South African History Online

Speech by President Nelson Mandela at the Banquet for the president's award for export achievement

Johannesburg, 24 November 1994

Minister of Trade and Industry Director-General of Trade and Industry Ladies
and gentlemen

It is a privilege as well as a pleasure to present awards and thus help
acknowledge and encourage outstanding achievement.

I therefore welcome the opportunity to present the Award for Export
Achievement, in this first year of democratic government in our country. I feel
honoured to be in the company of the cream of South Africa's exporting
community.

We are all agreed on the critical role of exports in generating sustained
economic growth. We are at one that a vibrant export industry is vital for
meeting our primary objective, a better life for all South Africans.

Agreement on what is to be achieved is, however, one thing. Clarity on the
steps needed, is another. More so still, is the implementation of what has to be
done. This is especially so in the changed environment in which we find
ourselves, as a nation in general and, in particular, as far as exporters are
concerned.

As we applaud this year's winners of the President's Award for Export
Achievement, we can celebrate some export success as a nation.

Despite serious recession in many countries, South African companies
continued even to penetrate new markets. Our export performance this year
increased by 14% until the end of August compared with last year. With stronger
economic growth forecast for most of our major trading partners this trend
should continue.

But even as we note these positive developments, we must acknowledge that the
number of successful, regular, committed exporters is rather limited for a
country with an economy as open as ours. More than that, our economic and
trading environment, internal and internal and international, is altering
radically and rapidly. Opportunities on a scale far beyond those to which we are
accustomed, are opening up. And so are the challenges. We have to ask, is the
business community gearing up for the challenge with sufficient seriousness,
boldness and clarity?

The Government recently had to make the difficult decision to scale down the
General Export Incentive Scheme and to terminate it by the end of 1997. Our own
financial constraints and our obliga- tions under GATT necessitated that
decision. Measures to help firms become more competitive are being examined in
close co-operation with the labour- and business sectors.

The new international openings are being investigated and expanded by the
government with a view to obtaining the most favourable terms and opportunities
for South African exporters.

The extension of special tariff preferential treatment to South Africa by
several countries individually, such as the USA, Japan, Canada and Norway, as
well as by the European Union as a trade bloc, has widened access to important
international markets.

The European Union, our biggest trading partner, has also indicated its
willingness to negotiate a long-term relationship with South Africa. This brings
the possibility of even greater market access for South African products than
what is normally granted under the European Union's system of preferential
tariffs. This year also saw the signing of the United States / South Africa
Business Development Committee Agreement, aimed at facilitating the development
of commercial relations between the two countries.

Further advantages for South African exporters will result from the recent
signing of the Marrakesh agreement wiccudh latest round of multilateral
negotiations under the GATT - the so-called Uruguay round. We seek to involve
all local organisations and economic sectors affected to ensure that our
commitments are fulfilled in ways that bring the maximum benefits to our
economy.

The changes taking place are in many instances most dramatic in our trade
relations with the rest of the African continent. The preliminary trade figures
for this year show that in the period since the acceptance of South Africa into
the community of African nations, trade with African countries has grown to the
extent that several African countries are now in the top twenty of our trading
partners.

This increasingly African orientation will be enhanced by the lifting of
United Nations restrictions on its agencies sourcing supplies and services from
South Africa. South African involvement in regional trade is bound to flourish
with our acceptance into the Southern African Development Community. The depth
of our involvement in, and trade with, Africa is encouraging, as is the myriad
of opportunities for all business, but in particular for small and medium-sized
enterprises.

To seize all these opportunities, however, will require concerted and joint
efforts by government, business and labour.

The direction of government's economic policy is clear: it is creating an
environment in which businesses, big and small, will prosper. But only if they
show bold enterprise and initiative.

The government is committed to facilitating the processes of restructuring
which are essential if South Africa is to become internationally competitive.
The whole range of services provided to exports is being reviewed in order to
make the most strategic use of limited resources. The export extension services
are being made. more client-oriented and better suited to cater for the needs of
small and medium size enterprises.

But no amount of support from government can bring success unless businesses
are ready to show their worth on the highly competitive international markets
that are now open to them. This includes markets which have not been
traditionally open to South Africa, such as India.

Some of the openings are conditional on our exports being produced in
enterprises meeting international standards concerning labour relations and
environment. This should be taken as an incentive to further raise our
standards.

Success in meeting these challenges will be reflected in next year's awards.
We will then be able to include additional factors such as commitment to human
resource development, employment creation, labour relations and innovation.
Smaller exporters will also be given a chance of competing on an equitable
basis.

Congratulations to the winners! I am convinced that, with the new
opportunities and challenges, all of us will be able to show our mettle.

I wish you every success in your efforts and look forward to even greater
achievements next year.