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PORTFOLIO COMMITTEE BRIEFING ON THE ROLE OF CHINA IN AFRICA IN THE

CONTEXT OF THE FORUM ON CHINA AFRICA COOPERATION (FOCAC)

Wednesday 5 Sept 2007By Ambassador JM Matjila

Deputy Director GeneralAsia & Middle East

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The Beijing Action PlanThe FOCAC Summit adopted the sector-specific Beijing Action Plan (2007-2009). President Hu Jintao informed the African leaders in Beijing that China would in the next three years:

• Double 2006 development assistance to Africa by 2009; • Provide preferential credit to Africa worth US$5 billion; • Establish a US$5 billion development fund to encourage

Chinese companies to invest in Africa; • Cancel all interest-free government debt owed to China by

Africa's highly indebted and least developed countries that have diplomatic relations with China;

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The Beijing Action Plan- continued

• Radically open up the Chinese market to products from Africa's least developed countries by removing all tariffs on 440 products;

• Help train at least 15,000 African professionals, provide general scholarships for 4,000 African students by 2009 to study in China, build rural schools in Africa, deploy agricultural experts in Africa, and open special agricultural technology centres in Africa; and

• Help through development of African health infrastructure and the provision of drugs, to intensify Africa's fight to defeat the malaria pandemic.

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FOCAC Political Consultation

1. The FOCAC Beijing Summit agreed to set up a mechanism of regular political dialogue between Foreign Ministers within the FOCAC framework

2. This political consultation is to be held during every alternate year in which a FOCAC Ministerial Conference is not held.

3. The 1st Political Consultation of the Chinese and African Foreign Ministers take place in New York, on the sidelines of the 62nd Session of the UN General Assembly. 

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The purpose and modalities of the FOCAC political consultation

1. The meeting will be chaired by Egypt, in its capacity as Chair of the 4th Ministerial Conference of the Forum on China-Africa Cooperation (FOCAC) to be held in 2008.

2. The purpose of the Political Consultation is to exchange views on major issues of common interest and review implementation of the FOCAC Beijing Action Plan (2007 – 2009).

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Progress report on implementation of the Beijing Action Plan

1. Agreements• More than 70 Agreements and Memoranda of Understanding (MoU’s)

were signed between China and African states within the areas of cooperation envisaged by the FOCAC Beijing Action Plan (2007 – 2009).

• Bilateral assistance agreements were signed with 44 African countries. 2. Exchange of Visits• Chinese leaders including President Hu Jintao, Foreign Minister Li

Zhaoxing visited more than 15 African countries during the first half of 2007.

• A number of African delegations visited China to follow up on the implementation of the FOCAC Plan of Action.

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Progress report on implementation of Beijing Action Plan - continued

• 6 delegations from the Chinese Ministry of Commerce visited 15 African countries (including South Africa) to explore Africa’s priorities regarding the FOCAC projected economic targets,

• 5 working groups visited 14 African countries to enhance cooperation in the field of Human Development,

• Another 11 working Groups visited 24 African countries to initiate the preliminary phases to establish aid hospitals and anti-Malaria centres.

3. Building Institutions• The establishment of the first of the 10 agreed Agricultural

Development Centres, • Establishment of the first of the 30 agreed anti-Malaria centres• Laying the foundations of “The African Union’s Conference Centre” in

Addis Ababa on the 25th of May to be completed by year 2010.

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Progress report on implementation of Beijing Action Plan - continued

4. Loans/Credits• The signing of “grants agreements” with 17 African countries, and the plans to

initially provide 20 African countries with preferential loans to finance 30 selected development projects with a total of 300 million USD, with agreements already signed with five countries, and other plans to initially provide Africa with 200 million USD of preferential export credit.

• The official registration of the Sino-African Development Fund with an initial capital of US$ 1 billion, at the end of July 2007.

• The exchange of documents with 25 African Countries to increase the number of zero-tariff Chinese imported commodities from Africa.

• Enhancing cooperation in the financial field as with the AFDB annual meeting held in Shanghai from 16/5 to 17/5/2007 where nearly 2500 representatives from 77 member countries, the World Bank and the IMF attended. The meeting focused on the alleviation of poverty and enhancing development in Africa.

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Progress report on implementation of Beijing Action Plan - continued

Training/Skills Development• Convening of 26 training courses by China which provided high level

training in various vital fields to almost 700 trainees and the plan to train another 5000 trainees during the rest of 2007.

