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Mr President, Members of the Council, Ladies and Gentlemen, distinguished guests.

As a South African, I have the honour to stand before you on behalf of my Government and people to salute the people of Tanzania. We, as South Africans, together with our Brethren from Southern Africa shall forever remain indebted to the people of Tanzania. Surely, time will fail to erase from our collective memory the courageous, principled and most hospitable position taken by this nation in the struggle against colonialism, repression and apartheid in our sub-region.

Mr President, the Government of National Unity, which has established a true democracy in South Africa, has set the stage for ushering in a new era in the inter-governmental relations between Tanzania and South Africa. The new political dispensation in our country has resulted in South Africa being welcomed the world over and no longer being the political pariah of yesterday. For this, the Government and the People of the United Republic of Tanzania should take full credit and we, as South Africans, do not only say thank you ever so much Tanzania, but shall never forget our indebtedness to this beloved land and the integrity of its people.

Today, Mr President, I am addressing a rather specialised audience, the Chamber of Commerce, Industry and Agriculture. Permit met, therefore, to share some of my views in that regard.

Mr President, Tanzania, at this time, is South Africa's tenth largest trading partner on the African continent. The latest trade figures available to us indicate that during 1993 South Africa imported US$ 6 million worth of goods from Tanzania. However, that figure fell to approximately US$ 4.3 million in 1994. On the other hand, during 1993 South Africa's exports to Tanzania were valued at US$ 16.6 million. Last year our exports to Tanzania dramatically increased to US$ 53 million. Mr President, this lopsided imbalance in South Africa's favour should be addressed as soon as possible; because, in our view, South Africa's welfare is inextricably linked to that of our region. South Africa cannot be an island of prosperity surrounded by a sea of poverty. Furthermore, in the long run, South Africa's socio-economic development is dependant on a balanced economic development in the Southern African Sub-region as a whole. In this regard, South Africa, as a member of the Southern African Development Community (SADC)
, places emphasis on co-operation in the socio-economic development of our sub-region.

Mr President, South Africa views herself as part and parcel of a continuously integrating economy of this sub-region, consisting of nearly a 120 million people. In this regard, a cornerstone of my Government's foreign policy is our commitment to ensure that economic growth in South Africa would be matched with a corresponding growth within the SADC-region.

Mr President, it should be noted that South Africa does not intend ever to misuse its larger and more industrialised economy, coupled with what has been characterised as the most sophisticated, advanced and developed infrastructure on the African continent, as the means of the economic subjugation of our sub-region or any parts of our region. We, as South Africans, place high stock in South-South co-operation of which the Indian RIM initiative is a positive development. In this connection, South Africa has acceded to an agreement establishing the South Centre. That Centre will be the policy research unit for the Non-Aligned Movement (NAM) and the Group of Seventy-seven (G77)), providing policy analyses, critical to the South economic development and well-being. In that regard, further to our successful hosting of the 1995 SADC Summit Meeting last month, we are slated to host a SADC Consultative Conference in 1996 on the theme "Investment Opportunities in Southern Africa".

At this juncture, I would now like to give a brief review of the current economic outlook for our country. I believe it is significant to note that the present economic upswing in South Africa has, to a considerable extent, been investment-led. Statistics indicate that since March 1993, the real Gross Domestic Fixed Investment in our country had increased by an average of 15.5%, whereas real GDP (i.e. adjusted for inflation) has expanded by only 6.7%. Additionally, the manufacturing and commercial sectors of our economy have dominated the investment cycle, increasing by some 50% over the last two and half year. During the corresponding period, capital expenditure on infrastructure and in the mining industry - a backbone of the South African economy - have risen by only 14% and 4%, respectively.

The effects of that investment-led upswing on the South African economy, had in fact provided a jump start for economic growth. This is being sustained and expanded by the South African Government's and foreign government assistance programmes for the Reconstruction and Development Programme (RDP), as well as by a considerable inflow of foreign capital for re-investment in the South African corporate sector, following the suspension of economic sanctions against South Africa, a few years ago. All these factors have, and continue to positively affect the overall investment rate in the South African economy.

