Thank
you very much, Chairperson. Chairperson, Ministers, Deputy Ministers, hon members, excellencies, ambassadors, high commissioners - I'm so grateful for your presence here today - all members of the diplomatic corps and representatives of
international organisations attending this debate, dear colleagues and distinguished guests, I am pleased to have the opportunity to report to this House on our progress and activities in the 2018-19 financial year and to indicate our plans for 2019-20.
Last year our department was allocated R6 552 billion to be utilised to advance our agenda for global co-operation. The development of our region and continent was to be supported by this funding. This year we are allocated less - R6 508 billion. As with all departments, we are confronted by the limitations of our low economic growth and thus, reduced budget allocations. As a department we also unusually face the impact of currency fluctuations and rather inadequate provision for our compensation budget. Given these challenges, we have to use our resources wisely and strategically. The reduced budget severely impacts on our ability to support government in reaching our national priorities. Fortunately, we have an excellent team in the Department of International Relations and Co- operation, Dirco, and we shall do our best to execute our tasks.
Debates on the International Relations budget and programme are incomplete if they are not associated with the tremendous role the international community played in supporting us to achieve our freedom. We have in many ways sought to honour these solidarity-based contributions through reciprocating in creating a just world order that has a human face - a face of empowered women and girls, of men and boys free from war, living with human security. I have been pleased that our statements and voting patterns in Geneva and New York reflect our support for a more just world. Our work must always reflect this commitment to return the privilege of international solidarity with attention to the plight of those who seek refuge, democracy, freedom and peace.
Fortunately, this world has improved vastly from the world in which racial domination could thrive, and yet Palestine is still occupied and not free; South Sudan has internal conflict; Western Sahara is still occupied and not free; Cuba remains blockaded; and extremism and terrorism destabilises the world. Powerful forces of economic bullying seek to alter the established multilateral world order.
Africa too continues to have many development challenges that must be addressed. We have to promote our relations in this challenging context. We have to use our extensive network and limited resources to support the emergence of a world where all enjoy freedom and democracy, increased human security and peace. Our relationships with the world will be centred on achieving these outcomes.
As South Africa, this year we celebrate 25 years of freedom. Even though we are young adults in democracy, we can, as President Ramaphosa said in his state of the nation address, "move forward together towards achieving a stronger, greater, more compassionate, more united and harmonious South Africa", and might we add Africa.
We recall too that this year Rwanda commemorates 25 years since the genocide of 1994. We reaffirm our friendship and solidarity with the people and government of Rwanda, and salute them for their determined efforts to achieve reconciliation and a nation at peace with itself. The search for social cohesion and
reconciliation has been put to good effect in both our countries and we should use this common experience to forge greater links.
The work we do will advance such links and also actively contribute to the seven priorities announced by President Ramaphosa. These priorities are global. They are in our National Development Plan - our vision 2030; they are in the Sustainable Development Goals - Agenda 2030; and they are in our African Agenda 2063 - describing the Africa we want. We will promote action to realise them for our country and our continent. We pursue the priorities in a period in which Africa has entered a phase that holds much promise for genuine sustainable development. We plan to use our diplomacy to build stronger links with Nigeria, Egypt and Kenya as anchor countries that should advance these goals.
Many African countries are achieving positive economic growth and developing social and economic infrastructure that expands the likelihood of national development, higher growth levels and broad social development for all. It is noteworthy that
democracy has also taken hold in much of the continent, with free, fair and regular elections on the rise.
We are very encouraged by the launch of the African Continental Free-Trade Area Agreement, AfCFTA. Now that it has come into force, immense opportunity for trade within Africa has come into being. South Africa must ensure it is ready to take advantage of the potential offered by this expanded market access. Once the agreement is fully operationalised, Africa will be one of the world's largest single markets encompassing 55 countries, a population of 1,2 billion people and a combined gross domestic product, GDP, of US$3,2 trillion. The development of the necessary infrastructure for this expanded trade is going to gather speed and we as South Africa must be ready to play a key role.
In addition, I believe that our capacity for research and innovation could play a critical role in advancing our industrial development ambitions. Minerals beneficiation, the use of advanced manufacturing and the wider use of digital
technologies could place us at the leading edge of economic innovation support in Africa.
As South Africa we have excellent research universities. We train a significant number of African postgraduate students and researchers, and yet we absorb just a small number of them. As a country we also have very competent research councils. Imagine the contribution we could make to our continent if we multiplied this capacity. The development potential of a vibrant Africa- based knowledge economy would become a genuine reality. Our capacity for innovation must become part of our diplomatic interactions and be utilised to advance our continent's ambitions. We should promote the creation of hundreds of research institutes all over Africa and ensure that they are supported to be innovative, productive and responsive. We have the capacity; let us use it strategically.
