ADDRESS BY KWAZULU-NATAL MINISTER OF TRANSPORT, MR S. NDEBELE, TO THE OPENING OF THE CENTRE FOR PARTNERSHIPS IN ENTERPRISE RESEARCH AND TECHNOLOGY TRANSFER CONFERENCE, Durban, 15 August 2000

Master of Ceremonies, members of and partners in the Centre for Partnerships in Enterprise Research and Technology Transfer, business people, fellow compatriots, ladies and gentlemen.

I would like to congratulate CEPERTT for their excellent contribution to our collective efforts, as government and business, in seeking practical methods to stimulate growth, through Small Medium and Micro Enterprises. There is always a general view that if you involve academics in a project, the outcome will be purely theoretical, which hardly helps to empower the ordinary person on the street. However, from what I have been made to understand about your activities, I believe you deserve our full co-operation and support.

Ladies and gentlemen, I am honoured to be part of this important conference, where CEPERTT has assembled renowned experts in the field of business and commerce. We are meeting just a week after the announcement that four enterprises won licences to operate casinos in this province. The province has waited too long for the awarding of licences, and it is up to the winning bidders to speed up the process of putting in place the facilities, which are expected to lead to the creation of job opportunities. If the victorious consortiums live up to the promises they made in their bidding documents, the province is in for exciting economic progress. Certainly, the SMME sector will be the main beneficiary, especially in the form of small-scale contractors during the construction period. In the long-term, the catering and entertainment industry looks promising as well. However, the success of casinos is heavily dependent on factors such as, the manner in which we market ourselves as a province and the quality of service we offer our clients.

Casinos, like other enterprises, should be seen as agents of change for the betterment of the society. They should be the source of empowerment and redistribution of wealth, from the better off, to the poorest of the poor. A wrong gamble for them, would be to ignore the importance of investing in programmes, which would enhance the quality of life among the impoverished sections of society.

KwaZulu-Natal is well positioned for sustainable job creation. Firstly, our province possesses an equal share of natural and human resources, which could be utilised to fast-track growth. Secondly, we are well positioned to attract foreign investment, because of our access to South Africa's busiest ports, in Durban and Richards Bay. With the world class International Conventional Centre, in Durban, and the UN's decision to declare St Lucia, a World Heritage Site, the province is on the verge of becoming the economic miracle of the region. My confidence, in the future of this province, is influenced by what I believe are key ingredients to make a dynamic economy. We have what it takes to be the engine room for our continental ideal, the African Renaissance.

The SMME sector has been dubbed as the hope of the country's economic survival. It is not only South Africa, which looks to SMMEs as the bed rock for its economic future, but the developed nations are also treating it as an effective alternative to counter unemployment. However, our campaign to stimulate growth, through small enterprises, has been thwarted by the lack of access to credit facilities and after care, for budding enterprises.

Earlier this year, Trade and Industry Minister, Mr Alec Erwin, cautioned that unless banking institutions injected more funds into support programmes for the SMME sector, the country would stagnate. I share the same view. While not all banks are scared to invest in the expansion of the SMME sector, most banks perceive it as too risky. This judgement is made, without investigation into possible ways of eliminating the level of risks. It would be unfortunate if government was made to produce legislation, forcing banking institutions to offer credit facilities to bolster the SMME sector. I believe that we can avoid such an intervention by self-regulation, which would mean designing risk-proof programmes for loans, to encourage emerging enterprises.

South Africa is an active participant in a fast integrating global economy, and as such, skills training is imperative for any commercial undertaking. No matter how small a business, it has to be "connected" or "automated" to maintain pace with changing sophistication. However, It would be no use to automate if there are no skills to operate the new technology, which is crucial in promoting productivity and efficiency.

One of CEPERTT's areas of focus is technology transfer. I believe technology transfer should not imply the acquisition of machinery and other sophisticated gadgetry. Any positive transfer of technology, should mean the transfer of knowledge to people in the developing nations, to be able to design, manufacture and operate their own technology, to meet their own socio-economic needs.

If the technologically advanced countries still regard technology transfer as the provision of finished equipment and goods to the Third World, this will help perpetuate dependency on rich nations. Certainly, this will undermine the concept of globalisation and stifle any chances of a genuine African Renaissance. I believe we can reverse the imbalances, by promoting skills training, especially among our future leaders - the youth. Multi-nationals should also give a hand in this regard, by entering into partnerships or joint ventures with local enterprises. I am certain that, this could result in real transfer of skills for technological innovation.

We are aware, that for any country to catch up with the fast integrating global economy, it has to invest handsomely in research, which influences its strategic direction concerning industrial and technological innovations. Countries with successful economies, especially those in the west, have a history of putting aside huge budget allocations for research, which ensures that they maintain their competitive edge over developing nations of the south. Research is crucial in ensuring that government makes informed decisions. However, for research to be effective it has to address the specific needs of a country and provide results orientated development strategies. We can not afford spending on gathering an elitist information which plays no role in the transformation of our society.

We are already aware of some of the problems affecting the growth of small businesses, and we are still battling to find innovative ways to expand this sector from the traditional grocery or spaza shop mentality. I am hopeful that CEPERTT recognises the significance of small businesses to our economy. The quality of the contribution to the economy by the SMME sector will depend on the quality and practicality of research information, to guide aspiring entrepreneurs and policy makers. With the advent of a promising tourism industry, studies should be made into how to draw black people into tourism and hospitality oriented SMME sector.

Ladies and gentlemen, I want to conclude by highlighting another concern regarding the future of this country's economy. I read with pain the reports in the newspapers that South Africa continues to lose the cr?me de la cr?me of our skilled workers, through emigration. Although, I believe in the protection of human rights, I find it difficult that we as a nation should continue spending our limited resources on human resources development, only to lose them to other countries. I think some legislative mechanism should be made to reverse this exodus, and if we do not act, we will see our prospects for economic progress dying.

While we are aware of some factors, which are punted as the reason for people leaving, such as crime and lack of job security, I personally believe that some of these are over exaggerated. We have to be patriotic and desist from pre-conceived thoughts that black rule holds no future for the minority groups. We have the constitution, which protects the rights and the freedoms of all citizens in this country.

If South Africa was driving towards complete anarchy and doom, why are other skilled foreign nationals keen to come and serve our people? Are the Cuban doctors and many more professionals from Europe and Asia immigrating to this country in fear of crime and other injustices in their respective countries? Ladies and gentlemen, I think we have to change our attitudes and be patriotic about our own country.

We are proud of our highly trained compatriots of all races, who are prepared to serve their country through this transitional period, and they deserve our appreciation. Let us make South Africa our home, by demonstrating that its problems are all of our problems. South Africa needs our collective solutions. We need skills to combat poverty, which breeds crime and lawlessness.
With these words ladies and gentlemen, let us work together in making South Africa great. Also in KwaZulu-Natal, let us have a new beginning.

I thank you.

Issued by the Office of the MEC for Transport, KwaZulu-Natal, 15 August 2000

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