitments, a concomitant is that the state in question is to be reviewed every three years. Upon receipt of country reports, the Heads of State and Government of participating states could consider a number of actions at sub-regional and/or regional level, inter alia: using the yellow/red card approach currently utilised by the OAU. The Heads of State will decide on appropriate measures on a case-by-case basis. Country reports and the Heads of State findings are to be made public.


Conversely, committed states should be assisted to overcome deficiencies and capacity constraints in meeting their commitments and obligations. The monitoring and review process could be utilised to identify these deficiencies and limitations and to assist in securing the necessary resources to overcome them. Incentives (political, social and economic) must be created for emerging democracies that are committed to maintaining and enhancing their achievements. It is necessary to support good leadership on the continent. Good governance, political and economic, demands appropriate conditions, especially eradication of poverty and underdevelopment. This requires, inter alia, support in the form of increased market access, debt relief, increased flow of investment and ODA, removal of agricultural subsidies in OECD countries (US$ 360 billion a year), technological transfer and bridging the IT gap.


It is proposed that members of the APRM team, as well as their terms of reference, be recommended by the Council of Ministers for the approval by Heads of State and Government Implementation Committee. Such an approved team would comprise of an eminent African personality and nominees of the envisaged African Commission for Human Rights, Peace and Security Council and the Pan-African Parliament.


At the Abuja meeting the NEPAD Implementation Committee also approved eight Draft Codes and Standards for Economic and Corporate Governance for Africa. These are:

Code of Good Practices on Transparency in Monetary and Financial Policies;
Good of Good Practices on Fiscal Transparency;
Best practices for Budget Transparency;
Guidelines for Public Debt Management;
Principles of Corporate Governance (business ethics);
International Accounting Standards;
International Standards on Auditing; and the
Core Principles for Effective Banking Supervision.

The corporate world in beginning to show a keen interest in NEPAD as evidenced by the attendance of about 900 business people at the NEPAD Financing for Developing Conference in Dakar, Senegal earlier this year. Corporate leaders included representatives from Microsoft, Hewlett Packard, IBM, Chevron, Shell, Petronas, Coca-Cola and Eskom. NEPAD will also be the main topic of discussion between governments of Southern Africa and the private sector at the upcoming World Economic Forum Southern African Summit to be held in South Africa later this year.


South Africa’s interaction with the continent must also primarily be through its membership of SADC. Given the political and economic instability in certain SADC member countries, some "experts" have suggested that South Africa should "ring-fence" itself from the rest of the region. This can never be a policy option for the Government of South Africa. Instead of this view, South Africa’s foreign policy is a principled one based on the view that South Africa cannot be an island of prosperity in a sea of poverty and that the concept of regionalism is becoming increasingly important in order to compete globally.


Broadly, South Africa’s vision for the Southern African region is one of the highest possible degree of economic co-operation, mutual assistance and joint planning of regional development initiatives, leading to integration consistent with socio-economic, environmental and political realities.


SADC, through various protocols, has laid the basis on which regional planning and development in Southern Africa should be pursued. At the SADC Summit held in Blantyre, Malawi in August 2001, attention focussed on the implementation of the restructuring of the operations of the SADC institutions. This restructuring is expected to give the organisation the institutional framework required to support NEPAD. The decision making within the organisation has also been re-examined with proposals that decision making operate on a troika basis. This will undoubtedly create better conditions for the consolidation of democracy in our region.


SADC also provides the desired instrument by means of which member States should move towards economic integration. Thus, SADC, together with the Economic Community of West African States (ECOWAS), the Arab Magreb Union (AMU), Economic Community of Central African States (ECCAS) and the Common Market for Eastern and Southern Africa (COMESA) form the five Regional Economic Communities (RECs) recognised as building blocks of the African Community.


NEPAD is not an event, but a process that will take many years to reach fruition. There will be tremendous challenges; the tasks are enormous especially when conditions on the Continent are taken into account – underdevelopment, the lack of capacity, poverty, conflict.


However, there is no alternative to the success of NEPAD; NEPAD must succeed or the Continent will remain marginalized and underdeveloped. The success of NEPAD is crucial to the reality of African reconstruction and renewal.


