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Johannesburg - A joint venture between between
Lazarus Zim's investment holding group Afripalm Horizon and China's Railway Construction Corporation (CRRC) is to target projects across the infrastructural spectrum in southern Africa.
Speaking from Beijing on Tuesday, Afripalm director Menzi Mbatha told Fin24.com the venture would initially focus on power plants and water development projects in South Africa.
"There are still massive service delivery projects to be done," Mbatha said. "We're in the process of determining the feasibility of the business, and what we now need is to also identify the target projects."
According to Mbatha, CRRC will inject the necessary funds for each project once it has been scrutinised by an investment committee.
"South Africa may be faced with major water problems, but we won't only focus on government projects - we'll be looking at any infrastructure projects, even on the private sector side and in other neighbouring countries."
Mbatha said the partners are in the process of drafting a budget to determine what the joint venture's seed capital needs will be.
The company will import skilled Chinese engineers, artisans, financial experts and construction specialists.
Mbatha said the joint venture will hopefully lead to more business deals between South Africa and China.
The deal comes as President Jacob Zuma is on a state visit to China. Zuma is accompanied by a delegation of more than 370 business representatives, in an effort to broaden South Africa's economic appeal for Chinese investment beyond mining and resources.
"This strategic alliance will foster greater economic cooperation between Chinese and South African businesses as part of a broader cooperation between Asia and Africa in the construction sector," said Zim in an announcement.
"Our aim is to help build Africa's infrastructure in a manner that enhances investor returns while realising real economic empowerment of the African continent," he said.
CRRC is the largest construction company in the world and is listed on the Hong Kong and Shanghai stock exchanges.
- Fin24.com