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Chinese enterprises are gaining greater recognition in South Africa |
By Kirtan Bhana | VOL. 15 July 2023 ·2023-06-25 |
South African President Cyril Ramaphosa delivers an opening address at the Fifth South Africa Investment Conference in Johannesburg, South Africa, on 13 April (XINHUA)
The South African Guild of Mobility Journalists recently announced the 2023 South African Car of the Year winners. Two Chinese car models achieved major milestones. The BAIC SA Beijing X55 won the coveted Compact Family category, while Chery took home the Motor Enthusiasts Choice Award, which was selected by votes from the South African public. This shows that the South African people are confident about Chinese brands and its investment in South Africa.
There are more than 10,000 Chinese enterprises currently operating in Africa. They are involved in industries ranging from automotive, retail, communications and information technology to media and entertainment. Besides the Chinese auto brands, Huawei in ICT and electronics sector, and StarTimes in media and entertainment are the most recognisable, while King Deer in apparel, Jiangsu Yongyuan in mining and machinery, Sunda International in building materials and equipment, Huajian in high-end leather shoes for women, Holley in auto parts, Transsion Holdings in smartphone manufacturing, and China-Africa Cotton are the biggest and most active Chinese enterprises in Africa. China has been Africa’s largest investor since 2013.
South Africa, in particular, has been improving its business environment to attract more investment from China. In 2015, South Africa joined the Belt and Road Initiative and has seen rapid improvement of its infrastructure, which, in turn, has improved the country’s business environment by strengthening its connectivity with surrounding African countries. Chinese investments not only bring South Africa jobs for people and financial resources for enterprises, but also, more importantly, advanced technologies, which is much needed in South Africa’s industrialisation.
This year also marks the 25th anniversary of the establishment of the diplomatic relations between China and South Africa, and the increasing investment from China to South Africa is the best annotation for the development of the bilateral relationship in the past 25 years. South African President Cyril Ramaphosa said at the Fifth South Africa Investment Conference in Johannesburg on 13 April that the country has set a new target to mobilise approximately 2 trillion rands (about $110 billion) in new investments over the five-year period from 2023 to 2028.
To improve cooperation, smooth communication between investors and investees is important. A better understanding of each other’s needs and requirements will lead to a harmonious relationship. Creating a profound awareness and connection will spark the imagination and lead to innovation, trust and a sustainable partnership.
Nelson Mandela once said, “If you talk to a man in a language he understands, that goes to his head. If you talk to him in his language, that goes to his heart.” It is a clear statement that highlights the sheer sophistication of communicating.
South Africa is doing its best to help the world community to better understand the country. In recent months, South Africa hosted the foreign ministers of the five BRICS countries and 15 other states who have made applications to join this grouping of the nations of the global South. It also hosted the World Table Tennis Championships and will host the Vitality Netball World Cup. Considering the current geopolitical and energy challenges the country is facing, these events bode well for the country. The hosting of the BRICS Summit by South Africa in August is a vote of confidence in the country and its people.
Chinese and African private companies should look to lend greater support to media outlets to counter the flawed righteousness that some Western media conglomerates tend to adopt. Furthermore, investment is needed in new research, data and analysis to correct discrepancies caused by manipulation, machinations and misconduct by the so-called developed economies.
The author is director of the Diplomatic Society of South Africa
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