Intelligent CIO Africa Issue 09 | Page 23

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 www.intelligentcio.com 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 23