The South African Cabinet welcomes agreements with Beijing during President Cyril Ramaphosa’s two-legged visit – the State Visit to the People’s Republic of China, where he participated in the Forum on China-Africa Co-operation (FOCAC) Summit – Minister in the Presidency, Khumbudzo Ntshavheni has said on Friday.
“Cabinet received a briefing about the outcomes of the FOCAC meeting held in Beijing, China from September 4 to 6, and also the State Visit by President Ramaphosa to President Xi Jinping of the People’s Republic of China from September 2 to 4.
“Cabinet noted the following key outcomes for South Africa – an agreement to change the structure of trade between China and South Africa into value-added manufactured products in particular an agreement reached for South Africa to provide China with a list of at least 100 value-added products for China to consider importing from South Africa,” Ntshavheni told journalists in Pretoria.
“South Africa secured co-operation from China on three key value chains relating to de-carbonisation, digitalisation, transport and logistics. This co-operation will pave the way to promote investments in electric vehicles, battery manufacturing, renewable energy storage, as well as identified special economic zones and industrial development zones.”
She said Chinese investors in both Shenzhen and Beijing expressed interest in expanding their investments in South Africa.
Six memoranda of understanding during Ramaphosa’s tour and these are aimed at intensifying cooperation between Chinese entities and South African companies and development finance institutions.
“The Chinese companies also made a commitment to attend the next South African Investment Conference and in the memoranda of understanding signing, of particular interest is the signing of the memorandum on the foot-and-mouth disease that now allows the limiting of the ban on the importation or exportation of beef from South Africa if there is an outbreak of the diseases,” she said.
“For instance, the current outbreak of foot-and-mouth disease in the Kouga and Kou-Kamma municipalities of the Eastern Cape, will not affect the ability of South Africa to export beef to China from Free State, Limpopo, North West and other provinces. Previously, that outbreak would have prevented the export of beef from this country to China. We are hoping that the MOU that was signed will also pave way for South Africa into similar MOUs with our key markets on beef, given that beef is part of our largest exports.”
In July, IOL was granted an exclusive opportunity to sit down with the new Chinese Ambassador to South Africa, Wu Peng, former director-general of China’s Department of African Affairs in the Foreign Ministry, just days after he took the reins at the Embassy of China in South Africa.
The veteran diplomat said after assuming the reins at the Pretoria embassy, he has been advised to give special focus to two pressing matters – co-operation in renewable energy, and job creation for South Africa’s youth.
“China is quite strong in electric vehicles and solar energy. We are well-positioned to co-operate with South Africa in these fields. Chinese EV (electric vehicle) brands such as BYD and King Long are already working with African businesses in countries like Ethiopia and Kenya to assemble electric buses locally,” he said.
“Thanks to their joint work, Chinese EVs are not only making it easier and more carbon-friendly for Africans to travel, but also creating massive local jobs for the young people.
“As Ambassador, I look forward to working with friends from all communities to strive for shared development. I am confident that China-South Africa relations in the Golden Era will harvest more golden fruits to benefit the people,” he said.
For the past 15 years in a row, China has been the largest trading partner not only for South Africa, but also for the African continent. South Africa has now been China’s largest trading partner in Africa for 14 years straight.
“From January to May this year, our bilateral trade reached US$23.5 billion. South African exports to China were US$15.3 billion, up 14 percent year-on-year,” he said.
The former ambassador of China to Kenya said South African wine, rooibos tea, aloe gel, and other quality products are now very popular on the Chinese market.
“Actually, before I came here, I saw rooibos tea in a five-star hotel in China. It costs you 60 yuan to get a cup, which is roughly R150. Of course, I bought myself a cup. It tastes really nice but R150 is a little expensive. That is why I think China should import more rooibos tea and bring the price down, so that more (people) can enjoy rooibos tea in China,” he said.
“The Chinese government is committed to advancing high-level opening-up. We are ready to share our mega-sized market with all countries, including South Africa. It is estimated that by 2035, China will have 800 million people in the middle-income group,” he said.
IOL