KEYNOTE ADDRESS BY THE HON JEFF RADEBE, MP, MINISTER IN THE PRESIDENCY FOR PLANNING, MONITORING AND EVALUATION AND CHAIRPERSON OF THE NATIONAL PLANNING COMMISSION AT THE KZN GROWTH AND COALITION , BUSINESS LEADERSHIP STRATEGIC WORKSHOP; FAIRMONT ZIMBALI RESORT, DURBAN
24 NOVEMBER 2016
Programme Director,
Acting Premier of KwaZulu-Natal Province, the Hon Sihle Zikalala
Members of the KZN Executive Council
Co-Chairpersons of the KZN Growth Coalition
Business leaders present here
Distinguished Guests
Ladies and Gentlemen,
1. INTRODUCTION
It is with immense pride that I am back in the province of KwaZulu-Natal to witness the significant strides that the province is making in its development endeavours.
I had the privilege of addressing the gala dinner following the Growth Coalition Executive Liaison Workshop in February this year. I came out of that occasion highly inspired because of the foresight and sheer determination that I witnessed from the leadership of the various participating stakeholders.
It is encouraging to see the business leadership working in close collaboration with government structures in this province. It is also fulfilling to note that the key stakeholders in the KwaZulu-Natal Growth Coalition Executive Liaison campaign constantly engage to plan and review the implementation of their strategies in fostering socio-economic development.
A constant liaison between the decision makers in both public and private sectors helps to ensure that the decisions that are taken are implemented and that their objectives are realised. This is even more so when you have an integrated plan that provides a clear framework for the implementation of your developmental strategies.
The KwaZulu-Natal province boasts one of the most comprehensive growth development plans in the whole of South Africa. The KZN Provincial Growth Development Plan (PGDP) presents a clear strategic framework for accelerating and sharing economic growth through catalytic and developmental interventions.
The vision espoused by the PGDS: “Prosperous province with a healthy, secure and skilled population, acting as a gateway to Africa and the world,” presents a mammoth task for the province. The commitment of the province to conducting periodic assessments and annual reviews enhances our ability to measure the progress of these development initiatives.
It is inevitable that with every positive endeavour, there will always be hurdles along the way. Although great strides have been made in the delivery of basic services in most areas of the province, there are still some backlogs that need to be addressed.
The Provincial Growth and Development Plan opines that: “The structural constraints to growth in KZN have been identified as increasing unemployment, poverty and inequality.” These backlogs are a true reflection of the challenges that we face as the nation.
As the Minister in the Presidency responsible for Planning, Monitoring and Evaluation, I am in a privileged position to monitor and oversee the progress or lack of it in our communities across the nine provinces of South Africa. The quality of services, particularly from local municipalities, needs major improvement if we are to make progress as a nation.
The challenges that we face are not insurmountable, but we need to develop effective strategies now so that our children inherit a better and more prosperous South Africa. We must address the triple challenges of unemployment, poverty and inequality which have become an albatross in our project of nation-building.
2. YOUTH UNEMPLOYMENT
This occasion takes place shortly after Statistics South Africa released the latest employment figures in our country. This latest report reveals the grim reality that there is increasing unemployment rate in South Africa.
The number of people looking for work has increased by 239 000, which consequently raises the rate of unemployment. The main victims of this negative trend are the youth. The current unemployment rate among the youth (aged 15–35) is 38%. The major risk with these figures is that high youth unemployment rate breeds violence, crime and substance abuse.
It is also noted that education is a significant factor in labour market outcomes. Those with the education levels of less than matric contribute 60% of the unemployed. On the other hand, unemployment rate among those with tertiary education is recorded at only 13,2%.
We must join hands and combat unemployment especially among the youth. Those who should be at school should continue pursuing their studies until they acquire requisite skills to start working. Businesses should provide skills development opportunities like training, internships and mentorship for young graduates and budding entrepreneurs.
3. NATIONAL DEVELOPMENT PLAN
Employment creation, alongside the eradication of abject poverty and reduction of gross inequalities are some of the core priorities in the National Development Plan (NDP). The NDP puts special emphasis on economic growth because with a thriving economy we will be able to combat this triumvirate of challenges.
The NDP serves as a blue print for us to create a more prosperous South Africa by 2030. It clearly states that South Africa needs faster and more inclusive growth for us to improve the standard of living for the masses of our people.
It is important to note that the NDP is the overarching plan that guides our strategies towards year 2030. A number of supplementary plans are developed to enhance Vision 2030 and help us in measuring our progress towards attaining the objectives of the NDP. At a national level, one of the instruments that have been developed is the Medium Term Strategic Framework (MTSF) for 2014 – 2019.
In the current MTSF, we have prioritised 14 Outcomes as a way of measuring our current performance against our long-term goals. These priority outcomes reflect the milestones that we have to achieve in order for us to be on par with the development targets of Vision 2030. Among these priority outcomes, Quality Basic Education, Improved Health Standards, Reducing Crime, Creating Jobs and Infrastructure Development, are some of the most paramount for us to address as a matter of urgency.
All of these strategies form part of our National Development Plan – Vision 2030. The KZN Provincial Growth and Development Strategy (PGDS) is one of the most powerful instruments that aid the accelerated implementation of the NDP at provincial level. The vision of the PGDS resonates with the society that we envision by 2030.
4. SOCIO-ECONOMIC DEVELOPMENT
In his State of the Nation Address in February last year, the President of the Republic, His Excellency JG Zuma, announced the Nine-Point Plan to grow our economy and create the much needed jobs. The plan includes strategies to accelerate economic growth in both the short-term as well as in a long-term.
