China-Africa Cooperation: From 'Made in China' to 'Made in Africa'
Updated 13:39, 27-Aug-2018
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As China-Africa trade ties continue to strengthen, some Chinese companies have decided to move their production to the continent. The move has lowered their costs of production, whilst also creating jobs for the local people.
Trade between China and Africa is evolving. For centuries, countless commodities have moved across the seas. China has become Africa's largest trading partner.
Since the turn of this century, diplomatic missions and nation-to-nation agreements have led to a transformational transition from "Made in China" to "Made in Africa".
China is helping facilitate new connections between merchants, renewing infrastructure across the continent, enabling Chinese companies to set down roots in Africa and to grow opportunities for Africans. A home appliance maker and an automaker are among the first.
SUN DALEI EXECUTIVE OF SUPPLY CHAIN DEPT., HISENSE SA "Hisense entered the South African market in 1996 and put its new factory into operation in 2013."
South Africa's city of Atlantis, about 40 kilometers from the coastal city of Cape Town, has struggled with poverty and unemployment. A decision by Hisense in 2010 has helped change the city's status and the company's trajectory in Africa.
ZAVIOUR JAFDHA EMPLOYEE, HISENSE SA MANUFACTURING "I started from 2013 with Chinese technicians and engineers. The Chinese engineers trained me how to do the jobs. So after the Chinese people trained me, I train the local staff inside the Hisense factory."
Localized production has brought Hisense lower costs and growing sales. In 2016, Hisense ranked as the top seller of televisions and refrigerators in South Africa. This in turn created more job opportunities and strengthened ties between Chinese and South Africans.
SOLLY FOURIE HEAD OF ECONOMIC DEV'T AND TOURISM DEPT., WESTERN CAPE GOVERNMENT "Once you give somebody a job, you actually strengthen their whole family because there is income to go around. So we see investment, and particularly Chinese investment as being very important to assist us in addressing our economic challenges that we have in Africa, and in this part of Africa or in any of it."
South Africa has the most advanced economy in Africa. Port Elizabeth, the most strategically important deep water port on the east coast of Africa, is also a traditional industrial stronghold. Its industry took off in earnest in 1999, with the opening of the Coega Development Industrial Zone, where more than 40 local and international companies are now based.
DR. AYANDA VILAKAZI HEAD OF MARKETING, COEGA DEVELOPMENT CORPORATION "We have FAW as one of our investors, which has invested in terms of their Phase I, around 600 million rand, which is going to be good for economy of the Nelson Mandela Bay metro in terms of job creation."
In 1994, FAW became the first Chinese automaker to establish an assembly workshop in Johannesburg."
FAW's sales network in South Africa now includes three FAW-owned dealer shops and 21 independent dealers. Andrew McNaughton has seen a lot of changes since he started selling and servicing FAW trucks.
ANDREW MCNAUGHTON FAW DEALER "It used to be emails to China, then it would take three, four, five or maybe six months before anything would happen to the actual product on the ground. So by the time now, we identify our problem to the time it gets to China, to the time it comes back, to have it fixed, is a lot quicker. The other big change obviously was that the product itself; the quality is starting to improve."
ZHANG CHENG, GENERAL MANAGER SALES & MARKETING, FAW SA "We localized our products after 24 years operation in South Africa. We know what our clients want in South Africa, and we know what kind of product can suit the application in South Africa."
Huajian, China's largest shoemaker, entered Ethiopia in 2012 and established its first factory in the Eastern Industry Zone. Stellar growth has required the company to expand its workforce to over 7,000 employees.
The President of Huajian, Zhang Huarong started his business in Jiangxi Province in China in 1983. Huajian International is now one of the largest shoe manufacturers in the world.
FAYSEL Y. ABEGAZ HR SUPERVISOR, HUAJIAN GROUP "Huajian is the first company to make shoes by only Ethiopian people, in producing and supporting us as a country. So Huajian have a lot of contribution for our country."
As Chinese enterprises increase their presence in Africa, the "Made in China" label is turning into the "Made in Africa" label. Rather than a mere exporter, China is becoming more integrated into the continent, with investment in African exporting manufacturers, infrastructure construction and homegrown African products.