ADDRESS BY MEC FOR ECONOMIC DEVELOPMENT AND TOURISM

MEC MMAPHEFO MATSEMELA

Event: Economic Development Symposium

Theme: “Working Together Towards the Economic Recovery for the North West Province”

Date: 18 January 2010

Venue: Mafikeng Hotel School

Programme Director

My Colleagues in the Executive Council

Chairperson of the Portfolio Committee Mme T Modise

Honorable Members present

Executive Mayor Ngaka M Molema

Executive Mayor Mafikeng

Government agencies

Other Departmental Representatives

Honourable Guests

Ladies and Gentlemen

It is indeed a greater honor and privilege to give a purpose of this summit under the theme Working Together Towards the Economic Recovery for the North West Province

The slowdown in economic activity that has engulfed into world economies in August 2008 has pushed major commodity prices down, with adverse effects on commodity export-reliant economies. The reduction in demand for goods has not only dampened growth prospects for local industries by curtailing exports but it has also propelled the closure of many companies resulting in massive job losses. The North West Province has not been spared the wrath of the global economic crisis. Indeed the global economic meltdown has brought upon us an unprecedented dimension. The effects are being felt within our society as the economic recession is impacting negatively on all sectors of our economy. The indirect effects of the recession are expected to be felt through the MTSF period even after the direct effects have passed. It will therefore be necessary that strategies and plans that are developed, take into account this adverse scenario.

In light of the current crisis across the globe, trade blocks, regions, countries, states as well as local governments have been forced to review their economic growth and development policies and strategies with the view of mitigating risks associated with the economic meltdown. In South Africa, government, business and labour movements have deliberated on the issue and have reached consensus that there is an urgent need for a joint and decisive response which will attempt to steer the economy and industries that are its mainstay towards a positive growth trajectory.

The national government has responded, among others, in decisive ways through: (a) the establishment of a National Jobs Fund to finance a new training layoff scheme for workers who face retrenchments; (b) support for distressed sectors and companies (automotive, capital equipment, transport equipment, the Industrial Development Corporation’s R6 billion for distressed sectors; and (c) the Competition Commission’s prosecution of artificial price-hikes in the food supply chain. All these interventions provide a robust framework for our provincial economic recovery plan.

It is against this backdrop that all social partners in the North West Province have committed themselves to jointly working together towards cushioning our local economy against the brutality of the economic downturn. The objective is to develop ultimately a provincial strategy that will protect, retain, enhance the growth of the North West Province.

PURPOSE

The challenges facing the economy of the North West Province are very daunting. These challenges require equally extraordinary responses by all of us as a collective to realize then goals of the PGDS. A comprehensive response to the economic meltdown of this magnitude demands cooperation and commitment from all social partners.

The primary purpose of the symposium is to:

•to create a platform for government and its social partners to share ideas regarding the impact of the global financial crisis;

•to present a critical analysis of the impact of the global meltdown on the PGDS sectors; and

•to offer solutions toward a pathway for the recovery of economy the Province.

We intend, under the PGDS agenda, to engage government officials to find the means and ways of addressing the challenges that stifle the growth of the Provincial Growth and Development Strategy (PGDS) sectors. Under this broad aim three objectives have been formulated as follows:

To highlight the impact of the global recession on the Economy of the North West province;

To analyze the prospects of economic recovery in each of the PGDS pillars;

To craft resolutions that will facilitate economy recovery through a Programme of Action.

In line with the current National and Provincial Government priorities, the PGDS objectives were designed to accelerate policy implementation and service delivery in the following priority areas:

a. Agriculture

b. Manufacturing

c. Mining

d. SMME Development

e. Skills Development

f. Tourism

The symposium should serve as a catalyst for the economic recovery framework for the North West Province and to contribute to the realization of the targets as espoused in the PGDS. The symposium could be used as a springboard to address the challenges of economic development in light of the global financial meltdown.

POLICY ALIGNMENT

A key priority is to make government and the private sector work together and improve the impact of its programs in achieving common objectives, particularly with respect to economic growth, job creation and the needs of the poor. The need to obtain a shared approach to planning and alignment between the Provincial Growth and Development Strategies (PGDS), the municipal Integrated Development Plans (IDPs) and the National Spatial Development Perspective (NSDP) is critical.

This approach should primarily focus on the role of government to facilitate the alignment in intergovernmental prioritization and resource allocation and the processes through which IDPs, the PGDS and the NSDP can be aligned. These policy instruments form the core of the intergovernmental planning system.

Over the last five years the gaps in intergovernmental integration, co-ordination and alignment, has led to the realization that merely focusing on integration and coordination of procedures and intergovernmental coordinating structures, will not have the desired results. Increasingly, a consensus-position has been developed, which holds that coordinated government priority setting, resource allocation and implementation

On the completion of this symposium, the participant should understand and be able to implement resolutions within the workplace.

I wish this workshop a success it’s in devour to address challenges of Economic recession in the province and country at larger

Ke a leboga,

I think you.

1