China
KwaZulu-Natal
South Africa
Sector
KZN is looking to the east
China has increasing interest in Africa, especially in infrastructural and industrial developments. KZN as a province is eager to show its value in supporting these developments and is focusing on showing KZN to be the ideal partner to Chinese companies in Africa.
'In the past seven years it is estimated that Chinese investments in Africa have grown form US$100-million to US$60-billion by 2006,' says Dr Mkhize. 'China’s huge demand for Africa’s commodities is creating new opportunities for us to realise the hopes of our people for a better life.'
Chinese presence in Africa
China is already increasing its manufacturing investment in Africa, where new industries are sorely needed to counter two decades of de-industrialisation. Chinese interest is already in Liberia, Zambia and Sierra Leone, while Chinese factories are making batteries in Mozambique, shoes in Nigeria, ethyl alcohol in Benin and a host of other products across the continent.
'China’s presence in Africa is substantial. To date over 800 companies, mostly state owned enterprises, are operating in about 50 African countries,' says Dr Mkhize. China is a country that lacks natural resources, certainly in terms of the size of the population it supports, whereas Africa has an abundance of natural resources, mostly untapped. The partnership seems obvious. But it must also be a mutually beneficial one.
South Africa and China
China’s thirst for energy and raw materials will lead to South Africa. A partnership with South Africa could involve energy, including oil and gas, in refined and unrefined forms, metals and minerals, and might also include tobacco or fishery products.
'KwaZulu-Natal boasts the highest propensity and the highest level of industrialisation in the country, with a large manufacturing sector. Due to the adequate supply of rainfall and large tracts of arable land, agriculture has great potential to unlock export opportunities. Thus KwaZulu-Natal would like to further explore co-operation in agriculture research to enhance out productivity.' says Dr Mkhize.
Of mutual benefit
The mutual benefit lies in the following trade-off: China gets natural resources, Africa the infrastructure. In KZN our objective is simple: to highlight the mutually beneficial role between South Africa and China on issues such as the exchange of experience and expertise on development issues. With China hosting the 2008 Beijing Olympics, we could learn lessons for the upcoming 2110 World Cup Soccer on how to improve domestic and overseas awareness of South Africa, and to increase domestic and overseas interest and intention to visit.
As a province, KZN is looking to concert its efforts to target China's African industrial revolution. 'We have identified projects with the Chinese on various areas in the Department of Arts, Culture and tourism, Department off Education, Department of Agriculture and Environmental Affairs,' explained Dr Mkhize. 'Various visits and missions to China pointed us towards a programme of generating direct foreign investment opportunities in the form of joint ventures in resource base sectors in Shangai and Jiangsu provinces.' There is already a possible joint partnership to manufacture solar panels in KZN (30% of global production takes place in the Jiangsu Province).
For more information contact Perusha Naicker, Communications Officer: Trade and Investment KZN, on +27 31 368 9600 or email perusha@tikzn.co.za
