Ripe for Investment

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  infrastructure plays a central role in improving competitiveness, facilitating domestic and international trade, and enhancing the African continent’s integration into the global economy, according to Gratitude Bulelani Magwanishe, South Africa’s Deputy Minister of Public Enterprises. Magwanishe was speaking at the Opportunities for Investment Cooperation in South Africa forum on October 30, part of the 2013 COIFAIR - the World’s Investment Summit.
  Eight South African state owned enterprises(SOEs) in areas of energy, telecoms, mining, transport and logistics attended the forum and had one-onone match meetings with their Chinese counterparts to discuss possible future cooperation.
  Over 400 people attended the forum, which included government officials, UN organization officials, economists, representatives from Chinese and African SOEs, financial institutions, chambers of commerce and research institutions. They shared their views with ChinAfrica about infrastructure investment in Africa and how to build sustainable ChinaAfrica economic partnerships for mutual growth and development in the future. Excerpts follow:
   Gratitude Bulelani Magwanishe
  south Africa’s Deputy Minister of Public enterprises
  Investment in infrastructure will be a key driver in enabling Africa’s growth. As Africans we appreciate the Chinese approach to Africa because we believe it is both pragmatic and flexible. China is on a learning curve as to how best to build sustainable relationships with African states to secure its strategic economic interests.
  We now need to explore how we can develop new models of partnership between Africa and China to ensure that our investment and trade relations have an optimal developmental impact.
  For example, I would like to explore how South African SOEs can play a leading role in building partnerships with key Chinese enterprises who are concerned with building long-term trade and investment relationships with African counterparts.
   Ntlai Mosiah
  Head of Power and infrastructure Advisory in Corporate and investment Banking at south Africa’s standard Bank
  A few South African companies have invested in China in areas of financial services and media. That’s a trend we’d like to see continue, because China is a big market. China’s biggest advantage is capital, while America and European countries are short of funds. Power and infrastructure are the fields [in Africa] which require a lot of funds. China has about $2 trillion capital available for investment. The technology is probably a little cheaper than what you get from Europe. Another big advantage of China is that it has a massive demand for goods and services. More and more people are coming out of poverty and demanding goods and services. That kind of market is very attractive for South Africa to do business in China. Capital, job creation, skills development and localization are what we South Africans are looking for from Chinese investment.    Jacky Molisane
  Deputy Director General of strategic Partnerships at south Africa’s Department of Public enterprises
  We want to strengthen our relationship with China and Chinese companies, to let them know what the expectations are, and to see what are available there in terms of partnering, be it funding or skills transfer. We also want to showcase the capabilities of our SOEs. South Africa is so rich in terms of our SOEs - from energy, telecoms, mining, transport and logistics. It’s time to showcase the capabilities of our SOEs, and also make them meet their counterparts in China, so that they can begin to share information.
  It’s also important for Chinese companies as well to know what we want as South Africans, what we also want from Chinese companies. We want skills transfer, technology know-how and access to capital at a very favorable rate obviously. It’s through investment in infrastructure that we believe South Africans will be able to deal with the issues of poverty, unemployment and inequality.
   Adegboyega Ajani
  industrial Development Officer of united nations industrial Development Organization
  First, Chinese investors in Africa should find a credible partner in Africa who knows the policies, who can assist you and advise you locally on the social and cultural issues.
  Second, Chinese investors need to learn more about African culture, the way they relate to local people and the management style, so that they can get support from the local staff. If you know more about African culture, you will understand how to deal with African people, and know more about the market.
  Third, corporate social responsibility (CSR) is also very important. If you work in the local environment, you can provide some support to local schools and hospitals. Chinese companies should also pay attention to the issue of environment. It should not be polluted at all.
   Erica Johnson
  Group executive of enterprise Development of eskom in south Africa
  Energy is a big need in the region, as 14 percent of the people who don’t have electricity are in Sub-Saharan Africa. So we need to systematically develop it [electricity projects]. I think our main intent is to show our seriousness, and that we SOEs are working together, to talk to each other, and to show our connections between each other from projects.
  The focus is firmly on every infrastructure development. We need to quantify job creation, the economic empowerment opportunities and localization opportunities. It’s infrastructure-led growth. It’s also part of the story of Africa. It [Africa] has lagged in infrastructure, especially electricity and logistics. It needs that investment to be able to get to the next level for the private sector, so that anyone can come and invest.   China is also opening opportunities for South Africans to do business here. We’d like to see more South African companies investing in China. It’s a big market.
   Davis Winstone Manyenje
  Head of Operations of AHL Commodities exchange Ltd. in Malawi
  We are looking at big expansion programs, so there is more scope for Chinese investors to come and invest. AHL Commodities Exchange Ltd. itself is trading agricultural products like soybean, sugar beans, cotton, maize, sunflower and tobacco. We are now on a diversification program and that’s the reason we’re looking for interested Chinese investors. We have more resources and more land in Malawi. There are so many other opportunities that are emerging in our market, which can be beneficial for Malawi, China and other investors elsewhere in the world.
   Stonie Chadzunda
  Finance executive of Auction Holdings Ltd. in Malawi
  The main aim is to get Chinese investors interested in the Malawi crop farming industry, to invest there and to expand capacity, with a view to increase trade between Malawi and China, and the rest of the world. We think there are a lot of opportunities [in Malawi] to excite Chinese investors. Africa, including Malawi, is growing to expand its economic base. Investment gets as good of returns in our country as any business [can] expect. There are already many Chinese investors in Malawi, but there is still a lot of room for other players to come in.
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