South African History Online

Speech by President Nelson Mandela to the 19th Frankel Pollak Investment Conference

20 February 1996

Ladies and gentlemen,

Though Frankel Pollak have organised many investment conferences, this is
only the second since South Africa became a democracy.

Much of what were hopes and intentions at the time of last year's conference
are steadily becoming reality. The year that has passed has confirmed our
government's success in creating a climate friendly to investment and
enterprise.

These policies are finding their reward in a positive economic outlook
without precedent in this country. It is most welcome and very encouraging that
this year's conference has attracted such eminent participants.

The effect of our policies is being most immediately felt in a higher rate of
economic growth than anticipated. With the economy buoyed up by a substantial
increase in domestic fixed investment and strong capital inflows, the outlook
for the coming year is more positive still.

The environment that has made this possible is both economic and political.

Fiscal and financial discipline; measures to open up our previously protected
economy; and the setting up of a one-stop investment centre are amongst the main
ingredients of the new economic framework. The lifting of exchange control
regulations is now only a matter of timing and detail.

Politically, our new democratic institutions have taken firm root and won the
respect of all sectors of our society. In every sphere we are benefiting from a
powerful new sense of a common national identity. This new patriotism draws
strength from the progress we have made in overcoming the enforced divisions of
the past.

We celebrate these achievements, but not because we believe we have reached
our goals. On the contrary we have far to go. But the progress we have made
gives us the confidence to identify frankly and objectively the measures which
we must take in order to move beyond our present limits.

In particular, the growth we are enjoying needs to be raised to a still
higher level. We must make an impact on unemployment. We must produce the
resources to improve the people's quality of life. We need to avoid being
constrained by the balance of payments and by skills shortages.

The achievement of these objectives does require new investment. But more
than that, these investments should flow in particular directions: into
infrastructure; into sectors which earn foreign exchange; and into people, so
that the country's productivity can be enhanced.

New foreign investment is critical in introducing new technologies and work
practices. It can, through partnerships with those previously excluded from
business, help promote the development of small and medium enterprises.

To bring about all this will call for all role-players to move beyond
"business as usual". Organised labour, the private sector and government each
have their challenge to meet.

For its part government is committed to maintaining those policies which have
begun to bring success. It is working with labour and business on the
supply-side measures needed to promote competitiveness, job-creation and
exports.

The participation in this conference of the Minister of Finance, the Minister
of Public Enterprises and the Governor of the South African Reserve Bank, as
well as their message to you, will leave you in no doubt as to the depth of our
government's resolve to meet these challenges.

For those in private sector who are decision-makers in matters of investment,
the need is for bold initiatives to seize the opportunities. Together let us
march into a period of sustained growth and development.

Ladies and gentlemen;

I am only sorry that I cannot be with you today. I wish you well in your
deliberations.

May we long work in partnership!

Issued by: Office of the President