State of the Nation Address by Jacob G Zuma, President of the

Republic of South Africa on the occasion of the Joint Sitting of

Parliament

Cape Town,

9 February 2017

The Speaker of the National Assembly,

The Chairperson of the National Council of Provinces;

Deputy Speaker of the National Assembly and Deputy Chairperson of the NCOP,
Deputy President Cyril Ramaphosa,

Former President Thabo Mbeki, Chief Justice Mogoeng Mogoeng and all esteemed
members of the judiciary,

Ministers and Deputy Ministers,

Premiers and Speakers of Provincial Legislatures,
Chairperson of SALGA,
The Heads of Chapter 9 Institutions,
Chairperson of the National House of Traditional Leaders,

The President of the Muslim Judicial Council and all Leaders of faith based
organisations,

The former Speaker of the National Assembly, Dr Frene Ginwala,

Veterans of the struggle for liberation,

Members of the diplomatic corps,

Fellow South Africans,

Good evening, sanibonani, molweni, dumelang, goeie naand, lotshani, riperile,

ndimadekwana,

Thank you Madam Speaker and Madam Chairperson for this opportunity to address the
joint sitting of Parliament.

An illustrious son of our country, President Oliver Reginald Tambo, would have turned
100 years old this year, had he lived.
This selfless patriot his adult life to a tireless pursuit of the liberation of our country and
its people. He left a lasting legacy for all South Africans, and not only for his
organisation, the ANC.

In his honour, we have declared the year 2017, the Year of Oliver Reginald Tambo. It is
the year of unity in action by all South Africans as we move South Africa forward
together.

We have the pleasure to host members of the Tambo family this evening, Mr Dali Tambo
with his wife Rachel, and their son Oliver Tambo Junior.

We also fondly remember Mama Africa, Miriam Makeba, who made history when she
addressed the United Nations in 1963, appealing for action against the apartheid
regime.

We extend a warm welcome to her grand-daughter Zenzile Makeba Lee and great-
grandson Lindelani.

Compatriots,

In this 23rd year of our freedom, our mission remains the quest for a united, democratic,
non-sexist, non-racial and prosperous South Africa.
Guided by the National Development Plan, we are building a South Africa that must be
free from poverty, inequality and unemployment.

While the global economic environment remains uncertain, indications are that we have
entered a period of recovery. We anticipate an economic growth rate of 1.3 per cent in
2017 following an estimated 0.5 per cent in 2016.

However, the economy is still not growing fast enough to create the jobs we need.
There are some of our people, including youth, who have not worked for years.

It is for this reason that we decided to focus on a few key areas packaged as the Nine
Point Plan to reignite growth so that the economy can create much-needed jobs.

The focus areas include industrialisation, mining and beneficiation, Agriculture and agro
Processing, energy, SMMEs, managing work place conflict, attracting investments,
growing the oceans economy and tourism.

We also added cross-cutting areas such as science and technology; Water and
sanitation Infrastructure; Transport Infrastructure; and Broadband Rollout.

I would like to provide a report back on the work done in some of these areas in the past
year.

The interaction that we started last year between government, business and labour,
known as the CEO Initiative, has been most helpful. We were able to address some
domestic challenges together.
We successfully avoided credit ratings downgrades which would have had significant
impact on our economy.

Our labour market environment is also showing signs of stability, due to cooperation by
social partners. The manner in which parties conducted and carried themselves during
the wage negotiations in the platinum sector in particular, must be applauded.

Unity in action was also demonstrated again this week with the conclusion of the
agreement on the National Minimum Wage and on measures to stabilise labour
relations.

This follows a call I had made in the State of the Nation Address on 14 June 2014.

We congratulate the Deputy President and the team at NEDLAC for this milestone and
wish them well for work that still needs to be done.

Compatriots,

The extension of basic services to the people continued in the past year as we pursued
a better life for all. To date nearly 7 million households have been connected to the grid
and now have electricity.

The successful execution of the Eskoms build and maintenance programmes helped
ensure stability and an end to load-shedding.
Work is continuing to ensure energy security. Renewable energy forms an important
part of our energy mix, which also includes electricity generation from gas, nuclear,
solar, wind, hydro and coal.

