Welcome to the benches of the opposition! [Laughter.]
Hon Speaker, the expansion of foreign trade is a means to an end, which is to improve the quality of life of all South Africans. It must enable us to grow our economy, encourage market access and contribute to the creation of decent work, improved health care and education, rural development, safer communities, social security and other priorities of this government.
Business representatives are invited to state visits to encourage and promote economic co-operation between South Africa and particular countries. The Department of Trade and Industry constitutes the business delegation in consultation with organised business, Business Unity South Africa, Busa.
However, other businesspeople also use the opportunity of the state visit to travel to those countries, or their visits coincide with the state visit. The decision to participate in a visit lies with the businesses themselves, depending on their interests.
However, we also have to look at South Africa's national interests, in particular what would benefit her people and advance government's domestic agenda. Visits of this nature create investment opportunities, which have a positive impact on the South African economy.
The Southern African Development Community, SADC, member states, most whose economies are integrated with that of South Africa, are our country's major trading partners. African countries in general have a huge potential to become South Africa's major trading partners, given their endowment in natural, mineral and human resources.
To date, in Africa, we have undertaken outgoing state visits to Angola, Lesotho, Zambia and Uganda. Outside the continent we have undertaken state and official visits to the United Kingdom, Brazil, Russia, India and China. Time does not permit us to provide extensive details on these visits. We will provide highlights.
On the visit to Angola we were accompanied by 11 Ministers and a business delegation of more than 170 people. Sectors represented included mining, energy, electricity, construction, retail, communications, transport and agribusiness.
A number of agreements and Memoranda of Understanding between the two countries were signed. There are already immediate benefits such as an agreement between the two governments on the South African and Angolan housing initiative to build human settlements in nine provinces in Angola.
On the visit to Zambia in December last year, I was accompanied by seven Ministers, two Deputy Ministers and a business delegation. In that highly successful visit, two agreements and four Memoranda of Understanding were signed and we will continue to explore the great potential in economic relations.
Last month I visited the Kingdom of Lesotho accompanied by seven Ministers, one Deputy Minister as well as a business delegation. [Interjections.]
Lesotho is an important neighbour of South Africa, as evidenced by the Lesotho Highlands Water Project that supplies water to South Africa. South Africa is currently finalising the modalities of Phase Two of the Lesotho Highlands Water Project, which is expected to increase the supply of water to South Africa.
I visited Uganda with seven Ministers and more than 50 businesspersons. A number of South African companies have a presence in Uganda and rely on South African expertise and products in growing their market, thus increasing employment opportunities in both South Africa and Uganda. Uganda also has a promising oil and mining industry, which is of interest to the South African industry.
European countries identified as key trading partners include, among other countries, Germany, the United Kingdom, Italy, France, the Netherlands, Belgium, Switzerland, Spain, Sweden, Ireland, Austria, the Czech Republic and the Russian Federation.
I was accompanied by 11 Ministers and over 150 businesspeople on the important visit to the Russian Federation. The business delegation represented the sectors of banking, education, agriculture, health, energy, mineral resources, water and environment, and science and technology.
Over the long term, several benefits in tourism, education and skills development, science and technology, space engineering, minerals and energy, to name a few, will result from this visit. [Interjections.]
Information on the highly successful United Kingdom state visit has been presented in this House previously. When you ask the question you get the answer! [Laughter.]
We visited China last month - South Africa's largest trading partner and a substantial investor in the country. The signing of the Declaration on the Establishment of a Comprehensive Strategic Partnership was the beginning of a new chapter in the bilateral relations between the two countries. A number of agreements were signed and collaboration in several areas was finalised which will contribute to ensuring a balance of trade.
The two countries will encourage companies from each side to explore co- operation opportunities in mineral beneficiation as well as infrastructure construction projects such as the green economy, roads, railways, ports, power generation, airports and housing.
Saudi Arabia, the United Arab Emirates and all the countries of the Americas and Caribbean have been identified as high potential strategic trading partners.
In the Americas we visited Brazil in October 2009. The President of Brazil undertook a reciprocal visit in July this year. For the state visit to Brazil the criteria included those companies with a presence in Brazil, those in a trading relationship with Brazil and those with an interest in establishing a future presence in Brazil.
The interaction with Brazil and India is a further step to strengthening relations with the India, Brazil and South Africa initiative and the promotion of relations with the South.
For the state visit to India we were accompanied by six Ministers, one Deputy Minister and more than 270 businesspeople. The visit also saw the relaunch of the India-South Africa CEO forum. The forum met in South Africa last week, taking the strengthening of economic relations forward.
Canada and the United States are key and strategic trading partners of South Africa. However, I have not as yet undertaken a visit of this nature to that region. Japan is also a strong trade and investment partner with whom we want to work further to expand trade relations.
We prefer to view the expenditure of these visits not as costs, but as investments in building relations that will help us meet our political, social and economic goals.
As the hon member is also aware, for outgoing visits, host countries extend the normal courtesies to the visiting delegations as per standard international practice.
We estimate the investment in the Angola state visit to have been in the region of more than R3 million, Zambia at more than R200 000 and Lesotho at more than half a million rands. We have invested more than a R1 million in the Ugandan visit. Information pertaining to the expenditure on the visits to China, Russia and India is not yet available.
Speaker, I would like to thank the hon President for a very comprehensive reply. [Interjections.] Hello, hello! [Laughter.]
Sir, I would like to focus on section 2 of the question that I raised. It relates to the selection criteria for those who are drawn into the delegations. There is a growing sense of a blurring of lines between party and state under the government of the present time.
