Contacts
In Pretoria: Mallory Saleson: 082-570-6470, msaleson@worldbank.org
In Washington: Marco Mantovanelli (202)458-7571, mmantovanelli@worldbank.org PRETORIA, November 7, 2006— World Bank Managing Director Dr. Juan José Daboub today concluded a two-day visit to South Africa during which he saw first-hand the country’s accomplishments since the end of apartheid. Dr. Daboub’s program in South Africa included meetings with government officials, the private sector, community leaders, and bilateral and multilateral partners. During his meetings, Dr. Daboub heard that the South African economy is about 80 times the size of the average economy in sub-Saharan Africa. He commented: “South Africa is a powerhouse in the region and continues to demonstrate to other countries how strong macroeconomic policies and a vibrant private sector lead to growth, jobs, and better lives.” In discussing South Africa’s prospects, he noted that the country faces a number of challenges that Africa as a whole is facing. “Increasing access to energy and infrastructure and bringing people who have traditionally been excluded into the job market require an investment climate and regulatory framework that unlocks private sector initiative, particularly among the small businesses that create the most jobs”. Noting that the Government’s key role with respect to the private sector should be to facilitate its activities without impeding competition, he observed that: “there is also an important role for Government in providing public goods, such as education and health care, especially for people suffering from HIV/AIDs.” He added “While government intervention in the economy may make economic sense initially to jumpstart certain activities, the objective must be ultimately to reduce the role of government and let markets take over.” In meetings with the private sector, Dr. Daboub heard how South Africa is a major force for bringing Africa into the global economy, through integrating itself more deeply with the rest of Africa and the world. Noting that South Africa’s foreign direct investment into the rest of Africa had risen sixfold between 1994 and 2004, with an improving trade balance, Dr. Daboub said: “Traveling across Africa on this trip, I have come to appreciate the important stimulus that comes from South African companies investing across the continent in a broad range of sectors, such as banking, mining, energy, agriculture, manufacturing and tourism. This is creating jobs, improving productivity, transferring technology, and fostering entrepreneurship across all of Sub-Saharan Africa.” In Soweto, Dr. Daboub visited several small and medium-sized enterprises and also heard members of the Small Business Executive Council discuss the challenges and opportunities for their businesses. Drawing on his own business experience, Dr. Daboub observed that: “You cannot expect the government to resolve all your problems. You need to take destiny in your own hands and make it happen through hard work”. In his meeting with Minister of Finance Trevor Manuel, Dr. Daboub agreed that regional integration, good governance and capacity-building remain important objectives and require greater attention. “We need to ensure that transparent processes and institutional capacity-building efforts go hand in hand with scaling-up resources for development”, Dr. Daboub said. Summarizing his visit to seven African countries, Dr. Daboub noted “With macroeconomic stability, consistent visionary leadership, and unprecedented debt relief that has already taken place, many African countries now have a unique opportunity to turn the corner and provide a better life to the present and future generations.” South Africa was the final leg of Dr. Daboub’s two-week seven-nation visit to Africa, which also included Senegal, Central African Republic, Uganda, Kenya, Malawi and Mozambique. At a media conference Dr. Daboub said “I have gained great insight from listening to those people who are closest to the problems and we need to support them because they are also closest to the solutions”. “I leave the Continent with greater understanding of these problems and a reconfirmed commitment that Africa is our priority.” Dr. Daboub said. “If the Bank wants to be successful as a global institution we will need to be successful here in Africa” he added. For more information, please visit the following web sites: http://www.worldbank.org Africa region: http://www.worldbank.org/afr South Africa: http://www.worldbank.org/southafrica |
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