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President Cyril Ramaphosa noted on Monday that relations between South Africa and China has entered “a new era of opportunity”, following his visit to China, which he said has strengthened trade and investment ties and cemented shared commitment to economy growth and job creation for the advancement of citizens in both countries.
Last week, Ramaphosa and some Cabinet Ministers attended the summit of the Forum on China-Africa Cooperation (Focac) in Beijing, which brought together heads of State and government from across the continent.
The summit was preceded by the President’s second State visit to China where he was hosted by Chinese President Xi Jinping.
Ramaphosa said government was encouraged at the potential for greater cooperation, investment and trade between South Africa and China with emphasis on low-carbon, climate-resilient economic growth.
He revealed there was significant interest from Chinese private commercial firms, State-owned enterprises and banks to invest in South Africa’s infrastructure build programme.
This, he said aligned with the South African government’s plans to modernise the country’s infrastructure by investing in the expansion of ports, rail and road networks.
“Investment does not only flow in one direction. I also met with South African companies operating in China. They have found that South African and Chinese companies can complement each other well and have both benefited from an exchange of expertise and technology,” he said.
He added that the value of such cooperation extended beyond the two countries.
Ramaphosa pointed out that during his State visit, China and South Africa agreed to upgrade their relationship to an “All-Round Strategic Cooperative Partnership in a New Era”.
At a time when African economies were growing closer together, China’s technological capabilities could support Africa’s industrialisation and enable the continent to export more than just raw commodities, he emphasised.
Ramaphosa pointed out that the African Continental Free Trade Area (AfCFTA), which will provide access to a market of over 1.3-billion people, provided an even greater incentive for investment by China and other countries in Africa’s manufacturing capacity.
“This was underlined during the Focac summit attended by more than 50 African countries, where President Xi announced ten partnership actions that China would take together with African countries to support the modernisation of their economies. These actions cover areas like trade, industrial development, agriculture, health and infrastructure,” he said.
MUCH INVESTMENT AND JOBS
Meanwhile, during his State visit to China, Ramaphosa said he had an opportunity to meet several Chinese companies currently operating in South Africa or looking at opportunities in the country, particularly in energy, infrastructure, technology and advanced manufacturing.
He pointed out that just over 10 years ago, Hisense established a R350-million manufacturing plant in Atlantis Industrial Park in the Western Cape.
Having grown into a prominent brand in the South African market, Hisense is now exporting some of its products to other African countries and to the UK from its Atlantis plant, he noted.
The company reports that it has created over 1 000 direct and over 5 000 indirect jobs in Atlantis, provides on-the-job skills training to its workforce and has a skills transfer programme between China and South Africa for technicians and engineers.
Rampahosa said the Hisense story showed the great potential that existed for investment in advanced manufacturing in South Africa and the reach this had into the broader continental market.
“It is also a good example of job creation, skills development and technology transfer. Hisense is just one of a growing number of Chinese companies that are expanding their footprint in South Africa, bringing much-needed investment and jobs,” he said.
