South African History Online

Speech by President Nelson Mandela at the Eastern Cape investor's conference

East London, 7 November 1997

Premier Stofile;
Cabinet Ministers and MECs;
Members of the
Provincial and National Legislatures;
Distinguished Guests,

It is a special pleasure to welcome so many distinguished foreign and local
visitors to the region of my birth and where I spent my formative years.
Whenever I come here I am struck by the irony of its neglect by apartheid. I say
this, not because it is one of my homes, but because after having traveled to
many distant places, I still find the Eastern Cape to be a region full of rich
unused potential.

The legacy of apartheid is all too obvious in the region's high unemployment
rate; in its visible disparities; and in the evident burden of poverty. This is
a story repeated to varying degrees across our country, the product of a system
whose economy was oriented towards the needs of a minority and distorted by
protection.

Our Reconstruction and Development Programme is transforming our society in
order to deal with this legacy. Amongst other things it brings us the double
challenge of reorienting our economy towards the needs of the whole of South
Africa while at the same time entering a globalised and competitive world
market.

This conference is an important part of that process. It represents the
partnership of public and private sectors which is essential for growth and
development.

A broad partnership, of all sectors of society has been the driving force
behind all our achievements, be it political stability; the increasing impact of
our programmes to meet social needs; the launch of development initiatives like
the Maputo corridor; or the realisation of our macro-economic policies.

After years of stagnation we are in our fourth successive year of growth.
Behind the positive trends of a shrinking deficit, falling inflation and
improving balance of payments, there are signs of deep structural changes. The
growth we have enjoyed has been driven by increasing levels of fixed investment
and expanding exports. Both have featured a strong manufacturing input.

Now, three years after achieving democracy our economy is going through a
restructuring akin to an industrial revolution.

Building on the fundamental strengths of our economy, our macro-economic
strategy has raised our targets still higher. This we have done so that we can
produce the resources and create the jobs needed to reach our goals of
reconstruction and development. Amongst the measures to maintain the trends and
improve them are industrial support measures to boost productivity, and
strategic links between industrial policy and the provision of infrastructure.

Our efforts to encourage investment in areas of strength and unused potential
include not only tax incentives and training programmes but the Spatial
Development Initiatives.

These initiatives are designed to generate sustainable economic growth and
development in under-utilised areas which have inherent economic potential; to
promote long term job creation; to maximize private sector investment and
lending; to open small businesses opportunities; to empower local communities
and to exploit the advantages for export oriented growth.

The Eastern Cape initiatives being presented to you at this conference will
do all these things. They will reap the potential in the region's industrial,
manufacturing, agriculture, tourism, and forestry sectors.

Much work has already been done to create an enabling environment for
investors.

Some of the infrastructure already exists. There are ports and airports yet
to reach their full capacity. In building on what exists and in identifying new
opportunities, the partnership between the public and private sectors, between
local companies and foreign investors; and between big and small business will
be crucial.

The attraction of Eastern Cape as a destination for investment also depends
on its strategic location. It is equidistant to all major international markets,
providing new opportunities to manufacturers who must increasingly focus on the
global market both for raw materials and to sell their products. It is easily
accessible to the Southern African market. And it is well serviced by road, rail
and air and telecommunications infrastructure.

The Eastern Cape boasts abundant natural resources, including South Africa's
richest forestry resources, presently under-utilised. Its textile, wool, mohair
and leather industries are ell serviced by extensive farming activities in the
hinterland.

There is potential for expansion in agriculture and in food processing. The
motor, food processing and petro-chemicals sectors provide a solid core around
which strong clusters of economic activity can develop. And should any of our
visitors have time for leisure they will see for themselves why tourism is bound
to experience intense growth in the Eastern Cape.

Ladies and Gentlemen,

There are many exciting prospects for investment within the Eastern Cape
Spatial Development Initiatives. Some of these you will know about, like the
Coega deep water port, which has received in principle support from the Cabinet.
Others will e unveiled for the first time at this conference.

The success of each of them will depend on the partnership between
government, business and the rest of society.

Each will bring reward for investment and enterprise as well as benefits of
development for the people of the region. The Fish River Initiative alone
represents a potential injection of some R12 billion or more of investment into
the Eastern Cape in the next five years, and 65,000 potential jobs, half of them
permanent,

I urge you to give your serious consideration to the opportunities. The
development train is in motion. Don't be left behind!

A future of prosperity and a better life is within our reach.

Let us grasp the opportunity with both hands!

Issued by: Office of the President