REMARKS BY ANC TREASURER-GENERAL MATHEWS PHOSA TO THE SOUTHERN AFRICAN-GERMAN CHAMBER OF COMMERCE AND INDUSTRY LUNCHEON AT THE COUNTRY CLUB JOHANNESBURG, AUCKLAND PARK, September 6 2011

1. I have had the privilege over the years of a very close association with Germany, its' government, and business organizations and individuals.

2. I also had the privilege to befriend Dr.Johannes Rau when he was Ministerpraesident of North Rhine Westphalia state, and that interaction continued when he became Chancellor of Germany.

3. The friendship and links I formed through him with the state government of North Rhine Westphalia and a number of its government and business leaders continue to this day.

4. My association with German organizations interested in good governance also continues, and I have links with, for instance, GIZ and the Frederich Ebert Stifting.

5. I had the privilege of visiting Berlin in 2008 to study the relationships between party and state, and various other issues that impact on good governance, and intergovernmental relationships.

6. As Treasurer General of the ANC I learnt a lot about the way that the German government plays a pertinent role in the funding of political parties.

7. I was particularly interested in the way that Germany funds their political parties and found their model one that could be seriously considered in the South African circumstances.

8. I am deeply indebted to the German people and their leaders for their willingness to work with us in South Africa, and specifically for their friendship and assistance during the challenging time of transition.

9. Before and during my period as Premier of Mpumalanga many of my senior officials and advisers "learnt their trade" from German public sector offices, and continue to do so.

10. Our party decided on five priorities for government. They are:

• Employment creation
• Education
• Health
• Rural development and land reform
• Crime and corruption

11. We recently decided that the local government should be added to that list, and specifically a focus on making local government more efficient and effective. I will come back to this issue a little later.

12. From these political directives, Cabinet decided on 12 priority outcomes for our country, namely:

• Quality basic education;
• Quality health services for all;
• A Safer and more secure South Africa;
• Heightened levels of employment through inclusive economic growth;
• Substantially higher levels of skills to create a capable workforce that can support an inclusive growth path;
• An efficient, competitive and responsive economic infrastructure network;
• Sustainable rural communities contributing towards food security for all;
• Sustainable human settlements and improved quality of household life;
• Responsive, accountable, effective and efficient local government systems;
• The protection and enhancement of our environmental assets and natural resources;
• An efficient and development orientated public service;
• The creation of a better South Africa, a better African continent and a better world. 

12. All of the above is planned against a local GDP growth of 2.8% last year, after the economy contracted by 1.7% in 2009. 

13. After the economy expanded at an annualized rate of 4.8% in the first quarter of 2011 it seems that we have, like other parts of the world, hit a softer patch of growth in the second quarter.

14. The employment growth that we have seen is led by government employment, accounting for almost two thirds of new jobs created since March 2010.

15. We understand, of course, that globalization will have its own effects on us through the deficit and ratings trauma in the USA as well as the European negotiations and discussions around some of their economies.

16. I understand the fears of German and international companies abroad about a number of issues such as:

• The high and unacceptable levels of crime;
• The drawn out debates around the nationalization of banks and mines;
• The perceived instability in the region and the pressure for us and others to play a more meaningful role to bring stability in Zimbabwe;
• The perceived challenges regarding service delivery;
• A view that reconciliation has moved much lower on the agenda since Mr Mandela's departure.

17. In line with my remarks above, the Presidency recently announced the formation of two commissions to deal with the issues of service delivery.

18. The President himself will lead a commission that will attempt to accelerate infrastructure planning, delivery and monitoring.

19. The Deputy President will head a commission aimed at ensuring that all job creation initiatives are co-ordinated and fast-tracked.

20. In this regard we often proudly refer to ourselves as the "gateway to Africa".

21. If we utilize such descriptions-"we are the engine room of the continent" is another one-then the simple point of departure should be that we are the biggest, most competitive, fastest growing and best managed economy in Africa.

22. Whilst I firmly believe that we can achieve the above status through hard work, private public sector partnerships, and streamlined public sector procedures, the truth is that foreign investors currently find a number of investment destinations just as attractive as South Africa, and in some cases, more attractive.

23. The latest statistics regarding foreign direct investment in South Africa illustrate that the rest of the continent is moving with great speed to find creative ways of attracting Asian, North American and European companies to look beyond South Africa to elsewhere in Africa.

