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22 August 2007

Programme Director,
Cabinet Ministers,
Our honourable guest Ms Sonia Gandhi,
Executive Managers of Old Mutual and Independent Development Trust (IDT)
Distinguished guests from India and South Africa,
Officials from the three spheres of government,
Business people,
Ladies and gentlemen

Ms Gandhi: President of the Indian National Congress Party

We are pleased to be hosting this dinner in honour of Ms Sonia Gandhi, who is the President of the ruling Indian National Congress Party. Ms Gandhi is also Chairperson of the co-ordinating committee of the ruling United Progressive Alliance.

Ms Gandhi, the Member of Parliament

Ms Gandhi was first elected as a Member of Parliament in 1999 and is currently a member of the Lower House of the Indian Parliament. India is one of South Africa's greatest friends and with Ms Gandhi's visit we are further strengthening this important relationship.

Ms Gandhi's work at an international level

Ms Gandhi is a patron of the Round Square, an international group of schools based in the United Kingdom (UK). Ms Gandhi also served as a member of the international advisory group which assisted in marking the 50th anniversary of the United Nations (UN).

Ms Gandhi, the author

Ms Gandhi has authored two books entitled 'Rajiv' and 'Rajiv's World.' She has edited two volumes of letters exchanged from 1922 to 1964, between Indira Gandhi and Pandit Jawaharlal Nehru. The volumes are titled 'Freedom's Daughter' and 'Two Alone – Two Together.' Ms Gandhi is in many ways, a woman of substance that many people internationally look up to we are proud to host her and for her to have come notwithstanding significant pressures at home. We will be hosting Ms Gandhi during her three-day visit to South Africa, which we hope will further strengthen the historic ties between our two countries. We wish to see women of South Africa and India forge closer alliances.

Partnership between Government and Old Mutual

Tonight, I am particularly pleased that Ms Gandhi is our guest of honour at this partnership launch between government and Old Mutual, one of South Africa's important corporate citizens and one of the old and time-tested companies with a global footprint including in India. Government and Old Mutual are building a partnership through an investment in women. It is an idea that has enjoyed input from colleagues in India.

Jobs for Growth (J4G)

The Jobs for Growth (J4G) programme has a number of partners from the business sector. This evening we are focusing on a joint "Jobs for Growth Initiative" with an Old Mutual section 21 Company called Masisizane (Let's help one another). In this relationship, we will have a mechanism to finance these micro- enterprises and co-operatives so that they grow from a small idea that graduates to:

1. Either small or micro businesses that we can duplicate and create many, many small and sustainable ones that can grow into bigger businesses. Without imposing a super structure that over formalises the business. Either way, they should create jobs and sustainable livelihoods for the women and their families. On that we will pay great attention and give other help as will be needed.

2. This idea and the training we have already done, was inspired by a Non-Governmental Organisation (NGO) from India that we have been working with called "Helping hands". To date they have helped us train a total of one thousand and sixty four (1 064) women-owned co-operatives and six hundred and fifty (650) community based organisations in social mobilisation for effective co-operative participation and on management and technical aspects of co-operatives. This has shown the devotion of our Indian partners as they have visited the country four times to pursue this training. Indeed, they are a helping hand! Thanks to the Independent Development Trust (IDT), which reports to Minister Thoko Didiza, for their unfailing support.

3. We see our relations with India going from strength to strength. We are glad that Ms Gandhi has been part of this history. What is going to be unique about this initiative is that, together with the Ministers of Agriculture, Public Works, Water Affairs and Forestry and the Deputy Minister of Arts and Culture; Deputy Minister Elizabeth Thabethe will help us all find a value chain and markets and products that will make J4G work. Old Mutual has gone an extra-mile not to throw money at the problem but to walk the talk. I therefore like to thank Rojie, Paul and the team. Jim, thank you for your support as well.

