With the government’s Accelerated and Shared Growth Initiative of South Africa (Asgisa) in full steam, it is confident that South Africa will achieve an economic growth rate of at least 6% between 2010 and 2014, Deputy President Phumzile Mlambo-Ngcuka said on Monday.
But, speaking at the launch of the IMB Integrated Delivery Centre in Johannesburg, she said that a challenge to which the country will have to commit is to ensure that growth is shared.
She added that Africa needs expanded investments in IT.
“We have always maintained that South Africa’s approach is not to isolate its development agenda from its neighbours, and indeed the rest of the continent.
“Through Nepad [the New Partnership for Africa’s Development], we always seek the bigger picture while we also tackle our responsibility at home. We need the economies of scale nonetheless.
“Government has introduced the Accelerated and Shared Growth Initiative of South Africa last year as an intervention that elaborates on the specific initiatives needed in order to halve unemployment and poverty by 2014. It is aimed at driving a growing, yet shared, economy.
“ICT [information and communications technology] is a cross-cutting sector within Asgisa. ICT can accelerate growth and facilitate sharing. It is probably the one sector that can link the first and second economy sustainably.
“The key interventions in Asgisa are in infrastructure, which includes ICT; sector development, which includes business process outsourcing and tourism; agriculture; creative industries; human resources; and second economy initiatives focusing on SMMEs [small, medium and micro enterprises], rural development, youth development and universal access to basic services.
“Asgisa also takes advantage of a stable macro-economic environment, and an economy that has grown at 4% plus in the past two years,” Mlambo-Ngcuka said.
“With Asgisa in full steam, we are confident that between 2010 and 2014 we will realise a growth rate of at least 6% of GDP. A challenge which we all need to commit to is to ensure that growth is shared,” she added.
The deputy president said that collective efforts to bring about political stability on the African continent have yielded results and democracy is being entrenched.
“Our focus must now shift towards translating the political gains to the economic front. Having put in place the necessary framework for the increased trade and investment, we now have to ensure that Africa does indeed prosper and take advantage of 21st-century advancements in science and technology.
“Our efforts, as individual member countries of the African continent, are being directed at putting in place the necessary infrastructure for increased economic activity in the continent. We recognise that an integral part of that critical infrastructure is information technology, which is the one ‘equaliser’ that can push Africa into the 21st century.”
Mlambo-Ngcuka said the Integrated Delivery Centre launched by IMB on Monday has created more than 500 jobs in the past year alone.
“The confidence shown by the world’s largest IT company in our country is just the medicine we need to quieten the nerves of those who still need convincing. IBM’s stated plans to create a further 900 jobs in 2006 leaves us in no doubt that this country is on the right path. We need to continue to improve the environment.”
She added that the issue of telecommunications costs is already at the top of the government’s agenda. “In the short term we would forge ahead with the call centres in disadvantaged areas whose telephone expenses we will subsidise initially while through the SNO [second national operator], the regulations and improved infrastructure we will bring down the cost for everybody.
“We need more private-sector partners to come forward in this regard and we will continue to pursue your companies.
“For South Africa to be ahead of competition in this industry, we must uphold the highest standards of corporate governance and intellectual property legislation. Government will enforce compliance at all levels,” the deputy president said.
But she cautioned: “We will not allow fly-by-nights on our shores.” — I-Net Bridge