The international financial crisis has Beijing South Africa. Relations between the two countries were intensified during the first half of 2009. China is now the biggest customer of the Nation rainbow sky. A situation that is confirmed particularly in the mining sector.
When in late 2008, the European producers of iron began to reduce their control, most of the 4300 employees of the Sishen mine, which operates the ore in the Province of South African Northern Cape, were legitimately worried about their jobs. Ten months later, this anxiety is a distant memory.
During this period, an increase of 35% of the insatiable demand of Chinese industry has offset the decline of 50% of that of Europe, Japan and South Korea, victims of the shock of the recession. Leaders of Kumba Iron Ore, a subsidiary of Anglo American, which owns the mine, now considering its development.
For the trade unionist Eddie Majadibodu, spokesman for the miners, this new contrast sharply with the situation of a sector, gained over several months by the slump in the image of the platinum industry where thousands of jobs have been destroyed. "We were concerned, but the company is doing well now," he says.
largest importer of South African products
Kumba is not the only company to benefit from better relations between the South Africa and China. During the first half of 2009 while South African exports to Germany, Britain, Japan and the United States plunged, China has also increased its orders of chrome and other raw materials.
latest sign of intensified exchanges, Beijing is now the number one destination for South African exports. There another year, not the Middle Kingdom stood at fifth. This new status as the leading partner is also not unconnected with the growing interest from China for Africa. Industries such as textiles or electronics are all opportunities for the establishment of South Africa. (...)
Strong presence
According to bankers, Chinese investors should take in the coming months for investments in local mines especially those who like the under-capitalized junior suffered from the sharp drop in their orders last year.
"There are more and more surveys. We receive one to two potential investors a week, "said a banker in Johannesburg. More generally, communications and transport infrastructure make South Africa an attractive country to host the Chinese subsidiaries of groups operating in the region. One of the largest commercial recently opened an office in the city of Cape Town to support a project worth several million dollars in Angola.
For other observers, however, the relationship between the two countries will not grow as fast as one might believe. Some bankers point to the logistical problems and difficulties of Chinese companies to finance themselves outside their country.
In addition, China has already met with resistance both political and cultural impact on the continent. And there are great opportunities for that to happen again. Three years ago, former President Thabo Mbeki had warned against the character "colonialist" of this relationship while encouraging its government to impose temporarily in 2007 and 2008, quotas on imports of Chinese textiles. "They are not always welcomed open arms, "quips a banker.
In the short term, Beijing's dominance in the South African economy is expected to weaken with the restart of the European economy. But these links do peuvebnt only strengthen the long term.
Source: Financial Times and jeuneafrique.com