Among other things, the Nine-Point Plan highlights “Revitalising agriculture and the agro-processing value chain, Encouraging Private Sector Investment and Operation Phakisa.” The province of KwaZulu-Natal is one of the beneficiaries of the top forty (40) high impact investment projects from various government departments and associated institutions.
Some of the benefiting projects in this province include Co-Generation Independent Power Producer, Clover Agripark in Escort, the Floating Door Project in Richards Bay, CIPLA at the Dube Trade Port, as well as Ugli Agripark in Ezingoleni. These projects together are worth billions of rands and would help us unlock the potential of SMMEs and ensure more effective implementation of higher impact Industrial Policy Action Plan.
There are 12 priority labour sending areas identified as part of the Special Presidential Package (SPP) on the Revitalisation of Distressed Mining communities. Of these, 5 local Municipalities are from this province. These are AbaQulusi, eDumbe, Nongoma, Ulundi, and uPhongolo. The aim is to diversify local and regional economies, to develop alternative economic opportunities during and beyond the life of mines.
Working with the Department of Trade and Industry, the DPME has focused on specific areas to revitalise the local economies in these municipalities. The projects that have been identified include the multimillion Pongola Maize Milling Plant and Active Blue Quarrying.
In a smaller scale, we have projects like Just Veggies, which is a Public Private Partnership business whose primary activities include the production of vegetables for wholesale in the fresh and frozen market in South Africa.
Just Veggies operates as a mentor to rural communities on community owned farmland in South Africa and farms alongside these communities, taking 100% of the product produced across nine (9) farms in the Vryheid region of KwaZulu-Natal.
5. TOURISM
Distinguished guests, I believe that the province of KwaZulu-Natal has not yet fully explored its potential as a tourist destination. Apart from the fact that KwaZulu-Natal is the only province with a surname, and that we only have two seasons – summer and summer, we also have some of the major tourist attraction areas throughout the province.
We should put extra effort to attract domestic tourists much as we continue to attract international tourists. The KwaZulu-Natal province must be the destination of choice for everyone. The influx into our beaches has already begun, and we know that this trend will continue until the end of the holidays early next year.
It is important to preserve our niche market, but we must also begin to sell other tourist attraction areas like the historical sites that are found in different parts of the province.
6. OCEAN ECONOMY
This province has already assumed the privileged status of being the trade gateway of southern Africa because of the strategic position that we occupy, the vast coastline as well as the infrastructure that we possess.
The fact that we have the privilege of boasting the busiest container port in Africa, in the form of the Port of Durban, and Richards Bay is the biggest bulk cargo on the continent, puts us in a good position to increase trade and investment in the country.
Our coastline, the fertile soil and vast tracks of unused land, as well as the strong industrial base, should help us open new opportunities for the production and export of manufactured goods and agricultural products. South Africa’s ocean economy has got a potential to generate an estimated GDP contribution of R129, 177 billion by 2033.
Over the same 20 year period, the number of jobs linked to the ocean economy could rise to 1 million. Four growth areas, with lead departments in each area, were prioritised to achieve this goal, namely: Marine Transport and Manufacturing, Offshore Oil and Gas, Aquaculture; as well as Marie Protection Services and Ocean Governance.
These initiatives are expected to increase the ocean economy’s GDP contribution by approximately R26 billion by 2019 and lead to the creation of approximately 65 000 jobs over the same period. Significant progress has been made in the implementation, especially creating an enabling environment for growth in the respective focus areas.
For Marine Transport and Manufacturing we have focused our attention at improving port infrastructure and facilities. Transnet National Ports Authority (TNPA) and Transnet SOC Limited have adopted a Public- Private -Partnership (PPP) model to finance new Operation Phakisa infrastructure and TNPA has committed R7 billion for public sector investment.
Ladies and Gentlemen, the City of EThekwini has a world class infrastructure network, a skilled workforce with the potential to meet future skills needs and ample political will to reaffirm the municipality as a leading port and industrial hub. You are certainly poised for steady and inclusive economic growth and increased employment from several major catalytic projects emerging from Operation Phakisa for the Oceans Economy.
This province will indeed become the economic hub and gateway to the rest of Africa and the world, only if we can optimise the use of all the resources available at our disposal.
7. GOVERNMENT AND BUSINESS WORKING TOGETHER
We embark on all these initiatives conscious of the fact that our greatest asset is human capital. We must invest in skills development so that we can produce men and women who are capable of running profitable businesses and make a meaningful contribution to the economic growth of our country.
We must facilitate sustainable economic growth, reduce growing inequalities and promote the sustainability of our environment. This province is home to about 10.6 million people, and remains the second largest province in terms of its population.
Government alone is not capable of creating jobs for each and every person that is currently unemployed. However, through sound partnerships and hard work we can make significant contribution towards the improvement of the standards of living for the majority of our people.
We must strengthen collaboration and partnerships amongst the various social partners, especially business, civil society, state owned enterprises and the different spheres of government. The nexus between government, civil society and business is a potent combination that can create a more dynamic, inclusive and thriving economic environment.
The realisation of all these ambitions takes hard work, unity of purpose and visionary leadership. I am confident that the KwaZulu-Natal Growth Coalition has got what it takes to take us to Vision 2030. In closing, I would like to leave you with these words from Collin Powell:
“There are no secrets to success. It is the result of preparation, hard work, and learning from failure.”
Thank you.
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Issued by Department of Planning, Monitoring and Evaluation (DPME)
24 November 2016
