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Programme Director,
The CEO of Mafube Publishing, Mr Thami Mazwai,
Honoured guests,
Ladies and gentlemen,

Thank you for affording me this opportunity of spending such a wonderful evening with you.

I am always delighted to spend time with our host this evening, Thami Mazwai, especially when we meet on occasions such as this. That is because the two of us spent time together in less pleasant circumstances in the past, as guests of the apartheid state in Leeukop Prison!

I am also in good spirits when meeting professionals and business people because of the progress we have made in our country so far. When we came into power in 1994, we inherited an economy that was in serious decline by all known standards. The country was reaping the consequences of apartheid rule and all the indicators were negative.

Sanctions had caused the economy to be inward looking and it was not able to respond appropriately to the demanding challenges of globalisation. Our finances were in tatters, the policies were not aligned and we urgently needed to make this ship seaworthy again.

As we have all witnessed over the last eight years, we have indeed turned this ship around in quite an admirable fashion, even if we have to say so ourselves. Our growth rate has been steady, averaging around three percent, and in the last month, it has been revised from 3 to 3.8 percent for the second quarter. This figure becomes doubly significant when viewed against the current global downturn in both developed and developing economies.

Our macro and fiscal outlooks have become steady and secure. This year's budget deficit, for example, will only be 1.7% of GDP. By way of example, we should note that when we came into power in 1994, the deficit was 9% of GDP.

This has ensured that, increasingly, we could make our budget more expansionary, thereby making more money available for social services and infrastructure development. The preliminary medium term budget statement is indicative of this increased spending to further meet the needs of our people.

The best news of all has been the fact that the Rand has been the best performing currency against the dollar this year, as opposed to the situation the same time last year. The only blight this year on the economic front has been the rise in inflation, largely because of external factors such as the high oil price and the sharp depreciation of the rand in the last quarter of 2001.

In this promising economic outlook, it becomes possible for us to indeed work towards accelerating the participation of the historically disadvantaged in our economy. Clearly you have a critical role to play to steer this economy on the right path and to make us a prosperous nation, being able to deal with our historical legacies and the current local, continental and global challenges.

In this regard, Black Economic Empowerment is critical for both economic growth and meeting the needs of our people in the quest for a better life for all. Under the auspices of the Black Business Council, a Black Economic Empowerment Commission was established, which submitted a report to government in 2001.

There is a general understanding that Black Economic Empowerment should be broad-based and benefit the majority of South Africans. It should seek to redress the imbalances of the past by seeking to substantially and equitably transfer and confer the ownership, management and control of South Africa's financial and economic resources to the majority of its citizens.

The basic approach of government is to ensure that Black Economic Empowerment is the responsibility of all Government departments, the private sector and civil society. The strategy should therefore be well coordinated.

Over the last two years, we have seen measurable progress being made with regard to reaching the objectives of Black Economic Empowerment, in many sectors including, recently, areas such as petroleum and the minerals sectors.

Government's procurement policies have also assisted directly in this regard. The upcoming Telkom Initial Public Offering also represents an opportunity for further broad-based empowerment for everybody, especially the historically disadvantaged.

Fellow compatriots, nothing comes easy. We have to work hard to achieve our objectives. Let us remember this in our quest to develop the economy and to improve the quality of life of South Africans.

Let us also not forget our roots and the need to let everybody share in the fruits of the new South Africa, so that it is not confined to a few individuals, instead of the broad mass of our people. With this approach, we can and will only go from strength to strength and reach our admirable goals.

Brothers and sisters, let me also remind you that opportunities abound in the continent, and that we rely on you to establish strong economic linkages with your counterparts in sister countries on the continent. Already, the climate looks positive. The new political leadership on the continent is determined to turn things around, and extricate Africa from underdevelopment, strife, hunger, and disease.

The launch of the African Union, and the various programmes in place, such as the New Partnership for Africa's Development, are designed to facilitate and accelerate the process of the economic, social and political revival of the continent.

You would be aware as well that part of the revival includes resolving, managing and preventing conflicts in the continent, an area in which South Africa has played a key role.

I returned from New York yesterday, from a mission to brief the Secretary-General of the United Nations, Kofi Annan, and the UN Security Council on the signing of a cease-fire agreement between the largest armed movement in Burundi, the CNDD-FDD, and the transitional government of Burundi.

The conclusion of the agreement was indeed a victory for peace in the continent as it shows that we are moving forward in the process of restoring peace and stability in Africa.

We received an overwhelmingly warm and supportive reception at the United Nations, which gave us encouragement that we have the organisation's support on the way forward in implementing the cease-fire agreement.

The positive aspect of this agreement as well is that it was homegrown as it was produced by Africans in Africa, and that its implementation will also be strongly African. An African Mission is to be established soon, to work on the verification, monitoring and implementation of the agreement. We went to solicit United Nations support in backing the African Mission, and also in providing humanitarian and other assistance.

This agreement was the third in Burundi, as we have we have secured cease-fire agreements with two other movements, leaving one outside the process, the Palipehutu-FNL, which we intend to engage in negotiations again soon.

South Africa is also still actively involved in searching for a peaceful political settlement in the Democratic Republic of the Congo as well, having also been instrumental in the signing of the Pretoria Agreement between Rwanda and the DRC in July.

We are active in these processes because we are driven by the passion of seeking peace, stability and democracy in the continent. We believe there can be no sustainable development or prosperity if there is conflict and wars in the continent, not to mention the human suffering and pain that goes with all these conflicts.

We trust that our professionals and businesspeople will become involved in some way in these processes, through establishing links with counterparts, and also taking a general interest to be able to analyse and interpret these events for the public.

Colleagues, let me also remind you of the responsibility you have in society as positive role models for the youth. They look up to you and realise that some goals are achievable in life. It is that kind of responsibility that encourages all of us and gives us hope of a brighter future.

In that vein, let me thank Thami Mazwai and indeed all of you for the contributions to the Jacob Zuma Educational Trust Fund this evening, which is the only source of funding for hundreds of needy schoolchildren.

Let me; in conclusion also thank Mafube Publishing for bringing us all together to end the year in celebration.

May the year 2003 be prosperous and successful for all.

I thank you.

Issued by The Presidency

10 December 2002