/ 6 February 2009

Motlanthe warns over global economic crisis

Read President Motlanthe’s State of the Nation speech

South Africa’s acting President, Kgalema Motlanthe, said on Friday during his State of the Nation address that the global economic meltdown does pose dangers in terms job losses and quality of life for South Africans, but notwithstanding this, ”our nation is in a good state”.

Motlanthe said he stood before South Africans ”with humility at the opportunity I have had to occupy the highest office in the land as a consequence of the unique circumstance arising out of the decision of the leading party in government to recall the former president”.

He said that it was thanks to the maturity of the country’s constitutional system that the government had been able to ”ensure a seamless transition and continuity in the systems of government”.

He acknowleged the commitment and hard work of Nelson Mandela and Thabo Mbeki and others who ”played their role in steering the ship of state under democracy”.

”Naturally, the uncertainties of a political transition can pose more questions than there are currently answers. As a consequence, some of us may be mesmerised by the transient waves of stormy weather and hunch our shoulders in the face of these headwinds of economic turbulence and political tumult. But ours is a journey of hope and resilience.”

He said the government could be proud that it had changed the demographic composition of the public service, but said that while women constitute about 34% of all senior positions in the public service, this had fallen short of the target of parity

”Though some progress has been made, at 0,2%, the situation is less impressive with regard to people with disability employed in government, measured against the 2% target we set ourselves. On both counts, the private sector is lagging far behind. Various measures have been put in place to improve the efficiency of the public service, including financial management, Thusong Service Centres and other service delivery innovations, izimbizo and, as currently in the Department of Home Affairs, firm leadership.”

He added that election data is due to be announced ”in the next few days”. It is generally expected that South Africa’s election will be held around April.

Interventions
Motlanthe said that the government and its social partners are considering interventions to minimise the impact of the global economic crisis on the country.

The government was aware that, because South Africa was strongly integrated into the world economy, demand for its exports had declined, he told the National Assembly.

Access to finance and capital inflows had turned for the worse, lower demand had precipitated scaling down production, job creation was negatively affected, and in some sectors retrenchment had become a reality.

These difficulties had coincided with a period in which inflation and interest rates were still too high.

”Combined, these developments bode ill for the revenues we need to expand the provision of services and to implement our infrastructure projects.

”As such, we have been forced to tone down our forecasts in terms of growth and job-creation,” he said.

However, South Africa was less severely affected than many other countries.

”Indeed, in a period in which others are experiencing or projecting recessions, South Africa and the rest of the continent are still poised for growth, even if at a slower rate.

”In this regard … I am happy to report that in the interactions between the Presidency and leaders of various social partners, we agreed jointly to devise interventions that would minimise the impact of this crisis on our society,” Motlanthe said.

Crime
The increase in violent robberies at homes and business premises was a matter of great concern, Motlanthe said. ”The scourge of crime remains a major source of insecurity for South Africans,” he said.

Apprehension about the possibility of violent attack was a daily experience in both poor and affluent neighbourhoods.

”Of course, the overall crime rate, having peaked in 2002, has consistently declined. All kinds of statistics can be cited to attest to this.

”But we do know that the reduction has not been fast enough, not even at the s7% to 10% rate that we set ourselves for various categories of contact crime.

”The fact that incidents of violent robberies in households and businesses have been on the increase; and crimes against women and children have not abated in any significant measure, is a matter of great concern,” Motlanthe said.

So too was corruption.

”Within public and private institutions, the possibility of nefarious schemes siphoning off resources through corruption is always a source of great concern.”

The increase in some crime levels pointed to various weaknesses within the criminal justice system.

Motlanthe also welcomed the political breakthrough in Zimbabwe and said South Africa would do all it can to help to rebuild its crisis-ridden neighbour.

”We are truly heartened that, yesterday [Thursday], the Zimbabwean Parliament passed Amendment 19 of the Constitution, laying the basis for an inclusive government,” he said.

Motlanthe said the hard won deal had delivered ”the ultimate prize that has always been the wish of the people of that country and the sub-continent as a whole: that is, a stable and legitimate government geared to address the challenges that the people face”.

Paying tribute
Meanwhile, former president Thabo Mbeki did not attend the opening of Parliament on Friday.

Mbeki’s spokesperson, Mukoni Ratshitanga, said Mbeki — who was recalled from office in September — had already made other plans by the time the invitation had arrived.

”Regrettably, the former president will not be attending the opening of Parliament because by the time the invitation came he had already committed himself to another engagement of which he could not pull out,” Ratshitanga was quoted as saying by the South African Press Association.

The national executive committee of the African National Congress (ANC) recalled Mbeki from office last year after a Pietermaritzburg High Court ruling hinted at political interference in the decision to prosecute ANC leader Jacob Zuma on graft charges.

President Kgalema Motlanthe was appointed as caretaker president.

Zuma on Thursday evening paid tribute to Motlanthe, saying he had unified the country.

”He [Motlanthe] had led the country well … he held the nation together during a difficult time after the recall of the then president of the republic,” said Zuma.

Recent reports of party infighting have suggested that some ANC members were not happy with the way in which Motlanthe ran the country.