DOCUMENTS

The World Cup's been worth it - Zuma

SA president says careful planning has paid off

Address by President Jacob Zuma to the Investec Asset Management Global Investment Conference, Cape Town, July 6 2010

Programme Director,
CEO of Investec Asset Management, Mr Hendrik du Toit,
Distinguished delegates,
Ladies and Gentlemen,

Welcome to South Africa we are pleased to host you in our country for such an important conference.

We are enjoying this month of June as our country is hosting so many events. Firstly, we are in the final stages of the 2010 FIFA Soccer World Cup.

We recently hosted influential decision makers who attended the CNN/Fortune/Time Magazine Global Forum here in Cape Town a fortnight ago.

Over the weekend we proudly hosted the Special Olympics Unity Cup featuring various celebrities and Special Olympics athletes.

We appear to be a popular destination for the world. This reminds us of how far we have come as a country.

A mere 20 years ago, nobody would have wanted to come here. The future was uncertain. Apartheid appeared almost impossible to overcome. But we did not give up. And we overcame.

Many freedom loving people in the world also worked tirelessly to help us achieve the free, non-racial, united and democratic South Africa that we live in today.

As a result of that international solidarity, we always appreciate welcoming international guests.

You are very special guests also because you are fund managers. We want you to bring the billions of dollars you control to these shores for investments!

As said earlier you have found us in the middle of the soccer euphoria. We have had a most successful and exciting time three weeks. It has been a grueling emotional rollercoaster for all 32 nations that have been participating.

And the fun, the colour and the glory have never stopped since the beginning. The vuvuzelas have been blowing endlessly, becoming a distinct feature of this African World Cup.
Economically, the tournament has been a success. We can safely say that we have good returns on our investment, which includes 33 billion rand spent on transport infrastructure, telecommunications and stadiums.

The investment in stadiums created an estimated 66 000 new construction jobs. The 1.3 billion rand spent on safety and security includes a permanent addition of 40 000 new policemen and women.

We decided to bid for this World Cup because we wanted to show that Africa could do it.

We wanted to challenge all stereotypes about the continent.

We also wanted to market South Africa as the gateway to the continent and as a key actor on the international stage.

The international media spotlight has been on our country for the last three weeks. The world has seen this country in a different light.

They have seen the warm friendly people. They have seen the precision when it comes to planning and logistical arrangements. They have seen the efficiency of our security infrastructure and infrastructure.

Basically, our planning over many years is paying off and we are happy.

The social benefits are priceless. We have seen remarkable unity, patriotism and solidarity being displayed by South Africans, which has never been witnessed before.

This augurs well for the consolidation of reconciliation and friendship for this young nation. We intend to build on this achievement.

Ladies and gentlemen,

I say you came at the right time as you are finding us in a marketing mood!

I am therefore happy to be talking to fund managers. You have come to a strategic point in Africa. South Africa is a centre between the emerging markets of Central and South America and the newly industrialised nations of South and Far East Asia.

We are also ideally placed for access to countries in the Southern African Customs Union and the Southern African Development Community, an alliance of 15 countries with a combined population of over 180 million.

South Africa is the biggest investor in Sub-Saharan Africa. Many South African companies have major investments in the continent. They are proving that Africa is indeed a continent of opportunity rather than one of despair.

In addition, as South Africa we also attach great importance to promoting regional and continental integration in Africa to overcome the constraints imposed by small fragmented markets in Africa.
Ladies and gentlemen,

You would also be aware of the role that South Africa plays in championing a just world order in various forums including the G20.

The significance of this for South Africa is that it confirmed a view we had held, and campaigned for in our multilateral engagements.

We argue that the affairs of the world of today cannot continue to be managed by the existing institutions of global governance unless they undergo fundamental reform.

We have further argued that the role and contribution of developing countries in global economic expansion must begin to be reflected in their voice, share-holding and representation in these international institutions.
Our participation in the G20 cannot and must not be divorced from our participation in the multilateral institutions such as the United Nations and others.

