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DURBAN, 4 NOVEMBER 1997

INTRODUCTION

MASTER OF CEREMONIES, DR. KORNEGAY,
HONORABLE EXECUTIVE DEPUTY PRESIDENT, MR. THABO MBEKI,
HONORABLE REPRESENTATIVE OF THE DANISH GOVERNMENT,
MINISTER PAUL NIELSEN,
HONORABLE MINISTER OF TRADE AND INDUSTRY, MR. ALEC IRWIN,
HONORABLE MINISTER OF PROVINCIAL AFFAIRS AND CONSTITUTIONAL DEVELOPMENT, MR. VALLI MOOSA, HONORABLE MINISTERS, EXCELLENCIES AND MEMBERS OF THE DIPLOMATIC CORPS, DISTINGUISHED PARTICIPANTS,
LADIES AND GENTLEMEN

I consider it an honor to have been asked to address you today.

It is, indeed, a great pleasure for me to be here in Durban on this important occasion.

The theme of this conference, Small Business: The Engine of Local Economic Development, is of great significance to government economic policy and its commitment to creating a better life for all.

Government's focus - as reflected in the Reconstruction and Development Programme and the Growth, Employment and Redistribution strategy - is to provide meaningful socio-economic development through empowering and uplifting our people, particularly for those disadvantaged under apartheid.

DEFENCE AND DEVELOPMENT

Defence plays an important part in this, as it serves to uphold peace and security so as to create a stable environment - the essential prerequisite for social advancement and economic development in our country.

Through our new policy, articulated in the White Paper, Defence is situated firmly in the context of development and of reinforcing Government's priority of socio-economic upliftment.

Our Defence Review, which is adding detail to the policy framework established by the White Paper, has built consensus around our need - in an uncertain world - to retain an effective defence force supported by an appropriate local Defence industry.

Approval by Cabinet and Parliament of the first phase of the Review, allows Government to focus on its practical implementation - in particular, on the acquisition of major items to replace ageing equipment in the Defence inventory.

NEW OPPORTUNITIES IN ACQUISITION

In this respect, our new democratic era has opened the way for strategic economic co-operation with major international partners - many of whom are offering attractive Defence procurement packages that provide for substantial investment in the South African economy.

The evaluation and acquisition process is being supervised by a joint team of Defence, Finance, and Trade and Industry Departments, guided by the respective Ministers.

In assessing the merits of the various packages, to ensure quality equipment on favourable terms, this team will also ensure that the acceptance of a prospective package is dependant on substantial participation by local industry in the development, production and sale of Defence systems, and the related, and much sought after, access to major international markets.

We will ensure that, in addition to the provision of modern Defence equipment, these packages promote social and economic projects leading to greater industrial development and employment opportunities in South Africa.

Most significantly, these agreements will also ensure that previously disadvantaged business groups are given opportunities to participate.

This will be accomplished through the affirmative tendering out of requirements, and the active encouragement of Black business to participate.

In this regard it should be borne in mind that such arrangements will cover the full spectrum of businesses - large and small, and both civilian and purely Defence related.

By giving our economy and industry a major boost, these agreements will enormously benefit our GEAR Strategy.

THE SERVICE CORPS

But Defence is also assisting the economic empowerment of the previously disadvantaged at the micro level.

As part of our policy of de-militarising, we are cutting the present strength of the defence force from 100 000 to a more appropriate peacetime level of 70000.

In order to assist veterans, and those who have recently demobilised, to reintegrate into society, a Service Corps has been created to provide them - on a voluntary basis - the opportunity to acquire the necessary skills.

Instructors are being trained and funds are being sought from abroad for the development of this project.

The mission of the Service Corps is to upgrade the education, and vocational and life skills of ex-service members, to enable them to find employment or start their own enterprises.

The Service Corps Programme includes vocational training in fields such as:
Micro Manufacturing;
Business Skills and Enterprise Development;
Agricultural Skills;
Industry Training; and
Capacity and Institution Building.

There is a practical experience phase to enhance individual competency, and the objective here is to utilise members in projects of national interest, such as the National Public Works Programme and the RDP, as well as in private sector projects.

A placement and aftercare phase gives guidance and assistance in finding jobs or in starting a small business.

With the unemployment situation as it is in South Africa, simply putting someone through an educational programme and then sending him or her back into the civilian life is not the answer, as they would have to compete against other job seekers and sophisticated placement bureaus.

The Service Corps is, therefore, embarking on a strategy to inculcate an entrepreneurial culture into its organisation, so as to give the member a better perspective of opportunities, how to identify them, and how to use them.

While we are aware that not all people wish to be entrepreneurs, there is a need to nurture a spirit of entrepreneurship to create an environment for empowered and sustained economic participation and growth.

Having identified major role players in the field of entrepreneurship and small business, the Service Corps is forming "working partnerships" with the likes of the Council for Scientific and Industrial Research, which have programmes providing practical solutions to identified social requirements.

With entrepreneurship and partnership as cornerstones, the Service Corps will strive to stay abreast of all opportunities where job placement or self employment can be realised.

Through the Department of Trade and Industry, the Service Corps is looking to institutions, such as Ntsika Enterprise Promotion Agency and Khula Enterprise Finance - established after the President's first National Conference - to champion the cause of the small businessperson and his or her access to finance.

Defence is, therefore, not only creating new opportunities for Black business to participate in major economic projects, but also releasing into the economy disciplined ex-service members equipped with relevant skills and imbued with an entrepreneurial spirit.

This is surely adding suitable fuel to the engine of local economic development.

CONCLUSION

In conclusion Ladies and Gentlemen, we must create the basis for dynamic socio-economic development - in which everybody can participate - so that our society can transform for the better.

This conference represents a way of achieving this, and of building on the progress already made in promotion of small businesses in South Africa.

The working groups are sure to provide a stimulating forum for analysing the challenges and advancing new solutions.

I can promise that the Ministry of Defence will not only take serious note of your decisions and recommendations, but is also looking forward to them, in order to assist us in enhancing our contributions to the empowerment of our people.

Let us develop the wonderful talent and potential that we know they possess.

Let us invest in them to create a better life for all.

I wish you success in your deliberations.

I thank you.

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