Speech  by the Executive Mayor of Johannesburg, Councillor Amos Masondo, on the  occasion  of  the  soweto  business  engagement session, Ubuntu Kraal, Orlando West, Soweto – Johannesburg

Programme Director: Mr Caesar Molebatse
MMC for Finance and Economic Development: Clr Park Tau
Members of the Mayoral Committee
Fellow Councillors
City Manager: Mr Mavela Dlamini
Managers and Officials of Council
University of Johannesburg Center for SMMEs Development Programme Director:
Thami Mazwai
Soweto Chamber of Commerce and Industry Representative: Ms Nxumalo
Distinguished Guests
The Media
Ladies and Gentlemen

Programme  Director,  this  engagement  takes  place  at  a  time  of great uncertainty  in  both  the international and local financial markets. There can  be  little doubt that the economic mood in South Africa and abroad has become  less  confident  in recent months following the collapse of some of the biggest banks in the world and the sharp decline in commodity prices.

South  Africa  has  not  been  immune  to  these  global  trends. The local situation  was  to  some  degree  also  aggravated by the restraints in the electricity supply and a number of bottlenecks in the construction sector.

However  the  country  is  also  now  reaping  the benefits of very prudent financial  and fiscal policies over the past few years and a well-regulated yet  complete  it  is  already  clear  that,  compared to many of the other economies  of  the  world,  South  Africa  will  eventually emerge from the current crunch to borrow a sporting phrase – "bloodied, but unbowed."

In  this  regard  it  is  important to note the recent remarks by President Kgalema  Motlanthe  that  "in a turbulent political economy, we will remain true  to  the  policies  that  have kept South Africa steady, and that have ensured sustained growth.

"We  will  intensify  the all-round effort to accelerate the rate of growth and  ensure  that  the  benefits  of  growth  are equally shared by all our people.

I  would  like  to  believe,  Programme  Director,  that this commitment to continuity  and  steady economic growth will again be emphasised by Finance Minister,  Trevor  Manuel,  when  he  delivers  his Medium Term Expenditure Framework in Parliament tomorrow (21 October).

Ladies  and Gentlemen, Johannesburg as the economic engine room of Southern Africa  is,  obviously,  directly  affected by decisions taken at the macro level.  And  you as the business community are always the first to feel the pinch of an economic downswing.

As  you  are  aware  we  have  set  ourselves an economic growth target for Johannesburg  of  at  least 50% above the national average. If the national growth  rate  moves  up  to  about six percent it means that Johannesburg's economy  must grow by nine percent to achieve our medium term objectives to reduce poverty and create sufficient employment opportunities by 2014.

Despite  the current climate we remain optimistic that these targets can be met. The sectoral composition of the City is such that challenges that slow down  growth  in one sector may well create opportunities for other sectors to move in and fill the gaps.

We  are  confident  that  the  City  will emerge stronger than before if we continue  with  our  approach  of  balanced and well-managed growth that is supported by the appropriate policies and interventions.

We  are  not  chasing  after  economic  growth for its own sake. As a local government  with  a developmental mandate we recognise that the benefits of growth  must  be shared in an equitable manner among all Joburg's citizens. This  will enable us to make a meaningful impact on the standards of living of our communities.

Programme Director, government cannot achieve these targets on its own. The current trying times have again emphasised the fact that we are all in this boat  together  –  government, business, labour, communities, and civil the society.  None  of  us will escape the consequences if the boat sinks – but also  together,  we  will  be  able to survive and share in the fruits of a prosperous future.

It  is  for this reason that we welcome this first engagement with business in  Soweto. This engagement demonstrates a commitment to a common objective that goes beyond the narrow interests of individual businesses and looks at society from a much broader perspective.

It  is  also heartening to know that we have with us a group of businessmen and women who have been tempered in the struggle for political and economic rights.  There  was  time,  not  long  ago,  when  the  words  "Soweto" and "business" were never used in the same sentence.

A   time   when  laws  and  regulations  dictated  your  every  move.  When opportunities   for   advancement   never  came  your  way  and  when  your entrepreneurial horisons were severely limited.

I  think  that  you  will  agree  with  me that one of the striking success stories  of  South Africa over the past 14 years has been the blossoming of commercial and economic activities in Soweto.

Just  by  driving  through  Soweto  you  can  see  the tell-tale signs of a remarkable  turn-around.  This  part  of the City is experiencing strategic investments  made  by the City of Johannesburg, supported by private sector initiatives and other stakeholders. It is estimated that over R3, 5 billion is  being  invested in this area and that the momentum will grow as we come closer to the 2010 FIFA Soccer World Cup.

