Shanghai - Increasing trade and investment between South Africa and China is a matter that both countries will continue to work towards.
The Department of Trade and Industry (dti) on Tuesday hosted an investment seminar in Shanghai aimed at increasing investment between the two nations that also form part of BRICS (Brazil, Russia, India, China and South Africa).
“Our participation as a country, to work with China … is a benefit because we can … showcase what we do. We bring along business people that will then match make with other business people,” Deputy Minister Elizabeth Thabethe told SAnews at the investment seminar, which was also attended by Chinese business people.
“In particular, we encourage a lot of investors to come to South Africa because we have conditions that are conducive for them to do business. Our business sector is good, we have good fundamentals. We are also the gateway to the continent… Africa is no longer dark,” said Thabethe.
The Asian nation is South Africa's biggest trading partner and a significant investor in the South African economy, with exports from South Africa to China in 2012 totalling R89 billion. Imports from China to South Africa totalled R112 billion.
Government has identified massive infrastructure projects as a key to boosting the country’s economic growth rate as well as creating employment. The National Development Plan (NDP) which aims to triple the size of the South African economy will promote policy certainty.
The deputy minister called on Chinese companies to invest in South Africa. “Investors can come to South Africa where they can use SA as a base to reach the rest of the continent,” she said.
Earlier this year, the department announced the fifth iteration of the Industrial Policy Action Plan (IPAP) that outlines government’s plans to industrialise the South African economy. IPAP focuses on three clusters including the scaling up and broadening interventions in existing sectors.
Textile industry
On the issue of cheap imports from China in the clothing and textile sector, Thabethe said previously an agreement had been reached between South Africa and China on limitations of cheap clothing from China. The five year agreement, she said has since lapsed.
“It lapsed and they were not keen to extend that facility but over the course [of that period] we were able to deal with the challenges. There is an agreement reached now that they are prepared to train 30 dti officials over a five year period so as to learn the skills in terms of clothing and textiles in China. This will help sharpen our clothing sector which is not doing well,” she said.
Labour strikes in SA
On the issue of concerns around labour strikes in South Africa, Thabethe said the country has got sound labour laws.
“We have sound labour laws in South Africa. We have protected strikes but from time to time we do experience some wildcard strikes. This is not a problem for investors, we do have good infrastructure where we have negotiations with unions,” she said.
The seminar is being held on the sidelines of the 17th Annual China International Fair for Investment and Trade (CIFIT) which kicked off on Sunday with South African firms showing off their wares. This year’s CIFIT is held at a time when the two countries mark 15 years of China-SA relations. - SAnews.gov.za
