PAPER DELIVERED BY A.R. NAPO, DEPUTY PRESIDENT OF NAFCOC

2 October 1999

Mr. President, members of thegovernment, members from labour, business, members from diplomatic missions, members fromthe community, honoured guests, Ladies and Gentlemen - Igreet you!

Mr. President, the businesscommunity as represented by NAFCOC, wish to congratulate youon your election as the second democratic President of this country. You have completedyour first 100 days of effective governing with showers of praises from all over theworld.

The NEDLACsummit is an opportunity for the constituent members to reaffirm support and commitmentfor the advisory role that NEDLAC plays and also to layfoundation for the role of this institution in the new millennium. It is thus critical,not only to identify those areas we have been successful in, but also to identify thoseareas we were not successful in, so as to address them properly.

Right from the inception,NAFCOC would like to point out its dissatisfaction at thestructural representation of the social partners  - particularly in the businesscommunity.

The present structure does notonly undermine the role small business can play or has to play, but undermines the roleblack business should play. NAFCOC deliberately stayed out ofBSA because of this. In the absence of one democratically formed employer organisation,NAFCOC will continue to call for more seats to be allocated to her so that properrepresentation proportional to her wide constituuency is effected.

We must hasten to commend thePresident and government with the structure of the envisaged International InvestmentCouncil because we believe that structure recognised the history from which we come.

Business as represented by NAFCOCre-affirms the need for continutation of the NEDLAC process and the continuation of theconsolidational approach to implement policies already agreed to and legislated.

LABOUR MARKET

The past five years have seen the amendment of afew labour laws which most of us including the emerging business believed were needed toensure equitable labour system. However, it has become evidently clear that an imbalancesituation is emerging which gives more obligation to the employer and more rights toemployees.

Much worrying was the total eradication of thefreedom of agreement between the employer and the employee. Payment in kind and flexitimeis often overlooked by these acts. We agree with the Deputy President and accept thechallenge that the social partners should come out with labour accord sooner than later soas to address this problem.

The system as applied now discourages theemployment of the unemployed. With the same breath business needs to call on all thesocial partners to robustly address the imperatives of unemployment and jobless growth.NEDLAC needs to be robust and creative in addressing this fundamental problem. We need toacknowledge that an effective response to this could require a radical review ofapproaches that we have all become comfortable with.

The case in point here is the Mining industrywhich is ravaged by problems beyond South Africa's control. The slide in the goldprice brings back the memories of what happened in Zambia in the 1970's when theleading export, copper, just kept tumbling down.

We are certainly not about to persuade you tobelieve conspiracy theory because even if it was to be true our future is still in our ownhands.

Besides having other strong sectors, we have avigilant SMME sector to lead the way into beneficiary, food processing and tourism as asolution to job creation. Both our infrastructural development and technology should beharnessed to turn this misery into an opportunity.

NAFCOC survived during tough years of sanctionsand apartheid and we will lead the way in transforming this economy and democrtatising it.

We as business do not regard a strong and unitedlabour movement as a rival, but a vital and necessary partner. What we believe is neededis continued discussion between the partners, the sharing of ideas and responsibilitiesincluding obligations to ensure that labour understands the politics of employment.Governing is not as easy as being governed, as the latter puts you in a simple and betterposition of criticism. We reiterate a strong partnership is needed between business andlabour to guide and to advise each other, to ensure a strong South African economy andemployment for all. All these we are sure will not be accomplished in a year, but let usspell out our intentions clearly, and let our global friends, foes alike, know that it isour goal, and we will achieve it.

Fellow citizens and guests, Ispeak to you today in a spirit of hope that all the problems of unemployment and sloweconomic growth will go down with the setting sun of the milleniumand a new horison of better life for all will rise with the new century.Chairperson, whether we like it or not the global challenges are growing each day, and thequestion often posed is, what is the preparedness of South Africa to face the saidchallenges? Is South Africa going to emerge as a victor or a victim? The price of golddeclines day by day and mines are being closed each day. Are we going to solve thisproblem by rushing to London each time, to negotiate from a position of weakness to begfor the non-sale of gold reserves? or, are we already looking for sustainable alternativesto substitute for gold as a basic back up for our currency? The time has arrived for us asSouth Africans to strengthen our other resources, to look into new avenues with a clearvision and change of mind. No more has the time been riper for South Africa than today, tostrengthen its Agri-Industry to produce enough and even an abundance of food for ournations and for the purpose of exporting same to all four corners of the world. Let usharness and strengthen the retail and trade expertise that already exists in ourcommunities. Let each one of us be prepared to produce to his or her optimum capacity tosell whatever is left to our fellow citizens of the world. Let us encourage and facilitatethe growth of small business, let us endeavour to make the environment conducive to thissector, let all impediments and regulations to this sector be removed, for this is whereour great potential lies.

REGULATORY LAWS:

We as business got quiteconcerned to learn that the government intends regulating inter-aliathe taxi business more strictly by compelling taxi owners to sell the small busses andoperate some thirty-two seater busses. It may be a good movebut is government aware of the consequences thereof. Is the governmentaware that such would mean a job loss for every second minibus driver? Is the governmentaware that each possible accident of such a thirty-two seater busses, which is a realityof life, means thirty two claims against the Road Accident Fund? Does the government havethe money to meet the said claims, obviously not. We are inclined to say that this is afatal move.

