ADDRESS BY DEPUTY PRESIDENT ZUMA AT THE NEDLAC ANNUAL SUMMIT

Sandton, 9 November 2002

The Executive Director of Nedlac,
Ministers present,
Representatives from Organised Business, Labour, community and
Government,
Distinguished Guests,
Ladies and Gentlemen,

I am grateful for the opportunity to once again share ideas and thoughts with you as you meet to reflect on the past year and to plan for the period ahead.

This Summit, which is normally held in September, is only taking place now because of the successful World Summit on Sustainable Development held in Joburg.

We are meeting at an extremely pivotal point in our history as we are preparing for the Growth and Development Summit, (GDS) scheduled for April 2003.

You will recall that I have expressed, on a number of occasions, the need for all of us in government, labour, business and the community sector, to form a social compact. I am therefore pleased to note that this resolve has come to fruition with the impending Growth and Development Summit next year.

Ladies and gentlemen, I trust that we will leave this Summit with a common sense of purpose to further guide our preparations. And, perhaps more importantly, we will leave with a sense of responsibility and urgency to play our respective parts in shaping the agreed strategies to make our collective vision of a better life for all an increasing reality.

Given the complex nature of your deliberations and the issues you are dealing with, we have to put in an extra effort to find mutually acceptable compromises.

This therefore calls for the South African trademark of creating "sufficient consensus" and thereby putting South Africa first, instead of sectional interests.

In this regard I think we can learn from the WSSD processes, which began with a multitude of agenda items that were chipped away until a handful of key issues remained, like Water and Sanitation, Energy and others. The focus of the proceedings then shifted to a discussion of hard targets, responsibilities, resources and timeframes.

Compatriots, each NEDLAC constituency brings its own perspective to the table. We know that for community organisations, priorities must ensure access to the necessities of life and productive assets for economic participation. For labour the focus is on fair working conditions and a decent pay for all. For business it is about rising returns for investments in a market place that provides access to the historically excluded as well as those with long standing presence.

Once we have a framework that takes each of these on board, we can balance them so that a truly coherent and sustainable growth and development strategy emerges to which all constituencies can subscribe.

Fellow South Africans, let us consider these different priorities and their point of convergence. In terms of basic social security, certainly priorities such as water, food, health care, shelter and a reliable source of income forms the core basic needs. We must find appropriate ways to deliver all of these to our people.

Although our achievements in this regard are significant, clearly a lot still needs to be done. For example, increases in the prices of food remain a serious concern and we are anxiously awaiting the outcome of further research into recent price hikes to help guide further interventions. This matter is a burden on everyone, especially those at the lower income levels.

The social security and poverty problems we are facing as a nation are compounded by the HIV/AIDS epidemic, which is leaving too many households without breadwinners, and other households headed by children.

A lot of work is being done by different sectors of South African society to confront the epidemic and arrest its spread as well as deal with its impact. The strong Partnership Against Aids in our country gives us all hope and must be commended.

Allow me at this point to acknowledge the work done by the participant sectors in NEDLAC in discussing a comprehensive HIV/AIDS treatment action plan. We hope the discussions are informed and assisted by the progress and work already being done in this regard within government.

Let me also remind all that tomorrow is National Health Providers Prayer Day. I will join religious leaders for prayer in Ermelo tomorrow, where we will salute our health workers for the selfless efforts at caring for the sick, especially those living with HIV/AIDS.
Ladies and gentlemen, with regard to issues of investment and employment, economic data clearly indicates that South Africa has been one of very few countries that managed to maintain substantial economic growth this year within the context of the global economic downturn. You may also have noticed that in the past week, the value of the Rand has increased against the dollar, second only to the Norwegian Krone, in comparison to other currencies. Other sources of good news to all of us are, among other things, the fact that the balance of our current account is positive, and there is a strong consumer demand.

At the same time, our economy has experienced negative features like the surge in inflation, fuelled largely by higher food prices and the four percentage hikes in interest rates. However, despite all of the local challenges and negative activities in the general global economy, the prognosis for the South African economy is positive for the remainder of the year and in 2003 and beyond.

On the employment front we all recognise that we need to do substantially more to improve the employment situation. The question of a comprehensive employment strategy is firmly on the agenda of our society. By way of example, the Department of Trade and Industry is projecting a modest growth of 1% in the manufacturing sector for 2003.

There are a number of positive developments that will impact on employment in the long run. You would be aware for instance that the registry of companies shows an increase in the registration of new companies.

We are also fortunate to have a number of growth sectors. The Information Communication Technology and tourism sectors have been key growth sectors over the last period. In addition, the integrated manufacturing strategy, with its aim of fostering growth and development, has identified the following possible growth sectors: cloth and textiles, agro-processing, metals and minerals, crafts, automotive and transport and chemical and biotechnology.

We also need to pay particular attention to the informal sector, because evidence suggests noticeable growth for the five-year period from 1994 to 1999 in this sector. We still remain with the challenge of perfecting the measurement of growth in this sector.

We welcome the two-day Summit, which will take place prior to the Growth and Development Strategy to discuss these issues. We are confident that it will provide us with clear direction on these matters and will contribute greatly to an overall successful outcome.

Delegates, I am particularly heartened that one of the discussions in your commission will focus on the social dimension of globalisation. This input by the International Labour Organisation will no doubt deepen our understanding and perspectives on this phenomenon with all its intricate processes, and how they affect us.

Increasingly, there is convergence of opinion across the globe on the need for greater equality between developed and developing world. Compatriots, we all carry an enormous responsibility as we proceed into this process. Let us do our utmost to succeed with our agenda.

Let us use this opportunity as one of the building blocks of the new society we are seeking to foster, a new society where a better life for all becomes a reality.

I thank you.