Johannesburg - It is important to remember that KwaZulu-Natal hosted the inaugural and founding conference for the formation of the AU, hosting all the heads of states from the African continent.
At the founding of the Organisation of African Unity, which was the predecessor to the current AU, African leaders such as Nyerere, Kaunda, Nkrumah and others with their rich fountain of wisdom, made the following commitment:
“The purpose of the Organisation of African Unity shall be to promote unity and solidarity of the African States, and to intensify their co-operation and efforts to achieve a better life for the peoples of Africa.”
Since our founding fathers made that statement, we have asserted our collective spirit and have proclaimed to the world that we will march to a prosperous future as Africans.
Notwithstanding Africa’s challenges, there is good reason to be optimistic for the future well-being of our continent as a new generation, and, indeed, a new breed of African leaders emerge.
The hosting of this African Economic Expansion Summit forms part of our efforts aimed at ensuring that as KZN, we strengthen socio-economic relations between KwaZulu-Natal and the rest of the continent.
The fathers of Free Africa enjoined us to seek first the Political Kingdom. Africa achieved this at the close of the 20th century after bitter struggles against European colonialists, determined to keep Africa as their treasure trove. For centuries the blood and sweat of Africans built Europe and America with nothing to show for the African child. We put an end to this through the sheer determination of African men and women.
IDEAL OF AFRICA
Within just two decades of the African Century, we have redefined the idea of Africa for all time.
The Idea of Africa, to borrow a phrase from the world-renowned Congolese philosopher, Valentine Y Mudimbo in his book by the same title, is one that is peddled by colonialists and most of the so-called free world to this day is one of people barely emerged from the monkey species.
Their idea of Africa is of a people who deserved to be violated as they were for centuries. It is the idea of a continent incapable of feeding itself, let alone advancing to the top of the pile. There are descendants of European colonialists today in this country, who do not tire to tell whoever will listen that they developed our country to this point. They do not tire to tell the ridiculous tale that when Africans attained freedom, they immediately went about destroying the fruits of their work. They will tell you that this or the other African country has gone back 20 years and more!
The real story of Africa is different. As I have already indicated, the story of Africa is the story of hard work and heroic fight for liberation. Africans stood up to the European bullies to shape their own destiny; the destiny of the first ancestors of humanity.
I dwell on this not to denigrate Europeans. Many Europeans and white Americans stood side by side with African freedom fighters especially in the last throes of colonialism. We will always appreciate their hands of friendship and common humanity. America’s civil rights activist Rev Jesse Jackson remains an inspiration to all of us, as he was when he fought for the liberation of South Africa.
We are indebted to him and we pledge our co-operation as the KZN government, as we seek to advance the work of Rainbow PUSH Coalition through the African Economic Expansion Summit.
Speakers before me have highlighted key points in relation to economic expansion. I do wish to emphasise that the province of KwaZulu-Natal is honoured to provide Africa with the largest harbour in Africa – Durban Port.
We are proud to continue the project of the warrior King Shaka kaSenzangakhona, to not waver in connecting Africa into one mighty community.
SERVICE OF AFRICA
A few months ago, President Jacob Zuma officially launched the Dube Trade Port as an economic zone next to the aptly named, King Shaka International Airport. That, too, is in the service of Africa. It is integral to the development corridors through southern Africa and from there to the rest of the continent.
The African Economic Expansion is a unique project. This is a renaissance from below and not from the idle classes; a renaissance shouldered by common citizens of the mother continent.
The global economic meltdown a few years ago, which saw some major European economies sink, shows that South Africa has moved from being a bit player in the global economic sphere to being a player to be reckoned with.
Our membership in Brics announced our arrival in the major leagues of the global economic playing fields. A paradigm shift in the global economic environment is evident. Africa is touted as the next investment destination.
As the undisputed gateway into the rest of Africa and other continents, we believe that we can use the province of KwaZulu-Natal not only for its own benefit, but for the benefit of other provinces as well as countries within the region.
With the two harbours, Richards Bay and Durban, within our province’s boundaries as well as the state-of-the-art Dube Trade Port which boasts an agri-zone, a cyber port, a cargo terminal as well as the King Shaka International Airport, we appreciate that we can create win-win partnerships for our sister countries in our region.
I am convinced that our sister provinces and neighbouring countries can also boast similar advantages but, it is what we do with these comparative and competitive advantages that matters most.
