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Foreign and Military Affairs

Southern Africa and China work at expanding trade relations

By Ding Qingfen (China Daily)
Updated: 2011-06-05 08:29
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BEIJING - China is willing to expand imports from southern African nations and encourage Chinese companies to invest in the region, Vice-Premier Wang Qishan said on Saturday.

While there are still many uncertainties with the global economic recovery, China and the Southern African Development Community (SADC) should strengthen their economic cooperation to help both achieve stable growth and advance the global economy, Wang said during the China-SADC Investment and Business Forum in Beijing.

Established in 1980, the SADC consists of 15 nations, including Angola, Namibia, South Africa and Zambia, that cover 33 percent of the area of Africa. The SADC was set up to stimulate trade and investment within the region and implement regional economic integration.

In 2010, China-SADC trade volume reached $61.5 billion, accounting for 48.4 percent of trade between China and Africa. China is now the largest trading partner of the southern African region.

By the end of February, China's investment in the SADC accumulated to $9.9 billion, including $4.98 billion non-financial investment.

"China's launching of its 12th Five-Year Plan (2011-2015) and the SADC's joining the program on enlarging the transportation network in Africa will offer new opportunities for cooperation," Wang said.

"They should enhance the cooperation in trade, investment, finance, energy, resources and infrastructure," he added.

Wang encouraged Chinese enterprises to invest in southern Africa and help the region.

Namibian President Hifikepunye Pohamba, the chairman of the SADC, agreed. "The message that I want to send is that the SADC is open for business, and we look forward to you (Chinese companies) joining us to boost the development of our region. We encourage investment from China," Pohamba said at the forum.

Currently, China's investment in the region mainly covers infrastructure, mining, energy and agriculture, he said.

In 2009, the combined GDP of the SADC member nations was $465 billion, accounting for 32 percent of the total in Africa. In 2008, the SADC free-trade area was established to enhance trade and investment within the region.

SADC member nations said China and Chinese companies are important for the economic growth of the region.

"Chinese investment is welcomed in infrastructure, agriculture, manufacturing and clean energy in Zambia," said Joyce Musenge, ambassador extraordinary and plenipotentiary of the Zambian embassy in China.

China's willingness to "transfer technology is very important", she added.

According to Bheki W.J. Langa, ambassador of the South African embassy in China, "China and the SADC need each other more than before, but partnership is very important for the sustainability of economic relations between them."

It's not only about imports and exports, but the bilateral cooperation needs to create more jobs and manufacturing projects, he said.

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