Government is committed to the overall Independent Power Producers Programme and

we are expanding the programme to other sources of energy including coal and gas, in
addition to renewable energy.

Eskom will sign the outstanding power purchase agreements for renewable energy in
line with the procured rounds.

Government is working hard to ensure reliable bulk water supply in the various areas of
the country to support economic growth whilst increasing access to vulnerable and rural
municipalities.

In an effort to curb the high water losses which in some municipalities far exceeds the
national average which is currently at 37%; about ten thousand unemployed youth are
being trained as plumbers, artisans and water agents. More will be recruited this year to
reach the total of fifteen thousand.

We call upon municipalities to support the War on Leaks programme.

We continue to build modern schools replacing mud structures and other inappropriate
buildings through the Accelerated Schools Infrastructure delivery Initiative, (ASIDI). This
gives our children dignity.

A total of one hundred and seventy three inappropriate structures have been eradicated
since 2011. In total, 895 new schools now provide a conducive learning environment for
our children.

On Investment promotion, Government has established InvestSA, an investment One

Stop Shop nationally and will open provincial centres in KwaZulu-Natal, Gauteng and
the Western Cape. The message is clear to the affected government departments.
There must be no undue delays and no unnecessary red tape. From issuing licences to
visas, we should make it easy to do business in South Africa.

Compatriots

President OR Tambo was a maths and science teacher. Government will thus prioritise
maths and science more than ever before this year, in his memory.

We are encouraged by recent international test results.

The results in the Trends in International Mathematics and Science Study and the
Southern and East African Consortium for Monitoring Educational Quality show that the
performance of South African learners is improving.

Amongst the participating countries, South Africa has shown the largest improvement of
87 points in Mathematics and 90 points in Science.

This is very encouraging as we dont want our children to be left behind.

Our investment in science and technology is yielding results.

Since South Africa, supported by its eight African partners, won the bid to host the
Square Kilometre Array telescope, significant progress has been made in building this
mega science project and reaping its benefits.

Together with its precursor, the MeerKAT telescope, the SKA project continues to make
important contributions to socio-economic development in South Africa.

Working closely with the industry, the Department of Science and Technology is
implementing a technology localization strategy. This has ensured that the two billion
rand MeerKAT telescope is constructed with seventy five percent local content.

This has led to job creation in the Northern Cape and diversification of the economy
through the creation of artisan and maintenance jobs, and the promotion of science as a
career of choice.
On road infrastructure, Sanral has started with the planning phase of the 4.5 billion rand
project to upgrade the current Moloto road.

Sakha umgwaqo kanye nololiwe ku Moloto Road ukuze kuphephe izimpilo zabantu
ngoba izingozi sezithathe imiphefumulo eminingi kuleyandawo.

During 2016, South Africa also signed a co-operation agreement with the Peoples
Republic of China to build the Moloto Rail Development Corridor.

In 2014 we launched the operation Phakisa Big Fast results methodology in the ocean
economy, health, education and mining sectors. The purpose was to find a few key
projects where we could unlock growth in implementing the NDP.

All projects are proceeding well.

The South African Navy also participates in the Phakisa project and is preparing to host
the government garage concept for all state-owned vessels in Simons Town, including
the maintenance and repair of government-owned vessels, through the newly
established South African Navy/ARMSCOR/Denel partnership.
We had identified tourism as a key job driver. We are thus pleased that our tourist arrival
numbers for the period January to November 2016 increased to nine million, an
increase of just over one million arrivals from 2015. This represents a thirteen percent
growth in tourist arrivals.

Government runs effective poverty alleviation programmes such as the Expanded

Public Works Programme. In addition, social grants now reach close to 17 million
people, mainly older persons and children. Many families would not be able to put food
on the table if it were not for social grants.

The Expanded Public Works Programme has since 2014, created more than two million
work opportunities towards the attainment of the target of six million work opportunities
by the end of March 2019. Of the work opportunities created, more than one million
have been taken up by the youth.

