S. African vice-president encourages investment, signs deals with China

BEIJING / SHANGHAI - South Africa will "wholeheartedly" support Chinese investment and encourage Chinese firms to continue seeking partners there, visiting South Africa Deputy-President Kgalema Motlanthe said on Wednesday.

The two developing countries also signed agreements on mineral resources, geology and financial cooperation as Motlanthe arrived in Beijing on Wednesday afternoon to meet Vice-President Xi Jinping.

Xi said China is willing to work together with South Africa to make their strategic relationship a model of partnership between developing countries.

Xi also said the two countries should strengthen cooperation under multilateral mechanisms including the BRICS, G20 and the UN.

South Africa joined Brazil, Russia, India and China this year in a bloc of emerging economies known as BRICS. China and South Africa are members of the UN Security Council members this year.

Motlanthe told Xi that South Africa wants to expand cooperation with China in sectors including aviation, mineral resources, investment and the economy.

Details of the agreements signed on Wednesday on mineral resources, geology and financial sectors were not released.

China became South Africa's largest trading partner in 2009.

Speaking in a morning address at China Executive Leadership Academy Pudong in Shanghai, Motlanthe touted China's contribution to South Africa's development in the past decade.

"Africa has grown well in the past 10 years, and we recognize China's contribution made both through direct foreign investment and in support of infrastructure development programs," Motlanthe said.

He noted that despite the progress, Africa still has a massive infrastructure gap, with inadequate and unreliable energy being Africa's most acute problem, which holds back investment and improvement in the quality of life.

Given its abundant resources, "what Africa solely needs at the moment is massive investment in infrastructure to unlock the development potential. In this regard, a strategic partner like China can play a leading role in benefiting people in both countries", he said.

Motlanthe said that diversification of production in Africa is critical.

"Therefore South Africa will wholeheartedly support Chinese investment in the productive sector and encourage Chinese companies to continue seeking suitable partners in the country."

According to Yang Lihua, director of the Center of Southern African Studies at the Chinese Academy of Social Sciences, cooperation between the two countries has huge potential, as the two have been complementary in their economic structure.

"Also, financial cooperation will make financing easier for Chinese firms investing in South Africa. It will also help Chinese finance firms expand their business in Africa," Yang said.

Yang also warned that as the two countries have differences in their political, economic and legal practices, it is crucial for Chinese firms to learn more about the local customs before conducting business there to avoid potential problems.

Zhao Shengnan contributed to this story.

China Daily