Minister: Mr Gugile Ernest Nkwinti



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AFRICAN RENAISSANCE CONFERENCE

2012-05-24

SPEECH BY THE MINISTER OF RURAL DEVELOPMENT AND LAND REFORM,
NKWINTI, G. E. (MP)
TO THE 14TH AFRICAN RENAISSANCE CONFERENCE
"CONNECTING AFRICA"
Inkosi Albert Luthuli ICC Durban
24-25 May 20122
South Africa's Transport Infrastructure Programme and its Continental Perspectives - 24 May 2012
Speech by the Minister of Rural Development and Land Reform, Nkwinti, G. E. (MP)
2
Africa Yesterday
Just as Africa's past and present development resulted from choices and
decisions made to achieve certain outcomes, its future must be determined
by choices we make. Few will dispute the assertion that the transport
infrastructure in sub-Saharan Africa was built mainly by the colonialists for
the sole purpose of ensuring the smooth sail and movement of its rich
resources to the industries of the West. So, the road and rail transport
networks, linked to the sea ports, were necessary insofar as they supported
the exploitative agenda of owners of the means of capital. Connectivity of
Africa's vast peoples, development of intra-African trade and commerce,
and other worthy growth-inducing possibilities in transport were thus not
desired or attained by transport system.
Africa is a vast continent with great diversity across its 53 countries, with
largely rural population, dense in some areas and sparsely populated in
others. To overcome under-development we must reject the damning
defining characterisation of this beautiful landscape as lacking in the
requisite infrastructure as bequeathed by our shared past. As evident from
the map on Africa's rail infrastructure which has barely changed since the
1960's, the network was to serve the ports, not for urban transportation or
as corridors of development. 3
South Africa's Transport Infrastructure Programme and its Continental Perspectives - 24 May 2012
Speech by the Minister of Rural Development and Land Reform, Nkwinti, G. E. (MP)
3
In South Africa, the last outpost of the colonialists in Africa, with its huge
network of roads, rail and air transport, it is not lost on us that these
sophistication is masked by a huge spatial disparity between the majority
and the minority usurpers of power. The great mines of Johannesburg and
Kimberley, and other centres of exploitation of South Africa's huge natural
resources fed the straight into the agenda of deepening Africa's position as
a continent supplying only raw materials for the huge industrial expansion
in the West. As a result, the assumed "developed" status of the South
African economy, in comparison with those of other African countries, must
be balanced with the deprivation, unemployment, lack of rural
infrastructure, inefficient and degraded land and other challenges we face
in rural South Africa.4
South Africa's Transport Infrastructure Programme and its Continental Perspectives - 24 May 2012
Speech by the Minister of Rural Development and Land Reform, Nkwinti, G. E. (MP)
4
Rural Economies
In consequence, South Africa case is as in other African countries, with the
same economic and spatial structure. The economies remain largely rural
providing subsistence, not industrialisation, for the teeming masses of our
people. Those parts of the continent's economy which are sophisticated
and modern were tired to the commanding heights of the European
economy. The development agenda of the past was not designed to result
in any significant growth trajectory.
De-linked Markets
As at the 1960's when most African countries regained autonomy from the
former masters, the hallmark of the economies was that of an umbilical
linkage of the national economy to that of each of the former rulers. Rail
transportation continued to serve the ports designed for a different market.
Raw materials had little of no value-add from the continent. Huge raw
materials were shipped without any industry around beneficiation! It was,
and sadly remain, the case that the cocoa of West Africa, the coffee and
cotton in East Africa, and many more were only processed and re-sold into
the African markets. We bought the same goods we produced from those
who took at a song from us!
Africa Today - A Brighter Future
Today, we live with a lot of uncertainty around the globe. We are even
conscious of the situation in Greece - long history of defaulting, and the
political power change in France. Yet, the African continent is experiencing
relative growth due to intra-continental trade with Asia, especially China.
