Chinese firms sign 87 agreements with their SA counterparts
THE Coega Development Corporation (CDC), operator of the Coega Special Economic Zone (SEZ) in the Eastern Cape, has welcomed a signing ceremony of 87 co-operation agreements between South Africa and the People’s Republic of China on Friday.
Some 40 major Chinese companies signed 87 co-operation agreements with South African counterparts at the Cape Town International Convention Centre.
The trade agreements flow from consensus reached by President Cyril Ramaphosa and Chinese President Xi Jinping during the 2018 Forum on China-Africa Co-operation (Focac) Beijing Summit.
According to Dr Ayanda Vilakazi, the CDC’s head of marketing, brand and communication and analyst, China remains one of South Africa’s strongest strategic trade, economic and investment partners.
“Over the past 10 years, China has been South Africa’s largest trading partner while South Africa, on the other hand, is China’s largest trading partner in Africa.
“In 2018, two-way trade between the countries totalled approximately R627 billion – a 27-fold increase since the establishment of diplomatic ties between South Africa and China.”
Vilakazi believes the trade agreements will further stimulate trade between China and South Africa.
“In general, Focac has been designed to reduce costs and increase the volume of trade between South Africa and China. It will also stimulate infrastructure development and support Africa in terms of regional and continental integration.
“In short, these co-operation agreements will solidify and deepen trade and economic relations between our two countries.”
Vilakazi noted that: “Foreign direct investment from China to South Africa reached R360bn in accumulative terms and it has been estimated that in excess of 400000 jobs have been created for South Africa.”
acknowledge remains unforgettable.
Mr President, as you opened your State of the Nation Address, you indeed started off on an important note when you reminded us all about the notorious Natives Land Act of 1913 and the “grave injustice” that it wrought as the decades rolled by thereafter.
As a matter of fact, we expected you to continue in the same vein by recollecting in, at least, a few lines the inhumane apartheid state’s atrocities; a series of reprehensible acts that we all know wreaked havoc among our communities and that have severely wounded us all.
He said two of the most important strategic policy directions of Beijing were enshrined in Focac and the Belt and Road initiative (BRI).
China’s BRI is a strategic initiative to improve connectivity and co-operation on a transcontinental scale.
“In relation to BRI, a recent World Bank study that looked at transportation corridors across Africa, Asian countries and Europe revealed that China’s BRI initiative could boost trade in BRI corridor countries with 9.7%, and global trade with 6.2%.
“In particular, South Africa’s special economic zones along the Indian Ocean coast are prime locations for Chinese foreign direct investment and economic and industrial activity, because of their proximity to the BRI corridors.
“They provide access to China’s 21st century maritime ‘silk’ road, comprising an emphasis on Africa, and access to the markets of Eurasia through the Middle East.
“There has been strong focus on
the system now.
The following rankles:
● As an English Home Language FET educator, it was and still is extremely frustrating to receive learners in Grade 10 who could barely spell, write coherently or even speak proper English.
● Also, being a Mathematics, Physical Science and Technology educator, it irks me no end to see the pathetic results at the end of each term. Despite not teaching these subjects, I was interested and still am, to see the children’s performance here. I tutor these PRIVATELY because parents fear that their children would fail.
● As a Music teacher, I am perturbed at how music, art, etc were first removed from the curriculum, then reintroduced as CREATIVE ARTS. This, at many schools, is being treated as a non-entity – learners are literally given marks without doing anything.
● Educators bully educators, principals victimise and harass, catalytic investment projects by Chinese firms in the Eastern Cape, for example.”
The single largest automotive investment in Africa in the last 40 years is by a Global Fortune 500 automotive manufacturer three years ago in the Coega Special Economic Zone, with the BAIC SA project.
The investment is valued at $800m (R11.4bn) – $150m for Stage I.
Construction is under way, creating in excess of 1 800 jobs, and is expected to be operational by the end of this year and to create another 2 300 jobs.
The project was also driven by BAIC Group’s internationalisation strategy. During the milestone celebrations in July last year, Ramaphosa congratulated the Coega SEZ when he said: “This is a real milestone and we would like to congratulate you all at Coega and applaud you for the excellent work you have achieved.”
Another sizeable Chinese investment is First Automotive Works (FAW), SA. The FAW SA investment of
also bully, contract educators into marking/assessing lazy permanent educators’ tasks. The threat of a contract NOT being renewed is held over them. In most cases, the victims remain silent because they have families to support. There is no recourse for these educators, for in most if not all cases, they do not belong to a union.
● Educators’ safety is of grave concern. Lately, attacks on educators have escalated, resulting in death – most of them are learner related.
● Learner arrogance towards educators is on the rise because they know that there is a long and tedious process before they can be either suspended or expelled. Similarly, their attitude towards their education is a cause for concern simply because they know that they CANNOT or rather MAY NOT fail.
I can mention a plethora of qualms that I have, but it will fall on deaf ears. Do you understand the ramifications of your ministry’s decisions? Do you EVER consult with those at grassroots level to gauge whether what you have decided to implement, is beneficial to our learners?
‘Til now, I am of the opinion that you and your ministry have failed our children. It is time that you accept responsibility for your decisions. $50m was a welcome development by Coega in 2012; an assembly plant opened by then-president Jacob Zuma in 2015.
FAW SA saw its 4000th truck off the assembly line at the end of 2018.
Vilakazi said determinants that drove Chinese investment into South Africa were factors such as labour affordability, competitiveness of the economy, political and policy stability, and ease of cross-border trade.
Commenting on the China-US trade war, Vilakazi said: “It’s a difficult situation, not only for the US and China.
“We hope resolutions can be reached swiftly between the two countries as trade wars affect all the interlocking chains or countries of a globalised economy.”
Vilakazi noted that foreign currency reserves of China were sitting in excess of $3trillion, and US foreign currency reserves stood at $120bn. | I WAS encouraged to see Thoko Didiza being re-appointed to lead the Department of Agriculture and Land Reform. The president alluded during Sona to the agricultural industry having the potential to create jobs and increase revenue, which will lead to the eradication of poverty.
Without diverting attention from land redistribution, the department is also steadfast in improving the lives of farm dwellers and labour tenants through legislation like the Extension of Security of Tenure Act.
The act is used by the department as a shield to protect farm occupiers and farmworkers by educating them about their rights and responsibilities when facing evictions from landowners. Through the act, the department is able to arbitrate on behalf of distressed families that seek to access burial sites of their family members on farms which are privately owned.
I will be glad if the department can target the youth residing on farms with their outreach programmes by informing them about the act. This will enable them to fend for themselves and uphold their families’ dignity if facing evictions.