Hon Chairperson, hon Minister Gordhan, hon Deputy Minister Nene, hon members, ladies and gentlemen, comrades, in global terms, South Africa's international financial policy must be shaped by the interplay between diplomatic, political, environmental, economic and regional co- operative dynamics that define early 21st century international relations.
South Africa's foreign policy is therefore driven by a clear and critical understanding of our national, regional and continental priorities in a multipolar world where the geostrategic politics of the African continent are, once again, becoming increasingly central to global political economic competition for natural resources and market share.
In order for South Africa to achieve its national goals of eradicating poverty, lowering inequality and creating employment opportunities, foreign financial relations must be driven by our domestic, economic and social demands, as well as our regional, continental and global obligations.
This goal is driven by the Treasury's programme for international financial relations. Work in the programme is given effect by the international and regional economic policy divisions which facilitate the deepening of South Africa's role in regional and international economic integration.
The strategic objectives are: to advance South Africa's interests specifically, and those of Africa more generally; to actively promote South Africa's financial and economic relations in bilateral and multilateral forums; to formalise the process in which South Africa disseminates knowledge on regional, financial and economic development; and to participate in bilateral and multilateral forums.
Die Komitee van Tien Afrika-ministers van Finansies en die Presidente van die Sentrale Banke ontmoet gereeld met die hoofde van die Ontwikkelingsbank van Suider-Afrika, die Kommissie van die Afrika-unie en die Verenigde Nasies se Ekonomiese Kommissie vir Afrika, waar onderwerpe soos onder meer die G20-agenda, voorkeursake vir Afrika, die rol van finansile regulasies en Afrika se stem en verteenwoordiging in internasionale finansile instellings bespreek word.
Die doel van die samekomste is om druk uit te oefen vir groter deelname en inspraak vir Suid-Afrika en Afrika-lande, asook beduidende hervorming van die Bretton Woods-instellings en prosesse. Dit verseker dat die stem van Afrika in die forums vir internasionale ekonomiese beleidformulering gehoor word.
Uitkomste in hierdie verband sluit in onderling ooreengekome response wat by die G20 ingevoer word, asook die ontwikkeling van toekomstige werkprogramme en geleenthede om Afrika se sienswyses oor te dra. (Translation of Afrikaans paragraphs follows.)
[The Committee of Ten African Ministers of Finance and Central Bank Governors meet regularly with the heads of the African Development Bank, the Commission of the African Union and the United Nations' Economic Commission for Africa where, amongst other topics, like the G20 agenda, matters of priority concerning Africa, the role of financial regulations and Africa's voice and representation within international institutions are discussed.
The aim of these meetings is to pressurise for greater participation and say for South Africa and African countries, as well as substantial reforms with regard to the Bretton Woods institutions and processes. This ensures that the voice of Africa is heard in the forums for international economic policy formulation.
In this regard, results include mutually agreed responses which are incorporated by the G20, as well as the development of future work programmes and opportunities to convey African's points of view.]
After the barriers to investment came down with the advent of democracy in South Africa, businesses moved quickly, with encouragement from the ANC-led government, to take advantage of the market opportunities on the continent. The stock of South African direct investment in the rest of Africa equals approximately 5% of our GDP, with a broad cross-section of the corporate community involved. South African banks appear to be well positioned to take advantage of expanding financial services throughout Africa.
In this regard, it is pleasing to note that South African financial institutions continue to consolidate their role as catalysts of financial development and regional integration within the SADC, and the continent at large. The strategic emphasis on regional financial development in Africa presents South Africa with a challenge to redouble our efforts.
It is therefore not surprising that the Treasury's programme for international financial relations also leads the reform of the governance and administration structures of African institutions which enhances South Africa's shareholding and influence at the African Development Bank, working towards ensuring effective financial administration of the SADC Financial Committee's Secretariat, and contributing towards the review of the SADC's Regional Indicative Strategic Development Plan.
On the international scene, the International Monetary Fund, IMF, is committed to working together with South Africa to provide the advice and analysis that can address and unleash our own and the continent's full economic capabilities. As a member of the G20, and being one of the largest economies in sub-Saharan Africa, South Africa has a clear role to play in ensuring global economic stability and contributing to sustained and balanced economic growth. The mobilisation of support for the African agenda is a key priority of South Africa's international financial relations.
