Remarks by Deputy President Shipokosa Paulus Mashatile during the Bloomberg Roundtable Discussion, Bloomberg Offices, London, 30 September 2024
Programme Director,
Ministers and Deputy Ministers from South Africa,
Bloomberg Executive Members in attendance,
Distinguished guests,
Ladies and gentlemen,
Good morning.
It is an honour to be here today to be part of this Bloomberg Roundtable discussions.
My delegation and I are here in the United Kingdom to build on the outcomes of the State Visit by President Cyril Ramaphosa in 2022, with a specific focus on how we can work together to ensure inclusive economic growth, address and respond to climate change challenges and the just transition; and ensure a balance and increase of trade between our two countries.
In a nutshell, our strategic objectives will therefore include:
- Identify new ways to grow the South African economy through the promotion of trade and investment between South Africa and the UK.
- Strengthening economic cooperation with the UK in support of the Government’s strategic priorities, specifically:
a) advancing inclusive and sustainable economic growth; and
b) addressing poverty and the high cost of living.
- Strengthen our bilateral partnership in a number of sectors, but specifically in terms of trade, investment, skills development, science, innovation, tourism, and the Just Energy Transition.
Ladies and gentlemen,
All of these major sectors aim to advance the Government of National Unity’s strategic priorities of achieving sustainable economic growth, alleviating poverty and the high cost of living, and developing an ethical, capable developmental state.
Speaking of GNU, it was chosen by our voters. Our people voted for us to collaborate to achieve their goal of creating better employment opportunities and equal economic growth in all facets of society.
The GNU, which is comprised of 10 parties, is working together to ensure that we do not derail our efforts to reform society for the better. It is the best tactical option for us to move the country ahead, putting our differences aside for the benefit of our great nation.
Today, we are here to assure those who have invested in our country and those who intend to invest in South Africa that the GNU is working together to create a conducive environment for businesses to strive.
The GNU will continue to strengthen our trade and bilateral relations as it has been for many decades. As the new Government, we will continue to hold the United Kingdom in a special place in our hearts, not only due to our historical ties but also because of the immense potential for collaboration and growth that exists between our two countries.
By fostering stronger trade and investment relationships, we aim to create a win-win situation for both nations that will bring economic prosperity and stability.
Ladies and gentlemen,
We are aware that both countries are in a crucial juncture in our respective economic development. We are both facing various challenges impacting on our stagnant economic growth due to a number of reasons, including the effects of the COVID-19 pandemic and the energy crisis, and the Russia-Ukraine war.
South Africa is committed to reviving our economy and in this regard, we have made notable progress in terms of economic growth and development.
Through initiatives such as Economic Reconstruction and Recovery Plan (ERRP), we are prioritising spending across infrastructure, providing employment stimulus to sustain jobs and implementing measures to deepen local industrialisation. South Africa’s Economic Recovery Plan is underpinned by a social compact between Government, business and labour, and sector representatives.
We urge the UK businesses to deepen their investment ties with South Africa as we aim to accelerate our walk on the path to recovery. We assure the investors that investments in South Africa are secure. Our business environment is stable as is the political environment and this is supported policy certainty and regulatory safeguards.
As Government, we have also taken a path to focus on the discipline of execution, through the sustained implementation of the existing structural reform plans being addressed by Operation Vulindlela ‘clear the path’ (OV), a Task Team in The Presidency.
Its successes include boosting investment in electricity generation and drawing up plans that are now being implemented, to allow more private participation in the country’s freight-rail network and reform its byzantine work permit regime.
Operation Vulindlela has already unlocked R500 billion in investment. According to the Stellenbosch-based Bureau for Economic Research, if the reforms implemented under the programme take hold, economic growth may accelerate to 3.5 per cent by 2029.
We have also implemented measures to deal with load shedding which have already showed results. As part of a comprehensive restructuring process, we are unbundling utility into three distinct companies of transmission, distribution, and generation.
As the world and South Africa address climate change and the critical need to lower emissions and move towards a just transition, we have a successful Renewable Energy Independent Power Producer Procurement Programme. This has attracted over R209 billion in investment and added much-needed capacity to our electricity grid.
We invite you to come and invest in the renewables as such, a system for private sector investment is in development. We are expediting funding for investment-ready projects in all areas of the just energy transition.
Since local mineral beneficiation can boost employment and development, we also concentrate on local beneficiation strategies for the South African minerals sector. Therefore, a cooperation focused on key minerals would turn the extractive industry into a mutually beneficial strategic economic cooperation.
Collaboration with the UK government is crucial in achieving our goals of building an inclusive economy. The UK has a long history of economic development and innovation, and we can learn a great deal from your experiences.
By working together, we can achieve much more.
As a country, we are also looking at expanding our investment in the UK because we consider you to be a major economic powerhouse with a diverse and dynamic market that offers numerous opportunities for our businesses to expand and thrive. We want to unlock new avenues for growth and development.
By strengthening our trade ties with the UK, we hope to diversify our export markets, reducing our dependency on a single market and making our economy more resilient to external shocks. This will not only benefit our businesses, but also contribute to the overall economic growth and stability of both our nations.
Furthermore, enhancing our investment relationship with the UK will open up new sources of funding and expertise that can support key sectors of our economy, such as infrastructure, manufacturing, and technology.
By working together, we can leverage each other’s strengths and resources to promote economic growth, create job opportunities, and improve the standard of living for all our citizens.
We are committed to fostering a strong and mutually beneficial relationship with the UK government, based on shared values of democracy, freedom, and economic prosperity. Together, we can overcome the challenges that lie ahead and build a better future for our nations and our people.
Our visit to the UK is a testament to our commitment to building strong and mutually beneficial partnerships that will drive sustainable growth and prosperity for both nations. By working together, we can unlock the full potential of our commercial ties and create a brighter future for our citizens.
In conclusion, I want to reiterate our commitment to building an inclusive economy in South Africa and to strengthening our collaboration with the UK government. Together, we can create a brighter future for all our citizens and ensure that our economies continue to grow and thrive.
Thank you for your attention, and I look forward to working together with all of you in achieving our shared goals.
I thank you.
Issued by: The Presidency
Pretoria