GE AFRICA COMMUNICATIONS

25 June 2013

What Obamas visit means to South Africa

Jay Ireland, President and CEO of GE Africa, examines the significance of President Barack Obamas upcoming visit to South Africa President Barack Obamas upcoming visit to Senegal, Tanzania and South Africa has great significance for Africa and, in particular, for South Africa. Arising out of his policy directive for Africa, it is an opportunity for both government and business to engage with the United States delegation on trade and investment, and to explore the potential for promoting sustainable development. Meetings with representatives from both the public and private sectors are expected to set the stage for improving cooperation between the United States and South Africa, and to explore a new policy framework focused on economic growth, trade, investment, social development and the strengthening of democratic institutions. President Jacob Zuma will welcome President Obama on Friday, and Obama has said that he is looking forward to his trip here, as well as to continuing to build on the already strong partnership with the government and people of South Africa. As one of the largest US companies in Africa, GE also welcomes the Presidents visit. In a rapidly changing global environment, it offers the chance to review key issues and challenges, and to explore initiatives that will not only facilitate economic growth in South Africa, but also reduce inequality and build local capacity. A specific focus during talks is likely to be integrated infrastructure development in South Africa, the SADC region and Africa as a whole. This is essential not only for sustainable growth but also to strengthen global competitiveness, and is therefore high on the economic agenda. US companies, which would like the worlds largest economy to play a more active role in Africa, invest in people, capacity and the development of local supply chains in order to create a solid foundation for a long-term presence on the continent. GE is committed to being a key role player in this process, continuing to partner with governments, state-owned enterprises and the private sector. As one of the worlds five largest infrastructure development companies, we feel we have a key role to play in delivering innovative solutions to Africas infrastructure challenges in mining, aviation, rail transportation, energy, water and healthcare. The creation of reliable infrastructure - particularly good rail links - will promote intraAfrican trade, and improvements in logistics efficiency will support long-term growth.

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25 June 2013

GE Africa is already actively engaged in building infrastructural capacity throughout Africa and, for example, has memorandums of agreement with the governments of Angola, Ghana, Kenya and Nigeria to fast-track development in the power, water, healthcare, rail transportation and mining sectors. Specific initiatives include the planned development of a US$1 billion manufacturing and service facility in Nigeria and the supply of 100 diesel-electric locomotives to Angola. Also in the transportation sector, GE Africa has entered into a joint-venture with the Mine Workers Investment Company, a 100% broad-based black empowerment company, to supply locomotives in South Africa and, in terms of an export alliance agreement with Transnet, to the rest of Africa too. GE is deeply committed to fostering sustainable development in Africa, using advanced infrastructure technologies, services and solutions. This is because we believe in the continent, its people and its potential, and also that the solutions to Africas challenges need to come from Africa. Every partnership we enter into and every project we undertake - from Kenya to South Africa - is guided by this belief. It is for this reason that, at local level, GEs business objectives are strategically aligned to South Africas National Development Plan. Having operated on the African continent for over 100 years, we are able to bring not only innovation, experience and expertise to the table, but an in-depth understanding of local issues and challenges too. We are also able to forge and maintain the long-term partnerships that are critical to national, regional and continental development. As the African Unions Chairperson, Ms Dlamini-Zuma has said, we need to reverse the current storyline of despair (in Africa) into a real narrative of opportunity and potential. Partnerships with foreign investors can contribute significantly to the realisation of this objective, enabling countries throughout Africa to fast-track infrastructure development, the localisation of skills and manufacturing capabilities. This process will include worldclass technological solutions that are tailor-made to address the continents unique challenges, such as inadequate power supply, under-developed rail infrastructure, and poor access to quality and affordable healthcare. From a GE perspective, it also needs to include the development of a strong leadership team led by Africans. Contrary to expectations, African economies have proved to be robust in the face of the global economic crisis, something which is recognised by leading analysts. According to Professor Calestrous Juma of the John F. Kennedy School of Government at Harvard University, this is because domestic growth is not related to global trends. And therein

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lies the real opportunity for Africa to develop new partnerships with the United States; partnerships which can reflect the changing realities of the 21st century.

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References: 1. Expert unpacks Obama visit to SA, 25 June 2013. SABC News: http://www.sabc.co.za/news/a/a84df080401e7a18bf17ff0b5d39e4bb/Expertunpacks-Obama-visit-to-SA-20130625 2. US eyes active trade role in Africa, 24 June 2013. Independent Online: http://www.iol.co.za/business/business-news/us-eyes-active-trade-role-in-africa1.1536290#.Uclmv3T8Lcs 3. Juma, Calestrous (Professor). Africas Economic Growth Prospects, 15 February 2013. Belfer Center for Science and International Affairs, John F. Kennedy School of Government, Harvard University: http://belfercenter.hks.harvard.edu/publication/22766/africas_economic_growth_pros pects.html.