Why the China-Africa summit matters, for SA and the continent
Africa specialist Rutendo Hwindingwi has a roundup of the top business stories from the continent.
China President Xi Jinping and South African President Cyril Ramaphosa at the start of the Forum on China-Africa Cooperation Summit (FOCAC), 2 September 2024. Picture: GCIS
President Cyril Ramaphosa has met with China's Xi Jinping on his state visit ahead of the Forum on China-Africa Cooperation Summit (FOCAC).
FOCAC 2024 takes place in Beijing from 4 - 6 September.
RELATED: Ramaphosa in China for second state visit to solidify ties, talk trade
The South African delegation includes Agriculture Minister John Steenhuisen, who's already announced agreements that he says are game changers for the sector.
The summit will provide a framework for navigating the 'evolving China-Africa comprehensive strategic partnership in the post-COVID era' says the South African Institute of International Affairs (SAIIA).
On The Money Show, Africa business specialist Rutendo Hwindingwi gives his perspective on the continent having to grow trade with China.
Today, I’m in China with the President, where I signed two major protocols on inspection, quarantine, sanitary requirements for dairy products, and a protocol for greasy wool. Also signing a MOU to fight foot and mouth disease. These are game changers for SA’s Agri sector. 🇿🇦🇨🇳 pic.twitter.com/v4NzMl2Y41
— John Steenhuisen MP (@jsteenhuisen) September 2, 2024
Good morning, South Africa. I had a productive meeting with my counterpart in China, Minister Han Jun. We agreed to boost exports, enhance biosecurity, and relaunch an agricultural science student exchange program. 🇿🇦🇨🇳 pic.twitter.com/GQJTbKsCEA
— John Steenhuisen MP (@jsteenhuisen) September 3, 2024
While similar African conferences happen around the world from the US to Europe, this one in China plays 'a key role'.
Focusing on geoeconomics as opposed to the popular talking point of geopolitics, Hwindingwi cites growing trade between the US and China, still the world's biggest economies.
"From the year 2000 it increased about five-fold... as of last year, per annum it was around $683 billion."
Rutendo Hwindingwi, Founding Director - Tribe Africa Advisory
He notes that the main trade items are manufactured products like computers and automobiles, for which raw materials are needed.
'But where do they get the raw materials from?'
The answer of course, is Africa.
"Knowing the geopolitics between Africa and the US, the trade over the last 20-24 years has grown from plus minus $11 billion to about $72 billion per annum. Whereas for China, its about three or four times that."
"The point is, for Africa to rise up the value chain in terms of global economics, it has to leverage off the second biggest economy in the world which is China."
"And one of the key ways of doing that is to go and attack the discussion that's happening at this conference, from a trade bloc perspective."
Rutendo Hwindingwi, Founding Director - Tribe Africa Advisory
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