Address by the Gauteng MEC for Economic Development, Mxolisi Xayiya, on the Occasion Of

Address by the Gauteng MEC for Economic Development, Mxolisi Xayiya, on the Occasion of the 175th Anniversary of the First National Bank (FNB) and the Launch of the Bank's Precinct Rejuvenation.

19 September 2013

Programme Director,

Executive Mayor of Johannesburg, Cllr. Parks Tau,

FNB CEO Designate, Jacques Cilliers,

Honourable Guests,

Ladies and Gentlemen,

Members of the Media

Friends and colleagues

Congratulations on your milestones and thank you for inviting us to share this momentous occasion with you!

As the leadership responsible for steering the giant ship that is the provincial economy, we often say that “a rising tide lifts all boats”.

This simply means that a growing and well performing economy spells good news for all of us – for entrepreneurs, for the government, for workers and the millions of people who consider Gauteng their home.

Gauteng’s proverbial tide must rise and lift the 12.3 million boats gracing our proverbial shores.

We need your “helping hands” to partner with us in our endeavors to build a better Gauteng, a home to multitudes of people who hail from all corners of the earth.

Ladies and gentlemen,

Although this is a gathering of festivities, we would have committed a grave mistake if we did not reflect on this question today.

The gathering today has significance in more ways than one.

We meet at the time when the global economy is facing many challenges with many countries struggling to get out of the “Intensive Care Unit”, if I could be allowed to use this medical metaphor.

1 It may be appropriate to paint the real picture of the Gauteng economic, especially, against the backdrop of the two severe economic meltdowns we have experienced in the last five years.

A geographically small province that occupies only 1.4% of the total land surface, Gauteng’s 34.5% contribution to our GDP is unrivalled.

This contribution to the economy allows for government to generate enough revenue to build schools, health facilities, roads and houses not only in Gauteng but for the rest of the country.

The magnitude of Gauteng’s economy presents incomparable opportunities for the private sector.

The size of our population means that entrepreneurs in Gauteng have the biggest market for selling their goods and services in the country.

The fact that Gauteng has over 4 million people in employment means that the buying power for Gauteng consumers is significantly higher than in other provinces.

But there are also serious challenges and these have as much an impact on the private sector as they do on the rest of society.

The three-headed challenge of poverty, unemployment and inequality is a startling reality faced by this province and the country at large.

Another hurdle to a growing and prosperous economy is the albatross of youth unemployment, which also constitutes the biggest political question facing most democracies today.

Youth unemployment is also is not a unique feature of the South African economy. Since 2008, the numbers of unemployed youth has increased throughout the world.

The International Labour Organisation (ILO) reports that there are currently 73.4 million unemployed young people throughout, an increase of 3.5 million since 2007.

This reality is even more unsettling given that our Census 2011 confirmed that 60% of Gauteng’s population is young.

This reality calls for strong and sustainable partnerships to ensure that both the public and the private sectors together tackle these challenges, especially those of unemployment, poverty and inequality.

You must be asking yourselves: How can FNB help us in our endeavors to overcome the poverty, inequality and unemployment?

Well, I want to posit that the decision to revitalize the banking precinct is one of the ways in which you are already lending your zealous helping hands.

This represents your special place in the quest to rejuvenate Johannesburg’s central business district.

This decision is in line with our long-term strategic intent of reviving the central business district of Johannesburg by ensuring that companies maintain their head offices in the city.

Indeed the provincial government has done a lot over the past 10 years to ensure that this vision becomes a reality.

Amongst other things, through the erstwhile Blue IQ Investment Holdings – a multi- billion rand initiative of the provincial government aimed at investing in economic infrastructure development – we invested in the conceptualisation and construction of the iconic Nelson Mandela Bridge.

Our vision in this regard was to link the vibrant Newtown Cultural Precinct with the business area of Braamfontein, providing easy, safe access to the outskirts of the Johannesburg central business district.

Today the Nelson Mandela Bridge is a fantastic vantage point to enjoy views of the city and attracts investment because since it was built, the bridge has hosted many important events from marathons to film shoots.

