New approach to business needed

Johannesburg - Business Unity South Africa (Busa) has called for a new partnership for economic cooperation between Chinese and SA business in Africa.

Addressing the third session of the World Industrial and Commercial Organisations Forum on Tuesday in Beijing, BUSA CEO Jerry Vilakazi said the new partnership should be premised on the strengths and experiences of SA companies in the continent.

"We need a new partnership between our two economies, one that recognises the potential and benefits for local beneficiation in SA. A partnership that sees investments in infrastructure development in Africa as a vehicle for development and essential foundation for enhanced future trade and economic cooperation. SA is already active in this area in the rest of the continent," said Vilakazi.

Vilakazi assured Chinese investors and business leaders of political and economic stability in SA. "We remain very confident of the political and economic stability of our country. The new leadership of the ANC under Mr Zuma has more than assured us of their commitment to economic policy continuity.

We expect the new government to do better than its predecessor and to continue working in partnership with the private sector to address poverty, inequality and unemployment," said Vilakazi.

The World Industrial and Commercial Organisations Forum is hosted by the China Federation of Industrial Economics, United Nations Industrial Development Organisation (UNIDO) and World Intellectual Property Organisation (WIPO) and seeks to promote economic cooperation between countries of the world and China.

It is attended by business leaders from all major economies of the world with only SA participating from the continent.

After the US, China is now firmly the second-largest single-country trading partner of Africa.

This year two-way trade between Africa and China is expected to reach well over $117bn, an increase of 60% over the total of $73bn recorded in 2007 and in excess of the $100bn target for 2010 which was set up by the African and Chinese leaders during the Beijing Summit and the Third Ministerial Conference of the Forum on China - Africa Cooperation in November 2006, BUSA said.

Twenty-two percent of China's exports to Africa go to SA - the next country imports half this figure. While Angola tops the list of African exports to China at 37%, SA boasts the second-highest exports to China at 14%. However, African exports to China are dominated by oil and mineral products.

SA is a potential hub for future beneficiation and value add in the continent and BUSA believes the time is opportune for Chinese companies to partner with SA companies through joint ventures and strategic investments in Africa.

In his address Vilakazi noted that besides the ICBC-Standard Bank deal Chinese investments in SA have been very limited, while SA investments in China have grown over $800m.

- I-Net Bridge/p>