speech deliv ered by dr mathews phosa, treasurer general of the ...

SPEECH DELIV ERED BY DR MATHEWS PHOSA, TREASURER GENERAL OF THE
AFRICAN NATIONAL CONGRESS AT A N ANC PROGRESSIV E BUSINESS FORUM
BRIEFING FOR BRITISH AND EUROPEAN BUSINESS AND INDUSTRY LEADERS AT THE
GROSV ENOR HOUSE HOTEL, PARK LANE, LONDON, CO-HOSTED BY LONMIN PLC
29 OCTOBER 2009
Let me first thank you for the opportunity of addressing you this evening.
It has been fifteen years since all South Africans voted for the first time and w e are proud of our
achievements during this short period of democracy.
Our model of democracy has been praised w orldw ide and some of the architects of our political
miracle are in demand around the globe to assist w ith negotiations in the hotspots of the w orld.
For mer Presidents Nelson Mandela and FW de Klerk w on the Nobel Peace Prize for their own
efforts in ensuring that South Africans are now united and can look towards a more peaceful
and prosperous future.
During this post-democracy period w e have had four Presidents and, like you, w e have had the
head of government retire during tenure. We are, in fact, following the example of Europe in
becoming a nor mal democracy.
During this period of fifteen years w e have successfully played host to the Rugby World Cup,
the Cricket World Cup and recently successfully and seamlessly stood in for India as the host of
the IPL Cricket League.
These successful efforts will be follow ed next year by the hosting of the Soccer World Cup. In
preparing for such a major event there is a massive effort under way to substantially improve
our infrastructure and to build a number of new stadiums.
In addition to these efforts we have continued to play a leadership role in the Southern African
region and on the African continent. The fact that w e were able, through visionary leadership, to
move our country to a stable democracy, also meant that w e are viewed as a trusted partner by
many countries across the globe.
As we stand here today Britain is South Africa’s second largest trade partner after China.
It is, how ever, a partner that we have trusted and valued over the centuries and one that has
stood by us during both good and bad times.
It is a partnership and relationship that w e wish to continue and expand at all times. This point
was made by our President w hen he visited your Prime Minister in April last year and repeated
recently w hen he met w ith your High Commissioner to accept her credentials as your countries
representative in South Africa.

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LONDON - 29 OCTOBER 2009
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It is one of the major reasons that I am here today as the Treasurer General of the African
National Congress. I also convey the w ishes of our party’s leadership as well as that of the
President to strengthen and deepen our commercial relationship.
In that regard, you have been a mining partner of ours for a very long time. Your recent
substantial investments by Barclays into our local bank, ABSA, as w ell as Vodafone into our
ow n Vodacom critically enhanced that preferred partner relationship betw een us.
It is my fervent hope that my visit can, in time, unlock further opportunities for both British and
South African investors.
I am told that I can now go and drink coffee here at the South African coffee shop Vida e Caffe
and have lunch at our restaurant group, Spur.
Financial services groups such as Old Mutual, Investec and Standard Bank utilize London as a
springboard to identify opportunities in Europe.
It is my fervent hope that even more British companies w ill utilize our major cities as a similar
springboard to broaden your business activities into Southern Africa and the African continent.
On a political level, w e believe that w e have been a sound and trusted partner for our friends in
multi-lateral forums such as SADC, the African Union, the G20 and the United Nations. We w ill
continue to utilize those forums to w ork for the advancement of the agenda of political and
commercial partnerships that w ill further enhance our agenda of South and Southern Africa as a
favoured developmental, political and commercial partner.
In the challenging global economic environment in w hich Jacob Zuma became the fourth
President of the Republic of South Africa at the end of April this year, he inherited the follow ing:
• A strong governing party with a clear and decisive majority at the polls.
• A region dominated by the instability in Z imbabwe where the Zanu PF/MDC alliance is a
cause for concern, amongst many other concerns.
• A continent w here the final form and format of the African Union is still being debated.
• A country where crime and corruption is at unacceptable levels and an issue of concern
for our British, European and global partners. In this regard, w e will and must move
aw ay from a culture of greed and self enrichment to one of transparent accountability.
We should also consider additional legal measures, one of them being the potential
appointment of a Corruption Commissioner w ith w ide ranging legal powers.
• A country where we have no other choice but to focus a large amount of energy on
addressing decades of old backlogs in education, health and housing. In the mini
budget delivered by our Minister of Finance on Tuesday, he announced an additional
package of almost R1 billion for HIV/AIDS as w ell as substantial increase in spending in

