Speech delivered by the Deputy President, Mrs Phumzile Mlambo-Ngcuka,
on the occasion of the Official Visit to Indonesia addressing Members of the Indonesian
Council on World Affairs (ICWA)
Your Excellency, Vice President Muhammad
Ministers and Deputy Ministers from both governments,
Members of the diplomatic community,
Senior officials from
Business community representatives,
On behalf of the government, the people and the President
of the Republic of South Africa allow me to convey my special thanks to Vice President
Muhammad Jusuf Kalla for the kind invitation to pay an official visit to Indonesia.
As South Africans we are deeply honoured to be in the presence of our Indonesian
friends and we believe our visit to your country will be most productive at the
level of strengthening our ties at both a political and economic level.
visit here was further strengthened during his Excellency, Muhammad Jusuf Kalla
to South Africa. Our people still remember that visit. Our visit was elevated
above an ordinary bi-national by our head of State; it is now a strategic partnership.
This confirms the convergence of views between our countries regarding
issues of global, political and economic importance. We agree on the need for
a fair and equitable distribution of the benefits of globalisation and on the
importance of making an impact on the lives of millions of people internationally
who continue to live in conditions of deprivation and poverty.
to work even harder to make this strategic partnership a reality and concretise
plans for economic corporations to increase trade and investment for both our
countries. The proposed flagship project could see Indonesians and other Asian
countries ready to taking connectivity with Africa to greater heights.
are looking forward to the Indonesian trade delegation that will visit South Africa
in May led by the Minister of Trade and Industry.
South Africa also offers
great opportunities for collaboration in Research and Development (R&D) many
universities are global leaders in many fields such as anthropology, technology,
mining, science and mineral beneficiation. All this offer exciting opportunities
for collaborations with our institutions of high learning and students while at
the same time offering unique tourism experience.
We are glad that our
Minister of Science and Technology Mosibudi Mangena made excellent contact during
his visit here and we are quite confident that concrete plans on scientific and
technology research will emerge.
On the economic front we seek greater
co-operation with business at many levels.
(1) Small business in Indonesia
is much advanced.
- With South Africa hosting the 2010 Soccer World
Cup this co-operation can materialise around joint ventures between small businesses
or souvenir manufacturing in South Africa, among other areas.
- As part
of our Accelerated and Shared Growth Initiative for South Africa (AsgiSA), we
would like to see a significant contribution to the Gross Domestic Product (GDP)
from small, medium and micro enterprises (SMMEs), as part of sharing of the economy.
We note that Indonesia derives 40 percent of their GDP from SMMEs this is an area
of collaboration both government and business to business as there are lot of
lessons for South Africa.
It is important to highlight that we welcome
the participation of the Indonesian companies and that further discussions need
to happen on a clear defined mechanism for co-operation including attending to
Intellectual Property Rights matters together with FIFA and SAFA and AsgiSA imperatives
of increasing job creation and manufacturing in South Africa.
(2) Our country
has adopted a strategy for AsgiSA, which is aimed at accelerating the pace of
economic growth to a minimum of six percent by 2014 and halving unemployment.
Our economy in the last 12 years has grown consistently at an average four
percent of the GDP and at this point we are around 4.5 percent.
the indicators for our economy has grown over the last decade are:
have received credit rating from reputed international agencies like standard
and poor and Moodley of a Triple B Plus (BBB+)
- Our deficit as a percentage
of the GDP has been reduced from eight percent in 1994 to 0.6, in 2006;
inflation rate has come down from 10 percent in 944 to 3.8 percent in 2006.
Direct Investments (FDIs) inflows are at their strongest at the moment, driven
by strong business confidence e.g.
(i) Absa - Barclays deal,
Vodacom deal just to mention a few of the international companies who have invested
in South Africa.
South Africa is globally recognised
for its leading role in cutting edge technology and innovation especially in the
- Gas to liquid fuel conversion and
- Coal to oil conversion.
South African institutions like Mintek and Council of Scientific
and Industrial Research (CSIR) are also leaders in mineral technology and scientific
Because of the fiscal discipline that we have applied
since 1994 South Africa has experienced strong economic growth; we feel we are
poised to provide universal access to basic services that were around 30 percent
in 1994. Now over 60 percent of our population have clean water, 70 percent have
access to electricity and the government has provided over 10 million poor people
The growth in the economy cannot be managed with our current
infrastructure so in AsgiSA we need massive investment in infrastructure to deal
with backlog and future demand.
Our investment aims to unlock private sector
investment by creating efficient logistics for goods, service and people.
is going to the following areas:
- R370 billion over the next three
to five years will be spent in infrastructure development in companies like:
national power/electricity supplier is allocated R93 billion,
responsible for developing our ports and rails is allocated R40 billion,
African Airways national airline will spend R8,5 billion to develop its infrastructure,
infrastructure will be allocated R5,2 billion,
- Also the Airports Company
South Africa (ACSA) will receive an allocation and the rest will go towards Social
Key sectors that will be given attention include
tourism, Business Process Outsourcing (BPO), bio fuels, mineral beneficiation,
agriculture and agro-business, forestry, paper and pulp, textiles and clothing
and the creative industries as well as second economy interventions aimed at ensuring
that our economy is inclusive and benefits all.
In trade if we look carefully
at all angles we can see opportunities. We acknowledge that the single greatest
impediment to South Africa's shared economic growth and development as well as
private investment programmes is our shortage of skills at all levels such as
engineers, scientists and financial-personnel, project managers, information technology
(IT) specialists and skilled technical employees such as artisans and information
technology technicians and local government technicians and other managers that
are critically needed as the economy moves into high gear and for service delivery.
One of the fundamental pillars of Joint Initiative for Priority Skills
Acquisitions (JIPSA) is the contribution of the Department of Foreign Affairs
and embassies in sourcing and attracting scares skills for international community
to assist government to train in foreign academic institutions and for international
placements where South Africa can train people through placements in foreign private
companies and government as well as government related institutions.
In conclusion I would like once again to sincerely thank
Vice President Muhammad Jusuf Kalla and the Indonesia people for the kind invitation
bestowed on my delegation and I. May the special friendship between our countries
and the goodwill between our people continue to thrive as we work towards achieving
our shared vision of creating a better world for all.
I thank you!
by: The Presidency
24 April 2006