Edited extracts from the KwaZulu-Natal State of the Province address by the Premier, Hon Mr JS Ndebele, Pietermaritzburg, 13 February 2008

Apex priorities
The national Cabinet Lekgotla in July 2007 proposed 24 Apex Priorities of government. These have now been formalised by President Mbeki in his 2008 State of the Nation. In response to the national Cabinet Lekgotla’s July proposals, the provincial government at its Indaba held at Ugu District in October 2007 adopted the following programme of action:
• Implementation of anti-poverty strategy and second economy interventions
• Fighting crime and eradicating corruption
• Integrated approach to basic service delivery
• Development of human capability and quality education
• Provincial infrastructure and investment strategy
• 2010 FIFA World Cup
• Enhancing key areas of international relations
• Building the capacity of the state to deliver
• Agrarian revolution, land and food security
• Accelerate the fight against HIV and Aids, other communicable diseases and promote healthy lifestyle.
• Patriotism and social cohesion

It is to this plan that all our programmes as government will speak and unfold henceforth. This is in order to determine the speed with which we hope to attain our goal to better the lives of all in our beautiful and vibrant province. These priorities indicate our firm commitment to advancing service delivery. But how do we go about achieving this?

We recognised the need to invest heavily in our education and training. We have launched an offensive against crime, poverty and disease. But like all other programmes of government, these could and will not be successfully carried out without ensuring that the machinery of government functions collectively with communities and implemented optimally, efficiently and effectively.

Allied to this we also intensified our international relations because we believe fervently that self-isolation and an insular existence is unsustainable in a globalising world.

In 2004 we made major strides in settling the past and ensured that peace, democracy and development permeates every aspect of KwaZulu-Natal (KZN).

Growth and development
The KZN government has embarked on a strategy to woo investors to the province. In the previous two years, government delegations went to the United Arab Emirates with the aim of influencing investors to come to KZN.

In January 2008 a memorandum of understanding was signed between the KZN government and an international developer based in Dubai. In February this year the CEO of the investor group visited our province to finalise the master plan presented at the end of March 2008. We expect work to start soon thereafter.

The project involves a multi-billion rand investment on the northern side of uThukela River in the Macambini area. The project will be implemented in phases and will create tens of thousands of permanent jobs. This will be the fifth project of its kind in the world based on the concept of a ‘City within a City’. As added value, an imposing statue of King Shaka will be erected as part of this project through private funding. Ingonyama Trust has made an in-principle agreement to this initiative.

This is an appropriate time to leverage this unique opportunity to implement a policy to encourage the development of integrated resort communities and tourism attractions that will create an economic and social multiplier on the investments made.

The social and economic benefits to our people include skills training, employment, improvements to infrastructure, educational, health, vocational and commercial opportunities as well as specific economic benefits to the local community and the province from the revenues generated.

The project will be a fully integrated tourist destination located on approximately 7 500ha of land. It will comprise a variety of market-segmented residential communities, entertainment attractions, hospitality, education, healthcare, leisure, retail and commercial offerings. We plan to make a detailed joint announcement in this regard in the coming weeks.

Economic growth
The GDP per region (GDP-R) of the province is now the second largest in the country, after Gauteng. The provincial government has managed to reduce the unemployment rate from 33% in 2004 to 29.2% in 2007. (Labour Force Survey, StatsSA 2007).

The province’s own economic development strategy which was developed over the last three years, aims to:
• transform the structure of the provincial economy and narrow and eventually eliminate the gap between the first and second economies
• increase investment in the province
• build skills and capacity
• broaden participation in the economy
• increase competitiveness

The economic eevelopment programme is vital as our society is undergoing rapid change that sees more and more people on the move having to adjust to new environments and new challenges. In this time of sometimes bewildering change, we need to create the conditions for interdependence and interconnectedness which are central for a caring society.

In order to maximise the collective impact and synergy of government interventions in pursuit of the reduction of poverty and growing the economy, it is of critical importance to improve the spatial alignment and integration of resource allocation.

