Jul 06, 2012
Joburg develops city ties with ShenzhenBack
Johannesburg|Shenzhen|Africa|Aggregate|IBM|Industrial|Mining|Resources|System|Africa|China|India|South Africa|USD|Communication Technology|Energy|Finance|Gross Domestic Product|High-tech Hub|Logistics|Manufacturing|Printing|Products|Services|Infrastructure|Li Jiangning|Power|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 (150 word limit)
Other Economy News
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 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 road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
This Week's Magazine
Three-dimensional (3D) printers being sold in South Africa by electronics distributor Rectron currently print in two types of plastic, but have a clear upgrade path over the next five years to eventually print in wood, ceramics and metal-alloy materials, says Rectron...
The world’s two dominant commercial aircraft manufacturers, Airbus of Europe and Boeing of the US, both recently announced that they had made record aircraft deliveries in 2014. Boeing set a global record for the industry with 723 commercial aircraft delivered, while...
The Western Cape is shifting further into the renewable-energy space with the official opening of a factory specialising in solar inverters, a key component of solar photovoltaic (PV) plants. The investment in the manufacturing facility in Cape Town aims to boost the...
Business Leadership South Africa (BLSA) last month welcomed Cabinet’s establishment of a technical team war room to undertake various interventions to improve electricity supply security over the short- and medium-term, but added that the private sector also had a...
Despite a rapid rise in mobile connections and the economic and social benefits of such connectivity, more than half of the world ended 2014 unconnected. For this reason, industry commentators believe the biggest impact of mobile technology is still to come –...