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UPDATED: March 23, 2015 NO. 13 MARCH 26, 2015
A Reciprocal Exchange
The Year of China in South Africa will have far-reaching cultural and business benefits
By Tebogo Lefifi
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SINO-SOUTH AFRICAN MELODY: A Chinese artist performs with a South African singer at the opening ceremony of the Year of China in Pretoria, South Africa, on March 15 (SONG FANGCAN)

One of Africa's leading economies and the world's largest developing country continue to forge even stronger trade, investment and cultural ties that will define the long-term relations of the two nations.

In the joint communiqué between South Africa and China issued in 2013 by Chinese President Xi Jinping and South African President Jacob Zuma, 2014 was designated as the Year of South Africa in China and 2015 the Year of China in South Africa. The Year of South Africa closed with a state visit to China by Zuma, accompanied by a 100-strong business delegation, which culminated in the signing of 10 strategic agreements. They included strengthening bilateral relations, deepening areas of cooperation, setting requirements for exports and imports, promoting investment and concluding financing deals.

Bilateral events

The Year of China in South Africa 2015 will see bilateral exchanges take place in South Africa. The bilateral events are a great pioneering project in the history of the two countries, an important decision made by the two countries' leaders in 2013. The exchanges consolidate the strong economic and political ties built over the last 16 years since the establishment of formal diplomatic relations and open new opportunities for both countries to grow their economies.

In their role as emerging markets, the two countries have a significant responsibility in the world, with their shared membership in BRICS (Brazil, Russia, India, China and South Africa) and the Forum on China-Africa Cooperation (FOCAC). China and South Africa hold similar views and share common interests and concerns on a series of important international issues. The two nations' close cooperation in south-south affairs as an embodiment of their strategic partnership has drawn attention from all over the world. In addition to hosting the Year of China, this year South Africa will also host the Sixth FOCAC Ministerial Conference.

During the year of South Africa in China nearly 200 events and exchanges were held in the fields of politics, trade, economy, culture, science and technology, education, media and regional exchanges. The nation brand impetus generated by the Year of South Africa in China far exceeded expectations. The successful events provided a series of valuable experiences for the Year of China in South Africa. Expectations are high for a reciprocal series of events triggered by initiatives started by South African businesses, institutions and government departments.

South Africa has prepared to host an influx of Chinese business and leisure travelers to showcase Chinese culture and business in South Africa. In 2013, Chinese tourist arrivals to South Africa reached about 151,000, representing a 14.7-percent increase over 2012 and also the fifth year of consecutive growth. Hopes remain high that the numbers to South Africa will continue to increase. As another boost for tourism, Air China is set to launch a non-stop flight between Beijing and Johannesburg in 2015. It will be Air China's first non-stop service between China and Africa, and will add to the flight options for Chinese travelers, assist with the Year of China in South Africa process, and enhance the bilateral relations between the two countries.

Nation branding

South Africans can enjoy the rich Chinese culture through ballet, art, literature, films and theater, photo exhibitions, and acrobatic and martial art performances. These performances will be driven at a local level through the 28 sister/twin agreements between provinces and cities. Engagement at the local level will deepen the people-to-people relation that is often lacking in China-Africa relations and exchanges.

As Brand South Africa we will continue to build a strong nation brand contextualized for South Africa, and continue with efforts to create awareness of South Africa as a world-class destination for the Chinese to travel to and do business in. We will also work closely with the Chinese to help them leverage on our experience and expertise to build two strong nation brands.

From an industry perspective, the Department of Trade and Industry (DTI) of South Africa hosted DTI expos in five cities in South Africa. More than 300 small, medium and micro enterprises (SMMEs) in South Africa participated in them, signing trade and service agreements with Chinese SMMEs. With the programs led by provincial and local governments this year, we anticipate that more Chinese SMMEs from second- and third-tier cities will participate in business exhibitions in South Africa. This year we will share these opportunities with Chinese investors visiting South Africa.

Through the National Development Plan we have a clear vision of what needs to be done, and the government is fast-tracking its implementation over the next five years through the Medium-Term Strategic Framework. The economy has been declared an apex priority. We are investing heavily in infrastructure such as electricity, transport, water, roads, schools and hospitals to build a platform for faster, more inclusive economic growth. The government is targeting the productive sectors of manufacturing, mining and agriculture. It is also opening new areas of economic growth, such as the ocean economy, green economy and shale gas exploration. There is also a new framework for special economic zones that allows for targeted incentives, logistics improvements and active partnerships between businesses, municipalities and development agencies.

Strategic entry point

Chinese companies based in South Africa are supported so that they can take advantage of our opportunities and help us promote job creation and a better life for all. Ultimately, our aim is to reduce poverty, unemployment and inequality. The government is encouraging local businesses to expand into Africa to support continental growth by relaxing cross-border financial regulations and tax requirements. Similar support measures will apply to Chinese companies wanting to invest in African countries using South Africa as their regional headquarters.

South Africa is a strategic entry point for Chinese investors interested in Africa. We are a key economy on the continent and play an integral role in Africa's advancement. These initiatives present opportunities for local and international investors to partner with the government and take the economy forward.

While the celebratory events that will unfold in South Africa may seem distant for Chinese investors, every South African and Chinese citizen is a shareholder and has an important role to play in promoting cooperation in both countries in the globally competitive environment. The twin national years will enhance Sino-South African friendship and boost mutual beneficial cooperation in various fields for generations to come.

The author is China Country Manager of Brand South Africa, the official marketing agency of South Africa

Comments to liuyunyun@bjreview.com



 
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