Japan’s commitment to Africa’s renewal was formally announced during Prime Minister Mori’s visit. In a keynote address, Mr Mori emphasised Japan’s commitment to Africa’s development and to global peace and security. This policy was adopted by the present Government of Prime Minister Koizumi. Foreign Minister Kawaguchi, in her first major foreign speech, extensively dealt with Africa’s development. We in Africa have, with excitement and anticipation, taken note of Ms Kawaguchi’s statement and noted that she proposed to designate the period leading up to the TICAD III Summit in 2003 as the "Year for Soaring Cooperation with Africa." We wish to invite her to visit South Africa and Africa to, as in her own words, "frankly exchange opinions" on Africa’s renewal.


We welcome and appreciate the enthusiastic way in which Japan has promoted dialogue on NEPAD, particularly in the form of the recent TICAD Ministerial Level Meeting hosted in Tokyo. The meeting acknowledged African ownership of the development process, and the partnership between Africa and its development partners to support African renewal. NEPAD’s alignment with TICAD was formally acknowledged at this meeting. The TICAD III Summit Meeting planned for 2003 will also no doubt provide an opportunity to brief the international community on the progress made with the implementation of NEPAD.


We look forward to the support of Japan at the G-8 Summit in Kananakis in June later this year.


The reform of African institutions is central to meeting the challenges of Africa’s recovery. The AU is a concrete demonstration of the continuation of Africa’s own resolve to deal with the legacy of its past and to address the consequences of underdevelopment, focussing on meeting the human and basic needs of the African peoples.


At its formation, the OAU structured itself to fight for decolonisation of the continent and its structures were geared towards building solidarity and resistance among African nations. The OAU served the continent well and its task has almost been completed. However, the challenges posed by the 21st Century require the restructuring of the OAU into the AU.


New structures within the AU will be established to deal with:


Conflict prevention, management and resolution
The AU will place particular emphasis on conflict prevention, management and resolution and instruments in this regard are being strengthened. According to initial plans, the Central Organ of the Mechanism on Conflict Prevention, Management and Resolution will be changed to an AU Peace and Security Council (PSC), comprising 15 member states.

It is envisaged that membership of the PSC should be based on a set of agreed criteria which will be predicated on the capacity and interest of a country to assume and discharge the responsibilities, and include commitment to uphold the principals enshrined in the Constitutive Act of the African Union.

It is proposed by the PSC should be in permanent session for it to address the daily security challenges facing the continent. Moreover, the PSC should meet at the level of Permanent Representatives, Ministers and Heads of State and Government respectively. The chairmanship of the PSC should be delinked from the Chairmanship of the AU. The questions of permanent membership and veto rights for such members are, however, still under discussion. It is foreseen that there should be a close working relationship between the PSC and the UN, on one hand, and sub-regional mechanisms, on the other.

Discussions and consultations are also taking place on the establishment of a Council of the Wise, comprising highly respected African personalities, to complement the efforts of the envisaged AU Peace and Security Council;


Human rights, democracy, good governance, electoral institutions;
Energy, transport, communications, infrastructure and tourism;
Health, population, migration, labour, social affairs and culture;
Education, youth, human resources, science and technology;

Trade, industry, customs and immigration matters;
Rural economy, agriculture, environment and natural resources;
Economic, monetary and financial policies of the AU, private sector, investment and resource mobilisation.

South Africa is honoured to be hosting the Inauguration Summit of the AU in South Africa in July 2002. As Chair, South Africa will seek to play a constructive role to ensure that the core structures of the AU commence functioning smoothly, namely the Assembly of Heads of State and Government, the Executive Council, the Permanent Representative Committee of Ambassadors and the Commission, other structures of the AU which will be established later. The first year of the AU is crucial for us to set the pace and direction of the organisation for subsequent year.


Chairperson


This year, South Africa will host the World Summit on Sustainable Development in Johannesburg from 26th August to 4th September. The objective of the WSSD is to reinvigorate political commitment at the highest level, involving many Heads of State and Government, for the further implementation of Agenda 21 and other existing international sustainable development targets.


The central objective for developing countries, is the eradication of poverty through the implementation of a comprehensive action orientated programme for sustainable development, with clear time frames and supporting resources. We welcome Japan’s participation at the highest level at this meeting, and we trust that will be able to cooperate to achieve discernible results and a successful outcome of this meeting.