During 2015/2016, more than sixty one thousand work opportunities were created
through the Environmental Programmes such as Working for Water, Working for
Wetlands, Working on Fire and Working for Ecosystems. More than 60% of the
beneficiaries were young people.

Government working with society is fighting social ills that are tearing communities apart
such as drugs and substance abuse. From Soshanguve to Rosettenville or KwaMashu
to the Cape Flats, communities are in difficulty because of the drugs.
Other than law enforcement, the provision of treatment and prevention services is also
critical.

The Department of Social Development is building new public treatment centres in

provinces where there are no such facilities, in the Northern Cape, North West,
Limpopo, Free State and the Eastern Cape.

Working together we will save our youth from drugs.

On health matters, the National Health Insurance is our flagship project that is aimed at
moving South Africa towards Universal Health Coverage.

The NHI will be implemented in a 14 year period in three phases.

We are in the midst of the first phase which is the preparatory phase, which started in
2012.

Compatriots

We are deeply distressed by the death of so many psychiatric patients in Gauteng.

Mentally ill patients are some of the most vulnerable members of society, who need
protection from the state itself and society as a whole. I have instructed the Minister of
Health to ensure that the Health Ombudspersons recommendations are wholly and
speedily implemented without any reservations.
We welcome the recommendation of the Health Ombudsperson that there is an urgent
need to review the National Health Act 2003 and the Mental Health Act 2002 with a view
that certain powers and functions revert back to the National Minister of Health.

Once more, we extend our heartfelt condolences to all families and relatives of
the deceased.

Government will provide support so that families do not face this burden alone. The
Premier of Gauteng and the Minister of Health have already provided this assurance.

A lot more work has been done in the past year in implementing the Nine Point Plan and
all our programmes. Ministers will report further on the programmes during the budget
votes.

Honourable Members,

I would now like to speak on our priorities for the year ahead.

Political freedom alone is incomplete without economic emancipation.

Oliver Tambo spoke clearly about this mission at an SACP anniversary meeting in
London in 1981.

He said:
The objective of our struggle in South Africa, as set out in the Freedom Charter,
encompasses economic emancipation. It is inconceivable for liberation to have meaning
without a return of the wealth of the country to the people as a whole.

To allow the existing economic forces to retain their interests intact is to feed the roots
of racial supremacy and exploitation, and does not represent even the shadow of
liberation.

It is therefore a fundamental feature of our strategy that victory must embrace more
than formal political democracy; and our drive towards national emancipation must
include economic emancipation.

What do we mean by radical socio-economic transformation?

We mean fundamental change in the structure, systems, institutions and patterns of

ownership, management and control of the economy in favour of all South Africans,
especially the poor, the majority of whom are African and female, as defined by the
governing party which makes policy for the democratic government.

Twenty two years into our freedom and democracy, the majority of black people are still
economically disempowered. They are dissatisfied with the economic gains from liberation.

The gap between the annual average household incomes of African-headed households
and their white counterparts remains shockingly huge.

White households earn at least five times more than black households, according to
Statistics SA.
The situation with regards to the ownership of the economy also mirrors that of
household incomes.

Only ten percent of the top one hundred companies on the Johannesburg Stock Exchange are
owned by black South Africans, directly-achieved principally, through the black empowerment
codes, according to the National Empowerment Fund.

The pace of transformation in the workplace, the implementation of affirmative action

policies as required by the Employment Equity Act, also remains very slow.

In terms of the 2015/16 information submitted to the Employment Equity Commission,

the representation of whites at top management level amounted to 72 percent whilst
African representation was at 10 percent.

The representation of Coloureds stood at 4.5% and Indians 8.7%.

The report further provides that white South Africans, in particular males, are afforded
higher levels of recruitment, promotion and training opportunities as compared, to the
designated groups.

At the level of gender at senior management level, males remain dominant at 67.6%
and females at 32.4% percent.
The skewed nature of ownership and leadership patterns needs to be corrected. There
can be no sustainability in any economy if the majority is excluded in this manner. In my
discussions with the business community, they accepted these transformation
imperatives.