Mr President, we are able to identify three sectors which are currently restricting higher growth rates in the South African economy, namely:

the agricultural industry, which has been dramatically affected by an extended drought;
the gold mining industry, which is facing rising production costs, whilst faced by a stable gold price; and
the Government Sector, which has embarked upon a strict programme of restricting expenditure in order to meet ambitious budget constraints.

The negative affects of these restrictions are under constant review. Plans are being devised to find solutions.

Mr President, South Africa is not only committed to playing its part in ensuring an equitable growth in the economies of our sub-region, but has also laid an emphasis in our Foreign Policy that we should be ideologies our foreign relations by establishing contact with all countries. This, of course, does not imply support for the internal or external policies of those foreign governments with whom we have established relations. That decision merely places us in a position to maximise benefits that could accrue to us as a country and as member of SADC.

Mr President, I hope that the emphasis on the socio-economic relationships within our sub-region, is not construed to mean neglect of our role as a member of the African region. Frankly, I believe, as I recall, one crawls, walks and then runs. South Africa does recognise the movement towards the globalisation of the world's economic relationship and as a part of that, South Africa remains mindful and committed to its obligations in terms of the Uruguay Round and now the newly formed World Trade Organisation. Consequently, South Africa is committee to undertaking far-reaching reforms of its tariff structures and strives to promote the international competitiveness of its economy.

South Africa is also engaged in extensive negotiations with the European Union in order to ensure the extension of a beneficial trading relationship between the world's largest trading bloc and us. In this connection, as a matter of fact, high-level negotiations with officials of the European Union recently took place on 11 and 12 September 1995 in our country.

In a world where regional co-operation and integration is increasingly becoming the norm, the South African Government is committed to ensuring that any potential for the marginalisation of Southern Africa should be combated through the establishment of a sound and sustainable basis of sub-regional economic integration and growth.

Mr President, we wish to note that South Africa's economy and its viability is inextricably linked to that of the African region, particularly SADC, as an increasing portion of our manufacturing goods are being sold in Africa. Nearly 90% of South Africa's exports to the continent are consumed within our immediate region, resulting in approximately one fifth of South Africa's total foreign trade surplus being derived from trade within Africa.

Mr President, we in South Africa have elected the Reconstruction and Development Programme (RDP) as the dynamo to spur on the economic development agenda of our nation, with the view to eradicating poverty and the deleterious effects of our immediate political past. Through the RDP, we intend to erect a free and democratic society, steeped in human dignity based on a strict observance of the human rights of all sectors of our society. This we pledge. This we shall strive for. To this task, we invite all others to join with us in the creation of a new world order, befitting habitation my mankind. For us, therefore, the economic policies outlined by the new South African Government of National Unity, are predicated on the fulfilment and address of basic social needs of large sectors of our society, so long repressed, stifled and disadvantaged by the apartheid policies in our country.

Mr President, I wish to recommend that members of the business community in both of our countries should explore all available avenues and create new ones through well-formulated and strategised forward-looking thrusts and inroads with a specific intention of creating an environment conducive to increased trade through individual and combined business ventures to further increase commerce and trade between our countries. Such activities should also be undertaken with the view to addressing the current lopsided trade imbalance that must, I imagine, impact negatively on Tanzania's balance of trade with South Africa. Increased tourism between our countries could also become another method of addressing that negative imbalance.

In conclusion, Mr President, permit me to add that you, as business executives, people committed to the advancement of commerce and trade, I hope, that I have been able to provide you with a sufficiently attractive scenario to facilitate constructive discussion among yourselves for the potential for business, trade and economic development between our two beloved countries. The achievement of those objectives remind me of one of the political slogans used during the struggle for freedom in your beloved country, which, as I recall, went: "Tutakalo ni uhuru na amani kwa watu wote" (All we want is freedom and security for all the people.)

Asanta sane.

I thank you very much.