We are also aware that Japan is preparing to host the 3rd World Water Forum in 2003. These are two major events that will focus world attention on the environment and related issues, especially poverty alleviation and underdevelopment.


CONCLUSION

Prime Minister Junichiro Koizumi stated that, "The problem of Africa is one of the most important issues of our global foreign policy."


The Joint-Communique, the "Japan-South Africa Partnership in the New Century," issued on 2nd October 2001, provides a framework for both bilateral and multilateral interaction, and lends additional weight to the growing rapport between Japan and South Africa, the commonalities in the relationship as well as articulating issues important to the African continent.


This year we celebrate the 10th Anniversary of bilateral relations between our two countries. We should use the moment to encourage cultural and educational exchange between our two countries. South Africa will also participate, hopefully with much success, in the World Cup Football tournament to be co-hosted by Japan and South Korea. Again, this provides the opportunity to promote not only sports exchanges, but also tourism.


Since the normalisation of our bilateral relations in 1992, Japan has pointed out that both South Africa and Japan are unique within their regional geographic contexts, and that both are the driving economic forces in their respective regions. In this regard, South Africa, in the intricate network of international relations, also regards Japan as a significant and strategic partner.


We believe that the objective of this meeting is to discuss these opportunities and formulate action plans to transform our ideas into actions. We are confident that the State and official visits and people-to-people contact, and the general agreement concerning issues of bilateral and multilateral interest have added significant momentum to relations. We are eagerly awaiting the visit of their Majesties, the Emperor and Empress to South Africa. The institutional framework we have created will also ensure that progress in achieving common goals may be assessed at regular intervals.


I thank you.

SA-JAPAN INVESTMENTS FROM 1 April 1994 to 21 May 2002

Year Sector Company Investment

1994 ICT Marubeni Equity in SA ICT company

1994 Metals Sumitomo Corporation Manganese

1994 Mining Mitsubishi/Matsushita Natural stone extraction

1994 Auto Mitsubishi Corporation Colt pick-up assembly

1994 Metals Itochu Corporation Ferromanganese

1995 Metals Tosoh Corporation Manganese

1995 Auto Mitsui & Co., Ltd Equity in Automakers

1995 Auto Nissan Diesel Motor Co., Equity in Automakers

1995 Metals Showa Denko/Marubeni Ferrochrome

1995 Metals Mitsui & Co., Ltd Ferrochrome

1995 Metals Nittetsu Shoji Ferrochrome

1996 ICT Mitsubishi Electric Corp Switchgear, air conditioning

1996 ICT Sony Sales & distribution

1996 Metals Mitsui/Japan Metals & Chem. Manganese and ferroalloys

1996 Metals Nissho Iwai/Nisshin Seiko Ferroalloys

1996 Metals Sumitomo/Mizushima Ferromanganese

1996 Auto Toyota Motor Corporation Equity in Toyota SA

1996 Auto Bridgestone Corporation Purchase of Fedstone

1996 Textiles Sanko Keito/Nagawa Mohair yarn production

1997 Metals Nittetsu Shoji Ferrochrome

1997 Mining Komatsu/Itochu Corp Mining equipment &

services

1997 Auto Nissan Motor Co., Ltd. Equity in Automakers

1997 Auto SM-Cyclo Power Transmission

1997 ICT Sanyo Sales & distribution

1998 ICT Daikin Industries Co., Ltd Air conditioning

1999 Auto Nihon Gaishi [NGK] Catalytic converters

1999 Metals Itochu Corporation Equity in ferrochrome

maker

1999 Auto Nissan Motor Co., Ltd Equity in Automakers

2000 Auto Cataler Corporation Catalytic Converters

2000 Auto Calsonic-Kansei Automotive components

2001 Chemicals Sumitomo Chemical Corp Ortho-Creosol-Novolac

2001 Auto Toyota Motor Corporation Equity purchase in TSA

2001 Auto Mitsui & Co., Ltd Capitalizing an autonomous

branch

2001 Chemicals Mitsubishi Chemical Acrylic acids & acrylates

2002 Auto Mitsui/Nippon Denko Ferrovanadium

2002 Auto Bridgestone Expansion of SA plants

2002 Auto Araco Corporation Vehicle interiors & seats


TOTAL INVESTED [or commitment announced publicly] TO 31 March 2002


R6,008-million


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