Today we are starting a new chapter of radical socio-economic transformation. We are

saying that we should move beyond words, to practical programmes.

The state will play a role in the economy to drive that transformation. In this regard,
Government will utilise to the maximum, the strategic levers that are available to the
state.

This includes legislation, regulations, licensing, budget and procurement as well as

Broad-based Black Economic Empowerment Charters to influence the behaviour of the
private sector and drive transformation.

The State spends five hundred billion rand a year buying goods and services. Added to
this is the nine hundred billion rand infrastructure budget. Those budgets must be used
to achieve economic transformation.

As a start, the new regulations making it compulsory for big contractors to subcontract
30 percent of business to black owned enterprises have been finalised and were
gazetted on the 20th of January.
Through such regulations and programmes, government will be able to use the state
buying power to empower small enterprises, rural and township enterprises, designated
groups and to promote local industrial development.

Two key challenges we face is the high levels of concentration in the economy as well
as the collusion and cartels, which squeeze out small players and hamper the entry of
young entrepreneurs and black industrialists.

The competition authorities have done excellent work to uncover the cartels and punish
them for breaking the law.

Last year I signed into law a provision to criminalize the cartels and collusion and it
came into effect on 1 May. It carries jail sentences of up to 10 years.

We are now stepping up our actions to deal with the other challenge, namely economic
concentration, where a small grouping controls most of a market.

During this year, the Department of Economic Development will bring legislation to
Cabinet that will seek to amend the Competition Act. It will among others address the
need to have a more inclusive economy and to de-concentrate the high levels of
ownership and control we see in many sectors. We will then table the legislation for
consideration by parliament.

In this way, we seek to open up the economy to new players, give black South Africans
opportunities in the economy and indeed help to make the economy more dynamic,
competitive and inclusive. This is our vision of radical economic transformation.

Compatriots,
Government is actively involved in the property sector, having provided more than four
million houses since 1994.

This sector in our country is valued at approximately seven trillion rand, with the
subsidised sector being valued at one point five trillion rand.

However, less than five percent of the sector is owned or managed by Black people and
Africans in particular. A draft Property Practitioners Bill will be published by the
Department of Human Settlements for public comment with the purpose of establishing
a more inclusive, representative sector, towards radical economic transformation.

Among key priorities this year, Government will also address the increasing delays and backlogs
in registration and issuing of title deeds to beneficiaries of housing projects funded by the capital
subsidy.

Compatriots,

We reiterate that radical economic transformation should mean moving beyond share
ownership schemes only.

We would like to see black people involved directly in business, owning factories. The
development of the Black Industrialists programme is thus critical.

The programme has from inception supported more than 22 entrepreneurs.

Government has further opportunities in the property maintenance projects of the
Department of Public Works.

The Department will invest approximately one hundred million rand this year on critical
capital and maintenance programmes to modernise harbours. They will also continue
generating revenue from letting state owned harbours and coastline properties, which
will benefit black owned SMMEs.

Government will also continue to pursue policies that seek to broaden the participation
of black people and SMMEs, including those owned by women and the youth, in the
Information and Communication Technologies (ICT) sector.

We assure the youth that the lowering of the cost of data is uppermost in our policies
and plans.

Compatriots,

Mining has always been the backbone of our economy and an important foreign
exchange earner.

We welcome the recovery in commodity prices which has resulted in an upswing in

mining output. This augurs well for the industry.
The Mining Charter is currently being reviewed. The Charter seeks to recognise the
internationally accepted right of the state to exercise sovereignty over all the mineral
and petroleum resources within the Republic.

It is also aimed at helping the country to de-racialise the ownership of the mining
industry. This will help ensure the sustainability of this industry.

We trust that discussions between government and business on the Charter will yield
results so that the process can be finalised.

We will continue to pursue direct state involvement in mining. The Mining Company of
South Africa Bill will be presented to Cabinet and Parliament during the year.

The Minerals and Petroleum Resources Development Amendment Bill was sent back to
Parliament so that issues relating to the public consultation process undertaken by
Provincial legislatures can be addressed.

