Madame Speaker,

The meltdown of global financial markets has left the world in crisis, with some of the most prosperous countries even facing recession. We, in the developing and emerging economies, have also been harshly affected by this crisis even though we were not directly involved with the dealings which led to this untenable situation. Such is the nature of globalisation.

To say that South Africa is removed from these troubles would be very naïve and uninformed. With our integration into the global economy we are affected by international events and movements in global markets. The volatility of the Rand against the currencies of our major trading partners, as well as the increase and then sharp decline in the prices of the commodities which we export, are just some examples of how connected the global environment is and the effect that it has on people in South Africa.

The gloomy economic state in which we now find ourselves has put a serious damper on our growth targets and will influence our economic and developmental plans, as well as have a detrimental effect on efforts to combat poverty and unemployment. This is worrying considering the slow progress that has been made in combating poverty and creating employment over the years. Innovative plans and strategies are needed if we are to try and limit the suffering that this will have on the poorest members of our society, who will no doubt be the harshest affected by this crisis. We are, however, glad that the Minister of Finance has reassured the South African public that the banking system and financial institutions can weather the current financial crisis.

An interesting feature of the economic turmoil is the development of relationships, and the interactions, between governments and the private sector in trying to overcome this crisis. These relationships are very important and here in South Africa, government, the private sector and labour must interact honestly and closely with each other to ensure that we do overcome this crisis with the least amount of damage.

In conclusion, Madame Speaker, we hope that there will not be any fundamental changes to the ANC's economic policies in the long term as a result of pressure from its alliance partners. Reassurances are needed in this uncertain climate if we are to comfort current investors and to attract new foreign investors.

I thank you.

Contact:

Narend Singh, 083 788 5957