The Sino-SA Industrial Capacity Cooperation Forum is held in Cape Town, South Africa on August 24th, 2015. (Picture: People’s Daily Online / Zhang Jiexian)

Cape Town, August 28 (People’s Daily Online) - “The world economy recovery still remains fragile this year, but Africa economy grows steadily. It is expected to reach 4.5% in 2015, rose to 5% in 2016. Global investors have good prospects for Africa’s economy development. In 2014, the Africa continent attracted foreign investment $87 billion, up 65% year on year. But its manufacturing industry doesn’t contribute as it should to its GDP.” said Rong Yansong, the Chinese commercial counselor in South Africa when he addressed the Sino-SA Industrial Capacity Cooperation Forum on Monday.

More than 50 entrepreneurs from China and South Africa gathered in Cape Town for the Forum, to seek opportunities to collaborate with each other, and discuss industrial capacity cooperation between the two countries.

Manufacturing in Africa

Rong noted that Sub-Saharan Africa's industrial output value accounted for only 0.7% of global gross industrial output value, most African countries manufacturing industry's contribution to GDP is lower than 15%, some even less than 5%. Less than 10% of African workers are engaged in the manufacturing industry.

“It is really high time for China-Africa production capacity cooperation, to meet the request for the aspirations of the development of national industries and creation of jobs by a lot of Africa countries. ”said Rong.

According to analysis by China-Africa Development Fund (CAD Fund), Africa’s manufacturing sector is to contribute around $700 billion to the economy by 2025, which can lead to prosperous economy.

As CAD Fund pointed out at the Forum, manufacturing output has contributed about 15% to South Africa’s GDP on average from 1994 to 2014. The performance of the South African economy remains closely tied to that of its manufacturing sector. However, Manufacturing production decreased by 0.4% in June 2015 compared with June 2014.

Chinese commercial counselor in SA Mr.Rong Yansong(L1), Vice-Prsident of CAD Fund Mr. Yang Aiwu(L2), Head of Investment Promotion of the DTI Mr. Yunus Hoosen, attend the Sino-SA Industrial Capacity Cooperation Forum in Cape Town, South Africa on August 24th, 2015. (Picture: People’s Daily Online / Zhang Jiexian)

Unleashing new business opportunities

Being the largest trading partner, export market and import source of SA, China is speeding up its economic structure adjustment and shift of the growth model, which brings about great opportunities of production capacity cooperation between China and Africa.

According to Chinese Embassy’s statistics, the local staff employed by 120 larger-medium scale Chinese enterprises in South Africa is more than 20000, representing about 94% of total employees. The Chinese investment mainly covered the financial, infrastructure construction, mining, manufacturing, logistics, information technology, media and other services.

In March, the last one of the 95 locomotives to be exported to South Africa launched off assembly line in Pretoria, the South African government held grand ceremonies for them respectively. President Zuma personally attended and delivered an important speech, highly praised Chinese enterprises for the contribution to industrial development of South Africa, further emphasized that the South African government is eager to develop national industry, comprehensive revitalization of the domestic economy.

Chinese commercial counselor in SA Mr.Rong Yansong addresses the Sino-SA Industrial Capacity Cooperation Forum in Cape Town, South Africa on August 24th, 2015. (Picture: People’s Daily Online / Zhang Jiexian)

Growth Opportunities

“China-Africa production capacity cooperation can realize the mutual benefit and win-win results of Chinese enterprises and African countries.” said Rong at the Forum, “As long as we increase the common interests with African countries, actively participate in local economic construction, help promote local industrialization level and benefit the local people's livelihood, I believe that we will receive positive response from African countries.”

As Rong pointed out, the Chinese investment in South Africa is transforming from the mining sector to the field of manufacturing sector in recent years, so as to help South Africa speed up its re-industrialization process.

South Africa’s Department of Trade and Investment and Investment Development Center also presented at the forum. Yunus Hoosen, the head of Investment Promotion at the DTI, briefed participants on the investment environment, business opportunities and government incentives to attract foreign investment in SA, calling for more Chinese businesses to be located in SA.