Mr Moses Tembe, representing captains of industry

Mr Edwin Mkhize, representing organized labour

Mr Chris Gina, representing labour

Sthembiso Madlala, representing civil society

Members of the council

Representatives of business chambers and other sectors of the economy;

Mr Sihle Mkhize of the Department of Economic Development, Tourism and Environmental Affairs;

Mr Smiso Magagula Head of Department of Provincial Treasury;

Dr Gaster Sharpley Head of Department of Public Works;

Other senior government officials;

Members of the media

Good Morning

We meet today after a three-day Lekgotla of the KZN Executive Council.

The Lekgotla presented an opportunity for government to review progress achieved - to delineate the challenges that have stood in the way of service delivery and, critically to design fresh and innovative solutions to all the identified impediments to achieving our objectives.

Under one roof we brought together Members of the Executive Council, Mayors of Districts, Heads of Departments, Chief Executives and Management of our State-Owned Enterprises, Chief Financial Officers, the Planning Commission and Senior Government Officials to put their heads together as we enter the second year of our five-year journey of the Sixth Administration.

During Lekgotla we also had representatives from entities across the country, the South African Police Service and the Judiciary.

Critically, we agreed that we are the last line of defense for our people during this period of economic challenges. We all agreed that there is no other authority at provincial, district and local level to which our people can go for their lives to be turned around for the better.

In other words, to use an overused term, the buck stops with us.

What do we mean when we say that the buck stops with us?

During the State of the Nation Address and Budget Speech our leaders debated and articulated commitments of this government.

In particular through debates and comments in various platforms we have been reminded that we are facing an unfolding crisis of unemployment.

The majority of South Africans are struggling with the lower and middle class finding it difficult to make ends meet.

Statistics show a higher number of South Africans defaulting on their credit cards, personal loans, vehicle finance, and home loans.  Our own unemployment rate in KwaZulu-Natal stands at 26%. The crisis demands that we must act, and act with utmost urgency

Discussions Today

The meeting of today under the auspices of the KZN Economic Council is convened to chart the way forward.  As government, which has a broad representation from business and social partners.

Today, we will deliberate on how on how to create, save jobs and contribute towards economic recovery.

Critically, the council will discuss concrete plans geared towards supporting companies in distress. We are focusing on companies in various district municipalities such as Ilembe, eThekwini, uThukela, Amajuba and others.

We will also discuss huge investment in infrastructure by Government. Our discussions will be angled in a manner that details how such investments will result in a growth rate higher especially in the construction sector than many other sectors.

In the past, high employment in this sector - as a result of government investment in infrastructure - shielded the country from the negative impact of recession.

The economic council will also analyse the performance of sectors to assess changing trends. I hope we will do this analysis with honesty.

 We need to look at manufacturing, agriculture, tourism, transport and logistics and several other identified sectors will still constitute the strength of the provincial economy.

Partnership between the public and private sector will assist in steering a path towards growth and job opportunities. This partnership will be strengthened through the council. The work of this council must translate to tangible deliverable.

The council will also discuss, in detail, a programme for the upcoming Jobs Summit scheduled to take place in April. This will be an inclusive Jobs Summit which will focus on all sectors of the economy.

We are at pains to understand the decision of Business Rescue Practitioner SAA to cancel flights to Durban. This is the matter that KZN Economic Council must discuss because business relies on reliable transport. Business is about being on time – it is about efficiency- it is about moving goods and products in a manner that is comparatives with the rest of the world.

Despite the cancellation of SAA flights to Durban, on the basis of available Stats, government still recognizes the tourism sector as having tremendous potential for future growth. 

We all know that KwaZulu-Natal has over the years been recognized as the first province to exceed the targets for provision of job opportunities in the Expanded Public Works Programme.

The major contribution in this regard has come from the Zibambele and Vukuzakhe projects pioneered by the Department of Transport, together with the Departments of Human Settlements and Public Works.