South Africa's accession to the increasingly influential Brics formation, therefore, offers enormous opportunities, not only for the country, but also for our friends and neighbours on the continent. Financial co- operation mechanisms established within the Brics structure further enhance the potential to mobilise resources for development and regional integration within the SADC.
Nader aan ons tuisfront bevorder die Tesourie se Eenheid vir Internasionale Finansile Betrekkinge integrasie en versterk die Tesourie bande binne die substreek deur die skepping van 'n klimaat wat dien as die onderbou vir ekonomiese aktiwiteite met die lidlande van die Suider-Afrikaanse Doeane- unie. Onderhandeling is aan die gang ten opsigte van 'n nuwe inkomsteverdelingsooreenkoms vir die Doeane-unie wat bestaan uit Botswana, Lesotho, Namibi, Swaziland en Suid-Afrika. Die eenheid speel 'n leidende rol tydens die onderhandeling betreffende Suid-Afrika se voorstelle ten opsigte van die hersiening van die ooreenkoms deur die Doeane-unie. Die eenheid word ook deur die Departement van Handel en Nywerheid bygestaan tydens multilaterale onderhandeling wat gerig is op die implementering van die Doeane-unie se finansies en beleggingsprotokol. Die eenheid gaan ook Suid-Afrika se moontlike lidmaatskap van die Afrika-uitvoer-invoerbank en die Afrika-herversekeringskorporasie ondersoek.
Die ontwikkeling en vooruitgang van Afrika bly die sentrale doelstelling van die ANC se perspektiewe en beleidsrigtings vir die bevordering van die Afrika-renaissance en die transformasie van die instellings wat vir globale finansile bestuur verantwoordelik is.
In hierdie verband het president Jacob Zuma die afgevaardigdes van 60 lande tydens die openingsessie van die 21ste Wreld- Ekonomiese Forum oor Afrika meegedeel dat die internasionale finansile en ekonomiese wreld nie meer na die "ou" Afrika kan verwys nie, aangesien dit dringend nodig geword het om nuwe betrekkinge te ontwikkel wat Afrika tot voordeel strek - betrekkinge en vennootskappe wat verskil van di wat tot dusver gegeld het.
Dit is ANC-beleid dat betrekkinge met internasionale finansile instellings soos die Wreldbank en die Internasionale Monitre Fonds op so 'n wyse bedryf word dat dit die integriteit en die belange van die Suid-Afrikaanse ekonomie en bevolking bevorder. Maar bowenal moet ons self 'n beleid nastreef wat ons in staat stel om afhanklikheid van internasionale finansile instellings te voorkom. (Translation of Afrikaans paragraphs follows.)
[Closer to home, the Treasury's Unit for International Financial Relations promotes integration and the Treasury strengthens ties within the subregion by creating a climate that serves as a substructure for economic activities with the member countries of the Southern African Customs Union. Negotiations is taking place with regard to a new agreement concerning the distribution of income for the Customs Union which consists of Botswana, Lesotho, Namibia, Swaziland and South Africa. The unit plays an important role during the negotiations of the proposals by South Africa concerning the review of the agreement of the Customs Union. The unit is also supported by the Department of Trade and Industry during multilateral negotiations which are aimed at the implementation of the financial and investment protocol of the Customs Union. The unit will also investigate possible membership of the African Export-Import Bank and the African Reinsurance Corporation.
The development and progress of Africa remains the central goal of the ANC's perspective and policies for the promotion of the African renaissance and the transformation of the institutions responsible for global financial management.
In this regard, President Jacob Zuma informed the delegates of 60 countries during the opening session of the 21st World Economic Forum on Africa that the international financial and economic world cannot refer to the "old" Africa any longer seeing that it has become urgent to develop new relations which should benefit Africa - relations and partnerships which differ from those that were valid up to now.
It is the policy of the ANC that relations with international financial institutions like the World Bank and the International Monetary Fund should be conducted in such a manner that it enhances the interests of the South African economy and population. But above all we ourselves should pursue a policy which will enable us to prevent dependency on international financial institutions.]
South Africa is very fortunate to have capable financial managers who maintain the prudent international financial policies that can create an economic climate conducive to growth and job creation. At the same time, the medium-term strategy, as outlined in the 2013 Budget, is essential to rebuild fiscal buffers and reduce external vulnerabilities. These policies can provide the space to implement the reforms needed to increase growth and employment. These policies bring the most benefits to the entire population and continue building an inclusive country that can be a proud example to the international community. The ANC supports Budget Vote 10. I thank you. [Applause.]