AnilSooklal,DeputyDirectorGeneralofSouthAfrica’sDepartmentofInternationalRelationsandCooperation
China’sfundinginjectionacceleratestheupgradingofindustrialcooperationwithAfrica
ByLiuJian
LimpopoProvinceinthefarnorthofSouthAfricatakesitsnamefromthemightyLimpopoRiver,whichformsthenaturalborderwithZimbabwe.Itisaregionteemingwithwildlife,andbountifulhistoricalandculturaltreasures,alongwithspectacularscenery.
Nowtheprovince,anditsnorthern-mosttown,Musina,areonthevergeofbiggerthings.
ShenzhenHoiMorResourcesHoldingsLtd.,aChinesecompanyspecializedinmineralbeneficiation,willinvestmorethan$3.8billiontoestablishanenergyandmetallurgicalindustrialclusterintheMusinaSpecialEconomicZone(SEZ).
RichardZitha,ProjectExecutiveoftheMusinaSEZunderLimpopoEconomicDevelopmentAgency,ispleasedwiththepositiveoutcomeofhisrecenttriptoChina,wherehesignedacooperationagreementwithShenzhenHoiMorResourcesattheSeminaronChinaAfricaBusinessCooperationonJuly28,2016inBeijing.
“Thisclusterprovidesagoldenopportunityforourskillsupgradingandtechnologytransferandhasdemonstrationeffects,”hetoldChinAfrica.“Thesedynamiceffectshavethepotentialtocontributefurthertoregionaldevelopment,especiallyinthelongterm.”
AccordingtoNingYihai,ChairmanofShenzhenHoiMorResources,theclusterconsistsofaround10projectsincludingapowerplant,acokingplant,aferrochromeplant,asteelplantandastainlesssteelplant.Henotedthatajointventurewillbesetuptodevelopandmanagethecluster.
“Theimplementationofvariousprojectsoverthenextfiveyearsisexpectedtocreatemorethan21,000jobs,”hesaid.“Capacitybuildingandskilldevelopmentarethekeyareaswewillfocusoninourcooperation,andwewillalsoincreasevalue-addedproduction.”
Industrialcooperation
“ThedevelopmentofthisSEZisintendedtoaccelerateeconomicgrowth,attractforeignanddomesticdirectinvestment,expandthemanufacturingsectorandmineralbeneficiation,aswellascreateemploymentintheregion,”saidSouthAfricanTradeandIndustryMinisterRobDavies.
NingtoldChinAfricathatfortheproject,hiscompanycanapplyforfundingfromtheChina-AfricaDevelopmentFund(CADFund)ortheChina-AfricaFundforIndustrialCapacityCooperation.BothofthemwereestablishedbyChinain2006and2015respectivelytosupportmoreChinesecompaniestoinvestinthecontinent.
ChinaandSouthAfricacomplementeachotherwellinindustrialcapacitycooperation,saidWangFuqiang,VicePresidentofShenzhenHoiMorResources.“TheMusinaSEZhastheadvantageofrichnaturalresourcesandenjoysSouthAfricanGovernment’spreferentialpoliciesintaxandforeigninvestment,whileourcompanyhastheleadingmetallurgicaltechnologyandequipment,and[ourproductsenjoy]hugemarketdemand,”heexplained.
ButitisnotonlySouthAfricathatChinaisnowdeeplyinvolvedwith,butthecontinentaswhole.Africa’sindustrializationandagriculturalmodernizationhaveafocusonfinancingandinvestmentcooperation,saidChineseForeignMinisterWangYiwhiledeliveringaworkreportattheCoordinators’MeetingoftheImplementationoftheFollow-upActionsoftheJohannesburgSummitoftheForumonChina-AfricaCooperation(FOCAC)onJuly29,2016inBeijing.
“InvestmentcooperationhasbecomeanewwayofboostingChina-Africacooperation,andit’samutuallybeneficialcooperationmodel,”saidWang.“IthelpsspeedupAfrica’sindustrializationandimproveitsindependentdevelopmentcapacity,whilebringingChineseequipment,technologiesandproductstoAfricancountriesviaindustrialcapacitycooperation,”headded.
Egypt’sAssistantForeignMinisterforAfricanAffairsMohamedEdreestoldChinAfricathattheindustrialdevelopmentcooperationmentionedbyWangissomethingmostAfricaneconomiesarelookingfor.HesaidthereisnowarealizationinAfricathattoachievesignificantdevelopmentinavarietyoffields,theremustbeindustrialdevelopmentandnotjustdependenceonagriculture,asisthecaseacrossthecontinent.ShenzhenHoiMorResourcesconcludesacooperationagreementwiththeMusinaSEZofSouthAfricanLimpopoEconomicDevelopmentAgencyinBeijingonJuly28Themultipliereffect
AttheFOCACJohannesburgSummitheldinSouthAfricalastDecember,ChinesePresidentXiJinpingannounced10majorChina-Africacooperationplansfor2016-18,backedbygrants,funds,zero-interestloansandloansonfavorabletermsvaluedat$60billion.
