SOUTH AFRICAN EXPOS IN CHINA KICK-OFF IN HONG KONG

SOUTH AFRICAN EXPOS IN CHINA KICK-OFF IN HONG KONG

The fifth annual South African Expos in China kicked-off in Hong Kong yesterday. The expos, which are a flagship project for the Department of Trade and Industry (the dti), are undertaken in order to execute South Africa’s strategic objectives focusing on the Top 10 value-added products and investment projects to China.

Speaking at the first investment seminar, the Chief Director for Export Promotion and Marketing at the dti Ms Zanele Sanni said trade between South Africa and China had been on a steady growth albeit skewed in China’s favor. She highlighted that the country’s concerted efforts through the Expos as well as continued participation at trade fairs like the SIAL China and the Hong Kong International Diamond and Jewelry Fair have resulted in a steady increase in South Africa exports.

“Total trade between the two countries has been on a steady upward growth. In 2013 trade amounted to 19,2 billion US dollars, but it is heavily skewed towards China and has been characterized by raw commodities,” added Sanni.

She said that the inclusion of Hong Kong and other second-tier cities to the South African Expos in China was essential to increasing trade between the two countries and to ensuring that the tide turns in South Africa’s favor.

Sanni told potential investors that one of the key enablers to South Africa’s industrialization agenda was that of infrastructure development.

“South Africa will spend over R 800 billion over the next three years, focusing on rail, roads, energy, water, sanitation and the communication sectors throughout the country,” she emphasised.

She encouraged Chinese investors to partner with South African companies in order to benefit from these opportunities.

Mr Shaun Clarke, who is a partner in Acorus Capital in Hong Kong, a private equity fund that invests growth capital into Sub-Saharan Africa through cross border and direct private equity deals, advised the South African businesspeople to seek quality investment partners in China, do due diligence and utilise resources offered by the dti to ensure that they succeed in their business partnerships.

“The appetite that the Chinese have to invest outside their country is a good basis to get Chinese investment in South Africa. China also has sound political relations with South Africa and this and offers very good incentives to support businesses,” added Clarke.

The Expos continue today in Shenzhen, and will thereafter move to Chengdu, Shanghai and Beijing.