We trust that it shall be processed and returned for finalization without much delay so
that the concerns relating to uncertainty raised by business can be resolved.

Government continues to work with other stakeholders to combat illegal mining to save
lives and to prevent the trafficking of precious metals and diamonds.
We also continue to place great emphasis on the health and safety of mineworkers
which is so crucial to the sustainability of the mining sector. Working with the mining
companies we can ensure that lives are protected at all times.

The tragic accident that occurred at Lily Mine outside in Mpumalanga earlier in 2015 is
the first of its kind that we have experienced since the dawn of democracy.

The families are going through immense pain and frustration.

Compatriots,

It will be difficult if not impossible, to achieve true reconciliation until the land question is
resolved.

Only eight million hectares of arable land have been transferred to black people, which
is only 9.8 percent of the 82 million hectares of arable land in South Africa.

There has also been a 19 percent decline in households involved in agriculture from
2,9million in 2011 to 2,3 million households in 2016.

We had stated our intention of using the Expropriation Act to pursue land reform and
land redistribution, in line with the Constitution. I have now decided to refer the Bill back
to Parliament for reconsideration on the basis that the Bill might not pass constitutional
master. This is due to inadequate public participation during its processing.

We trust that Parliament will be able to move with speed in meeting the requirements so
that the law can be finalised to effect transformation.

The reopening of land claims is also still on hold because the Restitution of Land Rights
Amendment Act, 2014 was declared invalid by the Constitutional Court.

The Constitutional Court found that the public consultation process facilitated by the
National Council of Provinces and some Provincial Legislatures, did not meet the
standard set in the Constitution.

Going forward, government will continue to implement other programmes such as the
Strengthening of Relatives Rights programme, also known as the 50-50 programme.

In this programme, the farm workers join together into a legal entity and together with
the farm owner a new company is established and the workers and the owner become
joint owners.

To date 13 proposals have already been approved benefiting 921 farm dweller
households at a value of R631 million. We applaud farmers and farm workers for this
innovation.

Most importantly, we appeal to land claimants to accept land instead of financial

compensation. Over 90% of claims are currently settled through financial compensation
which does not help the process at all. It perpetuates dispossession. It also undermines
economic empowerment.
Government has committed itself to support black smallholder farmers.

I received a memorandum from the African Farmers Association of South Africa who say
the year 2017 must be the year of the commercialisation of the black small holder
farmers.

Indeed, Government will implement a commercialisation support programme for 450

black smallholder farmers.

We encourage more women to consider farming. I have as a special guest today, the
2016 Female Farmer of the Year, Ms Vanecia Janse from Koukamma municipality in the
Eastern Cape.

Compatriots,

Our farmers went through a difficult period last year because of the drought.

To date, an estimated amount of 2.5 billion rand was made available for the provision of
livestock feed, water infrastructure, drilling, equipping and refurbishment of boreholes,
auction sales and other interventions.

Furthermore, the Industrial Development Corporation and the Land Bank availed
funding of about five hundred million rand to distressed farmers to manage their credit
facilities and support with soft loans.

Compatriots,

President OR Tambo was a champion of womens rights.

We will continue to mainstream the empowerment of women in all government
programmes.

Government will continue to prioritise womens access to economic opportunities and, in

particular, to business financing and credit.

This is the freedom that heroines of the struggle such as the late Dora Tamana of
Gugulethu here in Cape Town fought for. I am pleased to have her son Mongezi Tamana
as a guest today.

Compatriots,

In December 2015 university students voiced their concerns about the cost of higher
education.

They correctly pointed out that accumulated debt and fast rising fees were making it
harder and harder for those who come from less-privileged households to enter and
stay within the education system until they complete their studies.

It is for this reason that when university students expressed genuine concerns about
being excluded from universities, our caring government responded appropriately by
taking over the responsibility to pay the fee increase for the 2016 academic year.

Government also settled all debt owed by NSFAS students and extended the coverage
to larger numbers of students than ever before.
At the time of tabling the 2016 Medium Term Budget Policy Statement, our government
announced additional measures aimed at making higher education accessible to more
students from working class families.