Fellow citizens in a country likeSouth Africa such a regulation is doomed to a failure just like the South African Railwaysand Harbours, which monopolised all means of transport and failed. What is needed from theGovernment is the creation of proper infrastructure, high standard and good quality roads,not only around Pretoria and Johannesburg but also in KwaZulu-Natal Midlands,Ga-Sekhukhune, Letsieteleand the Transkei. It is a pity that in these times, themajority of our businesses can still not be reached due to lack of roads andinfrastructure.

Fellow citizens, we from thepreviously disadvantaged communities and businesses, whilst we are equally committed toincrease the tax base by encouraging our businesses to register as tax payers, we arebeing frustrated by the cumbersome nature of the tax system and the nature of documents tobe completed each year. Although we have noted a move towards simplification of the taxforms and procedures, we feel there is still a big need for government to embark on taxeducation and capacity building amongst small and emerging business.

CRIME SITUATION AND SECURITY:

One major call which businessmakes to all fellow citizens is the need for peace and security in our neighbourhoods, itis greatly disheartening to continually learn of South Africa being referred to as one ofthe most violent and high crime countries. It is time for us to return to our familyvalues, let us return to the self esteem and respect of our fellow fore-fathers who fromtime immemorial has been the identity of Africa, contextualisedin the concept Ubunthu-botho. Let each one of us be thekeeper of his brother, sister and neighbour and their belonging, irrespective of colour,race, creed, religion or economic strength, the weakness and the illness of affirmative shopping should be brought to anend.

We also call upon the Safety andSecurity authorities of the land to join hands with business in the fight against crimeand lawlessness. Whilst we do not support the method of Mapogo a Mathamagain their fight against crime we must not only criticise andimprison them without an effective fight against criminals and theft. Business believesthat poverty and crime walk hand in hand and that freedom, peace and prosperity are thebearers of a crimeless society. We believe that as ofimmediate and short term solutions, a strong and visible policing is needed in SouthAfrica to encourage and ensure foreign investments and the creation of jobs and prosperityin this beautiful land of our fathers and mothers.

Closely linked to this is a needfor a good, strong and healthy society, this can be achieved again, by the joining ofhands and for us in business, labour and government in addressing the life threateningdiseases in our society, such as Malaria, Tuberculosis, HIV/Aids.The test of our problem is not only how much we have for the cure of those who alreadysuffer from these diseases. but how much we provide to those who have not contracted thedisease yet to ensure that they do not get them There is need in all our variousoccupations, to ensure that those amongst us, are well informed about the HIV/Aids problem and its dreadful consequences. The ever posedquestion is, how much is South Africa putting into the research of a possible cure forHIV/Aids, which we as business believe can be achieved as we are ever more technologicallyadvanced than Louis Pasteur was many years ago when hediscovered penicillin and its importance.

UNITY AMONGST BUSINESS ORGANISATIONS:

Lastly, NAFCOCmakes the call it made some many years ago that there is a great need for all businessesand professionals in South Africa to come together under one umbrella body of a federationthat will act as a mouthpiece, to articulate the needs of our business fraternities toensure economic growth and prosperity for all in South Africa. Never before has that needbeen as important as it is today. A few years ago, we were not very much surprised to seesome organisations being formed along colour and political lines, which was a selfish needto protect the holier than thou policies. Now that we live in a democratically free SouthAfrica we see no reason why business and professional organisations should not come hometo our organisation, to fly one banner uniting all South African chambers of commerce andbusiness. Yes, Mr and Mrs fellowcitizen, NAFCOC does concede that we did along the way, appear to be more of a politicalorganisation than a Chamber of Commerce, it was the call and the test of the need of time,but now, things have changed under one mother body NAFCOC.

PROMOTION OF SMALL BUSINESS

The promotion of small businessis important in creating job opportunities in the country. Small business promotionagencies, including NAFCOC are tirelessly lobbying governmentfor the creation of enabling environment for small business to operate in. In response,government, through the Department of Trade and Industry, Small Business Promotion,created Khula Enterprise and NtsikaEnterprise Agency. Despite the creation of the above two institutions the normal problemsfacing small business owners remain: i.e. access to finance;inadequate training and lack of information. There is a great need for synergy between these institutions and small business development agencies. This can beachieved by capacitation at board level.

Like NEDLAC,board representation in these institutions should comprise mandated representatives fromsmall business, labour and government who will be able to contribute meaningful solutionsto the current problems.

ECONOMIC GROWTH:

In conclusion, for a goodeconomic growth to be realised successfully, there is a great need to, build a 'strong andinter continental confidence in our products and commodities. South Africans must be proudto be South Africans and be proud to sell South African goods. South Africans must beproud to buy locally manufactured goods without coercion or influence from any of thesocial partners, but do this in appreciation of quality. They must ensure that whilst wewelcome participation in the global market we not only consume global goods but be proudthat the global man and woman can purchase and consume South African commodities. In sodoing we shall be supporting the rebirth of our beloved continent Africa.

Modimo 0 re thuse

GOD Bless Africa