remarks by the kwazulu-natal mec for economic development and ...

REMARKS BY THE KWAZULU-NATAL MEC FOR ECONOMICDEVELOPMENT AND TOURISM, THE HONOURABLEMICHAEL MABUYAKHULU ON THE OCCASION OF THEWELCOMING BREAKFAST FOR MKI BPO (BUSINESSPROCESS OUTSOURCING) STUDENTS RETURNING FROMINTERNSHIP IN INDIAPROGRAMME DIRECTOR;5 AUGUST 2011THE HONOURABLE COUNSUL GENERAL OF INDIA, MR ANIL K.SHARAN;DIGNITARIES PRESENT;LADIES AND GENTLEMEN;ALL PROTOCOL OBSERVED.It gives us pleasure as the Ministry of Economic Development and Tourism to be part of thisgrand occasion where we are meeting to celebrate the return of students from India who arepoised to play a critical role to change the economic fortunes of our province, particularly in theICT and BPO sectors.Programme Director, we believe today is a day that is special not only to the students whom weare receiving and their parents, but to the whole province of KwaZulu-Natal. We say thisbecause in the arsenal of our skilled personnel we now boast a cadre of young people whom wehave no doubt that they will do their bit to ensure that the BPO sector becomes one of the critical

areas of growth in the province. For this we are eternally grateful to the government of Indiawhich has opened its arms and allowed our students to immerse themselves in their well ofknowledge in the BPO and ICT sectors. This south-south gesture of co-operation is yet anotherpractical example of what can be achieved if countries from the developing world work together.As many of you are aware, India and South Africa are engaged, side by side, in many battles inthe global arena, including the transformation of multi-lateral institutions such as the UnitedNations and the Brettenwood institutions.Programme Director, The Moses Kotane Institute was established by the KwaZulu-NatalDepartment of Economic Development and Tourism to respond to the desperate need to createopportunities for skills development in our province. As all of us know one of the structuralchallenges which have been identified by the New Growth Path as preventing our country fromachieving economic growth is the issue of lack of skills. According to the expanded definition ofunemployment, at 37%, our country has one of the highest unemployment rate in the world,thanks to a slew of legislations from the apartheid era which relegated many of our people to thefringes of economic activity.Programme Director, Business Process Outsourcing and ICT are the fastest growing skillsdevelopment areas in the developing world today. It is easy to train people in these areas andonce trained and experienced, people can move up the employment ladder rapidly and create jobopportunities for others through small and medium enterprises. BPO is especially suitable forinteractions between small and large businesses to occur at local and international levels.

According to research, the global business outsourcing industry has been growing steadily overthe last few years. It is expected to reach an estimated $181 billion by 2012 (versus $115 billionin 2008).This presents a growing rate of over 11 percent per annum. This shows that the BPOindustry, in an environment where global recovery from the recession has been sluggish, willcontinue to play a critical role to drive economic growth. This is evidenced by the fact that,according to research which was done by the Department of Trade and Industry, the SouthAfrican BPO industry currently employs more than 30 000 people and has been growing at 33%per year.Programme Director, this rosy outlook about the role of BPOs and ICT is also replicated at acontinent level. According to the India based consultancy Avasant, Africa is the next biggestgrowth area for BPOs. Boasting a one billion population, Africa has all the prospects of being aforce to be reckoned with in this industry.This is evidenced by the fact that over the past five years, Africa’s cellular market had grown5000% to over 400million subscribers. The continent also has the fastest growth ICT market inthe world. The World Bank estimates that the continent will draw over $90billion a year tosupport growth and development. Programme Director, these figures confirm one thing that withregional integration dominating the economic discourse on the African continent, BPO and ICTare one of the industries that will be a fillip for accelerated economic growth.Today we celebrate the successful story of young people, who joined the Moses KotaneInstitute’s programme as unemployed youth. They chose to do the right thing – improve their

skills and play a role in the country’s economic development. They spent a year studying andtraining to become proficient in BPO. They spent another year sharpening their skills whileengaging with the global players in business. They did the former at home and succeeded againstthe odds of poverty and deprivation, relying on a scholarship that provided for tuition only. Weappreciate the supportive role played by their trainers, parents and other supporters in SouthAfrica.The role of the global player in BPO training, NIIT, is much appreciated. The willingness ofuMfolozi FET College management to allow the Moses Kotane Institute to open a training centeron their campus is also highly commendable. By giving our students an opportunity to realize thedream of their lifetime, you did not only give them international experience, but you alsoprovided the Moses Kotane Institute with international exposure. We truly appreciate the roleplayed by the Indian Consulate and government in making this initiative the great success itturned out to be.We believe that the learners have sharpened their skills through the Indian experience of 12months and are ready to tackle any BPO challenge. In this context, we appeal to the businesssector in South Africa to pledge their support to employ these young people and provide themwith mentorship that will allow them to grow into small businesses owners who can employothers in the communities where they live.On behalf of the Ministry and Department of Economic Development and Tourism in KwaZulu-Natal, the Moses Kotane Institute, we wish to welcome back home, the first batch of MKIstudents to complete international internships. You have opened the way for numerous youngadults who are coming behind you.

The Moses Kotane Institute aims to train 10 000 unemployed youth and young adults, including5 000 BPO experts, by 2013. We hope that you will live up to our expectations of proving thateconomic development is possible through skills development. We look forward to you openingyour small and medium enterprises in celebration of a better future for all.I thank you all