Trade and investment between China and South Africa remained on a positive growth trajectory, Standard Bank CEO Sim Tshabalala said in a recent address marking the tenth anniversary of the strategic partnership between Standard Bank and the Industrial & Commercial Bank of China (ICBC) in Johannesburg.
He pointed out that, as China moved up the productive value chain, there were opportunities for the manufacturing capability to be displaced in China and move to South Africa.
“Currently, South Africa exports more than it imports from China, so the terms of trade are in favour of South Africa. “We should discuss how to improve the manufacturing capacity so that it contributes to more jobs and better relations [between] China and South Africa,” he said.
He added that the Brazil, Russia, India, China and South Africa grouping provided South Africa with the opportunity to have important conversations with China about improving the manufacturing capacity of South Africa, and put it in a position to take advantage of the Fourth Industrial Revolution.
Tshabalala noted that tourism from China to South Africa continued to improve and that Chinese visitors received benefits from using cards issued by Standard Bank and the ICBC, and vice versa.
“We have set up the Africa–China centre in downtown Johannesburg, where we will facilitate the movement of people and capital between Chinese corporates and South Africa,” he said.
Meanwhile, he noted that the African continent’s population was becoming younger, healthier and wealthier, with consumers generating greater investment returns.
“The fastest-growing countries on the African continent are those that have introduced policies that [make it easy to do] business, cut red tape and have rational and clear tax regimes,” he said, adding that this was especially true in East African countries like Kenya, Ethiopia, Tanzania and Uganda.
“It is interesting to see that it is not just countries . . . endowed with minerals that are performing,” he said.