Deputy President Paul Mashatile: Working visit to United Kingdom of Great Britain

Keynote address by Deputy President Shipokosa Paulus Mashatile at Goldman Sachs during his working visit to the United Kingdom of Great Britain, London

Thursday, 3 October 2024
Programme Director;
Ministers and Deputy Ministers;
Representatives of Goldman Sachs senior management including Kunal Shah, Ryad Yousuf, Bivash Gunpath and Andrew Matheny; 
Representatives of leading UK-based institutional investors including asset managers, hedge funds and insurance companies; 
Invited Investors and Fund Managers;
Ladies and gentlemen,

I am deeply honoured to stand before you this morning at this prestigious gathering organised by Goldman Sachs, one of the largest investment banks, as we continue to work together to find ways to attract more investment into our respective countries.

This morning I would like to shed light on the critical importance of fostering economic collaboration and investment between our nations.

The relationship between the United Kingdom and South Africa transcends geographical boundaries and ties us together through historical, economic, and cultural connections. It is this shared history and common vision for a prosperous future that forms the foundation of our partnership and sets the stage for greater collaboration.

At the opening of our first democratic parliament, President Nelson Mandela said, We must, constrained by and yet regardless of the accumulated effect of our historical burdens, seize the time to define for ourselves what we want to make of our shared destiny.”

Thirty years later, these words by the founding president of our democratic  Government remain truly inspirational. We have an opportunity, arising out of the outcomes of our recent elections, to define for ourselves what we want to make of our shared destiny," truly united in our diversity.

No matter how we differ politically and ideologically, what unites us is our pursuit of a prosperous, united, and democratic country. We share a common vision of a South Africa in which all enjoy the protection of the law, have equal opportunities, and are free from hunger, want, and disease.

We are here today, as descendants of Nelson Mandela, to have a conversation with you and convey a message that regardless of the accumulated effect of our historical burdens, we are determined to seize the time to define for ourselves what we want to make of our shared destiny.

Our people went to the polls, freely expressing their will and mandating those on whom they wished to commit their public power. This activity has become a normative and regular occurrence in our society. In a unified manner, the people of our country have stated that they do not give that public power to a single political party.

This was a plea for political parties to put aside their differences and use our strength and experience to carry out the wishes of their constituents. Our people have bonded us so that we may work together and hold each other accountable for the advancement of our country, South Africa, a rainbow nation.

In this regard, the ANC, as the largest party in Parliament, drafted a statement of intent and invited all political parties to form a Government of National Unity. The GNU is now at work, implementing the programme of Government driven through three overarching priorities:

•    To drive inclusive growth and job creation;

•    To reduce poverty and tackle the high cost of living and;

•    To build a capable, ethical, and developmental state.

If you had been following us from South Africa the moment we set foot on this ground, you would have realized that the GNU is operational and that we are all working as a team. When we address challenges, we do so in a unifying and understanding manner, and when we have disagreements, we sit down and have a conversation until we reach a decision that we can all agree on.

As a result, the GNU is a resounding demonstration of a democracy in operation that can serve as a model for other democracies around the world. We were able to form a government in less than a month following the election, and there was no loss of life.

Our leadership and maturity in domestic politics qualify us to be appropriate leaders on a global stage. This is the reason why we, as a nation, are of the opinion that the impending G20 Presidency from December 2024 to November 2025 will present a critical opportunity for our pursuit of sustainable development and global cooperation.

Our guiding theme for the Presidency of the G20 will be ” Solidarity, Equality, and Sustainable Development." This pronounces South Africa’s abiding commitment to fostering international cooperation in addressing global challenges.

We aim to use the G20 Presidency to address pressing challenges by lobbying for increased respect for the rule of law and cooperation within the international system. South Africa is committed to the realisation of the AU's Agenda 2063.

As a result, we will use our hosting G20 to promote the achievement of the Africa we want. The Africa that we want is Africa that is giving birth to global entrepreneurship.

Africa that is skilling its people to benefit from its mineral and rich resources.

Africa that is on a path to achieve inclusive and sustainable socio-economic development by 2063.

