South Africa and China strengthening bilateral relations

China is interested in being involved with Operation Phakisa; South Africa’s blue economy programme. This is according to President Jacob Zuma speaking at the China-South Africa Business Forum held in Beijing, China.
Zuma said in order to tap into the ocean, government has identified four priority sectors, in which to focus on.

“These are marine transport and manufacturing activities, such as coastal shipping, trans-shipment, boat building, repair and refurbishment, offshore oil and gas exploration, aquaculture and marine protection services and ocean governance. It is estimated that the ocean has the potential to contribute approximately R177 billion and create up to one million direct jobs.”

At the same time the President has further encouraged the Chinese to invest in areas such as beneficiation of mineral resources, improving industrial capacity, enhancing agro-processing as well as energy, in particular nuclear cooperation.

President Zuma and a delegation of ministers are in China on a State Visit which aims to strengthen bilateral relations between South Africa and China.

Several strategic agreements have been signed with the government of the People’s Republic of China which aim to strengthen relations between the two countries. These include the memorandum of understanding on Cooperation between the China National Nuclear Corporation and the Nuclear Energy Corporation of South Africa.

Zuma told the Business Forum that South Africa regard the memorandum of understanding as a mechanism which will enhance the mutual exchange of information, best practices and lessons learnt in the nuclear energy sector which will also encourage and identify additional opportunities for cooperation.

Both Zuma and the Chinese President Xi Jinping have agreed on the establishment and operationalisation of the Brics New Development Bank as soon as possible.

“We will cooperate with China to ensure that the Shanghai Headquarters and the African Regional Centre in South Africa are established as per agreed timelines. We have prioritised the ratification of the agreement establishing the Bank. South Africa has also instituted committees to make the African Regional Centre operational. It should be noted that the New Development Bank comes to Africa an opportune moment. Africa is currently promoting regional integration and cross-border trade and investment,” added President Zuma.

The following Memorandums of Understanding (MoUs) that will further enhance business to business investment between the two countries were signed during the Business Forum:
• Industrial Development Corporation of South Africa Limited and China Africa Development Fund. The parties will work on co-funding of projects in line with our industrial policy.
• Profert Holdings Proprietary Limited – Ruixing- China-Africa Development Fund. The total investment is estimated to be R7 million.
• Transnet and China Locomotive and Rolling Stock Industry Group Corporation Limited. The Parties have identified an opportunity to collaborate with each other in relation to the design, manufacture and distribution of rolling stock in South Africa and the rest of Africa.

Zuma said the signing of agreements reflected progress in the drive to deliver on the mandate to eradicate unemployment and reduce poverty and inequality in South Africa.