Jul 06, 2012
Joburg develops city ties with ShenzhenBack
Johannesburg|Shenzhen|IBM|Africa|China|India|South Africa|USD|Communication Technology|Energy|Finance|Gross Domestic Product|High-tech Hub|Printing|Li Jiangning|Reginald Pholo|Communication Technology
© Reuse this
City of Johannesburg director of trade and investment Reginald Pholo says the two cities are the economic hubs of their respective countries.
“We are collaborating with Shenzhen to see how they manage special economic zones to improve these in Johannesburg,” he states.
“Johannesburg provides very lucrative business opportunities for Shenzhen and South Africa is our largest export country. We plan to extend services between the two cities and make the relationship more dynamic,” states China consul general Li Jiangning.
Shenzhen has a gross domestic product (GDP) of $85-million per square kilo- metre. The city has a modern industrial system, which features a high aggregate value of the city’s high-tech, finance, logistics and culture industries. These account for more than 60% of its GDP.
Shenzhen is also the high-tech hub of China, with bioscience, software, and new energy, information and communication technology. These industries’ output value increased by 38% last year.
Jiangning notes that Shenzhen is home to many traditional industries with strong growth momentum, such as garments, jewellery, timepieces, furniture, leather, arts and crafts, printing and toys.
“These products enjoy high market shares in China and abroad,” he says.
Shenzhen is an important base for manufacturing and export trade in China, offering global consumers diverse purchasing choices. Multinationals such as IBM, B&Q (previously known as Block & Quayle) and Metro have set up procurement centres in the city.
The city’s export volume was $245-billion in 2011 and its import volume exceeded $168-billion.
Financial institution KPMG reports that, according to forecasters, the African economy is expected to increase by 5% in the next 18 months and its GDP is likely to hit $2.6-trillion by 2020.
The continent has the fastest-expanding labour force in the world as there are more than 500-million people of working age and it is expected to be about 1.1-billion by 2040, which is more than China’s or India’s.
KPMG has identified three main areas of opportunity in Africa, namely infrastructure, resources and consumer demand. Rapid urbanisation demands that governments and cities become globally competitive and the biggest requirements are power, transportation, hospitals and schools.
The current expenditure on infrastructure is half of what it should be, so there is ample opportunity for the private sector to invest.
Consumer demand for Africa’s mining and agricultural resources is increasing. In 2000, there were 11-million cellphone users but today there are 400-million.
Pholo says Johannesburg will bene- fit from its collaborations with Shenzhen and the two cities will become leading trade partners.
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines
Other Economy News
Recent Research Reports
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 Report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
This Week's Magazine
Creamer Media’s Electricity 2014 report provides insight into South Africa’s electricity generation, exploring the issues of State-owned power utility Eskom's generated power, coal supplies, electricity tariffs and demand-focused initiatives, as well as the...
This month’s report includes details of junior miner Papillon Resources’ mining permit for its flagship Fekola gold project, in Mali; the Waterberg Coal Company’s feasibility on the development of an opencast mine, in Limpopo, to produce ten-million tonnes a...
A structured approach, wherein managers personally engage at each level of the project, is necessary to mitigate delays to the workflow on mega construction projects, says State-owned Eskom Kusile power station projects GM Abram Masango. The 4 800 MW Kusile power...
Construction of transmission lines to evacuate power from a regional hydroelectric project in East Africa, which was hanging on the balance following the withdrawal of financing by key partners, is now back on track. After six months of uncertainty, the African...
Three Memorandums of Understanding (MoUs) were signed between South African and Malaysian companies at the Malaysian High Commission in Pretoria on Friday. These MoUs are part of the indirect offsets programme South Africa is providing in return for Malaysia’s...