Bridging the gap between South Africa’s ”two economies” will be the main agenda item when President Thabo Mbeki meets the International Investment Council (IIC), the government said on Thursday.
”One of the critical challenges for the third democratically elected government in the next decade is the need to integrate two distinct and yet interrelated economies,” the Department of Trade and Industry’s director-general, Allister Ruiters, told reporters in Pretoria.
The IIC meeting will take place in Cape Town on Friday and Saturday.
This will be the seventh such meeting between Mbeki, the ministers of finance, trade and industry, public enterprises, transport, minerals and energy, agriculture, communications, and business leaders from Switzerland, United Kingdom, Germany Japan, Ghana and others, he said.
The IIC has traditionally been held twice a year but because of the general election in April, the group will only meet once.
Ruiters said this year’s meeting would also look at the progress made towards the implementation of the government’s micro-economic reform strategy, which has focused on the lowering of business input costs and ensuring that the growth potential of certain sectors was unlocked.
Past discussion, including how South Africa sees itself as a world and African economy, will also be resumed, Ruiters said.
”In the past the delegates have told the president that they see the country as an economic leader on the continent,” he said, but noted that how South Africa chose to fulfill that role was left to the government itself.
The 15 business leaders who include Masaka Miyaji, executive vice president of Mitsubishi in Japan, Sir Anthony O’Reilley, owner of Independent Newspapers and Media, Jurgen Schrempp of DaimlerChrysler in Germany and Ratan Tata of Tata Sons from India were personally invited by Mbeki three years ago to attend the conference.
”The idea is to discuss the issues of the day and to get the members’ advice on business,” said Ruiters who admitted that both parties hoped to benefit from discussions.
”Business people are very aware of government’s track record and like stability,” Ruiters said.
Business had urged South Africa to market its potential and successes more aggressively as not many countries could boast 10 years of peace, consistent economic growth and improvement to the living conditions of the population.
”South Africa is not only an inspiration to its own people but also an inspiration to the world,” said Ruiters was the sentiment expressed by the group when last they met.
Briefly discussing the impact Zimbabwe had on the South African economy, Ruiters said the businessmen had at first been concerned but that during recent debates the topic had not been raised.
”They recognise that South Africa and Zimbabwe are two different countries,” he said.
”But from a South African business perspective I have been amazed at how many enquiries the department has received from South African companies wanting to invest in Zimbabwe. Sometimes it makes sense to go against the investment grain and get in there before the others,” he said.
Presidential spokesperson Bheki Khumalo said issues arising from the recent G8 summit that Mbeki attended in America would also be discussed, as well as its impact on the New Partnership for Africa’s Development (Nepad).
Ruiters said the majority of leaders had devoted considerable time to Nepad and that Canada had donated $10-million to project managing and planning.
”An area of Nepad we had always said required more resources,” he said. – Sapa