‘Billions’ in Deals Expected from China-South Africa Visit

China maintains trade surpluses with numerous African countries, including South Africa, a situation that analysts say should change as China’s investments spur Africa’s industrial capacity and China opens up its markets to goods produced in Africa. China is South Africa’s largest trading partner.Mr Xi is expected to address a joint press conference with Mr Mugabe after signing economic deals later on Tuesday.

“The state visit by President Xi to South Africa is a very important visit”, said Clayson Monyela, a spokesman for South Africa’s foreign ministry, speaking to VOA News from Pretoria, South Africa’s capital, where President Jacob Zuma is hosting the Chinese president.

“The people of Zimbabwe are overjoyed to host you”, Mugabe told Xi at a state banquet.

As Zuma chairs the African Union, this added weight to the country’s status as a gateway to Africa for the Chinese, he said.

China and Zimbabwe are expected to ink a series of cooperation deals covering such fields as infrastructure construction, investment, financing, culture and wildlife protection. “It will usher in a new era of China-Africa win-win cooperation for common development”. This is only the second time in the 15-year history of FOCAC that the leaders are meeting together; the first being in Beijing, China in 2006. These include deepening cooperation in the areas of infrastructure development, debt relief, industrialization, investment promotion, market access expansion, agriculture, science and technology, health, education, and people-to-people cultural exchanges, among others.

Zimbabwean president Robert Mugabe greeted Mr Xi at the airport, where he inspected a guard of honour. Many African students are annually awarded by China, while many Chinese universities have established relationships with African institutions.

With enthusiastic people singing and dancing, surrounded by local children carrying garlands and bouquets, Chinese guests felt much appreciation to arrive at the hot and shining continent.

China will further promote China-Africa comprehensive cooperative partnership which is characterised by equality, mutual trust, mutual benefit and win-win outcomes, and to continue to firmly support each other on major issues bearing on respective core interests.

South African Investec, a Johannesburg-based investment bank and asset management firm, agreed to work with China Export-Import Bank to enhance export finance, project finance, and the internationalisation of China’s renminbi currency and its use as a settlement currency in trade.

Meanwhile, Zimbabwe has put forward the policy of Look East since 2002, which stands in conformity with China’s policy towards Africa.

“Such initiatives are a clear departure from Beijing’s aversion to military or security intervention in Africa”, said Mr Lyle Morris, an associate at the Rand Corp.