This brings us to the question of who should drive the exploitation of these comparative advantages. As government, we are quite convinced that our own entrepreneurs should lead in this regard. However, this in turn triggers the question: “Do we have entrepreneurs that can and are ready to utilise these advantages?”
BIG ROOM FOR IMPROVEMENT
While I profess no expertise on the subject of the prevalence of entrepreneurs, I can share with this summit our sense that this is one area where there is big room for improvement. While we have made strides in fostering a culture of entrepreneurship as government, we are acutely aware that our interventions may not have yielded the number and quality of entrepreneurs that our epoch warrants.
Sadly, South Africa’s entrepreneurial activity is improving, but still lags behind other emerging markets. According to a study by FNB in 2010, South Africa’s entrepreneurship activity as measured by the TEA (Total Entrepreneurial Activity) or “early stage entrepreneurial activity” index stood at 7.8 percent in 2008, greater than in 2006 (5 percent), but still lower than India-Brazil (11.5 percent-12 percent), Colombia (24.5 percent), Mexico (13.1 percent) and even the US (10.8 percent). TEA measures entrepreneurial activity by looking at the percentage of the active population, people between 25 and 64, who are entrepreneurs in any given country.
This is what we have to address – and address urgently – if we are to be competitive and grow the economy of our respective countries and the region.
If our assessment is correct, then it means that the prospects of local entrepreneurs leading the charge in so far as growing the economy of the region is concerned, then we need to do something drastic, and do it now.
There have been interventions directly aimed at propping small, micro and medium enterprises (SMMEs), by establishing a ministry – all with a view to ensure mainstream economic participation by our people. Likewise, our empowerment initiatives have made a huge difference in transforming our economy, but we are not out of the woods yet. In so far as creating entrepreneurs is concerned, we need to act and act decisively.
In this regard, we need to streamline the work of all stakeholders to avoid duplication and the abuse of the system. The idea about empowerment initiatives is that they assist entrepreneurs as they start out and, after a while, entrepreneurs are expected to graduate from these programmes to stand on their own.
LIFE SUPPORT
Unfortunately, we observe entrepreneurs who use this definitely time-bound assistance as some form of life support. The reality is that at regional and global levels, the competition is stiff, and all entrepreneurs are expected to fend for themselves.
In order to create conditions for entrepreneurs to thrive, it has become clear that the participation of academia, established business and funding agencies cannot be overemphasised.
At this summit, we want to extend an open invitation to all the stakeholders to partner with us as we build new entrepreneurs. In the same breath, all of us should honestly examine ourselves and our modus operandi and approach. In particular, we need to ask ourselves what we are doing to support SMMEs and how entrepreneurship responds to the challenges that our future holds. If we respond to these questions adequately, then we have no doubt that we will be able to realise the potential that our region promises.
We are mindful of the fact that we face immediate challenges as a country and region, such as unacceptably high-unemployment rates and poverty. It is for this reason that we unveiled the new Provincial Growth and Development Plan which provides bold, imaginative and effective strategies to create the millions of new jobs this province needs.
DYNAMIC VISION
It also lays out a dynamic vision for how we can collectively achieve a more developed, democratic, cohesive and equitable economy and society in the context of sustained growth.
The strategy sets out critical markers for employment creation and growth, and identifies where viable changes in the structure and character of production can generate a more inclusive and greener economy.
The economic script of the world has changed and there is no turning back. As the saying goes, we now have to make sure that we do not only think locally, but we act globally. In our case, whatever we do as government must also take into cognisance that we are part of the SADC region.
However, the reality is that while discussions about the directions of countries and provinces happen at the higher level, all the resolutions and decisions that are taken in such forums must find practical expression at local level. It is at the local level that the benefits of regional integration will be felt.
It is therefore our strong belief that in future, we should look at how we can ensure that municipalities, which are part of the countries within the SADC region, have their forums or be part of such discussions in order to specifically look at what role they can play in re-aligning the economic fortunes of our region. If we can have twinning arrangements with cities that are from foreign lands across the seas, what is stopping us from fostering closer working relationships between our municipalities in the African continent?
This is an edited version of a speech delivered by Kwa-Zulu-Natal Premier Senzo Mchunu at the African Economic Expansion Summit held in Durban on Tuesday.