African growth has been on the back of its commodities, same commodities 5
South Africa's Transport Infrastructure Programme and its Continental Perspectives - 24 May 2012
Speech by the Minister of Rural Development and Land Reform, Nkwinti, G. E. (MP)
5
that have been exploited in the past except to the advantage of its people.
Though we are starting to see positive changes, we must still deal with the
reality that the benefits from the total value-chain do not accrue to the
continent. We are excited that with the growth and development in Africa's
economies comes a greater voice in global political and economic
institutions.
Strong growth on the continent has opened up major opportunities for
South African firms and industries, which have contributed to development
by investing in telecommunications, banking, mining, construction and
retail. One of the biggest exports since 1994 has been management skills,
deployed in settings that are common to us, but less familiar to competitors
from developed countries.6
South Africa's Transport Infrastructure Programme and its Continental Perspectives - 24 May 2012
Speech by the Minister of Rural Development and Land Reform, Nkwinti, G. E. (MP)
6
Space Economies
As the Minister responsible for Rural Development and Land Reform in
South Africa, my portfolio includes wise land use and spatial planning. We
are therefore looking at translating both the New Growth Path and the draft
National Development Plan into a national spatial development framework
(NSDF) that not only looks internally at spatial issues in South Africa, but
also how cross border linkages and corridors could be envisaged.
This map is based on inputs generated by South Africa's National Planning
Commission Vision 2030 for South Africa. A more detailed spatial plan is
being developed in-house within the Department to enable us better
understand the spatial structure of our economies, so as to plan better in
full consciousness of the inter-linkages among several sectors. This spatial
plan could be envisaged as the precursor for a fully integrated national
spatial development framework.
Development Corridors - Linking Regional Economies
The following development corridors have been identified by the National
Planning Commission:
Gauteng to Zimbabwe along the N1 freeway;
Gauteng to Gaborone, Botswana along the N4 toll road;
Upington to Namibia along the N10 freeway;
Mangaung to Lesotho along the N8 freeway;
Msukaligwa to Swaziland along the N17 national road; and
the proposed corridor along the N2 north of Richards Bay towards
Maputo in Mozambique. 7
South Africa's Transport Infrastructure Programme and its Continental Perspectives - 24 May 2012
Speech by the Minister of Rural Development and Land Reform, Nkwinti, G. E. (MP)
7
The Maputo Corridor is certainly one of the most important corridors for
goods and services movement between South Africa and Mozambique.
The National Planning Commission proposes that a freight corridor be
established between Ethekwini and Gauteng. As Ethekwini is South
Africa's most important harbor, the majority of imported goods arrives in
Ethekwini and is then transported by rail and road to Gauteng, from where
these goods could be sent along the aforementioned corridors of regional
and international importance.
It is my department's responsibility to promote spatial integration at
national, provincial and municipal levels as well as give spatial expression
to the links with the economies of the continent. Through the establishment
of these international corridors, trade and movement of goods and services
between South Africa and SADC countries will be promoted. 8
South Africa's Transport Infrastructure Programme and its Continental Perspectives - 24 May 2012
Speech by the Minister of Rural Development and Land Reform, Nkwinti, G. E. (MP)
8
Growth Management Areas
The National Planning Commission also identified 3 Growth Management
areas, namely
Saldanha Bay in the Western Cape:
George in the Southern Cape: and
Lephalale in Limpopo province.
These 3 areas are earmarked for extensive growth in the future up to 2030.
Lephalale is the location for a new power station being built by Eskom, as
well as an untapped reserve of coal that is of such a good quality, that it
could be exported via a proposed railway link via Gauteng to the port of
Richards Bay in KwaZulu-Natal. Lephalale has also been identified as one 9
South Africa's Transport Infrastructure Programme and its Continental Perspectives - 24 May 2012
Speech by the Minister of Rural Development and Land Reform, Nkwinti, G. E. (MP)
9
of the most important growth nodes in South Africa, with possibilities of
extensive economic development and job creation.
