SA-China ties set for boost

Chinese President Xi Jinping will this week attend the Forum for China and Africa Co-operation in Johannesburg at which Beijing will announce new measures of co-operation with Africa. Picture: Etienne Laurent

Chinese President Xi Jinping will this week attend the Forum for China and Africa Co-operation in Johannesburg at which Beijing will announce new measures of co-operation with Africa. Picture: Etienne Laurent

Published Dec 1, 2015

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#Focac: Johannesburg - The much-talked-about Africa rising narrative is set to get a boost this week with the Forum for China and Africa Cooperation (Focac) meeting in Johannesburg on Friday.

The event will bring together leaders from the People’s Republic of China and Africa to discuss trade and investment in the continent.

China has emerged as Africa’s leading trading partner with investments totalling billions of rands, particularly in infrastructure, resources and telecommunications. Trade between China and Africa hit $222 billion (R3.2 trillion) last year, up 20-fold from when Focac was launched in 2000.

Chinese Vice-Commerce Minister Qian Keming has described the summit as a milestone in Sino-African ties and trade co-operation.

Qian said the forum would help boost trade and investment in the continent.

“China has provided African countries with loans worth over $20bn since 2012 to support infrastructure, investment, small and medium-sized enterprises, agriculture and manufacturing,” said Qian.

“The Chinese government has rolled out about 900 assistance programmes in Africa covering agriculture, health, education and other fields and offered training to over 30 000 local people since 2012.”

Focac is to be preceded by the state visit by President Xi Jinping to Zimbabwe from today before proceeding to South Africa on Thursday.

Qian said China wanted to increase investment in Africa and buy more non-resources products from the continent.

He said China would diversify imports and buy more products in addition to commodities, which accounted for the bulk of its trade with the continent.

“China will export advanced industrial production capacity to African countries,” Qian told a news briefing.

He said China had deliberated for a year on the “package of co-operation proposals”, which was based on helping the continent to upgrade its industry, safeguard food security and build infrastructure.

“To that end, China will give African countries more low-interest loans and set up funds to finance the co-operation,” said Qian.

There are more than 3 000 Chinese companies doing business in Africa.

According to a recent World Bank report, sub-Saharan region has maintained robust economic growth through its economic ties with China.

Last week Chinese Foreign Minister Wang Yi said the country would announce new measures to promote its comprehensive co-operation with Africa at the summit.

Industrialisation

Wang said China would help Africa speed up industrialisation, food security and public health and prevention system, of which Africa is in great need.

Last week, Chinese ambassador to South Africa Tian Xuejun said this week’s summit would synergise China and Africa’s respective development strategies.

Tian said China and Africa were at a crucial stage of development and had formulated ambitious development strategies.

“During the summit, China will announce new measures of co-operation with Africa for the next three years, which is both a tradition and a defining feature of Focac,” said Tian.

“China will continue to make an important contribution to Africa’s economic growth. In the next five years, it is estimated that China will import commodities worth $10 trillion from Africa. At the same time, China is actively conducting production capacity co-operation with African countries to boost local manufacturing industry.”

Among the recipients of the major agreements with China will be power utility Eskom, which is expected to sign a co-operation agreement with the China Development Bank this week as China extends its trade and investment profile on the continent.

While the details of the agreement have been kept under wraps, it is expected to be part of China’s continuing investment foray into Africa’s infrastructure development, small and medium enterprises, agriculture and manufacturing.

South Africa ranks second in China’s mining investment on the continent.

Two years ago the Jinchuan Group and the China-Africa Development Fund made a $227 million acquisition of a 45 percent stake in Wesizwe Platinum, a junior company in the preliminary stages of establishing a platinum mine, and Sibanye Gold.

Other major Chinese companies in South Africa include Zhong Xing Communications and Huawei Technologies.

“The Chinese are very clear on their investment plans in Africa and South Africa, with its massive development programmes fit the profile perfectly,” said a Johannesburg-based economist who did not want to be named.

“The only slight worry is that trade relations are still skewed in favour of China.”

* Additional reporting by Xinhua

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