We are ready to steer the province through a time of technological and other change that will fundamentally alter the way we live, work and relate to one another, writes Sihle Zikalala.
Durban - Early this year, world leaders gathered in Davos, Switzerland, at the World Economic Forum to discuss the topic “The Fourth Industrial Revolution”, and how countries globally needed to respond to this revolution brought about by the rapid change of technology.
The topic, according to the World Economic Forum, was inspired by the fact that the “world stands on the brink of a technological revolution that will fundamentally alter the way we live, work and relate to another. In its scale, scope and complexity, the transformation will be unlike anything humankind has experienced, with the potential to raise global income and improve the quality of life for populations around the world”.
Spurred on by the technological advancements of the 21st century, the architecture of the global economy is rapidly changing at a pace no one could have anticipated.
The biggest company in the world today by market capitalisation is no longer a company that extracts commodities from the belly of the earth, but Apple - a multinational technological giant.
Technology has also given rise to the concept of the “disrupters”, companies which are fast altering the global economic landscape by introducing new and innovative business ideas. These companies, such as Uber, are heeding what Henry Ford said: “If I had asked customers what they wanted, they would have said a faster horse.”
It is against this backdrop that we have assumed the responsibility to lead the Department of Economic Development, Tourism and Environmental Affairs in KwaZulu-Natal.
We have taken the stewardship of this department at a time when emerging markets in the world are increasingly playing a key role in altering the global economic landscape, with the emergence of Brics, notwithstanding the economic challenges they are facing.
Africa is emerging as the continent of the future, with the narrative of its rising having gained currency in global markets.
Critically, we have used these difficult economic times to rally all stakeholders for a common goal to grow the economy, in line with the old African saying that a boat can only go forward if all stakeholders are rowing in sync.
In this regard, since we were accorded this responsibility by the premier of the province, Willies Mchunu, the question that has been uppermost in the minds of many people is: What are our immediate priorities? The first thing we want to underscore is that we do not come to the department with a magic wand, seeking to deconstruct that which has been neatly stitched together as part of the province’s economic patchwork quilt.
We wish to thank our predecessors, including Michael Mabuyakhulu, who have worked with tenacity to put in place the foundation for all of us.
In the ANC we have always believed that leadership is no different to a relay race. Now that the baton has been handed to us, we pledge to run with it, working in tandem with all stakeholders in the province. We will be embarking on stakeholder engagement exercises to ensure this.
We have always subscribed to the idea that the challenges facing KwaZulu-Natal require all stakeholders, including business, labour, community and civil society, to work together. However, the reality is that it cannot be business as usual if we want to create an inclusive economy in which everyone has a stake.
We believe that radical economic transformation is a prerequisite for all stakeholders if we want to create a globally competitive province, anchored on unlocking the potential of all the citizens of the province.
In this regard, we will be focusing on ensuring that our people who were previously relegated to the fringes of the economy are brought into the mainstream. This we will do by using, among other instruments, co-operatives and small, medium and micro enterprises (SMMEs) to drive the agenda of radical economic transformation.
We want all government departments, as a starting point, to put set-asides for co-operatives, youth- and women-owned businesses in line with the resolutions of the procurement indaba which was held last year.
And we want to go a step further and monitor the practical implementation of this resolution. This does not mean that we are promoting protectionism in the economy. The reality is that this government cannot fold its arms and watch from the sidelines as our people become economic spectators in their own country.
However, in implementing these measures we want to ensure that we do not unwittingly promote economic distortions and inefficiencies. As the ANC, we have always subscribed to the mixed economy, and our view is that, given the challenges of our times, markets cannot be left to their own devices. As the government, we will continue to unashamedly use our economic leverage to prise open the doors of economic opportunities for our people.
This is borne out of the fact that even globally, the notion of a laissez-faire economy anchored in the belief that markets are the only avenue for the efficient and equitable allocation of resources, has become an anathema since the 2008 global economic meltdown.
We will also spare no effort in assisting SMMEs so they can play a key role in the economy. Research all over the world has shown that they are critical for economic growth and development.
Critically, we want to rally all stakeholders in the economy to work in tandem to stimulate the economy in the province.
Growing the economy and at the same time creating employment remain our top priority. For our province to become globally competitive, we need to harness the collective human potential of the people.
It is for this reason that we have identified the cutting of red tape as one of the key areas of focus to ensure ease of doing business in the province.
The fact of the matter is that the province is competing with other economic destinations globally to attract the shrinking pie of net global investment. If we don’t up our game and make our province an investment-friendly destination of choice, investors will simply take their money and invest it elsewhere, leaving our people wallowing in despair.
We cannot afford that. We have committed ourselves to ensuring that we create one-stop-shop centres for investors even in secondary towns such as Port Shepstone, Richards Bay, Ladysmith and Newcastle.
This will ensure that investment opportunities are spread evenly throughout the province. We will also be focusing with much vigour on stimulating manufacturing, particularly in the textile sector, throughout the province.
And we will work hard to identify and support black industrialists in the province, in partnership with national government. For our economy to grow rapidly, we need to ensure that as government we create the environment for the previously disadvantaged to play a role, especially in sectors where the barriers to entry are high.
The need to completely change the structure of the apartheid economy, which produces inequality skewed along racial lines, also means that we need to focus on building township and rural economies. But most importantly, we will also work flat out to increase tourist arrivals to the province of KwaZulu-Natal.
According to the UN World Tourism Organisation, the international tourist arrivals were up by 4% to reach a record of 1.2 billion in 2015. We are committed to work hard to get a slice of these global tourism arrivals, attracting even more international airlines to KwaZulu-Natal.
Last year the province added another feather to its aviation cap when it attracted Qatar Airways, Ethiopian Airlines and Turkish Airlines, which all fly directly to the King Shaka International Airport.
We need to sustain this momentum by attracting even more airlines to the province, while helping the existing ones to sustain their operations.
We will also see to it that the tourism catalytic projects such as the Drakensberg Cable Car are given renewed impetus.
The transformation of the tourism industry will be at the summit of our list of priorities. It cannot be correct that our people interface with the tourism industry as waitresses and front line staff only.
Working in tandem with the development finance institutions, we want to see more hotels and tourism establishments that will be owned by black people.
The attraction of more investments to the two special economic zones, the Dube Trade Port and the Richards Bay Industrial Zone, will also be of critical importance.
But for KwaZulu-Natal to be part of the fourth industrial revolution, we need to intensify our efforts at internet connectivity. As we said earlier, the biggest inventions in the world today are technologically driven.
For us to ride on this wave of the technological evolution, we need to ensure the speedy roll-out of broadband throughout the province. Our vision is to create a province where you can get connection whether you are at a taxi rank or in a hotel.
Lastly, by its very nature the change of leadership can be unsettling at times. But we want to assure all stakeholders, including business, labour, communities and civil society, that in them we see partners who will work with us to take this province to another economic level.
At times we will have differences about our approaches to how we need to upscale investment in the province. But, those differences should not distract all of us from our singularity of purpose: to make this province a great place for the generations to come.
In this regard, we want the people of our province to make a critical evaluation of our work.
However, that criticism must be tempered by the reality that we are in this together. We stand on the cusp of greatness only if we can harness the collective strength of everyone in the province of KwaZulu-Natal.
This will ensure that, in the fullness of time, we will be counted among men and women who made their humble contribution to making this province great.
* Zikalala is the KwaZulu-Natal MEC for Economic Development, Tourism and Environmental Affairs.
** The views expressed here do not necessarily reflect those of Independent Media.
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