Eightmonthslater,morethan100ChineseandAfricanministerialofficialsattendedthecoordinators’meetingonJuly29toevaluateandreviewtheimplementationofagreementsreachedattheFOCACSummitinJohannesburg.
Sincethesummit,ChinaandAfricahavesigned243cooperationagreementsofvariouskindsworth$50.725billion,saidChineseViceForeignMinisterZhangMingatthepressbriefingafterthemeeting.
“Amongtheagreements,Chinesecompanies’directinvestmentandcommercialloanstoAfricaexceed$46billion,accountingfor91percentofthetotalvolume,coveringtheareasofindustrialcooperation,specialeconomiczones,powerplantsandagriculturalprojects,”hesaid.
ZhangbelievestheachievementoftheFOCACJohannesburgSummithasrevitalizedthemarkettoboostChina-Africacooperation,callingthisthe“multipliereffect.”
“Likeacatalyst,China’s$60-billionAfrica-focusedfundingspeedsuptherateofthechemicalreactionofChina-Africacooperationinthemarketenvironment,whichhassuccessfullybroughtalargeamountoffundingfromthemarket,andattractedmoreinvestmenttoAfrica,”saidZhang.
Addressingbottlenecks
Thespecificcooperationblueprintinplacerevolvesmostlyaroundindustrialization.
“The10cooperationplansincludeaChina-Africaindustrializationplan,anagriculturalmodernizationplanandaninfrastructureplan,whichwilladdressthebottlenecksholdingbackAfrica’sdevelopmentsuchasinadequateinfrastructureandlackoftalents,”saidHeWenping,SeniorResearchFellowattheInstituteofWestAsianandAfricanStudiesoftheChineseAcademyofSocialSciences.
UndertheChina-Africaindustrializationplan,Chinahassignedcooperationagreementswithcountriesonbuildingtradeandeconomiccooperationzones,saidChineseMinisterofCommerceGaoHucheng,whiledeliveringaspeechontheprogressChinahasmadeinimplementingtheneweconomicandtrademeasuresofthe10cooperationplansattheCoordinators’Meeting.“TheexpansionprojectoftheChina-EgyptSuezEconomicandTradeCooperationZonehasstarted,andEthiopiahaslaunchedtheHawassaIndustrialPark,”headded.
China’sfinancialsupporthashelpedaddressAfrica’sfundingshortagesandlaidthefoundationfordevelopmentinallsectors,accordingtoGao.Anadditionalcapitalof$5billionhasbeeninjectedintotheSpecialLoanfortheDevelopmentofAfricanSmall-andMedium-sizedEnterprisessincetheJohannesburgSummit.Chinahasextended$100millioninloansforfiveprojectsinfiveAfricancountries,whiletheCADFundhasinvestedanother$100millioninsevenprojectsinsixAfricancountries.
AndatthetopoftheagendainthethrustofChinaAfricaindustrialcooperationareskillsdevelopmentandcapacitybuilding.Sincethesummitlastyear,Chinahastrainedmorethan30,000Africantechnicalpersonnelonsiteandhostedmorethan6,000officialsandtechnicalstaffin150multilateralandbilateraltrainingprogramsinChina,saidGaoinhisreport.“ChinawillalsohelpAfricasetup24regionalvocationaleducationcentersandschoolsforcapacitybuilding,”hesaid.
InanefforttoseeChina’sdevelopmentprogressfirsthand,agroupofmorethan90participants,includingAfricanministersandambassadorstoChina,visitedChina-SingaporeSuzhouIndustrialParkinSuzhouCity,JiangsuProvinceonJuly30.
“WeareimpressedbyhowSuzhouhasdevelopeditsindustrialparksinashortperiodoftime,andhowthisgeneratesmodernization,industrializationandjobcreation,andthisiswhatAfricaistryingtoemulate,”saidAnilSooklal,SouthAfrica’sCoordinatorofImplementingAgreementsattheJohannesburgSummitandDeputyDirectorGeneralofthecountry’sDepartmentofInternationalRelationsandCooperation.
“Whatbetterpartner[to]havethanacountrythathasexperienceditand[is]nowwillingtosharetheexperiencewithus?That’swhythepartnershipissointense,”headded.CA
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