Government has provided funds to ensure that no student whose combined family
income is up to six hundred thousand rand per annum will face fee increases at
universities and TVET colleges for 2017.

All students who qualify for NSFAS and who have been accepted by universities and
TVET colleges will be funded. The university debt of NSFAS qualifying students for
2013, 2014 and 2015 academic years has been addressed. In total, government has
reprioritised thirty two billion rand within government baselines to support higher
education.

We are ensuring that our deserving students can study without fearing that past debts
will prevent them from finishing their studies.

In the remaining years of this administration, our policies will respond directly to the
following concerns that the students have placed firmly on the table:

Firstly, the students have expressed concern that the NSFAS threshold of one hundred
and twenty two thousand rand is too low. We will have to look into this matter with the
view to raising the threshold on a phased basis in the period ahead.
Secondly, the students have pointed out that the full cost of study at some universities is
higher than the subsidy that NSFAS provides.

As a result, NSFAS students who study at some universities that charge higher fees end
up accumulating debt. Our government-initiated processes are already looking at this
issue too.

Honourable Members and Fellow South Africans, students and their parents should
understand that the needs for services like water, sanitation, early childhood
development and good public transport have to also be addressed, alongside access to
quality higher education and training.

But our commitment to finding sustainable solutions to the funding of the social wage in
general, and education, in particular, is unwavering.

As the processes that we have set in motion draw to a close, such as the Heher
Commission, the Ministerial Task Team, broader engagements with students, university
and TVETS leadership and civil society, we will find resources to give expression to our
policies.

I invite all stakeholders to participate in the processes that are under way so that no
view is not heard.

No great idea should be excluded. As soon as the broadest sections of our society
agree on what to do, our government will take steps to reprioritise resources to
implement it on a phased basis.
Let us engage to identify the most pressing needs, and allocate our limited resources
accordingly. Let us build our self-reliance and move forward in the spirit of unity.

Compatriots,

The fight against crime is an apex priority. The police will increase visible policing,
building on the successful pattern of deployments utilised during the Safer Festive
Season Campaign.

They will also utilise certain specialized capabilities, such as the Tactical Response
Teams and National Intervention Units, to assist in addressing problematic high-crime
areas.

We received a message from Soshanguve last week that crime is rife in Block L and
that hijackings and robberies are high. It is such communities that need to build stronger
partnerships with the police to ensure that criminals do not prey on residents.

Other measures to fight crime nationally will include the establishment of Specialised
Units, focusing on drug-related crime, taxi violence and firearms and the enhanced
utilisation of investigative aids such as forensic leads.

The Police will also enhance the utilisation of the DNA Database in the identification of
suspects.

We urge the public to work with the police to ensure safer communities.
Compatriots

We welcome the decline in Rhino poaching incidents since October 2015 which is for
the first time in a decade. This arises from intensive joint operations by law enforcement
agencies.

Compatriots,

One of the strategies of fighting crime is to ensure that those who are released from
prison do not commit crime again.

The Department of Correctional Services continues to work hard to turn prisons into
correctional centres through offering various services. As a result, compliance levels
with parole and probation conditions have improved to reach a historic mark of 98
percent.

The country has also made good progress in reducing the numbers of children in
correctional centres.

Compatriots,

The promotion of access to justice was given added meaning last year when the High
Court Division in Limpopo was opened in November.
The Mpumalanga High Court will be completed during this financial year. The coming
into operation of these two high courts means that we have now realised the goal of a
High Court in every province of the country.

Compatriots

The fight against corruption continues. Within the National Prosecuting Authority, the
Asset Forfeiture Unit completed three hundred and eighty nine forfeiture cases to the
value of three hundred and forty nine million rand.

They obtained three hundred and twenty six freezing orders to the value of seven
hundred and seventy nine million rand.

A total of 13 million rand was recovered in cases where government officials were
involved in corruption and other related offences in the past year.