The fact is that, as we speak, the Progressive Business Forum, which is a fundraising arm of the ruling party, occupies premises within state premises here. The fact is that, in the selection of those who will travel abroad in your delegation, pressure is applied by what businesspeople complain about. They have to either affiliate or promise to be part of this business formation.
This suggests that a certain level of coercion is used on South Africa's national business population. That it will benefit ... [Time expired.]
Thank you, hon Speaker. Sorry, hon Lekota, you were still elaborating but, unfortunately, the time - you know the Rules. [Laughter.]
I'm not aware of the pressure that is applied to business; not at all. As I stated in the answer: The DTI meets with Business Unity South Africa. This matter is discussed by two sides. In fact, business presents a list to government and states which people are leaving. They discuss it.
I don't know whether business applies pressure to itself about who must go and who must not go. Unfortunately, I haven't got that information. All I know is that the biggest business organisation participates to ensure that all businesses, big and small, are there and always go. I am not aware of any other method that is used to select certain businesses and not others.
I think we might have to check with Business Unity South Africa as to whether they are part of this coercion and why they would want to leave other businesses out. They are supposed to help all other businesses. We might try to check on that to see whether, indeed, there is something untoward in what the process is supposed to do. Thank you.
Hon Speaker, hon President, in all these delegations that go on the visits, are there members who represent the small and medium enterprises? I'm asking this question because we know that these people are the employers especially of people in rural areas, where you and I come from. We know about these things.
Therefore, I'm saying that, instead of taking big businesses along - you referred to Business Unity South Africa, Busa - what about taking the small and medium enterprises along, those people who are really creating jobs, to learn and understand the ropes of the business? Thank you.
Hon Speaker, I am sure the hon member must have heard me when I gave the answer that Busa takes businesses from all different levels. That is on record. It has not been big businesses only. Busa does this because it is a leading business organisation to which all other businesses are affiliated.
We would not want to take over business's job of co-ordinating themselves. They must co-ordinate themselves. We have no reason to believe that Busa is not doing it. As far as we have seen, big and small businesses have been coming along in the delegations. Whether they covered the area from where you and I come, is a different matter. [Laughter.]
I have also seen people coming from those areas. I don't know how they come in. Our objective is to ensure that all businesses at all levels are exposed to other businesses in other countries. This is what DTI tries to ensure as it meets Busa to discuss the matter of delegations.
If there is any problem, since you have asked the question, we can check the method. Is the method able to cover even the smallest areas where you and I come from? We will do that. Thank you.
Speaker, hon President, strategic trade partners must consolidate the African agenda. Therefore, my question is: How does government's intensification of strategic partnerships change colonial patterns of economic relations? Also, how will transformation and beneficiation of African natural resources and market access generate employment in our country and eradicate poverty? Thank you.
Hon Speaker, I believe that in my answer concerning the last visit to China, I tried to deal with this matter.
Our comprehensive agreement, which is strategic with China, addresses those kinds of questions.
Our view is that South-South relations, at the economic level, contain within them the desire that the relations we've established with other countries must not be like the relations that were established between us and our former colonisers.
This has been a problem up to this day. For example, the matter of beneficiation to which you refer has not happened. The old method of getting the raw materials and processing it away has been the issue. That is why, when we discussed it with China and with Russia, the question of establishing processing plants here for beneficiation is the issue that we dealt with.
We believe that the changing economic landscape is in favour of this movement; that we are beginning to have more relations. It is important for us as a country and for our own future that these relations are engaged in and entered into with a very clear sense of what we are doing.
We can repeat the past. These countries are not coming to colonise; they are coming to establish relations. It depends on us how we do it. That is why the comprehensive strategic partnership that we have established with China addresses that kind of question, so that we can begin to have economic relations that talk to our priorities: mainly job creation. Thank you.
Speaker, thank you very much. Mr President, why is it that relatives of the President of the Republic, businesspeople known to be close confidants of the President of the Republic, and generally businesspeople close to the ruling party, are in nearly every one of these delegations overseas?
Have businesspeople from the families of leaders of other political parties been the beneficiaries of such generosity, or are the lucky individuals, who get what is now called ZEE, only ANC members? [Laughter.]
Hon member, what is CEE? Can you help us? [Interjections.]
It's ZEE, as in Zuma Economic Empowerment. [Laughter.]
Hon Speaker, firstly the delegations that go abroad are determined, as I said, by the DTI and Busa. I have also said in my answer that other businesspeople go along on their own. We are not there to tell businesspeople what to do and what not to do. It is not our business ... [Interjections.] ... neither can we tell people that are either in the ANC or are friends of the ANC that they must not do business. We can't tell people that because they are related to people in government, they are not allowed to do business. It would be unfair to citizens of this country.
What you see in the delegations is what is meant to be a business delegation agreed upon between DTI and Busa. Others might be on their own, and we can't say, "Sit and wait; no businessperson must go when we go there."
I think it would be funny. You would be the first to complain. You could then even say we are trying to stop you. There is no problem, my friend. Don't try to create a problem where there is no problem. Thank you.
Hon members, I hate to tell you this, but that concludes the questions to the President. [Laughter.] [Applause.]
Hon Speaker, just one minute, please. I want to help somebody. Usually hecklers are not helped. When I was talking about the business delegation to Lesotho somebody asked, "How many, why are you not giving us a number?" Just for your information, for the record, and for the curiosity of those who were heckling, there were 40. Thank you very much. [Applause.]
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