Promising Prospects
As a guest country of honour, South Africa attracts special attention at the sixth CIIE
As China and South Africa celebrate the 25th anniversary of the establishment of diplomatic relations, a growing number of South African companies are aiming to explore the Chinese market for growth opportunities. Some of these companies made their debut at this year’s China International Import Expo (CIIE) in Shanghai. Lesira-Teq, a company that designs, manufactures and supplies smart water metres, is among them.
South Africa was one of the five guest countries of honour at this year’s CIIE, which is expected to strengthen South Africa’s economic ties with China.
Previously, the company mainly focused on the African market. However, Africa’s overall market size and consumer demand are limited. Therefore, the company decided to take its first step beyond Africa by participating in the CIIE. “The expo has built a broad platform for us foreign enterprises to enter the Chinese market. It is also a large platform for global companies to learn from each other’s strengths and complement each other’s resources,” Raymond Macheli, head of the business department at Lesira-Teq, told ChinAfrica.
South Africa was one of the five guest countries of honour at this year’s CIIE, which is expected to strengthen South Africa’s economic ties with China.
“The CIIE is a great platform for companies from diverse countries to showcase their products and services and engage in one-on-one meetings with manufacturers,” said Zanele Carol Sanni, chief director of export promotion and marketing at the Department of Trade and Industry of South Africa.
Guest of honour
South Africa’s booth was one of the most attractive at the expo. In the pavilion, a wide range of companies from diverse sectors, including medical equipment, clothing and textiles, cosmetics, metals, mining and engineering services, manufacturing as well as aerospace and defence technologies, displayed their products and services.
South African Deputy President Paul Mashatile visited Shanghai to attend the expo this year. At the opening ceremony of the expo on 6 November, he said that the CIIE allows companies worldwide to display their products and services and expand their network of partnerships.
“I am pleased to share that our two governments will continue to explore various avenues of strengthening and deepening our longstanding economic, trade and people-to-people relations. We are confident that we are making products that will be able to advance our bilateral trade,” he said.
Mashatile said that this year South Africa has optimised the space at the Country Exhibition zone for trade and investments, where 25 South African entities including provincial trade and investment agencies, export councils and manufacturers have received support to showcase their exhibits.
The country has also secured additional space at the Enterprise and Business Exhibition area, where 11 enterprises displayed agricultural and agro-processing products from South Africa.
Substantial benefits
The South Africa wine industry’s presence in China has been growing and so has Chinese investment in South Africa’s wineries. This year, the Wines of South Africa (WOSA), an industry organisation responsible for promoting South African wine exports to key international markets, came to the CIIE to look to further increase its market share in China.
“More than 20 South African wine companies came to participate in the CIIE. The Chinese market presents enormous potential for South African wineries to expand their presence in the country,” said Marcus Ford, Asia market manager at WOSA.
Many Chinese consumers favour South African wines. “Several years ago, I drank wines made in Australia. After more wines from South Africa became available in China, I came to know that South Africa produces some of the best wines because it has good environment to ensure the overall quality of grapes,” Xiao Ran, a Chinese wine lover, told ChinAfrica.
Ford said the CIIE provides opportunities for participating South African wineries to nurture existing relationships and develop new ones in the world’s second-largest economy.
“We have seen significant growth in our market share in China over the past several years, and we look forward to expanding it in the coming years,” he said. Ford said he is optimistic about the wine market in China as the country’s middle class continues to grow.
Western Cape is South Africa’s leading agricultural export province, accounting for almost half of the country’s agricultural exports. In recent years, the CIIE became a platform for the province’s exporters to capitalise on China’s growing demand for quality products.
The Cape Town and Western Cape Tourism, Trade and Investment Promotion Agency (Wesgro) has attended the expo since pre-COVID-19 times. In previous years, the agency received positive feedback from its exporters, who continue to look for Wesgro’s support on attending the expo.
“The expo is a great platform to connect our exporters with potential buyers and investors from Asia,” Thiru Naidoo, senior trade manager at Wesgro, told Xinhua News Agency. This year, the agency supported 10 Western Cape exporters to attend the event and exhibit products such as teas, wines and seafood. Matchmaking platforms such as the CIIE “will be hugely beneficial for our Western Cape exporters” trying to enter the Chinese market, Naidoo said.
CIIE provides opportunities for participating South African wineries to nurture existing relationships and develop new ones in the world’s second largest economy.