One of our major co-operation successes is our regional economic community that has established a strong platform for greater integration and growth. We must consolidate and expand trade and
investment in the Southern African Development Community, SADC, and give effect to the President's assertion that:
Within the SADC region, we should prioritise development of cross- border value chains in key sectors such as energy, mining and mineral beneficiation, industrialisation and enhancing manufacturing capacity, infrastructure development as well as agro-processing.
We will therefore intensify several related SADC initiatives. I am pleased with the progress that was achieved during South Africa's tenure as SADC chair. Progress on regional trade has been increased by the operationalisation of the integrated Real Time Gross Settlement, RTGS, system, which is hosted by the SA Reserve Bank. A total of 81 banks are participating in this system. The system aims at establishing a firm platform for increased intra-SADC trade and investment to further strengthen regional financial integration. The SADC-RTGS system has performed impressively since July 2013 when the system went live, with a total of 1,275,591 transactions settled as at the end of 2018, representing R21 trillion ... I beg your pardon,
R5,21 trillion. The benefits of the cross-border payment system are its efficiency and the reduction in transaction costs. We believe this experience is going to be a valuable contribution to the development of the continental payment system announced at the AU summit in Niger just three days ago.
A second example is the completion and adoption of the SADC Energy Foresight and Assessment Study for Renewable Energy Value Chains. Member states are going to use the recommendations to develop SADC's renewable energy capacities. Our Council for Scientific and Industrial Research was tasked to conduct a mapping exercise of potential renewable energy value chains for use by SADC member states. A progress report will be presented to Ministers in June 2020.
Thirdly, the SADC Engineering Needs and Numbers study has been concluded. It will assist in implementing programmes for developing enhanced engineering training at national and regional platforms to enable career development and the sharing of experience and expertise within SADC. Member states have also been urged to introduce Science, Technology, Engineering and
Mathematics at very early stages in SADC education systems to increase the number of students able to take up studies in engineering fields.
We are also going to work hard to promote the tripartite free- trade area, TFTA. The Common Market for Eastern and Southern Africa, Comesa, SADC, as well as the East African Community, EAC, in their summit in 2008 agreed to accelerate the programme to harmonise trade arrangements among the three regional economic communities, with a view to establishing a single free- trade area encompassing all member states of these three regions.
Our country appended its signature to the agreement establishing the TFTA on 7 July 2017 in Kampala, Uganda. To date, the agreement has been signed by 23 member countries. We require 14 ratifications to enter it into force. Thus far we have three and we need more. We will intensify our diplomatic efforts aimed at urging other member countries to sign and ratify this important instrument in order for it to become operational. A summit of the tripartite communities is scheduled to take place
in January 2020. We hope that the ratification threshold would have been achieved by that date when we meet in Kigali, Rwanda.
The recent report of Africa's regional bodies submitted at the AU's extraordinary summit in Niger confirmed the critical role that regional economic bodies are playing in our development programmes and particularly in acting on our programmes linked to Agenda 2063.
I confirm that our commitment to Agenda 2063 remains steadfast. We are honoured to have been selected as the 2020 AU chair. We are cognisant of the huge responsibility ... [Applause.] ... this places on South Africa, particularly the pursuit of the ambitious agenda of silencing the guns on our continent by the end of 2020.
We have a rare opportunity to place this goal on top of the agenda of the UN Security Council when we assume the presidency of the council in October this year. The theme for our council presidency is: Continuing the legacy: Working for a just and peaceful world. It is important to use our tenure at the
security council and as chair of the AU to implement the enhanced co- operation agreement on peace and security as it foregrounds commitment to conflict prevention, and to addressing the root causes of conflict.
This commitment is the embodiment of the legacy of Nelson Mandela who, during his tenure as President of our country, worked tirelessly to advance peace and stability on the continent and globally through mediation and preventative diplomacy.
The continued existence of conflicts diverts us away from our goal of peace and development. In this regard, we repeat our call for a total ceasefire in Libya and the pursuit of an inclusive national dialogue led by the AU. On Sudan, we deplore the recent violence and deaths in that country and welcome the agreement reached by the Transitional Military Council and the Forces of Freedom and Change. This is an opportunity for the people of Sudan to begin entrenching peace and stability. We applaud the mediation efforts of the AU and the Intergovernmental Authority on Development, Igad. As South
Africa, we stand ready to assist where we can. Our experience in conflict resolution and in drafting a progressive Constitution makes us a partner genuinely able to resolve complex national problems.
Our President has done much to assist the Kingdom of Lesotho as the envoy of SADC. While appreciating the progress reported recently, we implore all the people of the Kingdom of Lesotho to work diligently on the finalisation of the necessary constitutional and security sector reforms. We thank former Deputy Chief Justice Moseneke for his work as the presidential facilitator.