Overcoming our Weaknesses
Several structural weaknesses must be overcome if South African firms are
to increase the benefits they can derive from, and the contributions they
can make to, growth and development in Africa. Crucially, poor transport
links and infrastructure networks, as well as tariff and non-tariff barriers,
raise the cost of doing business and hobble both investment and
international trade. Weak legal institutions and, in some cases, poor
governance heighten the risks of investing. The picture is improving
steadily, but challenges remain. The political uprisings in North Africa are a
stark reminder of the risks poor governance and weak institutions allowing
the elite to accumulate at the expense of the people.
The Southern African Development Community (SADC) faces significant
challenges on many fronts including infrastructure, trade barriers and
governance. Trade is always a two-way street. While South Africa is a
water scarce country, many of our neighbours have an abundant supply.
Securing adequate supplies of water and food must be looked at in a
regional context. South Africa should invest in and help exploit the wide
range of opportunities for low-carbon energy from hydroelectric and other
natural resources in Southern Africa.
Intra- regional trade in Southern Africa should increase from 7% of
trade to 25% of trade by 203010
South Africa's Transport Infrastructure Programme and its Continental Perspectives - 24 May 2012
Speech by the Minister of Rural Development and Land Reform, Nkwinti, G. E. (MP)
10
South Africa's trade with regional neighbours should increase from
15% of our trade to 30%
Road, rail, air and port infrastructure in the Region
Regional development is an imperative for both solidarity and sustainable
growth. In terms of employment in South Africa, increased exports to SADC
alone can generate almost 60 000 additional direct jobs by 2015 and
around 150 000 by 2020, with additional employment growth arising from
South Africa's position as a financial, logistics and services hub and from
collaboration around regional infrastructure and investment. These
opportunities in turn can strengthen development in neighbouring countries.
Addressing Development
Strong Partnerships
South Africa cannot succeed with regional development without strong
partnerships with other countries on the continent. Our proposals centre on
a strategy for improving logistics, with clear priorities and timeframes,
including a "smart ports" network that integrates a common system, people
and technology platform across a number of countries to improve port
efficiencies and costs (to be explored initially on a pilot basis with five key
ports on the continent) and an integrated road and rail system across the
continent; measures to expand regional investment and trade and develop
integrated supply-chains and industrial corridors particularly in mining and
agro-processing; and reducing regulatory obstacles to trade and travel.
Integrated Planning11
South Africa's Transport Infrastructure Programme and its Continental Perspectives - 24 May 2012
Speech by the Minister of Rural Development and Land Reform, Nkwinti, G. E. (MP)
11
To put in place the infrastructure needed to support the development of
Africa and in particular the rural economies needs integrated planning. The
financial resources to implement these plans are limited and must be used
optimally. To achieve the effective planning and resource allocation it is
necessary to have relevant information as a basis. The key information that
is required is geo-spatial information, that is, information about the location
and place of what exists where. Unfortunately it has been found that in
Africa the availability of this key geo-spatial information is mostly not
available, or where it is available it is so out of date that renders it of limit
use.
Absence of Development Information
The situation of the lack of geo-spatial information is being addressed
through African-wide initiatives being driven the UN Economic Commission
for Africa (UNECA), the Regional Centre for Mapping of Resources for
Development (RCMRD) and others. These initiatives include the Mapping
Africa for Africa initiative and the African Reference Frame Project of the
UNECA's Committee for Development Information, Science and
Technology (CODIST-Geo) and capacity building programmes of both
UNECA and RCMRD. South Africa is taking a leading role in all these
initiatives as part of our objective of promoting the African Agenda.
African countries have a great need to establish the capacity and capability
to collect, process and use geo-spatial information in their planning and
resource management programmes. This includes both the institutional and
people capacities. The RCMRD serves countries in southern and eastern
Africa and has a good record of capacity building in a range of fields of 12
South Africa's Transport Infrastructure Programme and its Continental Perspectives - 24 May 2012
Speech by the Minister of Rural Development and Land Reform, Nkwinti, G. E. (MP)
12
interest to the development of African countries, such as resource
mapping, surveying, land administration and disaster management. It is
well positioned to serve the region. I have the privilege of currently chairing
the Ministerial Council of the RCMRD.