Critical to the achievement of the Africa we want is our country, South Africa, the powerhouse of Africa and the gateway to the continent; hence, we are signatory to the African Continental Free Trade Area (AfCFTA), which seeks to create a single continental market for goods and services in Africa.

We understand that to maintain our self-proclaim position as a gateway to Africa, we must invest heavily in infrastructure, particularly rail and road infrastructure, to make it easier to move goods.

Well-designed infrastructure is critical for the efficient production and use of goods and services because it lowers trade costs and allows for economies of scale. It is a critical component of economic growth and development, which is necessary for improving living standards.

To cement our commitment to improving infrastructure in our country, we have established Infrastructure South Africa in response to SA's Infrastructure Investment Plan, which identified the need for a focused governance structure for infrastructure projects, programs, and investment.

Ladies and gentlemen,

South Africa is open for business and needs a lot of capital injection to realise its economic growth targets. In this regard, we intend to address our current underinvestment by developing an investment model that attracts greenfield investment, which leads to high growth and a significant contribution to the GDP.

We will mobilise resources from both the fiscus and capital markets that are ready to fund some of our projects through blended finance, as well as mechanisms such as Build, Operate and Transfer (BOT).

We identified network industries as catalytic for economic recovery because of their potential to stimulate investments and economic activities in other areas.

In this regard, we have stabilised our energy availability factor and have provided enough energy for the base load, leading to no occurrences of loadshedding over the past few months. We achieved this by intentionally implementing our Energy Action Plan.

However, we still need a lot of investment in this area, particularly in harnessing green sources of energy to achieve a sustainable energy mix.

In this regard, we need to invest in financing our Just Energy Transition to ensure a fair, equitable, and sustainable energy transition that protects jobs and livelihoods.

We have developed a green hydrogen commercialisation strategy that provides for the development of massive infrastructure for the production of green hydrogen.

Ladies and gentlemen,

The Minister of Water and Sanitation has developed and published the raw water pricing strategy. The strategy aims to offer water users transparency and predictability in water pricing.

The President has appointed me to lead a Water Task Team to avoid sliding into a water crisis. One of the urgent priorities is to fix ageing infrastructure.

The department of water and sanitation has already allocated R10.1 billion to municipalities through the regional bulk infrastructure grant, R4.6 billion through the water services infrastructure grant, and R1.4 billion through the municipal recovery disaster grant to address water challenges.

There are investment opportunities in this regard, ranging from raw water to bulk water treatment, water reticulation to consumers, and waste water treatment facilities.

Ladies and gentlemen,

We have progressed in correcting grey-listing anti-money laundering inadequacies, as determined by the Financial Action Task Force (FATF). South Africa primarily handled three further action items following the conclusion of the FATF Plenary on June 29, 2024. Now, South Africa has handled or largely resolved eight of the 22 points, leaving 14 outstanding, all of which require attention within the next four months.

This will enable the FATF to authorise a visit to South Africa by FATF reviewers in May 2025, with the aim of verifying the appropriate handling of all action items. This would enable the Africa Joint Group (JG) of the FATF to propose the removal of South Africa from the grey list during the FATF Plenary in June 2025.

Finally, in today's quickly changing global economic scene, governments must seek out new pathways for growth and development. Investment opportunities between the United Kingdom and South Africa have enormous potential for mutual benefit, spurring innovation, creating jobs, and increasing competitiveness in both economies.

South Africa, with its abundant natural resources, talented workforce, and strategic location, is an appealing investment option for UK businesses seeking to grow their presence in Africa.

Similarly, the United Kingdom's advanced technology, financial acumen, and worldwide reach provide South African businesses with access to the European market and beyond. By collaborating and utilising each other's strengths, the UK and South Africa can establish a path to shared prosperity, driving long-term progress and fostering socioeconomic development.

We are committed to creating an enabling environment that promotes investment, business-friendly policies, and regulatory certainty. I extend my heartfelt gratitude to Goldman Sachs for hosting this important engagement.

In our hands, we have the compass; we must set the direction we want to pursue; as South Africans, we are on a path to economic development. I am accompanied by Ministers and Deputy Ministers who further shed more light during engagements with yourselves this morning.

Thank you very much for listening to me!