A peaceful and stable, as well as economically integrated Africa, will contribute towards transforming the world to ensure that people of the global South are not marginalised. We have partnered with likeminded countries to improve our condition and that of our partners. Work in Africa's partnership with China in the Forum on China-Africa Co-operation and with Japan in the International Conference on African Development can make a significant contribution to our progress.
The Brics is also a formation which has the potential to change the global political and economic outlook. The work of the New Development Bank, NDB, its Africa Regional Centre, ARC, located in South Africa, and the Contingency Reserve Arrangement, CRA, are concrete examples of the effectiveness possible in Brics.
The regional centre is focussed on providing financial and project preparation support and funding for infrastructure and sustainable development in South Africa, Africa, and we hope in future, to other developing countries.
In April this year, the NDB approved around US$790 million of loans for three projects in South Africa. One half of the funding is for Eskom to stabilise our national electricity grid. The NDB and Eskom signed a separate agreement for a US$180 million loan to implement an integrated renewable energy project. This is all evidence of the use of diplomacy to address national imperatives.
The NDB will also provide infrastructure and sustainable development project funding to countries that are not members of
Brics. It has confirmed that part of the US$790 million will fund the Lesotho Highlands Water Project. The implementation of the second phase of this project is important to both South Africa and Lesotho, and is of immense development value to the two countries.
We also continue to enhance our co-operation with institutions and countries of the North. Our partners continue to play a constructive role in bridging the global development divide. President Ramaphosa has been consistent in using platforms such as the G20 and the G7 to argue for support for Africa and for a fair, inclusive and balanced world trade environment.
As a country we believe in multilateralism and reject attempts at unipolarity and a neglect of the poor and marginalised. We believe much more must be done for shared growth; for the empowerment of women; and for the eradication of poverty as well as the eradication of inequality. Success in pursuing these objectives means leadership, hard work, consistency and commitment. We as Africans must rise and act in our own interest. We need to execute our own agreed agenda.
We have a number of important strategic partners whose support and solidarity we appreciate. One, which we often don't talk of, is the USA, a very important strategic partner in the fight against HIV and Aids. The USA has been instrumental in supporting our national HIV prevention and support programmes, and American businesses continue to invest in South Africa to create employment and reverse the frontiers of poverty. We have excellent trade relationships and are determined to expand them for increased growth and job creation.
We will affirm these links while also working to support measures for peace in South Sudan; freedom and justice for the people of Saharawi; and freedom, security and democracy for the people of Palestine. We will also continue to strive for the end of the unilateral economic blockade against Cuba and continue to strengthen our collaboration with the government and people of Cuba.
We have been closely monitoring developments regarding the UK's planned exit from the EU. South Africa remains strongly committed to our strategic partnership with the EU, which has
created a platform for engagement at a number of levels, not only on bilateral matters but also on matters pertaining to regional, continental and global challenges. As a bloc, the EU is South Africa's largest trading partner, with total trade having increased from R497 billion in 2014 to R620 billion in 2018. While there remains a significant trade deficit, South African exports to the EU have increased from R197 billion in 2014 to R268 billion in 2018. The R1,4 trillion in foreign investment from Europe, representing approximately 77% of total foreign direct investment, FDI, in our country, has made a significant contribution to our economic goals and to industrialisation in our country.
We will work with greater energy to increase our co-operation with India, Russia and Brazil. Our partnership with the People's Republic of China will continue to grow and thrive. The recent conclusion of 90 trade and export contracts will enhance our partnership even further.
In his recent state of the nation address, the President referred to the need for us to increase tourist arrivals to
support our economy. Europe and Africa remain among the leading continents in terms of tourist arrivals in South Africa. I have tasked all our missions with the responsibility to help manage and brand South Africa to attract more tourists. Similarly, they have been given the huge task of assisting us in securing more FDI, while identifying and leveraging trade and cultural diplomacy opportunities in their host countries.
Our foreign policy principles remain centred on promoting peace, human rights and dignity for all throughout the world. We continue to be guided by our apex mandate, which is our Constitution. I am currently studying the ministerial review panel's report on foreign policy and hope to report very soon to our portfolio committee and Parliament on our response. We also hope that Parliament will assist us by finally processing the Foreign Service Bill.
I would like to conclude by thanking the two Deputy Ministers for their guidance and support in preparing for the Budget Vote. Deputy Minister Botes will outline further details of our work in his contribution. Deputy Minister Mashego-Dlamini is away on
official duties attending a Commonwealth governing council meeting. I thank our director-general and the management of the department, my special advisors and the staff in the Ministry. I also thank my family, especially my daughter who rather late at night had to listen to my draft of this speech and was falling asleep poor thing, but kept up. [Applause.] I thank her for that. Sorry to have put you through that pain. Let me also thank the Dirco team for their role in ensuring that we were ready to provide an overview of our work in this debate. Thank you very much, hon Chairperson. [Applause.]