I  think,  Programme  Director,  that  the  Johannesburg  Council  deserves significant  credit  for  this  boom.  Since the advent of democratic local governance  the  City  of  Johannesburg  has  prioritised  a  number of key projects  directed at Soweto that had a direct and measurable impact on the economic growth of the area.

Please allow me to remind you of the following:

• Orlando-Ekhaya, mentioned above, is a more than R1 billion project with mixed-use residential development comprised of townhouses, lakeside flats, shops, office buildings and entertainment facilities all contained within one precinct.
• The Jabulani central business precinct which will add a change in the skyline of Soweto with buildings arranged around open spaces and an emphasis on pedestrians and leisure activities. This will include the new Soweto Theatre, one of our 2010 legacy projects.
• Lufhereng will be the biggest mixed-use, mixed-income housing to be located at Doornkop, the largest development ever undertaken in any township.
• The Walter Sisulu Square of Dedication.
• The Kliptown housing development.
• The modern new SAFA Headquarters.
• The implementation of the Gcin'amanzi water project.
• The upgrading of the ageing water reticulation and electricity network has resulted in a more reliable infrastructure environment, which is conducive to business development and growth.
• The R150 million Baralink Transport facility which will further facilitate the movement of commuters and also open up new opportunities for informal traders and emerging entrepreneurs and;
• One of our proudest service delivery achievements is in the roads project. We have tarred 314km of roads here in Soweto, to full service standards with kerbing; storm water drains and ensured proper signage at the cost of R485 million.

In  a few months we will launch a far-reaching new property scheme aimed at arresting urban decline while at the same time supporting the objectives of Broad  Based  Black  Economic  empowerment  through  a  structured property transaction.  Through this scheme the bulk of the City's property portfolio will  be sold to private sector who will, in turn, commit themselves to the refurbishment  of  the  buildings and the effective management of the urban environment.

There  can  be  no  doubt  that  this  will  be one of the largest and most effective economic empowerment projects ever launched in South Africa. This will  have significant ripple effects for small and emerging entrepreneurs, contractors, artisans and labourers.

Through  partnerships  and joint ventures the City is investing in training and  strengthening  of the skills base of its residents.  Together with the University  of  the  Witwatersrand  we run the "Grow Your Business Project" which, in this quarter alone, produced 550 graduates.

Together  with  the  Johannesburg  Chamber  of  Commerce  we  are providing training  and  mentoring  to small, medium and micro enterprises especially with  a  view of expanding into the export markets. About R1, 4 million has been  invested  in  training  programmes  since  2006 to help entrepreneurs identify  export  opportunities  and  to  assist them with trade promotion, infrastructure and knowledge about prospective markets.

The  City's  Economic  Development Department is also taking initiatives to design  projects  to  promote  investment  and  the  empowerment  of  black businesses in the City.

The  University  of Johannesburg recently launched its Centre for Small and Medium   Enterprise  Development  to  provide  budding  entrepreneurs  with training and practical advice on starting and running businesses.

Programme  Director,  the  2010  FIFA  World  Cup will present the business community with a number of opportunities. I am aware of the concerns raised that  the larger contracts associated with 2010 will be allocated to FIFA's big corporate partners.

However,  there  will definitely be a number of local opportunities opening up which the astute businessman or women will be able to recognise and take advantage of.

The  tourism  and  hospitality industry are key growth sectors for the City because  of their ability to create employment and they provide easy access to small businesses.

Other  opportunities  abound  in  the  Information  and  Communication  and Technology  sector.  We will be promoting Johannesburg as a key destination for   investment   in  Business  Process  Outsourcing  as  well  as  skills development in software design and training.

Programme  Director,  please  allow me to call on the business community of Soweto  to  play  an  active  part  in the economic activities of the City. Within  the  Johannesburg  Department  of  Economic Development there are a large  number of programmes and initiatives that run concurrently and which may  provide opportunities for your participation. There are also dedicated funds,  investment incentives and support programmes for skills development and training that you may be able to access.

In  this  City we remain committed to the principles of developmental local government.   We   will   intensify   our   fight   against   poverty   and underdevelopment. We will pursue strategies that will create employment and economic growth and ensure that we take care of marginalised communities.

In  these  objectives  we consider the business community to be our primary social partner. We call on you to join us in a social compact where we have a  shared  vision  around  issues such as economic growth, the reduction of poverty and inequality, and the creation of opportunities for all.

I  trust  that  this engagement will lead to fruitful discussions. And that you  will  continue  to  engage the City on the best options and strategies that will take us into the future.

I thank you.