• Plans to send 100 high level agriculture experts to 34 African countries, 45 of whom are scheduled to be sent during the rest of this year.

• Plans to send 114 youth volunteers to 12 African countries.• The exchange of documents with 16 African countries to establish 36

schools, in the framework of the plan to establish 100 schools in rural and least developed areas in Africa before the end of 2009.

• Plans to increase the number of scholarships provided to African students by 700 more this year and next year, and by 600 more by 2009.

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Proposed issues for discussion at the political consultation

1. Cooperation in Disaster Reduction in Africa in close coordination with the ISDR (United Nations Secretariat on Disaster Reduction and Disaster Control), the OCHA (Department for Disaster Control and Disaster Reduction of the UN Office on Coordination of Humanitarian Assistance) and the ICDO (International Civil Defence Organisation).

2. Cooperation in Migration, Refugees and IDPs in close coordination with the UNHCR and the IOM (International Organisation for Migration).

3. Cooperation in fighting malaria and other epidemic and pandemic diseases in Africa in close coordination with the WHO, UNAIDS, UNICEF and the programmes of the Global Fund for AIDS, Tuberculosis and Malaria.

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Proposed issues for discussion at the political consultation - continued

3. Further innovative strategies within FOCAC to enhance cooperation in other fields stipulated in the Beijing Plan of Action to consider could be:

• Anti-desertification; • Management of water resources; • Bio-diversity; • Development-oriented scientific research and technology; • Consular matters; • Judicial issues; • Police and other law enforcement mechanisms; • Terrorism/drug trafficking and other aspects of organised crime; • De-mining; and • Illegal migration.

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South Africa-China

Partnership for Growth and Development

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Marketing of SA and Economic Diplomacy

At the 24 – 27 July 2007 Cabinet Meeting:

• Cabinet approved the Framework for a Co-ordinated Marketing Approach of South Africa;

• And approved the identification of China as a first test case for targets and co-ordinated planning and implementation of South Africa’s economic diplomacy, as well as the proposed areas of focus;

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SA- China

• Currently, Chinese economy is 4th world largest (nominal GDP)

• SA is China’s key trade partner in Africa

–accounting for 20,8 % of Africa-China’s trade

• Chinese FDI into SA (US$400 million)

• SA FDI into China ( US$2 billion)

• China 5th largest export destination for SA

–SA exports to Greater China in 2006 including PRC, Taiwan, Hong Kong and Macao R 23.54 bn (China R14.2 bn)

• SA imports from Greater China in 2006 R56,98 bn (China R46,7 bn)

Why China?

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Focus on China for targeted and co-ordinated planning and implementation:

• Areas of departure– Leveraging the 10th Anniversary of SA-China

Bilateral Relations

– SA – China Partnership for Growth and development

– Participation in the Shanghai Word Expo 2010

Framework for a co-ordinated approach to market SA in China

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Leveraging the 10th Anniversary of SA-China Bilateral Relations

• To launch a major marketing campaign in China of brand SA

• To present an image of SA as a modern advanced African country with a vibrant industrialised economy

Envisaged Activities

• Programme of Economic, Cultural, Academic, Sport, and commercial activities during the course of 2008 in China

– China to arrange a similar programme in SA

• Activities focused around two major events during 2008 (April/Oct)

– Freedom Day Celebrations

– SA state visit to China

10th Anniversary of SA – China Bilateral Relations

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SA – China Partnership for Growth and development

• Follows on agreement between SA & Chinese Presidents• To secure market access for identified South African products

and assistance in capacity building

• To address current trade imbalance

Technical Task Team embarking on:

• A study of synergies between China’s development needs and what South Africa is able to supply (currently and potentially)

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Landmarks & Timeframes

• Study Tour of China by the Technical group of Task Team

– 17 September 2007

• Placed on agenda at SA/China Bi-National Commission 24 – 25 Sept 2007

• Discussion of Action Plan

– Cabinet Lekgotla in January 2008• Agreement negotiated with China

– Finalisation before October 2008• Agreement signed during planned State visit by Pres Mbeki to China

– October 2008

SA – China Partnership for Growth and development - continued

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• First World Exposition on the theme of “Better City, Better Life”

• 200 Nations and International organisations expected to participate

• 70 million visitors from China and abroad expected to attend

Shanghai World Expo 2010

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Thank You!