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14 May 2007

Good day members of the media. Thank you for coming to embrace this very important occasion, the launch of Accelerated and Shared Growth Initiative for South Africa (AsgiSA) Eastern Cape Pty Ltd. Our meeting that we have had this morning was a successful one. I am confident that the way forward mapped out will undoubtedly take us to the higher levels in the economic growth of the province especially the eastern part.

Ladies and gentlemen, the Eastern Cape government is moving swiftly in ensuring that it meets its target to halve poverty in the province by 2014, as the process of establishment of a fully-fledged AsgiSA Eastern Cape Pty Ltd special purpose vehicle for this is gaining momentum. The AsgiSA Eastern Cape Pty Ltd will see its wheels moving fast as I have now appointed its new board of directors this morning. The board has been selected in such a manner that it brings all expertise from renowned sons and daughters of the province inside and outside the Eastern Cape.

The provincial government is the sole shareholder of the company. The company's task is to effectively and efficiently manage the mega-projects in the Eastern region to yield the desired fruits much awaited for by the citizenry of the province. It is aimed at facilitating and crowding investment for AsgiSA in the province and to create a natural link between the booming first economy and developing second economy. By this way, the Eastern Cape government is renewing its pledge to foster national partnership to build a better life for all!

AsgiSA Eastern Cape Pty Ltd will focus on the following mega-projects: The first is the multi-billion Umzimvubu Basin Water Management project which is expected to create 300 000 jobs. This project will strengthen water security and electricity supply in the province and nationally. It will be linked with an irrigation scheme covering a large section of the former Transkei, which will be used for grain production in the summer and canola for bio-fuel production in winter.

There will be other economic spin-offs from the project. The second project will include beefing up of Eastern Cape's forestry and timber industry. The latter project is part of the goal to acquire 100 000 hectares of trees in the province that will be forested in the coming decade. Nationwide the timber industry has employed about 170 000 people and has annually contributed about R16 billion to the economy and is expected to play the similar role in the province.

The two projects will also contribute to the development of Mthatha as a third major city in the province. Thus, while Coega Industrial Development Zone (IDZ) and East London IDZ carry on with their further development of the cities of Port Elizabeth and East London in the west, AsgiSA Eastern Cape Pty Ltd will focus on the development of the eastern side of the province. This will not only bring urbanisation to the largely rural area, but will also balance economic scales of the province and bring a better life for all the people of the Eastern Cape. This entity holds the key to bringing economic vitality to the eastern part of the province. The interim board that was set to lay grounds for the formal establishment of the company will now automatically dissolve with immediate effect.

The new board of directors will not take the baton and drive the process forward. It will craft a way forward on how to conduct future business which will include the finalisation of the recruitment of the new Chief Executive Officer of AsgiSA Eastern Cape.

All its endeavours would be to halve poverty in the area by 2014 and make the Eastern Cape a compelling place to live, and invest.

Ladies and gentleman members of the media, I have the pleasure to announce the members of the board of directors of AsgiSA (Eastern Cape) Pty Ltd. They are:

* Mr Claasen, Gert
* Mr Ferreira, Nico
* Pro Jafta, Nondumiso
* Mr Macozoma, Saki
* Ms Manase, Zodwa
* Dr Nkonyeni, Archie
* Mr Nkuhlu, Andile
* Pro Nkuhlu, Wiseman
* Mr Phakathi, Xola
* Ms Serobe, Gloria
* Mr Zilwa, Sindy
* MEC for Economic Affairs Environment and Tourism, Mr Mbulelo Sogoni as an ex officio member. Mr Kevin Watford, my economic advisor and Mr Andrew Murray will act as technocrats.

They are a special chosen breed for the good that they have done in the province. I wish all of them, good luck. We pledge our support as Eastern Cape government at all times.

I thank you.

Issued by: Office of the Premier, Eastern Cape Provincial Government
14 May 2007
Source: Eastern Cape Provincial Government (http://www.ecpg.gov.za)