Economic growth, small, medium and micro enterprises (SMMEs) and co-operatives

If government is to meet its target of economic growth, which includes halving poverty by 2014, then it is important that women be active in SMMEs and co-operatives. Our strategy for growth must be geared towards the grassroots people. This is but one of our strategies for growth to move from a total dependence on the formal economy and large companies to investing in people where they are shared growth is about direct redistribution economic justice not trickle down. Growth at formal economy level will not redistribute itself, we need to creative and people centred. Development of poor people is labour intensive and unorthodox. We have to address the inequalities in our society by going to where people are at a grassroots level in order to liberate our women, one woman at a time while gathering momentum and building hundreds and thousands of seeds and flowers that must blossom. That is the essence. Every municipality and ward must be a site of economic struggle.

Department of Trade and Industry (DTI), one municipality, one product

And we will build blossoms at every municipality together with the Department of Trade and Industry through the proposed one municipality one product initiative. In doing so, we are forging partnerships with bigger players who can support through access to finance, as we have with Old Mutual South Africa (OMSA), business skills, as we have with Helping Hand, retail networks and product development as we have done with Score, Mr Price and Shoprite.

In the preliminary evaluation of J4G we identified weakness for example double counting, cost of creating jobs, quality, design capabilities, middle-personing. For each weakness we want a correction.

SMMEs and co-operatives

In many countries women are active in SMMEs and co-operatives. For example, in some countries up to 90% of businesses are either family-owned, SMMEs or co-operatives. We have to stop over formalising small enterprises while not entrenching the exploitation of women. J4G is, therefore, for creating many opportunities prioritising women and decentralising Black Economic Empowerment (BEE).

Getting ordinary people into Local Economic Development (LED)

In terms of "democratising" our economy, we want to greater spread the benefits of economic growth to rural areas and to townships and to use their indigenous knowledge and the so-called dead assets in the hands of the poor, land, indigenous knowledge and more. This is about getting ordinary people, ordinary women and their families to become part of the LED. Thank you OMSA for believing in ordinary women the so called high rise.

J4G and women businesses

This is the best investment you will ever make. We intend through J4G to create a nest to hatch women businesses, to grow them. No idea is too simple or irrelevant if it will help us get jobs and empower women.

Relevance of women-owned businesses

In an economy such as ours, the fastest growing businesses are women-owned. In fact, this is because self-employed women are able to balance their lives by being economically active whilst "running" families. We do not wish to disrupt that as we support women getting into commanding heights of the economy.

Masisizane

We are pleased that Old Mutual's programme Masisizane has set up a R20 million project to fund co-operatives and women entrepreneurs in partnership with government's "Jobs for Growth" Initiative. This capital we intend growing by contributing from government and other corporations. This is about building South Africa where it matters most.

The agreement between the Government and Old Mutual

Government and Old Mutual will work in partnership to ensure co-operatives receive business agreements with major retailers and other corporations. Co-operatives will also receive mentoring and business support arrangements.

IDT's role

The fund will be housed within the Independent Development Trust (IDT), that has done a good job and an Investment Committee comprising of Old Mutual, IDT and the government will assess projects. Once the Investment Committee has approved projects the IDT will disperse the monies.

Wishing Ms Gandhi well

We are glad to have Mrs Gandhi to witness this day and to share her own thoughts with us. We look forward to Ms Gandhi's presentation called, The Relevance of Gandhian Philosophy in the 21st century, at the Inaugural Lecture in the Gandhi Lecture series, to be held at the University of Cape Town tomorrow. We wish Ms Gandhi well in the future and wish the people of India all the success.

Gandhian philosophy

What we want to take with us today and for all of us, from the Gandhian philosophy, is relevant to what we are trying to achieve here giving the ordinary people a chance to build their future and to liberate themselves.

Our future depends on what happens to ordinary women

To use what we have and to believe in our own resources, what we often call Proudly South Africa, this is what this is about. A future we are building for the people of South Africa which in many ways depends on what happens to women at grass-root levels – if we do not change that reality everything else we change is superficial and women will not be emancipated by a trickle down approach. We have to deal with their needs directly and they are part of the solution. Gandhi lived that philosophy and now 100 years later with globalisation, thinking global and acting locally remains even more relevant. Through partnerships we can create and better South Africa, a better Africa and a better world.

I thank you.

Issued by: The Presidency
22 August 2007
Source: The Presidency (http://www.thepresidency.gov.za)