Conclusion
National Competitive Corridor
The corridor of logistics hubs, road, rail, fuel and other infrastructure,
including and connecting Gauteng and Ethekwini, is vitally important to the
future of the national and the SADC economy, and should be designated
as a nationalcompetitiveness corridor. It accounts for about 46% of GDP
and would build on the Department of Transport's 2050 Vision for the
Durban - Gauteng Freight Corridor
Resource Critical Regions
These regions, in different parts of this country and Africa, have highly
valued natural resources that provide ecosystem lifelines and may require
specific policies to ensure their sustainability. They may include areas of
highly valued mineral resources (the platinum belt), areas of great
importance for biodiversity (the Western Cape), and critical water
production areas (various catchments along the Eastern Escarpment).
Transnational Development Corridors
These corridors are critical to creating an integrated South African
economy, which require specific interventions around economic stimulus
and trade and transport networks. The corridors between Gauteng and 13
South Africa's Transport Infrastructure Programme and its Continental Perspectives - 24 May 2012
Speech by the Minister of Rural Development and Land Reform, Nkwinti, G. E. (MP)
13
Zimbabwe, Botswana and Mozambique are likely to be recognized as the
primary transnational development corridors.
Rural Restructuring Zones
These rural villages (areas) have large populations that are experiencing
change (for example, new settlement formation). Such areas need
management, institutional development, land and tenure reform,
infrastructure provision and economic stimulus. They include the more
densely populated parts of the previous Bantustan homeland areas, where
there is population dynamism and sufficient numbers of people to provide
the basis for viable markets. There may also be areas with agricultural,
tourism and mining potential. Almost all provinces have areas that fall
within this category, but the zones can only be designated after careful
consideration against a set of criteria.
Job Intervention Zones
These require state support for specified periods. These areas have lost
more than 20% of their jobs over the past decade, with significant losses to
the national economy. The state may seek to stimulate the growth of new
sectors, develop new skills or, in extreme cases, promote out-migration.
Areas of concern include agricultural districts in the Western Cape, the
Free State goldfields, the Newcastle - Dannhauser region in KwaZuluNatal and the far west Witwatersrand.
Nodes of Competitiveness
These include clusters of localities that account for at least 5% of GDP or
jobs, which have experienced higher than average growth since 1994, or 14
South Africa's Transport Infrastructure Programme and its Continental Perspectives - 24 May 2012
Speech by the Minister of Rural Development and Land Reform, Nkwinti, G. E. (MP)
14
which have the potential for higher growth in the future. Ensuring their
efficient development is of national importance and special attention must
be given to creating and retaining economic value. The Cape Metropolitan
region, which produces about 11% of GDP, and Ethekwini, which produces
about 9%, are obvious candidates (although the latter is already
incorporated within the corridor). With their ports and industrial agroprocessing hubs, the Eastern Cape's two metropolitan regions could also
enhance national economic prospects. Collectively, these regions
contribute about 4% of GDP. These regions have not performed optimally
since 1994, but with targeted support, their performance and contribution
could be improved
Growth Management Zones
Areas of rapid anticipated growth that may require special planning and
management. For example, rapid new growth is anticipated in the
Waterberg region in Limpopo as a result of new mining development and
related industry, such as petrochemicals, and around Saldanha in the
Western Cape due to resource related port and industrial development.
Green economy zones
These are zones with proven potential to create "green jobs" ,where shortterm state intervention could leverage significant private development. For
example, areas in the Northern Cape offer potential for solar and wind
energy.15
South Africa's Transport Infrastructure Programme and its Continental Perspectives - 24 May 2012
Speech by the Minister of Rural Development and Land Reform, Nkwinti, G. E. (MP)
15
It is highly envisaged that the benefits of these development corridors will
spill over to the SADC region, either directly through uni-directional
linkages or indirectly through multi-directional linkages.




AFRICAN RENAISSANCE CONFERENCE

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