The Department of Economic Development, Tourism and Environmental Affairs recently employed thousands of job seekers through Alien Invasive Plant Programme. We are convinced that through this Expanded Public Works Programme we have assisted in creating job opportunities for the unemployed people while protecting and preserving our environment.

Having said that – it should be pointed out that EPW do not provide certainty to families. We still need to double our efforts to create stable jobs.

The Council, where necessary, will continue to examine the regulatory and legislative reforms that are necessary for the smooth implementation of transformation of our provincial economy.  As government we want to achieve this by means of set asides and ring-fencing of expenditure to benefit previously marginalised sections of our population.

Skills Development

We have heard in the past that that one of the binding constraints to our economic progress lies in the fact that our education system is not producing the skills that are required by the economy.

The KZN Economic Council will engage the Education sector through the Human Resource Development Council in our province to ensure that we align their outputs closely with the priorities of our government and our country. 

KZN Economic Council and Private Sector Investment

We will also constantly engage the private sector in order to encourage and stimulate economic activity and investment in our province and to address all barriers to economic growth.

In this regard, today we will have presentations from Wilmar Palm Oil – a company investing R1, 3 billion in our Richards Bay IDZ. Another presentation will be Nyanza Light Metal – a company investing R4, 3 billion in our IDZ.

The presentations will highlight opportunities for the small players. In instances where emerging entrepreneurs are awarded contracts by both Wilmar Palm Oil, Nyanza Light Metal and other investors, we will extend support through Operation Vula and other funding mechanisms.

Broadly speaking, our entities – such as Dube Trade Port, Ithala, KZN Growth Fund and others will continue to deepen support needed by the Small Business and cooperative sectors.

Edtea is tasked with the responsibility of the implementation of an instrument for microfinance in every district to support small players. This will assist in achieving true economic empowerment.

We want to improve the participation of street traders, primary and secondary cooperatives and small business in the mainstream economy and monitor progress in this regard. The project of Bulk Buying is being modified to ensure that hawkers, tuck-shop owners and informal traders in general are assisted.

Rural Development as catalyst for socio-economic development

In conclusion, as government we remain convinced that rural development and the revival of the decaying small towns will be vital in stabilizing the economy of our province.

It is for this reason that this council will be discussing our community outreach programmes to ensure that we reach all corners of the province.

We will be promoting an integrated approach and maximizing on the potential of each district as guided by our Provincial Spatial Economic Development Strategy, which has clearly demarcated the sectors that drive the economy in different parts of the province.

The launch of the District Service Delivery Model and the appointment of Members of the Executive Council as champions of rural development in districts will help improve the level of inter-governmental cooperation.

It is always important to state that rural development has to be comprehensive and all-encompassing. And not just about agriculture, communal gardens, women’s sewing and small poultry projects. I have just met women who have just signed a big deal of poultry. Clearly, we can export poultry to the international consumers.

Rural Development is about creating sustainable economies that will absorb labour and reduce migration to urban centres in search of a better life.

As a champion of rural development through Sukuma Sakhe I am assigned to uThukela District. Over the next few weeks I will be visiting the district to switch on an internet connectivity facility. We will also switch on internet connectivity in UMgungundlovu over the next few days.

When I presented the Budget Vote last year, I committed the department to ensure that the entire KZN is fully broadband-enabled within the next five years. We view broadband as the economic multiplier for all levels of society. We want to see emerging entrepreneurs accessing opportunities in the digital economy. For instance SMMEs that could operate digital centers and sell data.

Weeks ago, I was with the National Minister of Communications and Digital Technologies Stella Ndabeni-Abrahams to launch a Digital Centre in Ndwedwe. This centre was built by MTN.

In one of our digital centers here in Durban we are training thousands of young people on Artificial Intelligence, Digital Content Production, 3D Printing, Cloud Computing, Drone Piloting, Cloud Computing and Software development. We will have a young star from KZN who has produced a business plan on the production of prosthesis for animals. This will be a first of its kind in this province.

As I conclude, I wish to thank members of the media for attending the opening session of this meeting.  We will now continue discuss all items in the agenda.

I thank you