By More Matshediso
Pretoria - President Jacob Zuma says as South Africa works towards its target of 5% growth in the economy by 2019, the country will advance its trade ties with China in pursuit of inclusive growth and job creation.
The President today concluded his two-day State visit to the People's Republic of China.
“At the end of 2013, bilateral trade between our countries exceeded R270 billion. China's investment into South Africa is cumulatively valued at approximately R120 billion, with over 100 state-owned entities and multinational companies investing in South Africa,” the President said.
He said the fact that South Africa's foreign direct investment outlook continues to be positive is even more encouraging.
“Last year, 130 foreign companies entered South Africa for the first time or expanded their investments, contributing to total direct investment of $8.2 billion, which is double the figure for 2012.
“We have agreed that China will encourage buying missions to South Africa starting early in 2015 as part of promoting a balance in our trade relations,” said the President.
Presidential discussions
President Zuma said he had fruitful discussions with his Chinese counterpart, President Xi Jinping, and Premier Li Keqiang of China on Thursday, which reaffirmed the good relations between South Africa and China.
He said the meeting with the business community of China and South Africa takes forward the strong economic relations between the two countries.
“We met on a high note, given the success of this visit and the progress made with the implementation of the Comprehensive Strategic Partnership through the Bi-national Commission and the Inter-ministerial Joint Working Group established recently.
“Yesterday we took our cooperation further and signed the 5 to 10 Year Framework on Cooperation to further enhance the implementation of the outcomes of the Bi-National Commission and the Inter-ministerial Joint Working Group,” President Zuma said.
Operation Phakisa
President Zuma welcomed China’s willingness to share lessons and cooperate with South Africa in the implementation of the blue economy programme, Operation Phakisa.
Operation Phakisa will initially be implemented in two sectors, the ocean economy and health sector, especially clinics.
“South Africa's coastline is approximately 3 924 kilometres long and is yet relatively unexplored in terms of its economic potential. In 2010, the oceans contributed approximately R54 billion to the economy and accounted for 316 000 jobs,” said President Zuma.
The ocean has the potential to contribute approximately R177 billion or $17 billion and create up to one million direct jobs.
More Chinese investment
President Zuma said South Africa also encourages further Chinese investment, especially in key areas like the beneficiation of mineral resources, improving industrial capacity, enhancing agro-processing as well as energy, in particular nuclear energy cooperation.
“We regard the memorandum of understanding on Cooperation between the China National Nuclear Corporation and the Nuclear Energy Corporation of South Africa (NECSA), as a mechanism which will enhance the mutual exchange of information, best practices and lessons learnt in the nuclear energy sector, which will also encourage and identify additional opportunities for cooperation,” President Zuma said.
The President highlighted South Africa’s special economic zones programme as another area that China has many years of experience in.
“President Xi has indicated China's readiness to cooperate with us in this area. We have a package of support measures aimed at promoting industrialisation in general and the development of new industrial hubs,” he said.
The two Presidents have also agreed during their official talks to improve cooperation in the financial sector, allowing easier access to each other's financial markets. - SAnews.gov.za
