Remarks to the Media Conference on the Opening of South Africa’s Pavilion at the Shanghai Expo 2010 on 6 May 2010 by South Africa’s Ambassador to China, His Excellency NN Ntshinga

Ladies & Gentlemen, Media Friends, Your Excellency Consul-General Khumalo, Ambassador Sisa Ngombane, Minister Nkoana-Mashabane, Good Morning

Momentous occasion:  I am delighted to be in Shanghai for the opening of South Africa’s Pavilion at the 2010 Expo.  This Pavilion celebrates and showcases how relations between China and South Africa have developed since we established formal diplomatic relations in 1998.

As just mentioned, today, South Africa is China’s largest trading partner in Africa accounting for around 20% of its trade with the African Continent and the volume of direct investment from China continues to increase.   We believe that Shanghai Expo will provide an excellent platform for strengthening these relationships.

China – South Africa:

Just looking back during the past two years along, we can see that South Africa has proved an attractive investment based for many Chinese companies.  A number of major Chinese companies such as ZTE and Huawei have successfully invested in South Africa and made it their headquarters for Africa. In natural resources, Sinosteel is the largest Chinese investor in South Africa and in 2008 it committed to invest an additional US$ 400 million in Limpopo Province, South Africa. Many Chinese companies are therefore choosing South Africa as a base to enter the African market as well as leverage the existing networks of South African companies for fast access to the continent. Chinese banks have also entered South Africa with significant deals between ICBC and Standard Bank as well as China Construction Bank and Africa's second largest banking group FirstRand Ltd.

The China-Africa Development Fund has also opened an office in South Africa.  This fund was established by China’s Government in order to encourage Chinese companies to invest in Africa and it is currently assessing financing plans for various power and alternative energy related projects in South Africa.

Meanwhile South Africa’s investments in China have also continued to grow with investments by African Rainbow Minerals Ltd, Anglo-American, SAB-Miller, Khumba Resources, Naspers, the Diamond Trading Company (DTC), Sasol and Sappi.

Significance of Shanghai Expo to South Africa: We delighted to have this opportunity to showcase South Africa to China and the importance of Shanghai Expo to South Africa will be demonstrated during the next few months as we welcome many of our senior leaders to China. 

We look forward to welcoming you.  Thank you.