24. In formulating our job creation strategy we cannot divorce it from this drive to become the "gateway to Africa".

25. The more we create synergies between the agendas and appetites of government, labour and the private sector, the better the chances are that we will retain our status as the investment destination of choice on our continent.

26. In my view, the recently published diagnostic document of the National Planning Commission establishes a starting point for serious conversations about how to ensure that we are top of mind on the shopping list of the international investment community.

27. Our companies have often proved that they are globally competitive. As the ANC we are looking towards them to cast their eyes-and money-inwards. It is up to us as government to ensure that they expand both here and globally.

28. As indicated above, our seriousness in this matter is underlined by the fact that we recently announced the formation of two Presidential Commissions; one on Infrastructure, chaired by the President, and one on Job Creation, chaired by the Deputy President.

29. The one commission is, of course, a mirror of the other and we will have to ensure that there is the closest possible co-operation between the two. Duplication can be avoided by, for instance, ensuring co-ordination by the creation of a joint secretariat between the two commissions.

30. We cannot, however, continue on the current road where the state is the only net creator of jobs in the South African economy.

31. Whilst we certainly aim to urge state owned enterprises as well as development finance institutions to sharpen their focus on job creation-and play a much more active and dynamic role creating employment and growth opportunities, it is not the primary task of the state to create jobs.

32. That is the job of the private sector and we need to do a lot of honest soul searching on whether government and the public sector-here and abroad have forged the real patriotic partnerships that I am so passionate about.

33. Such partnerships cannot be forced partnerships, or partnerships controlled by regulation. They need to be partnerships forged by opportunity, space, pride and patriotism. In that environment there is room for both government and the private sector to cast away past perceptions about hidden agendas.

34. On another matter, the country needs leaders who look beyond their own empires and thrones to those who elected us and those whom we employ to shape a common intent and interest between us. We are a team, not opponents.

35. We have, in recent weeks, seen a number of fiery debates on a range of items on the national agenda such as National Health Insurance, wealth tax, toll roads and the appointment of the Chief Justice.

36. We have to calmly acknowledge that there will be political posturing and point scoring on all of the above issues. Such posturing and positioning only reflects the realities of our political environment and should be welcomed in the robust legal and constitutional environment of which we are the authors and designers.

37. The ANC fought for the right of all South Africans, black and white, to fearlessly make a contribution towards this liberal democracy. 

38. There are no first or second class South Africans when we debate our future and the decisions that will impact on it. 

39. Debate on government decisions, whether on a national level or in the Western Cape, will be robust and not for the faint hearted.

40. In that context I want to make it clear that I will defend the rights of both minority parties and minority groups to differ from us as the ruling party, whatever form or substance those differences take.

41. As long we stay away from bringing the tired old race card into the debate and we refrain from the sometimes crude personalizing of discussions, our public discourse should be strong, vibrant and robust.

42. It is, in fact, our duty as the liberators of this country to protect the right of robust debate, freedom of association and freedom of expression, inasmuch as it might sometimes be painful.

43. As the ANC in government it is our duty to protect the Constitution and to ensure that the institutions we have created through it should be respected at all times. 

43. There is very little profit in creating checks and balances between the executive, judicial and legislative arms of government-and then attacking them when they create tension.

44. It is this very tension that makes for good government and provides much needed balance between the various "arms" of government.

45. Let us all put aside our narrow interests in protecting the national interest and the protection of the constitution.

46. The very same principle holds for the debate on nationalization. 

47. It is our patriotic duty to find middle ground in this debate and to ask "What is the solution that speaks to the common interests of governments policy agenda, the mining houses, and the country's substantially disaffected".

48. The ANC has instituted a research project into this matter which is to compare global experiences in this regard and how that speaks to the South African context. There is nothing that prevents the private sector and international communities to interact with this committee or the relevant state departments to convey your views. It is in all our interests to find a solution that builds bridges and fosters new partnerships.

49. It is not in the interest of economic growth, job, creation and nation-building to simply attack positions that differ from our own. The common good will be much better served by finding common cause between our different views.

50. I have literally seen both sides of the Berlin Wall - the East taught me how to wage war - the West taught me how to make peace, structure and run government. The West was also generous in contributing towards the training of our civil service and towards the new democracy of our country, for which we shall forever be grateful.

51. German businesses are welcome in our country and we will do everything in our power to accommodate you, to assist you, and work with you to find profitable partnerships for you.

I thank you.

Issued by the African National Congress, September 6 2011

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