Foreword by the Minister of Minerals and Energy
The Government wants to build a better future for all the people of South Africa. More particularly, it wants, rapidly, to improve the quality of life of and open opportunities for development to the previously exploited and dispossessed. These are today the poorest and most underprivileged members of our society.
In the apartheid past these members of our society were systematically denied access to energy, water and other basic necessities of modern life. They even now still spend huge amounts of time each day gathering wood and fetching water. They do not have the time or the opportunity for proper education and personal development. As the first Minister of Energy who truly represents the people of South Africa, I am determined to make a difference to the lives of these people. I want to help them improve their lives. I want to give them access to affordable energy and I call upon all participants in the energy industry to join me in this endeavour.
An important thrust of the forthcoming White Paper on energy policy will be to formulate policies which will make energy more accessible to the previously disadvantaged. Energy is fundamental to growth and development. Once a household has access to energy the door is opened to the development of that household - light to study by, power to earn income with and a release from the time-consuming chore of gathering fuel. Health will also benefit from the use of cleaner burning fuels in the houses.
Sapia members must be congratulated on their efforts to make paraffin widely available and safer to use. We need, however, to work together to make it more affordable. The same applies to LPG, also a fuel suitable for use in the interim before electricity becomes the standard household energy source in all parts of the country. Making biomass more easily available will not be overlooked as an interim measure.
The White Paper will also seek to redefine the State's involvement in, and the Government's role vis a vis, the liquid fuels industry. For this purpose we are currently examining the experience of other countries which have gone through processes similar to ours.
I am firmly of the view that increased competition will be of significant advantage to the consumer. It will also benefit the economy and enhance South Africa's competitiveness in world markets. The process of moving from where we are to where we want to be will be challenging, and I look forward to the debate with all role players. I am pleased that Sapia has indicated that it is willing to move in the direction of greater competition. As a Minister I have so many self seeking pleas put to me that it is refreshing to deal with a role player that is not seeking to entrench the past or seek new favours.
Let me make it clear to all participants in the energy industry that the privileged positions and subsidies of whatever form of the past will not be maintained in my vision of the future. In the past energy policies were aimed at overcoming international sanctions and at underpinning a first world standard of living for the privileged few and granting favoured ones additional benefits. My guiding light will be fairness, reconstruction and development, and caring for the environment. In the long run this will be to the benefit of all.
Efficiency in the use of energy will be encouraged. This will save cost, including valuable foreign exchange, and reduce pressures on the environment.
Even allowing for greater efficiency in the use of energy there will be a growing demand for energy in South Africa that must be met. As the availability of energy to previously disadvantaged communities spreads and is turned into opportunities for growth and development, great increases in demand can be expected. This will require investment.
I call on investors, local and foreign, existing and new, to grasp the opportunities that will be present. This is a time for wise investors to make investments in South Africa. I assure them that good returns will be earned by those who are efficient, but there will no longer be guaranteed profits or subsidies for the inefficient. The White Paper, prepared by transparent processes, will provide the clarity of policy needed to give confidence.
. . . it is refreshing to deal with a role player that is not seeking to entrench the past or seek new favours.
The liquid fuels industry needs to become more representative of the population of South Africa, and I am pleased to read in this Report that Sapia holds the same view. Recent developments in this regard are an encouraging start. The acquisition by a black group of the control of a member of Sapia, and the reported application for membership of Sapia by Naledi Petroleum (Pty) Ltd, suggests that Sapia will become a representative organisation. Much more needs to be done to encourage and develop black participation in the industry and membership of the association.
Building on this I intend to transform the state's assets in the petroleum industry into a major integrated energy company. Through this initiative I plan, amongst other objectives, to redress past social and ownership imbalances in the industry, create jobs and stimulate competition. I also envisage the company taking a leadership role in the energy sector both in South Africa and in terms of the development of a Pan-African energy strategy.
I wish Sapia and its members well. Their contribution to South Africa, as is set out in this Report, is acknowledged. They are making the transition into the democratic South Africa and that will be to the benefit of the country and themselves.
I wish Sapia and its member companies well in the new millennium.