Mbeki commits to range of logistics investments

ED RICHARDSON PRESIDENT THABO Mbeki has committed his government to a range of investments and institutional changes designed to make it easier to do business in South Africa. Delivering his state of the nation address at the opening of the third democratic parliament of South Africa last Friday, Mbeki said “on infrastructure, we have since May 2004 developed strategies and investment plans upward of R180-billion in relation to transport logistics, electricity and water resources. “Transnet has already approved business plans for new investments in the Durban and Cape Town harbours, as well as the construction of a new pipeline between Durban and Johannesburg. As it brings three previously decommissioned power stations into operation, Eskom will add R5,86 billion to the GDP by 2007, with new jobs created peaking during the same year at 36 000,” he said. Business is expected to do its part. High input costs were, he said, having a detrimental effect on industry. “Discussions continue with the steel and chemical industries in particular to reach agreement on the issue of Import Parity Pricing. Government has decided to avoid using legislation or regulations even in the face of these obvious market failures.” Telecommunications also came under the spotlight. “We believe that the unacceptable situation in which some of our fixed line rates are 10 times those of developed (OECD) countries will soon become a thing of the past. We also hope that the delays in setting up the Second National Operator, arising from legal processes which are beyond government’s control, will be resolved in due course, and as soon as possible,” he said.