Leading the way: South Africa is a pioneer of the development the technology utilised by the PetroSA gas-to-liquids refinery in Mossel Bay.
South Africa’s Public Enterprises Minister, Malusi Gigaba, who recently visited London to increase support for financing in State-Owned Companies (SOEs), was advised by CEOs of leading Chinese companies that the emerging economic powerhouse was looking to South Africa as an entry point into the developing African market.
With the billions of dollars China has to invest, such a move would benefit both nations. “The message we have got from the Chinese SOEs, especially, was that they view South Africa as the gateway to Africa. They have billions of dollars available to invest and they are looking at South Africa and Africa in general very keenly,” Gigaba told allafrica.com. “They believe South Africa is a stable and welcoming entry point.”
Recent fundraising initiatives have been successful, with companies such as Eskom and Transnet having obtained money from markets, foreign investments and global lenders. South Africa is also developing plans to invest home funds in domestic infrastructure while increasing its own investments in the wider continent, especially in aviation, infrastructure and logistics. Subsequently Gigaba has called for South African companies to do more to develop their understanding of cultural and traditional business practices that differ from their own.
South Africa intends to invest in domestic infrastructure.
South Africa is the most recent addition to the BRICS group of emerging economies that also encompasses Brazil, Russia, India and China. The country is set to become one of the main players in the sub-Saharan free trade area, which will reach 500 million people with the integration of the Southern African Development Community, Common Market for Eastern and Southern Africa and the Eastern African Community.
Gigaba also said the expects BRICS to develop a strong, global political voice as well as becoming an economic force.