Deputy Chairperson, good morning everybody, I am very happy that I could bring a smile to you every morning when I come and stand here. I will be short today but, since I heard a remark from the floor I will be extra long.
Transforming the economic landscape, the infrastructure investment and in development is a precursor to economic growth and a key component of the 2030 Development Agenda. By transforming the economic landscape through the infrastructure investment and development, there will be an impact of infrastructure on poverty elevation. Equality, growth and specific development outcomes such as job creation, market access health and education.
Infrastructure directly affects human welfare and equity across community and income groups, urban-rural households in South African experienced widely different access to basic infrastructure services.
In line with the government's vision, to move South Africa to be an export- led economy, investment and network infrastructure which includes road and rail. The South African government adopted a National Infrastructure Plan in 2012, the plan aims to transform our economic landscape while simultaneously creates significant numbers
of new jobs. These investments which would improve access by South Africans to health care facilities, schools water, sanitation housing and electrification.
Investment in the construction of ports, roads railways systems, electricity plants, hospitals, schools and dams will contribute to the faster economic growth. Let us put the emphasis on the veins of this country which are the railway and roads. Without that being in a good, strong and constructive situation, we cannot keep this country running. It is like a man who needs a heart by pass and he is struggling, but the moment you go over the obstacles his heart pumps. The county's heart pumps and we will move forward. We can contribute and make sure that we can have a faster economic growth but relies on each and every one of us.
It is so easy to say it is the government's responsibility - where does our responsibility lies? To achieve this, a collaborative approach between the private sector and the government is essential. For institutional investors we have seen low returns on the traditional asset classes, investing in infrastructure has become more important to diversify and enhance returns for the government, this could provide a source of capital to be blended finance instruments. We cannot ignore that.
The economic importance of infrastructure investment has been analysed both at project and macro levels. At a project level the focus is on the social costs benefit of infrastructure project and the implied internal rate of return. The social cost benefit analyst often tries to account for negative externalities at a macro level. The impact of infrastructure investment is analysed using aggregate production function with the assumption that infrastructure is a complementary to other inputs in the production function.
The macro latitude shows that improvements in infrastructure could raise productivity, stimulate private investment and facilitate domestic and internal trade thereby promoting sustainable growth. I wanted a brick to bring along today but I was scared that it might be thrown at me so I left it. They need to build infrastructure with that brick.
Here are the few examples of how the Free State intends to transform the economic landscape through infrastructure investment and development. Grain Fields Chickens ... [Interjections.] Yes Sir. But if you have gone to visit it you will find that there is definitely an improvement. Can I continue with my speech please? Thank you.
Grain Fields Chickens is a large abattoir in Reitz and it is one of the company's biggest facility in the province. Industrial Development Corporation, IDC, which has 23% stake in the projects aims to help develop the Free State hub of South Africa. FBK'S headquarters and Reitz and the group have nine branches in sector such as fuel, grains, animal feed and foods. BBK has development programmes with 51 emerging commercial farmers in the province and data on a 140 developing farmers. Investors are being encouraged to look at baby vegetables, wholesale meat products and leather manufacturing.
With regard to oil and gas, the oversees Overseas Private Investment Corporation of the Unites States, US, government will land more than 600 million over twelve years to build a gas plant in the Free State this will happen around Virginia.
In conclusion, the mining sector makes up 11% of provincial GDP, minerals beneficiation strategy has been developed because this is a key area for potential growth. Thank you very much. God bless you.