Mayor markets Ekurhuleni on a global stage
Mayor Mondli Gungubele has told members of the China International Forum for Friendship Cities that Ekurhuleni is ready to welcome those seeking business opportunities.
Addressing a full-house of delegates attending the 18th China International Fair for Investment in Xiamen (China) recently, Gungubele said the city’s Aerotropolis economic trajectory coupled with its prowess as the economic hub of the southern hemisphere, made it the best destination for investment.
Countries attending the event included Turkey, US, Japan, Kenya, Netherlands, Australia and Ghana among others.
The forum deal with urban planning and management, environmental management, economic-growth, ecological progress and the growth of the cultural and creative industry.
“Ekurhuleni has endless opportunities. It is the first Aerotropolis in the African continent capitalising on the strength of hosting one of the world’s biggest airports – the OR Tambo International Airport,” said the mayor.
“Our strengths of being the hub of manufacturing in the country, that of being a city that is home to the biggest railway station in the southern hemisphere of the continent in Germiston, and being criss-crossed by all the major freeways that link the region with the rest of the country and neighbouring countries, make us one of the preferred destinations for investment in South Africa.”
Looking at how South Africa’s economy has evolved over the years, Gungubele pointed out that following South Africa’s re-admission into the global trading arena in 1994, the country’s trade footprint has evolved over the years.
“New markets have emerged wherein traditional relationships between the North and South manifested themselves through the conclusion of the Trade, Development and Cooperation Agreement with the European Union to mention but a few.
“While the share of exports to some traditional markets, such as the UK, Japan and Europe were prominent in the early stages of our re-admission, the 2008 global economic-meltdown has reversed those gains, hence, the decline.
“In addition to the effects of the global economic-meltdown, the top-down structure of the North-South relationship has necessitated a comprehensive review, especially with the acknowledgement that trade has been one-sided in favour of the North.
“The World Trade Organisation’s process had also not effected the required change in the global trading system.
“As a result it could not create industrial capacity to produce exportable goods, which would contribute towards addressing the trade imbalances,” he elaborated.
“In this regard, as countries in the South, we have had to reconsider our relationship with countries in the North by leveraging internal industrial capabilities that could be harnessed and capitalised upon.
“To this end, China as the second-biggest economy in the world has emerged as South Africa’s largest export trading partner since 2009, with its share of non-gold merchandise exports amounting to 12.9 per cent in 2012, compared to 0.8 per cent in 1994.
“South Africa’s bilateral trade with China increased by 32 per cent last year to R270-billion from the 2012 figure of R205-bn, and we want to create the right environment for this figure to grow even bigger.”
Gungubele told the full house that regional integration and connectivity in Africa are prerequisites for sustainable economic-growth and Africa’s thriving economy offers investment opportunities for potential investors in agriculture, mining, technology and infrastructure development.
“As the gateway to Africa, Ekurhuleni enables access to the markets of the world’s second-largest continent, with 30 per cent of the globe’s mineral reserves, and 1-bn people.”
The mayor told the house that South Africa is a key investment destination boasting of wealth of natural resources (including coal, platinum, coal, gold, iron ore, manganese nickel, uranium and chromium) and enjoys increased attention from international exploration companies, particularly in the oil and gas sector.
“We have world-class infrastructure, exciting innovation, research and development capabilities and an established manufacturing base. We are a country that is at the forefront of the development and roll-out of new green technologies and industries, creating new and sustainable jobs in the process and reducing environmental impact.
“Our country boasts sophisticated financial, legal and telecommunications sectors, and a number of global business process outsourcing operations are located in the country. It is indeed the best option for anyone wishing to invest in Africa,” he said.
Gungubele assured the international community that the South African Government, including Ekurhuleni, remains committed to easing doing business with country, and added that the National Development Plan is a clear demonstration of the government’s commitment.
This Plan is to eliminate poverty and reduce inequality by 2030, through uniting South Africans, unleashing the energies of its citizens, growing an inclusive economy, building capabilities, enhancing the capability of the State and leaders working together to solve complex problems.
The plan identifies a number of steps required to move towards this new growth trajectory.
“South Africa is open to working with business to improve the country’s economy, attract much-needed foreign investment as well as creating an environment that eases doing business with the country,” Gungubele concluded.