Indeed the bridge does not only honour the name of our first democratically elected president; the structure itself is symbolic of former President Nelson Mandela’s role in bridging the divide created by Apartheid. A symbol of our past experiences and our future expectations!

As part of our on-going commitment to rejuvenate the inner city of Johannesburg, the provincial government is in the process of developing what is called as the Kopanong Precinct. This is an area in the Johannesburg CBD that will house the central administrative offices of all provincial government departments.

The primary objective of the Kopanong Precinct, amongst others, is to ensure security of occupancy and physically bring together the different line departments, in a cost-effective and efficient manner. A government precinct of this kind will also play a significant role in the revitalization of the Johannesburg city centre, and act as a stimulus for urban regeneration and socio-economic empowerment.

Programme Director,

It is our considered view that by choosing Johannesburg - the melting pot of Africa - as a base for your central offices, FNB is entrenching itself not only as a banking partner to the provincial government but to a growing list of public sector clients in the country including Gauteng Legislature.

It was on that basis that we took a decision to appoint FNB as a provincial government banker after a thorough tendering process with effect from 01 April 2011. This agreement for the provision of centralised banking services is managed by the Gauteng Provincial Treasury on behalf of the provincial government and shall endure the full five-year term ending 31 March 2016.

Throughout history, FNB has distinguished itself as a bank that is not only concerned

3 about the bottom-line, but an institution that espouses the values of good corporate citizenship and societal development.

Let me take this opportunity to recognise the work that FNB is currently doing in our province and the rest of South Africa through corporate social investment initiatives designed to contribute towards improving the living conditions of our people. In addition, let me also applaud the work that FNB is doing in the development of small businesses – a sector that is recognised all over the world as the engine for economic growth and job creation.

We are also delighted that FNB has fixed its eyes on the promising African economy.

African countries occupy a special place in the global economy with some of the fastest booming economies located in this continent.

The Economist, which in the beginning of the millennium dismissed Africa as a “hopeless continent” now, predicts that seven of the top ten fastest growing economies between 2011 and 2015 will be African countries.

This change in fortune is a welcome departure from the pessimism with which Africa was dismissed as a continent of hopeless, poverty, protracted conflict, war and disease.

Your focus on the African continent is by no means misplaced.

It goes to show that we can always count on FNB’s foresight and perceptive business approach to Africa!

Spreading the banks’ wings to other African nations and being the first African bank to operate in India is a sign of the confidence that the bank has on the continent and on the global South!

Ladies and gentlemen,

I sincerely hope that we can use this important occasion to strengthen our partnership and identify new areas of collaboration.

A few of the areas we can explore include, amongst others:

 Research collaboration between FNB, the Department of Economic Development and Gauteng Provincial Treasury;  A partnership between FNB and the Gauteng Department of Education to support the delivery and management of maths, science and technology in our schools;

 Partnership between FNB and the Gauteng City Region Academy to enhance the skills of senior and middle managers to improve efficiency in the public service;

 Development of school infrastructure;

 Building of a Woman’s Monument;

4 Programme Director

Over the years, FNB has successfully projected itself, both in word and in deed, as a bank that is immersed in our national discourse and embedded in the struggles to improve the lives of the poor and place South Africa on the global arena as a nation of victors who have an unmatched tenacity to triumph over adversity and cold winds.

These are among the characteristics of a bank that is cut above the rest. A bank that raises sharp questions; pricks society’s conscience and compels us to take moments to reflects on our journey as a nation.

I implore you to continue working with us to build a better Gauteng and better South Africa.

You are indispensible to our plans to grow the economy of this province, to redistribute the wealth in our country and to create jobs on a massive scale.

I must say that your efforts to keep the city a viable and bustling place are truly commendable and perfectly complement our vision.

We wish all the best as you march forward to another 175 years of existence. May you continue to champion paradigm-shattering innovations, global ambitions and talented management. You have truly come of age.

Congratulations and thank you once more for your vote of confidence on Gauteng, South Africa and the African continent at large!

Pula! Mahlohonolo!