Addressing more than 400 delegates attending the third session of the World Industrial and Commercial Organisations Forum earlier today in Beijing, BUSA CEO Jerry Vilakazi said the new partnership should be premised on the strengths and experiences of South African companies in the continent.
“We need a new partnership between our two economies, one that recognises the potential and benefits for local beneficiation in South Africa. A partnership that sees investments in infrastructure development in Africa as a vehicle for development and essential foundation for enhanced future trade and economic cooperation. South Africa is already active in this area in the rest of the continent,” says Vilakazi.
The World Industrial and Commercial Organisations Forum is hosted by the China Federation of Industrial Economics, United Nations Industrial Development Organisation (UNIDO) and World Intellectual Property Organisation (WIPO) and seeks to promote economic cooperation between countries of the world and China. The theme for this year is Communication, Cooperation and Win-win. It is attended by business leaders from all major economies of the world with only South Africa participating from the continent.
Vilakazi assured Chinese investors and business leaders of political and economic stability in South Africa. “We remain very confident of the political and economic stability of our country. The new leadership of the ANC under Mr Zuma has more than assured us of their commitment to economic policy continuity. We expect the new government to do better than its predecessor and to continue working in partnership with the private sector to address poverty, inequality and unemployment,” says Vilakazi.
After the US, China is now firmly the second largest single-country trading partner of Africa. This year two-way trade between Africa and China is expected to reach well over US$117bn, an increase of 60% over the total of US$73bn recorded in 2007 and in excess of the US$100bn target for 2010 which was set up by the African and Chinese leaders during the Beijing Summit and the Third Ministerial Conference of the Forum on China - Africa Cooperation in November 2006. Some 22% of China's exports to Africa go to South Africa - the next country imports half this figure. While Angola tops the list of African exports to China at 37%, South Africa boasts the second highest exports to China at 14%. However, African exports to China are dominated by oil and mineral products. SA is a potential hub for future beneficiation and value add in the continent. BUSA believes the time is opportune for Chinese companies to partner with South African companies through joint ventures and strategic investments in Africa.
In his address Vilakazi noted that besides the ICBC-Standard Bank deal Chinese investments in South Africa have been very limited while South African investments in China have grown over US$800m.
During the past two years, the Export/Import Bank of China which has representatives in South Africa has made loans totalling US$2.5bn in Zambia and Angola.
Welcoming the decision taken by leaders of the Southern African Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC) to form a single free trade area that would span from Cape to Cairo, Vilakazi noted that the 26 member countries of the three trade groups had a combined population of 527 million and total gross domestic product of US$624bn (R7 trillion), making a strong case for renewed partnership in trade and investment between China and South Africa.