Compatriots

Oliver Tambo set the tone for the countrys foreign policy as early as 1977 when
addressing the first Congress of the Angolan ruling party MPLA that:

We seek to live in peace with our neighbours and the peoples of the world in conditions
of equality, mutual respect and equal advantage.
South Africa is honoured to chair the Southern African Development Community
(SADC) starting from August 2017. We will utilise our tenure to fast-track the
implementation of the SADC Industrial Strategy.

We are accelerating the integration agenda through the implementation of SADC-

COMESA-East African Community Free Trade Area.

We will continue with our involvement in our mediation efforts, peacekeeping

operations, and peace-making initiatives in Lesotho, Democratic Republic of Congo,
Burundi, Mozambique, South Sudan, Somalia and Libya. The SANDF represents the
country well in the peacekeeping missions.

Furthermore, trade with our traditional partners in the west remains a significant
contributor to our economy.

We will continue to partner with the United States and work together on issues of mutual
interest such as the full renewal of AGOA.

We value our relationship with the Peoples Republic of China. China is one of South
Africa's most important and key strategic partners. We recognise the PRC 'as the sole
Government and Authority representing the whole of China'.

South Africa reiterates its position and commitment to the 'One China Policy' and we
consider Taiwan as an integral part of the PRC.
At continental partnership level, the Joint Africa-EU Strategy remains an important long-
term framework for continued cooperation.

The Economic Partnership agreement with the EU came into force in September 2016
thus providing new market access opportunities for South African products.

Almost all South African products, about 99% will have preferential market access in the
EU.

About 96% of the products will enter the EU market without being subjected to customs
duties or quantitative restrictions.

The Southern African Customs Union Mercosur Preferential Trade Agreement has also
entered into force, providing preferential access to over one thousand tariff lines. This is
an agreement that promotes South-South trade.

Our cooperative partnerships with other regions are bearing fruits. The BRICS New
Development Bank has recorded encouraging progress.

We welcome the Goa BRICS Heads of State and Government decision to establish the
BRICS Rating Agency so that we can assist each other in assessing our economic
paths.
We are also pleased with agreements with our BRICS partners in the field of agriculture.
We will implement off take agreements on the export of pulses, mangos and pork to
India.

We will also export twenty thousand tons of beef to China per year for a period of 10
years.

We will continue to pursue the reform of the international system because the current
configuration undermines the ability of developing countries to contribute and benefit
meaningfully.

This year marks the 50th anniversary of the occupation of Palestine.

The expansion of Israeli settlements undermines global efforts aimed at realising the
two state solution and the Oslo accord. We wish to reiterate our support for the
Palestinian course.

Similarly, we hope that the readmission of Morocco to the AU should serve as a catalyst
to resolve the Western Sahara issue.

Let me add that South Africa will use Armed Forces Day on 21 February, 2017, to mark
the Centenary commemorations of the tragic sinking of the SS Mendi which left 646
soldiers dead in 1917.

Compatriots
The Constitution accords equal rights and dignity to all South Africans. The United
Nations proclaimed 13 June as International Albinism Awareness Day. We should use
this day to raise awareness and eliminate the discrimination or harm that compatriots
with albinism are subjected to in some areas.

Siyagcizelela ukuthi abantu abanebala elimhlophe bangabantu, bafana nabo bonke

abantu ezweni. Akuphele ukubahlukumeza. Aziphele nezinkolelo ezingekho ngabo.

I have the pleasure to introduce Ms Nomasonto Mazibuko the executive director of the
Albinism Society of South Africa, one of my special guests.

The sports fraternity tragically lost one of its favourite sons, Joost van der Westhuizen
earlier this week. The music industry has lost popular gospel musicians recently Sifiso
Ncwane and Lundi Tyamarha as well as maskanda musician Nganeziyamfisa.

We extend our condolences on the loss of these public figures who have contributed to
the countrys sports and arts.

Compatriots,

Let us unite in driving radical economic transformation for the good of our country.

In the words of President Tambo;

Working together as fellow South Africans, we have it within our power to transform
this country into the land of plenty for all, where the nightmare of apartheid will just be a
faint memory of the past.
I thank you.

Issued by The Presidency

Cape Town

www.thepresidency.gov.za