The Provincial Spatial Economic Development Strategy (PSEDS) database provides a mechanism to capture and reflect all capital projects spatially over the MTEF period while the Provincial Nerve Centre (PNC) is being used to obtain a single view of the province. The PSEDS database and the PNC are being used as cutting edge technological systems to assist our developmental decisions.

The KZN Growth Fund provides medium to long-term funding in the form of senior and mezzanine debt for sustainable infrastructure and related projects within the province. The Fund’s Investment Committee has approved projects with an estimated value of R414-million spread across key economic sectors such as manufacturing, transportation and logistics and agri-processing.

This investment is set to yield an estimated 836 new and direct jobs. Approximately 40% of these projects are in outlying areas within the province and through these 12 approved projects the fund has also been able to promote significant black economic participation as a strategic imperative and requirement throughout all its current approved projects.

Local economic development
It is essential that self-sustained financial development is fostered in government-facilitated local economic development (LED) and in the private sector. Our government is passionate about LED as a conduit to improve the quality of life of our people.

To date just over R95-million in grants have been committed to 182 LED projects across the province. At least R41-million has been leveraged from the private and public sector in the form of co-funding, giving a total project value of R136-million. In the last five months 14 projects have been completed. In the pipeline and awaiting European Union approval are 23 projects valued at R70-million.

Growth of the KwaZulu-Natal cooperative movement
Cooperatives have been identified as an appropriate business form to drive development in the second economy and to help close the gap between the first and second economies in KZN. Cooperatives are significant economic actors in the KZN provincial economy. According to the indicator measurement, the province is on track with regard to the establishment and sustenance of cooperatives as social enterprises.

The province has set a target of 1-million members to join various types of co-operatives by the end of 2009.

International relations
From 2004 to 2008 KZN has witnessed an unprecedented growth in international relations. Whereas before 2004, the province only had two active cooperation agreements, there are now more than 11 active cooperation arrangements spacing the globe.

To highlight a few:
• KZN has established no less than three partnerships in China, the emerging giant in the global economy, namely with Fujian province, Shanghai and Jiangsu province
• Carefully nurtured relations with Belgium have seen more than R200-million flowing to the province, primarily aimed at the Food Security Programme
• We are currently engaging France, Germany, Italy and Le Reunion Island as part of a strategic process leading us to 2010 and beyond
• Cooperation with India, a world leader on small-farm techniques, is steadily increasing
• In line with the Kyoto Protocol on Climate Change, we had established links with Queensland, Australia, on sustainable development and climate change, following an agreement signed in 2007.
• Following a visit to Japan in 2007, the Governor of Shizonka province, one of the richest in that country will be paying an official visit to KZN to engage the province on cutting edge technology in the automotive industry. We are also pursuing closer cooperation and trade links in the tea industry with Japan.

The relations built with Maputo and other neighbouring states will be strengthened, particularly in the areas of commerce, health and cooperation between security services. As we enter 2008 we would like to convey our deepest condolences to our Mozambican neighbours as the country faces the worst floods in 50 years.

As announced by the President, South Africa is heavily involved in post-conflict reconstruction and development in Africa. Under the guidance of national government, our province will be exploring cost-effective ways to support countries such as the Democratic Republic of Congo in re-establishing functioning government structures, using our own hard-won experience.

Conclusion
In 2004 we said: ‘In the life of every society there comes a time when the door opens and lets in the future’.

In 2005, we committed to building and creating a ‘normalised society and creating a winning province’.

In 2006, we committed to ‘social stability and economic growth’.

In 2007 we took the next step to “building the economy through partnerships’.

In 2008 we commit ourselves to ‘meeting your aspirations through accelerated
service delivery’.

We take pride in the fact that together we have created KZN as a peaceful province with a vibrant economy, with a pride of ancestry and a clear vision for the future.

Contact the KZN Office of the Premier:

Mr Cecil Msomi
Tel.: +27 33 341 3342
Fax: +27 33 345 8490
Email: damanezp@premier.kzntl.gov.za
Website: www.kwazulunatal.gov.za