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28.11.2012.

Members, Ladies and Gentlemen, To get a South African German Chamber of Commerce and Industry office established in Durban is the culmination of many efforts over the past 15 years to convince our chamber friends in Johannesburg, that South Africa does not only consist of Johannesburg/Pretoria precinct and Cape Town. It is interesting to note over the years, that majority of important overseas visitors to our country somehow always seem to bypass Durban, although being the second largest industrial hub in the country, and they only tend to come to Gauteng and Cape Town. However, I am glad to see that the efforts of Matthias Boddenberg our CEO and his staff have at last been successful in establishing an office here in conjunction with the Durban Chamber under the able guidance of Yvonne. Germany still being the second largest supplier, of mainly capital goods, to South Africa and Germanys 9th largest export market, makes this office here very necessary, although most of the German companies have their head offices in Gauteng. Matthias to create more interest in the Durban Office I believe that some of the visitors that come to your functions should occasionally be coaxed to Durban. We would not even mid to be included in your German Food tasting function which was held recently.

Seeing our education system is in such turmoil, I would like to propose that the Commercial Advancement Training Scheme (CATS) be reintroduced to Durban. In days gone by our company sent at least 11 young Prospects on this 2 year course and I must say all of these candidates have performed remarkably well over the years and some of them are managers to-day. This one day a week course is based on the German/EU Diploma Standard, which I would like to recommend, we start up again. I would however just like to make one comment regarding the previous speakers. The recently announced New Quota for Work Permits by the Minister of Home Affairs which would open the doors for almost 35 000 applicants is all very well and good but under the present wave of strikes in our various industries, the shooting of miners, the political strife in its various forms, corruption and criminality have been given as reasons by 4 out of 5 recently interviewed technical overseas prospects, by our company, for declining to accept an offer to work in South Africa. Our countries image at the present moment in the EU and else where, is unfortunately rock bottom with no Rainbow in sight. We can only hope that AFTER Mangaung things will settle down and Industrialists can concentrate on modifying the ridiculous new BBBEE legislation being proposed by Government. Certain Countries are already considering sanctions against South Africa, should so called Reverse Apartheid be introduced.

The National Chairman of the Australian Protectionist Party, Andrew Phillips recently called on the Federal Labor Government and the Opposition to reintroduce sanctions on South Africa. We can only hope and pray that our Government will relinquishes its liberation style government and gets round to genuine Democracy and solid economic policies. We will never solve our unemployment of +/40% at a growth rate of 2% p.a. whereas all our neighbors to the north of us are presently growing at a rate of 5 to 7% p.a. Our country certainly has the capacity to become and remain the powerhouse in Africa provided the Government relinquishes its political interference in the private sector, the economy and stops interfering by introducing draconian laws, which will lead to even more unemployment and dissatisfaction. Private sector development is what we need in Africa, its not about big State economies anymore. We have been there in the 70s and seen what it cost the continent. It was staggering. In my opinion the South African private sector is arguably better developed than many other countries in South America and even Asia. We are constantly repairing consequences, instead of fixing the underlying causes and there are 3 very evil triplets in South Africa that remain unaddressed and they are growth, low investment and low trust. There is little doubt that the governments lack of trust in the private sector is the main impediment to real economic growth. Unless this relationship with the private sector

is fixed, there will be no growth of significance with poverty, unemployment and the lack of business confidence, still remaining the order of the day in South Africa. We must ask ourselves when will politicians stop playing games, forget their egos, and look at long term planning rather than our present quick fix policies. I suppose when we look at some of our big brothers government debt ratios to GDP, there is still hope for South Africa. For instance the debt/GDP ratio in countries like Germany, Italy, Britain, France and Spain is between 150 to 185%. Japan believe it or not is at 230% whereas we in South Africa are at a respectable ratio +/- 35%. However a worldwide problem is still no country has ever survived a debt/GDP ratio above 250% without defaulting. The Eurozone mess unfortunately continuous and is getting worse rather than better. France by applying exceptionally foolish policies of fleecing the rich, has put itself in a position that may well prove worse than those of Italy or Spain. In my humble opinion the Eurocrisis is soluble by the weak sisters leaving the Euro or creating a second tier monitory union for the weaker countries but this solution is unacceptable to the EU political elite, so we better all hold tight. Dies kommende Jahr wird bestimmt nicht leicht werden fr Sdafrika und die Weltwirtschaft im Allgemeinen. Die

Auswirkung hiesiger Streikes und Unruhen werden sich erst Anfang nchsten Jahres bemerkbar machen Auf diesem Wege danke ich Ihnen fr das Zuhren. On that happy note I wish the South African German Chamber in Durban much success for the future. I thank you and wish you a happy and peaceful Festive Season.