COMMENT
“In the past, Africa
was seen primarily
as a market for sales,
it is now viewed as a
strategic partner.”
have matured and it has begun
outsourcing its basic manufacturing to
lower cost areas elsewhere in Asia and,
increasingly, in Africa.
“When it comes to manufacturing, for
example, Chinese car manufacturers
have already invested substantially in
South Africa – the latest announcement
was in April, when BAIC announced an
R11-billion investment in local assembly
at Coega in the Eastern Cape. This is
merely the most recent example of the
many multimillion-dollar investments in
Africa by Chinese business,” he says.
Haishi adds that at the same
time, China has shifted its focus
from manufacturing cheaply to
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manufacturing quality, and this also
necessitates developing markets with
the appetite for higher quality goods.
“China’s focus on moving into quality
goods and developing more robust
markets that are not dependent
solely on price is driving a massive
readjustment of its relationship with
Africa and South Africa. Whereas, in
the past, Africa was seen primarily as
a market for sales, it is now viewed
as a strategic partner, both as an
expanding market for quality goods
and as a co-manufacturer. This new
approach is visible in the growing
amount of Chinese enterprises within
South Africa, the excellent relationships
between the Chinese and South African
governments, and the multi-faceted
approach of companies like ZTE.”
The telecommunication deficit
Haishi says one of the most critical
infrastructure deficits in South Africa is in
telecommunications, where it has been
playing catchup for many years. “This is
particularly important because a modern
telecommunications infrastructure
is a critical enabler of other forms of
infrastructure; thus, for example, without
an adequate telecommunications
backbone, it will be impossible to
achieve the benefits that will flow
from other infrastructure investments
by implementing such initiatives as
smart cities, safe cities, e-education
INTELLIGENTCIO
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