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9 December 2005 

Programme director
Colleagues from the Executive Council
Colleagues from the Provincial Legislature
Executive Mayors
Councillors
Distinguished guests
Ladies and gentlemen

I am pleased to be part of the event that recognises the contribution made by men and women of our province towards economic growth and development of the Free State.

Their role enables us to have a meaningful contribution in the overall gross domestic product (GDP) of our country. Through their contributions, the province has a competitive advantage to participate in the global economy.

The last five years has been a true honour for the department in hosting this auspicious event. We are proud to say that through the participation of business, local governments and other key role players, this event has grown in stature and has proven beyond doubt to be one of the prestigious events in the calendar of the province.

Testimony to the success stories of these companies, we are compelled as government to commit ourselves in finding ways of expanding their enterprises and ensure that we bring more participants into the field of exports.

Our commitment will strengthen our partnership and further enable us to accelerate tangible economic growth and achieve sustainable development that is so much needed to tackle the socio-economic challenges that our government is faced with.

Our partnership gives us the competitive advantage to unite under a common understanding of being Proudly South African.

I hope all these companies subscribe to the Proudly South African campaign, which is the corporate identity that identifies local products with our country.

Subscribing to the Proudly South African campaign provides each entrepreneur a chance to play a meaningful role in the promotion of our country.

This campaign accords every entrepreneur with an opportunity to be both the architect and beneficiary of economic development. More importantly it gives exporters an opportunity to entrench the South African brand in the global market.

Once the international market identifies with our brand as a country, we will begin to have acceptance of the international markets and in the process increase our market share.

I hope economists will agree with me when I say once market share is on the increase so will our contribution be towards the national GDP.

Economic sectors

The Provincial Growth and Development Strategy (PGDS) highlighted certain sectors as the ones that would be engaged in bringing concrete economic growth and development to the Free State.

The economic vision of the province as depicted in the PGDS is based on taking advantage of its human capacity, material resources, environment as well as proper management of all other natural resources.

The following are sectors involved in international trade exports:

Floriculture

The province has an advantage because of the opposing seasons of the southern and northern hemisphere. The province exports approximately 1,2 million cut flowers per annum to Netherlands as its main market, followed by Switzerland and Australia.

Fruit and vegetables

Approximately 100 000 tons of vegetable and 40 000 tons of fruits are produced every year. The industry is expanding and becoming increasingly export-oriented; however, most produce leaves the province unprocessed.

Leather tanning

The Free State is a major producer of livestock for South Africa. According to the Department of Trade and Industry, the manufacture of automotive upholstery leather in South Africa is increasing dramatically, with South Africa currently the world’s second largest producer of automotive leather.

The Department of Trade and Industry went further to estimate the world demand for leather as increasing at an average rated of 5,3% which is valued to more than US$150 billion. The largest importers are Germany, Italy, France and the United States of America.

Jewellery manufacturing

Although there is a decline in the mining industry in the area of Lejweleputswa, the Economic, Employment and Investment cluster has made significant strides in improving the jewellery industry’s competitiveness in the Goldfields area.

Investments have already been made in Virginia through the Royal South African Manufacturing Jewellery School. The initiative has opened opportunities to young people to develop and unleash their creativity in this field and accord them with an opportunity to participate meaningfully to our economy.

Agro-industry development

The shift from the conventional farming to commercial farming has yielded positive results. It has seen more black farmers acquiring shares in business ventures and taking active roles in the economy.

Programme director, sectors I referred to earlier have their fair share contribution to the GDP at market price. Contribution can be illustrated as follows:
* Agriculture contributes 6,7%;
* Mining and quarry 11%;
* Manufacturing 12,7%
(Source: Stats SA - 2002)

Agro-processing is but one of many ventures our companies can take full control of and ensure value adding to our produce, thereby broadening beneficiation.

Programme director, from what we have seen earlier this evening, it is clear that the province is still faced with a challenge of representation of women and small, medium and micro enterprises (SMMEs).

Our national government interventions have set a continental and international platform to make it possible to root out challenges facing our SMMEs to enable them to operate in a free and fair business environment.

The Free State Provincial Government (FSPG) commits itself to continue penetrating international markets in order to open markets to ensure that it diversifies sectors markets for new initiatives.

We are gathered here tonight to celebrate with the finalists and the winners of these awards, to acknowledge their invaluable contribution to economy.

I would also like to congratulate companies that will walk away with awards from various categories.

I also would like to challenge all other Free State companies to follow your example of being willing to open up your organisations and subject yourselves to a vigorous adjudication process which was geared to helping you to become even more competitive in the local and international trade markets.

I salute your commitment to excellence and nation building.

I thank you.

Issued by: Office of the MEC for Tourism, Environmental and Economic Affairs, Free State Provincial Government
9 December 2005