Our participation in the G20 adds to these international interfaces, as it provides real possibilities to advance our objectives in multi-lateral institutions such as the IMF, World Bank and the WTO.

We believe that the G20 will deepen its legitimacy if it becomes a vehicle to advance the pursuit of a fair and inclusive world economic order which creates the conditions to eradicate poverty, especially in Africa.

Having emerged from the world economic crisis, we are now advocating the adoption of a global framework for strong, balanced and sustainable economic growth.

Our view on the framework is that must not just take us back to the pre-crisis situation. It must create new possibilities for new centres of economic growth. It must also enable new entrants into the global economic mainstream.

As an integral part of the African continent we are therefore promoting Africa as a new node of global economic growth. The continent must not be seen as a permanent recipient of aid only.

It must not be viewed only as an exporter of raw materials, with no possibility to beneficiate such resources in a way that would enhance manufacturing capacity and enable us to create jobs and develop skills.

We want to be seen as a development partner, as a partner to do business with and to work with to transform international power relations.
We believe we are making progress in some way in our participation in the G20.

We celebrate the fact that through our work and contribution, the World Bank recently adopted reforms that have shifted shareholding in the organization in favour of developing countries, which now contribute a much larger share to global economic growth and trade.

It has also established an additional Chair for Africa on the Board of the Bank. We continue to push, as we did in the Toronto Summit, for the IMF to speedily implement similar reforms by the time of the Seoul Summit in November this year.

We continue to advocate for a change in the manner in which the Heads of both the IMF and the World Bank are appointed through a fair, transparent and open process that pays no regard to the nationality of candidates.

Ladies and gentlemen,

The recent financial and wider economic crisis from which the global economy is just recovering came about, in large measure, due to lapses and excesses in the financial sector internationally.

Consequently, South Africa is a strong advocate for the strengthening of global financial supervision and regulation.

We have, however, taken a view that a one-size-fits-all approach would not be appropriate as some countries, including Canada, Australia as well as other South Africa and other developing countries had done well in regulating their financial sectors.

We further hold the view that where Governments have had to bail out their banks and thus need to commit their financial institutions to share that burden by introducing a levy or financial transactions tax, this should not be imposed to all jurisdictions even where there may not be need to do so.

We call for national discretion in this regard.

Ladies and gentlemen,

It has come to be accepted by all commentators and analysts that Africa has come through this recent crisis in much better shape than it did with previous crises.

This, in our view, confirms that Africa is, indeed, a very different place to what it has historically come to be known for.

We are thus convinced that the spirit of what was articulated in the New Partnership for Africa's Development is being internalized in many, if not most countries.

African countries are seriously addressing the major challenges such as sound macro-economic management, infrastructure investment and are creating good economic conditions for private sector development and investment.
We are all working to ensure that this momentum is maintained. We are therefore focusing quite strongly on such issues as deepening regional integration, intra-African trade and investment in infrastructure.

These are some of the interventions that will enhance the attraction of the continent.

Ladies and gentlemen,

One of the areas that has enjoyed greater attention by South Africa in its interventions in the G-20 is ensuring that the conditions in the low-income countries and the need for appropriate instruments to respond to such conditions are part of the deliberations of the G-20.

This ensures that it does not become an inward looking organization concerned only with its own members.

It is this that has made us to support work-streams such as those on financial safety nets and access to finance for low-income countries. There is also a new work stream on development, for which South Africa has been appointed as a Co-Chair with South Korea.

Our message to you is that which we gave to the G20 business sector. Africa is open for business. Explore the opportunities, find new partners and see returns on your investments. It is a positive period for the continent.

We are blowing our vuvuzelas and encouraging the world to partner with us as we build a better Africa, for mutual benefit.

I trust that you will be able to attend some of the remaining soccer matches, and that you will make time to explore our beautiful country.

I thank you.

Issued by The Presidency, July 6 2010

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