'Show initiative to strengthen partnership'

South African ambassador highlights potential for closer relations with China at Johannesburg summit

South Africa sees the meeting of Chinese and African leaders on Dec 4 and 5 as a chance to further consolidate relations through South-South cooperation, focusing on industrialization and regional economic integration, according to a senior diplomat.

The second summit of the Forum for China-Africa Cooperation is being held in Johannesburg under the theme "Africa-China Progressing Together: Win-Win Cooperation for Common Development".

The summit, which comes as the forum marks its 15th anniversary, is the first held on African soil.

"China is seen as a key partner in the new and emerging Africa," Dolana Msimang, the South African ambassador to Beijing, said in an exclusive interview.

She was confident of major breakthroughs being made at the summit. "There is considerable room for rapid growth in cooperation. It's important we continuously assess and review the opportunities and challenges. Africa is on the move, and it is ready to do business. The continent offers returns that are extremely compelling."

South Africa's strategic position and political influence can drive regional integration, such as developing north-south rail and road links, and expanding ports and energy capacity and skills, she said.

"Africa can only benefit from the relocation of labor-intensive industries from China if it can resolve the basic factors of developing a manufacturing base, which in turn implies financial capital, entrepreneurial skills and links with markets where global buyers can be met.

"The industrialization effort in the continent is dependent on the African countries' ability to attract foreign direct investment. China is strategically positioned to cooperate with Africa to realize its dreams in this regard."

Msimang said African nations must show initiative to ensure a win-win relationship, while governments need to leverage Chinese investment for local development, especially in the transfer of skills, and should encourage involvement by local entrepreneurs in Chinese ventures.

Africa is the next frontier in terms of development, and partnering with China will yield more results if investments create employment in a socially and environmentally sustainable way, she said.

"Indeed the opportunities for achieving tangible results within the FOCAC are plenty, in particular as Africa is positioned to improve its infrastructure, increase its intra-trade and become part of the emerging global drive toward sustainable development. The FOCAC agenda speaks to the vision of a prosperous, united and peaceful Africa, as captured in the African Union's Agenda 2063."

The China-South Africa relationship is a good example of win-win, as despite the economic slowdown in China, South Africa enterprises still view the country as a market with enormous potential, the ambassador said, adding that the government has prioritized improving the current trade structure between the two countries to make it more balanced and encourage trade in manufactured, value-added products.

African enterprises in general are keen to enter the Chinese market, but are constrained by many factors, she said. Despite the expanding relations between Africa and China, only a few countries such as Nigeria, Mauritius, Seychelles and South Africa have had significant success in terms of setting up enterprises and investing in China, as well as diversifying their exports to the country.

"African enterprises do not have sufficient information on China's domestic market and legal environment to effectively support their interests in the world's second-largest economy and thus achieve a truly win-win partnership. We hope this will change."

With government support, South African companies have made significant investments in China, such as Sasol, De Beers, Naspers MIH, Discovery Holdings, SAB Miller, First Rand Bank and Standard Bank. "There is also a significant number of South Africans employed in senior positions at multinationals in China."

Msimang said China is also committed to encouraging its enterprises to increase investment in South African manufacturing and to promote value-adding activities such as agro-processing products, chemicals, automotive and electro-technical products, and machinery.

There are also many other opportunities for South African companies in the Chinese market, she added, such as in movies and tourism.

"Allowing South African-made movies access to Chinese box offices would significantly boost tourism and people-to-people exchanges. You can already buy a selection of South African wines, fruit, corn and tobacco in China, but we're looking to expand the selection. Other products we believe that the Chinese would enjoy include our avocados, lemons, dairy products, baby food, beef, pork and pears.

"China is the world's best tourism market, and South Africa is a tourist haven. We have world-class facilities, beautiful beaches, spectacular scenery, wildlife, excellent weather, blue skies, many cultural and heritage sites, and warm and friendly people."

She said the blue economy is also a new and exciting field for collaboration, as South Africa recognizes the enormous potential for the ocean to contribute to economic growth, job creation and poverty reduction. The country's Operation Phakisa has identified four focus growth areas: marine transport and manufacturing, offshore oil and gas exploration, aquaculture and marine protection services, and ocean governance.

"The full economic potential of the vast marine space remains largely untapped, and we hope to soon conclude a memorandum of understanding with China in this field."

There is also massive potential for cooperation between South Africa and its BRICS partners - Brazil, Russia, India and China - in e-commerce, the ambassador said.

"Africa is considered a relatively late entrant to global e-commerce. But with the continent regarded as the next global growth point, as well as home to a large young population and a growing middle class, e-commerce sales are expected to reach double-digit numbers in the next three years.

"South African retailers, in particular small and medium-sized enterprises, will also require support and assistance to acquire front-end and back-end technology to improve customer satisfaction. This is an area in which Chinese companies can greatly assist, given their global expertise."

Seventeen years on from the establishment of diplomatic ties in 1998, bilateral relations between China and South Africa have witnessed fast, multifaceted and all-around growth. The relationship has advanced significantly at both political and economic levels.

In 2009, China became South Africa's largest trading partner, while South Africa is China's largest trading partner in Africa. Trade between the two reached 262 billion rand ($18.6 billion) last year, while the value of imports from China was 167 billion rand.

President Jacob Zuma and President Xi Jinping oversaw the signing of the Five- to 10-Year Strategic Programme for Cooperation (2014-24) in Beijing in December last year. The plan aims to strengthen bilateral relations and trade cooperation and create sustainable investment opportunities.

lilianxing@chinadaily.com.cn

(China Daily Africa Weekly 12/04/2015 page14)