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The Rt. Hon. Patricia HewittBusiness Unlimited : Investing in South Africa Conference |
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Minister Erwin, ladies and gentlemen, I am delighted to be able to address today's conference. Working in business before being elected an MP in 1997, I had the good fortune to pay several visits to South Africa. I learnt a lot from colleagues there. So it is a particular pleasure, as the new Secretary of State for Trade and Industry, and on behalf of the UK Government, to extend a warm welcome to President Mbeki, Alec Erwin and our other distinguished guests from South Africa. It is a pleasure to also see so many representatives of British companies in the audience. Today's event follows on from the successful Celebrate South Africa festival. A great idea which underlines the strong relationship between Britain and modern South Africa. It looks back to the solidarity established with the anti-apartheid movement. But it also looks forward to how we can strengthen our extensive cultural and economic links between our two countries. The theme of partnership was therefore at the heart of the festival and also this conference. Today's event is about the business opportunities for British business in South Africa. We have no doubt about South Africa's attractiveness as a business partner for UK companies. Not only for large companies but also for smaller firms. Two way trade between our countries was worth around £5 billion last year - a substantial increase on the year before that was no doubt helped by the agreement between the EU and South Africa on Trade, Development and Co-operation. That shows the benefit of opening up markets. Benefits we can expect if we open trade through the WTO. The UK, as a member of the EU, wants to work with South Africa to enhance the global trading system. In the EU we have set ourselves the task of working for the launch of a Round of trade negotiations in the WTO later this year. A Round that can - that must - deliver economic gains to developing and developed countries alike. I believe the UK and South Africa share that vision. I know we are both doing all we can to build consensus with other trading partners in the run-up to the WTO Ministerial in November. A successful New Round would be the single greatest boost that governments could give to their business and economies: a major contribution to prosperity and the quality of life for all our citizens. British companies continue to be the No. 1 investors in South Africa with total investment now at over £11 billion. More and more of our companies are beginning to see South Africa as a natural hub for their regional business interests. As President Mbeki made clear this morning, South Africa is geared for growth. Sound economic management is providing the basis for an open, growing and adaptable economy. GDP growth has risen significantly, inflation is falling, employment has increased by over one million and the budget deficit is now down from 10% in 1993 to well under 3% of GDP. Gordon Brown and your Minister of Finance, Trevor Manuel, clearly have a lot in common! This economic management is matched with robust financial, legal and regulatory systems. And alongside this, since 1994 the South African Government has had an impressive record of delivery on improvements to fundamental infrastructure. At the same time the Government is driving forward a public private partnership programme. I know Trade Partners UK have been working closely with the newly established Public Private Partnership Unit within the South African Department of Finance to promote and take forward PPPs. I'm pleased to say British companies have already been involved in a number of projects in health, water, railways, and ports. All of this means that this is an excellent time for British companies to look seriously at the South African market. This is why our new trade development and promotion organisation, Trade Partners UK, has been actively promoting the opportunities to UK companies. South Africa will continue to remain a target market for the UK. The UK/South Africa SME Partnership Programme continues to develop business partnerships between UK and South African small and medium sized companies, building on 20 successful partnerships in its first year, it now has a target of 30 this year. The UK Government is also supporting investment with the Business Linkages Challenge Fund, which provides match funding for UK companies investing in South Africa to form partnerships which bring social as well as economic benefits. There is literature on both forms of assistance in the information packs that you have been given today. I am also delighted that the UK government and business are working together in South Africa to empower the next generation. UK technical colleges are developing close links with their South African counterparts as part of the South African education reform programme and the process of building better links between education and industry, facilitated by the UK's Education and Training Exports Group, the British Council, and Trade Partners UK. Together with the Free State, Gauteng, and the North West provinces, Marconi are designing an e-learning project to equip young South Africans with the IT skills they are going to need to work in today's businesses. A centre in Johannesburg will deliver IT learning both there and, using telecommunications and IT in the learning process too, in the other provinces in a pilot programme due to start later this year. It is all part of South Africa's education reform, a good example of using the new technologies to teach the new technologies and of a public private partnership. This should be a two way street. I'm pleased that the strong links between our two countries are also promoting South African investment here. The UK is the No.1 destination for foreign direct investment into Europe. Ties of friendship and language make us the ideal base for South African companies who wish to tackle the wider European market. Yesterday I was in the West Midlands - and I know Alec Erwin was in Birmingham at the same time - where there are 15 South African owned companies employing 2,000 people - including in internet software and financial services. Although most South African investment in the UK is in the form of mergers or acquisitions we are very encouraged by the increasing interest in opening new operations here by high tech South African companies. For example we were recently delighted to welcome the opening of an office here by EngNet a South African Internet company which operates an on-line directory for the engineering industry. As Mashadu Romano said earlier, we are all connected, all inter-dependent in the global economy of the 21st century. We must work together - Government and business in both our countries - to create wealth, conquer poverty and promote opportunities for all. |
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Other speeches by The Rt. Hon. Patricia Hewitt
(the following are available from the archive) |
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