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housing and education through a number of initiatives, inclusive of infrastructure
creation. We hope to create more than 4 million jobs in the next three years.
In addition, there is a view that, because of the above, the South African government will
incrementally move its economic policies to the left of centre and thereby cause concern
amongst some of its partners.
You can expect the follow ing from the ANC government, headed by President Zuma:
• That Mr Zuma, as President, w ill move sw iftly to restore the legacy of reconciliation and
nation building, bequeathed to him by Mr Mandela. South Africa w ill operate as a team
from a non-racial, non-sexist basis.
• That w e w ill w ork tirelessly to find democratic solutions to enhance a political settlement
in Zimbabwe.
• That w e w ill w ork very hard towards defining our role on the continent in such a w ay that
we act as leaders, but also enhance unity and solidarity on the continent.
• That w e w ill launch a massive effort to enhance stability ahead of the 2010 Soccer World
Cup, but at the same time finding the right mix of socio-economic measures that w ill
combat poverty and unemploy ment, issues that are at the root of crime. One of the
announcements in Tuesday’s mini budget w as that we will put more than 22,000 new
policemen on the street and that a massive spending programme w ill be launched to
improve security in our country over the next three years.
I know that you are concerned about the noise that you have been hearing around the issue of
the nationalization of mines in South Africa. I understand that you regard this as a very serious
issue, and I w ant to reassure you that w e will manage it, keeping your substantial and historical
interests in mind.
Given our democratic nature as a party, the ANC has no choice but to allow its’ structures to
voice their opinions about this matter. It is the open and transparent w ay that we conduct our
business and w e will continue to do so.
Nationalization of the mines is, however, not the policy of the ANC, nor that of the ANC led
government.
We w ill, how ever, explore w ays and means of broadening this debate and finding creative long
term solutions to the serious issue of the broader distribution of w ealth in a responsible fashion.
It is not a debate in isolation, and your serious and blunt view s about the issue w ill be
welcomed.
You are also concerned about repeated view s that have been expressed regarding the
possibility that the ANC led government w ill start a move tow ards economic policies that are
investor unfriendly and less responsible than our current fiscal and monetary policies. I am
confident that Tuesday’s mini budget made a contribution tow ards dispelling those views over

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LONDON - 29 OCTOBER 2009
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time. Our budget policies will continue those that w e developed over time, target inflation,
encourage counter cyclical investments and relax export regulations.
The signs are that w e w ill move out of the recession in the fourth quarter of this year, start
growing by just over 1% next year and move towards a growth of 3.2% in 2012.
We are flattered by the investment into our financial services industry by Britain and China.
Other investments are being discussed into this sector, a sector that has been praised globally
for its strength under the onslaught of the global crisis.
Similarly, we have been strengthened by your support of our conservative and sound fiscal and
monetary policies.
Whilst mindful of our responsibility to broaden our services to our voters at speed, w e are also
mindful of the need of a constant and increased inflow of foreign direct investment as w ell the
development of profitable joint ventures. It is simply not in our interest to deviate from that path.
I am here as an elected representative of the ANC leadership to seek lasting commercial
partnerships that w ill benefit the United Kingdom, Europe, South Africa and Southern Africa.
Hopefully our interactions here this evening w ill contribute tow ards creating more opportunities
for entrepreneurs on both sides.
In closing, I w ant to thank Lonmin for their sponsorship of this event. Their sponsorship of this
event shows their deep understanding for the support of forums w here we can engage business
leaders in global financial centers such as London.
The co-convenors of the Progressive Business Forum, Renier Schoeman and Daryl Swanepoel,
w ill engage w ith you regarding further events next year where members of the ANC leadership
as w ell as government ministers w ill engage w ith you here on issues that define our commercial
and other relationships.
We sincerely appreciate Lonmin’s sponsorship of this event as well as your attendance here.
I thank you.